IN THIS ISSUE SEPTEMBER 2018 - VOL 14 ISSUE 9
16
California’s 1st Cannabis Insurer Expands Coverage Drops Premiums
To Succeed At ArsonFor-Profit Takes Skill And Intelligence
16
Florida: $1.4 Million Acupuncture Fraud Scam Lands Owner In Jail
California Agent Charged With Stealing Over $100,000 From Victims
17
Lloyd’s Of London Sneaks Into Crypto Insurance Market
Independent Contractor vs Employee - The Truth
18
Cryptocurrency Outlook: 5 Key Indicators It’s Here To Stay
Florida Welcomes Ginger, DFS’ New Accelerant Detection K-9
20
State By State Comparision Of The Effect Of Minor & Major Tickets On Auto Insurance Rates
22
Nine Of The Craziest Home-Made Vehicles You Have Ever Seen
5
10 Incredibly Useful Online Sites You Didn’t Know About Till Now
6 8 10 12 13 14
LAAIA Introduces Maribel Ramirez As New Executive Manager
AAA: Ride-Hailing Twice The Cost Of Car Ownership
23
Unbelievable Vintage Ads - Another In Our Series Of Ads From The 30s, 40s, 50s & 60s.
Page 5
24
New Book: America UnHappier Than Ever Despite Record Breaking Economy
26
The Insider Advisor Sidewalk vs Bike Lane: A Raging Debate!
32
Evil A Make-Believe Concept? ISIS Didn’t Get The Memo...
32
Cuomo’s America Never Was Great?
33
NIKE: Worst Marketing Move In History?
PREFER TO READ OFFLINE? DOWNLOAD & VIEW PDF: HERE!
SPECIAL REPORT Page 20
State by State Comparison On The effect Of Minor & Major Tickets On Auto Insurance Rates Georgia’s Only Virtual Insurance Agents Organization “Insuring the American Dream” Join today at:
INSURANCE AND THE LAW PAGE SIX
Page 6
2018 FAIA & LAAIA TRADE FAIR BOOTH IMAGES NOW ONLINE!
FEATURES 5 6
Kim Komando Barry Zalma
11
Advertise
16
Breaking News
26
Insider Advisor
28
Classifieds
32
Say What?
34
Back Issues
FREE CLASSIFIEDS!
www.Georgia-Agents.com
HELP WANTED — POSITION WANTED 4 — SALE ITEMS
Page 46 For More Info!
CLICK HERE!
Cover Photo Credit: © Ron Manera
SEPTEMBER 2018 INSURANCE - POLITICS - TECHNOLOGY - PEOPLE A Publication of AdMax Corp., Inc. Corporate Offices P.O. Box 31551 Palm Beach Gardens, Florida 33420 Ron Manera, Publisher/Senior Editor Join Me On Linkedin: HERE Follow Me On Instagram: @rj.0521 561.718.0745 • ron@insurmedia.com
© Entire Contents 2018 AdMax Corp
www.underwritersinsider.com 4
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
TECHNOLOGY
10 INCREDIBLY USEFUL ONLINE SITES YOU DIDN’T KNOW ABOUT UNTIL NOW Really Cool Tech Info - From Kim Komando
I
Most importantly, if it’s free on Netflix or HBO Now, then there is no need to pay to rent it on iTunes or Amazon.
Luckily, all kinds of websites offer free ways to perform simple yet essential tasks.
Who knew that browsing online movies could be so arduous? Actually, finding which streaming service best suits your channel and programming needs is in itself very confusing. Click here for a streaming chart that lets you see exactly what channels are available per service.
f you had to guess, how many different websites do you think exist in the world today? From simple blogs to complex businesses, the internet spans the gamut dispensing and gathering a myriad of information. Keep your answer in your head because, at the very end of this article, I’ll tell you the closest estimate we have.
These websites can tell you what’s streaming, clean up your email, fix your grammar, edit your photos, and test your router, and most of them require only one or two steps. Here are some lesser-known sites you’ll use time and time again.
1. A search site just for streaming movies and SEPTEMBER 2018
programs You want to watch a movie. What’s the easiest way to find out if that movie is available on Netflix, iTunes, Amazon, Hulu, YouTube, HBO Now, CW, Starz, Showtime, PlayStation, or another streaming service? Table of Contents
The site JustWatch sifts through almost every streaming service out there to find a specific title or show you what’s new on a particular service. In just a few clicks, JustWatch will tell you where to find it, whether it’s available on a subscription See Kim Komando Pg 38
www/underwritersinsider.com
5
CLAIMS & THE LAW
TO SUCCEED AT ARSON-FOR-PROFIT TAKES SKILL AND INTELLIGENCE Expert Analysis & Commentary by Barry Zalma, Esq., CFE
T
o successfully commit an arson-for-profit it is necessary to buy sufficient insurance, set a fire to occur when the arsonist has an alibi, leave no evidence of an intentionally set fire, and make a reasonable claim based upon the property actually destroyed. In State of Ohio v. Rickey Lamb, Jr., Court of Appeals No. F-17002, 2018 Ohio 3089, Court Of
guilty of aggravated arson, insurance fraud, grand theft, communications fraud, and falsification in a theft. He appealed to the appellate court to avoid jail.
but the contractor could not find any. So, they “aired out” the utility room. Mr. Klopfenstein offered to have his plumbing and heating contractor check for a leak, but Lamb indicated that the visit was not necessary; Lamb had purchased a FACTS “detector” and felt “safe.” At Aaron and Sarah Klopfenstein trial, Mr. Klopfenstein testified purchased a home at 104 Ash that the Lambs never asserted Street, Lyons, Fulton County, any other complaints about Ohio, as an investment property the condition of the Ash Street (the “Ash Street home”). On home. August 30, 2014, Lamb and his Join Barry Zalma’s Blog: wife, Desteny Lamb, entered http://www.zalma.com/blog The Man who Called 911 into a one-year lease agreement Scott Westbrook is the general for the Ash Street home. manager of Aarons Sales Appeals Of Ohio Sixth Appellate and Lease, a rent-to-own On December 22, 2014, Mr. District Fulton County (August company located in Wauseon, Klopfenstein received a text 3, 2018) Ricky Lamb, Jr. proved Ohio. On January 3, 2015, at message from Lamb indicating he did not have the ability to approximately 5:20 p.m., Mr. that the home’s utility room fulfill the needs of a successful Westbrook was driving north “smelled like natural gas.” Lamb arson-for-profit. toward Lyons on County Road indicated that he hired a “gas Rickey T. Lamb, Jr., was found 10-3 when he noticed a red or contractor” to check for leaks,
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
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
maroon SUV driving recklessly in a southerly direction. He was approximately one mile outside of the Lyons city limits. When he arrived in Lyons moments later, Mr. Westbrook observed “flames coming out of the side of [a] house.” It was Lamb’s Ash Street home. Mr. Westbrook grabbed his phone and called 911.
News of the Fire and the Lambs Reaction to It When the Lambs arrived at the house on the day of the fire, Lamb told firefighters that he had $20,000 in a metal box on the second floor in or near a dresser. Lamb also told firefighters that he had a number of firearms in the Ash Street home. Once the fire was under control, two firefighters searched the upstairs bedroom for Lamb’s metal box. They were unable to locate it. Lamb’s Interactions with a Nationwide Insurance Adjustor
that he earned too much to also discovered that the fire qualify for Medicaid. occurred less than six months after the policy’s effective date. Ms. Huberty read to the jury the The presence of these indicators extensive list of household and required Ms. Huberty to forward personal items the Lamb family the file to Nationwide’s Special claimed to have lost in the fire. Investigative Unit. The list included, $29,163 worth of Hallmark cards; $2,110 worth Nationwide’s Special of DVDs; a $2,499 sectional sofa; Investigative Unit a $2,000 Rolex; $3,000 worth of Christopher Lease is a special school books; a $6,000 camera; investigator for Nationwide’s Special Investigative Unit. Mr. Lease conducted two interviews with Lamb and attended Lamb’s examination under oath. All three events were recorded and transcribed.
The jury convicted Lamb on all but one count charged. At the sentencing hearing, Lamb was ordered to serve a term of six years in prison on Count 2, eleven months in prison on Count 4, eleven months in prison on Count 5, eleven months in prison on Count 6, and eleven months in prison on Count 7. “
a $1,200 pressure washer; a $799 fridge; a $499 stove; a $200 washer; a $200 dryer; a Tricia Huberty is employed $400 kayak; a $2,700 Vera Wang as an adjustor at Nationwide wedding dress; numerous guns; Insurance. During an in-person a $5,599 ring; $20,000 cash; and interview, Lamb informed Ms. numerous other items. Lamb’s Huberty that, as a self-employed claimed losses totaled $110,000. contractor, he made $82,000 in 2013 and $77,000 in 2014. Shortly after the in-person He also informed Ms. Huberty interview, Ms. Huberty obtained that his wife and children were a credit report and discovered receiving Medicaid and “food that the Lambs had recently stamps” and failed to mention gone through bankruptcy. She SEPTEMBER 2018
Table of Contents
During the examination, Lamb stated that he never informed Mr. Klopfenstein about the problems he was having with the breakers. He insisted that his rent had been paid through
April 2015.
Robert Investigation
Moody’s
Robert Moody is a fire investigator employed by Nederveld Engineering. He was retained by Nationwide Insurance, to conduct an “origin and cause” investigation at the Ash Street home. See Zalma Page 36 www/underwritersinsider.com
7
NEWS
CALIFORNIA INSURANCE AGENT CHARGED WITH STEALING OVER $10,000 FROM VICTIMS insurance policies. After Nguyen was terminated for improperly handling a customer check, the California Department of Insurance launched an investigation, which revealed Nguyen allegedly failed to remit ANTA ANA, Calif. — Luan client checks and altered voided Quoc Nguyen, 42, of Irvine, checks from clients to deposit was arrested on multiple $5,481.55 in stolen funds into felony counts of grand theft, his own bank account for burglary and identity theft after personal use. allegedly using his status as a licensed insurance agent to steal over $10,000 from six victims.
Former Orange County insurance agent allegedly steals over $10,000 from victims
S
“This agent not only allegedly stole from his clients, he left them needlessly vulnerable by failing to cover their insurance policies,” said Insurance Commissioner Dave Jones. “I have zero tolerance for agents who violate their fiduciary responsibility and take advantage of consumers.” Luan Nguyen, a licensed insurance agent at the time, was responsible for applying clients’ premium checks to their annuities and life 8
The Underwriter’s Insider
Luan Quoc Nguyen, 42
Table of Contents
The department also found evidence that he allegedly committed identity theft against a former roommate. Nguyen used the victim’s personal identifying information to submit a bogus annuity application to the insurer, likely in an attempt to earn fraudulent commissions. He also stole a business check from this same victim and wrote a fraudulent check in the amount of $4,800 to cover up another premium theft. Nguyen was arrested by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) while crossing the U.S.-Mexico border. He was booked into the San Diego Central Jail and then transferred to the Orange County Men’s Jail in Santa Ana. Bail is set at $100,000. This case is being prosecuted by the Orange County District Attorney’s office under CDI’s Life and Annuity Consumer Protection program (LACPP) which provides grant funds for the prosecution of financial abuse in life insurance and annuity transactions. SEPTEMBER 2018
NEWS
SEPTEMBER 2018
Table of Contents
www/underwritersinsider.com
9
ANALYSIS
INDEPENDENT CONTRACTOR VS. EMPLOYEE, OR HOW SOME WORKING PEOPLE REALLY SCREW THEMSELVES OVER, AND PUT YOU AND YOUR INSUREDS AT RISK. (AND WHAT YOU CAN DO ABOUT IT)
I
had a rich Relative, but late in his life he had a major business reversal and lost it all. Now he lives on Social Security payments of about $3500.00 per month. Now, while he is miserable, he does have a steady source of income that most people in this country and the world would be very happy with. While he was rich my relative paid Social Security taxes on his substantial income. Had things worked out the way my relation expected, this money from Social Security would be fun money. Now it’s his lifeline. But I am seeing more and more people suffering because they
are being paid as a business as under $500 a month in Social opposed to being paid as an Security just wasn’t cutting it. employee. This is cutting them off from ever accessing Social Example #2: Security. A very nice young woman my wife used to take care of came to Example #1: town; we met her for a meal. This Earlier this week I heard from an very pretty 20 something is now electrical contractor. Sounded making a living as a freelance yoga like a really nice guy who wanted instructor in NYC. Hearing about to get a workers’ compensation her work I asked, “what about your policy in order to work on some taxes”. Well, turns out she went to jobs that required insurance file her taxes a few years back and certificates. The Catch? He was when told she owed money she only going to work off and on part stopped filing taxes. time over the year, after all being over 80 he didn’t work as much as Example #3: he used to. When signing on a new customer, one of the employees pulled me So I asked, at 80, why are you still working? Well he said, getting See Employee vs Contractor Pg 30
About The Author: Michael Speizman is a voting member of the Florida Workers Compensation Fraud Task Force. Michael has over 25 years’ experience with Employee Leasing and Professional Employers Organizations as both an owner and broker. He is an experienced HR Outsourcing consultant and the owner and president of Employee Leasing Marketplace, Inc.. Michael’s specialties include Blue Collar Industries, JUA, Staffing, Transportation and hard to place risks of all sizes. You can reach Michael at: 561 239 7356 10
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
NEWS
FLORIDA WELCOMES GINGER, DFS’ NEW ACCELERANT DETECTION K9 CFO and State Fire Marshal Jimmy Patronis Welcomes New Arson K9 to the Team
T
ALLAHASSEE, Fla. – Chief Financial Officer (CFO) and State Fire Marshal Jimmy Patronis announced the addition of the newest member of his Bureau of Fire, Arson and Explosives Investigations K9 Accelerant Detection Team. Ginger, a 2-year old Yellow Lab, will be based in the Panama City field office. She was obtained through a funding and training program in conjunction with State Farm Insurance.
Detection Team through Maine Specialty Dogs in Gray, Maine. Although originally trained as a dog for the blind, she showed exceptional skills for detecting explosives and her training shifted.
State Farm Agent Mike Hall, “State Farm is proud to continue to support law enforcement agencies and the fight against fraud throughout the state of Florida.”
CFO and State Fire Marshal Jimmy Patronis, “I’m thrilled to welcome Ginger to our team. I know she will be a valuable asset in the detection of Her handler, Detective Jim explosives and save lives.” Stafford, has more than 15 Ginger joined DFS’ Accelerant years of experience working
12
The Underwriter’s Insider
with Narcotic and Explosives Detection Dogs. Ginger and Detective Stafford certified as a team with the Maine State Police after training together for a month in Concord, New Hampshire.
Table of Contents
The Bureau of Fire, Arson, and Explosives Investigations (BFAEI) is a law enforcement branch of the Department of Financial Services that conducts fire, arson, and explosives investigations as well as other related criminal investigations statewide. The use of arson detection canine teams serves as a valuable asset for BFAEI, whose mission is to enhance the life safety of all Floridians.
SEPTEMBER 2018
NEWS
LAAIA INTRODUCES MARIBEL RAMIREZ AS NEW EXECUTIVE MANAGER to management of large conferences, and networking associations. The trajectory of Maribel's career has enabled her am pleased to announce to fine tune a variety of skills in that Maribel Ramirez is relationship building, market LAAIA’s new Executive Manager.
Introducing our new Executive Manager
I
Maribel's professional experience can be easily summarized with one basic statement: She loves to help others. Maribel mentioned, "All the different industries I have been in, all have a consistency; the common denominator is customer satisfaction.”
Maribel also enjoys giving back to her community and has exemplified her generosity by dedicating her time as a board member of Heartbeat of Miami and has previously volunteered for a variety of local fundraisers in our community. Maribel enjoys spending her free time with her husband and her family, as well as reading and traveling. She also enjoys a good meal!
As of August 7th, 2018, Maribel will be transitioning to her executive role. Feel Maribel has over 30 free to reach out to Maribel years of experience in via email at maribel@laaia. the hospitality field com or call her directly Maribel Ramirez: "All the different industries I focused in the areas of have been in, all have a consistency; the common at 305-477-1442. She will business development, be happy to answer any denominator is customer satisfaction.” re-organization, strategic questions you might have alliances and sales. reach analysis, operations and looks forward to building management, and marketing. new bonds with LAAIA's agents Maribel's business savvy and company partners. is attributed to years of This has been evident through entrepreneurial activity, her years of assisting the Best Regards, from the travel management association convention Jeremiah Perez, PIAM, CPII of large corporate entities, planning. President, LAAIA
SEPTEMBER 2018
Table of Contents
www/underwritersinsider.com
13
NEWS
AAA: RIDE-HAILING TWICE THE COST OF CAR OWNERSHIP
O
RLANDO, Fla. (Aug. 21, 2018) – Ride-hailing services are a popular and convenient transportation option, but a new AAA analysis shows they are not a costeffective replacement for vehicle ownership. According to the AAA Foundation for Traffic Safety, the average driver in an urban area – the only setting in which using these services are a practical
full-time transportation option – drives 10,841 miles per year. While urban drivers travel fewer miles than those living in smaller towns or rural areas, relying on ridehailing services as a primary mode of transportation would cost $20,118 annually. This equates to more than twice the cost of owning a personal vehicle, even when factoring in the expense of fuel, insurance, parking and the
vehicle itself. “Whether you own a vehicle or not, ride-hailing services are a convenient transportation option,” said John Nielsen, managing director, Automotive Engineering and Repair. “However, with the average American city-dweller driving nearly 11,000 miles per year, a personal vehicle is still the more cost-effective choice.” For the study, AAA analyzed the costs of ride-hailing services (including the use of an occasional rental car) in 20 major urban areas. Based on the average number of miles traveled by city-dwellers see chart opposite page. According to data from AAA’s annual Your Driving Costs study, the average annual cost to own and operate a new vehicle, the costliest form of vehicle ownership, is $7,321 for 10,841 miles of travel annually. Understanding that parking costs can be a major ownership expense for those living in urban areas, AAA also analyzed the costs of flat-rate parking per year, which ranges from $706
14
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
the 20 percent of Americans considering an electric car, these vehicles offer lower fuel and maintenance costs. Show your car some love – It sounds counterintuitive, but spending money on routine maintenance can actually save you money in the end. To keep engines running longer, consider switching to synthetic oil and upgrading to TOP TIER™ gasoline.
(Phoenix) to $8,088 (New York), with an average cost of $2,728. For those with access to free parking, relying on ride-hailing services is nearly three times more expensive than vehicle ownership in these cities.
an attractive price point. Fuel responsibly – Avoid wasting money on premium gasoline unless your vehicle specifically requires it and, if you’re one of
Slow down – When gas prices are high, small changes in the way you drive can make a big difference.
See Ride-Hailing vs Owning Page 31
“For those who travel a very limited number of miles annually, or have mobility issues that prevent them from driving a personal vehicle, ride-hailing can be a viable and important option,” continued Nielsen. “But, for everyone else: the car is still king.” Vehicle owners looking to minimize their operating costs should consider the following: Buy (gently) used – Depreciation is the single largest expense for vehicle owners. By driving a pre-owned vehicle in good condition, ownership costs are significantly lower. A safe, reliable vehicle can be found at
Mr. Zalma recently published on Amazon.com with links at the Zalma Books site with the following volumes:
THE INSIDE TRACK - BREAKING NEWS CA’s 1st Cannabis Insurer Expands Coverage Options Drops Premiums
I
nsurance Commissioner Dave Jones approved a filing from Golden Bear Insurance Company amending its California Cannabis program product to lower rates, expand coverage options, and expand the classes of business they will cover. “Cannabis businesses and consumers will benefit from the new and expanding coverage options and lower rates.” Last November Insurance Commissioner Jones approved a Golden Bear filing making the company the first admitted commercial insurance carrier to file cannabis business insurance in the state. Since then, the department has approved five additional insurance companies to write 16
The Underwriter’s Insider
cannabis-related insurance Integrated Medicine products in the California (AIM), for participating market. in a more than $1.4 million insurance fraud scheme Florida: $1.4 Million stemming from 2,470 Acupuncture Fraud Scam false insurance claims. An investigation by Lands Owner in Jail Florida’s Bureau of ero Beach, Fla.—Florida Insurance Fraud (BIF) Cannounced the found that from September arrest of Jill Hollis Jaynes, 2013 to December 2016, a licensed acupuncture Jaynes enticed patients, and owner of Absolute covered under Blue Cross
V
Table of Contents
SEPTEMBER 2018
Image Credit: Creative Commons
Blue Shield (BCBS) plans, to use her acupuncture clinic by waiving the required deductible and coinsurance for patients. Jaynes also provided herbal supplements and vitamins at no cost as an incentive. Jaynes recovered the costs of the supplements by submitting more than 2,400 fraudulent insurance claims to BCBS and billed the same codes for insurance claims, regardless of the actual treatment provided to the patient. Jaynes is charged with racketeer influenced corrupt organization (R.I.C.O), false and fraudulent insurance claims, waiving of deductible/co-payment, patient brokering and organized scheme to defraud. If convicted, Jaynes could face up to 85 years in prison. Jaynes was arrested
SEPTEMBER 2018
and booked into the Indian River County Jail and bail is set at $955,000.
Lloyd’s of London Sneaks into Crypto Insurance Market
Alert: Unlicensed Agent Operating in East Central Mississippi
A
C
ommissioner of Insurance Mike Chaney and the Mississippi Insurance Department are alerting consumers that there is an individual operating in the Lauderdale County area that does not have an agent’s license and has no authority to collect insurance premiums or write insurance policies. Sylvia Lynn Dickinson of Bailey, MS has been acting as an insurance agent by collecting premiums and writing polices using the name Superior Insurance. Dickinson voluntarily surrendered her producer license to the Mississippi Insurance Department in October of 2015 and has NO authority to collect insurance premiums, or to sell, solicit or negotiate insurance on behalf of any company.
Table of Contents
ccording to an August 28th story on Coindesk. com, “Announced Tuesday, Kingdom Trust, a qualified custodian of some 30 cryptocurrencies and tokens, is enhancing its safe-keeping services with insurance cover for theft and loss due to natural disaster, courtesy of underwriters in the Lloyd’s market. Kingdom Trust, which came close to being purchased this year by BitGo, is a qualified custodian, which means it guards the private keys of troves of cryptocurrencies to a standard deemed acceptable to regulated financial institutions. Stepping back, the ultraconservative world of insurance is becoming slowly more interested in providing cover for properly custodied digital assets. In the U.S., AIG, XL Catlin, Chubb and Mitsui Sumitomo Insurance have been mentioned in the press, but for now, all are keeping a low profile. Lloyd’s corporation, which is the legal umbrella made up of groups of syndicates spreading risk across the market, would not comment on whether managing agents might be offering crypto theft cover, and the syndicates doing it were not named.”
www/underwritersinsider.com
17
Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)
THE INSIDE TRACK - BREAKING NEWS
SPECIAL REPORT: CRYPTOCURRENCY
CRYPTOCURRENCY OUTLOOK: 5 KEY INDICATORS IT’S HERE TO STAY 5 reasons cryptocurrency is likely to be ‘the future of money’ By Brian Sewell
S
ince 2010, when it emerged as the first legitimate cryptocurrency, bitcoin has been declared “dead” by pundits over 300 times. Critics have cited the cryptocurrency’s hair-raising price volatility, it’s scalability challenges, to handle large volume of transactions as a payment method, or the improbability of a central bank ceding monetary control to a piece of pre-set software code. Yet the adoption of bitcoin as an alternative to transacting by credit card or other payment methods continues to rise. In
fact, since its release as opensource software in 2009, Bitcoin alone has facilitated over 300 million digital transactions, while hundreds of other cryptocurrencies have emerged, promising to disrupt a host of industries. So, is cryptocurrency an irrational financial bubble waiting to pop—or will the technology do for transactions what the Internet did for communications? Five indicators suggest that as both a technology, to enable secure peer-topeer transactions, and as an emerging investment asset, cryptocurrency is only just getting started—and volatility will remain part of the equation for the foreseeable future.
A
1.
While the internet enabled the peer-to-peer exchange of digital communications, blockchain technology enables the peer-topeer exchange of value, without needing a trusted third party to authenticate transactions. Blockchain technology instead provides a system of trust vested in a process: of open source software, a digital peerto-peer transfer system, checks and balances, math-based incentives, software encryption, and an online chain of public transaction records. Blockchain technology thus promises a myriad of applications to instantaneously transact, initiate contracts, update ledgers, or share databases, in a way faster and cheaper than current alternatives.
bout the author: Brian Sewell is the founder of Rockwell Capital, a family office committed to educating investors about cryptocurrency, Zion Trades, a cryptocurrency trading platform, and Rockwell Trades, an institutional OTC cryptocurrency liquidity provider. He may be reached at http:// rockwelltrades.com. 18
The Underwriter’s Insider
Table of Contents
The value proposition
Bitcoin represents the first blockchain application and the first cryptocurrency, promising secure, efficient digital payments. At its current stage, bitcoin has particular appeal in emerging economies that lack a secure, robust system for financial payments. Both digital payments SEPTEMBER 2018
CC0 1.0 Universal (CC0 1.0) Public Domain Dedication
and cryptocurrency represent only one of countless potential applications of blockchain technology. As bitcoin and other cryptocurrencies evolve to achieve “scalability,” to process tens of thousands or more transactions per second, more applications will likely proliferate that integrate bitcoin and other cryptocurrencies, notably in the rapidly evolving fintech space.
2. Poised to change how the world does business Though blockchain technology faces challenges, the technology seems poised to transform virtually every sector in the U.S. SEPTEMBER 2018
and around the globe, from financial services and health care, to international shipping and economic development-promising swift, secure applications for the exchange of goods and services, the update of mutual ledgers, the sharing of records, the transfer of property ownership, and the execution of contracts. The use of blockchain technology by financial institutions already reached the early adoption phase in 2016, according to Accenture. And it’s estimated that fully 10% of world GDP could be stored on blockchain technology by 2025, according to a World Economic Table of Contents
Forum (or by 2027 according to Deutsche Bank.)
3. Bringing the technology to scale Bitcoin and other cryptocurrencies are still developing the capacity to function at mass scale. But technology such as Plasma, built on Ethereum, and the Lightning Network, a second layer payment protocol compatible with bitcoin is being tested which could enable cryptocurrencies to execute faster, cheaper payments and settlements than any other See Cryptocurrency Page 39 www/underwritersinsider.com
19
SPECIAL REPORT - INSURANCE QUOTES
STATE BY STATE COMPARISON OF THE EFFECT OF MINOR & MAJOR TICKETS ON AUTO INSURANCE RATES insuranceQuotes and Quadrant Information Services calculated the impacts of 17 common moving violations in all 50 states (and Washington, D.C.) using data from the largest carriers (representing 60-70% of market share) in each state/district.
I
t’s fairly well-known that a moving violation ticket is going to wreak havoc on your auto insurance premium. What may surprise some drivers, however, is just how financially significant certain moving violations can be. For the fourth consecutive year, insuranceQuotes commissioned a Quadrant Information Services study that found car insurance premiums can climb by as much as 96 percent after a single moving violation on average nationwide. The study analyzed the average national premium increase for one moving violation in 21 different categories, including careless driving, reckless driving, driving under the influence and speeding. As in years past, the study found the economic impact on one’s insurance premium varies significantly among different types of violations and among different states. For instance, one conviction for driving under the influence (DUI) — also known as driving while intoxicated, or DWI — will result in a national average premium increase of 96 percent (up from
20
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
94 percent in 2016); however, one infraction for not wearing a seatbelt only results in a 7 percent average premium spike. And while the average driver may find these numbers surprising, insurance industry experts and analysts are rather unfazed. Moving violations, they say, suggest risky driving behavior, and the riskier the driver the more expensive he or she is to insure. “Past driving habits are the best indicator of future driving habits,� says Gary Ahrens, owner of the Florida-based Ahrens Insurance See How Tickets Change Rates Page 40 SEPTEMBER 2018
Table of Contents
www/underwritersinsider.com
21
NINE OF THE CRAZIEST HOME-MADE VEHICLES YOU HAVE EVER SEEN
UNBELIEVABLE VINTAGE ADS
N
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.
L WATCH INDUSTRIAL BENDING MACHINES SHAPE RED-HOT STEEL
iquid Odorono to the rescue! A deodorant you “cannot wash off in the bath!” We are not sure what kind of glue this stuff was made from, but it was available to the poor, dumb beauty in the ad if she was only smart enough to figure it out, claims the company. “Two applications of Liquid Odorono a week are all most women need...”
FREE! JOIN MY NETWORK!
Instagram! Follow Me: @rj.0521
FREE INSIDER SUBSCRIPTION! SIGN UP YOURSELF OR ANY ASSOCIATE
HERE 22
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
NEWS
NEW BOOK TACKLES UNFORTUNATE TRUTH: AMERICA UNHAPPIER THAN EVER DESPITE RECORD-BREAKING ECONOMIC GROWTH (STUDY) United States has fallen in the social connection and support rankings, with America never networks.” Americans are so unhappy and having even cracked the top 10. outlines 8 proven strategies to The World Happiness Report become happy 88% of the time The report suggests three main provides insight as to what these variables prompting declining social issues are, which includes a By Merilee Kern, MBA happiness in the United States: lack of social support, increasing Despite achieving 4% GDP behind the fall in America’s loneliness and isolation and the growth, America has fallen to 18th happiness, citing “America’s fact that people are spending a in the World Happiness Report’s subjective well-being is being disturbing amounts of time on annual ranking of more than systematically undermined by social media and smartphones. 150 countries—an index based three interrelated epidemic The report also points to America’s notably obesity, ominous economic issues such on variables including social diseases, support, healthy life expectancy, substance abuse (especially as financial stress and income addiction), and equality; the rise in materialism social freedom, generosity and opioid absence of corruption. Various depression.” Other related media that’s been seen in recent media reports in relation to this reports assert the root causes years that’s has been linked to year’s study underscore this is of America’s fall in happiness depression; physical problems the second consecutive year the are due to a social demise (sugar addiction, obesity, lack of amid a “disintegration of true exercise).
New book examines why
A
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
24
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
NEWS “The negative emotions resulting because in Mandarin the number from America’s problems noted 8 is a homonym for good fortune. in the World Happiness Report, whether independently or in 8 Ways to Happiness is for combination, only breed more anyone who has stopped to ask and more unhappiness and may themselves, “Am I happy?” or “Why actually lead to other side effects am I not happy?” and is not willing like hatred, shame and fear,” to spend 10 years in therapy or says Dr. Marissa Pei, a consulting take a pill with side effects that can psychologist and make them feel author of the even worse than 8 Ways to newly-released they do now. Happiness is for title, “8 Ways to Fu r t h e r m o r e , anyone who has stopped Happiness from it is for those Wherever You to ask themselves, “Am I who already Are.” “Although are taking happy?” or “Why am I not Americans can’t medication for happy?” and is not willing change the their “Dis-Ease” circumstances with life but to spend 10 years in in their country still not feeling therapy or take a pill with overall, they can better. The personally take side effects that can make eight chapters steps toward them feel even worse than are focused on achieving an common places they do now.” enhanced level of that human happiness in their beings get own lives—and it’s incumbent on “stuck,” such as loneliness, loss, them to be proactive in doing so.” hatred, shame, and heartbreak, with relatable snapshots and So it seems Dr. Marissa’s book, 8 exercises to build new roads into Ways to Happiness from Wherever hope, love, faith, and happiness. You Are, is timely and certainly needed. In it, she addresses eight Given her professional pedigree, ways to transition from sadness Dr. Pei doesn’t just talk the talk, to being happy 88% of the time. she’s walked the walk on the front Why 88%? Dr. Marissa explains that lines. This Doctor of Organizational it’s not possible to be 100% happy Psychology is an inspirational because everyone needs contrast speaker, author, life balance coach in their lives and can’t know and global thought leader who has happiness if there aren’t some spoken, coached and facilitated points of unhappiness to contrast with hundreds of Fortune with. Her Chinese heritage also 500 companies like Johnson & helped her arrive at this number Johnson, Wells Fargo, Cedars-Sinai, SEPTEMBER 2018
Table of Contents
AT&T, Mattel, Toyota and Bank of America over the past 27 years. Also a TV commentator and on-air personality, affectionately known as “the Asian Oprah,” her popular talk radio show “Take My Advice, I’m Not Using It: Get Balanced with Dr. Marissa” is syndicated on CNBC News Radio and iHeart Radio, among other outlets. As with any and all of us, Dr. Marissa herself is not immune to unhappiness. Her own pain from the past, and fear of the future, helps readers identify with her new 8 Ways to Happiness book that ultimately relays a message of hope. She provides those struggling to find happiness with alternative ways of seeing their own reality, as well as a chance to practice balance tools that shovel out the “shiitake” from their past and return it as fertilizer for new seeds of understanding about the unique, beautiful, wonderful, precious beings we all are. Sources: h t t p s : / / s 3 . a m a z o n a w s. c o m / happiness-report/2018/WHR_ web.pdf https://www.google.com/search ?q=america+18th+World+Happ iness+Report&ie=utf-8&oe=utf8&client=firefox-b-1 https://www.forbes.com/sites/ alicegwalton/2018/04/03/nordiccountries-continue-to-rank-highin-happiness-while-america-falls/ www/underwritersinsider.com
25
“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.
Sidewalk vs Bike Lane
A
couple of months ago, you were answering a question from a reader on the merits of riding a bike to work. You said riding in the bike lane was safer than riding on the sidewalk. I totally disagree. I feel much safer when I’m on the sidewalk - another 6 feet from the fast moving traffic. Other than that, it was a good column and I do ride my bike to my insurance office in Denver every day the weather allows. D.K. Denver, CO
ADVISOR
the world of cycling feel the same. But this is one of those times when your intuition is wrong. Here’s why you want to avoid the sidewalk and why you are at greater risk when riding thereon:
with the contingency of crosstraffic at every driveway or entrance way as well as the terrain change as you ramp up and down the sidewalk which will slow you considerably. When it comes to sidewalks and traffic, right-of-way is up Driveway Cross-Traffic in the air, but cars will always 1) Cars exiting a driveway win any contest - so you must or entrance do not typically yield. stop at the sidewalk. They continue on to the stop sign Sidewalk Hazards or roadway which may be 6’- 2) Sidewalks are loaded with 10’ beyond the sidewalk. If slow pedestrian traffic and you are cruising the sidewalk, other hazards. Baby carriages, you must slow down and deal dog-walkers, children
D.K., the portion of your question I understand and agree with is, “I feel safer when I’m on the sidewalk.” Many new to 26
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
Cycling Image: Attribution 2.0 Generic (CC BY 2.0)
on bikes, power-walkers, gramma on her way home from the grocery store and folks waiting for buses. The sidewalk is one big obstacle course waiting to confound your cycling and slow your travel. Remember: If you are a typical cyclist traveling to work, you will be humming along at 14-16mph. (follow me and it will be 18-23mph) The average pedestrian is walking at 3mph. Instant conflict...
remain watchful, when you driveways and entrance ways are riding in the designated without slowing down and you avoid pedestrians and other sidewalk hazards altogether. All that being said, there are occasional times when the sidewalk is appropriate for cycling. Narrow roads, high traffic, high-speeds and no bike lane might dictate that choice.
bike lane, you enjoy the same right-of-ways and privileges as motor vehicles. You breeze Right-of-Way & Privileges through intersections on the 3) While you must always green light, you zoom past SEPTEMBER 2018
Table of Contents
The #1 thing you can do to increase your safety on a bike is to increase your visability. Invest in a good set of front & rear lights and use them day and night. www/underwritersinsider.com
27
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
FREE CLASSIFIEDS! HELP WANTED — POSITION WANTED 4 — SALE ITEMS
CLICK HERE! 28
The Underwriter’s Insider
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
Table of Contents
Loss Control Rep Wanted Consulting firm looking for experienced loss control reps in FL and AL. Fee based work. Contact: buds@narco.biz 18-7
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
Experience CSR/ agents wanted! Palm Beach/Ft. Laud Access Insurance underwriter, LLC has two positions available, great pay commensurate with experience along with outstanding benefits! Work with one of the largest and fastest growing agencies in Florida! Call or email Phil Wardell, pwardell@accessaip.com or 954-565-4666 ext. 252 pwardell@accessaip.com 18-06 SEPTEMBER 2018
Experienced CSR Wanted - Jacksonville
Experience Commercial CSR Wanted Duluth GA
Experienced CSR? Looking for a new opportunity? Come join our winning team and Jacksonville’s Best Place to Work at We Insure! Inquire today by emailing nick.dakuginow@weinsuregroup.com
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.
Contact: nick.dakuginow@weinsurgroup.com 18-7
Looking for Agents working in the Business Marketplace !
Add Business Consulting to your core insurance practice. Open new doors to Business & Professional Owner’s. You do not need to change any contracts for this opportunity. Go to: http//www.strydeadvisors. com/information/stryde.cfm? id=136713&page=lifeandfinanc ial This is a nationwide opportunity. More information needed contact me at: nwinsuranceagencies@gmail.comnwinsuranceagencies@gmail. com 18-06
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
CLASSIFIEDS! HELP WANTED — POSITION WANTED 4 — SALE ITEMS
CLICK HERE!
larrytalbert@talbertservices.com 17-11
Looking to buy a P&C agency in PB county. Please call 561-584-0732 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 18-4
SEPTEMBER 2018
FREE
Table of Contents
Sign Up Today! www.fyiexpress.com www/underwritersinsider.com
29
ANALYSIS Continued From Page 10
EMPLOYEE VS INDEPENDENT CONTRACTOR aside and confided that he had never paid taxes before. This gentleman was in his early sixties and bragged about his past work for “the Gottis” and others. All of his prior jobs involved getting paid cash off the books. He then asked me how he could get Social Security in a few years. Two notes, 1, I did not sign up this customer and 2, this guy looked as if he was drinking an entire bottle of Scotch every day since he was 15. All of the people above have fallen into a trap of being treated as business when in fact they have acted as employees. Or they were enjoying getting paid cash without paying any taxes or both. Businesses are expected to manage their cash flows to be able to pay taxes on a quarterly and annual basis. Employees are subjected to withholding on every check they get to ensure that when the year-end comes, the taxes they owe can be paid with the money already collected from them.
30
The Underwriter’s Insider
All of these people are royally screwing themselves over by excluding themselves from the Social Security System. In order to qualify for Social Security you must have worked for at least 10 years (40 quarters) same for Social Security disability. What you get from the program is dependent on what you put in. Tell the government you made $1000.00 per month; expect a very small monthly check. In todays gig economy more and more workers are putting themselves in debt to the IRS, while at the same time putting them outside the Social Security system, or permanently lowering their monthly benefit to something below poverty level. What does all of the above have to do with Insurance? Desperate People Do Desperate Things... We all see ridiculous claims being made against our customers, but in many cases, these ridiculous claims are being made out desperation, not greed. The guy who worked for cash his whole life, the free-lance yoga instructor the 80+ year old electrician, all have to sue someone and everyone if something bad happens to them. They have no other choice except poverty and death.
for you and your vendors is paid as an employee with taxes withheld from their paychecks and workers’ compensation coverage. (IOW, don’t pay everyone you can as a “1099”) To those of you in the Gig economy, or who work for your selves, save over 20% of every dime you make to pay your taxes, and look into getting workers’ compensation coverage for yourself. Or get a real job from a real business that treats you as a real employee.
FREE! free insider subscription! sign up yourself or any associate at this link
HERE
My advice to business owners, make sure everyone who works Table of Contents
SEPTEMBER 2018
ANALYSIS - AAA Continued From Page 27
As North America’s largest motoring and leisure travel organization, AAA provides more than 59 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all To determine the average travelers. Motorists can map a number of miles traveled by route, identify gas prices, find a city-dweller, AAA’s analysis discounts, book a hotel and leveraged data from the AAA access AAA roadside assistance Foundation for Traffic Safety’s with the AAA Mobile app for American Driving Survey. iPhone, iPad and Android. Learn AAA’s Your Driving Costs data more at AAA.com/mobile. served as the basis for all car ownership calculations, factoring in depreciation, fuel, maintenance, repair, financing, insurance, license, registration costs and taxes.
RIDE HAILING FAR EXCEEDS COST OF AUTO OWNERSHIP
Total cost of ride-hailing is based on data from 243,838 economy-level, single rider trips in 20 U.S. urban areas and does not factor in costs associated with carpooling or multimodal transportation options. On average, those using ride-hailing services spent an average of $13.15 per trip, spending 15.11 minutes and traveling 6.66 miles. Ride-hailing costs include the occasional use of rental vehicles for longer distance travel. Full methodology can be found in the study’s fact sheet.
SEPTEMBER 2018
FREE CLASSIFIEDS!
HELP WANTED — POSITION WANTED 4 — SALE ITEMS
CLICK HERE!
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!
Table of Contents
www/underwritersinsider.com
31
NOTABLE QUOTABLES IN THE NEWS WITH COMMENTARY
SAY WHAT? Evil A Make-Believe Concept?
Y
ou watch the news and you read the papers and you’re led to believe that the world is a big, scary place. People, the narrative goes, are not to be trusted. People are bad. People are evil. People are axe murderers and monsters and worse. I don’t buy it. Evil is a make-believe concept we’ve invented to deal with the complexities of fellow humans holding values and beliefs and perspectives different than our own—it’s easier to dismiss an opinion as abhorrent than strive to understand it. Badness exists, sure, but even that’s quite rare. By and large, humans are kind. Self-interested sometimes, myopic sometimes, but kind. Generous and wonderful and kind. No greater revelation has come from our journey than this.”
In all, four people were killed: Mr. Austin, Ms. Geoghegan and cyclists from Switzerland and the Netherlands. Two days later, the Islamic State released a video showing five men it identified as the attackers, sitting before the ISIS flag. They face the camera and make a vow: to kill “disbelievers.”
Cuomo’s America Never Was Great
W
e’re not going to make America great again — it was never that great. We have not reached greatness. We will reach greatness when every American is fully engaged. We will reach greatness when discrimination and stereotyping against women — 51 percent of our population — is gone and every woman’s full potential is realized and unleashed.”
From the blog of Jay Austin, 29, who with his girlfriend, Lauren Geoghegan, 29 decided quit their jobs and take a bicycle trip around the world last year. Austin may not have believed in evil - but ISIS does. The young American couple and two other cyclists were naively riding through Tajikistan, along the border of Afghanistan, were first mowed down by a car and then brutally stabbed to death. The New York Times reported: “The men’s Daewoo sedan passes the cyclists and then makes a sharp U-turn. It doubles back, and aims directly for the bikers, ramming into New York Governor Andrew Cuomo, a them and lurching over their fallen forms. progressive Democrat hero seeking a third 32
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
term during a bill-signing in August during a weak attempt to rebuke President Trump’s “Make American Great Again” slogan. Within a very short time, his spokeswoman tried walking it back, but you can’t, as they say, put the toothpaste back in the tube. The media and pundits picked up on the comment and it was widely panned as a great gift to the Republicans in the upcoming election.
Aretha Franklin Tribute Flashback...
H
ere’s the root of what I’ve been talking about: In order to change America, we must change black America’s culture. We must do it through parenting. In order for the parenting to go forth, it has to be done in the home. The home.” Rev. Jasper Williams Jr., the pastor of Salem Bible Church in Atlanta, eulogizing Aretha Franklin ran into harsh criticism from Franklin’s family for discussing single parent families within the Black community. Franklin was a single mother to four children and many interpreted his remarks as a dig toward the singer.
space craft docked at the International Space Station was really caused by a drill and it may have been done deliberately, back on Earth or in space. NASA believes it absurd to think any of the professional astronaut crew would have deliberately drilled a hole in the space craft while in orbit. The hole was repaired with a specialized tape made for that purpose.
Worst Marketing Move of the Century?
P
icking someone who hates America and Americans as your mascot is not such a wise business decision. Esp when there are so many worthy people out there who could be Nike’s poster child. But no. Nike chooses a jerk. Blatant far left virtue signalling will result in a backlash against Nike’s antiAmerican policies. Hope they lose another $3 Billion this week.”
T
he kneeling was bad enough. It’s just a matter of respect. You don’t have to love it but you should at least respect it. But then came the “cops Paranoid Russia? as pigs” socks. And the interviews in which it became apparent that Kap was borderline here were several attempts at imbecile... couldn’t even really explain his drilling. We are checking the actions with anything approaching logic. Earth version. But there is another Just screw it.” version that we do not rule out: deliberate interference in space. We have already ruled A couple of bloggers reacting to the news that out the meteorite version.” NIKE chose an ad featuring and supporting
T
Colin Kaepernick - which has cost the company Russian space agency chief Dmitry Rogozin $4 BILLION in market capitalization so far! said the hole detected Thursday in a Russian Dumbest marketing move in history? SEPTEMBER 2018
Table of Contents
www/underwritersinsider.com
33
BACK ISSUES
34
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
BACK ISSUES
SEPTEMBER 2018
Table of Contents
www/underwritersinsider.com
35
INSURANCE AND THE LAW Continued From Page 7
ZALMA After interviewing Lamb Mr. Moody began a physical examination of both the inside and the outside of the fire-damaged structure. Mr. Moody testified that they found what appeared to be remnants from a space heater and a single magazine to a small caliber hand gun. When Mr. Moody went to the upstairs bedroom, he found no evidence of the $20,000 in cash and no evidence of any other guns. The bedroom contents had suffered soot damage, most of the personal effects were not damaged by flame and were all readily identifiable.
VERDICT The jury convicted Lamb on all but one count charged. At the sentencing hearing, Lamb was ordered to serve a term of six years in prison on Count 2, eleven months in prison on Count 4, eleven months in prison on Count 5, eleven months in prison on Count 6, and eleven months in prison on Count 7. The sentences were ordered to be served concurrently. The trial court also ordered Lamb to pay $8,381.07 in restitution to the State Fire Marshall’s Office and $18,500 in restitution to Nationwide Insurance. 36
The Underwriter’s Insider
ANALYSIS
911 to report the fire. Also, a copy of Lamb’s phone bill was presented to the jury. The phone bill shows that calls were made between Lamb and his wife at the same time the two of them—according to Lamb’s timeline—were traveling to Toledo in the same vehicle.
One is qualified as an expert witness so as to properly provide expert testimony if the testimony provided exceeds the knowledge or experience possessed by a layperson, possesses specialized knowledge, skill, experience, training and education regarding the subject matter, There was no direct evidence Lamb intentionally and the testimony is based upon that started the fire. However, that reliable specialized information. deficiency does not preclude Robert Moody is a fire an arson conviction. The courts investigator employed by have consistently noted that Nederveld Engineering. Mr. arson prosecutions rely heavily Moody was qualified to testify on circumstantial evidence. as an expert fire investigator because of his specialized knowledge, skill, and experience regarding the subject matter. It is clear that the experience and training of the expert witnesses who testified qualify them to testify as expert witnesses at trial. Each testified extensively as to their training and experience. Each were crossexamined on their opinions, methods, and observations. The assumptions the arson investigator made when categorizing the fire as “incendiary” were based on his experience as a fire investigator and unique facts in the record. There is evidence that Lamb left his home no more than 20 minutes before a driver passing through town called Table of Contents
See ZALMA Page 41
FREE! free insider subscription! sign up yourself or any associate at this link
HERE SEPTEMBER 2018
www.
.com
Accessible
Simple
Reliable
Powerful
Affordable Secure
$
Management & Rating
AccuAgency provides a secure location for all your agency's customer data. Disaster-proof your data, improve E&O documentation, enhance operational efficiency, and boost your profitability. When you are empowered by AccuAgency, your clients are provided more personal attention. Your staff can devote more time to customer service instead of dealing with unorganized files and documents.
Cloud-based rating and management at your fingertips
If you write auto insurance and represent multiple auto insurance carriers, AccuAuto, our personal auto comparative rater, is affordable, easy-to-use, and fully integrated with our AccuAgency agency management system.
Take AccuAgency and AccuAuto for a test drive
If you would like to try AccuAgency and/or AccuAuto for a risk-free 30-day demo, please call (800) 229-2009 ext. 3. One of our training staff will schedule hands-on training to help you learn and appreciate the many features available.
SEPTEMBER 2018
(800) 229-2009 ext 3 Mention code UWI sales@accuagency.com Request more info at http:/ /accu.agency/UWI www/underwritersinsider.com Table of Contents
37
TECHNOLOGY Continued From Page 5
KIM KOMANDO
also check and see whether the file was downloaded on the other end, so you don’t have to wait for the recipient to send confirmation.
4. Write like your English teacher wants you to
Ernest Hemingway was great at a lot of things: hunting wild animals, out-drinking his service, and how much it costs to Click here for this file sending friends and writing very concise sentences. Hemingway was rent or buy. site you’ll want to bookmark now famous for his stripped-down because the time will come when literary style, omitting any Since platforms like Netflix vary you need it. adjective and passive verb that around the world, you can also wasn’t necessary. search by country for available 3. Make sure hackers are not content. Click here to check out lurking in your router Hemingway Editor is designed to this streaming service’s search You’re using internet security mimic his minimalist prose. Copy site for yourself. software. You have secured your and paste a few paragraphs into 2. Simple way to send large wireless network. You’ve enabled the site’s text box, and the editor your network’s firewall. You’ve will outline problematic parts files privately and securely got complex passwords that such as long sentences, obscure It’s bound to happen. You have a contain an uppercase letter, a words, and confusing passages. large file that you need to email. number, a sign, and the name of Your email program chokes on your 4th-grade teacher. All done, For an all-encompassing the file’s size and your service right? grammar checker, Grammarly provider politely posts a message has taken homes and offices by that says, “The file size exceeds One of the most overlooked storm. You can paste a document the limit allowed.” Thanks. vulnerabilities is your router. and have it checked at the Hackers can break into this device Grammarly site. The app and Send to the rescue. It lets you as easily as any other, a process browser extension works across share files in a fast, safe and called “DNS hijacking,” and most programs and platforms, pointing temporary way. Upload a file – victims wouldn’t think to check out your split infinitives in emails, up to a gigabyte, in almost any whether it’s secure. word processors, websites, or on format – and Send will create social media. After all, using bad a URL, which you send to the This site offers a free service that’s grammar on Facebook can create recipient. specially designed to scan your a tense situation. router for break-ins. You may be Once the file is downloaded surprised how easy and fast this 5. For the tinkerers among us somewhere else, it’s deleted from diagnostic is; just click the “Check the internet, and it automatically Your Router” icon, and you’ll Apps, browsers, devices, smart gadgets – they all come in vanishes after 24 hours. receive a near-instantaneous different forms, and they don’t report. all cooperate with each other. This, as well as Firefox’s respected encryption software, ensures Click here to test your router now We often struggle to hook up that your file won’t fall into the for any vulnerabilities. hands of some hacker. You can See Komando Page 44 38
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
SPECIAL REPORT: CRYPTOCURRENCY Continued From Page 19
uneven pace of adoption, and regulatory uncertainty. Bitcoin, for example, generated a fouryear annualized return as of January 31st 2018 up 393.8%, a one-year 2017 performance up 1,318%. Bitcoin has experienced payment method. Making even larger percentage drops cryptocurrency scalable would in the past, before resuming an unleash an explosion of new upward trajectory. applications to bring new levels of efficiency to how organizations I believe roughly thirty percent operate -- from business-to- of bitcoin investors over the past business, business-to-consumer, half year are speculators, since government-to-consumer, and the cryptocurrency has dropped on negative news by as much every combination thereof. as a third. In my view, bitcoin and other cryptocurrencies will 4. Anti-inflationary experience many more bubbles While a central authority can and bursts, in part, fueled by unilaterally inflate a traditional speculators, who buy on greed currency by printing more money, and sell on fear. a legitimate cryptocurrency has an anti-inflationary process But as the dotcom era built into its code. Bitcoin’s, for underscores, the bursting of example, limits the production an investment bubble may of monetary units to 21 million signal both a crash and the by 2140. This feature could dawn of a new era. While make bitcoin, or its peers, viable irrational investments in internet alternatives in countries with technology in the 1990’s fueled dysfunctional economies, where the dotcom bust, some wellcurrencies have lost both value run companies survived and led and public confidence. the next phase of the internet revolution. Similarly, despite 5. Investment bubbles and periodic price crashes, I believe a bursts small group of cryptocurrencies other blockchain High volatility is inherent in and the investment value of this applications including bitcoin nascent technology, due to will become integrated into our factors including technological daily lives, whether we realize it setbacks and breakthroughs, or not.
CRYPTOCURRENENCY
the impact of pundits, the SEPTEMBER 2018
Table of Contents
As Harvard Business School Professors Marco Lansiti and Karim R. Lakhani observe that blockchain technology, “has the potential to become the system of record for all transactions. If that happens, the economy will once again undergo a radical shift, as new blockchain-based sources of influence and control emerge.” Although “irrational exuberance” will continue to impact the price of cryptocurrencies, this disruptive technology represents the future not only of money, but of how the world will do business.
Sources • https://99Bitcoins.com/obituarystats/ • https://blockchain.info/charts/ntransactions-total?timespan=all • https://matchcoins.info/300-cryptomap-matchcoins-info.pdf • https://www.accenture.com/ t20160608T052656Z__w__/us-en/_ acnmedia/PDF-5/Accenture-2016-Top10-Challenges-04-Blockchain-Technology. pdf#zoom=50 • http://www3.weforum.org/docs/ WEF_GAC15_Technological_Tipping_ Points_report_2015.pdf Deutsche Bank, https://www.db.com/newsroom_news/ cio_insights_reflections_-_cryptocurrencies_ and_blockchains_-_EMEA_-_client_ready.pdf • https://en.wikipedia.org/wiki/ Lightning_Network • http://Bitcoinist.com/lightningnetwork-will-finally-help-Bitcoin-beatcredit-cards-paypal/, https://twitter.com/ Blockstream/status/997025442090684416 • http://markets.businessinsider.com/ currencies/btc-usd • https://hbr.org/2017/01/the-truthabout-blockchain www/underwritersinsider.com
39
SPECIAL REPORT: INSURANCE QUOTE Continued From Page 21
STATE BY STATE COMPARISION OF HOW MINOR & MAJOR TICKETS IMPACT AUTO INSURANCE RATES Agency. “Statistically, prior moving violations and accidents have a higher correlation with increased claims costs in the future. In the 31 years I have owned my agency, moving violations have always had a significant impact on your premium.”
result in different premium increases comes back to the predictive nature of driving behaviors, says Robert Nevo, a former Georgia police officer and current owner of Nevo Driving Academy.
“The main difference between reckless driving and careless “Moving violations are typically driving is the driver’s state of mind,” weighted with a point system. Nevo says. This makes an excessive speeding violation much more severe than, “If a driver is operating a motor say, a broken taillight violation,” vehicle in a potentially dangerous Nevo says. “Insurance companies manner, but without specific intent to harm — like doing donuts in an empty parking lot — it would fall under careless.”
Here are some of the study’s key findings along with some advice on what you can do after a moving violation to keep your rates as low as possible.
Premium increase will depend on the specific violation The study compared the average premium increase for one moving violation in many different categories. Above are the average national premium increases for the most expensive violations. The fact that different violations 40
The Underwriter’s Insider
Reckless driving, however, concerns more “intentional acts,” such as driving in a way that shows no regard for the safety of others.
often see more points against a driver’s license as an increased risk. Therefore, you’re going to see higher premiums for that driver.” Take, for instance, the difference between reckless and careless driving. According to Nevo, careless driving is usually defined as “a minor lapse in judgment,” such as following too closely to the vehicle in front of you. Table of Contents
If that same driver, Nevo says, “were operating a motor vehicle with specific intent to cause harm and with disregard to the safety of other people or property — such as donuts in the middle of a busy intersection — it would fall under reckless.”
Your premium increase could be expensive Each of these percentage increases can have a significant financial impact on a driver’s premium. For instance, according to the National Association of Insurance See How Tickets Change Rates Page 52 SEPTEMBER 2018
INSURANCE & THE LAW Continued From Page 36
ZALMA Much of the evidence produced at trial focused on the fraudulent insurance claim Lamb submitted to Nationwide Insurance. The state presented sufficient circumstantial evidence of Lamb’s guilt on the aggravated arson charge. Lamb made numerous inconsistent statements to investigators on a number of topics. Lamb also made conflicting statements to others about when he discovered and to what extent he believed the fire was covered by insurance. Furthermore, Lamb’s statements about when he discovered and reported the cracks in the gas line were inconsistent with his wife’s testimony about when the cracks were discovered and reported. It is clear from the evidence that Lamb had both a motive and an opportunity to start the fire. Lamb and his wife were experiencing financial difficulties. In 2013, Lamb and his wife filed Chapter 7 Bankruptcy. At the time of the fire, Lamb’s wife and children were receiving public assistance. Just days before the fire, Lamb indicated he would be late in making his SEPTEMBER 2018
$700 rent payment for January 2015 although he claimed he had $20,000 in cash in the house. Lamb’s tenant insurance went into effect 64 days before the fire that destroyed the Ash Street home. Lamb’s wife testified that they purposely inflated the replacement value of their possessions. A reasonable fact finder could have inferred, and found beyond a reasonable doubt, that Lamb set the fire that destroyed the Ash Street home. This is not the exceptional case in which the jury lost its way and created a manifest miscarriage of justice.
ZALMA OPINION Lamb simply lacked the skill to succeed at a complex fraud scheme. He did not have the assets to support his claimed earnings and claimed loss because of the bankruptcy less than two years before the fire, he claimed a Rolex that would have reasonably gone to the bankruptcy trustee. He was the last at the house and did a fairly sloppy job of setting the fire, even leaving a match near the point of origin and claiming loss of cash from a room not damaged by the fire. He belongs in jail since his actions could have killed or injured neighbors or firefighters if a passer-by had not reported the fire shortly after it started. 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! www/underwritersinsider.com
41
SPECIAL REPORT
HOW (AND WHY) TO WRITE A PRESS RELEASE By Ron Manera, Senior Editor
T
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
42
The Underwriter’s Insider
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
I
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 SEPTEMBER 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
N
SEPTEMBER 2018
Table of Contents
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.
www/underwritersinsider.com
43
TECHNOLOGY Continued From Page 38
10 INCREDIBLY USEFUL ONLINE SITES YOU CAN USE RIGHT NOW!
one service to another, especially when they were created by rival developers. Sure, some adept people can easily figure out in minutes how to tell their Amazon Echo to start their Roomba vacuum and lock up the house. But then, there’s this gem for the rest of us. IFTTT is short for “if this then that,” and the site is designed to help different devices and services talk to each other. These so-called “recipes” can make your gadgets do things as in a chain of events. Want your smart lights to blink three times when you are tagged in a photo on Facebook? Or how about getting a notification on your phone when your favorite artist tweets about tickets to a concert? IFTTT can automate webbased tasks, and you can set up “triggers” and “applets” to set certain behaviors in motion. If you’re ready to take your tech to the next level, click here to learn more about creating your own 44
The Underwriter’s Insider
recipes.
Don’t sweat it. I’ve used this site for years. It is designed to handle 6. Powerful photo editor that all sorts of file format conversions, doesn’t require a graphics from one type to another type and back again. Simply upload degree your file, decide the output Adobe’s Creative Cloud boasts format, and click “Convert,” and some of the most sophisticated the website will do the rest. This multimedia software on the is a real godsend if you work with planet. But not everybody wants lots of different media. to muddle through Photoshop, with its complex and suite and Click here for a functional site that thousands of minute visual simply does what it says it will do options. That’s probably why and nothing more. Adobe acquired Aviary, the simple-to-use site that can 8. Be the inbox envy of your turn ordinary images into friends photographic masterpieces. If you are failing at obtaining the Aviary has many familiar tools, zen-like “zero inbox” status, this such as the cool filters of site might help. It doesn’t take long Instagram and the corrective tools for a busy person to accumulate of Apple Photos. But Aviary has a a few thousand emails. As I write particularly friendly interface and this, I have 156 unread messages can be used both on your desktop waiting for my attention. and portable device. If you like to edit photos, you’re going to love When you apply Clean Email to your inbox, you receive a detailed this site. (but readable) report, with Click here and prepare to be sophisticated data about your amazed at what you can do with a correspondence. You learn about the senders, your response rate, photo in only a few clicks. and which emails can be safely 7. A truly boring site that eliminated. Clean Email is free for the first thousand emails, and then you’ll tap into a lot there’s a monthly subscription fee. Many people struggle to convert You can also use it across multiple a Word document into a PDF. Or accounts. they have a WAV file that they need to condense into an MP3. Or you can do what I have done to What about a PNG that you want obtain zero inbox status. Simply in JPG form, an XLS to CSV, or delete all the inbox email and see EPUB to MOBI? who reaches out again because Table of Contents
SEPTEMBER 2018
they will if it’s that important.
9. Get your stuff organized
Print Friendly takes the headache out of this process: Just paste a URL into the field and hit “Preview.” Print Friendly trims away a lot of the extraneous information and gives you the meat of the page, and you can review your document as a PDF before hitting “Print.” The service works better for some websites than for others, but it’s shockingly effective, especially for software that’s free.
Whether it’s your baseball card collection or bowling league teammates, you’re keeping a list of things. When it comes to technology, lists can be put into a program called a database. The individual items are called records. Once you enter the records into a database, you can categorize, identify, total, and sort Click here to save yourself from all kinds of ways. printer frustration as well as wasted ink and paper. Using a secret URL, Sodadb gives you a template to build an online Alternatively, you can use the database, and you can manage browser extension CleanPrint. up to 10,000 individual records Technically, this is not a website for free. There’s no signup or but it works like a charm. Click subscription fee; you don’t even here for the download links for have to sign into anything. the major browsers. Sodadb (which stands for “Simple Online Database”) arranges your data and keeps it safe from hackers, using SSL security. You could use this online database for business, collectibles, sports teams, gifts – anything you like.
10. Print online without all the ads
articles
You would think, after all these decades, it would be easier to print pages off the internet. But printers and websites have never been on good terms, and you never know what kind of garbled papers will scroll out of your machine.
SEPTEMBER 2018
Here’s the answer to the number of websites in the world today. InternetLiveStats has been tracking this data for many years. There is a live ticker right on their site. At the time of writing, that number was 1,331,525,090. You can click here to see the most recent number of websites around the world. What questions do you have? Call my national radio show and click here to find it on your local radio station. You can listen to the Kim Komando Show on your phone, tablet or computer. From buying advice to digital life issues, click here for my free podcasts. Table of Contents
Copyright 2018, WestStar Multimedia Entertainment. All rights reserved. Learn about all the latest technology on the Kim Komando Show, the nation’s largest weekend radio talk show. Kim takes calls and dispenses advice on today’s digital lifestyle, from smartphones and tablets to online privacy and data hacks. For her daily tips, free newsletters and more, visit her website at Komando. com
FREE CLASSIFIEDS!
HELP WANTED — POSITION WANTED 4 — SALE ITEMS
CLICK HERE!
www/underwritersinsider.com
45
Georgia’s Only Virtual Insurance Agents Organization “Insuring the American Dream” Join today at www.Georgia-Agents.com
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,
Eddie
Free 24 hours Online CE (includes 3 hours Ethics) for entire staff Free 20 hours Limited Subagent Prelicensing Course Free 20 hours Personal Lines Agent Prelicensing Course Free Classroom CE for entire staff Free Promotional Video
Free Disaster Planning Toolkit: Here’s a new tool for your agency (& your commercial policyholders). Free Agency’s Online Visibility Report complete with improvement tips Free “How To” Booklets on Agency Management, Buy / Sell / Evaluate an Independent Agency, Internet Marketing & Social Media Free Agency Promotional Video. Use it on your website, Social Media, YouTube & eNewsletters. Free Local Commercial Lead Generator Free Customizable Business Forms: These documents are free to download and customize for your own use. Free Small Business Handbook: Everything you need to know to run your business, from equity to employees. Free Marketing Templates: Sets of templates with a coordinated design including letterhead, envelopes, business cards, brochures, etc. Free Office Poster Software: Templates to create your own custom office posters, all without any knowledge of design or graphical skills needed. Free Micro-Mobile Site & QR Code Marketing Strategy. Scan this QR Code for a current example. This could be your agency!
Free Classified Ads Free Custom Animated Spokesperson
Free eNewsletter Software
Free CSR Online Training
Free registration to Annual Convention
Free Management Tips
Free Video E-mail Software
Free On-Demand Owner Training Tips Free Web Marketing Tutorials Free Facebook Business Page Free Facebook Content
Free Direct Google Reviews Link Free Monthly Agency Owner’s Tips ‘n Tools Free Monthly CSR Online Training using interactive quizzes, videos and worksheets
Free YouTube Channel
Only $99.00 per year for one office plus $50.00 for each additional office under common ownership
Join today at www.Georgia-Agents.com
46
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
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
http://www.fyiexpress.com/extreme-branding.html
SEPTEMBER 2018
Table of Contents
www/underwritersinsider.com
47
2018 FAIA CONVENTION TRADE FAIR BOOTH IMAGES NOW ONLINE!
O
ne of the biggest insurance events held each year in Florida is the Florida Association of Independent Agents (FAIA) Convention. This year was the 114th annual convention, making it not only one of the largest, but one of the longest running events in US insurance history.
We tried to get a shot of every booth, but frankly ran out of time. The trade fair is huge, with hundreds of exhibitors. Next year we may bring two photograpers, each starting at opposite ends and working towards the center. We sadly experienced some equipment issues this year as our preferred lens for such an event, a Nikon 18-300mm had taken a fairly stiff smack as it slipped out of it’s carry bag and hit the floor just as we were to begin shooting. Although it was not obvious on the camera’s (Nikon D-500) LCD screen, just about all the images taken at 50mm or wider were somewhat out of focus - some badly. Oddly, the closeups were fine. So there will be a trip to the repair shop for the lens and we will be more careful next year...
Click On The Image Below To View Booth Images
48
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
2018 LAAIA CONVENTION TRADE FAIR BOOTH IMAGES NOW ONLINE!
T
he largest insurance trade fair in S. Florida, the Latin American Association of Insurance Agents pulled off another incredible event with their 47th annual convention and trade fair this August. This time no equipment issues and had time to shoot every booth.
Click On The Image Below To View Booth Images
SEPTEMBER 2018
Table of Contents
www/underwritersinsider.com
49
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.”
50
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018
SEPTEMBER 2018
Table of Contents
www/underwritersinsider.com
51
SPECIAL REPORT - INSURANCE QUOTES Continued From Page 40
STATE BY STATE COMPARISION OF HOW MINOR & MAJOR TICKETS IMPACT AUTO INSURANCE RATES Commissioners (NAIC), the average annual U.S. auto insurance premium is $866. That means an 88 percent premium spike for one reckless driving offense will result in an increase of just more than $750 per year. And if you have two reckless driving tickets under your belt you’ll be looking at a premium increase of 173 percent — or almost $1,500 per year. Even relatively “minor” infractions, such as following too close or not yielding to a pedestrian, can mean paying an average of $260 more per year for car insurance.
expected — driving under the influence carries the stiffest insurance penalty, with a single infraction resulting in an average premium spike of $1,086. A second DUI offense means an average increase of more than $2,000 per year. “The bottom line is that some moving violations imply a greater recklessness and risk to the insurance company,” says Dan Weedin, a Seattle-based insurance and risk management consultant. “For example, someone going five miles per hour over the speed limit is acting far less recklessly than someone going 30 miles per hour over the speed limit or driving under the influence. Therefore, more reckless violations carry greater consequences.” Your premium increase will depend on your state If you commit a moving violation the impact on your auto insurance premium will also largely depend on where you live.
“The bottom line here is that if you drive poorly you should pay more for insurance,” says Kevin Lynch, assistant professor of insurance at The American College of Financial Services in Pennsylvania. “If you’re not being a safe, courteous driver, you’re the one causing all the problems.”
For instance, a first-time DUI conviction in North Carolina will result in an average premium increase of 298 percent (in Hawaii it’s 209 percent, 187 percent in California, and 165 percent in Michigan). Meanwhile, the same violation in Maryland will only result in an average premium increase of 21 percent.
To that end — as might be
These differences apply to a wide
52
The Underwriter’s Insider
Table of Contents
variety of moving violations from state to state. For instance, a reckless driving violation in Hawaii will result in an average premium increase of 209 percent (187 percent in California, 169 percent in Michigan, and 106 percent in Rhode Island, Connecticut, and Illinois), while in Louisiana the same violation will only bring about an average premium increase of 33 percent (34 percent in Indiana and Oklahoma). When it comes to speeding more than 30 miles per hour over the posted limit, Hawaii drivers experience the most significant insurance penalty, with an average premium increase of just more than 100 percent for a single violation (in Illinois it’s a 92 percent increase and a 78 percent increase in Michigan). Meanwhile, the same violation in Pennsylvania will only result in an average premium increase of 14 percent (16 percent in Georgia, Texas and South Carolina). Perhaps the starkest difference can be seen in a violation for failure to wear a seatbelt. In North Carolina, just one ticket for this infraction will result in an average premium increase of 27 percent (22 percent in Oregon and
See How Tickets Change Rates Page 53 SEPTEMBER 2018
SPECIAL REPORT - INSURANCE QUOTES Continued From Page 52
STATE BY STATE COMPARISION OF HOW MINOR & MAJOR TICKETS IMPACT AUTO INSURANCE RATES 20 percent in Utah). Meanwhile, in 32 states this particular violation moves the premium needle by less than 5 percent, including seven states where it has no impact on premium price at all. According to Lynch, this notable disparity between states comes down to the way each state regulates auto insurance companies and the factors they can use to increase premiums. “There are 50 states and 50 different state insurance commissioners. The legislature in your state passes laws about what insurance companies are allowed to do when it comes to raising rates,” Lynch says. “So if a certain insurance company in a certain state wants to raise premiums on people with certain driving habits and points and violations, that’s within their right to do so if the state says they can.” In California, for instance, an individual’s driving safety record must be the primary factor in SEPTEMBER 2018
determining what he or she will pay for insurance (it’s the same in Hawaii). As a result, any blemishes on one’s driving record — like a DUI, speeding, or reckless driving violation — will impact the premium more significantly than in less tightly regulated states where insurers can use additional factors like a driver’s credit score to determine premiums.
or failure to signal. Additionally, many states offer driving classes to help individuals remove one or two moving violations from their records.
“The difference [in premium increases] between states is driven largely by difference in regulatory environments between states,” says Eli Lehrer, insurance expert and president of the nonprofit R Street Institute. “States that have particularly high or low impacts from DUI are those that strictly limit the number of factors that can be used [in setting premiums]. The impact is generally less in states that allow the widest range of factors to be used.”
“Generally speaking, most states will allow a person to offset something like a speeding ticket by pleading ‘no contest’ and staying free of any additional moving violations for 90 days,” Lynch says. “What’s more, many insurers will lessen the impact on your premium if you take a defensive driving class.”
Make a deal: Most states offer plea bargains at traffic court that can help drivers expunge points from their record, provided the violation isn’t too severe.
Shop around: Shopping for a new car insurance policy after receiving a traffic moving violation may also be a good idea, although don’t You can still save money after a think that you’ll be able to hide moving violation from the violation altogether. The good news is that no moving violation stays on your driving Wait it out: Eventually your driving record forever. But how long it’s record will go back to its pregoing to impact your premium moving violation status, but that depends on the severity of the could take anywhere from three to violation as well as individual state five years. laws. Here are some tips on how to potentially ease the burden of an “Most insurance companies use increased premium. what is called ‘Clean-in-three,’” Lynch says. “If you maintain a clean Seek forgiveness: Auto insurers driving records for three years these days are typically going to following a violation, that violation be somewhat forgiving of minor ‘falls off’ and you’ll be back to your moving violations like failure to stop pre-violation premium.” Table of Contents
www/underwritersinsider.com
53
54
The Underwriter’s Insider
Table of Contents
SEPTEMBER 2018