The Underwriter's Insider April 2017 by The Underwriter's Insider

IN THIS ISSUE April 2017 Vol 13 Issue 4

5 TECH MYTHS YOU SHOULD STOP BELIEVING

Like the old wives’ tale telling you not to go outside with wet hair or else you’ll catch a cold, everyday gadgets come with a lot of bad or dated advice.

WHY INSURERS SHOULD NOT SUE EACH OTHER An E&O insurance policy that is both claims made and reported has no need to defend or indemnify an insured if the claim was not both made against the insured and reported to the insurer during the policy period.

EMPLOYEE BENEFITS INTEL: 5 KEY ‘MAKE OR BREAK’ LIFE INSURANCE TRENDS New laws, emerging technology, fiscal uncertainty and changing marketplace perceptions are making big impacts on the life insurance industry,

INSURANCE SECTOR DEAL MAKING SHIFTING INTO HIGH GEAR: NEW SURVEY The vast majority of insurance companies surveyed globally are planning M&A activity in 2017, with most driven by need to transform business and operating models.

“COMPLACENCY IS KILLING US.” NATIONAL DISTRACTED DRIVING CAMPAIGN AIMS TO DEBUNK MULTITASKING-WHILEDRIVING MYTH

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Although pockets of progress have been made, data proves that we have a long way to go to course correct a national epidemic:

HAPPY CLAIMANTS SATISFACTION AT AN ALL TIME HIGH According to J.D. Power, property insurance claims satisfaction is at an all time high rising 1.5%. The 2017 Survey involved 6,645 policyholders who had made a claim in 2016.

70 CHARGED IN NC RATE EVASION SCHEME

Former Florida insurance agent Vinodh Raghubir, who was sentenced to four years in prison for stealing more than $100,000 from two elderly clients.

North Carolina Insurance Commissioner Mike Causey today announced the arrest of 70 individuals charged with rate evasion in Mecklenburg County.

LLOYD’S OF LONDON SLAMMED WITH FINE, ATTORNEY’S FEES In a protracted and expensive string of Lawsuits, a California appeals court slammed Lloyd’s with $50,000 in punitive damages as well as over $1 million in attorney’s fees.

FLORIDA INSURANCE AGENT SENTENCED TO FOUR YEARS IN PRISON FOR STEALING $100K+ FROM ELDERLY CLIENTS

NETWORKED INSURANCE AGENTS EXPANDS INTO NEW STATES By expanding our footprint across the country, we can support the growth of more insurance professionals,” explains George Biancardi, Networked’s President and CEO.

NINE PEOPLE SENTENCED IN MASSIVE $172,000,000 MEDICAL INSURANCE FRAUD SCHEME Florida - Nine defendants were sentenced in federal court for participating in a massive insurance fraud scheme.

NEW! DOWNLOAD & VIEW PDF: HERE!

LAST RESTORED B-29 TAKES TO THE AIR

VIDEO: There are few “flying Fortresses” left, but these magnificent birds helped win a war.

THE INSIDER ADVISOR A few unanswered questions on health insurance and the Russians finally get handled!

QIS: INSURANCE INDUSTRY BRACES FOR DISRUPTION Technology and big data are combining to create a reshaped—and in some ways very different— property & casualty insurance industry.

NAS INTRODUCES CYBER INSURANCE FOR INDIVIDUALS “With the increasing threat of ransomware viruses on personal computers, Smart TVs, and other internetconnected devices, we recognize the need to protect individuals from a range of cyber-related threats,”

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Kim Komando Barry Zalma

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FINALLY - SOMEONE STANDING UP TO FAT LITTLE CHUMP RUNNING N. KOREA President Donald Trump in late March putting N. Korea’s Kim Jung-Un on notice that the U.S. is no longer going to tolerate his increasingly threatening nuclear posture.

DOPEY GEORGIA DUO BEING SOUGHT IN INSURANCE FRAUD AFTER ALLEGEDLY FAKING SAME INJURY THREE TIMES Warrants have been issued for two Metro Atlanta women on multiple counts of insurance fraud for allegedly filing fake auto injury claims that bilked two insurers.

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APRIL 2017 INSURANCE • POLITICS • TECHNOLOGY • PEOPLE

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April 2017

TECHNOLOGY

5 TECH MYTHS YOU SHOULD STOP BELIEVING

Really Cool Info - by Kim Komando

ike the old wives’ tale telling you not to go outside with wet hair or else you’ll catch a cold, everyday gadgets come with a lot of bad or dated advice. Most people will be surprised by at least one of these debunked myths, which is why I’ve listed them below.

Auto Brightness makes your phone’s display adjust to different lighting conditions. The next time it’s dark outside, you won’t be tempted to crank the brightness

email, show ads on a site, update an app or stream music. You can take control. Click here to set up your phone for the best battery life possible. 2. Private browsing is really private When you use your browser in incognito or private browsing mode, your browser doesn’t remember what sites you visit or store any cookies from your travels. Private browsing mode is a great way to shop for a surprise gift for that special someone, log into multiple social media or shopping accounts on the same site with the same browser, or avoid seeing targeted ads.

Don’t be embarrassed if you’ve been doing these things religiously, because they’re widely held beliefs, and many have a grain of truth. But you may also find some relief in their inaccuracy. After all, even technophiles have their superstitions. 1. Turn down your phone’s brightness to extend battery life

Once you close the browser window, it’s supposed to be You’ve probably heard that like you weren’t even using it. adjusting the brightness of Unfortunately that ”supposed up. And this gradual, controlled your screen to the lowest setting to” can get you if you aren’t change actually saves battery life. is the best way to save battery careful. Some people think that power. Although it’s true that private browsing protects them The brightness of your screen isn’t reducing the brightness can against any spying, snooping or the only thing contributing to your help, it’s not the best solution. It’s tracking, and that just isn’t true. depleting battery power. Your better to use your phone’s “Auto phone is constantly downloading Brightness” setting. information, whether it’s to check See Kim Komando Pg 42 www.underwritersinsider.com

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April 2017

INSURANCE & THE LAW

WHY INSURERS SHOULD NOT SUE EACH OTHER Expert Analysis & Commentary by Barry Zalma, Esq., CFE Neighbors Who Hate Each In Madison Mutual Insurance Other Are Not Enough to Create Company v. Diamond State Insurance, Madison Mutual a Professional Liability Claim Insurance Company sued Diamond State Insurance hen neighbors Company seeking an order from sue each other – the Seventh Circuit requiring it especially when to defend Geraldine Davidson in one neighbor was the realtor a state-court action filed by her who sold the property to the former neighbors, Dr. William neighbor under false pretenses and Wendy Dribben. Diamond – creates multiple lawsuits that State previously provided are almost impossible to resolve. professional liability errors and Insurance companies that insure omissions coverage to Davidson the parties to these vicious in her capacity as a real estate and personal lawsuits find they broker and supplied a defense must pay a great deal of money to Davidson in a previous suit defending the parties and try to alleging certain wrongdoing by drag in other insurers to reduce Davidson as a broker. the financial pain and drain. Not a bad idea unless there is really no Davidson had also conceived of means by which the other insurer and was one of the developers of has an obligation to defend or Heartland Oaks, and she and her indemnify the insured. husband owned one of the four

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parcels in the development. At the center of the development is a 30–acre artificial lake and the dam creating that lake is located on the parcel that the Dribbens purchased. In a 2006 lawsuit filed by the Dribbens against Davidson and the other original owners in the development, the Dribbens alleged that Davidson had failed to disclose that the original owners/developers had never obtained a permit from the Illinois Department of Natural Resources (“IDNR”) authorizing the dam. The 2006 suit alleged that Davidson’s non-disclosure

Barry Zalma, Esq., CFE, practiced law in California for more than 43 years as an insurance coverage and claims handling lawyer. He now limits his practice to service as an insurance consultant and expert witness 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 founded Zalma Insurance Consultants in 2001 and serves as its only consultant. 6

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April 2017

amounted to fraudulent unjust enrichment, a declaration Diamond State did not view concealment and consumer that there had been no adverse either complaint as seeking fraud. Davidson tendered the suit possession of the Dribbens’ relief for acts arising out of to Diamond State. The Diamond property, for an order of any professional services Mrs. State policy applied to claims protection, trespass (including Davidson had provided to others made and reported during the criminal trespass), three counts as a real estate broker. Madison policy period and Mutual bears a duty to provided coverage reimburse Diamond An E&O insurance policy that is for “wrongful acts State for the costs it has arising out of the both claims made and reported incurred in supplying a performance of defense to her in that has no need to defend or indemnify an professional services litigation for others.” insured if the claim was not both made against the insured and reported to the ANALYSIS In 2011, the Dribbens An insurer’s duty to insurer during the policy period.“ filed a second suit, defend its insured in this one against litigation depends on both Davidson and both the terms of the her husband, alleging a pattern seeking to remove clouds upon insurance policy at issue and of harassment, intimidation, and and quiet title to the Dribbens’ the nature of the underlying interference with the Dribbens’ property, two counts of nuisance, action. The duty to defend is property rights by the Davidsons. one count of negligence, and one logically broader than the duty count seeking to enjoin other to indemnify. If any portion of The wrongful acts attributed neighbors in the development the complaint in the underlying to the Davidsons range from vis-à -vis the disputed easements, litigation potentially falls within commercially farming their for a total of 18 counts. the coverage provided by the own property and the Dribbens’ policy, the insurer must defend property (without their consent), Davidson tendered the 2011 the entire suit. in violation of restrictive lawsuit to Madison Mutual, which covenants; polluting the Large had provided homeowner’s The Diamond State policy is a Lake with crop runoff; filing insurance coverage to Davidson real estate errors and omissions lawsuits with the aim of interfering and her husband (including policy covering claims arising with the Dribbens’ easement personal liability coverage up out of the professional services rights; spreading rumors that Dr. to $500,000 per occurrence) Davidson provided as a real Dribben was a serial killer; posting from July 2004 to July 2011. estate broker. Because the policy offensive signs; and stalking and Madison Mutual had also issued is a “claims made and reported” intimidating the Dribben family umbrella liability coverage to policy and Diamond State’s and their attorneys. the Davidsons (with a limit of coverage ended in 2007 the claim $1 million per occurrence) from nominally must be one that was The action asserted claims for December 2005 to December made against Davidson within enforcement of covenants, 2011. the policy period and which was trespass, malicious prosecution, reported to Diamond State no interference with the Dribbens’ Madison Mutual agreed to later than 60 days after the end right to sell their property, provide the Davidsons with intentional and negligent a defense pursuant to their See ZALMA Pg 41 infliction of emotional distress, homeowner’s coverage. www.underwritersinsider.com

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April 2017

NEWS

EMPLOYEE BENEFITS INTEL: 5 KEY ‘MAKE OR BREAK’ LIFE INSURANCE TRENDS By Merilee Kern, MBA, Guest Contributor

far too many businesses put off offering, and individuals from ultimately buying, life ew laws, emerging insurance or revising a current technology, fiscal plan,” says field authority uncertainty and Brian Greenberg, founder and changing marketplace President of the innovationperceptions are making big driven TrueBlueLifeInsurance. impacts on the life insurance com agency. “Frustrations include industry, changing the landscape high premiums and a glut of for employee benefit programs red tape among the reasons and end consumers in many many shy away from presenting, ways. This includes everything purchasing or modifying a policy. from how both group and singular policies are obtained However, some key common and the way applications are barriers and challenges that once filled out to how quickly group blocked shoppers from securing and individual coverage can great employee group or be acquired to evolving rules individual coverage benefits with surrounding drill down topics ease—and at affordable prices— like marijuana procurement and are a thing of the past. Other use. changes impact one’s ability to

“Given the copious complexities,

garner coverage at all.”

Specifically on both fronts, here are Greenberg’s top 5 trends affecting life insurance consumers—be they business owners, employee benefit managers or end-users, as well as life insurance agents, themselves: 1) No medical exam policies gain ground amid enhanced access and affordability. No medical exam policies have always been popular, but consumers traditionally paid from 20 to 50 percent more than they would for policies requiring a medical exam. But no more, as equitably priced options are entering the market. As just one example, Savings Bank Life Insurance Company (SBLI), one of the most competitively

bout the author: Branding, business and entrepreneurship success pundit, Merilee Kern, MBA, is an influential media voice and lauded communications strategist. As the Executive Editor and Producer of “The Luxe List International News Syndicate,” she’s a revered brand and consumer product trends voice of authority who spotlights noteworthy marketplace change makers, movers and shakers. Merilee may be reached online at www.TheLuxeList.com. Follow her on Twitter here: http://twitter.com/LuxeListEditor and Facebook here: www.Facebook.com/TheLuxeList

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April 2017

NEWS priced term life insurance carriers, recently came out with a no medical exam option at the same exact price as their fully underwritten policies in the $500,000 and below bracket. As many other major insurance companies follow suit, the rest of the industry is realizing a “domino effect” whereby those offering no medical exam policies are lowering their prices in this same $500,000 and below bracket in order to compete. In addition, no exam policies are being issued least 50 percent faster than those requiring a medical exam, safeguarding consumer interests at a more expeditious pace. 2) Life insurance companies engage in more extreme vetting. Especially without the benefit of a medical exam, insurance companies are looking to other sources for information as they consider a new policy application. In addition to vetting practices like checking the prospective insured’s motor vehicle department report, Medical Insurance Bureau (MIB) report and pharmacy report, there’s another somewhat surprising background information source insurance companies are utilizing: a credit report. In greater numbers, life insurance www.underwritersinsider.com

companies are running financial checks with the mindset that a person’s financial background is a major factor in their life expectancy. Credit score, bankruptcy and tax liens are some of the fiduciary factors that can cause an application to either be declined outright, or to result in a policy being issued at a higher premium. When insurance companies can access a more holistic information set that includes financial records, they can make far quicker underwriting decisions—for better or for worse.

industry technologies allowing them to analyze and process that data more efficiently and accurately, agents are enabled to provide streamlined services to customers—a trend that’s fiscally benefitting the marketplace and the trade, alike. 3) Medical marijuana a nonissue. The legalization of medical and recreational marijuana in several states is causing major changes in how life insurance companies rate and cover applicants. While ratings and premiums vary among insurance companies, overall there is a strong trend toward not rating marijuana users—whether medical or recreational—the same way as they do cigarette smokers. This is great news for marijuana users, since insurance rates for smokers basically double or even triple the cost of life insurance.

On the upside, this is increasing the incidence of same day policy turnaround. Industry-leading life insurance outfits like North American Life Insurance Company, Mass Mutual and Fidelity are now offering applicants same day issue life insurance policies, and this year yet more companies will be making instant underwriting decisions for prospective As one noteworthy example, customers. Prudential Life Insurance Aside from the ease and instant Company now regards marijuana, prescription-based, gratification benefits in general, especially this is especially good news for the same as any other type of those who need life insurance medication. Their ratings are quickly—whether to secure a based on a person’s underlying business loan, finalize a divorce, health condition rather than this, or other financial or legal reason. or other, treatment course. As underwriters have become more resourceful in gathering applicant data and with intraSee Life Insurance Trends Pg 14 Table of Contents

April 2017

NEWS

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April 2017

NEWS

INSURANCE SECTOR DEAL MAKING SHIFTING INTO HIGH GEAR: NEW SURVEY

EW YORK, March 15, 2017– Expect 2017 to be a year of deal making in the insurance industry, according to a new report released today by KPMG International, with 84 percent of insurance companies surveyed planning to make between one and three acquisitions in 2017, while 94 percent plan at least one divestiture. Two-thirds of insurers said they expect to undertake a cross-border acquisition this year. According to the report, The new deal: Driving insurance transformation with strategyaligned M&A, 33 percent of insurers say transforming their business model will be the primary driver of acquisitions in 2017, with an equal percentage citing enhancing their existing operating model and transforming their operating model as the motivators for deal activity. “Insurers are clearly hungry for good M&A opportunities,” said Ram Menon, Global Lead Partner, Insurance Deal Advisory with KPMG in the US. “They are focused on www.underwritersinsider.com

transforming their business and operating models, and even with geopolitical uncertainties, they are aggressively looking at deals that can help meet their objectives.”

The vast majority of insurance companies surveyed globally are planning M&A activity in 2017, with most driven by need to transform business and operating models.”

China. But regionally, Asia Pacific dominates, with 47 percent looking at the region for acquisitions, more than twice the percentage for North America. Western Europe is seen as presenting the most divestiture opportunity.

Despite the strategic need for business transformation, the report finds that many insurers continue to take an opportunistic approach to M&A. Just 47 percent of those insurers with dedicated M&A teams say their deal identification objectives are aligned to their corporate Partnerships are also viewed strategy. Thirty-seven percent as critical for operational admit their approach to deal transformation, with 87 percent making is still largely reactive. of insurers indicating they will partner for new operating “If you are using M&A to capabilities, while 76 percent effectively transform your say they will partner to access business, you can’t just jump at new technology infrastructure. opportunistic deals, you need to be much more strategic,” Based on a survey of 200 noted Ram Menon. “Insurance global insurance decision- organizations need to make makers conducted by investments that deliver on the Mergermarket on behalf of longer-term strategy for the KPMG International earlier this organization. And that is where year, the US is identified as the big challenges will lie.” the top national destination for acquisitions, followed by See Ins. Sector Deal Making Pg 15 Table of Contents

April 2017

NEWS

“COMPLACENCY IS KILLING US.” NATIONAL DISTRACTED DRIVING CAMPAIGN AIMS TO DEBUNK MULTITASKING-WHILE-DRIVING MYTH Multi-tasking as a driver is a myth and National Distracted Driving Month in April is an effort to draw attention to this national epidemic. Local non-profit, PADD.org or People Against Distracted Driving wants you to participate in a Walk of Remembrance on Saturday April 15, 2017 to build awareness.

A S H I N G T O N TOWNSHIP, NEW JERSEY (PRWEB) “Losing a daughter to a distracted driver in 2012 was the inspiration • for PADD.org (People Against Distracted Driving) and for the education mission that followed,” says Mike Kellenyi, Founder of Nikki’s Foundation People Against Distracted Driving. In the five (5) years since Nikki’s death, Mike and the PADD organization have • implemented legislation, installed countless physical and digital signs, instructed seminars, and counseled families.

This is a 6% increase from 2015 and a 14% increase from 2014. 2016 was the deadliest year on our roadways since 2007.

Although pockets of progress have • been made, data proves that we have a long way to go to course correct a national epidemic:

According to Deborah A.P. Hersman, National Safety Council President and CEO, “our complacency is killing us.” Multi-tasking in a moving vehicle is a myth.

•

According to the NHTSA accidents resulting from distracted driving from texting are 23 times worse than driving while not distracted.

4.6 Million people were injured in roadway accidents and required medical attention in 2016. This is 7% higher than the count in 2015. The cost associated with these accidents is estimated to be $432 Billion.

National Sponsors for this year’s Walk of Remembrance mark a milestone for PADD and an energized level of support to build awareness of the dangers of distracted driving. Sponsors include Musselman’s Apple According to a National Safety Sauce, Venturini Motor Sports, the Council survey (released Feb Philadelphia Union MLS team, New 2017), 47% of adults (over 18) Jersey Manufacturers Insurance admit to texting while driving Group and House of Gamez. by either manually texting or via voice controls. Activities in Washington Township

April is National Distracted Driving Month and on Saturday, April 15, 2017 PADD will host its Over 40,000 people died in annual Walk Of Remembrance in motor vehicle crashes in 2016. Washington Township Lake Park. The Underwriter’s Insider

The date for the Walk marks the fifth (5th) anniversary of Nikki Kellenyi’s passing from the actions of a distracted driver.

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Lake Park will include a 1K Walk, Venturini Motor Sports NASCAR and ARCA assets presented by Cherry Hill native and winning driver Tom Hessert, Philadelphia Union U of Tour Experience, Musselman’s Apple Sauce sampling, House of Gamez interactive video game experience, as well as, an array of local vendors with a sampling of Washington Townships premier businesses.

April 2017

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April 2017

NEWS Continued From Page 9

LIFE INSURANCE TRENDS

80-year-old male can get a 10 year term policy and an 85-year-old can still get a fully underwritten whole life policy. As we get older we experience more medical issues. Anyone over 50 or someone with known medical issues can work through an experienced agent to handle their life insurance needs. This agent will contact underwriters of multiple insurance companies to discuss the nuances of your

can also best ensure flexibility and customized service.

5) Policyholders leveraging life insurance plan benefits while still alive.

The key point to remember is Today’s New Living Benefits that life insurance companies are riders enable you to use your looking at a given health condition, life insurance policies while not the medication used to treat you are alive. For example, the the condition. This means that, accelerated death benefit rider especially with marijuana-friendly allows you to use up life insurance companies, No matter if you’re a business to 75 percent of your you could conceivably coverage amount if you use marijuana without seeking group coverage, a have a terminal illness. it impacting your ability to obtain great ratings consumer desiring an individual policy The chronic illness rider you to use up to by life insurance carriers. or a life insurance agent seeking to allows 90 percent of the policy’s However, keep in mind that sell, today’s modernized life insurance death benefit if you are not disclosing marijuana to perform two use that turns up in a urine processes and policies are far more unable of the six daily living sample you’re required to accessible, affordable and adaptable requirements of bathing, supply will usually cause a than ever before, as well being quicker continence, dressing, decline in rating. eating, toileting, and and easier to transact. Industry transferring. This is very 4) Ageism is no longer a enhancements and innovations are similar to a Long Term barrier to entry. Care Policy. Companies transforming the life insurance leading the way for Don’t make the mistake of landscape at a rapid pace, largely with living benefits riders are Transamerica and thinking that once you’re a warm reception by all.” Protective Life Insurance. past a certain age, you can There is also a critical no longer get affordable life insurance. Regulators particular application before illness rider which allows you have revised life-expectancy applying in order to avoid the to use up to 90 percent of the projections -- known as mortality client being declined or adversely death benefit of your policy if you tables -- for the first time since rated in the MIB. This agent-driven suffered a critical health condition 1980. A man who is 40 years old process also allows for insurance such as cancer, heart attack, stroke, today can expect to live to be 78, companies to compete against a major organ transplant, end not 73, as was the expectation 25 years ago. Because of this, an 14

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each other to get the best rate. An independent agent or brokerage Table of Contents

See Life Insurance Trends Pg 18 April 2017

than a quarter of the existing how to extract maximum value VC funds claim more than US$1 over the medium term and billion in allocated funding. how the target’s capabilities complement your own.” “In this environment, the Click here to read the report key to M&A success is to align financial, business and operating models so that you can achieve clarity about the and geographies The report suggests that markets you wish to play in and how insurers are taking a number of paths to secure transformative you will win,” noted Matthew deals. Corporate venture capital Smith, Global Strategy Group, (VC), in particular, is gaining Insurance Sector Lead, KPMG in traction with 62 percent of the UK. HELP WANTED — POSITION insurers saying they are either WANTED 4 — SALE ITEMS “You must also be prepared already active or currently setting up a corporate venture to analyze your capabilities in capability as a way to build the areas of due diligence and CLICK HERE! targeting in order to understand technical capabilities. More Continued From Page 11

INSURANCE SECTOR DEALS

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April 2017

47 th LAAIA Annual Convention August 2-5, 2017 Diplomat Resort & Spa Hollywood Education. Trade Fair. Connect.

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Booth and Sponsorship opportunities are still available! Contact Soraya Regalado, Association’s Executive Manager, at soraya@laaia.com or via phone at 305-477-1442.

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April 2017

ANALYSIS Continued From Page 14

LIFE INSURANCE TRENDS stage renal failure, ALS, blindness, or paralysis of two or more limbs. Life insurance companies realize people are living longer. This is good news for everyone. No longer are great benefits only for the young or for those willing to pay high premiums and jump through multiple hoops. The insurance industry has listened and has responded to the needs of the consumer in order to streamline the application process and deliver benefits that make sense. Now not only can you get life insurance at any age, but you can also enjoy those benefits during your lifetime. It doesn’t get much better than that. “While some of these new benefits are wonderful, they are still very new,” Greenberg underscores. “State regulators are still reviewing some of these benefits and some of them may even be required for free in some states, like California. For example, waiver of premiums due to disability has been under scrutiny in various regions. So, it’s important to capitalize on these benefits while they are in play. Gaining access to insurance benefits while the insured is living stops unscrupulous 18

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businesses from buying insurance policies from sick people for pennies on the dollar. Using life insurance to fund long term care is a great idea for some, though an estate planner can advise regarding the best solution based on personalized needs. Accelerated death benefits, chronic illness riders, and critical illness riders are outstanding considerations and should be discussed.” No matter if you’re a business seeking group coverage, a consumer desiring an individual policy or a life insurance agent seeking to sell, today’s modernized life insurance processes and

policies are far more accessible, affordable and adaptable than ever before, as well being quicker and easier to transact. Industry enhancements and innovations are transforming the life insurance landscape at a rapid pace, largely with a warm reception by all. Sources: https://www.geico.com/information/ credit-use-faq/ http://www.governing.com/gov-data/ state-marijuana-laws-map-medicalrecreational.html https://www.asppa.org/News/Article/ ArticleID/6713 https://www.irs.gov/pub/irsdrop/n-16-50.pdf http://www.lifehealthpro. com/2016/07/14/6-annuity-guaranteedminimum-living-benefit-riders

April 2017

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April 2017

THE INSIDE TRACK - BREAKING NEWS “I WON’T SWIM IN YOUR TOILET...

f you don’t pee in my pool” goes the old pool sign exhorting pool guests to hold their bladders while in the water. Seems it ain’t working. After researchers recently testing 31 pools in Canada discovered that an average 220,000 gallon public pool contained approximately 18.5 gallons of urine. But that’s nothing compared to hot tubs where one contained 3X the amount of urine as the worst pool! Think I’ll skip the hot tub from now on...

$3.04 billion ($2.96 per share) in the 4th quarter of 2016 - from $1.84 billion the prior year same quarter.

HAPPY CLAIMANTS

ccording too J.D. Power, property insurance claims satisfaction is at an all time high rising 1.5%. The 2017 Survey involved 6,645 policyholders who had made a claim in 2016. Five different areas were surveyed: Settlement, 1st notice of loss, estimation process, service interaction and repair process. Greg Hoeg, vice president of U.S. insurance operations

at J.D. Power statedin a press release: “Still, despite the overall improvement, problem areas are evident, most notably in waterrelated and other complex claims that take a long time to settle and that cause significant lifestyle disruption. Insurers that manage to get the settlement process and customer interaction equation right in these types of disruptive and often catastrophic scenarios are those that raise the bar for the industry.” The study showed that the time taken to resolve a claim played a major part in insured overall satisfaction.

AIG CEO TO STEP DOWN

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eter Hancock, the current CEO of the insurance giant AIG announced he will be leaving the post as soon as a replacement can be found. The move by Hancock is a result of shareholder dissatisfaction with the group’s net losses which increased to 20

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April 2017

THE INSIDE TRACK - BREAKING NEWS NEW JERSEY TO LIQUIDATE IFA INSURANCE CO.

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ew Jersey Department of Banking and Insurance Commissioner Richard J. Badolato today announced that the Department has petitioned the Superior Court of New Jersey, Chancery Division to place the Clark-based auto insurer IFA Insurance Company into liquidation. Last year, IFA Insurance Company withdrew from the New Jersey auto insurance market and began the process of running off its business under the Department’s supervision. IFA also operated in Pennsylvania, Delaware and Maryland. The carrier has no active auto insurance policies in force in New Jersey, Pennsylvania and Delaware, and the approximately 400 active policies in Maryland will expire on or before March 31, 2017. The Department has reached the conclusion that IFA’s financial condition has deteriorated such that the company is statutorily www.underwritersinsider.com

insolvent, necessitating the lawsuits, a California appeals company’s placement into court slamed Lloyd’s with liquidation. $50,000 in punitive damages as well as over $1 million in attorney’s fees. The dispute 70 CHARGED IN NC arose when the named RATE EVASION SCHEME insured on a fire insurance policy on a restaurant was orth Carolina Insurance listed as J.K. Properties dba Commissioner Mike Saddleback Inn, in error. The Causey today announced correct named insured should the arrest of 70 individuals have been Saddleback Inn, charged with rate evasion LLC and JK Properties, Inc., in Mecklenburg County. dba Saddleback Inn. Lloyd’s Department of Insurance denied the $2,884,583 claim criminal investigators stating that J.K. Properties was accuse the defendants not the owner of the property of deliberately evading and had no insurable interest. automobile insurance rates Ultimately, the court found in Mecklenburg County that Lloyd’s refusal to honor by fraudulently reporting the policy was unreasonable the same address at 8814 and allowed a “reformation” Silver Charm Lane, Waxhaw. of the contract correcting Investigators allege that 70 the named insured and taxi and limousine drivers eliminating Lloyd’s reason were attempting to evade deny the claim which they the higher automobile subsequently paid along with insurance premiums in substantial interest. Had the Charlotte. agent reviewed the policy on delivery with the insured, LLOYD’S OF LONDON the error probably would have been detected and the SLAMED WITH FINE, considerable and expensive ATTORNEY’S FEES litigation would have been avoided. n a protracted and expensive string of

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April 2017

NEWS

FLORIDA INSURANCE AGENT SENTENCED TO FOUR YEARS IN PRISON FOR STEALING $100K+ FROM ELDERLY CLIENTS

Their investigation revealed that Raghubir gained the trust of two clients, both over the age of 70, and convinced them to purchase life insurance policies and oil annuities. He prepared the paperwork and collected premium payments, but Raghubir never actually purchased the products. Instead, he took their money and deposited it into In late 2015, employees with one his personal account. In total, he collected $123,898. of the client’s financial institutions, Fairwinds “As a former banker Credit Union, noticed myself, I applaud the that their client had keen awareness and written a large check good judgement to pay a life insurance exercised by the premium. However, Fairwinds Credit Union that check was written employees who flagged to a contracted this transaction,” said insurance agent CFO Atwater. “Floridians instead of directly Vinodh Raghubir are the eyes and ears of to the insurance company, which is standard their community, and I am proud procedure. Concerned, the credit that savvy professionals identified union staff immediately reported this crime so we were able to stop their suspicions to AmeriLife Group, his fraud. Stealing from the elderly the company that managed the will absolutely not be tolerated.” insurance agent. The Orange County State Attorney’s Knowing that the Department Office prosecuted the case. In of Financial Services specializes addition to his four-year sentence, in investigating insurance fraud, he’s ordered to pay full restitution AmeriLife Group asked the to his two victims. Following his Department’s insurance fraud incarceration, he will serve a 20division to launch an investigation. year probationary period, during RLANDO, Fla. – Chief Financial Officer Jeff Atwater today announced the recent conviction of former Florida insurance agent Vinodh Raghubir, who was sentenced to four years in prison for stealing more than $100,000 from two elderly clients.

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which he will be restricted from working in a sales position or financial field, with the exception of retail, and is forbidden from having unsupervised contact with anyone over the age of 65. In addition, his insurance agent license was revoked by the Department and he has been permanent barred from working in the insurance industry.

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April 2017

NEWS

NETWORKED INSURANCE AGENTS EXPANDS INTO NEW STATES

RASS VALLEY, CA access to the world’s leading (PRWEB) APRIL 03, carriers.” 2017 Networked Insurance Agents will now offer By expanding membership to independent our footprint P/C agencies from coast-tocoast. As a leading aggregator, across the country, we Networked appoints agencies can support the growth looking for broader market access and professional policy of more insurance support. Aggregation members access more than 40 national professionals,” explains carriers through Networked’s George Biancardi, market-savvy placement Networked’s President team without production and CEO. “Both of our requirements.

membership models

Additionally, qualified empower agencies to agencies seeking direct market access may consider a more effectively compete cluster membership through on each opportunity Networked’s subsidiary, Direct Access Insurance Services through access to the (DAIS). Cluster environments provide direct access to carrier world’s leading carriers.” underwriters. In either scenario, members remain independently “New aggregation affiliates owned and operated. benefit from our team placing “By expanding our footprint and servicing their business. across the country, we can Producers can focus their support the growth of more resources on selling new insurance professionals,” business -- what they enjoy the explains George Biancardi, most,” said Tammy Magliola, President, Business Networked’s President and Vice “Meanwhile, CEO. “Both of our membership Development. members benefit models empower agencies cluster from the group’s combined to more effectively compete on each opportunity through production volume for better www.underwritersinsider.com

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profit-sharing potential.” The current Networked and DAIS membership includes over 1,100 agencies from 11 different Western states. Agency principals interested in learning more should visit http://www.networkedins.com/ national-member.aspx. About Networked Insurance Agents A leading insurance aggregator, Networked Insurance Agents, connects independent P/C agencies to relevant markets and service resources to help them compete on every piece of business. Building on its twenty year history, Networked offers independent P/C agents and brokers placement services for business, home and auto accounts, plus back office support and innovative online tools. Networked employs a professional service staff to partner with its 1,100 affiliate members and is appointed by dozens of the world’s leading insurance carriers. To learn more about Networked, visit http:// www.networkedins.com or call 800-682-8476. April 2017

NEWS

NINE PEOPLE SENTENCED IN MASSIVE $172,000,000 MEDICAL INSURANCE FRAUD SCHEME

Service, Criminal Investigation (IRS-CI), and Michael J. Satz, Broward State Attorney, announced the sentencing of nine of sixteen defendants who were previously charged in a Benjamin G. Greenberg, five-count Information. Acting United States Attorney for the Southern District of The criminal Information Florida, Adolphus P. Wright, charged sixteen defendants Special Agent in Charge, Drug with their participation in Enforcement Administration a complex fraud scheme (DEA), Miami Field Office, regarding the manufacture and Kelly R. Jackson, Special Agent distribution of compounded in Charge, Internal Revenue medications. The fraud involved

material misrepresentations to health insurance providers and illegal payments to coconspirators and medical professionals, including physicians. The fraud generated in excess of $172,000,000 in criminal proceeds for the members of the criminal enterprise. United States District Judge Daniel T. K. Hurley imposed the following sentences: Clifford Carroll, 36, of Boca Raton,

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lorida - Nine defendants were sentenced in federal court for participating in a massive insurance fraud scheme.

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NEWS 180 months’ imprisonment; remaining defendants will be Todd Stephens, 52, of West sentenced in May. Palm Beach, 120 months’ imprisonment; Joel McDermott, According to the Information, 41, of Boca Raton, 72 months’ the defendants participated in imprisonment; Michael Kenna, a two-year conspiracy, which 30, of Delray Beach, 60 months’ used various business entities, imprisonment; including Todd Hanson, 47, The defendants N u m e d of Zephyr Cove, Care, LLC, prepared NV, 96 months’ ClinicalCorp, imprisonment; medications in bulk LLC, RX of Christopher Boca, and quantities, which Mucha, 30, of American they alleged to Davie, 30 months’ C u s t o m imprisonment; Compound be compounded Ian Flaster, 34, Pharmacy, to medications for specific of Delray Beach, perpetrate a 36 months’ individualized patient complex fraud imprisonment; on numerous needs. The defendants William Earl, 73, health care falsely represented to of Boca Raton, insurance 24 months’ the health insurance providers. imprisonment; providers that these T and Dr. Peter h e Williams, 56, of defendants medications were New Port Richey, prepared prepared in limited 60 months’ medications quantities for individual imprisonment. in bulk quantities, patients and were In addition, which they exempt from FDA the defendants alleged to be forfeited over $30 compounded inspection.” million in assets. medications Hearings will be for specific held at a later date to determine individualized patient needs. the amount of restitution owed The defendants falsely to the government by each represented to the health of the defendants. All sixteen insurance providers that these defendants charged in this medications were prepared case have pled guilty, and the in limited quantities for www.underwritersinsider.com

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individual patients and were exempt from FDA inspection. The health insurance providers compensated the defendants for the alleged costs of the ingredients for such medications. The defendants concealed from the health insurance providers that the defendants paid illegal kickbacks to physicians for the issuance of the compounded medications. defendants unlawfully provided the physicians with pre-printed prescription pads. In order to facilitate the fraudulent scheme, the defendants used mass-marketing techniques and call centers, which made material misrepresentations in order to solicit potential patients. Defendants induced owners of failing pharmacies throughout the United States to participate in the scheme in order to perpetuate the fraud. Mr. Greenberg commended the investigative efforts of the DEA, IRS-CI, and the Broward State Attorney’s Office in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Paul F. Schwartz and Jeffrey N. Kaplan. April 2017

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STRUCTURE DEMOLITION FAILS

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othing illustrates the changes in our national culture better than vintage ads from the Mad Men era or earlier - many of which would be considered over-the-top sexist, politically incorrect or just plain dopey today.

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“The Final Authority on Everything!” WARNING!

The Advisor has been known to be politically incorrect and may send certain Millennials scurrying to their safe space. Also not recommended for Progressives who are easily offended. Please read at your own risk.

A Few Unanswered Questions...

ooking back over my inventory of readersubmitted questions, there are a few where the response would not require an entire column, and we are going to consolidate and attempt to clean up those lose questions this month. First:

ADVISOR

Aetna, & United Healthcare , once enthusiastic supporters of ObamaCare, have pulled out of multiple state exchanges after losing millions, in some cases billions of dollars. Does anyone really believe other insurors are just dying to come into those states and share the enormous losses? Unfortunately, all the rhetoric concerns who pays for health care - not the cost of health care. When the politicians address a $4,000 emergency room bill for 3 stitches, they may finally be focusing on the real problem: The cost of health care.

rump is only president because of Russian interference in the election. Surely you can’t be in favor of that? G.G. San Diego, CA A number of U.S. intelligence agencies have concluded that Russia “interfered” with our most recent presidential election. If true, they did so by telling the truth about Hillary, the Clinton Foundation and the DNC via the release of hacked emails. You are probably correct: When the American public learned the truth about the cynicism and

keep hearing that “being able to buy health insurance across state-lines” is going to reduce insurance costs because of competition. What say the Advisor? H.Y. Dallas, TX The Advisor says, “Nonsense.” Humana, 28

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April 2017

corruption rampant in the The Advisor cannot think of of the Obama Administration DNC, the Clinton Foundation a single reason the Russian doing the opposite. May the and Hillary herself, they president Vladimir Putin Russians bankrupt themselves opted for anything else. The would prefer Donald Trump as trying to keep up - as they did President of the only country with Reagan. authenticity of the If the Russians were released emails was If the Russians were going going to skew our never questioned. to skew our election in 2016, election in 2016, surely would have ven though surely they would have worked hard they worked hard to have r e c e n t to have Hillary elected, with her Hillary elected, with disclosures indicated weak, feckless foreign policy and the her weak, feckless the CIA had the organic animus for our military she foreign policy and the ability to hack organic animus for our systems and leave shares with every liberal.” military she shares with Russian, Chinese or every liberal. President North Korean “footprints” to fool investigators, capable of standing up to the Hillary Clinton would have do you still think Russia might of the Russian military. been the dream of every evil was truly responsible for Trump has promised to dictator world-wide from Iran “hacking the election?” dramatically increase spending to N. Korea to Russia - while on the U.S. armed services and President Trump has got to be T.T. Miami, FL rebuild our forces after 8 years their worst nightmare.

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April 2017

220/440 Lic. Ins Agent Needed - Boca

FREE CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider. com/classifieds. Ads must be less than 501 characters plus a title line. Eligible free classifieds include help wanted, position wanted, personal ads, agency for sale/purchase, or the one-time sale of an item or items. Place Ad HERE! REGULAR CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider. com/classifieds. Only $1.00 per word, including title line and response info. Payment must be received prior to print date. Ads run 3 mo.

Experienced Administrative/Accounts Executive Norcross based fast-growing Insurance Agency needs Experienced Administrative/ Accounts Executive with 2 years experience in Insurance Field. Proficiency in computers required. Please e-mail resume to girish_talati@hotmail.com 16-7

Help us expand our Agency (From Home)!! We are seeking an energetic professional to work parttime in a virtual capacity assisting us with recruiting and supporting professional sales agents across the United States and Canada.For detailed information on our company and this non-sales virtual opportunity please contact us today with the following link http://apply. harvardbenefits.com/269541 16-10

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440 or 220 in Boca Raton, Part Time or Full Time Experienced or Trainee; Agent and Customer Service Rep in family owned agency in Boca Raton. Full or Part time. (Flexible Hours) Personal Lines CSR; salary plus bonus. Commercial Agent; 50% commissions and residual. Most important Florida markets and several national markets available. We can compete with the “Big Boys” with our national affiliations. Email your resume to agencyops@gmail.com. or FAX to: 561-416-7221. EOE 17-2

Tampa Area Commercial Producer Agency Established 2006 seeks Outside Commercial Producer. Cutting Edge tech! Generous Comp and Possible Equity Buy In. Experience and FL 220 a must! Resume’ to info@nusurance.com 16-10

Experienced CSR Wanted - Broward Co.

Join our team... A & H Insurance is looking to hire a motivated team member to quote, write & service new & existing customers. Must have active 440 License (we will pay the pre-licensing course for the right candidate) Bilingual a must! Fax resume to:954-251-1423 or email: darlene@autohomeins. net 16-7

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Looking for inside / outside lic. experienced sales rep. Must know QQ/QF, Semcat and other software packages. Efax resume to 954-908-7001. Great office. 16-11

Regional Outreach Coordinator wanted

Looking for professionals who would like to help individuals save on their monthly prescription cost on average 15% for brand name and 55% on generic, while earning a residual income. loucei@msn.com 16-7

2-20/4-40 COMMERCIAL LINES MIAMI DOWNTOWN LOOKING FOR A 2-2O OR 4-40 TO HANDLE COMMERCIAL LINES WITH 1 YEAR EXPERIENCE, PERSONAL LINE KNOLEDGE APPRECIATE , NEED TO SPEAK AFLUENTLY ENGLISH AND SPANISH, WITHOUT PROBLEM TO WORK IN DOWNTOWN MIAMI SEND RESUME DOLORES@JONRAYINSURANCE.NET PH: 305-883-4604 16-9

Field Underwriter As a field underwriter, your job is to meet prospects who have responded to a direct mail campaign asking for more information on our products. When you meet with them you will be determining their eligibility for our products and helping them decide what is best for them. There is no cold-calling required as you are Reply with resume to for immediate consideration with same day response. fieldunderwritersfl@gmail. com 16-10

April 2017

Outside Ins Sales Rep - Must be licensed South Palm Beach Co. Need home based / office outside insurance sales rep. Must have experience cold calling, networking grps and referrals a must. Most know how to type up and prepare a propert commercial risk including acords, loss runs, etc. Pls efax resume and reference list to 954-9087001. jonathandrausch@hotmail.com 16-11

Licensed Sales Producers - Norcross Norcross based fast-growing Insurance Agency needs Licensed Sales Producers in GA, FL TN SC NC TX IL and OH states for marketing 401k plans, Life Insurance products as well as Health Insurance plans. Proficiency in computers required. Please e-mail resume to girish_talati@hotmail.com 16-7

Medicare Supplement Agents Wanted. Tampa and Tri-County Area No sales experience required, will train upon appointment. Need Health and Life License.Great Commissions with 'A'rated Company. Many other insurance products to offer with this great company. Commissions are paid for life and transferable to beneficiaries. Please contact: Charlotte T. Kocian - GA email: agent.char@yahoo.com

BROWARD COUNTY ENTRY LEVEL ACCOUNT MANAGER Growing MGA is looking for a highly motivated & responsible individual. Duties include managing accounts from our distribution channel --- quoting, binding and servicing multiple lines of business. Incredible opportunity for someone looking to learn and grow in a company. Send resumes to info@ everiskpro.com

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Looking to buy a P&C agency in PB county. Please call 561-584-0732

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Help us to expand our Agency (From Home)!! We are seeking a super energetic and motivated professional to work in a virtual capacity assisting us with recruiting and supporting professional sales agents across the United States and Canada. For detailed information on our company and this non-sales virtual opportunity please contact me at: Nicole.lang@harvardbenefits.com Nicole.lang@harvardbenefits. com

Now Hiring All Positions Independent Agency Hollywood, FL Independent agency in Hollywood, FL. We are hiring for all positions, commercial & personal lines agent/account manager/processors/receptionist/bookkeeper. 220/440 experience preferred but not required. cpenate@newmanins.com

2-20/4-40 COMMERCIAL LINES MIAMI DOWNTOWN LOOKING FOR A 2-2O OR 4-40 TO HANDLE COMMERCIAL LINES WITH 1 YEAR EXPERIENCE, PERSONAL LINES KNOWLEDGE AND NEED TO SPEAK FLUENT ENGLISH & SPANISH WITHOUT PROBLEM - DOWNTOWN MIAMI SEND RESUME: DOLORES@JONRAYINSURANCE.NET 305-883-4604

16-11

16-12 www.underwritersinsider.com

Urgent!

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16-7 April 2017

NEWS

QIS: INSURANCE INDUSTRY BRACES FOR DISRUPTION Technology and big data are combining to create a reshaped— and in some ways very different—property & casualty insurance industry.

n late March, Neosurance, virtually unknown five years Caesar’s Palace in Las Vegas in a one-year-old company ago—has recently emerged as early October. developing a mobile one of the hottest areas in business insurance sales solution, was technology development and In addition to Silicon Valley selected by Plug and Play— venture capital funding.” venture capitalists, major said to be the most important insurance firms are creating their startup accelerator worldwide— One indication of the level own VC divisions and investing in for its program in the Silicon of interest in insurtech is the insurtech startups. By investing Valley Tech Center. Neosurance, mushrooming number of in these fledgling companies, along with 25 other startups, insurers hope to get an will take part in a threelook at technology We can see the general early month program meant that could change to give a significant boost outlines of the future, but the industry and to its business through have the opportunity we can’t be entirely sure of the details. intensive interaction with to experiment with corporate partners and What’s important is to understand new products or venture capitalists. Official that our industry and our world are services—as well as corporate partners include putting themselves changing. We can’t just sit back and Aviva, Allianz, Markel, in a position to make Farmers Insurance, Munich let that change happen to us; we need offers for any startups Re, Swiss Re, Nationwide, they see as particularly to be an active part of it.” The Hartford, Talanx, promising. Among Travelers, Zurich, HDI, U.S. insurers that USAA, AON and numerous others. international conferences and have established venture arms trade shows dedicated to the are MassMutual, Transamerica, Michael Macauley, CEO of subject. In San Francisco this and American Family; overseas Quadrant Information Services, spring, the Silicon Valley Insurance insurers with venture capital a leading supplier of pricing Accelerator is sponsoring Core operations include Axa, Allianz, analytics services to property Systems InsurTech Fusion; XL, and China’s Ping An. and casualty insurance carriers, other major upcoming events said, “This is just one example of include InsurTech Conference One of the most notable, and a worldwide trend. Technology 2017 in London in September,3 potentially most disruptive, designed for the insurance and InsurTech Connect 2017 at aspects of the drive towards new industry, or insurtech—a term technology in insurance is the

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NEWS use of massive high-speed data analysis—big data—in evaluating risk and assigning rates. Where an enormous amount of information on consumers is already available, the traditional qualifying insurance questionnaire may become unnecessary. Andrew Brem, chief digital officer at Aviva, commented, “Buying insurance is ridiculously retrograde, with endless questions resulting in a quote. With the use of big data, we are discovering interesting and accurate predictors of risk that do not involve asking people questions.”

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Macauley noted that this makes perfect sense, and in areas such as health and auto insurance, where telematics are being used to monitor policyholders’ fitness patterns or driving habits, it’s already widely accepted. There is, however, resistance to the use of at least certain types of consumer data. In late 2016, for example, second thoughts by Facebook forced Admiral to abandon a plan to use the language people used in Facebook quotes to evaluate how dangerously they would drive—and thus what they should be charged for insurance. How social media data can and will be used in risk evaluation is a question that’s yet to be resolved. Macauley also pointed out that another unresolved question has to do with future industry staffing requirements. A recent McKinsey & Co. report, for example, estimated that automation could leave up to 25% of the insurance industry’s positions consolidated or replaced over the next decade, a view echoed by numerous other industry observers. On the other hand, a recent PwC survey suggested that 77% of global insurance CEOs see the limited availability of key skills, exacerbated by the aging of much of the insurance workforce, as a threat to growth. “As

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society—we’re learning as we go,” Macauley said. “There are very exciting possibilities opening up, and—for privacy and other reasons—there are going to be limits to how far the exploration of those possibilities can go. We can see the general outlines of the future, but we can’t be entirely sure of the details. What’s important is to understand that our industry and our world are changing. We can’t just sit back and let that change happen to us; we need to be an active part of it.”

April 2017

Notable Quotes In The News

SAY WHAT?

Finally, Someone Is Standing Up To The Fat Little Chump Running N. Korea

A Peek Into The Mind Of A Liberal

ell, if China is not going to solve [the problem of ] North Korea, we will. That is all I am telling

Image Credit: Creative Commons

ome guy gave up his first class seat for a uniformed soldier. you.” People are thanking him. I’m trying President Donald Trump not to vomit or yell about Mosul.” in late March putting George Ciccariello-Maher, an associate N. Korea’s Kim Jung-Un professor of Politics and Global Studies at Drexel on notice that the U.S. University tweeting his apparent hatred and is no longer going to disgust for the U.S. Military. His mention of tolerate his increasingly nuclear Mosul was in apparent reference to the combat threatening happening in Iraq to free the city of Mosul from posture. For almost two decades, America has struck deal after deal with the country run by Jung-Un’s father and now Jung-Un to halt their nuclear programs. N. Korea has gone back on its word each time and now offers a clear and present danger to regional as well as American interests as they test rockets soon to be capable of delivering ISIS control. Ciccariello-Maher has been in the nuclear weapons as far as the U.S. west coast. news before after controversial social media tweets when he tweeted on 12/24/2016, “All I want for Christmas is White genocide” If you are a parent of a student at Drexel, you are paying $48,791 annually in fees and tuition for your child to be taught (indoctrinated) by this rabidly anti-American, racist professor. And you can bet he ain’t the only one. Academia in this country has become infested with bat-crazy leftists like Ciccariello-Maher who neither respect nor reflect traditional American values, yet they are allowed to foist their hateful, racist, ultra-left bigotries on our impressionable youth - perhaps why these buttercup students are constantly in search of a safe space... 34

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AR-15 UNFAIR TO BURGLARS?

hat these three boys did was stupid. They knew they could be punished for it but they did not deserve to die. Brass knuckles against an AR15? C’mon. Who was afraid for their life?” Leroy Schumacher, grandfather of Jacob Redfearn, one of three burglars killed by a homeowner armed with an AR-15 assault weapon in Oklahoma late last month. While one can certainly empathize with Mr. Schumacher on the

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April 2017

death of his grandson, the purpose of home defense is not to make for a fair competition with those attempting a burglary or a home invasion. Nor is it reasonable to expect a homeowner, in fear for his life and that of his family, perhaps operating in the dark,to query the intruders as to their class of weaponry prior to opening fire.

RUSSIANS HAVE A SENSE OF HUMOR?

Michael Amodeo, an Uber spokesman responding to reports that the company is using psychological tricks to keep their drivers incentivized and working longer and harder. According to a story in the New York Times, Uber accomplished this by “employing hundreds of social scientists and data scientists, Uber has experimented with video game techniques, graphics and non-cash rewards of little value that can prod drivers into working longer and harder — and sometimes at hours and locations that are less lucrative for them.”

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ou have reached the Russian DRIVERLESS DATA MISSING Embassy. Your call is very important to us. To arrange a call from a ho was speeding? Was there Russian diplomat to your political opponent, a stop sign? What was the press 1,” the recording continues (in both weather? Did the vehicle fail?’ — English and Russian). Users are then instructed and in the future, the same questions will be to “press 2” in order “to use the services of asked. Details of that will be worked out by Russian hackers.” For “election interference” courts in individual cases and those individual requests, “press 3.” cases will provide the backdrop against An April Fool’s Day message playing on the which insurers start answering machine at the Russian Embassy determining their in Washington D.C. clearly mocking those exposure and then in the media and government that have eventually the rates accused the Russians of interfering in our that they charge. Driverless Cars Coming national election in 2016. Insurance is a databased effort to really predict the future based on the past, and when you have dramatically UBER PSYCH? different technologies and new applications e show drivers areas of high for automated driving, it makes predicting demand or incentivize them the future much harder because you don’t to drive more. But any driver can have those reliable data about the past and stop work present. literally at the tap of a button Bryant Walker Smith, a law professor at the — the decision University of South Carolina discussing the whether or not difficulties faced by insurers in determining to drive is 100 liability for driverless car accidents. percent theirs.”

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NEWS DOPEY GEORGIA DUO BEING SOUGHT IN INSURANCE FRAUD AFTER ALLEGEDLY FAKING SAME INJURY THREE TIMES

tlanta, GA – Insurance Commissioner Ralph Hudgens announced today that warrants have been issued for two Metro Atlanta women on multiple counts of insurance fraud for allegedly filing fake auto injury claims that bilked two insurance companies out of more than $21,000.

Commissioner Hudgens’ Fraud Unit revealed that on July 8, 2015, Jenea Daniel filed a claim with Dianne Kirk’s insurer, State Farm, stating that Kirk had run over her left foot with a car as she backed out of a parking space at a Chick-fil-A restaurant in Douglasville.

other insurer GEICO, claiming that Daniel was backing out of a parking space at the Ingles in Douglasville, GA when she struck Kirk’s left foot. State Fraud Investigators believe that Jenea Daniel and Dianne Kirk are acquaintances and worked together to file fraudulent claims to collect insurance settlement monies. Investigators also determined that the duo submitted fraudulent hospital bills, medical records, and doctors’ notes to the insurance companies to help substantiate their claims.

Wanted are Jenea Daniel, 31, of 405 Fairburn Road, Atlanta, Ga., on two counts of insurance fraud and one count of forgery. Dianne Kirk, 52, of 5645 Central Church Road, Douglasville, Ga., is wanted on three counts of insurance fraud and two counts Jenea Daniel (left), Dianne Kirk Banking records show of forgery. Both (Credit: Georgia Office of Commissioner of Insurance) that Daniel received a suspects will be taken A month later on August settlement payout of $12,000 to the Douglas County Jail. 8, Dianne Kirk filed a claim from State Farm, and Kirk two payments “This type of crime drives up against Jenea Daniel’s insurer, received Mountain, totaling $8,158.84 from GEICO. the cost of insurance forcing Progressive claiming that Daniel had Georgians to pay more for their claim filed with coverage,” Hudgens said. “This run over her left foot while The should be a reminder that she was in the parking lot of Progressive Mountain was not filing false insurance claims is an Ingles Grocery Market in paid due to several errors and a crime and those who violate Douglasville. Kirk then filed a discrepancies noticed by the third and final claim on August adjuster. the law will be arrested.” An investigation by 17, this time against Daniels’ www.underwritersinsider.com

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April 2017

www.zalma.com • web log, “Zalma on Insurance” • videoblog, “Zalma’s Insurance 101”

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April 2017

INSURANCE & THE LAW Continued From Page 7

ZALMA of that period. The 2011 suit, of course, was filed years after Diamond State’s coverage terminated, and so at first glance timely reporting of that suit would appear to be out of the question. There are, to be sure, factual allegations in the 2011 suit regarding the dam and Davidson’s status as a real estate broker. Focusing on two allegations regarding a duty of care, Madison Mutual alleges that it is reasonable to infer that said duty includes Mrs. Davidson’s duty of care as a realtor and that the alleged breach of that duty includes her failure, in connection with the sale of the Favres’ property to the Dribbens, to disclose that no permit had been obtained for the dam. To make the obvious point first, nowhere in either the first or second amended complaints filed in the 2011 litigation is the allegation made that Davidson breached her professional obligations as a real estate broker by failing to disclose to the Dribbens that the dam lacked a permit. There is no allegation, express or implied, that Davidson www.underwritersinsider.com

wronged the Dribbens in her capacity as a realtor by not disclosing that the dam was unpermitted.

The defendant was mean, treated her neighbors with contempt and made the defendant’s life miserable, but did not suffer from a professional error or omission.”

this, there is no allegation that Mrs. Davidson was providing professional services to the Dribbens and breached any duty that she may have owed them in that regard. The Seventh Circuit was left with a small subset of factual allegations that overlap with the factual underpinnings of the 2006 suit regarding the dam permit, but no allegation of injury resulting from Mrs. Davidson’s failure to disclose the lack of the permit to the Dribbens and no theory of recovery predicated on that failure.

Likewise here, the factual The complaint overall is one allegations concerning the dam, about Mr. and Mrs. Davidson’s the lack of a permit, and Davidson’s pattern of alleged acts—as role in selling the property to neighboring landowners—that the Dribbens, while they may have interfered with the Dribbens’ provide explanatory background ability to use, enjoy, and sell their for the Davidsons’ alleged acts of own property. The allegations harassment (including the slander on which Madison Mutual has suit), do not point to any theory focused are but a few of the many of recovery against Davidson hundreds of allegations set forth for breach of her professional in an effort to establish why and obligations as a realtor. how the Davidsons made living in the Heartland Oaks development Regardless of the problems a misery for the Dribbens. with the dam and the claim that the Dribbens claim they The reference to Mrs. Davidson’s would not have purchased the status as a realtor appears aimed property that does not transform at suggesting that she, better than what is otherwise a suit about anyone, should have understood the Davidsons’ actions as the how her actions as the Dribbens’ Dribbens’ neighbors into a suit neighbor would interfere with the about Mrs. Davidson’s prior quiet enjoyment of their rights as property owners. Beyond See ZALMA Pg 43 Table of Contents

April 2017

TECHNOLOGY Continued From Page 5

KIM KOMANDO Click here for four reasons private browsing isn’t as private as you think. 3. Go to every site to get the lowest airfare online Most airfare money-saving tips have to do with the airline itself, and the way these fares change over time. But this belief has to do with your browser, and how it communicates with flightbooking websites. When you visit a page, the website remembers that you visited before. Many travel bargain-hunters believe that this awareness causes the prices to climb steadily because you have already expressed interest in a given itinerary. It’s no secret that there are a lot of details about your life contained in your browser’s cookies. That’s why this is one trick you need to try. Click here for the one browser setting to book a cheaper vacation. 4. Buy third-party chargers There you are at the corner drug store, looking at a bunch of cables coiled behind a locked glass door. You left your charger at home, 42

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you’re late for a meeting, and you need to charge your phone. But didn’t you hear something about chargers wreaking havoc on your device? This thought is only half-true. There are plenty of third-party chargers that work perfectly well with your phone.

pull the computer’s power plug or flip the switch on the power strip. Instead, simply hold the computer’s power button for five to 10 seconds, and it will restart with less disruption than a complete power loss.

At this point, you may need to Look for brand names like Belkin troubleshoot the problem. There or Monoprice, which manufacture are basic steps you can take that accessories specifically for Apple don’t require an IT degree. and Android devices. What you should avoid are “knockoff” Click here for basic software and chargers. These are cheap hardware troubleshooting tips to replicas, and they might not have bring new life into your PC. any brand name at all. These aren’t just bad chargers; they can Want to hear more myth-busting short out your phone or even technology truths? Be sure to start fires. listen or download my podcasts, or click here to find it on your Click here for a list of accessories local radio station. You can listen never to buy on Amazon. to the Kim Komando Show on your phone, tablet or computer. 5. Pull the plug when your From buying advice to digital life issues, click here for my free computer freezes podcasts. We’ve all had it happen. You’re doing something on your computer, whether it’s an important project, some aimless Copyright 2017, WestStar browsing, or trying to beat your Multimedia Entertainment. All high score on Solitaire, and rights reserved. without warning, everything freezes. Learn about all the latest technology on the Kim Komando You wiggle the mouse, click the Show, the nation’s largest weekend buttons a few times, tap some radio talk show. Kim takes calls keys on your keyboard and and dispenses advice on today’s nothing. Your 21st-century piece digital lifestyle, from smartphones of technology is as useless as a and tablets to online privacy and pet rock. What do you do next? data hacks. For her daily tips, free newsletters and more, visit her Some people think they have to website at Komando.com Table of Contents

April 2017

NEWS

NAS INTRODUCES CYBER INSURANCE FOR INDIVIDUALS

NCINO, CA (PRWEB) MARCH 31, 2017 - NAS Insurance today announced the launch of a new cyber insurance product for individuals. Available as an add-on product for homeowners’ insurance policies, NAS’ Personal CyberPlus provides unique coverage for the growing cyber risks to individuals and families. “With the increasing threat of ransomware viruses on personal computers, Smart TVs, and other internet-connected devices, we recognize the need to protect individuals from a range of cyberrelated threats,” remarked Matt Sherman, NAS’Senior Vice President of Reinsurance and Programs. “Our carrier partners, eager to meet the needs of their policyholders, are pursuing solutions that enhance their personal lines insurance offerings. Given NAS’ extensive experience in commercial cyber coverage, a personal lines cyber product is a natural extension of our expertise.” NAS’ Personal CyberPlus goes beyond typical identity theft expense coverage to cover cyber bullying, cyber extortion, wire transfer fraud, and breach notification costs. In addition, Personal Cyber Plus covers legal www.underwritersinsider.com

expenses to defend against lawsuits alleging liability for a privacy breach or cyber bullying.

Continued From Page 41

ZALMA actions as the broker who sold them the property.

The 2011 suit does not assert, nor could they potentially assert, a “As our lives are more connected, claim that is plausibly within the cyber threats are ever more professional liability coverage present,” adds Natalie Kelly, NAS’ that Diamond State provided to Senior Vice President of Claims. Davidson. “Expenses incurred by victims of cyber bullying, for example, can Diamond State has no duty to be devastating. In addition to the defend her in the 2011 litigation. emotional toll of cyber bullying, the counseling expenses, lost ZALMA OPINION wages, or even the costs to switch schools can add up quickly. And, An E&O insurance policy that is as wire transfer fraud schemes both claims made and reported become more sophisticated, has no need to defend or individuals are more likely to be indemnify an insured if the claim victimized by cyber criminals and was not both made against the insured and reported to the incur significant losses.” insurer during the policy period. At its core, Personal CyberPlus from NAS is a unique insurance Because the plaintiff insurer product that provides expense claimed the new suit related reimbursement for a broad range back to the suit filed during the of cyber-related threats. policy period the Seventh Circuit avoided the easy answer and NAS Insurance, a leading cyber reviewed everything finding no insurance underwriter, is a full- need to defend because nothing service specialty insurance alleged in the new suit had to do underwriting manager providing with the insured’s professional innovative solutions in product activity. The defendant was development, underwriting, mean, treated her neighbors marketing, risk management, with contempt and made the and claims handling for a suite defendant’s life miserable, but of specialty products that are did not suffer from a professional distributed as both insurance and error or omission. reinsurance solutions. Table of Contents

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April 2017