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August 2013

SEXUAL HARASSMENT: SOME FOLKS STILL DON’T GET IT!

By Your Employee Matters

The recent Westendorf v. West Coast decision by the Ninth Federal Circuit Court of Appeals offers yet another example of management’s failure to understand that sexually hostile behavior is not permitted in the workplace. In this case, the boss and coworkers said the plaintiff was doing “girly work,” talked about the large breasts of another woman with her, made tampon jokes, joked about orgasms, and eventually started cursing at her. As mentioned in previous articles, whether she eventually ends up winning or losing isn’t the point. Either way, the employer now finds itself as a named defendant in a nationally publicized lawsuit that will cost it tens, if not hundreds, of thousands of dollars to defend what amounts to stupid and boorish conduct.

In this case, the plaintiff never reported the alleged harassment to a human resources officer. Perhaps if she had an alternative channel of complaint other than through the ranks, she would’ve received appropriate attention. Apparently the boss did admonish a manager and coworkers to quit the harassment, but when they continued it, the plaintiff just couldn’t take it anymore.

The court ruled that although the sexually hostile conduct was not severe or pervasive enough to alter the terms of her employment and support a sexual harassment claim, she might have faced retaliation for bringing the claims in the first place. It’s important to note even though this case was decided on April 1, 2013 dealing with conduct that ended in July 2008, it has yet to go to trial! I can only imagine what it could have, and should have, been settled for soon after filing, rather than slogging through the courts for the past five years. This doesn’t benefit either the plaintiff or the defendant – but it certainly helps fill counsel’s billable hour requirements.

EDITOR’S COLUMN: THE HR ALCHEMIST

By Your Employee Matters

In one of my favorite new age books, The Alchemist, author Paulo Coelho discusses four obstacles to realizing the journey towards our Personal Legend:

  1. The first obstacle is resignation to failure. We’re told from childhood onward that everything we want to do is impossible. In many cases, we’re the ones telling ourselves this – and we believe it!
  2. The second obstacle is misunderstood love. Says Coelho, “We know what we want to do, but are afraid of hurting those around us by abandoning everything in order to pursue our dream.” In a sense, we’re afraid to change because the people around us might not love us as much if we do. For example, they might view us as a threat, mirror our own inadequacies, or break away from the norm or culture. Coelho encourages us to accept that love is a stimulus; that the people who truly love us want the best for us: to be worthy of the miracle of life.
  3. The third obstacle is the fear of failure. According to Coelho, “We warriors of light must be prepared to have patience in difficult times and to know that the Universe is conspiring in our favor, even though we might not understand how.” In my personal experience, when we follow our passions we get what we ask for – just not when or how we expect it. There is no journey without roadblocks, setbacks, and challenges. This is what strengthens us. Our character is no different than our muscles: You use it or you lose it.
  4. Finally, there’s the obstacle of self-sabotage. As Oscar Wilde said: “Each man kills the thing he loves.” According to Coelho, the mere possibility of getting what we want fills our souls with guilt. We ask ourselves, “Who am I to be so fortunate when there are so many people in pain? Do I somehow think that I’m now better than other people because of my success?’ The ancient Greek term was hubris. When we become too full of ourselves and our accomplishments, the end is near. That’s why the journey is never about arriving, but traveling forever. Says Coelho, “I’ve known a lot of people who, when their personal calling was within their grasp, went on to commit a series of stupid mistakes and never reach their goal – when it was only a step away.” I know many of those people too.

When you think about your career, where have these obstacles shown up? Where do you have personal doubts about your ability to accomplish your Personal Legend? Who or what is attempting to hold you back from meeting these goals – or is this a story of your own making? Are you willing to accept that the journey toward success is guaranteed to come with more suffering than for those who are willing to simply be comfortable? Finally, are you willing to find joy in your success without the need to sabotage it?

Here are some Coelho quotes from The Alchemist:

  • “If someone isn’t what others want them to be, the others become angry. Everyone seems to have a clear idea of how other people should lead their lives, but none about his or her own.”
  • “There is one great truth on this planet: whoever you are, or whatever it is that you do, when you really want something, it’s because that desire originated in the soul of the universe. It’s your mission on earth.”
  • “To realize one’s destiny is a person’s only real obligation.”
  • “The only reason why each day feels the same as the next is because people fail to recognize the good things that happen in their lives every day that the sun rises.”
  • “I’m an adventurer, looking for treasure.”
  • “Making a decision is only the beginning of things. When you make a decision, you’re really diving into a strong current that will carry you to places you had never dreamed of when you first made the decision.”
  • “When a person really desires something, all the universe conspires to help that person to realize his dream”
  • “Every search begins with good beginner’s luck. Every search ends with the victors being tested severely.”
  • “When you possess great treasures within you, and try to tell others about them, you are seldom believed.”
  • “When something evolves, so does everything around it as well.”
  • “When we strive to become better than we are, everything around us becomes better, too.”
  • “The world’s greatest lie is that we lose control of our own lives and must let them be controlled by fate.”
  • “Be worthy of the miracle of life.”

FIVE WAYS TO KILL LIFE INSURANCE PAYOUTS

By Life and Health

You buy Life coverage to provide for your loved ones after your death. To make sure your beneficiaries receive what they’re owed, avoid these errors:

  1. Lying on your application. Truth hurts, but it can hurt even more if you lie on a Life insurance application. Although it might be tempting to deny that you’re a smoker, or have been treated for a particular disease or medical condition, doing so could make your policy null and void.
  2. Failing to make premium payments. Just because you miss a payment doesn’t mean your policy is dead. The insurance company will usually offer a 30 or 60-day grace period for payment, during which the policy will stay in effect.
  3. Not telling loved ones about your policy. Although this doesn’t mean the insurer won’t pay the beneficiaries after your death, it will make things more difficult for them. Most companies check databases for policyholder deaths, but not always in a timely manner. If you don’t give your beneficiaries policy information, some states have locator programs to help them check. The American Council of Life Insurers (ACLI) website also provides tips for tracking policies.
  4. Not naming other beneficiaries. If your primary beneficiary dies ahead of you, the secondary beneficiary will receive the death benefit. If he or she passes away before you, the proceeds will go to the final beneficiary. If both deaths precede yours, the benefit will go to your estate.
  5. Suicide. In It’s a Wonderful Life, Jimmy Stewart thought (wrongly) that he was worth more dead than alive because his family could collect on his Life insurance. However, under the “suicide clause” in a Life policy, if a policyholder takes his or her own life during the first two years of coverage, the beneficiaries would receive only the premiums paid to that point.

WHY YOU SHOULD BUY MANDATORY HEALTH INSURANCE NOW

By Life and Health

The main reason that Americans go bankrupt is because of unpaid medical bills. Most of these people carried Health insurance, but didn’t have enough coverage. It’s your health, and as a consumer, your responsibility, to look out for yourself.

As of next January 1, the Patient Protection Affordable Care Act (PPACA) will require all adults to buy a Health policy or face a tax penalty, The penalty for not carrying insurance in 2014 will be the higher of $95 a year per person or up to 1% of annual income. Starting in 2016, this will rise to $695 per individual or 2.5% of annual income, whichever is higher. For families, the penalty will be capped at $285 in 2014, rising to $2,085 or 2.5% of household income in 2016.

The good news: as of October 1, 2013, online Health insurance marketplaces or “exchanges” in every state will open their virtual doors for business, selling coverage that will take effect on January 1. What’s more, individuals and families with incomes between 100% and 400% of the federal poverty level who buy through these exchanges will receive subsidies or tax credits on a sliding scale to help pay for premiums.

These marketplaces will offer a variety of Health coverages, and the tax credits or subsidies can help you afford a level of care that suits your needs.

Don’t wait to be told to buy insurance. Start looking at your options now! As an early adopter, you’ll be more likely to find a plan with a better rate, one that saves your wallet, and – should you ever need it – your health, as well!

For more information, please feel free to get in touch with our agency.

PROTECT YOUR GROWING FAMILY WITH LIFE INSURANCE

By Life and Health

A Life insurance policy is one of the best gifts you can give your new child. If you die suddenly, the policy will become a wellspring of cash for your kid when he or she needs it most. However, Life insurance isn’t free. Check out these proven ways to get the best value for your premium dollar:

  • Choose a Blended Whole Life policy. This type of coverage combines elements of Term and Whole Life insurance. Essentially, it’s priced like a Term policy, but offers the cash value of Whole Life. When you no longer need coverage, you can cash in the value of the policy and receive all your premiums back (as long you’ve held it long enough for the cash value to equal your total premium payments) or transfer it to your child.
  • Raise deductibles on your other policies. Although this isn’t without risks, it might be worth increasing the deductibles on your Automobile and Homeowners policies and use the savings to buy more Life coverage.
  • Adjust your withholding. Many people receive a refund check at tax time. Surprise – the IRS doesn’t like doling out these checks; it would prefer you to optimize your withholding. By using the IRS withholding calculator (www.irs.gov/Individuals/IRS-Withholding-Calculator), starting with your next pay period you can receive more money, which you can invest in additional Life insurance coverage.
  • Refinance. If you have a home or car loan, consider refinancing it. If the principal on your loan is low enough, you can reduce your monthly principal and interest payment. Don’t roll your eyes. The difference might be substantial – several hundred dollars a month –more than enough to finance Life premium payments.

To learn more, just give us a call.

DON’T LET YOUR LONG-TERM CARE BENEFITS ERODE!

By Life and Health

Inflation gnaws on everything, including your Long-Term Care (LTC) insurance benefit. However, more and more insurance companies are offering a Guaranteed Payout Option (GPO) – also known as a Future Purchase Option (FPO) – policy rider that can ease the bite.

Says American Association for Long Term Care Insurance (AALTCI) director Jesse Slome, “A GPO allows more people to buy coverage they can afford. You can lock in meeting the required good health qualifications ,along with the advantage of lower rates, plus you still have the ability to increase coverage in future years — an extremely attractive combination.”

Buying a GPO will add 2% to 3% to your annual LTC premium, depending on your age when you exercise the option. The daily benefit increases more rapidly in the early years of the policy – an advantage for those 70 or older, who are likely to need long-term care fairly soon; it will be less of a bargain for younger people unless they’re prone to illness.

A large number of insurance companies offer GPOs or FPOs. Some companies allow you to increase coverage every two or three years, while others won’t offer this option if you reject hiking coverage two or more times in a row.

Standard “simple inflation” and “compound inflation” LTC riders differ from GPOs because they increase the AAbenefit automatically. A simple inflation rider increases the original benefit by 5% a year, while a compound inflation rider would boost the benefit by 5% compounded annually.

For a complimentary review of which LTC inflation rider would be best for your situation, feel free to get in touch with the Health insurance specialists at our agency.

KEEP YOUR HOME IN TOP CONDITION – AND YOUR PREMIUMS DOWN

By Personal Perspective

Many consumers have faced rapidly escalating Homeowners insurance premiums during the past few years. In some cases, they’ve had trouble getting coverage, particularly if they have filed several claims.

To reduce the possibility of future losses, you can take a number of precautions, including:

  • When washing machine hoses start to deteriorate, replace them with stainless steel hoses, for which your insurance company might offer you a discount. The hoses should not rub against the wall. Also, to prevent leaks, turn off the machine’s water faucet when the appliance is not in use.
  • If you experience a water leak, make sure it that it’s repaired properly and remediated as soon as possible; this might include removing and replacing building materials, such as sheetrock. For larger leaks, call in a professional that specializes in remediation. These measures will reduce the possibility of hazardous and expensive mold losses down the road.
  • Consider an automatic water shut-off system for your home. These systems have sensors which detect water leaks and send a wireless signal that interacts with the shut-off valve to turn off the water to the home. Some insurance companies offer discounts for these systems.
  • Maintain your roof in optimal condition. A quality roof inspection on a periodic basis can identify sections that need repair, and thus prevent water losses. If you live in an area that’s prone to windstorms, use roofing materials that are resistant to high winds.

To learn more about keeping your Homeowners premiums under control – and making sure that you have the coverage you need – please feel free to get in touch with us at any time.

For more recommendations on repair and maintenance of your home, please feel free to get in touch with our agency at any time.

IDENTITY THEFT INSURANCE

By Personal Perspective

Identity theft claimed 12.6 million victims in the U.S. last year – and can victimize you at any time! It’s all too easy for bad guys to pilfer your e-mail, take a photo of your credit card (including your security code), or even install “malware” that records every keystroke on your computer.

Identity theft can clean out your bank accounts, devastate your credit, and even result in charges of fraud against you. Although credit monitoring can alert you to the theft, you’ll still face the tedious, costly – and often lengthy – process of restoring your credit and, possibly, of clearing your good name. For example it might easily take months, or even longer, to settle fraudulent bills with your creditors.

Identity Theft insurance can help! As a rule, this coverage will reimburse you, up to the policy amount – which can range from $10,000 to $1,000,000 – for many of the costs of restoring your identity and credit rating, such as:

  • Notification of your banks, creditors, and credit agencies of the theft by phone or mail (including notarization of documents, registered or certified mail, etc.).
  • Replacement of lost or stolen identity documents – such as passports and, Social Security cards.
  • Attorney fees (if needed).
  • Lost wages, for time taken from work to deal with the theft.

Some policies also offer such benefits as providing restoration services to guide you through the process and an emergency cash advance if the theft occurs while you’re away from home.

Identity Theft insurance usually costs $20 to $100 a year, with an annual deductible of $100 to $150. You can either add it to your Homeowners policy or buy it as a separate coverage. We’d be happy to recommend the policy that’s best suited to your needs.

FOUR TIPS TO AVOID DOG BITE CLAIMS

By Personal Perspective

Dog bites cost insurers $489 million in 2012 – more than a third of all Homeowners Liability claims, says a study by the Insurance Information Institute and State Farm!

Pet owners can help prevent bites by following these guidelines based on the instinctual behavior of their best friends:

  1. Consider your dog’s “rank.” Canines have superior/subordinate relationships similar those in to the military; the rank of family and guests dictates a dog’s behavior towards them. A high-ranking “general” dog won’t tolerate insubordinate behavior from a perceived lowly “private” child or guest, such as trying to take food or toys away from him.
  2. Don’t yell. Because your dog doesn’t know you’ve ordered pizza, he’s agitated by the “threat” of the delivery at the door and starts barking. Yelling at him to stop increases his anxiety, so, when the door opens, he bites the delivery person. Instead, it’s best to greet guests at the door and reassure your dog.
  3. Treat strangers as friends. Dogs respond to their owners’ behavior about the safety of a situation. A dog can easily perceive a stranger who meets and interacts formally with its owner as being an enemy – or prey. Owners who hold a leash too tightly can unwittingly trigger a dangerous “fight or flight” response in their dogs. Relaxing and acting like a friend when you meet strangers should elicit a friendly response from the dog.
  4. Don’t let your dog feel trapped. Dogs don’t care about your home, car, or the valuables they might contain. When they’re in a home or car, they can easily feel trapped in an enclosed area and will respond to strangers with a fight-or-flight reaction. You need to: 1) to train your dog to signal someone’s approach calmly; and then 2) assert authority over the situation.

POINTS, TICKETS, TRAFFIC SCHOOL – AND AUTO INSURANCE

By Personal Perspective

So the police pulled you over and you got a speeding ticket? Don’t despair. Along with the chunk of change you’re required to send the state or city, you might be eligible to take a traffic class that will keep the points off your record — and your Auto premiums from rising.

In 41 states, the DMV transfers these points to your driving record. Insurance companies generally check this record when you take out or renew an Auto policy, change coverage, or drop or add cars and/or drivers.

Garner a few points and your premium will increase at renewal, especially if you have more than one violation in three years. For instance, according to Insurance.com, a speeding ticket will raise your premium by 11% to13%.

To keep your record clean and avoid a surcharge if you’re cited for a minor violation, you might be able to complete an in-person or online traffic course. Laws, deadlines, and limitations vary by state. Most states also allow drivers who have accumulated points to have them removed by taking a safe driving class.

If you have a clean driving record and go to traffic school, most insurance companies will offer a 5% to 15% discount on Liability and Collision coverage when you renew your policy.

As a rule, taking a driver safety class will either remove points from your record for minor violations or give you a discount, but not both.

There might be some variations, depending on state laws and insurance company. For example, only drivers over age 25 might be eligible for the discount, or all drivers of the insured vehicle must take the course to qualify.

For more information, just give us a call.