Collinsville, Oklahoma
November 10, 2011
Miscellaneous News
All-District Band /
Earthquake Insurance Information

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Ted Wright -- last update 11/10/2011 (MiscNov10.html) www.cvilleok.com

Copyright 2011 -- Collinsville, Oklahoma
All-District Band 2012 & All-State Tryout Candidates
The top group is the All-District Band members.
(l-r) Joelle Nelson (clarinet), Jason Johndrow (trombone), Emily Fuller (clarinet), Jakeb Glaus (baritone), Eric Shockley (clarinet), Izzy Mooney (contra-bass clarinet), Xavier Zelis (tenor sax), and Maddy Thetford (clarinet).

The group below is the 2nd round of All-State members:
(l-r) Shelby Craig (bassoon), Mitchell Reynolds (percussion), Micaela Rush (flute), Jason Johndrow (trombone), Liz Caputo (alto sax & bari sax), Josh McBlair (french horn), Alyson Byers (french horn), Eric Shockley (clarinet), and Emily Fuller (clarinet).
Thanks so much. -- Richard Newhart (11/9/2011)
Previous Coverage:
Just a Test ... 1pm Wednesday (Nationwide Emergency Alert System Test)
On Wednesday, Nov. 9, at 1 p.m. Central Standard Time, the Federal Emergency Management Agency, Federal Communications Commission, and the National Oceanic and Atmospheric Administration will conduct the first nationwide test of the Emergency Alert System. This test will occur all across the United States as part of ongoing efforts to keep the nation safe during emergencies and strengthen our country’s resilience against all hazards.

This event will be just a test, and not a real emergency alert. The test will last up to three and a half minutes. During this period, regularly scheduled television, radio, cable and satellite programming will be interrupted as the system is being tested.

The national Emergency Alert System is an alert and warning system that can be activated by the President, if needed, to provide information to the American public during emergencies. The test is an important exercise in ensuring that the system is effective in communicating critical information to the public in the event of a real national emergency. The nationwide test will involve television and radio stations across the United States, including Alaska, Hawaii, and the territories of Puerto Rico, the U.S. Virgin Islands and American Samoa.

A national test will help federal partners and Emergency Alert System participants determine the reliability of the system, as well as its effectiveness in notifying the public of emergencies and potential dangers both nationally and regionally. The test also will provide the FCC and FEMA a chance to identify improvements that need to be made to build a modernized and fully accessible Emergency Alert System.

Regular tests of emergency systems already occur in the Tulsa area, usually on Wednesdays. The National Weather Service tests its system by activating NOAA weather radios usually at 11:15 a.m. Then the Tulsa Area Emergency Management Agency tests its emergency sirens at noon, unless weather conditions would indicate an actual possibility of severe weather.
Moratoriums As Consumers Wait for Earthquake Coverage

Nov. 10, 2011 -- Oklahoma City – Oklahoma insurance consumers have been shaken to attention by recent damaging earthquakes and many have inquired about being insured against future tremors.

In most cases, uncovered customers have been temporarily turned away due to waiting periods on writing new coverage – known in the industry as “moratoriums” – put in place by the companies that offer earthquake insurance.

“Moratoriums vary depending on the company in question, but are an action taken by insurers to control their risk and offer reasonable coverage at more affordable prices,” said Oklahoma Insurance Commissioner John D. Doak. “We’re finding that in some cases consumers can get coverage right away or very soon, but they might pay a premium price to get it. Those who are willing to wait a few days or a full month are often able to get a much more attractive price on the coverage.”

Establishing a moratorium on selling new coverage is a typical response by an insurance company in the wake of larger earthquakes – and the Nov. 5 tremors in central Oklahoma certainly qualify at an all-time state-record magnitude of 5.6.

Such a quake frequently is followed by numerous and potentially damaging aftershocks.

“The time to buy any kind of insurance is in advance of the need,” Doak said. “Insurance is intended to protect the policyholder from the unexpected, and after a major earthquake, additional damaging events in the near term are not unexpected.”

Anecdotal evidence and information from a few major carriers gathered this week by the Insurance Department suggests that consumers in the state are paying anywhere from $100 to $500 per year for new earthquake coverage, depending on the company, what the policy covers (which can also vary) and the value of the home. Deductibles are ranging from 2 percent up to 10 percent of the home’s estimated value or perhaps higher. A small number of companies have no waiting period in place and some a very brief moratorium – one of the state’s biggest insurers requires existing customers to wait only 72 hours after the last 5.0 shock before adding an earthquake endorsement. In other cases, companies have moratoriums of 30 days or more before writing new earthquake coverage in the affected area.

Because each company’s practices vary considerably, the best advice the Oklahoma Insurance Department can give to homeowners is to shop around for the best coverage at the best price and a waiting period with which the consumer can be comfortable.

“The first place to look for earthquake coverage is with your current homeowners insurance company,” Doak said. “Often earthquake coverage can be added by a company for existing customers with good terms and at a reasonable price.

“If your existing company doesn’t offer earthquake coverage and doesn’t have access to another company in the market that does offer earthquake policies, this is your opportunity as a consumer to become educated and shop for the best policy you can find.”

Doak said the Oklahoma Insurance Department’s Consumer Assistance Team will answer questions and provide assistance to consumers who want to better understand earthquake insurance. He said consumers can visit the Insurance Department online at oid.ok.gov or call Consumer Assistance toll-free at (800) 522-0071 for help.

Earthquake insurance fast facts:

Earthquake coverage typically must be purchased apart from a standard homeowners policy, either as an “endorsement” added to the policy by the company that carries the purchaser’s homeowners insurance, or as a separate policy from a company specializing in earthquake coverage. Consumers will also have to wait a period of time – up to 30 days or more – after the most recently reported earthquakes in their area before they can purchase new earthquake insurance, due to the likelihood of aftershocks.
The cost of an earthquake policy varies depending on factors including the carrier and the policyholder’s desired level of coverage, but typically an Oklahoma homeowner might expect to pay between $100 and $150 per year for earthquake insurance.
Earthquake policies frequently have nuances, such as providing or not providing coverage for brick or stone veneers on the home. Sometimes such coverage is not standard in a company’s earthquake policy but can be added by the customer at a cost.
Earthquake insurance carries a separate and often substantial deductible, apart from the standard homeowners deductible. Often this deductible is calculated as a percentage of the insured property’s value – commonly 5 to 10 percent, but occasionally lower or higher – meaning that a $100,000 home would require a deductible of $5,000 to $10,000.
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About the Oklahoma Insurance Department

The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.

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For more information contact:

Glenn Craven
(405) 522-1769

e-mail: glenn.craven@oid.ok.gov

New Firm in Oklahoma Earthquake Insurance Market Amid Aftershocks of Major Event

Nov. 10, 2011 -- Oklahoma City – A new carrier for commercial earthquake insurance represents the first fruits of an initiative launched by Oklahoma Insurance Commissioner John D. Doak to bring more products and competition to the Sooner State, and comes at a time when tremors have shaken awake the state’s insurance consumers.

Van Wagoner Companies, the oldest managing general agency in Texas, will begin selling “monoline” commercial earthquake insurance as a surplus line in Oklahoma in a move several weeks in the making and facilitated by Doak’s new “Open for Business” initiative. The “Open for Business” program is intended to improve consumer choice and lower policyholder premiums by increasing the number of insurance companies competing for business in Oklahoma.

Van Wagoner’s earthquake insurance will be available in Oklahoma through selected independent agents.

“We’re pleased that the principals of Van Wagoner have decided to serve Oklahoma consumers by offering commercial earthquake insurance in this state,” Doak said. “This announcement couldn’t come at a more opportune moment. The Oklahoma Insurance Department was already approving Van Wagoner’s licensing before the recent, damaging earthquakes in this state, and we at OID look forward to recruiting and licensing more companies to sell earthquake policies in Oklahoma, both commercial and particularly residential.”

Doak and the Oklahoma Insurance Department launched the “Open for Business” initiative on Aug. 1 in order to bring new companies, unique and additional insurance products, and greater competition to Oklahoma’s insurance markets. Keith Kelley was hired as the Insurance Department’s marketing director for the program.

At an Oklahoma insurance industry gathering on Sept. 28, Kelley was approached by an independent agent who noted that she was struggling to find a carrier of earthquake coverage for homeowners. Though Kelley is still pursuing other insurers to fill the homeowners niche, he did manage to enhance Oklahoma’s commercial earthquake offerings by facilitating entry to the state’s market by Van Wagoner after meeting the company’s marketing chief Brian Dakota later in the day at the same Sept. 28 convention.

“Mr. Kelley took the time to visit with every exhibitor and showed genuine interest in the products and services each representative had to offer,” Dakota said. “… Developing relationships and opening dialogue with the companies is critical to creating and providing insurance coverage and services that the consumers of Oklahoma require.”

While becoming acquainted, Dakota told Kelley that Van Wagoner’s parent company, the Chesterfield Group, is a Lloyds of London-accredited broker. He said that if there was a particular coverage need in Oklahoma, Van Wagoner’s General Managing Partner Gary Hirst could explore options through Lloyds.

“Mr. Kelley immediately inquired if we wrote monoline earthquake coverage, which has generated great interest among the public due to the recent earthquake events in Oklahoma,” Dakota said. “Although we did not currently offer the coverage, I agreed to pursue the issues with London. Within several hours, our broker colleagues were able to respond with a program.

“Keith worked diligently with Van Wagoner Companies in a joint effort to construct the insurance product required to serve the needs of his Oklahoma constituents.”

Doak emphasized that in the case of Van Wagoner, the “Open for Business” program worked exactly as he envisioned: Agents, consumers or the OID identify gaps in coverage available to Oklahomans, then the “Open for Business” program finds reputable companies with products well-designed to fill those gaps.

“As Insurance Commissioner, one of my top priorities will always be consumer protection and assistance,” Doak said. “It certainly is in the interest of Oklahoma consumers to have a vibrant market with plenty of companies and products to choose from, and competition between those companies to drive down the policyholders’ premiums.”

Dakota suggests that Doak and the OID can build upon the recruitment success with Van Wagoner because the “Open for Business” approach is unique among state insurance departments.

“This was the first time in my 20-plus years of marketing and exhibiting at trade shows across the country that I can remember having ever spoken to a representative of a state insurance department at a convention,” Dakota said.

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About the Oklahoma Insurance Department
The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.

###
For more information contact: Glenn Craven
(405) 522-1769 --
e-mail: glenn.craven@oid.ok.gov

Media Guide to Oklahoma Earthquakes
Nov. 9, 2011 -- Oklahoma City – A recent rash of earthquakes has jarred Oklahomans, leading numerous members of the media to contact the Oklahoma Insurance Department for information.

To aid your reporting, Oklahoma Insurance Commissioner John D. Doak provides the following:

Oklahoma Earthquake Facts

The Oklahoma Insurance Department has developed a Web page at http://www.ok.gov/oid/earthquake_tips.htmlwith information on earthquake preparedness and response, including links to other products including the National Association of Insurance Commissioners’ “Consumer’s Guide to Earthquake Insurance.”
* Any Oklahoma consumer with questions about earthquake insurance (or any other insurance-related matter) can call the Oklahoma Insurance Department Consumer Hotline toll-free at (800) 522-0071.
* Until local and state officials, insurance companies and adjusters have had an opportunity to receive and review all reports of earthquake damage it is difficult to know how many structures were damaged or what the total monetary loss to these earthquakes will be in Oklahoma.
* Earthquake insurance is not a popular product in Oklahoma. Dan Ramsey, president and CEO of the Independent Insurance Agents of Oklahoma, estimates that less than 1 percent of Oklahoma homeowners carry earthquake insurance.
* Only about $6.74 million in direct premiums are written annually for earthquake insurance in Oklahoma. The state’s top five carriers for residential earthquake insurance are:
* Travelers Group
* American International Group
* State Farm Group
* Zurich Insurance Group
* Liberty Mutual Insurance Group

* Earthquake insurance typically must be purchased apart from a standard homeowners policy, either as an “endorsement” added to the policy by the company that carries the purchaser’s homeowners insurance, or as a separate policy from a company specializing in earthquake coverage. Consumers will also have to wait a period of time – usually 30 to 60 days – after the most recently reported earthquakes in their area before they can purchase new earthquake insurance, due to the likelihood of aftershocks.
* The cost of an earthquake policy varies depending on factors, including the carrier and the policyholder’s desired level of coverage, but typically an Oklahoma homeowner might expect to pay between $100 and $150 per year for earthquake insurance.
* Earthquake policies frequently have nuances, such as providing or not providing coverage for brick or stone veneers on the home.
* Earthquake insurance carries a separate and often substantial deductible, apart from the standard homeowners deductible. Often this deductible is calculated as a percentage of the insured property’s value – commonly 5 to 10 percent, but occasionally lower or higher – meaning that a $100,000 home would require a deductible of $5,000 to $10,000.
* In 2003, the United States Geological Survey ranked Oklahoma tied with Illinois at No. 18 for earthquake frequency from 1974-2003. During those 30 years, both Illinois and Oklahoma reported 17 tremors of a magnitude 3.5 or greater on the Richter scale. (While California has a reputation for earthquakes, it was only No. 2 on the USGS list during that time with 4,895 reported tremors of 3.5 or greater; Alaska was No. 1 with 12,053 earthquakes, or 57.2 percent of all quakes reported in the U.S.)
* Quakes are on the rise in Oklahoma. As of this writing current USGS data suggest that Oklahoma has experienced nearly 30 quakes of a magnitude 2.7 or greater since early Saturday morning (http://earthquake.usgs.gov/earthquakes/recenteqsww/Quakes/quakes_all.html) with 10 of those reaching 3.5 or greater magnitude and another 14 registering between 3.0 and 3.4. More than 80 earthquakes of all magnitudes have been reported across the state in the last 30 days (http://www.okgeosurvey1.gov/pages/earthquakes/recent-earthquakes.php).
* In April, one of Commissioner Doak’s “Commissioner’s Corner” columns published in local newspapers around the state addressed the topic in a piece titled “Shaken But Not Broke: The Value of Earthquake Insurance.” (A copy of this column is attached.)
* On Oct. 28, after a series of minor tremors were reported in the state, Commissioner Doak issued a Consumer Advisory entitled “Recent Tremors Should Prompt Policy Review,” again urging Oklahoma consumers and insurance agents to explore available options for protecting their property and possessions from earthquakes. Commissioner Doak said: “In Oklahoma, we’ve been getting clues for some time now that a damaging event could be in our future. There is no time like the present to consider that future, and the policyholder’s potential need for earthquake coverage.” (Copy of the advisory also attached.)

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About the Oklahoma Insurance Department
The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.
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