Protecting what’s important since 1874

Insurance news for your business

and personal needs

Winter 2010

2213 E. Grand River Ave. Lansing, MI 48912

Phone 1-800-648-0856

www.lymansheets.com info@lymansheets.com

In this issue...Black Ice ........................... 1Employee Wellness ............ 2Worth Noting .................... 3Market Update .................. 4

Ice a danger on

roads, roofs

hether on the road or on the roof, ice can be a hazard that sometimes brings insurance claims.

Black ice, also known as clear or glare ice, refers to a thin coat of ice on roadways. Although it’s not really black, it’s transparent enough to make it difficult to see or the road to appear wet. Bridges and overpasses are especially dangerous due to the cold air that travels above and below the road surface. In any area, black ice can cause loss of control and accidents involving other vehicles or guardrails. Accidents caused by black ice are

considered at-fault accidents against your auto policy.

Ice can also create headaches for homeowners. Icicles warn of possible ice dams on your roof, caused by heavy snowfall and improper ventilation. Ice dams form when water pools on the roof. Pooling water can leak inside a home, causing damage to ceilings, insulation and other areas. When ice dams occur, it is best to call a contractor experienced in their removal.

During Michigan winters, keeping steps, driveways and sidewalks clear of ice and

continued on page 3

W

By Dianne Moeggenberg, Personal Lines Agent

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The Lyman & Sheets Letter is published three times a year for clients and associates of the Lyman & Sheets Insurance Agency.

Publisher: Andy Sheets

Editors: Sarah Barber, Theodore Hollenbeck, Mike Sheets, Linn Sullivan and Matt Waligorski.

Publication Management: Lezotte Miller Public Relations Inc.

Questions and comments can be sent to:Lyman & Sheets 2213 E. Grand River Ave.Lansing, MI 48912Ph. 517-482-22111-800-648-0856Fax 517-371-4881www.lymansheets.cominfo@lymansheets.com

Lyman & Sheets is licensed in the following states:

Lyman & Sheets writes with these and other fine companies:Accident Fund Acuity

AetnaAIG

Auto-OwnersBlue Care Network

Blue Cross Blue Shield of Michigan

ChubbCincinnati

Frankenmuth MutualFremont

Harleysville Insurance Hartford

Humana GNY Great Lakes Casualty

Indiana

Lloyds of London

McLaren Health PlanMCIM

Michigan MillersMLBA Mutual

PHPMMPhiladelphia Insurance

Companies

Priority Health

Progressive

State Auto

Travelers

Unicare

West Bend

Westfield

ArizonaArkansasCaliforniaColoradoConnecticutFloridaGeorgiaIllinoisIndianaIowaKansasKentuckyLouisianaMarylandMassachusettsMichiganMinnesotaMississippiMontanaNebraskaNew JerseyNew Mexico New YorkNorth Carolina OhioPennsylvaniaSouth CarolinaSouth DakotaTennesseeTexasUtah VirginiaWashingtonWisconsin

ot only is a wellness program beneficial for employees’ waistlines, researchers now find that wellness initiatives can benefit a company’s bottom line as well. According to Risk and Insurance magazine, U.S. workers are heavier than ever before. The direct costs of obesity are estimated at $75 billion, with an additional $139 billion allocated for indirect costs. Employers are responsible for $45 billion in medical expenses as well as excessive absenteeism costs, not to mention workers’ compensation costs, which are typically higher for obese workers.

To assist employees in getting healthy and consequently reducing their risk of workplace injury or illness, businesses should consider implementing the following:

• Biometricscreenings

• Healthcoaching

• TelephoneandInternet-based health advisers

• Diseasemanagementprograms with guidance from licensed professionals

• Mentalhealthcounselingandbenefits

• Educationalsafetyandhealthseminars

• Incentivesforemployeeswhoreach health-related goals

• Monthlysafetytips

Contact Lyman & Sheets for information and resources on how to create an effective health and safety program.

Healthy workers boost the bottom lineN

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Ice on sidewalk a liability concern continued from page 1

snow can be a huge job. Homeowners who do not clear ice and snow could have a claim against their liability policy if someone slips and injures him or herself.

Choose the proper ice-melting material

Salt is the perfect tool to melt ice on steps, driveways or sidewalks, but the surrounding environment should be considered. Rock salt or sodium chloride can pollute streams, rivers and lakes. The chloride also causes metal to corrode. Calcium chloride, the small rounded white pellets, will melt snow and ice at temperatures below 0 Fahrenheit, but it

causes skin irritation and harm to pets’ paws. Potassium chloride is not a skin irritant and does not harm vegetation. The newest deicing salt is magnesium chloride, which melts snow until the temperature reaches minus 13 F. It is also less damaging to concrete surfaces; less toxic to plants, trees and shrubs; and it releases less chloride into the environment. Sand is also a good traction device to use on slippery outdoor surfaces. Avoid using fertilizers that contain ammonium nitrate and sulfate, which disintegrate concrete.

Please take care during freezing temperatures.

Keep warm, but be safeThe bitter Michigan weather,

along with a desire to pinch pen-nies in uncertain economic times, is leading some homeowners to look for more cost-effective ways to keep warm, such as purchasing and installing wood-burning stoves or exterior corn or pellet burners.

If you have been considering buy-ing one of these devices, remember to contact your insurance agent to discuss the impact on your insurance depending on the type purchased and the installation.

WorthNoting

Lyman & Sheets Chairman Andy Sheets played a key role in raising more than $120,000 to help at-risk children and families overcome struggles. Sheets was a key presenter at Highfields Inc.’s Third Annual “Strengthening Families” fund-raising breakfast last fall. The money raised will assist mid-Michigan families affected by domestic violence and other challenges.

Personal Lines Agent Dianne Moeggenberg has earned a Certified Insur-ance Service Representative (CISR) des-ignation from The National Alliance for Insurance Education and Research. Moeggenberg successfully completed a series of classes and cor-responding exams covering agency

operations as well as both personal and commercial insurance topics.

Allison Bartlett has joined our staff as a mar-keting assistant. Bartlett is a Michigan State University student slated to graduate in May with a bachelor of arts degree in communication with an emphasis on public relations.

Lyman & Sheets is on Facebook. Become a fan! Visit us at face-book.com/lyman-sheets.

Lyman & Sheets Chairman Andy Sheets speaks during Highfields Inc.’s “Strengthening Families” breakfast.

Facebook.com/lymansheetsMoeggenberg

Bartlett

DID YOU KNOW?

Texting as dangerous as driving drunk According to a new study conducted by Car and Driver magazine, texting while

driving is as dangerous as drinking and driving. Many states – including Michigan – recognize the issue and have already banned texting while driving. Make sure your company’s cell-phone-usage policies include texting as well. Don’t have a cell-phone-usage policy? Contact Lyman & Sheets – we can help.

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Lyman & Sheets handles all your insurance needs:CommercialAircraftBusiness autosBuildingsPropertyLiabilityEmployment practices liabilityPollutionLiquor liabilityGarage liabilityDealer’s blanketRental dwellingCommercial umbrellaSpecial eventsWorkers’ compensationBondsDirectors & officers liabilityErrors & omissionsConvention cancellationKidnapRansomTerrorismExport & credit risk

Life & HealthAnnuities Group & individual lifeGroup & individual healthLong term disabilityShort term disabilityHealth savings accountsLong term care

PersonalAutoMotorcyclesAntique autosHomeowners Farm CondosManufactured homesRentersRecreational vehiclesBoatsPersonal watercraftSnowmobilesTrailersMotor homesSeasonal dwellingsPersonal umbrellas

PRSRT STDU.S. Postage

PAIDLansing, MIPermit #485

2213 E. Grand River Ave.Lansing, MI 48912

ommercial insurance customers, many of whom saw their premiums drop by double digits in 2009, can probably expect continued price stability in 2010.

The outlook for personal lines is far less certain, however,

primarily because of a possible statewide ballot initiative that calls for a 20 percent cut in auto insurance rates. More on that later.

But first, let’s look at the marketplace for commercial insurance, such as property, liability and workers’ compensation policies.

Michigan’s sluggish economy helped hold down premiums in 2009. Carriers were reluctant to give up market share, so they kept rates flat or lowered them to retain or attract new customers.

That means relative bargains were available for consumers with good risk-management practices and loss histories. Many larger commercial customers saw their premiums lowered by 10 percent or more in 2009.

The investment market also played a role in keeping premiums down. Government regulations prevent insurers from investing heavily in equities markets. Therefore, insurance companies didn’t participate in the strong stock market rally in the latter half of 2009. Instead, they had to settle for relatively

anemic returns on bonds and other fixed-rate investments. With returns so low, insurers aimed to raise cash by selling more policies – which they attempted to accomplish by keeping premiums low.

A similar scenario is likely for 2010, although it won’t be surprising if commercial insurance premiums fluctuate more than in 2009.

The auto insurance market is far less settled. The Board of State Canvassers in late fall approved the petition form for a 2010 ballot proposal calling for a 20 percent cut in auto insurance rates. The proposal would also slash rates by another 20 percent for good drivers who have no points on their driving record in the past six years and bar insurers from basing

premiums on drivers’ credit history, occupation or education.

More than 304,000 valid signatures are required to land the initiative on the November ballot.

If voters pass the proposal, it will likely have the opposite effect of what its backers intended. Many insurers would simply quit doing business in the

state, reducing competition and pushing rates even higher.

Right now, Michigan’s market for auto insurance and other personal lines is competitive and stable. The ballot proposal would throw it into unnecessary turmoil.

What’s more, the problems could spill over to the commercial marketplace. Commercial insurers could view the unstable regulatory environment as a reason to leave the state.

Commercial premiums stable, for nowBy Andy Sheets, Principal, CIC, CRM, LIC

C

Sheets

Right now, Michigan’s market for auto

insurance and other personal lines is

competitive and stable. The ballot proposal would throw it into

unnecessary turmoil.