The Underwriter's Insider 2012 Issue 11 by The Underwriter's Insider

Features News 5

Advertising

Kim Komando

Inside Track

Marketplace

Insider Advisor

Classifieds

Say What?

Back Issues

Georgia Gives Nationwide Direction on Consumer Data Breach

Businesses Complain of Drive-By Lawsuits Over Disabled Access

No Coverage if Not an Insured - Analysis by Barry Zalma

Hialeah, FL Company Owner Convicted in Medicare Insurance Fraud

Louisiana Agent Arrested & Serviced with Summary Suspension Order

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News 12 12 13 14 14

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Fla. Announces Conviction of Senior Scammer

Former NFL Star Sentenced in Indentity Fraud Case

CIMA Changes it’s Brand Updates Indentity

Florida Announces Int’l Insurance Group to Expand Presence in the State

Florida Approves up to 65,990 Policies for Citizens Jan 2013 Take-Out

Allstate Wins $7 Million Lawsuit Against Chiropractor Submitting False Reports

Two Insurance Companies Issue $1.6 Million in Refunds to N.C. Consumers

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GEORGIA INSURANCE COMMISSIONER RALPH HUDGENS ISSUED THE FOLLOWING STATEMENT CONCERNING THE UNAUTHORIZED ACCESS OF NATIONWIDE INSURANCE‘S WEBSITE:

tlanta Nationwide Insurance Company notified my office that a portion of their computer network was criminally attacked by individuals who gained unauthorized access to personal a n d p r i v a t e information of approximately 28,467 Georgia members and/or www.underwritersinsider.com

potential policyholders. To minimize the possible negative impact on these consumers, a plan of correction has been implemented. Nationwide will: • Provide the Department of Insurance with evidence of written notice to the members and applicants regarding the improper disclosure of their private information.

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•Create a dedicated toll-free number to answer questions from members and applicants. The Nationwide number is 800-760-1125. •Offer affected members and applicants free credit monitoring and identity theft protection services from Equifax for at least one year. We treat any improper access of an applicant’s personal information as a serious matter. 7

CONTENTS 2012 • Issue 11

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BUSINESSES COMPLAIN OF `DRIVE-BY LAWSUITS’ OVER DISABLED ACCESS

ORAL SPRINGS, Fla. (AP) — The bathrooms in the country club were opulent, with marble floors and antique furniture. But months after purchasing the club, the owners gutted them. The problem: The walls at the Carolina Club were about an inch too narrow under the Americans with Disabilities Act. Robert Cohen and his attorney sued the place in 2003, saying he felt discriminated against, even though he was not a club member and had no interest in joining. He sued the same business in 1998 when it was under different ownership. Cohen has also filed ADA lawsuits against Publix supermarkets, McDonald’s, Comfort Suites and others — more than 300 federal lawsuits in Florida over the past several years.

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Disabled people are not supposed to receive monetary damages from lawsuits over alleged ADA violations, but their attorneys receive fees. Some courtwatchers suspect that some disabled people are getting a cut under the table from their attorneys and that these bursts of lawsuits are nothing but shakedown attempts. ``They’re what’s called drive-by lawsuits,’’ said David Goldfarb, a Miami-based ADA consultant who testifi es for business owners who are being sued. ``One plaintiff’s attorney and one plaintiff will file 10 lawsuits in the same day on the same street. You throw out 10 and hope eight of them stick.’’ Cohen is 69 and gets around on a scooter

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because of arthritis. He bristles at the notion the lawsuits are unethical. ``I have never made five cents or anything. Yes, the lawyers get rich on this, but you know what, what is our choice?’’ the Coral Springs man said. ``If the companies will not voluntarily comply, how are we supposed to get our civil rights?’’ Passed by Congress in 1990, the ADA requires ramps, parking stalls and signs, and dictates the height of countertops, the placement of toilet grab bars and the width of doors. Carolina Club owner and general manager Joe Pace said he spent $60,000 fixing the club to conform to the federal law, but Cohen’s attorney refused to drop the suit. The attorney asked for a $20,000 settlement fee, and finally backed off for $10,000, Pace said. The Underwriter’s Insider

TECH GEAR YOU SHOULDN’T BUY THIS CHRISTMAS

“

by Kim Komando You’ll shoot your eye out kid!”

One of my favorite movies is A Christmas Story. There are so many truly funny scenes. What would Ralphie want to see under the Christmas tree in 2012 - a new smartphone loaded with a copy of Angry Birds Star Wars? Hard to say. There are so many great games and gadgets out there. With all that gear, it’s also easy to buy a tech dud. No one wants to waste money or give someone something they don’t really want. You may recall the bulletin I put out last Christmas about tech gear you s h o u l d n’ t buy. It

included feature phones, GPS units, netbooks, portable media players and point-and-shoot cameras. Those are still on the no-buy list, but this year I have a whole new list of things you’ll want to avoid.

Budget Android gadgets While I still prefer my iPhone and iPad, Android gadgets are now a good option for any tech buyer. Of course, not all Android gadgets are created equal. Older and budget Android gadgets are best to be avoided. And when I say budget, I’m not talking about low-cost, 7-inch tablets like the Nexus 7 or Kindle Fire. I mean $100, off-brand tablets and low-

powered, free smartphones. For both phones and tablets, make sure they’re running Android 4.0 (Ice Cream Sandwich) or higher. A budget phone that runs Android 2.3 (Gingerbread), or a budget tablet that runs Android 3.2 (Honeycomb), will stagger when running the latest games and productivity apps. A $0 to $50 Android phone that was a $200 to $300 dazzler on contract a year ago can be a good value. But a $0 to $50 Android with an outdated processor and last-generation Android version is no bargain. Plus, manufacturers tend to abandon support for Android duds. Less expensive or older smartphones often don’t get an operating system upgrade more than once, or even at all. To find out what smartphones and tablets will thrill your family this year, visit my buying guides.

17-inch laptops Apple laid its 17-inch MacBook Pro to rest this year. Users just don’t want to lug those behemoths around airports and corporate campuses anymore. For that matter, a 15-inch laptop makes sense only for gamers or a graphics and video pro. Most road warriors can work or kill time splendidly on a 10- to 13inch Ultrabook or MacBook Air. Their solid-state drives and Intel Ivy Bridge chips make them lightning-fast tools, and their See Kim Komando Pg 33

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and C. Michael Downey was his passenger. A number of wrongful death lawsuits were filed as a result of the collision.

AMBIGUITY CAN’T BE CREATED FROM WHOLE CLOTH

Plaintiff Sandra Knezovich, as the personal representative of the estate of Anthony Knezovich, filed a complaint for declaratory judgment seeking a finding that Hallmark had a duty to defend and indemnify the Knezovich estate in the underlying wrongful death lawsuits.

he Illinois Court of Appeal was asked to resolve a dispute between an insurer and its insured over the meaning of an exclusion in Sandra Knezovich, Personal Representative of the v. Hallmark Insurance Company, 2012 IL App 111677 (Ill.App. Dist.1 Barry Zalma, Esq., CFE is a California attorney Hallmark moved for summary 08/03/2012). Before the trial court specializing in insurance coverage, insurance judgment, arguing there was no was a declaratory judgment claims handling and fraud who serves as coverage available to Anthony a consultant and expert for insurers and action where the parties filed Knezovich under the policy policyholders. He founded Zalma Insurance cross-motions for summary Hallmark had issued to Franklin Consultants in 2001 and serves as its senior judgment concerning whether Aviation because a provision of consultant. He recently published an e-book, Hallmark Insurance Company “Insurance Fraud,” which is available at his Web the policy excluded renter pilots (Hallmark) owed a duty to defend site, www.zalma.com. Go to Zalma Books at from coverage. The affidavit of the estate of a deceased student http://www.zalma.com/zalmabooks.htm. Raymond Verheydt, the owner of pilot who had rented an aircraft Franklin Aviation, was attached from Hallmark’s insured. The trial two aircraft, a Cessna and a Cirrus, in to the motion. Verheydt averred court found that Hallmark’s policy Wyoming. Both pilots and the sole that Franklin Aviation operated a provisions concerning the exclusion passenger were killed, and both flight school and rented aircraft to its of coverage for student and renter planes were destroyed. Hallmark customers. It charged its customers pilots were ambiguous and Hallmark, insured the Cessna, which was owned for both the rental of aircraft and therefore, had a duty to defend and/ by Franklin Aviation, Inc., a fixed instruction services. Verheydt was a or indemnify the estate of the student base operator, and, at the time of certified flight instructor and provided pilot in the underlying wrongful death the collision, was being operated by instruction to customers as requested. lawsuits. Hallmark appealed the trial Anthony Knezovich, a student pilot. Anthony Knezovich held a student court’s ruling. Ralph Otto was operating the Cirrus, pilot certificate and was a customer of Franklin Aviation, renting aircraft and BACKGROUND receiving flight training. Join Barry Zalma’s new Blog: This insurance coverage dispute arises out of a midair collision between

http://www.zalma.com/blog

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HIALEAH, FLA. CLINIC COMPANY OWNER CONVICTED IN MEDICARE INSURANCE FRAUD

ifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General, Miami Division, announced that a federal jury found defendant Maggie Leon, 35 of Hialeah, Florida, guilty of eight counts of health care fraud, in violation of Title 18, United States Code, Section 1347, and conspiracy to commit the same, Title 18, United States Code, Section 1349. Sentencing has been scheduled for February 6, 2013 before U.S. States District Judge Paul Huck. According to the indictment and evidence presented at trial, Maggie Leon, through her company (Leon Medical), submitted and caused the submission of approximately $7.2 million in false claims for medical services to the seven insurance carriers, and was paid more than $2.2 million. The

evidence further established that the defendant and her coconspirators paid kickbacks and bribes to beneficiaries suffering from HIV to ensure that they would attend Leon Medical. Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Office of Personnel Management, Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark and Special Assistant U.S. Attorney Anissa Andrews.

LOUISIANA AGENT ARRESTED AND SERVED WITH SUMMARY SUSPENSION ORDER

Covington, LA agent has been served by Department of Insurance Fraud Section Investigators with a summary suspension and cease and desist order for alleged misappropriation of insurance premiums. Shantell arrested

Perniciaro Louisiana

was State

Position Wanted in Premium Finance, Carrier or MGA Marketing in Florida Experienced Relationship Manager with established agency base seeking salaried position with premium finance company, MGA or carrier or vendor. Licensed Fla. 2-20 Agent, years of experience calling on personal lines and commercial lines agencies in south and central Florida. Able to travel proven performer. Contact fbrosnan99@hotmail.com for resume. Police on November 2, 2012 for failure to remit premium for an insurance policy and for forgery of a certificate of insurance. She was also served by the Department of Insurance Fraud Section Investigators with a summary suspension of her license and a cease and desist order which prohibit her from any and all activity the Ins.Commissioner in James Donelon business of insurance. It is alleged that Perniciaro failed to remit thousands of dollars in premiums to insurance companies. Department records show that Perniciaro was issued an insurance producer license in January 2007. She has 30 days from time of service to request an administrative appeal or the above actions will become final. 11

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FLA. CFO JEFF ATWATER ANNOUNCES CONVICTION OF TAMPA SENIOR SCAMMER

ALLAHASSEE – Florida Chief Financial Officer Jeff Atwater announced today the conviction of Richard M. Incandela, 60, for defrauding two Tampa seniors out of nearly $490,000 in life insurance premiums. Based on investigations conducted by the Florida Department of Financial Services’ divisions of Insurance Fraud and Agent and Agency Services, Incandela, who was never licensed in Florida as an insurance agent, was sentenced to 34 months in prison followed by 25 years’ probation and ordered to pay full restitution to the victims. “Scam artists who prey on seniors will not be tolerated in our state,” CFO Atwater said. “Every day seniors are bombarded with investment offers and it becomes impossible to know who can be trusted. I applaud the work of our fraud investigators who share my mission to get unscrupulous cheats off the streets. I encourage all Floridians to always be on guard

against fraud.” Incandela’s conviction is based on findings that, between December 2007 and September 2009, he received 15 premium payments totaling $489,426 from two senior citizens he met after making presentations at a Tampa-area church. He offered them a profit and the return of their principal through the sale of life insurance policies in their names that he was to sell as part of a Stranger-Originated Life Insurance (STOLI) transaction. However, the two seniors’ premium payments were never sent to an insurance company but instead deposited into an account for Incandela’s personal use.

Earlier this year, CFO Atwater launched On Guard for Seniors, a website that provides information and tips to help seniors and their caregivers fend off fraud. The Incandela story is a prime example of why CFO Atwater launched the site: Incandela and his wife Barbara, who lost her insurance license in 2010, owned the former agency, Building Value LLC, and were caught trying to sell fraudulent life insurance policies to a Greenville, S.C., churchbased school.

FORMER NFL STAR SENTENCED ON IDENTITY THEFT TAX REFUND FRAUD SCHEME

ifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael A. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced

Before purchasing insurance, CFO Atwater is urging Florida consumers to also verify through Verify Before You Buy that any company, broker or agent they are considering transacting business with is licensed in Florida before signing any contract or writing out a check.

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that William Joseph, 33, of Miami, was sentenced today to 2 years in prison, to be followed by three years of supervised release, for his participation in an identity theft tax refund fraud scheme. Joseph pled guilty on August 31, 2012 to one count of theft of government money and one count of aggravated identity theft.

REBRAND FROM THE MOUNTAINTOP: CIMA UPDATES IDENTITY

According to court documents, the defendant and seven others were charged in an FBI sting operation. From February 2012 to April 2012, the FBI operated a financial services store (the store) in North Miami that accepted f ra u d u l e n t l y o b t a i n e d tax refund checks from William Joseph individuals looking to cash those checks.

Independent Insurance Broker Updates Logo, Website

According to court documents, in March and April 2012, the defendant cashed or assisted in the cashing of 13 fraudulently obtained income tax refund checks (totaling approximately $70,000) at the store for around sixty percent of face value. The defendant provided fake identification documents to the undercover agent at the store matching the names of the victims on the checks. The defendant also forged the signatures of the victims on the back of some of the checks. Mr. Ferrer commended the FBI and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger. www.underwritersinsider.com

OODBRIDGE, VA -- The CIMA Companies, Inc., a leading independently owned insurance broker with a number of specialty products and services, has refreshed its brand identity in an effort that includes a new logo and updated website.

The brand's updated logo evokes the meaning of the company's name: In Spanish, "cima" denotes "summit" or "peak." "The new logo embodies the literal meaning of the word 'cima,'" said Peter van Aartrijk, CEO of Aartrijk, the insurance branding firm that developed the new identity. The refreshed identity retains the mountain peak concept from CIMA's prior identity, but expands it to a double-summit icon. "That illustrates the bond that brokers share with the network of business partners, clients and communities they serve and support," van Aartrijk said. "The mountain image also reflects CIMA's recognition that clients are striving ever higher toward their own goals

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and aspirations." The brand refresh was prompted by the company's initiative to improve the online presence of the CIMA Volunteers Insurance program. And it aims to amplify the name recognition that CIMA long has enjoyed with a nationwide client base in its diverse lines of business. The update provides CIMA the ability to use the logo across all platforms -web, print, business applications, email, direct mail, collateral and signage. Images of several famous mountain peaks are included in the new website at www.cimaworld.com. CIMA, founded in 1949, for decades used a logo with a triangular brand mark comprising the name "CIMA" along with an upward-pointing peak in black.

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FLORIDA ANNOUNCES INTERNATIONAL INSURANCE GROUP (BUPA) TO EXPAND ITS PRESENCE IN THE STATE

ALLAHASSEE, Fla. -- Florida Insurance Commissioner Kevin McCarty today announced the recent approval of BUPA as the second international insurance group to utilize legislation designed to enhance the attractiveness of Florida’s business climate. BUPA is a worldwide healthcare organization and has, through its subsidiaries (Bupa Insurance (Bolivia) S.A., Bupa Ecuador S.A. Compañía de Seguros Y Reaseguros, and Bupa Mexico Compañía de Seguros, S.A. de C.V.), been approved to operate as an offshore insurer in Florida. With its main office located in Miami and employing nearly 400 workers, this presents a unique opportunity to expand business operations and create more jobs as it enters into new agreements to provide services.

For the past seven years, BUPA has maintained a presence in Florida as a domestic life & health insurer operating through BUPA Insurance Company. In 2009, BUPA expanded operations to include BUPA Insurance Limited Company, which utilizes Florida as its port of entry into the United States. BUPA was established in 1947 and offers insurance products and services throughout the world, including Latin America and the Caribbean. "South Florida’s recognition as one of the leading global financial markets provides a compelling incentive for international insurers to take advantage of this legislation," said McCarty. "I am pleased BUPA has elected to further enhance its company’s commitment to Florida and encourage other companies to visit

our state and determine whether this legislation can be a valuable alternative in strengthening their business operations.” HB 1087 was passed during the 2011 Legislative session due to the efforts of the Governor, Commissioner McCarty and members of the Florida legislature. It allows international insurers to insure foreign nationals while operating in Florida, but without the requirement to file a certificate of authority application with the Office. Because these insurers will not be insuring Florida residents, they will remain under the regulatory authority of their country of domicile. The first international insurer approved by the Office under this legislation was Best Doctors Insurance Limited in October 2011.

FLORIDA APPROVES UP TO 65,990 POLICIES FOR CITIZENS JANUARY TAKE-OUT

ALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) today announced the approval of up to 65,990 more policies to be removed from Citizens Property Insurance Corporation (Citizens) by four Florida domestic insurance companies starting on January 8, 2013. This is in addition to the up to 310,000 policies approved

for removal in November and December 2012. As of October 2012, a total of 87,337 policies have been removed from Citizens through the take-out process. In an effort to provide even greater transparency for Citizens policyholders, each of the companies participating in the November, December and January take-out process have created a

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“Citizens Coverage Comparison” list that details their policy coverage options relative to what is offered by Citizens. By Florida law, Citizens policyholders will be notified of the take-out request (assumption) and have 30 days to accept or decline the offer. If policyholders do not respond, they will be “assumed” by the Florida domestic company on January 8th. The Underwriter’s Insider

Consumers interested in alternative coverage options may choose to explore the “CHOICES” Auto and Homeowners Rate Comparison System. CHOICES is an interactive program designed to give Florida residents the ability to compare homeowners insurance rates using sample risk scenarios. For more information about the take-out process and to view the financial status of all approved takeout companies, visit the Office’s website at: http://www.floir.com/Sec tions/ PandC/TakeoutCompanies.aspx. List of Office approved take-outs for November – December 2012 and January 2013:

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ALLSTATE WINS $7 MILLION + SUIT AGAINST CALIFORNIA CHIROPRACTOR FOR SUBMITTING FRAUDULANT CLAIM REPORTS

OS ANGELES, Dec. 11, 2012 Los Angeles County Superior Court is awarding Allstate Insurance Company more than $7 million in a qui tam action filed by the insurer on its behalf and on behalf of the People of the State of California against a Long Beach chiropractor, Daniel H. Dahan, D.C., and his business, Progressive Diagnostic Imaging, Inc., arising out of a scheme to defraud

insurance companies. In the judgment, Superior Court Judge Ernest M. Hiroshige found that Dahan and Progressive Diagnostic Imaging violated the state’s Insurance Frauds Prevention Act in 487 claims presented to Allstate in radiology reports that were determined to be “falsified medical records” that “have no diagnostic, clinical, or medical

value whatsoever.” Hiroshige further concluded that health insurance claim forms and billing statements submitted in connection with the falsified radiology reports were “false and fraudulent.” The judge ordered that Dahan pay Allstate $4,870,000 in civil penalties, $918,516.78 in assessments and $1,222,151.62 in attorney’s fees, costs and investigative expenses--$7,010,668.40 in all. “Insurance fraud is not a victimless crime,” said Allstate’s California Field Vice President Phil Telgenhoff. “Fraud drives up the cost we all pay for insurance and stealing millions of dollars from insurers cannot and will not be tolerated in California or anywhere across the country.” Allstate alleged that Dahan purchased report-writing software that purported to analyze x-rays and form medical opinions and diagnoses, including opinions concerning permanent impairment ratings, and thereafter formed Progressive Diagnostic Imaging to solicit x-rays from chiropractors, with the assurance that “board certified radiologists” would analyze the films. Allstate further claimed that, unbeknownst to patients and health

See Allstate Wins Fraud Suit Pg 30

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amount that the Company has elected not to recoup.

T C

harles H. Lydecker, Retail Division President of Brown & Brown, Inc. (NYSE: BRO) and Colin E. Lowe, Profit Center Leader of Brown & Brown of Florida, Inc.’s Miami Lakes office, together with Fred M. Behnke, Mark E. Introcaso, C. Scott Kinzel, and Victor Eugene McFadden, the principals of Behnke & Associates, Inc., today announced that Brown & Brown of Florida, Inc., a subsidiary of Brown & Brown, Inc., has acquired certain assets of Behnke & Associates. Founded in 1995, Behnke & Associates specializes in providing personal lines property and casualty insurance products to clients throughout South Florida. With annual revenues of approximately $4.0 million, the company has offices in Hollywood and Pembroke Pines, Florida. As part of this transaction, Behnke & Associates’ Hollywood office will join Brown & Brown of Florida’s existing Miami Lakes office, and Behnke & Associates’ Pembroke Pines office will continue to operate from its existing location. Going forward, Mark Introcaso will supervise the day-to-day operations of the Behnke & Associates team in both locations under the leadership and direction of Colin E. Lowe.

Casualty Insurance Company (APPCIC), both wholly owned subsidiaries of the Company and together referred to as the “Insurance Entities.” Collectively, the assessment was 0.9 percent of the Insurance Entities’ net direct written premiums within Florida for the calendar year 2011 and totaled $6.3 million. The assessment will have a negative effect on the consolidated operating results of the Company for the three-month period ended December 31, 2012. The mandatory assessment on UPCIC of $6.3 million will be recouped through a surcharge on UPCIC’s policies within Florida, pursuant to a filing made with the Florida Office of Insurance Regulation on November 28, 2012, and the Company expects it will have a positive effect on operating results over a twelve-month period beginning February 1, 2013. The mandatory assessment on APPCIC was a nominal

he Porsche 911 GT3 Cup is the most successful race car in the world. Since 1998, 2,395 units of the near-streetstock race vehicle for customer sport have been produced. The new edition of the 911 GT3 Cup is the motorsports version of the future showroom model 911 GT3 (yet to be introduced) and as such is the first race car that is based on the seventh generation of the sports car icon (Porsche 911 - type 991) from Zuffenhausen.

he new 911 GT3 Cup will be run exclusively in the Porsche Mobil 1 Supercup in 2013. The rest of the Porsche makes cups and challenge cups around the world, including the IMSA GT3 Cup Challenge by Yokohama and the IMSA GT3 Cup Challenge Canada by Michelin, will compete in the current 911 GT3 Cup racer for 2013, switching to the new car in 2014. The new car for one-make racing made its debut on the occasion of the end of motorsport season “Night of Champions” celebration at the R&D Centre in Weissach.

niversal Insurance Holdings, Inc. (NYSE MKT: UVE) (Company), a vertically integrated insurance holding company, announced a mandatory assessment by the Florida Insurance Guaranty Association, Inc. (FIGA). The assessment of 0.9 percent of net direct written premiums for the calendar year 2011 is applicable to all member insurers of FIGA’s “All Other Account,” which includes Universal Property & Casualty Insurance Company (UPCIC) and American Platinum Property and

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uy Kawasaki, New York Times bestselling author and former chief evangelist of Apple, and Shawn Welch, former senior media editor of Pearson Education, today announced APE: Author, Publisher, and Entrepreneur--How to Publish a Book. It presents persuasive arguments for why authors should choose self-publishing and how to execute this strategy. APE’s thesis is powerful yet simple: filling the roles of author, publisher and entrepreneur yields results that rival traditional publishing. Guy and Shawn call this “artisanal publishing” -- that is, when writers who love their craft control the publishing process and produce high-quality books. “Writers are no longer at the mercy of large, traditional publishers,” said Kawasaki. “Whether you’re a bestselling or first-time author, the advantages of self-publishing far outweigh the disadvantages. APE helps authors control their own fate.”

ccording to a recent survey by PEW Research, “The overall U.S. birth rate declined 8% from 2007 to 2010. The birth rate for U.S.-born women decreased 6% during these years, but the birth rate for foreignborn women plunged 14% -- more than it had declined over the entire 1990-2007 period. The birth rate for Mexican immigrant women fell even more, by 23%.”

he Insurance Industry Charitable Foundation (IICF) Northeast division will honor XL Group plc (NYSE: XL) at the organization’s 2012 benefit dinner on Wednesday December 12, 2012 at the WaldorfAstoria Hotel in New York City. IICF will present XL Group with the IICF 2012 “Double I” award for influence in the industry and impact in the community. Accepting the honor will be Mike McGavick, XL Group CEO. Presenting the award will be Brian www.underwritersinsider.com

Duperreault, president and CEO of Marsh & McLennan Companies, Inc. XL’s philanthropic endeavors focus on supporting education, young people, the environment, sport and the arts in the communities where its people live and work.

ver 1,000 risk managers, insurance agents, brokers, attorneys, and underwriters who specialize in managing or insuring the risks associated with construction projects convened here November 11–15 for the 32nd IRMI Construction Risk Conference. The IRMI Construction Risk Conference is the only national symposium devoted exclusively to managing, insuring, and bonding the risks of construction projects. The Conference featured a general session and 24 workshops presented by more than 55 nationally recognized insurance, risk management, safety, and surety experts.

nsurance Journal is reporting that” The U.S. Treasury is selling its remaining stake in insurer American International Group Inc., bringing an end to government ownership of the company four years after it was rescued from the brink of bankruptcy.In a statement on Monday, the Treasury said it launched an underwritten public offering for its remaining 234.2 million shares of common stock. “

usiness Insurance reported recently, “S&P said in the report that many insurers and reinsurers still are estimating their losses from the storm, which caused devastation along the East Coast of the United States. The rating agency said the complicated nature of business interruption, infrastructure and flood claims because of factors such as nonstandard policy wordings and slow claims reporting meant that many insurers and reinsurers had

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experienced difficulties in assessing their exposure to the storm losses.”

nder a U.S. Department of Transportation proposal made recently, “Black Box” devices that record crash-related data would be required in all new cars and light trucks. The rule, which certainly will generate controversy and privacy concerns.

group of Chinese companies, including the Industrial & Commercial Bank of China, is in talks to buy American International Group Inc.’s aircraft leasing unit for about $5.5 billion.

he American Insurance Association (AIA) applauds passage of H.B. 380 by the Ohio General Assembly. H.B. 380 aims to address the lack of transparency between previously established asbestos trusts and the court-administered civil justice system. The Ohio House of Representatives concurred with the Senate’s amendments to HB 380 on Tuesday, in the last week of the Assembly’s 2012 Session, by a vote of 56 to 34. H.B. 380 now heads to Governor John Kasich (R-OH) for his signature.

RMI President & CEO Jack Gibson is pleased to announce Michael R. Mead is the new editor of Captive Insurance Company Reports (CICR) effective with the February 2013 issue.Mead has a long and distinguished history with both captives and IRMI. A veteran of the insurance industry, Mead has served in a variety of roles: regional director of a global broker, an underwriter, and an entrepreneur starting and operating several insurance-related companies. He currently is president of his own company, which works primarily in captive management and consulting. He is past chairman and director of the Captive Insurance Companies Association, past president and director of the Arizona Captive Insurance Association, and a founding director of the Surplus Line Association of Illinois. 19

Marketplace Recently Announced P&C Markets

Agent’s E&O

odern Insurance Consultants - #1 writer of Agent E&O in Florida 18 markets - 24 hour quote turn-around. 305.248.9495 - www.modernins.com info@modernins.com

rofessional Underwriting Group - $974 min premium - $1K to $10K ded. New Agencies OK - Association discount. 800281-4234 - info@puginsuranceagency.com www.professionalunderwritinggroup.com

ational Ins Underwriting - Limits $300K to $2M - Premiums starting at $1400 with low ded. Available most states. Discounts for loss-free experience and losscontrol efforst. Call Craig Calver - 800-3382680 X 507.

Aviation

viation Products & Liability Insurance from Arlington/Roe & Company - MGA - representing mulitple markets. Contact: 800.878.9891 X 2401. Cfrench@ arlingtonroe.com [11-6]

Chemical Mfg & Distribution Risks

uel additives, Industrial gases, paints, varnishes, lacquers, enamels, solvents, adhesives, sealants and a multitude of other chemical manufacturing and distribution risks. Min Prem $20,000 and other underwriting criteria. See Sloan Mason: Contact Grant Kanamori @ 619-814-2488 or grant@sloanmason.com. [11-7]

Collectables

merican Collectors announces updated specialty coverage for valued collections. The company claims coverage available for almost any type of collection with multiple coverage options. www.AmericanCollectors.com/Agents (800) 620-5052 12-7

Commercial Auto

ational Ins Underwriting - Light, medium & heavy up to 66,000 lbs. up to 500 mile radius, Up to $1M CSL or $1/$2M split, Phys Dam up to $100K - Med Pay, Hired and NOL. Contact: Call Craig Calver - 800338-2680 X 508.

ingsway/Amigo Competitve commercial auto program. Any size fleet, - all types of cars, light trucks and vans - specialty services, like landscaping, electrical, plumbing, lunch trucks and other various occupations. info@ kinswayamigo.com

Condo Assoc Program

rident is offering tailored coverage designed for condominium town home and single-family community associations claiming competitive rates and terms. Coverages available include property, including flood, earthquake and coastal windstorm, general liability, D&O, umbrella, worker’s comp, auto, crime and property mgrs E&O. Trident Community Association Program - 5100 N. O’Connor Blvd, #200, Irving, Texas 75039 or email to csmktgprograms@argogroupus.com 877590-0775 [11-6]

Contractors

eavy construction risks including steel erection contractors, concrete contractors, roofing contractors, bridge, street & road contractors, etc. Norman Spencer - Contact Brian Harrold p: 937.432.1469 brianharrold@normanspencer.com [11-7]

Contractor’s Pollution

ost contractors - including those with mold exposures and cleanup contractors. Program includes CPL - Occurrence or Claims Made form - mold coverage available - Annual & Per Project policies. Highly competitive rates claimed. All Risks, Ltd - Lou Ann Cook - 800-3665810 X 3030 email: nspflyer@allrisks.com [12-4]

Convenience Store

rgo Insurance announces expanded program and competitive rates for convenience store accounts. Company is looking for stores open until 11PM, fuel sales up to 90%, alcohol sales up to 30% with no fuel hauling exposure. Not available in Florida at this time. Email csmktgprograms@argogroupus.com 877590-0775 [11-6]

Design & Construction Industry

rchitects, engineers & surveyors, construction managers, contractors, environmental consultants, landscape architects, specialty construction consultants. Contact Jeff Grigsby 877.453.2071 - JeffG@schinnerer.com [116]

Energy & Utility Risks

il & Gas Companies, pipeline operations, utilities, HVAC contractors and water & sewer contractors. Contact Victor O. Schinner & Co., Inc. Jeff Grigsby - 877-453-2071 or jeffg@ schinnerer.com [12-1]

ropane Dealers - PowerWrap is an endorsed insurance program offering specialized, full spectrum coverage. Contact Alteris: 877-590-0775 [12-1]

Entertainment & Sports

&K Insurance claims “over 75 programs available on admitted paper with no prior approval or appointment needed to submit applications for quotation. “ The MGA can be reached at 800-637-4757 or www. kandkinsurance.com. [11-6]

Group Homes

roup Homes Programs for such risks as Hospice, Agencies for Aging, Homeless Shelters, Rehab Facilities, Adult Day-Care Facilities, etc. Comprehensive packages available - limits up to $1M/$3M - customize with many optional coverages. AFC Insurance - Toll Free: 877-456-5323

Hair & Beauty Insurance Program

ASS - Salon & Spa Specialty Insurance administered by Brownyard Group open to agents seeking access to program. 888-823-9380 or Email: sassi@brownyard. com [11-7]

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Health & Human Services

FC Insurance - Package programs or ala carte. Contact: 877-4565323 www.afcins.com submissions@ afcins.com [12-2]

Homeowners

Kidnap & Ransom

ational Ins Underwriting -Webbased quick quotes, most protection classes & zip-codes OK - $40K - $750K dwelling values with replacement cost available. No credit scoring. Renters policies available. Contact: Craig Calver - 800-338-2680 X 508.

cademic institutions, energy companies, engineering firms, hospitals and healthcare, houses of worship, manufacturing firms, etc. Contact Victor O. Schinner & Co., Inc. Jeff Grigsby - 877-453-2071 or jeffg@ schinnerer.com [12-1]

Life Agent E&O

ife agent E&O from Rockwood Programs. Coverage limits from $250K to $1 Million. Base rates from $400 to $550. Individual policies. Indentity theft included. No shared aggregates. Includes mutual fund placement. Call 877-242-2487 or email sales@rockwoodinsurance.com. [12-4]

Marine Risks Worker’s Comp & Longshore & Harbor Workers’ Comp

eaBright Insurance Company offers high quality workers’ compensation coverage for your clients who are small maritime employers and other marine-related businesses. SeaBright provides seamless cov All Risks, LTD 410-828-5810 rlang@allrisks. com or Appalachian Underwriters, Inc. – Oak Ridge, TN 865-425-1051 warren. palmer@appund.com or Peachtree Special Risk Brokers – Metairie, LA 504830-7347 jlasseigne@psrllc.co [11-7]

Marine, Recreational

orman Spencer announces availability of a market for multiple and vaious recreational marine risks including marinas, docks, boat rentals, boat mfgs, charters and more. Contact Corky Breeden at 937432-1631. 12-7

Have a P&C Product Announcement? Send your press release or one-paragraph announcement to ron@insurmedia.com

Martial Arts

&K Insurance announces expanded coverage & lower minimum premiums on martial arts coverage. General Aggregate Limit increased to $5M - Participants Med Pay to $150K. The MGA can be reached at 800-637-4757 or www. kandkinsurance.com. [11-6]

Ocean & Inland Marine

prdwode Facilties, Inc. Contractors doing: piers, docks, wharfs, bridges, breakwaters, cranes, dredging, etc. 6455 East Johns Crossing, Suite 115 Johns Creek, GA 30097 (678) 736-6720 • Facsimile: (678) 736-6726 - Carter, Kimberly - 678 736-6720, Ext. 1000 - kcarter@ wwfi.com [11-7]

Professional Liability

echnology & Cyber, Architects & Engineers, RE Agents, Insurance Agents E&O, Misc. Pro Liability - and more: Contact Atlantic Specialty Lines lorie@atlanticspecial.com 877545-9100 [12-1]

ictor O. Schinnerer - A-rated carriers -Real Estate Agents, Healthcare Consultants, General & Artisan Contractors, Architects, engineers & consultants, public entities such as school leaders and public officiials. Contact: 877-4532071 www.schinnerer.com jeffg@ schinnerer.com

Real Estate E&O

overage for open houses, mold, network risks and privacy claims are now part of Victor O. Schinnerer & Company’s Real Estate E&O policy. Schinnerer includes the three new coverages at no additional premium. Call to ck on your state: Starr Crusenberry Starr.N.Crusenberry@Schinnerer.com - 301-951-6904 [11-6]

Restaurant

rgo Insurance announces l o we r rates filed on restaurant c o ve r a g e including fo o d s p o i l a g e c o ve r a g e. Fu l l commission and no agency a p p o i n t m e n t n e c e s s a r y. Co m p a ny i s l o o k i n g fo r f a m i l y s t y l e, f a m i l y g r i l l s, c a s u a l s t y l e, f i n e d i n i n g a n d limited cooking restaurants such a s p i z z a a n d s u b s h o p s. Email csmktgprograms@argogroupus. com 877-590-0775 [11-6]

o r m a n S p e n c e r ’s R e a l E s t a t e Pr o g r a m - “o n e o f t h e m o s t c o m p r e h e n s i ve p o l i c i e s i n t h e m a r k e t w i t h h i g h l y c o m p e t i t i ve p r i c i n g” Co ve r a g e i s av a i l a b l e to risks whose ser vices include R e s i d e n t i a l a n d Co m m e r c i a l S a l e s, Le a s i n g, Pr o p e r t y M a n a g e m e n t , Real Estate Co n s u l t i n g, Au c t i o n e e r i n g, Mortgage B r o k e r i n g, B P O ’s a n d A p p r a i s a l, and Escrow Ser vices - Michael R yd e r m i c h a e l r yd e r @ n o r m a n s p e n c e r. c o m 800.477.9192 x204 [11-7]

Security Guard

r o w ny a r d Pr o g r a m s announces c o ve r a g e fo r security g u a r d s, claiming to insure 15 of the top 40 security g u a r d c o m p a n i e s i n t h e U. S . B r o w ny a r d Pr o g r a m s w w w. b r o w ny a r d p r o g r a m s. c o m or pvancott@brownyardprograms. com [12-4]

Tech Consultants E&O

odern Insurance Co n s u l t a n t s we b s i t e d e s i g n , s o f t w a r e d e ve l o p m e n t , d a t a b a s e a d m i n , we b h o s t i n g, software/hardware sales - and m o r e. I T c o n s u l t a n t s u p t o $ 1 5 M i n a n n u a l s a l e s. Co n t a c t A n d r e w Lawrie - 305-248-9495 X 9108 a l a w r i e @ m o d e r n i n s. c o m [ 1 2 - 2 ]

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TWO INSURANCE COMPANIES TO ISSUE $1.6 MILLION IN REFUNDS IN N. CAROLINA

ALEIGH -- Insurance Commissioner Wayne Goodwin has announced a settlement agreement with American Modern Home Insurance Company and its affiliate American Family Home Insurance Company. The settlement agreement includes a monetary penalty in the amount of $260,000, and an attendant corrective action plan that provides for refunds of approximately $1.6 million. The N.C. Department of Insurance initiated an investigation of American Modern Home Insurance Company and its affiliate American Family Home Insurance Company, after resolving a September 2011 consumer complaint that indicated questionable or unclear policy features and pricing. As a result of an investigation lasting several months with continued inquiries by the Department, other irregularities were discovered and

self-reported by AFHIC and AMHIC. The settlement addressed the following issues: •AMHIC and AFHIC used an incorrect policy deductible in the process of calculating rates for approximately 26,682 mobile home policies sold to North Carolina consumers from 2008 to 2012. North Carolina policyholders will be refunded approximately $1.06 million in premiums as part of the corrective action plan.. •AMHIC utilized a waterbed liability rider on approximately 21,684 renter’s policies sold to North Carolina consumers from 2007 to 2012, regardless of whether or not the consumers owned a waterbed. Approximately $475,000 in premiums charged for this rider will be refunded to North Carolina consumers as part of the corrective action plan.

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•AMHIC failed to follow North Carolina Rate Bureau methodologies for calculating premiums on approximately 4,809 additional renter’s policies sold to North Carolina consumers from 2009 to 2011. Due to this miscalculation, approximately $52,149 in premiums will be refunded to North Carolina consumers as part of the corrective action plan. •AMHIC failed to provide the required “consent to rate” disclosure to 73 North Carolina renter’s insurance policyholders who purchased their policies from 2007 to 2012 and were charged premiums above those approved by the North Carolina Department of Insurance. As a result of this error, approximately $7,000 in premiums will be refunded to these consumers as part of the corrective action plan.

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“The Final Authority on Everything!” Please Release Me...

e wish to issue a press release for your next issue but no one in our company has a clue on how to write it. We are adding two new product lines and we have a couple of promotions to announce. What format would you recommend? T.K. Memphis, TN When you send a press release to a publication, you want the press release to read just like a news story. Essentially, you want to strive to write the same story that we would write if we had time to come visit your company, interview your people and learn about your new products. The biggest mistake we see in the many press releases we receive is the tendency to make the release to “salesy” or “promotional.” It should sound like a dispassionate, factual report — while hitting all the highlights and giving a brief informational on the company — but not like an advertisement.

ADVISOR

like fluff and self-promotion, the more credibility it will have to the reader.

Keep these points in mind when constructing your press releases and you’ll find many more publications actually printing them. Try beginning your press release with wording such as, “XYX Company announced today that they will be adding HO-4 Tenant Homeowners policies to their products available to top agents. Next, fill in more information on the new products and why they are important to the marketplace. You may wish to include quotes from key sources in the company, such as, “According to John Jones, President

Have a question for The Advisor?

Click HERE! of XYZ Company, ‘HO-4’s are an important addition to our line-up as more and more people seem to be moving into the rental market in the past two years. Our agents have been asking for the product and now we have it available.’” Finally, include a brief paragraph on the background on the company and perhaps a contact name and phone number that can be used if someone desired more information. Incidentally, running a press release in the same periodical in which you are running an advertisement is a powerful one-two punch as one reinforces the other.

Save the editor some time by editing the release down to a reasonable size. We get press releases here that would fill an entire page before we have to start chopping. Try and keep in mind the five “W’s” of the professional reporter: “Who, What, Why, Where and When.” Consider it a great opportunity to report positively on your company — but don’t think of it as a free ad. The more your release sounds like a real news report and the less it sounds www.underwritersinsider.com

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FREE CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider. com/classifieds. Ads must be less than 501 characters plus a title line. Eligible free classifieds include help wanted, position wanted, personal ads, agency for sale/purchase, or the one-time sale of an item or items. REGULAR CLASSIFIED RULES: Submit all ads online at: www. underwritersinsider.com/classifieds. Only $1.00 per word, including title line and response info. Payment must be received prior to print date.

Coral Springs, FL Experienced 2-20 Agents Experienced P & C Agents required for a Coral Springs office. Good commission and renewal offered. Contact: tamiller91@yahoo.com 9-1

AGENCY FOR SALE Very profitable Personal & Commercial Lines agency for sale in southwest Florida. Owner re-locating and very motivated to sell. Close to $300,000 in commissions with over 2500 clients. Good mix of auto,homeowners and commercial clients. Call Raj at 239-699-7047 9-4 24

Let’s combine... Agency looking to Merge Don’t just sell your book of business and loose income. Why not merge and keep your client base. Contact: Peralta Insurance We have been in business for over twelve years, and have a large book of business and looking to expand. We carry all forms of insurance including; Health, Life, Commercial, Auto, Home, and many more. 12039 sw 132ct Miami Fl 33186 305-969-6960 peralta_ins@ bellsouth.net 9-5

Independent Agency For Sale or Merger Location is in North Florida area. $150,000 Firm. Email For More Info: portmgr@comcast.net

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HERE 2-20 Producers Wanted: Miami Westchester Area

Looking for Personal & Commercial Lines producers. Salary plus commission!!! Rapidly expanding ageny. Please contact us via email or call Yudanis or Luis @ 305-225-9551 or: yudanis@optioninsurancesolutions.com

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INSURANCE AGENTS Growing commercial insurance agency looking for sales professionals in 48 States who have a huge appetite to sell and make a difference! Great support team and marketing strategy. With training, work ethic and the great support you are your only limitation. You can work from home if you have the discipline ! Bring your own book or build one with option to own the book. Send response to : TRUCKRISKMANAGEMENTPARTNER@GMAIL.COM 9-10

"Socialism is the philosophy of failure, the creed of ignorance and the gospel of envy. Its only inherent virtue is the equal sharing of misery." - Winston Churchill

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Franchised Insurance Agency For Sale Well Est. Florida 2-20 Licensed and Franchised General Insurance Agency. Owner consolidated 2 locations into one in 2012 reducing expenses & increasing profits as a result. Pre-qualified for SBA Lender Financing w/ $81,250 Down. Terms are approximate. Asking $325K. Contact Corporate Investment Business Brokers | (239) 936-1718 | www.floridabusinessbrokers.com 9-5

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IMPORTANT! You may also place FREE position-wanted classified ads in this section. Just click on the link below and fill out the simple form and weâ&#x20AC;&#x2122;ll get you online.

HERE! Profitable Independent Agency For SALE Kissimmee Area

Profitable agency , with low overhead expenses in Central Florida (Kissimmee Area). Motivated Seller. Email: Essie.noboa@gmail.com

9-7 25

ambulances at this time. Just received a call. We have one female in room one who has received a gunshot wound to the foot.” - 911 Dispatcher relaying early instructions to medical personnel after receiving call from Connecticut school where the final tally would be far worse than a gunshot wound to the foot: 27 people, 20 of them children, died from gunshot wounds.

“Blood alcohol concentration is strongly associated “There was certainly no indication of anything unusual with lower in-hospital mortality among those that survive long enough to receive treatment in specialized trauma units. The more alcohol in your system, the more the proven effect.” - Lee Friedman, lead researcher, in a recent study noting a relationship between alcohol in the blood and mortality in the emergency room. Apparently the relationship only occurs for those who make it to the hospital.

that lets you think that a kid’s going to do something like that. There was nothing that would indicate anything going on behind the scenes that would lead to this horrible mess.” - Jim McDade, who lived a few houses down from Adam Lanza and his mother. Adam Lanza was the shooter responsible for the Connecticut school massacre.

The largest price increases year over year included “AIA is pleased the Ohio General Assembly has passed “workers compensation, now approaching double digits, an important measure aimed at curtailing fraud involving asbestos-related claims. H.B. 380 provides the necessary legal reforms which allow the courts to properly adjudicate asbestos-related cases for victims with legitimate claims. AIA urges Governor Kasich to sign this legislation into law.” — Stephen C. Schneider, AIA Midwest region vice president in a December press release applauding the Ohio decision.

and employment practices liability, followed closely by commercial property, where price increases have moderated somewhat since last quarter. If this level is maintained through year-end and as losses develop, it will indicate a reversal from the estimated 4% deterioration between 2010 and 2011.” - Towers Watson reported, based on new and renewal business information provided by insurers.

“Insurance fraud is not a victimless crime. Fraud drives “Rates and premium volumes for nonlife insurance up the cost we all pay for insurance and stealing millions of dollars from insurers cannot and will not be tolerated in California or anywhere across the country.” - Allstate’s California Field Vice President Phil Telgenhoff on the occasion of winning an almost $7 million fraud judgement against a California chiropractor for submitting fraudulent claim reports.

“The challenge is it’s all new.

We have a really, really short period of time in order to get everything done.” - Kim Holland, executive director for state affairs at the Blue Cross Blue Shield Association, a Washington-based trade group that represents 38 state insurance plans in regards to establishing insurance exchanges required by Obamacare.

“All units, the individual that I have on the phone is continuing to hear what he believes to be gunfire,” the dispatcher continues. “Units responding to Sandy Hook School at this time, the shooting appears to have stopped. [inaudible] The school is in lockdown. Medics, you are requested to stage [inaudible]. I will need two 26

and reinsurance are likely to increase in 2013, according to a study by Swiss Re Ltd. While the global economy remains weak, an improving housing market in the United States, fiscal and monetary stimulus in China and a slow turnaround in the eurozone are expected to boost economic growth in 2013, according to Zurich-based Swiss Re. And this improvement should benefit insurers and reinsurers’ results, Swiss Re said in the study.” - From a 12/11/12 Report from Business Insurance

“California is the undisputed heavyweight champion

of the consumer class action,” says the report’s executive summary. “Its plaintiff-friendly laws spur ridiculous lawsuits against companies that sell products ranging from breakfast cereal to bagged walnuts. California’s small businesses have been under siege from trolling disability-access lawyers and their professional plaintiffs who look for technical rules violations, then demand thousands of dollars to settle.” - From The Washingtonbased ATRA in its annual report documents “abuses of the civil justice system” in jurisdictions that “are among the most “unfair and out-of-balance in the nation: “Judicial Hellholes”

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Continued from Page 16

ALLSTATE WINS FRAUD SUIT care providers using Progressive Diagnostic Imaging, Dahan recruited untrained and unlicensed individuals to work with the report-writing software to prepare the fraudulent radiology reports. To make it appear that the reports were genuine, Dahan instructed his “technicians” to cut and paste the signatures of board certified radiologists to the reports, all without the knowledge, approval or authorization of the radiologists. The reports and bills were presented to Allstate in support of claims, either directly by Dahan and Progressive Diagnostic Imaging or by plaintiff attorneys in auto accident cases.

in any business engaged in the practice of medicine. And he ordered that letters be sent to all of the affected patients and their referring healthcare providers, to advise them of the Court’s findings and judgment, including the Court’s order that the reports generated by Dahan and Progressive Diagnostic Imaging are “to be disregarded on the basis that such reports [are] . . . falsified medical record[s]” and have “no diagnostic, clinical or medical value whatsoever,” and that “records are not to be

At trial, four radiologists, whose names appeared on reports, testified they never wrote, reviewed, approved or signed the reports. Allstate also alleged violation of California’s Unfair Business Practices Act, claiming that Dahan was practicing medicine without a license, operating a professional medical corporation in violation of California’s Moscone Knox Professional Corporation Act, and that he was falsifying patient medical records. Judge Hiroshige agreed.

“Submitting a false insurance claim isn’t just a bad idea – it’s fraud and insurance fraud is a crime,” Telgenhoff said. “Allstate will fight fraud wherever it lives to help protect our customers and keep their insurance costs down.” The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names. Widely known by its slogan “You’re In Good Hands With Allstate®,” Allstate offers insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via www.allstate.com and 1-800 Allstate®. As part of Allstate’s commitment to strengthen local communities, The Allstate Foundation, Allstate employees, agency owners and the corporation provided $28 million in 2011 to thousands of nonprofit organizations and important causes across the United States.

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Beyond the verdict, Hiroshige also issued an injunction prohibiting Dahan from owning, operating or working as an employee 30

considered by any person or entity as part of the . . . patient’s medical history, medical record, or medical chart at any time and for any purpose.”

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ZALMA

Student Pilot means any pilot holding a valid student pilot certificate issued by the FAA who is receiving flight instruction or operating the aircraft solo under the direct supervision and flight endorsement of a FAA Certified Flight Instructor.

Verheydt informed Mr. Knezovich that he would be charged for the rental of the airplane on each flight based on an hourly rate. For those flights during which he flew with a flight instructor, he would be charged both an hourly rental fee for the use of the aircraft and the hourly rate for the instructor. When he was receiving ground instruction, he would only be charged for the instructional time. Furthermore, when he was flying without a http://www.zalma.com/zalmabooks.htm flight instructor, he would be charged a rental fee for the use of the aircraft. Mr. Knezovich Renter Pilot means any person acknowledged that he understood or organization who is renting the and agreed with that arrangement. aircraft from you. Verheydt averred that after he *** authorized Mr. Knezovich to make his Who Is Not Protected first solo flight on April 10, 2008, Mr. *** Knezovich was authorized to rent the Your bodily injury and property aircraft to fly solo as long as Verheydt preapproved each solo flight. On damage coverage does not protect: August 10, 2008, Mr. Knezovich rented b. Renter Pilots A renter pilot with the aircraft to fly solo. During that flight, respect to any occurrence arising out the aircraft was involved in a midair collision, resulting in fatal injuries to of the operation of the aircraft by a Mr. Knezovich and destruction of the renter pilot. *** aircraft. What Is Not Covered We do not Also attached to Hallmark’s motion cover any: for summary judgment was its aircraft f. Student Pilots Property damage insurance policy issued to Franklin or bodily injury if the aircraft is being Aviation. The named insured specified on the coverage identification page operated in flight by a Student Pilot of the policy was “Franklin Aviation, with passengers unless a passenger Inc. and its individual shareholders is a pilot acting as pilot in command and executive officers.” The definitions [and has a current and proper medical section of the policy, provided in certificate, flight review, and pilot certificate with necessary ratings, pertinent part: each as required by the FAA]. www.underwritersinsider.com

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ANALYSIS Under Illinois law, if an insurer contends that a complaint does not allege a covered claim and the insurer neither defends the lawsuit under a reservation of rights nor seeks a declaratory judgment that there is no coverage, then the insurer may be estopped from raising policy defenses to coverage if the insurer is later found to have wrongfully denied coverage. First, the record establishes that Hallmark sought a declaration of noncoverage by filing a declaratory judgment action in Wyoming, but that case was ultimately dismissed after the Knezovich estate filed the instant coverage action in Illinois. Furthermore, Hallmark is not raising a policy defense to coverage but, rather, is asserting that Mr. Knezovich is not even an insured under the policy. When construing the language of an insurance policy, a court’s primary objective is to ascertain and give effect to the intentions of the parties as expressed by the words of the policy. Because the court must assume that every provision was intended to serve a purpose, an insurance policy is to be construed as a whole, giving effect to every provision and taking into account the type of insurance provided, the nature of the risks involved, and the overall purpose of the contract. If the words used in the policy are clear and unambiguous, they must be given their plain, ordinary, and popular meaning, and the policy will be applied as written, See Zalma Pg 34 31

Experts and Consultants for Insurance Disputes 4441 Sepulveda Boulevard Culver City, California 90230 310-390-4455 zalma@zalma.com http://www.zalma.com

Consultation from Zalma Insurance Consultants (ZIC) can save you or your client thousands of dollars in the defense or prosecution of an insurance dispute. ZIC provides expert advice and counsel insurers and plaintiffs’ counsel find indispensable. Consultation from ZIC can save you, your counsel or client hundreds of hours of investigative and legal work. ZALMA INSURANCE CONSULTANTS is a service of Barry Zalma, Inc. a California professional corporation. Barry Zalma is an internationally recognized expert on insurance coverage, insurance claims handling, insurance bad faith, insurance fraud detection, the defeat of false and fraudulent claims, Barry Zalma, Esq. insurance claims handling, and the resolution of insurance disputes. As a consultant, expert witness, lawyer, author, mediator or arbitrator he serves all parties who need consultation or expert testimony on matters relating to insurance coverage, insurance claims handling, insurance fraud and the tort of bad faith. Barry Zalma founded Zalma Insurance Consultants to help resolve any insurance claim problem faced by you or your clients that do not need Mr. Zalma’s services as a lawyer. His experience and skill as a consultant and expert witness can make the difference before a jury or other trier of fact. For more than 44 years as a claims person and insurance coverage attorney, Barry Zalma has represented insurers, advised insurers on claims handling, interpreted coverages and testified as an insurance coverage, insurance bad faith, insurance claims handling and insurance fraud expert on behalf of insurers and policyholders in state and federal courts.

Expert Testimony

Zalma Insurance Consultants serves insurers, policyholders, underwriters, brokers, agents, adjusters, public insurance adjusters, lawyers and any person involved in an insurance dispute. Because he is an attorney licensed to practice law in the state of California M r. Zalma may be prohibited by California case law from acting as a consultant or expert witness and, therefore, refuses to serve in any situation where a past client of his law firm, Barry Zalma, Inc. is adverse to anyone seeking his services.

Y ou can obtain M r. Zalma’s C.V . at http://www.zalma.com and his e-book publications http://www.zalma.com/zalmabooks.htm and blogs daily at Zalma on Insurance, http://zalma.com/blog.

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The Underwriter’s Insider

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KIM KOMANDO thin, lightweight form makes them a joy to use - and carry around. Learn what goes into a killer laptop with my laptop buying guide. Then get step-by-step directions to set up your new PC or Mac in a flash.

need to learn how to use it. I can have you shooting like a pro in no time with my Essential Guides to Digital Photography.

Entry-level e-readers E-readers have really hit their stride this year. Display technology has improved, and so has the library of new and exciting e-books.

Not all e-readers are cutting edge, however. Amazon’s entry-level e-reader, the Kindle ($69), uses buttons for navigation and features a standard E-Ink Pearl display. It’s not a bad unit, but for a bit more you could have something much, much better.

See Kim Komando Page 33

Bridge Cameras Designed to fill a niche between high-end DSLRs and budget pointand-shoots, bridge cameras don’t make as much sense as they used to. Compared to point-and-shoots, bridge cameras give photographers more control over shutter speed and aperture. But they don’t offer much of an improvement in sensor size or quality. You’re also stuck with a permanent zoom lens that usually isn’t a world-beater. Mirrorless hybrid cameras, on the other hand, are the fastest-growing digital category for good reason. They rival compact cameras in size and DSLRs in sensor and lens quality. They’re systems you can grow with and keep for many years. Prices range from practical - Nikon 1 V1 ($500, with 10-30mm lens) to painful - Fujifilm X Pro 1 ($1,700, body only). Click here for more on buying a hybrid camera. If you’re interested in taking a larger step to a DSLR, I can help with that as well. Once you have your camera, you www.underwritersinsider.com

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ZALMA unless it contravenes public policy. Although policy terms that limit an insurer’s liability will be liberally construed in favor of coverage, this rule of construction only comes into play when the policy is ambiguous. With respect to the nature of the risk insured against, Hallmark’s policy makes a critical distinction between who is protected under Franklin Aviation’s liability coverage and what types of uses and risks are covered under the policy. In addition to covering Franklin Aviation as the named insured, the policy also provides coverage to “someone we [i.e., Hallmark] protect.” Persons included within that someone we protect category are determined by looking under the provisions entitled “Who Is Protected” and “Who Is Not Protected.” The clear language of the policy protects any person riding in the aircraft with Franklin Aviation’s express permission and any employee of Franklin Aviation acting within the scope of his employment, but renter pilots are specifically excluded from protection under the policy. A renter pilot is simply any person or organization who rents the aircraft from Franklin Aviation. Furthermore, the policy defines instruction and rental as Franklin Aviation’s use of the aircraft for the instruction of, or rental to, others for their pleasure and business purposes. Here, the affidavit of Mr. Verheydt established that Mr. Knezovich paid money to Franklin Aviation to rent its aircraft for a solo flight. The fact that Mr. Knezovich was operating the aircraft 34

as a student pilot in no way negated the fact that he was renting the aircraft from Franklin Aviation while he was furthering his training as a pilot. Renter pilot and student pilot are not mutually exclusive designations. We conclude that Mr. Knezovich is specifically excluded from being an insured because he was a person who was renting the aircraft from Franklin Aviation. A court must not strain to find an ambiguity where none exists and the trial court’s attempt to read some ambiguity into the provisions concerning policy coverage and the renter pilot exclusion is unavailing. The interpretation ignored the very clear provisions in part 3, paragraphs 2 and 3(b), of the policy, which establish that renter pilots are excluded from the persons insured and have no coverage under the policy. Because Mr. Knezovich, as a renter pilot, is not an insured under the terms of the policy, other provisions concerning the scope of Franklin Aviation’s coverage are not implicated and are not taken into consideration to determine the identity of who is insured under the terms of the policy. Finally, there was no need for Hallmark to expressly exclude coverage for student pilots because any student pilot renting a covered aircraft falls within the definition of renter pilots and does not constitute a protected person under the policy. Because Mr. Knezovich was not a protected person under the policy, Hallmark does not owe a duty to defend the Knezovich estate. ZALMA OPINION Three dead people pull at the heart strings when there are no deep pockets

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in which the heirs may dip their hands to recover for their loss. The trial court, faced with such a massive loss of life, attempted to do “justice” rather than the law and found an ambiguity in the policy so that the heirs could draw from the insurer’s deep pockets rather than the estate of the pilots. The Court of Appeal had empathy for those who died and their heirs but applied the law and contract of insurance as written. The insurer did not want to insure the risks of loss caused by rental pilots, probably because there was no way to underwrite the risks of each rental pilot, so they excluded any losses caused by rental pilots and clearly stated that the insurer would not insure rental pilots. The appellate court read the entire policy and found, therefore, that there was no coverage. When faced with a no coverage case, unless absolutely sure, the insurer must either defend under a reservation of rights or file a declaratory judgment action to avoid finding it has no policy defenses if found to be wrong on the decision to defend. © 2012 – Barry Zalma Barry Zalma, Esq., CFE, has practiced law in California for more than 40 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. The Underwriter’s Insider

Mr. Zalma recently published the Continued from Page 35 e-books, “Zalma on California Claims Regulations - 2013”; “Rescission of Insurance in California - 2013;” “Random Thoughts on Insurance” a collection of posts on this blog; “Zalma on Insurance Fraud – 2012″; “Zalma on Diminution in Value Damages – The just-introduced Kindle 2012,”“Zalma on Insurance,” “Heads I Paperwhite ($119) offers a touch Win, Tails You Lose — 2011,” “Arson for screen with amazing resolution and Profit” and others that are available at contrast. Plus, it has an innovative www.zalma.com/zalmabooks.htm. built-in light that makes nighttime Mr. Zalma can also be seen on World reading very comfortable. See it in Risk and Insurance News’ web based action in this video on my site. television program “Who Got Caught” with copies available at his website at The display on the Nook Simple http://www.zalma. Touch ($99) is touch-capable but otherwise a standard E-Ink Pearl display. Barnes & Noble’s solution to reading in the dark is the Nook Simple Touch with GlowLight ($139). The Nook Color ($149) features a nice multi-touch color LCD and runs a customized version of the Android operating system.

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Budget LCD TVs TV prices continue to drop, and there are bargains everywhere you look! Unfortunately, many of these deals are bargain basement. Sure, you can buy an off-brand 50-inch LCD TV for less than $500. But you’ll be getting outdated technology and a poor viewing experience. Budget LCDs have a refresh rate of 60 hertz, which can blur motion when you’re watching the big football game. Refresh rates of 120Hz and 240Hz are standard now. Many

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bargain-basement TVs also have a resolution of 720p, compared to the 1080p you want. Bargain LCD TVs are still backlit by fluorescent lights. That looked great four years ago, but it pales in comparison to LCD TVs with an LED backlight. LED TVs have gotten so good that they’re catching up to plasma screens for blackness level, color and contrast. That could also be a reason why sales of plasma TVs have dwindled to about 13 percent of the market. For larger TVs, however, plasmas have the edge over LEDs on price. You’ll pay about $1,000 for Samsung’s 60inch plasma; about $1,500 for its 60inch LED TV. If you’re going for a second TV, a bargain unit might be OK. But for your main home theater TV, you want something better. I’ve got everything you need to know about buying a new HDTV in my HDTV buying guide. Click here to read it. Then learn how to set up your home theater for the best moviewatching experience. Copyright 2012, WestStar Multimedia Entertainment. All rights reserved. Kim Komando hosts the nation’s largest talk radio show about consumer electronics, computers and the Internet. To get the podcast, watch the show or find the station nearest you, visit: http://www. komando.com/listen. To subscribe to Kim’s free email newsletters, signup at: http://www.komando.com/ newsletters. 35