2nd      Labor Day Holiday

11th     22nd Annual Insurance Education Day – Jackson, MS

19th      IW of SW MS Fish Fry – Morrell Camp, Magnolia, MS

22nd     American Business Women’s Day

1st     Insuring Commercial Casualty CISR Class – Jackson, MS

2nd     Life and Health CIC Class, Jackson, MS

11th      NAIW Now! Mailed

16th     National Boss’ Day

17th      IW of SW MS Monthly Business Meeting

2nd     Louisiana Renaissance Fair – Hammond, LA

Ford Motor Company customers in nine states can now get three auto insurance quotes in their dealer’s showrooms, Ford intends to offer this program nationally by the end of 2003.  Currently, program is available in Ohio, Alabama, Colorado, Illinois, Indiana, Missouri, Oregon, Pennsylvania and Texas.  Participating insurance companies are: Esurance, The Hartford, Infinity Group, Leader Group, and Travelers Property Casualty.
 

South Carolina’s Supreme Court has upheld an arbitrator’s ruling that Conseco Inc., already in financial trouble, must pay nearly $27 million for violations of consumer protection laws committed by the former Green Tree Financial Corp.

By:  Ruth E. Phillips
        Education Chairman

In November 2001, the Georgia Supreme Court ruled in favor of two State Farm customers who claimed that wrecked cars are worth less simply because they had been wrecked, no matter how expertly they are repaired.  The court asserted that insurers are liable to pay the difference.  Due to this ruling, all auto insurers in Georgia must now pay diminished valued claims.

In January 2002, Allstate settled a similar class action case in Georgia.  They agreed to pay Georgia policyholders a total of $59 million for the diminished values of their cars repaired after crashes since January 1997.

But what exactly is diminished value?  According to the NADA guide, my car is worth $5,000.  Let’s pretend I had an accident.  My car insurance paid to have my car fixed.  The mechanics did an excellent job repairing my vehicle; however, now that I’ve wrecked my car and had it repaired, there is no way I would be able to sell it for $5,000.  This is diminished value.

Insurance is designed to make one whole after a loss.  This includes returning automobiles to pre-loss conditions after an accident.  Consumer advocates believe that policy holders are entitled to a diminished value check from their insurers if they can document that their vehicles have not been returned to a pre-accident condition.

There are ISO forms in 36 states and Washington DC, that allow insurers to exclude diminished value payments, this list includes Mississippi.  At the present time, Louisiana has no ISO forms excluding payments for diminished value.  Agents should be aware when writing new auto policies for customers who have recently moved to Mississippi, that their previous coverage may have included diminished value payments.

Because diminished value payments are excluded from Mississippi policies, we do not hear much about them.  However, agents and CSR’s should still have a basic understanding of them.

Bea Jones is planning to spend her Labor Day weekend relaxing.  She and Norman are going fishing.

Keri Morrell has been appointed as chairman of the Past President’s Council for PIA of MS and will also serve on the Budget and Finance and Long Range Planning committees for 2002-2003.

Virginia Zeigler recently applied for a scholarship from the NAIW Education Foundation.  We are keeping our fingers crossed that she receives it.  Chandler Price Zeigler’s christening is tentatively scheduled for September 8 at Magnolia United Methodist Church.

Ruthie Phillips has scheduled to attend the Society of CISR’s class on October 1, 2002, in Jackson.  The class will be on Insuring Commercial Casualty Exposures.  When she passes this class she will have completed all 5 of the curriculum courses and will achieve her CISR designation.

Mary Jones is busy helping her daughter pick out wedding invitations.  She said the wedding plans are consuming her.  She reminds everyone to bring their hurricane lamps so that she may borrow them.

Keri and Claude Morrell are busy preparing their camp for our membership drive on September 19th.  This fish fry should be a fun and exciting time and hopefully we will encourage potential members to join.

Deborah Ledford will be having one of her former exchange students visit.  Nic, from France, will be with her for two weeks in October.  Welcome back to the states Nic!!

Leaders today are smart and can think on their feet.  Take this short quiz and see how you do.

Question #1

How do you put a giraffe into a refrigerator?
The correct answer is open the refrigerator door, put in the giraffe and close the door.  This question tests whether you do simple things in an overly complicated way.

Question #2

How do you put an elephant into a refrigerator?
The correct answer is open the refrigerator, take out the giraffe, put in the elephant and close the door.  This tests your ability to think through the repercussions of your actions.

Question #3

The Lion King is hosting an animal conference.  All the animals attend except one. Which animal does not attend?  The correct answer is the elephant.  The elephant is in the refrigerator.  This tests your memory.

Question #4

There is a river you must cross.  But crocodiles inhabit it.  How do you manage it?  The correct answer is you swim across.  All the crocodiles are attending the animal meeting.  This tests whether you learn quickly from your mistakes.

Ninety percent of the leaders who took this test got all the answers wrong.  But many preschoolers got several correct answers.