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Drivers Beware Lindsay Lohan Offers Lessons in Auto Insurance


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									                       Drivers Beware: Lindsay Lohan Offers
Drivers Beware:        Lessons in Auto Insurance
Lindsay Lohan offers   By Patricia-Anne Tom
lessons in auto
insurance              In all the commotion of Lindsay Lohan’s fall from
pg 1-2
                       grace, little attention has been paid to the impact
Many May Outlive       her risky behavior will have on her insurance
Their Retirement       — auto, home, life, and health. But consumers
Savings                can learn from her mistakes, according to the
pg 2
                       Insurance Information Network of California.
Web site in the
spotlight!             Using Lohan’s profile, ZIP code, vehicle model and
pg 3                   current record of two DUIs and an at-fault car
                       accident, IINC determined the average insurance
Insurance Institute
                       premium difference she could pay for automobile
Names 2 Luxury
Cars Top Safety        insurance because of her risky behavior.
pg 3                   A single, 24-year-old female who lives in Beverly Hills ZIP code of
                       90210 (she lives in a condo in West Hollywood) and drives a 2009
Many Americans
                       Mercedes SL550 convertible would have access to 100 percent of the
Still Confused
About Healthcare...    insurers offering auto coverage in California, IINC said. With a clean
pg 4                   driving record, Lohan would pay approximately $2,075 every six
                       months for a full coverage policy. But because of the at-fault accident
$25 gift certificate   and two DUIs on her driving record, the six-month premium jumps
for referral
                       to $7,408.90. Worse yet, she would only have access to less than 10
Great ABM program      percent of the companies in California offering auto coverage because
pg 5                   most of the major insurers in the state would not want to insure her.
                       Instead, she would probably have to purchase coverage for bad drivers
Lottery Fraud Alert    through the Department of Insurance, IINC said.
pg 5

Tread Carefully        Furthermore, her risky behavior also could affect the premium she
pg 5                   would pay for life insurance, as some life insurers will pull a DMV
                       record when determining a customer’s premium, the association
Dog Bite Claims        indicated.
Top $400M in 2009
pg 6
                       “Before we initially did the analysis, we thought her insurance would
Junior Estate          double,” said Pete Moraga, communications specialist for IINC. But, the
Builder                increase in her premium because of her driving record is 350 percent
pg 7                   more because she made some bad choices, compared to if she had a
                       clean driving record.                                   Continued on page 2
Continued from page 1
“The big picture is that all of us can learn from her mistakes,” Moraga said. “People don’t
always understand that what they pay for insurance is based on their own risk profile…and
risky decisions we make in our daily lives will impact that cost.”

A DUI stays on a person’s driving record for 10 years, for instance.
Lohan might be able to afford paying nearly $15,000 for auto insurance, but for the general
public, it’s important to know that the decisions we make and risks we take will affect your
pocketbooks, Moraga said. “If we take risks and make bad decisions, our insurance will be
much more expensive.”

Many May Outlive Their Retirement Savings
                               Given the recent recession and subsequent economic malaise,
                               there is a common perception that many Americans will not have
                               adequate funds and resources to maintain a reasonable standard
                               of living in retirement. So in light of the current economic news,
                               independent insurance agents would do well to note the results
                               of the 2010 EBRI Retirement Readiness Rating™ from the
                               nonpartisan Employee Benefit Research Institute (EBRI). They
                               released their most recent findings which indicate that well over
                               one-third (41%) of Americans in the lowest preretirement income
                               level will be running short after just 10 years in retirement. In
                               addition, the EBRI Retirement Readiness Rating™ finds that after
20 years of retirement, almost one-third (29% ) of those in the next-to-highest income level
will run short of money, as will more than 1 in 10 (13%) of those in the highest-income level.

The risk that someone will outlive their retirement income is known as “longevity risk.” It is not
simply a function of the fact that Americans are living longer but also the inability of people
to save money to supplement Social Security. It is understandable that the lowest income
earners have difficulty accumulating adequate retirement income. That is the chief reason that
Social Security benefits are front-loaded—e.g. provide a disproportionately higher benefit level
for lower wage earners. However, the table indicates that a significant percentage of middle
class and upper middle class Americans will not have adequate funds to sustain 20 years of
retirement. This will become an enormous policy issue for the government to wrestle with in
coming years. And, it is recognized that Social Security benefits will have to be modified in the
coming years to deal with the actuarial and fiscal reality that the current eligibility and benefit
levels are unsustainable.

An individual or family is considered to “run short of money” if their aggregate resources in
retirement are not sufficient to meet aggregate minimum retirement expenditures—defined as
a combination of basic expenses from the Bureau of Labor Statistics’ Consumer Expenditure
Survey and some health insurance and out-of-pocket health-related expenses, plus expenses
from nursing home and home health care expenses, at least until the point they are picked up
by Medicaid.

You should be having conversations with you agent or financial advisor to discuss what steps
they are taking and what avenues are available to save in a tax-efficient manner. For many
Americans in their fifties and early sixties, their retirement plan was to cash in on the increased
value of their homes and take advantage of the twenty five year bull market. Unfortunately,
there has not been a meaningful recovery in home values and in the stock market to grow
personal balance sheets to a level to provide adequate retirement income for 20 or more years
of retirement. This study indicates that Americans will have to work longer, save more and
revisit their planned standard of living in retirement.
 In the Spotlight!
 Web site provides quick affordable quotes!
   Our new improved web site provides a chance for those looking to price out their Auto or
   Home insurance online and receive a call from a certified agent. It gives people a chance
   to shop their current insurance or to see what they can save on, stated Mike Alexander Jr.,
   Managing Director of ABM

Insurance Institute Names 2 Luxury Cars Top Safety
The Insurance Institute for Highway Safety has recognized the 2011 Cadillac CTS and Infiniti
M37/M56 with top safety pick awards. Both vehicles received the top rating of good in recent
roof strength tests that assess how well vehicles would protect people in rollover crashes.
The Lexus GS and Audi A6, both tested as 2010 models, were rated acceptable, and the
Acura RL, also a 2010, was rated marginal for rollover protection.

The CTS and M37/M56 had good ratings in all 4 Institute safety evaluations, and electronic
stability control, which research shows can help drivers stay out of crashes altogether.

“The test results show that manufacturers are moving quickly to improve the rollover safety
of their newest designs,” says Institute president Adrian Lund.

The BMW 5 series, Hyundai Genesis, Lincoln MKS, Mercedes E class, and Volvo S80 also are
Top Safety Pick winners in the large luxury class based on test results released earlier.

The Institute evaluates rollover protection using a roof strength test. In this test a metal
plate is pushed against one corner of a vehicle’s roof at a constant speed. The maximum
force sustained by the roof before 5 inches of crush is compared to the vehicle’s weight to
find the strength-to-weight ratio. This is a good assessment of vehicle structural protection
in rollover crashes. Good rated vehicles have roofs that can withstand a force equal to at
least 4 times the vehicle’s weight.

                                 Cadillac CTS                                  Infiniti M37
Many Americans Still Confused About New Healthcare
Reform Law and Its Provisions
Lack of understanding linked to rhetoric that preceded the final vote in March, and the
complicated nature of existing health-care system

                                                   NORWALK, Connecticut, USA - Not sure what’s
                                                   in-and not in-the new healthcare legislation
                                                   signed into law by President Barack Obama
                                                   in March? You’re not alone. More than 2,100
                                                   adults were given a list of 18 reform items and
                                                   asked to identify what’s included and what’s
                                                   not included in the law. Only four items were
                                                   correctly identified by the majority of those

                                                   Most (58 percent) know that the reform
                                                   package will prohibit insurers from denying
                                                   coverage to people because they are already
                                                   sick; 55 percent know the law permits children
                                                   to stay on their parents’ insurance plan until
                                                   age 26; and 52 percent realize that people
                                                   who don’t have insurance will be subject to
                                                   financial penalties. Additionally, half are aware
                                                   that employers with more than 50 employees
                                                   will have to offer their workers affordable

These are some of the major findings of today’s Health Day/Harris Poll, conducted between July
15 to 19, 2010 among 2,104 adults (aged 18 and over).

Among other findings: 82 percent think the bill will result in rationing of health care or that it
might (it won’t); 79 percent don’t know or aren’t sure if drug companies will pay an annual fee,
(they will); 73 percent don’t know the law establishes a new tax on the sale of medical devices;
66 percent don’t know or aren’t sure if the legislation will result in insurance exchanges where
people can shop for insurance, (it will); and 63 percent either aren’t sure or don’t know if the
new law will increase the number of people eligible for Medicaid, (it will).

“The problem for the (Obama) administration is healthcare reform is fiendishly complicated
because the healthcare system is fiendishly complicated, and it is not politically feasible to
tear up the system and build it again,” said Humphrey Taylor, chairman of the Harris Poll,
Harris Interactive’s long-running public opinion poll. “Instead you have to build on the system
that you have. When you try to build on a fiendishly complicated system, you have fiendishly
complicated reforms.”

Another cause of the confusion is due to the long and heated political debate that surrounded
the bill before it was passed, Taylor said.

“The level of ignorance and misinformation is sort of astounding,” he said. “It seems people are
still reacting to the rhetoric, not the substance of what is in the bill, because they don’t actually
know what is or is not in the actual legislation.”
ABM Insurance Services offers an array of services that many of our customers are not
aware of. Be sure to ask your representative about our bonus referral program which
rewards our clients who send us business with instant savings or gift cards to your favorite
store or restaurant.

                                      ABM offers $25 gift certificate for
                $                     those who refer a client to us and
                                      they buy a policy with ABM.

Gift Certificates available for:

Lottery Fraud Alert
Safeco Insurance Company (a member of the Liberty Mutual Group) has
become aware of an increasing number of fraudulent letters claiming
that the recipients have won a lottery. The letter is accompanied by an
official-looking Safeco check. These are counterfeit checks and should
NOT be deposited or cashed. The lottery letters often ask the recipient to
call an international phone number and to submit personal and banking

Safeco does not sponsor, promote or engage in lotteries. Our business is insurance, not

If you or one of your customers receives one of these letters or counterfeit Safeco checks,
we strongly recommend that recipients NOT attempt to deposit or cash the check, and do
not send any personal information or money to the organizations or persons listed in the

To report these fraudulent lottery letters and counterfeit checks agents and customers can
e-mail us at abuse@LibertyMutual.com.

Tread Carefully – How To Choose The Right Tires
Tire “health” is a key element of safe driving, no matter what the weather’s like. If tread
depth is 1/16 inch or less, they need replacing. If your vehicle has all-wheel drive, a tire
store might recommend replacing all four at once. While this is not a legal requirement, it
does ensure a better match and safer, smoother driving.

                      Of course, whether you’re replacing one or more, tire quality and
                      endurance varies considerably by price and brand. For the best trade-
                      off between quality and cost, all-season tires with a 50,000 mile rating
                      are a good choice. When comparing your options, remember to check
                      if fitting and balancing will cost extra. Some stores may charge for
                      optionally using nitrogen to inflate tires, but there’s little evidence this
                      produces any significant benefit.

                      The New York Times owned ConsumerSearch site has lots of useful
                      tire-buying information at http://www.consumersearch.com/tires
Dog Bite Claims Top $400M in 2009; Rise 30% in Last 6
                                    Dog bite claims cost the insurance industry $412 million in
                                    2009, an increase of 6.4 percent from 2008.
                                    Dog bites account for more than one-third of all
                                    homeowners insurance liability claims paid out in 2009,
                                    says the Insurance Information Institute (I.I.I.).

                                    An analysis of homeowners insurance data by the I.I.I.
                                    found that the average cost of dog bite claims was $24,840
                                    in 2009, up slightly from $24,461 in 2008.

                                   Over the six-year period since 2003, the cost of these
claims has risen nearly 30 percent. Additionally, the number of claims increased by 4.8 percent
to 16,586 in 2009 from 15,823 in 2008.

“The rise in dog bite claims over the last seven years (2003-2009) can be attributed to
increased medical costs as well as the size of settlements, judgments and jury awards given
to plaintiffs, which have risen well above the rate of inflation in recent years,” said Loretta
Worters, vice president at the I.I.I.

With more than 50 percent of bites occurring on the dog owner’s property, the issue is a major
source of concern for insurers.

More than 4.7 million people in the United States are bitten by dogs annually, and nearly
900,000 of those, half of them children, require medical care, according to the Centers for
Disease Control and Prevention (CDC). Of those injured, 386,000 require treatment in an
emergency department and about 16 die.

The rate of dog bite related injuries is highest for children aged five to nine years old; the rate
decreases thereafter. Almost two-thirds of these injuries among children ages four years and
younger are to the head or neck region. Injury rates in children are significantly higher for boys
than for girls.

Dog Owner Liability:
There are three kinds of law that impose liability on owners:
      1. Dog-bite statute: The dog owner is automatically liable for any injury or property
      damage the dog causes, even without provocation.
      2. “One-bite” rule: In some states, the owner is not held liable for the first bite the dog
      inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise
      displaying a “vicious propensity,” the owner can be held liable. Some states have moved
      away from the one-bite rule and hold owners responsible for any injury, regardless of
      whether the animal has previously bitten someone.
      3. Negligence laws: The dog owner is liable if the injury occurred because he or she was
      unreasonably careless (negligent) in controlling the dog.

In most states, dog owners are not liable for losses incurred by trespassers who are injured
by a dog. A dog owner who is legally responsible for an injury to a person or property may be
responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering
and property damage.
Attention parents
& grandparents:
Provide your child
with a gift of a
340 N. Sam Houston Pkwy suite #185
Houston, TX 77060                  “Dorothy, I want to take a moment to truly thank you for all your assistance
www.getagreatquote.com             in helping me secure and keep my home insurance. From our initial contact
                                      via e-mail, you did the one thing I could not get any other insurance agent to
Drivers Beware: Lindsay Lohan         do...you listened to me. Not once but twice you came to my assistance and
offers lessons pg 1-2                 made me feel that I was the only customer you had. That is very rare these
                                      days! ABM Insurance has an extraordinary employee in you.”
Many May Outlive Their                                                                       -Katryna S.
Retirement Savings pg 2

Web site in the spotlight! pg 3

2 Luxury Cars Top Safety Picks
pg 3

Many Americans Still Confused
About Healthcare pg 4

$25 gift certificate for referral
purchase pg 5

Lottery Fraud Alert pg 5

Tread Carefully pg 5

Dog Bite Claims Top $400M
pg 6

Junior Estate Builder pg 7

   Are you aware of the changes in 2010 and 2011 for
    Our office has over 73 Medicare Supplement carriers and 21 Medicare Advantage
    carriers that can reduce your out of pocket cost for medical care. Having specialized
    in the Medicare business for the past 20 years, I have the knowledge and experience
    to provide you, your friends and loved ones with the best value in the market.

    I invite your inquiries and look forward to helping our customers save money!

    Call me or my staff, you will be happy you did.

    Mike Alexander Sr.
    Tel: 281.448.3040

 ABM provides cost effective options for all insurance needs including:
  Health      Worker’s compensation               Dental        Retirement Planning
  Life        General Liability                   Auto          Homeowner’s

                                        Call ABM and if we can not save you money on your Auto insurance
                                        we will send you a gas card! You will save money somehow, with
                                        just one phone call.


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