KY helps with Roadside assistance

FYI

Keep this number in your car and you can phone them 365 days a year, 24 hours a day in KY

1-877-FOR- KYTC
1-877-367-5982

They will send someone to you if you are stranded on an interstate or parkway in KY. FREE!

You could call the number for a state highway and they would get a trooper to you if need be but that's all. They will not tow or pay for a tow but will help with all they can at the scene even calling the tow service for you. They will help change tires and other emergencies on the side of the interstate as they are aware of how dangerous it is to be on the side of a busy road doing that kind of thing by yourself.

Good to know your tax dollars are at work!

Article on CD's

I saw this interesting article in the AAII (American Association of Individual Investors) Journal.

Just informative for someone learning how to invest and information on a conservative investment.

State Farm Bank offers very competative interest rates on CD's so check with us each week to see what they are.


Certificates of Deposit

A certificate of deposit (CD) is an interest-paying savings vehicle. A CD has a stated maturity date, a specified interest rate and can be issued in any denomination by commercial banks, thrifts and credit unions.

How It Works

A certificate of deposit is a promissory note issued by a bank, thrift institution or credit union. It is a time deposit, meaning the institution keeps your money for the stated time and you are restricted (in the form of a penalty) from accessing the money prior to the maturity date.
This type of investment is less liquid than a cash deposit such as a checking or money market account. Because of this, interest rates are usually higher compared to cash deposit rates. If you must access the money before maturity, you will pay a penalty (typically a loss of interest payment over a certain period), which will eat into your total return.
A typical CD can be purchased for any amount and has a number of time period options. The most popular are between three months and five years. Usually, a longer holding period means a higher interest rate. CDs are insured by the FDIC up to $100,000.

Types

There are numerous types of CDs meeting most any investor’s holding period, interest rate and initial investment needs.
Traditional CDs, which most people are familiar with, allow you to deposit any amount of money, at a predetermined rate for a fixed time period. CDs with an initial investment of less than $100,000 are called small CDs. These are typically purchased by individual investors.
CDs with initial purchases of more than $100,000 are called jumbo CDs. These are usually purchased by institutional investors such as pension funds.
A bump-up CD gives you the option to increase the interest rate on your investment if the bank has increased the rate after you bought your CD. For example, if you bought a three-year CD at 5% and one year later the bank raises the rates on three-year CDs by 0.5%, you have the option to get the higher rate (5.5%) for the remainder of the term. Typically you have the option to do this only once during the holding period and the initial rate on the CD might be lower than a traditional CD rate to reflect this option. This can be a good option if you expect rates to rise substantially in the future.
A liquid CD allows investors to withdraw money without a penalty. Most banks will require a minimum balance over the life of the CD. Banks can also set a first penalty-free withdrawal date whenever they like, so you still may not be able to take out money right away. Also, there might be a limit to the number of withdrawals you can make over the CD term. The interest rate will typically be higher than a cash deposit account, but lower than a similar term traditional CD.
Zero-coupon CDs are very similar to zero-coupon bonds. You buy a CD at a deep discount to par, which is the amount you will receive at maturity. The coupon payments refer to the interest payments, so a zero-coupon CD will not earn interest. Your return depends on how much the initial investment is discounted from its par value.
Callable CDs allow a bank to call back a CD after the call-protection period expires, but before its maturity. In this case, the bank is attempting to shift interest rate risk to the investor. If rates fall, they can call any CDs with higher interest rates, and reissue them at the lower rate. There is typically an interest rate premium for investors purchasing this type of CD.
Brokerage CDs are sold through a brokerage firm. They often pay higher rates and are more liquid because the broker creates a secondary market. [For more detailed information about brokerage CDs, see the Offbeat Offerings column in the May 2007 AAII Journal.]

How to Trade

You can purchase a CD through any bank, thrift or credit union, and some brokerage firms. With the popularity of on-line banking, you have more options and more competitive rates. Your neighborhood bank may offer a rate that is more than it offers on a cash deposit, but typically an on-line bank can offer an even higher rate. This is because they do not have the costs associated with running brick-and-motor branches.
Investing in a CD at a bank or on-line is easy. After filling out the requisite paperwork, you can send the bank the money either via check or E-transfer from one bank to another. After the CD matures, the bank will typically transfer the money to a chosen account, or will roll it over into another CD.

Investor Suitability

Putting your cash reserve in a CD can earn you more interest than using a cash deposit account.
A more sophisticated way to invest in CDs is through laddering. Interest rates rise and fall as the economy ebbs and flows, and most investors do not want to get stuck in only low-interest-rate-paying CDs as rates are rising. One way around this dilemma is to ladder, spreading the maturity of your CDs over various timeframes. This technique assumes that longer-term CDs are almost always offered at a higher rate than shorter-term CDs.
As an example of a five-year ladder, with $20,000 to invest, you would invest $4,000 (or $20,000 ÷ 5) in each ladder “rung,” with the rungs consisting of one-, two-, three-, four-, and five-year CDs. After the one-year CD matures, it is rolled over into a new five-year CD (because after one year passes, each remaining CD has one year less until maturity). This will continue as long as you decide is appropriate.
By replacing the longest maturity CD each year, you will be getting a higher rate and if rates are rising, you will not be stuck in a long-term CD and unable to earn the higher rate.

Tax Consequences

For all CDs, you are taxed on any interest earned. Zero-coupon CDs are taxed on “phantom income” even though the actual interest is not paid to you. Your bank will send information about your interest earnings for tax purposes each year.

The Pros

Safe InvestmentsCDs are insured by the Federal Deposit Insurance Corp. (FDIC), for banks, and the National Credit Union Administration (NCUA), for credit unions. They are guaranteed to return the agreed upon rate over the CD term. [Make sure you understand the rules for FDIC and NCUA insurance coverage to ensure your CDs are fully covered.]
Higher Rate Than Cash DepositsBecause you do not have immediate access to the cash, banks typically offer a higher interest rate on CDs than on traditional cash deposits.

The Cons

LiquidityMost CDs do not have liquidity without penalty. If you withdraw the money before maturity, you will be heavily penalized.
Interest Rate RiskBecause you are locking in an interest rate, you may miss out on higher rates if interest rates rise. The longer the CD term, the higher the risk that your original rate will be lower than the going rate before it reaches maturity.
Low ReturnCompared to other riskier investments such as stocks, the returns can be very low.

Additional Information

BankRate.comwww.bankrate.com BankRate.com offers a wealth of information on CDs. The CDs & Investments section includes frequently asked questions, national CD rate comparisons, recent news stories and commentaries about the CD market, calculators and more. All of the data is free and updated regularly.
SECwww.sec.gov/investor/pubs/certific.htm The SEC offers tips on choosing and researching CDs. Cara Scatizzi, AAII Associate Financial Analy
By Cara Scatizzi, AAII Associate Financial Analyst

Dog Bites!

An interesting Article off the News Hub...

Study Shows Dog Bite Claims Up, Totaling More Than $350 Million in 2007



07.11.2008

Dog bites now account for a third of all homeowners insurance liability claims, costing $356.2 million in 2007 – or 10 percent more than the year before, according to the Insurance Information Institute (III).

The average cost of dog bite claims increased by 11.5 percent last year to $24,511, according to an III analysis. Since 2003, the cost of these claims has risen nearly 28 percent. However, the actual number of claims paid by insurers has remained relatively stable over the past three years at about 14,500.

More than 4.7 million people are bitten by dogs annually, resulting in an estimated 800,000 injuries that require medical attention, according to the Centers for Disease Control and Prevention. With more than 50 percent of bites occurring on the dog owner's property, the issue is a major source of concern for insurers.

"While the number of dog bite claims has remained about the same in the last three years, the average cost per claim continues to rise because of increased medical costs as well as the size of settlements, judgments and jury awards which have risen well above inflation in recent years," said Loretta Worters, III vice president.

Dog Owner Liability

According to III, dog owners are liable for any injuries their pets cause if:
The owner knew the dog had a tendency to cause that kind of injury.
A state statute makes the owner liable, whether or not the owner knew the dog had a tendency to cause that kind of injury. The injury was caused by unreasonable carelessness on the part of the owner.

There are three kinds of law that impose liability on owners:

1) Dog-bite statute: The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.

2) "One-bite" rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise displaying a "vicious propensity," the owner can be held liable.

3) Negligence laws: The dog owner is liable if the injury occurred because the dog owner was unreasonably careless (negligent) in controlling the dog.

In most states, dog owners are not liable to trespassers who are injured by a dog. A dog owner who is legally responsible for an injury to a person or property may be responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering and property damage.

Coverage for Dog Owners

Homeowners and renters insurance policies typically cover dog bite liability. Most policies provide $100,000 to $300,000 in liability coverage, according to III. If the claim exceeds the limit, the dog owner is personally responsible for all damages above that amount, including legal expenses. Most insurance companies will insure homeowners with dogs. However, once a dog has bitten someone, it poses an increased risk, and insurance companies may charge a higher premium or exclude the dog from coverage. Some insurers require dog owners to sign liability waivers for dog bites. Some will cover a pet if the owner takes the dog to classes aimed at modifying behavior.

Because a single lawsuit can end up costing hundreds of thousands of dollars and exceed the level of personal liability coverage available through a standard homeowners policy, III advises homeowners to consider purchasing a personal excess liability policy, otherwise known as an umbrella liability policy.
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© 2008 Factiva, Inc. All rights reserved.

FYI:
The average cost of dog bite claims increased by 11.5 percent last year to $24,511.

State Farm’s Numbers:

State Farm® paid $84.6 million in dog bite claims last year, which is up compared to the previous four years, when payments ranged from $74 to $78 million. However, the number of paid claims in 2007 – about 3,500 – is about the same as in 2006 and down slightly from previous years. For example, the number of dog bite claims in 2003 was 4,000.

State Farm’s Policy:
State Farm does not refuse insurance based on the breed of dog. We believe there are good dogs and bad dogs within every breed, just as there can be responsible and irresponsible owners of each breed. Under the right circumstances, any dog might bite. However, the state of Ohio determined last year that pit bulls meet the definition of a ‘vicious dog.’ The owners of pit bulls or any American Staffordshire Terrier mix in that state are subject to specific requirements to protect the public from injury. State Farm believes it is in the best interest of its policyholders not to provide coverage under its homeowners policy in Ohio for this breed of dog.

Dog Bite Prevention Tips:

Consult with a professional (veterinarian, animal behaviorist or responsible breeder) to learn about suitable breeds of dogs for your household and neighborhood.

Spend time with a dog before buying or adopting it. Use caution when bringing a dog into a home of with an infant or toddler. Dogs with histories of aggression are inappropriate in households with children.

Be sensitive to cues that a child is fearful or apprehensive about a dog and, if so, delay acquiring a dog. Never leave infants or young children alone with any dog.

Have your dog spayed or neutered. Studies show that dogs are three times more likely to bite if they are not neutered.

Socialize your dog so that it knows how to act with other people and animals.

Discourage children from disturbing a dog that is eating or sleeping.

Play non-aggressive games with your dog, such as "go fetch." Playing aggressive games like "tug-of-war" can encourage inappropriate behavior.

Avoid exposing your dog to new situations in which you are unsure of its response.

Never approach a strange dog and always avoid eye contact with a dog that appears threatening.
Immediately seek professional advice if the dog develops aggressive or undesirable behaviors.