The Underwriter's Insider May 2019 by The Underwriter's Insider

IN THIS ISSUE MAY 2019 VOL 15 ISSUE 5

What I Think About The President’s Idea To Regulate Search Results

Costco Captive Insurer Pays $3.6 Million In Back Taxes/Penalties To Washington State

Burden To Prove Warranty Fulfillment On Insured

Understanding Your 401(K) - Financial Analysis by Matt Treskovich

IMGING Becomes 1st Drone Platform With On-Site Roof Measurements, Adds AI Damage Detection

Man Arrested For Pretending He Was A Licensed Agent Selling Auto Inurance Through Auto Dealerships

NAIC Releases 2018 Market Share Data.

Study: Women Now Pay More Than Men For Car Insurance in 25 States

Special Report: Three In Four Americans Remain Afraid Of Fully Self-Driving Vehicles

Vehicles Thefts With Keys Left Inside On Upswing • AOC Again Subject Of FEC Complaint • Med Mal Mea Culpas Don’t Work

Florida Announces Arrest Of Miami Agent For $476,000 In Insurance Fraud

Gainsco Auto Insurance To Enhance Policy And Billing Operations With Software As Service

TikTok & AOL Are Reminded That Children’s Privacy Matters

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Personal Lines Insurers Assess Rate Increases In 1st Quarter 2019

Secret Codes On Tire Sidewalls - The Advisor Goes Sidewall

EBIX Launches Geniebix - AI For Insurance Exchanges

Tech Driving Down Claims Frequency In Workers’ Comp

Pentagon Halts F-35 Deliveries To Turkey Due To Purchase Of Russian AA System

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

Screaming Student Stalks Border Patrol Officers On Campus

Car Insurance Penalties For Distracted Driving Up 10,000% Since 2011

Israeli Unmanned Moon Landing Attempt Ends In Disaster

California Agent Charged With Felony Fraud, Burglary & Grand Theft

INSURANCE AND THE LAW PAGE SIX

SPECIAL REPORT! THREE IN FOUR AMERICANS REMAIN AFRAID OF FULLY SELF-DRIVING VEHICLES!

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

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MAY 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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MAY 2019

TECHNOLOGY

WHAT I THINK ABOUT PRESIDENT TRUMP’S IDEA TO REGULATE GOOGLE SEARCH RESULTS

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

or the almost 25 years that it’s been on the air, I’ve always done my best to steer The Kim Komando Show away from all things political.

Fake news, Russian trolls, politicians, terrorists, celebrities. Of course, the owners of Big Tech soon became uncomfortable with the level of the discourse. They had never seemed to be too uncomfortable with terrorists online raising money and recruiting.

After all, I talk about consumer technology. Religious, political and other polarizing issues were unnecessary. Besides, there have always been plenty of other talk show hosts who were busy with politics 24/7.

When today’s form of the internet came along, it was instantly called “The Great Equalizer.” Suddenly, everyone had a way to be heard. For a time, all of the technology was above the political fray.

For whatever the reason, all have displayed an abysmal track record of dealing with the objectionable online material. From live stream murders to riots, shootings and rapes, they never seem to know what to do.

The voices get louder

Naturally, everyone began Tweeting louder and louder, At first, social media seemed about everything and nothing, rather benign. Facebook was until the platforms he or she merely a place to say “hello,” post used, from Twitter to Facebook to a few photos and write about our YouTube to Instagram to Big Tech lives. Twitter, a place to share a in general, became politicized: random thought. MAY 2019

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Except to blame it on some algorithm. What happened next was predictable. With no real experience to guide them, Big Tech began to clumsily ban See Kim Komando Pg 40 www/underwritersinsider.com

CLAIMS & THE LAW

BURDEN TO PROVE FULFILLMENT WITH WARRANTY ON INSURED

Expert Analysis & Commentary by Barry Zalma, Esq., CFE Fulfillment of a Warranty Must Be Proved by Person Making Insurance Claim

decedent failed because of the failure of the plaintiff to prove that the decedent had fulfilled the warranty before crashing an airplane into the plaintiff’s property.

nsurance warranties are material promises made Join Barry Zalma’s Blog: by an insured that are http://www.zalma.com/blog essential to the effective use of an insurance policy. Failure to fulfill the warranty is a breach of a material condition precedent to FACTS the right to the benefits promised In September 2011, Walter by the policy of insurance. Johnson, deceased, was piloting In Rocky Wright, Individually and a Cessna P210 model aircraft as Trustee, Etc. v. The Estate Of over Tehachapi in Kern County Walter Johnson, Star Insurance when the plane crashed, killing Company, Real Party In Interest, Johnson and his passenger, and E068412, Court of Appeal of igniting a fire which spread to the State of California Fourth plaintiff and appellant, Rocky Appellate District Division Two Wright’s, real property. The fire (April 8, 2019) an attempt to destroyed personal properties, collect from the insurer of a fixtures and growing crops

(timber) on Wright’s real property. Wright sued Johnson’s estate, seeking to recover at least $1.75 million in damages to Wright’s real and personal properties from Johnson’s aircraft liability insurance carrier and real party in interest and respondent, Star Insurance Company (Star), pursuant to Probate Code section 550. The trial court entered summary judgment in favor of Star on Wright’s first amended complaint for negligence per se and trespass on the ground Wright could not prove an essential element of his insurance claim against Star, namely, that Johnson had complied with the “pilot warranty endorsement” or “PWE” of his aircraft liability insurance policy with Star. Wright appealed, claiming the

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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MAY 2019

Frank Schwichtenberg, Cessna P210N Pressurized Centurion (N60MK) 02, CC BY-SA 3.0

trial court erroneously placed the burden on Wright to show that Johnson had complied with the Annual MFG School Requirement, rather than placing the burden on Star to show that Johnson had not complied with the Annual MFG School Requirement and therefore, that Wright’s damages claims against Johnson were not covered by the policy.

the Cessna for a one-year period, including on September 4, 2011, the date the plane crashed in Tehachapi and its pilot Johnson and his passenger were killed. Johnson resided in and the flight originated from San Bernardino County.

ANALYSIS Proving that Johnson had completed the PWE’s Annual MFG School Requirement was an essential element of Wright’s insurance claim against Star. At trial Wright would have had the burden of proving that Johnson had completed the requirement. Star had the initial burden of showing Wright could not prove Johnson had completed the requirement. Star met this burden. Star’s proof shifted the burden to Wright to show Johnson had met the requirement or to raise a triable issue whether Johnson had met the requirement.

The Aircraft Insurance Policy (Issued by Star to Johnson) In November 2010, Star issued an “aircraft insurance policy” to The Walter Johnson Family Trust, as the named insured. The policy included liability coverage for MAY 2019

Cessna P210 (Stock image)

The policy’s pilot warranty endorsement, or PWE, included an “Annual MFG School Requirement” which required any pilot of the Cessna, including Johnson, to have “completed the aircraft manufacturer’s approved ground and flight training school, or its equivalent as approved by the Aviation Managers, in the insured make and model aircraft within the preceding 12 months of the intended flight.”

Wright’s Operative First Amended Complaint Probate Code section 550 allows a plaintiff to sue the estate of Table of Contents

a deceased person, without naming the estate’s personal representative, in order “to establish the decedent’s liability for which the decedent was protected by insurance.” Wright sued by a first amended complaint (the FAC) against Johnson’s estate, pursuant to Probate Code section 550, seeking to establish Johnson’s liability, and Star’s liability under its aircraft liability insurance policy with Johnson, for damages Wright incurred as a result of the September 4, 2011, plane crash. The FAC seeks $1.5 million in damages to Wright’s growing crops, $250,000 in damages for Wright’s lost profits and lost use of his property, and additional damages according to proof.

Star’s Motion for Summary Judgment/Adjudication and the Trial Court’s Ruling Star moved for summary judgment on the FAC, or summary adjudication of each cause of action, on two grounds: (1) Johnson had not complied with the requirements of the policy’s pilot warranty endorsement or PWE, and (2) coverage for the crash was excluded pursuant See ZALMA Page 41 www/underwritersinsider.com

UNDERSTANDING YOUR 401(K) PLAN

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

How do I contribute to a 401(k) plan?

tatistics from the US Department of Labor show that over two thirds of private sector employees are covered by a retirement plan at work. The most popular type of retirement plan for private sector employees is the 401(k) plan. These plans have been in use for over 30 years. Although 401(k) plans are widely available, many workers who have access to these plans don’t understand how they work.

Contributions to a 401(k) plan are withheld from your paycheck. Some plans have an automatic enrollment feature. Other plans require you to complete some paperwork to enroll and start making contributions. The contribution limit for 2019 is $19,000. If you are age 50 or older, you can make an additional $6,000 “catch-up” contribution.

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Many plans include an employer matching contribution. The formula and limits for matches vary Table of Contents

from plan to plan. Your employer should be able to provide you with a summary that explains the matching contributions. Some plans include a “profit sharing” feature that allows employers to make additional discretionary contributions to employee accounts.

Will contributing help me save on taxes? Wages are subject to several different kinds of taxes. Your paystub contains a breakdown of the different taxes that are withheld from your pay. MAY 2019

https://www.flickr.com/photos/usgao/7204252636/ U.S. Government Accountability Office

ANALYSIS - FINANCIAL

Contributions you elect to make to the plan are called “deferrals”. Social Security and Medicare tax, also called “payroll taxes”, are paid on amounts you defer into a 401(k) plan. You usually won’t pay income tax on contributions to a 401(k) plan, unless you elect to make a Roth contribution (which we will discuss later). If your employer provides matching contributions or profit-sharing contributions, those amounts are tax-free to you until you withdraw them from the plan.

What if I change jobs? Any amounts you contribute are 100% vested. Being vested means the money belongs to you, not your employer. When you leave your job, you can roll the 401(k) balance over to an individual retirement account. You may also

Some 401(k) plans have a feature called “Roth contributions”. A Roth 401(k) works similarly to a Roth IRA. Contributions are taxed when they are made. Withdrawals after age 59 1/2 are generally tax-free, including be able to leave your balance in the old employer’s plan, or to roll the investment returns in the Roth it over to a new employer’s 401(k). 401(k) plan. How is my 401(k) plan balance Where can I go for invested?

more help?

Most 401(k) plans offer a variety of mutual fund investment options. Investment options can vary widely from plan to plan, from low-cost index funds to high-cost proprietary funds. Some plans have very poor-quality investment options and expensive funds. If you aren’t sure what investment selections are right for you, an independent financial planner can help you analyze the options and make an informed decision.

What is a Roth 401(k)?

Although they have been available for many years, 401(k) plans can still be difficult to understand. The best 401(k) plan providers include financial planning and advice for employees as part of their services. Unfortunately, most 401(k) providers don’t offer this kind of advice. An independent, fiduciary financial planner can help you understand your 401(k) plan, maximize your benefits, and make sure your retirement plan works for you.

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.

MAY 2019

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NEWS

NEW YORK MAN ARRESTED FOR PRETENDING HE WAS A LICENSED AGENT SELLING AUTO INSURANCE THROUGH CAR DEALERSHIPS

INGS COUNTY – Acting Department of Financial Services Superintendent Linda A. Lacewell and Attorney General Letitia James announced the arrest and arraignment of Barrington Mayne (34, of Bronx County, NY) on a felony complaint for an alleged insurance fraud scheme. Mayne, who is not an insurance broker, allegedly used his position and contacts at various car dealerships throughout Brooklyn to dupe unsuspecting car buyers into believing that he was an insurance broker capable of obtaining car insurance.

with thousands of dollars in illgotten gains,” said Acting Financial Services Superintendent Linda A. Lacewell.” The Department of Financial Services is pleased to have worked with the office of Attorney General James in pursuit of our common goal of protecting New York consumers.”

“All New Yorkers pay a price for insurance fraud, which drives up premiums across the board,” said Attorney General Letitia James. “This alleged scheme led unsuspecting customers to believe that they had legitimate auto insurance, only to later find their Mayne allegedly stole thousands policies suddenly cancelled. My of dollars from victims who were office will prosecute anyone who tricked into paying him insurance breaks the law to take advantage premiums for purported insurance of consumers for personal profit.” policies. Mayne is charged with one count of Scheme to Defraud In New York State, insurance agents in the First Degree and two counts and brokers are licensed and of Grand Larceny in the Fourth regulated by the NYS Department of Financial Services (“DFS”). Degree. According to the felony complaint, “This defendant allegedly DFS records indicate that Mayne victimized unsuspecting was not, and never has been, consumers by fraudulently posing licensed in any capacity under any as a licensed insurance broker section of the New York Insurance in an effort to line his pockets Law. 10

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According to the felony complaint and statements made by the prosecutor at arraignment, Mayne allegedly demanded thousands of dollars from victims and then duped them into believing that they had purchased automobile insurance policies when, in fact, it was an elaborate scheme to steal their money. Specifically, Mayne allegedly took money from victims for purported insurance premium payments, but instead of paying insurance carriers, Mayne would obtain temporary insurance cards using fictitious banking information, and then allow the policies to cancel shortly thereafter for lack of payment. If convicted of the top counts charged, Mayne faces up to 1 1/3 years to 4 years in prison. Defendant Mayne was arraigned today in Kings County Criminal Court and was released on his own recognizance. He is next scheduled to appear in court on May 30, 2019. MAY 2019

Own Your Own Insurance Agency If You Think It Is Not Possible - Think Again!

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NEWS

NAIC RELEASES 2018 MARKET SHARE DATA Life/Fraternal and Property/Casualty Reports Now Available

ASHINGTON (March 4, 2019) — The National Association of Insurance Commissioners (NAIC) released data today on life/fraternal and property/ casualty insurers. The reports provide market share information and identify leading insurance writers in several key lines of business. The 2018 market share data include countrywide direct written premiums for the top 25 groups and companies as reported on the state page of the annual financial statement for insurers that report to the NAIC. The Life/Fraternal Market Share report contains cumulative market share data for: life insurance, annuity considerations, and an aggregate total of life insurance, annuity considerations, deposittype contract funds, other considerations and accident/ health insurance.

A few highlights from the report include: 12

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• With 95.50 percent of life and accident/health insurance companies reporting, direct premiums written for life insurance are $166,577,249,584. • Total reported premiums for life insurance, including annuity considerations, deposit-type contract funds and other considerations are $886,597,657,239 as of March 4. The Property/Casualty Market Share report contains cumulative market share data for the following lines of business: personal auto, commercial auto, workers’ compensation, medical professional liability, homeowners and other liability (excluding auto liability) insurance.

A few highlights from the report include: • With 96.55 percent of property/casualty insurance companies reporting to date, direct premiums written for all lines of business are $670,262,757,463. • The top 10 property/casualty companies reporting to date have a cumulative market share of 47.79 percent. Table of Contents

• Total private passenger auto insurance has the largest amount of direct premiums written reported as of March 4 at $244,455,312,825. The reports reflect data filed by insurers as of March 4 and will be refreshed daily through March 11 and then each Monday throughout March. The full 2018 Market Share Reports for Life/Fraternal Groups and Companies and the full 2018 Market Share Reports for Property/Casualty Groups and Companies will be available this summer and will contain more in-depth information. For questions about the reports or data, contact the NAIC Research & Actuarial Department.

About the NAIC The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. MAY 2019

NEWS

STUDY: WOMEN NOW PAY MORE THAN MEN FOR CAR INSURANCE IN 25 STATES THE ZEBRA’S REPORT EXPLORES PRICE DISCREPANCIES BY GENDER

USTIN, Texas, March 25, 2019 (Newswire.com) The Zebra, the nation’s leading insurance comparison site, today published a new report exploring the use of gender in pricing car insurance, a practice now prohibited in six states. In 2018, women paid more than men for car insurance in 25 states. This finding, based on a national analysis of 61 million car insurance rates, indicates a significant shift from just two years prior when men paid more for car insurance in 33 states.

Key findings include: •

•

The biggest difference in men and women’s rates were in Nevada where female drivers paid $121 more per year than male drivers. Men still paid more than women for car insurance in 21 states. The biggest difference for men occurred in Wyoming, where male drivers paid $47 more per year than female drivers. The disparity between what MAY 2019

women and men pay is greater The use of gender in car insurance in states where women pay pricing has come under new scrutiny after California joined Hawaii, more for car insurance. Massachusetts, Pennsylvania, North Carolina, and Montana in banning This shift the practice as of January 2019. California’s insurance regulator in costs is made the change after finding that surprising because, gender’s impact on rates varied widely from insurer to insurer and historically, men location to location.

have paid more than women for car insurance, and most studies point to men as the more dangerous drivers. So why are women paying more now?”

“This shift in costs is surprising because, historically, men have paid more than women for car insurance, and most studies point to men as the more dangerous drivers,” says Alyssa Connolly, Director of Market Insights at The Zebra. “So why are women paying more now? Do they exhibit especially risky driving behavior or file more claims? We’re keeping an eye on this issue as consumers, regulators, and insurance companies re-examine whether gender can or should be used in pricing insurance.” Table of Contents

For the full list of car insurance rates by gender and state, and for additional statistics and information about gender disparity in car insurance, please view the full report HERE.

About The Zebra The Zebra is the nation’s leading insurance comparison site. With its dynamic, real-time quote comparison tool, drivers can identify insurance companies with the coverage, service level, and pricing to suit their unique needs. The Zebra compares more than 200 car insurance companies and provides agent support and educational resources to ensure drivers are equipped to make the most informed decisions about their car insurance. The Zebra has sought to bring transparency and simplicity to insurance shopping since 2012 — it’s “insurance in black and white.” www/underwritersinsider.com

ANALYSIS - AAA

THREE IN FOUR AMERICANS REMAIN AFRAID OF FULLY SELF-DRIVING VEHICLES

RLANDO, Fla. (Mar. 14, 2019) – A year after a number of high-profile automated vehicle incidents, American attitudes toward fully self-driving cars have not rebounded. AAA’s annual automated vehicle survey found that 71 percent of people are afraid to ride in fully self-driving vehicles – indicating that overall sentiment has not yet returned to what it was prior to these incidents occurring (63 percent). AAA believes the key to helping consumers feel more comfortable with fully selfdriving vehicles will be bridging the gap between the perception of automated vehicle technology and the reality of how it actually works in today’s cars. “Automated vehicle technology is evolving on a very public stage and, as a result, it is affecting how 14

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consumers feel about it,” said Greg Brannon, AAA’s director of Automotive Engineering and Industry Relations. “Having the opportunity to interact with partially or fully automated vehicle technology will help remove some of the mystery for consumers and open the door for greater acceptance.”

consumer comfort level. On average, drivers who have one of these four ADAS technologies are about 68 percent m o r e likely to trust these features than drivers who don’t have them. Even more promising, AAA found that Americans are receptive to the idea of automated vehicle technology in more limited applications. About half (53 percent) are comfortable with low-speed, short distance forms of transportation like people movers found at airports or theme parks while 44 percent are comfortable with fully selfdriving vehicles for delivery of food or packages. However, once the passengers become more personal – in particular, transporting their loved ones – one in five remain comfortable.

Experience seems to play a key role in impacting how drivers feel about automated vehicle technology. Many cars on the road today are equipped with advanced driver assistance systems (ADAS), which are considered the building blocks for fully self-driving vehicles. AAA’s recent survey revealed that regular interaction with ADAS components like lane keeping assistance, adaptive cruise control, automatic emergency braking and self- “Despite fears still running parking significantly improves high, AAA’s study also shows Table of Contents

MAY 2019

that Americans are willing to take baby steps toward incorporating this type of technology into their lives,” continued Brannon. “Hands-on exposure in more controlled, low-risk environments coupled with stronger education will play a key role in easing fears about self-driving cars.”

however, this timeline may be overly optimistic given the number of vehicles already on the road today. Those who are skeptical that fully self-driving cars will arrive that soon, cite reasons such as lack of trust, not wanting to give up driving, the technology won’t be ready and that road conditions will not be good enough to Recently, AAA Northern support the technology. California, Nevada & Utah, in partnership with the city While experts agree that a of Las Vegas, Keolis North fully self-driving fleet is still America and the Regional decades away, it is likely Transportation Commission of that more highly automated Southern Nevada (RTC), piloted vehicles will be on the roads the first and largest self-driving in the coming years. The more shuttle for the public to operate drivers understand both the in live traffic, in an effort to give benefits and limitations of the more people the opportunity technology that is currently to gain real-world experience available, AAA believes the with automated vehicle more prepared and receptive transportation. they will be for the experience of riding in a fully automated The self-driving shuttle was vehicle when the time comes. the first in the country to be fully integrated with smart city To help educate consumers on infrastructure and operate on the effectiveness of emerging open, public roads. Participants vehicle technologies, AAA had the voluntary opportunity is committed to conducting to take a survey post-ride ongoing, unbiased testing regarding the impact of their of automated vehicle personal experience with the technologies as well as shuttle on their perception of researching how related self-driving vehicles. Of those emerging technologies can who responded, many reported help reduce or prevent crashes. their sentiment improved Previous research includes following the experience of ADAS technology naming, riding the shuttle. testing of driver support systems and the annual Currently, more than half of automated vehicle survey Americans (55 percent) think (2016, 2017, January 2018 and that by 2029, most cars will have April 2018). the ability to drive themselves,

Methodology A telephone omnibus survey was conducted January 10-13, 2019. A total of 1,008 interviews were completed among adults, 18 years of age or older. A dual-frame approach was used that combined landline and cell phone interviews to ensure that adults who only or primarily communicate via cell phones are included and properly represented. Survey responses are weighted by six variables (age, gender, geographic region, race/ethnicity, education, and landline vs. cell phone only) to ensure reliable and accurate representation of the total continental US population, 18 years of age and older. The margin of error for the study is 4% at the 95% confidence level. Smaller subgroups will have larger error margins.

About AAA AAA provides more than 59 million members with automotive, travel, insurance and financial services through its federation of 34 motor clubs and nearly 1,100 branch offices across North America. Since 1902, the not-for-profit, fully taxpaying AAA has been a leader and advocate for safe mobility. Drivers can request roadside assistance, identify nearby gas prices, locate discounts, book a hotel or map a route via the AAA Mobile app. To join, visit AAA.com.

NEWS

COSTCO CAPTIVE INSURER PAYS $3.6 MILLION IN BACK TAXES, PENALTIES Washington Settlement resolves years of unauthorized activity

LYMPIA, Wash. – NW Re Limited, of Phoenix, has settled (PDF, 3.6 MB) with Washington state Insurance Commissioner Mike Kreidler to pay $3.6 million in unpaid premium taxes, penalties, interest and a fine. NW Re’s sole insured and parent company is Costco Wholesale Corp., headquartered in Issaquah, Wash.

six months for captive insurers that fail to self-report, starting July 1, 2019. Captives that do not selfreport before June 30, 2020, will face the maximum fines and tax penalties.

State law requires that when risk is insured in Washington state, it be done through an admitted insurer or through an unauthorized insurer placed through a licensed surplus line broker. State law also requires Kreidler’s office has collected insurance companies to pay a 2 about $4.4 million in agreements percent tax based on their written with captive insurers. He reached premiums. The tax revenue is a settlement of $876,820 with sent to the state general fund to NW Re self-reported its Cypress, the captive insurer for pay for government operations. unauthorized activity in December Microsoft Corp., in August 2018. 2018 as part of Kriedler’s project to identify all captives that insure assets in Washington state. It provided deductible reimbursement for Costco’s liability and workers’ compensation from 2000 until 2019 without authorization. It paid $2.4 million in unpaid premium taxes and $1.2 million in fines, tax penalties and interest on March 8. Kreidler announced a project in December 2018 to identify all captives doing business in Washington state. Captives must self-report before June 30, 2020 to be eligible for reduced fines and premium tax penalties. Fines and penalties increase every

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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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MAY 2019

NEWS

IMGING BECOMES FIRST DRONE PLATFORM WITH ON-SITE ROOF MEASUREMENTS, ADDS AI DAMAGE DETECTION FOR COMMERCIAL ROOFS New IMGING app updates bring innovative possibilities for claims adjusting and roofing

LEASANT GROVE, Utah, March 27, 2019 (Newswire.com) - Loveland Innovations, maker of advanced data gathering and AI analysis solutions, added ground-breaking enhancements to its inspection platform, IMGING®. These enhancements include drone-based on-site measurements, AI and deep learning-powered damage detection for commercial roofs, and other powerful updates. Thanks to a unique realtime measurement process built into the IMGING app, field adjusters and roofing estimators can now view and share dynamic measurements on an Apple® iOS tablet while they’re still on-site with customers. Loveland can provide measurements shortly MAY 2019

after a drone flight is completed deep learning framework, IMGING for most residential roofs. Detect™, which automatically finds roof damage on drone inspection “When your decisions affect a images. IMGING can now find the homeowner’s property, details following types of damage on matter. Whether it’s determining commercial or residential roofs: the scope and type of actual damage or understanding the true · Blistering on flat roofs cost of replacement, IMGING lets · Evidence of ponding water users gather essential property · Cracking and alligatoring details aerial data providers simply · Exposed underlayment can’t see,” says Jim Loveland, · Rust CEO and Founder of Loveland · Soft metal damage Innovations. “Users can view ultrahigh-res imagery during a drone Other updates to IMGING include: flight, then shortly after can access - Inspect List – An inspection tool industry-leading measurements that ensures consistent groundand AI that automatically finds based imagery across every damage. Since it’s all available on- inspection. In addition to using IMGING for gathering photos during an automated flight, companies can now define a list of required ground photos and instructions for taking them. Field users can add the site, users can share everything images into categorical albums they see with customers and in the IMGING app by following prospects, which helps them build the instructions and snapping the trust or close more business.” photos. Area Measurements – Users The latest IMGING update also includes a beta release of enhancements to Loveland’s See Drone Platform Page 31 Table of Contents

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THE INSIDE TRACK - BREAKING NEWS Tokio Marine Acquires U.S. Cyber Specialist NAS Insurance Services

OUSTON, April 01, 2019 (GLOBE NEWSWIRE) -- Tokio Marine HCC today announced it has acquired NAS Insurance Services, LLC (NAS), a national leader in cyber and professional liability solutions. NAS is a Lloyd’s coverholder with a history of specialty product innovation, flexible policy development, open market and reinsurance solutions, and online broker portals providing 24/7 quoting and issuance. The business produced gross written premium of $176 million in 2018. NAS employs approximately 180 people and is headquartered in Encino, California with additional offices in New York, Chicago and Atlanta. The acquisition of NAS represents the 18

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continuance of a strong partnership between NAS and the Tokio Marine Group. Tokio Marine HCC and its sister company, Tokio Marine Kiln, have worked with NAS since 1975, and Tokio Marine Kiln had owned 49% of NAS since 2014. Tokio Marine HCC’s acquisition of 100% of NAS strengthens those ties with benefits to all three organizations, their customers and their employees.

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Vehicles Thefts With Keys Left Inside On The Upswing

roperty & Casualty360 is reporting that “A report from the National Insurance Crime Bureau (NICB) shows that during the 3-year period from 2016-2018, a total of 229,339 vehicles were stolen because drivers left their

MAY 2019

THE INSIDE TRACK - BREAKING NEWS keys in their vehicles — a reduced price - causing the MED MAL MEA CULPAS DON’T 56% increase since 2015.” company to shut down even WORK... before the election was over.

AOC Again Subject Of FEC Complaint

ep. Alexandria OcasioCortez, D-N.Y., is the target of yet another Federal Election Commission (FEC) complaint, this time it’s alleged she and her campaign manager operated a “subsidy scheme” that clearly broke campaign finance laws. This is ironic since AOC ran against this very issue of campaign finance corruption during her campaign. AOC and her campaign manager Saikat Chakrabarti are being accused of running a “shadow web” of PACs that enabled them to raise more cash than they would otherwise be allowed as well as forming a LLC to skirt federal expenditure requirements by offering services at a drastically MAY 2019

AMERICAN FAMILY INSURANCE TO ACQUIRE AMERIPRISE AUTO & HOME FOR $1 BILLION

subsidiary of Wisconsinbased American Family Insurance Mutual Holding Co . has announced it is acquiring Ameriprise Auto & Home, (AAH) a division of Ameriprise Financial in a deal worth $1.05 billion in cash. There will be no change in active policies. A large portion of AAH’s policies are sold through a partnership with Costco who has indicated that the relationship will continue. AAH’s currently largest state for premiums is California where 80% of the book is auto insurance. Insurer rating firm A.M. Best said its financial and credit ratings for American Family Insurance Group remain unchanged following the announcement. Table of Contents

he theory was simple: If a doctor apologized after a bad result, it would reduce the incidence of medical malpractice claims. Unfortunately, the reality turns out to be different according to a new study using proprietary from 9,000 providers. While several venues have passed laws shielding physicians from having apologies used in court proceedings, the study showed, for surgeons, the laws had no effect on either the number of claims or the number that ended up in court. But in states with apology laws, there was a dramatic effect for nonsurgeons where an apology was issued. Those claims were 46% more likely to end up in court! One theory is that the doctor’s apology alerted the patient to a condition that he/she may otherwise been unaware of or unaware that it was the result of the doctor’s error. The study suggests that doctors be trained in “how and where” to apologize.

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NEWS

FLORIDA ANNOUNCES ARREST OF MIAMI INSURANCE AGENT FOR $476,000 IN ALLEGED INSURANCE FRAUD, GRAND THEFT, AND IDENTITY THEFT

IAMI – Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Claudia Odila Romoleroux, a licensed insurance agent and owner of RND Insurance Corporation, located at 7951 Riviera Blvd. Ste 410, Marimar, FL 33023 after she allegedly obtained and transferred more than 300 homeowner insurance policies without homeowners’ knowledge or consent. In this scheme, Romoleroux allegedly pocketed nearly $476,000 from the policy premium differences. CFO Jimmy Patronis said, “Insurance fraud drives up rates across our state and identity theft can destroy your financial security. I will not stand by and allow Florida families to foot the bill of scam artists who game the system for their own personal gain. Last year, my detectives arrested more than 180 fraudsters in Miami-Dade County alone. We are working tirelessly to find these crooks and bring them

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to justice to protect your hard- fraud impacting homeowners earned money.” and leaving them vulnerable, Romoleroux pocketed nearly Miami-Dade State Attorney $476,000. Katherine Fernandez Rundle said, “It is unfortunate that scam artists Romoleroux was arrested on April like this choose to operate outside 4 and booked into the Turner the law and attempt to make a Guilford Knight Correctional Center living off stealing your money. I on charges of grand theft, uttering am thankful to CFO Patronis and forged instruments, insurance his fraud investigators for catching fraud, identity theft and organized these criminals, so my dedicated scheme to defraud. If convicted, prosecutors can bring them to Romoleroux faces up to 25 years in court to face justice.” prison. Her insurance license will be immediately suspended upon In total, Romoleroux allegedly, the filing of formal charges. fraudulently obtained more than $877,000 in premiums for Editor’s Note: From the RND 307 homeowners policies. She Insurance Agency website: “As an allegedly supplied mortgage independent insurance agent RND companies with fraudulent INSURANCE CORP takes the time documents and requested the to get to know you which helps us homeowners’ escrow money be customize coverage specific to your sent to her business account to pay needs. The last thing you want to for new policies. Unbeknownst to think about is your homeowners these homeowners, Romoleroux insurance until you need it. We make allegedly used a portion of that money to pay for cheaper sure you have the right coverage so policies with inadequate that in the event of a claim you are coverage. Through this alleged covered.”

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MAY 2019

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NEWS - AUTOMOTIVE

GAINSCO AUTO INSURANCE TO ENHANCE POLICY AND BILLING OPERATIONS WITH SOFTWARE AS A SERVICE Non-standard auto insurer chooses Duck Creek OnDemand to address scalability and maintenance concerns related to on-premises software

growing at the rate its business trajectory demands.

For insurers, with the long list of various technology initiatives and investments on their plates, having ongoing maintenance and upgrades off their plates allows them to focus on strategic initiatives the true competitive differentiation.”

oston, March 28, 2019 (GLOBE NEWSWIRE) -Duck Creek Technologies announced today that GAINSCO Auto Insurance®, a provider of non-standard auto insurance products specializing in minimum-limits personal auto insurance, has elected to replace its on-premises policy and billing systems with Duck Creek Policy “Our industry has made significant strides in embracing SaaS solutions and Duck Creek Billing. for policy, billing, and claims The insurer will be implementing systems, and it is exciting to see the the software via Duck Creek Duck Creek OnDemand solution OnDemand, the provider’s gain traction and momentum with SaaS solution for the P&C great success,”said Deb Smallwood, insurance industry. GAINSCO founder and CEO of Strategy Meets cited scalability and efficiency Action. “And for insurers, with the as key factors in the decision to long list of various technology replace its existing legacy policy initiatives and investments on and billing systems, which were their plates, having ongoing preventing the carrier from maintenance and upgrades off

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their plates allows them to focus on strategic initiatives - the true competitive differentiation.” “GAINSCO’s commitment to digital transformation ultimately led us to Duck Creek for our Policy/Rating/ Billing platform in order to meet the growing demands and needs of an increasingly savvy customer base,” said Phil West, SVP & CIO of GAINSCO. “Our focus is on best of breed solutions for our core applications, solutions that give us a strong foundation for future initiatives without the need for complex IT projects. The Duck Creek Anywhere API gives us the ability to more easily integrate with other marketleading solutions or to leverage our own custom solutions. We expect the Duck Creek SaaS offering to give both operational and cost efficiencies, allowing us to quickly get to market with innovative products and features.” “More and more carriers recognize the value of moving core systems into the cloud,” said Karlyn Carnahan, head of property casualty business for Celent for the Americas. “In a fast-paced world, utilization of a cloud platform MAY 2019

is becoming the foundation for deriving speed to value.” The billing experience in particular has become a critical opportunity for carriers to offer differentiated, personalized customer service something that consumers in all industries have come to expect. As a highly customer-focused insurer, GAINSCO plans to further enhance its customer experiences with billing, expand to new states, and introduce and update its innovative products with industryleading speed. The carrier also licensed Data Hub, a component of Duck Creek Insights, to get more actionable data from its policy and billing systems as part of its overall MAY 2019

strategy to make more data-driven able to focus on innovation rather decisions. than burdensome IT work.” About GAINSCO “We are very happy that GAINSCO has chosen Duck Creek GAINSCO, Inc. is a Dallas-based Policy, Billing, Insights, and our property and casualty insurance OnDemand solution to support holding company established in its business,” said Jeff Wargin, VP 1978. Its insurance operations of Product Management at Duck are conducted through MGA Creek Technologies. “GAINSCO’s Insurance Company Inc. under its growth has been driven by a strong insurance brand, GAINSCO Auto focus on customer centricity, Insurance®. The firm concentrates so this was a great choice for its efforts on the non-standard them as they look to continued personal automobile market, success in the future. And Duck specializing in minimum-limits Creek OnDemand provides a personal auto insurance. GAINSCO complete solution that takes the Auto Insurance markets its responsibilities of maintenance, products through more than 8,000 hosting, and upgrades off of independent insurance agents carriers’ hands, so GAINSCO will be across ten states. Table of Contents

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NEWS - CYBER PRIVACY

TIKTOK AND AOL ARE REMINDED THAT CHILDREN’S PRIVACY MATTERS by Guest Columnist Dan Kiehl

child’s personal information.

Recent Enforcement Cases

Until a couple of years ago, enforcement of COPPA was relatively rare, and the penalties were not particularly steep for violators of children’s privacy. However, it appears regulators have renewed their focus on enforcing and protecting children’s privacy. The latest two enforcements of COPPA (discussed below), which exceeded $10 million, indicate that federal and state regulators plan to investigate child privacy complaints and enforce COPPA aggressively.

which AOL knew were directed towards children. Through these ads, AOL collected children’s personal information without parental consent. AOL knew that many of these websites were subject to the COPPA, as AOL was informed by both the websites and through its own internal review. Despite these warnings, AOL continued its practice of collecting children’s information without parental consent. For these actions, the New York Attorney General imposed a $4.95 million fine which at the time was the largest COPPA fine in US history.

In December 2018, AOL was fined nearly $5 million fine for knowingly violating COPPA. Between October 2015 and February 2017, AOL conducted billions of auctions for ad space on hundreds of websites

In February 2019, TikTok, an app developer that allowed users to share videos of the user lip-syncing to music and whose accounts are public by default, suffered a similar fate to that of AOL. TikTok required

ith the recent passage of the California Consumer Privacy Act and the GDPR in Europe, it’s easy to forget that regulators have renewed their focus and enforcement of children’s privacy through the Children’s Online Privacy Protect Act (“COPPA”). Enacted over twenty years ago, COPPA requires, among other things, for operators of commercial websites directed towards children under 13 years old to provide notice to parents and obtain such parents’ consent before collecting personal information from the children and to provide parents the ability to stop further use or collection of a

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bout the Author: Dan Kiehl obtained his Juris Doctor degree from Valparaiso Law School in 2012, and practiced law for three years before transitioning to a compliance-based consulting role allowing him to help a wide variety of healthcare organizations remain compliant with multiple healthcare laws and standards.In his current role as a CompliancePoint Policy Analyst, he consults with a wide variety of organizations to ensure their privacy and information security policies are compliant with the various regulatory and third-party frameworks (e.g., GDPR, HIPAA, HITRUST, PIC, SOC 2, NIST and ISO). He is also a veteran of the Iraq war.

children to input their age to create a profile with TikTok, and the app also shared the children’s location, even going so far as to allow others to see which children were in a 50-mile radius of that user. Despite receiving thousands of complaints and knowing that they were collecting children’s personal information without parental consent, TikTok failed to delete the children’s personal information from their servers. Because TikTok knew it was violating COPPA and did not delete the children’s information after receiving so many complaints, the FTC imposed its record-setting $5.7 million fine.

Helpful Tips to Comply With COPPA At the outset, it should be noted that COPPA has quite a few requirements; however, when looking at the recent enforcement cases, it’s apparent that companies are failing at the most basic levels of adhering to COPPA. First, its important to determine whether your website online service is subject to COPPA. FTC guidance on this matter states that if any of the following scenarios apply, you are subject to COPPA : MAY 2019

1. Your website or online service is directed to children under 13 and you collect personal information from them; 2. Your website or online service is directed to children under 13 and you let other collect personal information from them; 3. Your website or online service is directed to a general audience, but you have actual knowledge that you collect personal information from children under 13; or 4. Your company runs an ad network or plug-in, for example, and you have actual knowledge that you collect personal information from users of a website or service directed to children under 13.

content; (2) that you want to collect personal information from their child; (3) that their consent is required for the collection, use and disclosure of the information; (4) the specific personal information you want to collect and how it might be disclosed to others; (5) a link to your online privacy policy; (6) how the parent can give their consent; and (7) that if the parent doesn’t consent within a reasonable time, you’ll delete the parent’s online contact information from your records.

After notifying the children’s parents of your intent to collect the child’s personal information, you’ll need to obtain parental consent. The FTC provides several options on how this can be done, but some of the most common are having the parent sign a consent Once you determine that your form and send it back to you by fax, website or online service is subject mail or electronic scan; having the to COPPA, it’s important that parent use a credit card, debit card, you notify and obtain the child’s or other online payment system parental consent before collecting that provides notification of each the child’s personal information. separate transaction to the account The notice to the parents must holder; or you can have the parent state: (1) that you collected the parent’s online contact information See Children’s Privacy Pg 42 for the purpose of getting their Table of Contents

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NEWS

MARKET SCOUT: PERSONAL LINES INSURERS ASSESS RATE INCREASES IN FIRST QUARTER 2019

California and Florida Accounts Seeing Aggressive Price Increases

n the first quarter 2019, the composite rate for personal lines coverage was up 2 percent. “The personal lines market is so large that the composite rate can sometimes be misunderstood,” noted Richard Kerr, CEO of MarketScout. “There is an incredible volume of business in benign areas which helps stabilize rate increases in catastrophe exposed areas such as Florida and California.” Kerr also noted, “Some of the insurers of larger homes in Florida are increasing rates significantly or choosing to restrict their writings. In California, it’s a

A SUMMARY OF THE FIRST QUARTER 2019 PERSONAL LINES

mess for wildfire and mudslide exposed properties. California homeowners are experiencing rate increases of 20 percent for homes in brush areas and for the brush exposed homes without adequate protection, rate increases are up over 40 percent.” Even

after

including

significate rate increases in catastrophe prone areas the composite increase for all US homeowners was plus 2 percent. Auto was up 2.5 percent and personal articles was up only 1 percent.

the

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.

About MarketScout 26

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MarketScout is a national MGA and wholesale broker specializing in assisting agents in placing high net worth personal lines business. The firm is a Lloyd’s Coverholder and MGA for U.S. insurers. MarketScout owns and operates the MarketScout Exchange as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is founder of the Council for Insuring Private Clients (CIPC) and administers the Certified Personal Risk Manager (CPRM) designation in partnership with The National Alliance for Insurance Education and Research. The firm founded the Entrepreneurial Insurance Alliance (EIA) in 2007 and presents the Entrepreneurial Insurance Symposium (EIS) every September. In 2017, MarketScout founded MarketScout InsurTech (MIT) venture fund. In January 2018, MarketScout launched its Incubator to accelerate start-up MGAs and assume operational functions for existing MGAs and insurers. MarketScout has offices in Arizona, Arkansas, California, Florida, Georgia, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at MarketScout.com. California license #0D60423. MAY 2019

FIRST QUARTER 2019 COMMERCIAL INSURANCE RATES UP 2% AUTO CONTINUES TO LEAD RATE INCREASES

he results from in person A summary of the first quarter surveys and mathematical 2019 rates by coverage and computations have been industry class: compiled for the first quarter of 2019. The composite rate increase for commercial lines is up 2 percent as compared to the same time period one year ago. Richard Kerr, CEO of MarketScout, outlined the first quarter rating environment by noting, “Transportation risks were up 4 percent. Auto continues to be assessed the most aggressive rate increase by line of coverage at plus 7 percent. Also, energy exposures are now starting to see more rate increases. Otherwise, the commercial market is stable.” The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States. Table of Contents

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“The Final Authority on Everything!” WARNING!

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

Secret Codes On Tire Sidewalls

ast month you answered a question about tire pressure where a person worried about carrying around excess weight if she put 32 pounds of air in her tires. Pretty funny. But my question is about the codes on the sidewalls. I can read the numbers but I don’t know what they mean. Does the Advisor? H.H.

ADVISOR

class of tire, in this case P for Passenger. Tires also come in LT (Light Truck) and T (Temp Spare).

There follows the tire construction type, in this case R for Radial. The vast majority of P type tires are now radial construction. The next three digits (195) The letter D would designate represent widest part of the a bias ply tire made from tire width in millimeters. plies that run in criss-cross layers diagonal to the tire After the slash, the next digits direction. represent the aspect ratio of the tire, i.e., the tire’s sidewall The next two digits designate height as a percent of the the rim width in inches for tire’s width. In the case of the which the tire will fit. In the example, 65 means the height case of the example, the tire of the tire is 65% of the width will fit a 15” rim. of the tire. The load index and the

Was Stephen Hawking a smart man? Can LeBron James shoot from center court? Is a bear Catholic? Take a common tire size, for example: P195/65 R15 91H The first letter, P, designates the type or 28

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MAY 2019

CC By 3.0 Author: Flanker

speed rating are shown as 91H. “91” means the tire could support 1,356 lbs at maximum inflation and the “H” speed rating indicates a maximum speed of 135mph. Good to know I can cruise in my KIA Forte at 135mph...

300 rating and half as long as one with a 1200 rating.

UTQG Treadware Rating, a Traction Rating & a Temperature Rating. On the example tire, the Treadware Rating was 600. The number has meaning only when compared to other tires. But wait - there’s more! E.G., a 600 rating should last Most tires also show a twice as long as a tire with a BTW, tires are available with speed ratings all the way up to 186mph (look for a “Y”) for race cars, sports cars and exotic ultra-cars.

MAY 2019

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The Traction Rating indicates the tire’s ability to stop the car on wet pavement, but not it’s cornering ability. Ratings come in AA,A,B or C with AA having the best traction. Finally, H.H., there is the tire’s Temperature Rating which grades a properly inflated tire’s ability to disperse heat. The grades range from A-C with A being the best. www/underwritersinsider.com

NEWS

EBIX LAUNCHES GENIEBIX – A NEW GENERATION ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING SOLUTION TO POWER ITS INSURANCE EXCHANGES AND ENTERPRISE PLATFORMS

OHNS CREEK, Ga., March 29, 2019 (GLOBE NEWSWIRE) -- Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries today announced the launch of GeniEbix – a technology initiative that combines the application of Artificial Intelligence (AI), Natural Language Processing (NLP), Robotics Process Automation (RPA), Predictive Analytics and Machine Learning (ML) to all of Ebix’s Insurance products and solutions. GeniEbix is a state-of-the-art technology solution that aims to enhance the user experience to a different level, while bringing automation to the entire value chain of insurance processing, including CRM, Quoting, Order Entry, Case Management, Underwriting and Policy Servicing. The Company announced that it has already started collaborating with its customers on this initiative,

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in many areas including but not limited to the following:

innovation behind GeniEbix to our customers worldwide.”

•

Ash Sawhney, President, Insurance Solutions North America, said “GeniEbix will be a major focus for Ebix in the future. It will raise the bar in the industry and set new standards in terms of how technology solutions should be evaluated in the insurance space. We will continue to collaborate with our user community to expand the use of GeniEbix. In addition to powering our Exchanges and Enterprise solutions, our goal is to establish a practice within our consulting organization to help our clients apply GeniEbix to other areas within their organizations. We are excited about where we are going with this.”

•

Applying Predictive Analytics and Machine Learning for intelligent evaluation and risk assessment of leads data Utilizing GeniEbix chatbots for handling pre-sales functions with direct consumers and Agent CRM functions Enhancing underwriting and new business case management functions with Natural Language Processing support.

Gagan Sethi, Chief Technology Officer, Ebix Inc. said “Ebix has embarked on a transformational journey to industrialize process automation, predictive analytics, machine learning algorithms, and artificial intelligence capabilities across its exchanges and enterprise platforms. We see applicability of GeniEbix across all our business units internationally, including Life and Annuities, Health, P&C, Employee Benefits and Wellness. We are excited to bring the technology, strategy and Table of Contents

Graham Prior, Executive Vice President – International Business & Product Management said, “We will be working towards making GeniEbix solutions available to our insurance clients across the world. GeniEbix optimally combines advanced technology with functional solutions, to MAY 2019

revolutionize the user experience Continued From Page 17 and decision-making power of business applications. We believe that GeniEbix based solutions will enable our customers to strike a balance between efficient use of human workforce and advanced process automations.”

DRONE BASED SITE MEASUREMENTS

About Ebix, Inc. With 50+ offices across 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide OnDemand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. In the Insurance sector, Ebix’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service (“SaaS”) enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administration and risk compliance services, around the world. With a “Phygital” strategy that combines 320,000 physical distribution outlets in many Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets.

MAY 2019

can now measure any area within an inch of accuracy on an IMGING 3D model. For instance, a user can measure a wall and subtract windows from the measurement total for a damage estimate on siding. IMGING is available as a complete software and hardware solution (The IMGING Inspection Kit) or as an app that runs on an Apple® iPad® or iPhone®. IMGING is compatible with the DJI® Phantom 4 Pro and the Mavic 2 Pro, which users can source themselves, or purchase as part of the IMGING Inspection Kit.

Rent This Space! Want Your 1/3 Page Message To Hit Over 120,000 Industry E-Mails Per Month For As Little As $129.00?

About Loveland Innovations Loveland Innovations is a team of makers, mavericks, and maniacs building leaner, meaner ways to turn property data into clarity and action. No corporate nonsense, just get-it-done attitude. They make it easy for anyone to digitize a property or structure, then explore, measure, and analyze it with artificial intelligence. www. lovelandinnovations.com Table of Contents

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NOTABLE QUOTABLES IN THE NEWS - WITH COMMENTARY

SAY WHAT? Technology is driving down claims frequency in workers’ comp

e think it’s due to insurance companies doing better on the claims of their policyholders by using technology to drive down the number and severity of those claims. Just in the last 12 months, for example, we’re seeing that insureds are using mobile apps now to track their claims activity, which we hadn’t seen previously. They’re also reducing claims by using wearables, so now you’ve got employers that are able to track exactly what their employees are doing throughout the day and how they’re doing it to better identify loss trends.” Jim Mitchell, vice president of workers’ compensation, and accident and health at All Risks. in a quote to Alicja Grzadkowska of Insurance Business Mag.

e very much regret the current situation facing our F-35 partnership with Turkey, and the DOD is taking prudent steps to protect the shared investments made in our critical technology. Our important dialogue

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Pentagon spokesman Charles Summers in an April 1 statement after Muslim-NATOmember-country-Turkey initiated the acquisition of the Russian surface to air S-400 missile system. The dispute is not over the economic loss of the sale of a US missile system but rather the access that Russian S-400 support crews would have to tracking and accumulating data on our F-35s - “one of our most advanced technological capabilities.”

Middle Eastern Women’s Coalition Rallying For Ilhan Omar’s Resignation

Pentagon Halts F-35 Deliveries To Turkey

on this matter will continue. However, until they forgo delivery of the S-400, the United States has suspended deliveries and activities associated with the stand-up of Turkey’s F-35 operational capability. Should Turkey procure the S-400, their continued participation in the F-35 program is at risk.”

e came to this country because of the freedoms and rights offered to all citizens regardless of gender under the U.S. Constitution. We are proud to be American citizens. But we recognize that millions of women in the Middle East don’t enjoy these freedoms, and are forced to live under fanatical and repressive religious regimes,

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denied basic human rights, freedoms and dignity. Our mission is to give voice to these oppressed women and promote a greater awareness of their suffering. We will not rest until these women are granted full equal rights to those of Middle Eastern men, and treated with honor, respect and dignity.”

Two Border Patrol agents had been invited to Tucson University for a campus career day held by the school’s Criminal Justice Association. They were repeatedly taunted by a student named Denise Mureno-Melchor yelling “Murder Patrol” and profanities in Spanish and likening them to the KKK. Nothing was done by the university until pressed by Judicial Watch asking UA’s Office of the Dean of Students to review potential violations of the Student Code of Conduct, which Judicial Watch outlined in a March 25, 2019 complaint to UA President Robert C. Robbins. Under pressure, Robbins finally issued the statement reprinted above.

From a Middle Eastern Women’s Coalition press release in early April rallying against Muslim Democrat Congresswoman Ilhan Omar who reportedly is a follower of Sharia Law and has publically expressed anti-Semitic FITCH FORECAST remarks on a number of occasions. Far-left tlantic and gulf coast hurricanes Omar, who was recently remain a prominent source of divorced from her underwriting volatility for many brother, (yes you read that correctly), has been the subject of much criticism and debate due to property/casualty insurers. In the last two years her virulent, anti-Israel, anti-Semitic statements. alone we’ve seen these effects from Hurricanes Harvey, Irma and Maria in 2017 and Florence and Michael in 2018. While they caused substantial Student Stalk Border Patrol Agents losses, insurers’ response to these events On Campus Screaming: “Murder Patrol” largely demonstrated their financial resiliency and capital strength, and the role of the he incident between the reinsurance markets in absorbing a significant protesting students and the portion of losses. Still, history and analysis from Criminal Justice club members was catastrophe modeling firms reveal the potential a dramatic departure from our expectations for significantly larger hurricane events and of respectful behavior and support for free speech on this campus. University police insured losses, so we are always wary of the determined today they will be charging two potential for larger events. The reality is that the of the students with interference with the number of hurricane landfalls has more impact peaceful conduct of an educational institution, than the number of total hurricanes since that’s a misdemeanor. The student club and the when there are insured property losses, so the federal agents invited by the students should best we can hope for are no substantial landfalls have been able to hold their meeting without in 2019.” disruption. Student protest is protected by our support for free speech, but disruption is not.” Fitch Ratings’ Managing Director Jim Auden.

MAY 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.

   

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

CAR INSURANCE PENALTIES FOR DISTRACTED DRIVING UP 10,000% SINCE 2011, THE ZEBRA REPORTS Report Published This Distracted Driving Awareness Month Sheds Light on State-Specific Penalties, Comparisons to DUI Violations and More

USTIN, Texas, April 2, 2019 (Newswire.com) - The Zebra, the nation’s leading insurance comparison site, today released its 2019 Distracted Driving Report, which details a massive shift in how insurance companies are raising rates for drivers who are caught using their phones behind the wheel. In just eight years, insurers have increased the penalty for distracted driving nearly 10,000%, and it’s costing drivers hundreds or even thousands of dollars.

Car Insurance Penalty for Distracted Driving up 10,000% In 2011, a ticket for distracted driving (texting or using a cell phone while driving) would have raised a driver’s car insurance rates by 0.2%, costing MAY 2019

them less than $3 per year in added premium.Today, the same violation will raise car insurance rates an average of 19.7%, or about $290 – a penalty increase of 9,750%.

States with the highest insurance penalties (percent rate increase) for a distracted driving violation:

1. Vermont – 56% (+$600) 2. Montana – 33% (+$464) “Now that distracted driving 3. Oregon – 32% (+$440) has unfortunately become commonplace, most drivers know States with the lowest insurance they could get hit with a ticket penalties for a distracted driving or court costs if they are caught violation: texting or using their phone while driving. What many people don’t 1. New York – 5% (+$93) know, however, is their insurance 2. Wyoming – 6%(+$87) company may also raise their rates 3. Hawaii – 9% (+$94) hundreds of dollars or more,” says Alyssa Connolly, Director of Market Distracted Driving Insights, The Zebra. “If anyone Penalties Significantly needs another deterrent, distracted Less Than DUI penalties driving is not only dangerous, but incredibly expensive, too.” Insurance companies penalize drivers charged with a DUI with a Distracted Driving Penalties rate hike of $1,086 (74%) on average. Inconsistent State to State Other violations that receive harsh penalties from insurance companies As of late 2018, insurers in all include driving too slowly (+21% states penalized distracted driving, or $305), making an illegal turn whereas only 10 did in 2011. (+23% or $332), or passing a school Across the country, penalties for bus (+27% or $398) – all still higher distracted driving range from $87 penalties than distracted driving to $762 (5.5% to 56% of total annual (+20% or $290). premium), and in some cities, the penalty nears $1,700. See Distracted Driving Pg 43 Table of Contents

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TECHNOLOGY Continued From Page 5

KIM KOMANDO certain voices and viewpoints. Many months after the Russians (if there were any Russians), Facebook, Twitter, Google, Instagram, YouTube and all the others seemed to wake with a jerk and started banning people and ideas. But whose ideas? Are they suppressing primarily conservative viewpoints, while allowing those on the left to say anything? Perhaps. Perhaps not. One media report claims that Google’s algorithm is “prioritizing left-leaning news outlets” in searches for “Trump.” It said 96% of the searches result answers were from more liberal sites, with no conservative sites showing up on the first page of results. However, against that solid wall, President Trump has ignited another firestorm with a Tweet saying that Google searches and the results that Google supplies to those searches should be “regulated because of fake news.”

What about the First Amendment? Just a few days ago, I was right here, explaining how, if Big Tech wishes to silence those with 40

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whom they disagree, liberal or We need a balance. conservative, there was no First Amendment violation. To get a balance of news, the reader simply needed to get their The First Amendment prohibits news from a number of different only government -- and no sources. one else -- from restricting free speech. Newspapers, magazines, Which brings us back to today. Facebook, Twitter, Google, radio If you are getting all your news and TV networks, talk shows, through Facebook, and nowhere Cable and Satellite news, are all else, the chances are high that free to disallow and dissociate your view of the world is not from anyone or anything they complete. chose, for any reason whatsoever. A hard reality is that you must And the United States work to stay informed. You would government has nothing to say think that the internet would about it. Read it for yourself, make all that easier. here’s the Constitution’s First Amendment (everyone loves to Just the opposite: Even with all discuss it, but few read it): the blogs, tweets and postings, people are closing themselves “Congress shall make no law off to other viewpoints. The more respecting an establishment of noise, the less they hear. religion, or prohibiting the free exercise thereof; or abridging So now, President Trump’s the freedom of speech, or of the administration says that it’s press; or the right of the people “looking at” placing some peaceably to assemble, and to controls over what kind of search petition the government for a results Google returns, all in the redress of grievances.” name of “fake news.”

How things have changed

This is not the American way.

Long before the internet, newspapers reigned supreme. Throughout their entire history, American newspapers have been labeled as being “Pro Democrat,” “Pro Republican,” “Pro Labor, Pro Farmer, Pro Business,” you name it.

Don’t get me wrong. If Facebook or Google or Amazon breaks the law, the company should be prosecuted. In some cases, we’ve forced companies to be broken up, fearing that the company carried too much power and that See Komando Page 46

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INSURANCE & THE LAW Continued From Page 7

ZALMA

Requirements: Annual Ground & Flight Training.” In response to Star’s motion, Wright offered no evidence that Johnson, who was piloting the Cessna on September 4, 2011, had completed the PWE requirements.

to “Exclusion 1” of the policy, which excludes coverage when Star showed Wright admitted the flight is “for any unlawful in written discovery responses that Wright had no evidence that purpose.” Johnson or his passenger had complied with the PWE.

Insurance warranties are ancient forms that require, for a policy to provide the benefits promised, that the insured fulfill a material promise by the insured, that is the basis of the risk taken by the insurer. Failure to prove strict compliance with the pilot warranty deprives the insured – and in this case the person suing his estate – of coverage.”

Star presented undisputed evidence that, on October 13, 2010. On November 9, 2010, Johnson accepted Star’s terms by requesting that the policy be issued on November 10. On November 30, Falcon submitted an insurance application, signed by Johnson, which included an acknowledgement that the policy was subject to “Minimum Pilot Requirements” and also contained “Special Pilot MAY 2019

The court of appeal concluded that the trial court properly placed the burden on Wright to prove Johnson had completed the Annual MFG School Requirement, Wright did not do so, and summary judgment was properly entered

in favor of Star. Placing the burden of proof on the insured to “establish coverage” under the insurance policy, or to show that the terms of an insurance “coverage provision” have been met, conforms with an insured’s general duty to establish coverage where it would otherwise not exist. Wright had the burden of proof at trial of showing that Johnson had

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complied with the PWE’s Annual MFG School Requirement. Johnson’s failure to comply with the PWE’s Annual MFG School Requirement was not an affirmative defense to coverage or an exclusion to coverage. Star did not have the initial burden of showing, in moving for summary judgment, that Johnson did not comply with the PWE’s Annual MFG School Requirement. Rather, the PWE’s Annual MFG School Requirement was a warranty provision in Johnson’s insurance contract with Star, and a condition precedent to Star’s See ZALMA Page 53

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ANALYSIS

TIKTOK AND AOL ARE REMINDED THAT CHILDREN’S PRIVACY MATTERS call a toll-free number staffed by trained personnel. Finally, its important to note that after examining the TikTok and AOL cases, the FTC came down particularly hard on these companies because both AOL and TikTok had direct knowledge that they were collecting children’s information without parental consent and still chose to not completely remediate the problem. This is a problem that plagues many organizations when they learn that they may be violating the law – they either ignore the warnings or they enact half-measures that do not completely remediate the problem. If your company receives information that it may be violating a regulation, its important to take heed of these warnings and to take action that fully addresses the problem. While it will cost time and money to fix these problems, it beats the alternative of having to pay millions of dollars in fines as well as having to experience the reputational damage that came about because of the knowing violations. 42

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ISRAELI UNMANNED MOON LANDING ATTEMPT ENDS IN DISASTER The robotic Beresheet spacecraft, aiming to become the first privately funded mission to land softly on the moon, has crashed on the lunar surface.

have not managed to land fter a 240,000 mile successfully. It’s a tremendous successful trip to achievement up ‘til now” the moon, the Israeli unmanned moon lander “If at first you don’t succeed, you Beresheet lost contact with try again,” said Prime Minister mission control at an altitude of Benjamin Netanyahu. The prime only 489 feet, crashing into the minister watched Beresheet’s failed landing attempt from bleak, gray lunar surface. SpaceIL’s control center in Yehud, The GM of IAI, Opher Doron, said Israel. during a live broadcast from the control center, “We had a failure in The soft-landing attempt was the spacecraft; we unfortunately born out of a contest by Google Staff Reporter

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MAY 2019

TaBaZzz, Beresheet model on Habima Square 20190222 05, CC BY-SA 4.0

Continued From Page 25

NEWS Lunar X Prize which offered a $20 Continued From Page 39 million award to the first privately funded team that could land on the lunar surface intact and travel a minimum of 1,650 feet on the moon’s surface while sending high-res images back to Earth. There was a 2nd place prize of $5 million to a runner-up as well as another $5 million available for “special accomplishments.” The SpaceIL team was awarded $1 million in spite of their failure to land softly - against an estimated Given the amount of data pointing project cost of $100 million. to the continued risk distracted driving is likely to pose, drivers may While the contest eventually likely expect insurance penalties for ended without a winner, distracted driving to continue – if a consortium of partner not increase – in the coming years. companies continued to work on For comprehensive information the project, including SpaceIL, IAI about how distracted driving and and Florida-based Moon Express other violations influence individual and the lander was launched on car insurance rates, see The Zebra’s February 21st on top of a SpaceX 2019 Distracted Driving Report. Falcon 9 rocket.

INSURANCE PENALTIES FOR DISTRACTED DRIVING UP 10,000%

In order to reach lunar orbit, the spaceship was first launched into an Earth orbit that was made more and more elliptical by strategic rocket over a period of six weeks. During that time, Beresheet traveled about 4 million miles - a long way to go to travel 240,000 miles. Morris Kahn, one of the Beresheet mission founders, said shortly after the spacecraft’s failed landing attempt, “Well, we didn’t make it but we definitely tried. I think we can be proud,” MAY 2019

About The Zebra The Zebra claims to be the nation’s leading insurance search comparison site. With its dynamic, real-time quote comparison tool, drivers can identify insurance companies with the coverage, service level, and pricing to suit their unique needs. The Zebra compares more than 200 car insurance companies and provides licensed agent support and educational resources to ensure drivers are equipped to make the most informed decisions about their policies. It’s “insurance in black and white.” Table of Contents

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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. MAY 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

MAY 2019

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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 40

KIM KOMANDO

its unbridled use of that power could damage the national good. But this is something else. President Trump, nor any government entity, has no business talking about controlling Google or Facebook content or the content any of the social media platforms. This is an issue of free speech. This kind of comment from a sitting president is simply breathtaking. It is extraordinary. No president -- except Nixon -- has ever seriously discussed controlling the media. And you see how well it worked for him. Whether you love the president or loathe him, resist him or embrace him, regulating what Google or Facebook or Twitter can publish is not the way. It’s not legal, and even more so, it’s not right.

Think for yourself

collision course. And The Kim Komando Show is now forced, from time to time, to drag in the political implications of Big Tech, and its products, its services and its disservices to America and the world, as we simply try to discuss technology and our lives.

As for President Trump, the answer is NO, Mr. President.

Search results and online content are NOT the property of the government nor are they subject to its oversight. What Big Tech says and what it covers and who it allows on its platforms and Our country is now in a state who it does not, is NOT a First of flux. It is a dangerous time. Amendment violation. But it is not the time to lose our Google, Facebook, Twitter, and all composure. of the other may be unfair, and We all have a responsibility to they may be biased. They may, stay informed. We must depend indeed, be rigged. But it’s not the on multiple people and multiple job of the government to fix it. outlets for our news. We must resist the “comfort zone.” Listen to It’s up to us. all sides, not just those who reflect If we EVER allow the government your views. to control what can be said and published, the very fabric of this Maintain your own standards. country will be forever damaged Take the necessary time to beyond repair -- whether you determine where you stand agree with this president or not. and what you are. Why are you a Democrat? Why are you Alex Jones, the First a Libertarian? Why are you a Amendment and Big Tech Republican? Why are you voting? The First Amendment states that Or why not? our government can’t regulate our right to free speech but Always stop and think. what about Big Tech? Facebook, Twitter, Apple, and other tech And if (and when), my comments companies have been cracking on consumer tech touch on one down on conspiracy theorist and of the nation’s political or social radio show host Alex Jones. In this hot buttons, remember, this is Consumer Tech Update podcast what our nation has become and Kim explores the topic of free that I cannot tell the entire story speech and Big Tech. Tap or click by focusing only on the tech itself. to listen.

In a flash (it seems), Big Tech and government are now on a Hands off 46

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MAY 2019

Copyright 2019, WestStar grand theft, theft from an elder Multimedia Entertainment. and filing false tax returns after All rights reserved. allegedly stealing more than 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

CALIFORNIA INSURANCE PRODUCER CHARGED WITH FELONY FRAUD, BURGLARY AND GRAND THEFT

$381,000 in premium payments. His co-conspirator Susan Winett, 64, of Van Nuys was charged with five felony counts of grand theft for her role in the scheme. “This insurance scheme targeted seniors, leaving them financially vulnerable after a lifetime of hard work,” said Insurance Commissioner Ricardo Lara. “The Department of Insurance will aggressively investigate fraud to protect our seniors from those looking to exploit them.” From 2017 to 2019, Cunningham, in his role as an insurance producer, allegedly collected premium payments from six victims for commercial liability, workers’ compensation, property, renewals and other policies and used the money for his personal use. His victims’ homes, businesses and employees were left uninsured and exposed to loss.

Cunningham enlisted Winett EST HOLLYWOOD, in his scheme to forge policy Calif. — Former documents and invoices. licensed insurance producer Jon Cunningham, This case is being prosecuted by 57, has been charged with a the White Collar Crime Division dozen felony counts of fraud, of the Los Angeles County including first degree burglary, District Attorney’s Office. MAY 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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MAY 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

MAY 2019

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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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MAY 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!

MAY 2019

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MAY 2019

Continued From Page 41

strict compliance with the pilot warranty deprives the insured – and in this case the person suing his estate – of coverage. In that regard California Insurance Code Section 449 provides: “A breach of warranty without fraud merely exonerates an insurer from the time that it occurs, or where the agreement to cover Johnson for warranty is broken in its inception, the September 4, 2011, flight, prevents the policy from attaching and Johnson was required to to the risk.” Since there was no fulfill this warranty provision as evidence that Johnson attended a condition precedent to having the course the policy never Wright’s damages claims covered attached to the risk. under Star’s insurance policy with Johnson.

ZALMA

Strict compliance with pilot warranties serves as a necessary corollary of aviation insurance policies. Pilot qualifications and experience are obviously factors bearing directly on the risk the insurer is underwriting. Thus Star included compliance with the PWE, and its Annual MFG School Requirement, as a condition of Star’s agreement to cover Johnson’s liability to Wright for Wright’s negligence claims against Johnson. The judgment was affirmed, and Star recovered its costs on appeal.

ZALMA OPINION Insurance warranties are ancient forms that require, for a policy to provide the benefits promised, that the insured fulfill a material promise by the insured, that is the basis of the risk taken by the insurer. Failure to prove MAY 2019

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MAY 2019