The Underwriter's Insider February 2019

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IN THIS ISSUE FEBRUARY 2019 VOL 15 ISSUE 2

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Five Streaming TV Devices Compared

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Comedy of Errors By Everyone Involved Causes Multiple Appeals

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AAA Recommends Common Naming For Advanced Driver Assistance Systems (ADAS) Technology

NASA Astronauts Flying Aboard SpaceX’s Crew Dragon

CA’s New LGBTQ+ Ins. Commissioner Pledges To Address Liberal Concerns

Insurers Come Up Short For Independent Agents Despite Critical Role Agetns Play

Investing Basics Stocks Vs Mutual Funds

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Global Ransomeware Attack Could Cost Businesses Almost $200BN

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Pioneering The PEO Broker Competition

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Equian Announces 1st Natural Language Process For P&C Subrogation

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CA Reports Insured Losses From Nov Wildfire Up To $11.4B

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Scammers Arrested In $2.8 Million Dental Insurance Fraud

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FL Arrests Clinic Owners For Stealing $45,000

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Texas Agent Indicted In Life Insurance Scam

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Florida Commissioner Altmaier Elected NAIC Vice-President

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How (And Why) To Write A Press Release

Carriers Continue To Provide A Broad Range Of Broker Services

Expensive Camera No Better Than Phone Camera?

Glynn County Georgia Commissioner and Wife Indicted On Insurance Fraud

Virtue Signalling by Gillette • SOTU And Socialism • Minister of Hate & Division • Elizabeth Warren

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


SPECIAL REPORT: AAA RECOMMENDS COMMON NAMING FOR ADVANCED DRIVER ASSISTANCE SYSTEMS (ADAS) TECHNOLOGY

HOW (AND WHY) TO WRITE A PRESS RELEASE THAT ACTUALLY GETS PUBLISHED

PG 40 FEATURES INSURANCE AND THE LAW PAGE SIX

2018 FAIA & LAAIA TRADE FAIR BOOTH IMAGES NOW ONLINE!

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Kim Komando Barry Zalma

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Advertise

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Breaking News

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Insider Advisor

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Back Issues

Say What?

Page 6 New Zalma Claims Books Now Available! Story...

Cover Image: Marco Verch Attribution 2.0 Generic (CC BY 2.0)


FEBRUARY 2019 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: @rj.0521 561.718.0745 • ron@insurmedia.com

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TECHNOLOGY

5 STREAMING TV DEVICES COMPARED

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Really Cool Tech Info - From Kim Komando

his year could be the year of the streaming service. Netflix, Amazon Prime and Hulu have comfortably held the top three spots for streaming services, but this year they’re going to see some serious brands looking to take a bite out of the streaming pie.

And while you’re at it, tap or click here for three simple tricks for smoother video streaming. OK, let’s take a look five “streaming boxes” and see which one is right for you.

1. Apple TV 4K

IMDb, AT&T, Disney, Apple and Warner have all announced or hinted at plans to launch streaming services in 2019. The consumer allure to switch to streaming is undeniable. Monthly subscription prices cost less than the price of two movie tickets, and subscribers get access to original programming, box-office hits and award-winning TV shows. But, buyer beware: Those subscriptions can quickly add up; streaming isn’t always cheaper than cable.

streaming devices, which is what I want to talk about today. I get asked this a lot – which devices are best for streaming services?

Before I answer that question, Not only do you have many I’ve got two tips for you: If you choices for streaming services, but love movies, read about the best you’ve also got multiple choices for streaming services for cinephiles. FEBRUARY 2019

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Pros: Apple TV is simple, versatile, and ideal for people who already prefer Apple products. The device works great with iPhones, iPads and Macs, and it’s compatible with Airplay content streaming, Apple Music and other HomeKit appliances. If you’re already knee-deep in the Apple ecosystem, the Apple TV is a no-brainer. But the real winner is Apple TV 4K, which currently has the best hardware available in a streaming box, designed to effortlessly handle 60 fps 4K, Dolby Atmos and HDR See Kim Komando Pg 36 www/underwritersinsider.com

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CLAIMS & THE LAW

COMEDY OF ERRORS BY EVERYONE INVOLVED CAUSES MULTIPLE APPEALS

Expert Analysis & Commentary by Barry Zalma, Esq., CFE Commonwealth of Kentucky Court of Appeals (January 18, 2019) the Kentucky Court of Appeals was faced with a dispute over available insurance coverages where the injured person Sharon Spalding and hen a person is injured her lawyer failed to discover all in an automobile coverage before a settlement accident, even one was reached with the responsible involving a moped and an auto, party. it is the obligation of the injured person and the injured persons lawyer, to determine all insurance Join Barry Zalma’s Blog: available to provide indemnity to http://www.zalma.com/blog the injured person. That means all third party liability insurance and uninsured or underinsured motorist (UM/UIM) insurance. FACTS Failure on the part of the injured On April 19, 2011, a vehicle person or the injured persons operated by Bashia Robinson lawyer results in litigation and struck a moped operated by multiple appeals. Spalding. There is no dispute that Robinson was at fault in causing In Auto-Owners Insurance the accident. As a result, Spalding Company v. Sharon Spalding, suffered a badly broken arm NO. 2017-CA-001474-MR, that required surgery, and she

Settlement Without Knowledge of All Available Insurance is Dangerous

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incurred substantial medical bills. According to the record, Spalding suffers from some degree of dementia and memory loss, which pre-existed the accident. Spalding subsequently retained attorney Dallas George to represent her in any claims arising from the accident. George investigated the matter and determined that Robinson had automobile insurance through Kentucky Farm Bureau with statutory limits of $25,000/$50,000. In addition, George learned that Spalding had motor vehicle insurance that had been purchased through Energy Insurance Agency of Lebanon (Energy Insurance). Spaldings moped was insured under a policy issued by Progressive Insurance Company that did not provide Underinsured Motorist Coverage (UIM).

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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In Spalding v. Auto-Owners deposition that she called the Spalding advised her lawyers Insurance Company, 2014- insurance agency to inquire as paralegal that she did not have CA-001737, 2016 WL 361653, to whether Spalding had UIM such coverage. Based upon that *2-3 (January 29, 2016) the coverage. It is the agencys policy information, George secured a court of appeal reversed to provide insurance information $25,000 settlement with Kentucky the trial court decision and only in response to a written Farm Bureau on the liability sent it back to the trial court. request and that she would claim against Robinson. not have provided any Spalding signed a release information over the Summary judgment often phone. in favor of Robinson in exchange for Kentucky resolves a case quickly. Farm Bureaus policy The required notice However, if not properly granted, limits. is designed to give the UIM carrier the it causes unnecessary delay and Six months after the opportunity to protect expense. In this case summary release was signed it was its subrogation rights discovered that Spalding judgment decisions were reversed against the tortfeasor had another policy issued and the tortfeasors twice and the case must go to trial.“ by Auto Owners that insurer. If an underinsured provided UIM coverage motorist insurer chooses limits of $100,000/$300,000. to preserve its subrogation Auto Owners concluded after According to her lawyer, Georges rights by refusing to consent to completing an investigation deposition, she never informed settle, the underinsured motorist that there would be coverage him that she owned a Ford Focus, insurer must, within thirty (30) for a policyholder injured in a and he learned of it only after days after receipt of the notice motor vehicle accident while securing the settlement with of the proposed settlement, pay occupying the moped because Kentucky Farm Bureau on the to the injured party the amount the operator of the moped would liability claim against Robinson. of the written offer from the be considered a pedestrian. The trial court again ruled in favor underinsured motorists liability Regardless, Auto Owners denied of the insurer. insurer. Spalding coverage on the grounds that upon reaching ANALYSIS Thereafter, upon final resolution of the settlement with Kentucky the underinsured motorist claim, Summary judgment is an Farm Bureau, Spalding failed to the underinsured motorist insurer extraordinary remedy that should give the required notice to Auto is entitled to seek subrogation be cautiously applied and should Owners as her UIM carrier. against the liability insurer to not be used as a substitute for the extent of its limits of liability trial. The trial court granted summary insurance, and the underinsured judgment in favor of Auto motorist for the amounts paid to It was clear to the appellate Owners finding that the notice the injured party. court that a factual issue existed requirements of the statute are as to whether the conversation mandatory and that Appellant between Gloria and Spalding did not owe Spalding coverage. See ZALMA Page 37 occurred. Gloria testified in her FEBRUARY 2019

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SPECIAL REPORT

AAA RECOMMENDS COMMON NAMING FOR ADVANCED DRIVER ASSISTANCE SYSTEMS (ADAS) TECHNOLOGY

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AAA set out to understand the growing prevalence of ADAS technology in new vehicles as well as examine the terminology currently used by regulatory organizations and manufacturers. Previous AAA research found that 40 percent of Americans expect partially automated driving systems with names like Autopilot, ProPILOT or Pilot Assist, to have the ability to drive the car by itself. This research highlights the need for standardization of terms and definitions for ADAS features. https://commons.wikimedia.org/wiki/File:Lexus_instrument_LCD_and_Driver_Monitor.jpg

ome Advanced Driver Assistance Systems (ADAS) have been available for nearly 30 years, however, they have only become more commonplace in the last several years, like automatic emergency braking and lane keeping assistance. Since these features now come standard on many new vehicles, it is becoming increasingly important for consumers to have a solid understanding of their functionality. However, with the current variety of marketing names and lack of consensus by industry regulatory groups, it has been difficult for consumers to discern what features a vehicle has and how they actually work.

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• Rear Cross Traffic Warning 15 • Driver Monitoring 13 Cost/Prevalence of ADAS Technology • Semi-Auto Parking Assist 12 AAA examined 2018 model year vehicles • Forward Collision Warning 8 to identify the percentage of ADAS • Night Vision/Pedestrian Detect 5 technology that comes standard and found the following three features are AAA Proposed Terminology for ADAS the most prevalent: AAA is proposing terminology that is intended to be simple, specific and based • Automatic Emergency Braking – on system functionality. 30.6% • Lane Keeping Assistance – 13.9% AUTOMATED DRIVING TASKS • Adaptive Cruise Control – 11.8% Adaptive Cruise Control Controls acceleration and/or braking to Multiple ADAS features are often sold as maintain a prescribed distance between part of an optional technology bundle. it and a vehicle in front. May be able On average, the cost of an ADAS bundle to come to a stop and continue. is approximately $1,950. Dynamic Driving Assistance Controls vehicle acceleration, braking, At least one ADAS feature is available and steering. SAE standard definition in 92.7 percent of new vehicle models of L2 Autonomous systems outlines this available in the United States as of May functionality. 2018. Lane Keeping Assistance Controls steering to maintain vehicle Terminology Review within driving lane. May prevent vehicle AAA’s Automotive Engineering team from departing lane or continually center examined 34 vehicle brands sold in the vehicle. United States to identify the number of unique names manufacturers use to COLLISION ALERTS market ADAS. AAA found the following Blind Spot Warning regarding the number of terms used to Detects vehicles to rear in adjacent lanes describe a single ADAS feature: while driving and alerts driver to their presence. ADAS FEATURE Forward Collision Warning Detects impending collision while NUMBER OF UNIQUE NAMES traveling forward and alerts driver. • Automatic Emergency Braking 40 Lane Departure Warning • Adaptive Cruise Control 20 Monitors vehicle’s position within driving • Surround View Camera 20 lane and alerts driver as the vehicle • Lane Keeping Assistance 19 • Blind Spot Warning 19 • Automatic High Beams 18 See Common Naming For Auto Tech Page 25

Key Findings

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TECH NEWS Image Credit: SpaceX

NASA ASTRONAUTS FLYING ABOARD SPACEX’S CREW DRAGON Top row, left to right: NASA Astronauts Victor Glover and Mike Hopkins; bottom row, left to right: NASA Astronauts Bob Behnken and Doug Hurley

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n Friday, August 3, 2018, NASA announced the first four astronauts who will launch aboard Crew Dragon (also known as Dragon 2) to the International Space Station as part of NASA’s Commercial Crew Program, which will return human spaceflight capability to the United States for the first time since the Space Shuttle Program was retired in 2011.

After Crew Dragon’s demonstration mission with crew is complete, Victor Glover and Mike Hopkins will be the first two NASA astronauts to launch aboard Crew Dragon to the International Space Station for a long-duration mission. This mission will mark SpaceX’s first operational crew mission under our current Commercial Crew Transportation Capability contract with NASA.

Following SpaceX’s first demonstration mission without humans aboard Crew Dragon targeted for November 2018, Bob Behnken and Doug Hurley will be the first two NASA astronauts to fly in the Dragon spacecraft. This mission, currently targeted for April 2019, will liftoff from historic Launch Complex 39A at NASA’s Kennedy Space Center in Florida with the astronauts aboard Crew Dragon atop a Falcon 9 rocket.

As Dragon prepares to carry humans for the first time, the spacecraft continues to make regular trips to the International Space Station carrying cargo under SpaceX’s Commercial Resupply Services contract with NASA. Currently, Dragon is the only spacecraft flying that is capable of returning significant amounts of cargo to Earth.

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Image Credit: SpaceX From left to right: NASA Astronauts Bob Behnken and Doug Hurley

Image Credit: SpaceX From left to right: NASA Astronauts Victor Glover and Mike Hopkins


NEWS

CALIFORNIA’S NEW LGBTQ+ INSURANCE COMMISSIONER PLEDGES TO CONFRONT CLIMATE-FUELED WILDFIRES, FIGHT FRAUD, EXPAND HEALTH CARE Ricardo Lara pledges to confront climatefueled wildfires, fight fraud, expand health care as next Insurance Commissioner

R. Walker administered the oath of office. Judge Walker wrote the decision in Perry v. Schwarzenegger in 2010, overturning Proposition 8 and allowing marriage equality in California.

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etired U.S. Judge Vaughn Walker, author of marriage equality decision, administers oath to first statewide LGBTQ elected leader SACRAMENTO, Calif. – Ricardo Lara took office as California Insurance Commissioner at a ceremony in Sacramento on Monday, January 7, pledging to help Californians recover from wildfires while defeating the threat of climate change.

Department of the Sun Will Come Out Tomorrow. In short, we are the Department of Hope, and we have never been more important.” He pledged to protect the victims of wildfires and other disasters, defend all Californians from the threat of climate change and insurance scams, and promote innovation and technology.

“Our seniors, people living in poverty, and immigrant communities are targets of con artists and scams. Our entrepreneurs face economic uncertainty. Millions of us live one emergency room visit away from financial ruin. We cannot CA Insurance deny that with climate change, Commissioner Ricardo Lara California faces a threat like “California’s Department of never before,” said Commissioner Commissioner Lara is the eighth Insurance is the largest state Lara. “ Insurance Commissioner of consumer protection agency California since voters created in America,” said Commissioner Commissioner Lara announced Lara. “We are the Department the creation of a Deputy the position in 1988. of Fair Deals, the Department Commissioner of Climate and Commissioner Lara is the first of Fresh Starts, the Department Sustainability, a first for the openly LGBTQ+ person to be of Rebuilding Your Home, the department, to work with of Protecting elected to statewide office in Department California. U.S. Judge Vaughn your Investment, and the See CA’s New Commissioner PG 35 12

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ANALYSIS - J.D. POWER

INSURERS COME UP SHORT FOR INDEPENDENT AGENTS DESPITE CRITICAL ROLE AGENTS PLAY IN DRIVING BUSINESS, J.D. POWER FINDS Study Finds Strong Correlation Between Independent Agent Satisfaction and Placement Rate

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“Each of the highest performing carriers in our study have taken different approaches to the market – some have focused on regional success, while others have emphasized price or service,” said Tom Super, Director, Property & Casualty Insurance Practice at

J.D. Power. “What they all share is a common understanding of the linkage between agent satisfaction and improved business outcomes—recognizing what drives agent satisfaction, then being laser-focused on getting that right.”

OSTA MESA, Calif.: 31 Jan. 2019 — The more satisfied independent insurance agents are with a carrier, the more business they will conduct with that carrier. Despite this fact, which is clearly evident in the J.D. Power 2019 U.S. Independent Insurance Agent Satisfaction Study,SM overall agent satisfaction with the service they receive from insurers is among the lowest of business relationships measured by J.D. Power. The second annual study, which was developed in alliance with the Independent Insurance Agents & Brokers of America (IIABA), evaluates the independent P&C insurance agent’s business outlook, management strategy and overall satisfaction with personal lines and commercial lines insurers in the United States.

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Mr. Zalma recently published on Amazon.com with links at the Zalma Books site with the following volumes:

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Following are key findings of the 2019 study:

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ndependent agent satisfaction with carriers linked to placement rate: There is a strong relationship between higher levels of independent agent satisfaction and a greater number of business relationships with insurers. Likewise, independent agents that are more satisfied with the service they receive from insurers are more likely to recommend that carrier and place a greater number of products with that insurer. Independent agents cite low satisfaction with carriers: Overall independent agent satisfaction with personal lines insurers is 733 (on a 1,000-point scale). For commercial lines, that score falls to 720. These are among the lowest overall satisfaction scores in any business study currently conducted by J.D. Power, lagging even financial advisors (737). Support/communication and quoting are keys to agent satisfaction: As the most important factors in determining agent satisfaction, the support/ communication factor in personal lines and the quoting factor in commercial lines are key areas for insurers to focus to increase satisfaction.

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

For more information about the U.S. Independent Insurance Agent Satisfaction Study, visit https://www.jdpower. com/business/resource/usindependent-insurance-agentsatisfaction-study.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth Study Rankings and profitability. Established Auto-Owners Insurance ranks in 1968, J.D. Power has offices highest among personal lines for serving North America, South the second straight year, with an America, Asia Pacific and Europe. overall satisfaction score of 800. Progressive (762) ranks second Founded in 1896, the Independent while Safeco and Travelers rank Insurance Agents & Brokers of third in a tie with 737. America (IIABA or the Big “I”) is the nation’s oldest and largest national Liberty Mutual performs highest association of independent among commercial lines for the insurance agents and brokers, second straight year, with an representing a network of overall satisfaction score of 749. approximately a quarter of a Chubb and The Hartford rank million agents, brokers and their second in a tie with 720. employees nationally.

The J.D. Power 2019 U.S. Independent Insurance Agent Satisfaction StudySM surveyed 1,466 P&C insurance independent agents for a total of 1,561 evaluations of personal lines insurers and 1,193 evaluations of commercial “A strong partnership between lines insurers that they had Trusted Choice independent placed policies with in the FEBRUARY 2019

prior 12 months. The study was fielded from September through November 2018.

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Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products.

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THE INSIDE TRACK - BREAKING NEWS MarketScout Launches WildCat in California

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n exclusive MGA facility for insuring wildfire, brush, and quake exposures MarketScout, the national electronic insurance exchange and specialty MGA headquartered in Dallas, Texas, announced today the launch of its new exclusive MGA facility, WildCat. California’s catastrophic wildfire outbreaks have reshaped insurance for the region. Insured losses in 2018 have been calculated in the billions. With the coverage crisis for homeowners in California, MarketScout developed WildCat to provide additional coverage capacity in the area. Analysts have noted the California personal lines market is trending toward a hard market, with rates for brush exposed properties trending towards increases from 10% to 50%. WildCat is stepping forward as the solution while many other markets and brokers are pulling out. MarketScout’s exclusive property MGA provides solutions for tough accounts in the hardening market.

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Ltd., the nation’s largest independent wholesale insurance broker, is pleased to welcome Vicki Bancroft, Inside Broker, to the Dallas, TX office. Vicki joins the headquarters on All Risks, Ltd. Welcomes region Frank Giarratano’s team Vicki Bancroft as Inside and will be responsible for Broker in Dallas Office market development and the placement of new and ALLAS, TX (January renewal business. Vicki has 30, 2019) – All Risks, 25 years of experience in the insurance industry, focusing

WildCat is stepping forward as the solution while many other markets and brokers are pulling out. MarketScout’s exclusive property MGA provides solutions for tough accounts in the hardening market.

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THE INSIDE TRACK - BREAKING NEWS mainly on construction risks. Prior to joining All Risks, she served as a Senior Broker, Vice President for Willis Towers Watson.

Jared Huffman Joins All Risks, Ltd. as Brokerage Underwriter in Dallas Office

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ALLAS, TX (January 29, 2019) – All Risks, Ltd., the nation’s largest independent wholesale insurance broker, is pleased to welcome Jared Huffman, Brokerage Underwriter, to the Dallas, TX office. Jared specializes in Property & Casualty small commercial business for a broad range of classes including: contractors, real estate, hospitality establishments, manufacturers, distributors, retail stores and educational institutions. Prior to joining All Risks, Jared served as an Account Executive/ Commercial Underwriter for Travelers, where he focused on underwriting small commercial business in Austin, TX.

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Risk Strategies Completes Integration of National Health Care Practice Across All Lines of Insurance and Reinsurance

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ational insurance broker has assembled one of the most comprehensive offerings for the health care industry. Risk Strategies, a privately held, rapidly growing national insurance brokerage and risk management firm, today announced the integration of its national health care practice across all lines of insurance and reinsurance, marking a milestone in a years-long effort to create one of the most comprehensive service offerings in the business. Risk Strategies’ national health care practice is led by Bob Dubraski, an industry veteran who came to Risk Strategies through its 2015 acquisition of Dubraski & Associates. He leads a dedicated team of experts with resources across the country, providing analytics, consulting and creative risk management solutions to an array of health care organizations as well as managed care and stop loss providers. Experts in the practice are also able to draw on Risk Strategies’ product specialists, resources and technology as

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needed to ensure the best outcome for each client.

Georgia Farm Bureau Goes Live with Sapiens’ P&C Claims Solution

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olon, Israel – Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, announced today that Georgia Farm Bureau Mutual Insurance Company (GFBMIC), the largest domestic property & casualty (P&C) insurer in Georgia, with over 490 million in direct written premium, has gone live with the Sapiens Claims solution for North America for their homeowners, personal and commercial auto lines of business. The Georgia Farm Bureau Mutual Insurance Company is a subsidiary of The Georgia Farm Bureau Federation, Georgia’s largest voluntary agricultural organization, with almost 300,000 member families. The Georgia Farm Bureau Mutual Insurance Company originally partnered with StoneRiver (now a fullyowned Sapiens’ subsidiary) and earlier last year signed a multiyear agreement for continuous implementation and support of what is now called the Sapiens P&C Insurance Platform for all its lines of business.

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ANALYSIS

INVESTING BASICS – STOCKS VS MUTUAL FUNDS

By Matthew Treskovich, CPA/PFS, MBA, CFP®, CMA

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tocks represent ownership interests in corporations. Owning a stock makes you part owner of the company that issued the stock. Many companies pay out part of their earnings to shareholders. This payout is called a dividend. Think of dividends as your paycheck as an owner of the company. Stocks are also called “equities”, and are traded on exchanges, called the “stock market”.

Average and the S&P 500 track the combined values of many stocks. Most retirement investors don’t own individual stocks. Most retirement savings invested in equities are actually in mutual funds and exchangetraded funds.

Watch out for fees

Mutual funds, including index funds, and exchange-traded funds aren’t necessarily bad things. Investing in funds has some drawbacks. Many fund managers charge large fees, and your control over how your money is invested is limited. Stock market indexes like Some funds, like the Vanguard the Dow Jones Industrial family of mutual funds, have

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very low fees. However, there are still many mutual funds that charge annual fees over 1.5%. Mutual fund fees just pay the fund managers; they don’t include the cost of financial planning or investment advice you might receive from your advisor. Most diversified mutual funds own stocks in a large number of companies. For investors, this means that even if the fund owns some great American companies, it probably also has some terrible ones. This is a problem for investors in actively managed mutual funds, as well as index funds and exchangetraded funds.

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Advantages of Individual stocks Many investors who have accumulated significant assets would be better off holding a portfolio of individual stocks. In the long run, a portfolio of high-quality individual stocks can cost significantly less than a portfolio of funds.

Another common mistake made my investors and professionals alike is chasing “hot” stocks. Academic studies have shown that fundamentals matter! The best investments for retirement savers are companies with a solid track record of profitability.“

Most custodians charge a trade commission when a stock is bought or sold, but they don’t charge an annual fee to hold the portfolio. Academic studies have shown that a long-term buy and hold strategy can provide great returns, if investors can manage their own behavior and avoid the market. Often, an investor making common mistakes. who tries to time the market will end up “buying high” and The most common mistake “selling low”. Other times, the investors make when buying market-timing investor might individual stocks is trying to time find himself on the sidelines

missing out on gains. Trading and investing are very different things. Retirement savings should be invested for the long run, not traded in the short run. Another common mistake made my investors and professionals alike is chasing “hot” stocks. Academic studies have shown that fundamentals matter! The best investments for retirement savers are companies with a solid track record of profitability. When we invest funds for our clients, we look for companies that have a history of making money and growing their earnings in good times, and in bad times. Doing this kind of research takes more effort than simply picking a mutual fund from a menu, but in the long run it can be very rewarding for investors.

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bout the author: Matt is the Chief Investment Officer of the firm of

CPS Investment Advisors with 18 years of experience in financial services also serving as the CFO of an insurance brokerage. With a Master’s degree in Business Administration, with an emphasis on accounting from the University of Phoenix, Matt is a CPA licensed in Florida and holds the AICPA’s Personal Financial Specialist (PFS) designation. Matt is a CERTIFIED FINANCIAL PLANNER ™ and a Certified Management Accountant (CMA). and received a Certificate of Distinguished Performance from the IMA for achieving a CMA exam score in the top ten worldwide. In 2017, he was awarded an AICPA Standing Ovation for exemplary professional achievement in personal financial planning services. Treskovich also is certified as an Accredited Estate Planner® (AEP®) designee by the National Association of Estate Planners & Councils (NAEPC). He is a member of the Institute of Management Accountants, former President of the Mid Florida Chapter and former Treasurer of the IMA Florida Council.

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NEWS

GLOBAL RANSOMWARE ATTACK COULD COST BUSINESSES ALMOST $200BN, NEW STUDY FINDS

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n the report’s scenario, the attack is launched through an infected email, which once opened is forwarded to all contacts and within 24 hours encrypts all data on 30 million devices worldwide. Companies of all sizes would be forced to pay a ransom to decrypt their data or to replace their infected devices. The report, ‘Bashe Attack: Global infection by contagious malware’, shows a ransomware attack on this scale would cause substantial economic damage to a wide range of business sectors through reduced productivity and consumption, IT clean-up costs, ransom payments and supply chain disruption.

The scenario estimates that: Retail and healthcare would be the most affected ($25bn each), followed by manufacturing ($24bn). Regionally, the US would be the hardest hit with $89bn at risk. Europe could lose $76bn, with Asia losing $19bn.The rest of the world could lose $9bn. Despite the high costs to business, the report shows the global 20

The Underwriter’s Insider

economy is underprepared for such an attack with 86% of the total economic costs uninsured, leaving an insurance gap of $166bn.

A global ransomware cyber-attack could cost $193bn and affect more than 600,000 businesses worldwide, according to a new report from the Cyber Risk Management (CyRiM) project, the Singapore-based publicprivate initiative that assesses cyber risks, of which Lloyd’s is one of the founding members.” Among the key findings: The report challenges assumptions of global preparedness for a cyber-attack of this nature and scale. Table of Contents

It highlights lessons for the insurance sector in terms of policy, legal and aggregation issues in cyber insurance offerings. It also identifies opportunities for insurers to expand their business in insurance classes associated with ransomware attacks. To read the report visit www. lloyds.com/cyrimreports. Dr Trevor Maynard, Head of Innovation at Lloyd’s, said: “This report shows the increasing risk to businesses from cyber-attacks as the global economy becomes more interconnected and reliant on technology. Companies must ensure they are better prepared for ransomware attacks, and that includes working with insurers to reduce the risks before they are attacked and ensure they have the right insurance cover in place to respond after the event. The reality for business is it’s not if you get attacked but when.” Professor Shaun Wang, Director of the Insurance Risk and Finance Research Centre at Nanyang Technological University, added: “We are pleased to collaborate FEBRUARY 2019


with Cambridge University and CyRiM founding members on this groundbreaking research. Quantifying potential harm caused by cyber threats to corporations and their insurers has been a challenge due to lack of data.

Dr Andrew Coburn, Chief Scientist at the Cambridge Centre for Risk Studies, said “The scenario we have prepared with Lloyd’s, CyRiM and other contributors highlights the potential for loss that can occur from contagious malware attacks. It challenges assumptions about cyber preparedness and the adequacy of security measures that companies have in place. This report is intended to deepen the understanding of cyber risk liability and aggregation risk in the portfolios of insurers.

The “Bashe attack” report exemplifies a sound methodology of applying expert knowledge in estimating economic losses caused by contagious malware to sweep through many organisations. It sheds light on potential losses to insurers We hope that this contribution will through both affirmative and help improve the understanding non-affirmative covers.” of cyber risk and lead to better resilience to attacks like these in FEBRUARY 2019

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the future.” Alan J. Wilson, CEO of MSIG Asia said, “Asia is more connected than ever before but information on corporate cyber-attacks is not yet so widely available. This report illustrates the potential reach and impact of cyberattacks which can serve as a useful guide for organisations and governments. MSIG is proud to play a part in this report as we believe that education on cyber risk should be an ongoing effort in collaboration with academia, technology, insurers and governments, for us to build See Global Ransomware Attack Pg 43 www/underwritersinsider.com

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NEWS

PIONEERING THE PEO BROKER COMPETITION

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S&LCares presents the inaugural PEO Broker of the Year Contest highlighting the best of the relatively unknown industry of employee leasing. Categories include best overall PEO Broker, most payroll closed (both white- and blue-collar categories), best mom & pop broker (only one or two employees), and most philanthropic.

push the growth of PEOs every year throughout the nation. PEOs, or Professional Employer Organizations, are HR organizations who utilize the combination of payroll and a co-employment relationship to provide thousands of companies with workers’ comp insurance and a suite of high-level benefit plans that would otherwise be unattainable.

All PEO Brokers domiciled in Florida are welcome to participate and may begin submitting applications on January 1, 2019. Applicants must submit one application for each category in which they wish to participate. Judging for the contest will take place after all applications have been received by March 31, 2019.

dimensional nonprofit serving over 130,000 people in Pinellas County each year. RCS Pinellas addresses hunger, homelessness, domestic violence, and lack of basic needs. Founded in 1967 as an interfaith initiative by 15 congregations of various faiths and ethnicities, they were recently named the 2018 Large Business of the Year by the Upper Tampa Bay Chamber and are the highest rated human services nonprofit in the state of Florida according to Charity Navigator. More information about RCS Pinellas can be found at www.rcspinellas.org. The winning PEO brokers will be announced and celebrated at an awards banquet, sponsored by Kymberly Group, in early summer of 2019 in Orlando, FLA. Additional sponsorship opportunities are available.

PEOs generate between $136 - $156 billion in gross revenues working with between 156,000 - 180,000 small to mid-size businesses. Businesses in a PEO arrangement have been shown to grow 7 – 9 percent faster, have 10 – 14 percent lower turnover, and are 50 percent less likely to go out of For more information about the business according to NAPEO, the event and how to participate, visit www.ssandlcares.com/broker-ofNational Association of PEOs. the-year. Use #PEOBOTY2018 to PEO Brokers are a little known, Our judge and beneficiary of the follow or comment on social media. yet extremely vital group who event, RCS Pinellas, is a multi-

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NEWS

EQUIAN ANNOUNCES FIRST NATURAL LANGUAGE PROCESS AND MACHINE LEARNING AI PLATFORM DESIGNED EXCLUSIVELY FOR P&C SUBROGATION Supports Automobile, Property and Workers’ Compensation Claims

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NDIANAPOLIS, Jan. 17, 2019 (GLOBE NEWSWIRE) -- Equian, a leader in innovative P&C payment integrity solutions announced today that its Data Analytics Division created the first NLP based AI platform called EquianAI built exclusively for the P&C subrogation market. After piloting and testing the platform, it has proven to: • • • •

eliminate leakage associated with subrogation identification, reduce false positives up to 36%, enable productivity gains up to 20%, and improve cycle time over 30%.

EquianAI’s greatest impact is improving operational performance and recovery cycle times, and it easily integrates into existing workflows with minimal technology resources required. Equian’s Subject Matter Experts worked alongside the Analytics Division to develop the model. The Analytics Division FEBRUARY 2019

utilized Equian’s data repository of P&C subrogation data to formulate a unique set of algorithms to predict outcomes and improve the existing process. Sam Cooper, Senior Vice President of Client Solutions, stated, “P&C organizations have unique challenges when it comes to subrogation. Most carriers rely on manual evaluation of free text with some predictive analytics on a limited amount of structured data to identify losses with subrogation opportunity. EquianAI provides automation that removes tedious human intervention by analyzing the free text, the structured data, and the unstructured data simultaneously. The technology performs in-depth analyses that result in the ability to prioritize claims by scoring recoverable files as High, Medium or Low based on recoverability. Rules based technology then directs the scored cases to appropriate investigation and recovery experts.”

by deploying technology logic as a critical part of the subrogation payment integrity value chain. Key automation incorporated into our data engine that drives our successful outcomes includes Artificial Intelligence, Digital Robotics and Machine Learning, Predictive Analytics, and Mobile Technology.” A video explaining the solution functionality and process can be accessed through the link below: Next Gen –EquianAI Video

About Equian

Equian is a leading end-to-end payment integrity organization. The company manages over $500 billion in claims data annually on its innovative platform designed to assist clients by avoiding, identifying, pricing, analyzing clinical codes, and ultimately recovering inaccurate transactions in the complex environments of healthcare, workers’ compensation, and property & casualty markets. Equian acts on data to pay the right party, Gary Liter, President of the the right amount, at the right time Subrogation Division, further delivering over $2.5 billion annually offered, “As a result of our experts’ in actionable savings throughout deep dive, we found significant areas the payment spectrum. of improvement could be made Table of Contents

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NEWS

CARRIERS CONTINUE TO PROVIDE A BROAD RANGE OF BROKER SERVICES, FINDS

EASTBRIDGE’S LATEST REPORT

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VON, Conn., Jan. 17, 2019 (GLOBE NEWSWIRE) -- The most common sales and training broker services offered include local assistance closing a case, online commission statements and forms, continuing education, and online product and voluntary sales training, found Eastbridge’s Broker and Client Services for Voluntary Carriers Spotlight™ Report.

The Broker and Client Services for Voluntary Carriers report reviews the various broker services offered by voluntary carriers, both directly to brokers as well as those offered to brokers’ employer clients. “

In addition, the top enrollment broker services offered were enrollment communications for employers, test data feeds, custom enrollment materials, and product set-up on outside enrollment platforms. Prescreened enrollers/ enrollment companies, an online or laptop enrollment system, carrier-provided enrollers, and personal, prepopulated enrollment forms were offered by over half of the carriers surveyed.

The services provided by over half of carriers on behalf of brokers to their clients were online benefits or HRIS systems, core benefits enrollment and communication, and full benefits administration. Less than half of carriers offered important client services like consolidated billing, benefits statements, Section 125 documents, payroll administration services, FSA or HSA/HRA administration, highlighting opportunity for carriers to partner with 24

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third-party vendors already offering these capabilities. A few carriers provide additional services like onsite support to educate (but not enroll) employees about provided benefits, as well as support for enrollment and benefit administration partners who capture enrollment, inperson broker schools, benchmarking data for sales targeting, Family Medical Leave and ADA Administration, a college tuition benefit and travel assistance.

The Broker and Client Services for Voluntary Carriers report reviews the various broker services offered by voluntary carriers, both directly to brokers as well as those offered to brokers’ employer clients. With this information, carriers can assess the broker and client services they are currently offering and compare them to those of other carriers in the voluntary/worksite market. The report is currently available for purchase for $2,000. For additional information or to purchase the report, e-mail info@eastbridge.com or call (860) 676-9633. Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.

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AUTOMOTIVE NEWS applies brakes to avoid or lessen the severity of impact.

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AAA RECOMMENDS COMMON NAMING FOR ADVANCED DRIVER ASSISTANCE SYSTEMS (ADAS) TECHNOLOGY

PARKING ASSISTANCE

Fully-automated Parking Assistance Controls acceleration, braking, steering, and shifting during parking. May be capable of parallel and / or perpendicular parking. Remote Parking System parks vehicle without driver being physically present inside the vehicle. Automatically controls acceleration, braking, steering, and shifting. Semi-automated Parking Assistance approaches or crosses lane markers. Controls steering during parking. Driver Parking Obstruction Warning Detects obstructions in close proximity to responsible for acceleration, braking, and gear position. May be capable of parallel vehicle during parking maneuvers. and/or perpendicular parking. Pedestrian Detection Detects pedestrians in front of vehicle Surround View Camera Uses cameras located around vehicle to and alerts driver to their presence. present view of surroundings. Rear Cross Traffic Warning Detects vehicles approaching from side Trailer Assistance and rear of vehicles while traveling in System that assists driver during backing maneuvers reverse and alerts driver. with a trailer attached.

COLLISION MITIGATION Automatic Emergency Steering Detects potential collision and automatically controls steering to avoid or lessen the severity of impact. Forward Automatic Emergency Braking Detects potential collisions while traveling forward and automatically applies brakes to avoid or lessen the severity of impact. Reverse Automatic Emergency Braking Detects potential collision while traveling in reverse and automatically

FEBRUARY 2019

MISC. DRIVING AIDS Automatic High Beams Deactivates or orients headlamp beams automatically based on lighting, surroundings, and traffic. Driver Monitoring Monitors driver condition by various means to detect drowsiness or lack of attention. Night Vision A system that aids driver vision at night by projecting enhanced images on instrument cluster or heads-up display.

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“The Final Authority on Everything!”

ADVISOR

– turn the camera on its end! If you are taking a picture The Advisor has been known of a car – keep the camera to be politically incorrect and may send certain Millennials horizontal! More people turn scurrying to their safe space. good photographs into bad Please read at your own risk. snap-shots by failing to orient the camera than any other. If you take the normal mix of Expensive Camera photographs, about 70% of No Better Than your shots should be taken Phone Pics? with the camera turned on its an you give me some end. simple tips on improving my photography? I’ve just Second — move in on your bought a very expensive subject — fill the frame! Many Nikon digital camera mostly a great photo was turned to for underwriting photos but mediocre because the subject my personal pictures don’t look a whole lot more impressive than they did on my phone. I keep reading long articles on the subject, but I don’t seem to pick up anything useful. R.P., Orlando, FL

WARNING!

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ended up occupying about 10% of the photograph. You don’t need to get in as much as possible of the lake or the sky or the trees behind your subject. If you want picture of the lake, take another shot and make the lake the subject. Third, composition is important. When taking pictures of people, for example, most amateurs center the heads in the photo – leaving four feet of sky above the heads and cutting their bodies off at the knees.

First, notice how almost all cameras take rectangular pictures and not squares? That’s so you can accommodate vertical subjects as well as horizontal subjects. If you are taking a picture of a person standing up 26

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Determine what your actual subject is and generally include all of it in the photo. If you can’t fit the entire person in the photo, shoot from the waist up or do a portrait. If you’re posing a group shot, count to three before shooting to lesson the chance of closed eyes or odd faces. Try shooting from unusual angles for more interesting photos. Get down on one knee or stand on a chair.

The Rule of Thirds would dictate that you put your subject or action on one of the lines rather than dead center. Compose your picture from the background forward. Make certain you don’t have a telephone pole growing out of your subject’s head or a tree branch growing out of his ear. A good background should not subtract from your subject - assuming your main subject is in the foreground.

Advanced photographers try to follow the “Rule of Thirds.” Imagine your image with tic-tac-toe lines drawn over it, dividing it into thirds - vertically and horizontally.

Fourth, take more available light pictures (no flash), inside by a window, for example or in even lighting outside. Unless you have expensive equipment and can “bounce”

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flash off the ceiling, most flash pictures have a cold, washedout feel. The one exception is fill-flash, where you use your camera’s flash to supplement available light when your subject is in the shadows and the background is brightly lit. Lastly, take your camera, your owner’s manual and a cold drink - find a comfortable chair and learn every function and every capability of your machine. A recent study showed only 8% of homeowner-setup home theaters are properly wired. We’d bet the percentage of people who really take the time to learn their new digital camera is even less. www/underwritersinsider.com

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NEWS

GLYNN COUNTY, GEORGIA, COMMISSIONER AND HIS WIFE INDICTED FOR INSURANCE FRAUD

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Robert “Bob” Lamar Coleman, age 69, and his wife, Sherry Elaine Coleman, age 59

year-long investigation conducted by the Georgia State Board of Workers’ Compensation’s Enforcement Division was presented to the Glynn County Grand Jury today. The Grand Jury returned indictments against two long-time Brunswick insurance agents on multiple counts of insurance fraud.

The Colemans have been charged with defrauding customers who paid the pair for workers’ compensation insurance as well as other lines of insurance. The indictment handed down includes 10 (ten) separate victims. The case is still under active investigation and there is the possibility of additional victims and charges.

According to Enforcement Division Director, Stan Bexley, Robert “Bob” Lamar Coleman, age 69, and his wife, Sherry Elaine Coleman, age 59, were indicted on 15 (fifteen) felony counts of violation of the Georgia Insurance Code on Wednesday, January 9, 2019.

If any business owner has purchased workers’ compensation insurance through the Coleman Insurance Agency or if you are a general contractor that has received a certificate of insurance for workers’ compensation coverage from the Coleman

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Agency in the past two years, you are asked to contact the State Board of Workers’ Compensation’s Enforcement Division at (404) 657-7285 or (800) 533-0682. The Enforcement Division encourages anyone who receives a certificate of workers’ compensation insurance coverage to verify the certificate either by using the State Board’s website or by contacting the insurance company directly. All other lines of insurance coverage such as auto, home or general liability should be verified directly with the insurance carrier. FEBRUARY 2019


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NOTABLE QUOTABLES IN THE NEWS WITH COMMENTARY

SAY WHAT? Just Trying to Figure This Out...

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his column is trying to understand the current fad among Democratic state officeholders for enabling abortions right up until the moment of birth. Since the abortion market generally has been in historic decline and the demand for such procedures at the end of a pregnancy is extremely small, it’s as if politicos like New York Gov. Andrew Cuomo are determined to demonstrate a sort of ideological zealotry. Perhaps somewhere there is a misguided Republican seeking to affirm his love for the 2nd Amendment by supporting the purchase of bazookas without a background check, but it would hardly represent a strategy for winning elections.

Wall Street Journal reader Robert Middleton lampooning razor manufacturer Gillette for their recent controversial ad campaign lecturing male customers on their “toxic masculinity.” It is an unusual strategy and some pundits are predicting a big backlash...

Listening Alexandria Ocasio-Cortez?

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ere, in the United States, we are alarmed by new calls to adopt socialism in our country. America was founded on liberty and independence– -not government coercion, domination, and control. We are born free, and we will stay free. Tonight, we renew our resolve that America will Excerpt from a 2/2/19 Wall Street Journal Op/ never be a socialist Ed by a bemused, confused WSJ editor James country.” Freeman. President Donald J. Trump during Virtue Signaling - By Gillette his 2019 State of hen I’m looking for guidance the Union address in my life I always turn to a in front of both houses of congress making Dow 30 company. P&G (Gillette) the important point that socialism, beyond for my relationship with women. Goldman it’s inevitable economic destruction, would, Sachs for child rearing. Chevron for a mid- by it’s very intrusive nature, claw away at our life crisis. Walgreen’s for spiritual insights.” freedoms.

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Minister of Hate & Division

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Starbucks representative Reggie Borges as told to Business Insider early in February. Starbucks chairman Howard Schultz proclaimed, shortly before departing the company, in a fit of liberal apology over a claim that 3 Black men were denied the use of a restroom as non-customers, that Starbucks would allow everyone to use its rest rooms. It seems his former co-workers have been left with the mess.

et me tell you what’s gonna happen. Yes I’m after a separate state. A separate nation. In the 60s what was our cry? We weren’t saying we want to integrate, we More Mia Culpas from Pocahontas were saying ‘It’s nation time! told Chief Baker that I am sorry that Black Power!” I extended confusion about tribal Black Power to do what? To integrate a lunch citizenship and tribal sovereignty counter? Black Power to build a nation for 40 million – now near 50 million – black people.” and for harm caused. I am also sorry for not being more mindful Minister Louis Farrakhan, titular head of the of this decades ago. Nation of Islam, sometimes referred to as Tribes and only determine “Calypso Louie,” for his aborted musical career, tribes spewing his usual racism, hate and division tribal citizenship.” and claiming he’s for a “separate nation” for Black folks. Way to bring us all together, Louie. Presidential hopeful Senator Elizabeth (D-MA) Starbucks Paying For Stupid Policy? Warren continuing to make a fool of herself over a decades-long claim that tarbucks is installing boxes she was of Native American descent, apparently for safe disposal of syringes for whatever advantage she felt was conferred in the bathrooms of certain by the lie. Recently, a locations, following workers’ reports copy of her 1986 Texas of discarded needles and sometimes State Bar registration concerning conditions... “These societal clearly shows she issues affect us all and can sometimes place wrote in “American our partners (employees) Indian” as her race on in scary situations, which is the form, adding to why we have protocols and the controversy over her claims. Her stumbling resources in place to ensure apology tour is sucking the wind out of her our partners are out of harm’s presidential campaign. way.”

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BACK ISSUES

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BACK ISSUES

FEBRUARY 2019

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NEWS

CALIFORNIA REPORTS INSURED LOSSES FROM NOVEMBER 2018 WILDFIRES UP TO $11.4 BILLION—A 25 PERCENT INCREASE FROM INITIAL REPORT

Insurance Commissioner reports insured losses from November 2018 wildfires up to $11.4 billion—a 25% increase from initial report

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more than 5,000 survivors of the November fires. To the residents of Paradise, Butte, Malibu, Los Angeles and the other communities who have lost so much—we stand with you on the long road to recovery.”

ACRAMENTO, Calif. – Just two months ago, California experienced the most devastating wildfires in the last 100 years, destroying nearly an entire town and leaving 89 people dead and thousands homeless. Insurance Commissioner Ricardo Lara today announced that to date more than $11.4 billion in insured losses have been reported from the November 2018 fires. That number is up more than $2.3 billion from losses the Department reported in December—a 25 percent increase. More than 13,000 insured homes and businesses suffered a total loss out of more than 46,000 claims reported by insurers.

CA Insurance Commissioner Ricardo Lara

Department of Insurance staff have been onsite in all affected areas providing expertise and counsel to wildfire survivors and at Local Assistance and Disaster Recovery Centers in Northern and Southern California.

“Today, we have a clearer picture of the loss from the devastating Camp and Woolsey fires,” said Commissioner Lara. “The The Department also has intensive Department of Insurance is here workshops planned in the coming to help. To date we have assisted weeks to help the survivors of 34

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the November fires with their insurance needs. The Department deployed its law enforcement personnel to devastated communities in the aftermath of the fires to deter scam artists who might otherwise prey on vulnerable wildfire survivors. The Department’s enforcement team escorted homeowners and insurance claims adjusters through blocked roads and hazards to allow them to inspect more than 1,200 properties and expedite claims for property and auto losses—so people can get paid faster. “We have a lot to do to get ready for the next fire season,” said Commissioner Lara. “The Department of Insurance is committed to working tirelessly with our fellow agencies to ensure that we have a system in place that protects wildfire survivors, prevents wildfires, and preserves our state.”

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NEWS

FLORIDA: SCAMMERS ARRESTED IN $2.8 MILLION DENTAL INSURANCE FRAUD

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IAMI – Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Renate Manns, owner of International Dental Group, Inc., along with five associates in an alleged $2.8 million insurance fraud scheme based in MiamiDade County. CFO Jimmy Patronis said, “Let me be clear: If you commit fraud in Florida, you will be caught and you will be thrown in jail. I am continuing my fight against

Continued From Page 12

NEW CA INSURANCE COMMISSIONER PLEDGES EXPANDED AGENDA

fraud to protect Floridians from skyrocketing insurance premiums.” CFO Patronis’ fraud Investigators discovered Manns originally employed six licensed dentists at her practice. Once the dentists left the practice, Manns allegedly used their names and license information to bill insurance companies for fraudulent dental treatments between 2014 and 2017. One license used in the scheme belonged to a dentist who passed away in November 2013.

fight against extreme disasters linked to climate change. We need bold action to ensure our communities adapt and are resilient to this new reality. There is no other industry that has the necessary expertise to ensure that California is prepared to mitigate and reduce risk to our communities and environment. Our planet can’t wait. I am ready, and I hope you are too.”

Manns was arrested on January 29, along with four of her associates: Raquel Soca, Blanca Nieves Bermudez, Carmen Elena Perez and her husband Danilo Alain Perez for their involvement in the fraud scheme. On January 31, the fifth associate Macia Rocio turned herself over to law enforcement for her involvement. All participants face multiple charges including identity theft, organized fraud, insurance fraud, and grand theft.

As Senator, he won healthcare for more than 250,000 California children and introduced universal healthcare legislation. Commissioner Lara said he would work with the new administration of Governor Gavin Newsom to expand access to healthcare.

He’s Excited

“ToGovernorNewsom—Iamexcited to be your partner in expanding A career politician, Commissioner affordable healthcare for every environmental and industry Lara was first elected to the Californian,” said Commissioner Lara. leaders on innovative solutions California State Legislature in “There is nothing we cannot achieve 2010 and represented the 33rd to the risk of climate change. with our new common agenda. We Senate District from 2012 to stand ready for your California4All “To the insurance industry 2018. vision.” — I ask you to join me in this FEBRUARY 2019

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TECHNOLOGY Pros: Roku can access apps from almost every content provider on the market (except for Apple and iTunes). This connectivity alone is one reason Roku remains the most popular brand in streaming content. It also has the cleanest players. That, and they continue and smoothest interface among to add premium channels to their the lot, delivering a minimal but offerings. Roku has apps for Netflix, polished experience all around. YouTube, Google Play Movies, Amazon Prime Video, Vudu, Hulu, The system is already connected Plex, HBO, DirecTV Now and Sling to iTunes, but you also have access TV. (So far, no AT&T Watch TV app, to all the essentials like Netflix, but that may change). YouTube, Amazon Prime Video, Vudu, Hulu, Plex, HBO, DirecTV Roku also handles hundreds of Now, AT&T Watch TV and Sling TV. third-party video apps that offer If you already own digital movies free movies and TV shows. If you across multiple services, they can want to access the most content all be synced via Movies Anywhere. from various services available, then the Roku is the one for you. Even if you don’t have a 4K TV yet, The Roku Ultra supports 4K, HDR I recommend picking the Apple TV and Dolby Atmos, the device is 4K over the 4th-gen Apple TV. For even bundled with a pair of JBL just $30 more, you’re pretty much earphones. You can connect these future-proofing your system for earphones to the Roku remote, the inevitable 4K TV you’re going giving you wireless audio. to get down the road. Continued From Page 5

KIM KOMANDO

Cons: True to Apple’s reputation, these devices are relatively expensive. The latest Roku and Amazon Fire TV boxes are capable of streaming 4K, and they cost far less. The included Siri touch remote can also be clunky and unwieldy. There aren’t many benefits if you’re not already invested in Apple products. Price: $179 for 32GB, $199 for 64GB

2. Roku Ultra 36

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Pros: The Cube is the latest product to emerge from the Amazon Fire line, and if you want to expand your voice-controlled smart home, this is the device you want. The Fire TV Cube has built-in Alexa functions, which means you can dim your smart bulbs, control your smart appliances, ask questions, set timers – pretty much anything a regular Amazon Echo can do. You can also use your voice to search, play, pause, fast-forward and handle all the things you would typically do with a remote. If your TV is compatible with HDMICEC, you can switch it on or off and adjust its volume. But don’t worry if you have an older TV; the Cube has a built-in IR transmitter, so you can use the device as a universal remote and control almost any TV by using your voice.

The Cube can also connect to your Echo Show, mirroring its Cons: The only real downside small display on your big screen. to Roku is its interface, and that With an Alexa voice command, includes the Roku Ultra: The the Cube can provide you with controls can be slow at times, the detailed weather forecasts, display graphics look dated. Additionally, lyrics to songs and show you live Roku is paring away its third- video feeds from Alexa-compatible party apps. Since they update security cameras. apps automatically, some of your installed apps may be deactivated Amazon favors its own content without prior warning. on Fire TV, but you can also access apps like Netflix, Vudu, Hulu, Plex, Price: $99 HBO, DirecTV Now, AT&T Watch TV and Sling TV. For video, the Fire TV

3. Amazon Fire TV Cube

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INSURANCE & THE LAW Continued From Page 7

ZALMA

to notify it prior to settlement, regardless of whether that provision is statutory or contractual. To hold otherwise would lead to an untenable result.

There is no question in this case that Spalding had a policy containing uninsured motorist coverage. Regardless of whether the notice requirement was contractual or statutory, we cannot conclude that Spalding should be penalized for the failure to fulfill a requirement that she was unaware was applicable to her. As the trial court noted, Spalding could not The Insurer, through the agent, have given the required notice did not make a coverage where the underlying existence determination and decline of a UIM policy was denied or coverage or fail to act. However, misstated. the effect of the alleged the specific facts misstatement of coverage, if Under indeed such occurred, had the presented herein, the court of same result as it essentially led appeal believed it would be George to believe there was no unjust to hold as a matter of other insurance coverage and law that Spalding is precluded that he needed to go ahead from recovering UIM benefits. and settle Spaldings claim with That is not to say that a jury could not find that the oversight Robinson. in informing lawyer George Where an insurer has initially of another policy contributed denied coverage, whether the to the failure to provide the denial is based upon an erroneous required notice. Indeed, the coverage determination or, as appellate court believed that in this case, a misrepresentation is yet another factual issue that that a policy providing coverage should have precluded summary even exists, the insurer cannot be judgment. As a result the case allowed to subsequently assert a was returned to the trial court to defense to liability based upon a take the case to trial. provision requiring the insured Although not specifically addressed in Kentucky with respect to UIM coverage, a multitude of jurisdictions have held that an insurer, through action or inaction, can waive or be estopped from asserting a defense to liability under the policy based upon the insureds unauthorized settlement with a third-party tortfeasor.

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ZALMA OPINION Summary judgment often resolves a case quickly. However, if not properly granted, it causes unnecessary delay and expense. In this case summary judgment decisions were reversed twice and the case must go to trial. The problems would have been avoided had the insured, her lawyer and her agent had properly obtained the coverages available and not relied on the plaintiff who suffered from dementia to reach a quick settlement. Counsel, plaintiff, the agent and the insurer were abused by a failure to properly advise everyone who insured the risk faced by the injured party.

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NEWS

FLORIDA ANNOUNCES ARREST OF MIAMI-DADE CLINIC OWNERS FOR STEALING OVER $45,000 IN STAGED ACCIDENT SCHEME

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IAMI, Fla.– Chief Financial Officer (CFO) Jimmy Patronis announced the arrests of Pedro Sanchez, Jorge Enrique Martinez, Ivelis Garcia, Yanisbel Rodriguez Ocana and Victor Manuel Meneses Salina after their alleged involvement in orchestrating and executing a car accident scheme to exploit personal injury protection (PIP) benefits by filing fraudulent insurance claims. CFO Jimmy Patronis said, “Committing fraud for personal gain is appalling and raises insurance premiums for hardworking Floridians. My office will continue to hold scam artists accountable and send them to jail.” On May 19, 2017, CFO Patronis’ Bureau of Insurance Fraud Investigators discovered that clinic owners Pedro Sanchez, of Sanchez Therapy Center, and Jorge Enrique Martinez, of Hialeah Quality Diagnostics, offered to pay participants, Yanisbel Rodriguez Ocana and 38

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Victor Manuel Meneses Salina for their involvement in a car crash as a part of a PIP fraud scheme. Once the staged accident occurred, the police were called to the scene and a crash report was generated. Days after the staged accident occurred, the participants went to Sanchez and Martinez clinics acting as injured accident victims to receive treatment. Garcia, office manager of Quality Diagnostics, coached the participants on what to say to the insurance company regarding any therapy services. Garcia also provided the participants with blank therapy treatment forms to sign when no therapy services were ever provided by the clinics. Both clinics submitted fraudulent billing on behalf of the participants to United Auto Insurance Company and GEICO Insurance Company totaling $85,631 of which $45,145 was paid by the insurance companies. Table of Contents

Sanchez, Ocana and Salina were arrested on January 11, and Martinez and Garcia surrendered to law enforcement at Turner Guilford Knight Correctional Center on January 15. All parties face charges of staged accident, insurance fraud, false claims, grand theft, organized scheme to defraud and patient brokering. If convicted, they face up to 15 years in prison.

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NEWS

FORMER TEXAS AGENT INDICTED IN LIFE INSURANCE SCAM

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ormer Texas insurance agent Chia Wang is facing up to 99 years in prison and up to a $10,000 fine after a grand jury in Marion County indicted him this week for selling a fake life insurance policy to an 87-year-old woman. Wang provided fake documents, convincing the woman that she had purchased a $400,000 life

insurance policy. He went on to collect more than $192,000 in payments from her over two years.

The woman found out she never had a policy when she called the insurance company to ask if she had missed a payment. She had already written nine checks to “It’s a very sad story,” said TDI Wang. Fraud Chief Chris Davis. “The victim thought she was being Wang is accused of theft and responsible, taking care of her misapplication of fiduciary affairs, and instead someone was property. Both offenses were stealing a large portion of her life enhanced to first-degree felonies savings.” because of the victim’s age.

COMMISSIONER DAVID ALTMAIER, FLORIDA OFFICE OF INSURANCE REGULATION, ELECTED NAIC VICE PRESIDENT

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ASHINGTON (Feb. 4, 2019) — The National Association of Insurance Commissioners (NAIC) members elected Florida Insurance Commissioner David Altmaier on Sunday to fill the vacant position of the office of Vice President effective immediately. Altmaier joins other 2019 NAIC Officers including: NAIC President and Maine Insurance Superintendent Eric A. Cioppa, NAIC President-Elect and South Carolina Director of Insurance Raymond G. Farmer, and Secretary-Treasurer and FEBRUARY 2019

Idaho Insurance Commissioner Dean L. Cameron. Commissioner Altmaier was appointed as Florida’s Insurance Commissioner by the Financial Services Commission and leads a 292-member team at the Florida Office of Insurance Regulation, overseeing a complex insurance marketplace in a state with one of the highest catastrophe exposures for hurricanes. In addition to Commissioner Altmaier’s new role, he will remain in his capacity as Florida’s Table of Contents

Insurance Commissioner.

About the NAIC The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. www/underwritersinsider.com

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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

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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. 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 out to cover your news story. FEBRUARY 2019


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.

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 8. About (Your Company) your piece, (remember, I It’s good to include a short charge for advertising) but “About ABC Company” at just as important, it will lack the end of your PR. Keep it credibility to the readers if it short and within the word just looks like a puff piece. limit for the entire piece. It’s okay to sound enthused Include contact info for about the topic and your “further information.” company, but the ideal PR 9. Make certain to place a will look as if your company copy of each PR on your made the news because of company website under some newsworthy event. your NEWS tab. The practice 6. Give me at least one quote, will make your site more e.g. “Frank’s extensive relevant to search engines experience in restaurant and more valuable to risks will bring a new depth visitors. to our commercial insurance department,” said John ow that you’ve created Smith, CEO... the perfect press 7. If appropriate, include release, where should an image, especially if you send it? the PR involves personnel or a mention or quote

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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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TECHNOLOGY Continued From Page 36

KIM KOMANDO

Cube has support for 4K content, HDR, Dolby Atmos. If you already have an Amazon Fire, don’t miss these 5 insider tricks to getting the most out of it. Cons: Like its apps, Amazon’s Fire TV interface is cluttered, filled with promoted content and is a pain to navigate. Alexa Fire TV integration is still occasionally frustrating and voice controlling a TV through the Fire TV Cube can be painfully slow.

streaming box like the others. Chromecast doesn’t come with its own remote; instead, you use your smartphone to find compatible apps like Netflix, Hulu, HBO Now, Sling TV, Plex and Vudu straight to your TV.

With the Nvidia Shield’s two USB ports, you can connect a compatible USB TV antenna and watch and Better yet, you can also integrate record live TV with it. If you’re Chromecasts with the Google looking for the best 4K hardware Home, and with HDMI-CEC available, but you’re not locked into compatible TVs, you can have Apple’s ecosystem, then the Nvidia usable (but limited) hands-free Shield is worth a look. voice control. The Chromecast Ultra can cast 4K and HDR content, as Cons: At $180, the Shield is pricier well. At $70, it’s one of the cheapest than most others, and it gets even pricier if you get add-ons like a streaming gadgets on the market. gaming controller and extra storage. Cons: Again, there no actual If you’re not an avid Android gamer, physical remote. You will always then the cheaper streaming boxes depend on your smartphone or are better buys. The Nvidia Shield, tablet to operate it. Not all content excellent streamer as it is, can be can be cast (notably Amazon and overkill. iTunes).

Price: $69 Also, despite the many apps available, Amazon Fire products can’t access YouTube, which is 5. Nvidia Shield becoming an ever-greater loss. Pros: The Nvidia Shield is the clear outlier because it was originally designed as an Android gaming 4. Chromecast Ultra gadget. Still, the Shield can stream Pros: If you’ve ever owned a all kinds of entertainment, and the Chromecast, you’ll know that they device has excellent hardware, can be extra useful around the which can output 4K, HDR and house. With this unobtrusive little Dolby Atmos. gadget, you can cast or stream content from your iOS or Android Because the Shield runs on Android smartphone or Chrome browser TV, you can access almost every to your TV. You can even cast your popular streaming service, such as whole desktop if you want to. Netflix, Hulu, HBO, Vudu, Plex and Amazon Video. The Shield can also However, it’s not a traditional act as a second Chromecast in your 42

The Underwriter’s Insider

home, enabling you to cast content and mirror your Chrome sessions. You can even integrate the device with Google Home.

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Copyright 2019, WestStar Multimedia Entertainment. All rights reserved. Learn about all the latest technology on the Kim Komando Show, the nation’s 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 FEBRUARY 2019


NEWS Continued From Page 21

interruption and its associated costs”.

GLOBAL RANSOMWARE ATTACK COULD COST BUSINESSES ALMOST $200BN

Andrew Mahony, Regional Director for Aon, added: “The global WannaCry and NotPetya events of 2017 alerted organisations to their potential susceptibility to widespread cyberattacks. There remains, however, a reluctance to move forward with the necessary a more resilient society in the risk prevention and transfer future.” measures without a clear picture of the financial impact such an Elizabeth Geary, Global Head attack might cause. The Bashe of Cyber at TransRe, said “This report addresses this issue, research highlights the need to demonstrating with precision pay close attention to systemic risk how an attack unfolds and how across all lines of business, not just it affects insureds and insurers. within the cyber tower. Malware The report sets the standard that respects no boundaries, whether organisations should aspire to geographic, industrial or legal. when assessing their own cyber exposure.” As companies increase their reliance on technology, it is Sébastien Heon, Deputy Chief essential they increase their Underwriter Officer, Cyber defences against challenges such Solutions at SCOR said: “We are as malware, and effective cyber delighted to contribute to the insurance is a critical component Bashe report, which expands the of that defence. knowledge and understanding Similarly, the insurance industry must also acknowledge and appreciate the potential for systemic risk, in addition to monitoring loss frequency and severity. This report seeks to quantify that systemic economic and insured impact. It represents an important step forward in our understanding, and provides a benchmark for business FEBRUARY 2019

of widespread Cyber events – particularly exposure to Business Interruption as experienced during real-life incidents such as NotPetya and WannaCry. This report has brought together a multidisciplinary team of academic and (re)insurance industry experts from across the world, thereby providing a global view of cyber risk.” Table of Contents

Rent This Space! Want Your 1/3 Page Message To Hit Over 120,000 Industry E-Mails Per Month For As Little As $129.00? View Rate Card Here! Request More Info Here! www/underwritersinsider.com

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2018 FAIA CONVENTION TRADE FAIR BOOTH IMAGES NOW ONLINE!

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ne of the biggest insurance events held each year in Florida is the Florida Association of Independent Agents (FAIA) Convention. This year was the 114th annual convention, making it not only one of the largest, but one of the longest running events in US insurance history.

We tried to get a shot of every booth, but frankly ran out of time. The trade fair is huge, with hundreds of exhibitors. Next year we may bring two photograpers, each starting at opposite ends and working towards the center. We sadly experienced some equipment issues this year as our preferred lens for such an event, a Nikon 18-300mm had taken a fairly stiff smack as it slipped out of it’s carry bag and hit the floor just as we were to begin shooting. Although it was not obvious on the camera’s (Nikon D-500) LCD screen, just about all the images taken at 50mm or wider were somewhat out of focus - some badly. Oddly, the closeups were fine. So there will be a trip to the repair shop for the lens and we will be more careful next year...

Click On The Image Below To View Booth Images

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2018 LAAIA CONVENTION TRADE FAIR BOOTH IMAGES NOW ONLINE!

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he largest insurance trade fair in S. Florida, the Latin American Association of Insurance Agents pulled off another incredible event with their 47th annual convention and trade fair this August. This time no camera equipment issues and had time to shoot every booth.

Click On The Image Below To View Booth Images

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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!

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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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FEBRUARY 2019


NEW INSURANCE CLAIMS BOOKS BY BARRY ZALMA The Making of an Insurance Claims Professional

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t is the insurance claims person - the adjuster - who meets with the person insured and works to keep the promises made by the insurance policy. The adjuster cannot, however, help the insurer keep the promises made unless he or she understands insurance, insurance claims, the types of claims presented and the law surrounding insurance and insurance claims. For the minimal cost of a paperback or Kindle book every insurer can place in the hands of their claims people information that will help them become professional, well trained, thoroughly educated claims professionals who are able to read and understand every insurance policy so that he or she is able to keep the promises made by the insurance policy. Read about these and many more insurance books by Barry Zalma at http://zalma.com/zalma-books/

• Construction Defects and Insurance • Zalma on Insurance Claims • Zalma on Insurance Claims Volume 101 • Zalma on Insurance Claims Part 102 • Zalma on Insurance Claims Part 103 • Zalma on Insurance Claims Part 104

• Zalma on Insurance Claims Part 105 • Zalma on Insurance Claims Part 106 • Zalma on Insurance Claims Part 107 • Zalma on Insurance Claims Part 108 • Zalma on Insurance Claims Part 109 • Zalma on Insurance Claims Part 110

VISIT ZALMA BOOKS NOW!

FEBRUARY 2019

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