FOR RELEASE ON:  December 17, 1999

FOR MORE INFORMATION:
OII: Mary Bonelli or Mitch Wilson: 614-228-1593
OBA:  Melea Wachtman or Mike Van Buskirk: 614-221-5121

OHIO INSURANCE AND BANKING INDUSTRIES OFFER ADVICE ON YEAR-END SAFETY OF YOUR SAVINGS

COLUMBUS-Ohio consumers should take prudent steps to safeguard their assets as the end of the year approaches. According to the Ohio Insurance Institute (OII) and the Ohio Bankers Association (OBA), your funds are much safer in their checking and savings accounts than hidden in your home.

"The major pitfall of withdrawing large amounts of cash as a Y2K precautionary measure is the risk you take in safeguarding those dollars at home," said OII President Daniel J. Kelso.

Kelso explains that a typical homeowners or renters insurance policy protects cash losses due to theft up to $200. Bank funds are secured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000 per account.

OBA Executive Vice President and CEO Michael M. Van Buskirk concurred.

"The banking industry will be prepared to serve customers on January 1," he said. "And the added benefit of FDIC insurance means the safest place for your money is in the bank."

When making cash withdrawals at year-end, the organizations recommend that consumers make a reasonable decision based on fact, not fiction. Experts continually rank the banking industry among the best in Y2K preparedness. Federal bank regulators, who have examined and re-examined every insured financial institution in the country, reported earlier this fall that 99.9 percent of all institutions received the highest Y2K rating available.

The Tower Group reports that banks have invested more than $8 billion nationally in Y2K preparedness, while A.M. Best estimates the insurance industry's tab at $6-8 billion. Both industries are not only ready, but have detailed contingency plans in place to safeguard policyholders and customer investments.

Many employees of both industries plan to celebrate the beginning of the new year at their places of employment.

"It's just part of both industries' plans to ensure a smooth transition into the year 2000," said Kelso.

While both industries have focused financial and employee resources on preventing Y2K systems problems, no one can guarantee that everything will work perfectly. The OII and the OBA offer the following tips for consumers.

Bank customers

1. If you don't already know, find out what your financial institution is doing to prepare for the century rollover.

2. As always, keep good records of your financial transactions, especially the last quarter of 1999 and first quarter of 2000. Balance your checkbook and other accounts regularly.

3. Keep in mind, most retailers accept all forms of payment-checks, credit cards and debit cards. Take out only the cash you would normally need for a long weekend.

4. Be wary of anyone attempting to sell you a product or service that protects your savings from Y2K glitches.

Insurance policyholders

1. Take extra precautionary measures if you make a larger than usual cash withdrawal. Keep it in a safe place and avoid exposing large sums of cash in public.

2. Some insurance companies offer policy endorsements that secure cash, gold, silver, platinum and bank notes against theft up to $1,000 which may be worth investigating based on your needs. Contact your insurance agent or company representative to discuss this optional coverage.

3. The Y2K event does not remove coverages that currently apply under homeowners or renters insurance policies. If an insured suffers an accidental fire on January 1, 2000, the claim should be covered if the event that triggered the fire was related to a Y2K problem.

4. If your millennium celebration plans take you away from home, consider storing your valuables off-premises in a safe deposit box. This includes cash.

The Ohio Insurance Institute is a trade and public information association representing insurance companies and agent groups for the property/casualty insurance industry.  Its primary objective is to help Ohioans achieve a better understanding of insurance and related safety issues.

The Ohio Bankers Associations a nonprofit cooperative owned by the commercial and savings banks of Ohio. For more than a century, the OBA has provided education, communication, collective buying and governmental services to its members.

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