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Geico Musicians

Monday, April 1st, 2013

     I admit that I laugh at some insurance commercials. Others just make me sneer. For instance, I always laugh when Allstate’s Mayhem falls through the roof or slaps against a car. It doesn’t matter to me that Allstate might not be a treat to negotiate with on a claim.

     When it comes to Geico ads, I admit that I really don’t find any of them that funny. Well, maybe a pig on a plane might be unusual. Other than that, the ads don’t grab me. I am fascinated that they originate from an agency in Richmond, Virginia.

     A recent campaign includes two men playing musical instruments. They comment on Eddie Money running a travel agency or a muscle man directing traffic. Come to think of it, I do like the lion named Carl, who is being watched by two antelopes with night vision goggles… but I digress.

     I saw a New York Times advertising column discuss those musicians.  Stuart Elliot answered who they are and whether they really are musicians. Since it involves advertising and insurance, I thought that his answer serves as a curious look behind the advertising scenes. Here’s what he said, 

A. The commercials for Geico, dear reader, are part of a campaign that began in July, says Theresa Dunn, a spokeswoman at the agency that creates the campaign, the Martin Agency in Richmond, Va., part of the Interpublic Group of Companies.

The musicians are actual musicians, Ms. Dunn says. One, who portrays Ronnie the mandolin player, is Alex Harvey, a music teacher from Brooklyn “who happened to get cast in an acting role,” she adds.

The other, who portrays Jimmy the guitar player, “is an actor who just happens to play the guitar,” Ms. Dunn says. More information about him can be found here: http://www.timothyryancole.com/#!productions/c1edo

 

     And for pic o’ day, my Mom sent one from the basketball court this weekend. Well, maybe not really from the court.

Final 4

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Warren Buffett on Geico Profits

Sunday, March 3rd, 2013

USA Today provided some insight on Warren Buffet’s comments last week, after he delivered his letter to shareholders of Berkshire Hathaway. We learned that Buffett was not satisfied with the stock return for the year. He also chided CEO’s of major corporations for failing to be aggressive.

When he delivers his yearly “address”, I am always interested to see any portion of his discussion regarding Geico, which is part of the Berkshire Hathaway holdings.

funny-pig-insurance-ad

This is the pertinent part from his letter:

The insurance business. Berkshire’s insurance operations “shot the lights out last year,” Buffett wrote. The business generated $73 billion of “free money” for the company to invest. “This is truly having your cake and eating it too,” he wrote. “When I count my blessing, I count GEICO twice.”

What Buffet is saying is that Geico is helping them buy other businesses like Heinz Ketchup. I have no issue with profits for business. I understand that businesses create jobs and that’s what keeps the wheels turning. It’s the same at our law firm.

What we can really gather from Warren Buffett is the application of why insurance companies collect premiums… to make a profit. It’s not to pass on profits by charging less to their insureds. This is contrary to silly tort reformer arguments for caps.

In Texas, all the talk was that they needed a malpractice cap of 250K. By doing so, doctors would be charged less for premiums. Now, almost 10 years later, Texas doctors are not getting any reductions (SEE HERE) but the caps remain. All that means is that those responsible for causing injury are passing the expense on to everyone else.

One final thought on the excitement caused by insurance profits. In Virginia, we still have a punishment damage (punitive) cap of $350,000. What that means is that when profits are in the billions, what kind of punishment does that really amount to. Punitive damages are meant to protect the citizens that are effected by the conduct. Unfortunately, businesses are protected instead.

At least Buffett is honest about why. One of my hopes is to have a judge force him to come to Virginia for a deposition to explain the way that Geico handles their claims evaluations in Virginia. I believe that they are needlessly asserting frivolous defenses and clogging the Court system. Maybe his deposition someday soon. I can hope… can’t I?

If you think I am being tough on Geico; then yes… I am. They make me shake my head. No wonder their new mascot is a pig. It seems apropo to me.

This Pic o’ day “note” reminded me of how I believe that insurance companies accept responsibility.

Insurance responsibility

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Read it again, Grammy!

Sunday, January 27th, 2013

One of my favorite childhood memories takes me back to my love of a great story. My grandmother used to get her morning coffee and butter raisin toast. Then, she would sit down in her big red chair and I would sit on the right arm of the chair.

She would reach to her left and pick up a story book from the stack of books that were collected next to the chair. Then, she would open the book and begin to read as I would peer over her arm and look at the pictures and words that I could not yet comprehend.

She had read these same books to me over and over so many times, that I could repeat the words verbatim. Still, with exciting voice inflexion and change of voices to match each character in the books; she read them as though it was the first time, and I listened so attentively as though I had never heard this story.

The stories all had some lesson that included some hero. And, of course, there was always a good ending to the story. Then, I would say, “Read it again Grammy, read it again”. She would commence at the beginning again until we would move on to the next book. The only break usually included her getting a refill on her coffee.

Many times before bed, we would be right back to those same stories. Even if we had to take a break for real life things. As I type this blog, it takes me back to such a good feeling of just sitting there, never wanting the Grammy to stop reading.

In Saturday’s HamptonRoads.com, there was a story titled “Job seeker tries to plant seeds at Va. Beach expo”. The story included a picture of a young man standing in front of the display. He is bit out of place at the Virginia Beach Convention Center, where the Virginia Flower & Garden Show is set up.

The many displays on the floor include potted greenery and garden tools. At this one display, a 27-year-old man stands with a table behind him, and a large white sign that says “John Wike/Bachelor Degree-Business Management”. Instead of selling rakes, he is pitching himself for employment; hoping that during the three days of this convention that someone will have a job opportunity for him.

In real life, the end of the story is not always perfectly scripted. Many clients that call me also weave a story of lost wages and lost opportunity. Sometimes on their path of life, they are unable to pursue a career or take a desired job that has been offered. Other times, they miss so much work that their employer either terminates them or they lose some career advancement opportunity.

Part of the damages of an injury claim can include making a claim for lost wages. That claim exists even if a person did have sick time that they could take as a benefit of their employment. The person that hit them does not benefit from the collateral benefit of a sick leave payment.

Virginia also recognizes a claim for loss of earning capacity. Following an accident, a client may be earning more than they were earning before the car crash. However, they may have lost a job or career opportunity that could have provided a better income for their future. For that, the person that caused the crash should also be responsible.

Every day, I hear “stories” about difficulty. Fortunately, I have also seen many good endings, despite the road of difficulty in getting there.

After I read the “Wike story” about how he was seeking a job; I also continued to read the comments that followed. One person commented that they really enjoyed reading the story. Then, they wrote, “please do a followup story on him…. I bet he gets a job soon”. Just like me, they like a happy ending.

In my head, I can still hear my high voice saying to my Grandmother, “Grammy, read it again” and my grandmother turning the book to the beginning and off we go again to a happy ending.

Just for conversation, I still have people ask me about “my holidays”. So, I am posting this pic o’ day that makes me laugh:

 

 

 

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“To the Batmobile!”

Tuesday, January 22nd, 2013

 

 

 

The Original Batmobile

 

 

 

 

 

It’s worth what someone will pay for it. That is the definition of fair market value and we have learned now, what the value is for the 1966 Batmobile.

Last week the original 19-foot-long Batmobile sold for 4.2 million in an auction.  It originally was a 1955 Lincoln Futura concept car that had been transformed into a crime fighting machine.

The car includes lasers and a “Batphone” and could lay down oil slicks to cause problems to any car following it. Plus, it even includes the ability to throw out smoke screens for visibility fighting!

This original famous car was used by Adam West, who starred as the Caped Crusader. His sidekick was Robin, played by Burt Ward; who was known for starting every sentence with the exclamation of “Holy (insert)”. On this it might have been “Holy 4.2 million, Batman!”

This also establishes what the loss of value would have been, if this car had been in an accident. I can imagine that some adjuster would have offered to pay something like 5K “because it’s only a 1955 car”. Fortunately, value is determined by more than what an insurance adjuster may say something is worth. I remind some adjusters of that fact, almost everyday!    Now… to the Batmobile!

For pic o’ day, I never get tired of these kind of pictures! (OK, I will stop with the exclamation points)

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Rules of Court and Field

Tuesday, September 25th, 2012

In every jury trial, the Judge will read the law of the case. The jury is “instructed” on how to view the evidence, based on law.

In Virginia, it is very difficult to get a verdict for punitive damages. Lawyers have to meet certain burdens of proof to even get that issue to the jury. Then, Virginia has a cap of $350,000 for punishment damages. That means that a company can do business in Virginia and know that no matter how vicious or mean their conduct might be, they still will only have to pay a maximum of $350,000.

While a cap on punishment damges  is bad for the protection of Virginia residents, it’s good for companies who know that they can color outside the lines with little penalty.

In law and in sports, we are all supposed to play by the rules. In the NFL, it seems that the replacement referees are not enforcing rules very consistently. Anarchy seems now to reign.

When companies are reckless, it irritates me that there are not real rules to make them pay. Amy sent me the following picture that sums up the application of rules in football right now. We all need fair rules applied!

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The Logic of Insurance Premiums

Monday, September 10th, 2012

US News published the following amazing research: Overweight children and teens tend to eat more and exercise less. Now, that is some serious research right there. I might also add that if you stare at a pie in the window sill, you probably are more tempted to eat pie.

Sometimes I think that such logic should be applied to the insurance industry. They collect premiums from their insured; Their premiums result in profits,  unless they pay more in claims than they collect in premiums. Therefore, is there a reason that insurance companies want to quickly pay claims? Yes, I think there is a pie temptation in the window that cannot be ignored.

For some reason, pic o’ day reminded me of my crazy blog logic today:

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Insurance Comedy Doesn’t Sell

Thursday, July 26th, 2012

We now have learned that it’s not only Robert Pattinson who carries sorrow today. It’s also all of those insurance commercial spokespeople that are in the heartbreak line. USA Today says that the funny ads are not paying off.

Market share statistics are leading advertisers to the conclusion that funny insurance ads are probably only expensive chuckles. When I started reading the USA Today article, I immediately became concerned about “Mayhem”. He’s my favorite.

Since 2007, Geico, Progressive, State Farm and Allstate now rank among the USA’s 20-most advertising products. Last year, Nationwide spent more than 200 million and it reports losing more than 9% of it’s market share. Of course, I have yet to find anyone who thinks that the “World’s Greatest Spokesperson” is funny or persuasive; so maybe Nationwide should just focus on fairly paying claims instead of that nonsense.

In advertising, the goal is always to get noticed. Just like legal advertising. I’m not sure if that means that President David Palmer works or not. (you had to be a “24″ Fan to understand)

More insurance companies are trying to get more done online. That’s why Allstate paid over a billion dollars last year to acquire Esurance, which was totally built online.

Is Flo going to be replaced by Flobot and have we seen the last of the Gecko? Statistically, State Farm’s growth has remained flat for the last 3 years. I guess the “discount double-check” didn’t bring enough checks.

It is a competitive industry. USAA jumped in with their first national advertising campaign that makes it look like it’s quite a privilege to pay premiums over many generations. Since I have recently filed suit against USAA on behalf of a client who did not receive his available medical payment coverage; that advertisement just makes me want to give them the look.

I wonder what would happen if one company would step forward and advertise that they were going to fairly pay claims. Now that would shake up the market! (Guess you can tell, I’m a little biased)

For pic o’ day, here’s a “new technology” idea for all these companies:

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Baseball Cards in the Attic

Monday, July 16th, 2012

     It’s a story about finding the unexpected. It’s better than reaching into the winter coat pocket and feeling a $5 dollar bill. Although, that’s pretty good too.

     Karl Kissner saw a soot-covered cardboard box that had been under a wooden dollhouse, in his grandfather’s attic.  When he looked inside the box, he saw baseball cards with names that were familiar: Hall of Famers Ty Cobb, Cy Young and Honus Wagner. The cards were smaller than the cards he was used to seeing.

     After seeing the box and its contents, he put them down and began going through other boxes in the attic. Later, he took the box to a card authenticator. He was soon thankful that his grandfather, who had died in the 1940′s, had not thrown them away.

     It turns out that these cards are some of the finest examples  from a set known as the E98 series. Based on the initial evaluation, the cards should bring somewhere between $2 and $3 million at auction.  You can click for the full story of the cards above.  A treasure in the attic!     

     When I saw this story, it reminded me of a call that I received a few years back. A collector told me that it had rained through the roof and destroyed all his cards. The cards were insured, but the insurance company was only offering him $18,000 and he thought they were worth a whole lot more.

     Normally, I would not take a case that did not involve an injury. But, I sometimes do take insurance claims and I was also interested in this subject matter. I have a small collection of cards too.

     I traveled down to look at the cards that were now wrinkled and wet from the rain leak. There were several boxes of cards stacked all over a room. Some had dried but they were clearly damaged.

     Initially, I had to file suit. Then, the insurance company agreed to arbitrate the loss. Strategically, I decided to hire an expert and present a case to an arbitrator instead of a jury.

     The defense lawyer and the insurance adjuster put little value or defense, in the client’s cardboard collection. They never did offer more than $18,000. They did base that on some thought process but I can’t remember why.

     My expert put the value of the cards at around $120,000. He also was someone known in the sports collecting field because he regularly wrote a column for a Sports Card Company publication.

     I suspect that you have already guessed that I was pleased with the outcome. Yes… I was! The arbitrator came back with a verdict of $98,000 for the cards.

     My client was disappointed in his card loss but pleased in the result. The insurance company said that they would agree to make payment on the verdict. Then, they wanted the cards as well. Finally, they agreed that they really didn’t want “all those moldy cards”. 

     I found a few that still could be recognized. My client threw almost all of them out but he gave me a couple as a souvenir of our case. It wasn’t a treasure from the attic, but I guess it was “”pennies from heaven” in the form of rain. 

     Pic o’ day is one of those that keeps making me smile. Imagine if you saw this on the neighbor’s porch:

 

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A Highlights Magazine Reminder

Monday, April 23rd, 2012

 

 

“Highlights Magazine” still gives me a funny nervous feeling. It was that magazine that was always in the doctor’s office, that supposedly had fun games to occupy you; while you waited to go back to have all your teeth pulled out or had some big shot stuck in your arm. No kid likes that waiting room.

Cracked.com reminded me with this above cartoon right from the magazine. When you play “What’s Wrong with this Picture?”, you begin to realize that it would be easier to play “what’s right?”.

Is that a toaster next to the cactus; next to the ice rink that people are swimming in? As you began to solve it, the wrongs start to overwhelm. Then, someone would open the door at the office and say, “Joel, are you ready?’ No, I wasn’t ready. I hadn’t finished my game that hundreds of other kids with grubby hands had already tried to solve, just like me.

Well, I promise that I will be brief in my analogy,  in case you want to go back to solving. Is that a running hotdog? See, I can get easily distracted too.

I just received another letter from an insurance company, where they were denying benefits to my client. In this instance, my client is also their policyholder. You would think that they would want to take care of their own instead of denying benefits. When my paralegal brought me the letter, she even remarked, “Why won’t they pay this?”

What  is wrong with the insurance picture?  That one Progressive insurance advertisement has “Go Big Money” dancing around and Flo says, “Go Big Money. I mean go, it’s your break honey”. I guess that’s it in a dancing answer. It’s about the money.

When you look at the picture to figure out what’s wrong with insurance, I probably could punch out a top ten list. They send out adjusters, sometimes called “pop out” adjusters; who pop out to the house within 24 hours and tell the person that they don’t need a lawyer. Why does it matter to the opposing insurance company whether a person hires a lawyer?

To keep it short… I just wanted to point your mind in the direction of “why”.  Insurance companies probably would keep people from calling lawyers, by making them feel like fairness prevailed.  Courtrooms would mostly sit empty and you wouldn’t have Warren Buffett with Geico, needing a lizard with an English accent to tell us how to compare insurance in the US.  Makes you stop and look closer at the picture.

Guess you could also ask what’s wrong with the Buffett rule?  Can’t everyone wear Parrot shirts and just be happy? Oh wait, is that like a running hotdog, out of place in this blog?   Where’s Waldo?

For pic o’ day, it went along with the blog… that you always need a good exit strategy:

 

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Insurance For Movies

Monday, March 26th, 2012

Most of the time, we think of insurance for medical bills or cars. In Hollywood, insurance means protecting the movies. In this past weekend edition, The New York Times tells the story of how one specific company, Fireman’s Fund, is on set during many shoots, providing insurance.

Hollywood can’t insure that the movies will be blockbuster successes. But, most of the actors in major movies have some kind of  insurance to make sure “the show goes on”.

Ben Turpin was a comedian, known for his cross-eyed acting in silent films. He purchased an insurance policy with Lloyd’s of London, which was payable if his eyes ever uncrossed. Jimmy Durante was an actor, comedian and singer who was most famous for his “Schnozzola”; his description for his large nose. He felt that his nose was such a part of his act that he insured it for $50,000.

This New York Times’ article is filled with stories that are behind the scenes. Because Tom Cruise always seems to be sprinting in his movies, apparently he now believes that his stardom is connected to action or hanging from buildings. Yes, there’s insurance for that.

One of the most expensive insurance payments related to a movie titled “Wagons East!” In 1994, during its filming, 43-year-old actor John Candy had a heart attack and died. The cost of the claim was 15 million when the movie could not be properly finished for distribution.

The next time you watch a wild scene of some horse and rider sprinting through the forest; you might not be thinking about it, but there was some insurance company that was concerned about that rider during the making of that scene. It might make you watch “Hunger Games” a little differently if you see the described futuristic fight scene. Last year, Fireman’s reportedly insured more than 250 movies and related events. That’s why they call it insurance.

Pic 0′ day is a reminder to keep all eyes on the prize:

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