Own A Toyota? You Need To Read This
Posted by Michelle Moquin on October 3rd, 2009
Good Morning – This article was brought to my attention and I am grateful that it was. I have quite a few friends who own a Toyota Prius, amongst other hybrids, so I hope that you are reading my blog today. That goes to all of my readers too. This little didley of knowledge could save your life. Please pass it on.
DETROIT — Toyota said on Tuesday that it would recall 3.8 million vehicles because a floor mat could cause the accelerator pedal to become stuck. But for now, the automaker and federal officials are urging owners to simply remove their driver’s side mat while Toyota works out a solution.
The recall is the largest ever for Toyota, which is struggling for the first time with heavy financial losses and surplus production capacity amid a miserable car market in the United States. The recall includes many of the most popular Lexus and Toyota vehicles, including Camry sedans in the 2007 to 2010 model years, and Prius hybrid cars from 2004 to 2009.
The National Highway Traffic Safety Administration issued an alert on Tuesday about the Toyota floor mats based on reports that stuck accelerator pedals could lead to high speeds and deadly crashes.
“This is an urgent matter,” Ray LaHood, the transportation secretary, said in a statement. “For everyone’s sake, we strongly urge owners of these vehicles to remove mats or other obstacles that could lead to unintended acceleration.”
Until a solution is announced, owners of the vehicles should remove their driver’s side mat but do not need to visit a dealership, the company said.
This month, Toyota ordered dealers to inspect the floor mats in all Toyota and Lexus vehicles after a crash on Aug. 28 near San Diego killed four people; the police said the accident might have been caused by an improperly installed mat. The car was a 2009 Lexus ES 350 on loan from a dealership to the driver, an off-duty California Highway Patrol officer.
Toyota, whose largest recall previously involved about 900,000 vehicles, is still studying the matter before officially beginning the recall, but said it planned a broad safety campaign as soon as next week. Two years ago, the company recalled all-weather floor mats sold for some Lexus ES 350 and Camry sedans. The government said on Tuesday that it received “continued reports of vehicles accelerating rapidly after release of the accelerator pedal” even after that recall.
“The incidents appear to be related to factors including the use of a variety of unsecured mats, the particular configuration of the accelerator pedals in these vehicles, and the unique steps needed to shut off the engines in some of these vehicles with keyless ignition,” the traffic safety agency said.
The recall will include the following models: 2007 to 2010 Camry; 2005 to 2010 Avalon; 2004 to 2009 Prius; 2005 to 2010 Tacoma; 2007 to 2010 Tundra; 2007 to 2010 ES 350; and 2006 to 2010 IS 250 and 2006 to 2010 IS 350.
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Hey ZL: I will catch up on my eM’s this weekend and check in with you. I may be out of touch on Sunday but if I can call I will, otherwise I’ll check in through eM.
Oh…wanted to comment about the DPL light therapy. We have a client who bought something like this but he paid a fortune, and his skin is amazing. I wonder how well this works. I watched the video from the website, and I so wish that the people who are raving about this product had before and after vids so we could see the changes. I don’t trust still photos – too easy to touch up. Yes…Sharpei’s look great with wrinkles. I personally like laugh lines. I know some beautiful women who to me look way better than they did in high school or college. Anyway, enjoy your Saturday and hopefully we can find some time tomorrow!
Anna & Peter: This is quite a storm. It looks like Typhoon Melor has unfortunately made it’s way to Guam. I hope that everyone on the island is staying dry and protected. Looking forward to hearing from you again. Be safe.
Herald: Your comment so resonated with how I feel too. Everything you said in my opinion was spot on. You made me smile when you said, “I need a drink”. I am not very much a drinker but sometimes, I wish I did drink more. Love the relaxing carefree way it makes me feel but hate the foggy-headedness (I know it’s not a word but it describes exactly how I feel afterwards :) Did you know that when the economy is down, people go out drinking more often? The bars are raging so says a friend of mine who owns a very well know bar here is SF. Where people get the money to go out drinking in SF is something I wonder when they have no job. But I hear people will spend their last 100 bucks leaning over the bar.
Susan and Janet: I know if must be tough living with rabidly racist relatives ( hate the meaning of that, but love the alliteration!), but this has got to stop. Staying silent no longer serves society. (another alliteration to love :) Seriously, our country is going down. We finally have a president who truly cares, we finally have a president who can do something for the people, we finally have a president who can make great changes for our country, and there are those who want to see him drastically fail on all accounts. We can’t let this happen. Is our country not worth standing up for?
If white women are the dumbest, then stand up and be a smart white woman, stand up and be a voice for the dumb white women, be an example of how smart a white woman can be. Be a smart white woman encouraging the dumb ones to speak up. Together women can make a difference.
Anonymous #7: Thanks for giving me and my readers the update on Medicare. I am relieved that the Premium Fairness Act passed, and I am all for HR3200. We will continue to push for a better health care system.
Matt: Your comment intrigued me so I googled Stacie Ritter. This is just an excerpt of what I found. For the entire article click: Huff.
Both of her daughters, now 11, were diagnosed with leukemia when they were four. They both needed stem cell transplants and other cancer treatments. They did survive, but the treatments damaged the glands that control their growth beyond repair. Their doctors indicated that in order for them to continue to grow normally, they needed regular growth-hormone injections.
But there was a problem. Each time Stacie took her daughter to the doctor for shots, it cost her $440. CIGNA refused to pay.
Stacie and her husband were not about to deny their daughters the right to grow up, so they spent every spare dollar on the injections. In the end, those expenses — coupled with other costs they had to pay for the twins’ cancer treatment — forced them to declare bankruptcy.
Their story is not unusual. Sixty-two percent of all bankruptcies are caused by medical bills — and often when an insurance company denies care. People think they are doing the responsible thing for their families. They have health insurance, but then a tragic illness hits and they lose everything anyway.
CIGNA didn’t refuse to pay for the kids’ hormone injections because it hates kids, or wanted the twins to stop growing. It denied the shots because its principal mission has nothing to do with those kids’ health — it is making money.
Ed Hanway, CIGNA’s CEO, can tell you about that. In 2008, Ed made $12.2 million. That’s $5,883 an hour. Ed makes more in one day than the average worker makes all year long. He makes 30 times more than the President of the United States.
Ed makes enough each day to cover 106 of those shots.
Cl, ND, NR: I only have one thing to say, “We need to stand up and ’palienate’. In other words….alienate Palin. Her power is tooo scary and would ruin this country for good. But I seriously don’t think it will come to that. If it does, we are truly a stupid country. Ok, I had more than one thing to say :)
Hi Ruth: Good to hear from you again. I bet your job is so rewarding. Thanks for the update on the girls. I am so delighted that they are finally able to be little girls. Please give them all a big hug from me. I am so proud of their strength and so excited about their future.
Happy to hear that you are a faithful reader. Thanks for being here. And you are amazed? During the week, I wake up at 6:30 am usually, thinking, “Okay, is this going to be an easy morning for me or ??” I love seeing a lot of comments but it certainly adds to my write when there are. No complaints. Just the detailed side of me that doesn’t like when I can’t address everyone that I’d like to in one sitting.
So that being said, you are correct, I am very busy, and recently I have started a new business that I am excited about. Anyway, it would be an honor to meet you some day and I hope that we do get the chance to find out just how much we do have in common :)
Readers: I hope that you have a beautiful, fun, what-ever-you-wish kind of Saturday! See ya tomorrow.
Peace out….
Gratefully your blog host,
michelle
Aka BABE: Your Bad Ass Bitch Editor
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October 4th, 2009 at 8:23 am
Thanks Michelle for that article. My mother almost lost her life because of that mat. I called by brothers and told them about it. They too were not aware of it.
Laura
October 4th, 2009 at 8:25 am
Michelle
I’ve been trying to get in all day yesterday. I know that it is not you fault. Just thought I would tell you that it has been difficult getting in.
Hafa adai
October 4th, 2009 at 8:45 am
Michelle
Your comment to Matt is so right on. I have spent so much money on medical issues. My family is very near to bankruptcy. I can not understand these people who demonstrate for the status quo.
Who are these fools who don’t want the government in our health plans. The government is the most important contributing member of our health care when we get old and when there is nothing else but emergency treatment.
Does the word medicare mean anything to these fools? Without government intervention in our health care we would all die a swift death as soon as we were no longer productive to the corporations who are pushing the anti government health care option.
Penny
October 4th, 2009 at 8:46 am
Profit from Selling Your Life Insurance
Lee Slavutin, MD, CLU
Stern Slavutin-2 Inc.
Do you have a life insurance policy that you no longer need? Do you have a parent with an old policy who needs more income? In such situations, selling the policy to a third party who will keep it in force is a possibility. Even after you pay the tax on the sale, there might be more money remaining than would be the case if the policy were surrendered to the insurance company. What you need to know…
LIFE SETTLEMENTS
Today, there is an active market in “life settlements,” purchases of insurance policies from individuals.
Seller: Typically, the seller will be age 65 or older with a health condition, such as cancer, heart disease or diabetes. The illness need not be terminal, but there must be a shortened life expectancy.
Buyer: Several life insurance policies will be bought by companies known as life settlement providers, packaged as securities and sold to investors. As the insured individuals die, investors will receive shares of the death benefits.
TAX TREATMENT
For most life settlements, the tax consequences will depend on the amount paid and the seller’s cost basis in the policy.
Determining cost basis: This usually will be the total amount of premiums paid for the coverage. If any withdrawals or cash dividends have been received, they will be subtracted from the basis.
Example: John Jones, age 67, is covered by a $1 million permanent life insurance policy (one that has an investment account known as the cash value — explained below). Over the years, he has paid $150,000 in premiums and has taken a $10,000 withdrawal.
John is widowed, and his children are financially comfortable, so this policy is no longer necessary.
An investor group evaluates John’s medical history and estimates his life expectancy. Based on this estimate, it offers John $140,000 for the policy.
Result: John’s basis in the policy is $140,000 — $150,000 paid in premiums minus a $10,000 withdrawal. With a $140,000 basis and a $140,000 selling price, no taxes will be due. If John had paid only $100,000 in premiums and taken a $10,000 withdrawal, giving him a $90,000 basis, there would be tax due on $50,000 of income, assuming a sale for $140,000.
Settling up: The tax rate that applies to that $50,000 of income will depend on the type of life insurance policy…
Permanent life insurance. These are whole life, universal life and variable life policies. They have an investment account known as the cash value.
When a policy is sold, the buyers become the owners. The owners name a new beneficiary. The insurance company has no say. Premiums are paid by the new owners on the existing schedule. When such a policy is sold by the original owner at a gain, the difference between the basis and the cash value will be ordinary income, taxed at a rate as high as 35%. Although the IRS has not issued a definitive pronouncement, any excess received in the sale most likely will qualify for the bargain 15% rate on capital gains.
Example: Suppose the policy’s basis is $90,000, the cash value is $110,000, and the purchase price is $140,000. Of the $50,000 gain, the first $20,000 ($110,000 cash value minus the $90,000 basis) will be taxed as ordinary income while the remaining $30,000 will probably be a long-term capital gain.
Term life insurance. There is no law or IRS pronouncement that gives a clear ruling on the taxation of gain when a term life policy is sold. When a term life policy is sold, the taxable income is most likely a long-term capital gain. The gain is the sales price over basis.
Loophole: Purchases of life insurance policies from terminally ill individuals are known as “viatical” settlements. There is no federal income tax on these transactions.
Required: To get the tax exclusion, the seller must have a physician’s certification that the insured individual’s death is reasonably expected within 24 months. The payment must come from a “viatical settlement provider,” who will report the amounts received by the insured individual to the IRS on Form 1099-LTC, Long-Term Care and Accelerated Death Benefits. Viatical settlement providers generally need licenses in the states where they do business.
WHAT BUYERS WANT
A life insurance policy will have the most appeal to buyers if it was bought when you were considerably younger, and healthier, than you are now. If so, it will have premiums that are low in relation to the death benefit.
If the insured individual’s health has deteriorated, those low premiums will be a good deal for the buyer — who will pay premiums based on the insured individual’s previous good health and who will stand to benefit from the insured individual’s shortened life expectancy. Thus, as your health declines, the resale value of your life insurance policy rises.
Price points: The shorter the seller’s life expectancy, the greater the purchase price as a percentage of the policy’s face value.
Example: Wendy Brown has a life expectancy between three and four years. An investor group might offer 40% of her policy’s face value.
Say Wendy has a $300,000 life insurance policy. She might get $120,000 (40%) because the investors hope to collect $300,000 in a relatively short time.
On the other hand, suppose Victor Green has a 12-year life expectancy. He might be offered only $45,000 (15%) for a $300,000 policy.
The type of policy you hold also may affect the price you receive. Universal life (permanent life insurance that gives the owner flexibility in paying premiums) and convertible term life (term life insurance that can be switched to permanent life, at the owner’s request, without a medical exam) are the most attractive policies to potential buyers. Buyers like these types of policies because they generally require relatively low premiums, compared with the death benefit.
Safety first: If you want to put your insurance policy up for sale, work with an experienced life settlement broker, one who will offer the policy to at least 20 potential institutional buyers. Your own life insurance agent, your attorney or your accountant may provide a referral.
To protect yourself, request that an unrelated third party, such as an attorney or bank, hold the buyer’s funds in escrow. Then your insurance policy can be placed in escrow and the sale can be concluded.
This process can make sure that the money really is available and, since you are not dealing directly with the buyer, that your privacy is not unduly compromised.
Tax Hotline interviewed Lee Slavutin, MD, CLU, chairman of Stern Slavutin-2 Inc., an insurance and estate-planning firm, 530 Fifth Ave., New York City 10036, http://www.sternslavutin.com. Dr. Slavutin is author of PPC’s Guide to Life Insurance Strategies (Practitioners).
October 4th, 2009 at 9:27 am
Hafa adai
Sometimes I use quotes about Guam’s history from a source that I may have forgotten to give credit to. Here is my correction. Thanks Michelle for allowing me to do it here.
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Editor’s note: “This month in Guam history” is a weekly feature and the result of a partnership between the Pacific Daily News and the Guam Museum.
Tony Palomo is an author and historian.
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Having said that allow me to address all those who emailed me hate because I said what I did about the whites that do hateful things to Chamorros and the rest of Guam’s OTWs.
Yes, I know many of you are the products of white parents or have white relatives. So do I. So does 95% of Chamorros. Before that it was Spain’s influence. It is hard for us not to since the white man killed off all our males and raped our females to produce the people we are today.
Read your history. Spain landed gathered up all the males killed them and bred our women like so much cattle. The whites control what they say happened historically. But you do the math when a population is reduced from 50,000 to 7,000 supposedly do to a Spanish/Chamorro war. A war waged by people with spears against muskets and cannons. It is interesting how whites call it a war when they are the ones committing atrocities and an act of infamy when someone does something to them.
So Chamorros have white blood running through our veins. So do blacks, latinos, Jews, etc, etc. but does that stop the racism and bigotry that whites practice towards them?
Have you been reading this blog? Does the word “mud” people mean anything to you. I’m not saying every white person is evil, a bigot or a racist. I am saying that Guam is the victim of white racism in the US Senate. That does not mean that we can not recognize the evil that white men do to our island every day.
I am saying that Guam is the victim of white racism in the US Senate. It has happened before:
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October 1914 — 95 years ago — Naval authorities in Washington rejected petition to grant U.S. citizenship to the people of Guam. In a letter from Acting Secretary of the Navy Franlklin D. Roosevelt to Naval Gov. M.J. Maxwell, Roosevelt said “The (Navy) Department does not consider that the public interest make it desirable at this time to take up the general question of citizenship of persons residing at Guam.” The Navy’s position was reaffirmed in 1933 when Roosevelt became president of the United States.
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I’ll leave it to you sensitive asshole who wrote calling me names to explain to your “almost” (muds to the racists whites) white relatives why in 1914 to 1949 the US senate and its white presidents refused to grant the people of Guam US citizenship.
It didn’t happen until 1950. Guam has been the “property” of the US since 1898. I’ll leave it to you so proud to have white blood to explain it.
Peter
October 4th, 2009 at 9:29 am
Michelle
I tried to get in yesterday to thank you for your information about Toyota. I and my family and friends hadn’t heard about it. I was told to check out your blog.
I like it. You have earned a new reader.
Clark
October 4th, 2009 at 9:29 am
Michelle
I tried to get in yesterday to thank you for your information about Toyota. I and my family and friends hadn’t heard about it. I was told to check out your blog.
I like it. You have earned a new reader.
Clark
October 4th, 2009 at 9:31 am
I am not in america. I did not hear about this problem with toyota. I will tell everyone I know.
Thanks
October 4th, 2009 at 9:33 am
Hafa adai Michelle
Thanks for the info about toyota. There are a lot of them here on Guam. My father said he would check mine out for me.
Cloea
October 4th, 2009 at 9:44 am
Michelle
Wow! I hadn’t heard that about Toyota. I left mine back home. I drive a Citroen Hypnos now that I am in Paris. But I informed my sister to have the Toyota checked and to read your blog.
She called to say she loved your blog. I promised to introduce her. So. Her name is Evelyn. She is 23 and one of those “accidents” that happens to a couple when the woman is 49 years old. But she has been loved and appreciated since her birth. It’s kind of nice having a sister the age of one of your children.
So that is done Evelyn. Now you are on your on.
Love
Ruth