The Underwriter's Insider April 2019 by The Underwriter's Insider

IN THIS ISSUE APRIL 2019 VOL 15 ISSUE 4

20 Things We Don’t Do Anymore Because of Technology

The Four Corners Rule Strikes Again Expert Analysis by Barry Zalma, Esq.

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Opportunity Mars Rover Declared Dead - Curiosity Rover Just Getting Started

Florida Insurance Fraud Detectives To Investigate Mayor Dale Massad

Three Keys To Successful Investing

All Risks Introduces Insurance Agent E&O Program With Enhanced Coverage

Texas Adjuster Sentenced For Stealing $10,000

Texas Agent Gets 5 Years For Selling Fake Policies

Florida Arrests Orlando Agent For $16,763 Fraud

Florida Arrests Fake Contractor Stealing From Irma Victims

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Southern California Agents Charged Combined $60,000 Fraud

Space Mtn. Jumper • Capitalism Bailing Out Socialism • Exterior Air Bags? • Beware New Gas Pump Skimmers

California Fake Agent Steals $174,000 In Premiums From Truckers

FBI Investigating Nationwide Workers’ Comp Fraud

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The Art & Science Of Complying With GDPR Consent For Insurers

2018 Independent Channel Growth Tops Expectations

A Tire-Some Question The Insider Advisor

Judicial Watch Sues For Trump “Coup” Documents

FAIA & LAAIA Convention News

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Elon Musk On Mars • Russian Collusion Investigation Over • Obama Admin Spied On Trump Campaign • National Nightmare Over

Eddie Emmett’s IE2019 Coming May 22nd in Roswell, GA

Florida: Hurricane Irma Scam Artist Arrested Again...

INSURANCE AND THE LAW PAGE SIX

2019 Convention Schedules FAIA: PG 30 LAAIA: PG 31 IE2019: PG 36

HOW (AND WHY) TO WRITE A PRESS RELEASE THAT ACTUALLY GETS PUBLISHED

Have a convention or trade fair coming up?

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FEATURES

2018 FAIA & LAAIA TRADE FAIR BOOTH IMAGES NOW ONLINE!

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Kim Komando

Breaking News

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Barry Zalma Matt Treskovitch Advertise

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Page 6 New Zalma Claims Books Now Available! Story...

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APRIL 2019 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

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APRIL 2019

TECHNOLOGY

20 THINGS WE DON’T DO ANYMORE BECAUSE OF TECHNOLOGY

Really Cool Tech Info - From Kim Komando

ee if this sounds familiar: You’re not sure where your U.S. road atlas is or if you even own one. It’s been so long since you licked a stamp, you’ve forgotten what it tastes like. You’ve seen more scrumptious two-minute videos in the past week than you’ve consulted a cookbook in the past year. We all know technology is making things easier and less time-consuming, but it’s hard to believe how much our devices have transformed the way we live. Tasks and tools that once seemed routine now seem hopelessly out of date, and in only a few short years. Example: Who would post an ad on the personals page of a local newspaper? Sounds so Victorian!

smartphones automatically stored our friends’ contact information, we resorted to cocktail napkins to scrawl down numbers, for fear we wouldn’t find that listing in the phone book. How times have changed.

2. Use a phone book to find a company to do work around your house

or older, you’ll probably smile with nostalgia.

1. Memorize a phone number

Pop quiz: How many phone Here are some of those rituals numbers do you know by heart? that are no longer necessary in Some people don’t even know high-tech households. Teenagers their spouse’s numbers. Before our may shrug, but if you’re 20 years APRIL 2019

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Once upon a time, we felt perfectly comfortable flipping through the Yellow Pages and randomly calling a plumbing company to fix our pipes. Maybe we’d consult friends for a recommendation, but we often relied on trial-anderror. But consumer services like Angie’s List and Yelp have changed this game entirely. You can quickly read reviews of a local business, and if you like what you read, you can tap their number and automatically dial.

See Kim Komando Pg 38 www/underwritersinsider.com

CLAIMS & THE LAW

THE FOUR CORNERS RULE STRIKES AGAIN Expert Analysis & Commentary by Barry Zalma, Esq., CFE Abbott Laboratories, Abbott Diabetes Care Inc. And Abbott Diabetes Care Sales Corp., No. 2017AP909, State Of Wisconsin In Supreme Court (February 28, 2019) the Supreme Court of Wisconsin applied the four he duty to defend is corners test in reaching a decision on the need for the insurer to always broader than defend its insured.

Duty to Defend Exists if there is a Potential for Coverage of one Allegation

T the duty to indemnify. In

states like Wisconsin the law requires the court to consider only the allegations of the complaint and the wording of the insurance policy when making a decision to compel an insurer to defend or not defend. This rule places the issue of coverage or no coverage in the hands of the drafter of the lawsuit. In West Bend Mutual Insurance Company v. Ixthus Medical Supply, Inc. And Karl Kunstman,

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West Bend Mutual Insurance Company asked the Supreme Court to reverse the court of appeals’ decision holding that the allegations in Abbott Laboratories’ complaint against Ixthus Medical Supply, Inc. alleged a potentially covered advertising injury, and as a result, triggered West Bend’s duty to defend under the commercial general

liability policy West Bend issued to Ixthus. West Bend argued the court of appeals erred.

BACKGROUND Ixthus is a medical supply company operating in Wisconsin. At all times relevant to this action, Ixthus was insured under a commercial general liability insurance (“CGL”) policy with West Bend, which provided coverage for “personal and advertising injury.” Abbott is a health care company that manufactures and sells blood glucose test strips in both the domestic and international markets. Abbott’s strips are trademarked under the name “FreeStyle.” The test strips are functionally identical regardless of the intended market, but the labeling and instructional inserts as well as price and available rebates are substantially different

Barry Zalma, Esq., CFE, practiced law in California for more than 43 years as an insurance coverage and claims handling lawyer. He now limits his practice to service as an insurance consultant and expert witness specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He founded Zalma Insurance Consultants in 2001 and serves as its only consultant. 6

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between the domestic and international packaged boxes. For a variety of reasons, Abbott sells test strips for use in international markets at a much lower cost.

complaint do not fall within an initial grant of coverage, The sole issue presented to the the inquiry ends.” Supreme Court was whether West 2. Second, “if the allegations Bend has the duty to defend its fall within an initial grant insured, Ixthus, under the terms of coverage, the court next of the CGL policy—specifically Abbott filed a lawsuit in New considers whether any the “Personal and Advertising York federal court against Ixthus coverage exclusions in the Injury Liability” provision. and over 100 other defendants policy apply.” asserting thirteen federal 3. Third, “[i]f any exclusion statutory and common applies, the court next law claims for relief considers whether an I have opined often that the based on its belief that exception to the exclusion four corners rule is unfair the defendants were applies to restore since any competent drafter can “import[ing], advertis[ing] coverage.” Water Well Sols. and subsequent[ly] allege a suit that requires an insurer Serv. Grp., 369 Wis. 2d 607, distribut[ing]” boxes of ¶16 (internal citations to defend, as did the allegations in Abbott’s international omitted). the complaint, or refuse defense if test strips in the United States. Additionally, when an the drafter wishes to punish the insured seeks coverage defendant.” Upon being served, under the advertising Ixthus tendered its defense to provision of a CGL policy, the court The purpose of the analysis West Bend. West Bend denied asks three questions to determine is to determine whether the Ixthus’s tender. In August 2016, whether the allegations in the allegations in the complaint West Bend filed a complaint in the complaint fall under the initial contain any claims, which if circuit court seeking a declaratory grant of coverage. proven true, would be covered judgment that West Bend had by the policy. If there are any no duty to defend or indemnify The three questions are: potentially covered claims— Ixthus in Abbott’s lawsuit. The any allegations in the complaint • Does the complaint allege a circuit court granted West Bend’s covered offense under the that “give rise to the possibility motion, concluding that although advertising injury provision? of coverage”— the insurer has a the allegations in Abbott’s • Does the complaint allege duty to defend. complaint fell within the initial that the insured engaged in grant of coverage, the knowing advertising activity? and The court uses a three-step violation exclusion applied, process in duty-to-defend cases: • Does the complaint allege a thereby eliminating any duty West causal connection between Bend had to defend Ixthus. the plaintiff’s alleged injury 1. “First, a reviewing court and the insured’s advertising determines whether the Both Ixthus and Abbott appealed activity? policy language grants initial to the court of appeals, which coverage for the allegations reversed the circuit court’s set forth in the complaint. If decision. See ZALMA Page 39 the allegations set forth in the APRIL 2019

ANALYSIS

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THREE KEYS TO SUCCESSFUL INVESTING

By Matthew Treskovich, CPA/PFS, MBA, CFP®, CMA

Manage risks, diversify, and have a financial plan

t’s that time of year again! Legendary investor Warren Buffet released his annual letter to shareholders on Saturday. As he usually does, the chairman of Berkshire Hathaway spent much of the letter discussing the many diverse business units that make up his firm. Mr. Buffet’s letter also contained a great deal of general investing wisdom. He also shared some insights that can help anyone become a better investor.

Berkshire Hathaway is a conglomerate that owns investments in a very diverse collection of businesses. Some of these investments are in companies that Berkshire completely owns or controls. Other investments are in securities of publicly traded companies. Taken together, these investments cover a wide variety of different industries. Some of Berkshire’s investments include railroads, a candy company, consumer

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products, banks, and insurance companies. This wide diversification protects Berkshire’s shareholders. Berkshire also maintains a large cash reserve, which serves two purposes in the company’s financial plan. The cash pile gives Mr. Buffet the flexibility to take advantage of investment opportunities. Cash reserves also serve as further protection for Berkshire’s investors, ensuring the company won’t be caught short of cash in a financial crisis. APRIL 2019

Attribution 2.0 Generic (CC BY 2.0) Chris Potter

ANALYSIS - FINANCIAL

Invest for the long run, in companies that create value.

wind is still at your back

The greatest investments in Berkshire’s portfolio are in companies that have a track record of solid earnings. However, earning money isn’t enough to make a company a great investment. Companies that are great investments are committed to both growing their earnings and returning capital to investors. History is littered with companies that had great potential, made some money, and then squandered it. In many of these instances, investors ended up with little to show for risk they took when investing. Great companies use their earnings to grow their businesses, return some of their earnings to investors in the form of dividends and stock buybacks.

Since its founding, our country has prospered because of the ideals of hard work, diligent saving, and prudent investing. Our nation’s great prosperity is not because of any one political party, nor is it attributable to any single event, or to pure chance. The economic miracle of America is due in no small part to our cultural heritage, and the ideals handed down to us through generations of leaders. Knowing what we have accomplished in the past two hundred years it’s almost impossible to not be optimistic about the future of our country. Being optimistic about investing in Great American Companies is the only rational thing to do.

Dividends are easy to understand - they are the paycheck every owner of the company receives for being an owner. Stock buybacks are a bit more complicated. When a company buys back stock, it uses cash to purchase its own shares in the marketplace. Owners who sell their shares back receive cash, while owners who choose to keep their shares end up owning a larger percentage of the business. Companies that are great investments use one or both methods regularly to return capital to shareholders. Matthew Treskovich is the Chief Investment Officer for CPS Investment Advisors. For investors in Great

American Companies, the

About the author:

Matt is the Chief Investment Officer of the firm of CPS Investment Advisors with 18 years of experience in financial services also serving as the CFO of an insurance brokerage. With a Master’s degree in Business Administration, with an emphasis on accounting from the University of Phoenix, Matt is a CPA licensed in Florida and holds the AICPA’s Personal Financial Specialist (PFS) designation. Matt is a CERTIFIED FINANCIAL PLANNER ™ and a Certified Management Accountant (CMA). and received a Certificate of Distinguished Performance from the IMA for achieving a CMA exam score in the top ten worldwide. In 2017, he was awarded an AICPA Standing Ovation for exemplary professional achievement in personal financial planning services. Treskovich also is certified as an Accredited Estate Planner® (AEP®) designee by the National Association of Estate Planners & Councils (NAEPC). He is a member of the Institute of Management Accountants, former President of the Mid Florida Chapter and former Treasurer of the IMA Florida Council.

APRIL 2019

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NEWS

ALL RISKS, LTD. INTRODUCES EXCLUSIVE NEW INSURANCE AGENTS AND BROKERS E&O PROGRAM FEATURING ENHANCED FLEXIBILITY AND PROPRIETARY COVERAGES

UNT VALLEY, MD – All Risks, Ltd., the nation’s largest independent wholesale insurance brokerage firm, is pleased to introduce its exclusive new Insurance Agents and Brokers E&O program. The National Specialty Programs unit of All Risks is the exclusive administrator of this program. Featuring an A.M. Best “A” rated (XV) carrier, the program is available in all 50 states on a non- admitted basis. Coverage highlights include: a broad definition of Professional Services, Defense Outside the Limits, First Dollar Defense, aggregate deductibles, and Comprehensive Insolvency Coverage. To help insureds protect against the growing threat of cyber attacks and data/ identity theft, the policy features Data Breach, Cyber Liability and Third-Party Cyber Liability, with an optional endorsement to add more first part coverages. Chris Kelleher, Vice President

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of National Specialty Programs, stated, “We’re excited about our new partnership in delivering this exclusive program to the

web hosting, and the use of temporary meeting space. To provide enhanced flexibility, installment payments are available with no fees. For more information, please contact Tabitha DeGirolano at 8000366-5810, ext. 3678, or via email at t d e g i ro l a n @ a l l r i s k s.

marketplace. Our offering has the flexibility and broad coverage that agents are looking for to best protect their agency.” He added, “As experts in navigating the complex Agency E&O marketplace, our team stands ready to work with agents across the country to put together a policy that meets their needs to properly cover their operations.”

com.

All Risks, Ltd. is the largest independent insurance wholesaler serving retail insurance agents and brokers nationwide. This innovative team delivers comprehensive specialty commercial and personal lines solutions through a full-service platform of quality brokerage markets, quick in- house binding authority, In addition, the policy features exclusive national programs and proprietary coverages to easy-to-use online technology. help insurance agents reduce Based in Hunt Valley, Maryland, expenses related to a variety of the 54-year-old firm employs unexpected events. Coverages 875 staff members in 28 offices include, but are not limited to, around the country. To learn reimbursement for cancelled more, please visit www.allrisks. conferences, emergency com. Table of Contents

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NEWS

TEXAS INSURANCE ADJUSTER SENTENCED FOR STEALING $100,000

Spring, TX insurance adjuster was sentenced to probation today for stealing nearly $100,000 from the insurance company where he worked. Allen Castillo pleaded guilty after a Texas Department of Insurance investigation found he authorized payments to a network of friends and family. TDI investigators found that Castillo authorized additional payments on auto claims he handled, sometimes months

after the original claims. In the additional claims, Castillo created fake records indicating someone had recently come forward claiming a loss or injury. He would authorize a payment to that person, who would later return most of the money to Castillo. Castillo attempted to hide the criminal scheme by having checks issued to addresses outside the state, but investigators found that most of the checks were deposited in the Houston area.

Castillo repaid the amount he stole as part of an agreement for a sentence of seven years of deferred adjudication and a fine. He also will have to perform 180 hours of community service. TDI investigators are certified peace officers and work closely with law enforcement authorities around the state when investigating fraud cases. You can report suspected insurance fraud by calling 1-800252-3439.

TEXAS AGENT GETS 5 YEARS FOR SELLING FAKE POLICIES Former Agent Faked Insurance Docs To Hide Fraud

San Antonio woman pleaded guilty to fraud after a Texas Department of Insurance (TDI) investigation found she pocketed money from clients who thought they were buying home policies. Cynthia Olague, a former insurance agent, stole premiums 12

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from more than 20 different Several victims only found out homeowners leaving their they did not have coverage when property unprotected. they tried to file insurance claims for losses. A TDI investigation found Olague Olague was sentenced Monday to would collect premiums but five yearsâ&#x20AC;&#x2122; in prison and ordered to deposit the payments into her pay back $19,128. personal checking account, instead of forwarding the money TDI investigators are certified to the insurance company. peace officers and work closely with law enforcement To hide the crime, she created authorities around the state when fake insurance documents to give investigating fraud cases. You can to her clients and their mortgage report suspected insurance fraud companies. by calling 1-800-252-3439. Table of Contents

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NEWS

FLORIDA ARRESTS LICENSED ORLANDO INSURANCE AGENT IN $16,763 FRAUD

RLANDO, Fla. – Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Sheila De Lima Torres Tecchio, a licensed insurance agent formerly with Enterprise Insurance Agency, Inc., after she allegedly prepared and submitted fraudulent insurance applications to multiple insurance carriers in an effort to defraud Floridians out of $16,763.

consumers. We hold Florida's licensed insurance agents to the highest standard of honesty and professionalism and it’s despicable when this trust is broken just to make a quick buck.”

CFO Patronis’ fraud detectives discovered that Tecchio was writing and submitting fraudulent insurance applications to multiple insurance companies. Tecchio misclassified the vehicles as CFO Jimmy Patronis said, either personal use or limited “Insurance fraud is not a business purpose vehicles victimless crime and it drives up without the owner’s knowledge. rates for honest, hardworking Tecchio then submitted the

fraudulent applications resulting in her receiving commissions of approximately $16,763 for 39 vehicles between March 12, 2017, and March 30, 2018. Because of these actions multiple consumers were going without insurance coverage. Tecchio surrendered to the Orange County Jail and was arrested on March 6. Tecchio faces counts of scheme to defraud, false and fraudulent motor vehicle insurance application and grand theft. If convicted, Tecchio could face up to 70 years in prison.

FLORIDA ARRESTS FAKE CONTRACTOR FOR STEALING OVER $116,000 FROM HURRICANE IRMA VICTIMS

ISSIMMEE, Fla. – Chief Financial Officer (CFO) Jimmy Patronis announced today the recent arrest of Carmelo Perez Cruz, owner of LNC Renovation Inc., after he allegedly attempted to defraud multiple homeowners and commercial business out of $116,478. Cruz was allegedly compensated for work he failed to perform and was not license to

provide following Hurricane Irma.

one they claim to own, verify the company name. Always do your CFO Jimmy Patronis said, research before you hand over a “Working without a license to down payment for repairs.” defraud Floridians is shameful. Schemes like this one not only CFO Jimmy Patronis’Disaster Fraud take money out of the pockets of Action Strike Team discovered hardworking families, it also drives Cruz, who is not a licensed up insurance rates for everyone. If a contractor tells you to write a check to a business other than the See Fake Contractor Page 41

NEWS

OPPORTUNITY ROVER DECLARED DEAD - BUT CURIOSITY JUST GETTING STARTED A selfie taken by NASA’s Curiosity Mars rover on Sol 2291 (January 15) at the “Rock Hall” drill site, located on Vera Rubin Ridge. Credits: NASA/JPL-Caltech/MSSS

he Opportunity rover stopped communicating with Earth when a severe Mars-wide dust storm blanketed its location in June 2018. After more than a thousand commands to restore contact, engineers in the Space Flight Operations Facility at NASA’s Jet Propulsion Laboratory (JPL) made their last, failed, attempt to revive Opportunity in Feb. The solar-powered rover’s final communication was received June 10. But while there is sadness and dissapointment over the loss of Opportunity, there is boundless enthusiasm at NASA over the continuing mission of the Curiousity Rover 14

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Rover Curiousity The car-size rover is about as tall as a basketball player and uses a 7 foot-long arm to place tools close to rocks selected for study. Curiosity’s large size allows it to carry an advanced kit of 10 science instruments. It has tools including 17 cameras, a laser to vaporize and study small pinpoint spots of rocks at a distance, and a drill to collect powdered rock samples. It hunts for special rocks that formed in water and/or have signs of organics.

to support small life forms called microbes? Early in its mission, Curiosity’s scientific tools found chemical and mineral evidence of past habitable environments on Mars. It continues to explore the rock record from a time when Mars could have been home to microbial life.

Strong, Smart and Curious

Curiosity carries the biggest, most advanced instruments for scientific studies ever sent to the Martian surface. The history of Martian climate and geology is written in the chemistry Curiosity set out to answer the and structure of the rocks question: Did Mars ever have the and soil. Curiosity reads this right environmental conditions record by analyzing powdered Table of Contents

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samples drilled from rocks. It also measures the chemical fingerprints present in different rocks and soils to determine their composition and history, especially their past interactions with water.

Coming in for a Landing Mars Science Laboratory arrived at Mars through technological innovations that tested a completely new landing method. The spacecraft descended on a parachute, then during the final seconds before landing, the landing system fired rockets to allow it to hover while a tether lowered Curiosity to the surface. The rover landed on its wheels, the tether was cut, and the landing system flew off to crash-land a safe distance away.

Curiosity is More Mobile Than Any Previous Rover It is fit to climb over knee-high obstacles and travels about 100 feet (30 meters) per hour, depending on instrument activity, the terrain, and visibility its cameras have of the path ahead. The rover carries a radioisotope power system that generates electricity from the heat of plutonium’s radioactive decay.

The Curiousity launched on a 2-stage Atlas V-541 Rocket that stands 191’ tall. That’s as tall as a 19 story building. The rocket was selected for the Mars Science Laboratory mission because it has the right liftoff capability for the heavy weight requirements. Credit: NASA

The generator provides greater mobility and flexibility in • Demonstrated the ability operating the rover regardless to land a very large, heavy of season or sunlight. The steady rover to the surface of Mars flow of electrical power has enhanced the science payload • Demonstrated the ability capability and permitted to land more precisely in consideration of landing sites at a 12.4-mile (20-kilometer) a greater range of latitudes than landing area was possible on previous rovers. • Demonstrated long-range This electrical power source mobility on Mars for studying has already far exceeded its The Mars Science Laboratory diverse environments and required operating lifespan on mission represents a huge step analyzing samples found in Mars’ surface of at least one full in Mars exploration because it different settings. Martian year (687 Earth days). has:

NEWS

FLORIDA INSURANCE FRAUD DETECTIVES TO INVESTIGATE PORT RICHEY MAYOR DALE MASSAD

ORT RICHEY, Fla. — In light of the recent arrest of Port Richey Mayor Dale Massad on charges of practicing medicine without a license, Chief Financial Officer (CFO) Jimmy Patronis today announced he has directed his fraud detectives to investigate any alleged insurance fraud relating to Massad.

ongoing, we ask members of the Members of the community who community to come forward with believe they have information any information they may have surrounding potential insurance surrounding this case.” fraud are encouraged to contact the CFO’s Fraud Tip Hotline Massad, 68, was apprehended by calling 1-800-378-0445. today as the Pasco County Callers can choose to remain Sheriff’s deputies were serving a anonymous and they may be search warrant at his Port Richey eligible for a cash reward if the home. He allegedly shot multiple rounds at deputies before being information they provide leads taken into custody. No injuries to a successful prosecution. were reported.

Former Port Richey Mayor Dale Massad

CFO Jimmy Patronis said, “As a result of the recent findings surrounding Mayor Massad’s arrest, I have directed my office to investigate whether or not he fraudulently profited from insurance policies while practicing medicine without a license. As this case remains 16

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Mr. Zalma recently published on Amazon.com with links at the Zalma Books site with the following volumes:

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APRIL 2019

NEWS

SOUTHERN CALIFORNIA AGENTS CHARGED IN SEPARATE CASES WITH EMBEZZLEMENT AND THEFT AFTER ALLEGEDLY STEALING OVER $60,000 COMBINED Maria Aquino, 34, of South Gate, was charged with multiple felony counts of embezzlement and theft for allegedly pocketing over $48,000 in clients’ insurance OS ANGELES, Calif. — premium payments and failing Two recent California to place insurance coverage for her clients between 2011 and Department of Insurance 2018. The premium payments investigations have led to the collected by Aquino, while doing arrests of insurance agents who business as Kino Insurance and Tax Services, were never sent to allegedly stole insurance carriers. tens of thousands Aquino falsified of dollars from certificates of clients and failed insurance for more than eight clients to place insurance in order to hide her coverage for those embezzlement. clients, exposing Aquino’s license them to significant was revoked on financial risk. July 12, 2018.

After receiving a complaint from Farmers Insurance, where Huang had been previously employed, the department found that between 2011 and 2013, Huang embezzled premium payments by placing coverage for clients then canceling the coverage without his clients’ knowledge. Cancelling the coverage generated refund checks to his clients, which he received because he had changed their address on record to a location he controlled. Huang then applied the refunds to policies in the names of his aliases and cancelled those polices to get refunds in his own name, which he deposited into his personal bank account. .

In a separate case, Chih Ming Huang, also known as James Huang, 41, of Rowland Heights, was charged with multiple counts of embezzlement, theft and forgery after allegedly stealing nearly $14,000 dollars from more than three clients and also failing to place insurance coverage for his clients.

The department is taking immediate action against Huang’s license.

Both suspects left clients at risk by failing to place insurance coverage

“California consumers should be able to trust that their insurance agents are looking out for them and ensuring they are protected,” said Insurance Commissioner Ricardo Lara. “These agents not only allegedly stole from their clients, they put their clients at great financial risk.” APRIL 2019

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Both of these cases are being prosecuted by the Los Angeles County District Attorney’s Office. Aquino surrendered on February 27, 2019 to the Downey Police Department. Huang will surrender on March 4, 2019. www/underwritersinsider.com

THE INSIDE TRACK - BREAKING NEWS Space Mountain Jumper

pace Mountain stayed closed during an investigation of a mid-ride jumper, and incident Disney officials called “extremely rare.” According to a Register News story, “The man reportedly has cognitive disabilities and wiggled out of the moving ride while the roller coaster was making its slow climb up, before dropping down into its many high-speed twists and turns.” Remarkably, the man was able to walk unassisted to a 1st aid facility and appeared to be uninjured.

German Auto Supplier Working On Exterior Airbags

he German auto supplier ZF Friedrichshafen AG thinks airbags on cars are a great idea - and has decided to take the technology onestep further (they’ve been working on the technology for 10-years) by designing airbags that will deploy

on the outside of a vehicle, reducing intrusions into the interior of a vehicle by 30% and injury levels by 20-30%. One of the big tech issues is the sensors which ones to utilize and combining them with AI so that they intelligently deploy in milleseconds. The system would use cameras, radar and lidar (using pulsed laser light) to identify and respond to an imminent

Capitalism Bailing Out Socialism

n mid-February, U.S. Military Planes carrying 180 tons of aid for desperate Venezuelans flew from Miami to Columbia where the aid was to be shipped to the Venezuelan border.

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crash. Because the exterior airbag system requires a vehicle to be designed for it from the ground up, it will take the interest and orders of vehicle manufacturers to move the technology from prototype to everyday reality. While several OEMs have shown interest, so far, no orders. (More Info)

Streaming Content Killing Physical Media?

services and digital media sales are exploding all over the world with subscription streaming revenue up 30% in the US over the past 12 months. Even more telling: Samsung, a major player in the digital media field will quit the Bluray player market altogether, perhaps signaling the nearend of physical DVD, Blu-ray and 4K media.

Secret Service: New Tech Allows GasStation Data Skimmers To Text Data To Thieves

ales of DVD & Bluray media were down 30% over the holidays in the UK, with Entertainment Retailers Association calling it the “Christmas from hell.” Meanwhile, streaming APRIL 2019

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he U.S. Secret Service in a memo to its field offices warned that thieves have begun to use nextgen gas pump skimmers that use SMS (texting) to send your card data to any phone number in the world within seconds after you’ve swiped your card. With the new tech, crooks don’ t even have to return to the scene of the crime to retrieve the data, making it much more difficult for them to be caught.

E-Cars Charging While Driving?

ew technology may soon enable e-cars to be charged by the roadway via near-field wireless power transfer or inductive WPT systems. By embedding the power source and the transfer tech in the roadway, a vehicle would be automatically charged as it travelled down the highway - allowing a much smaller battery and unlimited range. For the tech scoop: HERE www/underwritersinsider.com

CCO Public Domain

Credit: ZF Friedrichshafen AG

THE INSIDE TRACK - BREAKING NEWS

NEWS - AUTOMOTIVE

UNLICENSED AGENT ALLEGEDLY STEALS $174,000 IN INSURANCE PREMIUMS FROM TRUCK DRIVERS Investigators looking for more victims who may be on the road without coverage

IVERSIDE, Calif. — Connie Free, 34, of Moreno Valley, is scheduled to be arraigned on February 25 on 18 felony counts including grand theft and forgery after allegedly stealing at least $174,000 in insurance premiums from seven different victims. The former insurance agent allegedly targeted port truck drivers who lost their operator authority as a result of not having insurance. After receiving consumer complaints, the California Department of Insurance (CDI) launched an investigation, which revealed Free, acting as “Justyce Insurance” or “Pure Justyce Insurance Agency” allegedly accepted premium payments from her victims and failed to remit payments to insurance carriers, instead converting the payments for her own use. Between September 2017 and

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victim’s vehicle information, provide a quote for the desired coverage, and if accepted, have the victim make a cash payment “This agent allegedly robbed directly into her bank account, truck drivers who already have allegedly so she could pay the some of America’s hardest jobs,” carrier to immediately establish said Insurance Commissioner a policy for them. Some victims Ricardo Lara. “This unlicensed received fraudulent Certificates agent not only allegedly stole of Insurance and Insurance from her clients, she put them at Identification Cards which made them believe Free actually placed risk of losing their livelihood.” their insurance coverage. As Senator, Commissioner Lara authored SB 1402 to crack down Free’s victims were primarily truck on wage theft and labor violations drivers and small businesses in the against California’s 25,000 port trucking or charter bus industry. truck drivers who haul goods for Some of Free’s victims discovered that their “authority” to operate the nation’s largest companies. as a motor carrier was suspended Records indicate there may by reviewing their own status on be additional victims and the either the Federal Motor Carrier investigation is on-going. Anyone Safety Administration (FMCSA) or who believes they may be a victim Uniform Intermodal Interchange should contact the CDI at (714) and Facilities Access Agreement (UIIA) websites. 712-7600. July 2018, at least seven victims paid Free for coverage that was not placed with an insurer.

The investigation found Free would establish contact with her victims by soliciting them through telephone, email or a post card offering competitive quotes with attractive rates on commercial vehicle insurance. Free would then gather the Table of Contents

In some cases, these victims were turned away when attempting to haul loads from or return chassis to port terminals or service client sites. Other victims had to decline See Unlicensed Agent Page 29 APRIL 2019

FBI INVESTIGATING NATIONWIDE WORKERS’ COMPENSATION FRAUD

merican Labor Alliance (ALA) and its affiliates are being investigated by the Federal Bureau of Investigation over a suspected nationwide workers’ compensation fraud scheme.

want people to check and see if marketing itself as a special type of their policies are valid.” labor organization defined under federal law, according to the FBI. The court documents from charges brought in January of 2019 also Insurance departments in a number allege ALA offered a suite of of states have warned businesses financial products under a variety that may have purchased financial of names including “ALA Trust,” ALA products from ALA or any of its According to court documents, Retirement Plan Trust,” and “ALA subsidiaries should contact the ALA sold workers’ comp policies Retirement Plan and Trust” that may regulators to verify their policies. that may not have provided any have been fraudulently sold to the actual coverage. public. A 14-count federal grand jury charged ALA and two of its FBI Sacramento field office public The company, already the subject of executives with mail fraud, affairs specialist Gina Swankie told controversy since the beginning of conspiracy to commit mail fraud, Sacramento Business Journal, “We 2019, allegedly used a special ploy, and money laundering. APRIL 2019

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ANALYSIS - POSSIBLENOW

Image by Pete Linforth from Pixabay

THE “ART” AND “SCIENCE” OF COMPLYING WITH GDPR CONSENT FOR INSURERS

By Eric V. Holtzclaw

ou’ve seen it before, the long form you must sign before partaking in a potentially dangerous activity, the checkbox at the bottom of an end user agreement before you can use a new piece of software,

the abundant documents that are responding analogously to are part of every major monetary growing regulatory concerns purchase. such as ePrivacy, GDPR and CCPA. To address the new regulations These laborious practices are rapidly and efficiently, insurers developed by corporations stick to the “science” side of as reaction to a regulation, an consent collection and while issue or advice from a lawyer. disregarding the “art” of consent Not surprisingly, associations collection. This is an important

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difference because customer consent is the crucial element that unlocks valuable customer conversation and insights that drive a more expressive exchange.

The ‘science’ of consent collection. The technology, data and regulations surrounding the collection of data encompasses the “Science of Consent”. These components are well-defined, agreed across a company, heavily supervised and can be eagerly reported both inside and outside the organization. There is nothing characteristically wrong with viewing consent this way. However, by only approaching preference and consent management scientifically, insurers are only doing the bare minimum to comply with these regulations. Also, if a business simply adopts a technology doesn’t mean it fully considers customer and business needs or the intended spirit of the laws. A science-only attitude prevents organizations from benefiting from the best aspects of what consent management can essentially offer. In European countries, corporations are further along with the ideology of allowing patrons to provide consent. These organizations recognize in order to get a bigger take rate on collecting consent, they must marry preference with consent management to offer an attractive APRIL 2019

incentive. If there is no apparent consent “Artfully” value to the individual providing comprise of: consent, why would they be eager to do so? • Consent Spot Collection: Rather than requesting By adding preference options consent through a singular to consent, businesses allow checkbox or a long widecustomers to be explicit with the ranging form, consent is types of communications, the spread attentively through the cadence and the medium that they customer journey. Consent receive such communications. and preferences are collected This improved specificity is from the customer at points a solid first step for initiating that are meaningful such as trust between companies registration, looking for new and consumers, ultimately products, etc. Taking account establishing and encouraging a of these instances increases long-term relationship. the prospect the customer will not only understand what To accomplish the maximum they are agreeing to but also return on investment for focusing increase their willingness to on mandatory compliance provide consent. requirements, organizations • Capability to Opt Down: should accentuate on the ‘art’ Once consent is collected, of consent and preference institutions that think of management. In doing so, consent in broader terms preference and consent provide well designed and management drives original personalised forms that adoption and results in the best allow customers to reduce long-term benefit. the communications they are currently receiving. Firms that approach consent with These forms should be the ultimate goal of sanctioning easily manageable from any customer conversations focus on customer touch point. A utilizing implementations that refined opt-down method is drive more specific preferences a step toward turning a would across business units, applications, be total opt-out into a more products, communication useful and individual opt-in. channels, and desired regularity. • Hands-on Suggestion: This long-term outlook leads According to customer to nourishing and profitable behavior, lack of customer relationships. Dynamics commitment with outbound such as timing, placement, and communications or customer design drive adoption by both the company and by its customers.

Traits of implementing Table of Contents

See Complying With GDPR Pg 40 www/underwritersinsider.com

NEWS

2018 INDEPENDENT CHANNEL GROWTH TOPS EXPECTATIONS BROKER OPTIMISM REMAINS HIGH

TLANTA (February 26, 2019) -- As the first quarter of the new year winds down, optimism is high among agents and brokers in the independent insurance channel. That’s because they just closed the books on their best year since 2014 and foresee record growth in 2019, according to Reagan Consulting’s Organic Growth and Profitability (OGP) survey for the fourth quarter (Q4) of 2018. The survey shows “a convergence of impressive upward trends in each major line of business,” says Kevin Stipe, president of the firm. OGP participants generated organic growth of 6.1% in 2018, surpassing their projected organic growth rate of 5% for the year. Growth was driven by continued increases in U.S. GDP and commercial pricing. For 2019, OGP participants are forecasting growth of 7%, which would be the highest growth rate since Reagan began its quarterly OGP survey in 2008.

In terms of profitability, the channel has remained stable over the last four years. In 2018, earnings before interest, taxes, depreciation and amortization (EBITDA) margin dropped slightly to 20.2%, and contingent revenue, as a percentage of revenue, fell one percentage point.”

competition intensifies in the industry, Stipe observes. Small agencies whose owners are facing retirement without a succession plan are also contributing to the increase in transaction count. “Without a viable path to continued independence,” these agencies turn to an M&A transaction, Stipe says.

Employee group benefits was the channel’s leading performer of 2018, growing organically at a rate of 7.3%. This growth rate was more than 2 percentage concerns of scale and internal points higher than last year’s and perpetuation planning have represents the highest annual fueled what Stipe characterizes growth rate since the OGP survey as a “frenzy” of mergers and began in 2008. acquisitions (M&A). He says many brokers and agents wondered Commercial lines’ growth rate whether M&A activity could also increased by more than exceed its record-setting pace 2 percentage points from of 2017 but, “incredibly, deal 2017, as the median firm grew activity increased by another its commercial property and 7%, reaching 597 announced casualty business by 6.5% in transactions” in 2018. Two drivers 2018. were all-time high valuations and a heavy influx of acquisition Personal lines business capital to private equity-backed accelerated its growth rate for the brokers. third consecutive year to 3.9%,

Buyer optimism of agent and “which ... is the fastest growth Agency owners believe that broker performance and seller rate recorded for personal lines size and scale ensure survival as 24

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quarter’s survey. The OGP survey is the industry’s preeminent survey of midsize and large privately held brokers. For further information and commentary, contact Kevin Stipe at Reagan Consulting, 404.869.2532, kevin@reaganconsulting.com Each participating agency receives a customized, confidential report of its performance compared with the overall survey results, along with Reagan’s quarterly commentary of industry trends affecting agents and brokers. For information on participating in the OGP survey, contact Michelle Appelbaum at 404.233.5545 or michelle@ ReaganConsulting.com.

About Reagan Consulting:

in the 11-year history of the OGP contingent and bonus income) survey,” says Stipe. rose slightly in 2018, “implying that brokers and agents were successful In terms of profitability, the in controlling their expenses,” says channel has remained stable Stipe. over the last four years. In 2018, earnings before interest, taxes, Reagan Consulting has conducted depreciation and amortization its quarterly survey of agency (EBITDA) margin dropped slightly growth and profitability since 2008, to 20.2%, and contingent revenue, using confidential submissions as a percentage of revenue, fell from nearly 200 midsize and large one percentage point. Despite agencies and brokerage firms. the small drop in profitability, Approximately half of the industry’s operating margin (which excludes 100 largest firms participated in this APRIL 2019

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ReaganConsultingisamanagement consulting firm providing strategic consulting, valuation, and mergerand-acquisition (M&A) services to the independent insurance distribution system. The firm’s services for insurance agents and brokers, bank-owned agencies and other participants in the insurance distribution marketplace include: appraisals of fair market value, mergers and acquisitions advisory, ownership perpetuation planning, strategic planning facilitation, key employee compensation and equity plan design, and agency performance benchmarking. Reagan Consulting co-developed the well-known Best Practices Study and produces the quarterly Organic Growth & Profitability benchmark survey. www/underwritersinsider.com

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The Advisor has been known to be politically incorrect and may send certain Millennials scurrying to their safe space. Please read at your own risk.

A Tire-Some Question...

long time ago The Insider printed an article on gas mileage and one of your points was to remove any extra weight from the car like “junk in the trunk.” Now I hear it’s important to put more air in the tires. If I put 6 extra pounds in each tire - that’s 24 pounds I’m hauling around all the time. Doesn’t the extra weight work against the mileage? — M. T. Clarksville, TN

ADVISOR

correlations between air pressure and weight. If you could squeeze a cubic inch of air into a chamber the size of a BB, you would likely have a lot of pressure - perhaps hundreds of P.S.I. - but the miniscule amount of air would weigh very little.

measurements of air pressure we take are relative to our altitude above MSL (mean sea level). To determine the

On the other hand, the amount of air necessary to increase the pressure even 1 P.S.I. in a giant airship might well weigh absolute pressure, we would more than a pound. Just have to add 14.7 P.S.I. to our to further confuse you, the measurement at sea level. Our

Well, Mary, you should have paid more attention in science class. The air in your tires is measured in P.S.I. - or pounds per square inch. It’s pressure - not weight. While air has mass and therefore weight, there is no direct 26

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Photo By: Staff Sgt. Teresa J. Cleveland

instruments are calibrated to ignore the first 14.7 P.S.I. (at sea level) so we see only the pressure above the ambient.

weather since the low pressure allows wind and weather from surrounding areas to be sucked in. Conversely, a highpressure area is generally a Where does the ambient condition of good weather atmospheric air pressure holding the wind and weather of 14.7 pounds per square of surrounding areas at bay. inch (PSI) come from? If you would take a column of air 1 Why is it important to have inch square and weigh it from the proper pressure in your sea level all the way up to the tires? A few reasons. vacuum of space, it would weight 14.7 pounds. First, the higher the pressure, the lower the rolling resistance. Of course, atmospheric That’s why mileage goes up pressure changes from the with increased pressure. average of 14.7 P.S.I. and is a major influencer of weather. A Second is heat. A properly low-pressure area is generally inflated tire flexes less and considered a harbinger of bad the reduction in flexing APRIL 2019

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friction results in a reduction in heat. Hot tires can fail catastrophically. The third reason involves tire wear. A tire running low on air will wear on the outside edges rather than evenly. If you don’t mind a slightly stiffer ride, our recommendation is to add a couple of pounds P.S.I. to the auto manufactures specs if you wish to maximize mileage. Make certain you take your measurements while the tires are cold and never exceed the tire’s maximum pressure shown on the tire itself. If you notice that the tire is wearing more in the center, reduce the pressure. www/underwritersinsider.com

NEWS

JUDICIAL WATCH SUES FOR TRUMP ‘COUP’ DOCUMENTS Former acting FBI Director Andrew McCabe, Top DOJ Officials considered asking Cabinet members to invoke the 25th Amendment in order to remove President Trump and discussed recording meetings with him.

ashington, DC) – Judicial W a t c h announced today that it filed a Freedom of Information Act (FOIA) lawsuit against the U.S. Department of Justice for all records of communication of former FBI Deputy Director Andrew McCabe, the Office of the Attorney General Jeff Sessions, or the Office of Deputy Attorney General Rod Rosenstein discussing the 25th Amendment or presidential fitness.

conversations about the possibility of removing Trump under the 25th Amendment and confirming that Deputy Attorney General Rod Rosenstein had offered to wear a wire around the president.”

After President Trump fired then-FBI Director James Comey, reportedly top DOJ officials discussed whether to recruit cabinet members Former acting FBI Director Andrew McCabe to invoke the 25th Amendment to remove 2018 (Judicial Watch v. U.S. President Trump from office. Additionally, the lawsuit seeks Department of Justice (No. all recordings made by any 1:19-cv-00388)). The lawsuit President Trump recently seeks all written and audio/ official in the Office of the tweeted: “The biggest abuse visual records of any FBI/DOJ Attorney General or Deputy of power and corruption Attorney General of meetings discussions regarding the scandal in our history, and in the Executive Office of the 25th Amendment and plans it’s much worse than we to secretly record President thought. Andrew McCabe (FBI) President or Vice President. Trump in the Oval Office. admitted to plotting a coup The suit was filed after the (government overthrow) when On February 14, 2019, former Justice Department failed to he was serving in the FBI, acting FBI Director Andrew respond to three separate FOIA before he was fired for lying & McCabe stated in an interview requests dated September 21, leaking.” with CBS that “there were 28

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It is no surprise that we are facing an immense coverup of senior FBI and DOJ leadership discussions to pursue a seditious coup against President Trump,” It was reported in September 2018 that Deputy Attorney General, Rod J. Rosenstein, suggested that he secretly record President Trump in the White House in an effort to invoke the 25th Amendment and have President Trump removed. Judicial Watch’s immediate follow-up FOIA requests were ignored. “It is no surprise that we are facing an immense cover-up of senior FBI and DOJ leadership discussions to pursue a seditious coup against President Trump,” stated Judicial Watch President Tom Fitton. “This effort to overthrow President Trump is a fundamental threat to our constitutional republic so Judicial Watch will do everything it can in the courts to expose everything possible about this lawlessness.”

APRIL 2019

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UNLICENSED AGENT CHARGED WITH STEALING $174,000 IN INSURANCE PREMIUMS FROM TRUCK DRIVERS AND CHARTER BUS COMPANIES jobs after learning Free failed to place coverage. These victims were forced to find and pay for other policies to meet the coverage requirements that would allow them to resume their businesses, causing them to incur losses over and above the premium amounts provided to Free for non-existent policies. Free failed to provide refunds, and in most circumstances refused to even respond to inquiries made by her victims. Free was arrested January 10 and was booked into Riverside County Jail and bail was set at $198,552. This case is being prosecuted by the Riverside County District Attorney’s Office. Free’s insurance license was suspended effective May 21, 2018 due to a non-insurance related criminal case. Table of Contents

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NOTABLE QUOTABLES IN THE NEWS - WITH COMMENTARY

MUSK ON MARS

MUELLER’S “RUSSIAN COLLUSION” INVESTIGATION OVER

echnical challenges: power generation, and a good way of getting ice. There’s ice in the soil, but it’s dirty. And it’s not necessarily all in like ice form. Sometimes it’s like permafrost or something.If you can land somewhere near a glacier, where there’s only a small amount of dirt with the ice, that would be quite helpful. So you’ve got to mine some ice, basically. You’ve got an ice-mining engineering challenge, and you’ve got an energygenerating engineering challenge. Those are your problems. On Mars. The logical thing to do is basically outfit one of the ships as a propellant plant itself, and just land it on the planet as a working propellant plant. And then you just need little miner droids to go dig up ice and bring it back and unfurl the solar panels.”

he fact that Mueller is likely to have cleared the president and his 2016 campaign from criminal liability will not stop Democrats from their mission to remove the president, however. They will simply pivot to other conspiracy theories. I suspect the first of those will be “obstruction of justice.” That is a theory which will not pan out, however, because the president has broad powers to run the executive branch, including the hiring and firing of subordinates as he sees fit; he can hire and fire for any reason, or none at all. Nevertheless, Democrats remain rabid to convict without regard to cause, evidence or culpability.”

From an opinion piece in The Hill by Bradley Blakeman opining that the Democrat leadership will continue their probes and investigations even after Robert Mueller’s taxpayer-funded $25 million investigation found absolutely no proof that President Trump or any of his associates “colluded” with the Russians to swing the 2016 election. Dems, who have never gotten over the reality of Hillary Clinton losing the election, Visionary Elon Musk, CEO of SpaceX, in an promise to continue their hyper-partisan attacks exclusive interview with Popular Mechanics, on the president while ignoring the very real answering the question, “And making fuel once problems facing the country. More and more hard you’re on Mars, you don’t see as a problem?” evidence is emerging showing that the phoney 32

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Attribution 2.0 Generic (CC BY 2.0) by DonkeyHotey

Steve Jurvetson (https://commons.wikimedia.org/wiki/File:Elon_Musk_2015.jpg), „Elon Musk 2015“, https://creativecommons.org/licenses/by/2.0/legalcode

SAY WHAT?

“Steele Dossier” used to obtain FISA warrants on Trump associates was bought and paid for by the Democratic National Committee with payment to Russian sources. Comey and others may have falsely sworn to the FISA court as to it’s authenticity - and there will be a reckoning...

WALL STREET JOURNAL: OBAMA SPIED ON OPPONENT PARTY VIA MUELLER INVESTIGATION

he former President now owes the country an explanation for the historic abuse of government surveillance powers. The Mueller report confirms that the Obama administration, without evidence, turned the surveillance powers of the federal government against the presidential campaign of the party out of power. This historic abuse of executive

authority was either approved by President Barack Obama or it was not. It’s time for Mr. Obama, who oddly receives few mentions in stories about his government’s spying on associates of the 2016 Trump campaign, to say what he knew and did not know about the targeting of his party’s opponents.”

APRIL 2019

March 25th OP/ED in the Wall Street Journal by James Freeman connecting some pretty obvious dots and asking a question all of America should be asking: Why isn’t the Obama Administration under investigation for using the surveillance powers of the federal government to spy on the opposition party during an election year?

LONG NATIONAL NIGHTMARE OVER

he long, national nightmare is over and President Trump has been vindicated. The corruptly-created and constitutionally abusive Mueller investigation failed to find any evidence to support the big lie that the Trump campaign colluded with the Russian government. We’re pleased that AG Barr rejected Mueller’s attempt to smear President Trump with obstruction of justice innuendo by concluding that no such charges could be credibly sustained. Frankly, Mueller never had a valid basis upon which to investigate President Trump for obstruction of justice. Let’s be clear, neither Mueller, the Obama FBI, DOJ, CIA, State Department, nor the Deep State ever had a good-faith basis to pursue President Trump on Russia collusion. Russia collusion wasn’t just a hoax, it is a criminal abuse, which is why Judicial Watch has fought and will continue to fight for Russiagate documents in federal court. The targeting of President Trump served to protect Hillary Clinton and her enablers/co-conspirators in Obama administration from prosecution. Attorney General Barr can begin restoring the credibility of the Justice Department by finally initiating a thorough investigation of the Clinton emails and related pay-to-play scandals and the abuses behind the targeting of President Trump.” Judicial Watch Pres. Tom Fitton.

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BACK ISSUES

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BACK ISSUES

APRIL 2019

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Insurance Expo 2019 is coming May 22nd to Holiday Inn - Atlanta / Roswell. We are going to cram as much education, networking and just plain fun as possible into one day.

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5 hours Classroom Georgia CE (includes 3 hours Ethics" starts at 9:00 a.m. Commissioner Jim Beck will be bringing his staff to share "Inside the DOI". You'll get a chance to show off your Insurance IQ (& maybe win $10.000!). Free Trade Show from 3:00 p.m. - 5:00 p.m.

Free Trade Show from 3:00 - 5:00 p.m. Agents & CSRs register online at http://ie19-agents.eventbrite.com Exhibitors & Sponsors register online at http://ie19-reps.eventbrite.com

NEWS

ONLY IN FLORIDA: PORT RICHEY MAYOR, ARRESTED FOR PRACTICING MEDICINE WITHOUT A LICENSE, NOW UNDER SCRUTINY FOR POSSIBLE INSURANCE BILLING FRAUD

directed my office to investigate whether or not he fraudulently profited from insurance policies while practicing medicine without a license. As this case remains ongoing, we ask members of the community to come forward with any information they may have surrounding this case.”

He allegedly shot multiple rounds at deputies before being taken into custody. No injuries were reported.

Members of the community who believe they have information surrounding potential insurance fraud are encouraged to contact the CFO’s Fraud Tip Hotline by calling 1-800-378-0445. Callers can choose Massad, 68, was apprehended to remain anonymous and they may CFO Jimmy Patronis said, “As a result today as the Pasco County Sheriff’s be eligible for a cash reward if the of the recent findings surrounding deputies were serving a search information they provide leads to a Mayor Massad’s arrest, I have warrant at his Port Richey home. successful prosecution.

FLORIDA: HURRICANE IRMA SCAM ARTIST ARRESTED AGAIN IN $68,000 FRAUD BUST

RANGE CITY, Fla. – Chief Financial Officer (CFO) Jimmy Patronis announced today the arrest of Mary Bruce for alleged unlicensed practice of public adjusting and grand theft related to Hurricane Irma. Bruce attempted to steal more than $68,000 in fraudulent claims. This is Bruce’s second arrest for insurance fraud this year. She bonded out of jail in APRIL 2019

January and was arrested again on separate charges.

Following Hurricane Irma in September 2017, CFO Patronis’ investigators discovered CFO Jimmy Patronis said, “It that Bruce approached never ceases to amaze me the homeowners whose home lengths these scam artists will sustained roof and interior go to steal your hard-earned damages from the storm. Bruce money. My detectives caught told the homeowners that she this criminal once, and they was an “independent claims have arrested her again. I adjuster” that could negotiate promise you this: If you commit insurance fraud, we will find you, and you will go to jail.” See Hurrican Irma Scammer Pg 41 Table of Contents

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TECHNOLOGY Continued From Page 5

KIM KOMANDO 3. Park your used car on the street with a sign that says it’s for sale Selling your car on your own is a pretty risky business. True, you stand to profit more, because you’ll avoid a dealership’s fees. But unless you’re selling your vehicle to someone you know and trust, these transactions can get sticky and dangerous without someone to oversee it. Craigslist started up more than 20 years ago, and it’s still going strong. But if you want to sell your car, here are three sites that are better than Craigslist.

4. Figure out math in your head Calculators have been around for a long time now, but few of us ever carried calculators with us to the grocery store. In contrast, pretty much everyone with a smartphone has it available to do double-digit multiplication, no matter where or when we need it. In fact, there’s even an app called PhotoMath that can solve any equation just by taking a picture with your smartphone’s camera.

5. Call a family member to ask where they are

of dropping off rolls of film at a one-hour photo shop. Instead of pasting five-by-seven snapshots Find My Friends is a radical app into your faux-leather album, that helps family members and most people will prefer the ease close friends pinpoint each of photo-sharing services like other’s precise location. Note that Flickr and Amazon Cloud. these people have to sign up for the service, but customers can 8. Have a CD or decide who can know where they record collection are located. Wasn’t it cool back in the day to Click here for ways to really take walk into a shabby apartment advantage of your smartphone’s and see those shelves of CDs? GPS capabilities. Wasn’t it a joy to flip through boxes of vinyl records? Well, the MP3 generation has transferred 6. Telling time by all those songs to a digital hands on a clock index. Turntables have seen a Like cursive writing, analog clocks resurgence in popularity, but it’s are teetering on extinction. hard to imagine CDs making a Few people with smartphones comeback. bother with watches anymore, unless they’re fashion statements 9. Make mix tapes or fitness trackers. With digital clocks dominating our computers There was something so personal and hardware, those 12-numeral about a mix tape. We spent hours timepieces may become pure finding the right song, then lining novelties. Even your trusted up two cassettes in order to copy alarm clock has received a tech a song. So many lovers cemented their relationships using a blank makeover. tape and a few dozen favorite Click here for three apps that albums. Now, you can throw monitor your sleep cycle and together a digital playlist in wake you up when you’ll feel the seconds. most rested.

7. Make photo albums

10. Call a theater to get movie times

Purists still love their dark rooms, Millions of people would rather because chemicals and photo buy a hit new movie on iTunes paper can be so rewarding for before it’s even finished in the patient photographer. But few people pine for the days See Komando Page 44

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INSURANCE & THE LAW Continued From Page 7

ZALMA Answering yes to all three questions completes the first step in the duty-to-defend analysis, the policy provides an initial grant of coverage, and the court proceeds to the second and third steps in the process. The second part of the dutyto-defend analysis involves determining whether any of the insurance policy’s exclusions apply. Exclusions are narrowly or strictly construed against the insurer if their effect is uncertain. Only if a policy exclusion removes coverage does the court proceed to the third step of the duty-todefend analysis, which entails consideration of whether an exception to the exclusion restores coverage.

Abbott’s injury and Ixthus’s actions. Specifically, West Bend argues the complaint does not allege any advertising activity by Ixthus that caused injury to Abbott. Instead, West Bend insists that the allegations in the complaint against Ixthus focused on importation and distribution, not advertising. The test for whether a causal connection has been sufficiently alleged focuses not on whether the injury could have taken place without the advertising, but whether the allegations sufficiently assert that the advertising did in fact contribute materially to the injury. The underlying suit alleged unauthorized importation, advertisement and subsequent distribution that caused or could cause consumer confusion, mistake, and deception to the detriment of Abbott.

The Supreme Court concluded that the allegations in Abbott’s If the policy, considered in its complaint very plainly allege entirety, provides coverage for that Ixthus, as a “Defendant,” at least one of the claims in the engaged in advertising that underlying suit, the insurer has a caused substantial injury to duty to defend its insured on all Abbott. Fleshing out the factual the claims alleged in the entire allegations at trial may affect indemnification under the policy, suit. but at the duty-to-defend stage, the court liberally construes the Application allegations in the complaint, and West Bend asserts the complaint make all reasonable inferences lacks any allegations suggesting from the allegations. a causal connection between APRIL 2019

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Knowing Violation Applying the rule that even one covered offense is alleged in the underlying complaint, the insurance company has a duty to defend the court of appeals held the exclusion did not preclude coverage. The knowing violation exclusion will preclude coverage at the duty-to-defend stage only when every claim alleged in the complaint requires the plaintiff to prove the insured acted with knowledge that its actions would violate the rights of another and would inflict personal and advertising injury. If

See ZALMA Page 51

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ANALYSIS - POSSIBLENOW Continued From Page 23

COMPLYING WITH GDPR CONSENT FOR INSURERS driven actions, companies may offer options to current modes, frequency and types of communications. This prediction of a potential change in consent increases the possibility of maintaining some level of consent for continued communications. Privacy technology must be contemplated with industryspecific and problem-specific best practices – for example, a financial services company needs the capability to collect consent across multiple channels such as in-person interaction while an ecommerce-only company does not. A general approach will fail and negatively impact a company’s consent collection proposals. The most accurate way to combine the science with the art of consent and preference management is to review and assess implementations based on real world use cases. Spending time on competitive websites, follow the “unsubscribe” link in emails and studying customer engagement are some of the best 40

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practices. Merging this research with accepting why your customers provide consent in the first place and how they benefit from doing so over their relationship with your company is the foundation for a beneficial approach. Regardless of your organizations approach to addressing consent, download The Forrester New WaveTM: GDPR And Privacy Management Software, Q4 2018 report. This report provides insight into vendors that are equipped to solve your organization’s unique consent challenges across the spectrum of science to art.

behavior – Laddering: Unlocking the Potential of Consumer Behavior. Eric helps strategically guide companies with the implementation of enterprise-wide consent and preference management solutions.

About PossibleNOW: PossibleNOW leverages powerful technology and industry-leading expertise to enable companies to listen to customers, remember what they like and dislike and respond in useful, personalized ways. Its enterprise consent and preference management platform, MyPreferences®, collects customer and prospect preferences, stores them safely and makes them available to any other system or application in the enterprise. PossibleNOW strategic services experts identify opportunities, plan technology deployments, design preference collection interfaces and position clients for a win.

MyPreferences is purpose-built to help large, complex organizations gain control over communications, mitigate compliance risk and reduce marketing expenses while improving customer experience Eric V. Holtzclaw Chief Strategist of PossibleNOW and loyalty. For more information, call (800) 585-4888, email info(at) About the Author: possiblenow(dot)com or visit Eric V. Holtzclaw is Chief Strategist https://www.possiblenow.com/ of PossibleNOW. He’s a researcher, consent-management-softwarewriter, serial entrepreneur and experts. c h a l l e n g e r - o f - c o nve n t i o n a l wisdom. Check out his book with Follow PossibleNOW on Twitter and Wiley Publishing on consumer LinkedIn. Table of Contents

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HURRICANE IRMA FL ARRESTS FAKE SCAM ARTIST CONTRACTOR ARRESTED AGAIN FOR STEALING IN $68,000 $116,000+ FROM FRAUD BUST HURRICANE IRMA VICTIMS settlements with insurance companies. Bruce required the homeowners to pay $3,500 and to sign a Power of Attorney. However, Bruce is not a licensed attorney, public adjuster, nor a general contractor.

contractor in the State of Florida, allegedly assumed the identity of an established licensed general contractor to gain his victims trust. His alleged scheme involved billing owners large amounts and requiring half of the total to be paid before construction began. Once Cruz received payment, he vanished with the money without completing any work.

Bruce then submitted fraudulent cost estimates for roofing work to the insurance company. In total, she submitted $68,000 in fraudulent insurance claims Cruz was arrested on February to the homeownerâ&#x20AC;&#x2122;s insurance 27, and booked into the Osceola County Corrections Department company. on charges of grand theft, Bruce was arrested and booked unlicensed contractor, scheme to defraud and unlawful use of a into the Brevard County Jail two-way communication device. and charged for rendering If convicted, Cruz could face up to services as an unlicensed 20 years in prison. public adjuster, as well as for grand theft. If convicted, Bruce Detectives believe there may faces up to 10 years in prison. be additional victims within Learn details of her previous the Central Florida area and arrest on charges of unlicensed encourage anyone who believes public adjuster and filing of they may have been victimized by false and fraudulent lien in Cruz to call the Insurance Fraud Orange County. Tip Line at 1-800-378-0445. APRIL 2019

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SPECIAL REPORT

HOW (AND WHY) TO WRITE A PRESS RELEASE By Ron Manera, Senior Editor

he most overlooked source of free promotion for small to medium-sized companies? Press Releases. Those little info blurbs that strengthen your brand and inform your market can be powerful tools if employed effectively. With a press release, your company can inform the world of a new hire, promotions, a key person retiring, a new product, a merger or acquisition, a new office or a thousand other events positive and timely. But even more important: Getting your company name out in front of tens of thousands of your prospects and customers, (even competitors) often, and at little or no cost. As an editor of a couple of insurance industry specific journals, I am on the receiving end of dozens of press releases daily - all wishing a free ride in one of my next issues. I welcome press releases because they often provide valuable content to my readers. Because of space and relevancy limitations, I can’t run them all. As a matter of fact, only a small percentage of the PRs I review

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make it into the magazines. How do I decide what to run? I look first for relevancy. Is the information in the press release something likely to be interesting or valuable to my subscribers? I can discard 80% of the PRs I review simply because the content is not focused on my audience. Next, I look for length, style and format. Will the original PR take up two pages requiring radical editing for size? Can I easily move the content into my publication without extensive reformatting? Are there bulleted paragraphs or multiple hyperlinks to contend with? I look for a news-style press release. When I receive a PR that is 80% promotional and 20% news, I’m likely to pass it up. I don’t charge for news - I do charge for advertising.

Up The Odds Your Press Release Will Be Printed And Effective

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. 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 out to cover your news story. APRIL 2019

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.

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 8. About (Your Company) your piece, (remember, I It’s good to include a short charge for advertising) but “About ABC Company” at just as important, it will lack the end of your PR. Keep it credibility to the readers if it short and within the word just looks like a puff piece. limit for the entire piece. It’s okay to sound enthused Include contact info for about the topic and your “further information.” company, but the ideal PR 9. Make certain to place a will look as if your company copy of each PR on your made the news because of company website under some newsworthy event. your NEWS tab. The practice 6. Give me at least one quote, will make your site more e.g. “Frank’s extensive relevant to search engines experience in restaurant and more valuable to risks will bring a new depth visitors. to our commercial insurance department,” said John ow that you’ve created Smith, CEO... the perfect press 7. If appropriate, include release, where should an image, especially if you send it? the PR involves personnel or a mention or quote

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In the insurance business, include every trade journal that covers your region. If you are introducing a new restaurant program, for example, you may wish to include some of the trade journals in that industry. If you are a local retail agent, by all means include local print media, especially neighborhood newsletters or city-wide newspapers. Build your list in a spreadsheet database so you can one-click mail-merge a personalized copy to each media outlet. Make it a habit! Find the best copywriter in your office and assign them the task of churning out one press release each month. You’ll be building your brand and status within your industry. Where to send at TUI? Send directly to me, Ron Manera at ron@insurmedia.com.

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TECHNOLOGY Continued From Page 38

KIM KOMANDO

theaters. But if we do decide to drive all the way to the cinema and fork over $40 for two tickets and popcorn, there’s no need to call ahead and find out what time a movie is playing. The internet has everything we need. In Google, you can often just type “movie times” and the search engine will list films based on your location.

11. Record your favorite programs on tape All year, we’d wait for “It’s a Wonderful Life” or “The Wizard of Oz” to pop up on TV. When they did, we’d push a VHS tape into the machine and wait until the proper moment to press “record.” When TiVo emerged, it streamlined this process by making scheduled recordings even simpler. Now, with streaming services, web archives, and easy-topurchase downloads, the timing of a broadcast barely matters anymore.

12. Watch shows when 44

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every article in every major newspaper is archived online In the same vein, we rarely have to and can be instantly shared by sit in front of the television, eagerly email, social media, and even text waiting for a “major network message. event.” Services like Hulu and YouTube convert a huge amount 15. Send a handwritten letter of national television into a digital format, and local news stations log Don’t get me wrong: It’s still most of their important segments wonderful to receive a postcard from far away places. You might onto their websites. say that email, texting and Skype conversations have made 13. Run to the store for handwritten letters even more a last minute gift special. But no one is forced to Curses! You forgot a Mother’s transcribe their thoughts by Day gift! Should you change hand and drop those letters in a your whole schedule so you can mailbox. rush to the store and hurriedly pick something out? If you have 16. Looking up the spelling Amazon Prime and live in an of words in the dictionary Amazon hub, there’s no need. You can order same-day delivery and Spellcheck is nearly as old as word have that gift curried to your front processors, and many of us have grown up expecting Microsoft door. Word to underline our mistakes It’s just one of the many benefits in red squiggles. But autocorrect you probably didn’t know takes this concept a step further, Amazon offers. Click here for more guessing what we actually than 20 lesser-known perks that intended to write and correcting come with your Amazon Prime our mistakes. membership. This can be handy for clumsy thumbs, but it can be embarrassing 14. Cut things out of when autocorrect guesses wrong. the newspaper Click here for five ways to take Many grandparents still love to control of autocorrect. buy newspapers, and when they find an article they like, they snip 17. Use a phone booth it out, put it in an envelope, and send that little slip of newsprint Phone booths are so rare to a relative. “Thought you might nowadays that you’d probably find this interesting!” reads an have an easier time just buying accompanying note. But most of and activating a cheap cellphone. us don’t waste our time. Nearly The last holdout may be your local

they are broadcast live

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airport, but even international travelers can usually nab a SIM card the moment they step off the plane.

18. Carry enough change to make a phone call I remember my dad telling me, “Always carry a quarter because you never know when you’ll need it.” In a world of debit cards and Apple Pay, shoppers rarely have to carry cash anymore. So what happens when your phone is dead, there’s no one around and all you have is a phone booth? Luckily, most public phones in the U.S. are outfitted with credit card strips.

19. Use a travel agent Travel agents can be essential for elaborate vacations, but for generic flights, services like Kayak and CheapFlights have completely transformed how we book our passage. You can compare hundreds of airlines and agencies in seconds for the best deal. If you’d like to save even more, use Google Flights to find the cheapest airfare.

Oh, people still write checks, and physical paychecks are still routine methods of payment, but I doubt this antiquated practice will last much longer. Even depositing checks has become digitized, thanks to ATMs that scan the piece of paper and print a facsimile on your receipt. Gone are the days of banks sending you old checks to jam into a filing cabinet. Thank goodness for that! What other tech revolutions are changing your daily life? Be sure to listen or download my podcasts, or 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.

Learn about all the latest technology on the Kim Komando Show, the nation’s largest weekend radio Here are five ways Google Flights talk show. Kim takes calls can really help you save as long and dispenses advice on as you’re flexible with your travel today’s digital lifestyle, from schedule. smartphones and tablets to online privacy and data hacks. For her daily tips, free 20. Getting your old newsletters and more, visit checks back from the her website at Komando. bank every month com APRIL 2019

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2018 FAIA CONVENTION TRADE FAIR BOOTH IMAGES NOW ONLINE!

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.

Click On The Image Below To View Booth Images

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APRIL 2019

2018 LAAIA CONVENTION TRADE FAIR BOOTH IMAGES NOW ONLINE!

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 camera equipment issues and had time to shoot every booth.

Click On The Image Below To View Booth Images

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BECOME A CERTIFIED EXPERT IN CORPORATE PROPERTY INSURANCE AND A CERTIFIED EXPERT IN CORPORATE LIABILITY INSURANCE Now available from Illumeo and Barry Zalma!

veryone involved in insurance – either as an insurer or as an insured – requires excellence in claims handling. Businesses need to deal with insurers who have an excellence in claimshandling mandate. Insurers who wish to profit need an excellence in property and/or liability claims-handling program. Everyone in business needs an insurer who has an excellence in property or liability claims-handling program in effect. Two comprehensive programs enabling insurance professionals to become Certified Expert in Corporate Property Insurance and/ or Certified Experts in Corporate Liability Insurance are available from Illumeo.com and https://www.illumeo.com/curriculum/certifiedexpert-corporate-property-insurance and https://www.illumeo.com/ curriculum/certified-expert-corporate-liability-insurance. The programs are complete courses of study providing education and training to allow insurance professionals, after completing the individual classes, to become a Certified Expert. The programs cover everything an employee, an officer, or a director of a corporation needs to know about the need to acquire proper insurance and to resolve any claim presented by the corporation to the insurer. Major topics of study include, but are not limited to: the importance of insurance; how to acquire insurance and understand an insurance policy; the methods used by insurers to investigate claims; the various types of insurance that corporations need; the duties and obligations of a public adjuster; and how The full curriculum of the courses and other courses from Barry Zalma are available at http:// www.ilumeo.com by entering in the search bar the word “zalma.”

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APRIL 2019

NEW INSURANCE CLAIMS BOOKS BY BARRY ZALMA The Making of an Insurance Claims Professional

t is the insurance claims person - the adjuster - who meets with the person insured and works to keep the promises made by the insurance policy. The adjuster cannot, however, help the insurer keep the promises made unless he or she understands insurance, insurance claims, the types of claims presented and the law surrounding insurance and insurance claims. For the minimal cost of a paperback or Kindle book every insurer can place in the hands of their claims people information that will help them become professional, well trained, thoroughly educated claims professionals who are able to read and understand every insurance policy so that he or she is able to keep the promises made by the insurance policy. Read about these and many more insurance books by Barry Zalma at http://zalma.com/zalma-books/

• Construction Defects and Insurance • Zalma on Insurance Claims • Zalma on Insurance Claims Volume 101 • Zalma on Insurance Claims Part 102 • Zalma on Insurance Claims Part 103 • Zalma on Insurance Claims Part 104

• Zalma on Insurance Claims Part 105 • Zalma on Insurance Claims Part 106 • Zalma on Insurance Claims Part 107 • Zalma on Insurance Claims Part 108 • Zalma on Insurance Claims Part 109 • Zalma on Insurance Claims Part 110

VISIT ZALMA BOOKS NOW!

APRIL 2019

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Continued From Page 39

ZALMA

arguable, as opposed to actual, coverage.

CONCLUSION

The Supreme Court, therefore, concluded that the allegations in Abbott’s complaint fall within the initial grant of coverage under the personal and advertising the complaint alleges any claims injury liability provision of the that can be proven without such commercial general liability a showing, the insurer will be insurance policy West Bend required to provide a defense. issued to Ixthus. The claims in the complaint are sufficient to allege Even though the complaint a causal connection between generally asserts Ixthus acted Ixthus’s advertising activity and wrongfully and with knowledge Abbott’s injuries. that it was defrauding Abbott, West Bend is not relieved of its West Bend was required to defend. duty to defend because this complaint alleges at least one potentially covered advertising- ZALMA OPINION injury claim, which does not Because the court was limited to depend on whether Ixthus acted a reading of the complaint and with knowledge that it was compelled to ignore the actual, violating Abbott’s rights or with or extrinsic, facts it had no choice knowledge that it was inflicting but to find coverage for a defense advertising injury. Because because of the possibility of proof Abbott could prevail on several of a claim where all exclusions did covered advertising injury claims not apply. I have opined often that without establishing that Ixthus the four corners rule is unfair since knowingly violated Abbott’s any competent drafter can allege rights, it is possible coverage a suit that requires an insurer to that triggers West Bend’s duty to defend, as did the allegations in defend. the complaint, or refuse defense if the drafter wishes to punish While a finder of fact could the defendant. As a result, determine Ixthus acted knowingly, an insured who intentionally thereby relieving West Bend of its violated the rights of Abbot Labs indemnification obligation under must be defended because of the knowing violation exclusion, the potential for coverage and the duty to defend is broader than deprived the insurer of the right the duty to indemnify because to allege extrinsic evidence that the duty to defend is triggered by established no coverage. APRIL 2019

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