The Underwriter's Insider August 2017 by The Underwriter's Insider

IN THIS ISSUE August 2017 Vol 13 Issue 8 5

5 Ways To Test Your Computer’s Security Hackers use many different methods to invade your computer, so you’ll want to approach the problem from several angles.

There Is No Good Reason To Misrepresent Facts To An Insurer When an insurer evaluates the potential risks faced by an insured it needs to know the properties where the insureds live and, if they have more than one home, the identity and location of each home.

How 4 Ego-Driven Deeds Are Destroying Your Organization - And What You Can Do About It A leader must first call out the fact that the blame game is going on, making it too risky for anyone to take responsibility for anything. By humbly owning their part of the problem, the leader sets the example for others to “look in the mirror.”

Let’s Talk About Climate Change! Some Fact About The Subject You May Not See Elsewhere There’s so much fear mongering among the climate hysterics these days, it’s difficult to pull out the truth where you can make an honest evaluation on the realities of so-called “global warming.”

Texas Agent Charged In Scheme Targeting Injured Workers’ Benefit Father-daughter team used victim’s money for personal use, including buying a cigar lounge!

Businessman Jimmy Patronis Sworn In As New Florida CFO Replacing Jeff Atwater Jimmy Patronis was officially sworn in as Florida’s Chief Financial Officer, replacing Jeff Atwater who is leaving state government to pursue a career in higher education.

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Momentum Machines has developed a meatflipping robot, which can turn out 360 hamburgers an hour.

Lloyd’s: Cyber Attack Cost To Global Economy Estimated At $53 Billion

The Ten Most Stolen Vehicles In America And because of their age, the #1 and #2 most stolen cars in America in 2016 are not even likely to have physical damage coverage in place to cover the theft.

Workers’ Compensation Fraud & Check Cashing Stores or.... How To Reverse Money Launder Back in the 1970s and 80s when “Miami Vice” was ruling the airwaves, Florida experienced a building boom driven in part by the drug trade working to launder its money in So Florida real estate and other businesses.

According to megainsurer Lloyd’s of London, a global cyber attack could be expensive: Anywhere from $4.6 billion to $53 billion in round numbers depending on the size of the attack.

The Cruelty Of The Minimum Wage

Unbelievable Vintage Ads - Another In Our Series Of Ads From The 30s, 40s, 50s & 60s. A classic vintage ad from the period when most advertising to women was directed at male affirmation. After all, what man would want a women who “gasps through a wide open mouth?”

PREFER TO READ OFFLINE? DOWNLOAD & VIEW PDF: HERE!

FEATURES 28

Friendship Thicker Than Dollars? The Advisor Tackles An Ethics Question... Last Friday over dinner, he told me about one of his larger accounts that’s renewing in October. Today they called me for a quote...

San Diego Insurance Agent Charged in $1.1 Million Senior Investment Scam Insurance agent Shawn Heffernan, 42, of San Diego, was arraigned today on multiple felony grand theft and elder fraud charges.

Underwriting Cyber Patching Risk Exploits that are used to weaponize large scale attacks, such as WannaCry, should be a top priority for an organization, as is evident in Verizon’s DBIR 2015.

Virginia Insurance Commissioner To Retire Virginia Insurance Commissioner Jacqueline K. Cunningham will retire at the end of the year after serving for a total of 30 years with the State Corporation Commission’s (Commission) Bureau of Insurance (Bureau).

Barry Zalma

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The Shrill Lies Of The Left, Again... Political pundit and author Derek Hunter in a Townhall column expertly pointing Notable Quotes In The News SAY WHAT? out that behind

Kim Komando

LAAIA Partners with Holtz Children’s Hospital To Better Sick Children’s Quality of Life... The Holtz Children’s Hospital honored the Latin American Association of Insurance Agencies for their support and gracious donation as they cut the ribbon for their newest space...

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CA Ins. Commissioner Davey Jones Goes FullBonkers Left... It is my job to make sure insurance companies evaluate and address potential risks to their investment portfolio.

Cover Photo Credit: Max Manera, U.S. Virgin Islands

AUGUST 2017 INSURANCE • POLITICS • TECHNOLOGY • PEOPLE

A Publication of AdMax Corp., Inc. Corporate Offices P.O. Box 31551 Palm Beach Gardens, Florida 33420 Ron Manera, Publisher/Senior Editor Join Me On Linkedin: HERE Follow Me On Instagram: @rmanera 561.718.0745 • ron@insurmedia.com

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August 2017

TECHNOLOGY

5 WAYS TO TEST YOUR COMPUTER’S SECURITY

Really Cool Info - by Kim Komando

he moment you log onto the internet, your computer starts its game of Russian Roulette. I know that sounds bleak and frightening, but it’s true. Your personal data stored on the hard drive is a magnet for hackers and cybercriminals, and they will stop at nothing to break into your system.

approach the problem from several angles. Think of it like a rancher leaning on the fence to make sure it’s still sturdy. Here are some ways to keep that fence from falling over.

especially contamination. First, MBSA will test your user account passwords and let you know if any account has a weak or disabled password, which is easy prey for hackers. MBSA will also check many of your account settings. Is your computer set up to get automatic updates? Do you have more than one administrator account on the computer? This software will check all of that information for you.

These attacks are often overt and frightening. Virtual bandits have committed wave after wave of digital crimes. They have extorted untold Bitcoin dollars from regular users desperate to decrypt their files.

MBSA also has guides to what settings are preferred and why. Just click the “What was scanned” or “Result details” links to read them.

Tip in a Tip: Just a few weeks ago, ransomware affected some 200,000 Windows computers all over the world. Click here to learn how to protect yourself from ransomware attacks.

Also, pay attention to your shared folders. MBSA will show you folders set up for sharing. You may have opened up some private folders So how do you know if the 1. Test your settings in the past, so anyone on your security you set up on your network can access files in these The first tool in your arsenal computer really works? folders. Make sure you’re only is Microsoft Baseline Security sharing what you meant to share, Analyzer. This free tool examines Hackers use many different and with whom. Click here to your Windows and Office settings methods to invade your for any potential problems, See Kim Komando Pg 44 computer, so you’ll want to August 2017

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INSURANCE & THE LAW

THERE IS NO GOOD REASON TO MISREPRESENT FACTS TO INSURER Expert Analysis & Commentary by Barry Zalma, Esq., CFE To Save $34, Policy Rescinded

insurer to defend the insured while the insurer sought to rescind the policy because the insured failed to advise the insurer of its residence where the accident that

hen an insurer evaluates the potential risks faced Join Barry Zalma’s new Blog: by an insured it needs to know the http://www.zalma.com/blog properties where the insureds live and, if they have more than one home, the identity and location of each home. Insurance premiums resulted in a suit occurred. are calculated based upon the risks of loss that the insurer is BACKGROUND assuming. On March 7, 2014, Jeff Wycoff was allegedly In Mount Vernon Fire Insurance (“Wycoff”) catastrophically injured when Company v. Jack L. Gabelhausen, Jr., and the Estate of Judith he fell 25 feet off the edge of Gabelhausen, United States an infinity swimming pool at a District Court for the District of house on the island of St. Thomas, Montana, Missoula Division, CV in the United States Virgin 16-91-M-DLC (July 10, 2017) the Islands. The home was owned, USDC for the District of Montana in part, by Respondents Jack L. was asked to require an umbrella Gabelhausen, Jr., and his wife,

Judith Gabelhausen (collectively, “the Gabelhausens”). At the time, the Gabelhausens were renting the St. Thomas property to a thirdparty for a wedding. On October 20, 2015, Wycoff filed suit against the Gabelhausens, as well as the co-owner of the St. Thomas property, Jim Schueler (“Schueler”), in the District Court of the Virgin Islands, Division of St. Thomas and St. John. The complaint in that case alleges that the St. Thomas property was maintained in a dangerous condition by the Gabelhausens and Schueler, and Wycoff was injured as a result. The Gabelhausens had a $1 million primary policy with Guardian. In addition to the Guardian policy, the Gabelhausens had also purchased an insurance policy for personal

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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August 2017

umbrella liability coverage (the “umbrella policy”) with Petitioner Mount Vernon Fire Insurance Company (“Mount Vernon”). This umbrella policy was effective from January 29, 2014, through January 29, 2015, and provided $5,000,000 in personal umbrella liability coverage.

judgment. Mount Vernon Bankers Life and Cas. Co., 15 P.3d contends that the umbrella 872, 874 (Mont. 2000) (Montana policy should be rescinded based Supreme Court affirmed district on material misrepresentations court’s ruling that insurance by the Gabelhausens concerning company was entitled to rescind the number of residences they policy pursuant to MCA § 33-15owned. 403). Subsection 403(2) provides Mount Vernon also requests that that: “Misrepresentations, the Court rescind the policy due omissions, concealment of facts, to the Gabelhausens’ failure to and incorrect statements do not From January 2007 to January inform the company about the prevent a recovery under the 2014, the Umbrella policy St. Thomas property. Thus, even if policy or contract unless: ¶ (a) premiums were actuarially the Gabelhausens were absolved fraudulent; ¶ (b) material either based on the insurance of liability in the underlying to the acceptance of the risk or company’s understanding Wycoff litigation, and the issue of to the hazard assumed by the that the Gabelhausens only coverage for the accident became insurer; or ¶ (c) the insurer in good owned two homes. faith would either not It is undisputed have issued the policy Whenever an insured applies for or contract or would that prior to the 2014 policy period, insurance he or she is required not have issued a the Gabelhausens policy or contract in as by the covenant of good faith provided no notice large an amount or at that they were partial and fair dealing to honestly respond to the same premium or owners of the St. rate or would not have all inquiries asked by the insurer and Thomas property. provided coverage advise the insurer of material facts so with respect to the In light of Wycoff’s that it can adequately charge a premium hazard resulting in accident and the the loss if the true appropriate to the risks the insurer is subsequent civil facts had been made suit, Mount Vernon asked to take. In this case, the failure to known to the insurer filed a petition for as required either by advise the insurer of a residence saved declaratory relief the application for the pursuant to 28 U.S.C. § policy or contract or the insured $34 in premium and cost 2201(a). This petition otherwise.” them up to $5 million in coverage.” requests rescission of the umbrella policy Mount Vernon asserts due to Respondents’ that rescission of the alleged misrepresentations moot, Mount Vernon’s rescission umbrella policy is warranted concerning their ownership of claim would continue in this case. under MCA § 33-15-403(2)(c), the St. Thomas property. because in good faith, it would not have issued the umbrella RESCISSION policy at the same premium if ANALYSIS Rescission of an insurance the Gabelhausens would have The parties have put forth contract is permitted pursuant multiple arguments in support of to Montana Code Annotated their cross-motions for summary (“MCA”) § 33-15-403. Steinback v. See ZALMA Pg 43 August 2017

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ANALYSIS

HOW 4 EGO-DRIVEN DEEDS ARE DESTROYING YOUR ORGANIZATION How Leadership Ego May Be Killing Your Company and What You Can Do About It words, the leader’s sense of Instead of empathy or even self-importance and corporate tolerance, the driver’s comments rightness reigns were met with aptured on camera — a supreme. scorn. Finally, Wells passenger being dragged Fargo’s results-atoff a plane goes viral Case in point: The all-costs mindset instantly, and an international initial response led to millions brand-tarnishing moment is by United Airlines of fake accounts made. CEO Oscar being created. By Brandon Black and Shayne Hughes

Munoz regarding employees forcibly removing a passenger from a recent flight was originally positioned as regrettable but Instead, far too many executives necessary. Then lose their cool, shift the there’s the Uber CEO responsibility and fault others who was videotaped — often relegating the situation aggressively arguing with his to “regrettable actions of own driver when he complained employees” or even blaming the about corporate decisions to cut victimized customer. In other fares for Uber’s premium service. As a leader such a scenario is a shining opportunity for a CEO, business owner or senior executive to seize control of the situation, and turn it around.

These are glaring examples of CEOs whose focus on financial and personal success damaged their company’s culture and bottom line — and then they blamed others when things went poorly. While highly public company crises are somewhat rare, each and every day C-suite

bout the authors: Brandon Black and Shayne Hughes are co-authors of the newly released book “Ego Free Leadership: Ending the Unconscious Habits that Hijack Your Business,” written from their personal experience about ego-driven decisions and discovered ways leaders can proactively avoid making those missteps. Reach them online at http://learnaslead.com/ego-free-leadership. Brandon Black

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Shayne Hughes

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ANALYSIS

Image Credit: Creative Commons “alter ego” by TheoJunior is licensed under CC BY 2.0

executives and business owners worldwide are falling victim to their own egos — egos which are preventing them from making sound business decisions, unconsciously setting poor examples for their employees and creating a culture where poor customer service and underperformance are an acceptable way to work. Every organization must decide whether they will allow their companies to be determined by an ego-driven culture or one that is ego free. Many of the employees at the organizations we’ve worked with are talented and hardworking, but have underperformed in their potential in proportion to the severity of these four dysfunctions. Below are four ego-driven personality traits that, at best, are undermining a company from realizing its full potential and, at worst, can cause executives to irreparably damage their business’s reputation and performance. 1. Dismissing Feedback The Symptom: Not listening to other points of view can lead to negative unforeseen and significant consequences in profitability, reputation and employee morale. The Source: Every leader knows August 2017

Every leader knows they should listen, but the ego wants to win, be right and avoid appearing incompetent or stupid. they should listen, but the ego wants to win, be right and avoid appearing incompetent or stupid. When these ego threats are triggered, it is almost impossible for leaders to constructively hear others and take to heart what will be best for the overall business. In the case of Munoz, his initial public response regarding the passenger pulled from the plane was to criticize the passenger and the lack of “proper tools, policies Table of Contents

and procedures.” Deflection by a leader is invariably an ego-driven disaster in the making. “When leaders are defensive or abrasive, it triggers similarly dysfunctional behaviors in their colleagues. It doesn’t matter what poster you put up on the wall. Dominant organizational dysfunction will not decrease See Ego-Free Leadership Pg 14 underwritersinsider.com

Image Credit: Creative Commons

NEWS

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OPINION - EDITORIAL

LET’S TALK ABOUT CLIMATE CHANGE! If you are a typical American, you probably don’t give a whole lot of thought to the subject of climate change, assuming all the excitement must be justified and willing to do your part to save the planet. Here’s some things to think about... By Ron Manera, Senior Editor

were once lush, tropical seabeds You’ve probably noticed neither Alaska nor Saudi Arabia are currently tropical seabeds today. What happened? Drastic climate change! (And without a single climate fanatic around to fret about it nor a human around to blame it on.)

here’s so much fear mongering among the climate hysterics these days, it’s difficult to pull out the truth where you can make an honest evaluation of the realities, and therefore the threat, of so-called “global warming,” now updated for marketing reasons to “climate change” when the temperatures refused to climb. Accordingly, the Insider has decided to throw out a few undisputed, yet rarely FACT #2 - Climate discussed climate “facts” for the Change: It’s consideration of our readers. nothing new. FACT #1 - There have been far more drastic climate changes in the past. Prudhoe Bay, along the Arctic Shore in N. Alaska contains one of the largest oil reserves anywhere because the frozen arctic region was once a shallow tropical seashore. Over millions of years, trillions of tons of biomass settled into the Earth’s crust and under incredible heat and pressure eventually became the substance we now call petroleum. How did all that oil get under the baron sands of Saudi Arabia? Like Northern Alaska, those super-heated deserts August 2017

moderate temperatures. Scientists have determined that variations in the Earth’s orbit and shifting plate tectonics spur the waxing and waning of these periods.”

Wait a minute, Earth is in the midst of an ice age? And now we are beginning to warm? So what’s the panic about? Has anyone explained to Al Gore about “variations in the Earth’s orbit Al Gore, Climate Huckster While it appears the Now Worth $300 Million... and shifting plate climate hysterics tectonics [that] spur have only recently observed that the waxing and waning of these Earth’s climate changes, it’s been periods?” Isn’t the Earth simply cooling and warming more or less repeating the waxing and waning constantly for 4.5 billion years. of temperature that has occurred Scientists have determined there have been at least five major See Climate Change Realities Pg 12 ice ages in Earth’s history and a dozen periods of glacial expansion (glaciation) in the past million years. According to history. com, “Earth is currently in the midst of an ice age, as the Antarctic and Greenland ice sheets remain intact despite Table of Contents

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NEWS - OPINION Continued From Page 11

CLIMATE CHANGE REALITIES over the past million years a dozen times? FACT #3 - The Dire Climate Predictions Have Been Laughingly Wrong For starters, while the BBC reported in 2007 that the Arctic would be ice-free by 2012, in fact, the Arctic ice caps have been inconveniently growing - 29% in a year, according to a report in the UK’s Daily Mail, adding an additional 533,000 more square miles of ice pack extending from the shores of Canada to the northern shore of Russia, than at the same time a year before! And the Antarctic? According to NASA, Antarctic sea ice has reached new record maximum. NASA says, “On Sept. 19, 2014, the fiveday average of Antarctic sea ice extent exceeded 20 million square kilometers for the first time since 1979, according to the National Snow and Ice Data Center.” The high priest of the new religion of climate change, Father Al Gore, told an audience at the Copenhagen Climate Summit in 2009 that, “Some of the models suggest to Dr. [Wieslaw] Maslowski that there is a 75% chance the

entire north polar ice cap, during the summer months, could be For all of Gore’s zeal, the temps completely ice-free within five to have not risen a fraction of what he seven years…” had predicted, (he simply ignored the 15 year pause) nor are the Both Dr. Maslowski’s and Gore’s sea levels rising, other than a very office had to later admit the slow rise (.23mm per year) that prediction was grossly inaccurate. has been going on for a thousand In 2006, the “Gorical” direly years, generating massive proclaimed that “Unless we take disappointment among climate drastic measures the world would change hysterics. reach a point of no return within 10 years,” which Gore said would Gore has a new fantasy flick initiate a “true planetary crisis” due coming out this summer called to man-made global warming. “An Inconvenient Sequel: Truth That was 11 years ago. So far, no to Power.” Even Investors.com “true planetary crisis...” panned the movie recently: “No doubt the politically correct voters Gore’s alarmist 2006 movie, “An at the Academy will adore this one, Inconvenient Truth,” was ground too. Gore speaks the language of zero for the radical“global warming” the self-righteous, self-appointed movement. Gore predicted a bleak, moral superiors, so they will be dystopian near-future with rising happy to again celebrate one of sea levels and dying polar bears if their own while welling up inside the world didn’t immediately heed with a sense of pride.” his warnings by ditching fossil fuels, sharply curtailing the emission of FACT #4 CO2 is not a pollutant CO2 and drastically altering their Listening to the climate hysterics, lifestyle. you would think CO2 (carbon dioxide) is the most deadly gas in In the movie, Gore warned, for the universe. It’s simply not true. example, that the snows would CO2 is neither a pollutant, nor is it melt from Mt. Kilimanjaro “within poison. In every breath you take, the decade.” Wrong again, you breath in 400ppm and exhale Gorester. Check out this traveler’s 40,000ppm of CO2. CO2 is a fuel, image from July 2017 here. a food, for all plant life and there has been evidence that the rising As a special note, there were CO2 levels have been beneficial to so many falsehoods and agriculture. In the absence of CO2, exaggerations in Gore’s movie that all life on Earth would end with the a British judge ruled it could not be food supply. shown to school children without a notice explaining the errors. Recently, Supreme Court Justice

The Polar Bears Are Going To Be Just Fine... HERE Sam Alito declared in a keynote speech to the Claremont Institute’s 2017 annual dinner, “Now, what is a pollutant? A pollutant is a subject that is harmful to human beings or to animals or to plants. Carbon dioxide is not a pollutant. Carbon dioxide is not harmful to ordinary things, to human beings, or to animals, or to plants. It’s actually needed for plant growth. All of us are exhaling carbon dioxide right now. So, if it’s a pollutant, we’re all polluting. When Congress authorized the regulation of pollutants, what it had in mind were substances like sulfur dioxide, or particulate matter—basically, soot or smoke in the air. Congress was not thinking about carbon dioxide or other greenhouse gases.”

Association manipulated data from Washington and other state to advance a political agenda by sources, there is a leftist ideology hiding the global warming “pause.”” and agenda at stake. “In an article on the Climate Etc. blog, John Bates, who retired last year as principal scientist of the National Climatic Data Center, accused the lead author of the 2015 NOAA “pausebuster” report of trying to “discredit” the hiatus through “flagrant manipulation of scientific integrity guidelines and scientific publication standards.”

The Washington Post story concluded with this: “What John Bates has done is to expose this culture based not on robust science, but on promoting an agenda,” Mr. Pielke said in a comment on Climate Etc. “Regardless of one’s views on policies, the scientific method should not be hijacked as they have done.”

“In addition, Mr. Bates told the Daily [U.K.] Mail that the report’s author, former NOAA National Centers for Environmental Information director Thomas Karl, did so by “insisting on decisions and scientific choices His comments drove the climate that maximized warming and crybullies nuts. minimized documentation.”

And this was not the first climatedata manipulation scandal, nor will it be the last. To those who dream of bigger, more intrusive government, there is a lot at stake.

And, while the climate fanatics blame CO2 as the main “greenhouse gas” causing warming, there is much evidence that CO2 increases follow warming trends rather than causing them.

“Gradually, in the months after [the report] came out, the evidence kept mounting that Tom Karl constantly had his ‘thumb on the scale’ — in the documentation, scientific choices, and release of datasets — in an effort to discredit the notion of Fact #5 The Fix Is In a global warming hiatus and rush to Think climate science is an honest time the publication of the paper to game? Think again. According to influence national and international a shocking February 2017 story in deliberations on climate policy,” Mr. the Washington Times, a “Climate Bates said Saturday on Climate Etc.” change whistleblower alleges NOAA manipulated data to hide the Clearly, climate science has become global warming ‘pause’. The climate a religion - a belief system that change debate went nuclear must be protected at all costs Sunday over a whistleblower’s while climate heretics must be explosive allegation that the silenced. Why? Besides the billions National Oceanic and Atmospheric of dollars in grant money coming

Fact #6 The real climate movement has little to do with the climate - but a lot to do with advancing a far-left, globalist agenda. You can listen to Al Gore, who has inconveniently grown extremely wealthy promoting climate change since he left office (estimated net worth of $300 million), or you might note it’s not just a coincidence that the anti-capitalist, anti-industrialist, anti-American, pro-globalist, probig government, pro-wealthtransference crowd is 100% onboard with “Climate Change.” It’s simply the absolute best thing globalists and leftists have ever discovered to advance their uberliberal agenda. Don’t be the last one to figure this out!

Bear AdF.jpg (c) Arturo de Frias Marques This file is licensed under the Creative Commons Attribution-Share Alike 4.0 International license.

ANALYSIS Continued From Page 9

name of the game, it is the rare deplaned in such an un-customerleader who can own his or her focused way? Or what about responsibility first. recognizing from the start that this was not an action consistent The Solution: A leader must first call with the values of the company? out the fact that the blame game Owning a problem requires doing until leaders identify and is going on, making it too risky the right thing above the egoovercome their personal ego- for anyone to take responsibility driven goal of “looking good.” All for anything. By humbly owning leaders know this intellectually — system reactions,” says Black. their (or the team/company) part but when the ego is threatened, The Solution: A culture of trust and of the problem, the leader sets the the brain stem takes over and we transparency starts at the top. This example for others to “look in the react ineffectively. means that the CEO, executive or mirror.” Leaders who are secure business owner must be highly — enough to say “I screwed up” 3. Us. vs. Them and visibly — receptive to input create a culture where employees The Symptom: Human Resources and feedback — especially when hold themselves accountable. is frustrated with Operations, they disagree. For example, Sales ignores HR, and notice when you are sure that A leader must first everyone is mad at IT. In this you are right and ask your call out the fact that common climate of mistrust, team to tell you what you are performance issues don’t get not seeing or hearing the blame game is going on, addressed, and departments making it too risky for anyone fight over who’s in charge instead of coming together to take responsibility for 2. The Blame Game to achieve the organization’s The Symptom: When things go anything. By humbly owning goals. wrong, our ego involuntarily their (or the team/company) The Source: While everyone points the finger at others. Our focus is on who’s incompetent, part of the problem, the leader may complain about turf doesn’t get it, or never should sets the example for others to wars, there is a hidden side benefit to the ego. Any lack of have been put in that role. “look in the mirror.” Leaders performance can be passed Painting a bleak picture of off as the failure of another the company, co-workers, our who are secure enough to person, group or department, customer base, etc., may make say “I screwed up” create a and we get to be right that if us feel better, but often makes us look worse. culture where employees hold they had just listened to us, everything would have turned themselves accountable.” out fine. The unchecked ego The Source: For the ego, being will choose being right over wrong or at fault (especially making progress. in public) can feel like death. Let’s How much better off would Munoz face it: Everyone wants to be the have been to acknowledge that hero and no one wants to be his policies directly or indirectly The Solution: One way to break this the fall guy. When blame is the contributed to passengers being deadlock is to acknowledge the

EGO-FREE LEADERSHIP

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August 2017

ANALYSIS conflict and seek to understand how you are contributing to the problem. How are the other side’s frustrations with you true? What are the consequences on the organization’s perfor mance of your turf war? What common goals can you align on? That other group you think doesn’t get it actually feels just like you do. If you put your ego aside, they more than likely will too.

Then let them know what your intention is for the conversation,” says Hughes. “Finally, state your observations about their behavior, not your conclusions.” One leader’s vulnerability can lead the way for someone else to face their fear of conflict, and encourage them to be more open to feedback — see point 1.

4. Avoiding Conflict The Symptom: Performance and interpersonal issues don’t get addressed directly. Too often, leaders sugarcoat, vent to others or just move folks from role to role. As a result, productivity suffers, employees feel unengaged and important matters are left to fester. The Source: Almost no one wants to appear mean or uncaring, and even senior leaders resist being disliked. So we tell ourselves that we don’t want to hurt the other person’s feelings by being too direct. At a visceral level, we avoid putting ourselves in the uncomfortable position of having a direct discussion about a delicate issue.

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The Solution: “There are three steps to overcoming this ego threat,” says Shayne Hughes, coauthor. “Start by sharing with the other person the discomfort you feel at bringing up the issue. August 2017

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

“The Preeminent Event of the Year” What you will Experience  3 Days of CE Classes  Network with over 1,000 Industry Professionals  Trade Fair with over 100 exhibitors  Nightly Dynamic Networking Events  Domino Tournament  Charity Golf Tournament

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.

Don’t Miss This Great Event! /LatinAgents 16

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NEWS TEXAS AGENT CHARGED IN SCHEME TARGETING INJURED WORKERSâ&#x20AC;&#x2122; BENEFIT FUNDS Father-daughter team used victimâ&#x20AC;&#x2122;s money for personal use, including buying a cigar lounge!

ONG BEACH, Calif. - Tom Fallon, 63, of Long Beach, is being arraigned Monday, July 24 in Superior Court in Long Beach on multiple felony charges including theft by embezzlement and money laundering. Fallon's daughter, Christina Fallon, 28, also of Long Beach, is scheduled to surrender herself at the Long Beach Police Department on Monday, July 24 and is facing the same felony charges. According to investigators with the California Department of Insurance Investigation Division, Tom Fallon and his daughter allegedly embezzled $273,954 from injured workers who trusted him to invest settlement funds from workplace accidents with his company Fortis Financial Insurance Services, Inc., and then diverted their funds to his own accounts for his personal use.

Commissioner Dave Jones. "By stealing from injured workers who depend on the funds for future care, the Fallons may have left many victims without the resources they need for medical treatment."

as a Workers' Compensation Set Aside Arrangement, which would provide investment management for their settlement.

In December 2014, the victims received an interest payment check from Tom Fallon that bounced for nonsufficient funds, which raised their suspicions that something was wrong. The victims filed a request for assistance with the California Department of Insurance Consumer Services Division, which led to a criminal investigation that Tom Fallon, 63 and Christina Fallon, 28 uncovered the alleged crime Evidence revealed Tom Fallon and revealed Fallon embezzled suggested two victims who over $250,000 from the victims received a $273,974 settlement and used the funds for his personal from a work-related traffic collision expenses and business ventures, deposit their accident settlement including Big Daddy's Cigar lounge funds with him in what's known in Naples.

"The Fallons' alleged theft from injured workers is particularly egregious," said Insurance

August 2017

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NEWS

BUSINESSMAN JIMMY PATRONIS SWORN IN AS NEW FLORIDA CFO REPLACES JEFF ATWATER

ALLAHASSEE, Fla. – Today in Tallahassee, Jimmy Patronis was officially sworn in as Florida’s Chief Financial Officer, replacing Jeff Atwater who is leaving state government to pursue a career in higher education. As a former member of the Florida House of Representatives and a successful business owner, Patronis brings to the Department a unique expertise of the Florida economy as well as private sector perspective on many of the Department’s key issues, such as financial accountability, protecting employees from the harmful effects of on-the-job injuries, contract management and the importance of providing consumer services aimed at improving the quality of life of all Floridians.

accounting and auditing functions, monitors the investment of state funds and manages Florida’s risk management program. The Department also serves as the clearinghouse for insurance The Chief Financial Officer information, licensing insurance oversees the Department of agents and addressing consumer Financial Services, serves as complaints involving insurance companies. Law enforcement units aggressively fight insurance and public assistance fraud and ensure that employers a d e q u a t e l y provide workers’ compensation insurance for employees. look forward to continuing the legacy of CFO Jeff Atwater in creating the same opportunities and success that my family has seen for all Floridians.”

Jimmy Patronis was born and raised in the Florida Panhandle. The Patronis Family owns and operates Captain Anderson’s, a Panama City restaurant currently Florida’s New CFO Jimmy Patronis celebrating its 50th “Florida is without a doubt the Florida’s State Fire Marshal and as anniversary. He served in the best place to live, work and raise a member of the Florida Cabinet. Florida House from 2006 to 2014, a family,” said Chief Patronis. “I and has earned degrees from Gulf am honored to serve my fellow The Department of Financial State College and Florida State Floridians in this capacity, and I Services manages the state’s University. 18

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August 2017

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August 2017

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THE INSIDE TRACK - BREAKING NEWS Strange ‘Alien’ Signals Coming From Space?

explanations for the signals: 1) Solar flare emissions from the star, 2) Signals emitted from another object in the he giant Arecibo same field of view, or, 3) Observatory in Puerto Signals from an alien source. Rico has recently been picking up some strange Lloyd’s: Cyber Attack signals from Ross 128, a small red dwarf that happens Cost To Global Economy: to be the 12th closest star $53 Billion to Earth at 11 light years

Image Credit: Creative Commons

Listen To The Signal distant. “We believe that the signals are not local radio frequency interferences (RFI) since they are unique to Ross 128 and observations of other stars immediately before and after did not show anything similar,” according to Professor Abel Mendez of the University of Puerto Rico. Scientists believe there may be only 3 possible 20

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ccording to megainsurer Lloyd’s of London, a global cyber attack could be expensive: Anywhere from $4.6 billion to $53 billion in round numbers depending on the size of the attack - but the report

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also stated that the “actual cost of the attack could approach $121 billion if all related costs were factored in. $45 billion of that sum, according to the report, may not be covered under cyber insurance.

Patriot National’s Board of Directors Names Glenn Hibler Chairman

ORT LAUDERDALE, Fla., (GLOBE NEWSWIRE) -- Patriot National, Inc. (NYSE:PN) (the “Company”), a leading provider of technology and outsourcing solutions to the insurance industry, announced today

August 2017

THE INSIDE TRACK - BREAKING NEWS dental plans that was sold to MetLife. Previously, Mr. Hibler co-founded Benefitport, a technology firm specializing in internetbased employee benefits and group insurance. He is currently on the board of directors of Managed Discovery Network, a privately held company that Glenn Hibler provides litigation support that Glenn Hibler has been services to the insurance elected as Chairman of industry. Patriot National’s Board of Directors (the “Board”), Lloyd’s Post -BREXIT effective July 14, 2017. Mr. Hibler succeeds Steven n order to maintain cost M. Mariano, following his effective relations with resignation as Chairman, President and CEO on July former EU states, Lloyd’s 14, 2017. Mr. Hibler has 25 of London is establishing a years of experience in the European insurance division insurance industry and in Brussels ready to come significant expertise in on line on Jan. 2019. Lloyd’s strategic planning as well chief executive, Inga Beale, as product development said: “It is important that and distribution. He is we are able to provide the the co-founder of Traffk, a market and customers with California-based provider an effective solution that of underwriting and risk means business can carry on services to insurance without interruption when carriers. Previously, he the UK leaves the EU. Brussels founded The Insurance met the critical elements Exchange, a brokerage firm of providing a robust specializing in the design regulatory framework in a and distribution of national central European location,

Image Credit: Creative Commons

August 2017

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and will enable Lloyd’s to continue to provide specialist underwriting expertise to our customers.

10 Most Stolen Vehicles

ccording to the National Insurance Crime Bureau the 10 most stolen vehicle in the U.S. were: 10) 2000 Jeep Cherokee/Grand Cherokee 9) 2008 Chevrolet Impala 8) 2015 Toyota Corolla 7) 2001 Dodge PickUp 6) 2015 Nissan Altima 5) 2016 Toyota Camry 4) 2004 Chevrolet Pick-Up 3) 2006 Ford Pick-Up 2) 1998 Honda Civic, and, drumroll, 1) 1997 Honda Accord with 50,427 units stolen in the past year.

Insurers That Most Rely On Credit Scores For Auto Insurance

he insurance carriers, in order of their reliance on credit scores, are: 1) Farmers 2) Allstate, 3) State Farm, 4) Progressive, and, 5) Geico.

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NEWS

THE CRUELTY OF THE MINIMUM WAGE By Guest Columnist Professor Walter E. Williams

here are political movements to push the federal minimum hourly wage to $15. Raising the minimum wage has popular support among Americans. Their reasons include fighting poverty, preventing worker exploitation and providing a living wage. For the most part, the intentions behind the support for raising the minimum wage are decent. But when we evaluate public policy, the effect of the policy is far more important than intentions. So let's examine the effects of increases in minimum wages. The average wage for a cashier is around $10 an hour, about $21,000 a year. That's no great shakes, but it's an honest job for full- or part-time workers and retirees wanting to earn some extra cash. In anticipation of a $15-an-hour wage becoming federal law, many firms are beginning the automation process to economize on their labor usage.

orn in Philadelphia, Pennsylvania, Dr. Walter E. Williams holds a B.A. in economics from California State University, Los Angeles, and M.A. and Ph.D. degrees in economics from UCLA. He also holds a Doctor of Humane Letters from Virginia Union University and Grove City College, Doctor of Laws from Washington and Jefferson College and Doctor Honoris Causa en Ciencias Sociales from Universidad Francisco Marroquin, in Guatemala, where he is also Professor Honorario. Dr. Williams has served on the faculty of George Mason University in Fairfax, Virginia, as John M. Olin Distinguished Professor of Economics, since 1980; from 1995 to 2001, he served as department chairman. He has also served on the faculties of Los Angeles City College, California State University Los Angeles, and Temple University in Philadelphia, and Grove City College, Grove City, Pa. To learn more about Professor Williams, visit the Creators Syndicate webpage at www.creators.com.

McDonald's is rolling out selfservice kiosks that allow customers to order and pay for their food without ever having to interact with a human. Momentum Machines has developed a meat-

flipping robot, which can turn out 360 hamburgers an hour. These and other measures are direct responses to rising labor costs and expectations of higher minimum wages.

Seattleâ&#x20AC;&#x2122;s Minimum Wage Increase Costs 6300 Jobs

Panera Bread, a counter-serve cafe chain, anticipates replacing most of its cashiers with kiosks. 22

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NEWS

Here's my question to supporters of higher minimum wages: How compassionate is it to create legislation that destroys an earning opportunity? Again, making $21,000 a year as a cashier is no great shakes, but it's better than going on welfare, needing unemployment compensation or idleness. Why would anybody work for $21,000 a year if he had a higher-paying alternative? Obviously, the $21,000-a-year job is his best known opportunity. How compassionate is it to call for a government policy that destroys a person's best opportunity? I say it's cruel.

wage does. According to the East Bay Times, about 60 restaurants around the Bay Area closed between September and January. A recent study by Michael Luca of Harvard Business School and Dara Lee Luca of Mathematica Policy Research calculated that for every $1 hike in the minimum hourly wage, there is a 14 percent increase in the likelihood that a restaurant rated 3 1/2 stars on Yelp will go out of business.

restaurants are thought to require profit margins between 3 and 5 percent to survive.

Some think that it's greed that motivates businessmen to seek substitutes for labor, such as kiosks, as wages rise. But don't blame businessmen; just look in the mirror. Suppose both McDonald's and Burger King are faced with higher labor costs as a result of higher minimum wages. McDonald's lowers its labor costs Fresno Bee reporter Jeremy by installing kiosks and laying off Bagott says that even some of workers, but Burger King decides San Francisco's best restaurants to not automate but instead keep fall prey to higher minimum the same amount of labor. To wages. One saw its profit margins San Francisco might give us some fall from 8.5 percent in 2012 to See Cruelty of Minimum Wage Pg 41 evidence for what a $15 minimum 1.5 percent by 2015 HERE. Most August 2017

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NEWS

WORKERS’ COMPENSATION FRAUD AND CHECK CASHING STORES OR ….. HOW TO REVERSE MONEY LAUNDER WHY?, it’s cheaper to pay someone $100.00 in cash for a day’s labor, then to pay them on the books, withhold taxes, pay taxes, provide workers’ compensation insurance etc. so by Michael Speizman that same person nets $100.00 in ack in the 1970s and their paycheck. I will expand on 80s when “Miami Vice” this in a later column. was ruling the airwaves, Florida experienced a building But how boom driven in part by the drug do you pay trade working to launder its cash? Don’t money in So Florida real estate GCs demand and other businesses. certificates of workers’ The goal back then was to take compensation dirty cash, and turn it into clean c o v e r a g e ? money sitting in a bank that will Won’t the IRS pass muster with the IRS and other want to see that this cash going enforcement agencies. Today, out is a valid expense? There many construction companies are many ways to do this; here is seek to do the opposite, take one involving shell companies, clean money sitting in a bank and facilitators, uninsured turn it into dirty cash that can be subcontractors, crooked GCs and used to pay construction workers check cashing stores. cash wages off the books. The Facilitator, is the person or

Note: This is only an explanation not a primer…

About The Author: Michael Speizman is a voting member of the Florida Workers Compensation Fraud Task Force. Michael has over 25 years’ experience with Employee Leasing and Professional Employers Organizations as both an owner and broker. He is an experienced HR Outsourcing consultant with My PEO Agency. Michael’s specialties include Blue Collar Industries, JUA, Staffing, Transportation and hard to place risks of all sizes. 24

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group of persons behind this scheme, they are running the operation. Sometimes they are immigrants, sometimes they are GCs themselves. In some cases organized crime syndicates are involved as well. Shell companies, a firm which is used to act as a legitimate subcontractor. Started by a patsy of the Facilitator the shell company will operate for a few months and then fold when law enforcement finds them. Uninsured Subcontractors, there are many firms in Florida who do not carry workers’ compensation or pay taxes on their employees. Typically they hire undocumented immigrants or others who wish to work off the books. Without having to pay taxes or carry workers’ comp, their pricing can be well below honest competitors. Crooked GCs’, GCs have been caught actively participating in this scam; see Richard and Rice Construction HERE. Or the GC may be unaware of their subs activities and or not willing to August 2017

look too deeply at great pricing from Subs.

out as “Sunshine Construction”. But what does the uninsured Sub do with a check payable to “Sunshine Construction” ? The uninsured sub is not on any paperwork for the Shell Company, and the Shell Company will not have a bank account. Here is where the check cashing store comes in.

Before work begins the GC gets Check Cashing stores, normally a copy of the uninsured subs’ we are not talking about the certificate of coverage, they can large national chains, but smaller also go online to confirm and operations operating from one print confirmation of the workers’ location. compensation policy being in force. The GC at the end of the job can pay the uninsured sub So how does it work? a check payable to “Sunshine The Facilitator will set up a shell Construction”. The facilitator will direct the company, let’s call it “Sunshine Uninsured Subcontractor to a Construction”. The facilitator will From the GC’s standpoint, they specific check cashing store, that then secure a minimal workers’ have secured a low cost sub, and store will cash the GC’s check, compensation policy from an they have certificates of coverage charge a 1% fee on the books and agent and secure certificates of to prove the sub had workers’ another 4 to 9% fee off the books insurance. The Facilitator will then comp coverage. The GC has also and hand the sub cash which the work with a group of uninsured paid by check to a corporation, sub can use to pay his employees subs to “rent” those certs so they allowing them to expense the in cash. Now, the GC has the can solicit jobs from GCs and cost of the sub on their taxes. For other construction firms. Each the GC it’s a win. uninsured sub will hold them self See Workers’ Comp Fraud Page 45 August 2017

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RAND PAUL SCHOOLS CNN’S JAKE TAPPER ON CLIMATE CHANGE

WHAT’S THE DEEPEST HOLE WE COULD DIG?

UNBELIEVABLE VINTAGE ADS

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 goofy today.

classic vintage ad from the period when most advertising to women was directed at male affirmation. After all, what man would want a women who “gasps through a wideopen mouth and her voice has that nasal twang?” Because “Men Hate Sniffly Noses!”

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HERE 26

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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.

Friendship Thicker Than Dollars?

have an ethical dilemma and I’ve seen you address them in the past. I own a substantial agency here in town. One of my closest friends owns a similar, but smaller, agency across town. We frequently socialize with the wives. Last Friday over dinner, he told me about one of his larger accounts that’s renewing in October. He even told me the exact amount of his renewal bid. Today, the same account called my agency looking for a bid on the same risk. I am reasonably certain I could offer a more competitive quote on the account because 1) I have a market that specializes in that type of business, and 2) I am certain I can ask the underwriter to beat the other bid because we need to come in under to win the account. It’s a big account - over $75K. Here’s my question: Do I outbid my friend and write the account? Do I decline to bid on the account? Do I

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ADVISOR

bid high so my friend can win the insurance professional. The account? Thanks for The Insider the whole office loves it. — J.W. Advisor recommends telling the risk that there exists a (city and state withheld)

Interesting question, J.W. , and it seems to present itself as a no-win situation for you. If you bid the risk with inside information given you by your friend, you are violating a trust more important than commission dollars. If you bid the risk intentionally high to make your friend’s bid look more attractive, you are, in effect, cheating the client out of your best services and breaching your ethics as an

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conflict of interest and a bid cannot be made in good conscience. We don’t believe it would be a violation of ethics for you to enthusiastically plug your friend while declining the risk, nor would it be a breach to advise your friend that the account is up for bid. He may be able to get his underwriter to sharpen the proverbial pencil. If the account renews, your friend owes you dinner - and that’s your only win here.

August 2017

It’s a Tough Call...

y insurance office writes a large number of elderly drivers. Frankly, some of these drivers have a hard time simply negotiating their way from the door to my desk and I worry about them on the highway. What guidelines should I use to determine whether I want to continue underwriting certain senior citizens? - C.S., Miami, FL

More and more of a problem as our population ages, the Insurance Information Institute released a list of signs that it might be “time to retire from driving.” • Drives at inappropriate speeds; responds slowly or doesn’t notice other drivers or pedestrians. August 2017

• Fails to yield to other cars or pedestrians who have the right-of-way. • Ignores street signs and traffic lights. • Fails to judge distances between cars correctly. • Becomes easily distracted; appears drowsy, confused or frightened. • Has one or more near accidents. • Drifts between lanes or bumps into curbs. • Drives without headlights on. • Has difficulty with glare from oncoming headlights, streetlights, or other bright objects. • Has difficulty turning their head, neck, shoulders or body while driving or parking. • Ignores signs of auto Table of Contents

mechanical problems such as low-inflated tires (a frequent cause of accidents). • Not strong enough to turn the wheel quickly in an emergency situation. • Gets lost repeatedly, even in familiar areas. You may consider it a portion of your underwriting responsibility to take a moment and evaluate older drivers that may possibly be impaired. We might also add that if the customer drives his ’94 Buick through your plate glass window and parks on top of your copy machine, you should probably run down the list before issuing a binder. underwritersinsider.com

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.

Insurance Agent With 220 License We are looking for Insurance Agent with License 220 In Kissimmee, Florida Are Full Time on Agency. Please call 407-847-2539 for Interview Ask for Alex Ramos alexinsurance@aol.com 17-6

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

FREE CLASSIFIEDS! HELP WANTED — POSITION WANTED 4 — SALE ITEMS

CLICK HERE! 30

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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 561-829-2055. 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

August 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 property commercial risk including acords, loss runs, etc. Pls email resume to: jonathandrausch@hotmail.com 16-11

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

16-9

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

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

Efax: (561) 829-2055

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SUBMIT YOUR FREE CLASSIFIED AD HERE

17-3

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 August 2017

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NEWS

SAN DIEGO INSURANCE AGENT CHARGED IN $1.1 MILLION SENIOR INVESTMENT SCAM According to investigators, Heffernan initially sold annuity policies issued by legitimate insurance companies, but then AN DIEGO, Calif. - Insurance convinced clients to surrender agent Shawn Heffernan, their annuities and purchase 42, of San Diego, was new ones with different i n s u r a n c e arraigned today on companies, multiple felony grand which resulted theft and elder fraud in him collecting charges. Heffernan substantial was arrested at his commissions residence yesterday for the new after an investigation sale, but cost by the San Diego his victims large Regional Fraud Task early surrender Force revealed he penalties. In one allegedly defrauded Shawn Heffernan, 42 case, investigators five senior victims out of more than $1.1 million promising identified more than $490,000 investment returns, but spent in early surrender fees for the victims' money on his own the client and $280,000 in commissions personal expenses including additional jewelry, rental properties, and collected by the defendant.

Search for more victims underway

a Maserati. Three of Heffernan's victims were seniors. "Heffernan's alleged crimes are reprehensible," said Insurance Commissioner Dave Jones. "Heffernan violated his fiduciary responsibility when he used his position of trust to take advantage of vulnerable seniors by taking their money and using it to live the high life." 32

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Heffernan used money taken from new investors to satisfy the earlier investors. "This defendant took advantage of some of the most vulnerable in our community, stealing their money and leaving them high and dry for his own personal gain," said San Diego District Attorney Summer Stephan. "This prosecution is a great example of our office's commitment to fighting financial elder abuse and helping seniors know how to protect themselves against it."

Investigators are concerned Heffernan may have more victims and are urging anyone who did business with Heffernan and believes he may have defrauded them to contact the California Department of Evidence revealed Heffernan Insurance at (858) 693-7100. allegedly convinced victims to cash out their annuities or The criminal complaint invest additional funds into includes five felony counts vaguely defined investments. of grand theft, three felony Heffernan then deposited the counts of elder fraud, and an money into a personal bank aggravated white-collar crime account and spent it on his enhancement. If convicted of living expenses. If a client all charges, Heffernan faces a requested to withdrawal maximum sentence of 14 years money from their investment, in state prison. Table of Contents

August 2017

NEWS

LAAIA PARTNERS WITH HOLTZ CHILDREN’S HOSPITAL TO BETTER SICK CHILDREN’S QUALITY OF LIFE WITH A CREATIVE ARTS STUDIO LAAIA and Holtz Children’s Hospital hosted a ribbon cutting ceremony on May 31st in honor of their new Creative Arts Studio for children.

iami, FL: On Wednesday, May 31st, 2017 the Holtz Children’s Hospital honored the Latin American Association of Insurance Agencies for their support and gracious donation as they cut the ribbon for their newest space, a Creative Arts and Activity Studio.

arts like drawing, painting, and sculpture, and also boasts a miniphoto studio for portraits. Now, the kids will have access to Music Therapists who can help them cope with their medical conditions via writing, producing, and sharing their music, collaborate with volunteer artists in a hands-on environment, and take pictures in a studio setting. “We are working very closely

available resources,” says LAAIA’s current President, Sebastian Rejon. “We are looking forward to its completion in the upcoming months!”

The Creative Arts and Activities Studio aims to help children cope with their medical conditions in a thoughtful, creative way— offering respite from difficult procedures like Bone Marrow and Organ Transplants, Cancer The Creative Arts Treatments, and Trauma and Activities Studio Injuries.

In late 2015, LAAIA (the Latin American Association of Insurance Agencies) committed to raising $150,000 for the Child Life Services aims to help children cope Department at Holtz Children’s Hospital to build a state-of-thewith their medical conditions art Creative Arts and Activities Studio for the resident in a thoughtful, creative way— children. Roughly seventy offering respite from difficult pediatric patients reside at procedures like Bone Marrow Holtz Children’s Hospital, many of whom are unable to and Organ Transplants, Cancer go home for holidays or spend Treatments, and Trauma time with their families outside Injuries.” of the hospital. The Creative Arts and Activities Studio will be equipped with a fully functioning recording studio, a designated space for creative August 2017

About LAAIA:

The Latin American Association of Insurance Agencies was founded in 1969 as “The Voice of Independent Insurance Agents.” We work to ensure a healthy insurance environment by providing continuing education, legislative advocacy, representation on national with the hospital’s construction advisory councils, community and design teams on refining the outreach and the largest annual details and ensuring this project insurance convention and trade offers the children at Holtz the best fair in South Florida. Table of Contents

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Notable Quotes In The News

SAY WHAT?

out that behind virtually every Democratic position exists a giant, obvious lie. They push these disingenuous myths because they have no real message, no core principals to bring to The Shrill Lies Of The Left the American people. They seek only political power. Anyone who still believes the desperate emocrats are telling their Democrats operate with an actual goal of zombie army that the GOP’s benefiting the American people must have “secret plan” is to take from the been in a coma since the 80’s. poor and give to the rich. Aside from the abject stupidity of it, what exactly would Harvard U’s “Inclusion” Fetish May the rich take from the poor? How, exactly, does one get rich by taking things from the Lead To Total “Exclusion” of All Clubs poor? Do they have secret stashes of money they’re unaware of and rich people are s reflected in survey comments, sneaking into subsidized housing at night to these organizations directly empty the area under their couch cushions? and negatively influence the Actually, there is a way to get incredibly undergraduate experience for many students rich off the poor – it’s by claiming to be who are not themselves members of their champion. How these organizations. The discriminatory many liberals have practices of these organizations become fabulously undermine our educational mission and wealthy by claiming the principles espoused by this faculty to be “working for and distance their members from their the poor”? They college experience.” haven’t made a dent in the number From a Harvard University committee’s of poor people report proposing a complete ban on quite the contrary fraternities, sororities or any gender-based - but Barack Obama, clubs or because they are just too “exclusive.” Sen. Elizabeth Warren - One of Hillary Clinton, the loudest and most divisive The committee explained, Harvard’s Bernie Sanders, voices on the extreme left. “commitment to non-discrimination, Elizabeth Warren, and inclusion, and a healthy social climate,” was countless other leftists have ensured their paramount and added that the impact of the families won’t miss a meal for generations single-gender clubs “permeate[s] the fabric of thanks, in large part, to their “championing campus culture.” The goal of the committee is of the poor.” to prohibit new enrollees from joining any such club beginning next semester with the ultimate Political pundit and author Derek Hunter in a goal of eliminating all these organizations by June 25th Townhall column expertly pointing 2022. Pathetic, Harvard.

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August 2017

California Insurance Commissioner Goes Full-Bonkers Left - Tries To SecondGuess Professional Investment Advisors In Support of Climate Change

assets” on the books of insurance companies with significantly reduced or no value.”

California Insurance Commissioner Davey Jones, the most political, far-left insurance commissioner in the nation, in a press release hile politicians in coal, gas, defending himself against wide-spread criticism and oil states continue to after he demanded that insurance companies deny the existence of climate he regulates “voluntarily” divest from coal and change, California has concluded based “publicly disclose their investments in coal, on overwhelming scientific evidence that oil, gas and utilities so insurers, regulators, shareholders, and consumers have climate change is real. The better insight into these investments threats of lawsuits by 12 and the risks they face due to climate red state attorneys general change.” It’s worth noting that Jones and one governor are not has zero investment experience nor is going to stop me from he a climate scientist yet in his liberal doing my job as insurance zeal, he sees no reason that his opinions commissioner to make sure on insurer investments should not carry that insurance companies more weight than those of professional are recognizing potential fund managers. In truth, Jones wishes to financial risks associated publicly shame these companies against with climate change. As the his radical-liberal base for not having chief insurance regulator CA Ins.Commissioner joined the climate hysterics, while at the in California – the largest Davey Jones same time weaken the stock value of those insurance market in the United States—it is my job to make sure insurance carbon-based energy companies he so detests. companies evaluate and address potential As to his claim that his opponents disagree with risks to their investment portfolio, to ensure “overwhelming scientific evidence that climate they are investing in assets that retain value so change is real,” no serious person disagrees that those assets are available to pay future claims. the climate is changing. The climate has been Climate change poses a potential financial changing for 4.5 billion years and will continue risk to insurance company investments in to change for another 4.5 billion years. It is, in coal, oil, gas, and utilities that rely on carbon fact, the climate hysterics that have just figured to generate electricity. The shift away from this out. There have been approximately a dozen fossil fuels and toward renewable energy major glaciations (ice ages) in the past million sources is a growing phenomenon that years - all ending during a period of global started years ago, based on decreasing prices warming - without a climate hysteric, SUV, coalfor renewable energy sources and regulatory fired power plant, or an Al Gore around. The and policy changes at the local, state, national, honest debate is about the degree of change, and international levels investments in oil, the rate of change, the cause of the change and, gas, and coal, and utilities that rely on oil, gas, most importantly, what, if anything, to do about and coal run the risk of becoming “stranded it.

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BACK ISSUES

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ANALYSIS

UNDERWRITING CYBER PATCHING RISK MUCH MORE THAN CHECKING FOR NEGLIGENCE By Rotem Iram

ternalBlue, the NSA exploit to a Windows vulnerability, was made public approximately five months ago. While patches for this vulnerability were made readily available soon afterward, millions of companies were hit by WannaCry in May 2017 while still others were hit by NotPetya a few weeks later. Surely negligence can’t be the only explanation as to why firms are failing to patch against these highly public and very dangerous vulnerabilities, yet businesses continue to fall victim to cyber attacks. What is the missing link, and how can underwriters assess patching risk to help mitigate concerns? Why don’t patch?

good

companies

Several issues could be getting in the way of a successful patch program: • Too many patches – There are too many systems and modules for the IT team to keep track of, and integrating automatic tools is expensive and complex. Left 38

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to manual devices, many Rotem Iram is of them fail to keep track the Founder of everything. Additionally, and CEO of many companies do not stealth cyber enforce centralized updating insurance c o m p a n y for endpoint software and CyberJack. are therefore dependent With nearly on individual employees two decades to keep their own software of security and engineering instances up to date. experience, Rotem previously served • Shadow IT – an elusive, as a Managing Director and COO in and vastly underestimated the Cyber Security practice of K2 phenomenon in Intelligence, a leading global risk which individual users management firm, focusing on cyber independently install intelligence, cyber defense strategy, and incident response. Rotem began software on their endpoint his career as a Captain in Israel’s devices, without the elite Intelligence Unit 8200, and also approval or awareness of served as a consultant for McKinsey the IT team. In other cases, & Company. Rotem holds a bachelor’s employees bring their degree in Computer Engineering from personal devices to the the Hebrew University, as well as an MBA from Harvard Business School. workplace and connect it to their work laptop, custom built software that works effectively adding those devices well but would be expensive to to the enterprise perimeter. The upgrade, with no other benefit IT team has no idea what software to the business but increased or devices users are installing or security. This is an important connecting, and therefore cannot factor because it is pervasive and control the update process. has nothing to do with the quality • Legacy dependencies – Many of the IT security team – their companies have legacy systems hands are tied. that need to communicate with • Only the vendor can patch – For or run on computer systems, but some appliances, and in some do not support new versions. In cases (such as firmware updates), many of these cases, these are old, Table of Contents

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ANALYSIS only the vendor can patch the appliance and the company has no visibility into that process or its timely execution. In most cases, the company isn’t aware that a vulnerability exists and should be fixed. Quality over quantity? Which vulnerabilities an organization patches against matters much more than patching against all vulnerabilities in existence. Exploits that are used to weaponize large scale attacks, such as WannaCry, should be a top priority for an organization, as is evident in Verizon’s DBIR 2015. As shown below, the top 10 vulnerabilities that year were responsible for 97% of exploits: Execution matters Great patching execution is a key success factor – it determines how quickly companies update, and how thoroughly they update. When an IT vendor provides customers with a patch, the vulnerability and patch are made public, allowing every hacker to exploit a target if the organization is slow to update its systems. Very few hackers find zero day exploits (vulnerabilities unknown to vendors), but most hackers, and most attacks, utilize public and relatively new vulnerabilities to exploit this slow reaction. Being thorough and making sure all relevant instances are updated is important; all it takes is one weak August 2017

link for an attacker to get in. How should underwriters assess patching risk? If we turn back and look at how underwriters are assessing the risk of patching, we find that most questionnaires only include the following two questions: • Do you patch? • Do you have an automated tool for patching? While this is a great start, it hardly covers the issue of patching. The IT team may have great processes and tools in place to patch, but they are limited in their ability to cover the entire IT footprint of the organization because of Shadow IT practices, legacy systems or lack of access. In addition to the two questions mentioned above, underwriters should follow this short guide to sophisticated underwriting of patching risk: • Ask – and check – for the underlying factors that prevent organizations from being able to enforce good patch programs: • Shadow IT – Can users install new software on endpoints (technically: do users have local admin privileges)? Are there systems and processes to manage software and hardware inventory and authorization (access control, etc.)? Table of Contents

• Legacy dependencies – Does the organization have dependencies that prevent updates of certain systems, and does the organization have any systems or applications that are declared at end-of-life (EOL) and thus unsupported, by the vendor (e.g. Windows XP)? • Check how quickly and how thoroughly updates are disseminated in the organization – in multiple layers (network, endpoints, etc.). • Checking actual system logs is a technical task, but is simple to execute and provides deep insights. With technical logs, you can tell how quickly a company installed every single patch on its first endpoint and on its last endpoint, thus creating rich benchmarking datasets. • Check that current and forecasted highest priority vulnerabilities are patched by the organization. • As you go through the technical logs, make special note of the existing and emerging top priority patches. Use input from these findings directly in your modifications, and in a dedicated benchmark metric. No company has a perfect system in place, and no company can completely remove the risk from unpatched versions. For underwriters, being able to select the better companies is the key to profitable underwriting – and, as in every aspect of IT security, patching risk assessment is nuanced and rapidly changing. underwritersinsider.com

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MILLENNIALS GET SCHOOLED ON SOCIALISM They’re All For It - But Don’ t Have A Clue What It Is...

HERE VENEZUELA: THE REALITY OF SOCIALISM... Another “Worker’s Paradise” Destroys The Very Lives It Promises To Benefit.

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NEWS VIRGINA INSURANCE COMMISSIONER TO RETIRE

ICHMOND — Virginia Insurance Commissioner Jacqueline K. Cunningham will retire at the end of the year after serving for a total of 30 years with the State Corporation Commission’s (Commission) Bureau of Insurance (Bureau). “It has been a great privilege to work in the Bureau of Insurance,” Cunningham said. “I am so proud of all the many accomplishments of the Bureau’s great staff. I will always have great fondness and respect for everyone at the Bureau and the Commission.” Cunningham originally joined the Bureau of Insurance in 1981 as a policy forms reviewer in the Life and Health Division. After a brief period during which she worked for an insurance company as a compliance officer, she returned to the Bureau in 1993 and served as a senior examiner, supervisor of the Forms and Rates Section, chief examiner and deputy commissioner within the Bureau’s Life and Health Division before being named commissioner of insurance. Cunningham was a key player in state-level initiatives related to health care reform. She served as a member of the Virginia Health Reform Initiative Advisory August 2017

Continued From Page 23

THE CRUELTY OF THE MINIMUM WAGE

Council and continues to serve on the Health Insurance Reform Commission, providing technical support to the committees’ efforts to review health insurance matters and identify prospective solutions to address the health insurance needs of Virginia’s citizens and cover its higher labor costs, Burger government. King must charge higher prices for its meals, whereas McDonald's gets Cunningham previously served by while charging lower prices. as treasurer and vice chair, and Which restaurant do you think currently serves as chair of the people will patronize? I'm guessing Interstate Insurance Product McDonald's. What customers want Regulation Commission, a multi- is an important part of a company's state public entity that serves as decision-making. a central filing point for a number of insurance products, including But there are other actors to whom life insurance, annuities, disability companies are beholden. They income and long-term care are the companies' investors, who insurance. She is a former vice are looking for returns on their chair of the Producer Licensing investments. If one company Task Force and a former member responds appropriately to higher of the Government Relations labor costs, it will produce a higher Leadership Council of the investor return than one that does National Association of Insurance not. That means "buy" signals Commissioners. for the stock of a company that responds properly and "sell" signals In addition, she served for three for the stock of one that does not, years as a member of the Federal as well as possible outside takeover Advisory Committee on Insurance, attempts for the latter. advising the Federal Insurance Office within the United States The best way to help low-wage Treasury on insurance matters, workers earn higher wages is to and she currently serves on the make them more productive, and Board of Directors of the Virginia that's not accomplished simply by Health Initiative, an independent, saying they are more productive non-profit health information by mandating higher wages. organization in Virginia. Table of Contents

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

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INSURANCE & THE LAW Continued From Page 7

ZALMA disclosed their ownership interest in the St. Thomas property as required by the application for the policy and the policy itself. In support of its argument, Mount Vernon submitted an affidavit from Brian Hogan (“Hogan”), Vice President-Product Team Personal Lines for United States Liability Insurance Group (“USLI”). Mount Vernon is an underwriting company owned by USLI. Hogan averred that the Gabelhausens did not provide notice of the St. Thomas property until after the March 2014 accident. The policy premiums from January 2007 to January 2015 did not take into account the Gabelhausens’ ownership interest in the St. Thomas property. Hogan averred that had Mount Vernon known about the St. Thomas residence, “it would have charged [Mr.] Gabelhausen an additional premium of $34 to reflect the underwriting risk of owning” the St. Thomas property.

the St. Thomas property was a material omission if, had Mount Vernon known about the property, it would have issued the umbrella policy at a higher premium.

language to create an ambiguity where none exists.

The Court agreed with the Gabelhausens that the policy renewal forms do not define The Gabelhausens have failed to “residence.” However, the policy put forth any competing evidence itself clearly provides a definition that Mount Vernon would not for “Residence,” and this definition have charged a higher premium precludes the Gabelhausens’ for the umbrella policy had it secondary argument that a known about the St. Thomas reasonable consumer of insurance property. Hogan’s clearly testified would be confused by the that the addition of the St. Thomas term “residence.” A reasonable property would have warranted consumer of insurance who believes that three residences are listed under an umbrella An omission or policy would take note of the misrepresentation fact that only two residences are listed. It is just as unreasonable may be material if, had to expect coverage for three the truth been known, the homes when only two are clearly listed. reasonable and prudent

insurer would not have issued the policy or would have issued it at a higher premium.”

The court concluded that Mount Vernon is entitled to rescind the umbrella policy. ZALMA OPINION

Whenever an insured applies for and resulted in an increased insurance he or she is required by premium. the covenant of good faith and fair AMBIGUITY OF THE dealing to honestly respond to all TERM “RESIDENCE” inquiries asked by the insurer and The Gabelhausens also contend advise the insurer of material facts MATERIALITY AND GOOD FAITH that rescission of the umbrella so that it can adequately charge An omission or misrepresentation policy is precluded because the a premium appropriate to the may be material if, had the truth term residence is ambiguous. risks the insurer is asked to take. been known, the reasonable and However, if the language of the In this case, the failure to advise prudent insurer would not have policy is clear and explicit, a the insurer of a residence saved issued the policy or would have court may not rewrite it and must the insured $34 in premium and issued it at a higher premium. The enforce the policy as written. cost them up to $5 million in Gabelhausens’ failure to disclose Courts will not distort contractual coverage. August 2017

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TECHNOLOGY Continued From Page 5

KIM KOMANDO learn more about MBSA and download this free tool. 2. Update your browser plugins I’ve said it before, and I’ll say it again: Keep your browser updated. Only the latest, safest version will help protect you from infections and attacks. But an up-to-date browser is just the beginning. You need to make sure your browser plug-ins are up to date as well. Just like an old browser, an outdated plug-in leaves your browser and your computer vulnerable. Open up the browsers on your computer, even the ones that you don’t use, and go to Mozilla’s Plugin checker. It will show you every plug-in installed on the browser and whether it’s up to date. Even though it’s the same company that makes Firefox, the Plugin checker works for Internet Explorer, Chrome, and other browsers.

Windows and Mac have decent firewalls built in, and many thirdparty security programs include them.

just dust your hands and assume the files are gone. To confirm they’ve been deleted, fire up a file-recovery program like Recuva and see what it can even A firewall keeps hackers from find on your system. seeing your computer online when they’re searching for If it doesn’t find the files you victims. Even if they know where permanently deleted, you’re in your computer is, the firewall good shape. keeps them out. 5. Check your But they’re not perfect. A wrong Facebook settings port setting can send up a flare, Your computer isn’t the only revealing your computer or place you store information. giving hackers an opportunity Facebook is packed with to slip past. If you have a virus, personal data that a scammer it might have changed your would love to mine. settings without you even knowing. That’s why they invented the “View As” tool. It shows you A port test service like PortTest what your profile looks like to scans your firewall to make sure the public or specific people. If your computer is invisible. If it any of your information has the can see you, so can the hackers. wrong settings, you’ll be able to Click here to test your computer’s spot it immediately. firewall. 4. Permanently delete files Newsflash: Deleting your files doesn’t actually remove them. They can still hang around your hard drive for days or weeks. Anyone who knows what they’re doing can recover them.

Go to Facebook and open Settings >> Timeline and Tagging. Next, go to “Who can see my things on my Timeline” and click “View As.”

Consider this the “au naturel” setting of Facebook. You’ll see exactly what your profile looks If you want to remove any plug- That’s why it’s a good idea like to strangers. Click through ins or toolbars you find, follow to permanently delete any your Timeline, About, Photos, the instructions I provide here. sensitive files that you no longer Friends, and other sections, and need. Click here for step-by-step see whether vulnerable tidbits 3. Test your firewall instructions. have slipped through. One of the most fundamental security setups is a firewall. But even then, you don’t want to Remember, you can edit every 44

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TECHNOLOGY single thing in your profile. To Continued From Page 25 the right of each item, you’ll find an icon with an upside-down triangle. Click this to choose who can see the information. It’s a shortcut that will save you a lot of headaches down the line.

WORKERS’ COMP FRAUD

There are plenty more settings you can use to change your Facebook privacy. Click here for a full walk-through of Facebook’s privacy settings and how they work. How else can you keep your computer secure from trespassers? Be sure to listen or download my podcasts, or click here to find it on your local radio station. You can listen to the Kim Komando Show on your phone, tablet or computer. From buying advice to digital life issues, click here for my free podcasts.

paperwork they need to show them as an honest business. The GC then gets their labor for cheap. The uninsured sub can work without paying taxes or buying insurance, the fee charged by check cashing store is lower than doing business honestly. Also, allows the easy hiring of illegal immigrant employees who can only work for cash. The facilitator pockets a portion of the undeclared cash from the check cashing store, and when his shell corporation starts to come under scrutiny, he will simply start to use another shell.

Of course the victims are honest companies, the taxpayer who has to take care of the uninsured workers when they get injured, Learn about all the latest and the workers who cannot technology on the Kim Komando find a job for an honest firm. Show, the nation’s largest weekend radio talk show. Kim takes calls The State of Florida is working and dispenses advice on today’s to crack down on this scam, digital lifestyle, from smartphones but it is widespread and very and tablets to online privacy and popular. If you know of workers’ data hacks. For her daily tips, free compensation fraud, contact the newsletters and more, visit her state Bureau of Insurance Fraud website at Komando.com at: HERE

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