The Underwriter's Insider May 2014 by The Underwriter's Insider

Features 5 Advertising 9 Kim Komando

News 4 4 7 9

Wild Crosswind Landings - Take Your Dramamine & Watch This Vid! Texas Agent Deposits Client’s Death Benefit - Gets 10 Years In Slammer 5 Digital Things Not Do At Work or Else You risk Getting Fired - by Kim Komando

18 Inside Track

23 Insider Advisor

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24 Classifieds

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Georgia Agent Arrested On Multiple Counts of Insurance Fraud

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Temkin Research: Consumers Prefer Doing Most Business Online

26 Say What? 28 Back Issues

LA Agency Owner Served With C&D and Summary Suspension

Rape Not Insurable Conduct - Expert Analysis & Commentary - by Barry Zalma AIMS Society Names New Board Emphasizes Education & Networking Oregon ObamaCare Exchange Down In Flames - OP/ED - by Spencer Lehmann, RHU

Florida Arrests Jacksonville Chiropractor On Charges Of Insurance Fraud

New York Slams Aetna With $500K Fine For Consumer Protection Violations Silliest Lawsuit Of The Month Results From Golf Tee-off From Playboy Bunny’s Butt - Unbelievable

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News 19 20 20 21

Study Shows Brain Changes In Casual Pot Smokers Affecting Ambition

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Send Your Insured To A Lawyer - Lose Your Carrier Contract - A No-Brainer

Have Liberals Developed A Case Of Tourette’s Syndrom On The Issue Of Race? - George Will Thinks so...

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N.C. Arrests 3 Car Sales People For Selling Insurance Without A License S. Carolina Dept. Of Insurance Promotes Darian Porter Praetorian Insurance Ordered To Modify Business Practices For LenderPlaced Insurance In Florida

49 Astronauts & Scientists Tell NASA: “Global Warming Is NOT Settled Science”

First Two Pontiac Firebirds Ever Produced Found Side By Side In Connecticut Barn See The U.S. Navy’s Greatest, Latest, Badest Destroyer California Agent Sentenced To Five Years For Ponzi Scheme Timing Is Everything When It Comes To Florida Construction Defect Cases! Atlas General Hires Rod Taylor As New President Of The Commercial Lines Division

Krauthammer: “The Single Stupidest Remark About Foreign Policy Ever Uttered By A President Of The United States” - Video

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Reagan Consulting Opens Growth & Profitability Survey For 1Q 2014

Sponsors 6 8 11 15 14 18 22 22 23 25 32 33 35 41 42

Modern Insurance Consultants H.O.P.E. QQ Solutions St. James Insurance Company A.D. Bankers & Company NASA - Eclipse Agency Mgt. Accu-Auto SLB Group Encore HR Personnel Solutions Orrin R. Beilly, Esq. Barry Zalma, Esq. The Towing & Rental Group FYI Georgia View & News Specialty Agents of Florida Financemaster

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LOUISIANA AGENCY OWNER SERVED WITH CEASE AND DESIST ORDER AND SUMMARY SUSPENSION

Top Bank Product Now Available to Independent Agents

St. Tammany Parish, Investigators say Neely failed to Louisiana insurance actually purchase the insurance agency owner has been coverage. Authorities say he served by Louisiana later refunded Department of the premium to Insurance Fraud the recreation Division Investigation district. Neely faces with a summary revocation of his suspension and a insurance producer cease and desist license as well as order for alleged a possible fine misappropriation of imposed by the insurance premium commissioner of funds. insurance.

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LA Insurance Michael Neely, a property Alicia Neely, an Commissioner and casualty producer employee of Mike and owner of Mike Neely Insurance Neely Insurance Agency, was also Agency, LLC, is alleged to have served with a cease and desist misappropriated thousands of order for operating as an insurance dollars in insurance premium. agent without a valid insurance According to investigators, Neely producer license. Michael Neely accepted a check for $9,824 from and Alicia Neely have 30 days St. Tammany Parish Recreation from the time of service to request District #4 for the purchase of an administrative appeal or the property and casualty insurance. above actions will become final.

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WILD CROSSWIND LANDINGS

irmingham England’s airport boasts some of the most savage crosswinds anywhere. Watch the video and imagine what it must have felt like to be a passenger on the flight - or worse - a pilot attempting to wrestle his big bird and passengers to a safe landing!

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TEXAS AGENT DEPOSITS CLIENT’S $1 MILLION LIFE INSURANCE DEATH BENEFIT CHECK INTO OWN ACCOUNT - SENTENCED TO 10 YEARS

USTIN – A Fort Worth life insurance agent faces ten years in federal prison following a conviction for insurance fraud. Caleb Deason, a financial planner and an insurance agent for Transamerica Life Insurance Company, was convicted on charges of wire fraud and money laundering in a two-day trial before U.S. District Judge John McBride last December. On April 3, 2014,

account for his personal use - by changing the routing information on the death benefit wire transfer from Transamerica to the widow while forging the widow’s signature.

In Fiscal Year 2013, the TDI Fraud Secker left behind a widow and Unit investigated more than 500 three sons. cases of alleged insurance fraud. A total of 222 investigations were Court records referred for prosecution, resulting show that Deason in 108 indictments, 130 final purchaseed a dispositions, and total restitution of 2010 Ranch Rover more than $2.5 million. Since 2005, with the proceeds a total of more than $8.5 million and was fighting in restitution has been ordered in foreclosure on his cases prosecuted by TDI Special half-million dollar Prosecutors. home at the time of the theft.

Deason was sentenced to ten years in federal prison Caleb Deason, from an ad by Judge McBride. for his company, CD Financial Court records did In addition to his prison sentence, not reveal whether Deason had Deason was ordered to pay $99,491 an exit-strategy on the theft - nor in restitution. how he attempted to explain the missing money to the widow. It The conviction follows an extensive seems the financial planner was investigation by the Texas somewhat remiss on his own Department of Insurance (TDI) Fraud financial planning and allowed the Unit, working with the U.S. Secret stress of his deteriorating financial Service and the U.S. Attorney’s Office positions to cloud his morals and in Dallas. Deason was found to his judgement. have sold a $1 million life insurance policy to Danny Secker, 41, who “Insurance fraud is a crime that died unexpectantly 3 months later, will not be tolerated in Texas,” said and subsequently, upon the death Neftali Carrasquillo, Director of TDI’s of the policyholder, diverted the Fraud Unit. “Our investigators and death benefit funds to his own bank www.underwritersinsider.com

special prosecutors are working tirelessly with local law enforcement to combat this problem that affects all policyholders.”

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5 DIGITAL THINGS NOT TO DO AT WORK OR ELSE YOU RISK GETTING FIRED Really Cool Info - by Kim Komando

o you hate your job? You’re in luck! Getting fired has never been easier thanks to the Internet.

1. Saving your online passwords on a work computer.

It may sound obvious, but to countless office workers A Florida high school teacher it’s breaking news: Your work recently lost her job after lewd computer is not yours! It belongs photos from a racy modeling session to your company and they were dredged up online. And an have every right to snoop on Idaho high-school coach was fired everything you’re doing with it. after posting a barely questionable photo with her fiancée on Facebook. Unless you want to give your boss free reign of your Facebook It just goes to show that nothing page, your bank accounts and stays hidden on the Web for long. your email, keep those passwords If you want to stay employed, private. Never allow your browser here are five things to save passwords for your you should avoid personal accounts. at all costs. Or even better, don’t log on to your accounts at all on your work computer. If you h a v e t o ,

however, be sure to use your browser’s privacy mode - click here to learn how. 2. Sending inappropriate emails and instant messages. Human resource managers around the country are nodding their head as they read this one. When you make an inappropriate joke or an insensitive comment around the water cooler, you can get lucky and it will disappear unnoticed. But when you put it in writing and distribute it around the office, it’s on the record. A bad joke can get magnified with every forward, and even “private” instant message chat logs tend to stick around. There’s no hiding from a rude remark when your email address or username is attached to it. Keep it to yourself! 3. Taking a picture inside your office and posting it online. Let’s say you work at a bank. You’re looking super-cute today and you just can’t help it: #selfie! You post it online so everyone can see how good you look. Unfortunately, you might be sharing more than you planned. Someone’s account information might be on your computer screen and show up in the background. Thieves could

See Kim Komando Pg 33 www.underwritersinsider.com

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(“Key”), Cole County, and certain named officials of Cole County in federal court. She dismissed all defendants except the rapist, Key, and the federal court entered a default judgment against Key for $100,000 in actual damages and $200,000 in punitive damages.

Injury Must Be in Course & Scope of Employment

iability insurance protects employers against torts caused by their employees and volunteers acting in the course and scope of their employment or volunteer activities. Some activities, however, can never be within the course and scope of employment of the individual actor. In Priscella Gilley v. Missouri Public Entity Risk Management Fund, Court of Appeals of Missouri Western District Division Three, Docket Number WD76933 (April 22, 2014), the Missouri Court of Appeal was asked to resolve a dispute over one such act.

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, “Getting The Whole Truth,” which is available at his Web site, www.zalma.com. Go to Zalma Books at http://www.zalma.com/zalmabooks. htm.

the law when it concluded, as Priscella Gilley (“Gilley”) appealed a matter of law, that MOPERM from a judgment granting funds were not available as liability summary judgment in favor of insurance coverage to satisfy her the Missouri Public Entity Risk tort judgment against a volunteer Management Fund (“MOPERM”) inmate “trustee” at the Cole County on Gilley’s equitable garnishment jail who, after delivering a meal to claim. In her sole point on appeal, Gilley (also an inmate at the jail) Gilley argued that the trial court in his volunteer inmate “trustee” erred in declaring and applying capacity, raped her. Join Barry Zalma’s new Blog:

http://www.zalma.com/blog

FACTS Gilley filed suit against Darryle Key

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MOPERM had issued Cole County a Memorandum of Coverage for liability claims. Gilley filed an equitable garnishment suit seeking garnishment from MOPERM’s policy of coverage to indemnify Key and satisfy the judgment Gilley had obtained against Key in the federal court proceeding. Gilley claimed that at the time she was raped by Defendant Key, Defendant MOPERM had had in full force and effect a policy of coverage covering the acts of . . . authorized volunteers who were acting in the course and scope of their duties.. . . .. . . Defendant Key was an “authorized volunteer” as contemplated by the policy of coverage issued by Defendant MOPERM. Defendant Key raped Plaintiff Gilley during the course and scope of performing his duties as an inmate “trustee.” See Zalma Pg 31 The Underwriter’s Insider

AIMS SOCIETY NAMES NEW BOARD

Member Organization Emphasizes Insurance Sales Education & Networking

ICHMOND, Va. The American Insurance Marketing & Sales (AIMS) Society has named its board of directors. The two newest members include Robert Klinger, CPIA, LUTCF of Klinger & Associates, Inc. in Germantown, Maryland; and Joyce E. Sigler, CPIA, CPIW, CISR, NcAM, NcSA of Jones & Wenner Insurance Agency in Fairlawn, Ohio.

• • •

CPIA, BancorpSouth Insurance Services, Inc. Chris Paradiso, CPIA, Paradiso Financial & Insurance Services, LLC Keith A. Savino CPIA, Warwick Resource Group Richard A. Savino, CPIA, CIC, Warwick Resource Group George A. Zelhof, CPIA, United Assurance, Inc.

also focusing on a membership drive that he said will "highlight the tremendous opportunities we provide to everyone in insurance sales, particularly millennials and GenXers."

"We have more than 500 individuals earn their CPIA professional • designation every year," explained Donna Gray, AIMS Society "We have an incredible amount of executive director. "So that gives They join already seated board energy and enthusiasm with this us a tremendous influx of talent members and board members: board," explained Sigler. "We're in into our networking pool. But our the midst of planning association membership is open to anyone • President: June Taylor, CPIA, activities for the coming year that who wants to learn more about CIC, CPIW, DAE of Wilkinson property and casualty sales and Insurance Agency, Inc. in White are really exciting." marketing. As a member-driven House, Tennessee. organization, it sure is exciting to • Vice President: Craig Most, Klinger cited the ongoing CPIA hear the ideas people are applying CPIA, CIC of Most Insurance, designation program as having a "responsive, interactive format that and the results they're seeing LLC in Tampa, Florida. • Vice President: Jim Mansfield, gives participants real-life sales every day. There's nothing better CPIA of Mansfield Insurance ideas that they can really use when than real-life experts sharing what Agency in Lawrenceburg, they return home." The board is works and what doesn't." Indiana. • Secretary: Michael G. Herzak, CPIA, CIC of Insurance Systems Group, Inc. in Cleveland, Ohio. • Treasurer: Martin A. Lebson, CPIA, AAI, ARM of Capacity Coverage of New Jersey, Inc. in Mahwah, New Jersey. • Immediate Past President: Curtis M. Pearsall, CPIA, CPCU, AIAF, ARM, AU of Pearsall Associates, Inc. in Whitesboro, New York. • Michael P. Grace, www.underwritersinsider.com

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OREGON OBAMACARE EXCHANGE GOES DOWN IN FLAMES. MORE FLAMES TO COME. OP/ED BY SPENCER A. LEHMANN, RHU By Spencer A. Lehmann, RHU

residents for health care plans but for most of them, the online website was an epic fail. Those who managed to enroll in Obamacare had to do it mostly the old-fashioned way, on paper. In addition to a general lack of enthusiasm, the website was plagued with technical difficulties, mismanagement, and feuds with the website developer Oracle, predictably over money.

he Guardian, among many in the media, reported today that the Oregon Obamacare Exchange has “gone down”. From the Guardian:    “The board of Oregon’s state run online health care exchange has voted to shut the site down and let the federal government take control of implementing Obamacare. Even with $300 million in federal funding assistance and the supposed enthusiasm of a blue state for Obama’s signature legislation, Cover Oregon simply did not have enough enrollees to fund the technically troubled exchange. As the first state to throw in the Obamacare health market towel, Oregon may be followed by similarly troubled states like Nevada, Maryland, and Massachusetts whose exchanges are similarly plagued and who may be ready to fall like dominos right behind the Beaver State.   Cover Oregon managed to sign up a dismal 64,000

Spencer A. Lehmann is a Registered Health Underwriter (RHU), whose company, Lehmann/Wood & Associates, Inc., specializes in Group and Individual Long Term Care insurance and Medicare Supplemental Coverage. Mr. Lehmann retired from his company in 2005 and now spends his time writing on Health Care Insurance and Political Issues, both of which have encompassed over 40+ years of his life. He has been an actively involved member of the National Association of Health Underwriters (NAHU) since 1978, and serves on the Board of Directors of several Charitable Organizations’ helping Special Needs Children, and Inner-City Children to experience and participate in the world of the Arts and Music. In his free time he plays golf with his wife, Fran, who usually wins.

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>   Based on HealthCare.gov’s own track record, Oregonians who dutifully signed up for government mandated healthcare are in for a rocky transition. Those poor souls about to be “merged” into the federal exchange are likely going to be buried in a paper trail fraught with error, technical difficulties and frustrating healthcare mix-ups. >   The Oregon health care exchange may be the first state exchange to admit failure and shut down but it is likely that other similarly troubled states will follow suit. Rather than try to maintain any semblance of autonomy, it may be easier and financially more realistic to opt to become one with HealthCare.gov, the massive federal exchange that is The Underwriter’s Insider

truly the ugly poster child for government mandated health care insurance.

of its Leader, Barack Obama, the president of the United States.

of “The Portrait of Dorian Gray”, has brought a division to America never before seen, and has left vast While it was Obama’s and the Millions of Americans without the http://guardianlv.com/2014/04/ Democratic Party leadership’s health insurance they once had, o b a m a c a r e - f a i l - o r e g o n - goal to force a Socialized Single that provided 90% of them and healthcare-exchange-shuts-down/ Payer System down the throats of their families with quality health unwilling Americans, they had to care delivery and funding, replacing This should come as no surprise give up on that plan as it became their coverage with anxiety, no to anyone except those who readily apparent that they wouldn’t coverage, little understanding of continually have be able to find “The list of egregious enough of their been touting See MORE FLAMES Page 35 the successes of own members actions and lies by Covered Oregon, to agree to President Obama those who are such a drastic and the Democratic always singing and immediate the praises of change, so Party Congressional Obamacare, a a plan was Leadership who major mess of developed a Democratic take created this appalling to Party attempt mistake and rammed i n c r e m e n t a l to change the steps. Thus, it down America’s entire Health the PPACA, aka Care System in ObamaCare, unwilling throat, is America from a was born.    endless. ” Private Sector system that This law’s needed serious changing, into a enabling legislation was passed by fully government run and owned the Democratic Party controlled system that has proven to be a major Congress in 2010 and signed failure since its implementation into law by its namesake, Mr. began in October of 2013, shrouded Obama. Since that unfortunate in Corruption, Lies, Disinformation act was signed into law, its many and Misinformation, at the hands blemishes, boils, blisters, and pus dripping canvas of an equivalent

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GEORGIA AGENT ARRESTED ON MULTIPLE COUNTS OF INSURANCE FRAUD

tlanta – Insurance Jail. No bond has been set. Commissioner Ralph Hudgens today According to the investigation, announced that a former Williams allegedly collected insurance agent from approximately Franklin County has been $30,000 in arrested and charged p r e m i u m with insurance fraud. payments on a variety of insurance James Travis Williams, 34, products and was arrested today and never forwarded charged with 15 counts those premiums of insurance fraud and to the appropriate two counts of forgery i n s u r a n c e for allegedly taking companies premium payments for coverage, from policyholders and Hudgens said. converting the money to his own use. Williams has been “This office will not tolerate any booked into the Franklin County

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insurance agent stealing from his or her customer,” Hudgens said. “Such actions constitute a violation of a trust between an agent and policyholder, a violation we take very seriously.” Williams formerly owned and operated Tri-County Insurance Agency at 665 Cook Street, Royston, Ga., in Franklin County. His license to sell insurance in Georgia was relinquished in October of 2013 when he signed a consent order agreeing to voluntarily surrender his agent’s license. The surrender of his license was the result of an ongoing investigation by Hudgens’ Fraud Unit. The Underwriter’s Insider

CFO JEFF ATWATER ANNOUNCES ARREST OF JACKSONVILLE BEACH MAN ON CHARGES OF INSURANCE FRAUD

ALLAHASSEE – Chief Financial Officer Jeff Atwater today announced the arrest of Chiropractor Steven Rhodes, owner of Ocean View Health, Inc. in Jacksonville Beach for fraudulently billing for services and allowing unlicensed staff to perform medical treatments. “This kind of fraudulent activity places honest, hardwww.underwritersinsider.com

working Floridians at risk not only financially, but also physically,” said CFO Atwater. “I am proud of our investigative team for uncovering this scam and holding this fraudster accountable for his misdeeds.”

Rhodes was submitting fee slips that overinflated the number of treatments being provided. The investigation also revealed that Rhodes submitted fee slips for treatments never performed. Among the insurance companies affected by this crime are Kemper, State Farm, Nationwide, Esurance, Progressive, United The investigation, Health, and Blue Cross Blue led by the Shield. Department of Financial Services’ Rhodes was arrested and booked Division of into the Duval County Jail. If Insurance Fraud, convicted, he faces a maximum revealed that of five years per count.

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CONSUMERS PREFER CONDUCTING MOST BUSINESS INTERACTIONS ONLINE, ACCORDING TO TEMKIN GROUP RESEARCH Study of 10,000 U.S. Consumers Examines Preferences for Using Different Channels for Interacting with Companies Across Age Groups

ABAN, Mass., April 15, 2014 /PRNewswire/ -Temkin Group released new research, Consumer Channel and Cross-Channel Benchmark, 2014. The report identifies which channels consumers prefer to use for a wide variety of interactions and also examines the frequency of common cross-channel activities. A key component of the research examines how consumers would like to complete 11 different interactions with companies. For seven of the activities, using a computer was the most popular or tied for the most popular channel. At the high end, 71% of consumers want to go online to check the delivery status of a purchase they've made. Two-thirds of consumers would prefer to go online to update their address on an account, purchase a new book, and check the balance on a saving or checking account. But consumers do not want to do everything online. Less than one-

third of consumers want to go online to open a new investment account or investigate a mistake in their monthly wireless bill. When it comes to resolving a technical problem on their computers or investigating a mistake on their cell phone bills, consumers most prefer talking to someone over the phone. And they want to meet in-person for activities such as purchasing a new auto insurance policy, selecting a life-insurance policy, and opening a new investment account. "Consumers prefer doing familiar tasks online, but still want to connect with a person when they are faced with less frequent, more complex situations," states Bruce Temkin, Customer Experience Transformist & Managing Partner of of Temkin Group. Here are some additional findings from the research: Across every age group, consumers most preferred to go online to update their address, check the balance on their savings or checking accounts, check the delivery status of a purchase, and purchase a book. The phone is the preferred channel for more than half of consumers 55 and older who are investigating a mistake on their wireless bill and

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consumers 65 and older who are trying to resolve a technical issue with their computer. Meeting with someone in person is the preferred channel for more than half of consumers 45 and older who want to open a new investment account, consumers 75 and older who want to purchase a new auto insurance policy, and consumers 55 and older who want to select a life insurance policy. Forty-three percent of consumers check competitors' prices on their mobile phone when they are in a store. iPhone users are the most likely to do all of the cross-channel activities examined in the research. This research report can be accessed from the blog, Customer Experience Matters, at ExperienceMatters.wordpress.com or at the Temkin Group's website, www.TemkinGroup.com. For more information Temkin Group, visit TemkinGroup.com.

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NEW YORK SLAMS AETNA WITH $500,000 PENALTY FOR CONSUMER PROTECTION VIOLATIONS ON INSURANCE POLICIES

overnor Andrew M. a bedrock consumer protection Cuomo announced today requirement,” said Governor that Aetna Life Insurance Cuomo. "Our administration Company will pay will continue a $500,000 penalty our work to for consumer ensure that protection consumers are violations. A fully informed Department of of their rights Financial Services and insurance (DFS) investigation companies meet found that Aetna their obligations.” repeatedly used New York Governor policy forms that B e n j a m i n Andrew Cuomo violated New York M. Lawsky, Insurance Law for certain group Superintendent of Financial life insurance policies and failed to Services, said, “When insurance inform policyholders of the rights companies fail to comply with and benefits guaranteed under their consumer protection those policies. requirements, it can prevent “Making sure that policyholders New Yorkers from making know what they are paying for is informed choices. We will take

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action whenever insurers leave consumers in the dark about their rights and benefits.” A DFS investigation uncovered that Aetna had used noncompliant consumer policy forms between 2002 and 2011 for six group life insurance policies. Consequently, during that period, Aetna failed to inform the insured policyholders of all rights and benefits under those policies. One such undisclosed benefit included the right – for a longer period than was disclosed in the policy forms – of an individual within a group policy to continue their coverage under an individual policy in the event the group policy is canceled. In other words, a consumer may not be aware of that benefit and may not take advantage of it.

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he International Risk Management Institute (IRMI) has published a valuable white paper listing the 101 most common commercial insurance coverage gaps and business that it was a flash how to close them. [HERE] drive that carried the Stuxnet virus that infected 100,000 possible winner of silliest machines in 22 Iranian nuclear lawsuit of the month manufacturing plants. Flash involves Playboy model Liz drives have also been used by Dickson who foolishly allowed employees and others to steal funny man DJ Kevin Klein data. A 64GB harddrive could to tee off from her backside. easily hold all the client data for The stunt did not a medium sized go well, with Klein insurance agency, swinging low, for example, and smacking her right the transfer could buttock and leaving be done quietly an enormous and quickly while h e m a t o m a . the employee Dickson, who carried on routine appears â&#x20AC;&#x153;all-inâ&#x20AC;? on job duties. the video, is now

Breaking News

any police departments across the country are using police car mounted automated license plate scanners that can record the latitude/longitude and plate number of up to 1800 license plates per hour on vehicles traveling up to 160mph. The data can be used immediately in the event of a warrant or BOLO associated with the plate - or referenced later to see if there is a possible connection to a crime. Privacy advocates are upset over the use of ALPR technology. One columnist was able to get the data for a three month period on her personal vehicle - which could easily have been used to pinpoint her home address, that of her boyfriend and her favorite club.

T security experts are warning that USB flash drives are as capable of carrying viruses and malware as any other digital media - reminding 18

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

suing Playboy and Klein for now has 60 such centers $500,000 claiming that her across the country with five injury may be permanent. additional planned for this year. The giant auto insurance n a recent study partially carrier bragged that ““Nine paid for by the National out of 10 customers who Institute on Drug Abuse, have used a Service Center to a group of 20 volunteer manage their repairs would pot smokers ages 18-25 recommend Progressive to who smoked marijuana on a friend or family member,” average four days a week Tricia Griffith, Progressive submitted to brain scans - and claims group president, said in researchers found specific a statement. “Opening these abnormalities in brain areas additional facilities enables associated with motivation more customers across the and emotion. Surprise, country to take advantage surprise! The test group of of our best customer repair casual smokers showed no process.” sign of pot dependency or could articulate marijuanaa 47 year old Denver related problems - although man wanted to get the study results were looking high in mid-April - now that for long-term effects. One it’s perfectly legal in that researcher, Krista Lisdahl of Denver city. the University of Wisconsin- So he went Milwaukee suggested, “the down to one effects of marijuana can occur of Denver’s much earlier than previously legal pot thought.” [MORE] dispensaries and picked up some potrogressive Insurance is infused “Karma Kandy building an El Paso, TX Orange Ginger.” He took Service Center - one of the the candy home, had a few new breeds of one-stop pieces, and put a bullet in claims service centers where his wife’s head, killing her, as claims reps can manage the she desperately spoke to a entire repair process and 911 operator, according to can shave four days off the investigators. Kristine Kirk, claims process according to 44, had been speaking to Progressive. The company the 911 dispatcher for 12

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minutes, screaming that her husband was acting crazy and looking for a gun - but police did not arrive until just after the murder.

conic country singer Glen Campbell, 78, who reported in 2011 he was afflicted with Alzheimer’s disease, was moved into a residential care facility in early April. According to song-writer and friend Jimmy Webb who wrote many of Campbell’s hits, “Moving Glen to the Alzheimer’s treatment facility was another in a long chain of difficult and brave decisions that Kim Campbell and the family have had to make. It is a 24-hour-aday task to take care of an Alzheimer’s victim at this stage. Believe me, if there were a way for me to change this lyric, I would. Glen is one of my dearest friends. We all want what will keep him safe and comfortable.”

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NORTH CAROLINA ARRESTS THREE CAR SALES PEOPLE FOR SELLING INSURANCE WITHOUT A LICENSE

ALEIGH -Insurance Commissioner Wayne Goodwin today announced the arrests of three people in Cabarrus County for allegedly selling auto insurance without being licensed by the North Carolina Department of Insurance.

arrested on April 10 and released under a written promise to appear in court on April 15.

Department of Insurance criminal investigators allege that each of the suspects — while working as sales representatives for different Cabarrus County car dealerships Marc Stacy Glover, 46, of 26431 — negotiated, contracted and Valley Drive, Albemarle, accepted funds was charged with one for auto insurance count each of obtaining coverage during the property by false sale of vehicles in pretense and acting February and March as an insurance agent 2014. None of the without a license. Glover suspects are currently was arrested on April licensed with the 10 and released under Department of a written promise to Insurance to conduct appear in court on April insurance business, Wayne Goodwin 15. and therefore the North Carolina Insurance Commissioner insurance policies are Corey Sean Hamilton, 24, not valid. of 12824 Clydesdale Drive, Midland, was charged with two counts each The Department of Insurance of obtaining property by false employs 20 sworn state law pretense and acting as an insurance enforcement officers dedicated agent a license. Hamilton was to investigating and prosecuting arrested on April 10 and released claims of insurance and bail under a written promise to appear bonding fraud. Since Insurance in court on April 15. Commissioner Wayne Goodwin took office in 2009, criminal Rose Rios Hernandez, 33, of 1878 investigators have made more Highway 24-27 East, Midland, was than 800 arrests, resulting in more charged with two counts each of than 430 criminal convictions. obtaining property by false pretense These efforts have delivered more and acting as an insurance agent than $55 million in restitution and without a license. Hernandez was recoveries for victims. 20

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SOUTH CAROLINA DOI PROMOTES DARIAN PORTER

arien Porter has been promoted to Manager of the Property and Casualty Unit in the Office of of the Property and Casualty Unit in the Office of new role on April 17, 2014. His responsibilities will include the supervision of the review process for property and casualty rate and form filings which can exceed 7,000 per year. Currently, Darien is responsible for analyzing all automobile and homeowners rate filings and responding to industry inquiries relating to these products. He has also been involved in the enhancement of the Department’s review of rate filings via updates to the Unit’s actuarial exhibits and is currently working to implement updates to the rate review process effected under Bulletin 201403, which imposes additional requirements on carriers utilizing hurricane catastrophe models in the ratemaking process for property insurance. Darien is a graduate of the University of South Carolina with a Bachelor of Science in Actuarial Mathematics and a Minor is Risk Management and Insurance The Underwriter’s Insider

FLORIDA OIR ORDERS PRAETORIAN INSURANCE COMPANY TO MODIFY ITS BUSINESS PRACTICES FOR LENDER-PLACED INSURANCE IN FLORIDA

ALLAHASSEE, Fla. – The Office of Insurance Regulation (Office) has issued a Consent Order to Praetorian Insurance Company, Florida’s second largest lenderplaced insurance (LPI) provider, requiring the modification of its business practices related to this type of coverage.

Similar reform measures are already being implemented by American Security Insurance Company, which is Florida’s largest lender-placed insurer, based on a Consent Order issued in October 2013. With these two Orders, the Office will have instituted new requirements for more than 90% of the LPI market in Florida, ensuring a level playing field exists for a majority of LPI insurers in the state. In its review of the LPI market in Florida, the Office found practices that potentially and practically hurt insurance consumers. A Consent Order is not an admission of violating insurance laws or rules. Lender-placed (also known as forceplaced) insurance is a commercial policy purchased by a bank, lender or mortgage servicer that covers the lender and sometimes the borrower when a borrower does not maintain the property hazard insurance required by the terms of the mortgage or other lending www.underwritersinsider.com

document. Often, this type of insurance is much more expensive than the borrower had been paying and the cost is passed back to the borrower.

· Prohibiting the provision of free or below-cost outsourced services to a mortgage servicer; and,

· Prohibiting the payment of any incentive to a mortgage servicer In addition to agreeing to submit as an inducement to secure LPI annual rate filings for its LPI business. program until further notice of the Office, Praetorian also agrees to Praetorian Insurance Company implement a number of business is an insurer domiciled in reforms within six months to Pennsylvania and is licensed as include: an admitted insurer in Florida. Praetorian has the second largest · Notifying all current borrowers market share of lender-placed by mail and within 120 days of the policies in Florida with more execution of the Consent Order than 126,336 policies in force to inform them about alternative representing a total premium of options available for LPI coverage; $422,746 million as of March 31, 2012. · Prohibiting the payment of commissions to a mortgage servicer on LPI policies obtained; · Prohibiting the payment of contingent commissions based on underwriting profitability or loss ratios to any servicer or entity affiliated with a servicer; · Prohibiting the issuance of LPI policies on mortgaged property serviced by an affiliate; · Prohibiting the issuance of reinsurance on LPI policies with a captive insurer of any mortgage servicer;

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“The Final Authority on Everything!” Give Me A Vector, Victor

ADVISOR

company. That’s unfair. Doesn’t the company want to make sure their own customers get y husband is driving all the benefits they are entitled me nuts. No matter to? D.K. Macon, GA where we go, no matter how complicated the drive, he My sweet little country mouse... refuses to ask directions! What I thought such innocence had possible reason could a man left with the transition from have for not asking directions? the horse and buggy. First, you are a paid representative of the - B.L. Jacksonville, FL company — their legal agent. Your referral generates a clear We don’t need them. conflict of interest. The last thing they want or need is you sending A Clear Conflict their insureds to a lawyer who, often as not, will find some y brother-in-law is a reason to be adverse to their lawyer and a good one. I’ve gotten into the habit of giving his name and business card to any of my insureds who have had a loss – just in case they need some help figuring out the fine print or get jerked around by the other company. Yesterday I was visited by the field rep of my largest auto carrier who told me my contract was under review since one of their customers had mentioned in a deposition that I had sent them to the lawyer who ended up suing my

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interests. Second, lawyers are never welcomed into the claims process by the carrier and it can often slow the claim — since a communication from a lawyer will often bump the claim from the claims department to the legal department where it can be stalled. This is not to say, from an insured’s standpoint, they may not ever require or benefit from the services of a lawyer after a claim. They may often. But it is not your place to encourage that relationship when the possibility exists that your own carrier may end up being the defendant.

2-20 or 20-44 Agent Needed In Pembroke Pines, FL

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INSURANCE BOOK OF BuSINESS WANTED

Looking for seasoned, quality book in SE Florida. 35 year veteran will slowly ease your exit or quick buyout - your terms. Email: Appropriaterisk@gmail.com 10-11

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Strong Stat/GAAP with corporate tax is required. Will consider negotiating relocation assistance. Contact:

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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

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Great opportunity for the agent looking for the opportunity to be paid by production rather than salary. Our Pembroke Pines office is looking the right people to write commercial and/or personal lines. Email cr2dome1@ gmail.com for more information. 10-7

Roswell, GA Premium Finance Sales Opportunity Are you ready to take your sales career to the next level? Est. in 1984 and based in Roswell, GA, Advanced Insurance Systems Inc. is a fast paced, high growth technology company that develops and markets premium finance software throughout N. America. While working mostly insidesales in our Roswell office, you will be challenged by the development of new business and the on-going support for existing clients. Help move sales opportunities through demos, proof of concept and responding to requests for information and proposals. Resumes to:

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10-10

Experienced 2-20 Commercial Agent in Boca Raton, FL Great opportunity for the experienced Agent looking for the opportunity to be paid well by production, rather than salary. Our office in Boca Raton is looking for a results oriented commercial agent. Compensation will be far higher than industry standards, including renewals. Contact email address with resume and cover letter: agencyops@gmail.com 10-11 The Underwriterâ&#x20AC;&#x2122;s Insider

Experenced Commercial Lines CSR-Tampa Area Established large Independent Agency seeks experienced Commercial Lines CSR. Duties include all aspects of customer service incl. telephone calls from customer and underwriters, issue COI, Auto ID Cards, Evid. of Prop. Market new and renewal policies, prepare proposals, process invoices, binders, policies, endorse., audits, recommend., etc. This position requires a minimum of 4 years of commercial account handling. Knowledge of AMS360 management system will be a plus. Contact: susank@adcock-insurance.com 10-8

Position Wanted Worker’s Comp Underwriter Orlando/East Coast of FLA

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CSR Wanted Jacksonville, FL Small agency needs permanent CSR in the Jacksonville, Florida area, will train-contact lloydwd@comcast.net or call(904)724-2550 11-3 25

SAY WHAT? Notable Quotes You May Have Missed!

More Unsettled Science

“

We believe the claims by NASA and GISS [NASA Goddard Institute for Space Studies], that man-made carbon dioxide is having a catastrophic impact on global climate change are not substantiated, especially when considering thousands of years of empirical data,” the group wrote. “With hundreds of well-known climate scientists and tens of thousands of other scientists publicly declaring their disbelief in the catastrophic forecasts, coming particularly from the GISS leadership, it is clear that the science is NOT settled.” - From a March 28, 2014 letter to NASA penned by 49 astronauts and scientists who once worked at the NASA agency now alleging that NASA is playing fast and loose with climate change science. Exactly what the Insider has been telling you for years.

You Must Be A Racist If...

“

Liberalism has a kind of Tourette’s Syndrome these days. It’s constantly saying the words racism and racist. There’s an old saying, ‘If you have the law on your side, argue the law. If you have the facts on your side, argue the facts. If you have neither, pound the table. This is pounding the table. There’s a kind of intellectual poverty now. Liberalism hasn’t had a new idea since the 1960s, except

Obamacare, and the country doesn’t like it. Foreign policy is a shambles from Russia to Iran to Syria to the Israeli-Palestinian conflict and the recovery is unprecedentedly bad. So, what do you do? You say, ‘Anyone who criticizes us is a racist!’ It’s become a joke among young people. You go to a campus where this kind of political correctness reigns and some young person says, ‘It looks like it’s going to rain.’ And, the person next to him looks and says, ‘You’re a racist!’ It’s so inappropriate. The constant invocation of this that it is becoming a national mirth.” - George Will, noted intellectual and Washington Post columnist, frustrated and annoyed by the left’s constant, almost spastic, charge of racism at any point they are criticized for policy reasons. Will was responding to racebaiter Attorney General Eric Holder’s whining that he and President Obama were being treated roughly because of their skin color - as if 4 dead Americans in Benghazi, the clear racial bias of both the president and the AG in the Trayvon Martin case, the Fast & Furious gun-running debacle, the IRS targeting conservative groups and the incredibly incompetent roll-out of ObamaCare were not enough.

Travelers To Travel

“

The returns on many of our products had deteriorated over time due to generally declining pricing, higher losses arising from more volatile weather patterns and the impact of historically low interest rates. We leveraged our industry-leading data and analytics to improve the price and the terms and conditions of our products on a granular account-by-account or class-by-class basis

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and, importantly, we did so with the express dioxide has been made out to be some kind intention of not disrupting our agents, brokers of toxic gas but the truth is it’s the gas of life. or customers.” - Travelers CEO Jay Fishman in his We breathe it out, plants breathe it in. The annual letter to stockholders indicating the green lobby has created carrier is continuing to look at international a do-good industry and it opportunities of expansion after purchasing becomes a way of life, like Dominion of Canada in 2013 and increasing a religion. I understand it’s share of it’s insurance interests in Brasil. why people defend it

How They Won The Election...

“

He has refused to release his tax returns, as we know. If a person coming before this body wanted to be a cabinet officer, he couldn’t be if he did the same refusal Mitt Romney does about tax returns. So the word’s out that he hasn’t paid any taxes for 10 years. Let him prove that he has paid taxes, because he hasn’t.” - Sen. Harry Reid, (D-NV) earning a full Pinocchio during the 2012 elections and adding substance to what is becoming more and more apparent: Liberals lie. Romney later released his tax returns showing full payment and filing of all U.S. tax returns. Dirty Harry, in classic liberal tradition, never had the honor or decency to retract his accusations or reveal his supposed source. Reid’s quote came into spotlight last month as a photo of Romney standing in light to mail his taxes hit the wires.

Former NASA Scientist Calls Global Warming “Nonsense”

“

The theory is that CO2 emitted by burning fossil fuel causes ‘global warming.’ In fact, water is a much more powerful greenhouse gas and there is 20 times more of it in our atmosphere [than carbon dioxide]. Carbon

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when they have spent so long believing in it. If you talk to real scientists who have no political interest, they will tell you there is nothing in global Climate Huckster All Gore warming. It’s an industry which creates vast amounts of money for some people. The temperature of the earth has been going up and down for millions of years. If there are extremes, it’s nothing to do with carbon dioxide in the atmosphere, it’s not permanent and it’s not caused by us. Global warming is nonsense. It’s become almost an industry, as a consequence of this professional misconduct by government advisers around the world. You can’t blame ordinary people with little or no science education for wanting to be seen to be good citizens who care about their grandchildren’s future and the environment.” - Prominent scientist and former NASA researcher Dr. Leslie Woodcock, a Fellow of the Royal Society of Chemistry, a founding editor of the journal Molecular Simulation, a recipient of a Max Planck Society Visiting Fellowship, and a former guest scientist at the U.S. National Institute of Standards and Technology weighing in on Global Warming in an interview with Britain’s Yorkshire Evening Post. For a thorough review of the reality of climate change - see last month’s Insider Advisor: [HERE].

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April 2014

March 2014

February 2014

January 2014

December 2013

November 2013

October 2013

September 2013

August 2013

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

July 2013

June 2013

May 2013

April 2013

March 2013

February 2013

January 2013

December 2012

November 2012

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ZALMA

MOPERM and Gilley filed cross motions for summary judgment. The sole issue before the trial court was whether MOPERM funds covered Gilley’s judgment against Key. The trial court concluded that MOPERM was entitled to judgment as a matter of law because Key was not insured by MOPERM for his conduct in raping Gilley.

ANALYSIS In her sole point on appeal, Gilley argues that the trial court erred in declaring and applying the law when it concluded that MOPERM was not obligated to satisfy the judgment resulting from Key’s rape of Gilley. Specifically, Gilley contends the statute mandates coverage for claims arising out of and performed in connection with official duties and that Key was performing his official duties as a jail “trustee” at the time that he

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raped Gilley.

by the public entity, as otherwise provided by law, and has the same Because statutorily mandated effect as a self-insurance plan coverage supersedes the adopted by the governing body agreement of the parties, the court of any political subdivision of the of appeal first determined whether state. there are any clauses in the memorandum When enacted, “Rape, being the of coverage that the statute are contrary unlawful compelling provided that to statutory moneys in the of a person through fund are available provisions. MOPERM is a for: “(1) The physical force or public body duress to have sexual payment and corporate and settlement of all intercourse. No politic, created claims for which by the Missouri coverage has civilized employer General Assembly obtained by or facility that uses been in 1986 to provide any public entity volunteers would liability coverage in accordance for insured risks with coverages consider an act of to participating offered by the rape to be in the public entities and board; (2) The course and scope of payment and their officers and employees when settlement of tort employment.” engaged in their claims against official duties. any officer or employee of a participating All public entities in Missouri have public entity when the claim is the option of participating in upon conduct of such officer the fund and or employee arising out of and making annual performed in connection with contributions his or her official duties on behalf to the fund in of the participating public entity; the amount (3) Attorney’s fees and expenses d e t e r m i n e d incurred in the settlement and by the board defense of such entities and in accordance persons for claims specified in this with the subsection.” (emphasis added) provisions of the statute. In 1999 the statute was amended Participation in and limited coverage to “(2) The the fund has payment and settlement of tort the same effect as purchase See Zalma Pg 39 of insurance

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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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KIM KOMANDO

comments you made a while ago on Facebook that you should probably take down? Click here to learn how Facebook’s Graph Search tool can help you find them.

see what security system the bank uses. If you work in the healthcare industry, any patient 5. Lying about your past or or identifying information that taking a fake sick day pops up in your photo is a HIPAA violation. There could be fines or You might think fudging your even jail time.

résumé is a great way to get that job. Maybe so, but it’s also a great way to lose that job! It’s easier than ever for an employer to track down gaps and inconsistencies in your work history or education. A quick glance at your LinkedIn profile or your Facebook page See Kim Komando Pg 38

If your workplace doesn’t already have a policy in place regarding photographs of the office, it will soon. Unintentional breaches in security and violations of privacy are becoming too common. 4. Posting an “anonymous” review or comment. If you post online reviews and comments while on your work computer, it’s open to prying eyes. But what about anonymous venting on your own time? If it reflects negatively on your employer, I’d advise against it. Did you hear about the Bitter Barista? He was a coffee shop worker who ran a popular blog where he complained about customers. He wrote it under a pseudonym, but another blog eventually outed him. Despite working at the café for 2½ years, his employer had no choice but to fire him. The lesson: You’re not as anonymous as you might think! Do

you

remember

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some

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CALIFORNIA AGENT SENTENCED TO FIVE YEARS FOR PONZI SCHEME

OS ANGELES, Calif. – Michael Zuno Zuniga, 43, of Fullerton, was sentenced to five years in Los Angeles County Jail and ordered to pay $1.2 million in restitution for his participation in a Ponzi scheme targeting LA area seniors. Zuniga was arrested in June of 2012, after the Attorney General's office filed a criminal complaint alleging 57 felony counts against Zuniga. The complaint alleged that Michael Zuniga and his accomplices defrauded several senior citizens, many from the Latino community, of approximately$1.5 million in a highly organized and sophisticated Ponzi scheme. "The fact that Zuniga used his position as a licensed agent to rip off vulnerable seniors is particularly insulting," said Insurance

“When half of the people get the idea they do not have to work because the other half is going to take care of them and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, this is the beginning of the end of any nation!” 34

Commissioner Dave Jones. "Anyone who targets seniors with scams and rip offs deserves the maximum sentence allowed under the law. I am dedicated to finding and bringing to justice unscrupulous people like Zuniga who violate their fiduciary responsibility in the name of greed."

Omega had not purchased or sold any property for three years prior to January 2007. A further review of Omega's bank records revealed that it was never a profitable business and did not secure investments with property or any other assets as promised. In actuality, Omega's owners diverted $663,000, from the According to a joint California $1.5 million collected to purchase Department of Insurance and real estate for an undisclosed entity California Department of Justice known as Homes Brought Current, investigation, as a licensed agent, and then used the fraudulently Zuniga allegedly owned and diverted funds for personal benefit. conducted business as the Omega Additionally, in true Ponzi fashion, Investment Group (Omega), an payments Omega made to newer unlicensed entity located in Downey, investors were from prior investor California. The investigation revealed funds, rather than business profit. a Ponzi scheme targeting Latinos through solicitation in their homes where Zuniga issued more than $1.3 million in fraudulent securities. The 57 count complaint included securities fraud, grand theft, elder abuse, burglary, and conspiracy. The joint investigation identified 18 victims throughout Los Angeles County. Zuniga assisted many of his victims in refinancing their homes in order to invest in his scheme. He fraudulently represented that Omega was a profitable business that for three years bought and sold real estate that was in foreclosure. Omega claimed that these types of investments were so successful they guaranteed a 15 percent secured interest annually to those who invested. The investigation revealed that

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MORE FLAMES

Party’s political expediency.] * Healthcare.gov would be an exemplary example of government efficiency. [It is instead, an excellent example of government Inefficiency.]

the plans that many are now on that cost more and provide less * No one would lose important access to doctors, hospitals, and coverage, guaranteed. [Over 12 the treatment they need.    Million People have already lost their coverage, as 6 Million policies Mr. Obama and his Advisors were canceled, and that is just the thought it best to lie to America beginning.] about: * 45 Million Uninsured Americans * Being able to keep their policies, would now be insured. [In fact, period! [No they can’t.] only about 2 Million Americans previously Uninsured have been * Being able to keep their doctors, insured, and by the CBO’s own period! [No they can’t.] study, in 10 years from the date of inception, at least 30 Million * Being able to keep their hospitals, Americans will remain - Uninsured!]   period! {No they can’t.] * Having premiums that would be $2,500 a year less, on average. [The premiums are running on average, between 40% and 160% more than pre-ACA]

The list of egregious actions and lies by president Barack Obama and the Democratic Party Congressional Leadership who created this appalling mistake and rammed it down America’s unwilling throat, is endless.

* Only costing America $976 Billion to implement. [It will cost Trillions Now, as predicted by many of us of dollars]    at the beginning of this ludicrous folly, Obamacare is coming off the * No Health Care Rationing (Death tracks (quoting one of its primary Panels) in the law, period! [Yes architects, Senator Max Baucus, there is.]    Democrat). * All components of the law would start on time in order for this complex law to properly mesh and not create problems. [No they haven’t, as Mr. Obama has changed literally every single start date, by fiat, for his own and the Democratic www.underwritersinsider.com

Why? In addition to the plethora of disingenuous and dishonest actions and comments of those who promoted this law, is the barebones fact that the one entity that was supposed to keep ACA in an upright position, the Individual

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Mandate (IM), is patently a joke. It is a bag of feathers, not concrete, and cannot possibly keep ObamaCare afloat. There is no substance to the IM. You’re young and single, and don’t think you can afford your $1,500 premium, pay a $95 fine. Pocket the difference and get that car you want. $1,400 will be a great downpayment. Can’t afford the $20,000 premium for a family of four with an AGI of $80K, pay $800. Big deal. Pocket the difference and go on a trip to Europe.   Now we read that covered Oregon has gone down in flames, and after spending all of the Millions of he US Taxpayer’s dollars, Oregon will be going into the Federal Exchange. Great!   What happens if you live in Oregon, bought a policy through the Exchange (using the old fill out the myriad of papers to get the darn thing), and you need to go through the whole experience again, and sign up through the Feds? Will you be covered before you get your new Fed policy? Maybe, maybe not.

Not even the Feds yet know who had paid their premiums and who has not. Not even the Feds know who still owes and who does not. And from what we can tell given the lack of information the Obama Administration has released, not even the Insurance companies may yet know! Well if you haven’t paid, folks, you ain’t covered! Gee, what a surprise. You have to pay See MORE FLAMES Pg 40 35

TIMING IS EVERYTHING WHEN IT COMES TO FLORIDA CONSTRUCTION DEFECT CASES!

o you found something supplier, third party vender wrong, (a defect), with the and/or design professional. The construction on your property. notice must describe the claim Now what? From the discovery in reasonable detail sufficient of the defect - the steps you take for the party receiving the notice as the “commercial to determine property owner” or the the general “residential property nature of each owner” to preserve construction all available evidence defect and a and claims against the description of responsible parties the damage or are of paramount loss resulting importance. Florida from the defect, law has tedious notice if it is known. requirements that must be given to the Once the notice potential defendant is served, the before the property party receiving owner can file lawsuit the notice has Sommer Horton, Esq. for construction related 30 days to perform defects. Often times, the required a site inspection of the property crucial steps that MUST be taken to assess each construction defect before the suit can be filed, are alleged by the property owner. not known by the property In turn, the person receiving owner. Failure to adhere to Florida’s notice must provide notice to statutory notice requirements can its contractors, subcontractors, result in claims of spoliation of suppliers, independent contractors evidence or it may even negatively and/or other parties that may affect the outcome of your care – potentially be responsible for the monetarily! defects, so that they may likewise have an opportunity to inspect For example, at least 60 days the property and the defects. To before a Civil Complaint alleging prevent significant disruptions to construction defects can be filed, the property owner - inspections a property owner MUST serve a are to be coordinated among written notice of the defect on the parties - so as to minimize ALL potentially responsible parties. the number of inspections at the These parties can include: the property. general contractor, subcontractor,

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Construction defects can quickly sour the joy of moving into a newly built home, newly renovated business or even a condo conversion. However, when the proper steps are taken, the worry and uncertainty of what may occur can be controlled and minimized. Being one step ahead can save you time, money and unnecessary headache. Moreover, the chances for a successful resolution of the matter can be maximized. When faced with construction defects, it is important to contact an attorney familiar with Florida’s Construction Laws as soon as possible so that any defects are accurately and timely documented and the proper responsible parties are timely placed on notice of the defects. It should also be noted that the provisions within the construction contract executed between the parties are vital to determining a property owner’s responsibilities and obligations under Florida Chapter 558. This Article was written by Attorney, Sommer C. Horton. If you would like additional information about Florida’s Construction Defect laws or if you have questions about the content of this Article, please contact Ms. Horton at 561-2990018. Or email her at: shorton@ horton-law-group.com The Underwriter’s Insider

ATLAS GENERAL HIRES ROD TAYLOR AS THE NEW PRESIDENT OF THE COMMERCIAL DIVISION

an Diego, Calif. (May 1, 2014) - Atlas General Insurance Services, LLC, a national multi-line program manager, welcomes Rod Taylor as the new president of the commercial division. Taylor will be based in the new Atlas office located in Dallas. Rod has a very strong background in underwriting, program management and product development. In his new role, Rod will be responsible for growing Atlas' commercial lines business across the nation as well as Atlas' workers compensation business outside of the California marketplace.

for Distinguished Programs where he co-founded DPExpress, a new division for the company. While there, Taylor was also responsible for the marketing, underwriting, and product development of three product programs. Bill Trzos, president and CEO at Atlas General stated, "Rod's extensive experience in commercial lines product development will play an important role in Atlas' goal of becoming a national and diversified presence." About Atlas General Insurance Services:

agency that offers a wide range of insurance solutions. Atlas has expertise in developing and underwriting programs with a variety of insurance carrier partners. Atlas has the primary goal to provide exceptional service and unique options for its clients. For more information, visit atlas. us.com

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Atlas General Insurance Services is a full service general insurance

KRAUTHAMMER: ‘THE SINGLE STUPIDEST REMARK ABOUT FOREIGN POLICY EVER UTTERED BY A PRESIDENT OF THE UNITED STATES’

Taylor comes to Atlas with over 25 years of experience in underwriting, program management and product development for several different lines of business. Most recently, Taylor worked as a program consultant for Distinguished Programs, a national insurance program manager. Prior to that, he was the senior vice president www.underwritersinsider.com

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REAGAN CONSULTING OPENS GROWTH & PROFITABILITY SURVEY FOR 1Q 2014 Covers Progress of Large & Mid-Size Agencies, Brokers

TLANTA (April 15, 2014) -- Reagan Consulting, a management consulting and merger-and-acquisition advisory firm for the insurance distribution system, launched its survey of insurance agency growth and profitability for the first quarter of 2014.

commentary highlighting industry trends impacting agents and brokers. For information about participating in the OGP survey, contact Michelle Appelbaum at (404) 2335545 or by email to michelle@ reaganconsulting.com.

Reagan Consulting's OGP survey, first conducted in 2008, measures agency financial performance in key value creation benchmarks including organic growth and profitability. The results help The firm's Organic Growth and agents and brokers benchmark Profitability (OGP) survey is a their operations in real-time. real-time indicator of growth Reagan Consulting: and profitability results for About Consulting is a privately held insurance agents Reagan and brokers. Approximately 140 management consulting firm agent/broker firms (including providing strategic consulting, roughly half of the industry's valuation, and merger-andlargest firms) regularly complete acquisition (M&A) services to independent insurance the survey, and there is no cost the to participate. Median revenue of distribution system. The firm's the firms completing the survey services for publicly owned typically is $15 million, making it and privately held independent the industry's preeminent survey insurance agents and brokers, of mid-size and large privately bank-owned agencies, and other participants in the insurance held brokers. distribution marketplace include: Agencies are invited to appraisals of fair market value, and acquisitions participate. Each participating mergers advisory, ownership perpetuation agency receives a customized, confidential report of its own planning, strategic planning key employee financial performance compared facilitation, with the survey participants at compensation and equity plan large. In addition, participants design, and agency performance receive Reagan's quarterly benchmarking.

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KIM KOMANDO

could reveal the awful truth. That goes double for those days you feel like playing hooky. In the 21st century, Ferris Bueller would never have gotten away with his epic Day Off! Mr. Rooney would have seen what he was doing on Twitter long before the Von Steuben Day Parade. Here’s a real world example: A New Zealand man took some sick days to compete in a boat race. He lost his job after this smarty-pant’s boss saw the championship photos on Facebook. #fail! Don’t let your boss find any dirt on you. Click here to find and remove online information that makes you look bad.

Copyright 2014, 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 television show or find the station nearest you, visit: http:// www.komando.com/listen. To get Kim’s free email newsletters, sign-up at: http://www. komando.com/newsletters. The Underwriter’s Insider

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court of appeal agreed, that Key was an “Authorized Volunteer” covered by MOPERM’s insuring agreement. The remaining issue, therefore, was whether Key was “acting within the claims against any officer or course and scope of [his] duties” employee of a participating public when he raped Gilley. entity for which coverage has been obtained by any public entity in The “course and scope” language accordance with coverages offered in the analogous context of by the board when the claim is employment is a test of whether upon conduct of such officer the conduct of that employee or employee arising out of and was performed in furtherance of performed in connection with his the employer’s business. Whether or her official duties on behalf of an act was committed within the the participating public entity[.]” scope and course of employment is (Emphasis added) not measured by the time or motive of the conduct, but whether it was The General Assembly added done by virtue of the employment the limiting language after a and in furtherance of the business court decision that held that the or interest of the employer. MOPERM statute mandated that However, if the act arose wholly moneys in the MOPERM fund were from some external, independent available for the payment of tort or personal motive, then it was not claims regardless of whether the done within the course and scope public entity obtained coverage. of employment. A legislative response to a judicial pronouncement provides reliable It is absurd, the Court of Appeal, indications of the intent and concluded, to consider that Key’s purpose of the lawmaking activity. rape of Gilley was undertaken in Following the 1999 amendment, furtherance of the interests of Cole the statute permits the policy County. Clearly, the act arose from coverage to be limited either by the Key’s personal motive. In fact, Gilley terms of the coverage offered by admitted in response to MOPERM’s MOPERM or the coverage obtained motion for summary judgment by the covered entity. that “Key’s duties as a trustee did not include having sex with other The Memorandum of Coverage inmates, whether the inmates defined “Authorized Volunteer” in consented or not…” nor did it pertinent part as “an individual who include assault and battery of other renders any service at the direction inmates. of and directly for the benefit of the Member Agency (as designated The Court of Appeal, therefore, in the Declarations) without held that Key was not acting within expectation of receiving a wage the course and scope of his duties or salary[.]” Gilley asserted, and the when he raped Gilley and the trial

ZALMA

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court correctly concluded that Key was not covered by the MOPERM Memorandum of Coverage issued to Cole County.

ZALMA OPINION Insurance, by definition, is limited to provide defense or indemnity as a result of a contingent or unknown event. Rape, by definition, is an intentional act of physical violence by one against another. Under no definition of the term can a rape be considered accidental. As a Trustee, Key, was charged with delivering food to Gilley, nothing less and nothing more. Rape, being the unlawful compelling of a person through physical force or duress to have sexual intercourse. No civilized employer or facility that uses volunteers would consider an act of rape to be in the course and scope of employment. Fortunately, for MOPERM, the state revised the language to allow such a limitation. The acts of Key, under the old statute, the act of rape might have been concluded to be performed in connection with his or her official duties rather than in the course and scope of the employment.

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MORE FLAMES for it before it goes into effect. Yes indeed, Obama didn’t bother to tell anyone that little fact, either. Nor have the Navigators, those highly paid clerical workers that don’t know anything about insurance, and are only shuffling forms to earn their day’s pay. What the heck, they aren’t licensed in insurance, they aren’t liable if they made a mistake, they don’t carry E&O as a licensed Insurance agent or broker does. No big deal if you get nailed. Covered Oregon is not the only State Exchange expected to crash and burn. Read on:  “ The Washington Post is reporting that the federal government is in talks to take over the Oregon health exchange. This news comes after many failed attempts at launching state-based exchanges, with more than 25% of the state based exchange executive directors having resigned, and multiple states losing CIOs, and COOs for poor performance as a result. However, this may be just the first shoe to drop as many state-based exchanges do not have good sustainability plans in place to support themselves going forward. This could be the first of many takeovers of exchanges, and certainly will not be the last bailout of one.

Earlier this month, the board for the Maryland Health Connection became the nation’s first to decide to replace most of its exchange with different technology. But Maryland did not obtain required federal approval before its vote. And federal officials have not indicated whether they will give the state the $40 million to $50 million that it needs to make the switch — and remain uncertain whether the state exchange has the capacity to correct its own problems.

WEALTH REDISTRIBUTION EXPLAINED

The third state that is the focus of special federal scrutiny is Massachusetts, which was in the vanguard of insurance exchanges, opening its own years before the 2010 federal health-care law. But the commonwealth’s insurance marketplace has developed severe technical problems as it attempted adjustments to interact with the federal system.

CRUISE SHIP TOO SMALL?

“  http://www.forbes.com/sites/ theapothecary/2014/04/25/ federal-government-to-take-overoregons-state-based-exchangefirst-of-many/   This article goes on to say that many other states may be in similar trouble.  I am reminded of the old adage, “Oh what a tangled web we weave, when we attempt to deceive.”

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Is Mr. Barack Obama in the house? Calling Mr. Obama. Sir, America would like to ask you some questions.

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