Top 7 Reasons New Insurance Agents Fail to Reach Success

I would like to offer some insights as to why I believe such a high percentage of Insurance Agents fail in their first couple years in the insurance business.

There can be multiple reasons that contribute to a new insurance agents failure. Here are the most common reasons I have found that lead to failure.

  • Most Insurance Agents have a Limited product portfolio and are unable to cross sell other insurance products.
  • Agents do not have a proven sales track or sales system to follow which most new insurance agents need to get results quickly.
  • They do not create consistent cash flow from insurance sales quick enough and must leave the insurance business to go back to an hourly paying job just to survive.
  • New Insurance Agents start out in the insurance business with little or no reserves to fall back on. Most businesses require some upfront capital or reserves to get started.
  • A lot of agents do not get enough training (Product or Sales) to give them a fair chance of making it in the insurance business.
  • Insurance Agents are not taught effective prospecting and marketing techniques that generate a consistent flow of sales prospects.
  • Some people simply do not have the drive, work habits, persistence, self motivation or ability to handle rejection that it's takes to survive in an insurance sales career.

From my experience of hiring and training insurance agents over the past 23 years, I have found the following items need to be present in order to maximize a new agent's chances for success long term in the insurance industry.

  • A quality multi-product portfolio to offer multiple insurance solutions when different needs are uncovered during the initial fact finding process with a potential client.
  • A proven sales track and presentation that can be taught and implemented very quickly. One that gets sales results but also generates a generous flow of new prospects and referrals.
  • An advance commission system that provides weekly cash flow so the new agent can focus on their training and sales, not their bills that are due.
  • Tools that make learning and growing in the insurance business fun and automatic. (Ie Archived Training Videos, Health and Life Quote Engines, Live Product and Sales Training Webinars, etc.)
  • Quality contracts that provide immediate 100% vesting rights and commission growth opportunities to General Agent commission levels.

At National Marketing Group we have learned over the years the essential pieces that new agents need to not only survive but thrive in the insurance industry. Our mission statement says it all. "First, to offer the Independent Insurance Agent a support system that provides a platform for success in Insurance Sales. Second, to build long term relationships through a foundation of trust and commitment."

We sincerely believe the 80% -90% failure rate of new insurance sales agents entering the insurance industry can be significantly reduced when the right agent support system is in place. We encourage you and invite you to join us in this very exciting and rewarding career opportunity. Hope to hear from you soon!

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The Importance of a Balance Sheet

An individual has two primary tools for managing personal finances. The Personal Balance Sheet is ignored and the Budget is the darling of Financial Consultants and the media. The key to understanding personal finances is that you have to understand your Budget and Balance Sheet individually and also how they work in combination to give you a complete snapshot of your personal finances.

Your balance sheet is extremely important because it shows you where the gold is. It is your personal Fort Knox. It is also extremely important because you need to have a stash of gold in your personal financial picture. The gold in your Balance Sheet is not the Assets. They are the positive side of your Balance Sheet but the real picture of how much gold you have in your Fort Knox is your Net Worth. So just as important to your Balance sheet is your Liabilities. The total of your Liabilities is subtracted from the total of your Assets to give you your Net Worth.

You fill out your Balance Sheet and total up your Assets and Liabilities. You subtract the total of your Liabilities from your Assets. That number, your Net Worth will come out to either a negative amount, an amount of or near zero, or it will be substantially positive. These are the only 3 scenarios possible.

• If your net worth is a minus number, you are not managing your financial resources properly. Your Balance sheet is your report card and you are failing. It is that simple. If you are managing your money to deal with life's challenges and planning your personal finances with your retirement in mind, your Net Worth should be positive and growing. If your net Worth is positive, you can ride out financial storms like the current situation. At the time of your retirement, your Net Worth must be substantially positive so that you will be able to keep costs down and have investment income to replace your working income. During your working years, your Net Worth should be growing steadily because a retirement nest egg does not grow without years of nurturing.

• There are circumstances where where it is acceptable to have a Net Worth of Zero or near Zero. The first is when you are just starting out. It just makes sense that it would be zero. You may have student loans but that is offset by some form of education that will allow you to make more money in the course of your lifetime. The key is that this is the best time to start building your net worth. It allows the principal of compounding value to work its magic on your assets for decades. That saves you a lot of work later in life. However, most of us are not that wise and we find ourselves in our 30s and 40s with little or no Net Worth. This means you have less time for compounding to work. So you have to work harder and especially manage your money smarter to prepare for the financial challenges you face going forward. The nice thing is that you have probably made some mistakes that have made you much wiser. You should be able to recover much faster than you would have in your undisciplined youth.

• If you have a positive net worth that means that you are building assets. Just as important is that you are controlling your debt. This is the key that has probably gotten you to this situation. The key to a positive Balance Sheet is that debt offsets the value of your assets when you look at your personal finances as a complete picture so your debt / equity ratio should be less than one and get smaller and smaller. Debt servicing saps cash flow on your budget that could have been used to build assets that can be used to produce income in your retirement years. Clear title ownership of assets such as your home reduce cash draw and this is incredibly important as you approach retirement.

The financial crisis we are in now is described as a Balance Sheet crisis. We are in this crisis because nobody was paying attention to their Balance Sheets, not even at the rising heights of our financial infrastructure. The symptoms were everywhere. While researching I found that the top sites on the internet for Balance Sheet are those who want to sell you something so that they can gain access to any assets on your balance sheet that might be left after this disaster. Before the disaster, the only thing that had any importance was whether a potential buyer of anything could afford to make the payments on whatever he was buying assuming he made 120% of his declared income. The most outrageous symptom was that people would take appreciating home equity and borrow against it to buy depreciating assets and consumer goods. They overbooked their budgets and now they have gutted their balance sheet.

The resulting loss of home values ​​is the disaster we have now where people have either a zero or minus Net Worth. The other aspect is that we are now wiser. For the good of our society and our financial infrastructure we had better be. Going forward we must pay attention to our Balance Sheets and recognize that is where the gold is. You must save and protect your gold. Net Worth is where financial power is and that is the Importance of a Balance Sheet.

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Four Unconventional Ways to Land a $5K Loan With Bad Credit

A lot of folks got lifted high during the early part of the 21st Century. Times were good and promised to be so for a long time. Fearless about future debt, many consumers over-extended themselves. The economy fell flat thanks in part to this vast over-extension and the banking and mortgage industry that fed off of it.

As a result, loans came due with no cash flow to pay them. Foreclosures became normal. Credit card companies felt the pinch as members defaulted. Credit ratings suffered greatly. Presently, those folks have no recourse to any venues that could offer them any financial relief. A minimal $5,000 bad credit loan is unreachable.

People in this situation do have some options that they should consider while they try to rebuild their financial lives as well as their financial credibility. These options are perhaps not those that they would normally consider, but the times are not normal.

One: Familiar Loans

In one way this is the best scenario to get a much needed cash injection. In another, it could be the worst. Embarrassment is probably the biggest bar to approaching friends or family members for cash to get you through tough times. On the other hand, the terms for repayment can be quite flexible and interest rates can be low or nonexistent. Certainly, a loan such as this does not require a credit check. It would be wise and friendly to draw up a contract so each party knows what is expected.

Two: Salary Potentialities

Should a person in need of cash be to uncomfortable approaching family or friends, they might look to the workplace. Some progressive companies have opportunities for employees who have hit on hard times. A credit union may serve the company and it may be very happy to extend a loan at low interest rates and easy payback terms. If there is no credit union, sometimes an employer can be approached for a loan that can be deducted directly from future paychecks. Sometimes this sort of loan is available to promote loyalty and productivity.

Three: Non-Traditional Bad Credit Loans

Should the previous venues turn up dry, unsecured personal loans are available, either locally or via online lenders. Traditional lenders such as banks are not going to be forthcoming with any help for borrowers with poor credit. Online lenders do not consider credit scores and are usually eager to grant unsecured loans in the range of $500 to $10,000. The requirements are few; having steady employment and a bank account are often enough. The application process is easy and you can usually have cash in your account within 24 hours.

Four: Neighborhood Pawnshops

Do not cringe. For centuries shops such as this have been able to offer affordable loans to people in the community who find themselves a little shy of cash from time to time. Your loan will require security in the form of personal property offered as collateral that is equal to the worth of the loan. You will sign a document acknowledging your obligation. If you do not return to redeem the collateral, the shop is allowed to sell it to cover the loan.

No matter what sort of credit history you may have, you should be able to put your hands on some cash using the outlets described above. Just be sure you do not allow yourself to become a victim to any sort of fraud. Just be sure any money you do get is used responsibly and paid back according to the terms of any agreements.

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Important Issues For Green Card Holders to Remember and Consider When Traveling

Clients who are Green Card holders (ie permanent residents) frequently ask me about issues that need to be aware of when traveling internationally, outside of the United States.

Here are some things to consider to minimize the potential for problems at the border. After a long intercontinental flight, nobody wants to find themselves in a position of being subjected to lengthy questioning by CBP officers at the airport. Particularly in situations where the Green Card holder has spent significant time (more than 6 months, typically) outside the US, there are potential pitfalls one needs to be aware of – or risk risk losing the highly-prized Green Card. CBP, interestingly enough, in its operations manual, has some good guidance on what immigration inspectors are to consider when inspecting Green Card residents seeking re-admission into the US

Admission, generally The CBP officer shall admit a resident alien returning to an unrelinquished domicile, if not otherwise inadmissible, upon presentation of an unexpired Green Card (I-551), a reentry permit, refugee travel document (indicating lawful permanent residence), or Temporary evidence of LPR status such as an Travel Statmp (or ADIT stamp).

A returning resident alien is not required to present a valid passport for reentry into the US, although most will have one, since a passport is often required for entry into a foreign country. When presented, the passport is normally annotated with "ARC", and the alien's "A" number should be written on the page with the admission stamp.

Admission after prolonged absences A Green Card holder, who has been outside the United States for more than one year (two, if presenting a reentry permit), may be seen by CBP to possibly have abandoned residence. Other indicators of possible abandonment of residence are:

(1) employment abroad,

(2) having immediate family members who are not permanent residents,

(3) arrival on a charter flight where most passengers are non-residents with return passage,

(4) lack of a fixed address in the US, Egypt

(5) frequent prolonged absences from the United States.

In questionable cases, it is appropriate for CBP to ask for other documentation to substantiate residence, such as driver's licenses and employer identification cards.

Green Card holder without Green Card? Lawful permanent residents (LPR) lacking evidence of alien registration because it has been left at home or in a safety deposit box, may obtain from CBP a visa waiver, with fee, or defer the inspection to another CBP office local to the Resident's home in The US

If the LPR claims the card has been lost or stolen, the POE may accept a Form I-90, Application to Replace Permanent Resident Card, with fee. These actions may be considered once the identity of the LPR has been confirmed, preferably by checking against the data contained in the CBP computer systems.

A LPR requesting a visa waiver must complete a Form I-193, Application for Waiver of Visa or Passport, if otherwise admissible. The applicant requesting the waiver is to review the information recorded on the printed form for accuracy and sign where indicated. If the waiver is approved, the LPR is to be given a copy of the Form I-193 and be acknowledged as a returning resident. If a waiver is denied, the applicant may be placed in removal proceedings before an immigration judge.

CBP officers can also use something called "deferred inspection". This is usually limited to a Green Card or Visa holder who:

O will be able to produce the requisite document within a few days; Egypt,

O claims to have lost or had the Form I-551 stolen, is unable to pay the Form I-90 fee at the time of initial inspection and has not been previously deferred for presentation of the Form I-551 document.

The LPR will be required to file a Form I-90 with US Citizenship and Immigration Services (USCIS) within the next 30 days.

Conditional Residents A conditional resident is generally admissible to the US if applying before the second anniversary of admission for conditional residence. The conditional resident may also be admissible if he or she has a lettering letter (or "transport letter") from a US Consulate, has been stationed abroad under government orders, or is the spouse or child of a person stationed abroad under government orders. Otherwise, the applicant for admission as a conditional resident must have filed a joint petition or an application for waiver, Form I-751 (marriage-based cases) or Form I-829 (investment-based cases), in the US within the 90 Days before the second anniversary but not more than 6 months prior to the application for entry.

Once I-751 has been filed, the applicant will receive a receipt notice (I-797 Notice of Action) from USCIS, extending the conditional residency status for another year, allowing travel.

If none of those conditions exist, the inspector may defer the applicant to file Form I-751 or I-829 if there is a reason to believe the service will approve a petition or waiver. If the applicant is not admissible, CBP has authority to place him or her in removal proceedings.

Question of "Meaningful Departure" When examining a Green Card holder who has spent significant time abroad (usually more than six months), when there is a question as to whether the LPR may have abandoned his / her US residence, the CBP inspector has to Evaluate the situation and make a determination as to the LPR's intent and the nature and reason for the prolonged absence from the United States. Prior to 1997, if a lawful permanent resident was believed to be inadmissible, immigration inspectors had to first make a determination which his / her absence was "meaningfully interruptive" of permanent residence. Later revisions to immigration laws have formalized a 'test' for immigration inspectors to apply in this situation. Under this test, a lawful permanent resident is NOT considered to be seeking admission, unless the alien:

O has abandoned or relinquished that status;

O has been absent continuously for more than 180 days;

O has engaged in illegal activity after departing the US;

O has departed under legal process seeking removal;

O has committed certain criminal offsets;

O is attempting entry without inspection; Egypt

O has entered the US without authorization by an immigration officer.

If CBP believes an LPR may be inadmissible or no longer entailed to lawful permanent resident status, CBP should refer the alien for removal proceedings if a deferred inspection is not appropriate.

Special Rules for Dependents of US Service Members Spouses and children of US Armed Forces servicemembers, or civil employees of the US Government, are exempt from many normal requirements for returning residents. If a dependent is a temporary resident, and the period of conditional residence has expired, CBP should admit the person and advise to file Form I-751 within 90 days.

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Parasailing Sites in the Philippines

The Philippines, which is known for its thrilling tourist attractions and colorful festivals, is slowly making a name for itself as a paradise for water sports enthusiasts. An emerging water recreational activity in the country is parasailing. With its rich water resources, the Philippines is an ideal place for this high-flying adventure.

Currently available in posh resorts in the Bahamas, Hawaii, Guam, and Australia, parasailing is steadily gaining more following in the Philippines due to its inclusion to various vacation packages by offered resort and vacation rental operators across the country.

Parasailing, which is also known as parascending, allows an individual to stay in the air for several minutes while strapped in nylon harnesses. A boat usually carries the parascender into the air. The sport appears difficult but experts insist that parasailing does not need any special skill other than sheer courage. Enjoying the high-adrenaline experience is one of the common tips shared by experts to beginners.

Here is a guide on where to find the best parasailing sites across Luzon, Visayas, and Mindanao.

Mactan Island

Situated on the southeast of Cebu, Mactan is one of the leading parasailing destinations in the country. Most accommodations in the island entice tourists with their various water recreation facilities where you can go parasailing, jet skiing, scuba diving, and sailboating. While in the air, the parascender gets a fascinating view of the islands of Bohol, Sta. Rosa, Olango, and Cebu. Pristine beaches and rich marine resources have placed Mactan on the Philippine travel map.

Boracay Island

Parasailing adventures also await holidaymakers in Boracay, which is famous for its white sand beaches. A brave soul is treated with a bird's-eye-view of the whole island. While most resorts in Boracay arrange parasailing activities for their clients, tourists can also hire the services of hawkers who offer much lower prices. A 15-minute parasailing escapade in Boracay usually costs between Php 1,500 and Php 2,500. Parasailing allows tourists to get their energy flowing in enjoying various events and activities in Boracay.

Subic Bay

Another favorite parasailing site in the Philippines is the Subic Bay in Zambales. Since it is just a couple of hours away from Manila, most water adventurers in the metro quench their thirst for parasailing and other recreational activities in Subic. Parasailers get an unforgettable view of the Subic Bay and Grande Island. Other water activities in Subic include scuba and wreck diving, yachting, and kayaking.

Coron Island

The island paradise of Palawan has everything for every tourist, including parasailing. In Coron, a famous travel getaway in the province, one can enjoy a view of the island around 400 feet above the water. The island, which is also famous for its pleasant rock formations, is considered the best wreck diving site in the Philippines. Wreck dive sites are found in a depth as shallow as ten to 30 feet and as deep as 120 to 140 feet.

Local Philippines is your travel buddy. We have information about the destinies, how to get there, what to do while in the area and more! Destinations in the beaches or in the mountains, destinations under water, destinations right at the middle of the urban hub, name it and Local Philippines will most likely feature it.

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The Fireman’s Rule – Law Prevents Firefighter From Suing For Injuries Received While Fighting Fire!

When I first heard the term, "The Fireman's Rule," I thought that I had obviously stumbled upon a rule of law that would be of benefit to firefighters through the country. What I learned after a couple of hours of research was that this rule of law was of no benefit to firefighters, but instead served to benefit the property owner / occupant who Negligent acts or omissions may have been the primary cause of injuries to a firefighter while Fighting a fire. In fact, the Fireman's Rule operates to bar a fireman from suing a property owner / occupant when the acts or omissions of the property owner / occupant caused or contributed to injuries the firefighter received while fighting a fire on the concessions of the owner / occupant.

The fireman's rule is a common law, and in some states statutory, based on a judiciously recognized public policy that encourages people to freely call the fire department for help without concern if they will be held liable to the firemen for injuries that are beyond their ability To control. In other words, the courts believe that a person should be able to call for help when their kitchen is on fire without worrying if a fireman will sue them if he is bitten by the family dog. The courts have held that these risks go along with the job.

In order to understand what the fireman's rule is and is not and how it operates, it is necessary to take a brief look at what the courts have been saying when deciding such cases. In one case, Whittenv v. Miami-Dade Water & Sewer Authority (Fla. 1978), the Florida Supreme Court explained the duty owed to a firefighter by the owner / occupant of the concessions which is the subject of the emergency. The Court ruled that a fireman has the legal status of a licensee, and as a licensee the only duty owed to a fireman was a duty not engaged in conduct that is considered to be either wanton (deliberate, without regard) or willful and / or To warn the fireman of any dangerous defect that is not open to the regular observation by a fireman.

As a basis for the fireman's rule, the Florida Supreme Court explained in Kilpatrick v. Sklar (Fla. 1989) that the fireman's rule is based on public policy. It purpose is to permit individuals who require fire department assistance to call for help without stopping to consider whether or not they will be held liable for any injuries to a firefighter which, in most cases, are beyond their control. In the Kilpatrick case the Court observed that firemen (and policemen) usually enter buildings and structures at unforeseeable times and under extreme emergency circumstances where most people do not have the time nor opportunity to prepare the concessions for their visit. And there should not be held responsible for any injuries that occur to the firefighters as a result.

Lastly, in Lanza v. Polanin 581 So.2d 130 (Fla. 1991) (cites other cases used in article) the Court noted that a firefighter who enters a house or dwelling does so without any guarantee that he will not find a bulldog waiting to bite him. These are dangers inherent in the job and caution should be exercised by the fireman since he is a trained professional. Again the Court emphasized that the policy behind the fireman's rule is to encourage people to call the fire department when needed by limiting the circumstances under which a person may be liable to the firefighter for injuries he may receive responding to and while fighting the fire, or Otherwise handling the emergency.

To summarize, the fireman's rule is a rule of law based on public policy which protects the owner / occupier of property from lawsuits by Firefighters for injuries which receive while on the promotions fighting a fire or handling an emergency. In other words, if you the firefighter are injured while fighting a fire, and you can prove that those injuries were caused by the negligent acts or omissions of the property owner / occupant, you will most likely be barred from recovery unless you can show that Such conduct that led to the injuries was willful or wanton or that the owner / occupant failed to warn of a danger known to exist. All of which is near impossible considering the unlimited variables present in a fire or other emergency. The fireman's rule is no friend of the fireman.

Michael Hendrich, JD FirehouseToday.com

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Land Trusts in California

In California, general trust law is found in the Probate Code §§15000-19403. There is no specific land trust statute in California, unlike Illinois land trust law, (765 ILCS 405/410/415/420), Massachusetts business trust (MBT) law (M.G.L.c.182, §2), and Virginia land trust law (Va. Code Sec. 55-17.1).

So, land trusts created in California for California property are based on general trust law in the aforesaid California Probate Code. But an out-of-state land trust may be formed that would hold title through the trustee of a California property, to take advantage of more beneficial statute and case law of another state. Indeed, the Virginia Supreme Court in Air Power, Inc v. Thompson, 244 Va. 534, 422 S.E. 2nd 786 (1992), has confirmed that Va. Code Sec. 55-17.1 gives the trustee of a land trust both legal and equitable power of the real property, which protects the privacy of the beneficiaries.

Indeed, since California does not have a specific land trust statute, there is no legislative history nor developed case law on it in this state, only California general trust law and case law. But a general trust law may have some advantages over a specific land trust statute with more requirements. Indeed, Illinois land trust statute (75 ILCS 435) requires that holders of power of direction owe fiduciary duties to holders of beneficial interests. California general trust law does not have a similar requirement.

In any event, the avoidance of probate over a real property in a land trust trumps all difficulties in its creation.

I. California General Trust Law:

A. Creation Of Trust:

California Probate § 15000 states that “(t)his division (Division 9 of the Probate Code) shall be known and may be cited as the Trust Law.” And § 15001(a) states that “(e)xcept as otherwise provided by statute: This division applies to all trusts regardless of whether that were created before, on, or after July 1, 1987.”

Among other methods of creating trust, a trust may be created by: “(b) (a) transfer of property by the owner during the owner’s lifetime to another person as trustee,” under § 15200(b) of the California Probate Code. And “a trust is created only if there is trust property,” under § 15202 thereof.

“A trust may be created for any purpose that is not illegal or against public policy,” under § 15203 thereof. A land trust is not for an illegal purpose, nor is it against public policy in California, although it is not widely used in this state.

And “a trust, other than a charitable trust, is created only if there is a beneficiary,” under § 15205 thereof.

B. Trust Of Real Property And Personal Property:

So as not to violate the Statute of Frauds, which requires a written instrument to be enforceable, §15206 states that “a trust is relation to real property is not valid unless evidenced by one of the following methods: (b) By a written instrument conveying the trust properly signed by the settlor, or by the settlor’s agent if authorized in writing to do so.”

And under § 15207 (a) thereof, “(t)he existence and terms of an oral trust of personal property may be established only by clear and convincing evidence.” Under § 1528 thereof, “consideration is not required to create a trust….”

Lastly, “a trust created pursuant to this chapter (1, part 2, Division 9 of the Probate Code) which relates to real property may be recorded in the office of the county recorder in the county where all or a portion of the real property is located,” under § 15210 thereof.

II. Mechanics Of A Land Trust:

A. Advantages And Benefits:

(1.) Privacy:

One of the much-heralded advantages of a land trust is that a grant deed-in-trust of a trust property in the name of a different trustee (private or institutional) may be recorded with the County Recorder, but the land trust agreement that states the names of the truster/settlor/investor and the beneficiaries is not recorded.

Thus, the creator/grantor of the land trust: the trustor/settlor who invests in real property can keep his/her/its name, as well as the names of the beneficiaries out of the County Recorder’s and County Assessor’s books, and to a certain extent hide the investment from public view.

But a judgment creditor of a trustor/settlor or of a beneficiary can subject the latter to answer written interrogatories on his/her/its assets, or to debtor’s examination under oath in court to determine assets, and not merely rely on County Recorder and Assessor asset searches.

The land trust agreement may also use a name for the land trust different from the name of the trustor/settlor who created it. This is another asset protection benefit. And if the beneficiary thereof is also the same trustor/settlor, the latter may designate his/her living trust or wholly-owned limited liability company as the beneficiary to hopefully avoid gift tax issues.

(2.) Avoidance Of Probate:

Moreover, just like successor trustees may be designated in the land trust agreement, successor beneficiaries may also be selected to avoid disruptions in distribution of trust assets at termination of the trust, outside of probate proceedings.

A land trust may be created as revocable (terms of the agreement may be changed) or irrevocable (cannot be changed), but the latter requires the filing of separate tax returns and is taxed at a higher rate than the trustor/settlor’s individual tax rate, unless considered a simple trust in which all incomes created are taxed to beneficiaries. For federal income tax implications, if the grantor/trustor is also the beneficiary, the Internal Revenue Service (IRS) classifies it as a grantor trust that has tax consequences that flow directly to the trustor’s Form 1040 and state return.

(B.)Disadvantages And Pitfalls:

(1.) Separtate Agreement For Each Property:

In order to preserve the privacy of the investment or transaction and the asset protection benefits of the land trust, only one real estate property can be listed as held in it. Thus, a different land trust agreement is created for each property. This could be cumbersome, although the same trustor/settlor, trustee, and beneficiary can be named in each agreement.

(a) Simpler Alternatives:

Simpler alternatives are to purchase investment or rental properties through a limited partnership (LP) or a limited liability company (LLC), or transfer such properties to a more flexible living trust that does not require the filing of separate tax returns, or transfer the ownership interests of an LLC (not title of the property) to a living trust.

An LLC may also create a land trust by conveying title of a property to the trustee, and designate itself (LLC) as the beneficiary for privacy of ownership. Sometimes less is more; for indeed, creditors can see through and have recourse against avoidance of execution of judgment on properties through asset protection schemes. And transfers of ownerships of properties may result in tax assessments.

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The Nuts and Bolts of Auto Law in Pennsylvania

AUTO ACCIDENT BASICS – WHO PAYS WHAT IN PENNSYLVANIA?

Navigating the insurance world after an auto accident can be very confusing. There are many questions revolving around who pays for injuries, medical bills and property damage. Understanding the nuts and bolts of auto accident law, ahead of time, can save considered time and effort.

BODILY INJURY LIABILITY

A. How Much?

Under Pennsylvania law, Pennsylvania car owners must carry at least $ 15,000 of bodily injury liability coverage to pay for personal injuries to another driver, in the event of an accident. Drivers can elect higher amounts.

B. Who Pays?

Bodily injury coverage is based on fault and is available to the other driver in an auto accident. For example, Driver A causes an accident with Driver B, causing serious personal injuries to Driver B. Driver A's auto policy includes the state minimum- $ 15,000 of bodily injury liability coverage. Driver B can make a claim under Driver A's auto policy, for personal injuries, up to the $ 15,000 limit. However, Driver B may be limited in what he can recover, depending on whether he selected Full Tort or Limited Tort in his own auto policy.

C. How it Works?

In some instances, an injured driver can make a claim for bodily injury liability coverage against the other driver's insurance company without having to file a lawsuit. However, if that insurance company fails to offer fair and reasonable compensation, the injured driver may have to file a lawsuit against the other driver.

PROPERTY DAMAGE

A. How Much?

Under Pennsylvania law, Pennsylvania car owners must carry at least $ 5,000 of property damage coverage to pay for property damage to another driver, in the event of an accident. Drivers can elect higher amounts.

B. Who Pays?

This type of coverage is frequently misunderstood. It is not available to an insured driver, under its own policy. Rather, it is available to the other driver in an accident, and is based upon fault. In our example, Driver A causes an accident with Driver B. Driver B's car is totaled. Driver A has $ 10,000 of property damage coverage. Driver B can make a claim under Driver A's auto policy for the fair market value of the total car, up to $ 10,000. In this same example, let's assume Driver A's auto was damaged. Driver A can not make a property damage claim under his own policy. Again, property damage coverage is only available to the other driver and is based on fault.

C. Collision and Comprehensive Coverage

Collision and comprehensive coverage are optional and cover different types of auto damage. Collision covers any damage caused by an auto accident less a deductible. Comprehensive coverage covers any non-accident damage, such as fire, theft, etc., less a deductible. A driver who has purchased these types of coverage can make a claim under their own auto policy. Using the same example, Driver A-who caused the accident, can make a claim for repair to his auto, if and only if he has collision coverage. If Driver A did not purchase collision coverage, he would be responsible for the repairs.

D. How it Works

If an innocent driver's auto is damaged in an accident caused by another driver, a property damage claim can be made directly to the other driver's auto insurance company. So long as the accident is clearly the other driver's fault, this is usually the easiest way to make a property damage claim. If the innocent driver has collision coverage under his own auto policy, then a property damage claim can be made with his own auto insurance company. However, the deductible would have been subtracted from the total amount recovered. Then, because the accident was the other driver's fault, the innocent driver's own auto insurance company should obtain the deductible from the other driver's auto insurance company. That deductible should eventually make its way back to the innocent driver.

Again, using our example, Driver A is at fault for an accident with Driver B. Driver B has a collision coverage with a standard $ 500 deductible. Driver B has a choice to make a claim with Driver A's insurance company or his own insurance company. If he makes the claim with his own insurance company, he would receive the fair market value of his total auto less the $ 500 deductible. His insurance company would then seek reimbursements from Driver A's auto insurance company for the fair market value and the deductible. At some point, Driver B should receive the $ 500 deductible back from his own insurance company-because the accident was Driver A's fault.

A property damage claim is usually made without having to resort to a lawsuit. Incidentals such as rental car costs and towing / storage, are immediately compensable if the innocent driver has purchased such coverage under his own policy. Otherwise, they will become out of pocket expenses in a consequent personal injury lawsuit against the other driver.

MEDICAL BENEFITS

A. How Much?

Under Pennsylvania law, Pennsylvania car owners must carry at least $ 5,000 of medical coverage to pay for medical bills incurred in an auto accident. Drivers can elect higher amounts up to $ 1,000,000.

B. Who Pays?

Many states including Pennsylvania are "No Fault" -meaning that regardless of which fault the accident was, a driver can make a medical benefits claim under their own auto insurance policy, up to the amount of medical benefit coverage purchased.

Using our example, Driver A causes an accident with Driver B. Both drivers have insurance policies with medical benefits coverage. Let's assume that Driver A has $ 10,000 of medical benefits coverage and Driver B has the state minimum- $ 5,000. If both drivers are injured and require medical treatment, they would both make a claim under their respective policies. In this example, Driver A could make a claim for medical benefits up to $ 10,000 and Driver B could make a claim for medical benefits up to $ 5,000.
Also, the medical benefits coverage amount is per person, per accident. In other words, if a father and his minor son are injured in an accident, and the father has an auto policy with $ 5,000 medical benefits coverage, then both can receive up to $ 5,000 of that coverage. If the father or son gets into a consequent accident, they would again be eligible for $ 5,000 of the same coverage.

C. How it Works

When making a claim for medical benefits, a driver may go to a doctor / provider of their choosing and should provide their auto policy claim number and auto insurance information. Under Pennsylvania law, once a driver provides this information to a medical provider, that medical provider is required to bill the auto insurance and can not bill the driver directly. Once the auto insurance company receives bills from the medical providers, the amounts of the bills will be reduced in accordance with Act 6-an Amendment to Pennsylvania motor vehicle law made in 1990. Act 6 limits the amount that medical providers can recover for accident related Medical bills. At some point, the amount of medical benefits under an auto policy may become exhausted and then the driver would use their own medical / health insurance to cover any remaining bills.

D. Priority of Coverage

When a person is injured in an accident, there can be more than one source of medical benefits. Under Pennsylvania law, there is an order of coverage, known as "priority of coverage". The first level is an auto policy in which the injured person is a "named insured" – that generally means an auto policy purchased by the injured person. The second level is an auto policy in which the injured person is "insured". This generally refers to an auto policy purchased by the injured person's spouse, parent or relative residing in the same household.

The third level applies when the injured person does not own an auto policy and is not covered as an insured under any auto policy. This third level is an auto policy covering the auto that the injured person was riding in when the accident occurred. Finally, the fourth level applies to injured persons who are pedestrians or bicyclists. This fourth level is any auto policy involved in the accident. In some situations, more than one policy may apply-and the first auto insurance policy to get billed will be liable up to the applicable medical benefits amount. That insurance company can then, seek reimbursements from the other insurance company. Also, if a person is injured in an auto accident during their employment, workers' compensation coverage is the primary source of medical benefits coverage.

F. Persons Who Do Not Qualify for Medical Benefits

Under Pennsylvania law, certain classes of drivers do not qualify for medical benefits, even though they have purchased auto policies. They include motorcycle drivers, snowmobile, motorized bike, and four wheeler operators. Also, the owner of a registered auto who fails to purchase auto insurance can not make a claim for medical benefits. For example, a person may own a registered car, but then fails to obtain insurance for it. If that person becomes injured while a passenger in a friend's car, they can not make a claim for medical benefits under the friend's auto policy. These classes of drivers must use their own medical / health insurance to pay for any medical bills incurred as a result of an accident.

For more information visit http://www.thepanjinjurylawyers.com/practice_areas/new-jersey-car-accident-attorney-pennsylvania-truck-wreck-lawyer.cfm

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The “Contents Pack-out” Trap and How to Escape It

“Contents Pack-out” is a term used by water and fire restoration contractors, and insurance companies. It is the process in which the contractor sends trucks, boxes and workers to your home. They pack up all of the damaged personal property in your home or business and transport it back to their warehouse. Once the personal property is at the warehouse, the contractor begins the cleaning and restoration process.

Insurance companies do not like to replace personal property. They would rather clean or repair it and give it back to you. That drastically slashes their claims cost, which makes them happy.

I’ve been an insurance adjuster for over 16 years, and in the insurance business for over 35 years. I’ve seen very few instances where seriously damaged personal property can be just cleaned or repaired successfully. Most fires burn or infuse toxic chemicals into personal property, like wood or textiles. Same goes for a flood loss. My personal opinion is that replacement of damaged personal property is better than repair or cleaning.

So, what is the trap?

Insurance adjusters like to swoop in with their favorite approved restoration contractor and do a “pack-out.” But your insurance policy has a limit on Personal Property. All of the money that the insurance adjuster authorizes to have your contents cleaned is paid against the policy limit. So, if the restoration contractor cleans a bunch of your damaged property, but you reject it as damaged, the contractor still gets paid. But you have less money now to replace your damaged personal property.

The trap is that a pack-out can penalize you when you are submitting your insurance claim!

Here’s the Escape Strategy

1. You own the personal property…not the insurance company and not the restoration contractor. It is YOUR DECISION what gets repaired and what gets replaced, not the adjuster.

2. Call in your own restoration contractor for a second opinion. It shouldn’t cost you anything, but even if it did, it would be money well spent.

3. Make sure every single item that gets removed from your home is listed on an inventory sheet.

4. Based upon your contractor’s opinion, negotiate the replacements with the adjuster and settle the claim.

If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed below.

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The Relationship Between Insurance and Finance

Insurance and finance are closely interwoven fields of business, not least because they both involve money. They also often both involve speculation and risk, and often where one goes, the other will follow. Take property investment for example, it involves a large amount of capital out lay, swiftly followed by insurance to protect the capital investment. It would be ridiculous to spend such a vast sum of money on a venture and not protect it against possible damage. It therefore makes sense to store information on these two subjects together, as the relationship is so logical.

Insurance is a form of risk management used to protect the insured against the risk of a loss. It is defined as the equitable transfer of the risk of a loss from one entity to another in exchange for a premium. There are different kinds of insurance for just about every conceivable event. The most common insurance is probably life insurance, which provides a monetary benefit to a decedent’s family or other designated beneficiary.

It can cover funeral or burial costs and can be paid out to the beneficiary in either a lump sum or as an annuity. Property insurance is one of the more necessary insurances as property is extremely expensive and if it is lost or damaged for some reason (fire, earthquake, flood) it can be very difficult to replace without adequate reimbursement. Travel insurance used to be seen as an unnecessary expense and is still viewed as such by many. Its importance is, however, being increasingly recognised by the public at large. It is cover taken by those who travel abroad and covers certain unforeseen events such as medical expenses, loss of personal belongings, travel delays etc. There are numerous other types of insurance, too many to mention, all vital if you want to protect something of particular importance to you or another.

In the world of finance there are many sub-categories, also too numerous to mention but a few will be included here. Forex, or the foreign exchange market wherever one currency is traded for another. It includes trading between banks, speculators, institutions, corporations, governments, and other financial markets. The average daily trade in the global forex is over US$ 3 trillion.

Tax consulting usually involves CPAs and tax lawyers in addressing any tax issues that you may have. There may also be Professional Strategic Tax Planners and Enrolled Agents, depending on the company that you hire. They will help you reduce your tax debt, eliminate tax penalties, an innocent spouse claim, tax liens, bank levies, and preparing unfilled tax returns, as well as any other tax resolution problem that you might have.

Property investment is usually when an investor buys property with an eye to generate profit and not to occupy it. It is an asset that has been purchased and held for future appreciation, income or portfolio purposes. In some instances an investment property does not have to be held for profit, as some landlords in New York lease office buildings to non-profit organisations for tax purposes. Homeowners consider their homes to be investments but they aren’t classified as investment properties. Perhaps if you’re buying your second or third home, it can be considered an investment property, especially if you plan to rent it out to help pay off the home loan.

Business networking is a marketing method, which is as old as business itself. It’s been around since ever since people learned to hold a glass of whiskey and schmooze. In fact, its probably been around a lot longer, Cro-Magnon man probably gathered around the newly discovered fire and showed each other their collection of animal teeth and traded them. Creating networks of crocodile teeth owners and sabre toothed tiger owners, who tried a take over bid against the sabre toothed leopard owners. Business networking is designed to create business opportunities through social networks. It helps if the people involved are of the same frame of mind.

These days a very handy way of business networking is via the Internet on the various social media available. But it must be said that very little can beat the intimacy and trust created by face-to-face relationships. Also, where would our businessmen be without their whiskeys and weekly schmooze?

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