IN THIS ISSUE MAY 2018 - VOL 14 ISSUE 5
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The Data Privacy Officer: Who Should It Be Under GDPR?
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Spotlight: Insider Interviews Darren Marsh Of SLB Insurance Group
Hausfeld Achieves Historic Healthcare Ruling In BC/BS Antitrust Litagation
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Insider Advisor Cycling: A Safe Way To Get To Work?
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California’s Davey Jones Pushes Insurers To Cover Cannabis Businesses
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5 Ways To Parlay Patent Infringement Into Profits - Thinking Outside The Box
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Watch These Really Bad Snow Drivers And Hope They Are Not Your Clients
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“Dismantle Whiteness?” News From The Lunatic Left
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N. Carolina Woman Charged With Filing 287 Fraudulent Insurance Claims!
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How (And Why) To Write A Press Release - A Short Primer
5 Clever Ways To Prevent Spying - And 1 Way To Spy
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Insured Must Treat Insurer With Good Faith & Fair Dealing
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NAIC Unveils Distracted Driving Awareness Campaign
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SLB Insurance Group Makes Sun Sentinel’s Best Place To Work List 2nd Year In Row
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LAAIA’s 48th Annual Convention Scheduled For August 1st-4th
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Florida Disaster Fraud Action Strike Team Brings $62K Insurance Fault To A Halt
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Big Win For Great American Ins. Co. In Dispute With Gloria Estefan
Tesla Blames Driver; Defends Its Auto-Pilot After Fatal Crash
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eith B. Daniels, Jr., J.D. is a graduate of the University of Wisconsin Law School and a U.S. Army veteran and resides in the Greater Minneapolis-Saint Paul area. He has been involved with cyberliability and internet security issues for about 20 years working with Lloyd’s of London and several domestic insurance companies and their insureds.
Kim Komando Barry Zalma
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TECHNOLOGY
4 CLEVER WAYS TO PREVENT SPYING AND 1 WAY TO SPY
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Really Cool Tech Info - by Kim Komando
ybersecurity is much like driving a car: one accident can change everything, sending ripples of misfortune through every aspect of your life. Protecting your devices may seem excessive, even silly. Do you really need two-factor identification? Aren’t all those complicated passwords just a little annoying? Isn’t public Wi-Fi use acceptable in small doses?
But the risks are serious – and they have made smart TVs extremely controversial. It’s now common knowledge that the technology is susceptible to ransomware. In addition, certain models are susceptible to hacking, allowing cybercriminals to remotely monitor your activities in real time, using a microphone and possibly a camera in the busiest room in your home.
Then someone drains your bank account. Or your identity is stolen. Or your credit score plummets, and you have no idea why. You would do anything to go back in time. Here are five spy hacks to do now before it’s too late.
It may seriously hamper your enjoyment, but you’ll sleep better knowing that your TV isn’t doubling as surveillance equipment.
computer and television into one super-machine. These are the two 1. Stop your smart TV from devices that dominate most our conscious lives, and the interface spying on you of a computer can radically boost On paper, the smart TV is a thrilling your entertainment experience. idea: Combine the best parts of a MAY 2018
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Click here for step-by-step instructions for switching off the snoops in your smart TV. See Kim Ko.mando Pg 38
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CLAIMS & THE LAW
INSURED MUST TREAT INSURER WITH GOOD FAITH & FAIR DEALING Expert Analysis & Commentary by Barry Zalma, Esq., CFE Insured Must Cooperate in Insurer’s Investigation of Claim
indemnity. Since many insureds think insurers are evil and can be threatened to pay any claim presented if threatened with bad faith, when a claim is denied for he covenant of good faith failure to cooperate the insured and fair dealing goes in will usually sue. both directions. Neither party to the contract of insurance Join Barry Zalma’s Blog: may do anything to deprive http://www.zalma.com/blog the other of the benefits of the contract of insurance.
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When an insured makes a first party claim the insured is obligated to cooperate in the investigation of the insurer and provide documents required to be produced by the insurer. In addition the insured can be required to provide sworn testimony about the loss. The cooperation requirement is a condition precedent to
In Ngoc Tran v. Federal Insurance Company, Case No. 17-3921, United States Court Of Appeals For The Sixth Circuit (April 18, 2018) the Sixth Circuit dealt with an interesting case presented by Ngoc Tran. She owned a great deal of gold jewelry: $374,330 worth, to be exact. A few years ago, she decided it was time to insure her collection. She
purchased a valuable-articles policy from Federal Insurance Company (“Federal”). About eight months later, Tran reported the jewelry stolen and sought to collect on the policy. SUSPICIOUS CLAIM Federal suspected that the burglary was an inside job. For starters, the responding officer did not think the crime scene— which would have required the purported burglar to make a rather acrobatic leap through a window—looked like a break-in. And Federal spotted a number of other inconsistencies and oddities in Tran’s story, including the substantial disparity between her reported annual income ($0) and monthly living expenses (sometimes in excess of $5000). As
Barry Zalma, Esq., CFE, practiced law in California for more than 43 years as an insurance coverage and claims handling lawyer. He now limits his practice to service as an insurance consultant and expert witness specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He founded Zalma Insurance Consultants in 2001 and serves as its only consultant. 6
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a result, the company asked Tran to provide various business and personal records to corroborate her story. For one reason or another, Tran failed substantially to do provide the business and personal records. After several unsuccessful attempts to obtain the records, Federal denied Tran’s claim, citing her “failure to cooperate.” THE SUIT Tran filed suit, seeking to compel Federal to cover the claimed loss. The district court granted Federal summary judgment, holding that Tran had failed to cooperate with the company’s investigation. Tran appealed.
When Federal eventually received some records Tran refused to confirm their accuracy. For example, the company obtained a few years’ tax returns from Tran’s accountant, but Tran would not verify that they accurately represented her income.
Federal Insurance was confronted with a record that suggested Tran had no annual income, yet somehow maintained monthly expenses sometimes exceeding $5,000 around the time of the loss. Tran’s obstinacy frustrated the company’s ability to determine Tran’s motive, alibi, or any other aspect of her involvement (or noninvolvement) in the alleged burglary.”
ANALYSIS Insurance policies often include “cooperation clause[s]” that impose certain duties on the insured party in the event of a loss. Tran’s policy had a cooperation clause requiring her to “produce all records and documents” that the insurance company requested. Because Tran failed to produce many requested documents, Federal maintains that it does not have to pay out her claim.
MAY 2018
Under Ohio law, an insured party’s failure to comply with a cooperation clause lets the insurer off the hook if the insured’s noncooperation result[s] in material and substantial prejudice to the insurance company.
Federal repeatedly requested records from Tran, and Tran repeatedly failed to produce many of those records. Initially, Tran claimed that she did not have the records. Then, instead of retrieving copies of those records from third parties—such as her bank and accountant—she gave Federal written authorization to get the documents. The problem is, even with Tran’s written authorization, many of the third parties would not provide the records directly to the company. Table of Contents
In another instance, Federal got Tran’s phone records from AT&T, but Tran claimed not to remember the identities of eight key telephone numbers listed in the log. And when Federal obtained win/loss statements from local casinos (Tran’s live-in boyfriend was a gambler), Tran disputed the statements’ accuracy.
Federal was never able to obtain, in the course of its claims, investigation Tran’s complete bank account information, as well as two years’ tax returns. Tran initially told Federal that she did not have any bank accounts. After further questioning, she admitted to having two accounts, but she still never gave Federal complete account information. Tran also claimed that two years of missing tax returns simply did not exist, but did not offer See Zalma Page 36 www/underwritersinsider.com
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NEWS
NAIC UNVEILS DISTRACTED DRIVING AWARENESS CAMPAIGN nationwide, and hopefully help In addition, higher accident rates curb distracted driving across the result in higher insurance premiums country.” for many. In 2009, average annual insurance premiums had decreased Keep the Road Code aims to to $787 from $843 in 2004. Then the educate consumers on the trend reversed. A 2015 NAIC report ASHINGTON (April dangers of driving while distracted shows that average expenses had 12, 2018) — April is whether it is from impairment, climbed by 12 percent. Distracted Driving texting or doing anything that Awareness Month, takes their eyes off At the same time the National and the National Operating a the road or hands Highway Traffic and Safety Association off the wheel. Administration (NHTSA) began vehicle is the Distracted driving tracking increases in motor of Insurance Commissioners most dangerous is a serious public vehicle accident fatalities caused (NAIC) today safety concern. by distracted driving — primarily and potentially announced the Ten percent of involving cell-phone use. In 2010, launch of Keep deadly activity most fatal accidents in auto insurance rates rose for the the Road Code, consumers do every the U.S. involve at first time in six years. They’ve gone a new campaign day,” McPeak said. least one distracted up each year since. that focuses driver, killing “Accordingly, I’ve on preventing p p r o x i m a t e l y “Operating a vehicle is the most focused the NAIC’s a3,500 distracted driving. people each dangerous and potentially deadly consumer education year. activity most consumers do every “We know that efforts this year on day,” McPeak said. “Accordingly, there has been a It takes focus, I’ve focused the NAIC’s consumer the prevention of significant increase practice and efforts this year on the distracted driving.” skill to safely education in distracted prevention of distracted driving.” driving accidents operate a vehicle and fatalities since 2008,” said moving 80 feet per second The NAIC’S Insure U website Julie Mix McPeak, NAIC President (55mph). Distractions don’t help. includes information on the and Tennessee Commissioner of Researchers and state insurance dangers of distracted driving. Commerce and Insurance. “It’s an regulators all point to distracted Readers can commit to and share, issue close to me because I’m a driving as a major cause of more the ‘Keep the Road Code’ pledge mom with a new driver at home. frequent, more costly and too — a promise to stay focused and I’m grateful for my platform as often deadly accidents. responsible when behind the NAIC President to raise awareness wheel.
Keep the Road Code’ invites people to commit to safe driving choices
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MAY 2018
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NEWS
SLB INSURANCE GROUP MAKES SUN SENTINEL’S BEST PLACE TO WORK LIST 2ND YEAR IN ROW Providing a pleasant & productive workplace a priority to the firm.
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very year, for the past 4 years, The Sun Sentinel surveys 18,000+ employees in the South Florida region to determine the best places to work. After receiving 11,000 responses for 2018, the paper compiled the results and published the winners. Three size-category are ranked: Small organizations have fewer than 125 employees in South Florida; midsize have 125-399; large have 400-plus.
the workplace a comfortable and fun place to work. We would like to think we have accomplished this by the results of our ranking.”
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SLB Insurance Group proudly announced it has been ranked #20 Top Workplace in South Florida by The Sun Sentinel in the small organization category - the 2nd year in the row the firm made the list. No other insurance firm made it into the top 20.
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FLORIDA CFO PATRONIS RELEASES TOP 10 MOST WANTED CRIMINALS
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ALLAHASSEE, Fla. – Continuing his work to crack down on insurance fraud, Chief Financial Officer Jimmy Patronis today released his top 10 most wanted insurance fraud criminals and calls on local communities to help put these individuals in jail. Each of these criminals are wanted for different types of insurance fraud crimes, and with the community’s help these criminals can be brought to justice. “Insurance fraud drives up the cost of insurance on all Florida families and businesses and the criminals behind this type of activity need to be put in jail,” said CFO Jimmy Patronis. “An aware and engaged community bolsters our fraudfighting forces. Insurance fraud is not a victimless crime and it’s important we, as a community, protect each other from those who engage in fraudulent behavior.” The following individuals are wanted for various insurancefraud related crimes: Anthony Fitzgerald Phillips, last known address Fullerton, CA: Grand Theft.
Huberto Del Sol Puerto, last known address Hialeah/Miami, FL: Organized Fraud ($50,000 or More), False and Fraudulent Insurance Claims, Grand Theft (3rd Degree), Money Laundering, False Statement (Jurisdiction of Department of State).
known address Coral Gables, FL: Racketeering, Grand Theft (2 Counts).
Gabriel Sanchez, last known address Miami, FL: Racketeering.
Javier Lopez Rivero, last known address Miami, FL: Racketeering, Grand Theft, False and Fraudulent Insurance Claims.
William Brenes, last known address Hillsborough County: Fraudulently Presents a False Statement ($100,000 or more). Jose Alexis Orellana Ramos, last known address North Lauderdale, FL: Organized Fraud ($50,000 or more), Grand Theft (1st Degree, $100,000 or more), Workers' Compensation Fraud (Over $100,000). Joseph J. Beckford, last known address Carrollton, GA: False and Fraudulent Insurance Claim. Bernardo Romero-Ortiz, last known address Orlando, FL: Workers' Compensation Fraud ($100,000 or more); Organized Fraud. Roland Terencio Delgado, last
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Paul Emmanuel Pierre, last known address Orlando, FL: Racketeering, False and Fraudulent Insurance Claim.
CFO Patronis’ Bureau of Insurance Fraud works to investigate alleged acts of insurance fraud, including licensee, healthcare, application, vehicle, homeowners, commercial, disability, arson, and life insurance fraud. CFO Patronis’ Bureau of Workers’ Compensation Fraud investigates suspected criminal violations of Florida’s Workers’ Compensation Laws and participates with multiple state agencies to prevent and prosecute unlicensed contractors, businesses employing workers without appropriate workers’ compensation coverage, employees who file false on-thejob injuries or exaggerate their injuries, and employees working other jobs while receiving workers’ compensation benefits. MAY 2018
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NEWS
FLORIDA DISASTER FRAUD ACTION STRIKE TEAM BRINGS $62,000 INSURANCE FRAUD SCHEME TO A HALT Central-Florida Agent With Expired License Admits Stealing $60,000+
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AKE MARY, Fla. – CFO Jimmy Patronis and the Department of Financial Services’ Disaster Fraud Action Strike Team (DFAST) announced the recent arrest of Michael Christopher Hensley, owner of BOSC Insurance Company and Hensley Insurance Company. Hensley admitted to stealing $61,954 in insurance premiums between 2011 and 2018 in Orange County.
commercial businesses to procure property and casualty insurance under both of his companies BOSC and Hensley Insurance. Hensley has had no active appointments on his license since 2010, making his licensed expired as of 2014 and unlicensed as of March 9, 2015.
property sustained extensive damage caused from the storm. The business owner attempted to contact his insurance agent, Hensley, for guidance on the claim process. After multiple calls and no response from Hensley, the owner contacted the listed insurance carrier on the Certificates of After the impacts of Hurricane Insurance that Hensley had been Irma, a commercial business providing the business with
Hensley was arrested by the Lake Mary Police and was booked into jail on the counts of organized scheme to defraud and communications fraud, grand theft, misappropriation of insurance premium funds, unlicensed activity-MSB.” After an investigation by CFO Patronis’ DFAST, it was revealed that Hensley solicited various 14
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Mr. Zalma recently published on Amazon.com with links at the Zalma Books site with the following volumes: Table of Contents
MAY 2018
companies information and transfer it to Certificates of Insurance and provide the fraudulent documents to the unsuspecting businesses as proof of insurance. Hensley further admitted to using the money that he obtained from the victim businesses for his own personal benefits.
The department’s anti-fraud strike team consists of three teams that are working in areas heavily impacted by Hurricane Irma including South Florida, MiamiDade and Monroe counties; Southwest Florida, including Lee and Collier counties; and Central Florida, including Polk and Orange counties.
They are trained insurance fraud investigators with specialized Hensley was arrested knowledge of property & casualty April 6, 2018 by the Lake fraud and workers’ compensation Mary Police Department fraud and to ensure that lawand was booked into the breakers are prosecuted to the Seminole County Jail on fullest extent of Florida law, CFO the counts of organized Patronis is working directly with Michael Christopher Hensley scheme to defraud and dedicated prosecutors housed (Florida Office of Chief Financial Officer) communications fraud, within each of the respective State annually since 2012. An insurance grand theft, misappropriation Attorney’s Offices. representative with the listed of insurance premium funds, company confirmed the business unlicensed activity-MSB. was not insured with them nor had he ever been insured with This case will be prosecuted by the insurance company. Upon the Office of the State Attorney, this revelation, the owner of the 9th Judicial Circuit. Hensley could business contacted the CFO’s face up to 30 years in prison. Orlando Field Office for assistance. Investigators believe Hensley may As a result of the investigation, have defrauded additional victims Hensley admitted to collecting and encourage members of the monthly insurance premiums community who have purchased payments from nine different property and casualty insurance commercial business and from Michael Christopher Hensley, providing them with false BOSC Insurance Company or Certificates of Insurance Coverage. Hensley Insurance Company Hensley went to various insurance to contact the Department of company’s websites and made Financial Services’ Insurance copies of their general liability Fraud Hotline by calling 1-800policies. He would then take the 378-0445.
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THE INSIDE TRACK - BREAKING NEWS liability claims related to dog impression that Autopilot bites and other dog-related is unsafe will cause harm to injuries in 2017, according esla is aggressively others on the road.” to the Insurance Information defending its autopilot, Institute (I.I.I.) and State I.I.I. & State Farm a driver-assistance system Farm®. • An analysis of homeowners developed by the company Release Dog Bite Data insurance data by the I.I.I. and installed in its Tesla found that the number of brand vehicles after a recent ccording to a recent dog bite claims nationwide fatal crash and the family of increased to 18,522 in 2017 report by the Insurance the deceased lawyers up. compared to 18,123 in Information Institute: Walter Huang died on March 2016—a 2.2 percent increase. 23, on a clear day with 100s • Homeowners insurers paid • The average cost per claim for the year increased by 11.5 of feet of visibility. According out over $686 million in percent. The average cost to Tesla, Huang did not have his hands on the steering wheel for six seconds prior to the accident. From Tesla’s statement: “The only way for this accident to have occurred is if Mr. Huang was not paying attention to the road, despite the car providing multiple warnings to do so,” the statement said. “The fundamental premise of both moral and legal liability is a broken promise, and there was none here. We empathize with Mr. Huang’s family, who are understandably facing loss and grief, but the false
Tesla Blames Driver
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THE INSIDE TRACK - BREAKING NEWS establishing multiple reasons Plaintiffs’ property damage is not covered. Ultimately, the evidence indicates the damage occurred gradually over an extended period of time and Gloria Estefan that Plaintiffs knew husband Emilio, suffered a portion of the about the building’s gradual building collapsing, the deterioration well before couple made a claim to their the date they allege the insurer Great American which collapse occurred. As such, had insured the property Plaintiffs cannot prove that for $2.5 million. When any portion of the Building the insurer failed to affirm abruptly fell down or caved in coverage, Estefan sued and during the 2013 Policy period a Florida court ruled in the and, thus, cannot survive insurer’s favor stating, “There Great American’s motion is coverage for physical loss for summary judgment.” caused by a collapse, which is The ruling was a summary defined as an “abrupt falling judgment dismissing the down or caving in. However, case. Plaintiffs have provided no affirmative expert opinion 2 Drinks Max... or documentary evidence showing that the alleged n what was described damage actually satisfies the as “a massive and very criteria for a covered collapse impressive study,” British under the 2013 policy,” said researches determined that the ruling. In contrast, Great you will shorten your life by 30 American has produced minutes for every daily glass two expert opinions of wine (or beer or whatever) documentary evidence, and over two.Read More testimony from fact witnesses
paid out for dog bite claims Big Win For nationwide was $37,051 in Great American 2017, compared with $33,230 in 2016. The average cost Insurance per claim nationally has risen more than 90 percent hen a Miami from 2003 to 2017, due to increased medical costs as B e a c h well as the size of settlements, restaurant owned judgments and jury awards by singer Gloria given to plaintiffs, which are Estefan and her trending upwards.
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Image Credit: Creative Commons
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California continued to have the largest number of claims in the United States, at 2,228 in 2017, an increase from 1,934 in 2016. The state with the second highest number of claims was Florida at 1,345. Florida had the highest average cost per claim at $44,700. The trend in higher costs per claim is attributable not only to dog bites but also to dogs knocking down children, cyclists, the elderly, etc., which can result in injuries that impact the potential severity of the losses.
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ANALYSIS
THE DATA PRIVACY OFFICER: WHO SHOULD IT BE UNDER GDPR? Handle EU Citizen Data? You May Need A Data Protection Officer. By Keith B. Daniels, J.D.
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o comply with the General Data Protection Regulations, does your company need to have a Data Protection Officer (“DPO”)? What will the DPO do? Who should be the DPO?
With new obligations on such matters as data subject consent, data anonymization, breach notification, trans-border data transfers, data privacy impact assessments, and appointment of data protection officers, to name a few, the GDPR requires companies handling EU citizens’ data to undertake major operational reform. One big issue that company’s need to deal with is the issue of the DPO.
alike must designate a data protection officer (“DPO”). Under Article 37, DPOs must be appointed when the core activities of the controller or the processor involve “regular and systematic monitoring of data subjects on a large scale” or where the entity conducts large-scale processing of “special categories of personal data” (such as that revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, and the like, defined in Article 9).
Article 37 does not establish the precise credentials a DPO must have but does require that they have “expert knowledge of data protection law and practices.” The level of expert knowledge “should be determined according to the data processing Data controllers and processors operations carried out and the
protection required for the personal data processed by the controller or the processor.” The DPO’s tasks are delineated in the Article 39 to include:
• Informing and advising the controller or processor and its employees of their obligations to comply with the GDPR and other data protection laws. • Monitoring compliance with the GDPR and other data protection laws, including managing internal data protection activities, training data processing staff, and conducting internal audits. • Advising with regard to data protection impact assessments when required under Article 35. • Working and cooperating
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eith B. Daniels, Jr., J.D. of CyberCounsel is a graduate of the University of Wisconsin Law School and consults on insurance coverage, cyber security preparation and privacy, including compliance with the GDPR. He has practiced law in Wisconsin and Illinois. He has written several articles on the GDPR which have been published in the USA and in Europe. He currently offices in New Richmond, WI and Minnetonka, MN. He can be reached at 1+715-379-6511 or at keith@mycybercounsel.com. 18
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with the controller’s or processor’s designated supervisory authority and serving as the contact point for the supervisory authority on issues relating to the processing of personal data. • Being available for inquiries from data subjects on issues relating to data protection practices, withdrawal of consent, the right to be forgotten, and related rights. DPOs have many rights in addition to their responsibilities. They may insist upon company resources to fulfill their job functions and for their own ongoing training. They must have access to the company’s data processing personnel and operations, significant independence in the performance of their roles, and a direct reporting line “to the highest management level” of the company. DPOs are expressly granted significant independence in their job functions and may perform other tasks and duties provided they do not create conflicts of interest. Job security is another perk; the GDPR expressly prevents dismissal or penalty of the DPO for performance of her tasks and places no limitation on the length of tenure. A company with multiple subsidiaries (a “group of MAY 2018
undertakings”) may appoint a single DPO so long as he is “easily accessible from each establishment.” The GDPR also allows the DPO functions to be performed by either an employee of the controller or processor or by a third-party service provider.
Data protection has historically been a legal function in Europe, not an IT function. Because of this, and because legal knowledge will be a critical success factor for DPOs, many European companies are placing the DPO in the legal department. “ If a company has a “main establishment” in the EU, then putting the DPO in that same location makes sense. The DPO will speak the same language, be better able to have a relationship with the regulator and understand that member state’s interpretation of the GDPR. Several American multinationals with data processing and related decisionmaking centralized in the U.S. are placing the DPO at their American headquarters.
UK, Switzerland, or Norway, the advantages of a main establishment are not possible because these countries are outside the EU or soon will be. Data protection has historically been a legal function in Europe, not an IT function. Because of this, and because legal knowledge will be a critical success factor for DPOs, many European companies are placing the DPO in the legal department. American companies are more often putting the position under their Chief Privacy Officer, or with internal audit, enterprise risk management, or ethics and compliance. Given the legal and compliance requirements, putting this position into an IT function, such as a CIO or CISO is not the best fit although the DPO should be able to coordinate and collaborate as necessary with the IT leadership.
If a company needs to hire a DPO, it may do so with an internal person or hire an outsider from a third-party provider. In any case, the GDPR requirements are best served by having a DPO in the EU state which is the main establishment (in most cases) and that the person working in the DPO capacity have more than just an information technology background. That may be helpful, but they also should have legal and regulatory expertise in order For multinationals with European to fulfill the duties of the operations centralized in the DPO adequately. Table of Contents
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NEWS
HAUSFELD ACHIEVES HISTORIC HEALTHCARE RULING IN BLUE CROSS BLUE SHIELD ANTITRUST LITIGATION
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IRMINGHAM, Ala., April customers, both by allocating 05, 2018 -- On Thursday, the markets in which they sell the Honorable David health insurance and capping R. Proctor granted Plaintiffs’ the amount of unbranded Motion for Partial Summary health insurance they offer. Judgment and ordered that Hausfeld represents a class of agreements among Blue Cross subscribers of health insurance Blue Shield entities across the alleging that these rules have country to allocate markets and artificially inflated premiums limit competition and decreased will be reviewed consumer choice Our case as per se violations in the market for alleges that, health insurance. of the Sherman Act. Judge Proctor for decades, the c o n c l u d e d : In 2017, the parties Blue Cross Blue “Plaintiffs have briefed whether presented evidence Shield system has the challenged of an aggregation rules should be operated as an of competitive reviewed under r e s t r a i n t s … illegal association a per se standard which, considered that would prevent of competitors t o g e t h e r , Defendants constitute a per trying to suppress from claiming se violation of the rocompetitive competition in order pbenefits Sherman Act.” for their to inflate their agreements. The litigation, own profits at the Upon review originally filed of an extensive expense of their discovery record, in 2013, alleges that over 30 Blue including internal customers.” Cross Blue Shield d o c u m e n t s health insurance and Defendant companies have entered into testimony admitting the agreements not to compete with anticompetitive nature and each other for health insurance purpose of the rules, Judge 20
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Proctor issued a 59-page decision agreeing with Plaintiffs that the rules must be accorded per se treatment. “Our case alleges that, for decades, the Blue Cross Blue Shield system has operated as an illegal association of competitors trying to suppress competition in order to inflate their own profits at the expense of their customers,” said Hausfeld Chairman and Co-Lead Counsel Michael D. Hausfeld. “We look forward to taking our case to trial and achieving a nationwide injunction to stop these practices once and for all.” “Thursday’s order is a victory for the millions of subscribers of Blue Cross Blue Shield healthcare,” said Megan Jones, Hausfeld Partner and Plaintiffs’ Steering Committee member. “We are proud to have taken a step closer to opening up the market for health insurance to true competition, to the benefit of all Americans. We want there to be more competition for everything from chemotherapy to casts for subscribers in the U.S., and Thursday’s decision MAY 2018
FAR-LEFT CALIFORNIA INSURANCE COMMISSIONER PUSHES FOR INSURANCE COVERAGE FOR CANNABIS INDUSTRY
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ACRAMENTO, Calif. — Insurance Commissioner Dave Jones has renewed his call for insurers to offer insurance products for California’s legalized cannabis industry in the wake of last week’s published reports that President Trump has abandoned Attorney General Jeff Sessions’ policy on federal law enforcement of cannabis. Since the voters of California voted to legalize adult recreational use of cannabis in November 2016, Commissioner MAY 2018
Jones has worked to get insurers to offer insurance products to cover the insurance needs of the cannabis industry. Over 24 surplus lines insurers and the first admitted insurer are now offering insurance for various risks faced by the cannabis businesses in California.
a healthy insurance market that offers insurance products to meet the ever-changing needs of Californians and California businesses. This includes making insurance available to the state licensed legal cannabis businesses in California.
Jones: “The mission of the California Department of Insurance is ‘Insurance Protection for All Californians.’ We work with the insurance industry to promote
The Department of Insurance will process cannabis rate filings expeditiously and will not object to proposed rates that have a rational basis.
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WINTER’S OVER BUT THESE REALLY BAD SNOW DRIVERS ARE IMMORTALIZED FOREVER
HEAVY EQUIPMENT FAILS: THERE’S A LOT OF PROPERTY DAMAGE HERE AND SOME SUFFERING LOSS RATIOS
UNBELIEVABLE VINTAGE ADS
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othing illustrates the changes in our national culture better than vintage ads from the Mad Men era or earlier - many of which would be considered over-the-top sexist, politically incorrect or just plain unbelievable today.
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f you were a clever woman in the 50’s, you were probably weaving a web for your man - because “there’s another woman waiting for every man,” and “No wife wants her husband to carry the memory of her morning breath to work with him.”
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The Underwriter’s Insider
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MAY 2018
INSIDER INTERVIEW
SPOTLIGHT: SLB INSURANCE GROUP WITH MANAGING DIRECTOR DARREN MARSH By Ron Manera, Senior Editor
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his month, The Insider had the opportunity to sit down and have a conversation with Darren Marsh, one of the three owners and managing directors, along with partners Trevor and Zack Keyes of SLB Insurance Group of Tamarac, Florida founded in 2000. While the ever-growing SLB Insurance Group now stands comfortably as one of the leading MGAs serving the small to medium-size agency segment in Florida and Louisiana, success wasn’t always a sure thing, as Darren reveals in our interview: INSIDER: How did you happen to enter the insurance business?
Darren Marsh, Managing Director SLB Insurance Group, Inc.
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MARSH: I had graduated the University of South Florida with a background in finance and management and I was working in the family business. My in-laws owned two insurance companies including a captive wholesaler (Unamark). MAY 2018
but I have no active markets – what do you think?’ INSIDER: help?
INSIDER: How did that work out? Were you able to grow the business? MARSH: From 1991 when I started to 1998 when the business was sold. We took the volume from $20 million to upwards of $60 million. After the sale, I stayed on for a couple of years running the captive wholesaler until they consolidated management back up to Virginia in 2000.
Were they able to
MARSH: With their connections they were able to put me in MARSH: Well, by then my touch with some markets. They wife and I had two kids and a were all standard markets, so, new house. Not a good time hence the name Standard Lines to uproot the family. At that Brokerage. Everything fell into point, I had no non-compete place and we started in April or restrictive covenants from of 2000 and we wrote our first Unamark, so I was open to new policy in June 2006. insurance opportunities.
I knew the agents. All I needed were the markets. It happened that Zack [Keyes] was childhood best friends with my brother-inlaw. My brother was a partner at Keyes Coverage with Zack and INSIDER: And you elected to Trevor’s dads. I went to these stay in Florida? guys and said ‘I know the agents
In 60 days, we were up and running and writing policies. We started with workers’ comp and then shortly thereafter, we went up and got the Hartford, the Travelers, Fireman’s Fund and the momentum just kept building. INSIDER: How did you decide to target the small to medium sized agency segment? MARSH: The timing was perfect for growth. The standard companies wanted small business but they had big, big agents that had minimum revenue requirements for each account. The last thing those big agents wanted to do was write a BOP for $600 – there’s no money in it for them.
Darren Marsh (L) & Zachery Keyes (R) with staff at 2017 LAAIA Trade Fair MAY 2018
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“The Final Authority on Everything!” WARNING!
The Advisor has been known to be politically incorrect and may send certain Millennials scurrying to their safe space. Also not recommended for Progressives who are easily offended. Please read at your own risk.
Cycling To Work Is It Safe?
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manage a medium-size personal lines agency in the Orlando, Florida area and I’m trying to encourage my staff to do something healthy: bike to work. Four of my crew of seven, along with myself, like the idea and live close enough to practically bike to work on days when the weather is clear. What I want to know is this: Has cycling become safe enough to routinely ride 15 miles a day? G.H. Altamonte Springs, FL
ADVISOR
rises above many other means of exercise as both easy on the joints as well as an excellent cardiovascular workout. But your question about safety is valid because fatalities from hit-and-run crashes are on the increase and pedestrians and cyclists account for 70% of the victims, while about 12 cyclists are injured every week in Florida - and 2 more are fatalities. Between 2007 and 2011 532 people died in bicycle accidents in Florida. Bike deaths represent 2% of all the nation’s road deaths and so the risk can be significant.
But the stats are incomplete and, frankly, useless since very little detail is included in the reports. If you want to reduce the risk of an unfortunate meeting with a motor vehicle resulting in injury or death, here are four real steps that can shift the odds in your favor: 1. BE SEEN! - Bright clothing is smart but there is one factor much more important: Lights. While all cyclists worry abut cars, inexplicably, only a small percentage of cyclists use lights and a smaller percentage use adequate lights. Don’t cheap
First, G.H., I applaud your effort to encourage your staff to stay active. Cycling 26
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out on Walmart lights. A set of real lights, front & back, will cost as little as $55 here - but worth every penny. Use them day & night!
Hit & Run Fatalities 2016 MAY 2018
2. WEAR A HELMET! - Many, if not most, of the cycling fatalities were from bluntforce cranial trauma. A $25 helmet can easily save your life. Modern helmets are light and comfortable. You will forget it’s on your head. 3. RIDE THE ROAD! - When there are bike lanes, use them. You may think you are safer on the sidewalk, but the opposite is true. On sidewalks, you must deal with cross traffic at every driveway or intersection as well as pedestrians including children and baby strollers. Cars entering the roadway don’t automatically stop at the sidewalk - they proceed to the roadway. When you ride Table of Contents
the bike lane, you have all of the right-a-way and privileges of an automobile and can (watchfully) breeze through intersections and across cross streets along with the auto traffic. 4. AVOID HEAVY TRAFFIC & RUSH HOURS! - If you are using your bike for back & forth to work, it’s going to be tough to avoid the most dangerous times of the day to ride. Drivers are in a hurry, possibly late for work and distracted. On the way home, especially on a Friday, many stop for a drink and you don’t want to be sharing the road with any drunks! Best time to ride? Saturday & Sunday mornings. www/underwritersinsider.com
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FREE CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider. com/classifieds. Ads must be less than 501 characters plus a title line. Eligible free classifieds include help wanted, position wanted, personal ads, agency for sale/purchase, or the one-time sale of an item or items. Place Ad HERE! REGULAR CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider. com/classifieds. Only $1.00 per word, including title line and response info. Payment must be received prior to print date. Ads run 3 mo.
Experienced Commercial 220 CSR Cape Coral/Fort Myers FL Established commercial lines agency seeking: self motivated, detail oriented professional. The successful candidate should have a minimum of 3 years experience in commercial lines, excellent computer skills, dependable, ability to follow up and follow through and have an unwavering commitment to the service your clients. Professional designations such as CIC, CPCU, CRM or ARM a plus. In return, you will have the opportunity to join a committed group of individuals in a growing, privately owned multi lines agency.Industry leading benefits and compensation package working with a group of experienced professionals low turnover environment. All Information and replies will be kept strictly confidential fairway34@hotmail.com 18-1
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Job Opportunity : Agents and Customer Service Reps What You Will Need: • Property/Casualty State Insurance License* • Life/Health State Insurance License* • A valid driver’s license What We Require: • Strong track record of professional success, ideally in external sales. • A strong natural market and presence in the local community. • A fearless attitude around prospecting new customers and cold calling. • A desire to succeed and build a network of clients. Note: Insurance licenses are not required to apply, but your ability to obtain the licenses is required when a hiring decision is made. Contact: sabrina.curry@best1300.com 18-5
Agent/CSR wanted, Ft. Lauderdale Area
Independent P&C agency is seeking to employ a licensed agent and/or csr, with experience in nonstandard and standard auto, homeowners, commercial auto and property insurance. Fulltime position M-F 9am - 6pm and every other Saturday 9am - 3pm. Must have a GREAT attitude and know how to be a team player. Email resume to Marlinsii@aol.com. 17-11
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Inside P&C Insurance Saleperson-NJ 1-3 years experience needed for a P&C Licensed saleperson. Leads, incentives and $40,000 base salary & benefits all provided in a convenient Parsippany modern location. jimb@mgainc.net 17-11
440 or 220 Needed in Tampa
Needed Agent or Customer service rep, must have knowledge of personal lines and have a great personality for established Family owned agency. Send resume. idcccorp@msn.com 17-10
Licensed P&C Sales & Service agent: Tampa, FL
We are seeking the right sales and service person to be a part of our team which is focused on continuing to grow a 24 year insurance Agency. If you are an experienced licensed professional who is proficient in sales of home, auto, flood, umbrella and other personal lines of insurance and who is also diligent in following up after the sale with quality customer service, we could be your professional home. info@danceferrentino.com 17-11 MAY 2018
Looking to Buy Small To Medium Sized P&C Agency in Palm Beach County. Contact: morogers@aol.com
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Fresh out of School Insurance Sales Person Needed
We are doing a cooperative hiring with one of our carriers. Must be energetic, sales and commission motivated. It is a 2 yr salary with a transition to 100% commission, there is unlimited growth potential based on how good you are. Must be able to travel for 3 weeks of training to Philadelphia. Interview process is lengthy, but once we find the right person we are ready to go! larrytalbert@talbertservices.com 17-11
SUBMIT YOUR FREE CLASSIFIED AD HERE
Experience Commercial CSR Wanted Duluth GA We are a mid sized agency, looking to add to our family environment insurance agency. We are not related but have a great time together. Voted Best in Gwinnett for 7 yrs in a row. Best in Duluth 2 yrs. Must be able to handle a large volume of direct bill accounts. Multicarrier experience and Hawksoft Agency use is a plus. Bilingual is also good but not a requirement.
larrytalbert@talbertservices.com 17-11
Looking to buy a P&C agency in PB county. Please call 561-584-0732
BROWARD COUNTY ENTRY LEVEL ACCOUNT MANAGER Growing MGA is looking for a highly motivated & responsible individual. Duties include managing accounts from our distribution channel --- quoting, binding and servicing multiple lines of business. Incredible opportunity for someone looking to learn and grow in a company. Send resumes to info@ everiskpro.com 17-4
SUBMIT YOUR FREE CLASSIFIED AD HERE
Efax: (561) 829-2055
17-3
Wholesale Broker Professional Liability Sarasota FL Our client is a national MGA with a wholesale brokerage division and is seeking to hire an experienced Professional Liability (all lines considered) Broker to join their team. Relocation to Sarasota, FL. is required. Excellent commission options for an experience Wholesale Broker. Call: Lloyd Kushner 800-797-1412 yoursearchfirm.com lloyd@yoursearchfirm.com
220-440 Agent for Port St. Lucie Agency (PT-FT ?) Please fax your information to: (772)879-1002 or e-mail to: amerinsur@aol.com Thank You... amerinsur@aol.com 17-11
18-4 MAY 2018
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ANALYSIS
5 WAYS TO PARLAY PATENT INFRINGEMENT INTO PROFITS Expert outlines “what it takes” to turn intellectual property infringement into an ancillary income stream concerned about the impact of patent litigation on the rate and ccording to a January direction of U.S. innovation and 2018 Seyfarth Shaw LLP on the functioning of the U.S. report titled “2017 Patent intellectual property system.” Litigation: A Statistical Overview,” the past 5 years have seen a These and other factoids make “significant increase” of patent clear that patent infringement is litigation cases filed with the Patent alive and well in the United States, Trial and Appeals Board (PTAB) and most often to the financial dismay the Court of Appeals for the Federal of patent-holders who spend Circuit (CAFC). Last year the United untold hours and egregious sums States Patent and Trademark Office of money trying to protect their (USPTO), itself, published its own intellectual property—and the report citing a “drastic rise in patent marketplace edge often reliant on litigation” that also referenced a those assets. USPTO working paper ominously However, what if rather than revealing that “economists, legal issuing the knee-jerk Cease and scholars and policy makers are By Merilee Kern, MBA
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Desist and otherwise going the exhaustive and expensive litigation route attempting to prosecute inadequately responsive offenders, patent owners instead strategically engaged said offenders in ways that actually boost their own bottom lines, accelerates growth, raises capital, and expands market share? While this might sound like a far-fetched notion, it’s exactly what Tim Murphy, Chief Executive Officer of Rebounderz Family Entertainment Centers is doing... and with tremendous success. Having serially found himself in situations where other competitive businesses were utilizing
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bout the author: Branding, business and entrepreneurship success pundit, Merilee Kern, MBA, is an influential media voice and lauded communications strategist. As the Executive Editor and Producer of “The Luxe List International News Syndicate,” she’s a revered brand and consumer product trends voice of authority who spotlights noteworthy marketplace change makers, movers and shakers. Merilee may be reached online at www.TheLuxeList.com. Follow her on Twitter here: http://twitter.com/LuxeListEditor and Facebook here: www. Facebook.com/TheLuxeList
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industry-leading materials and methodologies for which he and his company held patents, Murphy took a surprising, gutsy and rather ingenious approach. Rather than litigating with the sole intention of shutting down the offenders or certainly their use of his IP at the very least, Murphy instead adopted a strategic partnership mentality, enforcing his patent rights in a way that’s earning his company significant ancillary revenue streams and hastening corporate growth.
if the relationship can evolve • Make your outreach binary; to possibly work together either work together to to sell additional products monetize or face legal or services that you were action. Try to give your patent previously not exploring or offenders options that make it that didn’t make sense in the easy and attractive for them to short-term? There are several work in synch with you. It’s not ways the relationships can hard to open your net wider be extrapolated for mutual to provide new and creative gain. It’s just a matter of aptly solutions, and opportunities conveying the value your abound. These include1) organization brings to the providing a license for the table, not the least of which length of the patent; 2) selling is the patent license or usage a license for a shorter period; 3) opportunity for the party that providing an outlet for them to would otherwise have neither. sell you their business if that is Below are a few of Murphy’s their intention, or if there is little suggestions on “what it takes” • Offer a licensing and/or opportunity to collect a license to parlay a patent infringement royalty fee for continued use. fee; 4) suggesting operating as situation into profits: While you should certainly a joint venture or partnership have a Cease and Desist letter such that your patent license • Strategize ways to near-term at-the-ready, the other party serves as your investment into and long-term monetize. may actually be unaware of the new entity; 5) creating new Create new opportunities their patent infringement products with the infusion together in a joint venture or to begin with. Most good of the patent that each party strategic partnership. New business people want to do could bear responsibility services, additional product the right thing and don’t for selling; 6) developing a lines and spinoff businesses intentionally violate a patent. scenario that whereby both can be created to benefit both So develop a program offering parties could come together to parties. Just because an entity a usage license or royalty fee sell both companies to a larger has infringed on a patent does for the life of the patent either entity, such as a private equity not mean that they want to or payable in a lump sum, as firm that may purchase both intend to continue infringing annual payments or as monthly businesses. in the future or that they are payments to make it easier for unscrupulous. Clearly layout a the infringing party to budget • Get a sense of intent and plan that is ‘win-win’ for both for. Your patent attorney or beware the “patent pending parties and work together your company’s corporate game.” Some infringing to build both bottom lines. counsel can readily help create businesses and manufacturers Strategize how you and the this license agreement to help will claim to have patents infringing party can work protect your company as well pending, however all too together as strategic partners as the ownership integrity of often these companies only ongoing, for the long-term, in the patent itself. order to sustain value. Explore See Patent Infringment Page 50 MAY 2018
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NOTABLE QUOTABLES IN THE NEWS & COMMENTARY
SAY WHAT? Facebook Bans German Historian For Stating Accurate History
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slam always plays only one role in the 1700-year-old history of the Christian Occident: the role of the sword of Damocles which hung above us, the threat of barbarism against which one needed to unite and fight. In this sense, Islam is not part of German history, but the defense against Islam!”
ImageAttribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)
Michael Hesemann, a journalist and Vatican historian with an honorary doctorate for work he did in uncovering Armenian Genocide documents censored on Facebook for 30 days because, according to Facebook, he did “not correspond to our community standards.” Apparently, one has to promote liberal lies and avoid any uncomfortable truth in order to “correspond to [their] community standards.”
justify a large sign at an entrance to the Annenberg School for Communication and Journalism building with the message in big black letters: “DISMANTLE Credit: Image appearing in The College Fix WHITENESS AND MISOGYNY ON THIS CAMPUS.” The sign and the flyer illustrate the hypocrisy of the academic left constantly ranting about diversity and inclusion - when a major tenant of their philosophy specifically excludes and demeans a majority of the population. If you are a conservative, straight, white, male, to these lunatics from the left, you are Satan himself - and you need to be “dismantled.”
The “Whiteness” of the Victims Spurs Donations?
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’m trying to not get cynical about “Dismantle Whiteness” what is a totally devastating tragedy but the maleness, the istinct from being white, youthfulness and the whiteness of the whiteness refers to an victims are, of course, playing a significant unmarked and unnamed place role.” of advantage, privilege or domination; a lens through which white people tend to One Nora Loreto, who self-describes as a writer, see themselves and others; an organizing activist, and a “happy socialist, reacting to the principle that shapes institutions, policies, horrible April 6th bus crash of the Humboldt and social relations.” Broncos hockey team in Canada which resulted in the death of 16 and the injury of 13 From an informational flyer distributed by the people. The GoFundMe page that was put up University of Southern California attempting to
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x
for donations reached $4 million two days. Amazingly, the generosity of the donors troubled poor Nora, while apparently marinating in white-guilt, immediately found some left-wing cause to advocate after the tragedy. Matt Vespa, columnist for Townhall, said it best: “She follows up by saying, “I don’t want less for the families and survivors of this tragedy. I want justice and more for so many other grieving parents and communities.” So, because she’s advocating for other grieving families, it’s okay to act insensitive in this case because…[insert whatever liberal talking point here that exempts bad behavior]. I’m advocating for more justice for all, so let me spit in the faces of these families because the victims were young, male, and white. These people, progressives, don’t care about your pain or loss; they care about the narrative. They care about the action item that needs to be accomplished. They care about the agenda that needs to be disseminated. It’s just an abjectly stupid hot take to throw out there. Even in tragedies where politics is absent, the Left makes it political.”
Cows’ Schadenfreude. In the portraits at the Fulton Street restaurant, the Cows visit various New York landmarks. They’re in Central Park, where “eat mor chikin” has been mowed into the lawn. They’re glimpsing the Manhattan Bridge from Dumbo, where they’ve modified a stop sign: “stop eatin burgrz.” They’re on the subway, where the advertisements . . . you get the picture. The joke is that the Cows are out of place in New York—a winking acknowledgment that Chick-fil-A, too, does not quite belong here.”
One Dan Piepenring writing in The New Yorker in April in a smarmy piece highly critical of, arguably, the best fast-food chain in America, Chik-fil-a. Piepenring’s biggest problem with the company? The owner acknowledges he is a practicing Christian. Piepenring followed with, “New York has taken to Chick-fil-a… And yet the brand’s arrival here feels like an infiltration, in no small part because of its pervasive Christian traditionalism.” The Insider Eat Mor Chikin? has been inside Chick-fil-a many times and has yet to observe anything that could remotely ost restaurants take pains to be considered a sign of “pervasive Christian distance themselves from the traditionalism,” unless it’s the unflagging brutalities of the slaughterhouse; politeness and cheerfulness of its staff. Chick-fil-A invites us to go along with the
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BACK ISSUES
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BACK ISSUES
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CLAIMS & THE LAW Continued From Page 7
ZALMA evidence to support that claim. When all was said and done, Tran provided the insurance company only some of the documents and information it requested and refused to confirm the accuracy of several key documents Federal obtained on its own accord.
affected several categories of information, it impaired Federal’s ability to complete a full and fair investigation. Her noncooperation was clearly prejudicial. Tran nevertheless insisted that her attempted compliance was enough. She reasons that she provided some records and made an effort to obtain others. But Tran sets the bar for compliance too low. A party’s compliance with some of a policy’s requirements does not excuse the party’s material failure to comply with others. Although Tran provided Federal with authorizations to obtain records from third parties, it was Tran’s undisputed responsibility under the contract to obtain the requested documents—not Federal’s.
This level of noncompliance was material and substantial. Federal had reason to question Tran’s story about the burglary. And Tran’s failure to provide the requested records impeded its ability to investigate the truth of her claims. The bank records and tax returns would have shed light on Tran’s financial situation in the years surrounding the alleged Tran also argues that Federal burglary. So too would the casino cannot prove that her failure to records reflecting her boyfriend’s cooperate was willful, because she gambling habit. did not destroy any documents or fail to produce documents that Federal was confronted with a she had in her possession. Maybe record that suggested Tran had so, but she missed the point no annual income, yet somehow since, if Tran did not currently maintained monthly expenses have the requested records, the sometimes exceeding $5,000 cooperation clause obligated around the time of the loss. her to make an effort to obtain Tran’s obstinacy frustrated the them. While Tran suggests that company’s ability to determine she did eventually make an effort Tran’s motive, alibi, or any other to obtain her tax returns, she did aspect of her involvement not do so until more than a year (or non-involvement) in the after she filed this suit. That is not alleged burglary. Moreover, “cooperation.” because Tran’s noncooperation persisted for months and 36
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The district court thus properly granted summary judgment to Federal on the grounds that Tran failed to cooperate. ZALMA OPINION Federal went beyond the call of duty required by the covenant of good faith and fair dealing. It was patient and waited for production from Tran after multiple requests. It took authorizations and tried to get the records which were withheld and it was met with an impossible fact that she earned nothing but spent $5,000 a month. Unable to complete the investigation Federal rightfully and fairly rejected the claim. Failure to cooperate is a breach of a material condition and a failure to deal in good faith.
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TECHNOLOGY find out how much of your be listening and watching you information has been logged right now. with Google so you can take steps to get rid of it. 4. Turn on these Amazon Echo privacy settings Click here to find out everything 2. See all the information Google knows about you – and Like your smart TV, Amazon Echo is designed to sit prominently in Google has on you how to clean it up. your living space, and its builtMost people are aware that in microphone system listens to Google compiles an enormous 3. Check your smartphone for every single sound, including amount of personal information. spy apps discreet conversations. This We entrust In theory, a “spy listening is benign enough: Echo Google with our Like your smart app” can be very is waiting for a “wake phrase” passwords, our TV, Amazon Echo handy, especially that will call the device to act. documents, and for parents is designed our photographs, monitoring their But again, privacy – and the but the company to sit prominently in children. But potential for hackers to listen also absorbs your living space, and these kinds of in – have been valid concerns in types of data that apps can easily recent years. Equally alarming you may not have its built-in microphone be used for secret is the way Echo records your system listens to every eavesdropping. every command. The purpose of considered. single sound, including Worse, this kind these recordings is to improve The most notable discreet conversations. of monitoring its voice recognition software. example is can be recorded, Many consumers worry about Google’s GPS This listening is benign m a n i p u l a t e d , someone breaking into that system, which enough: Echo is waiting and distributed bank and pillaging their voices tracks your for a “wake phrase” that around the world for criminal use. every movement will call the device to in a matter of through your minutes. The good news is there are ways act.” phone, whether to make things more secure. Click you are actively Even now, your phone may have here to learn about 3 Amazon using Google Maps or not. a spy app, enabling strangers Echo privacy settings you should Google also retains the entire to listen to your calls, read turn on now. breadth of your search history; your texts, and rifle through deleting this history from your your photos. The best way to browser won’t erase the archive determine whether your phone Bonus: Turn your webcam into of past URLs. Many other apps has been compromised (or a spy cam use Google data to help them prevent it from being so) is to Household security is cheaper function – and then there are know what kinds of spy apps are and more versatile than ever, targeted ads, which accumulate out there. and if you find the right system, cookies over time. it will be worth the investment. Click here to learn about 5 Most people don’t think about The good news is that you can smartphone spy apps that could setting up a monitoring system Continued From Page 5
KIM KOMANDO
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TECHNOLOGY until they’re already out of the house. Yet an internet-enabled security camera is accessible almost anywhere. You can view your home in real-time, whether you’re out to dinner or vacationing in Thailand. One of the most cost-effective solutions is to use the webcam on your desktop or laptop computer. A well-positioned webcam can be extremely effective, especially if you can access the live feed from a mobile device.
NORTH CAROLINA FIRE CHIEF CHARGED WITH INSURANCE FRAUD Suspended chief charged with insurance fraud, embezzlement from Johnston County fire department
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Special agents with the Department of Insurance Criminal Investigations Division accuse Kearney of falsely presenting statements supporting insurance claims on an American Alternative Insurance Company policy. He is also accused of converting $25,889.31 in insurance claim payments intended for the fire department to his own use.
ALEIGH -- North Carolina Insurance Commissioner Mike Causey today announced the arrest of a For a step-by-step guide on suspended Johnston County how to turn your webcam into a volunteer fire chief on felony Kearney is accused of turning in surveillance cam, click here. insurance fraud and embezzlement claims for four portable radios, a portable air pack, and a thermal charges. What other ways can you protect imaging device, claiming they yourself? Kenan Wayne Kearney, 44, of 525 were lost or damaged, when in fact Thompson Road, Four Oaks, was they weren’t lost or damaged. arrested on April 25 and charged Insurance fraud costs American Copyright 2018, WestStar with six counts of insurance fraud consumers approximately $80 Multimedia Entertainment. and seven counts of embezzlement. billion dollars a year. According to He was placed under a $25,000 All rights reserved. secured bond. Kearney was chief Commissioner Causey, fraud costs North Carolinians between 15 Learn about all the latest of the Blackman’s Crossroads and 20 cents of every dollar paid technology on the Kim Volunteer Fire Department. He on insurance premiums -- and it’s Komando Show, the nation’s was suspended from the chief’s getting worse. largest weekend radio talk role following a prior arrest by the show. Kim takes calls and Johnston County Sheriff’s office. “I am determined to stem the tide dispenses advice on today’s of insurance fraud in this state in digital lifestyle, from “It’s heart-breaking to see a person order to save residents money,” smartphones and tablets charged with the trust of volunteer said Commissioner Causey. “That’s to online privacy and data firefighters accused of such serious why I am dedicated to the mission hacks. For her daily tips, free crimes,” Commissioner Causey said. of our NCDOI law enforcement newsletters and more, visit “I hope the firefighters and the officers who investigate and her website at Komando. people in the fire district will rally prosecute claims of insurance and around the department as it moves com bail bonding fraud.” forward following this sad news.” MAY 2018
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INSIDER INTERVIEW Continued From Page 25
INTERVIEW WITH SLB INSURANCE GROUP’S DARREN MARSH So we said, ‘We’re going to focus on the under-served mom & pop agents and give the Hartford and the Travelers and the Amtrusts of the world the segment they wanted. And the companies responded. Over a period of time, we became Hartford’s fastest million dollar producer in history. They flew us up to Charlotte, gave us a plaque
and it just took off from there. We started adding more markets and we became hyperfocused on standard lines business. INSIDER: And then something changed? MARSH: Everything was great until Hurricane Wilma came through in October 2005. That shook up the whole marketplace. Wilma created turmoil amongst the standard markets. At the time Zachary Keyes, SLB Partner, Managing Director we were up to $16 million as an agency and almost all our risks had to 14 to 13 to 8 to $4 million – property attached – mostly BOP and we were literally on the heels of going out of business because risks. we didn’t have the markets to Shortly after Wilma, replace the business. one after the other, companies came to us and said, ‘We’re getting out of the property business.’ Everywhere Wilma hit, we got hit. She came across southwest Florida and then came right up the state. Everywhere we wrote, we had exposure and losses.
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INSIDER: With such dim prospects, how did you respond?
MARSH: While I was on the company side, I made some substantial contacts at Lloyd’s of London. We said, the only way to replace that business is if we get a Lloyd’s slip and move all that business to a Lloyd’s package. The admitted markets are done The companies started but we’ll have something good pulling out. The premium to offer the agents. volume was going from $16 million to $15 million I got on a plane to London and Table of Contents
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started working with the market on getting tribunalized as well as securing product. The process took eight months. In late 2006, we started moving the business into Lloyds. We realized, with the amount of E&S business we were placing, we were no longer “standard lines brokerage.” We filed for the name SLB Insurance Group. INSIDER: Did the standard markets eventually jump back into the marketplace?
integral in building the IT platform and keeping down the overhead by streamlining and building internal procedures that we could automate – vs just throwing people at it. Thanks to Trevor, we’re probably more automated, at the cutting edge of automation, of any wholesaler out there. When people come in and see how we are doing it, they say, ‘You guys are doing what?’ They Personal Service: can’t believe what we’ve done in-house as a small family-owned business.
MARSH: The standard markets came back a little. They gave us a little capacity – but not like before. We realized we were now a true-blue wholesale E&S broker with most of our business going to the surplus lines market. We may have been reduced to as low as $4 million in 2007 but we now have finished 2017 at better Zack Keyes was working than $46 million. originally with the Hartford and then worked with Keyes INSIDER: It was almost like Coverage [a large, retail agency starting over? under the same roof ] for a few years. Zack is now a critical MARSH: I like to say that SLB part to our production and an 2.0 started in 2007. In 11 years amazing resource. since, our growth has been unbelievable. INSIDER: How would you describe SLB’s core values? INSIDER: How did the partners divide their roles in the company? MARSH: One thing we at SLB Group have always prided MARSH: The company ourselves on is 1) always do the relationships were definitely my right thing, and 2) always take ‘wheelhouse.’ Trevor Keyes was the high-road. Our reputation MAY 2018
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Darren still fields a dozen agency calls a day...
is everything. We even have strong relationships with our competitors. Mutual respect. We don’t poach each other’s employees. I’ve even been on vacation with some of these guys… We have no ego here. I, personally, still take dozens of customer service calls a day. If one of my people can’t handle it immediately, I take the call. You have to service your agent and we are in the service business. Do we do a great job most of the time? Yes. Do we fall short occasionally? Yes. But that’s
See Spotlight on SLB Ins Grp Pg 42
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INSIDER INTERVIEW Continued From Page 41
INTERVIEW WITH SLB INSURANCE GROUP’S DARREN MARSH a good learning experience. When a piece of business comes through the door it gets quoted the same if it’s coming from our top agent or our smallest. Culture is very important to us here. People like it here. They like coming to work. We have a very good group; everybody gets along. We’ve been named top workplace by the Sun Sentinel two years in a row and we are very proud of that.
office in Louisiana, and another in Orlando, right? MARSH: We have an office in Louisiana. As we started growing, we were looking for great people. We met a guy in Louisiana, a great guy with entrepreneurial spirit Keith Hinson, in about 2011. We opened an office there and started building and writing.
main office. Having boots on the ground in Orlando makes a difference, especially when acquiring markets. The appetite in Orlando for property is greater.” INSIDER: Any immediate plans to expand the operation?
MARSH: Yes! Some news, we have just opened an office in He was very focused on trucking Jacksonville. Jacksonville is – and we have 10 people out really growing and we want the there now also writing lots of same mix, small business, that P&C. The trucking insurance we have been so successful with business has been challenging here. and we’ve expanded our operation to include more P&C INSIDER: Is it difficult to as a result. differentiate your company from the competition when everyone has basically similar facilities?
MARSH: We feel that relationships are everything. Everyone has similar products. We give better service, get quotes out faster, When we interview, answer that phone we don’t care how quicker. That’s our impressive the mantra: Give the best SLB Ranked as one the best places to work, 2017 & 2018 credentials. When we service and build those hire, it’s culture first, underwriting About 6 years ago, we opened relationships. credentials second. And that’s an office in Orlando, managed how we were ranked as one of by Philana Perez, a satellite While we’re great at small the top workplaces. [Editor’s office to Ft. Lauderdale. We business, we’ve gotten great Note: See press release here] are writing the same mix of at brokerage and bigger business we are writing in the accounts too because we INSIDER: SLB has an branch 42
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NEWS wanted to establish that onestop shopping experience for our agent. Even though they may be small agents, they will have that occasional bigger account and you want to be able to accommodate that as well. We now have total of 20 underwriters to serve our agents, including professional liability INSIDER: Where do you see the SLB Insurance Group in 5 years? MARSH: I see us using the MapRisk technology to help streamline the underwriting process. This will provide our carrier partners the best in practice underwriting information up-front prior to binding and eliminating the heavy reliance on post-bind inspections. We will continue with expansion and we are always looking for good, smart people we can build around and get to $100M in five years. INSIDER: I know you write a lot of E&O... MARSH: Our E&O product is endorsed by the LAAIA. Outside of the national programs, we have an A-rated admitted product for Florida and you don’t have to join a group to have access to it. There are going to be significant savings. MAY 2018
NORTH CAROLINA WOMAN CHARGED WITH FILING 287 FRAUDULENT CANCER INSURANCE CLAIMS TOTALING MORE THAN $230,000
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ALEIGH -- North Carolina totaled $231,306.25, according to Insurance Commissioner the warrants. Mike Causey today announced the arrest of Susan NCDOI special agents arrested Leigh Huebotter, 60, Huebotter on of 912 Joshua Creek March 22 in Lenoir Road, Deep Run, N.C. County. She was She is charged with placed under two felony counts of $250,000 secured insurance fraud and bond. two felony counts of obtaining property Insurance fraud by false pretenses costs American over $100,000. c o n s u m e r s Leigh Huebotter, 60 approximately $80 The NCDOI’s Criminal billion dollars a year. According to Investigations Division special Commissioner Causey, fraud costs agents accuse Huebotter of North Carolinians between 15 presenting both written and oral and 20 cents of every dollar paid statements in support of 287 on insurance premiums -- and it’s AFLAC cancer and hospitalization getting worse. policy claims, knowing that the statements contained false and "I am determined to stem the tide misleading statements. of insurance fraud in this state in order to save residents money," According to the arrest warrants, said Commissioner Causey. "That’s Huebotter made the claims why I am dedicated to the mission without being diagnosed, treated, of our NCDOI law enforcement or having surgery for cancer officers who investigate and between 2009 and 2017. prosecute claims of insurance and bail bonding fraud." The value of the false claims Table of Contents
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SPECIAL REPORT
HOW (AND WHY) TO WRITE A PRESS RELEASE By Ron Manera, Senior Editor
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he most overlooked source of free promotion for small to medium-sized companies? Press Releases. Those little info blurbs that strengthen your brand and inform your market can be powerful tools if employed effectively. With a press release, your company can inform the world of a new hire, promotions, a key person retiring, a new product, a merger or acquisition, a new office or a thousand other events positive and timely. But even more important: Getting your company name out in front of tens of thousands of your prospects and customers, (even competitors) often, and at little or no cost. As an editor of a couple of insurance industry specific journals, I am on the receiving end of dozens of press releases daily - all wishing a free ride in one of my next issues. I welcome press releases because they often provide valuable content to my readers. Because of space and relevancy limitations, I can’t run them all. As a matter of fact, only a small percentage of the PRs I review
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make it into the magazines. How do I decide what to run? I look first for relevancy. Is the information in the press release something likely to be interesting or valuable to my subscribers? I can discard 80% of the PRs I review simply because the content is not focused on my audience. Next, I look for length, style and format. Will the original PR take up two pages requiring radical editing for size? Can I easily move the content into my publication without extensive reformatting? Are there bulleted paragraphs or multiple hyperlinks to contend with? I look for a news-style press release. When I receive a PR that is 80% promotional and 20% news, I’m likely to pass it up. I don’t charge for news - I do charge for advertising.
Up The Odds Your Press Release Will Be Printed And Effective
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suspect most editors rely on criteria much like mine when reviewing incoming press releases for publication. Table of Contents
Here are eight tips to increase your odds of actually making it to the show: 1. Give me a compelling headline! Hint: Write your headline last after you review your entire PR. A good headline will not only get my attention, but that of my readers. 2. Don’t open with “ABC Company announced today...” because the PR may not appear for another 30 days. Include the actual date. 3. Keep your copy succinct! 375-450 words max. That’s an entire page, so you have plenty of room to cover your subject. I’m not going to give you more space - so if you run long, you are asking me to trim your copy and you may not like what I remove. 4. Learn to write like a journalist: Who, What, When, Why & Where. (in no particular order)List those 5 categories out on a worksheet and work from it as you script your PR. To the ultimate reader, it should not read as if it were written by your marketing department but as if we sent a reporter MAY 2018
Image Credit: Creative Commons
While larger operations use paid services like Businesswire, PRweb, PRNewsire and others to distribute their press releases, smaller companies can maintain a list of media outlets that make more sense for their target market. I review PRs from the big distribution houses all the time - but I am more likely to notice one emailed directly to me.
or a mention or quote out to cover your news story. from a company officer. I 5. Important! Don’t often include company make your PR into an logos when they are made advertisement. First, it will available. lesson the chance I include your piece, (remember, I 8. About (Your Company) It’s good to include a short charge for advertising) but “About ABC Company” at the just as important, it will lack end of your PR. Keep it short credibility to the readers if it and within the word limit for just looks like a puff piece. the entire piece. Include It’s okay to sound enthused contact info for “further about the topic and your information.” company, but the ideal PR will look as if your company 9. Make certain to place a copy of each PR on your company made the news because of website under your NEWS some newsworthy event. tab. The practice will make 6. Give me at least one quote, your site more relevant to e.g. “Frank’s extensive search engines and more experience in restaurant valuable to visitors. risks will bring a new depth to our commercial insurance ow that you’ve created department,” said John the perfect press Smith, CEO... release, where should 7. If appropriate, include you send it? an image, especially if the PR involves personnel
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In the insurance business, include every trade journal that covers your region. If you are introducing a new restaurant program, for example, you may wish to include some of the trade journals in that industry. If you are a local retail agent, by all means include local print media, especially neighborhood newsletters or city-wide newspapers. Build your list in a spreadsheet database so you can one-click mail-merge a personalized copy to each media outlet. Make it a habit! Find the best copywriter in your office and assign them the task of churning out one press release each month. You’ll be building your brand and status within your industry. Where to send at TUI? Send directly to me, Ron Manera at ron@insurmedia.com.
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Georgia Agents has more online benefits than any other insurance agents’ organization. Any one of the benefits shown on this page is worth more than the $99.00 per year membership! Join today at http://www.georgia-agents.com and everyone in your agency starts to enjoy the benefits immediately. You can pay online at www.Georgia-Agents.com or feel free to mail your business card with a check payable to: Georgia Agents c/o Eddie K. Emmett 200 Russell Court, Canton, GA 30115 Happy sales to you,
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Do GA CSRs have to be licensed? The answer is "Yes" if:
The CSR is a person who sells, solicits, or negotiates insurance.
The CSR receives commission on insurance sales.
The CSR handles endorsements and reinstatements.
The CSR gives quotes for insurance.
The CSR completes insurance applications.
The CSR handles renewals.
The CSR answers coverage questions.
So just what can an unlicensed CSR do? Mostly managerial and clerical tasks only indirectly related to the above tasks. I'm not so sure they can even take payments since that is a vital part of insurance sales.
The Georgia Department of Insurance encourages the insuring public to report any complaints about insurers, agencies and agents. The first thing checked is whether or not the person in the complaint is properly licensed for that transaction. Here's the scenario if the CSR is found to be in violation of O.C.G.A. § 33-23-4: Any person who willfully violates this Code section shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to punishment as provided in Code Section 17-10-3, relating to punishment for misdemeanors. Code Section 17-10-3: By a fine not to exceed $1,000.00 or by confinement in the county or other jail, county correctional institution, or such other places as counties may provide for maintenance of county inmates, for a total term not to exceed 12 months, or both.
Check out O.C.G.A. § 33-23-4 in the "Laws & Regs" link at the bottom right corner of www.GAlnsurance.org for a more murky explanation.
So what should an unlicensed CSR do? If they are handling only Personal Lines P&C, a Limited Subagent license should do the trick. The sponsor is responsible for their actions, a state exam is not required and they can take the required 20 hour pre-licensing course from the comfort of their desks for FREE if agency is a member of Georgia Agents.
It gets even better than that! CSRs may study the 20 hour Limited Subagent course, take an exam and download a Certificate of Achievement for free. It serves as great refresher training on Personal Lines such as auto, home and renter's insurance. But if the CSR handles lines other than Personal Lines, a full blown agent's license is required.
That applies to the CSR, the agency owner, and the Insurance companies that paid commissions to unlicensed entities. I wonder if they assign adjoining jail cells. GEORGIA AGENTS Members can earn 24 hours Online CE and 20 hours Limited Subagent Prelicensing and 20 hours Personal Lines Agent Prelicensing for all employees for only $99.00 per year! And that’s just a few of the many benefits. Join today at www.Georgia-Agents.com
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MAY 2018
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BECOME A CERTIFIED EXPERT IN CORPORATE PROPERTY INSURANCE AND A CERTIFIED EXPERT IN CORPORATE LIABILITY INSURANCE Now available from Illumeo and Barry Zalma!
E
veryone involved in insurance – either as an insurer or as an insured – requires excellence in claims handling. Businesses need to deal with insurers who have an excellence in claimshandling mandate. Insurers who wish to profit need an excellence in property and/or liability claims-handling program. Everyone in business needs an insurer who has an excellence in property or liability claims-handling program in effect. Two comprehensive programs enabling insurance professionals to become Certified Expert in Corporate Property Insurance and/ or Certified Experts in Corporate Liability Insurance are available from Illumeo.com and https://www.illumeo.com/curriculum/certifiedexpert-corporate-property-insurance and https://www.illumeo.com/ curriculum/certified-expert-corporate-liability-insurance. The programs are complete courses of study providing education and training to allow insurance professionals, after completing the individual classes, to become a Certified Expert. The programs cover everything an employee, an officer, or a director of a corporation needs to know about the need to acquire proper insurance and to resolve any claim presented by the corporation to the insurer. Major topics of study include, but are not limited to: the importance of insurance; how to acquire insurance and understand an insurance policy; the methods used by insurers to investigate claims; the various types of insurance that corporations need; the duties and obligations of a public adjuster; and how The full curriculum of the courses and other courses from Barry Zalma are available at http:// www.ilumeo.com by entering in the search bar the word “zalma.”
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ANALYSIS Continued From Page 31
HOW TO MONETIZE PATENT INFRINGEMENT have patent(s) “pending” that are actually infringing on perfected patent claims of another party. So be sure semantics isn’t getting in the way of everyone’s clear understanding of the legal situation and real ramifications. • Vehemently protect your well-earned Patent Holder rights. You achieved patent protection for a reason, and by all means file everything necessary to keep the patent valid and unencumbered. Let the industry know your intentions so there is no misconception of who owns the patent, who has the protected claims, and the rigorous legal action that will be taken against anyone violating your patent’s protected claims. Take an offensive strategy by ensuring patent infringers know with specificity how your claim(s) are far superior than 50
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their designs. To accomplish these objectives, have your attorney write letters to the patent infringers as soon as possible, outlining exactly how, when, where and why they have misused your patent(s) without a proper license. Continue aggressive follow-up and take pictures and collect other evidence, as appropriate, of how the infringers have illegally utilized used your perfect patent. Ultimately, have some bite in you! Always be willing to act and pursue legal action if need be. But, do certainly make every attempt to monetize before going this route as one company’s mistake could very well be your good fortune. “While we’ve found it highly prudent to work with infringing organization as strategic partners and settle patent disputes through lump sum or monthly payments in order to reduce ongoing legal costs for both parties, there are some instances where it’s necessary to use legal means to make patent infringements work in your favor. In my own experience, my company has settled suits by having the infringing party purchase our patent license, allowing them to continue to operate their business using our three (3) perfected patents that cover 59 claims.” Table of Contents
Rent This Space! Want Your 1/3 Page Message To Hit Over 120,000 Industry E-Mails Per Month For As Little As $129.00? View Rate Card Here! Request More Info Here! MAY 2018
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