Programming Chair Darryl
Downs introduced…
.TODAY’S PROGRAM....
Lakitsia Gaines
Changes at State Farm Insurance
Lakitsia Gaines Insurance
6295 Sunset Drive
South Miami, FL 33143
(305) 661-4213 / lakitsiagaines.qyfi@statefarm.com
Lakitsia, our happiest club member, is a Miami native who
attended New World of Arts High School and studied musical theater.
She is a fourth generation FAMU graduate.
She can boast that she is one of the top 5% earners of all State Farm
Agents in one of the top 100 firms in the country.
Her personal motto is that people don’t really care how much you know until
they know how much you care!
Her company’s motto is “Like a good neighbor, State Farm is there” and lots
of people stopped by the booth at the Art Show to discuss the current
situation of their FL pull-out.
Firstly, she thank you Rotary for the opportunity to offer scholarships and
offer opportunities. She is the recipient of a college scholarship. That’s why she brought
her children to the art show. She
wished to explain first hand what we do and why we do it. A crashed car
was next to the State Farm booth to show everyone attending that accidents
impact us all.
In order to work for State Farm, an agent must be a part of the community
and demonstrate that they care.
A farmer created this company so city drivers don’t pay the
same rate as country drivers.
There are 2.8 million State Farm drivers in FL.
We have more agents than McDonalds.
Lakitsia opened her office 3 years ago and she now has 17 employees.
Where are we?
~The entire state of FL is in a state of crisis due to
hurricanes.
~All of the claims and Cat 3 + hurricanes such as Wilma caused
a crisis from 2004-05 – a two year time span.
~Universal agreement amongst scientists this active cycle
started in 1995 with another 16 years to go.
Challenges to this state:
~FL’s coastline
~Concentration of the population
~High-rises and unmatched construction
~FL is responsible for ½ of the US hurricane problem. No
other state comes close. Next TX and then LA
~6 costliest of US disasters occurred in FL
~ FL leads in coastal residential property – 1 trillion.
NY then MA follow.
~Recent payouts in FL of $20 billion in 2004 and $10 billion
in 2005 will be dwarfed in the future. Next catastrophe like the
12/25/1926 hurricane will cost $130 billion
Bottom line – can’t put a band-aid on cancer and hope it will
heal Until there is federal reform where risk is spread throughout the country,
with no opportunity to raise rates, the problem comes in with non-A rated
companies
SO, Allstate Insurance Company filed to leave FL. This was
prior to State Farm’s (a mutual company) request.
As of January 27 2009, State Farm has discontinued fire
business. This will take effect with
established customers over the next two years. Go to your agent to
see how it impacts you.
1) No immediate effect to your coverage.
2) Products impacted: condo, church, umbrella,
rentals impacted
3) Not impacted 172 products: retirement,
licensing, auto insurance, mutual company (rated A++)
The Florida State Farm subsidiary is losing the $20 million
and asked for State Farm Mutual for loans to keep afloat. They will
be surrendering their certificate of authority issued by the state of FL
which will then dissolve the Florida subsidiary.
To reduce the insurance company’s exposure, they decided to
leave FL was to stop the loss of $20 million per month in claims. The parent company could not continue to
handling these volumes of losses from the volume of claims.
Forced Place Insurance for mortgage holders is usually 3-5X’s the regular
cost.
Save money on the increase by protecting your property with shutters,
impact resistant glass. State Farm’s
profit is returned back to the customer as a credit or as a check as all
policy holder’s are shareholders.
State Farm is a company of integrity – so they will only support companies
with more than 20 years of experience.
Each agent works with 16 other companies. State Farm offers a 10 year
accident free discount for drivers.
Lakitsia is a second generation State Farm policy holder. She vows to
help you find another fine company. The tail end of this is that we
want your years of hard work and assets protected.
For more information check out:
Office of Insurance Regulation’s website with the 29 page
submitted report.
~Citizens Insurance is the largest insurer in the state of FL.
Premium structure for east of US1 is much greater than West of US1. Wind and fire coverage written same cost
but Flood and hurricane is much more.
~Assumption Letter for 16 companies for a “take out”
program.
~Save average of 25% when your policy is assumed by these 16
companies.
~“Keep out” program allows the 16 to have a seemless move
instead of selling the policies.
Issues that caused the huge company payouts:
~Rains – Gov Crist regarded this as weather not hurricane
~Then the company could not require the 5% deductible used for
hurricane damages but had to use the basic $1,000 deductible
~Claims are not just submitted directly after the event –
sometimes it’s years later once the construction work is completed (with
many price increases)
~FL has Caps on profit and limits increases
What is the difference between:
~Bodily injury – paid to someone else when you are liable
~Personal injury – payment to you
when you are hurt
~MedPay – after personal injury payments are paids, then your
health insurance pays out.
Seasoned agents will have 30-75% of income affected by this pull-out. There will be a 10-15% income decrease
for newer agents like Lakitsia.
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