IN THIS ISSUE JUNE 2018 - VOL 14 ISSUE 6
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7 Steps To Crafting The Perfect Password by Kim Komando
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Conduct Criminal In Nature Excluded Period - Barry Zalma
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IBM Leads “Call For Code” To Use Cloud, Data, AI, Blockchain For Disaster Relief
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California Insurance Commissioner Jones Sore Loser In Dispute With Industry
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Washington Insurance Producer Pleads Guilty To Felony Theft Charge
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Tennessee DOI Takes Unusual Step Of Warning Citizens About 2 Former Agents
Allianz To Cease Insuring Coal Operations • Surprising New Longevity Marker
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FTC Sues To Stop 2 Operations Responsible For Billions of Robocalls
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UFO’s & Trucking Risks - Another Strange Question To The Advisor
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Family Arson Ring Roasted For $4 Million Insurance Fraud Case
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3 Key Methods To Immediately Shorten Your Sales Cycle
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Lava Continues To Swallow Home In Hawaii
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Unbelievable Vintage Ads - Another In Our Series Of Ads From The 30s, 40s, 50s & 60s.
Vitamins & Supplements Worthless? New Study With Surprising Results
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California Agent Arrested For Fraud & ID Theft In Scam
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NASA, Uber To Explore Safety, Efficiency Of Future Urban Airspace
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54% of Fatally Injured Drivers Tested Positive For Marijuana Or Opioids
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Table of Contents
JUNE 2018
TECHNOLOGY
IT’S NATIONAL PASSWORD DAY! 7 STEPS FOR CRAFTING THE PERFECT PASSWORD
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Really Cool Tech Info - by Kim Komando gospel for years. But in a recent interview with The Wall Street Journal, he admitted that this wasn’t nearly as effective as he’d thought.
our password can ruin your life. I know that sounds dramatic, but it’s true. If someone figures out the password to your email, you’re in trouble. Social media? Even worse.
Thanks to a new round of research, cybersecurity experts have changed their tune. Yes, you should still avoid guessable passwords like “p@ssword1” or “letmein.” But a strong password also can be logical, fluid and easy to remember.
Once hackers access your online bank account, they can wreck your finances, and you may feel the repercussions of that break-in for years. It seems not a week goes by that we don’t hear about another data breach.
1. Passwords should withstand 100 guesses
How do you know if the hackers have your info? Click here to find out whether your email has been hacked or stolen. Most of us have the wrong idea about passwords. We think they have to be convoluted messes, like F$%Th5l2K!&. This theory reigned for years—that passwords should be nonsensical and hard to remember. JUNE 2018
It started in 2003 with guidelines from the National Institute of Standards and Technology (NIST), which insisted on random combinations of numbers, letters, and symbols. The organization’s manager, Bill Burr, spread this Table of Contents
This is the most important part: No matter what your password is, it should withstand 100 guesses, which means it shouldn’t be tied to any public information about you or your family. See Kim Komando Pg 38
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CLAIMS & THE LAW
CONDUCT CRIMINAL IN NATURE EXCLUDED - PERIOD. Expert Analysis & Commentary by Barry Zalma, Esq., CFE
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Alford Plead Is Still a Guilty Plea
nsurance companies write policies to explain to the insured the risks they are willing to take and those they are not willing to take. When the policy excludes coverage for a serious loss court are invariably called upon to interpret the wording of the policy to provide coverages for risks that the insurer never intended to take.
Nationwide Insurance Company (“Nationwide”).
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BACKGROUND
In 2011 Jacob Eberle, who was twelve years old at the time, was playing in Bishop’s neighborhood with a group of friends. Bishop, who was in his In Eberle v. Nationwide Mutual fifties, was at his home. The boys Insurance Co., Court of Appeals had been playing a game where of Kentucky, — S.W.3d —-, 2016 they would ring the doorbells on WL 2609311 (MAY 6, 2016) the houses and then run away before Court of Appeals was called upon the occupants answered their to determine whether coverage doors. was available to Michael Bishop the under a homeowner’s Eberle was struck with shotgun insurance policy issued by pellets in his back, neck and right
arm while he was on the sidewalk in front of Bishop’s home. It is undisputed that the shotgun pellets were fired by Bishop while he was standing on his porch. It is unclear, however, whether Bishop actually intended to fire his gun at Eberle. Bishop was indicted on charges of assault in the first degree, wanton endangerment, and tampering with physical evidence. On July 26, 2012, Bishop pleaded guilty to class D felonies pursuant. Bishop’s plea agreement states: “Pursuant to North Carolina v. Alford, 400 U.S. 25 (1970), I wish to plead “GUILTY” in reliance on the attached ‘Commonwealth’s Offer on a Plea of Guilty.’ In so pleading, I do not admit guilt, but I believe the evidence against me strongly indicates guilt and my interests are best served by a guilty plea.”
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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JUNE 2018
The circuit court ultimately accepted Bishop’s plea and sentenced him to ten years’ imprisonment on the Alford plea.
interpreted and all questions expect to be covered under resolved in favor of the insured; homeowner’s insurance policies. 2) exceptions and exclusions are Kentucky’s Penal Code provided to be strictly construed so as to the most logical, reasonable, render the insurance effective; 3) and consistent definition of At the time of the incident, any doubt as to the terms of the the term “crime.” Kentucky Bishop held a homeowner’s policy should be resolved in favor Revised Statutes (“KRS”) insurance policy through Nation- of the insured; and, 4) because 500.080(2), defines a crime as “a wide. Bishop subsequently the policy is drafted in all details misdemeanor or a felony.” sought coverage for the June by the insurance company, it 2011 incident, under that must be held strictly accountable For the purposes of this appeal, homeowner’s insur-ance. for the language employed. Nationwide’s exclusion would Specifically the policy excluded apply to an “act or omission coverage for “bodily which is criminal in injury” when: “(a) nature” such that it Nationwide’s exclusion was caused intentionally constitutes a felony by or at the direction misdemeanor brilliantly broad by eliminating or of an insured, under Kentucky’s the need for conviction and simply including willful acts Penal Code. the result of which the excluding any conduct that was insured knows or ought Eberle argues that “criminal in nature”. There was no need to know will follow allowing the criminal from the insured’s act exclusion to apply to prove that Bishop was convicted conduct. (b) caused by to all misdemeanors for the exclusion to apply. In this case or resulting from an would unjustly it did not matter since Bishop was act or omission which deny insureds, like is criminal in nature convicted regardless of his use of the Bishop, coverage and committed by the because it would Alford plea. Jail was proper and he had insured.” exempt conduct no right to be protected by insurance most people do not ANALYSIS necessarily consider for his criminal conduct.” to be criminally An insurance policy is reprehensible. a contract. Generally speaking, two parties of equal Criminal Acts Exclusion Bishop was accused of and pled bargaining power are free guilty to wanton endangerment to contract to any terms and The exclusion provides bodily in the first degree, a Class D conditions they negotiate with injury is excluded from coverage felony. While Bishop has denied one another; with few exceptions, if it is “caused by or resulting that he intended to harm Eberle, courts will not endeavor to from an act or omission which is he admits that he intentionally rewrite such contracts for the criminal in nature and committed brandished his shotgun while in benefit of one party or the other. by the insured.” Eberle argues striking distance of Eberle and Kentucky has adopted “four that the term “criminal in nature” his companion. basic principles of insurance is ambiguous because it excludes policy.” They are as follows: 1) all unintentional and criminal See Zalma Page 36 exclusions are to be narrowly conduct reasonable persons JUNE 2018
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NEWS
IBM LEADS ‘CALL FOR CODE’ TO USE CLOUD, DATA, AI, BLOCKCHAIN FOR NATURAL DISASTER RELIEF $30 million, 5-year IBM investment unites developers to solve pressing social issues; benefits UN Human Rights Office, Red Cross in partnership with Linux Foundation and creator David Clark Cause
CEO Ginni Rometty called on the technology industry to help build a better future, committing IBM technology and $30 million USD over five years in the annual Call for Code Global Initiative. Its goal is to unite the world’s developers and tap into data and AI, blockchain, cloud and IoT technologies to address social challenges.
in preparedness, response and recovery efforts, and bringing attention to the most excluded and marginalized populations. “Technology can be a powerful force to advance human rights and build more equitable societies. Call for Code is an excellent opportunity to explore how technology can play a role in addressing the needs of the most vulnerable populations and those who are at risk of having their human rights violated in the context of a humanitarian crisis,” said Laurent Sauveur, head of external relations of the United Nations Human Rights Office.
“At IBM, we harness the power of technologies like AI, blockchain, IoT and cloud to address some ARIS, May 24, 2018 / of the biggest opportunities and PRNewswire/VIVA challenges in business,” said Bob T E C H N O L O G Y Lord, IBM chief digital officer. CONFERENCE -- IBM (NYSE: IBM) “Now, with Call for Code, we are and partners today launched the calling on all developers to join us Call for Code Global Initiative, the and use these same leading edge Call for Code also integrates largest and most ambitious effort technologies to help people, their the American Red Cross’ focus to bring startup, academic and communities and society.” on new ways to bring support enterprise developers together to disaster victims – especially to solve one of the most pressing Through Call for Code, IBM and important with 2017 ranked as societal issues of our time: David Clark Cause are joining one of the worst years on record preventing, responding to and forces with the United Nations for catastrophic events, including recovering from natural disasters. Human Rights Office and its fires, floods, earthquakes and human rights-based approach storms. During a keynote address at the to humanitarian action, which VivaTech Conference in Paris, focuses on securing the IBM Chairman, President and See IBM Leads Relief Page 12 participation of affected groups
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NEWS
JUNE 2018
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NEWS
CALIFORNIA INSURANCE COMMISIONER JONES SORE LOSER IN DISPUTE WITH INDUSTRY The Industry Killed SB 897 - A Bill That Would Have Raised Premiums To All Policyholders
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acremento - Up for vote in the California senate was SB 897 - a bill that would have required homeowners insurance carriers to offer at least 80% of total contents coverage after a total loss from a declared disaster without a detailed inventory. The bill was killed in the senate.
is profit over the needs of their policyholders who have been through hell,” said Insurance Commissioner Dave Jones. “This is about doing the right thing to help wildfire survivors begin the recovery process without putting them through more heartache and pain during one of the most difficult times in their lives.”
Far-left California I n s u r a n c e Politicians of Commissioner Davy Jones’s ilk can Jones who can usually be counted CA Insurance Comm Davy Jones usually be counted on to come down on to express a “they can afford against insurance companies it” position on any anti-industry without regard to the merits of legislation was not happy and the dispurte. Jones called the seems to have lost his cool as the industry’s argument forecasting rankor and rhetoric flew in a CA higher premiums should the bill DOI press release: pass, “sky-is-falling rhetoric.” “Insurers opposing SB 897 have shown their true colors in efforts to defeat this commonsense legislation—their priority 10
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The press release went on to say, “We have always known that we would have a massive fight on our hands due to Table of Contents
the deep pockets of these multibillion dollar corporations, and I have always said I would never compromise if it meant serving up a bad deal to the thousands who are struggling to rebuild their homes and lives,” said Senator Mike McGuire. “We took numerous reasonable amendments leading into these latest discussions, but we had to draw the line when insurance corporations insisted on amendments that would have watered down the bill close to useless.”
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NEWS Continued From Page 8
IBM LEADS IN HIGH TECH DISASTER RELIEF
“Responding to large-scale national and international disasters is a team effort, and we are excited to leverage skills and insights from the tech industry to address global challenges,” said Brad Kieserman, vice president of Disaster Cycle Services at the American Red Cross. “Partnerships and technology like this allow for smarter and faster response efforts, which are critical to help those in need more quickly and efficiently.” Call for Code invites developers to create new applications to help communities and people better prepare for natural disasters. For example, developers may create an app that uses weather data and supply chain information to alert pharmacies to increase supplies of medicine, bottled water and other items based on predicted weather-related disruption. Or it could be an app that predicts when and where the disaster will be most severe, so emergency crews can be dispatched ahead of time in proper numbers to treat those in need. 12
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IBM’s $30 million investment over five years will fund access to developer tools, technologies, free code and training with experts. The winning team will receive a financial prize, yet, perhaps more rewarding, they will have access to long-term support to help move their idea from prototype to realworld application. This includes ongoing developer support through IBM’s partnership with the Linux Foundation. “Winning submissions need a strong ecosystem to ensure that they will flourish and continue to be deployed across the globe long after the competition ends. That’s where The Linux Foundation is proud to step in and help equip open-source projects with the tools they need to accelerate adoption,” said Jim Zemlin, executive director of The Linux Foundation.
a renowned leader in causerelated initiatives. David Clark’s work includes iconic people and humanitarian organizations, such as President Nelson Mandela, Muhammad Ali, Prince, the United Nations, Amnesty International, and The Anne Frank Center. “The Call for Code Global Initiative was created to realize the full potential of developers, as they play a critical role in driving innovation that can shape and save lives. When these change agents are inspired to use their unique skills to help people in need, they do,” said David Clark, founder, David Clark Cause. “There could not be a more significant founding partner for this important global initiative than IBM, and I’m both privileged and honored they have answered the call.”
GRAMMY-nominated singer and In addition to development human rights advocate Andra support, the winning team can Day, whose 2015 global smash hit join one of IBM’s Corporate Service song “Rise Up” quickly became the Corps (CSC) teams to apply their voice for the voiceless, is leading a idea to a community in need. IBM celebrity coalition supporting the CSC teams are multi-disciplinary Call for Code Global Initiative. IBM experts who spend four to six weeks in underserved “I admire the mission of Call for communities around the world to Code, and how it aims to create apply technology to local issues technology based solutions to and opportunities. help people in need,” said Day, whose causes align with the Call for Code Global Initiative invaluable work of United Nations Human Rights and the American IBM is the founding member of Red Cross, as the initial Call for the Call for Code Global Initiative, Code addresses natural disaster which was created by David Clark, preparedness and relief. Table of Contents
JUNE 2018
NEWS
JUNE 2018
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NEWS
WASHINGTON INSURANCE PRODUCER PLEADS GUILTY TO FELONY THEFT CHARGE Gingerich was fired from employment with American Family Insurance after an audit revealed that he misappropriated some customers’ premium payments
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LYMPIA, Wash. – Former insurance producer Matthew Gingerich, 37, of Centralia, pleaded guilty to first-degree theft in Lewis County Superior Court on April 18. Gingerich misappropriated more than $30,000 in consumers’ premium payments. He will serve 90 days of electronic h o m e monitoring and was ordered to pay Matthew Gingerich, 37 more than $29,000 in restitution and $800 in court fees.
payments and concealed them by placing holds on the accounts so the customers would not receive notices that their policies were canceled for nonpayment. American Family was able to correct the policies of all but one affected consumer, whom they could not identify.
the state Attorney General’s Office and local prosecutors on criminal cases. Insurance fraud costs the average family $400 to $700 per year in increased premiums. Insurance companies are required by law to report fraud to the Commissioner. Consumers can report suspected insurance fraud on the Insurance Commissioner’s Kreidler’s CIU investigates website. insurance fraud and works with
The charges were filed after an investigation by Insurance Commissioner Mike Kreidler’s Criminal Investigations Unit (CIU). Kreidler revoked Gingerich’s insurance producer license in February 2016. Gingerich was fired from employment with American Family Insurance after an audit revealed that he misappropriated some customers’ premium 14
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Mr. Zalma recently published on Amazon.com with links at the Zalma Books site with the following volumes: Table of Contents
JUNE 2018
NEWS
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TENNESSEE DOI TAKES UNUSUAL STEP OF WARNING CITIZENS AGAINST 2 FORMER AGENTS
ASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) is warning consumers about Tennessee residents Johnny Ray Jackson and Richard Wayne Davis, Jr., who have a history of using fraudulent practices to sell insurance in order to scam unsuspecting consumers. The Department recently issued Cease and Desist orders against Jackson on April 24, 2018 and Davis on April 25, 2018. The Orders require that Jackson, who has employed the aliases of “Johnny Tucker” and “John Jay Tucker,” and Mr. Davis cease and desist from any insurance-related activity in the State of Tennessee, including but not limited to, the solicitation, sale, or negotiation of insurance. In earlier separate actions, TDCI revoked the licenses of both Jackson and Davis. “As the regulator for Tennessee’s insurance providers, I am urging consumers to not engage with either Mr. Jackson or Mr. Davis when purchasing insurance,” said TDCI Commissioner Julie Mix McPeak. “Both men have a proven history of noncompliance with Tennessee’s insurance laws, and neither former agent is licensed JUNE 2018
to sell insurance in this state. Remember: Impersonating a licensed professional is a felony in Tennessee.”
by altering checks in the course of insurance business. In October 2016, Jackson was fined $44,400 in a case that he is currently contesting.
In an effort to better inform consumers, the Department is Richard Wayne Davis, Jr. sharing the following disciplinary (Winchester, TN): Davis’ license was history of both former licensees: summarily suspended on June 5, 2015. Despite the suspension Johnny Ray Jackson (Hermitage, of his license, Davis wrote 21 life TN): Jackson’s license was revoked insurance applications between on October 26, 1999, for wrongfully June 22, 2015 and August 20, 2015. altering dates on his clients’ As a result of these actions, his policies, failing to timely and license was revoked on November properly remit his clients’ premium 18, 2015, and pursuant to the payments to insurance companies, April 25, 2018 order, Davis was and failing to timely reimburse assessed a civil penalty of $7,500. his clients’ premiums. Despite the Additionally, he pleaded guilty to revocation of his license, in 2013, seven counts of impersonating Mr. Jackson established and began a licensed professional and is to operate an insurance agency, currently incarcerated. In April Senior Security, LLC, with Forrest 2018, he began serving a 10-year J. McDole, now deceased. Jackson jail sentence in the Franklin County also has known associations with Jail (Nine years on probation with Southern Alliance of Tennessee, 11 months and 29 days to serve). LLC and Senior Health and Wealth Management, LLC. Through Senior TDCI Commissioner Julie Mix Security, Jackson has continued McPeak said: “We have sought engage in the illegal sale of and will continue to seek any and insurance without a producer’s all available remedies against license in Tennessee as recently as Mr. Jackson and Mr. Davis in the late 2017. Additionally, Jackson name of consumer protection. We engaged in insurance fraud by encourage any Tennessean that soliciting and selling an insurance has conducted insurance business product under false pretenses through Mr. Jackson or Mr. Davis to and forgery and misappropriation contact our offices. Table of Contents
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THE INSIDE TRACK - BREAKING NEWS Allianz To Cease Insuring Coal Operations
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n what it has called a “significant expansion of its climate strategy,” the German insurance giant Allianz announced it will support a “low-carbon economy” over the coming years by phasing out investments and insurance coverage in coal-related industries. Climate change often gives cover to companies and regulators that want to advance a progressive political
predictor of longer life and future health than other measurements doctors currently use. “Grip strength is easy to measure and may be useful in helping to predict future disease,” said senior study author Stuart Gray of the University of Glasgow. According
to the senior study author, who spoke with Reuters via email, “Grip strength showed a stronger association with cardiovascular disease than blood pressure and physical activity, which was a bit of a surprise. It highlights nicely just how strong the association is.” The
agenda.
Surprising New Longevity Marker
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cientists never stop searching for new clues into human longevity and have recently announced a new one: grip strength. Grip strength seems to be a better 16
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JUNE 2018
THE INSIDE TRACK - BREAKING NEWS finding came from a study of exploitation to law including more than 500,000 enforcement and other participants in the UK aged appropriate governmental agencies, thereby helping to 40-69 years of age. prevent older investors from
Bill To Protect Seniors From Fraud Passes
Image Credit: Creative Commons
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he bill containing provisions of the Senior Safe Act (S. 223/H.R. 3758), which protects older investors from exploitation passed the US House in May and had already passed in the Senate. Insurance advocacy groups have come out and encouraged President Donald Trump to quickly sign the bill. According to Lee Covington, senior vice-president of The Insured Retirement Institute (IRI), “The Senior Safe Act provides financial professionals with the tools necessary to combat the financial exploitation of our most vulnerable Americans. Through increased education and awareness of the signs and symptoms of exploitation, the Senior Safe Act will empower and encourage financial professionals to report suspected cases
JUNE 2018
becoming victims.”
Rape Lawsuit Wins $ 1 Billion
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hen she was 14, Hope Cheston was sitting outside her apartment building at a picnic table with her boyfriend when she was approached by an armed security guard, then 22-yearold Brandon L. Zachary, who told the boyfriend not to move as he raped Hope. Hope ultimately sued the security company, Crime Prevention A g e n c y , dissolved in 2016, and was awarded a $1 billion verdict in May. It is anticipated the verdict will be appealed and may be reduced - and the security company may lack the assets to satisfy any judgement above their insurance coverage. Table of Contents
Next Insurance Going From MGA To Carrier
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n 2016 Next Insurance which opened as an online, digital insurance source for small to mediumsize businesses, has announced it has changed its position from an agency model to a carrier. The company is licensed in Delaware and has plans to be licensed in multiple states by the end of 2018. According to Guy Goldstein, co-founder and CEO in a conversation with Carrier Management, “Until now, we have been operating as an MGA, which was a step on our path toward becoming a carrier. As a carrier, we want to be able to take some of the risk of insurance upon ourselves and to be able to offer fully tailored products to entrepreneurs. This will allow us to better control the holistic experience and to continue to innovate faster.” www/underwritersinsider.com
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NEWS
FTC SUES TO STOP TWO OPERATIONS RESPONSIBLE FOR MAKING BILLIONS OF ILLEGAL ROBOCALLS Technology companies and owner knowingly facilitated neighborspoofed robocalls
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he Federal Trade Commission has filed a complaint in federal district court seeking to stop two related operations and their principals who allegedly facilitated billions of illegal robocalls to consumers nationwide, pitching everything from auto warranties to home fight illegal robocalls,” said Bureau security systems and supposed of Consumer Protection Director Andrew Smith. “We will go after debt-relief services. not only robocallers, but also Illegal telemarketing conduced companies -- like these -- who using the TelWeb Dialing give robocallers the platform and PlatformThe FTC charged the tools to deceive the public and defendants with violating the violate the law.”
especially robocalls—in a short time.
For many years, Christiano had a business relationship with Aaron Michael Jones, a recidivist robocaller who has been named in FTC lawsuits brought in 2017 and 2018. Access to TelWeb for agency’s Telemarketing Sales Rule (TSR). Virtually all telemarketing According to the Commission, most, if not all, telemarketing calls robocalls to consumers are illegal James “Jamie” Christiano and the made using the platform flowed companies he controls operate through Jones and his business under the TSR. “TelWeb,” a computer-based partners -- including Andrew “This case shows that the FTC will telephone dialing platform that “Andy” Salisbury -- as resellers. keep using every tool it has to can be used to blast out a large volume of telephone calls— 18
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JUNE 2018
Redflags for the Teleweb Dialing P l a t f o r mTw o of Christiano’s companies are named in the complaint. NetDotSolutions, Inc. licensed software to Jones and his clients that allowed them to place autodialed robocalls. TeraMESH Networks, Inc. leased computer server rack space to Jones that enabled him to host, maintain, and update the TelWeb software. The FTC alleges that from June 2013 to May 2016, NetDotSolutions had only one dialing client—a shell company called Dial Soft Technologies, owned by Jones—which accessed the TelWeb system and resold it to other telemarketers. TelWeb allowed users to make billions of robocalls, including calls to phone numbers on the National Do Not Call (DNC) Registry and calls with fake, or “spoofed,” caller IDs. TelWeb also allowed telemarketers to place outbound calls in campaigns designed to leave messages in consumers’ voicemail boxes -- hanging up on people if they answered the phone. In addition to his role in Jones’s robocalling enterprise, Salisbury was the president and part owner of World Connection, a call JUNE 2018
illegal robocalls, 2) calls to number on the DNC Registry, 3) calls with spoofed caller IDs, and 4) abandoned calls, in which TelWeb hung up on consumers who answered.
center enterprise that received transferred calls from consumers who “pressed 1” in response to a robocall message. Those robocalls often were placed with the help of Justin Ramsey, a recidivist robocaller who has also been named in FTC lawsuits in 2017 and 2018. The FTC alleges that, through TelWeb, Jones’s operation bombarded consumers with more than one billion illegal robocalls annually. This includes hundreds of thousands of illegal calls that resulted in consumers being transferred to a World Connection call center. At least 64 million of these calls used a technique called “neighbor spoofing,” which fakes caller ID and makes it appear that calls are coming from a consumer’s local area.
Salisbury and three companies related to World Connection are charged with initiating or causing the initiation of: 1) calls with unlawful prerecorded messages, 2) calls to numbers on the DNC Registry, and 3) making calls with spoofed caller IDs. They are also charged with assisting and facilitating TSR violations by others. The FTC is seeking a court order stopping the defendants’ illegal conduct, along with appropriate civil penalties. The Commission vote authorizing the staff to file the complaint was 2-0. The complaint was filed in the U.S. District Court for the Central District of California on May 31, 2018, after being referred back to the FTC by the U.S. Department of Justice.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to Based on this alleged conduct, the Commission that a proceeding the FTC charged Christiano, is in the public interest. The case NetDotSolutions, and TeraMESH will be decided by the court. with assisting and facilitating: 1) Table of Contents
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NEWS
FAMILY ARSON RING ROASTED FOR $4 MILLION INSURANCE FRAUD CASE “Excellent investigative work by our detectives and insurance investigators led to unraveling this crime. We are committed to working with our law enforcement partners to bring ANTA CLARA, Calif. — Tyler justice to those who defraud Chen, 46, and his wife, Kim, Californians.” 45, were arraigned in court yesterday in the Santa Clara County Superior Court following their arrest on multiple felony counts of insurance fraud and arson for their role in allegedly setting fires in a fraud scheme scamming five insurance companies out of $4 million. Four co-conspirators were also arrested and charged in the alleged fraud scheme.
Ringleaders arraigned yesterday facing over 30 felony counts of fraud and arson
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occurred between December 2011 to September 2013. The tipster gave the exact address of where the next house fire would occur. The department launched a joint investigation with the San Jose Fire Department and the Santa Clara and San Joaquin County District Attorney’s offices, which revealed two fires occurred at a business owned by the Chens and shortly after, their homes in San Jose and Stockton met a similar fate.
The residential fires were all reported to have started when chicken being fried was left unattended on the stove. The In January 2014, the department Chens allegedly orchestrated “The complicated scheme these received a tip through its the entire situation to make it suspects allegedly devised to consumer hotline about a appear as though the fire was defraud insurers is deplorable,” connection in a string of home, the result of a careless cooking said Commissioner Jones. business and warehouse fires that incident and then planted many 20
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JUNE 2018
of the same smoke damaged items, which they had already claimed from other alleged fires in homes, warehouses and businesses. Tyler Chen and his business associate, Ha Nguyen, 63, of Stockton, rented a number of warehouses for an import and export business they owned. According to investigators, the business partners used smokedamaged belongings to also claim damage from fires in their warehouse or neighboring units. The investigation also found that goods claimed to be damaged in the fire had been JUNE 2018
purchased, but had not yet been Jose, were arrested as well for received, which led detectives to their involvement. arrest Nguyen for his role in the fraud scheme. The Santa Clara and San Joaquin County District Attorney’s The Chens recruited a family offices are prosecuting this case. member, a co-worker, and The Chens, Trang Huynh, Suong another local business owner (Sandy) Ngo, and Duyen Pham to take part in the scheme even are scheduled to return to court using the same smoke-damaged on July 23, 2018. Ha Nguyen will goods identified in the other be arraigned June 5, 2018. fires. The damages claimed in The Santa Clara and San Joaquin all of the fires total $5,653,665 County District Attorney’s and $4,009,008 was paid out by offices are prosecuting this case. five victim insurance companies. The Chens, Trang Huynh, Suong These co-conspirators, Trang (Sandy) Ngo, and Duyen Pham Huynh, 34, of Stockton, Suong are scheduled to return to court (Sandy) Ngo, 49, of Santa Clara, on July 23, 2018. Ha Nguyen will and Duyen Pham, 49, of San be arraigned June 5, 2018. Table of Contents
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LAVA CONTINUES TO SWALLOW UP HOMES IN HAWAII
UNBELIEVABLE VINTAGE ADS
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othing illustrates the changes in our national culture better than vintage ads from the Mad Men era or earlier - many of which would be considered over-the-top sexist, politically incorrect or just plain unbelievable today.
SCIENTISTS FEAR HAWAII VOLCANO MAY BE NEARING A HUGE ERUPTION
“7-Up is so pure, so wholesome, you can even give it to babies and feel good about it, “ reads the ad. “Add 7-Up to the milk in equal parts, pouring the 7-Up gently into the milk. It’s a whilesome combination - and it works! “ (works to rot your kid’s teeth)
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JUNE 2018
NEWS
54% OF FATALLY-INJURED DRIVERS TESTED POSITIVE FOR MARIJUANA OR OPIOIDS
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ASHINGTON, DC – A new report from the Governors Highway Safety Association (GHSA) finds that in 2016, 44% of fatally-injured drivers with known results tested positive for drugs, up from 28% just 10 years prior. More than half of these drivers had marijuana, opioids, or a combination of the two in their system. Drug-Impaired Driving: Marijuana and Opioids Raise Critical Issues for States presents new research to examine the impact of marijuana and opioids on driving ability and provides recommendations on how best to address these emerging challenges. Funded by the Foundation for Advancing Alcohol Responsibility (Responsibility.org), the report found that among drugpositive fatally-injured drivers in 2016, 38% tested positive for some form of marijuana, 16% tested positive for opioids, and 4% tested positive for both marijuana and opioids. While alcohol-impaired driving remains a significant threat to traffic safety, presence of alcohol in fatallyinjured drivers is slightly lower than 24
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it was a decade ago, decreasing from 41% in 2006 to 38% in 2016. Some of the strategies that have been used to address alcoholimpaired driving can also be employed to deter drug-impaired driving, yet drug impairment presents several unique challenges.
explained, “Drugs can impair, and drug-impaired drivers can crash. But it’s impossible to understand the full scope of the drugged driving problem because many drivers who are arrested or involved in crashes, even those who are killed, are not tested for drugs. Drivers who are drugpositive may not necessarily be impaired.”
A d d i n g to these concerns is the frequency of poly-drug use, or the use of multiple potentiallyimpairing substances For example, there is no nationally- simultaneously. In 2016, 51% of accepted method for testing drug-positive fatally-injured drivers driver drug impairment; there were found positive for two or more are an unwieldy number of drugs drugs. Alcohol is often in the mix as to test for; and different drugs well: 49% of drivers killed in crashes have different impairing effects in who tested positive for alcohol in different drivers. 2016 also tested positive for drugs. Report author Dr. Jim Hedlund, “Alcohol-impaired driving and drugformer senior NHTSA official and impaired driving can no longer be nationally-recognized issue expert, treated as separate issues,” said Table of Contents
JUNE 2018
expand their impaired driving campaigns to include marijuana and opioids along with alcohol to show drivers that impairment is impairment, regardless of substance.” Ralph Blackman, President and • CEO of Responsibility.org. “Drunk driving, which was involved in 28% of 2016 traffic fatalities, remains a critical issue; however, to curb impaired driving, we have to think about the combination • of substances drivers are often putting into their systems at the same time.”
Closely following the development and testing of new impairment assessment tools, such as oral fluid devices and marijuana breath test instruments; Supporting the drugimpaired driving prosecution process through increased law enforcement training, authorizing electronic search warrants for drug tests, The task of detecting drugand educating prosecutors impaired driving primarily falls and judges on the unique to law enforcement. Over the challenges of drugged past three years, GHSA and driving cases; Responsibility.org have partnered • Partnering across the public to provide training for nearly health, pharmaceutical, one thousand officers to better and marijuana industries recognize and deter drugged to educate patients and drivers. These training tools – customers about the Advanced Roadside Impaired potential impairing effects of Driving Enforcement (ARIDE) and these drugs; and Drug Evaluation and Classification (DEC) – teach law enforcement • Using public awareness campaigns to change driver the signs and symptoms of attitudes about driving under impairment by different categories the influence of marijuana of drugs. An additional 500 officers and opioids. are expected to be trained through these grants within the next year. “Too many people operate under The report also identifies the false belief that marijuana or opportunities for GHSA’s member opioids don’t impair their ability State Highway Safety Offices to drive, or even that these (SHSOs) and other traffic safety drugs make them safer drivers,” stakeholders to reduce marijuana- noted GHSA Executive Director Adkins. “Busting and opioid-impaired driving. These Jonathan this myth requires states to recommendations include: JUNE 2018
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The full report and accompanying infographics are available at ghsa.org/resources/DUID18. A webinar detailing the report’s findings and recommendations will be held on June 5 at 2:00 p.m. EDT. Register at bit.ly/GHSADUIDwebinar. Dr. Hedlund will also present the report at the GHSA 2018 Annual Meeting, occurring August 25-29 in Atlanta, GA. About GHSA The Governors Highway Safety Association (GHSA) is a nonprofit association representing the highway safety offices of states, territories, the District of Columbia and Puerto Rico. GHSA provides leadership and representation for the states and territories to improve traffic safety, influence national policy, enhance program management and promote best practices. Its members are appointed by their Governors to administer federal and state highway safety funds and implement state highway safety plans. Contact GHSA at 202-789-0942 or visit www.ghsa. org. Find us on Facebook at www. facebook.com/GHSAhq or follow us on Twitter @GHSAHQ. www/underwritersinsider.com
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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.
UFOs And Trucking Risks...
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’m at my desk supposed to be quoting a trucking risk but a story just came on the Internet about a Navy pilot spotting a UFO. I’m just wondering, after all the years and millions of dollars spend on searching for E.T., (SETI) nothing has been found. Just thought I’d give THE ADVISOR a shot at explaining it... B.K. San Antonio, TX
ADVISOR
evolve. I’d like to address the common misperception that intelligence and technology naturally follow every instance of life and the assumption there is a trend line of greater and greater intelligence in evolving organisms. There is no evidence of that. Life, especially microbial life, is probably very common throughout the universe. Life sufficiently intelligent to develop and employ advanced technology may be excruciatingly rare.
Consider our Earth, teeming with life where It is estimated there are 8.7 million species of life on this planet. Only
one of those species is even remotely capable of sending or receiving a radio or laser signal across the cosmos. Even among humans, it is only the smartest among us that have
Interesting question, B.K. and thanks for trying to tie it into insurance to fit this column. It seems that all of our efforts are based on the presumption that 1) there is lots of life in the universe, and 2) given sufficient time, intelligence will always 26
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By Yasir999 [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)], from Wikimedia Commons
conceived and developed may explain the lack of positive such technolgy. Natural results. selection does not have an agenda of producing smarter and smarter organisms, but rather organisms with traits that are more likely to result in reproduction. It is simply not a “given” that organisms become more intelligent as they evolve. Crocodiles have been around for about 200 million years. Are today’s crocs any smarter than a croc from 100 million years ago? If our search for E.T. is based in part or in whole on the assumption that all life eventually “grows up” to be intelligent and technical, it JUNE 2018
The search for exoplanets rather than signs of technology may be more productive in the search for life, where Table of Contents
researchers scan the cosmos for planets in distant sun systems that may be suitable for life. They look for Earth-like rocky planets in the “Goldilocks Zone” - just the right distance from just the right star to support liquid water. Advanced instrumentation can even detect the components of an atmosphere on these distant planets as well as biproducts of life, such as methane. This search may yield evidence of life sooner that we think - but technology? Don’t think so... We humans may be a fluke - and the universe far more lonely than what we would like to imagine. www/underwritersinsider.com
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Experienced Commercial 220 CSR Cape Coral/Fort Myers FL Established commercial lines agency seeking: self motivated, detail oriented professional. The successful candidate should have a minimum of 3 years experience in commercial lines, excellent computer skills, dependable, ability to follow up and follow through and have an unwavering commitment to the service your clients. Professional designations such as CIC, CPCU, CRM or ARM a plus. In return, you will have the opportunity to join a committed group of individuals in a growing, privately owned multi lines agency.Industry leading benefits and compensation package working with a group of experienced professionals low turnover environment. All Information and replies will be kept strictly confidential fairway34@hotmail.com 18-1
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Job Opportunity : Agents and Customer Service Reps What You Will Need: • Property/Casualty State Insurance License* • Life/Health State Insurance License* • A valid driver’s license What We Require: • Strong track record of professional success, ideally in external sales. • A strong natural market and presence in the local community. • A fearless attitude around prospecting new customers and cold calling. • A desire to succeed and build a network of clients. Note: Insurance licenses are not required to apply, but your ability to obtain the licenses is required when a hiring decision is made. Contact: sabrina.curry@best1300.com 18-5
Agent/CSR wanted, Ft. Lauderdale Area
Independent P&C agency is seeking to employ a licensed agent and/or csr, with experience in nonstandard and standard auto, homeowners, commercial auto and property insurance. Fulltime position M-F 9am - 6pm and every other Saturday 9am - 3pm. Must have a GREAT attitude and know how to be a team player. Email resume to Marlinsii@aol.com. 17-11
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Inside P&C Insurance Saleperson-NJ 1-3 years experience needed for a P&C Licensed saleperson. Leads, incentives and $40,000 base salary & benefits all provided in a convenient Parsippany modern location. jimb@mgainc.net 17-11
440 or 220 Needed in Tampa
Needed Agent or Customer service rep, must have knowledge of personal lines and have a great personality for established Family owned agency. Send resume. idcccorp@msn.com 17-10
Experience CSR/ agents wanted! Palm Beach/Ft. Laud Access Insurance underwriter, LLC has two positions available, great pay commensurate with experience along with outstanding benefits! Work with one of the largest and fastest growing agencies in Florida! Call or email Phil Wardell, pwardell@accessaip.com or 954-565-4666 ext. 252 pwardell@accessaip.com 18-06 JUNE 2018
Looking to Buy Small To Medium Sized P&C Agency in Palm Beach County. Contact: morogers@aol.com
18-3
Looking for Agents working in the Business Marketplace !
Add Business Consulting to your core insurance practice. Open new doors to Business & Professional Owner’s. You do not need to change any contracts for this opportunity. Go to: http//www.strydeadvisors. com/information/stryde.cfm? id=136713&page=lifeandfinanc ial This is a nationwide opportunity. More information needed contact me at: nwinsuranceagencies@gmail.comnwinsuranceagencies@gmail. com 18-06
SUBMIT YOUR FREE CLASSIFIED AD HERE
Experience Commercial CSR Wanted Duluth GA We are a mid sized agency, looking to add to our family environment insurance agency. We are not related but have a great time together. Voted Best in Gwinnett for 7 yrs in a row. Best in Duluth 2 yrs. Must be able to handle a large volume of direct bill accounts. Multicarrier experience and Hawksoft Agency use is a plus. Bilingual is also good but not a requirement.
larrytalbert@talbertservices.com 17-11
Looking to buy a P&C agency in PB county. Please call 561-584-0732
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 17-4
SUBMIT YOUR FREE CLASSIFIED AD HERE
Efax: (561) 829-2055
17-3
Wholesale Broker Professional Liability Sarasota FL Our client is a national MGA with a wholesale brokerage division and is seeking to hire an experienced Professional Liability (all lines considered) Broker to join their team. Relocation to Sarasota, FL. is required. Excellent commission options for an experience Wholesale Broker. Call: Lloyd Kushner 800-797-1412 yoursearchfirm.com lloyd@yoursearchfirm.com
220-440 Agent for Port St. Lucie Agency (PT-FT ?) Please fax your information to: (772)879-1002 or e-mail to: amerinsur@aol.com Thank You... amerinsur@aol.com 17-11
18-4 JUNE 2018
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ANALYSIS
3 KEY METHODS TO IMMEDIATELY SHORTEN YOUR SALES CYCLE Consumers are increasingly looking to their peers, rather than companies, “gurus,” and experts for advice on what to buy, eat, listen to, read and watch. by Brian Greenberg
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n a recent Gallup poll, sales professionals were ranked lower on honesty than Congress. This exemplifies why consumers are increasingly looking to their peers, rather than companies, “gurus,” and experts for advice on what to buy, eat, listen to, read and watch. Amazon, for example, can attribute much of their success to mission-critical consumer reviews—raw peerto-peer interaction that carries an enormous amount of weight
in the hearts and minds of wary out annually, there is a ton of consumers. information to sort through to the point of information overload. As more people participate This as online entrepreneurs and contribute to social media, and business owners face a consumers are getting savvier tremendous number of obstacles by the day. The companies that when it comes to marketing their thrive in this extreme vetting Internet-based companies. I know environment are the ones who because I’ve been through them boast salesmen who don’t all and, in working through these actually sell! adversities, I have developed a precise methodology to achieve Over two million success and long-term online marketing marketing books are published success. each year, and most of them are fluffy and useless. When As examples, here are three added to the thousands of methods you can use right now marketing articles that also come to shorten your sales process
B
rian J. Greenberg has founded companies in e-commerce, marketing, and financial services. He has generated over 50 million in revenue from his businesses, collected over 10,000 reviews and testimonials from customers, been named one of the most creative people in financial services, and has been called “The Salesman Who Doesn’t Sell,” which is the title of his new book. Download the audiobook version for free at https://www.truebluelifeinsurance.com/book
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JUNE 2018
and start to close sales without When sending the feedback actually selling: request email, include a link directly to the URL where the 1) Garner reviews on both customer can post a review. We your website and third party want to make it as easy as possible websites that you do not control for the customer. (Ex. Yelp, the BBB, and Google Business Pages) It is best to get feedback on your website first because it is feedback From my experience, people that you control and have the have an aversion to asking for option not to make public. If reviews from customers. It is the customer provides a 5-star an uncomfortable part of the review on your review system, conversation if not handled then email them again with the correctly. There is a right way and exact comment they posted, and a wrong way to do it. The most include links to 3rd party sites like critical key is timing. The best Yelp, the Better Business Bureau, time to ask for a review is after and Google Business. the service is complete and the customer is entirely satisfied and happy with the product or service. 2) Leverage your online reputation for building trust So how to do know when that is? with potential customers From my experience, customers appreciate the question and it and shows to them that you care about their happiness. After they have confirmed they are happy is the time to ask for a review. There is no need to be pushy about it. Plant the seed and let them know you will send them an email with a link to where they can post their feedback. It is as simple as saying, “is it alright if I send you a feedback email?” After the customer confirms, you have a commitment.
If you have garnered reviews on your website and third-party websites you are halfway there. It pains me to see companies with great reviews not make them visible on their sites. I think people consider it a form of bragging to display reviews. It is certainly not. From my testing, I have found that the last thing a customer does before making a purchase is a Google search for your company name followed by “reviews” or “complaints.” People want to verify that you run an honest business.
I have found that displaying links to third-party review sites on your website shortens the sales process. People do not need to spend time searching your company online or contacting references. Potential customers know that you value your reputation. By leveraging your online reputation, you have built trust and conveyed accountability. This is the cornerstone of becoming a salesman who doesn’t sell. 3) Delegate, systematize, and automate the sales process so you can shorten the sales process and sell while you sleep You have built up reviews and have them prominently displayed on your website. To keep the reviews coming in it is vital to make obtaining 5-star reviews a company-wide initiative that you can delegate. We have all our salespeople, and customer service representatives ask customers to leave feedback. We have found it helps to incentivize employees with bonuses tied to their reviews. Reviews are a big part of shortening the sales process, though there are other sticking points. Make your frequently
See Shorten Sales Cycle Page 41 JUNE 2018
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NOTABLE QUOTABLES IN THE NEWS WITH COMMENTARY
SAY WHAT?
savings of $79.5 million and is a good move that will help further reduce cost burdens on Florida businesses. The estimated $79.5 million is a significant savings for our Obama Infiltrated Trump Campaign? business community who support local economies, employ our neighbors, and give hereby demand, and will do back to our communities. We must continue so officially tomorrow, that the to do all we can to support and fuel Florida Department of Justice look into businesses, the backbone of our economy.” whether or not the FBI/DOJ infiltrated or surveilled the Trump Campaign for Political Florida CFO Jimmy Patronis in a statement Purposes - and if lauding the positive impact the reduction of any such demands comp cost will have on Florida business. or requests were made by people Vitamins & Supplements Worthless? within the Obama Administration!” e were surprised to find so few positive effects of the President Donald most common supplements that Trump responding people consume. Our review found that if to reports that the you want to use multivitamins, vitamin D, FBI had placed calcium or vitamin C, it does no harm – but an informant, there is no apparent advantage either. In the now identified as Cambridge professor absence of significant positive data – apart from folic acid’s potential Stefan Halper, 73, within the Trump reduction in the risk of campaign possibly at the direction stroke and heart disease of the Obama administration. The – it’s most beneficial to DOJ has opened an investigation rely on a healthy diet to at President Trump’s urging in what get your fill of vitamins seems to be unprecedented spying by and minerals. So far, no one political party against the other research on supplements during an election. has shown us anything better than healthy servings of less processed plant foods including vegetables, fruits and nuts.” Comp Drops In Florida
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M
y office estimates that the 1.8 Dr. David Jenkins, lead researcher, in a percent decrease could be a statement describing the results of a study led at St. Michael’s Hospital and the University of
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Roseann Image: Creative Commons Attribution-Share Alike 3.0 Jonathan Mauer
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Toronto that included A, B1, B2, B3 (niacin), The New York Times columnist Maureen Dowd B6, B9 (folic acid), C, D and E; and ?-carotene; quoting Ben Rhodes’ recollection of election calcium; iron; zinc; magnesium; and selenium. night. Interesting to this conservative: Rhodes really believes Hillary lost the election due to “racism and misogyny.” The racism charge Adios Roseanne makes little sense in reference to Hillary, and I t had to happen. And I am never once heard a conservative say they would going to tell you the truth, she not vote for a woman for president. In fact, wanted it to happen, if you saw many conservatives were wildly enthusiastic how her tweets escalated this weekend. If about candidate Carly Fiorina. The so-called it hadn’t happened yesterday, this season Republican “war on women” has been entirely would have been so awful fabricated by Hillary Clinton and other leftists for everyone every day purely out of a classic progressive predilection because she would have for identity politics and class warfare.
I
felt like she was [being] taken advantage [of ], just like when I left the show.”
Tom Arnold, ex-husband of Roseanne Barr, attempting to explain the cause of Roseanne’s tweet where she made a comparison between the offspring of the Muslim Brotherhood and Planet of The Apes and Valerie Jarrett, the former senior advisor to President Obama. As a result of the tweet, ABC felt compelled to cancel the popular sitcom Roseanne in spite of repeated apologies by the comedienne.
Shoulda Seen It Coming...
I
couldn’t shake the feeling that I should have seen it coming. Because when you distilled it, stripped out the racism and misogyny, we’d run against Hillary eight years ago with the same message Trump had used: She’s part of a corrupt establishment that can’t be trusted to change.”
JUNE 2018
Socialist Paradise Collapsing
F
orty-two percent of Venezuelans said they had been robbed in the last 12 months — higher than at any other point since the survey started in Venezuela in 2006. In addition, 23 percent said they had been assaulted in the last year, also a record high for the country. Venezuela’s crime has been soaring for more than a decade, amid the breakdown in institutions and rule of law. While the United Nations and others believe the country is among the most dangerous in the world, the Venezuelan office that used to provide regular homicide data was shut down in 2003.” Jim Wyss, columnist for the Miami Herald in a June column. Venezuelans, when polled by Gallup, perceive their country as the most dangerous place in the world - and with good reason as the economy under socialist President Maduro continues to melt down putting incredible pressure on the population to maintain even their basic survival.
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BACK ISSUES
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BACK ISSUES
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CLAIMS & THE LAW Continued From Page 7
ZALMA While standing on his porch, Bishop brandished a shotgun he knew or should have known to be loaded and pointed it in the direction of two young, unarmed boys located on the sidewalk. Such conduct is unquestionably unlawful and felonious. Intentionally pointing a gun at an unarmed child is the type of conduct every citizen should know is wanton and criminal. Bishop could not reasonably expect such core criminal conduct to fall outside of Nationwide’s criminal acts exclusion. Alford Plea Next, we must determine whether the circuit court erroneously relied on Bishop’s Alford plea in granting summary judgment. On appeal, Eberle argues that the circuit court erred in elevating his Alford plea to the position of a regular criminal plea for the purposes of collateral estoppel. Nationwide chose to make an actual conviction, or lack thereof, of no consequence by the wording of the exclusion. The policy explicitly states that the criminal acts exclusion applies “regardless of whether the insured is actually charged with, or convicted of a 36
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crime.” Nationwide, by its own terms, has rendered the actual fact of a prior conviction a nullity. Under the policy, the focus is on whether the conduct causing the injury for which recovery is being sought under the policy, is criminal in nature.
Nationwide to prove that Bishop committed the crimes he pleaded guilty to in the criminal case. The reasons for Bishop’s guilty plea cannot undermine or erase the fact of his conviction.
An Alford plea is merely a type of guilty plea in which an individual accused of a crime may voluntarily, knowingly, and understandingly consent to the imposition of a prison sentence even if he is unwilling or unable to admit his participation in the acts constituting the crime. Most important to the court’s analysis, Alford cautions “that pleas coupled with claims of innocence should not be accepted unless there is a factual basis for the plea.”
Nationwide’s exclusion was brilliantly broad by eliminating the need for conviction and simply excluding any conduct that was “criminal in nature”. There was no need to prove that Bishop was convicted for the exclusion to apply. In this case it did not matter since Bishop was convicted regardless of his use of the Alford plea. Jail was proper and he had no right to be protected by insurance for his criminal conduct.
Although Bishop’s plea is labeled as an Alford plea, the fact remains that it resulted in his conviction. The entry of a guilty plea under the Alford doctrine carries the same consequences as a standard plea of guilty. In pleading guilty, Bishop acknowledged that the evidence against him was sufficient to support the charges to which he pled guilty. The trial court reviewed that evidence and agreed that it was sufficient to establish Bishop’s guilt. Bishop’s Alford plea was admissible in the civil proceeding brought by Table of Contents
ZALMA OPINION
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TECHNOLOGY You have never mentioned these facts online, and only your Mom knows such trivia about you. You could compose a passphrase like “ilikefuschiaastronauts.” You’ll never forget it, and the Hackers often turn to your social passphrase will confound hackers media profiles to find information for (literally) centuries. about you, and a little data goes a long way, such as your birthday I actually recommended and and the name of your pet. Experts told you how to create a great believe that criminals can guess passphrase a little over a year the average person’s password ago. The advice is still valid. nearly 73 percent of the time, and they can often access Go here to come up with your other accounts by using slight own. variations on the same password. Continued From Page 5
KIM KOMANDO
Facebook is all about making it easy to share your life with your friends and family. Unfortunately, there are some things you shouldn’t share online. These bits of information can put you in danger of identity theft, losing your job or causing other major headaches. Click here for five of the biggest offenders you should not put on your profile. 2. Use a phrase Instead of thinking of your password as a secret code, think of it as a “passphrase.” These are strings of words that are both easy to memorize but hard for anyone else to crack. Suppose you wanted to be an astronaut when you were a kid, and your favorite color is fuschia. 38
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3. Go long
chewie,” or all the streets on the way to your favorite restaurant, like “academy main washington ohio central.” Easy to remember. Hard to crack. 4. Don’t change your password until you have to
Until recently, consumers were advised to change their passwords every three months. But as NIST’s Paul Grassi recently told the Institute of Electrical and Electronics Engineers, “Expiration isn’t a motivator to create a brand new password, It may take it’s motivation websites to shift one character so you some time to catch can remember up to the latest NIST the password.”
You might want to sit down for this one: The new NIST guidelines suggest guidelines, but you If you’ve created a allowing users to create passwords strong password, can still create a up to 64 characters then don’t worry memorable password in length. As if that about changing isn’t weird enough, that meets current it out all the time. the guidelines Just stick with restrictions.” also allow spaces it unless you’ve between words. been notified of While many a security breach that requires a people just try to meet the bare password reset. minimum requirement of using eight characters, you will get 5. Choose something a much stronger password by memorable stretching things out. Remember, each password should be unique, but they don’t You could theoretically create a complex list or sentence, have to be cumbersome. The which still makes perfect sense NIST calls passwords “memorized to you. You could list all your secrets.” You want to avoid pets’ names from childhood, like the temptation to write down “fluffy princess rex spike booboo passwords, so pick a password Table of Contents
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TECHNOLOGY that has enough meaning to you to stay in your mind.
That’s why two-factor identification is so important. Using text messages, emails or I’m not a big fan of password special apps, an account-holder managers. I commit my will receive a notification every passwords to memory. But if time a password is changed, you cannot do that, here’s a free entered on a new device, or at program that will help you store a new location. You will have to your passwords safely and easily. verify that it’s you attempting to gain access. ackson – Vanessa Miller 6. Get creative with characters was named Director of the Licensing Division It may take websites some time How do you do this? Click here to catch up to the latest NIST and I’ll walk you through just a of the Mississippi Insurance Department by Commissioner guidelines, but you can still create few steps to set it up. Mike Chaney, effective February a memorable password that meets current restrictions. Go back to What questions do you have? Call 1, 2018. Miller has been employed Burr’s advice on passphrases. You my national radio show and click with the Mississippi Insurance might choose something like here to find it on your local radio Department for over nine years, station. You can listen to the Kim working in the Financial and “arizonacardinalsfootball” or “Igivemyjob1000%everyday.” Komando Show on your phone, Market Regulation Division. Those meet the requirements of tablet or computer. From buying having at least eight characters, a advice to digital life issues, click “During her time at the department, Vanessa has special character, and upper and here for my free podcasts. demonstrated exemplary lowercase letters. performance in all her duties and responsibilities. I know this 7. Use two-factor identification Copyright 2018, WestStar same level of dedication and While passwords help protect Multimedia Entertainment. commitment will be applied to your information, cybercriminals All rights reserved. her new position,” Chaney said. are more sophisticated than ever. If they break into your accounts, Learn about all the latest Miller is a Jackson native and you may not recognize the technology on the Kim holds a B.S. in Accounting from damage until it’s too late. Komando Show, the nation’s Mississippi College. She is an
MISSISSIPPI APPOINTS VANESSA MILLER DIR. OF LICENSING
J
Months passed before the public learned about the Equifax breach, and it’s hard to assess how much information has been leaked, nor how it will be used. If you haven’t checked to see if your personal details are in the hands of cybercrooks, click here and do it now. JUNE 2018
largest weekend radio talk show. Kim takes calls and dispenses advice on today’s digital lifestyle, from smartphones and tablets to online privacy and data hacks. For her daily tips, free newsletters and more, visit her website at Komando. com Table of Contents
active member of the Society of Financial Examiners (SOFE), obtaining a Certified Financial Examiner (CFE) designation in 2011 and is a current member of the Securities & Insurance Licensing Association (SILA). She is also a member of the International Association of Insurance Professionals (IAIP). www/underwritersinsider.com
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NEWS
CALIFORNIA AGENTS ARRESTED FOR FRAUD AND ID THEFT IN COMMISSIONS SCAM Fraudulent insurance applications used to scam $124k from life insurance companies
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OS ANGELES, Calif. — Life insurance agents, Samuel Tadlock III, 32, of Eastvale, Marlene Ramirez, 42, of Murrieta, Daniel Herrarte, 34, of Sylmar, and Jorge Lopez Jr., 38, of San Fernando, were arrested on multiple felony counts of identity theft and grand theft after allegedly submitting fraudulent insurance applications with information from stolen identities to collect approximately $124,000 in unearned commissions from insurance companies. Scotty
Carlisle, 42, of Corona, is making Medical Bridge, using fraudulent arrangements to surrender applications as part of a scheme himself. to earn commission advances from insurers. "I have zero tolerance for agents and brokers who scam insurers The suspects altered and and victimize consumers," falsified applications by said Insurance Commissioner making changes to essential Dave Jones. "We aggressively information, including investigate allegations of addresses, phone numbers, wrongdoing and work with birthdates and social security our district attorney partners numbers and submitting new to prosecute scam artists and application through the insurer's dishonest insurance producers." electronic database. Not only were the agents collecting An investigation by California unearned commissions, they Department of Insurance were allegedly trying to take Investigation Division revealed advantage of bonuses, including the agents issued life and a Hawaiian trip incentive offered supplemental insurance to qualifying insurance agents. policies for Accident, Accident Care, Critical Illness, Disability, When the victim insurer Medical Bridge, and Group discovered inconsistencies
Life insurance agents, Samuel Tadlock III, 32, of Eastvale, Marlene Ramirez, 42, of Murrieta, Daniel Herrarte, 34, of Sylmar, Scotty Carlisle, 42, of Corona and Jorge Lopez Jr., 38, of San Fernando, 40
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in the applications, they terminated the sales agents' contracts, removed them from the incentive promotion and reported the alleged illegal activity to the department. During the investigation, the department found evidence that the agents allegedly victimized another insurer, as a result the investigation is ongoing. The department has taken administrative action to suspend the agents' licenses and will take further action, if convicted. This case is being prosecuted by the Riverside County District Attorney's office.
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Continued From Page 31
SHORTEN YOUR SALES CYCLE WITH 3 SIMPLE METHODS asked questions and terms and conditions visible to potential customers. As potential customers flow through your sales funnel, systematically answer their questions and concerns. What is your return policy? What is the time frame for delivery and shipping costs? Who do I contact for problems? Offer a way to make the purchase risk free by offering a free trial or money back guaranty. To further lessen the resources needed in the sales process, automate as much as possible. Email software such as Active Campaign can send out an automated drip of emails. Tie into shipping carriers such as UPS, FedEx, and the USPS to automatically email tracking codes. Upload sales data to QuickBooks accounting software. Utilize a ticketing system like ZenDesk to answer customer service requests. There is a multitude of software solutions available to businesses to make Table of Contents
conducting manageable.
business
more
Establishing an online reputation is like building up assets that produce dividends. Every time you contribute to your assets, you are building a foundation that will continue to bring in revenue for the long haul. I have two golden rules. The first is to treat your customers with the same quality of service that you would like to receive, and the second is that happy employees mean happy customers. With these fundamental concepts, businesses can build lean enterprises that will serve their customers, employees, and profits in the most successful manner. ----------------------------Brian J. Greenberg has founded companies in e-commerce, marketing, and financial services. He has generated over 50 million in revenue from his businesses, collected over 10,000 reviews and testimonials from customers, been named one of the most creative people in financial services, and has been called “The Salesman Who Doesn’t Sell,” which is the title of his new book. Download the audiobook version for free at https://www. truebluelifeinsurance.com/ book www/underwritersinsider.com
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NEWS - TECHNOLOGY
NASA, UBER TO EXPLORE SAFETY, EFFICIENCY OF FUTURE URBAN AIRSPACE
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ASA has signed a second space act agreement with Uber Technologies, Inc., to further explore concepts and technologies related to urban air mobility (UAM) to ensure a safe and efficient system for future air transportation in populated areas.
an urban aviation rideshare network. NASA will use the latest in airspace management computer modeling and simulation to assess the impacts of small aircraft – from delivery drones to passenger aircraft with vertical take-off and landing capability – in crowded environments.
Under this agreement, Uber will This is NASA’s first such share its plans for implementing agreement specifically focused
on modeling and simulation for UAM operations. “NASA is excited to be partnering with Uber and others in the community to identify the key challenges facing the UAM market, and explore necessary research, development and testing requirements to address those challenges,” said Jaiwon Shin, associate administrator for NASA’s Aeronautics Research
An artist’s conception of a future where different aircraft – vertical takeoff, traditional takeoff, crewed, uncrewed – safely perform a variety of daily missions in rural to urban environments. Credits: NASA/Advanced Concepts Laboratory 42
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As small aircraft enter the marketplace, NASA wants to ensure they do so safely, with acceptable levels of noise, and without burdening the current national air traffic control system. To this end, the agency is leveraging ongoing aeronautics research in areas including: Unmanned Aircraft System (UAS) traffic management at low altitude; UAS integration in the National Airspace System; allelectric, general aviation class aircraft development; vertical take-off and landing aircraft; system-wide safety; and more. NASA’s definition of “urban air mobility” is a safe and efficient system for vehicles, piloted or not, to move passengers and cargo within a city. Credits: NASA
Mission Directorate. “Urban air mobility could revolutionize the way people and cargo move in our cities and fundamentally change our lifestyle much like smart phones have.” At its research facility at the Dallas Fort Worth (DFW) International Airport, NASA will use the data supplied by Uber to simulate a small passengercarrying aircraft as it flies through DFW airspace during peak scheduled air traffic. Analysis of these simulations will identify safety issues as these new aircraft take to the air in an already crowded air traffic control system. JUNE 2018
These activities will generate the data necessary to support the creation of industry standards, Federal Aviation Administration rules and procedures, and other related regulations. NASA will make the research available to the broader UAM community.
"The new space act agreement broadening Uber's partnership with NASA is exciting, because it allows us to combine Uber's massive-scale engineering expertise with NASA's decades of subject matter experience across multiple domains that are key to enabling urban air mobility, starting with a i r s p a c e systems," said Jeff Holden, Uber’s chief product officer. NASA has been working with others to test technologies that can help
drones navigate safely beyond visual-line-of-sight. Credits: NASA/Dominic
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SPECIAL REPORT
HOW (AND WHY) TO WRITE A PRESS RELEASE By Ron Manera, Senior Editor
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he most overlooked source of free promotion for small to medium-sized companies? Press Releases. Those little info blurbs that strengthen your brand and inform your market can be powerful tools if employed effectively. With a press release, your company can inform the world of a new hire, promotions, a key person retiring, a new product, a merger or acquisition, a new office or a thousand other events positive and timely. But even more important: Getting your company name out in front of tens of thousands of your prospects and customers, (even competitors) often, and at little or no cost. As an editor of a couple of insurance industry specific journals, I am on the receiving end of dozens of press releases daily - all wishing a free ride in one of my next issues. I welcome press releases because they often provide valuable content to my readers. Because of space and relevancy limitations, I can’t run them all. As a matter of fact, only a small percentage of the PRs I review
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make it into the magazines. How do I decide what to run? I look first for relevancy. Is the information in the press release something likely to be interesting or valuable to my subscribers? I can discard 80% of the PRs I review simply because the content is not focused on my audience. Next, I look for length, style and format. Will the original PR take up two pages requiring radical editing for size? Can I easily move the content into my publication without extensive reformatting? Are there bulleted paragraphs or multiple hyperlinks to contend with? I look for a news-style press release. When I receive a PR that is 80% promotional and 20% news, I’m likely to pass it up. I don’t charge for news - I do charge for advertising.
Up The Odds Your Press Release Will Be Printed And Effective
I
suspect most editors rely on criteria much like mine when reviewing incoming press releases for publication. Table of Contents
Here are eight tips to increase your odds of actually making it to the show: 1. Give me a compelling headline! Hint: Write your headline last after you review your entire PR. A good headline will not only get my attention, but that of my readers. 2. Don’t open with “ABC Company announced today...” because the PR may not appear for another 30 days. Include the actual date. 3. Keep your copy succinct! 375-450 words max. That’s an entire page, so you have plenty of room to cover your subject. I’m not going to give you more space - so if you run long, you are asking me to trim your copy and you may not like what I remove. 4. Learn to write like a journalist: Who, What, When, Why & Where. (in no particular order)List those 5 categories out on a worksheet and work from it as you script your PR. To the ultimate reader, it should not read as if it were written by your marketing department but as if we sent a reporter JUNE 2018
Image Credit: Creative Commons
While larger operations use paid services like Businesswire, PRweb, PRNewsire and others to distribute their press releases, smaller companies can maintain a list of media outlets that make more sense for their target market. I review PRs from the big distribution houses all the time - but I am more likely to notice one emailed directly to me.
or a mention or quote out to cover your news story. from a company officer. I 5. Important! Don’t often include company make your PR into an logos when they are made advertisement. First, it will available. lesson the chance I include your piece, (remember, I 8. About (Your Company) It’s good to include a short charge for advertising) but “About ABC Company” at the just as important, it will lack end of your PR. Keep it short credibility to the readers if it and within the word limit for just looks like a puff piece. the entire piece. Include It’s okay to sound enthused contact info for “further about the topic and your information.” company, but the ideal PR will look as if your company 9. Make certain to place a copy of each PR on your company made the news because of website under your NEWS some newsworthy event. tab. The practice will make 6. Give me at least one quote, your site more relevant to e.g. “Frank’s extensive search engines and more experience in restaurant valuable to visitors. risks will bring a new depth to our commercial insurance ow that you’ve created department,” said John the perfect press Smith, CEO... release, where should 7. If appropriate, include you send it? an image, especially if the PR involves personnel
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In the insurance business, include every trade journal that covers your region. If you are introducing a new restaurant program, for example, you may wish to include some of the trade journals in that industry. If you are a local retail agent, by all means include local print media, especially neighborhood newsletters or city-wide newspapers. Build your list in a spreadsheet database so you can one-click mail-merge a personalized copy to each media outlet. Make it a habit! Find the best copywriter in your office and assign them the task of churning out one press release each month. You’ll be building your brand and status within your industry. Where to send at TUI? Send directly to me, Ron Manera at ron@insurmedia.com.
www/underwritersinsider.com
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Georgia’s Only Virtual Insurance Agents Organization “Insuring the American Dream” Join today at www.Georgia-Agents.com
Georgia Agents has more online benefits than any other insurance agents’ organization. Any one of the benefits shown on this page is worth more than the $99.00 per year membership! Join today at http://www.georgia-agents.com and everyone in your agency starts to enjoy the benefits immediately. You can pay online at www.Georgia-Agents.com or feel free to mail your business card with a check payable to: Georgia Agents c/o Eddie K. Emmett 200 Russell Court, Canton, GA 30115 Happy sales to you,
Eddie
Free 24 hours Online CE (includes 3 hours Ethics) for entire staff Free 20 hours Limited Subagent Prelicensing Course Free 20 hours Personal Lines Agent Prelicensing Course Free Classroom CE for entire staff Free Promotional Video
Free Disaster Planning Toolkit: Here’s a new tool for your agency (& your commercial policyholders). Free Agency’s Online Visibility Report complete with improvement tips Free “How To” Booklets on Agency Management, Buy / Sell / Evaluate an Independent Agency, Internet Marketing & Social Media Free Agency Promotional Video. Use it on your website, Social Media, YouTube & eNewsletters. Free Local Commercial Lead Generator Free Customizable Business Forms: These documents are free to download and customize for your own use. Free Small Business Handbook: Everything you need to know to run your business, from equity to employees. Free Marketing Templates: Sets of templates with a coordinated design including letterhead, envelopes, business cards, brochures, etc. Free Office Poster Software: Templates to create your own custom office posters, all without any knowledge of design or graphical skills needed. Free Micro-Mobile Site & QR Code Marketing Strategy. Scan this QR Code for a current example. This could be your agency!
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Only $99.00 per year for one office plus $50.00 for each additional office under common ownership
Join today at www.Georgia-Agents.com
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Do GA CSRs have to be licensed? The answer is "Yes" if:
The CSR is a person who sells, solicits, or negotiates insurance.
The CSR receives commission on insurance sales.
The CSR handles endorsements and reinstatements.
The CSR gives quotes for insurance.
The CSR completes insurance applications.
The CSR handles renewals.
The CSR answers coverage questions.
So just what can an unlicensed CSR do? Mostly managerial and clerical tasks only indirectly related to the above tasks. I'm not so sure they can even take payments since that is a vital part of insurance sales.
The Georgia Department of Insurance encourages the insuring public to report any complaints about insurers, agencies and agents. The first thing checked is whether or not the person in the complaint is properly licensed for that transaction. Here's the scenario if the CSR is found to be in violation of O.C.G.A. § 33-23-4: Any person who willfully violates this Code section shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to punishment as provided in Code Section 17-10-3, relating to punishment for misdemeanors. Code Section 17-10-3: By a fine not to exceed $1,000.00 or by confinement in the county or other jail, county correctional institution, or such other places as counties may provide for maintenance of county inmates, for a total term not to exceed 12 months, or both.
Check out O.C.G.A. § 33-23-4 in the "Laws & Regs" link at the bottom right corner of www.GAlnsurance.org for a more murky explanation.
So what should an unlicensed CSR do? If they are handling only Personal Lines P&C, a Limited Subagent license should do the trick. The sponsor is responsible for their actions, a state exam is not required and they can take the required 20 hour pre-licensing course from the comfort of their desks for FREE if agency is a member of Georgia Agents.
It gets even better than that! CSRs may study the 20 hour Limited Subagent course, take an exam and download a Certificate of Achievement for free. It serves as great refresher training on Personal Lines such as auto, home and renter's insurance. But if the CSR handles lines other than Personal Lines, a full blown agent's license is required.
That applies to the CSR, the agency owner, and the Insurance companies that paid commissions to unlicensed entities. I wonder if they assign adjoining jail cells. GEORGIA AGENTS Members can earn 24 hours Online CE and 20 hours Limited Subagent Prelicensing and 20 hours Personal Lines Agent Prelicensing for all employees for only $99.00 per year! And that’s just a few of the many benefits. Join today at www.Georgia-Agents.com
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BECOME A CERTIFIED EXPERT IN CORPORATE PROPERTY INSURANCE AND A CERTIFIED EXPERT IN CORPORATE LIABILITY INSURANCE Now available from Illumeo and Barry Zalma!
E
veryone involved in insurance – either as an insurer or as an insured – requires excellence in claims handling. Businesses need to deal with insurers who have an excellence in claimshandling mandate. Insurers who wish to profit need an excellence in property and/or liability claims-handling program. Everyone in business needs an insurer who has an excellence in property or liability claims-handling program in effect. Two comprehensive programs enabling insurance professionals to become Certified Expert in Corporate Property Insurance and/ or Certified Experts in Corporate Liability Insurance are available from Illumeo.com and https://www.illumeo.com/curriculum/certifiedexpert-corporate-property-insurance and https://www.illumeo.com/ curriculum/certified-expert-corporate-liability-insurance. The programs are complete courses of study providing education and training to allow insurance professionals, after completing the individual classes, to become a Certified Expert. The programs cover everything an employee, an officer, or a director of a corporation needs to know about the need to acquire proper insurance and to resolve any claim presented by the corporation to the insurer. Major topics of study include, but are not limited to: the importance of insurance; how to acquire insurance and understand an insurance policy; the methods used by insurers to investigate claims; the various types of insurance that corporations need; the duties and obligations of a public adjuster; and how The full curriculum of the courses and other courses from Barry Zalma are available at http:// www.ilumeo.com by entering in the search bar the word “zalma.”
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