February 25 Insurance Advocate

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FACE THE FACTS • It costs 9 to 11 mes more to recruit a new customer than to keep an exis ng one.

• An increase in loyalty of only 7% can li life me profits per customer by as much as 85%. • O en, an increase in loyalty of just 3% is equivalent to a 10% across-the-board cost reduc on program.

When Brand Loyalty Gets Palpable sent mattis hendrerit lorem sed efficitur. Cras mattis sapien eget tempor sollicitudin. Pellentesque in pretium nisi. Mauris tortor metus, faucibus nec mi non, semper posuere dolor. Suspendisse lorem lacus, ullamcorper sit amet tristique eu, egestas id eros.

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Vol. 130 No. 4 | February 25, 2019

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Vol. 130 No. 4 | February 25, 2019

14 FACE THE FACTS...When Brand Loyalty Gets Palpable

Contents

4 Foreword: Agency M&A Breaking Records at Breakneck Speed

Steve Acunto, Publisher 6 HR Update: Top Nine Mistake Employers Make in Employment Applications

Alfred T. DeMaria 8 Trends: Agents and Carriers: JD Power Survey Identifies Level of Satisfaction 10 In the News: Actuarial Foundation Receives One of its Largets Grants from the New York Life Foundation

Largest Insurance Convention in the State on the Horizon

12

In the News: NY Bill Round Up

The IMUA Rises Against Hunger

20

Guest Article: Jumping Into Medicare For All With Eyes Wide Shut Marilyn M. Singleton, M.D., J.D.

18 In the Associations: LICONY Celebrates 51st Anniversary

24 On My Radar: Attempt to Save Premium is Costly to Insured

Barry Zalma 26

Looking Back: February 12, 1994

28 Courtside: Question Exists as to Whether Snow Tubing Park’s Negligence Increase the Danger

Lawrence N. Rogak 29 In the News: iCas Announces Board of Directors with Experts from Data Science, Analytics 30 In the Associations: Aquiline Announces Agreement to Acquire info@insurance-advocate.com www.insurance-advocate.com

Relation Insurance Services

MSO Honored by Emmanuel Cancer Foundation INSURANCE ADVOCATE / February 25, 2019 3

[ FOREWORD ]

STEVE ACUNTO, EDITOR & PUBLISHER

Agency M&A Breaking Records at Breakneck Speed

4 February 25, 2019 / INSURANCE ADVOCATE

ergers and acquisitions of insurance agents and brokers last year broke several records in 2018, according to OPTIS Partners’ annual report. OPTIS logged a record 626 deals in the United States and Canada in 2018, including 330 transactions in the second half of the year and 148 transactions during the fourth quarter.

There were 611 M&A deals in 2017, previously the most active year. The report covers firms selling primarily property-and-casualty insurance, both P&C and employee benefits, and employee benefits agencies. Private equity/hybrid buyers accounted for 424 transactions, representing 68 percent of the total, compared with 383 transactions and 63 percent in 2017.

The top five buyers were Acrisure (101 acquisitions), Hub International (59), AssuredPartners (37), Gallagher (36) and Broadstreet Partners (34). All were in the PE/hybrid category except publicly owned Gallagher. Privately owned firms completed 107 transactions in 2018, down from 137 acquisitions in 2017. This was the first decrease from this group since 2013.

By seller type, property-and-casualty-focused agencies dominated the list. They accounted for 345 of the 2018 transactions, 55 percent of the total. Employee benefits brokers accounted for 146 transactions, 23% of the total, but were down from the 174 recorded in 2017 There were 142 unique buyers in 2018, down from 177 in 2017 and the lowest total since 2014. At the same time, the top 10 buyers in 2018 accounted for 62 percent of the number of transactions compared to only 56 percent in 2017 and 52 percent in 2016.

Some key takeaways from this year’s results include the following, according to Daniel P. Menzer, OPTIS partner: • Buyers continue to find attractive agencies to acquire • Agency valuations continue to creep upwards, pushing revenue and EBITDA multiples to levels seldom if ever seen before

• Internal perpetuation is a challenge because of the increasing gap between the value third-party buyers are willing to pay and internal transaction values. Many owners find these values very compelling.

• Equity and debt capital remain plentiful to fund PE/hybrid buyers.

• Finally, as we’ve said in the past and strive to reinforce every day with our clients:

- If you’re a buyer, pay attention to cash flow and be careful not to overpay.

- If you’re a seller, identify the best cultural and operational fit. Take advantage of strong pricing before things change.

- If you’re neither, ignore all the hype and run your business like a business and strive for improvement every day.

S I N C E

1 8 8 9

VOLUME 130 NUMBER 4 FEBRUARY 25, 2019

www.insurance-advocate.com EDITOR & PUBLISHER Steve Acunto 914-966-3180, x110 sa@cinn.com CONTRIBUTORS Jamie Deapo Alfred T. DeMaria Sari Gabay Lawrence N. Rogak Barry Zalma PRODUCTION & DESIGN ADVERTISING COORDINATOR Gina Marie Balog-Sartario 914-966-3180, x113 g@cinn.com SUBSCRIPTIONS P.O. Box 9001, Mt. Vernon, NY 10552 914-966-3180, x113 circulation@cinn.com PUBLISHED BY

The OPTIS database tracks a consistent pool of the most active acquirers and other announced transactions, and is, therefore, a reasonably accurate indication of deal activity in the sector.

“The actual number of agency acquisitions was far greater than the number reported, as many buyers and sellers do not report transactions, and some acquirers do not report small transactions,” Timothy Cunningham, OPTIS Managing Director said.

The full report, 2018 Agent & Broker Mergers & Acquisition Update, can be read online at http://optisins.com/wp/2019/01/ december-2018-ma-report.

OPTIS (www.optisins.com) is an important M&A firm.

CINN Global Initiatives P.O. Box 9001, Mt. Vernon, NY 10552 (914) 966-3180 | info@cinn.com www.cinn.com President and CEO Steve Acunto

CINN GROUP

INSURANCE ADVOCATE® (ISSN 0020-4587) is published bi-monthly, 20 times a year, and once a month in January, July, August, and December by CINN ESR, Inc., P.O. Box 9001, Mt. Vernon, NY 10552. Periodical postage pending at Greenwich, CT and additional mailing offices.

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[ HR UPDATE ]

ALFRED T. DEMARIA

Top Nine Mistakes Employers Make in Employment Applications uEmployment applications – almost every employer in the country uses them.

They don’t seem as if they would be a basis for liability, but they do contain a number of minefields of which employers should be aware. A general theme of federal and state laws, regulations, and guidance is that employers should avoid asking an applicant questions that elicit information that cannot legally be considered in making a hiring decision.

Below is a list of the top 9 mistakes to avoid in application forms: 1. Including any disability-related or medical questions. If an employer asks an applicant such a question, the EEOC or a court may presume prohibited information was a factor in hiring.

2. Not including an atwill disclaimer.

In addition to the Employee Handbook, employers may want to inform applicants that the application is not intended to and

Check your state and local law for all protected classifications such as sexual orientations or marital status. does not create a contract or offer of employment.

3. Not including a non-discrimination statement. Employers may want to inform applicants that the company is an equal opportunity employer and does not discriminate in hiring based on state, local and federal-protected classifications (i.e., race, color, national origin).

Check your state and local law for all protected classifications such as sexual orientations or marital status.

4. Requesting graduation dates in the education section. Asking applicants for graduation dates may lead

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Mr. Zalma recently published on Amazon.com with links at the Zalma Books site, with the following: Non Fiction books: • “Random Thoughts on Insurance • “Insurance Fraud & Weapons to Defeat Volumes IV and V: Digests from Barry Insurance Fraud” In Two Volumes Zalma’s Blog: ‘Zalma on Insurance’” • “The Compact Book on Adjusting Fiction: Liability Claims: A Handbook for the • “HEADS I WIN, TAILS YOU LOSE” Liability Claims Adjuster” • “Candy and Abel: Murder for • “The Compact Book on Adjusting Insurance Money” Property Claims” • “Ethics for the Insurance Professional” • “Murder And Insurance Fraud Don’t Mix” • “Rescission of Insurance” • “Murder & Old Lace” • “The Insurance Examination Under Oath”

Alfred T. DeMaria is a Senior Partner at Clifton Budd & DeMaria, LLP and is recognized as one of the preeminent management labor attorneys in the field. He has extensive experience in all areas of employment law, including advice on avoiding liability under disability, race, gender, age and related anti bias laws.

Mr. DeMaria advises on compliance with all federal, state and local laws governing the employment relationship, including the defense of lawsuits brought by employees against the companies that employ them.

Prior to his work at Clifton Budd & DeMaria, LLP, he served as a trial attorney with the National Labor Relations Board.

to a finding of discriminatory intent on the basis of age.

5. Asking about arrests and convictions, without appropriate disclaimers.

New York State and New York City expressly prohibit employers from asking about applicants’ criminal histories on employment applications (these are called “ban the box” laws). Other neighboring states are on their way to passing similar laws.

So, check your local laws.

6. P utting a background check acknowledgement on the employment application. Under the Fair Credit Reporting Act (FCRA), the disclosure of an employer’s intent to obtain a background check and section must be in a “stand-alone” document separate from the application.

CONTINUED ON PAGE 8

6 February 25, 2019 / INSURANCE ADVOCATE

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8864 Developmental Organizations 8865 Residential Care Facility Hotel/Motel 9052 Hotels NOC 9058 Restaurants in Hotels

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4310 Greeting Card Dealer 7390 Beer/Ale Dealer 7999 Hardware Store 8018 Wholesale Store/NOC 8021 Meat, Fish Dealer-Wholesale 8032 Dry Goods, Clothing, Shoe 8047 Drug Store 8048 Fruit & Vegetables 8111 Plumbers Supplies Dealer-Wholesale Restaurant 9061 Clubs 9071 Full Service Restaurants 9072 Fast Food Restaurants– Including Drivers 9074 Bars & Taverns Social and Health Services 8854 Home Health Care – Prof. Employees 9051 Home Health Care – Non Prof. Employees 8857 Counseling – Social Work – Traveling Oil and Gas Dealer 5193 Oil Burner Installation 8350 Fuel Oil & Gas Dealer 8353 Gas Dealers, LPG & Drivers

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Derek Smith INS ADV.indd 1

1/21/19 7:55 AM

[ TRENDS ]

HR UPDATE CONTINUED FROM PAGE 6

AGENTS and CARRIERS: JD Power Survey Identifies Level of Satisfaction uJ.D. Power has just issued its 2019 U.S. Independent Insurance Agent Satisfaction Study.

The second annual study, developed in alliance with the Independent Insurance Agents & Brokers of America (IIABA), evaluates the independent P&C insurance agent’s business outlook, management strategy, and overall satisfaction with personal lines and commercial lines insurers in the United States.

According to JD Power, “It confirms that the more satisfied independent insurance agents are with a carrier, the more business they will conduct with that carrier. But unfortunately, it also finds that firms aren’t in a position to take advantage of this, because overall agent satisfaction with the service they receive from insurers is among the lowest of business relationships measured

by J.D. Power”.

Read that again.

Whew!

Following are key findings of the 2019 study: • Independent agent satisfaction with carriers linked to placement rate: There is a strong relationship between higher levels of independent agent satisfaction and a greater number of business relationships with insurers. Likewise, independent agents that are more satisfied with the service they receive from insurers are more likely to recommend that carrier and place a greater number of products with that insurer • Independent agents cite low satisfaction with carriers: Overall independent agent satisfaction with personal lines insurers is 733 (on a 1,000-point scale). For commercial lines, that score falls to 720.

These are among the lowest overall satisfaction scores in any business 8 February 25, 2019 / INSURANCE ADVOCATE

“A strong partnership between Trusted Choice independent insurance agents and their carriers is critical to achieving a great consumer experience.”

study currently conducted by J.D. Power, lagging even financial advisors (737) • S upport/communication and quoting are keys to agent satisfaction: As the most important factors in determining agent satisfaction, the support/communication factor in personal lines and the quoting factor in commercial lines are key areas for insurers to focus to increase satisfaction Auto-Owners Insurance ranks highest among personal lines for the second straight year, with an overall satisfaction score of 800. Progressive (762) ranks second while Safeco and Travelers rank third in a tie with 737.

Liberty Mutual performs highest among commercial lines for the second straight year, with an overall satisfaction score of 749. Chubb and The Hartford rank second in a tie with 720.

“A strong partnership between Trusted Choice independent insurance agents and their carriers is critical to achieving a great consumer experience,” said Bob Rusbuldt, president & CEO of the Independent Insurance Agents & Brokers of America. “Carriers that focus on ease of doing business achieve high satisfaction scores from agents. Ultimately, carriers that invest in their agent platforms benefit from a distribution force that has more time to spend providing value-added service to customers rather than back-end administrative tasks.”

7. Asking for a photograph. Guidance from the EEOC prohibits employers from asking applicants for photographs.

8. Asking about marital or familial status. Asking questions about an applicants’ marital status, the number of kids they have, the ages of their children or dependents, or provisions for childcare could be construed as discrimination on the basis of sex.

9. Asking about citizenship. Believe it or not, the anti-discrimination provision of the Immigration Reform and Control Act (IRCA) prohibits employers from discriminating against an applicant because he or she is not a U.S. citizen. The Form I9, rather than an employment application, is the appropriate forum to determine an applicant’s authorization to work status.

Employment applications are not only one of a company’s first contacts with applicants and new employees, they are also written documents that can later be used as evidence in an adversarial proceeding. Avoiding these common blunders can help employers maintain best practices for employment application materials.[IA]

Avoiding these common blunders can help employers maintain best practices for employment application materials.

Study Rankings T h e J. D. Po w e r 2 0 1 9 U. S .

Independent Insurance Agent Satisfaction StudySM surveyed 1,466 P&C insurance independent agents for a total of 1,561 evaluations of personal lines insurers and 1,193 evaluations of commercial lines insurers that they had placed policies with in the prior 12 months. The study was fielded from September through November 2018.[IA] For more information about the U.S. Independent Insurance Agent Satisfaction Study, visit https://www.jdpower.com/ business/resource/us-independent-insurance-agent-satisfaction-study.

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[ IN THE NEWS ]

Actuarial Foundation Receives One of its Largest Grants from the New York Life Foundation uThe Actuarial Foundation has announced that it has received a $300,000 grant, one of its largest, from the New York Life Foundation. With a 25-year legacy of enhancing math education and financial literacy, The Actuarial Foundation will use these funds to support two education initiatives: The Hardest Math Problem, a new math competition, and the expansion of Math Motivators, a tutoring program.

• T he Hardest Math Problem is a middle school math competition that is part of the Expect the Unexpected with Math® series developed with educational publisher Scholastic.

- T he contest is designed to help students in grades 6, 7 and 8 practice critical thinking supported by accurate computation.

- The contest will involve an engaging, real-world story and problem.

- To reach more girls, The Actuarial Foundation and Scholastic will ensure that the questions crafted appeal to girls, using best practices that encourage depicting girls as active participants in realistic storylines.

- Topics are presented in real-life scenarios such as a teen using her phone at the zoo.

- Three grand prize–winning students will receive a laptop and $5,000 for a 529 college savings plan. Three runner-up students will win a tablet.

• T he Math Motivators tutoring program is volunteer-driven and designed to help close the achievement gap by pairing underserved middle and high school students with professional actuaries and col10 February 25, 2019 / INSURANCE ADVOCATE

“We are so grateful to the New York Life Foundation for supporting The Actuarial Foundation and its commitment to changing lives with math education....”

lege students for free math tutoring and SAT preparation.

- T he program will be expanded in the following cities: Hartford, CT; Chicago, IL; Seattle, WA; St. Paul/ Minneapolis, MN; Portland, ME; New York, NY and Lincoln/Omaha, NE. “This grant exemplifies our strategy of supporting strong out-of-schooltime programs that help prepare middle school students for challenging work

and position them for a successful transition to high school,” said Marlyn Torres, senior program officer, New York Life Foundation. “The Actuarial Foundation has deep expertise in promoting math education in a fun and engaging way.

Middle school students across the country will develop important foundational math skills because of this partnership.”

“We are so grateful to the New York Life Foundation for supporting The Actuarial Foundation and its commitment to changing lives with math education. Today more than ever, teachers and students need the high-quality innovative resources, community building and mentorship this generous grant from the New York Life Foundation will provide,” said Jason Leppin, executive director at The Actuarial Foundation. “This incredible support means more students and teachers will have access to hands-on, personalized math resources and tutoring at no cost.”[IA] The Actuarial Foundation is a 501(c) (3) organization committed to changing lives through math education. Established in 1994, the mission of the Foundation is to enhance math education and financial literacy through the talents and resources of actuaries. The Foundation’s vision is an educated public in pursuit of a secure financial future. For more information, please visit www.actuarialfoundation.org.

Largest Insurance Convention in CT on the Horizon uHARTFORD, Conn.—Professional Insurance Agents of Connecticut’s Annual Convention, the largest industry networking and education event in the state of Connecticut, will be held at Foxwoods Resort Casino Mashantucket, March 7-8.

“The PIACT Annual Convention is the must-attend event of the year for all industry professionals throughout the region,” said PIACT President Ken Distel. “The convention offers attendees the opportunity to participate in edu-

“The PIACT Annual Convention is the must-attend event of the year for all industry professionals throughout the region” cational seminars, network, and view the latest insurance products and services available to them and their clients during the trade show.”

In addition to the induction of PIACT’s 2019-20 slate of officers, the

[ IN THE NEWS ] event will include an opening reception, featuring DJ Mike Nigretti, followed by a coffee and dessert reception on Thursday evening.

Agents will have ample opportunity to earn continuing education credits over two days. Three education sessions are available: E&O: Recommending At Least Full Coverage, presented by John Fear, CPIA, CISR; EPLI Insurance in the #MeToo Era, taught by Bradford J. Lachut, Esq.; and Cyber Liability and Data BreachProtecting the Future of Your Client’s Business, also taught by Fear. [IA]

the opportunity for additional funds to be raised based on the PGA golfers’ performance throughout 2019.

For every eagle by each player, Burns & Wilcox will donate $1,500 toward the charities. More information can be found at https://www.burnsandwilcox.com/team-burns-wilcox-champions-and-charities.

Team Fox was chosen by Simpson to support its work with Parkinson’s disease research as well as its dedication to help improve therapies for those currently living with Parkinson’s.

Burns & Wilcox Partners With Golfers Expanding Philanthropic Initiative u Burns & Wilcox, one of North America’s leading wholesale insurance broker and underwriting manager, announced the launch of its signature philanthropic initiative called Champions & Charities with brand ambassadors Webb Simpson and Jimmy Walker.

Through the program and in partnership with the Burns & Wilcox brand ambassadors, the company will give a minimum of $50,000 to the PGA golfers’ charities of choice. The charities to receive the donations are Team Fox, the grassroots fundraising community of The Michael J. Fox Foundation for Parkinson’s Research, and Global Lyme Alliance (GLA).

“We always look for ways to deepen our important relationships. Launching a new philanthropic initiative with our brand ambassadors was a great way to extend our partnerships with Simpson and Walker,” said Alan Jay Kaufman, Chairman, President and CEO, H.W. Kaufman Group, parent company of Burns & Wilcox. “Our brand ambassadors share the core values of integrity, hard work, competitiveness and professionalism with our brand and culture, which aligns with our shared passion for giving back to our communities.”

A minimum of $25,000 will be donated to each organization, with

“We always look for ways to deepen our important relationships. Launching a new philanthropic initiative with our brand ambassadors was a great way to extend our partnerships with Simpson and Walker.”

“Team Fox is a very important cause to me because of my late fathers’ struggle with Parkinson’s disease,” said Simpson. “I am grateful that Burns & Wilcox supports this organization in its fight against a disease affecting millions of lives every year.”

GLA, an organization dedicated to fighting Lyme disease worldwide through research, education and awareness initiatives and connects patients to qualified Lyme disease specialists, was selected in support of Walker who battles with the disease.

“Global Lyme Alliance means a great deal to me and my family as my wife, who sits on the board of directors, and I were both recently diagnosed with Lyme disease in 2017,” said Walker. “I am humbled by the generosity of Burns & Wilcox to expand our work together

this way and to help bring more awareness to Lyme disease, which impacts more than 427,000 people across the U.S. each year.”

The sponsorship with Walker began in 2016 and expanded to include Simpson in 2017. Walker wears the Burns & Wilcox logo on the right side of his golf shirt and Simpson showcases the logo on the left side of his golf shirt.

The company logo is also featured on their respective caddies.

In addition to the $50,000 donation to the PGA brand ambassadors’ charities of choice, Burns & Wilcox will be extending its resources to other various organizations through the Champions & Charities initiative over the course of this year.

The third Burns & Wilcox brand ambassador includes Justin Abdelkader, alternate captain of the Detroit Red Wings. This past October Burns & Wilcox and Abdelkader joined together to give a $25,000 donation to Forgotten Harvest, a Detroit-area nonprofit that works to provide fresh and nutritious food to those in need. In addition to their relationship with Abdelkader, Burns & Wilcox has an official partnership with the Detroit Red Wings and the company’s logo is visible at center ice of Little Caesars Arena.[IA]

Serving New York, New Jersey, Pennsylvania and Connecticut Since 1889

www.insurance-advocate.com INSURANCE ADVOCATE / February 25, 2019 11

[ IN THE NEWS ]

N.Y. Bill Round Up

Standards For Equitable Payments of Insurance Commissions, Insurance for Historical Motor Vehicles and more

BY P I A N Y

u Multiple bills have been introduced in the state Legislature that may affect you, your agency and your clients. Three of the bills were introduced by the Chair of the Senate Insurance Committee, Neil Breslin, D-44. The fourth bill was introduced by Assembly Member David DiPietro, R-147.

S.3641 was introduced by Breslin and is a legislative priority for PIANY. This bill would require any carriers, and producers representing them, that utilize the driving history records of insureds as an underwriting or rating factor for personal automobile policies to run motor vehicle reports prior to binding a policy. Currently, carriers are permitted to run driving history record reports at any time, which can change the cost of a policy without a client knowing; this practice is sometimes referred to as bait and switch. In his sponsor’s memo, Breslin noted: “Consumers should be able to rely

on the quotes for insurance policies to be fair and accurate so they can determine whether the coverage is affordable.

This practice detracts from that ability and leaves the consumers bound to policies that are much more expensive than originally represented and in some cases, unaffordable. Requiring all carriers to run motor vehicle reports prior to binding coverage would guarantee the consumer will receive a fair and accurate quote prior to committing to the expense.”

S.3623, also introduced by Breslin, would establish a standard for prompt, fair and equitable payments of insurance commissions, or other compensation arrangements. Licensed insurance producers have experienced slow payments from health plans and carriers for placement of health insurance coverage, inside and outside the Health Exchange. This bill is modeled on an existing law that requires prompt payment of healthcare providers by health plans after provision

The IMUA Rises Against Hunger uThe Inland Marine Underwriters Association (IMUA) announced that this year’s 89th Annual Meeting will include an afternoon devoted to The Rise Against Hunger project. IMUA’s 2019 Annual Meeting will be held in Leesburg, VA at the Lansdowne Resort & Spa, May 19-22, 2019. It includes two days of educational opportunities for both seasoned and newer underwriters and brokers who specialize in inland marine coverage.

Attendees who elect to volunteer for the Rise Against Hunger project during Monday afternoon’s recreational activities will participate in a meal packaging assembly-line of highly nutritious 12 February 25, 2019 / INSURANCE ADVOCATE

“...Rise Against Hunger meal packaging volunteers produce millions of nutritious meals annually that are then distributed to partners in countries around the world....” dehydrated meals made up of rice, soy, vegetables and 23 essential vitamins and minerals. Rise for Hunger estimates that a group of 40-50 volunteers can package more than 10,000 meals in just two hours.

In making the announcement Kevin O’Brien, IMUA President & CEO, said, “This year we have added this very special event to our IMUA Annual Meeting

of medical or other healthcare services to covered patients, insureds or subscribers (see Insurance Law Section 3224-a).

Two bills also were introduced that are related to exemptions from photo inspections as a prerequisite for obtaining physical damage auto insurance. The first bill, S.3635, introduced by Breslin, relates to creating a limited exception from the requirement for historical motor vehicles. A historical motor vehicle was defined as manufactured more than 25 years ago, or deemed by the New York Department of Motor Vehicles as a vehicle of historical, classic or exhibition value. The second bill, A.5358, introduced by DiPietro, completely removes the requirement and makes it optional for the carrier. As of a regulatory change a few years ago, there currently are certain instances in which a carrier can choose not to use a photo inspection prior to granting physical damage insurance, but they are limited (see QS31396 in the PIA QuickSource library). The current law, put in place over 25 years ago, was written in an effort to reduce fraudulent claims; with modern technology, this is less of a problem. PIANY continues to support repealing this requirement.

PIANY will continue to monitor these bills.[IA]

schedule. Attendees to our Annual Meeting can volunteer their time to help the Rise Against Hunger organization in their efforts to feed those in need.”

According to Rise Against Hunger, “The organization’s approach to ending hunger centers on mobilizing a global network of hunger champions. Rise Against Hunger meal packaging volunteers produce millions of nutritious meals annually that are then distributed to partners in countries around the world. Those partners are best able to address the causes and effects of hunger based on their local presence and expertise. Through our thorough monitoring and evaluation process, we ensure the meals distributed by those partners are used as a tool to change lives by promoting education, improving students’ health and nutrition, addressing gender inequalities, stimulating economic growth and fighting child labor.”[IA]

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FACE FACTS

• It costs 9 to 11 times more to recruit a new customer than to keep an existing one.

• An increase in loyalty of only 7% can lift lifetime profits per customer by as much as 85%.

• Often, an increase in loyalty of just 3% is equivalent to a 10% across-the-board cost reduction program.

When Brand Loyalty Gets Palpable 14 February 25, 2019 / INSURANCE ADVOCATE

Brand Keys’ 2019 Customer Loyalty Engagement Index Notes “Lasting Loyalties”

u Brand Keys 24th annual Customer Loyalty Engagement Index (CLEI), conducted by the New Yorkbased brand engagement and customer loyalty research consultancy has identified “loyalty” as a profit-generator for brands that know how to create it and market it.

Financial Service Loyalty Generators Top brands customers rated highly at creating emotional engagement and loyalty in the Financial Service categories are: Banks 1. Chase 2. Citibank 3. PNC 4. Bank of New York 5. Capital One 6. TD Bank 7. Bank of America 8. Wells Fargo

Car Insurance 1. USAA 2. GEICO 3. The Hartford /

Esurance 4. Allstate 5. Progressive 6. State Far 7. Nationwide

Home Insurance 1. The Hartford 2. State Farm 3. GEICO / USAA / Allstate 4. Nationwide 5. Travelers Life Insurance 1. Nationwide 2. State Farm 3. Met Life 4. Mutual of Omaha 5. New York Life

Credit Cards 1. Discover 2. American Express 3. Capital One 4. Chase 5. Visa 6. Mastercard Mutual Funds 1. Fidelity 2. Vanguard 3. T. Rowe Price 4. TIAA Cref 5. Schwab

Online Brokerages 1. Schwab 2. Vanguard 3. Fidelity 4. E*Trade 5. Ally

Online Payments 1. PayPal 2. Google Wallet 3. Authorize.net 4. Amazon Payments 5. Dwolla

Tax Preparation 1. Turbo Tax 2. H&R Block 3. Tax Act 4. Liberty Tax Top 10 Brands That Know The Secret of Loyalty “Brands looking for guaranteed profits, can’t do better than loyal customers,” noted Robert Passikoff, president of Brand Keys. This year’s 2019 CLEI identified 10 brands regularly #1 in their categories, some from the time the category was established.

“The following brands are perennial stars.”

Discover Card – Credit Cards: 23 years Avis – Car Rental: 20 years Google – Search Engine: 19 years

Domino’s – Pizza: 15 years Dunkin’ – Out-of-Home Coffee: 13 years Konica Minolta – MFP Office Copiers: 12 years

“TODAY, LOYALTY IS A FUSION OF EMOTIONAL ENGAGEMENT, TRUST, AND AN ABILITY FOR A BRAND TO ENGAGE; TO MEET OR EXCEED EXPECTATIONS CONSUMERS HOLD FOR THEIR IDEAL PRODUCT OR SERVICE.

Hyundai – Automobiles: 10 years AT&T Wireless – Wireless: 10 years Amazon.com – Online Retailer: 10 years Amazon Kindle – E-Reader: 9 years

Meeting Expectations + Brand Trust + Emotional Engagement = Lasting Loyalty “Today, loyalty is a fusion of emotional engagement, trust, and an ability for a brand to engage; to meet or exceed expectations consumers hold for their Ideal product or service. The brands on top of this year’s category lists know that,” said Passikoff. “More importantly they know how.”

According to Brand Keys, consumer expectations increase overall each year on average by 25%. “Trust has become the connective tissue between brands and loyalty,” said Passikoff. “Expectations for trust are up across all categories and brands an average of 250+% year over year.

Meanwhile, customer concerns regarding privacy, security, and brand transparency have reached a tipping point.”

CONTINUED ON PAGE 15

INSURANCE ADVOCATE / February 25, 2019 15

CONTINUED FROM PAGE 15

Loyalty’s Fiscal Bottom Lines “Marketers relying on a definition of ‘loyalty’ and ‘engagement’ as something they’ll recognize when it impacts their brands will be disappointed,” said Passikoff.

“Brand awareness is not loyalty; satisfaction is not loyalty; entertainment is not loyalty.”

In 2019, and for the foreseeable future, there are three concrete fiscal realities of loyalty and engagement that marketers should keep in mind: • It costs 9 to 11 times more to recruit a new customer than to keep an existing one.

• An increase in loyalty of only 7% can lift lifetime profits per customer by as much as 85%.

• D epending upon the sector, an increase in

“DECISION-MAKING HAS BECOME INCREASINGLY EMOTIONALLY-DRIVEN OVER THE PAST DECADE.”

loyalty of just 3% is equivalent to a 10% across-the-board cost reduction program.

A complete list of the 2019 CLEI’s loyalty and engagement winners can be found at: http://brandkeys.com/ portfolio/customer-loyaltyengagement-index “Decision-making has become increasingly emotionally-driven over the past decade,” said Passikoff. “But the addition of increased expectations for brand trust has radically altered the category landscape. Neither ‘business as usual’ nor ‘more social networking’ will cut it in this

16 February 25, 2019 / INSURANCE ADVOCATE

new brandscape. Brands have to move loyalty to the top of their to-do lists.”

Methodology For the 2019 CLEI survey, 51,673 consumers, 16 to 65 years of age from the nine US Census Regions, self-selected categories in which they are consumers and brands for which they are customers.

Forty-five (45%) percent were interviewed by phone, forty-five (45%) percent via faceto-face interviews (to include cell phone-only households), and 10% were interviewed online.

Brand Keys uses an independently-validated research methodology that fuses emotional and rational aspects of the categories, identifies four path-to-purchase behavioral drivers for the category-specific Ideal, and identifies the

values that form the components of each driver, along with their percent-contribution to engagement, loyalty, and profitability.

These assessments are leading-indicators of consumer behavior, identifying such activities 12 to 18 months before they appear in traditional brand tracking or in focus groups. Brand Keys’ research technique, a combination of psychological inquiry and statistical analyses, has a test/re-test reliability of 0.93, and produces results generalizable at the 95% confidence level. It has been successfully used in B2B and B2C categories in 35 countries.[IA]

“…BRANDS HAVE TO MOVE LOYALTY TO THE TOP OF THEIR TO-DO LISTS.”

Your New York DBL/PFL Partner

Learn more, please visit:

www.shelterpoint.com/AboutUs

Copyright © 2019. ShelterPoint Life Insurance Company | Mktg#18-206-1 | G1 01/19

Sheltering You.

[ IN THE ASSOCIATIONS ]

LICONY Celebrates 51st Anniversary On February 7, LICONY staff and member companies came together at MetLife for a full day of activities and to celebrate LICONY’s 51st Anniversary.

The day included a full briefing to the membership on LICONY’s Legislative program and Regulatory agenda for 2019.

Assembly Insurance Committee chair Kevin A. Cahill spoke to membership about the new climate in the Legislature. LICONY president and CEO Mary Griffin also moderated a Regulatory conversation with Department of Financial Services staff members Laura Evangelista, Executive Deputy Superintendent, and James Regalbuto, Deputy Superintendent for Life.

The evening culminated in a reception in the historic MetLife board room. New Acting DFS Superintendent Linda Lacewell was in attendance as well as Assembly Insurance Committee ranker, Andrew R. Garbarino and member, Kevin Byrne. LICONY past president, Thomas E. Workman also joined in the celebration. Tom now serves as an Independent Member of the Financial Stability Oversight Council.

MetLife Executive VP of Corporate Affairs and Chief of Staff, Michael Zarcone introduced Senate Deputy Majority Leader, Michael Gianaris. Senator Gianaris spoke to those gathered about the flurry of legislative activity and took questions from the audience.[IA]

3.

1.

4.

2.

5.

1. L eft to Right: Leah Walters (ACLI), Bridgett Dunn (Talcott Resolution), Laura Haines (Guardian Life) 2. Joe Carragher and Jeannette Hunte (National Benefit Life) 3. M ary Griffin (LICONY President & CEO), Linda Lacewell (DFS interim Superintendent), Senator Michael Gianaris 4. D avid Melman (ShelterPoint) and Richard White (ShelterPoint/LICONY Board Member) 5. M ike Zarcone (MetLife, EVP of Corporate Affairs & Chief of Staff to CEO), Senator Michael Gianaris, Mary Griffin, and Dave Hattem (Senior Executive Director, General Counsel, and Secretary AXA/LICONY Board Member) 18 February 25, 2019 / INSURANCE ADVOCATE

[ IN THE ASSOCIATIONS ]

6.

10.

7.

11.

8.

12.

9.

13.

6. Nancy Davenport (Brighthouse Financial), Norah Jones (Brighthouse Financial), Suzanne Loomis (Primerica) 7. Mike Zarcone (MetLife, EVP of Corporate Affairs & Chief of Staff to CEO) introduces the Honorable Senator Michael Gianaris at the LICONY Reception 8. Left to Right: David Sloan (Genworth), James Regalbuto (NYSDFS), Michael Ferik (Guardian Life, LICONY Board Member) 9. Assemblyman Kevin A. Cahill addresses participants at LICONY’s Legislative and Regulatory meeting 10. Ed Babbitt (National Integrity Life), Doug Wheeler (New York Life), Robbie Meyer (ACLI) 11. David Sloan (Genworth), and Assemblyman Andrew R. Garbarino 12. Timothy Walsh (Executive Vice President & Chief Financial Officer, American National Life), Michael Murphy (Greenberg Traurig), Michael Berlin (Greenberg Traurig) 13. DFS Chat: LICONY President and CEO Mary Griffin moderates a discussion with DFS members Laura Evangelista and James Regalbuto INSURANCE ADVOCATE / February 25, 2019 19

[ GUEST ARTICLE ]

MARILYN M. SINGLETON, M.D., J.D.

Jumping Into Medicare For All With Eyes Wide Shut uThe unveiling of the ballyhooed House of Representatives Medicare for All Act of 2019 bill will be met with chants of “equal healthcare for all!”

While the country will be forced into a government-run program, the limousine liberals and champagne socialists will keep their array of medical care choices — whether on or off the record.

A key feature of the Medicare-forAll bills is the elimination of private health insurance that duplicates benefits offered by the government. Given the coercive nature of the existing Medicare program, we should be very concerned. Medicare Part A (hospital insurance) is mandatory for those eligible for Medicare who receive Social Security payments. If beneficiaries want to opt out of Part A, they must forfeit all of their Social Security payments — including paying back any Social Security benefits received up to the time Part A was declined. So a “beneficiary” is punished for saving federal dollars by declining to be on the government healthcare dole.

Enrollment in Medicare Part B (all physician and most outpatient services) is not mandatory but beneficiaries are financially coerced to enroll. The standard 2019 Part B premium amount is $135.50 per month, progressing to $460.50 based on income. But if a beneficiary doesn’t sign up for Part B when first eligible, he must pay a lifelong penalty of 10 percent for each full 12-month period that he could have had Part B. So if the beneficiary waited 3 years before signing up, he would pay a 30 percent higher premium throughout his lifetime.

Medicare Part D (prescription drugs) also imposes penalties on those who do not sign up when eligible unless they are in a Medicare Part C/Medicare Advantage HMO that covers drugs. The 20 February 25, 2019 / INSURANCE ADVOCATE

lifetime penalty is not trivial: one percent per month of the average monthly premium (currently about $33) for all the months they were not signed up.

Will we be somehow punished if we do not want to enroll in the new government program? Will there be an “individual mandate” penalty? Hopefully we’ll know before the bill is passed and we can find out what’s in it.

If beneficiaries want to opt out of Part A, they must forfeit all of their Social Security payments — including paying back any Social Security benefits received up to the time Part A was declined.

Another troubling aspect of a new government health program is the lack of an articulated budget or cost controls. According to the Medicare Board of Trustees 2018 Report, Medicare’s Part A trust fund will be depleted in 2026, three years earlier than the 2017 projection. Our 2017 healthcare costs were $3.5 trillion with $1.2 trillion attributed to Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP). Apparently, financing would depend on monies earmarked for existing federal health programs, heavily taxing “the rich” and an unspecified increase in everyone’s taxes.

In addition to notoriously underestimated cost projections, Medicare underpayments to hospitals must be addressed. Hospitals receive 88 cents on the dollar from Medicare and 90 cents on the dollar from Medicaid for their expenditures on these patients, translat-

Dr. Singleton is a board-certified anesthesiologist. She is also a Boardof-Directors member and Presidentelect of the Association of American Physicians and Surgeons (AAPS). She graduated from Stanford and earned her MD at UCSF Medical School. Dr. Singleton completed 2 years of Surgery residency at UCSF, then her Anesthesia residency at Harvard’s Beth Israel Hospital. While still working in the operating room, she attended UC Berkeley Law School, focusing on constitutional law and administrative law. She interned at the National Health Law Project and practiced insurance and health law. She teaches classes in the recognition of elder abuse and constitutional law for non-lawyers.

ing to reimbursements of $41.6 billion and $16.2 billion, respectively, below actual costs. Currently, hospitals make up the shortfall with higher payments

...a “beneficiary” is punished for saving federal dollars by declining to be on the government healthcare dole.

from private insurance — which will no longer exist. Slashing oft maligned CEO salaries would be a drop in the bucket.

Hospital workers — unionized or otherwise would not accept pay cuts.

So how will the inevitable funding shortfall be addressed? Private practiCONTINUED ON PAGE 22

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tioners may be enticed by the promise of a steady stream of patients and income or strong-armed into submitting to lower reimbursement or by new licensing requirements. Of course, many of us remember being paid with IOUs from the California Medicaid program.

The promise of completely “free” medical care of every sort imaginable gives one pause. What happens when the money runs out? Because Medicare defines what care is reimbursable as “medically necessary,” the simple answer is to decrease covered services.

But by then, the private health insurance industry would be decimated and our options limited.

Proponents of government-sponsored healthcare say people want it. But a 2019 Kaiser Family Foundation survey found that enthusiasm wanes when folks are told they would (1) lose their private insurance, and/or (2) pay more taxes and/or (3) have longer waits.

Direct pay independent physicians may be the salvation. Many Medicare

patients are paying for direct primary care where a modest monthly fee direct to the physician guarantees full access to a physician, inexpensive medications and lab tests. Some specialists treating various chronic conditions such as diabetes also use this model to provide patients with timely individualized quality care.

accept payment for services without being subject to penalties.

Medicare for All could be one of those concepts that “seemed like a good idea at the time” – just like diving head first off a cliff into an inviting but shallow pool of water.[IA]

What happens when the money runs out?

Because Medicare defines what care is reimbursable as “medically necessary,” the simple answer is to decrease covered services.

The same people who clamor for a woman’s reproductive choice are strangely silent about everyone else’s freedom to choose the type of medical care they want. Patients and physicians should be free to pay for services and

Serving New York, New Jersey, Pennsylvania and Connecticut Since 1889 www.insurance-advocate.com

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Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance company subsidiaries of W. R. Berkley Corporation through licensed surplus lines brokers.

Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.

22 February 25, 2019 / INSURANCE ADVOCATE

A fresh take on insurance.

Follow TGFI on social media and become a part of this growing industry effort to help our customers consider the role insurance plays in their lives and make more informed decisions about their finanical security. Visit www.thankgoodnessforinsurance.org for more information.

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[ ON MY RADAR ]

BARRY Z ALMA

Attempt to Save Premium is Costly to Insured Living in New Jersey but Insured in Florida is Fraud uNo one like to pay insurance premiums. However, in a state like New Jersey, insuring a vehicle with No Fault insurance is mandatory. Since insurance in Florida is less expensive than in New Jersey a resident of New Jersey was tempted to and, in fact, insured his vehicle in Florida to save money on premium charges.

In Jeffrey E. Scholes v. Stephen M. Hausmann, And Kimberly A. Logan, Docket NO. A-0980-17T3, Superior Court Of New Jersey Appellate Division (October 16, 2018) the plaintiff appealed from an order granting summary judgment to defendant Stephen M. Hausmann (“defendant”) and dismissing the complaint based on the court’s finding that plaintiff was uninsured within the meaning of N.J.S.A. 39:A-4.5(a), and thereby barred from recovering damages for economic and non-economic losses.

FACTS

On October 23, 2014, plaintiff and defendant were involved in an automobile accident in South Orange and plaintiff suffered injuries. The vehicle he was driving was titled and registered in his name using a friend’s address in Florida, despite plaintiff living and working in New Jersey for approximately five years. He failed to obtain a New Jersey driver’s license or to register his vehicle in New Jersey.

Plaintiff acknowledged that his vehicle was principally garaged in New Jersey. The judge found that plaintiff “provided false information to the State of Florida as to his residency.” At his deposition, plaintiff testified he continued to maintain his “Florida automobile insurance because . . . Florida insurance was less expensive than new jersey insurance.” (emphasis added) As a result of his injuries, plaintiff applied for personal injury protection 24 February 25, 2019 / INSURANCE ADVOCATE

Every owner of an automobile principally garaged in New Jersey must maintain automobile liability insurance coverage under provisions approved by the Commissioner, including mandatory medical expense benefits coverage of $15,000 per person. (“PIP”) benefits through his Florida Geico automobile insurance policy. The Florida policy was not approved by the New Jersey Commissioner of Banking and Insurance, and it only provided $10,000 per person in medical benefits coverage.

Defendant moved for summary judgment, arguing N.J.S.A. 39:6A-4.5(a) barred plaintiff ’s claims because the Commissioner did not approve his insurance policy and therefore, he was uninsured under the statute. Based upon plaintiff ’s misrepresentations, defendant also argued that insurance fraud was committed pursuant to N.J.S.A. 2C:2154.6, which was enacted to prevent reverse rate evasion.

DISCUSSION

Every owner of an automobile principally garaged in New Jersey must maintain automobile liability insurance coverage under provisions approved by the Commissioner, including mandatory medical expense benefits coverage of $15,000 per person. New Jersey statutes state that all owners of motor vehicles registered or principally garaged in New Jersey are required to maintain

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 51 years in the insurance business. He is available at http://www.zalma.com and zalma@zalma.com.

Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.

Mr. Zalma’s books are available as Kindle books or paperbacks at Amazon. com and can be reached at http:// zalma.com/zalma-books/ Mr. Zalma’s reports can be found on Tumbler at https://www.tumblr.com/search/ bzalma on Facebook at https://www. facebook.com/barry.zalma and you can follow him on Twitter at https:// twitter.com/bzalma.

His blog, Zalma on Insurance is available at http://zalma.com/blog and his videoblog, Zalma’s Insurance 101 is available at http://www.zalma.com/ videoblog/

[ ON MY RADAR ] minimum amounts of standard, basic, or special liability insurance coverage for bodily injury, death, and property damage caused by their vehicles; that because an out-of-state insured vehicle was principally garaged in New Jersey, the owner must maintain PIP coverage; any person who, at the time of an automobile accident resulting in injuries to that person, is required but fails to maintain medical expense benefits coverage mandated by the statute shall have no cause of action for recovery of economic or noneconomic loss sustained as a result of an accident while operating an uninsured automobile.

The Legislature adopted the statute to limit the ability of persons injured in motor vehicle accidents to sue persons responsible for their injuries. The statute advances a policy of cost containment by ensuring that an injured, uninsured driver does not draw on the pool of accident-victim insurance funds to which he did not contribute. The statutes limit a plaintiff ’s ability to sue when he or she has not complied with the compulsory insurance law and gives the uninsured driver a very powerful incentive to comply with the compulsory insurance laws: obtain automobile liability insurance coverage or lose the right to maintain

The statutes limit a plaintiff’s ability to sue when he or she has not complied with the compulsory insurance law and gives the uninsured driver a very powerful incentive to comply with the compulsory insurance laws: obtain automobile liability insurance coverage or lose the right to maintain a suit for both economic and [non-economic] injuries. a suit for both economic and [non-economic] injuries.

In order to find that plaintiff was required to maintain New Jersey medical expense benefits coverage, it must be established that his vehicle was principally garaged in New Jersey. To determine where an automobile is principally garaged, the pivotal factor is where the vehicle is primarily or chiefly kept or kept most of the time not where the owner intends to reside.

Since plaintiff primarily garaged his vehicle in New Jersey, he was required to maintain automobile liability insurance coverage under provisions approved by the Commissioner, including mandatory medical expense benefits coverage of $15,000 per person. As noted by the judge, the Deemer Statute cannot save the plaintiff ’s failure to obtain an insurance policy approved by the State of New Jersey.

The court found no ambiguity in the statute that would offend plaintiff ’s procedural due process rights. As recognized by the motion judge, implicit in the goal of the statute is that New Jersey residents, and those who principally garage their automobile in this state, are required to maintain automobile insurance coverage approved by the Commissioner of Banking and Insurance.

ZALMA OPINION

By not insuring the vehicle with New Jersey insurance because it was cheaper to be insured as a Florida resident the Plaintiff committed insurance fraud and was unable to receive any benefits as a result of the accident. He was lucky he was not charged with a crime and sentenced to jail.[IA]

By not insuring the vehicle with New Jersey insurance because it was cheaper to be insured as a Florida resident the Plaintiff committed insurance fraud and was unable to receive any benefits as a result of the accident.

INSURANCE ADVOCATE / February 25, 2019 25

[ LOOKING BACK ]

INSURANCE ADVO CATE - 26 YEARS AGO

26 February 25, 2019 / INSURANCE ADVOCATE

INSURANCE ADVO CATE - 26 YEARS AGO

[ LOOKING BACK ]

Serving New York, New Jersey, Pennsylvania and Connecticut Since 1889 www.insurance-advocate.com

INSURANCE ADVOCATE / February 25, 2019 27

[ COURTSIDE ]

LAWRENCE N. RO GAK

Question Exists as to Whether Snow Tubing Park’s Negligence Increased the Dangers Jamjyan v West Mtn. Ski Club, Inc. Edited by Lawrence N. Rogak In this personal injury suit, plaintiff alleged she was injured while snow tubing. The facility moved for summary judgment under the “assumption of risk” doctrine. The Court held that an issue of fact exists at to whether the facility’s personnel increased the ordinary level of risk by prematurely unhooking the tube from the tow rope.­—LNR uIn an action to recover damages for personal injuries, the defendants appeal from an order of the Supreme Court, Kings County (Edgar G. Walker, J.), dated December 16, 2016. The order denied the defendants’ motion for summary judgment dismissing the complaint. ORDERED that the order is affirmed, with costs.

The plaintiff was injured at a snow tubing park. She commenced this personal injury action against the defendants, the owners and operators of the

28 February 25, 2019 / INSURANCE ADVOCATE

THE ASSUMPTION OF RISK DOCTRINE APPLIES TO ANY FACET OF THE ACTIVITY INHERENT IN IT AND TO ANY OPEN AND OBVIOUS CONDITION OF THE PLACE WHERE IT IS CARRIED ON...

tubing park, alleging that a tubing park attendant caused the accident by prematurely unhooking the tow rope from the snow tube the plaintiff was sitting in while being towed to the top of the hill.

The defendants moved for summary judgment dismissing the complaint on the ground that the action was barred by the doctrine of assumption of risk. The Supreme Court denied the motion, and the defendants appeal.

The defendants established their prima facie entitlement to judgment as a matter of law by demonstrating that the plaintiff was aware of a risk of injury while snow tubing. The doctrine of assumption of risk dictates that “by

Lawrence N. (“Larry”) Rogak has been practicing insurance law since 1981.

He has defended over 23,000 lawsuits and arbitrations and has represented over 75 different insurance companies and self-insured corporations.

Lawrence N. Rogak LLC is listed in Best’s Recommended Insurance Attorneys, a distinction that requires written recommendations from at least 12 insurance carriers.

A 1981 graduate of Brooklyn Law School, Mr. Rogak has published more books and articles on insurance law than any other New York attorney in the field.

engaging in a sport or recreational activity, a participant consents to those commonly appreciated risks which are inherent in and arise out of the nature of the sport generally and flow from such participation” (Morgan v State of New York, 90 NY2d 471). The assumption of risk doctrine applies to any facet of the activity inherent in it and to any open and obvious condition of the place where it is carried on (see Maddox v City of New York, 66 NY2d 270).

However, assumption of risk is not

an absolute defense, but a measure of a defendant’s duty of care (see CPLR 1411; Morgan v State of New York, 90 NY2d at 485). Here, in opposition to the defendants’ prima facie showing, the plaintiff raised a triable issue of fact as to whether the allegedly unexpected action of the tubing park attendant, in prematurely unhooking the plaintiff›s snow tube from the tow line, created a dangerous condition over and above the usual dangers that are inherent in the sport of snow tubing (see Morgan v State of New York, 90 NY2d at 485). Triable issues of fact existed as to whether the actions of the tubing park attendant violated the defendants’ own safety procedures (see de Lacy v Catamount Dev. Corp.,

[ COURTSIDE ]

[ IN THE NEWS ]

302 AD2d 735, Roberts v Ski Roundtop, 212 AD2d 768). Moreover, the opinion of the plaintiff ’s expert raised a triable issue of fact as to whether the design of the tubing park contributed to the dangerous condition allegedly created by the actions of the tubing park attendant (see Owen v R.J.S. Safety Equip., 79 NY2d 967, 969).

Accordingly, we agree with the Supreme Court’s determination to deny the defendants’ motion for summary judgment dismissing the complaint.[IA]

prior to joining St. John’s University in 2016, he was Global CEO of Analytics for AON plc, based in Singapore, and head of Aon Benfield Analytics.

Mildenhall also helped establish Aon’s Singapore Center for Innovation and Analytics.

As president and CEO of The Institutes, Miller currently leads the CPCU Society and The Griffith Insurance Education Foundation. He serves as a member of the board of the Insurance Institute of Switzerland; he also serves as chairman of the Institute for Global Insurance Education (IGIE), the CPCU Society, the RiskBlock Alliance and The Griffith Insurance Education Foundation.

The new board will provide strategic direction for iCAS educational initiatives and programs, including the Certified Specialist in Predictive Analytics (CSPA) credential for data practitioners. iCAS also recently announced a new set of credentials for catastrophe risk with the International Society of Catastrophe Managers (ISCM): the Certified Specialist in Catastrophe Risk (CSCR) and the Certified Catastrophe Risk Management Professional (CCRMP).

“We are thrilled to bring together these experts to continue leading our growing efforts in the credentialing space for quantitative professionals,” iCAS President Joanne Spalla stated.

“With 400 members from over 200 companies, The CAS Institute continues to meet the demand for certification and continuing education in specialized practice areas. I look forward to working with our new Board of Directors to build on the accomplishments to date and to explore new opportunities to expand The CAS Institute.”.[IA]

2019 NY Slip Op 01061 Decided on February 13, 2019 Appellate Division, Second Department

iCAS Announces Board of Directors with Experts from Data Science, Analytics uThe CAS Institute (iCAS), a subsidiary of the Casualty Actuarial Society (CAS) offering specialty credentials to quantitative professionals in data-intensive sectors, recently announced its first board of directors. Previously governed by the board of the CAS, iCAS will now be led by a dedicated six-member board that reports to the CAS Board.

The iCAS Board is composed of recently appointed iCAS President Joanne Spalla, iCAS Director Amy Brener, CAS Executive Director Cynthia Ziegler and three appointed directors: • Frank H. Chang, FCAS, Ph.D., director of insurance and safety analytics at Uber Technologies; • Stephen J. Mildenhall, FCAS, CSPA, CERA, Ph.D., assistant professor of risk management and insurance, and director of insurance data analytics, at The Peter J. Tobin College of Business at St. John’s University; and • Peter L. Miller, MBA, CPCU, president and chief executive officer of The Institutes.

Miller was appointed to serve as

“WE ARE THRILLED TO BRING TOGETHER THESE EXPERTS TO CONTINUE LEADING OUR GROWING EFFORTS IN THE CREDENTIALING SPACE FOR QUANTITATIVE PROFESSIONALS. WITH 400 MEMBERS FROM OVER 200 COMPANIES, THE CAS INSTITUTE CONTINUES TO MEET THE DEMAND FOR CERTIFICATION AND CONTINUING EDUCATION IN SPECIALIZED PRACTICE AREAS.”

chair of the 2019 iCAS Board for a oneyear term.

Chang has been with Uber since 2014, previously serving as Google’s lead actuary (and first dedicated staff actuary) from 2012-2014. He holds the Certified Litigation Management Professional designation and also serves as a professor at the Litigation Management Institute.

Mildenhall began his career at CNA;

About The CAS Institute The CAS Institute (iCAS) empowers quantitative professionals in the insurance industry by providing innovative, rigorous, and trusted credentials backed by the Casualty Actuarial Society’s globally recognized educational standards, as well as the specialized knowledge and resources that analytics professionals need to impact their organizations and their careers.

Learn more at TheCASInstitute.org.

INSURANCE ADVOCATE / February 25, 2019 29

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[ IN THE ASSOCIATIONS ]

Aquiline Announces Agreement to Acquire Relation Insurance Services u Aquiline Capital Partners LLC, a New York and London-based private equity firm investing in financial services and technology, has entered into a definitive agreement to acquire Relation Insurance Services, one of the largest independent insurance brokers in the United States, from private equityfirms Parthenon Capital and Century Equity Partners. Since its founding in 2007, Relation has built its strengths in specialized industries including agribusiness, education, employee benefits, public entity, transportation and nonprofit. The Company is committed to mid-market businesses.

“Under the leadership of Joe Tatum and Ed Page, Relation Insurance Services has established itself as a highly respected brokerage with significant opportunities for continued organic and acquisition-based growth,” said Jeff Greenberg, Chairman and Chief Executive Officer of Aquiline. “We look forward to supporting Joe, Ed and the Relation team during this next phase of expansion.” The Company will maintain its corporate headquarters in Walnut Creek, California, under the continued leadership of CEO Joe Tatum, President and COO Ed Page, and the rest of the management team.

“Our team at Relation Insurance Services has worked hard to build a company with a stellar reputation as one of the country’s best independent insurance brokerages,” said Joe Tatum, Chief Executive Officer, Relation Insurance Services. “Our goal is to continue driving strong organic growth alongside strategic acquisitions, sustained by Aquiline’s strong commitment to our mission and value proposition. We are excited to partner with them to further expand our portfolio, increase our geographic reach and continue to build on our customer relationships.”

30 February 25, 2019 / INSURANCE ADVOCATE

“We look forward to the endless opportunities that lie ahead.”

Ed Page, President and Chief Operating Officer of Relation, added, “This transaction represents a validation of the value we have built at a key moment in the company’s development.

Aquiline will provide us with the strategic, financial and operational capabilities needed to scale our business by continuing to develop our infrastructure, creating innovative product offerings, enhancing customer service and expanding our footprint nationwide. We look forward to the endless opportunities that lie ahead.”

“I would like to thank Joe and Ed, as well as the entire Relation team, for all they have achieved over the past 11 years,” said Brian Golson, Managing Partner and Co-CEO at Parthenon.

“Management’s commitment to investing in its people, process and product offerings, has cemented Relation’s position as a leading independent insurance brokerage. By providing a unique culture and excellent customer service the business has seen impressive growth. We wish the team all the best for the future and thank them for the long-term partnership.”

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the first half of 2019. No financial terms were disclosed.

Aquiline Capital Partners, founded in 2005, is a private equity firm based in New York and London investing in businesses across the financial services sector in banking and credit, insurance, investment management, and financial technology and services. For more information about Aquiline, its investment professionals, and its portfolio companies, please visit: www.aquiline.com.[IA]

MSO Honored by Emmanuel Cancer Foundation u MSO, Inc. (The Mutual Service Office, Inc.) will be honored by the Emmanuel Cancer Foundation for MSO’s efforts in support of families battling pediatric cancer. For over 28 years, MSO has held a bi-weekly food collection for the Emmanuel Cancer Foundation (ECF) and their food pantry. In addition, MSO’s annual golf outing has raised over $43,000 for ECF since 2009. MSO will be honored at ECF’s 9th Annual Bash on March 15th at the Brick House in Wyckoff, NJ. Since 1983, ECF has provided muchneeded food, counseling and other support to New Jersey families of children who have been diagnosed with cancer.

For information on ECF, visit their website at www.emmanuelcancer.org.

According to ECF Northern Director Inessa Rome, “The Bash is a wonderful opportunity to recognize MSO, Inc. for their exemplary work on behalf of pediatric cancer patients battling cancer.

ECF is so grateful for MSO’s commitment to improving the quality of life for New Jersey’s youngest cancer patients, and for their belief in our mission.”

MSO is a national property/casualty rating service bureau, providing product development and rating services to the insurance industry since 1944. MSO has long been an industry leader, offering programs that are comprehensive and easy to use. MSO will work with companies to customize programs to meet a company’s marketing and underwriting requirements.[IA]

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