The Underwriter's Insider - July 2019 by The Underwriter's Insider

IN THIS ISSUE JULY 2019 VOL 15 ISSUE 7

Coming Soon: 5G Feeds Your Need For Speed

CA Supreme Court Suggests New Coverage For Loss of Earnings

Fundamentals Still Drive The Markets

LLoyd’s Of London Underwriters Team Up To Insure The Uninsurable

NASA Technology Missions Launch On Spacex Falcon Heavy

Special Report: 2018 Traffic Safety Culture Index

Former Washington State Agents Pleads Guilty To Adding Comp Coverage On Fake Vehicles To Earn MultiCar Discount

Worried About Market Volatility In Retirement? Consider Whole Life Insurance

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Computer Too Slow? New Chip Methods Promise 1000X Speed Increase

SWYFFT Partners With Trusted Choice - Homeowners Co. Becomes New Brand Partner

Jax Contractor Arrested For Alleged $40,000 AOB

Controlling And Engaging Policyholders With Enhanced Risk Mitigation

J.D. Power: Medicare Advantage Plan Customers Satisfaction Steady As Cost Drives Plan Selection

Four In Custody Alleged Involvement In Organized Auto Ins. Fraud Ring

Next Insurance’s First Wholesale Partner: London Underwriters

Something To Reflect On: How To Adjust Rear-View Mirrors

Hunt Is On For Fugitive Former CA Agent Charged With Mulitiple Felonies

Florida Busts Workers Comp Fraud Ring In Pinellas County

PREFER TO READ OFFLINE? DOWNLOAD & VIEW PDF: HERE!

Thue, Car crash 1, marked as public domain, more details on Wikimedia Commons

Auto Makes Encouraged To Change Name of Driver Assist Tech

Killer Robot Uprising Possible? One Expert Assesses The Possibility

How (And Why) To Write A Press Release

BECOME A CERTIFIED EXPERT IN CORPORATE PROPERTY INSURANCE AND A CERTIFIED EXPERT IN CORPORATE LIABILITY INSURANCE

INSURANCE AND THE LAW PAGE SIX

SPECIAL REPORT! 2018 Traffic Safety Culture Index

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

PG 42 FEATURES

2018-19 FAIA & LAAIA TRADE FAIR BOOTH IMAGES NOW ONLINE! PG 44

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Kim Komando

Breaking News

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Insider Advisor

Back Issues

Barry Zalma Matt Treskovitch Advertise

Say What?

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

Cover Image: (DoD photo by Army Staff Sgt. Sean K. Harp/Released)

JULY 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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TECHNOLOGY

COMING SOON: 5G FEEDS YOUR NEED FOR INTERNET SPEED

Really Cool Tech Info (and opinion) - From Kim Komando

here’s been a lot of talk about 5G. As compared to 4G LTE, 5G is 20 times faster. You can download a full HD movie in less than 10 seconds. Sounds nice, doesn’t it?

At the moment, AT&T is claiming the first standardsbased mobile 5G network. The premiere 5G device is the Netgear Nighthawk 5G Mobile Hotspot, which adapts the signal into Wi-Fi that your regular electronics can use.

Until 5G hits your home, you can dramatically speed up your current connection with a little-known secret setting. You don’t need to be a techno wizard to do it, either. Here’s how to change one setting to get faster internet speeds. The 5G revolution is also aimed at delivering virtualreality experiences and bringing more devices online, from sensors and robots to cars and smart-home gadgets. The next generation of wireless tech is handing out some big promises, so here’s what you need to know about the coming of 5G.

JULY 2019

Related: You might be shocked to find out which is the fastest carrier. It’s not Verizon. Here’s the report so you can see how your carrier compares to the competition.

Who will be first to 5G in the US? Last week, AT&T’s 5G network went live in 12 cities across the country. This limited introduction was available for anyone with 5G devices, although only a tiny percentage of the population possesses the necessary technology. Table of Contents

Meanwhile, other service providers are racing to catch up – and cash in. Verizon announced in early October it was the first to deploy a commercial 5G network with the limited introduction of a

See Kim Komando Pg 40 www/underwritersinsider.com

CLAIMS & THE LAW

CALIFORNIA SUPREME COURT SUGGESTS INSURERS INVENT A NEW COVERAGE FOR LOSS OF EARNINGS WHEN DISASTER CAUSES ONLY ECONOMIC LOSSES Expert Analysis & Commentary by Barry Zalma, Esq., CFE No Tort Liability for a Purely Economic Injury

ort law serves society’s interest in allocating risks and costs to those who can better prevent them, and it provides aggrieved parties with just compensation. But claims for purely economic losses suffered from mere proximity to an industrial accident create intractable line-drawing problems for courts that removes the issue from the courts to insurance acquired by the potential victims of a tort causing a purely economic injury. In Southern California Gas Company v. The Superior Court

Of Los Angeles County, First American Wholesale Lending Corporation Et Al., Real Parties In Interest, S246669, Supreme Court of California (May 30, 2019) a massive, months-long leak from a natural gas storage facility located just outside Los Join Barry Zalma’s Blog:

http://www.zalma.com/blog

Angeles caused serious multifaceted litigation. According to the allegations before the Supreme Court, the accident severely harmed the economy of a nearby suburb. The litigants asked the court to determine if businesses — none of which

allege they suffered personal injury or property damage — may recover in negligence for income lost because of the leak. The businesses argued that they deserve compensation for the economic losses they incurred and that the entity responsible must bear the full costs of its alleged negligence.

FACTS Near the northwestern corner of Los Angeles lies Porter Ranch, a residential neighborhood home to some 30,000 people. Southern California Gas Company (SoCalGas) stores vast amounts of natural gas in an underground facility in the hills surrounding the community. Known today as the “Aliso Facility,” that

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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In October 2015, a leak happened — and people noticed. An uncontrolled flow of natural gas from the Aliso Facility coated nearby neighborhoods in an oily mist. At its peak, the leak released some 55 tons of natural gas every hour. Porter Ranch residents reported unpleasant odors, headaches, dizziness, and respiratory problems. In addition to those symptoms, students at local schools complained of nosebleeds and vomiting.

Plaintiffs are Porter Ranch area businesses seeking to represent a class of “[a]ll persons and entities conducting business within five miles of the [Aliso] Facility from October 23, 2015 to [the] present.” They alleged that SoCalGas’s negligence caused the leak. The resulting relocation of many Porter Ranch residents devastated the local economy: by depriving local businesses of customers, the environmental disaster cost local businesses considerable earnings.

ANALYSIS Recovery

Porter Ranch Gas Leak Site

That harm, Plaintiffs maintain, is ongoing. No named plaintiff alleged personal injury or property damage. Accordingly, Plaintiffs acknowledge they are suing SoCalGas to recover solely As a result of the leak about for the income they lost because 15,000 people were relocated of the leak. in total, scattering to locations dozens — and in some cases SoCalGas demurred, arguing hundreds — of miles away. that Plaintiffs’ negligence claims JULY 2019

failed as a matter of law because Plaintiffs were seeking to recover for purely economic losses. After SoCalGas petitioned for a writ of mandate, the Court of Appeal granted the petition and reversed the trial court. The Court of Appeal explained that, under California law, it is “not presumed” that a defendant owes a duty of care to guard against economic losses unaccompanied by injury to person or property.

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in a negligence action depends as a threshold matter on whether the defendant had a duty to use due care toward an interest of the plaintiff’s that enjoys legal protection against unintentional invasion. The Supreme Court was asked to determine if SoCalGas — separate from other legal and practical reasons it had to prevent injury of any kind to the public — had a tort duty to guard against negligently causing purely economic losses. In California, the “general rule” is that people owe a duty of care to avoid causing harm to others and that they are thus usually See ZALMA Page 39 www/underwritersinsider.com

Scott L from Los Angeles, United States of America [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)]

subterranean storage site was once an oil reservoir. It was repurposed about 40 years ago for its present use. SoCalGas supplies over 21 million people with natural gas from its four storage facilities, but the Aliso Facility is the company’s largest. It holds up to 80 billion cubic feet of natural gas, which SoCalGas pumps underground at high pressure into more than 100 “injection wells.” Because natural gas is odorless, SoCalGas adds a nausea-causing chemical to the gas so that people notice when a leak happens.

ANALYSIS - FINANCIAL

FUNDAMENTALS STILL DRIVE THE MARKETS

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

fter 18 months of turmoil, many investors are nervous. The past year and a half have included two significant corrections and increased volatility. Investors who watch the news and look at their account balances every day certainly feel like they’ve been on a roller-coaster ride. Despite the increased volatility, 8

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market indexes have changed very little over the past eighteen months. Market commentators have given many reasons for the increased market volatility. Movements of the markets have been blamed on tariffs, trade wars, interest rates, and political turmoil at home and overseas. As always, reasons for market volatility are assigned after the Table of Contents

fact. Wise investors know that, when it comes to investments, long term thinking is the way to go. long-term investment decisions should not be made based on short-term market fluctuations.

Earnings are still the key to understanding stock prices In the long run, fundamentals still drive the markets. Historically, stock prices have JULY 2019

followed corporate earnings growth. When companies increase their profits, stock prices will follow. Research proves that the two most important factors for long term investors to watch are earnings and dividends. While the markets have been moving sideways, great companies have continued to grow their earnings. Analysts expect earnings growth to continue this year.

No signs of an imminent recession The job market is still strong. When people have good jobs and are making money, they will spend money. Consumer spending is what drives our economy. As long as people continue to spend, companies

will continue to make money, and investors will benefit. Interest rates have moved higher, but they are still at historically low levels, and inflation remains muted. So far, the economic indicators point to continued growth into the second half of the year. Economists expect growth to slow as we head towards the end of the year, but the economy seems unlikely to stall. Market commentators are again talking about how the “inverted yield curve” predicts a recession.

While it is true recessions have followed inversions in the past, we could still be years away from the next recession. Recessions are a normal and healthy part of the economic cycle. There will be another recession, but it is not likely to be as severe as the Great Recession, and no one can predict exactly when it will happen. In the short run, the market volatility could continue. The economy is continuing to create jobs at a healthy pace, and overall unemployment is the lowest it’s been in years. Longterm investors know that the health of the economy is much more important than market volatility.

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.

JULY 2019

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NEWS - LLOYD’S OF LONDON

LLOYD’S OF LONDON UNDERWRITERS TEAM UP TO INSURE THE UNINSURABLE A group of Lloyd’s underwriters have launched The Product Innovation Facility – a new initiative with £53m of capacity designed to speed up (re)insurance product development for today’s new and emerging risks.

he market-led solution, led by senior underwriters from Tokio Marine Kiln, Beazley, MS Amlin, Talbot, Liberty Specialty Markets, Hiscox, Ascot, Chubb, Chaucer, Brit, Antares and Apollo will trial new types of insurance for complex and non-standard risks, including, but not limited to, intangible assets and supply chain risks, or mishaps caused by artificial intelligence.

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Lloyd’s has committed to nurturing a “safe space” for underwriters to experiment with new ideas in a controlled way, which balances the need for appropriate oversight with the risk of not innovating fast enough.

By accessing the best ideas and data from the Lloyd’s market, the group will bring forward new solutions for nascent risks, in direct answer to clients’ evolving

John Neal, Lloyd’s Chief Executive Officer, said, “Lloyd’s has a deserved reputation as the home of insurance innovation and I am delighted to see this initiative taking shape, which harnesses Lloyd’s unrivalled entrepreneurial spirit. In so doing The Product Innovation Facility aligns with our collective vision for the future of the world’s (re) insurance market. By incubating new product ideas and helping them to scale up over time, Lloyd’s will continue helping its customers to deal with rapidly evolving and emerging risks.”

Trevor Maynard, Lloyd’s Head of Innovation, said, “The Product Innovation Facility formalises underwriting at the centre of the Lloyd’s innovation ecosystem. Working closely with Lloyd’s innovation team the group has put forward this new concept The facility is aligned with The of product development Future at Lloyd’s strategy, which by agreeing to support one is building a new Lloyd’s market another’s initiatives with £53m that will thrive in the future by of capacity in the first instance. providing even greater value to The facility is still open to other its customers. market participants to join.”

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Thomas Hoad, Head of Innovation at Tokio Marine Kiln, said, “We are fully supportive of the Product Innovation Facility and we invite risk managers, brokers and other interested parties to contact and collaborate with it. By accessing the best ideas and data from the Lloyd’s market, the group will bring forward new solutions for nascent risks, in direct answer to clients’ evolving needs.” Tina Kirby, Head of Innovation & Product Development at Beazley, said, “The Lloyd’s market has always been at the forefront of innovation and syndicates work on new solutions for their clients daily. This initiative is to promote and facilitate collaborative innovation where non-standard risks might require different thinking and expertise.”

Innovation Facility fill in this could fill to generate new form business. To get in touch with the group, The study found that different contact innovation@lloyds.com parts of the food supply chain have different risk transfer needs, which insurers need to adapt to. For example, food retailers primarily look for insurance to cover their physical infrastructure, business interruption, liability and product recall events. Due to the large number of suppliers that retailers use, their brand profile and their consumer he increasingly global exposure, their risk profiles are and complex food supply different to those of upstream chain, worth more than businesses in the supply chain.

FOOD SUPPLY CHAIN OFFERS NEW BUSINESS FOR INSURERS, SAYS LLOYD’S REPORT

$8 trillion of GDP, is exposed to a number of risks, which insurers could offer solutions for, according to a new report published by Lloyd’s today.

Opportunities to develop new business opportunities include contingent business interruption, protection from class action and cyber insurance. The report analyses the risks The project also highlights the and opportunities for insurers value of parametric insurance For more information visit: lloyds. in the global food supply chain, for agricultural producers. com/productinnovationfacility and identifies current gaps in To bring your idea to the insurance cover that insurers The report is available here. attention of the Lloyd’s Product

JULY 2019

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NEWS

NASA TECHNOLOGY MISSIONS LAUNCH ON SPACEX FALCON HEAVY

ASA technology demonstrations, which one day could help the agency get astronauts to Mars, and science missions, which will look at the space environment around Earth and how it affects us, have launched into space on a Falcon Heavy rocket. The NASA missions lifted off at 2:30 a.m. EDT Tuesday from NASA’s Kennedy Space Center in Florida, as part of the Department of Defense’s Space Test Program-2 (STP-2) launch. “This launch was a true partnership across government and industry, and it marked an incredible first for the U.S. Air Force Space and Missile Systems Center,” said Jim Reuter, associate administrator for NASA’s Space Technology Mission Directorate. “The NASA missions aboard the Falcon Heavy also benefited from strong collaborations with industry, academia and other government organizations.” The missions, each with a unique set of objectives, will aid in smarter spacecraft design and benefit the agency’s Moon to Mars exploration plans by providing greater insight into the effects of 12

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A SpaceX Falcon Heavy rocket carrying 24 satellites as part of the Department of Defense's Spa launches from Launch Complex 39A at NASA's Kennedy Space Center in Florida Tuesday, Jun four NASA technology and science payloads that will study non-toxic spacecraft fuel, deep sp electrically-charged layers of Earth's upper atmosphere, and radiation protection for satellit

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radiation in space and testing an atomic clock that could change how spacecraft navigate.

•

With launch and deployments complete, the missions will start to power on, communicate with • Earth and collect data. They each will operate for about a year, providing enough time to mature the technologies and collect valuable science data. Below is more information about • each mission, including notional timelines for key milestones.

Enhanced Tandem Beacon Experiment

One to three weeks after launch: E-TBEx operators “check out” the CubeSats to make sure power, navigation/ guidance and data systems are working in space as expected. Approximately three weeks after launch: Science beacons that send signals to antennas on Earth power up and begin transmitting to ground stations. About one year after launch: E-TBEx mission ends.

Deep Space Atomic Clock NASA’s Deep Space Atomic Clock is a toaster oven-sized instrument traveling aboard a commercial satellite that was released into low-Earth orbit at 3:54 a.m. The unique atomic clock will test a new way for spacecraft to navigate in deep space. The technology could make GPS-like navigation possible at the Moon and Mars.

Two NASA CubeSats making up the Enhanced Tandem Beacon Experiment (E-TBEx) deployed at 3:08 and 3:13 a.m. Working in tandem with NOAA’s COSMIC-2 mission – six satellites that each carry a radio occultation (GPS) receiver developed at NASA’s Jet Propulsion Laboratory (JPL) – E-TBEx will explore bubbles in • the electrically-charged layers of Earth’s upper atmosphere, which can disrupt communications and GPS signals that we rely on every day. The CubeSats will send signals in several frequencies • down to receiving stations on Earth. Scientists will measure any disruptions in these signals • to determine how they’re being affected by the upper atmosphere.

Two to four weeks after launch: The ultra-stable oscillator, part of the Deep Space Atomic Clock that keeps precise time, powers on to warm up in space. Four to seven weeks after launch: The full Deep Space Atomic Clock powers on. Three to four months after See SpacexFalcon Heavy Page 32

ace Test Program-2 (STP-2) mission ne 25, 2019. The satellites include pace navigation, "bubbles" in the tes. Credits: NASA/Joel Kowsky JULY 2019

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2018 TRAFFIC SAFETY CULTURE INDEX

This annual Traffic Safety Culture Index (TSCI), a nationally representative survey, has been conducted to identify and assess key indicators regarding American drivers’ attitudes toward and behaviors regarding traffic safety, since 2008.

INTRODUCTION

of our nation’s traffic safety culture through the annual Traffic Safety riving is an important Culture Index (TSCI), a nationally part of many Americans’ representative survey. In 2018, lives. For the last decade, the questionnaire was revamped the AAA Foundation for Traffic to include more measures such Safety has been committed to as perceived danger, risk of arrest, strengthening our understanding personal and perceived social

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approval of risky driving, support for laws and policies designed to curtail these behaviors, and selfreported engagement in these behaviors. The revised 2018 TSCI once again reveals that people in the United JULY 2019

B137, Miami traffic jam, I-95 North rush hour, Text overlay, CC BY-SA 4.0

SPECIAL REPORT - AAA

States value traveling safely and half of drivers (52.1%) report support strengthened laws that having driven while talking promote safer roads. American on a hand-held cellphone drivers perceive distracted, at least once in the past 30 drowsy, aggressive and impaired days. Fewer respondents driving as dangerous. However, report engaging in distracted similar to years prior, this driving by reading (41.3%) year’s survey highlights the and typing a text/email discordance between drivers’ (32.1%) on a hand-held attitudes and their behaviors. cellphone while driving. For example, many drivers noted the serious dangers associated Risky and Aggressive with holding and talking on Driving Behaviors cellphones while driving but • About half of drivers (54.2%) admitted to having done so in indicate that speeding on a the past month. freeway is dangerous, while 64% of drivers perceived KEY FINDINGS speeding on a residential street as dangerous. Distracted Driving • Nearly 66% of respondents • More drivers view reading felt that the police would (95.9%) or typing (96.7%) a catch a person driving 15 text/email on a hand-held miles per hour over the cellphone while driving to be speed limit on a freeway, yet very or extremely dangerous, almost 50% reported having compared with talking on a done so in the past 30 days. hand-held cellphone (79.8%). • Over 85% of drivers consider • Over 17% of drivers speeding through a red personally approve of talking light to be very or extremely on a hand-held cellphone dangerous, and 55% felt that and about 20% believed that the police would catch a people who were important driver for running a red light. to them approved of talking on a hand-held cellphone Drowsy Driving while driving. • A majority of drivers support • Over 96% of drivers identify drowsy driving as very laws restricting distracted or extremely dangerous. driving, with almost 75% However, only slightly less supporting a law against than 40% thought drowsy holding and talking on a drivers risked being caught cellphone and about 88% by the police. supporting a law against reading, typing, or sending a • Less than 2% of drivers personally approve and text or email while driving. nearly 3% of drivers believe • Nevertheless, more than friends/family would approve

of drowsy driving. • Despite high rates of perceived danger and personal/social disapproval regarding drowsy driving, about 27% of drivers admitted to having driven while being so tired that they had a hard time keeping their eyes open at least once in the past 30 days.

Impaired Driving • Most drivers (95.1%) perceive driving after drinking as very or extremely dangerous. However, almost 11% admitted to having done so in the past 30 days. • Seventy percent of respondents consider driving shortly (within an hour) after using marijuana to be very or extremely dangerous. However, over 7% of drivers personally approve of driving shortly after using marijuana. • Most drivers (87.3%) indicate driving after using potentially impairing prescription drugs as very or extremely dangerous. About 45% of drivers consider that a person driving after using potentially impairing prescription drugs would be likely to be caught by the police. • A majority of drivers support laws against impaired driving. Over 81% of respondents support laws making it See Traffic Safety Page 38

NEWS

FORMER WASHINGTON INSURANCE AGENT PLEADS GUILTY TO ADDING COMP COVERAGE ON FAKE VEHICLES TO CREATE MULTI-VEHICLE DISCOUNTS

LYMPIA, Wash. – Lilibeth Brulotte, a former insurance agent, pleaded guilty in Pierce County Superior Court to thirddegree theft in connection with writing fake auto insurance policies. Brulotte’s sentence was deferred for two years and will be dismissed if she commits no new crimes. She was also ordered to pay $4,668 in restitution and a $500 victim assessment fee.

Commissioner Mike Kreidler’s Criminal Investigations Unit (CIU). According to the investigation, Brulotte wrote comprehensive-only auto insurance policies for fake vehicles on existing Farmer’s Insurance policies from February 2013 through October

2015 to give clients a multi-car discount. She collected $4,668 in payments and caused $3,420 in lost premiums to Farmers, for a total loss of $8,088. Brulotte became licensed to sell insurance in 2012 and Commissioner Kreidler revoked her license in 2017.

Lilibeth Brulotte

Officials charged Brulotte after an investigation by Insurance

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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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JULY 2019

NEWS

WORRIED ABOUT MARKET VOLATILITY IN RETIREMENT? CONSIDER WHOLE LIFE INSURANCE, REPORT SAYS Cash value can help protect against risk from market downturns

NDIANAPOLIS--(BUSINESS WIRE)--Not having enough assets to generate income in retirement or losing assets because of market downturns are common concerns of those preparing for retirement, but whole life insurance as part of a solid retirement strategy can do more to alleviate those issues than many people might think, a recent report shows. “Integrating Whole Life Insurance into a Retirement Income Plan: Emphasis on Cash Value as a Volatility Buffer Asset,” by Wade D. Pfau, Ph.D., CFA, and Michael Finke, Ph.D., CFP, considers several asset scenarios of people preparing for retirement. In each case, scenarios including cash value of life insurance policies result in more income for retirees down the road than scenarios that don’t include whole life insurance.

said Pfau, professor of retirement income at The American College of Financial Services in Bryn Mawr, Penn. “We often hear that we don’t need life insurance in retirement because we have investments, but this research shows it’s harder for the market to beat a strategy with both life insurance and investments.”

and business development, OneAmerica®. “But we also know that people find peace of mind in the guaranteed cash value that whole life, or permanent, insurance can provide. This report demonstrates that cash value can also help mitigate inherent market risks in an investment-based retirement strategy.”

One scenario in which life insurance can pave the way for a greater income during retirement than investments alone is by using the cash value of life insurance as a source of income in years with market downturns. This “volatility buffer” scenario uses a policy’s cash value to draw as income in the year following a market downturn, rather than deplete retirement assets faster than expected because of lower-than-anticipated investment returns.

An advantage of life insurance as part of a retirement strategy is that it provides guarantees that marketbased investments can’t, said the report’s co-author.

“I prefer to incorporate life insurance cash value into an overall investment portfolio as part of a retiree’s bond allocation,”said Finke, dean and chief academic officer at The American College of Financial Services, which has helped financial services professionals realize their career goals through rigorous “Most people know that whole and practical education since “This report shows that using life insurance can protect a legacy 1927. “One important advantage insurance with other investments and provides for those left behind of cash value over a traditional can really lay the foundation for when someone dies,” said Chris bond mutual fund portfolio is the better outcomes in retirement,” Coudret, vice president, strategy protection against a decline in value if interest rates rise.” JULY 2019

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THE INSIDE TRACK - BREAKING NEWS

Aidar Kemelbay, Microchip for Carbon Nanotube Field Effect Transistors fabrication, CC BY-SA 4.0

Computer Too Slow? Researchers Promise 1000X Faster Using New Method

cannot be used for both components because of high temperatures during manufacturing. The new chip architecture is still a long way from your laptop. Chips have been created for simple tasks such as sensors - but work is underway to create, larger and more complex chips and may one day replace all conventional designs.

WellCare of Alabama Acquisition To Proceed

he Alabama Department of Insurance has approved the acquisition of WellCare of Alabama, Inc., by Centene Corporation. Insurance Commissioner Jim Ridling signed an order approving the acquisition of the Alabama-domiciled health maintenance

new 3D chip design formed from carbon nanotubes combining memory and processing on the same 3-layer chip promises remarkable speed increases of 1000X. The increase in speed is primarily a result of the reduced distance between the memory components and the processing components in the chip. (commute time) Itâ&#x20AC;&#x2122;s the carbon nanotubes that make the difference. Ordinary silicon wafers 18

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THE INSIDE TRACK - BREAKING NEWS organization on Tuesday. The approval comes after a June 12 public hearing was held to consider the proposed acquisition. Ridling found that after the acquisition, WellCare of Alabama, Inc. will be able to satisfy the requirements for issuance of a license for a health maintenance organization for which it is presently licensed.

1/2 the price) makes up estate sectors, which is ideal only a small fraction of for being able to articulate the Olympus value Apple’s sales and the and vision not company maintains only to our bestthat assembly is in-class agency only a portion of the partners, but entire manufacturing to their referral process. Apple sources as well,” President Tim Cook said McInnis. made a fairly big deal “The ability to of manufacturing the drive business previous Mac Pro in “Nate” Kochilaris from and through Austin, TX, investing $100 multiple access channels is million in tooling to do so. a unique skill - one that Nate Apple To Move Mac Pro Olympus Ins. Ads Nathan has perfected and will utilize Production To China to leverage his connections “Nate” Kochilaris as and drive business to our n spite of new tariffs on the company’s new independent agents.” goods coming from China Southwest Florida Sales and personal pressure from AvMed Ranked Highest Manager President Trump, Apple has In Satisfaction decided to have it’s $6,000 ALMBEACHGARDENS,Fla., Mac Pro assembled in June 13, 2019 (Newswire. iami, Florida, May China. Although the highcom) - Florida based Olympus 09, 2019 (GLOBE end computer (for which Insurance Company is NEWSWIRE) -- For the you could purchase roughly pleased to announce the eighth consecutive year equivalent processing addition of Nathan “Nate” an independent study power in a PC for roughly Kochilaris as the company’s released by J.D. Power new Southwest Florida Sales ranks AvMed “highest in Manager. Kochilaris will be Member satisfaction” among working under Vice President commercial health plans in of Sales and Marketing, Crystal Florida. AvMed achieved the McInnis. “Nate’s background highest overall satisfaction, encompasses experience in topping the region in the both the insurance and real study.

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NEWS

SWYFFT PARTNERS WITH TRUSTED CHOICE Homeowner’s insurance company becomes new brand partner

EW YORK--(BUSINESS WIRE)--Swyfft announces its partnership with the Trusted Choice® consumer branding program for Independent Insurance Agents and Brokers.

“We’re delighted to partner with Trusted Choice,” says Sean Maher, Swyfft Founder and CEO. “We share the goal of providing excellent service by offering a competitively priced, easy to use and convenient homeowner’s product.”

“Trusted Choice is excited to welcome Swyfft as our newest brand partner,” says Kevin Brandt, Executive Director. “Much like Trusted Choice independent insurance agents, Swyfft embodies our shared mission of providing a positive customer experience for our clients.”

Trusted Choice educates consumers about the benefits of Swyfft homeowner’s insurance using independent agents and is currently available in 8 states – brokers for their insurance needs: Illinois, Alabama, California, New Jersey, Massachusetts, Swyfft homeowner’s Nevada, Texas, New York, with Florida insurance is currently coming soon. Agents available in 8 states – Illinois, are encouraged to contact the company for Alabama, California, New Jersey, appointments.

Swyfft uses proprietary analytics and artificial intelligence (AI) to ‘techenable’ independent agents by allowing them to get a bindable homeowner’s quote in Massachusetts, Nevada, Texas, New seconds requiring only York, with Florida coming soon. About Swyfft a home address. The quote can then be easily Agents are encouraged to contact the Founded by Sean Maher customized, purchased and Richard Trezza, company for appointments.” and a policy delivered to Swyfft is disrupting inbox in about a minute. the insurance industry The entire process is easy and choice of companies, customized through its patented analytics and frictionless, and designed to policies and advocacy support. unique data sources. Combined save time and money without The brand is the consumer with an exceptional user sacrificing underwriting integrity. marketing identity for more than experience, the company is able to 26,000 independent insurance more accurately assess the risks to agencies and brokerage firms and Swyfft’s core business is via its your home in seconds, using just network of independent agents 62 leading insurance companies. an address. In many cases, this also and brokers. means a lower premium too. 20

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NEWS

FLORIDA ANNOUNCES ARREST OF JACKSONVILLE CONTRACTOR FOR ALLEGED $40,000 AOB INSURANCE FRAUD SCHEME

ACKSONVILLE, Fla. – Chief insurance checks that required Financial Officer (CFO) “When they hire a company, three signatures—one from Jimmy Patronis announced consumers should have peace the homeowner, one from the the arrest of Wyatt Green, owner of mind that work is being mortgage lender, and one from of Storm Restoration Specialists completed and not have to worry Storm Restoration Specialists LLC, for allegedly stealing about being left high and dry LLC. Allegedly, Green directed his more than $40,000 from staff to forge homeowners’ Green and his staff consumers who assigned signatures on the checks as their insurance benefits to as added the mortgage allegedly forged customer well him through Assignment of lenders’ endorsement before signatures on construction Benefits (AOB) contracts. depositing the checks into his bank account. This documents and insurance Green and his staff investigations revealed that claim payment checks that allegedly forged customer Green and his employees signatures on construction required signatures from both purchased 58 false bank documents and insurance endorsement stamps from a the homeowner and mortgage claim payment checks online manufacturer to aid in that required signatures lender. An AOB gives a third- this scam. from both the homeowner party authority to file a claim, Employees of Green also and mortgage lender. An AOB gives a third-party make repair decisions and collect admitted to allegedly forging authority to file a claim, insurance payments without the customer signatures on make repair decisions and construction documents homeowners’ involvement.” collect insurance payments required by counties and without the homeowners’ municipalities. In some cases, involvement. by a contractor. My detectives construction work was never work hard every day to find these completed, and in others the work CFO Jimmy Patronis said, “This criminals and stop them from never even began. case is another example of a bad preying on homeowners.” contractor scamming Floridians Green was booked into the and pocketing the money CFO Patronis’ detectives Duval County Jail on April 12, on without actually making repairs. discovered that Green was hired charges of Organized Scheme to AOBs were once used to protect by four homeowners to perform Defraud, Grand Theft and Forgery. Floridians but recently, assigning contracting work. Green’s If convicted, Green faces up to 35 your benefits over to a contractor office would directly receive years in prison. has become an abusive practice.

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CONTROLLING AND ENGAGING POLICYHOLDERS WITH ENHANCED RISK MITIGATION

he challenge for P&C carriers has been that the actions and behaviors of their policyholders are, for the most part, beyond their control. However, enhanced risk mitigation techniques, supported by emerging technologies such as telematics and enhanced data analysis, are beginning to emerge. Controlling and Engaging Policyholders With Enhanced Risk Mitigation, Aite Group’s newest report, explores these enhanced risk mitigation techniques and JULY 2019

whether they provide P&C carriers an opportunity to gain some control over policyholders. “Attempts to control the environment can be effective, but these efforts ignore the element of human error,” states Jay Sarzen, senior analyst at Aite Group. “Carriers are often left to hope that their insureds act responsibly or that people coming into businesses or restaurants will act responsibly, but even responsible people make mistakes, and Table of Contents

accidents can happen as a result, even in environments that have been made safer. Clearly, hope is not a strategy, so carriers are compelled to look beyond environmental control,” he goes on to explain. This Impact Report focuses on the enhanced risk mitigation techniques and technologies that are available to P&C insurance carriers, how they can be used, and whether consumers are receptive to these types of techniques. www/underwritersinsider.com

NEWS

J.D. POWER: MEDICARE ADVANTAGE PLAN CUSTOMER SATISFACTION STEADY AS COST DRIVES PLAN SELECTION Kaiser Permanente Ranks Highest in Overall Satisfaction for Fifth Consecutive Year

OSTA MESA, Calif.: 20 June 2019 — With enrollment in Medicare Advantage plans nearly doubling over the past decade—now reaching roughly 20.4 million Americans— health plans have been able to maintain consistently high levels of overall customer satisfaction. According to the J.D. Power 2019 Medicare Advantage Study,SM released today, overall satisfaction with Medicare Advantage plans has increased slightly this year. “Approximately 10,000 people turn 65 every day in America and many are choosing Medicare Advantage plans helping private plan membership grow nearly 10% between 2018 and 2019,” said

James Beem, Managing Director, Global Healthcare Intelligence at J.D. Power. “That’s 1.6 million beneficiaries being added to a relatively small number of health plans in a very short time frame. Even though health plans have been delivering a remarkably consistent customer experience, there is still room for improvement in the form of lowering costs for seniors, proactive communication • around explanation of benefits and helping members coordinate healthcare.”

Following are some of the key findings of the 2019 study: •

Satisfaction

gap

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narrows

between PPO and HMO Plans: While overall customer satisfaction with Medicare Advantage plans is up 1 point (795 on a 1,000-point scale) from 2018, the gap in overall satisfaction between HMOs and PPOs is narrowing. In 2019, the gap is 10 points (804 for HMOs vs. 794 for PPOs), whereas in 2017, the gap was 20 points (810 for HMOs vs. 790 for PPOs). Member tenure has positive effect on satisfaction: Overall customer satisfaction is highest (822) among Medicare Advantage plan members who have been with the same plan between 9-11 years. However, 59% of plan members say they’ve been with their current

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Medicare Advantage Plan Customer Satisfaction Rankings Kaiser Foundation Health Plan ranks highest in Medicare Advantage member satisfaction for a fifth consecutive year, with a score of 833. Kaiser outperforms all other plans across four of the six factors that comprise the overall satisfaction index. Highmark (818) ranks second and Humana (803) ranks third. The study, now in its fifth year, measures member satisfaction with Medicare Advantage plans— also called Medicare Part C or Part D—based on six factors (in order of importance): coverage and benefits (29%); provider choice (17%); cost (15%); customer service (15%); information and communication (12%); and billing and payment (12%).

•

provider for less than five years. Cost is most frequent driver of switching: Among Medicare Advantage plan members who choose to switch plans, the most common reason is costrelated. However, those who switch plans for cost-related reasons alone have satisfaction scores that are considerably lower (777) than those who switch for cost- and non-costrelated reasons (808). Information and JULY 2019

The 2019 Medicare Advantage Study is based on the responses of 3,233 members of Medicare Advantage plans across the United communication offer States. It was fielded from January opportunity for improvement: through March 2019. Aside from cost, the lowestrated attributes in the study J.D. Power is a global leader in insights, advisory are consistently those consumer services and data and analytics. related to information and communication. Fewer than These capabilities enable J.D. 9% of Medicare Advantage Power to help its clients drive plan members say they’ve customer satisfaction, growth and experienced all three of the profitability. Established in 1968, study’s key performance J.D. Power has offices serving indicators related to effective North America, South America, Asia Pacific and Europe. communication. Table of Contents

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NEWS

FOUR IN CUSTODY FOR ALLEGED INVOLVEMENT IN SACRAMENTO ORGANIZED AUTO INSURANCE FRAUD RING

ACRAMENTO, Calif. — actually bought at an auto auction Detectives from the and it was already totaled. California Department of Insurance have arrested Ameer Almassou, Bariq Aleyada, and Ziad Jaber Jaber for allegedly ripping off auto insurers for more than $22,000 by filing fraudulent insurance claims. One additional suspect, Muhamed El Gererey, self-surrendered yesterday. The scheme involved owners and associates of Habib Auto Sales, Ocean Auto Sales, and Rusul Auto Sales who allegedly bought damaged vehicles from auto auctions and staged collisions or damage with those vehicles in an attempt to collect fraudulent insurance payouts. In one example, a suspect reported his 2015 Dodge was stolen, found burned and determined a total loss. He then reported the alleged theft to his insurance carrier and claimed he bought the car for about $12,000 from his own auto dealership. The investigation revealed the car was

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2013 Mercedes and received an insurance payout for approximately $11,685. He claimed that two hours after purchasing the car he was involved in a three-vehicle collision. To corroborate this claim, another suspect provided a sales contract to the insurer even though the car was actually bought at an auto auction for less than what the contract listed.

Three of the suspects were taken into custody without incident and booked into the Sacramento County main jail on June 18, In another example, a suspect bought a 2007 BMW with 2019. The fourth suspect selfmechanical issues at an auto surrendered to the Sacramento auction. That same day another County main jail on June 20, suspect reported a solo vehicle 2019. collision to his insurer and claimed he bought the same This case was investigated 2007 BMW from a dealership. His by the Sacramento Urban insurer accepted the claim and Auto Fraud Task Force, which paid him approximately $9,295 is supervised and led by the California Department of for his alleged collision. Insurance Enforcement Branch. One of the suspects submitted The Sacramento County District another insurance claim Attorney’s Office is prosecuting to a different insurer for a this case. Table of Contents

JULY 2019

NEWS

NEXT INSURANCEâ&#x20AC;&#x2122;S FIRST WHOLESALE PARTNER: LONDON UNDERWRITERS

egional Wholesale Broker and online insurance product distribution specialists, London Underwriters has recently partnered with one of the industry's most innovative insurance platforms, Next Insurance. Next Insurance has raised over $131 million in capital funding within 2 years of launching from Nationwide Insurance, Munich RE, American Express Ventures and more.

With the core philosophy that business insurance should be simple, affordable and tailored to the insured, the Next Insurance program offers unique, admitted coverage packages for Commercial Auto, General Liability and Professional Liability.

Through recent technology advancements, London Underwriters has become the first Over the past 2 years, Next directly appointed wholesaler in Insurance was primarily direct to the country. London Underwriters consumer, providing Commercial will now be able to provide instant Auto, General Liability and quoting and binding authority to Professional Liability for small their appointed agents through the Next Insurance rater. businesses in all 50 states. JULY 2019

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London Underwriters is a Wholesale Broker that specializes in writing both Personal and Commercial Lines of business. If your agency is interested in becoming an appointed agency with London Underwriters, please email marketing@londonuw. com or visit their website at www.londonuw.com for more information. www/underwritersinsider.com

“The Final Authority on Everything!” WARNING!

Something To Reflect On...

ow can I be certain my right and left-side auto mirrors are adjusted properly? My husband and I argue constantly about this. He says that the mirrors should be adjusted out real wide but I want them in closer where I can see along the side of my car. If I can’t see the side of the car, I can’t figure out what I’m looking at anyway. – N.B. Baton Rouge, LA

husband is most likely correct. The purpose of the outside mirrors is to see that relatively small area between where your view ends in the rear view mirror and what you can see glancing out your side windows. It’s called your ‘blind spot’ and you have one on each side of the vehicle. Best way to adjust? For your right mirror, do the following:

In any parking lot, pull slowly about 5 feet to the left of a parked vehicle until the parked vehicle disappears from view out your right side window. (The

We checked with Poncho Vam-Vito, former GT racing great and a member of our automotive staff: “Well, N.B. may not want to hear this, but her 28

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Joe Mabel, Rear view mirror view in Mt. Rainier National Park, driving to Longmire, CC BY-SA 3.0

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.

ADVISOR

idea is to position the other car as if it was in an adjacent lane.) Now stop. You probably cannot see the vehicle in your rear view mirror at this point either, because it is in your blind spot. Now adjust your right-side mirror so that you have the other vehicle clearly in view. Don’t be surprised if you have to adjust your mirror all the way out in order to do so. For your left mirror, do the same with a parked vehicle on your left. Note that the adjustment is sensitive to seat position (particularly front to back) JULY 2019

vehicles were found to Incidentally, have the mirrors adjusted improperly – almost you don’t always too far in where ordinarily have to they missed the blind keep track of the spot altogether! Oddly, side of your own car. many folks were resistant to change their mirror positions It will usually follow - even when confronted with on site test results where they you home.” were unable to see a vehicle and you and your husband in their “blind spot” with may have to readjust the their usual mirror position. mirrors each time you drive you don’t the vehicle if you are sharing Incidentally, ordinarily have to keep track one car. of the side of your own car. It In a random sample, will usually follow you home. more than 90% of all Table of Contents

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NEWS

HUNT IS ON FOR FUGITIVE FORMER CALIFORNIA AGENT CHARGED WITH MULITPLE FELONIES Apprehending alleged criminal before others are victimized drives search.

OS ANGELES, Calif. — Felony charges for grand theft and identity theft were filed against Alicia Calderon, 33, a former licensed insurance producer, after investigators discovered evidence that Calderon took money from and issued fraudulent policies for a commercial building and big-rig trucks leaving two consumers vulnerable to significant financial loss. Calderon allegedly provided victims with fraudulent policies that included effective dates and coverage amounts. One victim suffered an uninsured loss as a result of Calderon’s theft. The second victim was also involved in a collision where they were not at fault, but the collision report led to a DMV notification that their registration was flagged for suspension due to lack of coverage, after the insurer

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notified the DMV that no such policy existed.

The investigation also revealed the policies Calderon submitted contained non-existent policy numbers and that she used another agent’s license information constituting identity theft.” “Calderon’s flagrant use of an expired agent license to victimize hard working people is reprehensible,” said Insurance Commissioner Ricardo Lara. “Her alleged crimes left every driver who shared the road with the uninsured big-rigs at great risk.” When the victims contacted Calderon regarding the uninsured loss and notices Table of Contents

from the DMV, Calderon offered excuses and even charged one victim to rectify the DMV issues. The Department of Insurance launched an investigation after receiving a consumer complaint earlier this year. Investigators found evidence Calderon accepted $11,700 in premium payments from two victims in 2017 for the purchase of liability coverage for a commercial building and tractor trailer. The investigation also revealed the policies Calderon submitted contained non-existent policy numbers and that she used another agent’s license information constituting identity theft. Calderon’s bail has been set at $300,000 and her location is unknown at this time. The Department of Insurance is looking for any information on the suspect’s whereabouts and is concerned there may be more victims who are unaware their policy is fraudulent. JULY 2019

NEWS

FLORIDA BUSTS WORKERS COMP FRAUD RING IN PINELLAS COUNTY

LDSMAR, Fla. – Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of 10 individuals during a three-day unlicensed contracting and workers’ compensation fraud sting in Pinellas County. The joint operation between CFO Patronis’ fraud detectives and the Pinellas County Sheriff’s Office, dubbed ‘Operation Stonewall’, was launched to address unlicensed contractors who were both working without a required contractor license and without required workers’ compensation coverage.

and contractors working without workers’ compensation coverage can leave employees and property owners vulnerable. My fraud detectives have made nearly 600 arrests for working without workers’ compensation insurance coverage since I’ve been in office.

From June 1-3, CFO Patronis’ fraud detectives and the Pinellas County Sheriff’s Office, conducted a joint sting operation that caught contractors allegedly agreeing to perform work without a license and without the proper workers’ compensation insurance coverage.

The following 10 individuals were arrested on charges of contracting without a license and failure to secure workers’ compensation insurance coverage: Randy Allen Jeziorski, Kerrigan Leo Cowles, Sidney Lisojo, Jason Robert Gamache, Kris Douglas Kelley, Dennis Disney Garlock, Nicholas Guiseppe D’Alessandro, Marcello McIntosh, Richard Thomas Ouellete, Alberto Chanelo. All individuals were booked into the Pinellas County Jail. If convicted, each face up to 5 years in prison.

CFO Jimmy Patronis said, “As we’ve seen in the wake of Hurricanes Irma and Michael, unlicensed activity puts homeowners at risk for fraud,

JULY 2019

“Taking advantage of vulnerable Floridians is despicable, and those who do so will be caught and held accountable. I applaud the great teamwork between my fraud detectives and the Pinellas County Sheriff’s Office on this successful sting operation.”

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NEWS - SCIENCE & TECHNOLOGY Continued From Page 13

NASA TECHNOLOGY MISSIONS LAUNCH ON SPACEX FALCON •

launch: Preliminary clock • performance results expected. One year after full power on: Deep Space Atomic Clock mission ends, final data analysis begins.

Green Propellant Infusion Mission The Green Propellant Infusion Mission (GPIM) deployed at 3:57 a.m. and immediately began to power on. GPIM will test a new propulsion system that runs on a high-performance and non-toxic spacecraft fuel. This technology could help propel constellations of small satellites in and beyond lowEarth orbit. •

•

Within a day of launch: Mission operators check out the small spacecraft. One to three weeks after launch: Mission operators ensure the propulsion system heaters and thrusters are operating as expected. During the first three months after launch: To demonstrate the performance of the spacecraft’s thrusters, GPIM performs three The Underwriter’s Insider

•

lowering burns that place it in an elliptical orbit; each time GPIM gets closer to Earth at one particular point in its orbit. Throughout the mission: Secondary instruments aboard GPIM measure space weather and test a system that continuously reports the spacecraft’s position and velocity. About 12 months after launch: Mission operators command a final thruster burn to deplete the fuel tank, a technical requirement for the end of mission. About 13 months after launch: GPIM mission ends.

•

• •

Three weeks after launch: SET turns on for check out and testing of all four experiments. Eight weeks after launch: Anticipated start of science data collection. About 12 months after checkout: SET mission ends. In all, STP-2 delivered about two dozen satellites into three separate orbits around Earth. Kennedy Space Center engineers mentored Florida high school students who developed and built a CubeSat that also launched on STP-2.

“It was gratifying to see 24 satellites launch as one,” said Nicola Fox, director of the Heliophysics Division in NASA’s Space Environment Testbeds Science Mission Directorate. “The The U.S. Air Force Research space weather instruments and Laboratory’s Demonstration and science CubeSats will teach us Science Experiments (DSX) was how to better protect our valuable the last spacecraft to be released hardware and astronauts in space, from STP-2 at 6:04 a.m. Onboard is insights useful for the upcoming an instrument designed by JPL to Artemis program and more.” measure spacecraft vibrations, and four NASA experiments that make GPIM and the Deep Space up the Space Atomic Clock are both part of the Technology Demonstration Environment Testbeds (SET). SET Missions program within will study how to better protect NASA’s Space Technology satellites from space radiation by Mission Directorate. The Space analyzing the harsh environment Communications and Navigation of space near Earth and testing program within NASA’s Human various strategies to mitigate the Exploration and Operations impacts. This information can be Mission Directorate also provided used to improve spacecraft design, funding for the atomic clock. SET engineering and operations in and E-TBEx were both funded order to protect spacecraft from by NASA’s Science Mission harmful radiation driven by the Sun. Directorate. Table of Contents

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NOTABLE QUOTABLES IN THE NEWS - WITH COMMENTARY

SAY WHAT? W. Robert Howell from Charlotte, NC, United States, Car Accident, CC BY-SA 2.0

Not So Far Apart?

mericans on each side imagine that almost twice as many people on the other side hold extreme views than actually do.“ Scholars Daniel Yudkin, Stephen Hawkins and Tim Dixon explaining in a new report, “The Perception Gap.” The survey, taken by the nonpartisan organization More in Common and the survey firm YouGov, was polled just after the 2018 midterms.

Democratic Politicians Are, Well, Politicians...

irtually every [Democrat} candidate running for the Oval Office has an ambitious platform to which he or she can point. But few, if any, have articulated a means for getting that platform into law.”

Auto Pilot? Not...

utomakers need to take care when they name a system of not implying that the driver can be out of the loop — that these are driverassistance systems, not driver-replacement systems. Manufacturers should consider what message the names of their systems send to people.” IIHS President David Harkey commenting on the dangerous and false impression certain auto manufactures may be giving drivers by naming their “driver assist” tech packages in a manner to suggest that the driver can stop driving the vehicle and simply let the AI take over. - As reported in Property Casualty 360 HERE.

Biden No Star On The Stage...

f the contention is, he’s the one to go head-to-head, he’s going to have to kind of re-prove that. Because last night put some cracks, I think, in that narrative.”

Sam Stein, Politics Editor of the Daily Beast, pointing out after the 1st Democratic debate in Miami on June 26th that the wild promises of free stuff offered by virtually every candidate would require not only a Democrat president but control of the House and a super-majority in the U.S. Sue Dvorsky, the former Senate. Extremely unlikely... chairwoman of the

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Iowa Democratic Party commenting on Joe Biden’s lackluster performance in the 1st of the Democratic debates. Biden also just lost the support of the top campaign fund raiser in the SF Bay area as a result of his misstatements on the segregationists and Hyde amendment and has lost 10 points in the polling. It seems the Democratic Party’s overcharged focus on political correctness is having some cannibalistic effect on at least one candidate.

Some Guys You Just Can’t Get Rid Of...

President Jimmy Carter showing his advanced age (94) and his political bias. Nobody seriously believes that $100,000 in Facebook posts, many of which were proHillary swayed our national election, in fact, it may not have changed a single vote. Trump, in typical Trump fashion, immediately shot back, referring to Carter: “He’s a nice man. He was a terrible president. He’s been trashed within his own party. He’s been trashed. Everybody now understands that I won not because of Russia, not because of anyone but myself. I went out and campaigned better, smarter, harder than Hillary Clinton.” But the bigger question

JULY 2019

Killer Robot Uprising Possible?

ilitary robots obviously would be able to kill people, but only a few. To be an existential threat, there would need to be many millions of them that have become a threat without anyone noticing, and that seems u n l i k e l y. Although again, it assumes a modicum of intelligence in regulation. Robots plus online AI is a different threat. Online AI could possibly shut down or sabotage human defences while turning our defences on ourselves in coordination with a robot uprising. Possible, but hopefully unlikely. Only if regulators are stupid and allow them to be superhuman or to access superhuman powers. On the other hand, our regulators often are stupid.” Dr. Ian Pearson, an ex-cybernetics engineer in a conversation with Daily Star Online. Often called a “futurologist,” Pearson offers an uneasy outlook on the potential existential danger posed by military killer robots.

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CC0 Public Domain Max Pixel

think the interference, though not yet quantified, should be fully investigated and would show that Trump didn’t actually win the election in 2016, he lost the election. He was put into office because the Russians interfered.”

is this: Why would Vladimir Putin want Donald Trump to be president? He’s been tougher by far than any previous president on the country. For a list of sanctions and actions taken by the Trump administration against Russia, look HERE. In any rational review of the facts, the Russians would have certainly preferred Hillary with her weak, feckless foreign policy to be heading up the opposition.

BACK ISSUES

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BACK ISSUES

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SPECIAL REPORT - AAA Continued From Page 15

2018 TRAFFIC SAFETY CULTURE INDEX illegal to drive with a certain amount of marijuana in your system, and 76.3% support laws preventing the transport of a minor by a driver who has had any alcohol.

Methodology

If a sampled household lacked internet access or an internetcapable computer, they were provided internet access and a netbook computer at no cost to the household. Individuals not sampled could not volunteer to join the panel. Statistics were weighted to reflect the entire population from which the sample was drawn in response to each individual respondent’s probability of selection into the panel and the probability of selection for the survey.

There is a stark contrast between the public’s attitudes toward cellphone use and selfreported behaviors. Many drivers noted the serious dangers associated with holding and talking on cellphones while driving, while also admitting to having done so in the past month.”

This study recruited a sample of 3,349 respondents ages 16 and older from KnowledgePanel®, an online probability-based research panel maintained by Ipsos (formerly GfK). The panel was designed to be a representative sample of households in the United States and recruited using standard probability-based random digit dial (RDD) and address-based sampling method Results (GfK, 2016). Results from the TSCI suggest American drivers perceive 38

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distracted, aggressive, drowsy and impaired driving as dangerous. Driving after drinking enough alcohol to be over the legal limit and distracted driving behaviors related to reading and sending text messages on cellphones are considered particularly dangerous. Speeding, either driving 10 miles over the limit on a residential street or driving 15 miles over the limit on a freeway, is regarded as the least dangerous. Of particular interest is the concordance (or lack thereof ) between attitudes toward risky driving and self-reported behaviors. Often there is also a concordance between perceived risk of arrest and/or social approval. For example, the public regards drinking and driving as extremely dangerous, and people rarely report engaging in this behavior. On the other hand, speeding is regarded as the least dangerous of the driving activities in the survey and the most commonly cited selfreported risky driving behavior. There is a stark contrast between the public’s attitudes toward cellphone use and self-reported behaviors. Many drivers noted the serious dangers associated with holding and talking on cellphones while driving, while also admitting to having done so in the past month. JULY 2019

CLAIMS & THE LAW Continued From Page 7

ZALMA

liable for injuries their negligence inflicts. At least in cases involving traditionally compensable forms of injury — like physical harm to person or property — the court will presume the defendant owed the plaintiff a duty of care and then ask whether the circumstances “justify a departure” from that usual presumption.

losses stemming from manmade calamity. In fact, the latest Restatement Of Torts provides that there is “no general duty to avoid the unintentional infliction of economic loss on another.” (Rest.3d, Torts, Liability For Economic Harm (Tent. Draft. No. 1, Apr. 4, 2012) § 1 (Restatement T.D. 1).)

In justifying that position, the Restatement echoes widespread judicial concern that purely economic losses proliferate more easily than losses of other kinds and are not selflimiting in the same way. Those characteristics, the Restatement explains, threaten liabilities The primary exception to the that are indeterminate and out general rule of no-recovery of proportion to a defendant’s for negligently inflicted purely culpability, and with them economic losses is where the exaggerated pressure to avoid an plaintiff and the defendant have activity altogether. a “special relationship.” What we mean by special relationship is The allegations before the that the plaintiff was an intended Supreme Court underscored the beneficiary of a particular ineluctable difficulty associated transaction but was harmed by with imposing a duty to guard the defendant’s negligence in against purely economic losses carrying it out. For example, the in negligence cases like this one. intended beneficiary of a will It may be possible to quantify could recover for assets she would the profits any one business lost have received if a notary had not because of an industrial accident, been negligent in preparing the but imposing such a duty would nevertheless create line-drawing document. problems across — quite literally Concerned about line-drawing — space and time. The Supreme problems and potentially Court, therefore, concluded that overwhelming liability, courts it lacked clear spatial bounds across the country have rejected within which to cabin claims like recovery for purely economic those asserted by the plaintiffs. JULY 2019

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This case does not involve a so-called special relationship. Plaintiffs propose to limit the class they seek to represent based on geographic proximity alone. Putative class members here are businesses operating “in the area within five miles” of the leak, a space which Plaintiffs characterize as “the precise area from which residents were evacuated.” What is far from clear is why the five-mile line means anything. Others beyond that boundary were also affected. There is no compelling basis for the court to let a business operating 4.9 miles away recover its lost profits but deny such recovery to another business operating 5.1 miles away. The case confronted the Supreme Court with hundreds of claims brought by hundreds of businesses stemming from one industrial accident — and that’s just the artificially limited class Plaintiffs seek to represent, not the full universe of potential claimants whose pocketbooks were adversely (and foreseeably) affected by the leak. Denying recovery for those who did not suffer injury to person or property is not a perfect solution

See ZALMA Pg 49 www/underwritersinsider.com

TECHNOLOGY Continued From Page 5

KIM KOMANDO

looking at waiting well into 2019 before there are significant deployments of mobile 5G networks.

Will your phone work with 5G?

Christoph Scholz cc logo Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)

The short answer is yes, and you should probably start saving up for it because 5G will not be 5G home broadband service in cheap. The Netgear Nighthawk parts of Sacramento, Houston, 5G Mobile Hotspot (mentioned Indianapolis and Los Angeles. above) retails for about $500, The issue here is that Verizon’s which is more than twice as service doesn’t meet the globally expensive as a similar 4G mobile recognized 5G standard. Verizon hotspot. says it will adopt that industry standard in 2019 while rolling out The new device is great news its 5G mobile service for phones. for technophiles with an T-Mobile says it is targeting 2020 insatiable hunger for newer, for full nationwide 5G coverage faster gadgets. The effects of 5G for its customers. should be extraordinary, with Don’t get too excited yet. What this really means is that we’re

See Komando Page 41

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TECHNOLOGY Continued From Page 40

KIM KOMANDO unprecedented data rates. But to take advantage, you’ll have to retire your current devices, even that new $1,000 iPhone XS. Both Motorola and LG announced 5G-capable phones earlier this year, but the hardware won’t be out until 2019. Related: Have an old phone lying around? Here’s how to get the most money when you sell it. These early 5G smartphones will also need to work on older networks due to what could be a slow and spotty rollout of 5G. The Moto Z3, exclusive to Verizon,

is an excellent example of this. It’s a 4G phone, and it’s already available. Next year, you will be able to buy a 5G Moto Mod to add onto the phone, so it will work with Verizon’s 5G network. For people who don’t want to spring for an entirely new phone, they’ll be able to test the 5G waters with mobile hotspots. These small devices will connect to the 5G network, and you’ll then be able to connect your phone or computer to the hotspot. The advantage here is the ability to connect multiple devices to one fast wireless hotspot.

Why is 5G important? Smartphones are just one small piece of the 5G revolution. The blazing-fast speeds on our phones will be enjoyable, but the real future of 5G is in connecting all the pieces of our world together. Self-driving cars

could talk to each other, making them safer and more reliable. Augmented-reality glasses could give us a new way of looking at the world around us. We’re getting closer to a more exciting sci-fi-style future, and the seeds for that will be planted as 5G expands into reality in 2019 and then ramps up in 2020. In a decade, we may look back and marvel at how it all began. What digital lifestyle questions do you have? Call my national radio show and click here to find it on your local radio station. You can listen to the Kim Komando Show on your phone, tablet or computer. From buying advice to digital life issues, click here for my free podcasts.

Copyright 2019, WestStar Multimedia Entertainment. All rights reserved. Learn about all the latest technology on the Kim Komando Show, the nation’s largest weekend radio talk show. Kim takes calls and dispenses advice on today’s digital lifestyle, from smartphones and tablets to online privacy and data hacks. For her daily tips, free newsletters and more, visit her website at Komando.com

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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. JULY 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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2019 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 115th 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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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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JULY 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!

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CLAIMS & THE LAW Continued From Page 39

ZALMA

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HERE

in negligence cases like this one. Far from it. It is only the leastworst rule out there. Although many business interruption insurance policies presently available might not cover the purely economic losses alleged here private insurance companies could conceivably see a profitmaking opportunity in today’s decision. Now that it is certain that a lawsuit seeking purely economic losses of this sort will not succeed, businesses operating near a natural gas storage facility — or a dam, shipping lane, oil well, and so forth — may be more inclined to buy insurance covering profits they stand to lose if disaster strikes. If so, private insurance companies might expand their policy offerings accordingly. Society’s interests are not best served by extending its scope indefinitely. The better part of a century has passed since then-Judge Cardozo warned that permitting recovery in negligence for

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purely economic losses can threaten indeterminacy-cubed: “liability in an indeterminate amount for an indeterminate time to an indeterminate class.” (Ultramares Corp. v. Touche (N.Y. 1931) 174 N.E. 441, 444.) Courts across the country have since heeded that warning, by and large denying recovery in negligence cases like this one even though purely economic losses inflict real pain. That prevailing rule of no recovery is, like society itself, imperfect. Yet nearly everyone follows a rule that few (if any) entirely like. California, by this decision, does, too.

ZALMA OPINION The California Supreme Court, in a lengthy and well researched opinion found an imperfect solution to a problem that could not be cured by tort law. It gave the insurance industry a great idea to create a new market for an insurance product that – if spaced carefully like earthquake insurance – that could be profitable and protect those victims of a disaster like the gas leak in Porter Ranch who only suffer economic losses that tort law will not respond. In so doing the Supreme Court protected tortfeasors from purely economic losses and suggested insurance as a way to protect those injured. www/underwritersinsider.com

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