The Underwriter's Insider August 2014 by The Underwriter's Insider

Features 5 Advertising 9 Kim Komando 18 Inside Track 23 Insider Advisor

News 4 7 9 10

Preparing Your Agency For Sale! by Kathryn Christ, Business Broker

Tremors - Obamacare’s Problems Waiting Just Below The Surface - OP/ED by Spencer Lehmann, RHU

14 14

QQSolutions Delivers Robust Commercial Functionality Watch TV For Free - Get Cable, Sports, News & Shows! - by Kim Komando How Co-Insurance Works - A Refresher For Agents - by Barry Zalma, Esq.

Florida Announces Arrest Of Miami Agents Accused Of Stealing Nearly $1.1 Million In Insurance Premiums The Most Amazing Aircraft Ever Build? “Buzz” Carpenter Relates Some Incredible Stories

24 Classifieds

28 Say What?

17 21

Agent Accused Of Scamming Seniors Out Of $2 Million In Annuity Fraud

30 Back Issues

21 23

Ohio Boasts Lowest Auto Insurance Rates In U.S.

Georgia Agent Arrested & Charged With Fraud For Operating An Unlicensed Insurance Company

Reagan Consulting Opens Growth & Profitability Survey For 2nd Quarter 2014

Sharia Law vs Insurance - Senior Cleric Calls It “Haram” (Forbidden)

The Underwriter’s Insider

News 27 28 32

Warrrants Issued For Georgia Insurance Agent - Sarah Amber Winans Charged With Premium Fraud Eric Holder Plays The Race Card Cannot Take Responsibility For Failed Policies Greta Van Susteren Flat Owns Virginia Democrat Mike Dickenson - Exposes Big Lie Told About Tea Party...

32 33

See What A Drone Sees From 17,500 Feet - You’ll Be Amazed!

New Survey: What Is The Number One Reason People Shouldn’t Get Behind The Wheel?

36 37 37

Allstar Underwriters Acquires South Atlantic Underwriters

Florida Announces Dozens Of Workers’ Compensation Fraud Arrests At Collier County Business

Marketscout Acquires Underwriting Facility From A-Rated Insurer Nationstar Mortgage Selling Off “Insurance Agency” Handling Enormously Profitable Forced-Place Insurance

NASA And Boeing Launch System Contract To Develop The Core Stage Of New Space Launch System

Louisiana Urges Potential Rideshare Drivers To Review Auto Insurance Coverage Before Signing Up!

39 40

President Obama’s Workout - Pretty Damn Funny...

Barry Zalma Shows Line-Up Of Insurance Fraud Education Material

Florida’s CFO Jeff Atwater Blasts New York’s Gov. Cuomo After Misleading Ads Run In Florida

www.underwritersinsider.com

Sponsors 4 6 7 8 15 16 18 22 22 23 34 35 37 41 42

JMJ Brokers Modern Insurance Consultants QQ Solutions H.O.P.E. St. James Insurance Company Clearwater Underwriters NASA - Eclipse Agency Mgt. Accu-Auto SLB Group Encore HR Personnel Solutions Barry Zalma, Esq. The Towing & Rental Group FYI Georgia View & News Orrin R. Beilly, Esq. Financemaster

Cover Photo: © R. Manera

PREPARING YOUR AGENCY FOR SALE

BY KATHRYN CHRIST, BUSINESS BROKER

or many agency owners, the agency is the largest financial asset they own. Therefore, it is critical to ensure top dollar when it’s time to exit the marketplace. Unfortunately, some owners choose to hang onto their agencies and let their book slowly die off rather than capitalizing on its value at the time of peak performance.

you will be paid a second time by the buyer of your agency. Therefore, increasing revenue can be very profitable for you as you approach the sale date.

Corporate tax returns will be scrutinized during due diligence, so build value for your agency by accurately reporting income and expenses. Reduced income or excessive expenses on your tax returns might save you money with the tax man, but it will depress the value of your business for the buyer.

Don’t let your agency dwindle away. To ensure the greatest value for your agency, begin with a long-term plan. Ideally, your transition preparation should begin two to three years before your exit. This time should be used to take measure of four critical areas, including sales trends, financial records, organized files and lien searches.

Organized files Organized files ensure a smooth due diligence process. Commission reports by carrier filed by month can make or break a sale. When you think of every commission report as an invoice to the buyer, it’s possible to begin understanding their importance to the value of your agency.

Sales trends Maintaining or developing upward sales trends is important to attracting buyers. All buyers want to believe that they will be successful and upward sales trends encourage this belief. In fact, upward sales trends will ensure you are paid twice for every policy. First, you will be paid commission on the policy you sell and second, since many purchase prices are based on a multiple of sales, 4

agency accounts for business only. Reserve the trust account for its intended use - premium transactions.

Financial records

For policies without a corresponding commission report, consider what other proof of commission you can provide. For instance, a commercial policy can be verified using the dec page and the commission rate can

Financial records are central to the due diligence process. Keeping your bank accounts clean enables a foundation of trust to be built between you and the buyer. Keep a clear line between business and See Preparing Agency For Sale Pg 27 personal expenses by using the The Underwriter’s Insider

www.underwritersinsider.com

➨ Modern Insurance Consultants is a nationwide insurance agents E&O specialist and the #1 writer of agents E&O in Florida (FSLSO 2004 through 2010) ➨ Serving independent agents since 1994 ➨ One application gives you access to 18 markets writing agents E&O ➨ Modern Insurance Consultants has the E&O coverage you need • Limits available up to $10,000,000 • Premiums starting at $1,200 and deductibles as low as $1,000 • Exclusive E&O programs from A rated carriers • Insolvency, Defense Costs Outside the Limit and First Dollar Defense coverages available • 24 hour quote turnaround with our exclusive 2 page QuickQuote Application for agents and brokers available on our website

Have you been declined, non-renewed or rate increased? Apply now at www.modernins.com 1348 Old Dixie Highway Homestead, FL 33030 ph: 305.248.9495 fax: 305.248.9496 www.modernins.com info@modernins.com

The Underwriter’s Insider

QQSOLUTIONS DELIVERS ROBUST COMMERCIAL FUNCTIONALITY WITH THE RELEASE OF QQCATALYST® 3.0

QQSolutions has released the latest version of its QQCatalyst cloud-based agency management system. Version 3.0 adds powerful tools agents need to manage their Commercial book of business to this easy-to-use system, plus several feature improvements and enhancements.

QSolutions, Inc., the leading provider of agency management systems for more than 5,000 independent insurance agencies, announced the latest release of its revolutionary cloud-based insurance agency management system QQCatalyst. Catalyst version 3.0 introduces essential Commercial elements that enable Agents to profitably accelerate their operational workflows as well as several feature enhancements. Our 3.0 release reduces many of the pain points that agents encounter by accelerating workflows and reducing the double entry required by so many of the agency management systems today." New features include rapid Proposal generation and Policy Summaries with the click of a button. Agents can provide both existing and prospective customers with www.underwritersinsider.com

a comprehensive summary of all their current and future insurance policies in pre-formatted professional templates that are automatically saved to the customer's record. Enhanced email functionality, allows for faster Proposal and

workflows and reducing the double entry required by so many of the agency management systems today,” said Mark Malis, Chief Executive Officer of QQSolutions. “Our customers are key contributors to our product roadmap, and by

Policy Summary delivery as well listening to them we have been as seamless email integration able to develop some sizable for easy communication with innovations in this 3.0 release.” customers. QQCatalyst 3.0 also simplifies "Our 3.0 release reduces many how the ACORD 27 Evidence of the pain points that agents encounter by accelerating See QQ Solutions s Pg 35

Table of Contents

AUGUST 2014 A Publication of AdMax Corp Corporate Offices P.O. Box 31551 Palm Beach Gardens, Florida 33420 561.718.0745 info@underwritersinsider.com © Entire Contents 2014 AdMax Corp

To best navigate The Insider, begin with the Table of Contents and select your topic. On the bottom of most pages is a Table of Contents link that will immediately return you for your next topic selection. EVERY SPONSOR AD LINKS DIRECTLY TO THE SPONSOR’S WEBSITE. CLICK ON ANY AD TO VISIT OUR FINE SPONSORS!

www.underwritersinsider.com

Table of Contents

The Underwriter’s Insider

WATCH TV FOR FREE - YOU CAN CUT THE CABLE AND GET YOUR SPORTS, NEWS AND SHOWS

Chromecast, Amazon’s FireTV, video game consoles and smart TVs. To make it worse, not every streaming service has every show and not every gadget supports every service.

Oh, and Google just announced Android TV software that’s going setbacks for TV consumers. Like to power a bunch of upcoming you, I just want to watch what smart TVs and set-top boxes. I want when I want, and I don’t Given what happened to Google want to juggle five services or TV, I’m not holding my breath, but it’s another option you have mortgage my house to do it. to wade through. Click here for To get a better sense of the a guide to help you navigate problem, let’s look at what’s ditching cable. currently available. We’ve got cable, satellite and over-the- So is it better to just avoid the air broadcasts. For online video whole thing and stick with streaming, there’s Apple’s iTunes cable? No. If you need to bring Store, Google Play, Netflix, Hulu, down your monthly bills, cable Amazon Instant Video, YouTube is probably one of your biggest expenses. and a dozen others.

Really Cool Info - by Kim Komando

he Supreme Court recently dealt a huge blow to on-demand TV viewing. It ruled that a company called Aereo is breaking copyright law by retransmitting over-the-air broadcasts. If you haven’t heard of Aereo, it acts like a super digital video recorder. For $13 per month, you could watch any broadcast show in your area on your TV, computer or mobile gadget whenever you wanted. But now Aereo is no more.

To This is just another in a long string of

actually use a streaming service, you have your choice of Apple TV, Roku, G o o g l e’s

Of course, before you do anything drastic, call your cable company. Tell them, sincerely, your cable bills are too high and you need to cut some services; you might come out with a good deal. Even then, you should think hard about whether or not you actually need cable. How many of the 500 stations do you watch anyway? Fire up a site like Can I Stream It? or GoWatchIt to see which of your favorite shows are available online and on which services.

See Kim Komando Pg 36 www.underwritersinsider.com

Table of Contents

HOW COINSURANCE WORKS Even Insurance Agents Can Use A Refresher...

The authors of the coverage forms were aware that expecting individuals and businesses to carry 100% of the value of their property is unrealistic. They allowed the choice (and the corresponding premium level) of a percentage of the value of the property.

oinsurance is an often misunderstood term and one that causes frequent dissatisfaction with insureds over claim settlements. Most losses are partial losses. It is rare that the entire building or amount of Covered Property is totally destroyed. Knowing this, many individuals when insuring their business property seek limits for only part of its value. The insured reasons, if one is more likely to have a partial loss than a total loss, why spend premium on complete insurance?

Barry Zalma, Esq., CFE is a California attorney specializing in insurance coverage, insurance claims handling and fraud who serves as a consultant and expert for insurers and policyholders. He founded Zalma Insurance Consultants in 2001 and serves as its senior consultant. He recently published an e-book, “Getting The Whole Truth,” which is available at his Web site, www.zalma.com. Go to Zalma Books at http://www.zalma.com/zalmabooks. htm.

This reasoning by insureds, of course, defeats the concept that insurance is the sharing of risk. The insured that does not insure total values is not sharing risk equally with other insureds. If most insureds chose to insure only part of the value of their property, the insurance industry would still have approximately the same number of claims to Join Barry Zalma’s new Blog:

http://www.zalma.com/blog

pay; however, the premiums that it collected to pay those claims would be vastly reduced. In order to have enough money to pay the losses, insurers would charge more for the lower values that insureds chose to insure. Those insureds who chose to insure the full value of their property would pay even more than they now pay for the same amount of coverage. Encouraging insureds to carry full insurance on their property allows premium levels to be fair.

Table of Contents

The percentage that they choose is called the “Coinsurance Percentage”. The insured and the insurance company are co-insuring the property because the percentage that the insured chooses not to insure represents the amount of coverage that the insured is insuring himself. In order to encourage insureds to insure a reasonably high percentage of their property’s value, the coverage form provides the incentive of the Coverage Extensions to those insureds who choose at least an 80% coinsurance Percentage. The first Additional Condition explains how coinsurance works: 1. Coinsurance If a coinsurance percentage is shown, in the Declarations, the following condition applies.

The Underwriter’s Insider

a. We will not pay the full amount of any loss if the value of covered property at the time of loss times the Coinsurance percentage shown for it in the Declarations is greater than the Limit of Insurance for the property. The limit of insurance has to satisfy the coinsurance percentage in order for the full amount of any covered loss to be paid.

how much of such a loss will be paid. It provides the formula in 4 steps:

As an example consider the insured who chose an 80% coinsurance percentage and a coverage limit of $220,000. After a loss the company adjuster determined that the full ACV of the property was $250,000. Did the insured meet the coinsurance requirement?

(2) Divide the Limit of Insurance of the property by the figure determined in step (1) $100,000/200,000 = .50

ANSWER: Yes. 80% of $250,000 is $200,000. The insured’s limit was $220,000. If the insured carried only $100,000 coverage would he have met his coinsurance requirement? ANSWER: No. Obviously, $100,000 is less than $200,000. The first paragraph of the Additional Condition on Coinsurance told us that unless the insured complied with the chosen coinsurance requirement, a loss will not be fully paid. The second paragraph of the Coinsurance Condition tells us www.underwritersinsider.com

The insurer determines the most it will pay using the following steps: (1) Multiply the value of covered property at the time of loss by the Coinsurance percentage: $250,000 x 80% = $200,000.

Notice that the deductible is subtracted from the adjusted loss. The deductible subtraction is the last step in the Coinsurance process. This is somewhat different from forms that were in use earlier. The new methodology is less advantageous to the insured and so is more reason to make sure that the coverage limit satisfies the Coinsurance requirement.

When an insured, usually with the assistance of an insurance agent or broker, determines the coverage limit of a policy they are almost always thinking in terms (3) Multiply the total amount of current values. A building that of the covered loss, before the has an actual cash value today application of any deductible, by of $500,000 must be insured to the figure determined in step (2); $450,000 in order to meet a 90% and If the covered loss amounted coinsurance requirement and to $40,000, then step (3) would have losses fully covered (minus be: $40,000 x .50 = $20,000. the deductible, of course). If a covered loss occurs in the latter (4) Subtract the deductible from part of the coverage term, it the figure determined in step (3). is possible that the ACV of the If the insured’s deductible was building may have risen. It might $250.00, then step (4) would be: be $550,000 by then. Similarly, $20,000 – $250 = $19,750. the value may have reduced. The amount determined in step Regardless, the coinsurance (4) is the most the insurer will pay. clause is applied at the “time of For the remainder, the insured loss”. will either have to rely on other insurance or absorb the loss The insured will not profit nor himself/herself/itself. will the insured obtain a reduced premium if his building’s value The authors of the ISO form is reduced. He will, however, wanted to make the coinsurance recover his full loss. methodology very clear so they put in the form three coinsurance The coinsurance clause does examples. I just used the first one. not always cause a penalty. in a The examples in the coverage See Coinsurance Page 20 form also follow:

Table of Contents

TREMORS – OBAMACARE’S PROBLEMS WAITING JUST BELOW THE SURFACE

OP/ED BY SPENCER A. LEHMANN, RHU

emember the movie “Tremors”, with Kevin Bacon? About those worm-like creatures with huge jaws, moving about just below the surface of the earth waiting to come up and eat whatever was moving around on top of the earth, gobble them up, and then go back down to digest its meal? That’s what if feels like at the moment, as we await the continuing saga of ObamaCare, not the movie. It is August 2014 and we are a world at war. Israel is fighting for its life in the Middle East against Hamas, dedicated to Israel’s destruction and the annihilation of the Jews; ISIS is taking over Iraq and has issued orders to the Christians that they either convert, pay up, or die; the war in Syria continues unabated; Iran is working feverishly on its nuclear bomb capability and is funding Hamas; Libya is in turmoil and the US just closed its embassy; Ukraine is fighting to maintain its independence from Russia against Russian armed

Spencer A. Lehmann is a Registered Health Underwriter (RHU), whose company, Lehmann/Wood & Associates, Inc., specializes in Group and Individual Long Term Care insurance and Medicare Supplemental Coverage. Mr. Lehmann retired from his company in 2005 and now spends his time writing on Health Care Insurance and Political Issues, both of which have encompassed over 40+ years of his life. He has been an actively involved member of the National Association of Health Underwriters (NAHU) since 1978, and serves on the Board of Directors of several Charitable Organizations’ helping Special Needs Children, and Inner-City Children to experience and participate in the world of the Arts and Music. In his free time he plays golf with his wife, Fran, who usually wins.

Table of Contents

and supported Rebels; Afghanistan is witnessing horrible and deadly incursions by the Taliban who just stopped a bus and killed all of the occupants for no other reason that they could; The American Border with Mexico is being overrun with vast thousands of Illegal Aliens, many of them children; and Barack H. Obama, president of the United States of America, is fighting golf balls on golf courses trying to improve his game and is simultaneously fighting to raise Millions of dollars fundraising for Democrats in preparation for the “War” to keep the Senate in the November 2014 Midterm elections. It’s tough being president of the United States when the World is at War. All the while, there is a rumbling just under the surface of the Earth in America, and its name is “Obama’sCare”. As with those creatures in the movie “Tremors”, we can’t see them all yet, but they are there, rumbling just below the surface. An advantage to the many issues troubling Americans not being addressed at the The Underwriter’s Insider

moment, with so much attention turned to the violence occurring all over the world, is that we tend to forget, if only for now, the various issues still smoldering on the American home fires, such as the IRS scandal, the Benghazi Scandal, the Scandal of Mr. Obama being the first president in American History to negotiate with Terrorists (the Taliban), the first president to recognize a terrorist organization as a legitimate government (Hamas), and among the many other scandals plaguing this administration, the VA Scandal, alive and well with our veterans dying because of a lack of care and the attention promised them when Mr. Obama first took office. Wonder what those creatures called “Obama’sCare” look like? Among other characteristics they look like the FATCA Tax, just implemented on July 1st this year, and discussed in length in the last issue of this magazine: [HERE] They look like the Employer Mandate, due to hit next year.

FREE CLASSIFIEDS!

That mandate is estimated to cost $6 per hour per family for Family Coverage and that is a huge cost to be born between the employer and employee, either jointly or for just the employee depending on how employment adjustments are made, and could wreak havoc on the American job market and economy: [HERE]

ignored or misrepresented to the American Public continues to come of the tracks that were never well laid out, with the true “Bones” of this law, the Individual Mandate still to prove to be as brittle as a straw in the wind.

They look like “Obamacare Fraud”, “GAO Study finds almost all fake applicants are approved for subsidized ObamaCare: [HERE]

See Tremors - Page 26

Adding to all of the unanswered questions about the future of

They look like the incredible indecision by the Courts regarding the Obamacare subsidies, which as they now stand may or may not be legal, depending on future court cases and an eventual Supreme Court ruling, as we now have a federal court ruling them illegal, and another one ruling them legal: [HERE] The future of the State Exchanges remains up in the air, as several are yet headed for a fall, the socalled “Back Room” of healthcare. gov has yet to be completed (ain’t that great?) and this once so well hyped and facts so well

JOIN MY NETWORK!

HELP WANTED — POSITION WANTED 4 — SALE ITEMS

CLICK HERE! www.underwritersinsider.com

Table of Contents

FLORIDA ANNOUNCES ARREST OF MIAMI AGENT FOR STEALING NEARLY $1.1 MILLION IN INSURANCE PREMIUMS

ALLAHASSEE – Chief Financial Officer Jeff Atwater today announced the arrest of Carlos Gutierrez, the former president and owner of G.M. Underwriters in Miami, on grand theft and fraud charges after an investigation revealed he stole nearly $1.1 million in insurance premiums from seven insurance and premium finance companies. “I am proud of our investigators for

uncovering this fraudulent scheme that broke the law and the trust of everyone who did business with this company,” said CFO Atwater. “Insurance fraud drives up the cost of insurance for all Floridians and it will not be tolerated.”

that Gutierrez directed his staff to divert insurance premiums between March and August 2012 to pay his own business debts. Gutierrez, his agency and top staff have been permanently banned from the insurance business in Florida.

An investigation led by the Department of Financial Services’ If convicted on both charges, Divisions of Insurance Fraud and Gutierrez faces up to 60 years in Agent & Agency Services found prison.

THE MOST AMAZING AIRCRAFT EVER BUILT? THE LOCKHEED SR-71 BLACKBIRD Former SR-71 Pilot “Buzz” Carpenter Relates Some Incredible Stories

Table of Contents

The Underwriter’s Insider

GEORGIA AGENT ARRESTED AND CHARGED WITH FRAUD FOR OPERATING AN UNLICENSED INSURANCE COMPANY

investigation has turned up more than 750 potential victims of this scam and we expect for additional charges to be filed.”

Arrested was John Paul “There is a serious Kill, 63, who owns the financial threat Appeal Insurance Agency, to consumers located at 5548 Naylor whenever you have Court, Norcross, Ga. a small operation Kill is charged with 10 counts like this, ran out of someone’s of insurance fraud for selling home without proper regulatory bogus policies and operating an oversight,” Hudgens said. “Our

Hudgens said an investigation by his Fraud Unit revealed that multiple businesses located in Georgia, Alabama, Arkansas, Arizona, Florida, Mississippi, South Carolina, Texas, Tennessee and Vermont are affected by Kill’s fraudulent practices. The businesses targeted by Kill were commercial trucking firms and constructions companies.

tlanta – Insurance unlicensed insurance company. Commissioner Ralph He surrendered to Hudgens said a Gwinnett authorities at his Norcross home County insurance agent and was booked into was arrested July 24, the Gwinnett County 2014 and charged with Jail. No bond has multiple counts of fraud. been set.

www.underwritersinsider.com

Table of Contents

The Underwriterâ&#x20AC;&#x2122;s Insider

AGENT SCAMS SENIORS OUT OF MORE THAN $2 MILLION

Department of Insurance Asks Additional Victims To Come Forward

ALM DESERT, Calif. -John Paul Slawinski, 59, was arrested at his home in Palm Desert on July 29, and is being arraigned on Friday, August 1, at1:30 p.m. at the Riverside Hall of Justice, Department 411,4100 Main St, Riverside. Slawinski is charged with five felony counts of financial elder abuse and five counts of burglary for allegedly ripping off five senior citizens for more than $2 million through the sale and surrender of investment annuity products. Bail is set at $2,000,000. An investigation was launched by the Department of Insurance after receiving complaints regarding Slawinski's business practices involving the sale and surrender of annuity products. Investigators allege that Slawinski, a licensed insurance agent, convinced some victims to surrender annuities and investment products with the promise of higher returns through new investments and conned other victims into giving him money to invest for them. Slawinski did not purchase annuities or investment products, nor did he refund the victims' money. www.underwritersinsider.com

"I find it particularly appalling when people in the position of trust violate that trust and take advantage of vulnerable senior citizens," said Commissioner Dave Jones. "Consumers should

be able to trust their agent when making important insurance decisions. Consumers often rely on the advice of their agent when they are taken advantage of the result is often devastating." Slawinski concealed his theft by providing the victims with

fraudulent financial statements, and by issuing minimum investment payments to lead them to believe their insurance investment and life savings were secure. The Department of Insurance is looking for additional victims in this case and encourages anyone that may have done business with Slawinski and/or JPS Insurance Services to contact the Rancho Cucamonga Regional Office at (909) 919-2200. The Riverside County District Attorney's Office -Elder Abuse Unit is prosecuting the case. This case is being investigated and prosecuted under the Life and Annuity Consumer Protection Program (LACPP). LACPP provides grant funds to counties for the prosecution of financial abuse in life insurance and annuity product transactions.

Advertise In Americaâ&#x20AC;&#x2122;s Favorite Insurance Magazine! Reach More Readers At a Lower Cost Then Ever Before! Free Professional Ad Creation!

INFO HERE

Table of Contents

Breaking News

IG announced a compensation package for new CEO Peter D. Hancock who will receive a raise when he becomes president and CEO of American International Group, Inc. in September of 2014 according to data from a filing AIG made with the SEC. Hancock’s comp package will include a $1.6 million base salary with short-term bonuses to $3.2 million and a target of $7 million - a raise of about $2 million from the prior year when he was Executive V-P of the P&C division at AIG. For purposes of perspective, the top earner in the insurance sector is Travelers CEO Jay Fishman with a total comp package of $18.1 million in 2013.

redOrbit.com “At this time, the study proves only correlation between telomere length and aging or cancer. The team concedes further laboratory work is required to establish a relationship of causality. That work will show whether human telomeres respond to the same signals as yeast. If they do, as the team believes they will, scientists will use the findings to develop medical treatments and dietary guidelines. The long and short of it, for now, is that if you want to lengthen

your telomeres, thereby lengthening the potential life of your cells, you may want to add a few 12 ounce curls to your exercise and diet regimen.” [MORE]

ome of the health insurance carriers that cheered Obamacare because they liked the mandates, may now be rethinking their position. Under the Medical Loss Ratio Rule in Obamacare, sometimes referred to as the 80/20 rule, health insurance carriers are forced to spend 80% of their premium dollars on “patient care and quality improvement activities.” Nationally, carriers will be forced to refund $330 million.

ill coffee or beer contribute best to your longevity? According to Alan McStravick for 18

Table of Contents

The Underwriter’s Insider

exas teens may be giving up their cars as a recent rate increase jumped premiums 81%. Teen drivers in New Hampshire, however, are looking enviously at Texas teens - the New Hampshire rate increase is 111%.

he Florida Office of Insurance Regulation (Office) has approved the removal of up to 10,000 multi-peril personal residential policies from Citizens Property Insurance Corporation to Southern Oak Insurance Company. This is part of the state’s ongoing effort to reduce the number of policies in state-backed Citizens and transfer them into the private insurance market. Southern Oak has requested to remove 8,500 policies from Citizen’s Personal Lines Account (noncoastal properties) and 1,500 from the Coastal Account (coastal properties) for the September 16, 2014 takeout period.

Americas-Houston Hotel. The last two Conferences have sold out, including a record 16 sponsors in 2014. Registration will open in early November 2014. The Conference is designed for insurance buyers, risk managers, agents, brokers, underwriters, adjusters, attorneys, and others who must understand, mitigate, or insure the complex exposures of oil and gas exploration, production, and servicing. Multiple workshops will be presented by nationally known risk management, insurance brokerage, underwriting, or legal experts who have spent years working in this specialized field. They will focus on providing practical strategies and best practice risk management tactics to make certain an organization is properly insured against related oil and gas industry risks. To learn more, please visit http://www.irmi.com/ conferences/energy-risk/ default.aspx, or call (800) 827–4242.

nternational Risk Management Institute, Inc. (IRMI®), has announced rown & Brown, Inc. (NYSE: the 2015 IRMI Energy Risk & BRO) today announced Insurance Conference will be its unaudited financial held on March 16–18, 2015, in results for the second Houston, Texas, at the Hilton quarter of 2014. Revenues www.underwritersinsider.com

Table of Contents

for the second quarter of 2014 under U.S. generally accepted accounting principles (“GAAP”) were $397.8 million, increasing $72.1 million or 22.1% as compared to the second quarter of the prior year. Organic Revenues (as defined below) increased by 3.8% after adjusting for Colonial Claims’ revenue related to Hurricane Sandy in the second quarter of 2013. EBITDAC -- pro forma Margins (as defined below) were 34.2% vs. 33.8%, an increase of 40 basis points from the second quarter of the prior year. Diluted earnings per share under GAAP were $0.42 vs. $0.36 in the second quarter of the prior year, representing a 16.7% increase.

he largest Obamacare provider in Florida is hiking rates over 17%. Florida Blue, with the largest piece of the Obamacare exchange in the state claims to be under “tremendous financial pressure” as the ill conceived Affordable Care Act is rolled out. Florida Blue’s CEO: “It is far from clear that large enrollment in the marketplace is a financially beneficial place to be.” 19

Continued from Page 11

COINSURANCE situation where the loss is severe, or total, the insured may recover the full policy limit even after application of the policy limit. Consider the following example: For example: When: The value of the property is $250,000, The Coinsurance % for it is 80%, The limit of insurance for it is $100,000, The deductible is $250.00, The amount of loss is $250,000, Step (1): $250,000 x 80% = $200,000 (the minimum amount of insurance to meet your Coinsurance requirements) Step (2): $100,000 / $200,000 = .50 Step (3): $250,000 x .50 = $125,000. Step (4): $125,000 â&#x20AC;&#x201C; $250 = $124,750.

ZALMA OPINION Coinsurance clauses have two purposes. They give the insured an incentive to insure property up to its true value by causing the insured to self-insure a part of the risk if proper limits are not acquired. It protects insurers against insureds who attempt to avoid appropriate premium. Insurance is a business of utmost good faith. The self insurance created by a coinsurance clause is not a penalty it is a way of enforcing the promise made by the insured at the time the policy was acquired that insurance equal to the true value of the policy was acquired.

The insurer will pay the $100,000 limit of liability of the policy. Regardless of the application of the coinsurance clause the amount recoverable is still more than the policy limit and the insured collects the limit. The insured, however, must make up the difference between the limit and the amount of loss.

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

HERE

Note: not only does the insured recover the entire policy limit but also is not required to pay the deductible because the adjusted loss less the deductible still exceeds the policy limit. 20

Table of Contents

The Underwriterâ&#x20AC;&#x2122;s Insider

REAGAN CONSULTING OPENS GROWTH & PROFITABILITY SURVEY FOR 2Q 2014 Covers Progress of Large & Mid-Size Agencies, Brokers

agency receives a customized, confidential report of its own financial performance compared with the survey participants at large. In addition, participants receive Reagan's quarterly commentary highlighting industry trends impacting agents and brokers. For information about participating in the OGP survey, contact Michelle Appelbaum at (404) 2335545 or by email to michelle@ reaganconsulting.com.

Reagan Consulting's OGP survey, first conducted in 2008, measures TLANTA (July 14, 2014) agency financial performance in -- Reagan Consulting, a key value creation benchmarks management consulting including organic growth and and merger-and-acquisition profitability. The results help advisory firm for the insurance agents and brokers benchmark distribution system, launched their operations in real-time. its survey of insurance agency growth and profitability for the About Reagan Consulting: second quarter of 2014. Reagan Consulting is a management consulting firm The firm's Organic Growth and providing strategic consulting, Profitability (OGP) survey is a valuation, and merger-andreal-time indicator of growth acquisition (M&A) services to and profitability results for the independent insurance privately held insurance agents distribution system. The firm's and brokers. Approximately 140 services for publicly owned and agent/broker firms (including privately held independent roughly half of the industry's insurance agents and brokers, largest firms) regularly complete bank-owned agencies, and other the survey, and there is no cost participants in the insurance to participate. Median revenue of distribution marketplace the firms completing the survey include: appraisals of fair market typically is $15 million, making it value, mergers and acquisitions the industry's preeminent survey advisory, ownership perpetuation of mid-size and large privately planning, strategic planning held brokers. facilitation, key employee compensation and equity plan Agencies are invited to design, and agency performance participate. Each participating benchmarking.

www.underwritersinsider.com

Table of Contents

Company information: ReaganConsulting.com (404) 233-5545 info@reaganconsulting.com Reagan Consulting One Piedmont Center, Suite 500 Atlanta, Georgia 30305

FREE CLASSIFIEDS HERE

OHIO BOASTS LOWEST AUTO INS RATES IN U.S.

OLUMBUS — Lieutenant Governor and Department of Insurance Director Mary Taylor announced Ohio’s average auto and homeowner’s rate changes for 2013. The average rate changes for the top 10 private passenger auto and homeowner’s insurance groups were smaller than 2012 changes – increasing 2.6 percent and 7.4 percent, respectively. “Ohio’s insurance market continues to provide consumers with choice and competitive rates,” Taylor said. “With nearly 700 companies selling auto and homeowner’s policies in Ohio, rates remain well below the national average saving consumers more of their hard earned dollars.” 21

Table of Contents

The Underwriterâ&#x20AC;&#x2122;s Insider

“The Final Authority on Everything!” Sharia vs Insurance

ecently, I heard that insurance is banned by Islamic law because it is a form of gambling. Tell me it ain’t true! — B.C.C., Lake Mary, FL If the concept of Scarlett Johansson or Jessica Alba wrapped from head to foot in a burkha isn’t enough reason to resist the planned Islamic take-over of the West, you now may have another. At least in the opinion of certain Islamic clerics, life insurance violates Islamic law. According to an AP story out of Lucknow, India, excerpted here: One of South Asia’s most influential Islamic seminaries has issued an edict telling Muslims not to buy life insurance policies because they violate Islamic law. Clerics at the Dar-ul-Uloom seminary said Muslims should not invest in life insurance as ``life is given by Allah and to insure it or assure it, is a crime in the eyes of Allah.’’ “A true Muslim should never ever go for life insurance policies. This is against the wishes of Allah,’’ Maulana Shahid Rehan, a senior cleric at the seminary, told The www.underwritersinsider.com

ADVISOR

Associated Press. The edict was issued in 2006 following a query from a Muslim who had been approached by a private company to become an insurance agent and to buy insurance policies for himself and his wife. The edict from the seminary, said: “Insurance is not permissible because it is a sort of gambling. Moreover, it also involves interest money which is illegal under Sharia,” or Islamic law. “All religious scholars of Muslim sects are unanimous that all kinds of life insurance prevailing in our society are haram (forbidden)

Table of Contents

... they are either based on interest or there is gambling involved in it,’’ he said. One can extrapolate from the cleric’s statements that P&C insurance may also be against Islamic law, since it is based on the same actuarial science as life insurance. What we in the insurance industry call predicting and spreading losses based on a large number of homogenious exposure units and hard loss data, the Islamic cleric calls “gambling.” This is an example of what happens when 13th century religion addresses financial and business realities of 2014.

FREE CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider.

com/classifieds. Ads must be less than 501 characters plus a title line. Eligible free classifieds include help wanted, position wanted, personal ads, agency for sale/purchase, or the one-time sale of an item or items. Place Ad HERE!

REGULAR CLASSIFIED RULES:

Submit all ads online at: www. underwritersinsider.com/classifieds. Only $1.00 per word, including title line and response info. Payment must be received prior to print date. Ads run 3 mo.

Wholesale Broker Wanted Hallandale, FL

Regency Insurance Brokerage Services is seeking a top quality broker with deep relationships in the industry. If interested, please respond with your resume to the email address provided below. Thank you. mmartinez@riemerinsurance.com 11-6

2-20/2-15 AGENT POSITION WANTED MELBOURNE, FL AREA

Licensed 220/215 Agent with over 30 years experience looking for a position to help your agency grow. Prefer the Brevard County / Melbourne area Please send any inquiries to aainsctr@yahoo.com Thank you for your consideration. aainsctr@yahoo. com 11-6

QQ Evolution

Independent Contractor Agency seeking individual with experience in QQ EVOLUTION management system. Part time and project requirements,possible ongoing. Central Florida Coastal can work remotely. Send Resume to Ins4Biz@gmail.com or fax to 321-574-5915. 11-6

2-20 Agent Wanted Port Orange, FL

Part-Time Up to $18/hr -Independent Agency looking for a licensed 2/20 insurance sales producer. Donâ&#x20AC;&#x2122;t bother responding unless you are the best in sales and are able to prove it. Start now at the ground level of a new independent insurance agency in Port Orange. Must be good at sales and have a great ability to close deals and round out accounts. Email resume for additional information. If you are an ambitious insurance sales producer email me now: PortOrangeInsuranceAgent220@gmail.com 11-6

EXPERIENCED COMMERCIAL LINES CSR PALM BEACH,FL AREA Boca Raton,Fl- MGA/Wholesaler looking for experience commercial lines CSR/ Rater ,must be highly motivated,energetic with good communication skills. Good salary and benefits. Contact: ccalver@niuw.com 11-6

2-20 AGENT WANTED! BROWARD COUNTY, FL

Broward County Ins Agency needsan energetic, hardworking, experienced Commercial Lines Producer. Pls fax resume to 954-208-0011. 11-6

Table of Contents

4-40/2-20 Agent Wanted Deerfield/Boca Raton Licensed 440/220 Wanted in the Boca/Deerfield area for Active office. Great opportunity for the right person. Contact:insure4u954@aol.com 11-6

Roswell, GA Premium Finance Sales Opportunity Are you ready to take your sales career to the next level? Est. in 1984 and based in Roswell, GA, Advanced Insurance Systems Inc. is a fast paced, highf growth technology company that develops and markets premium finance software throughout N. America. While working mostly inside-sales in our Roswell office, you will be challenged by the development of new business and the on-going support for existing clients. Help move sales opportunities through demos, proof of concept and responding to requests for information and proposals. Resumes to:

Arthur@financemaster.com

10-10

Experienced CSR Wanted

Lake Worth/Lantana, FL Busy Lantana/Lake Worth insurance office seeking a full time customer service representative. Office experience is a must. A 440 is preferred however, not required. Hours are M-F 8:30-5:30 with 1 hour lunch. Please email resumes to csr@sfcins.net 11-6 The Underwriterâ&#x20AC;&#x2122;s Insider

Account Executive Washington, DC area AHT Insurance is seeking an Account Executive to work closely with clients in the marketing, servicing, development, and retention of commercial insurance accounts. The Account Executive will take a consultative role, making recommendations on the most appropriate and cost effective insurance solutions with a focus on high service satisfaction. For more information about this opportunity, visit www. ahtins.com. For consideration, please send your resume to smiley@ahtins.com. smiley@ahtins.com 11-6

Position Needed Workers Compensation Orlando - Fl E. Coast

Experienced Workers Compensation underwriter/marketing representative. Years of experience in the Florida market. Also experienced in the PEO industry and all casualty lines including Trucking. Please contact Tom @ toogreatt@yahoo.com 11-6

Marketing Rep Wanted

Orlando or Jacksonville The Marketing Sales Representative is accountable for the daily management and business relationship between the Company and a specific group of independent agents. Responsibilities range from establishing and managing agent’s sales against the Company’s strategic business goals; developing and monitoring sales; to training all levels within the agency regarding specific rating and service functions. Contact: marketing@windhaveninsurance.com 11-6 www.underwritersinsider.com

INSURANCE AGENCY FOR SALE Well known South Florida based insurance agency with over 35 years of experience. Opportunities in Broward, West Palm, Orange and Hillsborough Counties. Great opportunity to get into the business with one of the industry’s most locally recognized brands. 8 week training and ongoing support. Operations Manual, marketing & advertising. NO EXPERIENCE NECESSARY, INSURANCE EXPERINCE WELCOMED. contact: franchise@estrellainsurance.com or call us at 1-888-511-7722 11-6

Insurance Agent Tampa St Pete Area Are you interested in a long term career that builds your income from year to year; is a great place for a selfmotivated person to succeed; allows you to be the expert others look to for answers; provides you a training period working side-by-side with an experienced agent; gives assistance to people, who will really appreciate it. Uses a business model that is cutting edge and when you follow, duplicate and master, you will be successful¡Kand we will show you how! jeanette@floridabestquote.com 11-6

Broward County 2-20 Agent Wanted Broward County Ins Agency needs An energetic, hardworking, experienced Commercial Lines Producer. Pls fax resume to: 954-208-0011 11-6

Table of Contents

Insurance Agent up to $60K 4-40 / 2-20 (Near Boca Raton)

QQSolutions, field Beach

Inc.,

Deer-

agency management software Train new customers in use of QQSolutions products & services. 220 / 440 at least 3 years of customer service experience working in a P&C insurance agency. Experience in using agency management systems, such as QQSolutions, QQEvolution/ QuickFile, QQCatalyst, TAM/DORIS, AMS 360, Hawksoft, etc.Excellent verbal & written communications skills Great presenter and trainer. Contact: dsteinberg@qqsolutions.com 11-6

MORE CLASSIFIEDS

Position Wanted Worker’s Comp Underwriter Orlando/East Coast of FLA Experienced Workers Compensation underwriter/marketing representative. Years of experience in the Florida market. Also experienced in the PEO industry and all casualty lines including Trucking. Please contact Tom @ toogreatt@yahoo.com 11-5 25

Continued from Page 13

TREMORS

Continued...

Experienced CSR and/or AgentsFt. Lauderdale area

Experienced Life Agency Personnel Wanted

Obamacare is that we won’t know the outcomes of many of these issues, and they won’t be addressed until after the -220 or 440 minimum of 1 year Seeking marketing and cus- 2014 Midterm elections as after exp.in Auto/Home/Commercial tomer service personnel with Congressional Summer -Must have a GREAT “Can Do” life insurance experience to the attitude -Must be able to work at office in Oviedo. We Recess much attention will be multi-task and be a willing are a wholesale Brokerage turned to campaigns as those and able Team Player -Must General Agency serving indehave the ability to treat pendent agents and financial up for reelection, all 435 House our clients with the respect advisors across the nation. Members and 33 Members in the they deserve and give them Contact: Senate, will be working to keep the best service they have info@lifeagents.com ever received Please, only 11-7 their jobs. happy serious people apply Marlinsii@aol.com or fax 954-587-7778 11-7

Commercial P&C Underwriter Orlando, FL Area Surplus Lines Experience Preferred. Orlando, FL Fashion Square area. Please e-mail your resume to: Resume@ChelseaSurplus.com No phone calls please.

11-7

Agents • CSRs Producers Pembroke Pines & Kendall, FL Area

Established and financially stable insurance agency is looking for Agents, CSR, and Producers for our Pembroke Pines (33029) and Kendall locations(33173). We offer: Base salary plus bonus and incentives Professional & pleasant work environment Great support and opportunities to grow with our company Send your resume to info@bestoneins.com 11-7 26

Experienced CSR/Agent Boca Raton-Deerfield

Anyone who think that we’ve seen the worse Obamacare has to offer, has simply been too caught up in other world issues, as President Obama must hope will be the case.

Established agency seeks experience CSR/Agent for non-standard agency. Good opportunity to grow with us.Excellent The facts are such that the worst working conditions. is yet to come. This train is Contact: continuing to come off the tracks, insure4u954@aol.com 11-6 and the worst fears of Senator Max Baucus, one of the primary architects of the PPACA, are on Personal Lines H.O. their way to becoming reality. Underwriters Needed Palm Beach,FL South FL (Palm Beach County)Dynamic growing homeowners ins company looking to grow their underwriting department. Must have a strong knowledge of FL HO market. Prefers insurance company underwriting experience. Minimum 3 years insurance experience in personal lines. Will evaluate risk and determine pricing and coverage. www.linkedin.com/ in/brendonporges/ 11-8

Table of Contents

PLACE YOUR FREE CLASSIFIED

HERE The Underwriter’s Insider

WARRANTS ISSUED FOR GEORGIA INSURANCE AGENT

“Our investigation indicates Continued from Page 4 that this agent was apparently preying on citizens in the middle Georgia region,” Hudgens said. “We believe Sarah Winans pocketed her clients’ money for homeowners and crop insurance coverage instead of forwarding the premiums to the insurance be verified from the company companies.” Sarah Amber Winans is contract. the principal agent at The investigation into Winans’ ABC Insurance Agency in Eastman now charged with agency and business practices Buyers will appreciate an has been conducted over the organized and simple filing premium fraud past several months Hudgens system, whether electronic said. Winans is alleged to have or in hard copy. However, tlanta -defrauded at least having these records available Insurance makes due $16,000 from electronically her clients. The diligence easier for everyone Commissioner investigation is involved. Ralph Hudgens continuing. announced on Lien searches July 8th, 2014 that Consumers who Finally, a lien search of the arrest warrants have conducted UCC registry in your state may have been issued business with prevent heartache during due for an Eastman, Ga., Winans and have diligence. If you have had a lien insurance agent who doubt about their on your agency due to financing has been charged coverage can call or another issue, it is in your best with insurance C o m m i s s i o n e r interest to have that removed fraud and forgery Sarah Amber Winans H u d g e n s ’ prior to the sale, or plan on in connection with Consumer Services using funds from the sale to policies she sold in Division at 800- satisfy the debt at closing. the middle Georgia. 656-2298. Phone lines are open from With attention to these four Sarah Amber Winans, 8 a.m. to 6 p.m., areas, you are ready to prepare 41, principal agent Monday through your agency for sale, build value of ABC Insurance and benefit from your hard work Friday.” Agency, located at and financial investment. 1414 Morgan Creek Insurance fraud Drive in Eastman Kathryn is a felony with a About the author: has been charged Christ is an insurance agency penalty of two to with seven count of 10 years in prison broker with JMJ Brokers, Inc. For insurance fraud and and/or a fine of up more information, visit www. three counts jmjbrokers.com or call (904) to $10,000. of forgery. GA Commissioner of 451-7604.

PREPARING AGENCY FOR SALE

Insurance Ralph Hudgens

www.underwritersinsider.com

Table of Contents

SAY WHAT? Notable Quotes You May Have Missed!

As if A Dozen Scandals & A Hundred Failed Policies Where Insufficient...

“

White House. Biden, a hopeful (at least in his own mind) candidate for the presidential race in 2016 working hard to come across as the “common man” by declaring himself an apparent financial buffoon.

Sorry, Mr. President. No Photo Op.

“

I appreciate the offer to greet you at Austin-Bergstrom Airport, but a quick handshake on the tarmac will not allow for a thoughtful discussion regarding the humanitarian and national security crises enveloping the Rio Grande Valley in South Texas would instead offer to meet with you at any time during your visit to Texas for a substantive meeting to discuss this critical issue.” - Texas Governor Rick Perry writing in a letter to President Obama who had been seeking a photo-op with the governor on his arrival in Texas to assess the immigration crisis on our southern border.

There’s a certain level of vehemence, it seems to me, that’s directed at me [and] directed at the president. You know, people talking about taking their country back. … There’s a certain racial component to this for some people. I don’t think this is the thing that is a main driver, but for some, there’s a racial animus.” Our whining U.S. Attorney General Eric Holder A Practical Viewpoint... who, like President Obama, cannot seem to take responsibility for disastrous Obama I object and take exception to everyone Administration policies - instead preferring to saying that Obama and Congress are blame nonexistent racism. spending money like a drunken sailor. As a former drunken sailor, I quit when I ran out of money.” - Bruce L. Hargraves, USN Retired Biden: “Hey! Don’t

“

Forget About Me!”

“

I don’t own a single stock or bond. I have no savings account.” - Vice-President Joe “Gaffe-Machine” Biden seeming to say, “Hey don’t forget about me!” after Hillary Clinton said she and Bill were “dead broke” on leaving the

From The “You’ve Got To Be Kidding” File

“

In the United States, Eid also reminds us of the many achievements and contributions of Muslim Americans to building the very fabric of our nation and strengthening the core of our democracy. On behalf of the Administration, we wish Muslims in the United States and around the world a blessed and joyous celebration.

Table of Contents

The Underwriter’s Insider

Eid Mubarak.” - President Barack Obama on the occasion of Eid-al-Fitr, a Muslim holiday marking the end of Ramadan - making comments that enraged many Americans. Having trouble remembering all those Muslim American contributions? Read on...

the World Trade Center bombing of 1992 and the World Trade Center Pentagon 9/11/2001 attack, Pan Am Flight 93, U.S.S. Cole bombing, the 2009 “Underwear Bomber,” the 1988 destruction of a 747 passenger jet over Lockerbie Scotland by Islamic Libyan madman Colonel Qaddafi, the 1983 bombing of Marine barracks in Beirut, Lebanon, the failed airline “shoe bomber, and More Great Muslim Contributions the Fort Hood shootings. There is not sufficient You remember all those contributions by room in this magazine to offer the complete list Muslim Americans to building the very of “contributions” by Muslims to the “very fabric fabric of our nation, don’t you? Remember of our nation...” the Muslim signers of the Declaration of Independence? And the Muslims who gave F-35 Fighter Jet In Trouble James Madison information about the Constitution of Medina that he used when The F-35 is double-inferior. [The new plane] framing the Constitution? Remember the can’t turn, can’t climb, can’t run.” - John Muslims who fought so valiantly during the Stillion and Harold Scott Perdue, analysts with War of 1812 and the Mexican War? Remember the RAND Corporation concluding in a internal the Muslim abolitionist Senators who faced written summary of the war game and later down the South in the antebellum Senate, leaked to the press, that the new F-35 fighter jet the Senate chamber ringing with their oratory the Pentagon was relying on to replace almost about how the Qur’an says to free slaves and so the entire inventory of existing fighters has the U.S. government should, too? Remember missed the mark badly. Others have publicly the Muslim regiments in the Civil War (all on stated that a 1950’s era Soviet Mig-21 could whip the Union side, of course!)? The Muslim the F-35 jet fighter in a industrialists who brought us railroads, dogfight... Sadly, the F-35 the telegraph, the telephone? The program has already Muslims who fought so valiantly in cost the American the Spanish-American War, World taxpayer a trillion dollars War I and World War II? The Muslim - and seems destined entertainers who kept us laughing on to produce an inferior the Vaudeville circuit and on the home aircraft. The vastly front during those terrible world wars superior F-22 fighter jet with their jokes from the Hadith?” has seen its program - From a rebuttal displayed on the website cancelled by the Obama administration after www.jihadwatch.org satirizing the president’s massive cost over-runs. There are over 125 F-22s comments. In fairness, the author probably in our arsenal, but they too suffer from serious should have mentioned these recent major mechanical problems with two Air Force pilots contributions of Muslims to the fabric of our recently going public and refusing to fly the nation: (there are dozens more, less significant) aircraft due to oxygen-supply problems they The 1979 Takeover of the U.S. Embassy in Tehran, claim exist on the F-22.

“

www.underwritersinsider.com

Table of Contents

July 2014

June 2014

May 2014

April 2014

March 2014

February 2014

January 2014

December 2013

November 2013

Table of Contents

The Underwriterâ&#x20AC;&#x2122;s Insider

October 2013

September 2013

August 2013

July 2013

June 2013

May 2013

April 2013

March 2013

February 2013

www.underwritersinsider.com

Table of Contents

FREE! free insider subscription!

GRETA VAN SUSTEREN FLAT OWNS VIRGINIA DEMOCRAT MIKE DICKENSON - EXPOSES HIS BIG LIE AS HE CALLS TEA PARTY DISHONEST Dickenson Provides An Excellent Example Of Liberal Messaging: Tell A Big Lie About Conservatives And Most Low-Information Voters Will Believe It - But Not Greta!

HERE To Visit Insider Sponsors, simply click on the Sponsor’s ad! 32

WHAT CAN A DRONE SEE FROM 17,500 FEET? YOU’LL BE AMAZED - WATCH THE VIDEO!

Table of Contents

The Underwriter’s Insider

FLORIDA ANNOUNCES DOZENS OF WORKERS’ COMPENSATION FRAUD ARRESTS AT COLLIER COUNTY BUSINESS

ALLAHASSEE - Florida Chief Financial Officer Jeff Atwater today announced that an investigation in Naples by the Florida Department of Financial Services’ Division of Insurance Fraud has revealed that as many as 146 employees of Fruit Dynamics, LLC, more commonly known as Incredible Fresh or Collier County Produce, may have committed workers’ compensation fraud. At least 27 of these employees are also believed to have stolen the identities of victims from 25 different other states.

compensation arrests and many arrests for identity theft that have been potentially devastating for victims,” said CFO Atwater. “Any time a person commits insurance fraud it drives up the cost of insurance for everyone.”

submit a claim for benefits. When insurance carriers don’t know who they are insuring, employees are put at risk of not being covered by insurance. Workers’ compensation fraud also raises the price of insurance for all employers buying coverage for The investigation into workers’ their employees. compensation fraud began when a former employee of Incredible The Division of Insurance Fraud Fresh who was seeking medical began making arrests today, attention for an on the job injury but the investigation remains admitted to using a fake identity to open and ongoing, including an gain employment and suggested investigation into who may have many of his former co-workers been creating and supplying had done the same. Under the fraudulent documents. The Florida’s Workers’ Compensation individuals arrested today are “I am proud of our investigators Fraud Statute, it is a third degree being held at the Collier County for following a lead that will felony to use a fake identity to Jail. result in dozens of workers’ either gain employment or to

Underwriting Consultant & Marketing Assistant Needed - Central Florida

Creekmore Insurance Group is a life insurance brokerage general agency serving a network of independent agents and financial advisers across the nation. Our mission is to recruit independent agents and advisers to write their life, long term care, and individual disability insurance with the insurers we represent. We have an immediate opening for a full-time underwriting consultant and marketing assistant.

Duties will include: www.underwritersinsider.com

• fielding inquiries from our existing network of agents • running quotes and creating proposals and sales presentations • calling on existing agents to offer support and generate additional business • This position does not involve cold calling. This is a full-time position at our office in Oviedo. For the right candidate, we provide significant career and income growth opportunities, including full time telecommuting and operat-

Table of Contents

ing an independent franchise agency on our network.

Experience Experience in financial services is required, including at least one year of life insurance sales, underwriting, or administration experience. CONTACT: John A. Creekmore, CLU, CFP, ChFC, CEBS Creekmore Insurance Group, Inc. (800) 359-5102 x 340 john@lifeagents.com 365 Aulin Avenue Oviedo, FL 32765 33

Experts and Consultants for Insurance Disputes 4441 Sepulveda Boulevard Culver City, California 90230 310-390-4455 zalma@zalma.com http://www.zalma.com

Consultation from Zalma Insurance Consultants (ZIC) can save you or your client thousands of dollars in the defense or prosecution of an insurance dispute. ZIC provides expert advice and counsel insurers and plaintiffs’ counsel find indispensable. Consultation from ZIC can save you, your counsel or client hundreds of hours of investigative and legal work. ZALMA INSURANCE CONSULTANTS is a service of Barry Zalma, Inc. a California professional corporation. Barry Zalma is an internationally recognized expert on insurance coverage, insurance claims handling, insurance bad faith, insurance fraud detection, the defeat of false and fraudulent claims, Barry Zalma, Esq. insurance claims handling, and the resolution of insurance disputes. As a consultant, expert witness, lawyer, author, mediator or arbitrator he serves all parties who need consultation or expert testimony on matters relating to insurance coverage, insurance claims handling, insurance fraud and the tort of bad faith. Barry Zalma founded Zalma Insurance Consultants to help resolve any insurance claim problem faced by you or your clients that do not need Mr. Zalma’s services as a lawyer. His experience and skill as a consultant and expert witness can make the difference before a jury or other trier of fact. For more than 44 years as a claims person and insurance coverage attorney, Barry Zalma has represented insurers, advised insurers on claims handling, interpreted coverages and testified as an insurance coverage, insurance bad faith, insurance claims handling and insurance fraud expert on behalf of insurers and policyholders in state and federal courts.

Expert Testimony

Zalma Insurance Consultants serves insurers, policyholders, underwriters, brokers, agents, adjusters, public insurance adjusters, lawyers and any person involved in an insurance dispute. Because he is an attorney licensed to practice law in the state of California M r. Zalma may be prohibited by California case law from acting as a consultant or expert witness and, therefore, refuses to serve in any situation where a past client of his law firm, Barry Zalma, Inc. is adverse to anyone seeking his services.

Y ou can obtain M r. Zalma’s C.V . at http://www.zalma.com and his e-book publications http://www.zalma.com/zalmabooks.htm and blogs daily at Zalma on Insurance, http://zalma.com/blog.

Table of Contents

The Underwriter’s Insider

CARINSURANCE.COM

Continued from Page 7

QQ SOLUTIONS

of Insurance form is managed. Agents are now able to generate and save multiple ACORD 27s for any number of property locations at once, dramatically reducing the amount of time spent on Evidence of Insurance forms. The new Quote Management functionality will track the status of quotes, reveal which carriers and MGA’s have the highest success rates, and provide close ratios for producers.

Survey: Drowsiness Is Number One Reason People Shoudn’t Drive

*They *They *They *They *They *They *They

were sleepy: 68% had a headache: 53% were sick enough to be in bed but got up to drive: 35% were less drunk than a friend: 23% weren’t wearing needed glasses or contact lenses: 16% were taking narcotic pain medicine: 15% had an arm in a cast: 8%

QQCatalyst version 3.0 is available immediately. For more information, visit the company’s website at QQSolutions.com or call QQSolutions at 1.800-9406600.

About QQSolutions, Inc. For more than 25 years, QQSolutions has delighted its customers by exceeding expectations in product quality, customer care and product support. Our feature-rich solutions help independent insurance agencies profitably grow revenues, enhance productivity and operate more efficiently. www.underwritersinsider.com

Table of Contents

Will your final mix and match of services be perfect? Probably not. However, the more people switch to on-demand or free services, the more it signals the established media companies that we want Be sure you check often as something different. options are added and removed regularly. Hopefully that will push them to make a system that puts Amazon, for example, just got consumers first, without driving most popular HBO shows like either side into bankruptcy. “Rome” and “True Blood” - and you can also sign up for HBO Go Well, I can dream can’t I? to stream those and “Game of Thrones.” Continued From Page 9

KIM KOMANDO

The NFL is bringing NFL Now to Roku and Apple TV so you can watch games. Of course, a subscription will cost you. Be sure to match the services you want with the streaming gadgets available. You’ll also want to take into account other gadgets you own like an iPad, which will work best with an Apple TV, or a Kindle Fire, which works best with Fire TV. Click here for more on buying the right streaming gadget for you. For sports, news and syndicated shows, an indoor HD antenna is a great choice. It will bring you highdefinition over-the-air broadcasts from local networks for less than the cost of one month of cable. And you can keep it for years. After the initial purchase, it’s basically free TV. Just be sure you know what stations you’ll get before you buy with a site like TVFool. 36

ALLSTAR UNDERWRITERS INC. ACQUIRES S. ATLANTIC UNDERWRITERS

layton, North Carolina – July 1, 2014 - Allstar Underwriters Inc. in Clayton, North Carolina has acquired the Managing General Agency, South Atlantic Underwriters Inc. in Erwin, North Carolina.

South Atlantic, which focuses on Commercial Auto and Trucking in the Mid-Atlantic region, will On the Kim Komando Show, the merge into Allstar Underwriters nation’s largest weekend radio talk (AUI) and operate under the AUI show, Kim takes calls and dispenses name. As part of the transaction, advice on today’s digital lifestyle, Tina Maynard of South Atlantic from smartphones and tablets to has joined the AUI team in Clayton online privacy and data hacks. as Assistant Vice President of For her daily tips, newsletters and Transportation. more, visit her website at http:// Commenting on the acquisition, www.komando.com. Wanda Manning President of South Atlantic, comments, "Allstar is a strong and dynamic FREE organization that provides superior financial strength and CLASSIFIEDS! greater access to products and services for our customers. We are confident that AUI will continue the focus on customer service HELP WANTED — POSITION that our business partners, for WANTED 4 — SALE ITEMS over 30 years, have come to expect from South Atlantic.”

CLICK HERE!

Table of Contents

Commenting on behalf of Allstar Underwriters, President, Randy Brown says "Ms. Manning and Ms. The Underwriter’s Insider

Maynard have built a dynamic and successful organization and we are extremely excited to have Tina join our team and to be part of their continued success. We wish Wanda much success and happiness as she moves into retirement.”

an admitted basis in 49 states.. The facility will target restaurants, including pizzerias, sandwich shops, sushi bars, and fine dining eateries. Coverage parameters include property, general liability, crime, and liquor liability, which can be offered in select states. The underwriting team will operate Allstar Underwriters, Inc. is a out of MarketScout’s Southfield, Managing General Agency/ Michigan and Dallas, Texas offices Wholesale Broker, specializing and will underwrite risks on in Property, Casualty, Inland behalf of their “A” rated insurer. Marine, Umbrella, Excess Liability, Professional Liability, Personal Richard Kerr, CEO of MarketScout, and Commercial Auto insurance commented, “We are excited products. Offices are located to be working with an insurer in Atlanta, GA and Clayton, NC. that has a proven track record of Please visit www.allstarund. stability in the RBT market. This com for more information. underwriting facility will provide Randy Brown President, Allstar our retail agent partners with Underwriters, Inc. rbrown@ an excellent product for their allstarund.com insureds.”

NATIONSTAR MORTGAGE

MARKETSCOUT SELLING OFF “INSURANCE ACQUIRES AGENCY” HANDLING UNDERWRITING ENORMOUSLY PROFITABLE FACILITY FORCED-PLACE INSURANCE. FROM A-RATED ashington - one of the commissions from such entities INSURER largest administrators and the mortgage companies are

of sub-prime home ALLAS, July 2, 2014 loans is quietly selling off a $100 – MarketScout, the million “insurance agency.” The national electronic wholly-owned agency, really insurance exchange and specialty only a name according to some MGA headquartered in Dallas, reports, handled high-premium Texas, today announced that it forced-place insurance for the has entered into a relationship mortgage company. with an “A” rated insurer to market, underwrite and administer a New federal housing rules mortgage service national restaurant insurance prohibit from collecting program providing coverage on companies www.underwritersinsider.com

Table of Contents

scrambling to comply with the new rules.

Nationstar Mortgage earned $40 million last year off the sale of $200 million in forced-placed insurance billed to homeowners. A U.S. district court ruled last year that the “agency” existed soley to “funnel profits” to Nationstar at borrowers’ expense. 37

NASA AND BOEING SIGN SPACE LAUNCH SYSTEM CONTRACT

“Our teams have dedicated themselves to ensuring that the SLS – the largest ever -- will be built safely, affordably and on time,” said Virginia Barnes, Boeing SLS vice president and program manager. “We are passionate about NASA’s mission to explore deep space. It’s a very personal mission, as well as a national mandate.”

Scheduled for its initial test flight in 2017, the SLS is designed to be flexible and evolvable to meet a variety of crew and cargo mission needs. The initial flighttest configuration will provide a 77-ton capacity, and the final evolved two-stage configuration will provide a lift capability of more than 143 tons.

During the CDR, which began June 2, experts examined and confirmed the final design of the rocket’s cryogenic stages that will hold liquefied hydrogen and UNTSVILLE, Ala., July 2, oxygen. This milestone marks 2014 – Boeing [NYSE: BA] NASA’s first CDR on a deep-space has finalized a contract human exploration launch vehicle with NASA to develop the core since 1961, when the Saturn V stage of the Space Launch rocket underwent a similar design System (SLS), the most powerful rocket ever built and destined to propel America’s return to human exploration of deep space.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilitiesdriven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $33 billion business with 56,000 employees worldwide. Follow us on Twitter: @ BoeingDefense.

Agreement reached as core-stage critical design review closes

The $2.8 billion contract validates Boeing’s earlier selection as the prime contractor on the SLS core stage, including the avionics, under an undefinitized contract authorization. In addition, Boeing has been tasked to study the SLS Exploration Upper Stage, which will further expand mission range and payload capabilities. The agreement comes as NASA and the Boeing team complete the Critical Design Review (CDR) on the core stage – the last major review before full production begins. 38

review as the United States sought to land an astronaut on the moon. Boeing participated in that CDR as well, as the three stages of the Saturn V were built by Boeing and its heritage companies Douglas Aircraft and North American Aviation.

Table of Contents

Editor’s Note: NASA’s plan to upgrade the SLS from the initial configuration to a second stage rocket that can lift 130 metric tons. Its lift capacity and - at 384 feet tall - bigger & more powerful then the Saturn V rocket that NASA used to take the Apollo crews to the Moon. The Saturn V rocket stood only 363 feet tall (110 metres) and could lift slightly less than the SLS at 120 metric tons to Low Earth Orbit. The Underwriter’s Insider

LOUISIANA URGES POTENTIAL RIDESHARE DRIVERS TO REVIEW AUTO INSURANCE COVERAGE BEFORE SIGNING ON

ouisiana’s Commissioner policies and talk with their agents of Insurance Jim Donelon regarding their participation in is joining a number of such programs prior to signing other states in issuing a consumer up.” said Commissioner Donelon. alert to potential drivers of new transportation “Virtually all network companies personal auto (TNCs) or rideshare insurance policies services. These exclude coverage companies offer when personal mobile applications vehicles are used (apps) that give to give rides for passengers access fees.” to transportation services that are W h e t h e r provided by people consumers are who register to serve the passengers Louisiana Insurance as drivers for these Commissioner Jim Donelon of or the drivers networks. for a TNC, Commissioner Donelon advises The drivers who are hired to them to be aware of potential participate in TNCs are using gaps in insurance coverage. For their personal cars to transport instance a potential driver may passengers. want to contact their insurance company and inquire about a The companies regard the commercial insurance policy. hired drivers as third party transportation providers or Potential drivers should verify vehicle operators. the type of liability coverage they must have and the type of Commissioner Donelon is liability coverage that is already in advising individuals to do their place for the benefit of all parties homework before signing on to who might sustain damages and serve as drivers injuries from accidents that occur while engaged in the use of the with a transportation network. transportation services. “Drivers should review their www.underwritersinsider.com

Table of Contents

OBAMA SECRETLY VIDEO TAPED WHILE WORKING OUT IN WARSAW GYM Frankly, it’s damn funny but embarrassing. Our President works out like a little girl...

Why Do Ad Agencies Hate The Underwriter’s Insider? Because Our Total Ad Cost is Less than Then They Normally Earn in Commission! Pay Yourself - Not The Ad Agencies! INFO HERE

FLORIDA’S CFO JEFF ATWATER BLASTS NEW YORK GOVERNOR ANDREW CUOMO IN OPEN LETTER

fter New York Governor Andrew Cuomo ran a deceptive $113 million TV ad campaign claiming boosting of the superior business climate in his state. The facts, however, do not support Cuomo’s claims - in fact they show just the opposite - as Atwater delights in pointing out in a 2-page open letter to Cuomo. To date, there has been no response. The comparison between Florida and New York Atwater makes in his well-written satirical rebuttal also deftly points out the failure of liberal politics as they apply to a healthy economic climate and the success of lower taxes, smaller government, fewer regulations - all hallmarks of conservative governance. Take a moment and read the letter [HERE].

SOME SUCCESS FOR FRAUD FIGHTERS Renowned Insurance Fraud Expert Barry Zalma Continues His Educational Efforts

n the lucky thirteenth issue of its 18th year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on July 1, 2014, continues the effort to reduce the effect of insurance fraud around the world. This months issue indicates that the efforts must be increased.

The current issue of ZIFL reports on: 1. Arson for Profit Results in a 30 Year Sentence. 2. New Book from Barry Zalma, “The Insurance Fraud Deskbook” available from the American Bar Association at 800-285-2221. 3. Insurance Fraud Conviction Affirmed. 4. Virginia SIU Investigator of the Year 5. An Insurance Criminal Taught to Seek More The issue closes, as always, with reports on convictions for insurance fraud across the country making clear the disparity of sentences imposed on those caught defrauding insurers and the public with sentences from probation to several years in jail. Regular readers of ZIFL will notice that the number of convictions seemed to be shrinking in 2013. ZIFL hopes, but has little confidence, that conviction rates will increase in 2014 as long as its readers continue in their efforts to reduce insurance fraud.

THE “ZALMA ON INSURANCE” BLOG The most recent posts to the daily blog, Zalma on Insurance, are available at http://zalma.com/blog including the following: • • • • • • •

The Art of the Interview Conflict Needed for Independent Counsel Creative Pleading Fails to Convince Health Insurance Fraud Conviction Stands Builder’s Risk Policy Covers Damage only to Structure as Built You Must Comply With California Regulations by September 1 Not Nice To Lie to Your Insurer The Underwriter’s Insider

• MCS 90 and Interstate Commerce • The Insurance Fraud Deskbook • Sex Offender Can’t Get Insurance for Erectile Disfunction • Resident of Household Exclusion • Outlaw Loses • Only Coverage for Insured Person • Diminution in Value & Insurance • Insurance Fraud & Weapons to Fight Fraud • Knowledge of Insurance is Required to Adequately Investigate Insurance Fraud • For Fun June 16, 2014 • “Insurance Fraud Deskbook” Now Available • Use of Vehicle • Medical Services True Value

information to undertake their own thorough investigations. It allow claims personnel and their lawyers to understand what errors would cause a defect or a not-guilty verdict.

The effort to reduce insurance fraud requires the assistance of both civil and criminal courts. The Insurance Fraud Deskbook can help the prudent fraud investigator, insurance adjuster, insurance attorney, insurance Special Investigation Unit and insurance company management Zalma on Insurance to attain the information needed ZIFL is published 24 times a year by ClaimSchool. It is provided free to deal with state investigators to clients and friends of the Law Offices of Barry Zalma, Inc., clients of and prosecutor. Zalma Insurance Consultants and anyone who subscribes at http:// zalma.com/phplist/. The Adobe and text version is available FREE on Available sometime in June 2014 from the American Bar Association line at http://www.zalma.com/ZIFL-CURRENT.htm. at http://shop.americanbar.org/ Mr. Zalma publishes books on insurance topics and insurance law at eBus/Default.aspx?TabID=251& http://www.zalma.com/zalmabooks.htm where you can purchase productId=214624; or orders@ e-books written and published by Mr. Zalma and ClaimSchool, Inc. americanbar.org, or 800-285Mr. Zalma also blogs “Zalma on Insurance” at http://zalma.com/blog. 2221. Mr. Zalma is an internationally recognized insurance coverage and insurance claims handling The Insurance Fraud Deskbook expert witness or consultant. Barry Zalma, Esq., CFE He is available to provide 2014 Paperback, 638 Pages, 7x10 advice, counsel, consultation, expert testimony, mediation, The Insurance Fraud Deskbook is a valuable resource for those who are and arbitration concerning engaged in the effort to reduce expensive and pervasive occurrences issues of insurance coverage, of insurance fraud. It explains the elements of the crime and the insurance fraud, first and third tort to claims personnel, and it provides information for lawyers party insurance coverage issues, who represent insurers so thaey can adequately advise their clients. insurance claims handling and Prosecutors and their investigators can use this book to determine bad faith. what is required to prove the crime and win their case.

NEW From the ABA!

You can follow Mr. Zalma on The full text of decisions from courts of appeal and supreme courts Twitter at https://twitter.com/ across the country are provided so the reader can understand what bzalma happens after the investigation is completed and can apply that www.underwritersinsider.com

The Underwriterâ&#x20AC;&#x2122;s Insider