The Underwriter's Insider April 2020 by The Underwriter's Insider

INSURANCE • BUSINESS • POLITICS • TECHNOLOGY

APRIL 2020 • VOL 16 • ISSUE 4

IN THIS ISSUE APRIL 2020 VOL 16 ISSUE 4

You’re About to Get Paid - Find Out How Much Covid-19 Stimulus Money You’re Entitled To

Boat Owners Take Note: Even “All Risk” Insured Must Prove Loss Was Fortuitous

Investing: It’s Not 2008 All Over Again!

Report: Is It Safe to Travel? AAA Offers Travelers Advice Amid Coronavirus Concerns

Covid-19 Vs. Small Business - How To Win The War

California Goes To War Against “Misleading Health Plans” Known as “Health Care Sharing Ministries”

CA Demands Data On Covoid-19 Business Interruption From Industry • Coronavirus Contagious Long Before Symptom s

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AdMax Internet Publishing Offers Solution To Covid-19 Corporate Isolation!

Lloyd’s: Balance Sheet, Capital Management & Solvency In Strong Position To Respond To Covid-19

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Direct Physical Loss Required To Trigger Most Business Interruption Claims • Bill Intro’d In NY To Force Industry To Pay • Shameful Stimulus Pork Exposed

Florida Announces $74,000 Workers’ Comp Premium Fraud Arrest in Miami

NAIC Releases 2019 Market Share Data On Flie/Fraternal & Property/Casualty

One Life + Your Voice = HOPE Volunteers Needed For Guardian Ad Litem Programs

Blue Origin Testing BE-4 Engine In Huntsville, AL

Tennessee DOI Offers Timely Advice On Avoiding Covid-19 Schemes

Putting Covid-19 In Perspective - And Why That May Not Be Happening

How (And Why) To Write A Press Release

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

PAGE 8 - MATT TRESKOVICH:

Report: Pg 12

RELAX: THIS IS NOT 2008!

Is It Safe To Travel? AAA Offers Travelers Advice Amid Coronavirus Concerns

INSURANCE AND THE LAW PAGE SIX

PUBLISH YOUR OWN COMPANY INTERNET MAGAZINE!

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

PG 38 FEATURES 5 6 8 10

Kim Komando

Breaking News

28 30

Insider Advisor

Back Issues

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

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Barry Zalma Matt Treskovitch Advertise

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APRIL 2020 INSURANCE - BUSINESS - POLITICS - TECHNOLOGY 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

YOU’RE ABOUT TO GET PAID – FIND OUT HOW MUCH CORONAVIRUS STIMULUS MONEY YOU’RE ENTITLED TO

Really Cool Tech Info - From Kim Komando the hopes of keeping the economy from spiraling deeper into uncharted territory. Tap or click to see what it’s like for workers like Uber drivers during COVID-19.

he economic fallout of the coronavirus pandemic could be with us long after the spread of the virus wanes. In just a few short weeks, millions of workers filed for unemployment as vital industries came crashing to a halt.

Among the bill’s many provisions, the most notable to ordinary Americans will be the unemployment expansion and stimulus check sections, which pledge additional funds for unemployed workers and direct cash to taxpayers up to $1,200 for adults and $500 for children under 17.

Many of the businesses that endured the initial impact have taken drastic steps to survive, such as cutting hours and staff, or moving all employees to work remotely. Tap or click here to see 5 essential tips to master working from home. But in a show of bipartisanship, the United States government crafted a relief package to rescue businesses and workers. Central among its promises are stimulus check for millions of eligible taxpayers. Here’s how you can find out how much you qualify for.

The biggest rescue package in American history APRIL 2020

On March 27, President Donald Trump signed a historic $2 trillion dollar stimulus bill that would provide financial support to millions of businesses and individuals affected by the coronavirus pandemic. In addition to ordinary workers, some of the largest industries and employment sectors in the country will see bailouts in Table of Contents

The payments are based on tax returns filed for the 2019 and 2018 tax years, with payments being phased out for high income individuals making $99,000 or more per year. Married couples will receive checks up to $2,400, with payments being phased out for couples making over $150,000 per year.

See Kim Komando Pg 36 www/underwritersinsider.com

CLAIMS & THE LAW

“All-Risk” is not Synonymous with “All Loss.”

he District Court granted summary judgment in favor of the insurance company after a yacht sunk in calm waters at its dock because the yacht’s owners, Mr. and Mrs. Inganamort, did not carry their burden of proving that the loss was a matter of chance, “fortuitous,” in the argot of insurance, which is a requirement for coverage under the all-risk insurance policy the Inganamorts had. In Chartis Property Casualty Company v. John Inganamort; Joan Inganamort, No. 19-1903,

United States Court Of Appeals For The Third Circuit (March 24, 2020) the Third Circuit was asked to reverse because the yacht sank because of heavy rain.

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BACKGROUND

insurance company, Chartis Property Casualty Company, with whom they had an all-risk policy. Chartis sent a claims specialist to conduct a preliminary survey of the vessel. The specialist reported three inches of standing water in the starboard forward cabin bilge and multiple potential sources of water ingress, including a hole in the hull the size of a screw. He also found that the electrical breakers were “severely rust-stained and blackened from an electrical failure[,]” and subsequent testing “revealed obvious water intrusion[.]” The final review of the vessel confirmed the claim specialist’s initial findings and also identified that the ship’s battery charger was not working, and without a source of power, the ship’s bilge pumps had ceased functioning.

John and Joan Inganamort left their 65-foot fishing vessel, Three Times A Lady, docked behind their part-time residence in Boca Raton, Florida. In September 2011, when they were at their home in New Jersey, the Inganamorts received the sad news that Three Times A Lady had sunk enough to sustain serious damage. They reported the loss to their Chartis filed a complaint in the

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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United States District Court seeking a declaratory judgment that Chartis was not liable for the damage to Three Times A Lady. No one disputed that an insurance policy was in place at the time of the loss, so the question was whether the vessel’s partial submersion was a loss of the kind covered by an all-risk policy, specifically, whether it was a fortuitous loss. The Inganamorts neither filed a statement of undisputed facts nor opposed Chartis’s statement of undisputed facts. In further consequence, the District Court granted summary judgment for Chartis because the Inganamorts “ha[d] no evidence to demonstrate a fortuitous loss[.]”

DISCUSSION Every circuit who was asked to decide the issue has determined that the insured bears that burden to prove a loss was fortuitous and the Third Circuit concluded that the Inganamorts did not carry it. When Three Times A Lady sank, it was covered by an all-risk insurance policy, which protects against fortuitous losses, meaning losses that are unexplainable or “dependent on chance.” Just because an insured need not show the precise cause of loss to demonstrate fortuity, that does not mean an all-risk policy covers all damage. “All-risk” is not synonymous with “all loss.” Despite the Inganamorts’ APRIL 2020

argument, an insured must do more than prove that there was a loss. To enjoy coverage, the insured must prove that the loss was indeed fortuitous.

The Third Circuit joined its sister circuits in saying that, under a maritime all-risk policy, the insured bears the burden of proving that a loss was fortuitous. That burden is not heavy nor is it onerous.“ The Third Circuit joined its sister circuits in saying that, under a maritime all-risk policy, the insured bears the burden of proving that a loss was fortuitous. That burden is not heavy nor is it onerous. When a vessel sinks in calm waters, however, an insured may create a presumption of fortuitous loss by establishing that the vessel was seaworthy before sinking. While the Inganamorts had initially claimed that the ship was seaworthy prior to the discovery of the loss nor did they press this argument before the District Court or on appeal. Because there Table of Contents

is nothing in the record to support the argument that the loss was due to heavy rainfall and there is no other indication of fortuity, the Inganamorts did not carry their burden of proving a fortuitous loss. The Third Circuit, feeling creative, noted that “Poems and books get written, songs sung, and movies made about sinking ships. But there’s nothing stirring or aweinspiring about a yacht that partially sinks in calm waters while docked. That, sadly, is the event at the center of this case.” Since Mr. and Mrs. Inganamort did not carry their burden of proving that the loss was a matter of chance the Third Circuit affirmed the judgment of the District Court

ZALMA OPINION Yachts, like the Three Times A Lady are abused by their owners who fail to keep them seaworthy. The work of the claims expert’s survey revealed that the yacht did not sink as a matter of chance but was in such bad condition before the sinking that there bilges did not work, the electricity was not available, and the parts of the Three Times A Lady that protected it against water intrusion and sinking while docked in good weather, were not available. The loss, therefore, was not fortuitous. Rather, it was certain, since it was not even seaworthy enough to stay safe while docked in good weather. www/underwritersinsider.com

ANALYSIS - FINANCIAL

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

fter enduring the largest decline the stock market has seen in a decade, many investors are wondering if 2008 is happening all over again. Turmoil in the stock market has brought back fearful emotions that many investors haven’t felt in years. Although in some ways it may feel like 2008, our present situation is actually very different. The seeds of the great financial 8

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Investors who try to time the market usually end up selling low and buying high. Wise investors know the best way to build wealth is to own great companies, and to continue to own them when others are afraid.” Table of Contents

crisis began years before the crisis came. Headed into 2008, there were bubbles in housing and construction. Weak regulation of banking and lending left the financial system vulnerable. When the housing bubble burst, it caused unemployment in those parts of the economy and created big problems for the banking system. Many of those unemployed workers were forced to find employment in new occupations.

APRIL 2020

“InvestmentZen”Credit: www.investmentzen.com

IT’S NOT 2008 ALL OVER AGAIN

The Fed is also creating innovative new tools to help parts of the economy that weren’t reached by its measures in 2008. The Main Street Business Lending Program is one example of new programs by Federal Reserve to help small businesses. Heading into the current crisis, there were no obvious bubbles in the economy. Banking regulations are much stronger than they were before the great financial crisis. The banking system was in very good financial condition when the current crisis began. Once this crisis passes, the vast majority of people who are out of work today will be able to go back to their occupations. Policymakers were slow to respond as the 2008 crisis developed. The 2008 stimulus bill was about

$150 billion dollars, much less than the $1.5 trillion Congress is expected to approve this week. It took the better part of a year for policymakers to understand the size of the economy was facing. In contrast, the policy response today has been both rapid and massive. The Federal Reserve has been quick to re-deploy many of the tools used in 2008. Unlike 2008, these programs were launched within weeks of the crisis starting, not months or years later.

These measures are unprecedented in both their speed and scale. What will happen in the next few weeks is uncertain, but we already know what will happen in the long run. The US economy will survive! American businesses are rising to meet the challenge of defeating COVID-19, just as they have every

See Treskovich Pg 25

About 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.

APRIL 2020

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BUSINESS ATTORNEY • Mergers & Acquisition • Corporate Setup • Landlord Leases • Startups • Trade Secrets • Business Plans • Enterprise Development • Non-Compete Agreements

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Legal Representation In Florida Member of Florida Bar (1971) Business Development Services Available In All Venues 1615 Forum Place Barristers Bldg. • Suite 500 W. Palm Beach • Florida 33401 561.439.6100 • Crenlaw.com APRIL 2020

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Phillip T. Crenshaw, Esq.

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REPORT - AAA

RLANDO, Fla. (March 5, 2020) – With new coronavirus cases being announced every day, Americans with spring break excursions, upcoming business trips or those thinking about summer travel have one thing on their mind: Should I travel? AAA can’t make that decision for its members, but is providing information on travel safety and insurance to help travelers make the decision that is right for them.

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“Research is important to any traveler ahead of a trip. It’s no different with the coronavirus,” said Paula Twidale, senior vice president, AAA Travel. “Become familiar with the Center for Disease Control’s recommendations, consult your healthcare professional, talk to your travel provider about waiver policies and chat with a travel agent about travel insurance possibilities before making any decision.”

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Travel – Is it still safe? Travelers should heed all official advisories, including the latest guidance from CDC and the State Department. This includes travelers, particularly those with underlying health conditions, defer cruise ship travel at this time. Traveling anywhere else is a personal decision you have to make based on all facts available. First and foremost, if you are feeling sick, don’t travel. Even if you are not sick, talk to your health APRIL 2020

IS IT SAFE TO TRAVEL? AAA OFFERS TRAVELERS ADVICE AMID CORONAVIRUS CONCERNS

care provider about their medical recommendations, especially as it may relate to your age and personal health. Contact your travel agent or travel provider to understand options available to you to postpone or reschedule any planned trips. “AAA travel counselors are knowledgeable, caring and available to assist members if they have questions or concerns about cruises or other travel,” said Twidale.

At the top of your packing list, AAA recommends that travelers pack an alcohol-based hand sanitizer with at least 60% alcohol

U.S. citizens who have been in China in the preceding 14 days who attempt to return to the United States will be redirected to one of 11 designated U.S. airports and undergo enhanced health screenings by CDC staff for fever, cough and shortness of breath. Travel Insurance – Does it cover the coronavirus?

Travel insurance generally excludes epidemics. If you have a trip already booked, check with your travel providers (cruise line, airline, hotel, etc.) to see what waivers they have put in place.“

and disinfecting wipes. Pack any extra supplies you may Quarantine – What is the likelihood need, including additional doses I could be quarantined if I travel? of medication, in the event your return trip is delayed. Know the nearest location of and If you choose to contact information for the U.S. take that trip: embassy or consulate. Also, enroll Travel with all necessary travel in the State Department’s Smart documentation, including health Traveler Enrollment Program insurance cards. (STEP), so you can be reached APRIL 2020

if the situation changes while abroad.

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Coverage options can vary widely. If you purchased travel insurance before the coronavirus was recognized as an epidemic, your policy likely provides at least some level of protection. Customers who purchased “cancel anytime” or “cancel for any reason” insurance prior to February 3, when coronavirus was recognized See Safe To Travel? Page 26

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ANALYSIS - TAX CONSIDERATIONS

COVID-19 VS. SMALL BUSINESS By Denver Burdette

hile these are certainly challenging times with the safety and health of all citizens of paramount importance, we should consider that a major part of the financial health of many rests with our local small businesses. Some facts to consider; out of 28.7 million businesses in the United States, 99% are considered small business. 88% of small businesses employee fewer than 20 employees. 40% of small business owners have less than $100,000 to get through emergencies.

I would submit that these small In the meanwhile, small business businesses are our local heroes tax obligations continue. Yes, and the backbone of the towns the payment of income we call home. They serve our local tax liability has been communities willingly, their owners extended to July of and employees are often underpaid, 2020. For those unappreciated and their contribution making quarterly is too often unrecognized. tax deposits, the hardship of loss Yes it’s true that small business of income from owners are being encouraged to your business is apply for SBA loans. This can take compounded. up to 3 months for approval and obviously results in an obligation to service more debt. Some are anxiously awaiting new legislation to provide relief for small business. If and when that is achieved, it will take time for that to filter down to those who need it most.

But what if you could achieve a reduction or even elimination of taxes due? There is a federal incentive program for commercial property owners that

bout the author: Denver has been a resident of south Florida

since 1973. He and his wife Karen moved to Wellington in 1994 and continue to call the western community their home. Denver has served as a member of the following groups: Talk of the Town Toastmasters (board member), Palms West Chamber of Commerce, Wellington Chamber of Commerce, Rotary Club of Wellington, LeTip business networking group (membership chair) and West Palm Beach Business Referral Club. From 1987 to 2010, Denver’s insurance agency served the insurance and financial services needs of south Florida high net worth retirees. Denver and his wife have been part time real estate investors since the early 2000’s and are still active today in purchasing as well as brokering non performing real estate loans. Vacant land is also part of their investment focus. Denver and D.H. Burdette & Associates, Inc. are independent advisors for Stryde Solutions, LLC of Fenton, Mi. He is currently 1 of 500 advisors nationwide for Stryde that focus on helping business owners increase cash flow, improve their bottom line, and ultimately increase the value of their business. Since 2004 Stryde and it’s advisors have identified over $4 billion in benefits for business clients. 14

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has been around for years. And yet it’s widely under utilized and often unrecognized. For restaurants, car dealers, funeral homes, hotels, and manufacturers that own commercial property, 95% nationwide have not taken advantage of cost segregation. Especially in hard times this can result in a significant c a p i t a l infusion for businesses that are struggling. Cost segregation can result in substantial reduction if not elimination of taxes due. And obviously every dollar not paid in taxes, could now be used to fund the emergency your business is facing. Cost segregation will require an engineering study to generate a feasibility study. This study will be submitted to the Internal Revenue Service to prove your case. This is simply accelerated depreciation on component parts of your property. Our firm will arrange for the study to be completed at our cost. In addition to the feasibility study, clients will receive an audit defense report. Since 2004 we have not had a cost segregation APRIL 2020

submission questioned by the IRS. For those business owners who are experiencing loss of income, possibility of laying off employees, and questioning their ability to keep the doors open, I encourage you to call me to discuss details to determine if cost segregation is an appropriate tool to provide emergency relief for your business.

FREE!

FREE INSIDER

To observe social distancing in these trying times, free demonstrations with our proprietary software to project benefits for your business can be done online via screen share. Feel free to contact me at 561798-5559 or 561-379-4729(cell). Extended business hours are now 8:30a.m. to 6:00p.m. Want to check things out before we have a conversation? That’s quite ok, simply visit HTTPS:// Emergenc yBusinessR elief. com/338109 to visit our Corona Virus Tax Relief website. Here’s wishing everyone a safe and healthy navigation over the trouble waters of Covid-19.

SUBSCRIPTION!

HERE!

Neither Denver Burdette, D.H. Burdette & Associates, or it’s affiliated companies are authorized to provide tax advice. All business owners are encouraged to coordinate any recommendations with your tax professional.

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NEWS

CALIFORNIA GOES TO WAR AGAINST “MISLEADING HEALTH PLANS” KNOWN AS “HEALTH CARE SHARING MINISTRIES” Deceptive marketing tactics by Aliera and Trinity could impact up to 11,000 Californians

AKLAND, Calif. — The California Department of Insurance issued a Cease and Desist order effective immediately against Aliera Healthcare, Inc., and Trinity Healthshares, Inc., for violating California law by misleading California consumers regarding their products and transacting insurance business without a certificate of authority from the Insurance Commissioner. The Department warns consumers that these misleading lookalike health plans marketed as “health care sharing ministries” do not comply with California laws to protect consumers. These plans were marketed as cheaper alternatives to traditional coverage when, in reality, they do not provide comprehensive coverage for pre-existing conditions and other coverage as required by state and federal laws. Up to 11,000 Californians may belong to unapproved plans offered by these two entities.

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“Consumers who bought these plans thinking they purchased comprehensive health insurance deserve the full protection of our laws,” said Insurance Commissioner Ricardo Lara. “Consumers should know they may be able to get comprehensive coverage through Covered California that will protect their health care rights.”

Consumers who purchased coverage through Aliera Healthcare, Inc. or Trinity Healthshares, Inc. should contact Covered California at 855295-2023, to determine if they have experienced a qualifying life event that entitles them to a special enrollment opportunity. Consumers are encouraged to contact the Department of Insurance’s Hotline at 800-927-4357 to learn about their options or to file a complaint

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

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Consumers who bought these plans thinking they purchased comprehensive health insurance deserve the full protection of our laws. Consumers should know they may be able to get comprehensive coverage through Covered California that will protect their health care rights.” if they were faced with unexpected costs or other problems with Aliera Healthcare, Trinity Healthshares, or any other health care sharing ministry plan. The Department’s Cease and Desist Order alleges that Aliera and Trinity provided misleading training to sales agents, promoted misleading advertisements to California consumers, and sold products that do not cover preexisting conditions, abortion and/or contraception, or comply with the federal Mental Health Parity and Addiction Equity Act, which is in violation of Insurance Code section 10112.27, Insurance Code section 10198.7, and the federal Patient Protection and Affordable Care Act. Deceptive marketing practices may have pressured some consumers to purchase a health sharing ministry plan, thinking they had missed the deadline for purchasing coverage through Covered California. The Cease and Desist Order prohibits Aliera and Trinity from immediately transacting insurance in California, APRIL 2020

including advertising or receiving any money, commission, fee, rebate, payment, remuneration, or any other valuable consideration whatsoever, in connection with any insurance transactions.

From Notice to Agents: • HCSMs don’t guarantee payment of

claims. That means that while they may share funds with members who have health needs, they are not legally required to do so. • HCSMs usually cap what they will pay. This means that even if an HCSM will cover your treatment, the HCSM may stop paying once the treatment costs exceed a certain dollar amount, leaving you with the bill. • Most HCSMs claim they are not insurance and are therefore exempt from state law. This is untrue. To the extent HCSMs are transacting insurance they fall under the jurisdiction of the Department of Insurance and must have a valid license in order to do business in California. Whether a particular medical service will be covered is completely up to the Sharing Ministry and what is covered

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can change at any time without prior notice. Most HCSMs do not comply with the consumer protections of the federal Affordable Care Act (ACA), like covering treatments for pre-existing conditions or capping out-of-pocket costs. If care or treatment is not covered, insureds cannot appeal for an independent medical review overseen by the State of California • HCSMs usually don’t have provider networks, so members may be charged full price by doctors and hospitals, rather than the lower negotiated rates charged to consumers who have insurance coverage. • HCSMs may provide value to some, but they pose a risk to others because they often provide limited benefits. • Under certain circumstances membership in a health care sharing ministry exempts members from the state individual health insurance mandate, but only if the ministry meets a specific a definition found in the Affordable Care Act (ACA). Many HCSMs do NOT meet this definition and therefore membership does not exempt individuals from the state or federal mandate. Editor’s Note: There is no longer a federal mandate. • If individuals are enrolled in a HCSM that does not meet the state or federal definition they must enroll in health insurance coverage or they may be subject to the state health insurance penalty for failure to have health insurance coverage.

Related News: Houston woman files lawsuit against health care sharing ministry company Aliera Healthcare HERE www/underwritersinsider.com

THE INSIDE TRACK - BREAKING NEWS California Demands Data On Covoid-19 Business Interruption

ACRAMENTO, Calif. — Today, Insurance Commissioner Ricardo Lara directed insurance companies to submit data to the California Department of Insurance regarding coverage of commercial business interruption related to COVID-19. The data will help state policymakers to understand the scope of insured and uninsured losses to businesses in order to help them recover and keep workers employed. Commissioner Lara called on the insurance industry to assist small businesses facing layoffs and lost income due to business closures and government actions to prevent the spread of COVID-19. Insurance company responses 18

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to the data call are due by April 9, 2020, and will help the Department understand the number and scope of commercial business interruption type coverages in effect and the approximate number of policies that exclude viruses such as COVID-19. This data will help inform state policymakers on solutions to protect businesses.

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MarketScout Adds Kelly Dinsley

ALLAS, March 30, 2020 – MarketScout, the national electronic insurance exchange and specialty MGA headquartered in Dallas, Texas, today announced it has expanded the underwriting and processing capabilities of its Allied Healthcare Underwriting

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THE INSIDE TRACK - BREAKING NEWS Facility with the addition of Kelly Dinsley. Kelly will be based in the corporate office headquarters in Dallas, Texas. Kelly has ten years of underwriting experience from Liberty Mutual and Hallmark. She will provide underwriting and processing support to MarketScout’s expansive Allied Healthcare Underwriting Facility.

Roadside Saliva Test For Cannabis Developing

s more and more venues allow the legal sale of cannabis products, more and more drivers come under the scrutiny of law enforcment for the use of it while operating a motor vehicle. The University of Texas, Dallas, under Prof. Shalini Prasad, is developing a system using disposable test strips that incorporates two electrodes and a protein coating that binds to THC combined with a compact reader that can APRIL 2020

give an accurate reading on cannabis in the blood stream. Bad news for stoners - good news for law enforcement and the driving public.

contact. The virus enters the body through mucosal surfaces, including the nose, eyes, mouth, hair and eyelashes.

Coronovirus Victims Contagious Long Before Symptoms

Cop Arrested On Insurance Fraud Charges

ew data shows that a person is most contagious before they have symptoms and during the first week of illness. This is why “social distancing” is so important. The virus, which spreads from person-toperson primarily through close contact via respiratory drops emanating from the mouth or nose. One recent study shows “microdroplets” (too small to be seen by the human eye) can stay in the air for up to 20 minutes if in a room with poor ventilation. Other studies show the virus surviving on surfaces for several hours where a person could make

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AMPA, Fla. – Florida announced the arrest of Shane Gadoury, a Sergeant with the Tampa Police Department, on a charge of filing a false and fraudulent insurance claim to defraud his insurance company. After his 23-foot boat sank, Gadoury renewed his insurance policy and submitted a fraudulent insurance claim the next day. An investigation revealed that Gadoury was first notified that his 23-foot boat was sinking and then told the following day that the boat completely sunk. Gadoury then allegedly contacted his insurance company to obtain a new policy for $13,000 worth of coverage. The next day, he allegedly submitted a claim for the total loss of his boat.

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Covid-19 Keeping You From The Marketplace? No Trade Fairs? Field Rep Working From Home? It’s no time for your agents, prospects or members to forget about your company or organization.

It’s Time To Get Creative!

Think About This...

Every organization would love to publish their own magazine to their clients, customers, members or prospects, but the cost of production, printing and shipping is often cost-prohibitive. Internet publishing makes the project affordable via an online, private label magazine in a more powerful, yet natural way, to reach out and touch your list as often as twice a week. Your organization’s magazine will be filled with compelling content, important information on your products or service and, the best part, revenue producing advertising covering all or part of the cost of your magazine! 20

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Carriers, MGAs, Vendors and Associations: Twice A Week: Reach Out And Touch

• Your • Your • Your • Your • Your

APRIL 2020

Agents Clients Customers Members Prospects

A Private-Label Online Magazine For Your Company or Organization May Be The Most Cost Effective Tool Ever Created For Doing So. Proposals are free and easy!

Request More Information Or A Proposal HERE!

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NEWS

LLOYD’S BALANCE SHEET, CAPITAL MANAGEMENT AND SOLVENCY IN STRONG POSITION TO RESPOND TO COVID-19

n 2019, Lloyd’s net resources increased by 8.6% to £30.6bn, reflecting an exceptionally strong balance sheet and a central solvency ratio of 238%.

As we focus on supporting our business partners and customers during this time, it has also never been more important to accelerate progress on our ambition to create the most advanced insurance marketplace through the Future at Lloyd’s.

rapidly around the world with devastating consequences for families, communities and the global economy. Now more than ever, our customers need us to be ready to support them through these challenging times.

Although there has been a high degree of turbulence in the financial At Lloyd’s, we are laying the markets over recent weeks, as at 19 foundations to do this March Lloyd’s solvency ratio Lloyd’s has today more effectively. By stood at 205%. The exceptional focusing on performance strength of the market’s confirmed that the management, modernising balance sheet has been further market is in a strong the market and creating bolstered by Lloyd’s return to a profit of £2.5bn (2018: loss of position to respond to the impacts a market culture that will attract the best and £1.0bn) in 2019, driven by the of COVID-19 and support its brightest talent, we are repair in investment markets in the first half of 2019. customers and business partners, making the market more resilient, more successful following the publication of its and better placed to meet John Neal, Lloyd’s CEO, said, our customers’ needs.” 2019 annual results.” “Whilst we are pleased to be announcing Lloyd’s return to profitability in 2019 and continued We have sharpened our focus for Lloyd’s 2019 Annual progress across our priorities, our 2020, prioritising initiatives that Results in detail primary focus right now is on will ensure around 80% of Lloyd’s supporting our customers and business is digitally supported, Lloyd’s today announced a business partners in their time of together with fast-tracking claims return to profit of £2.5bn (preneed. I am confident in Lloyd’s ability processing improvements and tax) for 2019, representing an to meet the challenges before building the foundational data improvement of £3.5bn on the it, and in doing so demonstrate and technology infrastructure to previous year (2018: a loss of the market’s unrivalled ability support Lloyd’s future ecosystem.” £1.0bn) and an 8.8% return on to support people, businesses capital (2018: (3.7%)). and countries around the world Bruce Carnegie-Brown, Lloyd’s in response to the far-reaching Chairman, added, “The beginning impacts of COVID-19. of 2020 has proved exceptionally difficult as COVID-19 spreads See Lloyd’s Balance Sheet Page 25 22

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FLORIDA ANNOUNCES $74,000 WORKERS’ COMP PREMIUM FRAUD ARREST IN MIAMI

in payroll between October 2015 and August 2016. Gomez-Ibarra originally reported an annual estimated remuneration of $92,400 in payroll on their workers’ compensation insurance policy for An investigation by CFO Patronis’ four employees. This coverage was Bureau of Investigative and estimated to cost over $15,000. Forensic Services, Division of Workers’ Compensation Fraud Carlos Alberto Gomez-Ibarra discovered Gomez-Ibarra was booked into Turner Guilford allegedly concealed payroll knight Correctional Center on information to avoid paying March 4 on a charge of Workers’ higher workers’ compensation Compensation Premium Fraud. If CFO Jimmy Patronis said, premiums. The company allegedly convicted, Gomez-Ibarra faces up “Knowingly evading the payment conducted more than $442,000 to 7 years in prison. of workers’ compensation is a IAMI – Chief Financial Officer (CFO) Jimmy Patronis announced the arrest today of Carlos Alberto Gomez-Ibarra, owner of Always Good Construction, for workers’ compensation premium fraud. Over the course of 10 months, Gomez-Ibarra allegedly evaded paying nearly $74,000 in workers’ compensation insurance premiums.

APRIL 2020

serious crime that puts injured workers at risk and drives up insurance rates. I encourage anyone that suspects insurance fraud to report it to FraudFreeFlorida.com.”

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REPORT

NAIC RELEASES 2019 MARKET SHARE DATA Life/Fraternal and Property/Casualty Reports Now Available

ASHINGTON (March 2, • With 83.25% of life and 2020) — The National accident/health insurance Association of companies reporting, Insurance Commissioners (NAIC) direct premiums written released data today on life/ for life insurance are fraternal and poperty/casualty $160,761,616,161. insurers. The reports provide • Total reported premiums market share information and for life insurance, including identify leading insurance annuity considerations, writers in several key lines of deposit-type contract funds, business. other considerations, and accident and health are The 2019 market share data $829,775,010,661 as of includes countrywide direct March 2. written premiums for the top 25 groups and companies as reported on the state page of the annual financial statement for insurers that report to the NAIC.

The Property/Casualty Market Share report contains cumulative market share data for the following lines of business: personal auto, commercial auto, workers’ compensation, medical professional liability, homeowners and other liability (excluding auto liability) insurance.

The Life/Fraternal Market Share report contains cumulative market share data for life insurance, annuity considerations, and an aggregate total of life insurance, annuity considerations, deposit- Highlights from the type contract funds, other report include: considerations and accident/ • With 84.62% of property/ casualty insurance health insurance. companies reporting to date, direct premiums written Highlights from the for all lines of business are report include: 24

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$623,639,809,558. • The top 10 property/casualty companies reporting to date have a cumulative market share of 49.03%. • Total private passenger auto insurance has the largest amount of direct premiums written reported as of March 2 at $222,554,185,066. This makes up approximately 36% of reported written premiums. The reports reflect data filed by insurers as of March 2 and will be refreshed daily through March 6 and then each Monday throughout March. The full 2019 Market Share Reports for Life/Fraternal Groups and Companies and the full 2019 Market Share Reports for Property/Casualty Groups and Companies will be available this summer and will contain more in-depth information. For questions about the reports or data, contact the NAIC Research & Actuarial Department. APRIL 2020

Continued From Page 22 Lloyd’s return to profitability in 2019 is underpinned by strong performance across investments (2019: 4.8% return; 2018: 0.7% return), alongside sustained rate increases and improving underwriting discipline. Lloyd’s combined ratio saw an improvement of 2.4 percentage points to 102.1% (2018: 104.5%), with the underlying 2019 accident year ratio improving to 96.0% (2018: 96.8%), exclusive of major claims. These encouraging The key figures reported in Lloyd’s developments show Lloyd’s performance agenda is beginning 2019 Annual Report are: to drive better underwriting • Net resources of £30.6bn discipline in the Lloyd’s market. (2018: £28.2bn) • Central solvency and Gross written premiums (GWP) coverage ratio of 238% (2018: for the period totalled £35.9bn, 249%; 19 March 2020: 205%) marginally up from £35.5bn in • Gross claims paid of £23.0bn 2018. This equates to a reduction in GWP of 2.6% after eliminating (2018: £19.7bn) • Gross written premiums of positive foreign exchange rate movements and is underpinned £35.9bn (2018: £35.5bn) • Combined ratio of 102.1% by a risk adjusted rate increase of 5.4%, indicating continued (2018: 104.5%) discipline • Aggregated market profit of underwriting £2.5bn (2018: loss of £1.0bn) across the market.

LLOYD’S BALANCE SHEET IN STRONG POSITION TO RESPOND TO COVID-19

Results at a glance

Continued From Page 9

IT’S NOT 2008! previous crisis. Manufacturers are rapidly retooling to produce needed supplies and equipment. Healthcare companies are hard at work creating treatments and searching for a vaccine. We don’t know exactly how long it will take, but things will get better. The US economy has survived far worse problems than the one we currently face. The past 150 years have seen world wars, civil war, a depression, and financial panics. There were pandemics in times when medicine was far less advanced than it is today. Students of history know that the markets and the economy recovered from those shocks, and it will recover from the current crisis. History teaches us that at the darkest moments, things usually aren’t as bad as they seem. The markets tend to figure this out long before the news headlines turn positive. This is why investors who try to time the market usually end up selling low and buying high. Wise investors know the best way to build wealth is to own great companies, and to continue to own them when others are afraid.

REPORT - AAA Continued From Page 13

IS IT SAFE TO TRAVEL IN THE AGE OF COVID-19?

•

with a tissue, then throw the tissue in the trash. Clean and disinfect frequently touched objects and surfaces using a regular household cleaning spray or wipe.

Rent This Space!

About AAA as an epidemic, or soon thereafter may be able to cancel their trip and receive reimbursement for a portion of their non-refundable travel deposits. Travel insurance generally excludes epidemics. If you have a trip already booked, check with your travel providers (cruise line, airline, hotel, etc.) to see what waivers they have put in place. If you are planning a trip, also check with travel providers to understand their coronavirusrelated policies and connect with a travel agent. Depending on your situation, there could be some travel insurance options for your needs. No matter where you travel, make sure you are taking everyday preventive measures to help prevent the spread of respiratory diseases. • • • • • 26

Wash your hands frequently Avoid close contact with people who are sick. Avoid touching your eyes, nose and mouth. Stay home when you are sick. Cover your cough or sneeze The Underwriter’s Insider

AAA provides more than 60 million members with automotive, travel, insurance and financial services through its federation of 34 motor clubs and more than 1,000 branch offices across North America. Since 1902, the not-for-profit, fully taxpaying AAA has been a leader and advocate for safe mobility. Drivers can request roadside assistance, identify nearby gas prices, locate discounts, book a hotel or map a route via the AAA Mobile app. To join, visit AAA.com.

FREE! free insider subscription! sign up yourself or any associate at this link

HERE

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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! APRIL 2020

NEWS - TECHNOLOGY

BLUE ORIGIN TESTING BE-4 ENGINE IN HUNTSVILLE, AL

untsville, AL – February 17, 2020 - Today, Blue Origin opened its rocket

“At the core of every successful vehicles to space. Early on in Blue launch vehicle program are Origin’s history, we made a crucial the engines that power those decision to invest in developing the next generation of reusable rocket engines. And now, it’s an exciting time for Blue, our partners and this country –we are on the path to deliver on our promise to end the reliance on Russian made engines – and it’s all happening right here, right now, in the great state of Alabama. We couldn’t be prouder to call this our home for engine production,” said Bob Smith, CEO of Blue Origin. Blue will add more than 300 jobs to the local economy with an investment of over $200 million in the facility. Click on image below for a video of the BE-4 engine testing progress.

engine production facility in Huntsville, AL. The world-class engine manufacturing facility in The Rocket City will conduct high rate production of the BE-4 and BE-3U engines. These engines will undergo testing at NASA Marshall Space Flight Center on the historic Test Stand 4670. BE-7, our lunar landing engine, is also currently in test at NASA Marshall.

APRIL 2020

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“The Final Authority on Everything!” WARNING!

The Advisor has been known to be politically incorrect and may send certain Millennials scurrying to their safe space. Please read at your own risk.

Putting Covid-19 In Perspective

’m trying to get with the program and be a good citizen, but somewhere in my mind I keep feeling this coronavirus crisis is being over-hyped. I’d be interested in the Advisor’s perspective. T.G. Boulder, CO

ADVISOR

but very unlikely, you knew county, by hospital. (As it has someone who died. Most been for Covid-19) If every likely, you never gave it much panicked politician and public thought, nor did you or official was on-camera the rest of the country daily, on Next Door, change your on Facebook , on behavior in any Twitter offering way. dire warnings and tips to stop Now ask yourself the spread of the how you, and the deadly flu. The country, would have exact same disease responded if the news cycle was that you and the rest of the 24/7 100% coverage of every country probably ignored confirmed infection, every would certainly have caused confirmed death - by state, by wide-spread panic.

Great question T.G., and one that is being asked by many independent thinkers. Let’s look at the last regular flu season for that perspective: The CDC reported 350,000 hospitalizations and 24,000 deaths from the regular flu last season in the US alone. Maybe you got a flu shot. Maybe you knew someone who actually got sick. Possible, 28

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But why didn’t that happen? 330,000,000 citizens we Weren’t 24,000 deaths in one flu normally understand that season sufficiently noteworthy? there is a cost to being up, Why didn’t we shut the country around and productive. down, destroy thousands of We lost 480,000 citizens to businesses and millions of jobs automobile accident last year. and add $trillions to our national We could have saved every debt? Why didn’t we close the single one of them by simply restaurants, the bars, the gyms, banning driving. We did not the beaches and the parks? Why because a rational response didn’t our government gin up the to those deaths included the national hysteria over the flu that reality that life must go on. they have done over the Covid-19 Commerce and the economy virus? Why didn’t we all agree to must be sustained, in spite of the cost, because we all rely give up our constitutional right to on our heavily integrated free assembly? Wouldn’t we have economic infrastructure for saved lives by doing so? our continued existence. Yes, we can improve safety on Of course, we would have. the highway and we must be But in a rational society of APRIL 2020

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focused on that issue, but at some level, there are losses we must accept in order to sustain the engine of our economy. An over-reaction to the coronavirus or any such crisis could, indeed, cause the cure to be worse, perhaps far worse, then the disease. Covid-19 is a killer, T.G., and should not be underestimated, but the almost nil response to the regular flu, also a killer, vs the supernova response to Covid-19 goes unexplained, in the opinion of the Advisor. www/underwritersinsider.com

NOTABLE QUOTABLES IN THE NEWS - WITH COMMENTARY

SAY WHAT?

insurance insuring against loss or damage to property, which includes the loss of use and occupancy and business interruption, shall be construed to include Direct Physical Loss Required among the covered To Trigger Most Business perils under that policy, coverage for business Interruption Claims interruption during a period of a declared ommercial property policies state of emergency due also typically require “direct to the coronavirus disease 2019 (COVID-19) physical loss” to the property and pandemic.” proof of causation. In the event of a claim for coronavirus-related business interruption, From a bill introduced into the Yew York questions may arise as to whether this Assembly by members Robert Carroll and “physical loss” requirement has been met. In Patricia Fahy on March 27th with an intent particular, in circumstances where a business to force commercial P&C insurers to cover has been closed as part of a mandatory or business interruption losses resulting from voluntary closure − but is otherwise still the coronavirus - even though policy wording habitable and uncontaminated − it has requiring “direct physical loss” prior to being probably not suffered a direct physical loss considered a valid claim is a condition unmet. since infectious diseases arising from humanWatch for other states to follow suit, including to-human transmission generally will not Ohio, Massachusetts and New Jersey. The qualify as property damage.” Industry was not happy. Read below:

Attorney Paul S. White of Wilson Elser law firm in a report on commercial insurance. the Covid-19 virus and potential business interruption claims. More Here

Insurance Industry Rejects

road business communities will be ultimately harmed by these kinds of proposals in that they NY Introduces Bill To Force Insurers To may prevent potential financial assistance Cover Business Interruption Resulting from anticipated relief programs, and will have a deep chilling effect on the availability From Coronavirus of insurance for the business community moving forward. [The bill is] a dangerous, otwithstanding any provisions unprecedented, and unconstitutional of law, rule or regulation proposal that NAMIC emphatically opposes. to the contrary, every policy of Broad business communities will be

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APRIL 2020

ultimately harmed by these kinds of proposals in that they may prevent potential financial assistance from anticipated relief programs, and will have a deep chilling effect on the availability of insurance for the business community moving forward. Insurers pay millions of dollars annually to business owners who are impacted by tornadoes, hurricanes and other disaster losses. We’re now coming into tornado and hurricane season. How are we going to pay for the losses from these disasters that are covered if we don’t have the financial ability?”

intended to contain the coronavirus pandemic may be worse than the disease itself.

Shameful Stimulus Pork ife is hard, but it’s harder when L you’re stupid. Congress polls right up there with robocalls and

sinkholes. This was not a Lincoln moment. It was started by Speaker Pelosi with her Left of Lenin, Bridge-to-Nowhere projects. But I think once we drill down, we’re gonna find out that she’s not the only one. I think some other people in powerful positions piled on, and I don’t like it. And it’s not fair to the American people.”

Erin Collins, vice president, state affairs at the Indianapolis-based National Association of U.S. Senator John Neely Kennedy (R-LA) decrying the amount of pork added to the Stimulus bill Mutual Insurers, in an email. as told to Fox Business anchor Maria Bartiromo.

Not Everyone Onboard With “Stay-At-Home” Orders

niversal stay-at-home is the most devastating economic force in modern history. And it is man-made. It very suddenly reverses the gains of underprivileged groups, kills and creates drug addicts, beats and terrorizes women and children in violent now-jobless households, and more. It bleeds deep anguish and suicide.” Michael Burry, doctor-turned-investor who famously shorted mortgage securities just before the 2008 financial crisis, wrote in an email to Bloomberg News with the message that lockdowns and stay-at-home orders

APRIL 2020

Among The Stimulus Pork As Reported by Fox News: • $50 million for the Institute of Museum and Library Services • $75 million for the Corporation for Public Broadcasting. • $88 million to the Peace Corps for “evacuating volunteers and U.S. direct hires from overseas.” $12,054 per evacuee sounds rather first class. The agency sacked all of its 7,300 volunteers in 61 foreign nations on March 15. • $150 million ($75 million each) for the National Endowment for the Arts and the National Endowment for the Humanities • $1 billion for Amtrak • $30.8 billion to the Department of Education for a “state Fiscal Stabilization Fund.” This includes “state-flexibility” grants ($3 billion), money for K-12 schools ($13.5 billion), and an infusion for colleges and universities ($14.25 billion).

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BACK ISSUES

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BACK ISSUES

APRIL 2020

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REPORT: GUARDIAN AD LITEM

ONE LIFE + YOUR VOICE = HOPE Volunteers Needed! Can You Help?

abriel Hernandez and Thomas Valva have much in common including both being eight years old. Both were loved by many and were described as “angelic”, “sweet-natured”, and “quiet”. They, unfor tunately, share something darker and more disturbing; both boys endured years of sustained abuse – to the point of death – at the hands of the adults they trusted most.

appointed special advocates who represent in court the best interests of child victims of abuse, abandonment, and neglect.

communicating with the child in their placement, at school, at extra-curricular events, and in the community giving them unparalleled insight into the child’s life allowing for true best interest advocacy.

If after reading this you want to serve as a Guardian ad Litem, remember that this differs from most volunteer opportunities because of the level of commitment News stories and television In Palm Beach County, there required. Ask yourself if you are documentaries all share the are approximately 1,600 ready to serve as a proverbial shortfalls in the system that led children involved in abuse and life insurance policy for a child to their untimely passing. It is sad abandonment cases with a victim of abuse. If your answer and it is inexcusable, and we are monthly average of 79 children is ‘yes’, your first step is to call left to wonder, “Are there saviors removed, for their own safety, Volunteer Recruiter, Christie and protectors for children like from their families. The 650 child Geltz at 561.355.6224. Gabriel and Thomas?” Thankfully, advocacy volunteers of the local the answer is a resounding YES Guardian ad Litem serve as the Safety is of the utmost so candidates and in Palm Beach County we eyes and ears of the court system. importance, are subject to extensive prerefer to them as Guardians ad Litem (GAL) – volunteer court They are active participants screening including an interview, in the child’s life, visiting and 34

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APRIL 2020

background check, and fingerprints. Once approved, you will participate in a combination of online and in-person training sessions to prepare you for your role before being appointed by the court. Though most volunteers dedicate fewer than 10 hours per month posttraining, the impact for the child can be life-altering. Not everyone is cut out to be a Guardian ad Litem, and that is perfectly alright as there are

many other opportunities for service. If you want to serve in another capacity or would like to partner with the program through their nonprofit, Speak Up for Kids of Palm Beach County, call 561.408.7779.

(GAL) or Court Appointed Special Advocate (CASA). Join a nationwide movement of over 93,000 volunteers intent on improving the lives of children around the country. Visit https:// nationalcasagal.org/our-work/ programs/ to find out how to volunteer in your area.

You don’t live in Palm Beach County? Don’t despair. While this article is written from the “No one can do everything, but perspective of Palm Beach everyone can do something.” County, there are NATIONWIDE opportunities to serve as -Max Lucado either a Guardian ad Litem

You can make a difference to children in foster care! Every Foster Child Deserves

an ADVOCATE

Every Child Deserves

561-355-6224

a HOME

EVERYONE Can Do Something to Help Children! Guardian ad Litem Volunteer Child Advocates are

needed for the many children entering the foster care system.

Could you open your heart and your home to provide

love and stability for a neglected and abandoned child?

Share your time, talent, treasure: Donate your time for

events, talent in the office, or your treasure to help a child!

561-355-6224 • info@SpeakUpForKidsPBC.org • www.speakupforkidspbc.org/advocate-home APRIL 2020

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TECHNOLOGY Continued From Page 5

signed by the president expands unemployment insurance by an additional $600 per week on top of existing UI.

KIM KOMANDO Married couples making between $150,000 and $198,000 will receive reduced checks. United States Treasury Secretary Steven Mnuchin stated his goal of getting the first batch of checks disbursed during the week of April 6, but no official timeline has been set. Checks will be mailed to the address on your 2018 or 2019 tax return, or direct deposited via information on file with the IRS.

All you need to do is fill out your filing status, gross income and number of children to calculate the amount. This data isn’t taken from the IRS or your actual tax returns, but you can ballpark the number.

As you can see above, a family of 4 making slightly more than $50,000 per year can expect a How much am I getting? check of $3,400. For every child Despite the relatively claimed as a dependent, the straightforward numbers above, number will rise by $500. determining eligibility is a bit more complicated. It’s expected This money will prove to be a that the Trump Administration major relief during a time of or IRS will be moving forward economic uncertainty, especially with additional guidance in the as rents and bills are due. It’s important to have access to coming weeks. instant cash that can ease our In the meantime, it’s possible to collective burden. calculate how much your share will be with the help of this handy calculator from The Washington Post.

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In a bit of good news, recently unemployed workers will be getting even more than just the stimulus money. The bill Table of Contents

Now that we can relax a bit with knowledge that money is on the way, this stimulus does beg the question: How will people spend the money if they’re all stuck indoors? Maybe Amazon will see an even larger uptick in online purchases. Tap or click here to find out how to properly clean and sanitize your Amazon deliveries.

Copyright 2020, 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 APRIL 2020

REPORT - AVOID COVID-19 SCHEMES

TENNESSEE DOI OFFERS TIMELY ADVICE ON AVOIDING COVID-19 INVESTMENT SCHEMES

ASHVILLE — Amid the ongoing COVID-19 pandemic, the Tennessee Department of Commerce and Insurance (TDCI) Securities Division is alerting investors to be on guard against an anticipated surge of fraudulent investment schemes. “While most Tennesseans pull together to help their neighbors during times of crisis, unfortunately, bad actors seek to take advantage of emergency situations to line their pockets,” said TDCI Commissioner Hodgen Mainda. “I urge my fellow Tennesseans to learn the red flags of financial investment scams in order to protect themselves during the COVID-19 pandemic. If consumers have questions about an investment offer that may seem fraudulent, they should contact members of our team.”

primary focus remains on the protection of retail investors,” said TDCI Assistant Commissioner, Securities Division Elizabeth Bowling. “Scammers will begin perpetrating schemes that require little or no advance planning and minimal sophistication. Most will simply be old scams dressed in contemporary clothing.”

producing ventilators and other medical equipment, distributing small-molecule drugs and other preventative pharmaceuticals, or manufacturing vaccines and miracle cures. The schemes often appear legitimate because they draw upon current news, medical reports and social and political developments.

The North American Securities Administrators Association (NASSA), of which the TDCI Securities Division is a member, anticipates fraudulent investment schemes will rise as a result of the ongoing pandemic.

Scammers also will seek to take advantage of concerns with the volatility in the securities markets to promote “safe” investments with “guaranteed returns” including investments tied to gold, silver and other commodities; oil and gas; and real estate. Investors also can expect to see “get rich quick” schemes that tout quickly earned guaranteed returns that can be used to pay for rent, utilities or other expenses. These schemes also target retirees and senior citizens, falsely claiming they can quickly and safely recoup any losses to their retirement portfolios.

“Scammers will be targeting investors, capitalizing on recent developments in the economy and preying on concerns about the regulated securities market,” said Bowling. “Investors must remain vigilant to protect themselves.”

TDCI’S Securities Division warns investors that the fraudulent schemes launched amid COVID-19 outbreak will not be elegant.

In particular, TDCI’s Securities Division is warning investors to be on the lookout for investments specifically tied to the threat of Retail investors must remain COVID-19. Bad actors can be vigilant and protect themselves “In these extraordinary times the expected to develop schemes health and welfare of all must be that falsely purport to raise capital our foremost concern, and that for companies manufacturing includes our financial health. Our surgical masks and gowns, See Covid-19 Schemes Page 42

APRIL 2020

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SPECIAL REPORT

HOW (AND WHY) TO WRITE A PRESS RELEASE By Ron Manera, Senior Editor

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

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. APRIL 2020

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

APRIL 2020

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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.

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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!

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

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!

APRIL 2020

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REPORT: AVOID COVID-19 SCHEMES Continued From Page 37

TN DOI OFFERS SAGE ADVICE ON AVOIDING COVID-19 SCHEMES from new schemes tied to COVID-19 and recent economic developments. TDCI’s Securities Division suggests investors stay clear of anything sounding too good to be true, such as guarantees of high returns with no risk, and vet their investment professional about their licenses and registrations. Investors should also contact the Securities Division with questions about any investment opportunity or the person offering it for sale before investing in the product. For more information, visit the Securities Division homepage at https://www.tn.gov/commerce/ securities-division.html

INVESTOR BEWARE: Schemes to Watch for and How to Protect Yourself • Private placements and offmarket securities. Scammers 42

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will take advantage of concerns with the regulated securities market to promote off-market private deals. These schemes will continue to pose a threat to retail investors because private securities transactions are not subject to review by federal or state regulators. Retail investors must continue to investigate before they invest in private offerings and independently verify the facts for themselves.

can recognize significant gains after the price of oil recovers. Scammers will also begin selling equity at a discount, promising the value of the investments will significantly increase when the markets strengthen. Investors needs to appreciate the risks associated with any prediction of future performance and recognize that gains in the markets may not correlate with the profitability of their investments.

• Gold, silver and other commodities. Scammers • Get-rich-quick schemes. may also take advantage Scammers will capitalize on the of the decline in the public increased unemployment rate. securities markets by selling They falsely tout their ability to fraudulent investments in gold, quickly earn guaranteed returns silver and other commodities that can be used to pay for rent, that are not tied to the stock utilities or other expenses. They market. These assets may also also target retirees and senior be attractive because they citizens, falsely claiming they are often promoted as “safe” can quickly and safely recoup or“guaranteed” as hedging any losses to their retirement against inflation and mitigating portfolios. Remember: if it systematic risks. However, sounds too good to be true, it scammers may conceal hidden probably is. fees and mark-ups, and the illiquidity of the assets may • Replacement and swap prevent retail investors from schemes. Investors should selling the assets for fair market be wary of any unlicensed value. The bottom line is person encouraging them to there really are no “can’t miss” liquidate their investments and opportunities. use the proceeds to invest in more stable, more profitable • Recovery schemes. Retail products. Investors may investors should be wary of buypay considerable fees when low sell-high recovery schemes. liquidating the investments, For example, scammers will and the new products often begin promoting investments fail to provide the promised tied to oil and gas, encouraging stability or profitability. investors to purchase working Advisors may need to be or direct interests now so they registered before promoting Table of Contents

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these transactions and legally required to disclose hidden fees, mark-ups, and other costs.

Registration Search. Avoid doing business with anyone who is not properly licensed.

have a vaccine or preventive medicine.

other

• Avoid fraudulent charity • Real estate schemes. Real • Don’t fall for phishing schemes. White-collar criminals estate investments may prove scams. Phishing scams may may pose as charities soliciting appealing because the real be perpetrated by foreign or money for those affected by estate market has been strong domestic parties claiming an COVID-19. Before donating, you and low-interest rates have association with the Centers should independently verify any been increasing the demand for Disease Control and charity that is raising money for for housing. Scammers often Prevention or the World Health the sick or secure donations to promote these schemes as Organization, or by individuals help uninsured persons pay for safe and secure, claiming claiming to offer novel or expert medical treatment. You should real estate can be sold and medical advice or services. Con also avoid online solicitations the proceeds can be used to artists offering “opportunities” for cash and gift cards, as cover any losses. However, real in research and development these schemes have become estate investments present are scamming you. They may a popular way for scammers significant risks, and changes even be perpetrated by persons to steal money. Think with to the economy and the real impersonating government your head and not with your estate market may negatively personnel, spoofing their email heart. If you want to donate impact the performance of the addresses and encouraging to a cause, you should work products. their audience to click links or with a legitimate, established access malicious attachments. organization. How to Protect Yourself These emails may look real and sound good, but any • Be wary of schemes tied to TDCI’S Securities Division and unsolicited emails that have government assistance or NASAA provide the following attachments and web links can economic relief. The federal guidance and tips to help investors point to dangerous websites government may send checks avoid anticipated schemes seeking and malicious attachments that to the public as part of an to take advantage of unsuspecting can steal information from your economic stimulus effort. It consumers and investors. computer, lock it up for ransom, will not, however, require the or steal your identity. Don’t do it. prepayment of fees, taxes on the • Ask questions and research income, the advance payment the investment and person • There are no miracle cures. of a processing fee or any offering it. Investors should Scientists and medical other type of charge. Anyone always ask if the salesperson professionals have yet to who demands prepayment and the investment itself are discover a medical breakthrough will almost certainly steal your properly licensed or registered. or have developed a vaccine or money. And don’t give out or This information can be means to cure COVID-19. Not verify any personal information confirmed by the Securities surprisingly, the vaccines being either. Government officials Division. Investors also can sold by online pharmacies are already have your information. check the SEC’s Investment not real. You should not send No federal or state government Adviser Public Disclosure money or make payments over agency will call you and ask for database, FINRA’s BrokerCheck, the phone to anyone claiming personal information. or, in Canada, use the National they can prevent COVID-19, APRIL 2020

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The Underwriter's Insider April 2020

Articles inside

Matt Treskovitch

24

Say What?

Kim Komando

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How (And Why) To Write A Press Release

Barry Zalma