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A sign of the economic times
Reverse mortgages available to help area seniors
By JOHN KOZIOL
jkoziol@citizen.com
Article Date: Monday, September 22, 2008
Picture
DARYL CARLSON/CITIZEN PHOTO RUSSELL BUKER was on hand to discuss reverse mortgages with interested participants during a seminar in Laconia last week. Similar programs were held earlier this month in Plymouth.
If you're 62 or older and want or need some extra money, then a reverse mortgage might be for you.
That's the message Russell Buker is trying to spread throughout the Lakes Region to seniors who are feeling the pinch of the current economic slowdown, or who just want to improve their lifestyles.
"Anybody can get a reverse mortgage loan as long as they own their house," Buker said recently during a reverse mortgage seminar at the Belknap Mill, and the proceeds can be used for "anything you want," including a second home.
NOTE: REVERSE MORTGAGE IS COMMONLY PRACTICED BY THE ELDERLY.
Proceeds from reverse mortgages can be paid in a lump sum, monthly, as a credit line or a combination of the three. Repayment of the reverse mortgage is due when the applicant no longer uses the mortgaged property as their primary domicile, when, as Buker noted, "You permanently leave your house," due to relocation to a nursing home, to another residence or death.
Reverse mortgages have been around for about 10 years, said Buker, but have become prominent in the last 3-4 years. He added, however, that they remain misunderstood and some people fear them because they sound "too good to be true."
"A lot of seniors are literally in debt," he said, and a reverse mortgage could be a good way out for them.
In response to the "negativism" surrounding reverse mortgages, Buker holds occasional seminars on the subject and he hands out a pamphlet that corrects eight of the "myths" behind reverse mortgages.
Among the myths the pamphlet addresses are that "you sell your house to the bank" when the reality is that "you always keep title of your house and have complete control over it."
Also, you cannot be forced from your home, nor do you have to be debt-free to qualify for a reverse mortgage. Homeowners can get a reverse mortgage but must first pay off any current mortgages or debts.
There are no income qualifications to obtain a reverse mortgage, which is based on the applicant's age, value of their home, amount of equity in the home and current interest rates.
Money received under a reverse mortgage is considered a loan, not income, meaning that an applicant's Medicare and Social Security benefits will not be affected.
Heirs to a property that has a reverse mortgage on it can repay the loan when it becomes due or sell the property and use the money to repay the reverse mortgage.
Also, there are no monthly payments and reverse mortgages can be obtained for condominiums, multi-family dwellings as well as manufactured housing.
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Wednesday, September 24, 2008
KIM'S CONSORT: A KEY PLAYER IN NORTH KOREA?
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Kim's consort: a key player in North Korea?
Thursday, September 18, 2008
By HYUNG-JIN KIM, Associated Press Writer
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SEOUL, South Korea — Kim Jong Il's companion and former secretary is emerging as a key player in the communist nation after the autocratic leader's stroke.
South Korean officials are keeping a close eye on Kim Ok amid some intelligence reports that she's not only nursing the ailing leader but also is signing official documents on his behalf.
NOTE: KIM IS WELL KNOWN IN SEOUL.
Experts believe the communist leader is retaining a firm grip on power, running the nation from his bed with the help of military and communist party chiefs in line with the nation's "songun," or military first, policy. But they are not discounting the role of the woman who is seen by some as the de-facto first lady.
"She is the closest person personally to Kim Jong Il," said Marcus Noland, a North Korea expert at the Peterson Institute for International Economics in Washington. "In some ways, she's the one guarding the bedroom or hospital door. She would be in a position to convey his preferences."
Kim, 66, reportedly suffered a stroke last month and is recuperating following emergency brain surgery _ though North Korean officials deny the communist leader, who was last seen in public more than a month ago, is ill.
The notoriously secretive nation bars ordinary citizens from Web access and most cannot make international phone calls. Late founder Kim Il Sung engineered a cult of personality that encompassed himself and his son, and which tolerates no criticism or opposition.
Kim Jong Il was groomed for 20 years to take over as leader, finally assuming the mantle after his father's death in 1994 in the communist world's first hereditary transfer of power. He has three sons _ Jong Nam, Jong Chul and Jong Un _ but does not appear to have anointed any of them as his heir-apparent.
The longer Kim _ known to have diabetes and heart disease _ remains bedridden, the greater the likelihood of a power vacuum, analysts say.
NOTE: DIABETES AND SURGERY DOESN'T GO TOGETHER.
"If his health problem prolongs, some internal feuding for power will likely occur," said Kang Sung-yoon, a North Korea expert at Seoul's Dongguk University.
And Kim Ok may be poised to fill any void. Experts speculate the North Korean leader's dependence on her during his illness may further bolster her political clout.
"If Kim Jong Il can't communicate with others, her role will be larger," said Kang Jung-mo, a North Korea expert at Kyung Hee University.
Little is known about her. Kim Jong Il is believed to have had three wives before taking Kim Ok as his consort several years ago. She reportedly accompanied the leader on his secret visit to China in 2006.
She is said to be a pianist in her 40s who has served as the leader's secretary since the 1980s. Furthering the intrigue, Kim's late wife, Ko Yong Hi, _ mother of his two younger sons _ hand-picked Kim Ok to replace her when she was dying of cancer, according to South Korea's JoongAng Ilbo newspaper.
It wouldn't be the first time an Asian leader's companion has asserted herself. Mao Zedong's last wife, Jiang Qing _ nicknamed "Madame Mao" _ wielded considerable power in China until her downfall after Mao's death in 1976. And Chiang Kai-shek's wife, Soong Mei-ling, rose to prominence in Taiwan in her husband's twilight years.
Official information is scarce about North Korea, a country where the regime modifies history _ including the year and location of Kim's birth _ to suit Kim dynasty lore.
South Korean officials refuse to divulge their intelligence-gathering techniques but are known to rely heavily on so-called "human intelligence" _ information gleaned from defectors, visiting dignitaries, aid workers, tourists and others able to get into the world's most-isolated nation. Such information can be fragmentary and difficult to verify, experts say.
One South Korean intelligence officer said agents are keeping a close eye on traffic about Kim Ok, including indications she is signing some official documents on his behalf. He spoke on condition of anonymity, in line with department policy.
He said top military officers are likely carrying out key functions _ but that Kim Ok probably wields more power than any particular individual.
South Korea's Unification Ministry said it has some intelligence on Kim Ok but cannot confirm reports on her growing influence. The South's National Intelligence Service also said it could not confirm the reports.
Kim's circle of advisers likely includes military and ruling Workers' Party officials, said Paik Hak-soon, an analyst at Sejong Institute in South Korea.
Paik noted the North's five top government organs _ the National Defense Commission, the Korean Workers' Party Central Committee, the Korean Workers' Party Central Military Commission, the Standing Committee of the Supreme People's Assembly and the Cabinet _ all have pledged their loyalty.
All five sent messages on the 60th anniversary of North Korea's birth praising Kim as a "matchless patriot and an unparalleled great man who has led our republic along the road to victory and glory."
Top officials typically do not offer such effusive congratulations for the North Korean anniversary, and the gesture appears to be an overt pledge that Kim can count on their backing, experts said.
When Kim Jong Il dies, it may be days, weeks _ or even months _ before the public knows, Noland said. "Then, figuring out who is running the country could take months if not a year."
On Wednesday, South Korean Prime Minister Han Seung-soo ordered the government to stop leaking intelligence about Kim, saying the rampant speculation could end up provoking Pyongyang.
"But we speculate because the North Korean government makes its living depriving outsiders of information," said Nicholas Eberstadt, a researcher at the Washington-based American Enterprise Institute.
___
Associated Press writers Carley Petesch and Robert Seavey in New York, and Jean H. Lee in Seoul, contributed to this report.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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FOXNEWS.COM HOME > WORLD
Kim's consort: a key player in North Korea?
Thursday, September 18, 2008
By HYUNG-JIN KIM, Associated Press Writer
* Share:
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SEOUL, South Korea — Kim Jong Il's companion and former secretary is emerging as a key player in the communist nation after the autocratic leader's stroke.
South Korean officials are keeping a close eye on Kim Ok amid some intelligence reports that she's not only nursing the ailing leader but also is signing official documents on his behalf.
NOTE: KIM IS WELL KNOWN IN SEOUL.
Experts believe the communist leader is retaining a firm grip on power, running the nation from his bed with the help of military and communist party chiefs in line with the nation's "songun," or military first, policy. But they are not discounting the role of the woman who is seen by some as the de-facto first lady.
"She is the closest person personally to Kim Jong Il," said Marcus Noland, a North Korea expert at the Peterson Institute for International Economics in Washington. "In some ways, she's the one guarding the bedroom or hospital door. She would be in a position to convey his preferences."
Kim, 66, reportedly suffered a stroke last month and is recuperating following emergency brain surgery _ though North Korean officials deny the communist leader, who was last seen in public more than a month ago, is ill.
The notoriously secretive nation bars ordinary citizens from Web access and most cannot make international phone calls. Late founder Kim Il Sung engineered a cult of personality that encompassed himself and his son, and which tolerates no criticism or opposition.
Kim Jong Il was groomed for 20 years to take over as leader, finally assuming the mantle after his father's death in 1994 in the communist world's first hereditary transfer of power. He has three sons _ Jong Nam, Jong Chul and Jong Un _ but does not appear to have anointed any of them as his heir-apparent.
The longer Kim _ known to have diabetes and heart disease _ remains bedridden, the greater the likelihood of a power vacuum, analysts say.
NOTE: DIABETES AND SURGERY DOESN'T GO TOGETHER.
"If his health problem prolongs, some internal feuding for power will likely occur," said Kang Sung-yoon, a North Korea expert at Seoul's Dongguk University.
And Kim Ok may be poised to fill any void. Experts speculate the North Korean leader's dependence on her during his illness may further bolster her political clout.
"If Kim Jong Il can't communicate with others, her role will be larger," said Kang Jung-mo, a North Korea expert at Kyung Hee University.
Little is known about her. Kim Jong Il is believed to have had three wives before taking Kim Ok as his consort several years ago. She reportedly accompanied the leader on his secret visit to China in 2006.
She is said to be a pianist in her 40s who has served as the leader's secretary since the 1980s. Furthering the intrigue, Kim's late wife, Ko Yong Hi, _ mother of his two younger sons _ hand-picked Kim Ok to replace her when she was dying of cancer, according to South Korea's JoongAng Ilbo newspaper.
It wouldn't be the first time an Asian leader's companion has asserted herself. Mao Zedong's last wife, Jiang Qing _ nicknamed "Madame Mao" _ wielded considerable power in China until her downfall after Mao's death in 1976. And Chiang Kai-shek's wife, Soong Mei-ling, rose to prominence in Taiwan in her husband's twilight years.
Official information is scarce about North Korea, a country where the regime modifies history _ including the year and location of Kim's birth _ to suit Kim dynasty lore.
South Korean officials refuse to divulge their intelligence-gathering techniques but are known to rely heavily on so-called "human intelligence" _ information gleaned from defectors, visiting dignitaries, aid workers, tourists and others able to get into the world's most-isolated nation. Such information can be fragmentary and difficult to verify, experts say.
One South Korean intelligence officer said agents are keeping a close eye on traffic about Kim Ok, including indications she is signing some official documents on his behalf. He spoke on condition of anonymity, in line with department policy.
He said top military officers are likely carrying out key functions _ but that Kim Ok probably wields more power than any particular individual.
South Korea's Unification Ministry said it has some intelligence on Kim Ok but cannot confirm reports on her growing influence. The South's National Intelligence Service also said it could not confirm the reports.
Kim's circle of advisers likely includes military and ruling Workers' Party officials, said Paik Hak-soon, an analyst at Sejong Institute in South Korea.
Paik noted the North's five top government organs _ the National Defense Commission, the Korean Workers' Party Central Committee, the Korean Workers' Party Central Military Commission, the Standing Committee of the Supreme People's Assembly and the Cabinet _ all have pledged their loyalty.
All five sent messages on the 60th anniversary of North Korea's birth praising Kim as a "matchless patriot and an unparalleled great man who has led our republic along the road to victory and glory."
Top officials typically do not offer such effusive congratulations for the North Korean anniversary, and the gesture appears to be an overt pledge that Kim can count on their backing, experts said.
When Kim Jong Il dies, it may be days, weeks _ or even months _ before the public knows, Noland said. "Then, figuring out who is running the country could take months if not a year."
On Wednesday, South Korean Prime Minister Han Seung-soo ordered the government to stop leaking intelligence about Kim, saying the rampant speculation could end up provoking Pyongyang.
"But we speculate because the North Korean government makes its living depriving outsiders of information," said Nicholas Eberstadt, a researcher at the Washington-based American Enterprise Institute.
___
Associated Press writers Carley Petesch and Robert Seavey in New York, and Jean H. Lee in Seoul, contributed to this report.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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powered by Baynote
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World
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* How should the UN deal with Iran?
* Rally held against Iran's president
ADVERTISEMENT
* Most Read
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* Giant Diamond Unearthed in Africa May Set Record
* Arrest in Girl Scout's 33-Year-Old Murder Jolts City
* Police Arrest Nude In-Line Skater 'Gennifer Moss' When Construction Workers Complain
* Officials: Pakistani Troops Open Fire on U.S. Choppers
* Pop Tarts: Tina Fey Wants Palin Out of Her Life After Election
* Hospital Workers Axed for Snapping Photos of Patients, Uploading to MySpace
* Rape Case Thrown Out When 'Victim' Sends Accused Cards, Love Letters in Prison
* Judge Orders Victim to Pay Back Thief
* Mother, Grandfather of Missing French Girl Charged With Murder
* JetBlue Terminal in New York Evacuated Briefly
* Giant Diamond Unearthed in Africa May Set Record
* Stonehenge May Have Healed Sick, Injured
* U.S. Mint Releases New Penny Designs
* Homeschooling Surges in U.S. as Parents Reach for Legal Rights
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* Washington, D.C., Firefighter Battles to Keep His Beard
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* Woman Burns Self to Death in Road Rage Incident
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* Fighting to protect kids from predators
* Will third party impact the election?
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* Will $700 billion bailout fix system?
* What Congress wants for economy
* Treasury secretary on Wall St. bailout
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Tuesday, September 23, 2008
DOLLAR FALLS AS BAILOUT PLAN ERODES CONFIDENCE IN U.S. FINANCES
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Dollar Falls as Bailout Plan Erodes Confidence in U.S. Finances
By Ron Harui and Ye Xie
Enlarge Image/Details
Sept. 23 (Bloomberg) -- The dollar fell for a second day against the yen on concern a U.S. government proposal to buy $700 billion of troubled assets will erode confidence in the nation's finances.
The greenback traded near a one-month low against the euro as Treasury Secretary Henry Paulson's plan would increase the nation's debt ceiling by 6.6 percent to $11.315 trillion. The currency also declined before U.S. reports this week that may show home sales slowed, adding to the case for the Federal Reserve to lower interest rates.
``Obviously there are genuine concerns over the sustainability of the U.S. fiscal position,'' said Tony Morriss, a senior currency strategist at Australia & New Zealand Banking Group in Sydney. ``The dollar will remain under pressure.''
The dollar declined to 105.26 yen as of 11:55 a.m. in Singapore from 105.51 yen late in New York yesterday, when it fell 1.8 percent. It traded at $1.4779 per euro from $1.4774 yesterday, when it touched $1.4866, the lowest since Aug. 22. The currency may weaken to 104.50 yen and $1.4900 in coming days, Morriss said. The euro dropped to 155.55 yen from 155.91 yen.
Foreign-exchange movements may be exaggerated because trading volumes are lower than normal due to a Japanese public holiday today, according to Morriss.
NOTE: MORRIS IS A WELL KNOWN CURRENCY STRATEGIST IN AUSTRALIA.
The U.S. currency has lost more than 6 percent versus the euro since touching a one-year high of $1.3882 on Sept. 11. The dollar reached $1.6038 per euro on July 15, the weakest since the European currency's 1999 inception.
Plotting Rescue
Paulson and Federal Reserve Chairman Ben S. Bernanke began plotting the rescue last week after New York-based Lehman Brothers Holdings Inc. filed for bankruptcy, the government seized control of American International Group Inc., and Merrill Lynch & Co. was forced into the arms of Bank of America Corp. Paulson and Bernanke testify before the Senate today on the banking crisis. The plan was sent to Congress Sept. 20.
The dollar also weakened on speculation that some U.S. politicians will oppose the passage of the government's plan, delaying the rescue of the beleaguered financial sector, according to UBS AG, the world's second-largest currency trader.
Republican presidential candidate John McCain called for limiting pay for executives of rescued firms, saying yesterday taxpayers shouldn't foot the bill for ``golden parachutes'' for officers of companies that have crumbled in the financial crisis.
The ``public is beginning to question why $700 billion in taxpayer's money is needed to bail out the banking sector,'' wrote Ashley Davies, a currency strategist at UBS in Singapore, in a client note today. ``Uncertainty over the implementation of Paulson's plan will keep the dollar on the back foot for now and clearly euro-dollar at $1.50 is in sight.''
The euro will end the year at $1.43, according to the median forecast of 42 analysts surveyed by Bloomberg News.
Carry Trades
The yen rose against 15 of the 16 most-active currencies on speculation investors will reduce so-called carry trades, in which traders get funds in a country with low borrowing costs and invest where returns are higher.
The benchmark interest rate of 0.5 percent in Japan compares with 5.25 percent in South Korea, 7 percent in Australia and 8.25 percent in Mexico, making the yen a favorite funding currency for the carry trade.
``I really like the Japanese yen,'' said Kathy Lien, director of currency research at GFT Forex in New York, in a Bloomberg television interview. ``We'll probably see the most profound weakness in the dollar against the yen just because it's a carry trade currency and a carry trade play.''
Japan's currency rose 0.9 percent to 10.91793 against the Korean won, gained 1 percent to 88.21 yen versus Australia's dollar and advanced 0.3 percent to 9.904 per Mexican peso from late in New York yesterday.
Economic Reports
Implied volatility on one-month dollar-yen options rose to 17.48 percent from 16.55 percent yesterday. Higher volatility may discourage carry trades as it suggests a larger risk of exchange-rate fluctuations that can erode profits.
The dollar also fell as home resales declined to 4.94 million last month from 5 million in July, according to a Bloomberg News survey of economists. The National Association of Realtors' report is scheduled for release tomorrow. The Commerce Department will report the next day that sales of new houses dropped to 510,000 from 515,000, a separate survey indicated.
The chance of the Fed cutting its 2 percent benchmark rate by a quarter-percentage point at its Oct. 29 policy meeting was 34 percent yesterday, compared with zero a month ago, futures contracts on the Chicago Board of Trade showed. The European Central Bank's main refinancing rate is 4.25 percent.
To contact the reporters on this story: Ron Harui in Singapore at rharui@bloomberg.net
Last Updated: September 23, 2008 00:31 EDT
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Dollar Falls as Bailout Plan Erodes Confidence in U.S. Finances
By Ron Harui and Ye Xie
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Sept. 23 (Bloomberg) -- The dollar fell for a second day against the yen on concern a U.S. government proposal to buy $700 billion of troubled assets will erode confidence in the nation's finances.
The greenback traded near a one-month low against the euro as Treasury Secretary Henry Paulson's plan would increase the nation's debt ceiling by 6.6 percent to $11.315 trillion. The currency also declined before U.S. reports this week that may show home sales slowed, adding to the case for the Federal Reserve to lower interest rates.
``Obviously there are genuine concerns over the sustainability of the U.S. fiscal position,'' said Tony Morriss, a senior currency strategist at Australia & New Zealand Banking Group in Sydney. ``The dollar will remain under pressure.''
The dollar declined to 105.26 yen as of 11:55 a.m. in Singapore from 105.51 yen late in New York yesterday, when it fell 1.8 percent. It traded at $1.4779 per euro from $1.4774 yesterday, when it touched $1.4866, the lowest since Aug. 22. The currency may weaken to 104.50 yen and $1.4900 in coming days, Morriss said. The euro dropped to 155.55 yen from 155.91 yen.
Foreign-exchange movements may be exaggerated because trading volumes are lower than normal due to a Japanese public holiday today, according to Morriss.
NOTE: MORRIS IS A WELL KNOWN CURRENCY STRATEGIST IN AUSTRALIA.
The U.S. currency has lost more than 6 percent versus the euro since touching a one-year high of $1.3882 on Sept. 11. The dollar reached $1.6038 per euro on July 15, the weakest since the European currency's 1999 inception.
Plotting Rescue
Paulson and Federal Reserve Chairman Ben S. Bernanke began plotting the rescue last week after New York-based Lehman Brothers Holdings Inc. filed for bankruptcy, the government seized control of American International Group Inc., and Merrill Lynch & Co. was forced into the arms of Bank of America Corp. Paulson and Bernanke testify before the Senate today on the banking crisis. The plan was sent to Congress Sept. 20.
The dollar also weakened on speculation that some U.S. politicians will oppose the passage of the government's plan, delaying the rescue of the beleaguered financial sector, according to UBS AG, the world's second-largest currency trader.
Republican presidential candidate John McCain called for limiting pay for executives of rescued firms, saying yesterday taxpayers shouldn't foot the bill for ``golden parachutes'' for officers of companies that have crumbled in the financial crisis.
The ``public is beginning to question why $700 billion in taxpayer's money is needed to bail out the banking sector,'' wrote Ashley Davies, a currency strategist at UBS in Singapore, in a client note today. ``Uncertainty over the implementation of Paulson's plan will keep the dollar on the back foot for now and clearly euro-dollar at $1.50 is in sight.''
The euro will end the year at $1.43, according to the median forecast of 42 analysts surveyed by Bloomberg News.
Carry Trades
The yen rose against 15 of the 16 most-active currencies on speculation investors will reduce so-called carry trades, in which traders get funds in a country with low borrowing costs and invest where returns are higher.
The benchmark interest rate of 0.5 percent in Japan compares with 5.25 percent in South Korea, 7 percent in Australia and 8.25 percent in Mexico, making the yen a favorite funding currency for the carry trade.
``I really like the Japanese yen,'' said Kathy Lien, director of currency research at GFT Forex in New York, in a Bloomberg television interview. ``We'll probably see the most profound weakness in the dollar against the yen just because it's a carry trade currency and a carry trade play.''
Japan's currency rose 0.9 percent to 10.91793 against the Korean won, gained 1 percent to 88.21 yen versus Australia's dollar and advanced 0.3 percent to 9.904 per Mexican peso from late in New York yesterday.
Economic Reports
Implied volatility on one-month dollar-yen options rose to 17.48 percent from 16.55 percent yesterday. Higher volatility may discourage carry trades as it suggests a larger risk of exchange-rate fluctuations that can erode profits.
The dollar also fell as home resales declined to 4.94 million last month from 5 million in July, according to a Bloomberg News survey of economists. The National Association of Realtors' report is scheduled for release tomorrow. The Commerce Department will report the next day that sales of new houses dropped to 510,000 from 515,000, a separate survey indicated.
The chance of the Fed cutting its 2 percent benchmark rate by a quarter-percentage point at its Oct. 29 policy meeting was 34 percent yesterday, compared with zero a month ago, futures contracts on the Chicago Board of Trade showed. The European Central Bank's main refinancing rate is 4.25 percent.
To contact the reporters on this story: Ron Harui in Singapore at rharui@bloomberg.net
Last Updated: September 23, 2008 00:31 EDT
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Friday, September 19, 2008
FORMER ALLSTATE CHIEF PICKED BY GOVERNMENT TO RUN AIG
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Former Allstate Chief Picked by Government to Run AIG (Update3)
By David Mildenberg and Erik Holm
Enlarge Image/Details
Sept. 17 (Bloomberg) -- Former Allstate Corp. Chief Executive Officer Edward Liddy was hired by the U.S. government to run American International Group Inc. as part of a plan to avert a collapse of the country's largest insurer.
Liddy, 62, helped oversee the spinoffs of Allstate, Discover Financial Services, real estate broker Coldwell Banker Corp. and securities brokerage Dean Witter when he was an executive at Sears Roebuck & Co. He replaces Robert Willumstad, who's leaving after the government took control of New York-based AIG.
NOTE: LIDDY IS A WELL RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
At AIG, Liddy, who ran Allstate from 1999 until 2006, will need to stem record losses tied to mortgages and preside over the sale of units to raise cash to repay a federal loan of as much as $85 billion. AIG plummeted 97 percent this year in New York Stock Exchange trading, erasing more than $125 billion of market value.
Liddy, a partner at private-equity firm Clayton Dubilier & Rice Inc., is ``a platinum-level insurance executive and the ideal appointment for a company that needs to evaluate the value of its core insurance operations,'' said New York Insurance Superintendent Eric Dinallo in an interview. ``He has great financial services expertise.''
Treasury Secretary Henry Paulson made the decision to oust Willumstad, 63, who became AIG's CEO in June, and informed him of the news yesterday. Liddy was elected as a director of Goldman Sachs Group Inc. in 2003, when Paulson was CEO of the New York- based investment bank.
Hurricane Katrina
AIG spokesman Nicholas Ashooh declined to comment about the management change, and Liddy and Willumstad weren't available for comment. When Willumstad took control of AIG three months ago, he promised to complete a strategic review by Sept. 25. AIG unraveled before he was able to unveil his plan.
Liddy joined Allstate in 1994 from Sears to oversee the spinoff. He was named CEO five years later and led the insurer in 2005 when hurricanes Katrina, Rita and Wilma cost Allstate more than $5 billion combined.
Liddy began an effort that continued under current Allstate CEO Tom Wilson to scale back the coverage of homes in catastrophe-prone regions. In Louisiana, the insurer stopped covering wind damage in some parishes, restricted the sale of new policies, and bought extra reinsurance to protect itself against losses exceeding $500 million in the state.
Liddy is ``a brilliant financial strategist,'' said Robert Pike, a retired chief administrative officer who reported to Liddy at Northbrook, Illinois-based Allstate, the largest publicly traded U.S. home and auto insurer. ``He's able to take an extraordinary amount of data and synthesize it, probably better than anybody I ever met.''
Planes to Factories
Allstate sells home, auto and life insurance, almost exclusively in the U.S., and mostly to individual customers. AIG, which operates in more than 100 countries, competes with Allstate and also covers planes, shipping and factories, and protects commercial property owners against terrorist attacks. AIG sold financial guaranties on fixed-income investments that led to $25 billion of writedowns over the past year.
``Liddy is a respected insurance executive, whose experience and expertise will be tested given the challenging situation he has been given,'' said Tom Kersting, an analyst at Edward Jones in St. Louis.
Liddy does have experience in mortgage insurance, a business that lost money for AIG for four straight quarters and is expected to be unprofitable this year. He served as chairman of PMI Group Inc., the No. 2 U.S. mortgage insurer, about 14 years ago. Mortgage insurers reimburse lenders when borrowers fail to pay their debts.
NOTE: AIG IS ONE OF THE TOP COMPANIES IN THE INSURANCE INDUSTRY.
Shaking Up Management
Shortly before Liddy took over as Allstate CEO, he told a meeting of 200 managers that a number of them wouldn't be around in a year, according to a May 2005 Crain's Chicago Business story that Pike confirmed. Liddy ended up ousting executives including the finance chief and investment officers.
``Ed looked around and picked those people he felt would add value and complement their culture, and I think he did pretty damn well,'' said Pike, who worked at Allstate for 35 years.
Allstate gained about 9.5 percent a year in New York trading under Liddy, beating the Standard & Poor's 500 Index during his tenure.
``Ed Liddy led Allstate from being a typical average performance subsidiary of Sears to becoming one of the best- capitalized and best-managed insurers in the U.S.,'' said Cliff Gallant, an analyst at KBW Inc. in New York. ``He is known for integrity and strong leadership.''
Allstate ranks second to policyholder-owned State Farm Mutual Automobile Insurance Co. of Bloomington, Illinois, in the U.S. home and auto insurance market.
New Jersey Roots
Liddy grew up in New Jersey and worked at Ford Motor Co. before moving to Chicago in 1981 to join G.D. Searle & Co., where Donald Rumsfeld, later the secretary of defense, was CEO. He moved to Sears in 1988 to work under CEO Edward Brennan.
Liddy has an undergraduate degree from Catholic University of America and an M.B.A. from George Washington University, both in Washington, D.C. He was previously chairman of Northwestern Memorial Healthcare, which operates one of Chicago's largest hospital systems.
``Unlike a lot of CEOs, Ed doesn't take on a regal air and he's not pompous in any way,'' Pike said.
To contact the reporters on this story: David Mildenberg in Charlotte, North Carolina at dmildenberg@bloomberg.net; Erik Holm in New York at eholm2@bloomberg.net.
Last Updated: September 17, 2008 12:32 EDT
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Former Allstate Chief Picked by Government to Run AIG (Update3)
By David Mildenberg and Erik Holm
Enlarge Image/Details
Sept. 17 (Bloomberg) -- Former Allstate Corp. Chief Executive Officer Edward Liddy was hired by the U.S. government to run American International Group Inc. as part of a plan to avert a collapse of the country's largest insurer.
Liddy, 62, helped oversee the spinoffs of Allstate, Discover Financial Services, real estate broker Coldwell Banker Corp. and securities brokerage Dean Witter when he was an executive at Sears Roebuck & Co. He replaces Robert Willumstad, who's leaving after the government took control of New York-based AIG.
NOTE: LIDDY IS A WELL RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
At AIG, Liddy, who ran Allstate from 1999 until 2006, will need to stem record losses tied to mortgages and preside over the sale of units to raise cash to repay a federal loan of as much as $85 billion. AIG plummeted 97 percent this year in New York Stock Exchange trading, erasing more than $125 billion of market value.
Liddy, a partner at private-equity firm Clayton Dubilier & Rice Inc., is ``a platinum-level insurance executive and the ideal appointment for a company that needs to evaluate the value of its core insurance operations,'' said New York Insurance Superintendent Eric Dinallo in an interview. ``He has great financial services expertise.''
Treasury Secretary Henry Paulson made the decision to oust Willumstad, 63, who became AIG's CEO in June, and informed him of the news yesterday. Liddy was elected as a director of Goldman Sachs Group Inc. in 2003, when Paulson was CEO of the New York- based investment bank.
Hurricane Katrina
AIG spokesman Nicholas Ashooh declined to comment about the management change, and Liddy and Willumstad weren't available for comment. When Willumstad took control of AIG three months ago, he promised to complete a strategic review by Sept. 25. AIG unraveled before he was able to unveil his plan.
Liddy joined Allstate in 1994 from Sears to oversee the spinoff. He was named CEO five years later and led the insurer in 2005 when hurricanes Katrina, Rita and Wilma cost Allstate more than $5 billion combined.
Liddy began an effort that continued under current Allstate CEO Tom Wilson to scale back the coverage of homes in catastrophe-prone regions. In Louisiana, the insurer stopped covering wind damage in some parishes, restricted the sale of new policies, and bought extra reinsurance to protect itself against losses exceeding $500 million in the state.
Liddy is ``a brilliant financial strategist,'' said Robert Pike, a retired chief administrative officer who reported to Liddy at Northbrook, Illinois-based Allstate, the largest publicly traded U.S. home and auto insurer. ``He's able to take an extraordinary amount of data and synthesize it, probably better than anybody I ever met.''
Planes to Factories
Allstate sells home, auto and life insurance, almost exclusively in the U.S., and mostly to individual customers. AIG, which operates in more than 100 countries, competes with Allstate and also covers planes, shipping and factories, and protects commercial property owners against terrorist attacks. AIG sold financial guaranties on fixed-income investments that led to $25 billion of writedowns over the past year.
``Liddy is a respected insurance executive, whose experience and expertise will be tested given the challenging situation he has been given,'' said Tom Kersting, an analyst at Edward Jones in St. Louis.
Liddy does have experience in mortgage insurance, a business that lost money for AIG for four straight quarters and is expected to be unprofitable this year. He served as chairman of PMI Group Inc., the No. 2 U.S. mortgage insurer, about 14 years ago. Mortgage insurers reimburse lenders when borrowers fail to pay their debts.
NOTE: AIG IS ONE OF THE TOP COMPANIES IN THE INSURANCE INDUSTRY.
Shaking Up Management
Shortly before Liddy took over as Allstate CEO, he told a meeting of 200 managers that a number of them wouldn't be around in a year, according to a May 2005 Crain's Chicago Business story that Pike confirmed. Liddy ended up ousting executives including the finance chief and investment officers.
``Ed looked around and picked those people he felt would add value and complement their culture, and I think he did pretty damn well,'' said Pike, who worked at Allstate for 35 years.
Allstate gained about 9.5 percent a year in New York trading under Liddy, beating the Standard & Poor's 500 Index during his tenure.
``Ed Liddy led Allstate from being a typical average performance subsidiary of Sears to becoming one of the best- capitalized and best-managed insurers in the U.S.,'' said Cliff Gallant, an analyst at KBW Inc. in New York. ``He is known for integrity and strong leadership.''
Allstate ranks second to policyholder-owned State Farm Mutual Automobile Insurance Co. of Bloomington, Illinois, in the U.S. home and auto insurance market.
New Jersey Roots
Liddy grew up in New Jersey and worked at Ford Motor Co. before moving to Chicago in 1981 to join G.D. Searle & Co., where Donald Rumsfeld, later the secretary of defense, was CEO. He moved to Sears in 1988 to work under CEO Edward Brennan.
Liddy has an undergraduate degree from Catholic University of America and an M.B.A. from George Washington University, both in Washington, D.C. He was previously chairman of Northwestern Memorial Healthcare, which operates one of Chicago's largest hospital systems.
``Unlike a lot of CEOs, Ed doesn't take on a regal air and he's not pompous in any way,'' Pike said.
To contact the reporters on this story: David Mildenberg in Charlotte, North Carolina at dmildenberg@bloomberg.net; Erik Holm in New York at eholm2@bloomberg.net.
Last Updated: September 17, 2008 12:32 EDT
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Thursday, September 18, 2008
INSURANCE CUSTOMERS OF AIG SHOULDN'T WORRY YET
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Insurance customers of AIG shouldn't worry yet
Insurance industry; AIG insurance policy, annuity holders shouldn't worry
September 17, 2008: 05:27 PM EST
NEW YORK (Associated Press) - The financial problems at American International Group Inc. may be causing you great concern today if you hold an AIG life, health, home or auto insurance policy, or have an annuity with the company.
Insurance industry officials and analysts say there's little for policyholders to worry about today, but they say they're watching the situation carefully.
NOTE: AIG IS ONE OF THE TOP COMPANIES IN THE INSURANCE INDUSTRY.
They're keeping a close eye, because the potential impact in the United States for insurance policy holders is significant. The Insurance Information Institute says AIG ranks in the top 10 of insurance companies in fixed annuities sold through banks. Fixed annuities guarantee the principal and fixed payments to the buyer for a specified period of time, usually until death. AIG also ranks among the top writers of auto insurance, commercial insurance and life insurance. It led the nation in fixed annuities sold through banks, writing more than $5 billion in 2007. AIG also led in commercial insurance writing $24 billion in policies in 2007.
Here are the answers to some key questions about where AIG's insurance businesses stand and how it may effect you.
Q: What is going to happen to the insurance businesses owned by AIG?
A: The infusion of $85 billion into AIG offers financial stability so the company will have time to decide which assets or business segments it should sell and to whom. It hasn't been disclosed whether the insurance segment, or portions of it, would be sold.
"We believe the insurance subsidiary to be financially sound and continues to be sound today," said analyst Joyce Sharaf of A.M. Best Co., one of the nation's main insurance ratings companies. She said Wednesday that AIG holds major insurance businesses that "are enviable franchises that could be sold in whole or in part."
A.M. Best analyst Marc Steinberg said he's continuing to review AIG's ratings and analysts are closely monitoring the situation as it unfolds. Analysts believe, however, that insurance policyholders are safe for now, he said.
Insurance regulators in New York, which have regulatory oversight over New York-based AIG, and the National Association of Insurance Commissioners said the company's insurance operations remain solvent and can pay claims.
Insurance companies in the United States are closely regulated by government agencies established by the states in which they are based.
The company released a statement Tuesday evening which said: "Policyholders of AIG companies around the world can rest assured that AIG's commitments will continue to be honored."
---
Q: Should I be worried if I have health or life insurance policies with AIG and what if I have a retirement annuity?
You should first keep in mind that AIG continues to operate, it has not filed for bankruptcy protection and has not been declared insolvent. Even if the insurance portion of the business was for some reason declared insolvent, there are protections in place similar to the FDIC insurance that backs up your bank deposits.
Life and health insurance, and products like annuities are covered by insurance guarantee associations that have been established in every state, said Peter Gallanis, president of the National Organization of Life and Health Insurance Guaranty Associations. The associations step in when insurance regulators in your state declare an insurance company insolvent and it's placed in receivership.
The level of coverage may vary by state, but every state association provides withdrawal and cash value coverage for annuities of at least $100,000. About a dozen states offer up to $300,000 and a few others offer up to $500,000.
Life insurance policies are backed up with at least $300,000 in life insurance death benefits and $100,000 in cash surrender or withdrawal value. States offer at least $100,000 in health insurance policy benefits.
In the past 25 years more than $20 billion in coverage benefits have been provided by the state associations for policyholders and annuity clients of dissolved insurance companies. In that time, the associations have provided protection for more than two million policyholders and worked on more than 60 multistate insolvencies.
---
Q: What should I do if I hold a homeowner's or car insurance policy with AIG?
Every state, the District of Columbia, Puerto Rico and the Virgin Islands have established property guarantee funds similar to those established to protect against losses in life and health insurance.
Guaranty funds generally pay the amount of coverage stipulated by the policy or $300,000, whichever is less. Each state has a law that places a cap on the coverage and some have higher amounts. New York, for example, has a property/casualty cap of $1 million.
Most state guarantee funds pay all of their state's workers' compensation benefits.
Since the late 1960s, the property/casualty guaranty system has paid out about $21 billion in claims on behalf of insolvent insurers. About $10 billion disbursed in the last six years, largely because of the frequent and severe hurricanes that have struck the Gulf Coast.
Since 1976, there have been about 600 insolvencies of property and casualty insurers. There are 2,648 property casualty insurers licensed to do business in the United States.
___
On the Net:
A.M. Best Co.: http://www.ambest.com
National Conference of Insurance Guaranty Funds: http://www.ncigf.org
National Organization of Life and Health Insurance Guaranty Associations: http://www.nolhga.com/ Top of page
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Insurance customers of AIG shouldn't worry yet
Insurance industry; AIG insurance policy, annuity holders shouldn't worry
September 17, 2008: 05:27 PM EST
NEW YORK (Associated Press) - The financial problems at American International Group Inc. may be causing you great concern today if you hold an AIG life, health, home or auto insurance policy, or have an annuity with the company.
Insurance industry officials and analysts say there's little for policyholders to worry about today, but they say they're watching the situation carefully.
NOTE: AIG IS ONE OF THE TOP COMPANIES IN THE INSURANCE INDUSTRY.
They're keeping a close eye, because the potential impact in the United States for insurance policy holders is significant. The Insurance Information Institute says AIG ranks in the top 10 of insurance companies in fixed annuities sold through banks. Fixed annuities guarantee the principal and fixed payments to the buyer for a specified period of time, usually until death. AIG also ranks among the top writers of auto insurance, commercial insurance and life insurance. It led the nation in fixed annuities sold through banks, writing more than $5 billion in 2007. AIG also led in commercial insurance writing $24 billion in policies in 2007.
Here are the answers to some key questions about where AIG's insurance businesses stand and how it may effect you.
Q: What is going to happen to the insurance businesses owned by AIG?
A: The infusion of $85 billion into AIG offers financial stability so the company will have time to decide which assets or business segments it should sell and to whom. It hasn't been disclosed whether the insurance segment, or portions of it, would be sold.
"We believe the insurance subsidiary to be financially sound and continues to be sound today," said analyst Joyce Sharaf of A.M. Best Co., one of the nation's main insurance ratings companies. She said Wednesday that AIG holds major insurance businesses that "are enviable franchises that could be sold in whole or in part."
A.M. Best analyst Marc Steinberg said he's continuing to review AIG's ratings and analysts are closely monitoring the situation as it unfolds. Analysts believe, however, that insurance policyholders are safe for now, he said.
Insurance regulators in New York, which have regulatory oversight over New York-based AIG, and the National Association of Insurance Commissioners said the company's insurance operations remain solvent and can pay claims.
Insurance companies in the United States are closely regulated by government agencies established by the states in which they are based.
The company released a statement Tuesday evening which said: "Policyholders of AIG companies around the world can rest assured that AIG's commitments will continue to be honored."
---
Q: Should I be worried if I have health or life insurance policies with AIG and what if I have a retirement annuity?
You should first keep in mind that AIG continues to operate, it has not filed for bankruptcy protection and has not been declared insolvent. Even if the insurance portion of the business was for some reason declared insolvent, there are protections in place similar to the FDIC insurance that backs up your bank deposits.
Life and health insurance, and products like annuities are covered by insurance guarantee associations that have been established in every state, said Peter Gallanis, president of the National Organization of Life and Health Insurance Guaranty Associations. The associations step in when insurance regulators in your state declare an insurance company insolvent and it's placed in receivership.
The level of coverage may vary by state, but every state association provides withdrawal and cash value coverage for annuities of at least $100,000. About a dozen states offer up to $300,000 and a few others offer up to $500,000.
Life insurance policies are backed up with at least $300,000 in life insurance death benefits and $100,000 in cash surrender or withdrawal value. States offer at least $100,000 in health insurance policy benefits.
In the past 25 years more than $20 billion in coverage benefits have been provided by the state associations for policyholders and annuity clients of dissolved insurance companies. In that time, the associations have provided protection for more than two million policyholders and worked on more than 60 multistate insolvencies.
---
Q: What should I do if I hold a homeowner's or car insurance policy with AIG?
Every state, the District of Columbia, Puerto Rico and the Virgin Islands have established property guarantee funds similar to those established to protect against losses in life and health insurance.
Guaranty funds generally pay the amount of coverage stipulated by the policy or $300,000, whichever is less. Each state has a law that places a cap on the coverage and some have higher amounts. New York, for example, has a property/casualty cap of $1 million.
Most state guarantee funds pay all of their state's workers' compensation benefits.
Since the late 1960s, the property/casualty guaranty system has paid out about $21 billion in claims on behalf of insolvent insurers. About $10 billion disbursed in the last six years, largely because of the frequent and severe hurricanes that have struck the Gulf Coast.
Since 1976, there have been about 600 insolvencies of property and casualty insurers. There are 2,648 property casualty insurers licensed to do business in the United States.
___
On the Net:
A.M. Best Co.: http://www.ambest.com
National Conference of Insurance Guaranty Funds: http://www.ncigf.org
National Organization of Life and Health Insurance Guaranty Associations: http://www.nolhga.com/ Top of page
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Wednesday, September 17, 2008
AIG FATE HAS BIG IMPACT ON THIS SIDE OF THE HUDSON
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AIG Fate Has Big Impact on This Side of the Hudson
Posted on: Wednesday, 17 September 2008, 15:00 CDT
By RICHARD NEWMAN, STAFF WRITER
Beleaguered American International Group Inc., the largest U.S. insurer, is also a big player in New Jersey.
The New York-based financial services giant is the top underwriter of commercial lines in New Jersey and ranks eighth in auto insurance based on premium dollars.
"If AIG goes under, that's going to send ripples throughout the New Jersey and New York region," said James Hughes, dean of Rutgers University's Edward J. Bloustein School of Planning and Public Policy.
NOTE: HUDGES IS A WELL RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
The federal government announced an $85 billion bailout of AIG on Tuesday night. It is one of the world's biggest financial services players, and a collapse would have had consequences for financial firms around the globe. AIG insures some of the largest assets in the world and does business in more than 100 countries.
More than a dozen AIG subsidiaries are licensed to operate in New Jersey, but the only one with headquarters in this state is auto insurer American International Insurance of New Jersey. By AIG's standards it is a comparatively small operation, covering 76,000 vehicles and generating $80 million in annual premiums.
The auto insurance unit is "well-capitalized," said Ed Rogan, a spokesman for the Department of Banking and Insurance, and AIG's holding company has not requested permission to access that capital. "We would not approve such a thing if in anyway it would impact consumers," Rogan said.
NOTE: ROGAN IS A WELL RESPECTED PERSONALITY IN AUTO INSURANCE INDUSTRY.
An AIG spokesman declined to comment.
An organization of state insurance regulators issued a statement Tuesday to address AIG policyholders' concerns.
"If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims," Sandy Praeger, president of the National Association of Insurance Commissioners, said in the statement. "Our job is to ensure that they continue to have the ability to pay."
Insurance regulators in New York and Pennsylvania are working with the holding company to give it access to capital in subsidiaries domiciled in those states.
"The holding company is at issue right now," said Roger Schmelzer, president of the National Conference of Insurance Guaranty Funds in Indianapolis. "The holding company could go bankrupt, and for policyholders it would be business as usual."
AIG shares plunged 21 percent Tuesday, to $3.75 a share.
Other insurers could benefit from AIG's woes. Warren-based Chubb Corp. rose $6.53, or 14 percent, to $55.05, and Newark's Prudential Financial Inc. climbed $6.64, or 9.2 percent, to $79.18.
***
American International Group in New Jersey
Market
Line Ranking* Share*
Commercial 1 10%
Automobile 8 4.7%
Homeowner 19 1.3%
*2007
Source: Insurance Information Institute
***
E-mail: newman@northjersey.com
(c) 2008 Record, The; Bergen County, N.J.. Provided by ProQuest LLC. All rights Reserved.
Source: Record, The; Bergen County, N.J.
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AIG Fate Has Big Impact on This Side of the Hudson
Posted on: Wednesday, 17 September 2008, 15:00 CDT
By RICHARD NEWMAN, STAFF WRITER
Beleaguered American International Group Inc., the largest U.S. insurer, is also a big player in New Jersey.
The New York-based financial services giant is the top underwriter of commercial lines in New Jersey and ranks eighth in auto insurance based on premium dollars.
"If AIG goes under, that's going to send ripples throughout the New Jersey and New York region," said James Hughes, dean of Rutgers University's Edward J. Bloustein School of Planning and Public Policy.
NOTE: HUDGES IS A WELL RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
The federal government announced an $85 billion bailout of AIG on Tuesday night. It is one of the world's biggest financial services players, and a collapse would have had consequences for financial firms around the globe. AIG insures some of the largest assets in the world and does business in more than 100 countries.
More than a dozen AIG subsidiaries are licensed to operate in New Jersey, but the only one with headquarters in this state is auto insurer American International Insurance of New Jersey. By AIG's standards it is a comparatively small operation, covering 76,000 vehicles and generating $80 million in annual premiums.
The auto insurance unit is "well-capitalized," said Ed Rogan, a spokesman for the Department of Banking and Insurance, and AIG's holding company has not requested permission to access that capital. "We would not approve such a thing if in anyway it would impact consumers," Rogan said.
NOTE: ROGAN IS A WELL RESPECTED PERSONALITY IN AUTO INSURANCE INDUSTRY.
An AIG spokesman declined to comment.
An organization of state insurance regulators issued a statement Tuesday to address AIG policyholders' concerns.
"If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims," Sandy Praeger, president of the National Association of Insurance Commissioners, said in the statement. "Our job is to ensure that they continue to have the ability to pay."
Insurance regulators in New York and Pennsylvania are working with the holding company to give it access to capital in subsidiaries domiciled in those states.
"The holding company is at issue right now," said Roger Schmelzer, president of the National Conference of Insurance Guaranty Funds in Indianapolis. "The holding company could go bankrupt, and for policyholders it would be business as usual."
AIG shares plunged 21 percent Tuesday, to $3.75 a share.
Other insurers could benefit from AIG's woes. Warren-based Chubb Corp. rose $6.53, or 14 percent, to $55.05, and Newark's Prudential Financial Inc. climbed $6.64, or 9.2 percent, to $79.18.
***
American International Group in New Jersey
Market
Line Ranking* Share*
Commercial 1 10%
Automobile 8 4.7%
Homeowner 19 1.3%
*2007
Source: Insurance Information Institute
***
E-mail: newman@northjersey.com
(c) 2008 Record, The; Bergen County, N.J.. Provided by ProQuest LLC. All rights Reserved.
Source: Record, The; Bergen County, N.J.
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1/52/53/54/55/5
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Hinode Captures Polar Crown Prominences on the Sun
Sep 17, 2008, 8:36 am
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* Bush WH: Economy Sending Mixed Signals
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* Hurricane Survivors Found on Texas Barrier Island
* Obama Takes McCain to Task on Economy
* In Galveston, Worst Was Yet to Come
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Sunday, September 14, 2008
NC INSURANCE COMMISSIONER ORDERS LOWER AUTO RATES
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Associated Press
NC insurance commissioner orders lower auto rates
Associated Press 09.11.08, 5:48 PM ET
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RALEIGH, N.C. -
North Carolina State Insurance Commissioner Jim Long on Thursday rejected an industry request for an almost 13 percent increase in auto rates and has ordered a reduction instead.
Long signed an order requiring a 16.1 percent reduction in private passenger auto rates and an 11.7 percent reduction in motorcycle liability rates.
NOTE: LONG IS A WELL RESPECTED STATE INSURANCE COMMISSIONER.
The reductions are effective Jan. 1.
The North Carolina Rate Bureau's request for a 12.9 percent increase was the subject of rate hearings in July and August.
Long said he decided the requested increase "just wasn't warranted. It's the largest increase they've requested in almost 15 years. I was surprised by the request, especially since last year the bureau filed for no change."
During the hearings, the department's attorney argued that the market for auto insurance had not changed significantly since 2007.
Rate Bureau general manager Ray Evans said the board was "surprised at the magnitude of the decrease. We don't think that's the appropriate decision."
The board meets next week and will decide whether to accept Long's decision or appeal it, he said.
Department experts said the bureau mistakenly included claims arising from the North Carolina Reinsurance Facility when determining its proposed rate increase. The facility insures riskier drivers, and bureau rates don't apply to them.
Instead, the facility files a separate rate proposal using its own claims data. But Evans said the facility also insures some drivers whom it believes should be included in its rate computations.
If the bureau appeals Long's decision, then companies can raise their rates and hold the difference in escrow. If the bureau lost the appeal, companies would have to refund the money in escrow, plus interest.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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Associated Press
NC insurance commissioner orders lower auto rates
Associated Press 09.11.08, 5:48 PM ET
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RALEIGH, N.C. -
North Carolina State Insurance Commissioner Jim Long on Thursday rejected an industry request for an almost 13 percent increase in auto rates and has ordered a reduction instead.
Long signed an order requiring a 16.1 percent reduction in private passenger auto rates and an 11.7 percent reduction in motorcycle liability rates.
NOTE: LONG IS A WELL RESPECTED STATE INSURANCE COMMISSIONER.
The reductions are effective Jan. 1.
The North Carolina Rate Bureau's request for a 12.9 percent increase was the subject of rate hearings in July and August.
Long said he decided the requested increase "just wasn't warranted. It's the largest increase they've requested in almost 15 years. I was surprised by the request, especially since last year the bureau filed for no change."
During the hearings, the department's attorney argued that the market for auto insurance had not changed significantly since 2007.
Rate Bureau general manager Ray Evans said the board was "surprised at the magnitude of the decrease. We don't think that's the appropriate decision."
The board meets next week and will decide whether to accept Long's decision or appeal it, he said.
Department experts said the bureau mistakenly included claims arising from the North Carolina Reinsurance Facility when determining its proposed rate increase. The facility insures riskier drivers, and bureau rates don't apply to them.
Instead, the facility files a separate rate proposal using its own claims data. But Evans said the facility also insures some drivers whom it believes should be included in its rate computations.
If the bureau appeals Long's decision, then companies can raise their rates and hold the difference in escrow. If the bureau lost the appeal, companies would have to refund the money in escrow, plus interest.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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Saturday, September 13, 2008
How to optimize your auto insurance
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September 3, 2008 -- Updated 1324 GMT (2124 HKT)
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How to optimize your auto insurance
* Story Highlights
* Don't just buy the cheapest auto insurance possible, expert says
* Carry a high deductible to bring the price of the premiums down
* Consider dropping physical damage coverage on older cars to save money
* Buy insurance that protects you against motorists who don't have insurance
* Next Article in Living »
By Tom Torbjornsen
Decrease font Decrease font
Enlarge font Enlarge font
New Cars, Used Cars, Kelley Blue Book Values at AOL Autos
(AOL Autos) -- We keep our cars tuned up, but what about our automobile insurance? Recently I had a chat with an insurance broker. The topic of conversation? Smart insurance buying.
The hospital bill from the people you hit can be expensive, so buy as high a liability limit as you can afford.
The hospital bill from the people you hit can be expensive, so buy as high a liability limit as you can afford.
Note: Torbjornsen is a respected personality in the insurance industry.
After our conversation I realized that the biggest mistake an uninformed consumer makes is to regard insurance coverage as a commodity... as generic as the oil purchased for the car.
An insurance policy is a personalized service contract that provides coverage for you and your family in the event of an accident. When you read your auto policy the language is anything but simple. And everyone knows it's not inexpensive!
To regard auto insurance as a "necessary evil" to be purchased as cheap as possible is a foolish and ignorant approach to this very necessary aspect of driving an automobile.
Based on our conversation, here's how to get the biggest "bang for your buck" when purchasing automobile insurance:
Buy as high a liability limit as you can afford
This is the coverage that protects you in the event you get into an accident and are accused of negligence. Remember, a lawsuit can be brought against you despite your culpability - and damages sought in today's court actions seldom fall below six figures.
Don't Miss
* AOL Autos: Auto insurance
* AOL Autos: Car loans
* AOL Autos: Auto repair
Often the spouse of the injured party seeks more than $100,000 for "loss of services." This doesn't include the dollars requested for the injured party. Question... how far would your present policy go in responding to this kind of a suit?
Be realistic, not ridiculous in determining the amount of liability you need. Most insurance companies will write liability coverage up to at least $500,000. Adding an umbrella liability policy in the amount of one, two, three million (or more depending on your situation) will go a long way in protecting you.
Only buying $50,000 coverage? See how long that lasts you when you get the hospital bill from the party you hit for three or four weeks... oh, and I forgot about the "loss of services."
Buy supplemental uninsured motorist coverage
This is the coverage that protects you in the event you are involved in an accident with an uninsured motorist, or a motorist with low limits of liability insurance coverage. AOL Autos: 10 cheapest cars in U.S.
Let's say that you're involved in an accident resulting in serious injury to you, and possibly your passengers. No matter what the amount a court might award, if the negligent party has inadequate liability coverage and few assets, your award is of little value.
The Supplemental Uninsured Motorist portion of your policy provides the liability coverage the other driver should have had, up to the limit you carry on your policy. AOL Autos: Safest cars -- sedans
Carry high deductibles on your physical damage
Higher liability as well as Supplemental Uninsured Motorist coverage means higher premiums. A good way to help pay for this is to carry as high a deductible on your collision and comprehensive as you can reasonably afford. This brings the price of the premiums down. AOL Autos: Most-popular fuel-efficient cars
Consider dropping physical damage on older vehicles
This is not an easy call. Typically, an insurance company charges less for collision and comprehensive on an older vehicle. In general, when a vehicle is six years old or more, it's worth considering this change.
Things to take into consideration when trying to make this call are value of the vehicle, its condition, how much you drive it, and the policy charge for the coverage. At some point the charge for the coverage will not be worth what you could collect in the event of a loss.
Never skimp on liability coverage in order to pay for less important physical damage coverage on a vehicle that is worth less than what the policy would pay in the event of a loss. AOL Autos: Best and worst resale value cars
Deal with an agent that has your confidence
Make sure your agent gives you the service you need. Ask questions about coverage under different scenarios and ask for recommendations. Deal with a full-service agency; one that offers all the products you need and has the staff to make the complex insurance marketplace bearable. AOL Autos: Fuel-efficient used SUVs and Crossovers
People spend money on maintaining their cars and ignore their insurance coverage. When you get in an accident and have the other party's lawyers breathing down your neck is not the time to find out that your insurance coverage was inadequate.
Get with your agent and tune up your insurance policy now!!!
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September 3, 2008 -- Updated 1324 GMT (2124 HKT)
*
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How to optimize your auto insurance
* Story Highlights
* Don't just buy the cheapest auto insurance possible, expert says
* Carry a high deductible to bring the price of the premiums down
* Consider dropping physical damage coverage on older cars to save money
* Buy insurance that protects you against motorists who don't have insurance
* Next Article in Living »
By Tom Torbjornsen
Decrease font Decrease font
Enlarge font Enlarge font
New Cars, Used Cars, Kelley Blue Book Values at AOL Autos
(AOL Autos) -- We keep our cars tuned up, but what about our automobile insurance? Recently I had a chat with an insurance broker. The topic of conversation? Smart insurance buying.
The hospital bill from the people you hit can be expensive, so buy as high a liability limit as you can afford.
The hospital bill from the people you hit can be expensive, so buy as high a liability limit as you can afford.
Note: Torbjornsen is a respected personality in the insurance industry.
After our conversation I realized that the biggest mistake an uninformed consumer makes is to regard insurance coverage as a commodity... as generic as the oil purchased for the car.
An insurance policy is a personalized service contract that provides coverage for you and your family in the event of an accident. When you read your auto policy the language is anything but simple. And everyone knows it's not inexpensive!
To regard auto insurance as a "necessary evil" to be purchased as cheap as possible is a foolish and ignorant approach to this very necessary aspect of driving an automobile.
Based on our conversation, here's how to get the biggest "bang for your buck" when purchasing automobile insurance:
Buy as high a liability limit as you can afford
This is the coverage that protects you in the event you get into an accident and are accused of negligence. Remember, a lawsuit can be brought against you despite your culpability - and damages sought in today's court actions seldom fall below six figures.
Don't Miss
* AOL Autos: Auto insurance
* AOL Autos: Car loans
* AOL Autos: Auto repair
Often the spouse of the injured party seeks more than $100,000 for "loss of services." This doesn't include the dollars requested for the injured party. Question... how far would your present policy go in responding to this kind of a suit?
Be realistic, not ridiculous in determining the amount of liability you need. Most insurance companies will write liability coverage up to at least $500,000. Adding an umbrella liability policy in the amount of one, two, three million (or more depending on your situation) will go a long way in protecting you.
Only buying $50,000 coverage? See how long that lasts you when you get the hospital bill from the party you hit for three or four weeks... oh, and I forgot about the "loss of services."
Buy supplemental uninsured motorist coverage
This is the coverage that protects you in the event you are involved in an accident with an uninsured motorist, or a motorist with low limits of liability insurance coverage. AOL Autos: 10 cheapest cars in U.S.
Let's say that you're involved in an accident resulting in serious injury to you, and possibly your passengers. No matter what the amount a court might award, if the negligent party has inadequate liability coverage and few assets, your award is of little value.
The Supplemental Uninsured Motorist portion of your policy provides the liability coverage the other driver should have had, up to the limit you carry on your policy. AOL Autos: Safest cars -- sedans
Carry high deductibles on your physical damage
Higher liability as well as Supplemental Uninsured Motorist coverage means higher premiums. A good way to help pay for this is to carry as high a deductible on your collision and comprehensive as you can reasonably afford. This brings the price of the premiums down. AOL Autos: Most-popular fuel-efficient cars
Consider dropping physical damage on older vehicles
This is not an easy call. Typically, an insurance company charges less for collision and comprehensive on an older vehicle. In general, when a vehicle is six years old or more, it's worth considering this change.
Things to take into consideration when trying to make this call are value of the vehicle, its condition, how much you drive it, and the policy charge for the coverage. At some point the charge for the coverage will not be worth what you could collect in the event of a loss.
Never skimp on liability coverage in order to pay for less important physical damage coverage on a vehicle that is worth less than what the policy would pay in the event of a loss. AOL Autos: Best and worst resale value cars
Deal with an agent that has your confidence
Make sure your agent gives you the service you need. Ask questions about coverage under different scenarios and ask for recommendations. Deal with a full-service agency; one that offers all the products you need and has the staff to make the complex insurance marketplace bearable. AOL Autos: Fuel-efficient used SUVs and Crossovers
People spend money on maintaining their cars and ignore their insurance coverage. When you get in an accident and have the other party's lawyers breathing down your neck is not the time to find out that your insurance coverage was inadequate.
Get with your agent and tune up your insurance policy now!!!
E-mail to a friend E-mail to a friend
Share this on:
Mixx Digg Facebook del.icio.us reddit StumbleUpon MySpace
| Mixx it | Share
© 2008 AOL, LLC. All Rights Reserved.
All About AUTO INSURANCE
* Save
From the Blogs: Controversy, commentary, and debate
loading Sit tight, we're getting to the good stuff
powered by Sphere
Top News
Israel police recommend charges for PM Olmert General wants Afghan civilian killings review
Most Viewed Most Emailed
1. 1 Ike makes landfall in Cuba
2. 2 Japan bans Russian sumo wrestlers
3. 3 Asian bourses cheer U.S. bailout
4. 4 3 ships evade pirate attack off Somalia
5. 5 Murray stuns Nadal at U.S. Open
6. 6 Serena wins Williams quarterfinal
7. 7 McCain vows to put Dems in cabinet
8. 8 Charges recommended for PM Olmert
9. 9 Bringing extinct species back from...
10. 10 Hong Kong legislative polls open
1. 1 Officials: Burglar wakes men with...
2. 2 When sex becomes an addiction
3. 3 Polar bears turn green after dip in...
4. 4 JetBlue flight diverted after fight...
5. 5 Popular comic strip ignites controversy
6. 6 Canadian PM employs loophole in...
7. 7 10 great wine getaways
8. 8 Ike makes landfall in Cuba as...
9. 9 Coney Island's Astroland to close for...
10. 10 CIA, FBI push 'Facebook for spies'
Most Viewed Most Emailed
1. 1 Haiti sufferingHaiti suffering
2. 2 Ike makes landfallIke makes landfall
3. 3 Searching for IthacaSearching for Ithaca
4. 4 Young Chinese seek the worldYoung Chinese seek the world
5. 5 Sarah Palin's styleSarah Palin's style
1. 1 Belly artBelly art
2. 2 Searching for IthacaSearching for Ithaca
3. 3 12 people wrangle 50 ft spider12 people wrangle 50 ft spider
4. 4 Sarah Palin's styleSarah Palin's style
5. 5 Palin's style as governorPalin's style as governor
1. 1 palin
2. 2 video
3. 3 obama
4. 4 mccain
5. 5 sarah palin
6. 6 jeanne moos
7. 7 bonnie schneider
8. 8 palin speech
9. 9 rob marciano
10. 10 michelle obama
1. 1 Georgia Crisis
2. 2 Hurricane Gustav
3. 3 Formula 1 - The Circuit - Stories and Video from CNN.com International
4. 4 Just Imagine: 2020 - Stories and Video from CNN.com International
5. 5 War in Iraq
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Friday, September 12, 2008
California Life Home Car Insurance Quote Auto Insurance CALIFORNIA, CA
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California Life Home Car Insurance Quote Auto Insurance CALIFORNIA,CA
[California Life Home Car Insurance Quote Auto Insurance CALIFORNIA,CA]
California Life Home Car Insurance Quote Auto Insurance CALIFORNIA,CA
California Life Home Car Insurance Quote Auto Insurance CALIFORNIA,CA
Avatar Posted by bestantiochagent 1 day 21 hours ago (http://www.bestantiochagent.com) View profile
Category: Financial | Tags: california life insurance california home insurance californ
BESTANTIOCHAGENT.COM OFFER YOU PROFESSIONAL AND EXPERT INSURANCE HELP
Welcome to Farmers CALIFORNIA LIFE INSURANCE. The best resource for CALIFORNIA LIFE INSURANCE, AUTO INSURANCE, HOME INSURANCE, CAR INSURANCE etc. We are the top service providers in Domain of INSURANCE in CALIFORNIA (ca). The Farmers Insurance Group of Companies was founded in 1928 when Farmers Insurance Exchange, an automobile insurer, was formed. As customer demand for additional insurance services increased, the Fire Insurance Exchange and Truck Insurance Exchange were established for home and commercial insurance needs. Today, CALIFORNIA LIFE INSURANCE, CALIFORNIA HOME INSURANCE, CALIFORNIA INSURANCE QUOTE, INSURANCE CALIFORNIA, CALIFORNIA INSURANCE, CALIFORNIA CAR INSURANCE QUOTE, AUTO INSURANCE CA, CALIFORNIA AUTO INSURANCE, INSURANCE CA, AUTO INSURANCE CALIFORNIA, CAR INSURANCE CALIFORNIA, CALIFORNIA CAR INSURANCE, the Farmers Insurance Group of Companies is the country's third-largest writer of both private passenger automobile and homeowners insurance. You will have the added benefit of working with Farmers California agents who understand your needs.
We provide best services for California Insurance, (http://www.bestantiochagent.com/site/) and all you needs for Insurance California. A one stop shop for top rated services for Insurance ca.
We are best insurance quote in California to meet you investing as well as required needs of insurance. California Insurance Quote: Get a Personal Quote on your Insurance Needs, be it California Life Insurance, California Home Insurance, California Insurance Quote, Insurance California, California Insurance, California Car Insurance Quote, Auto Insurance CA, California Auto Insurance, Insurance CA, Auto Insurance California, Car Insurance California, California Car Insurance. etc, in ca. Home Insurance, Auto Insurance, Renters Insurance, Motorcycle Insurance, Boat/Watercraft Insurance , Recreational Vehicle (RV) Insurance, Camper/Trailer Insurance Flood Insurance Life Insurance, Health Insurance, Dental Insurance, Disability Insurance Long Term Care, Mortgages/Loans, Planning .
The term HEALTH INSURANCE is generally used to describe a form of insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. Covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses.
Health insurance works by estimating the overall risk of healthcare expenses and developing a routine finance structure (such as a monthly premium or annual tax) that will ensure that money is available to pay for the healthcare benefits specified in the insurance agreement. i, e : California Life Insurance, California Home Insurance.
Note: Insurance has been a must in California.
Everything that you must know before buying Home Insurance in California (ca), California life insurance, California home insurance, California insurance quote, insurance California, California insurance, California car insurance quote, auto insurance ca, California auto insurance, insurance ca, auto insurance California, car insurance California, California car insurance.
California AUTO INSURANCE protects you against financial loss if you have an accident. It provides best Medical coverage, liability coverage etc including complete Car Insurance in California. Auto Insurance provides financial protection for you and your family. Pays against Damage, injuries. repairing or stolen etc.
Thank you for visiting our Farmers California website. We have set up this website to be your complete California insurance resource and to assist you with all of your Ca. insurance needs. For More details Please contact us : http://www.bestantiochagent.com/site/ you can also contact on our toll free number :888-318-5626 or call us on phone : 925-777-9400 you can also fax us :925-777-9008.
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California Life Home Car Insurance Quote Auto Insurance CALIFORNIA,CA
[California Life Home Car Insurance Quote Auto Insurance CALIFORNIA,CA]
California Life Home Car Insurance Quote Auto Insurance CALIFORNIA,CA
California Life Home Car Insurance Quote Auto Insurance CALIFORNIA,CA
Avatar Posted by bestantiochagent 1 day 21 hours ago (http://www.bestantiochagent.com) View profile
Category: Financial | Tags: california life insurance california home insurance californ
BESTANTIOCHAGENT.COM OFFER YOU PROFESSIONAL AND EXPERT INSURANCE HELP
Welcome to Farmers CALIFORNIA LIFE INSURANCE. The best resource for CALIFORNIA LIFE INSURANCE, AUTO INSURANCE, HOME INSURANCE, CAR INSURANCE etc. We are the top service providers in Domain of INSURANCE in CALIFORNIA (ca). The Farmers Insurance Group of Companies was founded in 1928 when Farmers Insurance Exchange, an automobile insurer, was formed. As customer demand for additional insurance services increased, the Fire Insurance Exchange and Truck Insurance Exchange were established for home and commercial insurance needs. Today, CALIFORNIA LIFE INSURANCE, CALIFORNIA HOME INSURANCE, CALIFORNIA INSURANCE QUOTE, INSURANCE CALIFORNIA, CALIFORNIA INSURANCE, CALIFORNIA CAR INSURANCE QUOTE, AUTO INSURANCE CA, CALIFORNIA AUTO INSURANCE, INSURANCE CA, AUTO INSURANCE CALIFORNIA, CAR INSURANCE CALIFORNIA, CALIFORNIA CAR INSURANCE, the Farmers Insurance Group of Companies is the country's third-largest writer of both private passenger automobile and homeowners insurance. You will have the added benefit of working with Farmers California agents who understand your needs.
We provide best services for California Insurance, (http://www.bestantiochagent.com/site/) and all you needs for Insurance California. A one stop shop for top rated services for Insurance ca.
We are best insurance quote in California to meet you investing as well as required needs of insurance. California Insurance Quote: Get a Personal Quote on your Insurance Needs, be it California Life Insurance, California Home Insurance, California Insurance Quote, Insurance California, California Insurance, California Car Insurance Quote, Auto Insurance CA, California Auto Insurance, Insurance CA, Auto Insurance California, Car Insurance California, California Car Insurance. etc, in ca. Home Insurance, Auto Insurance, Renters Insurance, Motorcycle Insurance, Boat/Watercraft Insurance , Recreational Vehicle (RV) Insurance, Camper/Trailer Insurance Flood Insurance Life Insurance, Health Insurance, Dental Insurance, Disability Insurance Long Term Care, Mortgages/Loans, Planning .
The term HEALTH INSURANCE is generally used to describe a form of insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. Covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses.
Health insurance works by estimating the overall risk of healthcare expenses and developing a routine finance structure (such as a monthly premium or annual tax) that will ensure that money is available to pay for the healthcare benefits specified in the insurance agreement. i, e : California Life Insurance, California Home Insurance.
Note: Insurance has been a must in California.
Everything that you must know before buying Home Insurance in California (ca), California life insurance, California home insurance, California insurance quote, insurance California, California insurance, California car insurance quote, auto insurance ca, California auto insurance, insurance ca, auto insurance California, car insurance California, California car insurance.
California AUTO INSURANCE protects you against financial loss if you have an accident. It provides best Medical coverage, liability coverage etc including complete Car Insurance in California. Auto Insurance provides financial protection for you and your family. Pays against Damage, injuries. repairing or stolen etc.
Thank you for visiting our Farmers California website. We have set up this website to be your complete California insurance resource and to assist you with all of your Ca. insurance needs. For More details Please contact us : http://www.bestantiochagent.com/site/ you can also contact on our toll free number :888-318-5626 or call us on phone : 925-777-9400 you can also fax us :925-777-9008.
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Receipts detail meals, car washes, insurance
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Officials salute Akron pastor as pillar of faith and wisdom
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Pesky bedbugs invade shelters
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What they are saying about Browns
Steptoe is prepared to step in
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Zips' simple game plan makes Orange see red
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Cavs looking to add big man
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Browns lose the opener, and look bad doing it
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Cleveland Browns v. Dallas Cowboys - Stallworth injured.
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For those tracking the Aeros Saturday…
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Week 3 Football Scoreboard
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Singletary suspended and other notes
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OSU v. OU: Third Quarter
Ohio Politics:
Ad Watch: Kilroy and Stivers Release New Ads
All Da King's Men:
Palin Derangement Syndrome
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Biden Sums Up GOP Convention
HRLite House:
Request for Publications - Fire, Police, & Job Analysis
Akrocentric:
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ICSC Columbus
Homepage > Local News >
Receipts detail meals, car washes, insurance
By Rick Armon
Beacon Journal staff writer
Published on Sunday, Sep 07, 2008
Summit County MRDD Superintendent Tom Armstrong is meticulous about keeping receipts to back up his expenses.
Note: Armstrong is a respected personality in the Summit County.
In the last three years, he has been paid nearly $32,000 in expenses, ranging from meals to hotel stays to auto repair bills, according to a Beacon Journal review of his expense reports.
The receipts show:
• He has lunch and dinner meetings several times a month. He favors bars and taverns as opposed to high-end restaurants, often eating at places such as the Rusty Bucket Corner Tavern, Fado Irish Pub, Winking Lizard Tavern and Bennigan's.
''I'm not an extravagant guy,'' Armstrong said. ''I'm not trying to wine and dine on the county's dime.''
• The MRDD has a policy of not paying for alcohol. And while receipts often show alcoholic drinks, Armstrong doesn't seek reimbursement for them.
• County government workers aren't reimbursed for travel and meals inside the county. Armstrong is. MRDD is governed by an independent board and supported by a levy, with different rules applying to agency employees.
• Some of Armstrong's lunches and dinners are with board members and MRDD workers. Asked why meetings couldn't take place without billing taxpayers for a meal, board President Linda Bordenkircher and member William Ginter said the expenses are justified.
Lunch or dinner may be the only time available to meet, they said. Many meetings often take place without a meal, they added.
• Taxpayers paid his $750 membership to the NAACP in 2006.
• Armstrong doesn't skimp on car washes. He often has his car washed at the Ultimate Wash & Lube in Hudson and is charged $14. He usually provides a $3 tip — which also is picked up partially by taxpayers.
Armstrong said the washes are a legitimate maintenance expense.
• Taxpayers have paid $1,160 toward his personal auto insurance over the last three years. That expense also is justified, Armstrong said, because he has to pay more for insurance since he uses his vehicle more for work.
• Armstrong has his 2001 Land Rover Discovery II serviced at the Land Rover dealership in Akron. In February 2007, he paid $83 to have three new windshield wipers installed. Taxpayers picked up more than half that cost.
Carolyn Holladay, president of the Weaver Workshop and Support Association, representing 290 MRDD workers, said the union has raised questions about Armstrong's expenses in the past, but their concerns have been ignored.
''The taxpayers are going to be horrified, I think,'' she said.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
Summit County MRDD Superintendent Tom Armstrong is meticulous about keeping receipts to back up his expenses.
In the last three years, he has been paid nearly $32,000 in expenses, ranging from meals to hotel stays to auto repair bills, according to a Beacon Journal review of his expense reports.
The receipts show:
• He has lunch and dinner meetings several times a month. He favors bars and taverns as opposed to high-end restaurants, often eating at places such as the Rusty Bucket Corner Tavern, Fado Irish Pub, Winking Lizard Tavern and Bennigan's.
''I'm not an extravagant guy,'' Armstrong said. ''I'm not trying to wine and dine on the county's dime.''
• The MRDD has a policy of not paying for alcohol. And while receipts often show alcoholic drinks, Armstrong doesn't seek reimbursement for them.
• County government workers aren't reimbursed for travel and meals inside the county. Armstrong is. MRDD is governed by an independent board and supported by a levy, with different rules applying to agency employees.
• Some of Armstrong's lunches and dinners are with board members and MRDD workers. Asked why meetings couldn't take place without billing taxpayers for a meal, board President Linda Bordenkircher and member William Ginter said the expenses are justified.
Lunch or dinner may be the only time available to meet, they said. Many meetings often take place without a meal, they added.
• Taxpayers paid his $750 membership to the NAACP in 2006.
• Armstrong doesn't skimp on car washes. He often has his car washed at the Ultimate Wash & Lube in Hudson and is charged $14. He usually provides a $3 tip — which also is picked up partially by taxpayers.
Armstrong said the washes are a legitimate maintenance expense.
• Taxpayers have paid $1,160 toward his personal auto insurance over the last three years. That expense also is justified, Armstrong said, because he has to pay more for insurance since he uses his vehicle more for work.
• Armstrong has his 2001 Land Rover Discovery II serviced at the Land Rover dealership in Akron. In February 2007, he paid $83 to have three new windshield wipers installed. Taxpayers picked up more than half that cost.
Carolyn Holladay, president of the Weaver Workshop and Support Association, representing 290 MRDD workers, said the union has raised questions about Armstrong's expenses in the past, but their concerns have been ignored.
''The taxpayers are going to be horrified, I think,'' she said.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
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Posted by alan 04:49 AM, 09/07/2008
Given the success the guy has clearly achieved (great increase in money brought to Summit MRDD during his tenure), the small expense is money well spent. Must be a slow news day to make an issue over a NON-ISSUE...
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Posted by Dennis 07:20 AM, 09/07/2008
NAACP dues are NOT a Legitimate Expense....it's not necessary to do the job!!! What Fools are running slummit county!
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Posted by Greg 07:47 AM, 09/07/2008
Increased Medicaid $ resulted from efforts at the State level and benefiited all 88 counties in Ohio. Giving Armstrong credit for the additional medicaid $ is quite a stretch.
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Posted by Missy 09:01 AM, 09/07/2008
bring back topix
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September 08, 2008
Weather Complete Forecast
Click here to find out more!
* News
* Sports
* Business
* Editorial
* Lifestyle
* Entertainment
* Multimedia
* UPublish
* Classifieds
* Obituaries
Click here to find out more!
LOCAL NEWS
* Today's Local News
* Breaking
* Obituaries
* Crime Watch
* Education
* Politics
* Medina County
* Portage County
* Stark County
* Summit County
* Wayne County
* Corrections
COLUMNISTS
* Jewell Cardwell
* Bob Dyer
* David Giffels
* Dennis Willard
NATION/WORLD
* Nation
* World
* AP News
OHIO NEWS
* State News
* Ohio Lottery
* Dennis Willard
PUBLISH YOUR NEWS
* News Story
* Upcoming Event
* School/Education
* Military News
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SPECIAL PROJECTS
* Akron's War Dead
* American Dream series
* Natural Gas
* Welcome Home
ARCHIVES
* Beacon Journal
* Historical
* NewsLibrary
* 7-Day Archives
* Photo Reprints
SOAP BOX DERBY
* Full Derby Coverage
SPORTS
* Today's Sports News
* High School
* High school football preview
* Golf (Pro and Amateur)
* Motor Sports
* Olympics
PRO
* Aeros
* Browns
* Cavs
* Gladiators
* Indians
COLLEGE
* Akron Zips
* Kent State
* Ohio State
COLUMNISTS
* Patrick McManamon
* Marla Ridenour
* Sheldon Ocker
* George Thomas
* Brian Windhorst
PUBLISH SPORTS NEWS
* Sports Story
* Upcoming Event
* Read UPublish News
BLOGS
* Akron Aeros
* Akron Zips
* Balanced Ledger
* Browns Bulletin
* Cleveland Browns
* Cleveland Cavaliers
* Cleveland Indians
* Kent State
* Patrick McManamon
* The Sports Blitz
* Varsity Letters
ARCHIVES
* Beacon Journal
* Historical
* NewsLibrary
* 7-Day Archives
* Photo Reprints
BUSINESS
* Today's Business
* Betty Lin-Fisher
* Natural Gas
AP BUSINESS NEWS
* Stocks and Money
PUBLISH NEWS
* On the Move
* Story
* Upcoming Event
REAL ESTATE TRANSFERS
* Database search: 2002 to Present
PROJECTS
* Home Buying Series
ARCHIVES
* Beacon Journal
* Historical
* NewsLibrary
* 7-Day Archives by Section
* Photo Reprints
PUBLIC NOTICES
* Public Notices
* Yellow Pages Search
EDITORIAL INDEX
* Today's Editorial Page
* Editorial Opinions
* Editorial Commentaries
LOCAL COLUMNISTS
* Michael Douglas
* Steve Hoffman
* Laura Ofobike
EDITORIAL CARTOONS
* Chip Bok's BokBluster
VOICE OF THE PEOPLE
* Read Letters to the Editor
* Submit a Letter to the Editor
ARCHIVES
* Beacon Journal
* Historical
* NewsLibrary
* 7-Day Archives by Section
* Photo Reprints
TOPICS
* Lifestyle News
* Books
* Celebrations
* Education
* Family
* Food
* Health
* Home & Garden
* Local History
* Ohio Travel
* Pets
* Religion
* Travel
COLUMNISTS
* Lisa Abraham
* Connie Bloom
* Mary Beth Breckenridge
* Bob Downing
* Kim Hone-McMahan (Sketches)
* Dear Abby
PUBLISH NEWS
* Upcoming Event
* Social Event
* Military News
* School/Education
ARCHIVES
* Beacon Journal
* Historical
* NewsLibrary
* 7-Day Archives by Section
* Photo Reprints
TOPICS
* Entertainment News
* Arts & Culture
* Comics & Games
* Enjoy listings
* Heldenfels' Mailbag
* Horoscopes
* Movies
* Music
* Ohio Travel
* Performing Arts
* Television
COLUMNISTS
* Malcolm X Abram
* Elaine Guregian
* Rich Heldenfels
* Dottie Shinn
* Dear Abby
WHAT TO DO
* Dining
* Events
* Exhibits
BLOGS
* Heldenfiles
* Ohio Travels with Betty
* Sound Check
PUBLISH NEWS
* Upcoming Event
* Story
ARCHIVES
* Beacon Journal
* Historical
* NewsLibrary
* 7-Day Archives by Section
* Photo Reprints
VIDEOS
* View Videos
* Upload a Video
PHOTO GALLERIES
* View Photo Galleries
* Order Photo Reprints
* Upload a Photo
AP VIDEOS
* Caught on Tape
* Science & Tech
* ShowBiz
* Sports
* U.S.
* Top Videos
* World
READER BLOGS
* All Da King's Men
* Blog of Mass Destruction
* Young Professionals Loop
PUBLISH NEWS
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* Sports
* Social Events
* On the Move
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* Upcoming Event
* Upload a Photo
* Upload a Video
READ NEWS
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* School and Education
* Sports
* Social Events
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* Aeros Best Memory Contest
PUBLISHING GUIDE
* How to Publish News
CARS
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* Research a Vehicle
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Homes Jobs Cars Shopping
Search
About Us | Make Us Your Home Page | RSS
Events Calendar
September 2008
Visit Zvents.com
Su Mo Tu We Th Fr Sa
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 1 2 3 4
5 6 7 8 9 10 11
EVENT SEARCH:
==> Submit an Event
In This Section
Officials salute Akron pastor as pillar of faith and wisdom
Candles to glow at Tallmadge Circle
Section lineup change starts today in Beacon
Park's friends open store
Train ride deadline is Oct. 1
HISTORYON WHEELS
Scene
Bath may act today on emergency sirens
State database lists emergency contacts ...
Pesky bedbugs invade shelters
Most Read Stories
24 hrs 7 days
Cavaliers sign second-round pick
What they are saying about Browns
Steptoe is prepared to step in
Patrick McManamon: Random NFL and Browns thoughts
Housing crisis upends kids' lives
Cavaliers brief
Alexander confident he'll find job in NFL
Change of scenery good for Rogers
Zips' simple game plan makes Orange see red
Comics & Games
Complete List >>
24 hrs 7 days
Cavs looking to add big man
Cowboys will face prayerful Browns
Teammates' return no Browns fairy tale
Crash victim is haunted by suspect
George family offers settlement to slain man's son
Pat's Beside the Point: Failing to fill in the blanks
LeBron, prep pals set to hit big screen
Comics & Games
Browns try to regroup before facing Cowboys
UA food fee leaves bad taste
Complete List >>
Blogs:
Akron Law Café:
The Supreme Court at the Tipping Point - Be Sure to Vote
Car Chase:
The Heldenfiles:
The Sporting Life
Patrick McManamon:
Browns lose the opener, and look bad doing it
Browns Bulletin:
Cleveland Browns:
Cleveland Browns v. Dallas Cowboys - Stallworth injured.
Cleveland Indians:
Akron Aeros:
For those tracking the Aeros Saturday…
Akron Zips:
The morning after
Varsity Letters:
Week 3 Football Scoreboard
Kent State Sports:
Singletary suspended and other notes
The Sports Mix:
OSU v. OU: Third Quarter
Ohio Politics:
Ad Watch: Kilroy and Stivers Release New Ads
All Da King's Men:
Palin Derangement Syndrome
Blog of Mass Destruction:
Biden Sums Up GOP Convention
HRLite House:
Request for Publications - Fire, Police, & Job Analysis
Akrocentric:
"Sunflower," a poem by Frank Steele
Akron Gamer:
BokBluster:
Ohio Travels with Betty:
Marilyn asks, when is the pumpkin festival?
Sound Check:
LeRoi Moore, Dave Matthews Band saxophonist dies
Tia's Trends:
ICSC Columbus
Homepage > Local News >
Receipts detail meals, car washes, insurance
By Rick Armon
Beacon Journal staff writer
Published on Sunday, Sep 07, 2008
Summit County MRDD Superintendent Tom Armstrong is meticulous about keeping receipts to back up his expenses.
Note: Armstrong is a respected personality in the Summit County.
In the last three years, he has been paid nearly $32,000 in expenses, ranging from meals to hotel stays to auto repair bills, according to a Beacon Journal review of his expense reports.
The receipts show:
• He has lunch and dinner meetings several times a month. He favors bars and taverns as opposed to high-end restaurants, often eating at places such as the Rusty Bucket Corner Tavern, Fado Irish Pub, Winking Lizard Tavern and Bennigan's.
''I'm not an extravagant guy,'' Armstrong said. ''I'm not trying to wine and dine on the county's dime.''
• The MRDD has a policy of not paying for alcohol. And while receipts often show alcoholic drinks, Armstrong doesn't seek reimbursement for them.
• County government workers aren't reimbursed for travel and meals inside the county. Armstrong is. MRDD is governed by an independent board and supported by a levy, with different rules applying to agency employees.
• Some of Armstrong's lunches and dinners are with board members and MRDD workers. Asked why meetings couldn't take place without billing taxpayers for a meal, board President Linda Bordenkircher and member William Ginter said the expenses are justified.
Lunch or dinner may be the only time available to meet, they said. Many meetings often take place without a meal, they added.
• Taxpayers paid his $750 membership to the NAACP in 2006.
• Armstrong doesn't skimp on car washes. He often has his car washed at the Ultimate Wash & Lube in Hudson and is charged $14. He usually provides a $3 tip — which also is picked up partially by taxpayers.
Armstrong said the washes are a legitimate maintenance expense.
• Taxpayers have paid $1,160 toward his personal auto insurance over the last three years. That expense also is justified, Armstrong said, because he has to pay more for insurance since he uses his vehicle more for work.
• Armstrong has his 2001 Land Rover Discovery II serviced at the Land Rover dealership in Akron. In February 2007, he paid $83 to have three new windshield wipers installed. Taxpayers picked up more than half that cost.
Carolyn Holladay, president of the Weaver Workshop and Support Association, representing 290 MRDD workers, said the union has raised questions about Armstrong's expenses in the past, but their concerns have been ignored.
''The taxpayers are going to be horrified, I think,'' she said.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
Summit County MRDD Superintendent Tom Armstrong is meticulous about keeping receipts to back up his expenses.
In the last three years, he has been paid nearly $32,000 in expenses, ranging from meals to hotel stays to auto repair bills, according to a Beacon Journal review of his expense reports.
The receipts show:
• He has lunch and dinner meetings several times a month. He favors bars and taverns as opposed to high-end restaurants, often eating at places such as the Rusty Bucket Corner Tavern, Fado Irish Pub, Winking Lizard Tavern and Bennigan's.
''I'm not an extravagant guy,'' Armstrong said. ''I'm not trying to wine and dine on the county's dime.''
• The MRDD has a policy of not paying for alcohol. And while receipts often show alcoholic drinks, Armstrong doesn't seek reimbursement for them.
• County government workers aren't reimbursed for travel and meals inside the county. Armstrong is. MRDD is governed by an independent board and supported by a levy, with different rules applying to agency employees.
• Some of Armstrong's lunches and dinners are with board members and MRDD workers. Asked why meetings couldn't take place without billing taxpayers for a meal, board President Linda Bordenkircher and member William Ginter said the expenses are justified.
Lunch or dinner may be the only time available to meet, they said. Many meetings often take place without a meal, they added.
• Taxpayers paid his $750 membership to the NAACP in 2006.
• Armstrong doesn't skimp on car washes. He often has his car washed at the Ultimate Wash & Lube in Hudson and is charged $14. He usually provides a $3 tip — which also is picked up partially by taxpayers.
Armstrong said the washes are a legitimate maintenance expense.
• Taxpayers have paid $1,160 toward his personal auto insurance over the last three years. That expense also is justified, Armstrong said, because he has to pay more for insurance since he uses his vehicle more for work.
• Armstrong has his 2001 Land Rover Discovery II serviced at the Land Rover dealership in Akron. In February 2007, he paid $83 to have three new windshield wipers installed. Taxpayers picked up more than half that cost.
Carolyn Holladay, president of the Weaver Workshop and Support Association, representing 290 MRDD workers, said the union has raised questions about Armstrong's expenses in the past, but their concerns have been ignored.
''The taxpayers are going to be horrified, I think,'' she said.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
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Posted by alan 04:49 AM, 09/07/2008
Given the success the guy has clearly achieved (great increase in money brought to Summit MRDD during his tenure), the small expense is money well spent. Must be a slow news day to make an issue over a NON-ISSUE...
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Posted by Dennis 07:20 AM, 09/07/2008
NAACP dues are NOT a Legitimate Expense....it's not necessary to do the job!!! What Fools are running slummit county!
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Posted by Greg 07:47 AM, 09/07/2008
Increased Medicaid $ resulted from efforts at the State level and benefiited all 88 counties in Ohio. Giving Armstrong credit for the additional medicaid $ is quite a stretch.
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Posted by Missy 09:01 AM, 09/07/2008
bring back topix
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Wednesday, September 10, 2008
Katrina Victims Illiteracy Hampers Recovery
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FOXNEWS.COM HOME > U.S.
Katrina Victims' Illiteracy Hampers Recovery
Wednesday, August 27, 2008
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NEW ORLEANS — Marsha Williams had always hesitated when mail arrived from the government. After Hurricane Katrina, she began to fear the letters.
One warned that her apartment building could be shut down because of unrepaired storm damage. There were legal notices and forms. What did they all mean? At age 51, Williams was embarrassed she could not read much more than her own name and address.
Three years after Katrina, residents of New Orleans are still buried in a blizzard of government paperwork. But for thousands of storm victims seeking federal aid, the challenge is made more difficult by a little-known obstacle: More than 40 percent of the city's adults lack the literacy skills to comprehend basic government forms. And recovery programs have done little to ease the burden.
"I didn't get a lot of school when I was a child. I guess they didn't have enough to go around," said Williams, who is learning to read in a YMCA adult-education course.
Rachel B. Nicolosi, program director for the Literacy Alliance of Greater New Orleans, estimates that as many as 100,000 people from New Orleans may have had assistance delayed, or they never applied for help at all, because they could not read the documents.
"It's a paramount issue. The rules are almost indecipherable for everyone," said Davida Finger, a staff attorney for Loyola University's New Orleans College of Law, which has helped 1,000 people seek rebuilding aid, nearly all of whom had trouble understanding the forms.
Katrina destroyed 27 adult literacy programs when it came ashore in 2005. Only 13 programs survived, so Nicolosi and others have asked for government rebuilding agencies to write aid forms in a "plain language" format that is already used for some federal health and safety documents.
But some government officials say too much plain language can leave out vital information.
"I concede the point that those who are functionally illiterate, they would have challenges with any form," said Brian Sullivan, a spokesman for the Department of Housing and Urban Development. He said the agency has trained all of its 37 staff members in New Orleans to help "those with literacy disabilities."
The National Adult Literacy Survey indicates that 25 percent of U.S. adults read at the lowest functional level, meaning, for example, that they can locate an expiration date on a driver's license but cannot fill out most motor-vehicle forms.
In New Orleans, that figure is 44 percent, according to the survey, which is performed every decade and was last conducted in 2003.
Note: natural calamity has great effect in the economy.
The cornerstone of neighborhood rebuilding efforts is the $10.3 billion Road Home program, which asks participants to review dozens of documents and sign 18 final legal papers before aid is approved.
One paragraph reads: "Homeowner(s) agree(s) to the filing of certain covenants to run with the land on the property for which this Grant is awarded requiring generally as follows: flood insurance to be maintained if located in Special Flood Hazard Area and restraints on use, occupancy and alienation of the Property. The actual covenants are contained in the instrument to be executed by Homeowner(s) and recorded in the land records of the parish where the Property for which this Grant is awarded and located."
Christina Stephens, spokeswoman for the Louisiana Recovery Authority that oversees the Road Home program, said the papers are legal documents, which is "why they sound so serious." But she acknowledged that "it's equally important that people can understand what they are signing."
Since the program was created in 2006, it has held at least 22 training sessions for staff members specifically designed to help illiterate applicants, Stephens said.
Government officials "know who their audience is, and they should write for them," said Annetta Cheek, a spokeswoman for the Plain Language Action and Information Network, a group of federal employees who advocate for clearer language in government communications.
Cheek said the group asked three plain language "translators" to examine the 18 pages of Road Home documents. After several hours, the team was still uncertain of the program's requirements, even though two of the participants were lawyers.
The papers were so confusing that Thomas Wright drove three hours from Mississippi to talk to Road Home outreach workers.
Wright, a retired auto mechanic, graduated from high school in the 1950s and later took shop classes to get his mechanics' license. But when it came to the Road Home forms, he had to enlist friends.
"I needed help from educated people," said Wright, who is black and remembers the segregation of the city school system.
"We got your second-hand books, with half the pages torn out," he said.
Wright applied to Road Home a year ago, trying to rebuild a house in the Upper 9th Ward that was flooded with 8 feet of water. But his application remains stalled; program switchboards refer him back to the forms.
Wright was especially frustrated by one of the most important documents — the highly verbose form that asks applicants to choose among three options: stay and rebuild, sell their home to the state and relocate within Louisiana, or sell their home to the state and leave Louisiana.
"You got 1,500 words (on a form) that could be said in 500," Wright said.
Wright's generation is not the only one that's struggling. According to the Louisiana Department of Education, 42 percent of students who graduated from high school in New Orleans in 2004 had "unsatisfactory" English scores. And more than one in 10 students dropped out of high school.
Henry Lee Burton, 28, said he left school in the ninth grade to take a job and care for his diabetic mother, who died in the months after Katrina.
Though he evacuated to Houston after the storm, he never applied for the FEMA relocation assistance. He said neither he, his mother, nor sister, read well enough to understand the requirements.
Burton, who earns $24,000 a year as a Wal-Mart tire shop worker, said the only assistance he received was a $3,500 payout from his renter's insurance. Two years passed before he could gather up the courage to go to the office and tell his agent he did not fully understand letters from the insurance company.
Now he has a different plan: to learn to read well enough so he does not need help.
"It's something I've always wanted to do and something I need to do," he said. "You really can't depend on the government anyway. You have to do it yourself."
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FOXNEWS.COM HOME > U.S.
Katrina Victims' Illiteracy Hampers Recovery
Wednesday, August 27, 2008
* Share:
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NEW ORLEANS — Marsha Williams had always hesitated when mail arrived from the government. After Hurricane Katrina, she began to fear the letters.
One warned that her apartment building could be shut down because of unrepaired storm damage. There were legal notices and forms. What did they all mean? At age 51, Williams was embarrassed she could not read much more than her own name and address.
Three years after Katrina, residents of New Orleans are still buried in a blizzard of government paperwork. But for thousands of storm victims seeking federal aid, the challenge is made more difficult by a little-known obstacle: More than 40 percent of the city's adults lack the literacy skills to comprehend basic government forms. And recovery programs have done little to ease the burden.
"I didn't get a lot of school when I was a child. I guess they didn't have enough to go around," said Williams, who is learning to read in a YMCA adult-education course.
Rachel B. Nicolosi, program director for the Literacy Alliance of Greater New Orleans, estimates that as many as 100,000 people from New Orleans may have had assistance delayed, or they never applied for help at all, because they could not read the documents.
"It's a paramount issue. The rules are almost indecipherable for everyone," said Davida Finger, a staff attorney for Loyola University's New Orleans College of Law, which has helped 1,000 people seek rebuilding aid, nearly all of whom had trouble understanding the forms.
Katrina destroyed 27 adult literacy programs when it came ashore in 2005. Only 13 programs survived, so Nicolosi and others have asked for government rebuilding agencies to write aid forms in a "plain language" format that is already used for some federal health and safety documents.
But some government officials say too much plain language can leave out vital information.
"I concede the point that those who are functionally illiterate, they would have challenges with any form," said Brian Sullivan, a spokesman for the Department of Housing and Urban Development. He said the agency has trained all of its 37 staff members in New Orleans to help "those with literacy disabilities."
The National Adult Literacy Survey indicates that 25 percent of U.S. adults read at the lowest functional level, meaning, for example, that they can locate an expiration date on a driver's license but cannot fill out most motor-vehicle forms.
In New Orleans, that figure is 44 percent, according to the survey, which is performed every decade and was last conducted in 2003.
Note: natural calamity has great effect in the economy.
The cornerstone of neighborhood rebuilding efforts is the $10.3 billion Road Home program, which asks participants to review dozens of documents and sign 18 final legal papers before aid is approved.
One paragraph reads: "Homeowner(s) agree(s) to the filing of certain covenants to run with the land on the property for which this Grant is awarded requiring generally as follows: flood insurance to be maintained if located in Special Flood Hazard Area and restraints on use, occupancy and alienation of the Property. The actual covenants are contained in the instrument to be executed by Homeowner(s) and recorded in the land records of the parish where the Property for which this Grant is awarded and located."
Christina Stephens, spokeswoman for the Louisiana Recovery Authority that oversees the Road Home program, said the papers are legal documents, which is "why they sound so serious." But she acknowledged that "it's equally important that people can understand what they are signing."
Since the program was created in 2006, it has held at least 22 training sessions for staff members specifically designed to help illiterate applicants, Stephens said.
Government officials "know who their audience is, and they should write for them," said Annetta Cheek, a spokeswoman for the Plain Language Action and Information Network, a group of federal employees who advocate for clearer language in government communications.
Cheek said the group asked three plain language "translators" to examine the 18 pages of Road Home documents. After several hours, the team was still uncertain of the program's requirements, even though two of the participants were lawyers.
The papers were so confusing that Thomas Wright drove three hours from Mississippi to talk to Road Home outreach workers.
Wright, a retired auto mechanic, graduated from high school in the 1950s and later took shop classes to get his mechanics' license. But when it came to the Road Home forms, he had to enlist friends.
"I needed help from educated people," said Wright, who is black and remembers the segregation of the city school system.
"We got your second-hand books, with half the pages torn out," he said.
Wright applied to Road Home a year ago, trying to rebuild a house in the Upper 9th Ward that was flooded with 8 feet of water. But his application remains stalled; program switchboards refer him back to the forms.
Wright was especially frustrated by one of the most important documents — the highly verbose form that asks applicants to choose among three options: stay and rebuild, sell their home to the state and relocate within Louisiana, or sell their home to the state and leave Louisiana.
"You got 1,500 words (on a form) that could be said in 500," Wright said.
Wright's generation is not the only one that's struggling. According to the Louisiana Department of Education, 42 percent of students who graduated from high school in New Orleans in 2004 had "unsatisfactory" English scores. And more than one in 10 students dropped out of high school.
Henry Lee Burton, 28, said he left school in the ninth grade to take a job and care for his diabetic mother, who died in the months after Katrina.
Though he evacuated to Houston after the storm, he never applied for the FEMA relocation assistance. He said neither he, his mother, nor sister, read well enough to understand the requirements.
Burton, who earns $24,000 a year as a Wal-Mart tire shop worker, said the only assistance he received was a $3,500 payout from his renter's insurance. Two years passed before he could gather up the courage to go to the office and tell his agent he did not fully understand letters from the insurance company.
Now he has a different plan: to learn to read well enough so he does not need help.
"It's something I've always wanted to do and something I need to do," he said. "You really can't depend on the government anyway. You have to do it yourself."
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Fear of Commitment: It's In His Genes
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* Singer Fergie raise awareness for AIDS
* How to throw a football party
* Dealing with back-to-school anxiety
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* Sunday's national weather forecast
* Will McCain, Palin change the GOP?
* Negative coverage helping Palin?
* The media is 'down' after Palin story
* GOP has their turn in the spotlight
* 'Gov. Sarah Palin: An American Woman'
ADVERTISEMENT Click here to find out more!
* U.S.
* World
* Politics
* Health
* SciTech
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AP Wires
* Jury selection to begin in OJ Simpson robbery case
* Fla. Keys residents weigh evacuation ahead of Ike
* Coast Guard suspends search for missing pilot
* Owner: Ride's over at Coney Island amusement park
* Regional carrier jet runs off San Antonio runway
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* Killer Hurricane Ike roars ashore in eastern Cuba
* Hot air balloon crashes near Philadelphia, kills 1
* Ike ebbs to Category 3 hurricane nearing Cuba
* Cuban-born forecaster leaves emotion outside work
* News Archive
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