An Englewood, N.J., man was arrested for selling a fake MetLife auto insurance card to a person who subsequently became involved in an accident and discovered no coverage existed.
Lawrence Dimery
Lawrence Dimery, 50, was arrested and charged with selling a fraudulent motor vehicle insurance card following an investigation by the Bergen County Prosecutor’s Office White Collar Crime Unit.
Dimery allegedly sold the fake insurance card, offering a six-month insurance policy through MetLife, on March 2 to a Teaneck, N.J., resident for $300, prosecutors said. Dimery allegedly made the sale at his Englewood residence.
The victim of the alleged scam was involved in a motor vehicle accident June 4 and filed a claim with MetLife. The insurer revealed that the card was fraudulent; the number on the card did not match an existing policy.
MetLife subsequently referred the matter to the State of New Jersey Office of the Insurance Fraud Prosecutor, who referred it to Bergen County prosecutors.
Dimery is being held on $2,500 bail as he awaits a formal arraignment.
Source
Sunday, February 28, 2010
Monday, February 15, 2010
The good news about pricier car insurance
Auto insurance companies did not make a profit in New Jersey in 2008 as they battled for customers, one factor that is causing drivers to pay higher rates after several years of declines, according to state and industry sources.
After five years of double-digit profits, insurance companies here flatlined in 2008, down from a 10.1 percent profit in 2007, according to the Auto Insurance Report, to be released tomorrow.
Far from being bad news, the low profits and rate increases show the New Jersey market is healthy after reforms in 2003 attracted more companies to the state, said Brian Sullivan, editor of Risk Information, which covers the insurance industry.
"It’s the strongest indication that what the reforms set in motion to do has worked," Sullivan said. "Currently, insurance companies aren’t making money because of their own folly. That is, they’re competing so hard for customers, they’re charging too little. This is exactly what you want if you’re the people who drew up New Jersey’s reforms."
The reforms, championed by Assemblyman Louis Greenwald (D-Camden), allowed insurers to make higher profits and cut down the time state regulators are given to decide on companies’ requests for rate changes. Those reforms made New Jersey more attractive to auto insurance companies, and soon several big names such as Geico and Progressive entered the market and sparked aggressive price wars.
Two years ago, the pendulum began to swing the other way. The rate increases were driven mainly by higher medical costs, according to the state Department of Banking and Insurance, which must approve rate increases. The department improved rate increases averaging 2.14 percent in 2008 and 6.86 percent in 2009.
But the tough competition also played a part, said Chuck Leitgeb, vice president of the Insurance Council of New Jersey, which represents insurance companies.
"As the market evens out, you realize you might have to increase prices here because you were too low, but that’s part of the market working," Leitgeb said.
Drivers should expect even more increases, said John Dyke, a trustee of the trade group New Jersey Auto Agents Alliance and owner of the Perth Amboy-based Dyke Company.
"Some of the insurance companies are going to have to increase some of their rates," he said. "Some of them waited a little bit too long."
On the bright side for drivers, the state Supreme Court this summer approved an insurers’ bid to pay lower medical bills for personal injury costs, which should allow insurers to keep costs in check, Leitgeb said.
Profits across the country are down in part because the industry is in a cyclical downswing, but also because insurers’ investments are down and drivers are trying to take less expensive policies in the recession, Dyke said.
"The industry, like any other industry, is affected by the economy," he said.
The nationwide average was a profit of 4 percent, down from 8.1 percent, according to the report.
During the years of rate declines, premiums were going down faster in New Jersey than in the rest of the country, but the state remained one of the most expensive in the nation. Experts say this is because drivers in this densely populated state have more expensive cars and need more insurance to cover more expensive assets, such as homes.
Average profit had been steadily creeping down since a wave of reforms in 2003. Profit went from 12.5 percent in 2003 to 10.1 percent in 2007, according to the report. The report computes the profit annually using data from the National Association of Insurance Commissioners, a coalition of state regulators.
Source
After five years of double-digit profits, insurance companies here flatlined in 2008, down from a 10.1 percent profit in 2007, according to the Auto Insurance Report, to be released tomorrow.
Far from being bad news, the low profits and rate increases show the New Jersey market is healthy after reforms in 2003 attracted more companies to the state, said Brian Sullivan, editor of Risk Information, which covers the insurance industry.
"It’s the strongest indication that what the reforms set in motion to do has worked," Sullivan said. "Currently, insurance companies aren’t making money because of their own folly. That is, they’re competing so hard for customers, they’re charging too little. This is exactly what you want if you’re the people who drew up New Jersey’s reforms."
The reforms, championed by Assemblyman Louis Greenwald (D-Camden), allowed insurers to make higher profits and cut down the time state regulators are given to decide on companies’ requests for rate changes. Those reforms made New Jersey more attractive to auto insurance companies, and soon several big names such as Geico and Progressive entered the market and sparked aggressive price wars.
Two years ago, the pendulum began to swing the other way. The rate increases were driven mainly by higher medical costs, according to the state Department of Banking and Insurance, which must approve rate increases. The department improved rate increases averaging 2.14 percent in 2008 and 6.86 percent in 2009.
But the tough competition also played a part, said Chuck Leitgeb, vice president of the Insurance Council of New Jersey, which represents insurance companies.
"As the market evens out, you realize you might have to increase prices here because you were too low, but that’s part of the market working," Leitgeb said.
Drivers should expect even more increases, said John Dyke, a trustee of the trade group New Jersey Auto Agents Alliance and owner of the Perth Amboy-based Dyke Company.
"Some of the insurance companies are going to have to increase some of their rates," he said. "Some of them waited a little bit too long."
On the bright side for drivers, the state Supreme Court this summer approved an insurers’ bid to pay lower medical bills for personal injury costs, which should allow insurers to keep costs in check, Leitgeb said.
Profits across the country are down in part because the industry is in a cyclical downswing, but also because insurers’ investments are down and drivers are trying to take less expensive policies in the recession, Dyke said.
"The industry, like any other industry, is affected by the economy," he said.
The nationwide average was a profit of 4 percent, down from 8.1 percent, according to the report.
During the years of rate declines, premiums were going down faster in New Jersey than in the rest of the country, but the state remained one of the most expensive in the nation. Experts say this is because drivers in this densely populated state have more expensive cars and need more insurance to cover more expensive assets, such as homes.
Average profit had been steadily creeping down since a wave of reforms in 2003. Profit went from 12.5 percent in 2003 to 10.1 percent in 2007, according to the report. The report computes the profit annually using data from the National Association of Insurance Commissioners, a coalition of state regulators.
Source
Thursday, January 28, 2010
Expert Warns New Jersey Drivers: Check Your Auto Insurance Before Tragedy Strikes
It is a nightmare scenario. You’re driving your family to the Jersey Shore for vacation when another driver slams into your car — critically injuring your child. In the days that follow, you learn that your child will need years of physical therapy, and the driver who caused the accident has no insurance. Then the worst part: your auto insurance may not cover the loss your child has, and will continue, to suffer.
Stories like this are all too familiar to leading New Jersey Personal Injury Attorney Mike Mumola. He says that it is imperative that drivers know how much UM (uninsured motorist) and UIM (underinsured motorist) coverage they have on their policies.
“The wrong time to find out,” says Mumola, “is after the accidient. Uninsured and underinsured motorist coverage is extremely affordable, and is worth every penny. It is not easy to put your life back together after someone almost takes it from you, but this helps relieve the financial burden.”
Mumola says that $500,000 worth of UM/UIM coverage can be added to many auto insurance policies for just a few dollars a month. The key, says Mumola, is asking.
“If you don’t know how much uninsured or underinsured motorist coverage you have, you probably don’t have enough.”
Source
Stories like this are all too familiar to leading New Jersey Personal Injury Attorney Mike Mumola. He says that it is imperative that drivers know how much UM (uninsured motorist) and UIM (underinsured motorist) coverage they have on their policies.
“The wrong time to find out,” says Mumola, “is after the accidient. Uninsured and underinsured motorist coverage is extremely affordable, and is worth every penny. It is not easy to put your life back together after someone almost takes it from you, but this helps relieve the financial burden.”
Mumola says that $500,000 worth of UM/UIM coverage can be added to many auto insurance policies for just a few dollars a month. The key, says Mumola, is asking.
“If you don’t know how much uninsured or underinsured motorist coverage you have, you probably don’t have enough.”
Source
Tuesday, December 15, 2009
Reclaiming customers from insurance companies
The advent of direct repair programs (DRPs), concierge programs and other insurance company offerings have muddied the waters when it comes to managing customer relationships, with many customers mistakenly believing that the insurance company is in charge of the repair process. A recent Society of Collision Repair Specialists survey even found that many shops consider the insurance company, not the vehicle owner, their actual customer.
"Years ago we competed for business by marketing to the consumer, not going through insurance companies," says Lou DiLisio, president of Automotive Industry Consulting. "Over the last 15 years or so a lot of shops have lost that focus on the customer. You have to build that relationship, even in a DRP environment. Once a customer comes through the door of the shop, it's the shop's responsibility to make that customer their own."
How can shops reclaim the customer relationship, even when their customers have come to them by way of insurance referrals or a DRP program?
A key part of that is building an identity for your shop, says Bobby Price, owner of Price's Collision Centers, a $12-million operation with three locations in Tennessee. "I allocate 3 percent of revenues to advertising, and I've been doing that for 10 years," Price says. "You have to deliver a consistent message and maintain top of mind in the marketplace."
Part of his advertising focuses on educating consumers about their rights. His most recent radio ads describe the deceptive word tracks sometimes used by insurance companies to steer work to their DRP shops. Price participates in one DRP, State Farm's Select Service program.
"My message is all about working for the consumer," Price says. "We try to educate the consumer on their right to choose a collision center, and we've built our message around the fact that we work for the customer."
Price says his biggest competition isn't other collision shops, but the word tracks that insurance companies use to steer customers. "In bringing those things to light, consumers are educated and not as apt to be steered," he says.
In fact, just passing out a "Motorists Rights" or "Customer Bill of Rights" document can go a long way to help educate those consumers. Many state auto body associations offer these pamphlets. Shops should have copies available and hand them out to every customer that comes in for an estimate.
"That explains that they have the right to get their car fixed anywhere they choose, and they don't have to go around getting multiple estimates," says Tom Franklin, author and industry consultant.
Source
"Years ago we competed for business by marketing to the consumer, not going through insurance companies," says Lou DiLisio, president of Automotive Industry Consulting. "Over the last 15 years or so a lot of shops have lost that focus on the customer. You have to build that relationship, even in a DRP environment. Once a customer comes through the door of the shop, it's the shop's responsibility to make that customer their own."
How can shops reclaim the customer relationship, even when their customers have come to them by way of insurance referrals or a DRP program?
A key part of that is building an identity for your shop, says Bobby Price, owner of Price's Collision Centers, a $12-million operation with three locations in Tennessee. "I allocate 3 percent of revenues to advertising, and I've been doing that for 10 years," Price says. "You have to deliver a consistent message and maintain top of mind in the marketplace."
Part of his advertising focuses on educating consumers about their rights. His most recent radio ads describe the deceptive word tracks sometimes used by insurance companies to steer work to their DRP shops. Price participates in one DRP, State Farm's Select Service program.
"My message is all about working for the consumer," Price says. "We try to educate the consumer on their right to choose a collision center, and we've built our message around the fact that we work for the customer."
Price says his biggest competition isn't other collision shops, but the word tracks that insurance companies use to steer customers. "In bringing those things to light, consumers are educated and not as apt to be steered," he says.
In fact, just passing out a "Motorists Rights" or "Customer Bill of Rights" document can go a long way to help educate those consumers. Many state auto body associations offer these pamphlets. Shops should have copies available and hand them out to every customer that comes in for an estimate.
"That explains that they have the right to get their car fixed anywhere they choose, and they don't have to go around getting multiple estimates," says Tom Franklin, author and industry consultant.
Source
Saturday, November 28, 2009
Insurance company suing county, DA over auto accident
A large insurance company is taking Cayuga County and its district attorney to court over a car accident that took place this year in New Jersey.
The county received notice earlier this month that Allstate Insurance Company is suing the county and District Attorney Jon Budelmann for $9,494 over a Jan. 23 accident. According to the complaint, Budelmann was driving a county-owned vehicle at the time on Interstate 80 in Warren County, N.J., when his vehicle and that of Jeanne Zecchine collided.
According to the complaint filed Sept. 4 in Warren County, N.J. court, the requested sum would cover damage to Zecchine's vehicle. Allstate, Zecchine's insurance provider, will also seek court and attorney fees as part of the suit.
Budelmann said Monday that Zecchine's vehicle swerved into his lane and struck his vehicle. He was traveling on that highway after attending a New York State District Attorneys Association meeting in New York City, he said.
This is the first Budelmann has heard of the accident since the county handed the claim to the insurance company in January, he said.
“I assumed the insurance company had been handling it,” Budelmann said.
Budelmann does not have a personal, county-owned vehicle, he said, and was issued the vehicle for that specific meeting.
The county has 35 days to respond to the complaint.
Source
The county received notice earlier this month that Allstate Insurance Company is suing the county and District Attorney Jon Budelmann for $9,494 over a Jan. 23 accident. According to the complaint, Budelmann was driving a county-owned vehicle at the time on Interstate 80 in Warren County, N.J., when his vehicle and that of Jeanne Zecchine collided.
According to the complaint filed Sept. 4 in Warren County, N.J. court, the requested sum would cover damage to Zecchine's vehicle. Allstate, Zecchine's insurance provider, will also seek court and attorney fees as part of the suit.
Budelmann said Monday that Zecchine's vehicle swerved into his lane and struck his vehicle. He was traveling on that highway after attending a New York State District Attorneys Association meeting in New York City, he said.
This is the first Budelmann has heard of the accident since the county handed the claim to the insurance company in January, he said.
“I assumed the insurance company had been handling it,” Budelmann said.
Budelmann does not have a personal, county-owned vehicle, he said, and was issued the vehicle for that specific meeting.
The county has 35 days to respond to the complaint.
Source
Sunday, November 15, 2009
Cost of living and doing business pushing people to leave N.J.
CENTRAL JERSEY — Fanklin resident Jim Morano and his wife recently acquired a home in South Carolina after his wife's sister and mother passed away.The couple plans on keeping the home as a winter getaway, but they're also wondering whether it should be their permanent residence because of New Jersey's income-tax rates, among the highest in the nation. Both own small businesses.
“We're kind of scratching our head,” said Morano, who has a Ph.D. in food science and a master's degree in business administration. “If you already own a residence outside of New Jersey, at some point in time, the differential is going to pay you to leave.”
Affordability issues facing businesses and residents in New Jersey will be the focus of an Oct. 2 forum at Raritan Valley Community College sponsored by the Somerset County Business Partnership along with the Courier News and MyCentralJersey.com. Sponsors also include the college, Allstate Insurance and Affinity Federal Credit Union.Republican gubernatorial candidate Chris Christie and Independent candidate Chris Daggett both are expected to attend. Gov. Jon Corzine also has been invited.
Source
“We're kind of scratching our head,” said Morano, who has a Ph.D. in food science and a master's degree in business administration. “If you already own a residence outside of New Jersey, at some point in time, the differential is going to pay you to leave.”
Affordability issues facing businesses and residents in New Jersey will be the focus of an Oct. 2 forum at Raritan Valley Community College sponsored by the Somerset County Business Partnership along with the Courier News and MyCentralJersey.com. Sponsors also include the college, Allstate Insurance and Affinity Federal Credit Union.Republican gubernatorial candidate Chris Christie and Independent candidate Chris Daggett both are expected to attend. Gov. Jon Corzine also has been invited.
Source
Wednesday, October 28, 2009
Allstate suing N.J. county, district attorney over auto accident
Allstate Insurance Co. is taking a New Jersey county and its district attorney to court over an auto accident involving one of its policyholders.
The suit seeks $9,494 for a Jan. 23 accident where Cayuga County District Attorney Jon Budelmann was driving a county-owned vehicle on Interstate 80 in Warren County, N.J., when it struck another vehicle driven by an Allstate customer, according to the Auburn Citizen.
The complaint, filed Sept. 4, in Warren County, says the requested sum would cover losses to Allstate’s customer. The insurer also will seek court and attorney fees as part of the suit, according to the report.
Budelmann told the Citizen the other vehicle swerved into his lane, striking him as he returned from a New York State District Attorneys Association meeting in a car issued to him by the county to attend the meeting. The district attorney added that the newspaper’s inquiry marked the first he heard about the suit, and that he assumed the county’s insurance company handled the claim.
Source
The suit seeks $9,494 for a Jan. 23 accident where Cayuga County District Attorney Jon Budelmann was driving a county-owned vehicle on Interstate 80 in Warren County, N.J., when it struck another vehicle driven by an Allstate customer, according to the Auburn Citizen.
The complaint, filed Sept. 4, in Warren County, says the requested sum would cover losses to Allstate’s customer. The insurer also will seek court and attorney fees as part of the suit, according to the report.
Budelmann told the Citizen the other vehicle swerved into his lane, striking him as he returned from a New York State District Attorneys Association meeting in a car issued to him by the county to attend the meeting. The district attorney added that the newspaper’s inquiry marked the first he heard about the suit, and that he assumed the county’s insurance company handled the claim.
Source
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