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Peace Of Mind
Safeguarding the interests of you and your family
June 2007

Hello and welcome to our June Newsletter!

"There's no business like show business," or so they say...in this issue we share some insights into the insurance debacle behind Nicole Kidman's knees. An interesting story, to say the least! You'll find a ranking of metropolitan areas based on their per capita vehicle theft rate, and, the scoop on Allstate's halt to selling new homeowner policies in California. We headlined the story: "Are we really in "Good Hands?" So you know our stand!

And much more.

Thank you for your business. We look forward to continuing our relationship.

Best regards,

Steve Brooks

Nicole Kidman's Knee
Or, how the insurance business runs Hollywood.

Insurance is not a word usually associated with the power and glory of Hollywood-at least not to outsiders. To insiders, especially those involved in the behind-the-scenes decisions of who will be the stars and what movies will be made, it connotes a sine qua non reality of the entertainment universe. After all, once the media dressing is stripped away, what is the New Hollywood about other than minimizing risk? The stars are no exception to this rule. Sure, it may help a career to have talent, a well-connected agency, and a hot media image, but unless an actor can get insurance, he or she can't play a part in a major movie.

To begin with, movies that receive outside financing from banks or other sources-which nowadays are most movies-need a completion bond. This bond guarantees the financiers that they will be repaid the entire cost of the production (including script development, finance charges, and bank interest) if for any reason a movie loses one of its "essential elements." These elements, which often include the star and the director, are defined by the guarantor that sells the bond. In the case of Terminator 3, the producers bought a completion bond from International Film Guarantors for $2.54 million that named Arnold Schwarzenegger as an essential element. If Schwarzenegger had been disabled during shooting or had abandoned the film for any reason, IFG would have repaid the bonded cost, which was $181.6 million.

As it turned out, IFG won the bet and walked away with $2.54 million. Before a bond company will assume such a gigantic risk, however, it also requires the production to purchase cast insurance from another insurer, such as Fireman's Fund, AIG, or Berkshire Hathaway. These entities will reimburse the production if anything happens to the star. With Terminator 3, Fireman's Fund provided the cast insurance, bringing the entire insurance bill to $4.54 million. The completion bond company still has the risk that the production budget will spiral out of control-in which case it has the right to take over the production-but it transfers the risk of the star to the cast insurer.

Read on...
Are we really in "Good Hands?"
Allstate to halt sale of new homeowner policies in California

SACRAMENTO - Allstate has announced that it will stop selling new home insurance policies in California and would continue to seek a 12% rate increase for its 900,000 existing customers.

The state's third-biggest home insurer announced the cutoff Thursday, saying it needs to better manage the risk of potential losses related to wildfires and fires caused by earthquakes that might sweep the Golden State.

"Allstate is taking responsible action now so that the company will continue to be in a strong position to help protect customers in California and across the country," said Robert H. Barge III, the insurer's vice president for California.

In recent years, the Northbrook, Ill., company has stopped writing new policies in all or parts of 15 hurricane-prone states, covering most of the Gulf and Atlantic coasts.

The announcement delighted Allstate's competitors that foresaw picking up new business, but it infuriated consumer activists and some government officials who say the company's move was a cynical way to reap profit while avoiding risk.

In the event you are insuring your home with Allstate - or know someone who is, call us to discuss your best next steps.

Read on...

Read Official Allstate Press Release...
Look for the Sign of the Trusted Choice

Thousands of Trusted Choice® insurance agencies offer you a broad selection of insurance policies, companies and financial services, customization of coverages for home and business, and advocacy support. These firms are committed to providing excellent customer service. They also benefit from access to many leading insurance companies. We are proud to be a Trusted Choice® agency.

More Trusted Choice info...
A Lot of Stolen Fuzzy Dice
Vegas tops list of car theft hot spots

Las Vegas is a city of high-rollers, drive-thru wedding chapels, Elvis impersonators and, according to the National Insurance Crime Bureau (NICB), a whole lot of car thieves.

Las Vegas tops the 2006 Hot Spots ranking, the NICB's annual report on auto theft rates, for the first time, beating out the previous No. 1, Modesto, Calif., which fell to No. 5 after holding the top spot for three consecutive years.

The NICB study annually ranks metropolitan areas based on their per capita vehicle theft rate and as in 2005 it once again found the western United States ranks highest when it comes to car thefts. All 10 cities on this year's list are in the west---five of them in California alone. List-makers include:

1. Las Vegas/Paradise, Nev.
2. Stockton, Calif.
3. Visalia/Porterville, Calif.
4. Phoenix/Mesa/Scottsdale, Ariz.
5. Modesto, Calif.
6. Seattle/Tacoma/Bellevue, Wash.
7. Sacramento/Arden-Arcade/Roseville, Calif.
8. Fresno, Calif.
9. Yakima, Wash.
10. Tucson, Ariz.

The NICB used data from the National Crime Information Center (NCIC) to rate each of the nation's 361 metropolitan statistical areas, as designated by the Office of Management and Budget. The rate of theft is determined by the number of automobile thefts per 100,000 residents using the 2005 U.S. Census Population Estimates, which are the most current figures available.

"People can take any number of precautions to protect themselves from vehicle theft and, in most cases, those are sufficient to prevent theft," says NICB President and CEO Robert Bryant. "But a determined thief, a serial vehicle thief, is someone for whom there is no absolute deterrent---except prison."

The NICB recommends car owners take the following precautions with their cars:

Use Common Sense --- An unlocked vehicle with a key in the ignition is an open invitation to any thief, regardless of which anti-theft device is used. The common-sense approach to protection is the simplest and most cost-effective way to thwart would-be thieves. Secure vehicles even if parking for brief periods. And always remove keys from the ignition, lock doors, close windows and park in a well-lit area.

Warning Device --- The second layer of protection is a visible or audible device that alerts thieves that a vehicle is protected. Popular second layer devices include: audible alarms, steering column collars, steering wheel/brake pedal lock, brake locks, wheel locks, tire locks/tire deflators, theft deterrent decals, identification markers in or on vehicle, VIN etching and micro dot marking.

Immobilizing Device --- The third layer of protection is a device that prevents thieves from bypassing the ignition and hot-wiring a vehicle. Some electronic devices have computer chips in ignition keys. Other devices inhibit the flow of electricity or fuel to the engine until a hidden switch or button is activated. Popular third-layer devices include: smart keys, fuse cut-offs, kill switches, starter, ignition, and fuel pump disablers and wireless ignition authentication.

Tracking Device --- The final layer of protection is a tracking device that emits a signal to police or a monitoring station when the vehicle is stolen. Tracking devices are very effective in helping authorities recover stolen vehicles. Some systems employ "telematics" which combine GPS and wireless technologies to allow remote monitoring of a vehicle. If the vehicle is moved the system will alert the owner and the vehicle can be tracked via computer.

Top Business News

Don't Be Afraid To Ask For Help - Forbes.com: Entrepreneurs and Small Business News and Information 5/25/2007 3:49:29 PM - Many small shops slug it out in solitude. Better to find a mentor, adviser or coach to lend a helping hand.
Read the whole story...

Pinkberry fro-yo craze attracts attention - Business news and Fortune 500 - FORTUNE Magazine 5/29/2007 8:42:02 AM - Launched in Los Angeles two years ago by a failed restaurateur and a former nightclub bouncer, Pinkberry could become the next hot franchise.
Read the whole story...

After Build-A-Bear, Build-A-Toy-Car - NYT > Business 5/29/2007 9:01:37 AM - The founder of the Build-A-Bear Workshop is backing a new concept called Ridemakerz, a make-and-outfit your own toy car business.
Read the whole story...

Jobs & Gates, the Biggest Reunion Since Simon & Garfunkel - Wired Top Stories 5/28/2007 10:00:00 PM - Jobs and Gates haven't shared the spotlight in years. They'll do it at this year's D Conference, though, and the topic is a weighty one.
Read the whole story...

Create the Best Brochure - Use these tips for putting together a brochure that clearly gets your message across to potential customers - Entrepreneur.com -May 25, 2007 - As hard as you may try, you can only be in one place at a time. Your company brochure, however, can be in many places, helping you influence potential and existing customers.
Read the whole story...

More Top Business News...

Steve Brooks
Steve Brooks Insurance Services, Inc.
phone: (800)915-3090

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Steve Brooks Insurance Services, Inc. | 340 N. Westlake Blvd., | Suite 210 | Westlake Village | CA | 91362