The Mutual Monitor SUMMER 2018 EDITION VOL. 35, NO 2

Transcription

1 The Mutual Monitor SUMMER 2018 EDITION VOL. 35, NO 2 Manager s Memo In early June, I accompanied a group of insurance people from Minnesota on our annual trip to Washington, DC to meet with the Minnesota Congressional and Senate contingent. We go at the request of our national trade Association, the National Association of Mutual Insurance Companies, NAMIC. Each year we address various topics that may have an impact on our business, some years the impact is greater than others. This year there were two topics that may not have a large impact on our local companies, but they are interesting: Unmanned Aerial Vehicles (drones) and Autonomous Vehicles (driverless cars). I will tackle drones first. In the farming community, drones are being used every day. A drone can be used to fly over fields and do inspections for insects, weeds, general crop conditions and numerous other activities. Depending on who is the driver of the drone, this may be a commercial application or it may be personal/private. They each have different rules. If you go to the local Radio Shack and purchase a small drone, there are rules of usage and registration but not to the extent of a commercial usage drone. Drones are also used extensively in the insurance world. They are used to inspect roofs of tall homes and buildings. It is much safer than sending a person up in many cases. Also, in the event of catastrophes tornadoes, hurricanes, etc. a drone can fly to a set of GPS coordinates and show exactly has happened to a specific home or business. In some instances, there may be nothing left of the property and from the street it is nearly impossible to find. One of the topics we spent a lot of time with our representatives on is the rule of what is your private airspace around your property. Prior to airplanes, a landowner controlled the air from the ground to infinity above your property. As airplanes and specifically commercial airlines became more prevalent, the rules changed to allow airplanes to fly over your property without permission, within reason. The ceiling was lowered to 400 feet. It was a sensible change. Imagine if Delta Airlines had to get permission to fly over all the homes between Minneapolis and Denver. Small, private airplanes have rules regarding how high they need to be to avoid barnstorming. Setting the ceiling also establishes the boundaries. Over 400 feet is subject to Federal Aviation Administration (FAA) regulation, under it, it is private property. Recently, the FAA ruled that the airspace from the ground up is under their control and therefore public. This brings up multiple problems. Here is an example we used: An individual is walking in their own yard and the neighbor is legally flying their drone 5 feet off the ground across the yard. The drone and the individual collide. The homeowner is injured, the drone is broken. Who is at fault? At first blush one would say the drone operator. However, he was in public airspace. Or could it be the homeowner, after all he damaged the drone didn t he? This is where the debate starts. There are still privacy rules you cannot operate a drone over the neighbors swimming pool or spy into the windows. But the issue of airspace is a problem. Self-driving cars, or driverless or autonomous vehicles, are another issue. It is the insurance industry s hope that they are involved in some of the discussions as rules are made. The auto insurance companies have more information in regard to accident cause than the people who are making the vehicles. Why not use this information to start out with a safer vehicle? Why wait for a number of people to be killed or injured before we start implementing safety features? The insurance industry started the push to seatbelt usage and airbags, not the auto manufacturers. And to finalize, if drones and driverless cars are not enough, there was recently an article that Uber is beginning development of a driverless, FLYING vehicle! Maybe we should perfect the driverless vehicle on the ground before we put it up in the air? As the rules are now, what happens when George Jetson arranges a ride in a driverless, flying automobile that flies over his neighbor s yard (public airspace) and collides with his neighbor? We may not be that far away. As always, thank you for your business, we appreciate it!! Mikel B Nelson, Manager FIRE EXTINGUISHER RECALL In November 2017, Kidde Fire Extinguisher Company announced the following: In conjunction with the U.S. Consumer Product Safety Commission (CPSC), Kidde announced a recall to replace certain Kidde fire extinguishers. The replacement program was initiated because certain fire extinguishers can become clogged or require excessive force to activate, posing a risk of failure to discharge. In addition, the nozzle can detach with enough force to pose an impact hazard. The product recall involves two styles of Kidde disposable fire extinguishers: plastic handle fire extinguishers and plastic push-button fire extinguishers. Kidde is a very large manufacturer of fire extinguishers with plastic handles and this recall is for more than 40 million fire extinguishers with some dating as far back as Please understand the Elmdale Mutual has never sold this product. Kidde Extinguishers are available at most larger box stores and discount stores. However, we are willing to help promote the recall in order to be sure that people are adequately protected. If you have a fire extinguisher made by Kidde, the company has a website where you can go to get information: htpps:// They also have a toll free number you can call: FIRE EXTINGUISHERS 10 pound extinguisher $ pound extinguisher $39.00 Heavy duty brackets $40.00/10# $20.00/5# Large tractors, combines, forage harvesters, etc. should have at least two 10 pound extinguishers. One should be inside the cab and one outside the cab. This is a minimum. Other implements such as big square balers, large round balers, etc. should have at least one 10 pound extinguisher. As they are generally hooked to a tractor, there should be extinguishers on the tractor also. Shops with welding equipment should have at least one 10 pound extinguisher and additional extinguishers should be used if there is wood burning in the building. Homes should have a minimum of one 10 pound extinguisher per floor. Additional extinguishers should be available if there is wood burning in the home and this includes fireplaces. These extinguishers are available from your agent or at the Elmdale Home Office. These are ABC extinguishers that are rechargeable and refillable. Please call INSPECTOR S FINDINGS One of the items that I seem to be finding with more regularity is extension cords. While extension cords have good TEMPORARY usages, they are not a substitute for hard-wired electrical outlets. We understand that wiring costs money. Most times, it is better to have it done correctly than to incur a deductible and a fire loss. If you do need to use extension cords for TEMPORARY power, be sure to use cords that are rated for the load you will be applying. Power tools should have gauge wire, heaters on tractors or skid steers should use gauge wire. Christmas tree cords should never be used for more than ONE lamp. And never for an extended period. INSPECTOR TO PAGE 2

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8 A Friend... Is someone who stands beside you- All the Time! Elmdale Farmers Mutual Insurance Incorporated Continuous Service Since 1898 ELMDALE MUTUAL BOARD OF DIRECTORS JAMES CZECK, PRESIDENT Two Rivers Township, Morrison County LOREN MILLER, VICE PRESIDENT Reynolds Township, Todd County MIKEL B. NELSON, SECRETARY Grey Eagle Township, Todd County DOUG MILLER, DIRECTOR Rockville Township, Stearns County SHARI FRUECHTE, DIRECTOR Darling Township, Morrison County JOSEPH OSTENDORF, DIRECTOR Birchdale Township, Todd County RANDY PEPIN, TREASURER Elmdale Township, Morrison County Elmdale Mutual Insurance Company has been standing beside farmers and homeowners in central Minnesota for more than 100 years with low rates, prompt, fair claim service and advice on your insurance needs. Now Elmdale Mutual has an "easy read" policy which lets you understand exactly what coverage you really have. Friendly, personalized service has been a part of Elmdale Mutual since To be in business that long, you have to do something right. Give your friends at Elmdale Mutual a call. PRSRT STD U. S. Postage PAID Upsala, MN Permit # 10 ALBANY North Risk Partners Apollo Division ALEXANDRIA Billmark s Lakes Area Insurance, Inc BRANDON Lakes Area Insurance BROOTEN Bohmer Agency, Inc LITTLE FALLS Bieganek Insurance Agency Kampa Gerbi and Associates LONG PRAIRIE MELROSE North Risk Partners Apollo Division MOTLEY-NEW YORK MILLS-VERNDALE Lake Country Insurance, Inc STARBUCK Minnewaska Insurance ST. CLOUD SWANVILLE Swanville Insurance Agency SWANVILLE-UPSALA FORT RIPLEY Nelson Insurance Agency and Financial Services, Inc ELMDALE MUTUAL INSURANCE CO. P O Box 250 Upsala MN FREEPORT North Risk Partners Commercial Exchange GLENWOOD Glenwood State Agency HOLDINGFORD RANDALL Randall State Insurance RICE Kampa Gerbi and Associates SAUK CENTRE WADENA North Risk Partners David Paulson P.O. BOX 250, UPSALA, MINNESOTA