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From :
Lila Hayes
Sent :
August 10, 2005
Subject :
OFRG weekly update

Meeting Reminder

We are still looking for a place for this month's meeting.  Please contact me for details.
 
Lila Hayes
Old Fire Recovery Group
www.oldfirerecoverygroup.org
909-266-1459 vm/fax
 
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Index
 1. Book Review: Claim Paid, A Consumers Guide Through the Insurance Claims Maze
 2. Identity Theft Woes Linger
 3. New date of City Council meeting
 4. Homeowner and Renter Assistance by the California Franchise Tax Board
 5. Book Available: Insult to Injury
 
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In The News
 1. Tree Firm Is Accused of Negligence, August 10, 2005, LA Times
 2. [Washington] Wildfire Destroys 35,000 Acres, August 9, 2005, LA Times
 3. Carbon Monoxide Cited in Firefighter's Death, July 27, 2005, LA Times
 4. Award Winning Reporting done by the San Diego Union Tribune in 2001 on how Red Cross funds are spent
 
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1. Book Review: Claim Paid, A Consumers Guide Through the Insurance Claims Maze
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Claim Paid, A Consumers Guide Through the Insurance Claims Maze was written by Frank R. Dumas and published in 1989 by Stratton Press.

This is the fifth book I’ve read on insurance since the fires.  To date, this book has the most down to earth, step by step claims help of any book I’ve read.  Other books have been extremely helpful in other aspects, but this book is a nuts and bolts kind of book.

Here are some things I love about the book:

a.       Having both a glossary and an index at the end of the book make the book much more useful as a reference book.

b.       Has many insiders tips on how the insurance company works and how to get your claim paid.

c.       The chapter on hiring a lawyer is especially helpful if you’re considering litigation.  Even helpful if you are currently in litigation.

d.       If you have a small property claim or partial loss after a disaster, this book is definitely for you.

Here are some things that I don’t love about the book:

a.       Due to the age of the book, some of the tips sound hopelessly out of date (I have a strange feeling insurance companies no longer have a typing pool typing up checks), but the sentiment behind the words comes through loud and clear.

b.       There is not as much information on total losses as I would like.  I wonder in all of his years in the industry, how many total losses he actually adjusted.

c.       Talks a lot about collecting on Actual Cash Value without talking much about recovering the Replacement Cost.  The only thing I can figure is that maybe policies were different in 1989 in this regard although I have heard that most homeowner policies were guaranteed replacement after the 1991 Oakland Hills Fire.  I find this conflicting information very strange.

d.       Does not mention that replacing a home can cost more than building new.  He does not tell you how to determine this or how to get this money from the company.

e.       Tells the stories of several court cases without giving court references.

f.         He continuously gives the insurance industry way more credit than I would.  Admittedly, he had worked in the insurance industry for over 30 years and it definitely shows in the book.

This is definitely a book that should NOT be skipped over.  This book should be on every person’s shelf who owns an insurance policy of any kind.  If you ever have to file a claim, this book is definitely a must read.

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2. Identity Theft Woes Linger
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I mention this because Disaster Survivors tend to be identity theft victims more than everyone else.  At our last meeting I handed out
 
(26 July 2005)
A study from Nationwide Mutual Insurance Company found that 28% of those
who experienced identity theft were unable to completely restore their
good names even a year after the theft had been discovered and efforts
had been made to remediate the damage.  The average fraudulent charge
made to accounts was nearly US$4,000; 16% of those answering the survey
said they had to pay for some or all of those charges.  Only 17% of
those surveyed said they were notified of suspicious activity by their
banks or creditors.
http://www.techweb.com/wire/security/166402606
 
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3. New date of City Council meeting
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The San Bernardino City Council has asked to honor the Old Fire Recovery Group.  After much discussion, the date of this recognition is Monday, September 19.  The meeting starts at 3PM.  I hope to see you there!
 
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4. Homeowner and Renter Assistance by the California Franchise Tax Board
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Although this program is not specifically for disaster survivors, I included it for those who might benefit.
 
This program allows a once-a-year payment from the State of California to qualified individuals based on part of the property taxes assessed and paid on their homes. For the 2005 claim year, the maximum amount of assistance that an eligible homeowner may receive is $472.60, which is 139 percent of the property taxes paid of the first $34,000 of full value of the home (139% x $340.00). You may be eligible to file a 2005 claim if you are a United States citizen, designated alien or qualified alien when you file your claim and you met the following criteria on December 31, 2004:

Renter Assistance Program

This program allows a once-a-year payment from the State of California to qualified individuals based on part of the property taxes that they paid indirectly when they paid their rent. The maximum amount of assistance that a claimant may receive is 139 percent of $250.00, the statutory property tax equivalent (139% x $250.00), which is $347.50. You may be eligible to file a 2005 claim for Renter Assistance if you are a United States citizen, designated alien or qualified alien when you file your claim and you met the following criteria on December 31, 2004:

For more information (including claims forms and instructions) go to:
http://www.ftb.ca.gov/individuals/hra/index.html
 
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 5. Book Available: Insult to Injury
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Insult to Injury : Insurance, Fraud, and the Big Business of Bad Faith (Bk Currents) (Hardcover)
by Ray Bourhis
 
You Pay Your Insurance Company to Protect You in Case of Tragedy—But Will They Be There When You Need Them Most?
 
Synopsis
Joan Hangarter bought a disability policy in 1990 to protect her should she ever become seriously ill. She dutifully paid her annual premiums for nearly a decade. But when she became disabled, she and her children found themselves homeless and bankrupt when her insurer—UnumProvident—stopped paying her benefits. With the help of attorneys Ray Bourhis and Alice Wolfson, Hangarter won a landmark $7.7 million jury verdict against Unum.
 
Hangarter's dramatic story illustrates in shocking detail how insurance companies put profit above the promises they make to policyholders. Exposing the intricate systems insurance companies use to target and terminate expensive claims without just cause, Bourhis reveals the back-room mindset that drives these illegal practices. He shows how low-level employees are duped into unethical conduct, how insurers manipulate the facts and the law in the few cases that do go to trial, and exactly what ordinary people are up against when forced to take on this industry.
 
Bourhis paints a frightening picture of how key decisions by Congress and the US Supreme Court have enabled these schemes to continue unchecked—and he provides a sorely needed roadmap to reform.
 
"Ray Bourhis continues his strong commitment to justice by successfully taking on the insurance industry and criminal fraud in this compelling case study. He makes clear that we need to do much more to end the shameful abuses of the current system and guarantee honorable insurance coverage for every American." 
 —Senator Edward M. Kennedy
 
"What has happened to Joan Hangarter-and so many others like her-is a grave injustice.... Readers of this book should urge their congressional representatives to force the big insurance companies to honor their obligations just as the holders of those policies honor theirs."
—John Garamendi, Insurance Commissioner, State of California
 
"Painstakingly documented, hilarious, and insightful. A seething indictment of the out-of-control insurance industry..."
 —Amy Bach, Executive Director, United Policyholders
 
Available on Amazon.com (new or used) HERE or
 
Or directly from the publisher (new only) HERE
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In The News
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1. Tree Firm Is Accused of Negligence
San Bernardino County supervisors call the company irresponsible. Owner denies liability.
August 10, 2005
By Stephanie Ramos and Ashley Powers, LA Times Staff Writers
A company hired to remove dead and diseased trees from local mountains was dropped Tuesday by San Bernardino County supervisors after complaints that it operated for seven months without loggers' insurance, chopped down the wrong trees and spoiled the landscape.
 
[more HERE]
http://www.latimes.com/news/local/la-me-trees10aug10,1,3243418.story
 
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2. [Washington] Wildfire Destroys 35,000 Acres
Printed in the LA Times
August 9, 2005
From Associated Press
POMEROY, Wash. — Firefighters Monday continued to battle a 35,000-acre wildfire that had whipped through canyons, wheat fields and forest land in southeastern Washington, destroying dozens of homes and cabins.

Fire crews had good lines around three sides of the fire but remained concerned about heavy timber in the Umatilla National Forest to the south.
 
[more HERE]
http://www.latimes.com/news/nationworld/nation/la-na-wildfire9aug09,1,3164490.story
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3. Carbon Monoxide Cited in Firefighter's Death
July 27, 2005
From LA Times Staff and Wire Reports

Carbon monoxide may have disoriented Novato, Calif., firefighter Steven Rucker, who died while battling the fall 2003 Cedar wildfire in San Diego County.

A report from the National Institute of Occupational Safety and Health concluded that reduced oxygen in the blood, or hypoxia, would explain why Rucker appeared confused and walked toward flames when he was ordered to retreat to the safety of a house minutes before his death.
 
[more HERE]
http://www.latimes.com/news/local/la-me-sbriefs27.1jul27,1,3328582.story
 
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4. Award Winning Reporting done by the San Diego Union Tribune in 2001 on how Red Cross funds are spent
 
Union-Tribune won first place for public service, for investigative reporting by staff writers Norberto Santana, David Washburn, Kristen Green and David Hasemyer and commentary by editorial writer Alan Miller on the local Red Cross chapter's handling of fire relief funds and its subsequent misstatements to the public.
 
A collection of award-winning U-T Red Cross stories
 
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Old Fire Recovery Group
www.oldfirerecoverygroup.org
909-266-1459 vm/fax