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52-500: Farmers Insurance Group (informally Farmers ) is an American insurer group of vehicles, homes and small businesses and also provides other insurance and financial services products. Farmers Insurance has more than 48,000 exclusive and independent agents and approximately 21,000 employees. Farmers is the trade name for three reciprocal exchanges , Farmers, Fire, and Truck, each a managed by Farmers Group, Inc. as attorney-in-fact on behalf of their respective policyholders. Farmers Group, Inc.

104-736: A semi-truck or toter on a frame similar to that of a trailer. The house is usually in two pieces and is hauled by two separate trucks. Each frame has five or more axles, depending on the size of the house. Once the house has reached its location, the axles and the tongue of the frame are then removed, and the house is set on a concrete foundation by a large crane. Some modern modular homes, once fully assembled, are indistinguishable from site-built homes. In addition, modular homes: Manufactured homes have several standard requirements that are more stringent than International Residential Code homes. Fire Protection A National Fire Protection Association (NFPA) study from July 2011 shows that occurrence of fires

156-405: A "member". Subscribers do not "own" and are not "owners" of the exchange, as it is an unincorporated association and thus has neither legal personhood nor owners. However, subscribers often have a governance role over the exchange, such as an advisory committee or Board of Governors. In some reciprocal exchanges, operating surplus generated by the exchange belongs to the subscribers but is held by

208-603: A football stadium in the city of Los Angeles. This stadium would have been located downtown, close to the Staples Center . The contract was signed for 30 years, and its estimated cost was $ 700 million. The deal would have started with $ 20 million for the first year, then eventual increases. The stadium was planned to be named " Farmers Field ". The stadium project was cancelled after the Kroenke Sports & Entertainment announced their own stadium to be built to be

260-465: A leading writer of manufactured homes and a prominent insurer of recreational vehicles , boats and other specialty lines. In August 2000, Farmers Financial Solutions registered with the U.S. Securities and Exchange Commission as a broker-dealer . Through it, Farmers began offering mutual fund and variable insurance products. In October 2000, the Zurich structure was simplified and unified under

312-406: A location for long periods of time, or even permanently installed with a masonry foundation. Previously, units had been eight feet or less in width, but in 1956, the 10-foot (3.0 m) wide home was introduced. This helped solidify the line between mobile and house/ travel trailers , since the smaller units could be moved simply with an automobile, but the larger, wider units required the services of

364-547: A monthly site fee. This enables a consumer, who could otherwise not afford to live in the Bay Area, the opportunity to own a new home in this location. There are various communities of manufactured homes in the Bay Area, the largest being Casa de Amigos, located in Sunnyvale, California . In Australia these homes are commonly known as transportable homes , relocatable homes or prefabricated homes (not to be confused with

416-467: A percentage of premium. The AIF may be owned by the reciprocal (a proprietary reciprocal) or contracted from a third party (a non-proprietary reciprocal). Reciprocal insurance policies are typically nonassessable, keeping the policyholders from being charged an additional amount of money if required by the exchange. Reciprocals may issue assessable policies, though the practicalities of collecting assessments from members (particularly in personal lines) makes

468-669: A professional trucking company. In the 1960s and '70s, the homes became even longer and wider, making the mobility of the units more difficult. Today, when a factory-built home is moved to a location, it is usually kept there permanently. The mobility of the units has decreased considerably. The factory-built homes of the past developed a negative stereotype because of their lower cost and the tendency for their value to depreciate more quickly than site-built homes. The tendency of these homes to rapidly depreciate in resale value made using them as collateral for loans far riskier than traditional home loans . Loan terms were usually limited to less than

520-458: A reduction in the rate of value depreciation of many used units. Although great strides have been made in terms of quality, manufactured homes do still struggle with construction problems. Author Wes Johnson has pointed out that the HUD code which governs manufactured homes desperately needs to be updated, quality control at manufacturing facilities are often lax, and set-up issues often compromise even

572-689: A single Swiss holding company. Allied Zurich and Zurich Allied shares were replaced by shares of the newly incorporated Zurich Financial Services with a primary listing on SWX Swiss Exchange ( ticker symbol : ZURN) and a secondary listing in London. Zurich Financial Services American Depositary Receipts (ADRs) are traded on the American Stock Exchange. In 2005, after Hurricane Rita hit Beaumont, Texas , leaving it without power, Farmers Insurance brought in almost 300 insurance adjusters to assess exterior property damage in order to expedite

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624-407: A small group of individuals or companies could band together to insure one another and form a reciprocal. In consumer insurance, more recently, entrepreneurs have formed attorneys-in-fact which then form reciprocals by providing the initial capital (often as a surplus note), attracting subscribers, and managing the exchange. Reciprocals are sometimes confused with mutual insurance companies. While

676-719: A well-made manufactured home. Johnson states buyers need to be exceptionally cautious if they are entertaining the idea of purchasing any manufactured home by carefully checking it for defects before signing the contract and supervising the set-up process closely. These homes in the modern age are built to be beautiful and last longer than the typical old trailers. When FEMA studied the destruction wrought by Hurricane Andrew in Dade County Florida, they concluded that modular and masonry homes fared best compared to other construction. While manufactured homes are considered to be affordable housing , older models can be some of

728-590: Is a wholly owned subsidiary of Swiss-based Zurich Insurance Group . Farmers' future co-founders John C. Tyler and Thomas E. Leavey first met after Tyler moved to California . Tyler and Leavey had both grown up with rural backgrounds and believed that farmers and ranchers, who had better driving records than urbanites, deserved lower insurance premiums. During the 1920s, farmers across the United States were establishing their own mutual insurance firms and cooperatives in order to have less expensive policies. Tyler,

780-419: Is authorized to administer the exchange and run its day-to-day operations, including issuing policies, filing rates, managing investments and handling claims. The attorney-in-fact can solicit and admit new subscribers. The attorney-in-fact may be an individual, partnership or corporate entity. In exchange for its services, the attorney-in-fact receives payment from fees charged to the exchange or its members, often

832-474: Is lower in manufactured housing and the injury rate is lower in manufactured housing. The justification behind the superior fire safety is due to the following higher standard requirements: The San Francisco Bay Area , located in Northern California, is known for its high real estate prices, making manufactured housing an increasingly popular alternative to traditional real estate. It is mainly

884-435: Is often self-managed, and policyholders may have a role in electing the board of directors. Mutuals are typically thought of as being not-for-profit, but mutuals can own for-profit stock insurance companies. While the reciprocal exchange itself is technically not-for-profit, it can accumulate surplus, the attorney-in-fact may have a profit motive, and the attorney-in-fact may have profit-seeking external shareholders who are not

936-416: Is owned by the house owner. Typically the homes are built in regional areas where the cost of organizing tradespeople and materials is higher than in the cities. In particular prefabricated homes have been popular in mining towns or other towns experiencing demand for new housing in excess of what can be handled by local builders. This method of construction is governed by state construction legislation and

988-408: Is subject to local council approval and homeowners' warranty or home warranty insurance. A manufactured home is built entirely inside a huge, climate-controlled factory by a team of craftsmen. The first step in the process is the flooring, which is built in sections, each attached to a permanent chassis with its own wheels and secured for transport upon the home's completion. Depending on the size of

1040-624: The American meaning of the term ). They are not as common as in the US, but the industry is expected to grow as this method of construction becomes more accepted. Manufactured home parks refer to housing estates where the house owner rents the land instead of owning it. This is quite common in Queensland in both the form of tourist parks and over fifty estates. The term transportable homes tends to be used to refer to houses that are built on land that

1092-541: The Moderne style , opens on Wilshire Boulevard . Architects Claud Beelman & Herman Spackler add 4 floors and a seventh-floor garden terrace for staff in 1949. Fire Insurance Exchange , the third reciprocal insurer, was launched, specializing in home insurance. Mid-Century Insurance Company became a subsidiary of the Farmers Insurance Exchange. Aside from the insurance coverage provided by

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1144-498: The October 2007 California wildfires , Farmers was one of only a few companies to set up facilities to aid their customers. In addition to writing checks for evacuation costs, damage claims, lodging and meals, the company ran commercials urging their customers to take advantage of these facilities. The company now also has 2 buses serving as Mobile Command Centers. This mobile claim center arrived at Qualcomm Stadium only two days after

1196-516: The 2012 season till the end of the 2017 season. The year prior, Farmers sponsored Mark Martin and a few years before that, Travis Kvapil . Farmers was the first to introduce a #hashtag on a race car. Kahne's first victory in the No. 5 was at the 2012 Coca-Cola 600 at Charlotte Motor Speedway . Farmers promotes its motor-sport relationship through the Farmers Racing website. At the conclusion of

1248-422: The 2017 season, Farmers Insurance left Hendrick motor-sports and NASCAR. The combination produced 6 wins in 6 years together including a Brickyard 400 . Farmers Insurance Group's television advertisements typically center around "Farmers University," a institution in which professor Nathaniel Burke ( J. K. Simmons ) educates Farmers employees about various unlikely insurance claims (often involving devious animals)

1300-545: The 30-year term typical of the general home-loan market, and interest rates were considerably higher. In other words, these home loans resembled motor vehicle loans far more than traditional home mortgages. They have been consistently linked to lower-income families, which has led to prejudice and zoning restrictions, which include limitations on the number and density of homes permitted on any given site, minimum size requirements, limitations on exterior colors and finishes, and foundation mandates. Many jurisdictions do not allow

1352-531: The HUD Code went into effect." Despite the formal definition, mobile home and trailer are still common terms in the United States for this type of housing. The original focus of this form of housing was its ability to relocate easily. Units were initially marketed primarily to people whose lifestyle required mobility. However, beginning in the 1950s, these homes began to be marketed primarily as an inexpensive form of housing designed to be set up and left in

1404-482: The HUD Code) went into effect June 15, 1976. Manufactured homes may be single- or multi-section and are transported to the site and installed. The MHINCC distinguishes among several types of factory-built housing : manufactured homes, modular homes , panelized homes, pre-cut homes , and mobile homes . From the same source, mobile home "is the term used for manufactured homes produced prior to June 15, 1976, when

1456-692: The United States could use to significantly reduce the time required for residential recovery." Teaming with SBP , a disaster relief organization based out of New Orleans , the result was the Disaster Recovery Playbook, an evolving online resource. Since the guide's initial creation, AmeriCorps has been brought onto the team. In December 2020, Farmers Exchanges and Farmers Group, Inc. (FGI) announced they will jointly acquire MetLife's property and casualty business (MetLife Auto & Home). Farmers' products and services include: In February 2011, Farmers announced that it had agreed to sponsor

1508-496: The United States) is a type of prefabricated housing that is largely assembled in factories and then transported to sites of use. The definition of the term in the United States is regulated by federal law (Code of Federal Regulations, 24 CFR 3280): "Manufactured homes are built as dwelling units of at least 320 square feet (30 m ) in size with a permanent chassis to assure the initial and continued transportability of

1560-663: The age of 86. Thomas E. Leavey, the remaining co-founder, took the CEO position. Thomas E. Leavey retired. After an eight-month takeover battle, BATUS Inc. , the American subsidiary of British conglomerate B.A.T. Industries Plc, acquired Farmers Group, Inc. for $ 5.2 billion and became the sole stockholder of the company's 68 million shares of common stock. Multiple, large-scale disasters posed financial challenges to Farmers Insurance. The 1989 San Francisco earthquake , 1991 Oakland fire , and 1994 Northridge, California, earthquake were

1612-579: The assessable model less commonly used. Insurance in the United States is principally regulated by each of the states, as provided for by the McCarran–Ferguson Act . There is a considerable variation in how state law governs reciprocal exchanges. Some states have specific laws governing reciprocal exchanges, while others subsume regulation of reciprocal exchanges under the regulations governing captive insurers . Reciprocals can be started directly by policyholders or by an attorney-in-fact. In theory,

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1664-605: The company covers. In 2006, Farmers Insurance received the highest number of complaints to state insurance departments in Washington and Oregon . Reciprocal inter-insurance exchange Reciprocals began in 1881 when dry-good merchants in New York were discontent with their experience with other insurers in covering their buildings. The store owners believed that they had well-maintained buildings and were being overcharged by risk rating methodologies used by insurers at

1716-568: The creation of risk retention groups (RRGs) to provide certain forms of commercial liability insurance. RRGs and multi-parent captives have similar characteristics to reciprocals, notably the concept of similarly situated parties agreeing to insure each other. However, RRGs and captives are restricted in their product offerings, membership, and governance. In some states, municipalities form reciprocals to cross-indemnify towns, cities, villages, and counties. Manufactured housing Manufactured housing (commonly known as mobile homes in

1768-403: The doors to their newly founded company, Farmers Automobile Inter-Insurance Exchange , in downtown Los Angeles, California . Tyler served as president with Leavey as vice president. A sales manager and secretary completed the four-employee team. On March 28, 1928, the first meeting of the board of governors was convened. Two days later, Charles Brisco insured his 1925 Cadillac Phaeton and became

1820-405: The exchange in subscriber savings accounts, and exchange members might be charged "policyholder surplus contributions" to fund the exchange's surplus. The attorney-in-fact may return unneeded money to the subscribers under some circumstances. Subscribers may be natural persons , LLCs or LPs, partnerships , or corporations . The attorney-in-fact, using a power of attorney from each subscriber,

1872-427: The exterior siding is added, along with the installation of doors and windows. Finally, interior finishing, such as sealing the drywall, is completed, along with fixture installation and finishing the electrical and plumbing connections. The exposed portions of each section, where they will eventually be joined together, are wrapped in plastic to protect them for transport. With all the building site prep work completed,

1924-405: The fires started. In April 2009, Farmers announced that it would acquire 21st Century Insurance from AIG for $ 1.9 billion. The acquisition made Farmers the joint third-largest personal lines insurer in the U.S. The acquired assets included AIG Hawaii. In response to the increasing number of deadly storms between 2010 and 2013, Farmers Insurance began "researching a model that municipalities across

1976-511: The first Farmers customer. Truck Insurance Exchange , a new reciprocal insurer , was launched to specialize in truck insurance. Farmers Insurance Exchange was named the leading reciprocal in earned premiums for auto insurance by National Underwriter. New headquarters building to house the Farmers Automobile Inter-Insurance Exchange and Truck Insurance Exchange, designed by Walker & Eisen in

2028-713: The home of the Los Angeles Rams and Los Angeles Chargers . Farmers became the title sponsor of the Farmers Insurance Open PGA tournament in Torrey Pines, CA in 2010. The event raises millions for local San Diego charities each year. www.farmersinsuranceopen.com Farmers was the sponsor of the No. 5 Chevrolet SS driven by Kasey Kahne for Hendrick Motorsports in the Monster Energy NASCAR Cup Series from

2080-608: The home." The requirement to have a wheeled chassis permanently attached differentiates "manufactured housing" from other types of prefabricated homes, such as modular homes . According to the Manufactured Housing Institute's National Communities Council (MHINCC), manufactured homes are homes built entirely in the factory under a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). The Federal Manufactured Home Construction and Safety Standards (commonly known as

2132-536: The house and the floorplan's layout, there may be two, three or even four sections. The flooring sections have heating, electrical and plumbing connections pre-installed before they are finished with laminate, tile or hardwood. Next, the walls are constructed on a flat level surface with insulation and interior Sheetrock before being lifted by crane into position and secured to the floor sections. The interior ceilings and roof struts are next, vapor sealed and secured to each section's wall frame before being shingled. Then,

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2184-1131: The most expensive in the nation to heat due to energy inefficiency. High-performance manufactured housing uses less energy and therefore increases life-cycle affordability by decreasing operating costs. High-performance housing is not only energy efficient, but also attractive, functional, water-efficient, resilient to wind, seismic forces, and moisture penetration, and has healthy indoor environmental quality. Achieving high-performance involves integrated, whole building design, involving many components, not one single technology. High–performance manufactured housing should also include energy efficient appliances, such as Energy Star qualified appliances. Energy Star requires ample insulation: 2x6 walls: R21, roof: R40, floor: R33. Both types of homes - manufactured and modular - are commonly referred to as factory-built housing, but they are not identical. Modular homes are built to International Residential Code (IRC) code. Modular homes can be transported on flatbed trucks rather than being towed , and can lack axles and an automotive-type frame. However, some modular houses are towed behind

2236-469: The mutual exchange of insurance contracts among persons in an unincorporated association under a common name through an attorney-in-fact having authority to obligate each person both as insured and insurer. This definition implies three parties: the Subscribers (policyholders), the exchange (an unincorporated association), and the attorney-in-fact. Each policyholder is a subscriber to the exchange or

2288-479: The original three exchanges, Mid-Century offered insurance coverage for Inland marine , robbery, burglary, personal lines, plate glass, selected bonds, and floaters . Seattle-based New World Life Insurance Company was acquired by Farmers. Farmers began annual participation in the Pasadena Rose Parade , launching its involvement in parades and community events nationwide. John C. Tyler died at

2340-617: The placement of any additional factory-built homes, while others have strongly limited or forbidden all single-wide models, which tend to depreciate more rapidly than modern double-wide models. The derogatory concept of a " trailer park " is typically older single-wide homes occupying small, rented lots and remaining on wheels, even if the home stays in place for decades. Modern homes, especially modular homes , belie this image and can be identical in appearance to site-built homes. Newer homes, particularly double-wides, tend to be built to much higher standards than their predecessors. This has led to

2392-423: The products of stock companies, reciprocals, and mutuals may be practically indistinguishable to consumers, there are technical differences. A reciprocal is unincorporated; a mutual is incorporated and thus can claim to be "owned by our policyholders". However, in both a reciprocal and a mutual, it may be difficult for widely dispersed policyholders to force material changes in governance. A mutual insurance company

2444-486: The reconstruction effort, provided $ 100,000 for the emergency operations center, and two badly needed megawatt electric generators. In July 2007, the Farmers Exchanges acquired Bristol West Holdings, Inc., the parent of a group of insurers specializing in non-standard auto insurance, which provides insurance coverage for drivers whose driving records or other problems make obtaining insurance difficult. During

2496-600: The son of a South Dakotan insurance salesman, and Leavey, who had formerly worked for the Federal Farm Loan Bureau and the National Farm Loan Association , recognized that these farmers, ranchers, and other rural drivers were an overlooked market and wished to create their own auto insurance firm. Tyler and Leavey received a loan from the founder of Bank of America , enabling them to start their company. Tyler and Leavey opened

2548-419: The subscribers. To build surplus, such as at inception or following a disaster, a reciprocal can request state regulators to allow it to rebuild surplus via policyholder surplus contributions. Reciprocal exchanges are more commonly seen in personal lines than commercial lines, in part because commercial lines insurers can be organized via other means not available in personal lines. In 1981, Congress authorized

2600-578: The three most significant disasters. It was estimated that the losses from the Northridge earthquake alone were $ 1.3 billion. In September 1998, the Zurich Financial Services Group was created from the merger with the financial services business of B.A.T. Industries for $ 18.6 Billion through a dual holding structure. In March 2000, the Farmers Exchanges acquired Foremost Corporation of America (Foremost Insurance Group),

2652-497: The time. Because the merchants were well-capitalized and could absorb certain losses, they decided to self-insure to lower their insurance costs. Subscribers indemnified each other when a member suffered a loss, but the process of collecting from those who did not suffer and remitting funds to those who did suffer losses proved cumbersome. Reciprocal exchanges managed by attorneys-in-fact thus were organized to address this problem. "Reciprocal insurance" means insurance resulting from

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2704-461: The value of the land that makes real estate in this area so expensive. As of May 2011, the median price of a home in Santa Clara was $ 498,000, while the most expensive manufactured home with all the premium features was only $ 249,000. This drastic price difference is due to the fact that manufactured homes are typically placed in communities where individuals do not own the land, but instead pay

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