The Underwriter's Insider May 2015 by The Underwriter's Insider

Features 5 Advertising 9 Kim Komando

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FORMER GEORGIA AGENT/MAYOR ARRESTED FOR INSURANCE FRAUD GEORGIA CLAIMS ADJUSTER AND ACCOMPLICE ARRESTED FOR INSURANCE FRAUD XS BROKERS ANNOUNCES PROMOTIONS

22 Inside Track

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27 Insider Advisor

28 Classifieds

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OBAMACARE’S TROUBLES JUST KEEP ON COMING - OP/ED BY SPENCER LEHMAN, RHU

32 Say What?

34 Back Issues

News THE INTERNET’S DARK SIDE YOU DON’T USE - BY KIM KOMANDO DOES EXTENDED REPORTING PERIOD EXTEND CLAIMS MADE? EXPERT OPINION BY BARRY ZALMA, ESQ.

MIAMI INSURANCE AGENT ARRESTED FOR STEALING PREMIUM FUNDS 7 TAMPA RESIDENTS ARRESTED FOLLOWING TWO-YEAR PIP FRAUD INVESTIGATION JEANS SUBCONTRACTOR ALLEGEDLY CONSPIRED WITH CPA IN MULTIMILLION DOLLAR WORKERS’ COMP INSURANCE FRAUD

CALIFORNIA INSURANCE AGENT SCAMS ELDERLY MEMBERS OF FIRST AME CHURCH

HUMANOID ROBOTS? THEY’RE HERE!

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News 18 19

45TH LAAIA ANNUAL INSURANCE CONVENTION!

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LIFE INSURANCE PRACTICE BUILDING WITH ANNUAL INSURANCE REVIEWS

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CALIFORNIA AGENT ARRESTED FOR ALLEGEDLY SELLING BOGUS BONDS AND STEALING $100K IN PREMIUMS

ASSURANT HEALTH GIVING UP ON OBAMACARE - $64 MILLION LOST IN 2014 - MUCH MORE PROJECTED IN 2015 WARREN BUFFET TO P&C INSURORS: DON’T SWEAT CLIMATE CHANGE IPAD GLITCH GROUNDS DOZENS OF AMERICAN AIRLINE FLIGHTS MIAMI INSURANCE AGENT ARRESTED FOR INSURANCE FRAUD FLORIDA CLINIC OWNER ARRESTED ON P.I.P. FRAUD CHARGES THE MOST OFTEN TOLD PROGRESSIVE LIE - THE INSIDER’S ADVISOR TURMOIL OVER REQUEST ALL GIRLS WEAR HAJIB TO SCHOOL RESULTS IN GOOFY DIVERSITY STATEMENT

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MODERN INSURANCE CONSULTANTS QQ SOLUTIONS H.O.P.E. ST. JAMES INSURANCE COMPANY CLEARWATER UNDERWRITERS ACCU-AUTO NASA - ECLIPSE AGENCY MGT. ACCU-AUTO SLB GROUP ENCORE HR PERSONNEL SOLUTIONS BARRY ZALMA, ESQ. THE TOWING & RENTAL GROUP FYI GEORGIA VIEW & NEWS ORRIN R. BEILLY, ESQ. FINANCEMASTER

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FORMER GEORGIA AGENT/MAYOR ARRESTED FOR INSURANCE FRAUD

TLANTA -- Insurance Commissioner Ralph Hudgens and the Georgia Bureau of Investigation today announced the arrest of a Baldwin County insurance agent on multiple counts of insurance fraud.

According to a joint investigation conducted by Hudgens’ Fraud Investigation Division and the Georgia Bureau of Investigation, Bentley allegedly kept premium payments received from certain customers for insurance coverage and converted Richard Bentley, the money to his 52, of Milledgeville, own use instead Ga., was arrested of sending it to this afternoon and the appropriate charged with 7 counts insurer. The joint of misappropriation of investigation also insurance premiums determined that Richard Bentley, 52 and 5 counts of issuing on several occasions, fraudulent certificates Bentley issued fraudulent of insurance. Bentley, who owned certificates of insurance to and operated the Wilkerson customers when they attempted Insurance Agency located at 221 to purchase insurance through N. Wayne St., in Milledgeville was his agency. booked into the Baldwin County Jail. “These individuals believed

they had insurance coverage, but actually had no legitimate coverage,” Hudgens said. “Such actions constitute a violation of a trust between an agent and policyholder, a violation I take very seriously.” An excess of $34,000 in premium money is believed to have been misappropriated by Bentley. The investigation is ongoing and additional charges against Bentley could occur. Insurance fraud is a felony in Georgia with a penalty of two to 10 years in prison or a fine of up to $10,000. Editor’s Note: For a decade, Bentley had been the mayor of Milledgeville, Georgia until he stepped down in February of this year, stating he was unable to perform his duties due to a medical crises and “difficulties with his business.”

GEORGIA CLAIMS ADJUSTER between 2011 and 2012 while for Allstate, Martin used AND ACCOMPLICE ARRESTED working her position as a supervisor to produce fraudulent accident FOR INSURANCE FRAUD

tlanta Insurance Commissioner Ralph Hudgens announced the arrest of an insurance claims adjuster and her accomplice brother this morning for allegedly stealing more than $79,000 from the insurance company where she was once employed. Arleatha Martin, 42, of Macon,

claims in Battle’s name and issue him settlement payments totaling $79,538.71. Fraud investigators determined that Martin would direct the payments to Battle’s heating and air business, Mechanical Energy Solution, then the duo would split the proceeds. Allstate discovered the alleged theft following a routine audit in An investigation by Hudgens’ late 2013 and reported it to the Fraud Division revealed that Insurance Department. Georgia, and her brother Christopher Lorenzo Battle, 36, of Locust Grove, Georgia, were each charged with seven counts of insurance fraud, seven counts of theft by deception, and three counts of identity theft, the Commissioner said.

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XS BROKERS ANNOUNCES PROMOTIONS

Counselor (CIC) and Construction Risk and Insurance Specialist (CRIS) designations.

then, Ian has been responsible for soliciting, evaluating, quoting and binding sound profitable business. Ian has demonstrated a Eric Wirkus has been promoted proven record of success in sales to Vice President. Eric is in the results, marketing, and effective Firm Responds to Growth Underwriting area and has been communication to build his book By Building Leadership with XS Brokers since 2009. and has been involved in all facets Team Devine stated “Eric continually of the underwriting process demonstrates the utmost including rating, risk selection, uincy, MA - April 15, 2015 professionalism in his daily work, underwriting and service. Several staff promotions day in and day out. He is an up and have been announced coming leader in this organization In 2014, the company recorded at XS Brokers (Quincy, MA and who always gives thoughtful its best year in history in the West Hartford, CT) building advice internally or externally number of transactions and policy its leadership team in order to and has very strong interpersonal volume, and has maintained at a better respond to the firm’s rapid skills.” Eric has over 14 years of high level throughout the start of growth. insurance related experience 2015. including credit analysis and Gabe Carrieri has been promoted marketing/production roles. Eric XS Brokers Insurance Agency, to Executive Vice President. is a graduate of University of New Inc. is a leading Northeast Gabe joined XS Brokers in June Haven with a BA in Economics. wholesale & MGA brokerage. 2005 after a 13-year career in Headquartered in Quincy, MA, XS the investments industry. Since Ian Donegan has been promoted Brokers has been dedicated to then he has devoted much to Assistant Vice President. As a providing retailers with innovative effort to expanding XS Brokers’ member of the XS Brokers team E&S solutions and leading-edge presence and image. He also has since 2006, Ian was promoted service for well over 30 years. been instrumental in crafting to an Underwriter in 2011. Since procedures and best practices for staff development. According to Adam Devine, CEO & President, “Gabe has worked tirelessly to accomplish the goals and objectives of the agency, demonstrating a strong foundation in all lines of insurance. Gabe is well respected in and outside of XS Brokers.” A graduate of Providence College, Gabe also holds a Masters of Business Administration degree from Boston College and has obtained both the Certified Insurance

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MAY 2015 A Publication of AdMax Corp Corporate Offices P.O. Box 31551 Palm Beach Gardens, Florida 33420 Ron Manera, Senior Editor 561.718.0745 • ron@insurmedia.com © Entire Contents 2015 AdMax Corp

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THE INTERNET’S DARK SIDE YOU DON’T USE Really Cool Info - by Kim Komando

atch out, Hollywood has found the Deep and Dark Web. In Netflix’s “House of Cards,” a reporter uses it to hire a hacker to learn more about Vice President Frank Underwood’s past. “CSI: Cyber” says that their team works on the edges of the dark net, the anonymous side of the Internet. “Deep Web” is new documentary about Ross Ulbricht, the convicted creator and operator of Silk Road, an online black market known best for selling illegal drugs. There is the Internet that you and I use. There is the other Internet that we don’t.

The Surface Web is Google, Facebook, Amazon, Komando. com, eBay and everything else a search site typically shows. Depending on the survey, Google only catalogs and searches anywhere from 4% to 16% of the Surface Web.

counterfeit money, stolen items, fake degrees or passports, cloned debit cards, hacking tools, weapons and more, you can. Dark Web sites also let you hire a hit man or escort, buy someone’s identity or swap child pornography.

Finding sites on the Dark Web isn’t easy and I am not going to give you the steps how to do it. Suffice to say, you need to visit the right online directory or hidden search site first to even find it. However, that doesn’t mean Dark Web sites aren’t popular or get mainstream Below the Surface Web is the attention. Deep Web. There, you’ll find abandoned websites, paywalled Let me tell more about Silk Road. sites, research firm databases, government databases and other The FBI took the site down in things that aren’t meant to be 2013, but its name and legend public. In the Deep Web, there is still live on. When the FBI raided a place called the Dark Web. the home of Silk Road’s creator, Ross Ulbricht, it seized $28.5 The Dark Web is where million in untraceable digital the Internet’s currency that was sitting on illicit activities Ulbricht’s computer. That was reside. If you just Ulbricht’s cut of the Silk Road want to transactions. Black market sites buy illegal are doing hundreds of millions, d r u g s , potentially billions, of dollars in g u n s , illicit business. Even with Silk Road gone, there are still numerous sites selling illegal goods, services and the unconscionable. However, the Dark Web might not be dark for much longer.

See Kim Komando Pg 39 www.underwritersinsider.com

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DOES EXTENDED REPORTING PERIOD EXTEND CLAIMS MADE? Expert Analysis & Commentary by Barry Zalma, Esq. Claims Made & Reported Policy Limits Exposure to Loss to a Specific Time

nsurers institute a claims made and reported liability policy to limit their exposure to loss to a specific period of time so that they have no concern for late made or reported claims like those faced by insurers who expose themselves to long tails with an occurrence policy. It allows lower premiums because of the limitation on the period of time the insurer is exposed to potential liability.

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.

first made during the policy period and must be promptly reported to [Continental] in accordance with Section VI, Conditions, paragraph B .” The Policy defines “claim” as “an oral or written demand received by the Insured for money or services, including a demand alleging personal injury, arising out of an act or omission in the rendering of professional real estate services. The service of suit or the institution of an arbitration proceeding against the Insured will be considered a demand.”

Regarding notice of claims to the insurer, the relevant portion of the Policy states: “[t]he Insured, as a condition precedent to our obligations, Continental Casualty must promptly give written Company (“Continental”) BACKGROUND notice to us during the policy sough summary judgment in period or any renewal policy Schleusner v. Continental Cas. Co.. period: ¶ a. of any claim made The Policy Not Reported in F.Supp.3d, 2015 against the Insured during the WL 1609202 (D.Mont.), arguing to Continental issued a claims- policy period; ¶ b. of any notice, a district court in Montana that it is made-and-reported Real Estate advice or threat, whether written not obligated to provide insurance Professional Errors and Omissions or verbal, that any person or coverage in an underlying state Policy (the “Policy”) to RE/MAX organization intends to hold case because notice was not Realty Consultants, LLC (“Re/ the Insured responsible for any timely given by the insured. Max”) for the period September alleged breach of duty or other 6, 2007, to September 6, 2008. act or omission. ¶ This condition Join Barry Zalma’s new Blog: The Policy’s insuring agreement will not be a barrier to coverage http://www.zalma.com/blog stated that “[a] claim must be for those Insureds who do not have personal knowledge of a 10

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claim or potential claim. However all Insureds must promptly comply with this condition upon obtaining such knowledge.”

FACTUAL BACKGROUND On June 27, 2008, Re/Max was advised that the Policy was set to expire on September 6. On August 28, 2008, Re/Max received a renewal invoice informing it that coverage under the Policy would terminate on September 6 if Re/ Max did not renew it. Re/Max did not renew the Policy. The nonrenewal automatically triggered the Policy’s extended reporting period. The automatic extended reporting period will terminate after sixty (60) days. It also made clear that the “extended reporting period” shall not be construed to be a new Policy and any claim submitted during such period shall otherwise be governed by the terms of the policy.

Schleusners, Judith Wahlberg, the former owner of Re/Max, reviewed the letter and complaint and sent the claim to Continental on November 5, 2008, the same day she received it. The Schleusners settled their claims against the Re/Max real estate agent in October 2013 and against Re/Max in April 2014. According to the settlement agreements, both Re/Max and its agent confessed to entry of judgment against them in the amount of $2,191,828.90 and assigned their claims for coverage from any insurer to the Schleusners. Judgment was entered accordingly and, on July 31, 2014, the Schleusners sued the insurer.

ANALYSIS

The interpretation of an insurance policy is a question of law. Courts will not rewrite clear and explicit language in an insurance contract. The primary issue before the Court was one of notice. Under Montana law, The Underlying Lawsuit “a notice requirement in an insurance policy is a condition On April 18, 2008, the Schleusners precedent, and failure to comply filed a state court action against therewith will bar a recovery Re/Max and one of its real estate under the policy, unless the agents, alleging damage as a condition is waived by the result of Re/Max’s conduct while company.” acting as their real estate agents. The Schleusners’ counsel mailed Under claims-made policies, written notice of the action and “coverage is determined by a copy of the complaint to Re/ claims made within the policy Max on November 4, 2008, and period, regardless of when the Re/Max received this notice on events that caused the claim November 5. According to the to materialize first occurred. www.underwritersinsider.com

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Claims-made policies are further classified as either claims-made or claims-made-and-reported policies. Claims-made policies contain no requirement that the claim be reported by a set date, but in the case of claims-madeand-reported policies, notice is the event that actually triggers coverage and is generally required within the policy period or extended reporting period. On its face, the Policy is a claims-made -and-repor ted policy, conditioning indemnity and defense coverage on claims made during the policy period and reported prior to the expiration of the extended reporting period. Whether the claim was timely made turns on the question of whether the initiation of the lawsuit against Re/Max on April 18, 2008, constituted making a claim or whether a claim was initially made on November 5, 2008, when Re/Max first was made aware of the claim. Continental asserts a “claim” requires that a demand for money or services be received by the insured and it must be received when the Policy is in effect. Pursuant to the plain language of the Policy a claim was made on November 5, 2008, the day Re/Max received notice of the underlying lawsuit. Next the court found it needed to decide whether a claim made during an extended reporting period, and not during the policy See ZALMA Page 24 11

OBAMACARE’S TROUBLES JUST KEEP ON COMING OP/ED BY SPENCER A. LEHMANN, RHU

Exchanges And Subsidies

needed health care, the many more millions of Americans now uninsured than the relatively few who are covered on the Taxpayer’s dime on subsidies that the Supreme Court may rule to be illegal, and the many other unintended consequences of this incredibly poorly made and implemented law.

ust when you thought things were really bad with this Trainwreck called ObamaCare, things are getting worse. Surprised? Don’t be. Any law made in the “Dark of night”, behind closed doors with corrupt deals being made and passed into law dependent on “the stupidity of the American Voter” (Jonathan Gruber) is bound to become a law enveloped in trouble. We already know too well about the myriad of lies that President Obama himself along with his cadre of Democratic Party Conspirators spewed like water from a garden hose, and the vastly more expensive premiums causing many Americans to forgo carrying any health insurance at all, preferring to pay the ludicrously low penalties, the stunningly high deductibles that are preventing the average American from accessing

Now comes this, from the Washington Post: 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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“Nearly half of the 17 insurance marketplaces set up by the states and the District under President Obama’s health law are struggling financially, presenting state officials with an unexpected and serious challenge five years after the passage of the landmark Affordable Care Act. Many of the online exchanges are wrestling with surging costs, especially for balky technology and expensive customer call centers — and tepid enrollment numbers. To ease the fiscal distress, officials are The Underwriter’s Insider

considering raising fees on insurers, sharing costs with other states and pressing state lawmakers for cash infusions. Some are weighing turning over part or all of their troubled marketplaces to the federal exchange, HealthCare.gov, which now works smoothly. The latest challenges come at a critical time. With two enrollment periods completed, the law has sharply reduced the number of uninsured and is starting to force change in the nation’s sprawling health-care system. But the law remains highly controversial and faces another threat: The Supreme Court will decide by the end of June whether consumers in the 34 states using the federal exchange will be barred from receiving subsidies to buy insurance.” [HERE]

knowing that those fees won’t be borne by the companies but by the consumers in the form of higher premiums. Yup, makes perfect sense, to Government.

As it turns out, almost no one wanted the job of building exchanges on the very short timeline the administration had given them, leaving the federal government with Further exacerbating this mess many exchanges to build is the fact that should the on the timeline it had made Supreme Court rule against devastatingly short for itself Team ObamaCare as regards to shield it from the political the subsidies, and more and more exchanges fold, blending See ObamaCare’s Troubles- Page 30 their insured’s into the Federal Exchange, those insured’s receiving subsidies will lose them, placing even more Americans at risk of losing their insurance. Way to go Team ObamaCare!

This, from Hot Air:

“You’ll remember that the U.S. Congress, in all its reconciliated wisdom, passed Obamacare with language in it that indicates “Officials are considering only exchanges built by states raising fees on insurers…”. Now are eligible for subsidies. It was that’s a terrific idea! Knowing meant to incentivize states to that the premiums are already build their own Obamacare far higher than Americans were exchanges because the federal promised, let’s raise the fees government had neither on the insurance companies the time nor competence to complete 50 exchanges in time to launch.

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MIAMI INSURANCE AGENT ARRESTED FOR STEALING PREMIUM FUNDS FROM A 70-YEAR-OLD CLIENT

IAMI, Fla. – The Florida Department of Financial Services’ Division of Insurance Fraud today announced the arrest of Miami Lakes insurance agent Patricia Dawn Fernandez for stealing insurance premium funds from an elderly 70-year-old client. In February 2013, while working as the agent in charge at a North Miami Beach insurance agency, Fernandez accepted a premium payment in full from the victim but kept the money and signed

the individual up for a payment to investigate. The Department’s plan without his authorization. Division of Agent and Agency Services, which licenses insurance The victim became aware of agents in the state of Florida, the theft when he contacted also provided assistance in the his insurer after receiving a investigation and is seeking to cancellation notice for non- suspend Fernandez’s insurance payment. The victim’s insurer, agent license. Citizens Property Insurance, informed him of the payment plan Fernandez faces up to 5 years Fernandez had arranged and that in prison, if convicted. The case payments had not been made. will be prosecuted by the office After the victim provided proof of Miami-Dade County State of payment, Citizens contacted Attorney Katherine Fernandez the Division of Insurance Fraud Rundle.

SEVEN TAMPA, FL RESIDENTS ARRESTED FOLLOWING TWO-YEAR PIP FRAUD INVESTIGATION

AMPA, Fla. – The Florida Department of Financial Services’ Division of Insurance Fraud today announced the arrests of seven Tampa residents following a two-year PIP fraud (Personal Injury Protection) investigation involving Integrated Healing Clinic in Tampa. The Division’s investigation discovered that clinic staff had filed several patient claims with multiple insurance carriers for prices that far exceeded actual treatment costs and, in some cases, for treatments that never took place.

ultimately, all Floridians,” said Deputy CFO Jay Etheridge. “I’m proud of the results of this collaborative investigation and hope this serves as a deterrent for anyone considering or currently engaged in similar criminal acts in our state.”

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Sonthonax Ferdinand

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Marie Jean Gilles Valcin

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Marie Celestin

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Josue Aguste

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Elisena Louissaint

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Joseph D Pierre

The National Insurance Crime Bureau and several insurance companies were instrumental to the success of the investigation, including Geico, 21st Century Insurance, Direct General Insurance, Progressive, Safeco Insurance, State Farm Insurance and Liberty Mutual Insurance. The “These individuals orchestrated a complex operation to defraud The following clinic patients were case will be prosecuted by the insurance companies and, arrested for their roles in this office of Hillsborough County State Attorney Mark A. Ober. scheme: 14

This extensive investigation revealed that clinic employee Minette St. Fleur operated as a recruiter, paying patients to go along with the scheme to file fraudulent claims. She was arrested and charged with insurance fraud and patient brokering.

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SUBCONTRACTORS OF TRUE RELIGION BRAND JEANS ALLEGEDLY CONSPIRED WITH CPA IN MULTI-MILLION DOLLAR WORKERSâ&#x20AC;&#x2122; COMP INSURANCE FRAUD Accussed underreported more than $78 million in payroll

OS ANGELES, Calif. Sung Hyun Kim, 57, and her sister Caroline Choi, 59, CEOs of sewing companies that were subcontracted by True Religion Brand Jeans were arrested yesterday along with their CPA, Jae Kim, 71, on 18 felony counts of workers' compensation insurance fraud totaling more than $11 million in losses. The three allegedly conspired to underreport $78.5 million in payroll to multiple insurers including the State Compensation Insurance Fund and two insurance companies owned by Berkshire Hathaway.

Sung Hyun Kim, 57

Apparel, Inc., allegedly conspired with their CPA to hide tens of millions in payroll to avoid paying workers' compensation insurance premiums. Their underground economy conspiracy led to multimillion dollar premium losses for several workers' compensation insurers including State Fund. "The underground economy is not a victimless crime," said Insurance Commissioner Dave Jones. "By underreporting payroll, paying employees under the table and committing workers' compensation insurance fraud, these employers cheat the system and leave their employees at risk."

Caroline Choi, 59

affects everyone and drives up costs in the system," said State Fund Chief of Internal Affairs Dante Robinson. "That's why State Fund actively pursues fraud detection and prosecution. We commend the Department The alleged fraud was committed of Insurance and the other by fabricating payroll records agencies and carriers involved for provided to insurance carrier their diligence in pursuing this auditors with the help of CPA significant alleged fraud case." Jae Kim. State Fund notified Department of Insurance If convicted, Sung Hyun Kim faces 28 years in state prison and her detectives when they discovered payroll reports submitted to bail is set at $700,000; Caroline them by the companies showed Choi faces 15 years and her bail significantly less total payroll is set at $430,000; Jae Kim faces than similar reports submitted 22 years and his bail is set at to the California Employment $520,000. Syung Hyun Kim and Development Department (EDD). Caroline Choi were booked into Evidence also revealed many the Los Angeles County Jail and employees were paid under the Jae Kim was booked into the table through a bank account that Men's Central Jail in Los Angeles. was never disclosed to EDD or The Los Angeles County District Attorney's Office is prosecuting insurance carriers. this case.

According to California Department of Insurance detectives, sisters Kim and Choi, CEOs of Meriko, Inc. and SF "Workers' compensation fraud www.underwritersinsider.com

CALIFORNIA INSURANCE AGENT SCAMS ELDERLY MEMBERS OF FIRST AME CHURCH

Employee and trustee of the oldest AfricanAmerican church in LA befriended and stole more than $100,000 from senior church members

OS ANGELES, Calif. - , was arraigned today in Los Angeles Superior Court and charged with three felony counts of grand theft and one felony count of financial elder abuse for allegedly scamming seniors, many of whom were members of First AME Church, out of more than $100,000.

at the time, sold homeowners, auto and life insurance policies to numerous consumers, but never actually purchased policies and stole their premiums. Fortune's alleged illegal activities occurred over a two-year period and left consumers with no coverage and at considerable financial risk.

"Fortune's alleged criminal enterprise is reprehensible," said Insurance Commissioner Dave Jones. "Fortune violated her fiduciary responsibility when she used her position as a licensed agent and trusted member of the Los Angeles community to take advantage of seniors." Fortune, an employee, trustee and former spokesperson for First AME Church, hosted meetings and met with fellow church members and others to market insurance products. She fabricated bogus insurance documents on official insurance company letterhead in an effort to give consumers the appearance that the policies were legitimate. Fortune used consumers' premiums to pay for her personal expenses, including lease payments for her insurance office and rent for her apartment.

The Department of Insurance is encouraging anyone who purchased an insurance product Department of Insurance with Constance Fortune to contact investigators uncovered evidence CDI Detective Virgil De Los Santos that Fortune, a licensed agent at (323) 278-5000. Constance Gail Fortune, 61

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California Insurance Commissioner Dave Jones

Her insurance license has been inactive since January 30, 2013. The Los Angeles County District Attorney's Office Elder Abuse Unit is prosecuting the case. This case is being investigated and prosecuted under the Life and Annuity Consumer Protection Program (LACPP). LACPP provides grant funds to counties for the prosecution of financial abuse in life insurance and annuity product transactions. Constance Fortune was arrested on April 8 and was arraigned at the Superior Court of Los Angeles on Aril 10. Her court date is set for May 4, 2015 and will not be released on bail at this time. Fortune faces up to five years in state prison if convicted. The Underwriterâ&#x20AC;&#x2122;s Insider

HUMANOID ROBOTS? THEY’RE HERE! While Still Primitive By Science Fiction Standards, They’ve Come Along Way. The Japanese Robot, Asimo, In Particular Moves So Convincingly You’d Swear It Was A Human In A Robot Suit! Watch The Video...

elated news: One expert projected that 30% of current jobs will be replaced by robots by 2025. One impetus for this trend is the rapidly increasing capabilities of these bots - as costs plummet. Another is the $15 per hour minimum wage movement - adding obvious incentives for employers to seek an alternative to expensive, problematic humans.

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CALIFORNIA AGENT ARRESTED FOR ALLEGEDLY SELLING BOGUS BONDS AND STEALING $100,000 IN PREMIUMS Bay area agent arrested for allegedly selling bogus bonds and stealing $100K in premiums

issued multiple unauthorized surety payment and performance bonds to two contractors. He continued to collect premiums on the bonds even after Insurance Company of the West (ICW) terminated his appointment to transact its bonds in August of ONCORD, Calif. - Lars 2010. Payment and performance Hedegaard, 63, of bonds are surety bonds issued Danville, was arrested by insurance companies to ICW notified Department of on two felony counts of grand protect owners of construction Insurance investigators when they discovered surety bonds theft. As a licensed agent doing were issued for multiple business as Westport &Associates construction contracts without Insurance Services Inc., its approval and the insureds Hedegaard allegedly issued 14 were paying premiums that ICW fraudulent bonds to contractors never received. ICW backed all and collected $111,365 in of the fraudulently issued bonds insurance premiums, which he and the contractors suffered no failed to send to the insurance losses. company he transacted bonds for and instead used for personal The Department of Insurance expenses. has begun the process of suspending Hedegaard's "Hedegaard's alleged illegal insurance license and actions left contractors encourages anyone that may vulnerable to loss, which could Lars Hedegaard, 63 have done business with Lars have a devastating effect on their business," said Insurance projects against contractor Hedegaard or Westport & Commissioner Dave Jones. "It is failure and to ensure suppliers Associates Insurance Services important to always check with and subcontractors are paid for Inc. to contact the consumer your insurance company directly work performed. ICW became hotline at 800-927-4357. to make sure the policy you aware of the fraudulent bonds Hedegaard was booked into purchased is valid." when an insured asked for Contra Costa County Jail. The a return of premium as they Between 2009 and 2010, while completed a construction job Contra Costa County District Attorney's office is prosecuting working in Concord, Hedegaard under contract. this case.

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P RA CT ICE BUI L D I NG W I T H A N N UAL INSU R ANCE R E VI E W S by John W. Herrick and Matthew A. Treskovich

uaranteed UL sales are in a multi-year downtrend, and term sales are growing very slowly, if at all. Many advisors are feeling the pinch of much lower insurance commission revenues in a world where many affluent clients no longer have the potential estate tax liability that led to easy guaranteed universal life insurance sales in years past. While some advisors have turned to new product lines like term insurance and chronic illness riders in an effort to maintain the insurance side of their revenue base, the easiest source for new life insurance premium is still largely overlooked. Regular policy reviews are also critical for maintaining a client base. Advisors who fail to regularly meet with clients to review needs and coverage risk losing business to other advisors who approach clients offering this service. The key to successfully using policy reviews as a practice building tool is to approach reviews as an ongoing process, not an event. The initial review for a new client, or an old client who doesn’t have a complete insurance file, can take some effort. However, this up-front work pays off in www.underwritersinsider.com

subsequent years with a much easier review process.

Policy Review Process The first step in the policy review process is gathering documents and conducting some basic factfinding. Documents that should be collected and placed into the client's permanent file include: •

Most recent annual statement

•

Copy of the declarations page, or if possible entire contract

•

Original sales illustrations, if available, and any inforce illustrations previously supplied by the insurance company

•

Any correspondence, endorsements, or amendments received from the insurance company since the policy was issued

•

Most recent written confirmation of the owner and beneficiaries

start with qualitative questions to determine why the client believes they initially purchased the coverage, and then to assess the extent of that need today and looking forward.

Leverage Life Changes and Neglected Policies The annual policy review process is just the beginning! Life changes happen in their own time. Some events that should trigger a policy review are marriage, divorce, pregnancy, the birth of a child or grandchild, purchasing a new home, or changing jobs. The chronic illness of a parent or relative can be a trigger point for a policy review and the discussion of additional needs like long term care insurance or linked benefit products. Social media is one way advisors can be alerted to these events, but old fashioned communication skills and attentive listening still works wonders for practice building.

The advisor should also request a current “policy summary” from the insurance company. If the confirmation of ownership and beneficiaries is more than three years old, an updated written confirmation should be obtained. For permanent policies, an inforce illustration should be requested.

Studies have shown that the majority of trust owned life insurance policies have been effectively orphaned by the trustee. Trust-owned life insurance policies need regular periodic reviews just as much as

The fact-finding process should

See Practice Building Page 39

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Breaking News

illis Group Holdings (NYSE:WSH), the global risk advisor, insurance and reinsurance broker, has confirmed Rafal Walkiewicz and Michael Guo as co-CEOs to lead Willis Capital Markets & Advisory (WCMA), the firm’s insurance investment banking business. They will succeed Tony Ursano, who has led WCMA since 2009. Walkiewicz joined WCMA as a managing director in 2014 after ten years with Goldman Sachs, where he served in the bank’s financial institutions group. Guo joined Willis in 2013 as WCMA’s head of Asia, having been a Partner and Managing Director of Boston Consulting Group’s Financial Services Practice.

change agenda in court, new research shows that the president’s proposed regulations could cost nearly 300,000 U.S. jobs. A report from the center-right American Action Forum says the Environmental Protection Agency’s Clean Power Plan — which would dramatically limit carbon emissions from power plants — could lead to the shuttering of more than 90 coal-fired plants across the country. The fallout from those closures could eliminate as many as 296,000 jobs, data show.”

ilwaukee based Health insurance giant Assurant Health, better known for home and life insurance, posted a $64 million loss in 2014 on $2 billion of premium - and it wants out of the Obamacare racket. The company is reportedly trying to sell its health insurance division and has retained Barclays Capital to analyse and explore potential buyers. Assurant will be out of the health insurance marketplace in 2016. According to one report, “The Milwaukee Journal Sentinel says federal health care law negated one of Assurant Health’s strengths — determining which customers are the

ccording to a recent report by the Washington Times, “On the same day the Obama administration defends its climate22

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best risk. The law bars insurers from turning away customers because of preexisting health conditions.”

exas Governor Greg Abbott has proclaimed May as Texas Occupational Safety and Health Month. The Division of Workers’ Compensation (DWC) provides occupational safety resources and training to increase safety awareness for employers and employees statewide. According to data recently finalized by the Bureau of Labor Statistics, 508 employees died from work-related injuries in Texas in 2013. “The number of fatal occupational injuries in Texas is a reminder of the importance of safety programs, training, and awareness in all workplaces,” said Commissioner of Workers’ Compensation Ryan Brannan. “One of my top priorities is to leverage the workplace safety resources within DWC to help reduce the number of fatal occupational injuries.”

arren Buffet, legendary investor, billionaire and chairman of the Berkshire Hathaway fund which owns two insurance companies www.underwritersinsider.com

says climate change is no factor in property insurance since polices are normally only written for a one year term while projected climate change will occur over a much longer span. The BH fund owns GEICO and General Reinsurance. In unrelated news, Bershire Hathaway reported shares were up 10% in the first quarter of 2015.

International Group (AIG) “Reported a profit of $2.5 billion for the first quarter of 2015 on Thursday, a 56.3% increase over the same period last year, but the bulk of the bulk of the increase — $874 million — was attributable to net realized capital gains. Of that gain, $500 million resulted from the sales of large shareholdings in China’s PICC Property & n a large health care study Casualty Co. Ltd. “ involving almost 2 million individuals conducted in the euters reports that U.K., researches came across China’s Fosun offered surprising results as they $1.8 billion for 80% of the related body weight to the insurer Ironshore, Inc. Fosun risk of dementia. The data had already taken a 20% suggests that underweight position in the company folks are at the highest risk of last August for $464 million. developing dementia while ““This acquisition will heavier souls, including bring synergies for both those considered morbidly parties in the prevention of obese, had a significantly currency risks, expansion lower risk. The risk decreased of assets allocation and as the BMI increased, cooperation in reinsurance leading researchers to business,” Fosun said in speculate there may be an announcement to the some protective effect with Hong Kong stock exchange increased body weight - on Sunday. Fosun has although they cautioned identified insurance has a that being overweight may major growth area for the lead to early death from group. Last year it bought other causes. the insurance arm of Portuguese state bank Caixa ccording to Business Geral de Depositos S.A. for Insurance, American €1 billion ($1.12 billion).”

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ZALMA period, is timely. The Policy defines an extended reporting period as “the period of time after the end of the policy period for reporting claims by reason of an act or omission, which occurred prior to the end of the policy period and is otherwise covered by this Policy.” Additionally, the Policy states, “[a] claim must be first made during the policy period.”

company and the summary judgment was granted in favor of the insurer.

ZALMA OPINION This is another case where greed and the hope of punitive damages from an insurer trumped good sense. ReMax, unless it was bankrupt or judgment proof, had assets to pay some or all of the judgment.

The clear language of these provisions reveal that to trigger coverage, a claim, as defined by the Policy, must be made on the insured within the policy period itself and not during an extended reporting period. The reason for a claims made The claim was, therefore, made and reported policy is to give the insurer confidence that beyond the policy term. its exposure to loss is limited Because the condition in time. There is no long tail. precedent of a timely claim was There is no tail at all as there not met, Continental had no is in an “occurrence” based duty to defend or to indemnify policy. The insurer in this case in the underlying case because was generous and gave the notice requirement in an insured an additional sixty days insurance policy is a condition to report a loss that occurred precedent, and failure to comply during the policy period. The therewith will bar a recovery extended reporting period was under the policy, unless the just that, it was not an extra condition is waived by the sixty days of coverage. 24

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IPAD GLITCH GROUNDED DOZENS OF AMERICAN AIRLINE FLIGHTS

eplacing 35 lbs. of charts and maps with an iPad sounds like a great idea - and it was - until a glitch caused the device to lock up causing “a few dozen” American Airline flights to be cancelled or delayed. While pilots wait for an update from Boeingowned Jeppesen, they have been encouraged to use printed (PDF) versions of the material.

The glitch seemed to be centered around charts for Ronald Reagan Washington National Airport, where the iPad generated multiple charts in error, causing the device to lock up and frustrating pilots about to take to the air. The Underwriter’s Insider

MIAMI INSURANCE AGENT ARRESTED FOR INSURANCE FRAUD

During an inquiry by the victims’ insurer, Citizens Property Insurance, Gomez stated that the checks were deposited in error into his account. Afterward, however, Gomez changed the bank copy of the checks “Payable to” his company’s name, GB Gomez Insurance, Inc., to make it appear as if his customers made the payments to his company. IAMI, Fla. – The During the DFS investigation, Florida Department Gomez confessed to keeping of Financial Services his customers’ insurance funds today announced the arrest of and altering their checks. Miami insurance agent Richard Gomez for insurance fraud. An If convicted, Gomez faces up investigation by the Department’s to 20 years in prison. His case is Division of Insurance Fraud and being prosecuted by the office Division of Agent & Agency of Miami-Dade County State Services revealed that Gomez Attorney Katherine Fernandez diverted his customers’ premium Rundle. The Department will payments into his company’s be seeking to suspend his insurance agent license. bank accounts.

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FLORIDA CLINIC OWNER ARRESTED FOR PIP FRAUD

ACKSONVILLE, Fla. – The Florida Department of Financial Services’ Division of Insurance Fraud today announced the arrest of Roxana Suarez La Rosa on charges related to PIP (personal injury protection) fraud. In 2012, the Saint Jose Injury Center in Jacksonville, which Suarez La Rosa owned and operated, generated more than 50 insurance claims. During this time, at least three cooperating witnesses have indicated that they participated in staged www.underwritersinsider.com

automobile crashes. Each stated that Suarez La Rosa had participants sign for treatments they never received in order to fraudulently bill their insurance companies. Suarez La Rosa faces charges of fraud and racketeering and up to 50 years in prison if convicted. Additional cases related to the Saint Jose Injury Center are pending. The case is being prosecuted by office of 4th Judicial Circuit State Attorney Angela Corey.

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“The Final Authority on Everything!” The Most Oft-Told Progressive Lie

ADVISOR

their “wealth transference” schemes. Why do they need more taxes? To buy votes with esterday I heard the freebies, R.K. And that’s no lie. president say that the Nobody votes against Santa upper 1% must start paying Clause. their fair share of the tax burden. Don’t you agree the Here’s the truth: The upper 1% rich shouldn‘t be getting a are not only paying their 1% of free ride on the backs of the the tax burden (that’s their fair share, right?) They are paying rest of us? R.K., Trenton, N.J. a little more: 45.7%! And if Pay attention, R.K., because you are just talking about those this is important: Progressive’s making more than $250,000? lie. They lied about your health They are paying 48.9% of all care. They lied about the IRS the income taxes!

60% of earners - the group that Progressives love to stir up about tax inequality? They must be getting soaked, right? Wrong R.K. The bottom 60% of earners? They are scheduled to pay less than 2% of the Federal tax burden!

Why don’t the Progressives mention these facts when trashing the upper 1%? Because liberalism and the economic class envy that powers it cannot survive in the marketplace of ideas unless it is misrepresented, twisted and scandal. They lied about the Mexican gun-running scandal. So what about the bottom distorted. They lied when 4 Americans died in Benghazi. They lied about supporting the war in Iraq. What makes you think they are telling you the truth about who pays the taxes in this country? The biggest lie of all, or at least the most oft-told, is that the rich don’t pay their fair share. Progressives tell this lie constantly to divide the country along economic lines and to garner support for tax increases that target top wage earners and push www.underwritersinsider.com

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Registered Customer Service Rep 4-40 Palm Beach County

Experienced Registered Cus-

FREE CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider. tomer Service Representative 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. Place Ad HERE!

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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.

Property Underwriting Manager Monmouth County NJ Our client is seeking to hire a Property Underwriting Manager. 10+ years of current underwriting experience; excess and surplus experience preferred. For more information contact: Lloyd Kushner 800-797-1412 or send your resume in complete confidence to lloyd@yoursearchfirm. com 15-2

Florida Agents with 2-20 License for Palm Harbor Want to work in an exciting work place? Looking for a career and not just a job! We pay higher commissions then the standard industry offers. We are expanding our independent Property and Casualty Insurance agency in Palm Harbor, FL and currently seeking highly motivated professional people who hold a Florida 2-20 insurance license to join our sales team. Contact: gary.s@insurancesolutionstb.com

Premium Finance Sales Rep California

Insurance Premium Finance company is seeking an Account Sales Rep to cover our California territory. The ideal candidate will have experience in insurance industry and/or knowledge of insurance premium financing. Travel throughout the state of California required. All eligible candidates will be subject to a background search. Send resume to opportunities@financebulldog. com 15-2

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Property and Casualty Agents Wanted Looking for self motivated agents in the state of FL. Contact:info@insurebenefits.com

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Personal Lines Producer Destin, FL Area Wanting an experienced self motivated producer for this high end area. Don@mcmahonhadder.com 15-3

Entrepreneurial Underwriter

Entrepreneurial, qualityfocused, P & C underwriter and marketing person seeks part time or full time employment. I bring knowledge, team spirit and enthusiasm to the job. I can work from my office in Cocoa or your office in the Orlando area. Contact cee42@aol.com 15-3

I am looking to partner with an agency located in Broward or Palm Beach County. I would like to be a second location and run business with your office. Contact: gisflorida@outlook.com

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4-40 Wanted Bilingual English / Spanish with experience, to work in Lake Worth, Palm Beach, excellent working conditions requested. Angel 561-755-2586. 15-4

Experienced Personal lines CSR Wanted St. Pete FL Looking for a self motivated, ambitious inside sales account rep, 2-20 lic., may consider 4-40 for full or part time, duties include quoting and servicing accounts and account rounding for Business owners, Workers Comp, General Liability and other lines of business Established agency since 1958 Contact: rbozeman@bozemaninsurance.com 15-4 The Underwriter’s Insider

220 Needed for Outside Sales!!

Local South Broward county ins office needs an outside licensed producer. Can work from home and office. Must have experience writing comm lines policies. Very high compensation package. Send resume and cover letter today! florida.firstins@yahoo.com 15-5

Independent Agency Owners Wanted Florida/Georgia

Experienced and Licensed Insurance CSR

Join one of the fastest growing independent agencies in the country. Our owners earn the highest commissions and donâ&#x20AC;&#x2122;t waste time on non-money making service work. Save 5 years or more starting or transition your existing agency to a model that carriers give preference to. Visit http://weinsuregroup. com/ or contact a Territory Manager at damon.fico@weinsuregroup.com or megan.null@ weinsuregroup.com

Large, independent property and casualty insurance agency located in Lake Mary, Florida is seeking 220, 2044 or 440 licensed and experienced customer service representatives. We represent over 40 insurance carriers. Great written and verbal communication skills are required.

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LICENSED 220 WANTED-FLORIDA INDEPENDENT LEAD GENRATOR FACE TO FACE OR PHONE CONTACT-COMMERCIAL & PERSONAL LINES-COMMISSION ONLY POSITION-50% NEW BUSINESS,25% RENEWALS-MUST HAVE OWN E&O COVERAGE-SERIOUS INQUIRIES ONLY. APPLEINSURANCE@MSN.COM 15-2

Experienced CSR Wanted - Louisville Kentucky Insurer specializing in personal jewelry coverage seeks CSR. Job includes processing applications, giving quotes & issuing policies. Must have agency CSR experience, good phone presence, and hold an Ins Property license. You should also have an interest in jewelry. Computer keyboarding skills & working knowledge of MS Office are crucial factors. Agency Management systems experience is a plus. 15-2 www.underwritersinsider.com

$30k salary plus monthly bonus and excellent benefits. Check us out at www. TheFIS.com 15-3

EXPERIENCED AUTO INSURANCE AGENT EXPERIENCED AUTO SALES PROPERTY AND CASUALTY 220 AGENT SEEKING PROFESSIONAL AGENCY WHO APPRECIATES A WELLROUNDED SALES AGENT WHO IS EXCELLENT IN SALES AND VERY METICULOUS WITH RECORDING MEMOS AND HANDLING PAPERWORK. MUST HAVE A WARM AND FRIENDLY ATTITUDE AND BE CONCERNED ABOUT THE CLIENTS NEEDS.

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Experienced 440 or 220 Licensed Agent Wanted Busy Hollywood agency seeks 440 or 220 Licensed Agent with min 2yrs experience in non-standard auto & homeowners. Must be professional and have proven ability as producer. Please email resume to joanne@accreditedins.com. 15-1

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2-20 or 20-44 Wanted-Miramar FL Send resume to timinsurance1@yahoo.com, fax 954404-7234 or visit us 6590 Pembroke Road Suite B., Miramar, FL 33023 15-2 29

Continued From Page 13

Product Manager Experienced Insurance Agent QQSolutions, Inc. - Strong insurance agency experience? Love technology and want to shape the future of software for independent agents? Join our Product Management team. Must have extensive experience working in commercial lines. 2-20 (220) Agent or 4-40 (440) CSR License Required. Direct experience using and administering agency management systems. Contact bnason@qqsolutions.com

Florida 2-20 or 4-40 Agent Hialeah

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Small agency has an opening position for a commercial lines agent with homeowner and auto insurance knowledge in Hialeah Fl 33018 15-2

Producer/Brokers Wanted: Nationally

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Experienced Licensed CSR Wanted Ft. Lauderdale Agency needs experienced 440 licensed CSR for renewals/ sales. Renew policies upon expiration dates; obtain information to determine coverage changes/requirements, and binding. Quote to shop renewals. Prepare/provide information to insureds using verbal and written communications. Cross-sell opportunities for auto, life, and flood. Fax resume to 561948-4582 or email to ahart@ accessaip.com. 15-3

2-20 Agents & Producers USG Insurance Services, Inc. Wanted - FL & GA is a national wholesaler and MGA seeking experienced commercial E&S Producer/ Brokers for multiple locations. Mandatory E&S insurance experience, only those with a proven track record in sales should apply that are self-motivated, team players. Find out more about the position and how to apply at www.usgins.com under Careers. 15-3 30

We Insure Group, Inc. is one of Florida’s ‘Fastest Growing Companies’ and is looking to expand even more! Currently seeking new Agency Owners in Central and North Florida, as well as, experienced Producers throughout the entire state! Please Contact: We Insure Group Franchising franchise@ weinsuregroup.com 855-483-3901 15-3

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OBAMACARE TROUBLES unpopularity of Obamacare in an election year. Oops. Even in states most dedicated to building their own exchanges from Day One— Maryland and Oregon, for example— the product they created was expensive and dysfunctional to the point of uselessness. Since launch, Maryland and Oregon have enrolled precious few Americans in Obamacare (I believe Oregon maintains the record with a giant goose-egg), and have had to jettison their multi-million-dollar disasters and ask the federal government to take over.” [ HERE ] What might be of interest to the reader is that these clearly critical articles are not

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appearing in more conservative news media, but in the more liberal media, who are finally coming to the realization that the UnACA (UnAffordable Care Act) was a “Trainwreck”, quoting Senator Max Baucus, one if its chief architects, and has been and is creating wreckage on its continuous path down the tracks.

clients who received federal help to pay for their health insurance in 2014 got an unwelcome surprise when it came to their refund.

Sixty-one percent of those filers saw their refunds reduced by an average of $729 — or a third of the group’s overall average of $2,195, the consumer tax services provider said But wait (as they say in the ads), Monday……So roughly 5.5 there’s more! million ObamaCare enrollees had to return, on average, Again from Hot Air: almost a quarter of their premium subsidies. Given that “And, who can say how much these subsidies are available a subsidy is anyway? Not the only to families with modest federal government, which incomes, that’s got to hurt.” is in charge of deciding what they should be. Certainly not. It is too early to know how the Nope, that’s on you, and if you Supremes will rule on the issue miscalculate in your attempt of the subsidies. We will know No to tell the future, you’ll pay for in a couple of months. it on your taxes the following matter how they rule, the fact is that ObamaCare continues year: to be a political mistake of ‘The majority of H&R Block egregious proportion, borne not of a desire to do great things for American’s Health Care System, and provide Uninsured Americans with access to quality health care, but to create a Claim to Fame for its “creator,” Barack Obama and those who rode in on this train on Mr. Obama’s coattails: the Nancy Pelosis, Barney Franks, Harry Reids and others of their ilk who were far more interested in their legacies than in the best interests of the American Public - whom they have betrayed. www.underwritersinsider.com

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VIEW THE FAMOUS OBAMA WORKOUT! (Now Banned On YouTube...)

suit.

Cultural Richness or Death Cult? SAY City Schools diversity is a source WHAT? “Mason of pride. I am committed to continuing to celebrate all of our cultural richness.”

Notable Quotes You May Have Missed!

From The Hillary Resume...

“

My two cents’ worth -- and I think it is the two cents’ worth of everybody who worked for the Clinton Administration health care reform effort of 1993-1994 is that Hillary Rodham Clinton needs to be kept very far away from the White House for the rest of her life. Heading up health-care reform was the only administrative job she has ever tried to do. And she was a complete flop at it. She had neither the grasp of policy substance, the managerial skills, nor the political smarts to do the job she was then given. And she wasn’t smart enough to realize that she was in over her head and had to get out of the Health Care Czar role quickly.” J. Bradford DeLong, one of the key designers of the infamous HillaryCare initiative that failed to materialize during the Clinton Administration. In fact, many credit (blame) Hillary for the Republicans taking back the House in 1994. The U.C. Berkeley economic professor and Democrat will not likely be voting for Hillary should she actually win the nomination for the 2016 race with the collection of scandals dragging at her pants

Mindy McCarty-Stewart, Principal of Mason High School in Mason, Ohio in an email cancelling a school event which had requested that all female student arrive at school in a Muslim hijib because a Muslim student-group wanted to “combat stereotypes that they face when wearing head coverings.” One wonders if M c C a r t y - S t e wa r t is “celebrating” the subjugation of women practiced in Islam and symbolized by the hajib and the burqa. It seems to make little sense for Americans to “celebrate” an invasive, metastasizing death-cult currently responsible for world-wide terror and chaos - a cult that refuses to assimilate into our culture while demanding that we accommodate theirs. The French, wisely, have reconsidered their fondness of diversity as it concerns the Muslim communities who are changing the very face of their country and have banned the repressive, indentity-stealing burqa. Bravo. Good Riddance Dirty Harry

“

He’s an absolutely poisonous figure in Washington, D.C. He’s been a disaster for this country. I think a lot of the dysfunction in Washington can be traced directly to his doorstep. I think it is very good for the country, for the world, and especially for the

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Democrats that Harry Reid is retiring. I’ve never seen anything so abhorrent in my life as Harry Reid. And he is an equal opportunity basher, right? He goes after everybody. And I think it is so frankly disgusting, and I’m a pretty level-headed person. But that person, Harry Reid, has been the most destructive entity in Washington when it comes to stability. By far.” Dana Perino, former press secretary for President George W. Bush, after the angry, sour Sen. Harry Reid (D-Nev) recently took one of his frequent and gratuitous jabs at her former boss.

Give Them Space To Destroy?

“

I work with the police and instructed them to do everything that they could to make sure that the protesters were able to exercise their right to free speech. It’s a very delicate balancing act, because, while we tried to make sure that they were protected from the cars and the other things that were going on, we also gave those who wished to destroy, space to do that as well.” Baltimore Mayor Stephanie RawlingsBlake shortly before the big riots of last month, making sure those who www.underwritersinsider.com

“wished to destroy” had plenty of space to do so. She later claimed “the media” had twisted her words, but there was no twisting required to discern her clear message. It was later reported by a senior Baltimore law enforcement officer that Rawlings-Blake had issued a direct order to ‘stand down” as riots erupted in the city. The news coverage of officers standing by and even retreating while lawless thugs burned down the community absolutely seem to confirm that claim - and the perception that the mayor completely bungled the response to the rioters. The Great Uniter?

Or The Great Divider?

“

President Obama, when he was elected, he could have been a unifying leader. Instead, Obama has made decisions that I think have inflamed racial tensions, that have divided us rather than bringing us together. He has not used his role as president to bring us together. He has exacerbated racial misunderstandings. The vilification of law enforcement has been fundamentally wrong and it has hurt the minority community.” Sen. Ted Cruz (R-Texas) commenting after the Baltimore riots on the horrible state of racial tension that has built up under the Obama administration - where almost every interaction between individuals and law enforcement is characterized as evidence of racism long before the facts are in evidence.

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THE FAMOUS BLUE-ANGELS

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REAGAN CONSULTING: AGENT/BROKER VALUATIONS 'NEVER HIGHER' M&A and Perpetuation Workshop Covers Transactions & Long-Term Independence

TLANTA (May 4, 2015) -Reagan Consulting hosted more than 150 industry leaders at a three-day workshop on agent/broker mergers and acquisitions and perpetuation, cosponsored by the Council of Insurance Agents & Brokers and the American Bankers Association. The sentiment of the conference was upbeat, since brokers are enjoying their best combination of growth and profitability in nearly a decade. And deal activity is brisk and valuations are at record highs, according to Reagan Consulting. Values being paid for insurance agencies and brokerage firms have "never been higher," said Bobby Reagan, CEO of Reagan Consulting.

an extremely valuable exchange of ideas, information and perspectives," said Reagan. Kevin Stipe, president of Reagan Consulting, commented on agent/ broker transactions: "We have never seen valuations as strong as they are today. Already high deal multiples have jumped another 10 percent during the past 18 months. There is a lot of demand among all buyer groups, but private equity buyers are now most active -- 43 percent of all acquisitions in 2014. These buyers are most responsible for pushing acquisition multiples to record levels. With widespread buyer demand, there is nothing today to suggest that valuations will be going down any time soon."

A conference highlight was a panel of the CEOs of six of the most active buyers: Pat Gallagher of Arthur J. Gallagher; Jim Henderson of Assured Partners; Powell Brown of Brown & Brown; Marty Hughes of Hub International; David Eslick of Marsh & McLennan Agency; and Mike Sicard "When you bring together the of USI. These leaders reported strong leaders of the highest performing acquisition pipelines and collectively firms in the country and candidly projected they hope to acquire more discuss the issues and opportunities than $1 billion in revenue in the they are facing, you end up having coming year. But a key theme of the conference was equipping firms to build an agency perpetuation plan to remain independent, since a shortage of producer recruiting could hinder success, according to Reagan Consulting.

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CLICK HERE! About Reagan Consulting: Reagan Consulting is a management consulting firm providing strategic consulting, valuation, and mergerand-acquisition (M&A) services to the independent insurance distribution system. The firm's services include appraisalsoffairmarketvalue,strategic planning, M&A advisory, ownership perpetuation planning, key employee compensation and equity plans, and agency performance benchmarking. Reagan Consulting co-developed the well-known Best Practices study and produces the quarterly Organic Growth & Profitability benchmark survey. 37

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

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

Expert Testimony

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

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

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The Underwriter’s Insider

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KIM KOMANDO

DARPA, the research arm of the Defense Department that also works on projects like flying aircraft carriers, is making key parts of its Memex search system available as open-source software. That means anyone can download and adapt Memex in new ways.

exclude irrelevant information. Hyperion Gray is working on a Web crawler that doesn’t rely on links for connecting websites. It can find similar information on sites that are completely unrelated.

Most of these applications are geared toward law enforcement, researchers and scholars, but so was the original Internet. You never know what new superpowered search system is going to come out of it that changes the Unlike other popular search way we find information. systems, Memex can search the Dark Web, and it’s already being In the meantime, you’re going to used to hunt down human be hearing more about the Dark traffickers. Other research Web from both Hollywood and organizations, including NASA’s in the news. In fact, you might Jet Propulsion Laboratory, MIT, even have your kids or grandkids Carnegie Mellon University and asking about it. Click here to find Stanford University, are working out what I said to my son about on their own software built on the Dark Web when he asked, and Memex technology. what you need your kids to know. After you’re done watching that Some of these programs are video, be sure to check out more going to help law enforcement exclusive clips from my weekly track down criminals, while others national talk radio show. could give Google a run for its money. Stanford’s DeepDive figures out connections between Copyright 2015, WestStar groups of data. So you can search Multimedia Entertainment. All for a person and an organization rights reserved. and the system will figure out how they’re related. Carnegie On the Kim Komando Show, the Mellon’s TJBatchExtractor creates nation’s largest weekend radio talk personal and company profiles show, Kim takes calls and dispenses from advertisements, which is advice on today’s digital lifestyle, useful for tracking down criminals from smartphones and tablets to offering illegal activities on Dark online privacy and data hacks. For Web forums. her daily tips, free newsletters and more, visit her website at Komando. A company named Diffeo has a com. Kim also posts breaking tech system that learns what kind of news 24/7 at News.Komando.com. answers you’re looking for so it can www.underwritersinsider.com

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PRACTICE BUILDING individually owned policies.

Simple Changes Make a Big Difference Premium Payment Mode Clients can often save 5% or more by making one simple change to their life insurance policies. Paying premiums annually can be significantly less expensive over the course of a year compared semi-annual, quarterly, or monthly premium payments. Advisors who find clients paying more frequently than annually should explain the potential savings.

Health Improvements If the client has made significant positive improvements to their health, for example by quitting smoking, dieting and exercising, or simply taking better care of themselves, they may qualify for better rates in a new policy than what they are paying in an existing policy. For term life insurance policies,

See Practice Building Page 40 39

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PRACTICE BUILDING potentially beneficial changes that can be identified during the review process include: •

End of the level term period

•

End of the conversion period, or changes in the conversion privilege: term policies are often convertible to “any product” that the insurer offers for the first few years, and later changed to convert to a moreexpensive, less-favorable, conversion product.

•

Free underwriting upgrades: In some cases, misalignment of the insurer's term and and permanent underwriting classes may allow the insured to receive a favorable underwriting upgrade with no evidence of insurability during as part of a term conversion.

Permanent policies have their own particular key points that should be assessed during the policy review process. Policy performance should be compared to the original sales illustration, and adjustments made to planned premium payments if interest crediting inside the policy is less than projected. If the policy has outstanding loans, the tax impact of a lapse or surrender should be estimated, and inforce 40

illustrations should be requested to evaluate the potential out of pocket cost required to prevent a tax event. No-lapse guarantee policies, also known as secondary guarantee products, require special attention. The no-lapse guarantee provisions is often contingent on specific timing of premium payments. Paying a premium during the grace period may reduce or eliminate the no-lapse guarantee. In some cases, making a premium payment too early can compromise the death benefit guarantee. Advisors should request annual confirmation of the guarantee status of policies sold with no-lapse guarantee features, if the guarantees are not explicitly described on the annual statement. It's no secret that today Americans live longer than they ever have. While increasing longevity can be a challenge in retirement planning, it can actually benefit clients during insurance policy reviews. Because people now generally live longer, many older life insurance policies were more expensive than current versions of the products. Annual costs of insurance have decreased, making newer policies less expensive. Clients who own these older policies can benefit from swapping into newer policies with lower costs and expenses.

Conclusion Table of Contents

Ultimately the goal of most financial advisors is to strategically grow a practice while serving clients well and earning a good living. Annual insurance reviews do offer the possibility to turn up immediate revenue generation opportunities, but more importantly the review process gives advisors a tool for building long term client loyalty. If the conclusion of the review process is that the current policies are performing well and fit the clients objectives, it is not wasted time for the advisor! Clients will appreciate having a financial advisor who takes the time to thoroughly evaluate their insurance needs and coverages. This demonstration of commitment is a sure-fire way to gain clients' confidence and referrals. The annual insurance review process is an excellent tool for advisors who desire a client book built on long-term relationships. Creekmore Insurance Group is a full-service wholesale insurance brokerage specializing in life, individual disability, and long term care insurance. Creekmore serves independent agents, agencies, and financial advisors across the United States. John is the VP of Business Development, and Matt is the CFO. They have decades of combined experience in advanced case design and underwriting. He can be reached via email Matt@LifeAgents.

com or at 800-936-0339. For more information, visit www. LifeAgents.com The Underwriter’s Insider