The Underwriter's Insider - June 2013 by The Underwriter's Insider

Features

News

Advertising

46 U.S. Senators Vote To Turn U.S. Gun Rights Over To The United Nations

Kim Komando

Florida Fines Universal Property & Casualty $1.26 Million On Market Conduct

Inside Track

Insider Advisor

When You Win - Stop Complaining! - Expert Legal Analysis by Barry Zalma

Classifieds

North Carolina Arrests Five In Staged Accident Insurance Fraud

Say What?

Rocket Powered Bike Hits 253 MPH! & Test Your Brain - Right or Left Dominant?

Back Issues

Incredible Collection of Historical Photos & 10 New Cars With Max Horsepower!

Health Insurance Premiums Could Increase 400% Due To Obamacare

Florida Shortens Yellow Lights to Increase Red Light Camera Fines - Scandal!

The Underwriterâ&#x20AC;&#x2122;s Insider

News 15

Mulitple Florida Agencies Announce Arrests in “Operation Christmas Tree”

Tornado Damage of May 1820th Estimated $2-5 Billion Insured Losses

Gov Scott Asked To Return $110K To Insurer & Incredible Vid - WTC Spire!

Survey: Drivers Generally Befuddled When Stopped By Police

Florida Arrests 3 N. Florida Roofers for Unlicensed Insurance Activity

Confused About Benghazi? Watch This Sickening Video & Eric Holder Plays Stupid...

N. Carolina’s Wayne Goodwin Demands Apology For Public Accusation

Rep. Ted Poe (R-TX) Exposes Truth On Compact Fluorescent Bulbs

Andrea Mills Joins AEU As Director of Strategic Business Development

Georgia Agent Arrested On Charges Of Insurance Fraud - Alleged Failure To Remit

Obamacare Drives Up Insurance Dosts Up to 146% in California

www.underwritersinsider.com

Sponsors 4 6 7 15 16 18 22 23 25 32

Premium Finance Brokerage Modern Insurance Consultants Florida Insuance School St. James Insurance Company Aggressive Insurance NASA - Eclipse Agency Mgt. Accu-Auto

Encore HR Personnel Solutions Orrin R. Beilly, Esq. Barry Zalma, Esq.

The Towing & Rental Group

FYI Georgia View & News

Insurance Expo 2013! July 11-13 Duluth, Georgia

Cover Photo: © R. Manera

The Underwriterâ&#x20AC;&#x2122;s Insider

www.underwritersinsider.com

➨ Modern Insurance Consultants is a nationwide insurance agents E&O specialist and the #1 writer of agents E&O in Florida (FSLSO 2004 through 2010) ➨ Serving independent agents since 1994 ➨ One application gives you access to 18 markets writing agents E&O ➨ Modern Insurance Consultants has the E&O coverage you need • Limits available up to $10,000,000 • Premiums starting at $1,200 and deductibles as low as $1,000 • Exclusive E&O programs from A rated carriers • Insolvency, Defense Costs Outside the Limit and First Dollar Defense coverages available • 24 hour quote turnaround with our exclusive 2 page QuickQuote Application for agents and brokers available on our website

Have you been declined, non-renewed or rate increased? Apply now at www.modernins.com 1348 Old Dixie Highway Homestead, FL 33030 ph: 305.248.9495 fax: 305.248.9496 www.modernins.com info@modernins.com

The Underwriter’s Insider

ON MARCH 23, 2013, 46 US SENATORS VOTED TO TURN YOUR 2ND AMENDMENT GUN RIGHTS OVER TO THE U.N.

ashington D.C. - In the 1st Session of the 113th Congress in March of this year, Republican Senators along with support from a several Democratic Senators from western states won a narrow victory against the U.S. participating in a U.N. treaty, championed by the Obama Administration, that would have effectively placed a global ban on the import and export of small firearms to this country. The ban would have affected all private gun owners in the U.S., and had language that would have implemented an international gun registry on all private guns and ammo. www.underwritersinsider.com

Here is the list of the U.S. Senators that would have given your 2nd Amendment rights over to the U.N.: Baldwin (D-WI) Baucus (D-MT) Bennet (D-CO) Blumenthal (D-CT) Boxer (D-CA) Brown (D-OH) Cantwell (D-WA) Cardin (D-MD) Carper (D-DE)

Casey (D-PA) Coons (D-DE) Cowan (D-MA) Durbin (D-IL) Feinstein (D-CA) Franken (D-MN) Gillibrand (D-NY) Harkin (D-IA) Hirono (D-HI) Johnson (D-SD) Kaine (D-VA) King (I-ME) Klobuchar (D-MN) Landrieu (D-LA) Leahy (D-VT)

Table of Contents

Levin (D-MI) McCaskill (D-MO) Menendez (D-NJ) Merkley (D-OR) Mikulski (D-MD) Murphy (D-CT) Murray (D-WA) Nelson (D-FL) Reed (D-RI) Reid (D-NV) Rockefeller (D-WV) Sanders (I-VT) Schatz (D-HI) Schumer (D-NY) Shaheen (D-NH) Stabenow (D-MI) Udall (D-CO) Udall (D-NM) Warner (D-VA) Warren (D-MA) Whitehouse (D-RI) Wyden (D-OR) 7

June 2013 A Publication of AdMax Media Corp Corporate Offices

P.O. Box 31551 Palm Beach Gardens, Florida 33420 561.718.0745 info@underwritersinsider.com © Entire Contents 2013 AdMax Media Corp

To best navigate The Insider, begin with the Table of Contents and select your topic. On the bottom of most pages is a Table of Contents link that will immediately return you for your next topic selection. EVERY SPONSOR AD LINKS DIRECTLY TO THE SPONSOR’S WEBSITE. CLICK ON ANY AD TO VISIT OUR FINE SPONSORS!

www.underwritersinsider.com

FLORIDA FINES UNIVERSAL PROPERTY & CASUALTY INSURANCE COMPANY $1.26 MILLION

ALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty issued an Order today for Universal Property & Casualty Insurance Company (UPCIC). The Order addresses issues related to the Office of Insurance Regulation’s target market conduct final examination report, which is incorporated into this Order. UPCIC is ordered to pay an administrative fine in the amount of $1.26 million and to comply with pertinent portions of Florida Statutes and the Florida Administrative Code,

as well as, submit reports, institute corrective actions and pay restitution, if and where appropriate pursuant to Section 624.4211, F.S.

UPCIC is the second largest property insurer in Florida with more than $765 million in written annual premium and over 542,000 policyholders. The company This is a non-final Order and UPCIC represents an estimated is entitled to request 8.9% of the total an administrative Florida property hearing before insurance an independent market and has Administrative been licensed Florida Insurance Law Judge with Commissioner Kevin McCarty to transact the Division of i n s u r a n c e Administrative Hearings. The company business in the state of Florida since has 21 days to elect such a proceeding. 1997.

Table of Contents

The Underwriter’s Insider

5 THINGS TO KNOW BEFORE YOU CUT YOUR CABLE BILL

by Kim Komando

eed more proof that the world is changing? Last week, the President of the National Cable & Telecommunications Association, Michael Powell, told the Senate that “the largest subscription video provider in the country today is Netflix.” If you haven’t paid attention to the entertainment landscape for the last few years, Netflix is an online streaming video service. You pay $8 a month and can watch all the TV shows and movies you want on your computer, mobile gadgets or TV. It was the first, and not the last, serious challenge to the cable companies’ dominance. Even if cable companies won’t admit it, they’re working hard to stay relevant a g a i n s t growing

competition from Netflix, Amazon, Google Play, Hulu, iTunes, YouTube and many other online video services. Millions of consumers have already been lured away from cable with promises of lower prices and the freedom to watch what they want, when they want. I know, because I’m one of them. Of course, like any big change to new technology, there are challenges to overcome. Here are five things I’ve discovered that will help make your transition easier - or might convince you to wait a bit longer to make the jump.

Know what’s available Watching what you want, when you want is like a dream come true. Once you try it, you’ll never want to go back to scheduled

programming. Unfortunately, finding ways to watch all your favorite shows and movies is a bit of stumbling block. You might find some are available on Hulu, YouTube or other free TV and free movies sites. Many will only be available on a paid subscription service, such as Netflix, Amazon or Hulu Plus, which generally cost you $7 to $8 a month. Not every service carries every show, so you could be forced to sign up for multiple services. Due to licensing restrictions, some shows are only available as paid digital downloads on iTunes, Google Play and Amazon. These can cost $1 to $2 per episode, and they might not be available the same time the episodes air. Buying a full season of a show can set you back from $20 to $50, just like a regular DVD box set. You can see how this starts to add up quickly. If you don’t plan ahead, you might find yourself paying as much as cable to keep up with everything. You could visit the major streaming sites and look through their catalogs to find out what shows and movies they have. Or you can visit a site like Can I Stream It? It will tell you which online providers have the shows you want to watch.

Don’t miss out on live TV While on-demand viewing is nice, some people still want the option to watch live TV. It’s great for news and sports, two things streaming

See Kim Komando Pg 33 www.underwritersinsider.com

Table of Contents

WHEN YOU WIN – STOP COMPLAINING! Expert Analysis by Barry Zalma, Esq. No Good Deed Goes Unpunished

Prior Suit

n a prior lawsuit, Edmond and Rhonda Bisland sued Richard Simmons and Lindig Construction and Trucking, Inc. (“Lindig”) for injuries that Edmond sustained in a car accident. At the time of the accident, Financial Indemnity Company (“Financial”) was the insurer for Lindig. The Bislands initiated a lawsuit against Financial arguing, among other claims, that Financial breached the terms of its insurance policy by failing to timely pay on the judgment they had obtained against Lindig.

Before trial in the prior suit, Simmons and Lindig “stipulated to negligence and vicarious liability,” and a trial was held regarding damages. At the conclusion of the trial, the jury awarded a total of $2,557,000 and also awarded prejudgment and post-judgment interest on the award. The award exceeded the limits for the insurance policy covering Lindig and Simmons. Barry Zalma, Esq., CFE is a California attorney specializing in insurance coverage, insurance claims handling and fraud who serves as a consultant and expert for insurers and policyholders. He founded Zalma Insurance Consultants in 2001 and serves as its senior consultant. He recently published an e-book, “Insurance Fraud,” which is available at his Web site, www.zalma.com. Go to Zalma Books at http://www.zalma.com/zalmabooks.htm.

After a trial, the jury found in favor of Financial. Subsequent to the jury rendering its decision, the Bislands moved for judgment notwithstanding the verdict and argued that Financial breached its policy and that they were entitled to damages as third-party beneficiaries to the policy. After considering the Bislands’ assertions, the district court granted the motion for judgment notwithstanding the verdict. Financial appealed and in Edmond L. Bisland Iii and Rhonda T. Bisland v. Financial Indemnity Company,

Join Barry Zalma’s new Blog:

http://www.zalma.com/blog

Or Properly Unitrin County, No. 03-11-00228-CV (Tex.App. Dist.3 05/02/2013) the Texas Court of Appeal resolved the dispute.

Background In 2004, Simmons worked for Lindig. While driving one of Lindig’s trucks, Simmons rear-ended a car driven by Edmond Bisland. As a result of the accident, Edmond sustained significant injuries, including injuries to his spine. Consequently, Edmond and his wife, Rhonda Bisland, filed suit against Simmons and Lindig.

Table of Contents

After the appeal in the prior suit was filed, Simmons entered into an agreement with the Bislands under which he agreed to assign to them any claims that he had against Financial. In exchange, the Bislands agreed to not enforce the prior judgment against Simmons and to release him from all liability under that judgment. Similarly, Lindig entered into an agreement with Financial under which Lindig agreed to waive any potential claims against Financial in exchange for Financial agreeing to fully cover the costs of the prior judgment against Lindig and Simmons even if those damages exceeded the policy limits. Subsequent to Simmons and Lindig entering their respective agreements, the appeal in the prior suit became final, and this Court affirmed the district court’s judgment. Sometime See Zalma Pg 31 The Underwriter’s Insider

N. CAROLINA ARRESTS FIVE IN STAGED ACCIDENT INSURANCE FRAUD Two others wanted for suspected insurance fraud

ALEIGH -Insurance Commissioner Wayne Goodwin today announced the arrest of five people in an insurance fraud scheme involving a staged auto accident in Durham County. The Department of Insurance requests assistance from the public in locating two additional suspects. Natoyia Barbee, 29, of Wyldewood Drive, Durham, was charged with one count each of obtaining property by false pretense, attempting to obtain property by false pretense, conspiracy to obtain property by false pretense,

and two counts of insurance fraud. Barbee was placed under a $30,000 secured bond. Ernest Bostic, 30, 3439 Glasson St., Durham, was charged with one count each of obtaining property by false pretense and attempting to obtain property by false pretense, as well as two counts each of conspiracy to obtain property by false pretense and insurance fraud. The bond amount for Bostic has not been set; Bostic was incarcerated at the time of the arrest. Tomika Green, 33, of 1819-D Haverford Road, Durham, was charged with two counts each of obtaining property by

ROCKET POWERED BIKE SETS NEW WORLD RECORD AT 263 MPH, AND YES, THE GUY ON THE BIKE MUST BE

CRAZY

www.underwritersinsider.com

false pretense, conspiracy to obtain property by false pretense, insurance fraud and misdemeanor child abuse. Green was placed under a $20,000 secured bond. Walter Harris, Jr., 36, 1512 Wabash St., Durham, was charged with one count each of obtaining property by false pretense, conspiracy to obtain property by false pretense and insurance fraud. The bond amount for Harris has not been set; Harris was incarcerated at the time of the arrest. Lachuante Rankin, 30, of 300 Macon St., Durham, was charged with one count each of obtaining property by false pretense and attempting to obtain property by false pretense, as well as two counts each of insurance fraud and misdemeanor child abuse. Rankin was placed under a $30,000 See Stated Accidents Page 12

DO YOU USE MORE OF YOUR RIGHT BRAIN OR LEFT BRAIN? TAKE THIS QUICK TEST:

Table of Contents

Continued From Page 11

STAGED ACCIDENTS

secured bond. Department of Insurance criminal investigators allege that between May 4, 2011, and May 22, 2011, the suspects staged three automobile accidents, during which several suspects claimed to be injured and submitted fraudulent insurance claims to Nationwide Insurance Company and Progressive Insurance Company. Nationwide and Progressive representatives alerted the Department of Insurance after discovering that all three accidents involved the same suspects as either passengers or drivers. More than $14,000 had been paid by the insurance companies to the suspects for their medical claims. The alleged child abuse charges stem from allegations that Green and Rankinâ&#x20AC;&#x2122;s children were passengers in the vehicles during the time of the staged accidents.

THE ENTIRE MICROSOFT STAFF IN 1978 - AND OTHER AMAZING HISTORICAL PHOTOGRAPHS

ake a quick break and review some of the most amazing historical photographs assembled on a single Internet site: [CLICK HERE]

10 NEW CARS BOASTING THE MOST HORSEPOWER INCREDIBLE!

Investigators are seeking two additional suspects in association with this case. They are: Antoinette Henderson, 26, of 348 Kilarney Drive, Durham, is wanted for one count each of attempting to obtain property by false pretense, conspiracy to obtain property by false pretense and insurance fraud. Lenora Jackson-Wilson, 41, 3507 Century Oaks Drive, Durham, is wanted for one count each of obtaining property by false pretense, conspiracy to obtain property by false pretense and insurance fraud.

Table of Contents

The Underwriterâ&#x20AC;&#x2122;s Insider

WASHINGTON EXAMINER: HEALTH INSURANCE PREMIUMS COULD INCREASE 400% AS A RESULT OF OBAMACARE

ashington D.C. - The Affordable Health Care Act? Really? Not according to 17 of the nation’s largest health insurance companies who predict that premiums will at least double - some saying they will soar to 400% of current prices. The 17 companies include Aetna, Blue Cross Blue Shield and Kaiser Foundation. According to a recent report by the Washington Examiner, “New regulations, policies, taxes, fees and mandates are the reason for the unexpected “rate shock,” according to the House Energy and Commerce Committee, which released a report Monday based on

internal documents. One company said that new participants in the individual market could see a premium increase of 413 percent when new requirements on age rating and required benefits are taken into account, said the report. “The average yearly cost for a new customer in the individual market grows from $1,896 to $3,708 -- a $1,812 cost increase.”

not be able to afford the law’s higher costs.”

The report concluded: ““Despite promises that the law will lower costs, [Obamacare] will in fact cause the premiums of many Americans to spike substantially. The broken promises are numerous, and the empirical data reveal that many Americans, from recent college graduates to older adults, will

Small businesses (like mine) are soon going to be in a position where they can’t provide any health insurance -- even the terrible high-deductible plans we now have; and would-beentrepreneurs by the thousands will continue to stay at jobs they hate, and never start businesses that could succeed, because they are afraid of losing their health insurance.

SCANDAL: FLORIDA INTENTIONALLY SHORTENS YELLOW LIGHTS - TO INCREASE RUNNING RED LIGHT CAMERA FINES!

Ohiowordguy, blogger, in response to the Examiner article offers this interesting perspective: “The average person has NO idea how totally and completely this whole healthcare issue has crippled our economy.

When you talk to entrepreneurs (read: job creators), access to health insurance is, BY FAR, the main reason many never venture out on their own. Very sad; the next Google, Apple or even cure for cancer may never happen because the brainchild is afraid of losing his/her insurance.”

FREE CLASSIFIEDS! HELP WANTED — POSITION WANTED 4 — SALE ITEMS

CLICK HERE! www.underwritersinsider.com

Table of Contents

INSURE.COM SURVEY OF MARRIED ADULTS SHOWS MEN MORE DECEPTIVE ON ACCIDENTS AND TICKETS THEN THEIR WIVES

hen your spouse drives away from home, there’s a good chance they’re harboring some secrets about their driving. Like having dinged the car and blamed someone else, or knowing they’re driving uninsured.

In a new survey of married adults by Insure.com: 35 percent of respondents admitted to dinging the car and telling their spouse someone else did it. 25 percent said they’d received a traffic ticket and kept it secret from their spouse. 24 percent said they’d kept a car accident secret from their spouse. 19 percent hadn’t told their spouse that they had forgotten to pay an auto insurance bill. 15 percent admitted they had knowingly driven without car insurance but not told their spouse. Men have a higher propensity for lying across the board. When results for wives vs. husbands were examined, Insure.com found that 42 percent of men dinged the car and blamed someone else, compared to 27 percent of women. Married men also display a high distrust of their wives, albeit 14

unfounded. Husbands suspect their wives of lying far more than their wives actually do.

See the full article at http://www. insure.com/car-insurance/spouselies.html. Insure.com surveyed 1,000 U.S. married adults in March 2013.

38 percent of men think “it’s possible” or know that their wives kept a car Editor’s Note: Like many surveys, accident secret. Yet only 17 percent Insure.Com’s may have failed to ask of wives say they’ve done so. all the right questions. For example, “Why would you be afraid to tell your 32 percent of men think “it’s possible” spouse about an accident or ticket?” or know that their wives have kept The reason for the men’s secretivness a traffic ticket secret, but only 16 may have been the “rolling pin” effect, percent of women say they’ve kept i.e., they may have been more fearful mum about a traffic ticket. of their wive’s reaction then were the wives of their husband’s reponse for a “I suspect men are assuming that similar disclosure. I’m just sayin’... women have the same capacity for deception that they do,” said Amy About Insure.com Danise, editorial director for Insure. com. Insure.com is a comprehensive resource of consumer insurance information Conversely, Insure.com’s survey and data. The website features articles, shows that wives are far too trusting. news and tools on auto, home, health and life insurance topics; life insurance 23 percent of wives say “it’s possible” quotes; and car insurance comparison or they know their husbands have tools. Consumers have access to free hidden a car accident, while 31 car insurance quotes and guidance on percent of husbands say they’ve finding the right insurance policy, saving done it. money and solving claims problems. Insure.com is owned and operated by 25 percent of women say “it’s QuinStreet, Inc. (NASDAQ: QNST), one of possible” or they know their the largest Internet marketing and media husbands had secret traffic tickets, companies in the world. QuinStreet is while 34 of husbands admit they did. committed to providing consumers and businesses with the information “Women may see the family’s car they need to research, find and select insurance rates rising and not realize the products, services and brands that their husbands’ deceptive behavior best meet their needs. The company is is money out of their pockets,” said a leader in visitor-friendly marketing Danise. practices. For more information, please visit QuinStreet.com.

Table of Contents

The Underwriter’s Insider

MULTIPLE FLORIDA STATE AGENCIES ANNOUNCE ARRESTS IN ‘OPERATION CHRISTMAS TREE’

Investigation involved 3 arson fires set to defraud insurance companies

ALLAHASSEE – Florida Chief Financial Officer and State Fire Marshal Jeff Atwater, Marion County Sheriff Chris Blair and the Bureau of Alcohol, Tobacco, Firearms and Explosives today announced multiple arrests in “Operation Christmas Tree,” an investigation into a series of residential structure fires in Marion County. The investigation resulted in the arrest of five individuals charged with organized fraud, arson and burning to defraud the insurer.

www.underwritersinsider.com

“Last year alone, arson cost Floridians more than $69 million in property damage and endangered the lives of honest, hard-working individuals,” CFO Atwater said. “I am proud of the diligent, collaborative efforts across state and local law enforcement. Our efforts together led to the arrests of these criminals.” "We are elated over the outcome of this investigation and proud of our agency partnerships in Operation Christmas Tree," said Sheriff Blair.

Table of Contents

The investigation revealed that three fires in Marion County had been intentially set and fraudulent insurance claims filed associated with these fires. Further information revealed that the scheme to defraud was orchestrated by Rocky Edward Williams, Sr, who provided counsel and funding to the occupants for the scheme. Additional residential structure fires may be related to the scheme and the investigation into these fires continues. 15

INCREDIBLE VIDEO! WATCH THE SPIRE OF THE NEW WTC BEING PUT IN PLACE

MASSIVE TORNADO DAMAGE OF MAY 18TH-20TH ESTIMATED BETWEEN $2-5 BILLION IN INSURED LOSSES

ccording to a report by Reuters: “At the high end of the range, the tornado outbreak may rank as the secondworst ever in terms of insured losses, behind the late-April 2011 twisters that devastated Tuscaloosa, Alabama, and other communities.” [MORE]

Fla. Gov. Scott Asked to Return $110,000 To Insurer That Won Unique Deal

ALLAHASSEE, Florida — A backlash is quickly growing against the decision of Florida's largest property insurer to shift thousands of policies to a start-up insurance company. Just two days ago Citizens Property Insurance Corp. narrowly approved an ... [MORE]

Table of Contents

The Underwriter’s Insider

A NEW SURVEY BY INSURANCE.COM SHOWS DRIVERS ARE GENERALLY BEFUDDLED WHEN STOPPED BY POLICE “I Couldn’t See the Sign” is No. 1 Excuse When Pulled Over, According to Insurance.com Survey

wasn't even supposed to be driving!" Among people who have used this excuse, 90 percent were men. Among people who said they have used the excuses listed above, here are the differences in men vs. women:

Insurance.com By now, police officers can probably finish people’s sentences. I wonder if they wouldn’t appreciate a little dog-ate-myhomework creativity. Plead ignorance. That’s the most-used excuse when drivers are pulled over for a traffic violation, according to Insurance. com’s new “Ticketmasters” survey. Among people who said they have used excuses when pulled over by a police officer, here’s how explanations break down: 1. I couldn’t see the sign telling me not to do it: 20.4 percent 2. I’m lost and unfamiliar with the roads: 15.6 percent 3. I didn’t know it was broken: 12.4 percent 4. Everyone else was doing it: 6.4 percent 5. I’m having an emergency situation in my car. (For instance, spilled a hot drink on your lap.): 5.4 percent 6. I missed my turn/exit: 4.8 percent 7. I had to go to the bathroom: 4.6 percent 8. I didn’t do anything dangerous: 4.2 percent 9. I was on my way to an emergency. (For example, to help someone who is ill or injured.): 4 percent 10. My GPS said it was the right thing to do: 2.2 percent 11. I’m just helping out; I wasn't even supposed to be driving. (For example, your friend is intoxicated.): 2 percent “By now, police officers can probably finish people’s sentences,” said Michelle Megna, managing editor of Insurance.com. “I wonder if they wouldn’t appreciate a little dog-ate-myhomework creativity.”

Helping out

I couldn't see the sign telling me not to do it. Men: 38 percent Women: 62 percent I’m lost and unfamiliar with the roads. Men: 35 percent Women: 65 percent I didn’t know it was broken. Men: 39 percent Women: 61 percent Everyone else was doing it. Men: 56 percent Women: 44 percent I’m having an emergency situation in my car. (For instance, spilled a hot drink on your lap.) Men: 67 percent Women: 33 percent I missed my turn/exit. Men: 54 percent Women: 46 percent I had to go to the bathroom. Men: 35 percent Women: 65 percent I didn’t do anything dangerous. Men: 71 percent Women: 29 percent I was on my way to an emergency. (For example, to help

Men are more likely to rationalize their driving behavior by saying they were being altruistic – "I'm just helping out. I www.underwritersinsider.com

Table of Contents

See Driver’s Befuddled Page 21 17

Breaking Industry News

ccording to a story by PropertyCasualty360.com, “The West Fertilizer Co. carried $1 million in liability insurance provided by United States Fire Insurance Co., a member of Morristown, N.J.-based Crum & Forster, which is part of the Fairfax Group. A spokesman for Adair Grain Inc., the parent company of West Fertilizer, says the company did not have excess or umbrella coverage. The Insurance Council of Texas estimates insured property losses are $100 million. The total includes estimated insurance payments for the plant, 140 homes, an apartment complex, a middle school and a retirement center.”

following a terrorist event without further economic disruption.”

ccording to a recent poll by Pew Research Center, “The U.S. gun homicide rate was 49% lower in 2010 than in 1993, and other violent gun crime fell even more steeply. Despite the marked drop, 56% of Americans believe gun crime is higher today than 20 years ago; just 12% think it has gone down. Gun violence plunged in the 1990s, accounting for most of the decline. The downward trend has slowed since 2000.” [More]

eigh Ann Pusey, president and CEO of the American Insurance Association (AIA), issued pecialty Agents of Florida cancelled the following statement in response their trade fair scheduled for May to May’s introduction of the “Fostering 18th in Daytona Beach resulting from Resilience to Terrorism Act of 2013” sponsored by Rep. Bennie Thompson (D-MS). Rep. Thompson’s legislation would extend the Terrorism Risk Insurance Act (TRIA) for 10 years, designates the U.S. Department of Homeland Security to become the “lead” agency in the certification process, and adds a provision on information sharing for the insureds. “The Terrorism Risk Insurance Program continues to protect our nation’s economy. In the years since September 11, 2001, the program has provided much needed market stability and predictability for recovery after an event while limiting the exposure of taxpayers to losses. This public-private shared loss partnership frees up capital for business expansion and has helped assure businesses that there can be orderly recovery 18

Table of Contents

a lack of support from sponsoring companies. A message from President Shane Griffis, President of Specialty Agents of Florida: “The Board of Directors of Specialty Agents, and I would like to thank you for your current and past support. It is with great regret that we have to inform you that we must cancel this year’s Trade Fair which was due to be held on Saturday May 18th at Daytona Beach Hilton. This was a difficult choice to make; we have always put on a quality trade fair with the support of agents and the insurance community. We didn’t get the support this year as we have in the past, lack of sponsorships and booths, as we all know without full support of the insurance community we would have a trade fair that is not up to our standards or yours. Therefore, on behalf of the board, I would like to apologize for the cancellation, especially to those of you who have already made travel and accommodation plans. Unfortunately, these were circumstances which were beyond our control.”

The Underwriter’s Insider

he Florida Office of Insurance Regulation (Office) is conducting a public hearing to review the proposed rate filing for American Security Insurance Company’s property collateral protection program, also known as “lenderplaced” or “force-placed” insurance. American Security is an admitted Florida insurer and has the largest market share of lender-placed policies with more than 142,000 representing a total premium of $508 million.

race in Indiana. Former longtime St. Joseph County Democratic Party Chairman Butch Morgan Jr. faces multiple felony conspiracy counts to commit petition fraud, and former county Board of Elections worker Dustin Blythe is charged with nine felony forgery counts and one felony count of falsely making a petition of nomination.” It seems, lately, there is no end to the disclosures of fraud and corruption within the Obama/ Clinton camp.

n an effort to inform drivers of insurance highs and lows, Rate Digest, provider of cheap car insurance online, has researched the most and least affordable states for auto insurance. According to a recent study from Insure.com, the states of Louisiana and Michigan have average annual premiums of $2,600 and $2,520 respectively. As mentioned, the auto insurance market fluctuates greatly with the driving behavior of each citizen, and the state of Louisiana is no exception. Statistics reveal that more bodily injury claims are filed due to automotive accidents than in any other state. This is just one reason why insurance companies have raised premiums in the state. As a result, Louisiana is listed as the most expensive state to buy auto insurance.

oxnews, along with a few more reluctant networks, recently reported that, “The trial is underway for a former Democratic official and a Board of Elections worker who are accused of being part of a plot that has raised questions over whether President Obama’s campaign -when he was a candidate in 2008 -- submitted enough legitimate signatures to have legally qualified for the presidential primary ballot. The two face charges of orchestrating an illegal scheme to fake the petitions that enabled then-candidates Obama, and Hillary Clinton, to qualify for the www.underwritersinsider.com

pplied Systems announced in May that KFSA has selected Applied Epic to automate agency operations on a single software platform across its four locations in the states of Kansas and Colorado. The agency also chose Applied MobileProducer to provide its insurance producers with an advanced productivity app for accessing client information through wireless tablets. KFSA selected the Applied Epic system to increase productivity and operational efficiency while minimizing exposure to errors and omissions. Applied MobileProducer provides KFSA with a powerful mobile application that maximizes business and customer service opportunities for producers while they are away from their agency office. Applied MobileProducer is the first and only independent agent mobile application designed specifically for insurance producers to provide them instant access to client information. Its intuitive interface gives producers personalized access on-demand to their client data, enabling them to increase sales, retention and customer satisfaction. In addition to connecting to data in their agency management system, producers can communicate through e-mail, add activities, leverage GPS technology to map accounts and coordinate daily schedules.

Table of Contents

he Denham Agency, an Americusbased insurance agency, is the 14th Keystone Insurers Group partner in Georgia. The announcement was made jointly in May by The Denham Agency President Mike Denham and Keystone’s Georgia State Vice President Kaye Garruto. “The Denham Agency is proud to be the newest Keystone partner in Georgia,” noted Denham. “The partnership will allow us to better serve our present and future clients in all areas of insurance including personal insurance, business insurance and benefits. While remaining independent and locally owned, we are joining an organization that will enable us to take our product offerings and services to a much higher level.”

onder why California is broke and business is leaving? A law is moving through the CA legislative process that would prohibit California businesses from firing or retaliating against employees who take advantage of the state’s paid family leave program. According to a May AP report: “The legislation would protect workers who use the California Paid Family Leave insurance program, which allows qualified employees to take up to six weeks off with partial pay. Supporters say nearly 37 percent of workers who needed the leave did not apply for the benefit for fear of being fired, angering their employers or hurting their chances at promotion. They cited a 2011 study by the leftleaning Center for Economic and Policy Research based in Washington, D.C. Employer groups including the California Chamber of Commerce and the California Restaurant Association oppose the bill. It would transform an employee-paid insurance program meant to replace lost wages into a protected leave of absence, a move that increases costs to all employers, especially small businesses, said Jennifer Barrera, a lobbyist for the chamber.” 19

FLORIDA ANNOUNCES ARREST OF THREE NORTH FLORIDA ROOFERS FOR UNLICENSED INSURANCE ACTIVITY

ALLAHASSEE Florida Chief Financial Officer Jeff Atwater announced today the arrests of Derek Shawn Kellog, 31, Crawfordville; Corey Jermaine Brownlee, 30, Jacksonville; and Sean McCaslin, 49, Tallahassee; employees of Roofmasters, Inc., for acting as unlicensed public adjusters while

soliciting homeowners for roof repairs in the Tallahassee area. An investigation by the Department of Financial Services’ Division of Insurance Fraud revealed that Roofmasters, Inc., based in Jacksonville, used high-pressure sales tactics and informed homeowners they were “insurance specialists” and could assist them in dealing with their insurance companies. Company literature notes that homeowners may be entitled to a new roof with no out-of-pocket expense. Roofmasters, Inc. submitted an insurance claim on behalf of a homeowner, violating Florida law. Kellog, Brownlee and McCaslin were booked into Leon County Jail. If convicted, they each face up to 5 years in prison. CFO Atwater encourages Floridians to Verify Before You Buy to ensure that the insurance adjuster, agent or company you are dealing with is licensed to transact business in Florida.

GEORGIA ARSON DOG SMOKEY DEAD AT AGE 11 - HAD SUCCESSFUL CRIMEFIGHTING CAREER

tlanta – Insurance and Safety Fire Commissioner Ralph Hudgens announced today that Smokey, the state’s fifth arson dog, passed away this morning after a brief illness. “We’ll always remember Smokey as a valuable employee in the fight against arson,” Hudgens said. “His death leaves a great sadness within

the entire Department.” Smokey, an arson detection Labrador retriever, began his training in September 2003 at the Maine State Training Center in Alfred, Maine. He came to work in Georgia in October 2003 as the fifth arson canine in the state to serve the law enforcement and fire service communities.

“Many people want the government to protect the consumer. A much more urgent problem is to protect the consumer from the government.”

The late Milton Friedman Champion of Economic Freedom Slayer of Keynesian Theory

Between October 2003 and April 2013, Smokey and his handler, Investigator Ken Palmer were involved in over 700 fire investigations around the state. Smokey’s specialized training allowed him to determine if accelerants were used to start a fire. This ability led to the arrest of numerous arson suspects, which included arrests for murders that involved arson. Born July 2001, Smokey worked his last assignment on March 30, 2013, which was a house fire in Catoosa County. That fire which was determined to be arson.

The Underwriter’s Insider

Continued From Page 17

BEFUDDLED DRIVERS someone who is ill or injured.) Men: 55 percent Women: 45 percent

IF YOU’RE CONFUSED ABOUT THE DEBACLE IN BENGHAZI AND YOU WANT TO LEARN THE SICKENING TRUTH CLICK ON THIS VIDEO...

My GPS said it was the right thing to do. Men: 82 percent Women: 18 percent I'm just helping out. I wasn't even supposed to be driving. (For example, your friend is intoxicated.) Men: 90 percent Women: 10 percent “In the end, the excuses don’t matter. Your driving record doesn’t have asterisks and footnotes,” said Megna.

Tips for traffic stops If you are pulled over, no matter what your excuse is, here’s what to do: 1. Acknowledge the officer’s presence by turning on the right turn signal. 2. Move your vehicle to the right shoulder of the road as soon as it is safe to do so. 3. Turn on your hazard lights. 4. Turn off your radio. Do not make a phone call. 5. Remain inside your vehicle. 6. Place your hands in clear view; for example, on your steering wheel.

INSTANT CLASSIC: HOLDER PLAYS STUPID OVER AND OVER AND OVER AND OVER... The “Most Transparent Administration Ever”

Methodology Insurance.com commissioned a survey of 500 licensed drivers age 18 and over. The survey was fielded in February 2013.

www.underwritersinsider.com

N.C. INSURANCE COMMISSIONER WAYNE GOODWIN DEMANDS CORRECTION AND APOLOGY FOR PUBLIC ACCUSATION

ALEIGH -Insurance Commissioner Wayne Goodwin is calling on North Carolina Department of Health and Human Services Secretary Aldona Wos to publicly correct and apologize for falsely and personally blaming him for the state's rejection of Medicaid expansion. According to press reports, when questioned by a local physician about the state's decision to reject Medicaid expansion and its effects on the state’s uninsured population, during a May 10 forum at Annie Penn Hospital in Reidsville, Secretary Wos stated:

"…in North Carolina, based on our constitution, the issue of Medicaid expansion or not, actually, was the commissioner of insurance’s. Just so that you all know that and are aware of that."

me of being the cause for the state’s rejection of Medicaid expansion. Senate Bill 4 — the legislation that rejected the expansion of Medicaid in North Carolina — was passed by the General Assembly and signed into law on March 6 In response, Insurance by the Governor. That Commissioner decision was not within N. Carolina Ins. Comm. Goodwin said, "I my constitutional Wayne Goodwin am offended and authority. I trust that the truly disappointed that Secretary Secretary will swiftly issue a correction Wos decided to incorrectly accuse and apologize for her statement."

Table of Contents

The Underwriter’s Insider

“The Final Authority on Everything!” Social Insecurity

lthough I never thought I’d see the day, I’m going to be 62 this year and I’m eligible for Social Security. I know that if I wait longer to apply, the benefit amount increases but I’m not sure how to calculate the wisest course to maximize my benefit over the long term. I’d appreciate any assistance the Advisor can offer. I love the Insider - can I still receive if I retire? J.D. Atlanta, GA Your question will be one asked often by “baby boomers” moving into retirement age - and it does require some analysis. The first question you need to ask yourself is this: “How long am I going to live?” If you are in excellent health and plan on living to age 100 like both of your parents, you may decide differently from someone morbidly obese with a family history of premature death due to heart disease. If you have a reasonable belief that you will not survive beyond, say, age 75, you clearly want to begin taking benefits as early as possible. Conversely, you may do better by waiting longer to take your benefits if you have reason to believe you will live long - and don’t participate in base-jumping, motocross racing or mountain climbing. According to the SS administration, you may start receiving benefits as early as age 62. However, if you start your benefits early, your benefits is reduced about one-half of 1 percent for each month you start your Social Security before your full retirement age. For example, if your www.underwritersinsider.com

ADVISOR

full retirement age is 66 and you sign up for Social Security when you are 62, you would only get 75 percent of your full benefit. Sounds like a person should wait to receive more? Not necessarily... The Advisor ran the numbers on a typical recipient born in 1951 and eligible for $1659 per month now at age 62 - or $2200 if they wait till age 66. If you take your benefits now, you will have already received just under $80,000 before your 66th birthday. If you wait to age 66 to begin benefits - you will be in your 78th year before you break even on total benefits paid - much longer (well into your eighties) if you account for the time value of the $80,000! The Advisor says to take your benefits now and don’t bet on living to 100. Like it or not, the average life span for a person living at 65 years is another 19.1 years - or age 84. If you

Table of Contents

die at a younger age and waited until 66 to take your benefits, you lost! In our opinion, J.D., it makes no sense to gamble that you are going to beat that statistic by a sufficient amount to risk losing that initial $80,000. Note also: If you work but start receiving benefits before full retirement age, $1 in benefits will be deducted for each $2 in earnings you have above the annual limit. In 2013, the limit is $15,120. In the year you reach your full retirement age, your benefits will be reduced $1 for every $3 you earn over a different annual limit ($40,080 in 2013) until the month you reach full retirement age. Once you reach full retirement age, you can keep working, and your Social Security benefit will not be reduced, no matter how much you earn. And Don’t worry about The Insider - you will continue to receive your copy!

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. Ads run 3 mo.

Hiring Referral Agents Now! Needed Referral Agents All Over The State and Beyond. Fantastic Program that is storming the state. Tremendous Benefits available. 200% Commission. Call me at 321-266-8089 or email me at AAINSCTR@yahoo.com 10-4

220 Producer Anywhere in Florida Well established commercial agency specializing in workersâ&#x20AC;&#x2122; comp seeks agents. Can be located anywhere in Florida. Great markets and commission splits. Leads and excellent support. Can be full or part time - no quotas. GL and other markets also available. Send resume or e-mail of interest to: pcbizbuyer21@gmail.com 9-5

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 24

CSR and Licensed Producers for Norcross GA office GA based agency going for expansion needs CSR ( two) and licensed producers (two), attractive salary OR commission offered to a right candidate with a minimum of two years experience & honest, hard working candidates are welcome, Please e-mail your resume ASAP. Contact: girish_talati@hotmail.com 10-3

Dir of P&C Claims, LV, NV Claims Director or Manager position wanted. 20 years experience in non-standard P&C Ins Claims for NV, NM, & AZ. 60+ employees supervised; including Claims, SIU, & Legal. Corporate budget & goal planning. Contract negotiations for all states. Resume & References available upon request. Available immediately for hire. Home is LV, NV. However, would consider southern California opportunity as well. Please contact @ 702-292-4215 or captainpaul52@gmail.com 10-1

CSR 440 or 220 Agent N Miami area Looking for a 2-20 agent or CSR Bilingual ( English-Spanish ), Excelent on Customer service Email resume to jamie@ jmendezandassociates.com 10-1

Table of Contents

Ambitious Recent FSU Graduate With Florida 2-20 License Looking For Real Opportunity in P&C Insurance Industry Tampa Area Preferred Recent Florida State University Grad with a major in marketing and risk management/insurance coursework seeking a salary/ commission position in an established agency, MGA, brokerage or carrier. Willing to canvas, willing to cold call. Please - NO telemarketing positions. Fast learner/hard worker. Please contact me at: fsurecruit12@gmail.com for resume.

10-5

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 @ 305-225-9550 or: yudanis@optioninsurancesolutions. com

9-6

The Underwriterâ&#x20AC;&#x2122;s Insider

“INTELLIGENT” RIFLE MAKES PERFECT SHOTS

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

www.underwritersinsider.com

FREE CLASSIFIEDS HERE Foreign Insurance Organization Wanted Part-time position wanted to represent, administrate or manage London or other foreign insurance organization in any U.S. states. I have all state insurance licenses required. Contact:dnmiweiss@yahoo.com 9-6

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

Table of Contents

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 we’ll get you online.

HERE! Gainesville Area 4-40 or 2-20 Needed Insurance Den Inc needs a 2-20 or a 4-40 licensed agent. Email insuranceden@ aol.com or fax 352-628-5619 or phone 352-628-2331 10-5

SAY WHAT? Notable Quotes You May Have Missed!

Village Idiot - Or Pretty Damn Smart?

“President Bush is smarter than almost every one

potentially liable for the difference. Many times agents do not truly understand the policies they are selling and do not present you with the policy at the time of sale. Often after purchasing a policy through an agent, it’s not until you receive the actual policy in the mail – or, even worse, after a tragedy like the West Fertilizer Plant explosion – before you find out the policy does not afford you the coverage the agent represented.” - Houston attorney Ben Bronston, of the law firm Ben Bronston & Associates after the Texas fertilizer plant explosion - not missing the opportunity to malign insurance agent.

of you. For more than six years So What’s Your Point Michael? it was my job to help educate President Bush about complex economic policy issues and To get a sense of how much Floridians pay to get decisions from him insurance companies every year, consider this: on impossibly hard policy The state’s upcoming annual budget is $74.3 choices. In meetings and in billion. Insurance coverage costs us more: roughly the briefing materials we gave $112 billion and rising, according to state figures. him in advance we covered That includes premiums for auto, life, health/ issues in far more depth than medical and homeowners/windstorm policies. In I have been discussing with 2006, the total was around $90 billion. It means you this quarter because we we’ve weathered overall insurance increases needed to do so for him to of roughly 24 percent the past six years. Geez, make decisions. President glad we haven’t had a hurricane strike in that Bush is extremely smart by Pres. George W. Bush time. And it’s no wonder why I seem to field calls any traditional standard. Sorry, But No Dummy every week from people fed up with high rates – He’s highly analytical and was working folks worried about getting priced out of incredibly quick to be able to homes, teachers griping about soaring family health discern the core question he needed to answer. It was care premiums and drivers wondering why auto rates occasionally a little embarrassing when he would keep going up even after ballyhooed changes to the jump ahead of one of his Cabinet secretaries in a personal injury protection (PIP) system. - Sun Sentinel policy discussion and the advisor would struggle to Columnist Michael Mayo, lumping every possible line of catch up. He would sometimes force us to accelerate insurance together, thereby badly weakening whatever through policy presentations because he so quickly point he was attempting to make, in a May 11th column grasped what we were presenting. I use words like critical of the industry. briefing and presentation to describe our policy meetings with him, but those are inaccurate. Every meeting was a dialogue, and you had to be ready The Buck Stops... Somewhere Else! at all times to be grilled by him and to defend both your analysis and your recommendation. That was Speaking of Attorney General Eric Holder, this scary.” - Keith Hennessey, professor at Stanford University also reminds me of the Fast and Furious gunrunning takes on the public caricature of President George W. Bush scandal, in which everyone at the attorney general’s as somehow not quite bright, relating what he tells his office seems to have known about a scheme to sell Stanford students about his experience in the Oval Office. guns to Mexican drug cartels—everyone, that is, GW’s approval rating and historical rank continue to except the attorney general. That’s bad if it’s not true, improve as time passes and the far-left media points their because it means there ad hominen attacks at other prominent Republicans. was a cover-up to hide his involvement. But in some ways it’s even worse if it Agents Don’t Understand The Policies? is true, because it shows that the man supposedly If the insurance agent who sells you a policy in charge is actually out misrepresents the coverage by telling you the policy of the loop. The same Attorney General includes more coverage than it actually does, the thing applies to the White Eric Holder insurance agent and the insurance company are

“

Table of Contents

The Underwriter’s Insider

House. From the State Department’s comprehensive mishandling of Benghazi, to the IRS scandal, to this new case involving the AP, President Obama faces the same dilemma. Either he accepts responsibility and confesses that he knew what was happening—or he attributes all the misdeeds to low-level civil servants, admits that he only learns what’s going on from the press, and confesses that he’s not really in charge of the agencies that are supposed to be under his command. Noted political analyst Robert Tracinski in regards the recent spat of scandals and charges of incompetence descending on the Obama administration and what Tracinski pointedly calls, “The Sergeant Shultz defense: ‘I know nuthink!’” Will the buck ever stop with Obama?

“First,

An Epidemic of Amnesia Strikes Washington D.C.!

it was the sensational Benghazi hearing, where previously muzzled whistle-blowers detailed the administration’s bungles before, during and after the terror attack. Throw in reports showing the infamous Susan Rice talking points were rewritten 11 times, going from fact to fiction, and Benghazi suddenly became the important story it should have been all along. If that were all, it would have been enough. But the nearsimultaneous revelations in recent days about the IRS playing political favorites, “Don’t Blame Me! the massive phone grab I Know Nuthink, Nuthink!” at the AP news operation, and ObamaCare’s cost impact combined to demonstrate something I believed for a long time. The Obama administration is both corrupt and incompetent. It is a double whammy that spells trouble for the nation, at home and abroad. The corruption is not like that in Albany, where officials stuff their pockets with taxpayer cash. The corruption in Obama-Land is the selective use of government power to reward friends and punish opponents. Or, as the president calls them, enemies. Political allies — think Solyndra and unions — get special goodies, while those who oppose the regime’s agenda are demonized and singled out for scrutiny. The IRS targeting of groups with “Tea Party” or “patriot” in their names and those that advocate less spending smacks of the tactics of banana republic strongmen. Hugo Chavez and Fidel Castro would be proud. - New York Post columnist Michael Goodwin in a May 15th column detailing the corruption, scandal and incompetence rampant in the Obama administration - and how badly it reflects on our country. www.underwritersinsider.com

You Must Learn to Love the IRS

“The more we learn about Obamacare, the more

unpopular it becomes. In light of the recent revelations that have just come out within this last week regarding the outrageous activities of the Internal Revenue Service pointed against the people of the United States, every American should be concerned about the negative consequences of this bill, Obamacare. The Supreme Court has ruled that Obamacare is in fact a tax. Knowing that it’s a tax, the logical conclusion is that the entity in the United States tasked with enforcing tax policy is the IRS.” - Rep. Michele Bachmann, R-Minn debating in the U.S. House of Representatives on the third repeal of Obamacare May 16th - referring to the unpopular legislation as a Obamacare Regs 7’ Stack “trainwreck; an iceberg.”

And You Just Need to Trust Politicians

“The scandals are interlocking and overlapping in

ways that drain his authority. Everything he advocates requires Americans to lavish on government something that his administration, and big government generally, undermines: trust.... The agenda always is: Concentrate more power in Washington, more Washington power in the executive branch and more executive power in agencies run by experts. Then trust the experts to be disinterested and prudent with their myriad intrusions into, and minute regulations of, Americans’ lives. Obama’s presidency may yet be, on balance, a net plus for the public good if it shatters Americans’ trust in the regulatory state’s motives.” - Columnist, author and pundit George Will, offering perhaps the most precise analysis and a silver lining of the Obama administration’s trifecta of scandals that came to a head in May.

And if Success is Obamacare, The Majority of Americans Want Him to Fail...

“So what is so strange about saying, ‘I want Barack

Obama to fail,’ if his mission is to reconstruct and reform this nation so that capitalism and individual liberty are not its foundation? I want the country to survive. I want the country to succeed.” - Conservative talk-show host and pundit Rush Limbaugh - responding to outraged critics from the political left after he commented he “wanted Barack Obama to fail” shortly after the 2008 election. And that was before the corruption and scandal in the Obama administration began to emerge.

Table of Contents

MAY 2013

APR 2013

MAR 2013

FEB 2013

JAN 2013

2012 Issue 11

2012 Issue 10

2012 Issue 9

Table of Contents

2012 Issue 8 The Underwriterâ&#x20AC;&#x2122;s Insider

2012 Issue 7

2012 Issue 6

2012 Issue 5

INSURANCE • POLITICS • TECHNOLOGY • PEOPLE VOLUME 9 • 2012 • ISSUE 4

TABLE OF CONTENTS

2012 Issue 4

2012 Issue 1 www.underwritersinsider.com

2012 Issue 3

2011 Issue 7

Table of Contents

2012 Issue 2

2005 Issue 2 29

TEXAS CONGRESSMAN TED POE SHINES LIGHT ON COMPACT FLUORESCENT BULBS

ashington, D.C. Congressman Ted Poe, (R-TX) offers an excellent summation of the ineptedude of our well-meaning but naive lawmakers as it concerns legislation (Energy Independence & Security Act of 2007) prohibiting the manufacture or sale of incandescent lightbulbs after this year. Like so many earnest, well-intentioned, save-the-planet efforts, this legislation creates a boat load of unintended consequences - some of which run completely contrary its stated purpose of securing our environment by saving energy.

On top of that list would be serious concerns regarding the mercury content contained in each CF bulb sufficiently dangerous for end-users (you) so that the EPA has published a 3-page, singlespaced paper docmenting the procedures that must be followed in the event a CF bulb is broken, including evacuation of the area for at least 15 minutes - and disposing of the refuse in designated collection centers. When you break a CF bulb, be prepared to take half a day off from work to deal with the emergency. How many will?

WHY YOU SHOULD NOT PARK ON A DRAWBRIDGE...

Table of Contents

FREE! free insider subscription! sign up yourself or any associate at this link

HERE

To Visit Insider Sponsors, simply click on the Sponsorâ&#x20AC;&#x2122;s ad! The Underwriterâ&#x20AC;&#x2122;s Insider

Continued from Page 10

ZALMA after this Court issued its opinion, Financial paid the Bislands the value of the judgment as well as the accrued interest, which totaled $3,185,548.65.

Current Suit For More A few days after the trial court issued its judgment in the prior suit, the Bislands initiated a new suit against Financial. In their final amended petition in the current suit, the Bislands asserted that Financial breached the terms of the insurance policy covering Lindig and Simmons. In particular, the Bislands urged that Financial had a duty under the insurance policy to pay judgments against its insureds when those judgments become final, and the Bislands insisted that Financial breached that duty by failing to pay on the judgment in the prior suit when the judgment became final against Simmons. After a trial in the current suit, the jury found in favor of Financial on all of the issues presented in the jury charge. In addition, the jury concluded that the

Bislands should not be awarded any attorney’s fees.

The Bislands assert that Financial Shortly after the jury rendered its had an obligation to pay them when verdict, the Bislands filed a motion the prior judgment became final as for judgment to Simmons. The “Had Financial done notwithstanding Bislands claimed what the Bislands’ the verdict. After that the trial court considering the in the prior suit claimed they should – Bislands’ motion held Lindig and paid its limits promptly for judgment Simmons “jointly after verdict in the first notwithstanding and severally” case they would have the verdict, the liable for the recovered $2 million district court damages that the granted the motion Bislands sustained. less than they did. They and determined In addition, the took the $3.1 million that the Bislands Bislands urge that and then sued the insurer the trial court’s were entitled to the who they knew only requested award “plenary power owed $1 million and of $134,489.14; to alter the” prior prejudgment judgment expired then added insult to the interest on that in February 2008, injury by demanding amount starting “on which was a few interest and fees.” December 11, 2009, months after the and ending on the prior judgment day preceding the was rendered. The date of this Final Judgment”; costs Bislands also contended that Financial of suit; and “post-judgment interest breached its obligation under the on the combined sum” of the three insurance policy by failing to pay the awards listed above “beginning on Bislands when the prior judgment the date of this Final Judgment and became final and that Financial’s ending on date paid.” breach continued until after the prior appeal was final “when Financial paid Discussion the Underlying Judgment for Lindig The Texas Rules and Simmons.” of Civil Procedure allow that during a trial, a court may render judgment notwithstanding the verdict if a directed verdict would have been proper, and the trial court may disregard any jury finding on a question that has no support in the

www.underwritersinsider.com

evidence.

Table of Contents

Recognizing that the value of the prior judgment exceeded the limits of Lindig’s insurance policy, the Bislands claimed that Financial was only obligated to pay the policy limits at the time that the prior judgment became final as well as post-judgment interest on the policy limits until the judgment was paid. Specifically, the Bislands argue that Financial was obligated to See Zalma Pg 35 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.

Table of Contents

The Underwriter’s Insider

Continued From Page 9

KIM KOMANDO

all the popular services right to your TV. If you’re buying a new TV, you can find smart TVs with online streaming built right in.

video services still don’t have available.

Click here to learn more about buying smart TVs and streaming gadgets.

Luckily, you don’t need a cable subscription to watch either one. You can pick up broadcast TV in full HD with an antenna.

A less expensive option, if you already have the hardware, is to connect your computer right to your TV. Many

newer computers have HDMI or DVI outputs that will connect to most new TVs. Not only can it stream video, you can turn the computer into a digital video recorder for recording live broadcasts. Or use it to browse the Web, display your pictures or anything else you can

See Kim Komando Page 34

No, I’m not talking about the metal eyesores that used to perch on your roof. Modern HD antennas can be sleek, stylish and mounted indoors. I sell one that costs less than what most people pay for a month of cable. It’s slim enough to hide behind a painting and will give you 20 or more local and network channels. Major networks are also starting to stream live TV online. ABC is doing a test in New York and Philadelphia right now. ESPN and Disney already offer WatchESPN and Watch Disney. For now, these services require you log in with proof of a cable or satellite account, but that could change in the future.

Watch in comfort When streaming online video first appeared, your only real option was watching it on a computer. That was fine for early adopters, but regular consumers wanted the full livingroom experience. Thanks to smart TVs and streaming video boxes, that’s no longer a problem. Inexpensive gadgets like Roku, Boxee and Apple TV, or any modern video game system, will stream video from www.underwritersinsider.com

Table of Contents

Continued From Page 33

KIM KOMANDO use a computer to do. The computer doesn’t have to be a high-end monstrosity either. Personally, I use a Mac mini.

Watch on the go Streaming video isn’t just for TVs and computers, however. Maybe you want to watch video on the go with a tablet or smartphone. Because online services are Web-based, it’s no problem, as long as you have a decent Internet connection. Certain services work best with certain types of mobile gadgets. For example, Amazon will stream video to almost any tablet, but it works best with Amazon’s own Kindle Fire. However, it doesn’t have a smartphone app, while Netflix does. If you already have a mobile gadget, or are planning to purchase new ones, make sure they play nice with the services you use.

Mix and match There’s no rule that says you have to choose just one of the options above. You can stick with cable for now and gradually explore free streaming video services.

Don’t forget that cable companies want to keep you as a customer. They’re upgrading their services and trying new promotions to make their offerings more attractive. You can leverage this into discounts and savings. For example, you can often get customer service to drop the monthly rental fee for your cable modem. Copyright 2013, 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, sign-up at: http://www.komando.com/ newsletters.

Advertise In America’s Favorite Insurance Magazine! Reach More Readers At a Lower Cost Then Ever Before! Free Professional Ad Creation!

INFO HERE

ike Lapeyrouse, President and CEO of The American Equity Underwriters (AEU) is pleased to announce that Andrea Mills has joined the AEU staff effective May 6, 2013. Andrea has been a broker for twentyfive years and for the last 8 years has served Andrea Mills as Vice President, Client Advocate at Willis – Mobile. She is joining AEU as Senior Vice President – Director of Strategic Business Development. AEU (an AmWINS Group Company) is the third largest and fastest growing provider of workers’ compensation insurance coverage under the Longshore and Harbor Workers’ Compensation Act. Among her new duties, Andrea will creatively communicate to the marketplace the unique value proposition made available to maritime employers by AEU and The American Longshore Mutual Association (ALMA).

FREE CLASSIFIEDS! HELP WANTED — POSITION WANTED 4 — SALE ITEMS

Ease your way into it and find out what works and doesn’t work for you. Take advantage of the free trials that the major streaming services offer. 34

AEU ANNOUNCES MAJOR ADDITION TO STAFF

CLICK HERE! Table of Contents

The Underwriter’s Insider

Continued from Page 31

ZALMA pay $1,449,233.06. Accounting for the fact that Financial did ultimately pay the full amount of the prior judgment as well as post-judgment interest on that amount, the Bislands concede that Financial was entitled to a credit of $1,449,233.06. Even assuming that the Bislands were in the correct procedural posture to bring a third-party-beneficiary claim against Financial, a person who sues for performance of a contractual obligation, whether as a party to the contract or as a third party beneficiary, must prove that all contractual conditions have been satisfied. Any right to enforce the policy would have been extinguished when Financial paid the full value of the prior judgment and accompanying interest, including the value of the policy limits that the Bislands insist that they were entitled to when the trial court’s judgment in the prior case became final. In other words, once

Financial complied with the terms of the insurance policy and fulfilled its obligation to pay, the Bislands’ ability to enforce the agreement and compel Financial to pay was exhausted. Although the Bislands attempt to morph Financial’s alleged failure to timely pay into a new and independent cause of action, the amount requested for that claim as well as the credits that the Bislands afforded to Financial for paying the prior judgment demonstrate that the relief that the Bislands were seeking in the current suit was the time value for the delay in payment; however, as discussed previously, the Bislands were compensated for the delay in payment when Financial paid postjudgment interest on the damages awarded by the prior judgment, and the Bislands have not asserted that the amount paid as post-judgment interest was somehow deficient. Since the appellate court overruled all of the Bislands’ issues on appeal and determined that the district court erred by granting the Bislands’ motion for judgment notwithstanding the verdict, the judgment was reversed and the trial court was ordered to render judgment in favor of Financial in accordance with the jury’s verdict.

ZALMA OPINION This is an example of greed going too far. It is an expenditure of time and lawyers fees to gain more money from an insurer who agreed to, and did, pay a judgment in excess of its policy limits by a factor of three only to be sued for more.

promptly after verdict in the first case they would have recovered $2 million less than they did. They took the $3.1 million and then sued the insurer who they knew only owed $1 million and then added insult to the injury by demanding interest and fees. Insurance should only pay what it promises to pay. The only logical reason for agreeing to pay the full judgment, even in excess of its limits, was the fear that the insurer would be held to have breached the covenant of good faith and fair dealing and potential punitive damages. The plaintiffs should have thanked Financial for agreeing to pay the full judgment plus interest rather than sue for more.

Table of Contents

GEORGIA AGENT ARRESTED ON CHARGES OF INSURANCE FRAUD

tlanta – Insurance Commissioner Ralph Hudgens announced today that an investigation by his office has resulted in a former Cobb County insurance agent being arrested on insurance fraud charges.

and workers' compensation coverage though the clients had paid their premiums directly to Navas and received paperwork verifying coverage.

"Our investigation has turned up numerous victims of this scam and GA Ins Comm. Juan Pablo Navas, 30, of Ralph Hudgens we expect for additional Mableton, has been charged charges to be filed," with six counts of insurance fraud, Commissioner Hudgens said. "Velox three counts of financial transaction Insurance has made good on all the card fraud and four counts of forgery missing payments, so their clients now for allegedly keeping premiums paid to have the coverage they paid for." him for insurance coverage. Navas was arrested this morning in Cobb County Hudgens urges anyone who believes and transported to the Gwinnett County they have purchased insurance from Jail for booking. Navas, to contact Numerous clients of his Consumer the agency complained Commissioner Services Division Hudgens said Navas at 404-656-2070. that they were was working for Hudgens will getting cancellation Velox Insurance also have staff at notices from their Agency located Velox Insurance insurers, claiming at 5261 Buford on June 3-4 from lack of payment Highway, Norcross, 10 a.m. until 7 Ga., at the time p.m. to meet with for automobile the alleged crimes Velox clients with policies and workers' occurred. Numerous questions about compensation coverage clients of the agency this investigation. though the clients had complained that paid their premiums they were getting Insurance fraud is cancellation a felony in Georgia directly to Navas and notices from their with a penalty of received paperwork insurers, claiming two to 10 years in verifying coverage. lack of payment for prison and/or a fine automobile policies of up to $10,000. 36

Table of Contents

OBAMACARE DRIVES UP INSURANCE PREMIUMS BY UP TO 146 PERCENT IN CALIFORNIA And it’s named “The Affordable Care Act?”

orbes reported recently that California’s brand of Obamacare, Covered California, will cause residents to experience rate increases ranging from 64 to 146 percent. In the Forbes report, they wrote that a healthy, non-smoking 25-year-old man now paying $92 per month for the cheapest available plan could expect to pay $184 per month under California’s Obamacare, dubbed “Covered California.” The news is worse for the next age group over 30. A healthy, nonsmoking 40-year-old would be forced to pay $261 per month under CC’s cheapest plan (Bronze) with the least benefits while pre-Obamacare rates averaged less than $125. News of the increases contradicts specific claims made by President Obama early in May when he remarked, “Whenever insurance premiums go up, you’re being told it’s because of Obamacare — even though there’s no evidence that that’s the case.”

The Underwriter’s Insider

Agent / CSR Online registration at http://ie13-agent.eventbrite.com Exhibitor / Sponsor Online Registration at http://ie13-rep.eventbrite.com www.underwritersinsider.com