Texas connection february 2016

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TEXAS CONNECTION TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

FEBRUARY 2016

In This Issue 

2016 Convention & Trade Show



Employee Privacy



The Benefits of Tele-Medicine



What a Speeding Ticket Really Costs

Shirley Almany

……..……………....…….…

Presidents Corner ……………………..……

Employee Privacy …………………..………

2016 Convention & Trade Show …....……

What a Speeding Ticket Really Costs …....

The Benefits of Tele-Medicine …………....

Classifieds ………………………..……….…

TDI Enforcement Actions …….……..….….

By The Numbers …...…….………...…….…

Word Scramble ……...…….…………..….…

The Last Word …………………………….…

Our Partners

Page 2 Page 3 Page 5 Page 14 Page 14 Page 16 Page 21 Page 23 Page 25 Page 27 Page 29

Prada Marfa is an art installation by artists Elmgreen and Dragset created in 2005. It’s located just northwest of Valentine, Texas, just off U.S. Highway 90 (US 90), and about 26 miles (42 km) northwest of the city of Marfa. In 2014, TxDOT officials announced that the structure would be reclassified as a museum, with the Prada Marfa as its only exhibit.

Well, the Holidays are past Now our attention here at Texas PIA turns to our Annual Convention. This year, we are back in San Antonio, May 19th - 21st … but at a new hotel.

Hotel Contessa is on The Riverwalk… about a block from the Palacio Del Rio. Every room is a 2 room suite. Last year it was named as one of the 10 Best Hotels in America by USA Today!

And the rates are very reasonable… we can’t publish them here… but you’ll like them.

This year’s theme is “Meet me at the Fair!”

Exhibitors will be invited to include typical “Midway type” games and a $1,000 prize will be awarded to the booth that best emulates the ‘County or State Fair aura.”

There is also a $500 prize for the best costume.

Maybe not as easy as last year with the Mardi Gras theme… but our members can be pretty imaginative and resourceful… and who of us has not been to a fair? Remember Ready Kilowatt? Maybe not.

At Friday’s Luncheon, Colonel Roy Phillips, a recognized expert on such topics as Ethics and Cyber Liability, and a regular contributor to the legendary industry magazine, The Insurance Record, will educate us during our fine meal.

Jason Cass of Grow Program, a social media and marketing expert, will speak at Saturday’s Luncheon. You’ll remember him from last year’s convention… your pen will melt down as you try to write down all of his good ideas!

See you there!

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

Shirley

Page 3

From video surveillance to keystroke recorders, technology makes it easier than ever for employers to monitor what their employees are doing. But where do employers’ surveillance rights end and employees’ rights to privacy begin?

Video Surveillance In 2007, only 7 percent of companies surveyed by the American Management Association used video surveillance to track select employees’ on-the-job performance. Almost half (48 percent) used video surveillance to counter theft, vandalism and sabotage, which might or might not include employees.

No federal law prohibits video monitoring of the workplace, even if employees do not know or consent to monitoring. Only two states, Connecticut and Delaware, require employers to disclose monitoring to employees. Elsewhere, employees generally have no privacy rights in “public spaces.” However, in areas where they have a “reasonable expectation of privacy,” such as an enclosed office, rest room or locker room, courts have generally ruled in favor of employees’ privacy rights.

If your video equipment records sound as well as images, wiretapping and eavesdropping laws might apply. Federal law and the majority of states permit recording of phone calls and other electronic communications with the consent of at least one party. Twelve states (California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Pennsylvania and Washington) require all parties to a conversation to consent to being recorded. In every state, employers should disclose that employees might be subject to audio and video recording while on company property. For further advice, please contact an employment attorney. (continued on page 6)

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GPS Tracking An AMA/ePolicy Institute survey from 2005 found that 5 percent of employers used GPS technology to monitor employee cell phones, 8 percent used it to track company vehicles, and 8 percent used it to monitor employee ID or smartcards. No federal laws address GPS tracking of employees. However, courts could find “…the use of GPS to monitor employees could meet the necessary legal standards for invasion of privacy,” even within the workplace, according to a National Workrights Foundation report. The report further cautions, “…[Collecting] information regarding employee activities during breaks and their activity in sensitive areas such as rest rooms might be actionable. Outside the traditional employment setting and during hours traditionally regarded as personal, monitoring using GPS technology raises even stronger privacy concerns.”

To avoid violating employees’ privacy, employers using GPS technology should inform their employees which devices have GPS technology, what information the company will gather and when, and how the information will be used. Most GPS-equipped devices allow users to turn off tracking. If your employees can use GPS-equipped phones or vehicles for personal purposes, you can instruct them how to turn off tracking features when off duty.

Computers, Internet and Email Software programs with names like IAmBigBrother, SpyTech and Activity Monitor can let you monitor your employees’ computer use without their knowledge. They can show you employees’ screens in real time, track Internet sites visited, monitor keystrokes to track productivity and show contents of email and IM messages—all without employees knowing. But is it legal?

Although the Electronic Communications Privacy Act of 1986 (ECPA) generally prohibits the interception of any wire, oral or electronic communication, it creates a specific exception for employers. Employers can intercept employees’ electronic communications if they have a “legitimate business purpose” for doing so. The ECPA also permits employers to intercept employees’ communications if they have employees’ express permission.

Courts have traditionally treated company computers, and anything on them, as company property—even when employees were using personal email accounts on company computers.

However, several recent cases have come down in favor of granting employees more privacy rights over their emails. (continued on page 9) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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(from Page 6) For this reason, any company that plans to monitor employees’ e-mail or online activities should include an e-mail and Internet privacy statement in its employee handbooks and require employees to sign a document acknowledging receipt of the policy.

Telephone Monitoring The Omnibus Crime Control and Safe Streets Act prohibits employers from eavesdropping on or wiretapping telephone calls, with two major exceptions. The employer can listen in on conversations “in the ordinary course of business,” such as for customer service, and “where employees have been notified expressly that their telephone conversations will be monitored.” If your company will monitor employees’ telephone calls, you need to notify them in writing and obtain their written consent.

However, even with consent, the ABA Family Law Guide says that employers’ rights to monitor employees’ conversations are not absolute: “Some courts have indicated…that once the private nature of a telephone conversation is determined, any continued eavesdropping would not be in the ordinary course of business and may subject the employer to liability. An employer violating the law can be sued for money damages.”

Property Searches Although the U.S. Constitution prohibits unreasonable search and seizure, once in the workplace, the employers’ rights to protect their property usually trump employees’ privacy rights. As with video monitoring, however, employers should tread carefully before searching any area where an employee might have a “reasonable expectation of privacy.” These include his/her personal possessions (such as handbags and backpacks), personal workspace and lockers.

If you suspect an employee might have prohibited items, such as illegal drugs or firearms, at work, contact an employment attorney before conducting a search. And to protect your company from potential lawsuits, make sure your employee handbook contains a notice that the company retains the right to search company property, including employee desks and lockers, at any time and without warning.

Liability Protections Although commercial liability policies protects your customer from claims alleging invasion of privacy, it excludes claims brought by employees. To protect your customer from the high cost of employee lawsuits, they’ll need employment practices liability insurance (EPLI). Offer them coverage either through standalone policies or as an add-on to their business owners package.

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Hotel Contessa Luxury Suites on the Riverwalk 306 West Market Street, San Antonio, Texas 78205 Thursday, May 19: Golf Scramble & Skeet Shoot Friday, May 20: CE Classes, Lunch, Trade Show, Free evening for fun.

Saturday, May 21: CE Classes, Lunch, Trade Show, & President’s Reception Saturday Evening.

Presenters include: Colonel Roy L. Phillips, CIC, CISR, CPIA, AAI and

Jason Cass author of "Customer Service is Just Foreplay"

The convention hotel is Hotel Contessa, named

by USA Today as one of the Top 10 hotels in America for 2015.

It is truly a Luxury Hotel.

On the Riverwalk…

Every room’s a suite.

A Full service Spa & the Gym are near the rooftop pool, and Great dining right in the Hotel.

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Every year, about 41 million Americans, or one-fifth of drivers, get speeding tickets. They pay more than $6.2 billion in fines, according the U.S. Highway Patrol.

Speeding tickets are big business. StatisticBrain.com reports that the average annual speeding ticket revenue per U.S. police officer is $300,000! With municipalities strapped for cash, and technologies such as cameras and sensors making it easier to catch violators, your chances of getting caught are probably increasing.

So what will a speeding ticket cost you? The average ranges from $110 to $150; your actual costs will vary depending on the locale, your speed in excess of the limit, and other factors.

But your costs don’t end there. Getting caught speeding could result in the following charges: Traffic school. Some jurisdictions allow first-time violators, or those who haven’t been cited in a while, to go to traffic school. Pass the course and your violation won’t appear on your driving record. Expect to pay $35 or more, plus your lost time.

• Increased premiums. Driving 1-15 miles above the speed limit will add an average of 20.54 percent to your insurance premiums. Driving 16-30 miles per hour over the limit will add 28.06 percent, and 31+ miles per hour will cost you nearly 30 percent extra. (Source: Insurancequotes.com) • Points. In most states, insurers use a point system to determine a driver’s safety record. A moving violation will add points to your driving record. When your points reach certain levels, your insurer will add surcharges to your insurance premiums. Points stay on your driving record anywhere between one and three years, depending on state. Accumulate too many points, and you can lose your license.

•

If you get a speeding ticket in a rental car or out of state, don’t think you’re off the hook. A ticket follows your license, not the car. Most states’ motor vehicle departments have reciprocity, which means they share information on driving violations. Your ticket will likely catch up to you.

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Recently, the state of Washington passed a law requiring employee health plans to reimburse providers for telemedicine services. That made Washington the 24th state to require “telemedicine parity.”

Parity laws remove some of the barriers to more widespread adoption of telemedicine.

Knowing they will be reimbursed for services makes healthcare providers more willing to offer telemedicine services and to invest in any technology. And the more providers that offer it, the more mainstream it will become. The laws also reduce the compliance requirements on hospitals when granting privileges to telemedicine “visiting physicians.”

What Is Telemedicine?

As the name implies, telemedicine encompasses any medical activity involving distance. Today telemedicine uses electronic information and telecommunications, but the practice goes back to the days when sea captains would use ship-to-shore radio to obtain medical advice.

Telehealth includes such technologies as telephones, facsimile machines, electronic mail systems, and remote patient monitoring devices, which collect and transmit patient data for monitoring and interpretation.

The Centers for Medicare & Medicaid Services (CMS) says, “…telemedicine seeks to improve a patient’s health by permitting two-way, real time interactive communication between the patient, and the physician or practitioner at the distant site.” CMS views telemedicine as “…a cost-effective alternative to the more traditional face-to-face way of providing medical care (e.g., face-to-face consultations or examinations between provider and patient)…”

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(From Page 16)

What’s so Great About Telemedicine?

Telemedicine can help an injured or sick person get proper treatment sooner, particularly in remote or rural areas where medical help or specialists might be far away. In addition, telemedicine technologies deployed in ambulances can help speed diagnosis and the initiation of important, potentially lifesaving interventions.

Telemedicine has the potential to shave $4.28 billion annually from America’s healthcare bill, according to a study by the University of Texas Medical Branch. It offers these benefits: • Providers get greater access to specialized information and diagnoses • Reduction in hospital admissions from emergency departments • Reduced wait times for outpatient consultation • Increased productivity of healthcare staff  Reduction in patient travel time and expenses The University of Rochester Medical Center in Rochester, N.Y. has a telemedicine center. Its director, Kenneth McConnochie, MD, MPH, told a forum that telemedicine can handle 85 percent of pediatric primary care visits and 40 percent of emergency room visits. The average telemedicine visit there costs $75, or one-tenth of the cost of a typical ER visit.

Telemedicine also saves patients time and money. The state of Georgia launched a telemedicine partnership in 2005 to provide better health services to the state’s large rural population, and to address a shortage of specialists. Paula Guy, CEO of the nonprofit Georgia Partnership for Telehealth, reported that a random sample of Georgia telehealth visits from 2011 saved the average patient travel time of 124 miles per encounter and a total of nearly $762,027 in fuel costs over 40,009 telehealth visits.

The combination of sophisticated videoconferencing, electronic medical records, and telemonitoring can revolutionize medical care for all patients. The challenge lies not in the technology, but the processes and policies that govern healthcare delivery and payment.

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(From Page xx)

There’s an App for That Parity laws help bring telemedicine into the mainstream. Full integration of telemedicine into the medical system will depend on the healthcare industry’s ability to address barriers, especially insurance reimbursement models; liability rules; and licensure rules that prevent healthcare providers from offering telemedicine consultations across state lines.

Some of the country’s largest health insurers, including Wellpoint/Anthem, United Healthcare and Aetna, are convinced telemedicine is here to stay. They will pay for telemedicine services.

Already, a couple of smartphone apps allow users to connect with a doctor remotely. Doctor on Demand claims to be the largest provider of video physician visits in the country. Doctors connect with patients via smartphone or computer so they can discuss and/or look at a specific problem.

Although telemedicine might never replace a face-to-face doctor’s visit, it has its place. It could save money and allow patients in remote areas to see the doctor more often.

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ray@piatx.org

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THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

or

Bob Dixon (832) 375-0787 bdixon@piatx.org

Page 21

TEXAS DEPARTMENT OF INSURANCE ACTIONS

Vanpelt, Cynthia N Date of Action: 7/13/2015 Location: Dallas Action Taken: Sentenced to 3 years deferred adjudication, 120 hours community service, fined $1,500.00 and ordered to pay $3,174.64 in restitution.

Violation: Insurance Fraud, State Jail Felony Tarco, Virgilio Date of Action: 7/22/2015 Location: Houston Action Taken: Sentenced to 3 years deferred adjudication.

Violation: Securing Execution of a Document by Deception, 3rd Degree Felony Vanpelt, Cynthia N Date of Action: 7/13/2015 Location: Dallas Action Taken: Sentenced to 3 years deferred adjudication, 120 hours community service, fined $1,500.00 and ordered to pay $3,174.64 in restitution.

Violation: Insurance Fraud, State Jail Felony

Contact Us Need more information on the benefits of membership?

Have a question about member services? Give us a call: Texas PIA & Young Insurance Professionals 3632 Frankford Rd 200B Dallas, Texas 75287 (972) 862.3333 joe@piatx.org www.piatx.org

McCann, Paul Date of Action: 7/8/2015 Location: Houston Action Taken: Sentenced to 7 months incarceration.

Violation: Insurance Fraud, State Jail Felony Oyoung, Yu Ping Date of Action: 7/8/2015 Location: Richmond Action Taken: Indicted Violation: Insurance Fraud, State Jail Felony Mackey, Kenneth Date of Action: 7/7/2015 Location: Houston Action Taken: Sentenced to 18 months deferred adjudication and 120 hours community service.

Violation: Insurance Fraud, Class A Misdemeanor Clayton, Randall Date of Action: 6/26/2015 Location: Waxahachie Action Taken: Sentenced to 3 years probation, 120 hours community service, fined $1,000.00 and ordered to pay $3,203.00 in restitution.

Violation: Misapplication of Fiduciary Property, State Jail Felony

Never ask a barber if you need a haircut.

- The Insurance Sage

: https://wwwapps.tdi.state.tx.us/inter/asproot/fraud/indictments/clips.asp

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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It wasn’t that long ago that I would routinely leave my car unlocked. I’m sure that would have irritated my agent. Even though these numbers are a few years old, they demonstrate the need to be vigilant about vehicle theft and burglary. Let’s take a look.

A vehicle is stolen in Texas every in every

minutes.

registered vehicles was stolen in 2010.

Texas ranks number

in the nation in auto theft, behind California.

Half of the vehicles stolen are unlocked and have the keys in the ignition.

Texas recovered approximately

of the vehicles stolen in the state in 2009.

A vehicle is burglarized in Texas every

minutes.

cases of vehicle burglary were reported in Texas in 2010.

The estimated total value of property stolen from vehicles in 2010 was

.

The average dollar loss per case involving the theft of property from inside a vehicle in 2009 was

.

The average dollar loss per case involving the theft of parts off a vehicle in 2009 was .

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TRY A STOUT

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THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

D Page 27

Here’s the answers to last month’s puzzle. Remember there’s a $50 prize for the first person to submit the correct answers. (before the answers are published obviously.)

LONE GUITAR BROWSE A TON MEAN IDIOTS A CUT RAY

REGULATION BOATOWNERS MEDIATIONS ACTUARY

IN A CRUSHER

HURRICANES

SECLUDED BIT

DEDUCTIBLES

FANCIER END

REFINANCED

NO GENT CYNIC CORAL PRICE UNICORN ACES

CONTINGENCY RECIPROCAL COINSURANCE

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the

Last word We’d like to give a hardy welcome to our newest company members:

AmWINS Specialty Auto Aspen Insurance Managing General Agency Louis A. Williams & Associates, Inc. McClelland & Hine, Inc. MyUnderwriter.com Windhaven Insurance You join an elite group of companies that make this association thrive, and enable us to provide serious support to member agency owners‌ and we truly appreciate your continuing support.

Thank you!