(Nashville, TN – Insurance News 360) – On March 14, the Tennessee Department of Commerce and Insurance’s Securities Division cautioned investors to be sure they do their research before investing in “unicorn” start up companies. The warning came after the North American Securities Administrators Association (NASAA) issued an advisory on the topic.

When it comes to financing businesses and start up companies, a “unicorn”  is a privately held company that is estimated to be valued at more than $1 billion. Privately held companies cannot sell shares to the public and has a limited number of investors. They can raise capital to fund business endeavors, and recent changes in securities laws have given them more options to do so. The investors in these types of companies are typically private funds, like private equity, hedge funds, or venture capital; they may also include wealthy individuals, owners and employees of the company itself.  SEC-registered mutual funds, exchange-traded funds (ETFs) and business development companies (BDCs) also may invest in unicorns.

Putting your money into this type of company carries big risk, especially when there is a direct investment. Because they are privately held, there is no public market to trade the securities, and these securities are not easily sold or exchanged for cash. This is why the market valuations may not accurately reflect the actual value of the company. Also, public disclosures may not be up to the level of what is required of publicly traded companies.

“Rushing into an investment that you don’t fully understand can be bad for your bottom line,” said TDCI Assistant Commissioner Frank Borger-Gilligan. “We encourage Tennesseans to always conduct thorough research to learn the risks associated with the investments they are considering.”

What are Some Risks of Investing in pre-IPO Shares?

Fraud: weak internal controls and corporate governance infrastructure may lead to fraudulent practices by a unicorn. For example, a company could create false sales and shipping documents to artificially increase sales numbers.

Disclosure: since the securities of unicorns will not be registered at the state or federal level, investors may lack important information to make an investment decision.

Liquidity: there is no guarantee shares can be resold after purchase.

Valuation: the valuation on a unicorn pre-IPO may not reflect the intrinsic value of the enterprise. In addition, even if the unicorn eventually holds an IPO, there is no guarantee the stock price will rise. Some IPOs are unsuccessful, and shares fall after the company goes public.

Remember, before making any decisions with your money, ask questions, make sure you understand the risks, and contact the Tennessee Securities Division for detailed background information about those who sell securities or give investment advice, as well as about the products being offered.

The Tennessee Securities Division can be reached at 615-741-2947.

Source: Tennessee Department of Commerce & Insurance (TDCI).

(Costa Mesa, CA – Insurance News 360) – The J.D. Power 2018 U.S. Original Equipment Tire Customer Satisfaction Study reveals that overall customer satisfaction with original equipment tires has shown great improvement since 2015

The study, conducted each year, looks at tire owner satisfaction in tire wear, tire ride, tire appearance, and tire handling. The study ranks luxury vehicles, passenger cars, performance sport and truck

Michelin tires earned a 765 in the luxury segment, 753 in passenger, 774 in performance and 731 in truck/utility.

“The rise in satisfaction helps validate tire manufacturers’ efforts to meet the demands of OEMs while simultaneously improving the customer experience,” said Brent Gruber, Senior Director, Automotive Quality Practice at J.D. Power. “The fact that there is little difference in satisfaction between run-flat and traditional tires is a great example. Many OEMs have been replacing spare tires with run-flats to help reduce vehicle weight and improve fuel efficiency. Just a few years ago run-flat tires were a detriment to customer satisfaction but the experience is much more positive now.”

The 2018 U.S. Original Equipment Tire Customer Satisfaction Study is based on responses from 30,477 owners of 2016 and 2017 model-year vehicles, and was fielded in October-December 2017.

Source: J.D. Power.

(Costa Mesa, CA – Insurance News 360) – Consumers are happier with their telecommunications services when service technicians are on time for appointments and provide more precise service windows. The results of the inaugural J.D. Power U.S. Telecom In-Home Service Technician Study, released on March 22.

Longer service windows and early or late arrivals negatively impact customer satisfaction.

The study looked at consumer perceptions of on-site service technician visits for high speed data, phone and TV service installation and service. There were six attributes examined in this study:   quality of work; timeliness of completing work; knowledge of technician; courtesy of technician; professionalism of technician; and scheduling an appointment.

“The more flexible telecom companies can be with offering service windows that work with their customers’ schedules and the more precise they are at hitting those target times, the higher levels of customer satisfaction they can realize,” said Peter Cunningham, Technology, Media, and Telecommunications Practice Lead at J.D. Power. “Though this may seem like common sense, there are huge performance gaps among the different providers. Those that are getting it right have developed strong skill sets in both managing customer expectations and delivering on them.”

The study revealed the following things:

Shorter service windows are associated with higher satisfaction: Scheduling an appointment satisfaction is 49 points higher among customers with service windows of one hour or less than among those with a two-hour window. That gap jumps to 104 points when customers are given a four-hour window.

Customers are happier when technicians arrive on the right day, on time. Although overall satisfaction for punctual technicians was 871, it dropped to 819 when technicians were early and 683 when they were late (and this includes technicians who come on the wrong day).

Customers are happier when technicians fix problems on a single visit. Those whose issues require multiple visits are more likely to indicate that they will switch services.

Customers appreciate contact prior to technician arrival. According to the survey, customer satisfaction is 138 points higher when a technician contacted them prior to arrival.

Customers are happier when they can schedule appointments online. Use of digital channels to schedule appointments leads to greater customer satisfaction than when customers must use the telephone.

Study Rankings

DISH Network ranks highest in telecommunications in-home service technician satisfaction with a score of 885. Charter Spectrum ranks second (860), AT&T/DIRECTV (859) ranks third and Verizon (856) ranks fourth. The industry average is 853.

The 2018 U.S. Telecom In-Home Service Technician Study was fielded in December 2017-January 2018, collecting 3,744 responses. To be eligible to participate, respondents needed to have an in-home telecom service technician visit in the past six months.

For more information about the 2018 U.S. Telecom In-Home Service Technician Study, visit http://www.jdpower.com/resource/us-telecom-home-service-technician-study.

Source: J.D. Power.

(Washington, DC – Insurance News 360) – The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration has implemented a 90-day temporary waiver to the Congressionally-mandated electronic logging device rule in order to address the needs of the agricultural industries in the U.S.

The agency is also publishing final guidance on the agricultural 150-air-miles-of-service exemption and personal conveyance.

“We continue to see strong compliance rates across the country that improve weekly, but we are mindful of the unique work our agriculture community does and will use the following 90 days to ensure we publish more helpful guidance that all operators will benefit from,” said FMCSA Administrator Ray Martinez.

Roadside compliance with the record keeping reuirements for hours of service have been increasing (including the ELD rule) since 2017. Compliance is as high as 96 percent, with more than 330 separate self-certified devices on the registration list.

On April 1, full enforcement of the rule began. Carriers that did not have an electronic logging device as required were placed out of service and would remain out of service for 10 hours, in accordance with the Commercial Vehicle Safety Alliance criteria.

Source: U.S. Department of Transportation

(Harrisburg, PA – Insurance News 360) – On March 22, Pennsylvania Insurance Commissioner Jessica Altman announced that Texas-based auto insurer Access Insurance Company has been issued an order of liquidation by a Texas court. In Pennsylvania, there are more than 42,000 policies affected.

Those affected by this liquidation can legally drive, but need to find new insurance by April 13, or when their current policy expires, whichever date comes first. The company’s policies will expire at 11:59 p.m. on April 12.

“Pennsylvania drivers who have coverage through Access Insurance Company should file any claims that may arise at www.access.com, or by calling 1-866-747-6931, until their current policy expires or until April 12,” Altman said.  Claims filed during this period will be paid through the Pennsylvania Property and Casualty Insurance Guaranty Association.

The Special Deputy Receiver in this case is Cantilo & Bennett, L.L.P. of Austin, Texas and will manage the liquidation.  Policyholders with questions can contact them at www.accessinsurancesdr.com, or by calling 512-478-6000.

“Pre-paid premiums will be refunded to policyholders as soon as practical.  Policyholders do not need to take any action to receive refunds,” Altman said.

Consumers with questions may also call the Pennsylvania Insurance Department Consumer Services Bureau at 1-877-881-6388, or use the link on the department’s homepage, www.insurance.pa.gov, to ask a question.

Source: Pennsylvania Insurance Department.