The Underwriter's Insider 2011 Issue 7 by The Underwriter's Insider

INSURANCE • POLITICS • TECHNOLOGY • PEOPLE VOLUME 8 • 2011 • ISSUE 7

TABLE OF CONTENTS

Features News 9

Kim Komando

Florida Announces Arrests of Four Miami PIP Fraudsters

Barry Zalma - ‘Other Insurance’ Clauses Explained

Editor’s Choice: 2 Hiliarious Must-Watch Videos

Inside Track

Marketplace

Florida Announces Legislative Agenda

Insider Advisor

Matt Treskovich - Captive Co’s - What’s The Buzz?

Report: Florida’s Med Mal Marketplace Stable

Classifieds

Say What?

Back Issues

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News 16

Florida Recoverâ&#x20AC;&#x2122;s $17 Million For Consumers

McCarty Welcomes New Insurer And New Jobs

22 24 34

NASA To Boost Bandwidth With Lasers

Creekmore Ins Grp Releases First Android App For Agents

Floridaâ&#x20AC;&#x2122;s McCarty Named Next NAIC President Wahve & Patra Form Alliance For Agent Outsourcing Needs

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Sponsors 4 5 6 7 8 11 12 15 16 17 19 18 23 24 25 36

The Agency Advantage Modern Insurance Consultants Broadway Premium Funding Kingsway - Amigo Broadway Premium Funding United Automobile Insurance Co. Encore HR - Personnel Solutions St. James Insurance Company Aggressive Insurance National Insurance Underwriters National Insurance Underwriters NASA - Eclipse Agency Mgt. Northfield Leads Accu-Auto Encore HR Zalma

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FLORIDA CFO JEFF ATWATER ANNOUNCES ARRESTS OF FOUR MIAMI FRAUDSTERS IN STAGED ACCIDENT SCHEME

ALLAHASSEE—Florida CFO Jeff Atwater announced today the arrests of four suspects in Miami for insurance fraud and faking an auto accident.

C&C Rehabilitation Center, Dade Wellness Center, MG Therapeutic Rehabilitation Corp., Matanzas System Corp., and ORD Medical Center in Miami, and Roberto Martinez, 27, Yesenia Brothers Taylor Toscano, 21, both of Hialeah Rehabilitation Center Gardens, and Rafael Javier and Viva X-Ray Arroyo, 19, of Hialeah were Medical Diagnostic charged with multiple counts Center, both in including insurance fraud, Hialeah. Multiple grand theft and staging an clinics were used auto accident. Concepcion to further game Olmos Valls, 53, of Miami the system was charged with staging and maximize an auto accident. One the amount participant, who had FLA CFO Jeff Atwater of money decided not to continue paid by each with the scheme, was later assaulted by participant’s insurance individuals believed to be associated company. with one of the accident clinics as possible retaliation. As a result of this one staged accident, the “Staged accident schemes like this are clinics submitted more undermining the intent of Florida’s no than $77,000 in fraudulent fault laws and are taking money out insurance claims to 21st of the pockets of honest, hardworking Century and Geico insurance Floridians,” said CFO Atwater. “Our companies. dedicated fraud investigators are cracking down on this costly and Martinez was out on bond increasingly dangerous crime that is following a prior arrest on costing Florida’s consumers millions April 19, 2011, for organizing of dollars each year in increased auto a staged accident in March insurance premiums.” 2008. His bond for the previous arrest was revoked and he An investigation conducted by the remains in custody until trial. Department of Financial Services’ Division of Insurance Fraud revealed Additional arrests are expected. If that Martinez organized a staged convicted, Martinez, Toscano, and accident on June 27, 2011, involving four Arroyo face up to 150 years in prison. participants. Each participant was then Valls could also receive up to 15 years in referred to multiple clinics, including prison if convicted.

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Florida’s Insurance Consumer Advocate Robin Westcott has convened a working group of interested parties to gather and develop ideas to address the fraud and other potential alternatives to Florida’s current no-fault system. The working group’s report will be completed and delivered to state policymakers in the coming weeks. 7

CONTENTS 2011 • Issue 7

A Publication of AdMax Media Corp Corporate Offices P.O. Box 31551 P. Beach Gardens, FL 33420

Ron Manera Editor/Publisher

561.718-0745

ron@insurmedia.com

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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!

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TRACK YOUR EXPENSES THE EASY, DIGITAL WAY

By Kim Komando

anting to get your financial life under control? The first step toward making that happen is to track your expenses, so you can see where the money is really going. If that brings to mind nightmare images of ledgers and paper receipts, it’s time to come into the 21st century. As with most things in life, there’s a digital solution, and it’s so much better than the old way. With a few key resources, you’ll be organized and improving your fiscal efficiency in no time. Whether you need to track household finances or keep track of job-related costs to maximize your income tax refund, it’s all much easier with the

right digital service. For instance, if you need to track personal expenses, try the Web service Lemon http://lemon.com/. It gives you a location online for storing all your receipts. It will organize them automatically so you’ll never lose one again, and you’ll be able to access them quickly if you need to prove a purchase, return an item or backup a deduction. Getting your receipts into Lemon is a cinch. You can email digital receipts directly into an @lemon.com email account that you set up yourself. Or you can simply give the account address to the merchant for direct filing. Dealing mostly with paper receipts? Don’t you hate how they take over your pockets or your purse? J u s t take a

snapshot of the receipt with your smartphone. The Lemon app then scans and uploads the receipt for you. You can then shred the original. Good riddance. Lemon doesn’t simply store images. It can identify items you purchased and give you reports on where your money is going. You can even search for receipts using the items they contain as keywords. The best part is that Lemon is free, so you can give it a try without commitment. And, as you might imagine, Lemon isn’t the only tracking service available. Let’s say you need something that’s geared more toward business. In that case, take a look at Shoeboxed http:// www.shoeboxed.com/. It has most of Lemon’s features, including an upload for receipt processing and expense tracking available online. If you want a free service, Shoeboxed probably isn’t your best choice. The free account allows you to send images, but you’ll have to do all the processing yourself. This means you’ll be manually entering what you purchased and how much it cost. With the paid plans, however, Shoeboxed will process documents for you. You can even mail in a stack of receipts to have them digitized. This is very valuable when you’re trying to digitize your business. Shoeboxed keeps track of expenses and can prepare the usual reports. It can integrate with accounting

See Kim Komando Pg 35 www.underwritersinsider.com

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“OTHER INSURANCE” CLAUSES PROPERLY IGNORED

Repugnant Clauses Disregarded

lmost every liability argued that the general rule did not Jonathan Kooistra was in a car accident insurance policy contain an apply to it and refused to participate while driving a car owned by Paul and “other insurance” clause that in the defense and indemnity of the Alene Parish. Kooistra was driving the attempts to make other insurance insured. car with the Parishes’ permission. available to the insured primary CMIC insured Kooistra. The to the policy. However, because CMIC policy provided liability many of the policies have the coverage for accidents resulting same, or almost identical, wording from Kooistra’s use of a nonif all of the policies were honored owned vehicle. SIC insured the there would be no coverage for Parishes. The SIC policy extended the insured. Courts are loathe to liability coverage to any person give insurers a free ride and allow using the Parishes’ car with their two or more insurance companies permission, and as such Kooistra who wrote primary insurance was covered under the SIC policy. claim they were all excess. In Safeco Insurance Company After the accident, SIC paid of Illinois v. Country Mutual property damage claims against Insurance Company, No. 65924-3Kooistra. CMIC refused to share I (Wash.App.Div.1 10/24/2011) the the costs pro rata. SIC sued CMIC Washington Appellate Division for contribution. The parties Barry Zalma, Esq., CFE is a California attorney found two such clauses to be cross-moved for summary specializing in insurance coverage, insurance claims handling and fraud who serves as repugnant to each other and judgment. CMIC argued that a consultant and expert for insurers and forced the two insurers to share under its “other insurance” clause, policyholders. He founded Zalma Insurance the liability incurred by their its coverage for nonowners was Consultants in 2001 and serves as its senior mutual insured equally. excess over SIC’s coverage, which consultant. He recently published an e-book, was primary. The trial court “Insurance Fraud,” which is available at his Web Join Barry Zalma’s new Blog: agreed with CMIC and dismissed site, www.zalma.com. Go to Zalma Books at http://www.zalma.com/blog http://www.zalma.com/zalmabooks.htm. the case. SIC appealed.

The Washington court, like other jurisdictions, applied the general rule that when two insurance policies operating on the same coverage level each contain an “other insurance” clause purporting to make the policy excess over the other policy, Washington state courts will generally disregard the clauses since they are mutually repugnant to each other. One of the insurers 10

DISCUSSION FACTS The policies issued by Safeco Insurance Company of Illinois (SIC) and Country Mutual Insurance Company (CMIC), both operate on the same coverage level and both contain language making each policy excess.

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SIC argued that the insurance policies each have “other insurance” clauses that would make the other policy excess, and as such, each of those clauses must be disregarded and each insurer is liable for a pro rata share of the loss. See Zalma Pg 33 The Underwriter’s Insider

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EDITOR’S CHOICE: TWO HILARIOUS, MUST-WATCH VIDEOS

conomist Milton Friedman schools befuddled liberal Phil Donahue in market capitalism during a 1979 interview. Friedman, who died in 2006 at the age of 94, was an economist, statistician, academic, and author who taught at the University of Chicago for more than 30 years and a recipient of the Nobel Memorial Prize in Economic Sciences. Donahue was - and is - a member of the classic Hollywood left. One has to almost feel pity for earnest, naive liberal Phil Donahue - apparently feeling Friedman’s support for capitalism should be shaken by the reality of unevenly accumulated wealth in our society, (which Donahue undoubtably feels is solely a result of “greed”) and asking: “When you see around the globe, the maldistribution of wealth, the desperate plight of people in underdeveloped countries, ah, when you see so few haves and so many have nots... When you see the greed

and the concentration of power, did you ever, don’t you ever have a moment of doubt about capitalism and whether or not greed is a good idea to run on?

phrase by phrase, of whomever was speaking, with final result being that Lewis walked off, dejected, and perhaps wondering if he liked the destination you arrive at if you follow left-wing politics to their logical conclusion.

Without even half trying, Friedman dissembles the classic nonsense that capitalism relies more on “greed” than any other economic system. Click on the video image to watch.

You just have to watch these Occupy wackdoodles, led in chanting by a red shirted disaffected soul clearly enthralled by the sound of his own voice and glad to be taking a break from his donut-cook job, to imagine a country run by “the other 99 %” Click on the video image to watch.

indless Marxist drones prevent civil rights activist Ga. State Rep. John Lewis (D) from speaking at an Occupy Atlanta protest. This ridiculous exercise in “group-think” and “group-speak” would be utterly laughable were it not for the pain and confusion apparent on the face of civil rights icon Rep. Lewis - who as a certified member of the political left had every right to expect to be welcomed by the Occupy group with open arms. Yet he was not allowed to even speak as a result of some indecipherable process of chanting “democracy” where the group parroted the words,

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FLORIDA’S CFO JEFF ATWATER ANNOUNCES LEGISLATIVE AGENDA INCLUDING PIP FRAUD INITIATIVES

ALLAHASSEE—Florida Chief Financial Officer Jeff Atwater announced that his legislative agenda for the 2012 Legislative Session will focus on four core themes: transparency in contracts and government spending; protecting consumers; fighting fraud that is increasing the cost of living for Florida’s families and reducing regulatory burdens on Florida’s businesses. “In this challenging economic climate, we have a deep responsibility to create the conditions that will bring down costs for Florida’s families and businesses while helping them protect their hardearned dollars,” said CFO Jeff Atwater, who oversees the Department of Financial Services. “I’m confident the Legislature is equally committed to fostering economic success and reducing financial burdens on Florida’s businesses and families.” CFO Atwater said the legislative reforms he is pursuing will help keep money in the pockets of Floridians and will include:

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Transparency in Contracts and Government Spending: o Transparency and Accountability in State Contracting: Continuing his commitment to government transparency following the launch of Transparency Florida this fall, CFO Atwater will propose several reforms aimed at strengthening accountability in state contracting including giving his office authority to conduct compliance monitoring over state agency procurement processes. CFO Atwater also supports drastically limiting the types of goods and services that are exempted from the state competitive bidding requirements to ensure that the state is getting the best price for the goods and services it purchases with taxpayer dollars. o Combating Government Fraud, Waste and Abuse: Government has a deep responsibility to be exceptional stewards of taxpayer dollars. To ensure that Florida is deploying every dollar wisely, CFO Atwater will be seeking authority to review and approve or reject state contracts prior to execution. CFO Atwater will also call on the Legislature to raise standards

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DO YOU KNOW A KEY PERSON IN THE CIGAR MFG. BUSINESS?

National brokerage seeks individual with connections in cigar manufacturing and distribution. Exclusive business opportunity! Call John or Matt 1-800-359-5102 for state employees who have the authority to manage contracts by requiring clearly defined deliverables in each state contract to ensure Florida’s taxpayers are getting exactly what they pay for. “As your elected representatives, you have entrusted us to watch over the money you send to your government. Strict contracting standards are simply a reflection of how seriously we

See 2012 FL Legislative Page 27 13

CAPTIVE INSURANCE COMPANIES: WHAT’S THE BUZZ ABOUT?

company, the shareholders of the operating business can protect their interests in a tax-advantaged way.

The most popular type of captive for small and mid-market business owners by Matthew A. Treskovich, MBA, CMA, CLU, assurance and protection of intangible is the 831(b) captive. Under IRC Sec. ChFC, FLMI corporate assets, which are difficult for 831(b), a small insurance company can traditional insurers to price and cover. receive up to $1.2 million of annual captive insurance company The coverage can be tailored to the premiums without paying federal income taxes on is a property and casualty specific needs the premiums “A small insurance company insurer formed privately for the of the operating received. The can receive up to $1.2 million purpose of writing insurance contracts business, rather i n s u r a n ce of annual premiums without to an operating business, or a small than being the company will pay paying federal income taxes on group of businesses. Captives have “one size fits all” tax on its taxable the premiums received. “ unique risk management benefits, approach large investment and enjoy the income tax advantages insurers tend income. If the captive has favorable that come with being an insurance to use. The captive approach can also company. reduce premium costs and provide claims experience, it will realize stability in coverage and pricing, underwriting profit that is not taxable The history of captives stretches back because it provides a much greater as income to the captive. Eventually this many decades. incentive for the underwriting profit can be paid to the Formal guidance is operating business shareholders in the captive as dividends. available from the IRS to control losses in the form of several and execute sound Establishing a captive is not a simple revenue rulings, and risk management process. It requires a significant investment of time, and retention captives are now practices. of qualified consultants to form and a well-established and safe planning Captive insurance administer the captive is essential. structure if they are companies provide a Shareholders in businesses with properly formed tax-advantaged way significant annual premium outlays and administered. for the owners of an and/or substantial uninsured risks can The key principle operating business benefit greatly from the formation of a is that the captive to self-insure. Most captive insurance company. Captives must provide property and provide real risk management benefits real insurance – casualty insurance in a very tax-efficient structure. Matthew A. Treskovich risk shifting and risk premiums are deductible distribution. A captive should not be as an ordinary and necessary business Creekmore Insurance Group is a formed merely to gain tax benefits, and expense. However, if the operating full-service life insurance brokerage penalties can be harsh if the captive business chose to self-insure and set specializing in complex life cases and is not operated as a true insurance aside those premiums in a sinking impaired risks. Creekmore serves company. fund, it would lose the benefit of the independent agents and financial immediate tax deduction for premiums advisors across the country. Matt Businesses are exposed to many risks paid. The tax consequences of self- is the CFO and oversees advanced that are either not insurable in the insuring provide a powerful incentive case design and underwriting. He commercial market, or which are for businesses to insure risks rather than can be reached via email Matt@ LifeAgents.com or at 800-936prohibitively expensive to insure against. retain them. 0339. For more information, visit A captive can be used to insure new and emerging risks, such as information By forming a captive insurance www.LifeAgents.com

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FLORIDA'S 2011 MEDICAL MALPRACTICE REPORT SHOWS STABLE MARKETPLACE

ALLAHASSEE, Fla. â&#x20AC;&#x201C; The Florida Office of Insurance Regulation (Office) released its 2011 annual report on the medical malpractice insurance market in Florida.

The report showed positive trends for the industry in Florida. The average return on surplus for companies operating in Florida shows that this line of insurance continues to be profitable.

The Office is required to issue a summary and analysis of the state of the medical malpractice insurance industry on an annual basis pursuant to Florida Statutes. The report features 2010 data compiled from Office rate filings, financial data, and the closedclaims database.

There were 61 medical malpractice rate filings approved during 2010 in Florida. The average approved rate change for physicians and surgeons medical malpractice, the largest segment of medical malpractice insurance, decreased rates 2.6%. The annual report compared Florida's

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medical malpractice to data from other states with the largest medical malpractice markets including: California, Georgia, Illinois, Maryland, Massachusetts, New York, New Jersey, Ohio, Pennsylvania, Texas, and Washington. The report showed that Florida's loss ratios, and non-loss costs were competitive with other states in this peer group. Annual medical malpractice reports from 2004 to 2010 are also available on the Officeâ&#x20AC;&#x2122;s website. 15

FLORIDA RECOVERS MORE THAN $17 MILLION FOR CONSUMERS

• A Miami-Dade County homeowner filed a property claim with his insurance carrier. Despite providing all of the documentation requested by the insurer, months passed and his claim remained unpaid. After contacting the Division of Consumer Services for help on his claim, division staff helped the homeowner promptly receive his payment of more than $289,000.

ALLAHASSEE—Florida Chief Financial Officer Jeff Atwater announced today that the Department of Financial Services has taken part in the recovery of more than $17 million so far in 2011. Recoveries include claim payments, premium refunds and restitution for Florida consumers.

• A senior couple from The Villages purchased an annuity from an insurance agent who allegedly misrepresented himself and the terms and conditions of the annuity. After being charged a series of fees when the couple attempted to make a withdrawal, they contacted the Division of Agent and Agency Services. The division

investigated and subsequently took action against the agent and his license. In addition, the insurance company refunded the couple’s initial investment, plus interest, which totaled $167,000. • A Clay County resident experienced substantial damage to his motor home, which was his primary residence. His claim with his insurance company was delayed, leaving him temporarily homeless. He contacted the Division of Consumer Services, and they requested the company immediately review the policyholder’s claim discrepancy. Following the review, the claim was quickly resolved and the homeowner promptly received his payment of more than $124,000.

The Department of Financial Services’ Division of Consumer Services is available to answer questions and assist consumers in all lines of insurance—including homeowners, health, auto, life and warranties—and received nearly 100,000 calls during the period of July through September and recovered $4.7 million for consumers. The Division of Agent and Agency Services licenses insurance professionals and investigates alleged violations of the Florida Insurance Code— handling an average of 600 cases per month. “In these challenging economic times, it is more important than ever that we help Floridians keep and protect their hardearned dollars,” said CFO Atwater. “Our helpline specialists offer detailed answers to consumers' questions, provide valuable information regarding important financial decisions and assist in recovering money and property for Florida consumers.” The following are examples of how consumers were helped by department staff: 16

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MCCARTY WELCOMES NEW INSURER AND NEW JOBS TO FLORIDA

ALLAHASSEE, Fla. Florida Insurance Commissioner Kevin McCarty today announced the approval of the first international insurance company to take advantage of recently signed legislation. The approval of Best Doctors Insurance Limited to operate as an offshore insurer will add highpaying jobs to Florida.

jobs to South Florida over the next few years. I am pleased to welcome Best Doctors to Florida and encourage other companies to take advantage of the opportunities created by the passage of this recent legislation." HB 1087 allows international insurers to insure foreign nationals while operating in Florida. Since these insurers will not be insuring Florida residents, they will remain under the regulatory authority of their country of domicile, and not have to file a certificate of authority

application with the Office. Founded in 1989 by Harvard Medical School professors, Best Doctors, Inc. created the subsidiary, Best Doctors Insurance Limited, which is a Bermudadomiciled insurance company. The global company, headquartered in Boston, serves more than 30 million members in every major region of the world. Best Doctors Insurance Limited plans to operate in Miami, Florida and offer insurance to residents from countries in Central and South America.

"Our whole team is grateful to Insurance Commissioner McCarty, Governor Scott, FLOIR staff and Florida lawmakers for making it possible to grow our business in Florida," noted Evan Falchuk, President of Best Doctors. "We're already off to a fast start with our Miami office, have hired a big handful of Floridians to staff it, and expect it to be a major driver in our ability to reach the Latin American insurance market." "This announcement sends a signal to international insurance carriers that Florida is open for business," said McCarty. "The passage of HB 1087 will help create an even more attractive business climate in Florida, thereby encouraging job creation and economic growth in our state that could add hundreds of www.underwritersinsider.com

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arsh & McLennan Cos. Inc. reported $13 million in investment income, a 54.2% drop from the same period last year. MMC reported revenue of $8.62 billion for the first nine months of 2011, up 10.9% from $7.77 billion in the same period last year. The company said Wednesday that its net income for the first nine months of this year was $737 million, up 13% from $652 million for the first nine months of last year.

illis Group Holding released a report indicating P&C pricing will be stable going into 2012 while noting that 2011 “may break all records for insured losses.” At the time of the report, prior to the beginning of the hurricane season, they had already tallied $70B in property losses in the marketplace with a probable target of $100B.

ccording to a recent PEW research report, “reported $13 million in investment income, a 54.2% drop from the same period last year.” The gap is the largest since the Nixon/McGovern race of 1972. They also reported “Most supporters of President Obama (33% of all voters) say they consider their choice as a vote for him, while 11% say they see it as a vote against Mitt Romney. Conversely, far more Romney supporters (33%) say they view their choice as a vote against Obama rather than as a vote for Romney (15%).”

share, in the third quarter of 2011, compared to net income of $13.1 million, or $0.32 per diluted share, for the same period in 2010. For the first nine months of 2011, the Company reported net income of $22.4 million, or $0.55 per diluted share, compared to $30.8 million, or $0.76 per diluted share, for the same period of 2010.

usiness Insurance reports: “The National Assn. of Insurance Commissioners gave its approval ... to a revised model law that would reduce the reinsurance collateral requirements for non-U.S. reinsurers. Under the current NAIC Credit for Reinsurance Model Law & Regulation, in order for U.S. ceding companies to receive reinsurance credit, the reinsurance must either

be ceded to U.S. licensed reinsurers or secured by collateral representing 100% of U.S. liabilities for which the credit is recorded. The revisions, approved unanimously... during the NAIC’s fall meeting at National Harbor, Md., would reduce these reinsurance collateral requirements for nonU.S. licensed reinsurers domiciled in “qualified jurisdictions.”

ew research seems to show that long-given medical advice to cut back on salt intake may be bad advice. According to a senior consultant in the departments of rheumatology and internal medicine a Copenhagen University in Denmark “Reduced salt intake leads to an increase in lipids [blood fats], which is bigger than the reducing effect on blood pressure. Therefore it is likely that reduced salt intake does not have a beneficial effect. On the contrary the net effect may be harmful. The review analyisis data from 167 studies on the effect of salt intake on hypertensive

niversal Insurance Holdings, Inc. (the Company or Universal) (NYSE Amex: UVE), a vertically integrated insurance holding company, reported net income of $1.0 million, or $0.02 per diluted 18

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niversal Insurance Holdings, Inc. (NYSE Amex: UVE), a vertically integrated insurance holding company, announced that its subsidiary, Universal Property and Casualty Insurance Company (UPCIC), has written its first homeowners' insurance policies in Georgia. Sean Downes, chief operating officer, commented, "UPCIC's entrance into the Georgia homeowners' insurance market marks the fifth state where UPCIC conducts business and continues our expansion beyond Florida. We look forward to expanding our network of Georgia-area agents and expanding our geographic reach."

IA issued the following statement regarding the National Flood Insurance Program Extension: “We’re pleased the NFIP isn’t going to lapse. However, this will be the third short-term extension in as many months. More certainty is needed and as such, AIA encourages Congress to pass a long-term extension with meaningful reforms that aim to strengthen the program. Necessary reforms include movement toward risk-based premiums and reduced price subsidies. The 5.6 million policyholders dependent upon the NFIP for their protection against floods deserve the peace of mind that a long-term extension of the program will provide.”

cKinsey & Company survey shows 30% of employers may drop health care cover after 2014 as a result of changes brought on by the massively unpopular government health mandate passed in 20010 commonly called Obamacare. An employer not offering health insurance must pay a $2,000 fine per employee - far less than the average cost of health insurance. www.underwritersinsider.com

etailers, who have spent billions collectively in devices and procedures to protect against common shoplifting, now face a new threat: “Flash Robs,” where groups of as many as 60 individuals collect in fast moving gangs, coordinating their attacks via social media sites and then simultaneously descending on retail stores, overwhelming security and surveillance measures. Likened to a pack of piranhas stripping a carcass, flash robs can clean out much of a store’s inventory in just minutes -

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presenting new challenges for security experts and insurers.

atastrophe Modeler AIR Worldwide Corp. attempted to calculate what the worst U.S. Hurricanes in history would cost in terms of today’s dollars. The worst, the Miami Hurricane of 1926: $101 Billion, then Hurricane Andrew at $57 Billion. The Ft. Lauderdale Hurricane of 1947: $55 Billion, the Great Okeechobee Hurricane of 1928: $51 Billion. Comming in at only 5th, Hurricane Katrina: $42 Billion.

Marketplace Recently Announced P&C Markets Ocean & Inland Marine

prdwode Facilties, Inc. Contractors doing: piers, docks, wharfs, bridges, breakwaters, cranes, dredging, etc. 6455 East Johns Crossing, Suite 115 Johns Creek, GA 30097 (678) 7366720 • Facsimile: (678) 736-6726 - Carter, Kimberly - 678 736-6720, Ext. 1000 - kcarter@wwfi.com

Entertainment & Sports

AS Insurance appoints Jerid Schmickle as Senior Vice President of its newly launched Entertainment and Sports Division. NAS Insurance Services is an underwriting manager located at 16501 Ventura Blvd., Suite 200, Encino, CA 91436, telephone (818) 382-2030, fax (818) 382-2040, website: www.nasinsurance.com.

&K Insurance claims “over 75 programs available on admitted paper with no prior approval or appointment needed to submit applications for quotation. “ The MGA can be reached at 800637-4757 or www.kandkinsurance. com.

adler Sports & Recreation Insurance specializes in ultrafast time to quote, bind and issue. www.sadlersports.com. Sadler & Company, Inc. P.O. Box 5866 Columbia, SC 29250-5866 - Phone: (800)622-7370

Real Estate E&O

overage for open houses, mold, network risks and privacy claims are now part of Victor O. Schinnerer & Company’s Real Estate E&O policy. Schinnerer includes the three new coverages

at no additional premium. Coverage for privacy claims and client network damage claims are now included in the policy. The coverage applies to allegations of privacy injury and identity theft and claims that allege a security breach or electronic infection caused network damage to a client’s network while performing professional real estate services. The filing of the enhancements is currently under way. Call to ck on your state: Starr Crusenberry Starr.N.Crusenberry@Schinnerer. com - 301-951-6904

orman Spencer’s Real Estate Program - “one of the most comprehensive policies in the market with highly competitive pricing” Coverage is available to risks whose services include Residential and Commercial Sales, Leasing, Property Management, Real Estate Consulting, Auctioneering, Mortgage Brokering, BPO’s and Appraisal, and Escrow Services - Michael Ryder michaelryder@norman-spencer. com800.477.9192 x204

Welding Supply & Industrial Gas Distributors

he WDPG Program is dedicated to this class of business and has been a leading choice of agents and welding supply distributors since 1987. The WDPG underwriters have knowledge and experience your clients need and is a long standing member of The Gases and Welding Distributors Association (GAWDA) Quick Turn around Quotes: Jeannie Coda: kentidwell@wdpginsurance.com

Restaurant

rgo Insurance announces lower rates filed on restaurant coverage including food spoilage coverage. Full commission and no agency appointment necessary. Company is looking for family style, family grills, casual style, fine dining and limited cooking restaurants such as pizza and sub shops. Email csmktgprograms@ argogroupus.com 877-590-0775

Martial Arts

Aviation

&K Insurance announces expanded coverage & lower minimum premiums on martial arts coverage. General Aggregate Limit increased to $5M - Participants Med Pay to $150K. The MGA can be reached at 800-637-4757 or www. kandkinsurance.com.

viation Products & Liability Insurance from Arlington/Roe & Company - MGA - representing mulitple markets. Contact: 800.878.9891 X 2401. Cfrench@ arlingtonroe.com

Convenience Store

rgo Insurance announces expanded program and competitive rates for convenience store accounts. Company is looking for stores open until 11PM, fuel sales up to 90%, alcohol sales up to 30% with no fuel hauling exposure. Not available in Florida at this time. Email csmktgprograms@ argogroupus.com 877-590-0775

Contractors

cGowan Excess & Casualty announces in-house binding authority for general contractors, The Underwriter’s Insider

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trade contractors and residential construction. Strong carriers & competive pricing. Contact: 732.335.8470 Chris Longo • clongo@mcgowanexcess.com

eavy construction risks including steel erection contractors, concrete contractors, roofing contractors, bridge, street & road contractors, etc. Norman Spencer - Contact Brian Harrold p: 937.432.1469 brianharrold@ norman-spencer.com

Condo Assoc Program

rident is offering tailored coverage designed for condominium town home and single-family community associations claiming competitive rates and terms. Coverages available include property, including flood, earthquake and coastal windstorm, general liability, D&O, umbrella, worker’s comp, auto, crime and property mgrs E&O. Trident Community Association Program - 5100 N. O’Connor Blvd, #200, Irving, Texas 75039 or email to csmktgprograms@argogroupus. com 877-590-0775

Social Services

rwin Siegel Agency claims to be a partner who can provide Insurance Solutions for the Social Services field. Contact: 800-6228272 siegel@siegelagency.com.

Marine Risks Worker's Comp & Longshore & Harbor Workers' Comp

eaBright Insurance Company offers high quality workers’ compensation coverage for your clients who are small maritime employers and other marinerelated businesses. SeaBright provides seamless coverage for United States Longshore & Harbor Workers’ Compensation, Maritime Employers’ Liability, and State Act Workers’ Compensation exposures,

Have a P&C Product Announcement? Send your press release or one-paragraph announcement along with your contact information to ron@insurmedia.com all in one policy. All Risks, LTD 410-828-5810 rlang@allrisks.com or Appalachian Underwriters, Inc. – Oak Ridge, TN 865-425-1051 warren.palmer@appund.com or Peachtree Special Risk Brokers – Metairie, LA 504-830-7347 jlasseigne@psrllc.co

Design & Construction Industry

rchitects, engineers & surveyors, construction managers, contractors, environmental consultants, landscape architects, specialty construction consultants. Contact Jeff Grigsby 877.453.2071 - JeffG@schinnerer. com

Chemical Mfg & Distribution Risks

uel additives, Industrial gases, paints, varnishes, lacquers, enamels, solvents, adhesives, sealants and a multitude of other chemical manufacturing and distribution risks. Min Prem $20,000 and other underwriting criteria. See Sloan Mason: Contact Grant Kanamori @ 619-814-2488 or grant@sloanmason.com.

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Hair & Beauty Insurance Program

ASS - Salon & Spa Specialty Insurance administered by Brownyard Group - open to agents seeking access to program. 888-823-9380 or Email: sassi@brownyard.com

Security Guard and Investigative

echanic Group announces coverage for security guards, private investigators, alarm contractors, electronic security and private security consultants. The Mechanic Group - One Blue Hill Plaza, Suite 530, Pearl River, NY 10965 - (800)2140207 - or www.mechanicgroup. com

Privacy/Data Breach Coverage

irst party expense and third party liability coverage available for many E-Threats and E-Exposures. Contact RPS, Inc. at 800-336-5659 or techcyber@ rpsins.com.

Landscaper Risks

rogram Brokerage Corporation (PBC) is a full-service brokerage that specializes in programs for the green industry including lawn care operators, commercial and residential construction, tree trimming /pruning and other landscape exposures. Jonah Aaron Lipin | Phone: 212-338-

Campground Programs

&K Insurance announces coverage for private and franchised campgrounds including ancillary activities such as water slides, amusement devices and motorized boating. Day camp coverage also available. Contact K&K Insurance at 877-355-0315. 21

www.underwritersinsider.com

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NASA TO BOOST BANDWIDTH WITH LASERS

t currently takes 90 minutes to transmit high-resolution images from Mars, but NASA would like to dramatically reduce that time to just minutes. A new optical communications system that NASA plans to demonstrate in 2016 will lead the way and even allow the streaming of high-definition video from distances beyond the Moon. This dramatically enhanced transmission speed will be demonstrated by the Laser Communications Relay Demonstration (LCRD), one of three projects selected by NASA's Office of the Chief Technologist (OCT) for a trial run. To be developed by a team led by engineers at the NASA Goddard Space Flight Center in Greenbelt, Md., LCRD is expected to fly as a hosted payload on a commercial communications satellite developed by Space Systems/ Loral, of Palo Alto, Calif. "We want to take NASA's communications capabilities to the next level," said LCRD Principal Investigator Dave Israel, who is leading a multi-organizational team that includes NASA's Jet Propulsion Laboratory, Pasadena, Calif. and Lincoln Laboratory at the Massachusetts Institute of Technology, Cambridge, Mass. Although NASA has developed higher data-rate radio frequency systems, data-compression, and other techniques to boost the amount of data that its current systems can handle, the Agency's capabilities will not keep pace with the projected data needs of advanced instruments and future human exploration, Israel added.

"Just as the home Internet user hit the wall with dial-up, NASA is approaching the limit of what its existing communications network can handle," he said. The solution is to augment NASA's legacy radio-based network, which includes a fleet of tracking and data relay satellites and a network of ground stations, with optical systems, which could increase data

First Step The LCRD is the next step in that direction, Israel said, likening the emerging capability to land-based fiber-optic systems, such as Verizon's FiOS network. "In a sense, we're moving FiOS to space." To demonstrate the new capability, the Goddard team will encode digital data and transmit the information via

Conceptual image of LCRD. Credit: NASA

rates by anywhere from 10 to 100 times. "This transition will take several years to complete, but the eventual payback will be very large increases in the amount of data we can transmit, both downlink and uplink, especially to distant destinations in the solar system and beyond," said James Reuther, director of OCT's Crosscutting Technology Demonstrations Division.

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laser light from specially equipped ground stations to an experimental payload hosted on the commercial communications satellite. The payload will include telescopes, lasers, mirrors, detectors, a pointing and tracking system, control electronics, and two different types of modems. One modem is ideal for communicating with deep space missions or tiny, low-power smallsats The Underwriterâ&#x20AC;&#x2122;s Insider

operating in low-Earth orbit. The other can handle much higher data rates, particularly from Earth-orbiting spacecraft, including the International Space Station. "With the higher-speed modem type, future systems could support data rates of tens of gigabits per second," Israel said. Once the payload receives the data, it would then relay it back to ground stations now scheduled to operate in Hawaii and Southern California. The multiple ground stations are important to demonstrating a fully operational system, Israel said. Cloud cover and turbulent atmospheric conditions impede laser communications, requiring a clear line of sight between the transmitter and receiver. If bad weather prevents a signal from being sent or received at one location, the network could hand www.underwritersinsider.com

over the responsibility to one of the other ground stations or store it for later retransmission.

to 622 megabits per second, which is about five times the current state-ofthe-art from lunar distances.

The demonstration is expected to run two to three years.

However, the LADEE payload, called the Lunar Laser Communications Demonstration (LLCD), is equipped with only one modem, the lowerspeed model best suited for deep space communications. In addition, LADEE is a short-duration mission. LLCD is expected to operate for only 16 days of the LADEE mission, not enough time to demonstrate a fully operational laser-communications network, Israel said.

Follow-On to LADEE Experiment The project isn't NASA's first foray into laser communications. MIT Lincoln Laboratory engineers are now developing a laser communications payload for Goddard for NASAâ&#x20AC;&#x2122;s Lunar Atmosphere and Dust Environment Explorer (LADEE), which the Agency plans to launch in 2013 to characterize the Moonâ&#x20AC;&#x2122;s wisp-thin atmosphere and dust environment. The main goal of the LADEE experiment is proving fundamental concepts of laser-based communications and transferring up

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"What we're trying to do is get ahead of the curve," Israel said. "We want to get to the point where communications is no longer a constraint on scientists who want to gather more data, but are worried about getting their data back from space." 23

FLORIDA INSURANCE COMMISSIONER KEVIN MCCARTY WILL BE NEXT NAIC PRESIDENT

“It is an honor and privilege to be ATIONAL HARBOR, Md. -elevated by my colleagues and to Today Susan Voss (Iowa this leadership role,” remarked Commissioner) Commissioner McCarty, “Over the outgoing President of the next year we must confront the National Association of several important challenges. Insurance Commissioners Whether it is Dodd-Frank or (NAIC) announced that the Affordable Care Act, the Commissioner Kevin McCarty federal government will officially ascend to the has become NAIC presidency increasingly e f f e c t i v e involved in the January 1, 2012. insurance arena. Commissioner As your president, Florida Ins Commissioner McCarty will I intend to vigorously Kevin McCarty continue to serve as defend the role of President-Elect of the NAIC through state-based regulation, highlight our 2011.

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accomplishments, and continue to work for regulatory modernization and national uniformity to create an insurance framework that benefits both consumers and the insurance industry.” Other officers elected by the NAIC during the Fall Meeting include James Donelon as President-Elect (Louisiana Commissioner), Adam Hamm as Vice-President (North Dakota Commissioner) and Monica Lindeen as Secretary-Treasurer (Montana Commissioner). All of the commissioners will assume their new roles January 1, 2012. The Underwriter’s Insider

The INSIDER’S

“The Final Authority on Everything!” Fashion Consultant Boss Crosses The Line...

work in an insurance agency along with eight other women and the agency owner, who I’ll call “Pierre,” a married man about 65 years old. The problem is Pierre wants to tell us how to dress. Not only how to dress, but he tells us specific items of clothing he has seen before that he wants us to wear the next day and he even makes make-up suggestions. He does this via e-mail memo to each of us every day. He even knows all the brand names of women’s clothing! I have complained to the office manager, but she says he’s been doing it for years and it’s his way of making certain we look professional. Today (Monday) his memo to me said: “Tuesday outfit: Black pumps with black stockings. Plaid Claiborn skirt with black belt. White silk top with strawberry broach. Easy on the make-up. Same lipstick as today. Hair up.” Some of the other girls don’t seem to mind, but at least four of us think this is sick and my husband wants to deck him. This guy know’s more about the contents of my closet than I do! He even keeps track of what’s at the cleaners. What is my recourse other than complaining and being fired? — M.E.S. Chattanooga, TN

ADVISOR

appear that his interest in his employees’ dress alone may have crossed the line. The Advisor is betting he has a dresser full of women’s clothing at home. Can you picture him in lingerie? We’d also check the office lady’s room for hidden cameras. Can you complain or refuse and maintain your job? Probably. Sounds like Pierre would be setting himself up for a sexual harassment suit if you were terminated for the complaint, but would you really want to stay and work for this man under any circumstances? You might consult with a lawyer specializing in employment law, but our advice would be to just get out of there. You might consider buying him a dress-up Barbie Doll on the way out. By the way, when does Pierre find the time to sell insurance?

We See No Coverage...

e’ve insured the office of an optometrist for several years using a standard CGL form with an

Have a question for The Advisor?

Click HERE! occurrence trigger. Although we have offered medical malpractice coverage on each renewal, the doctor has always declined the coverage in writing stating that “nobody in [my] business is ever sued.” You guessed it, one of his patients is claiming he is now blind in one eye as a result of a misdiagnoses of a detached retina. The doctor insists he did no wrong and wants defense coverage under the CGL. Carrier denies. What does the Advisor say? I.R.G. Coral Gables, FL. The Advisor must stand with the carrier. The standard CGL form clearly states that no defense coverage exists for losses not covered under the policy - although it was not always so. A 1979 Federal court decision found that an earlier CGL form was unclear on this subject - (USA vs USF&G ) but a 1996 CGL rewrite added language to correct.

We’ve heard of strict dress codes, but this is ridiculous. Pierre sounds more than a little weird - with a fixation on women’s clothing and a focus on the appearance of his female employees that is clearly inappropriate in today’s climate of hyper-sensitivity regarding issues of workplace sexual harassment. You did not mention whether or not you are receiving any other inappropriate attention from Pierre, but it would www.underwritersinsider.com

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All Lines Agent Wanted Dawsonville GA

Personal lines agent needed for growing Independent Agency on Hwy 400. We are looking for a friendly, personable individual to offer home, auto, small business. Life & Health also available. Over 30 markets. Looking for long term Agent with equity share potential for the right person. Very generous new and renewal commissions paid. Full time or part time. You earn what you sell. 50k potential 1st year. Hours and work location flexible. email resume to greatagent4u@gmail.com 8-5

Personal Lines Acct Manager or Claims Full-time employment in the Tampa, Florida area. Must have 2-20, 2-15 or 5-20 license. Contact: janice50griffin@yahoo.com. 8-3

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info@jmendezandassociates.com

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

Continued From Page 13

FLORIDA 2012 LEGISLATIVE INITIATIVES take that responsibility,” said CFO Atwater.

Protecting Consumers: o Protecting Floridians’ Personal Information: Recent news reports have highlighted increasing trends in identity theft in Florida. CFO Atwater will work to close a loophole that allows certain groups to obtain social security information.

Fighting Fraud: o Personal Injury Protection: Insurance fraudsters and criminal enterprises have learned how to game Florida’s PIP system and every honest Floridian with a car in the driveway ends up paying. For example, in 2008, a 40-yearold driver in Tampa with an unblemished driving record was paying $480 in PIP premium, and in 2010, this same driver paid nearly $870 for the same coverage - an 81 percent increase. Florida’s Insurance Consumer Advocate Robin Westcott, appointed by CFO Atwater, has convened a working group of interested parties to gather and develop ideas to address the fraud and other potential alternatives to Florida’s current no-fault system. The working group’s report will be completed and delivered to state policymakers in the coming weeks. www.underwritersinsider.com

“Now is the time to stop throwing consumers to the wolves and encourage our legislative leaders to support meaningful PIP reforms that will give honest Floridians the insurance rate relief they deserve,” said CFO Atwater. o Workers’ Compensation: Certain bad actors are aiding in workers’ compensation premium fraud, which is putting pressure on rates and crippling the business community. A work group, called for by CFO Atwater, will make recommendations to the Governor and Cabinet at an upcoming Cabinet meeting.

o Streamlining and Modernizing Information Technology Services: Now more than ever, technology drives business. In order for state government to function efficiently, Florida must streamline its information technology services. CFO Atwater will be pursuing a modern information technology structure that will increase operational efficiencies, improve services, reduce costs, and allow government agencies to focus on their core mission–which is to effectively serve their fellow Floridians.

Reducing Regulatory Burdens and Streamlining Government: o Cutting Red Tape: In business roundtables hosted by CFO Atwater across the state, burdensome regulations stifling business growth emerged as a top concern. In response, CFO Atwater initiated a thorough review of regulations in place at his agency. Initial reviews have indentified burdensome, unnecessary or redundant regulations within the Divisions of Insurance Agent and Agency Services and Workers’ Compensation. The CFO will be asking the Legislature to repeal or rework laws that do not add value to Florida’s consumers or businesses. “Regulations grow like weeds and stifle growth. We are looking at regulations through a new scope and if they don’t add value or aren’t necessary for public protection, we are encouraging the Legislature to take them off the books,” said CFO Atwater.

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Suppose you were an idiot. And suppose you were a member of Congress... But then I repeat myself. - Mark Twain 27

the two buffoons most responsible for forcing lending institutions to adopt lax lending standards resulting the the sub-prime mortgage meltdown. Now they’re in charge of the reform? Only in Washington...

“The burdens associated with congestion are top of mind

for many Americans as they travel to and from work each day. However, at $300 billion annually, crashes cost our society more than three times the amount of congestion. This report further underscores the importance of a longterm, multi-year federal transportation bill that will provide the necessary and sustained investments that lead to better and safer roads for all Americans.” - AAA President and CEO Robert L. Darbelnet.

“I love ‘Occupy Wall Street’! John is sending his smile to

‘Occupy Wall Street.’ I am sending my love to ‘Occupy Wall Street.’ We are all working together. You are letting the world know that American activists are doing this. That gives them inspiration and encouragement. That is very important now for the United States and the world. As John said: ‘One hero cannot do it. Each one of us have to be heroes.’ And you are. Thank you. ” - Yoko Ono, John Lennon’s $500-million-net-worth widow, every dollar of which was earned by exploiting capitalism, offering her anti-capitalist support for the wackdoodles occupying Wall Street. One wonders if the irony and the hypocrisy is completely lost on these leftist loons.

“When the bill was finally passed 15 months ago, it had

swelled to 2,600 pages, and since then, lawmakers have decided that they will need to make some 243 new rules to turn that bill into law, and conduct 65 studies. That has necessitated the formation of 100-odd committees, each of which is now spewing out consultation documents, which typically run to several hundred pages. Those consultation documents, in turn, generate endless private sector legal memos. And the agencies are receiving more “feedback”, too. Officials from the Commodity Futures Trading Commission, for example, say that they have now received no fewer than 25,000—yes, thousand—comments on the proposed rule reforms; some 15,000 relate to their reforms for commodity trading limits. And the CFTC is only one of the agencies involved in this feedback process. By law, regulatory officials then have to read each and every comment before anything can be done; and those submissions can sometimes stretch—you guessed it—to several hundred pages each. That 1,300-page number, in other words, now multiplies a thousand-fold, if not tenthousand-fold, across the system as a whole; it makes a collateralized debt obligation look almost simple.” - From an article in the Financial Times highlighting the incredible over-complexity of the recent Dodd-Frank “Reform” Act. Ironically, Chris Dodd & Barney Frank are

“It was pretty funny. Jonathan told staff they don’t pay for

protesters, but the people in the meeting who work there objected and said, ‘Wait, you pay us to go to the protests every day?’ Then Jonathan said ‘No, but that’s your job,’ and staffers were like, ‘Yeah, our job is to protest,’ and Westin said, ‘No your job is to fight for economic and social justice. We just send you to protest.’ “Staff said, ‘Yes, you pay us to carry signs.’ Then Jonathan says, ‘That’s your job.’ It went on like that back and forth for a while.” - Reporter’s unnamed source, an individual who claims he is being paid to protest at Occupy Wall Street, recalling a meeting with Jonathan Westin, Director of New York Communities for Change. The group is the renamed ultra-left ACORN organization - doing what the left is best at: lying. They’ve staged an organized, paid-for protest while attempting to make it look as if it is a spontaneous, organic uprising. MORE...

“So we Americans cannot help but feel some ambivalence

toward our singularity in the world—with its draining entanglements abroad, the selfless demands it makes on both our military and our taxpayers, and all the false charges of imperial hubris it incurs. Therefore it is not surprising that America developed a liberalism—a political left—that took issue with our exceptionalism. It is a left that has no more fervent mission than to recast our greatness as the product of racism, imperialism and unbridled capitalism. But this leaves the left mired in an absurdity: It seeks to trade the burdens of greatness for the relief of mediocrity. When greatness fades, when a nation contracts to a middling place in the world, then the world in fact no longer knocks on its door. (Think of England or France after empire.) To civilize America, to redeem the nation from its supposed avarice and hubris, the American left effectively makes a virtue of decline—as if we can redeem America only by making her indistinguishable from lesser nations.” - Author Shelby Steel in a recent column entitled “Obama and The Burden of Exceptionalism.” MORE...

“Trial lawyers, doctors, chiropractors, medical clinics, and

others who benefit the most from PIP locked arms to blockade every reform that would hurt their pocketbooks. Rather than acknowledge there is a fraud problem and work honorably toward a solution, they lobbied against all bills. “- Richard Parrillo, Sr. in a Nov 2011 column, A Solution to PIP Fraud in Florida, run in The Florida Underwriter on the industry disappointments in the Florida 2011 legislative session. We would also note the complicity of the legislators themselves - who must have realized the cost to Florida citizens as they sold out their constituency in favor of the “pro-fraud” lobby. MORE....

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The Underwriter’s Insider

Continued from Page 10

ZALMA CMIC contended the clauses were not mutually repugnant because its policy does not operate at the same “coverage level” as the SIC policy. The CMIC policy is, according to CIMIC, an excess policy that operates above the SIC policy. CMIC claimed this is so because “the SIC policy was primary by virtue of its omnibus coverage[,]” while the CMIC “other insurance” clause limited the CMIC policy to excess coverage.

language making each policy excess. There are no meaningful distinctions between the two. The policies provide the same coverage level and both contain language making them excess over other policies. Applying the general rule the Appellate Court disregarded the “other insurance” clauses and found each party responsible for its pro rata share of the loss.

CMIC’s argument was based upon a common error made in the interpretation of insurance policies: limiting http://www.zalma.com/zalmabooks.htm its analysis to one part of the policy rather than the policy contract as a whole. By Finding that the trial court erred in not reading the entire policy and granting summary judgment in favor limiting its argument only to the of CMIC, and instead should have wording of its “other insurance” entered judgment in favor of SIC. clause CMIC ignored the main grant of coverage in its policy. The CMIC LESSON policy provided “liability insurance” when the insured is legally obligated Whenever an insurer and its counsel to pay damages because of bodily are called upon to interpret a policy injury or property damage “caused of insurance it must: by an accident resulting from the ownership maintenance, or use of 1. Read the policy as a whole. an insured vehicle, … or of any non- 2. Apply the wording of the policy to owned vehicle.” This is a grant of the facts. primary insurance coverage for the 3. Provide the insured with the driver using a non-owned vehicle. indemnity promised. 4. Do nothing to prevent the insured The driver, Kooistra, was covered from receiving the benefits promised both under his own liability policy by the policy. for driving a non-owned car, and under the owner’s policy, which When, like SIC, the insured is extended coverage to those driving protected by one insurer’s policy the owner’s car with permission. The and another attempts to avoid its other insurance clauses both contain obligation by claiming an identical www.underwritersinsider.com

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“other insurance” clause to the one provided by the insurer, should sue to recover its pro rata share from the other insurer and not allow it to profit from a wrongful denial of a covered claim.

rink up! How often do you fi nd out that something pleasurable is also good for you? A new study finds red wine consumption it could cut your risk of colon polyps which sometimes lead to colon cancer. The study found that consumption of three or more glasses of red wine a week seemed to offer some protection against the polyps. Among non-drinkers, ten percent of them had the abnormal growths while just three percent of red wine drinkers developed the polyps.

nother study shows a significant difference in the chance of catching a cold for those who exercise at least fi ve times a week - by a factor of 50%. Especially with overweight, post-menopausal women, those that worked out at least five times a week were not only thinner but had much fewer colds than those who didn’t.

magine every movie you’ve ever seen on one DVD. Harvard researchers believe they have discovered a way to fit 3000GB — or move than 1000 movies on a single disc by reducing the size of the laser beam that records the data. The Harvard beam has been shrunk to an incredibly small 40 billionths of a meter wide. A practical application of the technology, which would include vastly improved storage for computers, digital cameras and other storage devices could be as long as 10 years. 33

WAHVE, PATRA FORM ALLIANCE TO HELP MEET OUTSOURCING NEEDS OF INSURANCE AGENTS, BROKERS Firms Offering Complementary Services to Business

EW YORK CITY / NOVATO, CALIF. (October 25, 2011) -Two insurance outsourcing firms have formed a strategic alliance to help insurance firms select the best option for their outsourcing needs. Patra Corporation, which provides back-office and account management outsourcing, and Workat-Home Vintage Employees, LLC (WAHVE), which provides domestic remote staffing solutions for insurance firms using the industry's retiring talent, have entered an exclusive partnership utilizing their complementary strengths and expertise to create outsourcing solutions for insurance firms of all sizes. This partnership provides small, middle-market and high-end agencies with new outsourcing options that address challenges ranging from high-volume, highly specialized tasks such as certificate issuance to sophisticated activity such as quality control and account audits. Additionally, this agreement enables an agency to allocate the service work for an entire book of business for management by an outsourced solution. "By teaming with Patra, WAHVE is now able to supply experienced insurance industry professionals to more insurance agencies and brokers,"

said Sharon Emek, PhD., WAHVE's president and CEO. "Outsourcing employees is one of the most efficient ways for insurance agents and brokers to boost productivity."

WAHVE will be Patra's exclusive domestic provider of skilled retired insurance professionals, and Patra will be WAHVE's exclusive provider of offshore insurance outsourcing.

"The WAHVE partnership greatly expands Patra's on-shore outsourcing capability and positions the two companies as the only major outsourcing providers with comprehensive domestic and overseas solutions," said Dan Easterlin, Patra's co-founder and co-CEO. "The partnership came about as the result of listening to our customers ask for domestic staffing options to augment Patra's current overseas services. WAHVE's talent pool is the industry's best when it comes to quality, experience and knowledge."

While staff outsourcing has been available to insurance firms in the United States for years, there is a new wave of awareness about the benefits of outsourcing, due to the constraints presented by the soft market for commercial lines pricing, slow economic growth, the changing demographics of the workforce and extensive technology advancement. With insurance firms recognizing the need for their staff to focus on customer contact and not on process work to grow and stay profitable, there is an increasing need to outsource the right work to the right worker at the right time for the right price. WAHVE and Patra can help decision-makers determine which outsourcing solution is best from a number of options.

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WAHVE innovated the "remote outsourcing" model under which experienced U.S. retirees work from home for insurance industry firms. Founded as an alternative to offshoring for agents, brokers and insurers, WAHVE provides back-office processing and customer service. WAHVE created a database of baby boomer retirees with insurance knowledge who provide contract staffing or consulting to firms on a full-time, part-time and/or project basis.

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

Patra created the "specialist model" that allows it to allocate a team of specific resources when insurance clients need them. Using a web-based workflow management system, Patra uses employees based in its operations center in India and client service leaders based in the U.S. About Patra Corporation: Founded in 2005, Patra Corporation is the worldwide leader in agency backoffice and account management business process outsourcing. The company offers a wide range of services designed to lower costs, reduce risk and improve employee productivity through the transfer of client support functions to its operations centers in the U.S. and India.

www.PtraCorp.com About WAHVE: Work At Home Vintage Employees (WAHVE) is a unique, cost-saving, remote contract staffing solutions for the insurance industry. Using an innovative work-at-home model, WAHVE employs skilled insurance retirees located in the U.S. who understand the industry's technology, culture and language. By outsourcing to WAHVE, insurance firms can leverage these qualified, experienced, and tech-savvy retirees to significantly lower costs and improve profitability. Founded by executives with more than 30 years of insurance agency, technology and service-center experience, WAHVE is the only domestic alternative to offshore remote staffing for insurance firms (including agents/brokers, wholesalers, insurers, and vendors), providing back office and customer services on a full-time, part-time or temporary basis. www.underwritersinsider.com

KIM KOMANDO

the Internet. To get the podcast, watch the show or find the station nearest you, visit: http://www.komando.com/ listen. To subscribe to Kim’s free email newsletters, sign-up at: http://www. komando.com/newsletters.

software and other businesses tools you use. For example, you can scan business cards and integrate them into your customer database.

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Of special interest to CPAs, Shoeboxed offers multi-user accounts, and all scanned receipts are IRS acceptable. That makes tax preparation and audits much easier. Finally, you can try Expensify https:// www.expensify.com/. Like Shoeboxed, this is geared more toward business needs. You receive an app that can scan receipts and process them for expense tracking. Expensify can also pull expense information directly from your bank accounts. The app includes features for tracking mileage, which in turn allows you to sync up the mileage with your fuel receipt. Expensify features a Guaranteed eReceipts system that conforms to IRS record-keeping standards. It will allow you to export information to Quickbooks or a spreadsheet. The service is free for individuals and consultants. Businesses are allowed two free users. Additional submitters will pay $5 per month. The business only get charged when its employees actually use the service. Copyright 2011, WestStar TalkRadio Network. All rights reserved. Kim Komando hosts the nation’s largest talk radio show about consumer electronics, computers and

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Kim Komando hosts the nation’s largest talk radio show about consumer electronics, computers and the Internet. To get the podcast, watch the show or find the station nearest you, visit: http:// www.komando.com/listen. To subscribe to Kim’s free email newsletters, signup at: http://www.komando.com/ newsletters.

at mice have a harder time fi ghting cancer - and researchers believe the same may hold true for humans. It seems that fat cells, or a substance they secrete, somehow inhibit apoptosis - the normal process of cell death that follows DNA damage to the cell. When apoptosis is inhibited, tumor growth is encouraged.

e cool — if you want to live longer. Researchers found that they could extend the life of lab mice by as much as 20% — simply be lowering their core body temperature about 1/2 a degree — and that the results could translate to humans.

tudies show that the utility of ethanol in replaceing fossil fuels may be exaggerated. One study showed that it could replace only 12% of current fuel consumption even if every acre of corn were used for ethanol production. Although a University of Minnesota research study concluded that biodiesel from soybeans is a better choice than corn, “neither can replace much petroleum without impacting food supplies.” 35

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.

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The Underwriter’s Insider

CREEKMORE INSURANCE GROUP RELEASES FIRST ANDROID APP FOR INDEPENDENT AGENTS AND ADVISORS

reekmore Insurance Group announced recently the release of the first Android application specifically designed for independent insurance agents and financial advisors. The Life Agents Mobile Office app offers a complete set of tools for agents and advisors working with life insurance products. Users of the application can now run term and universal life insurance comparisons from multiple carriers, perform needs analysis calculations, assess risks using an underwriting library, perform needs analysis, and check the status of their cases in real-time from any Android phone or tablet.

phone or tablet. An advisor can move from an impromptu conversation with a client, into detailed needs analysis and a discussion of the client’s health history, without having to open a computer or touch a pencil and paper.”

For a limited time, Creekmore Insurance Group is giving away Android tablets to qualified agents and advisors. Interested agents are encouraged to contact Creekmore for details. MORE...

Mathew Treskovich, CFO of Creekmore Insurance Group, is excited about the new technology. “We live in an increasingly connected and mobile world. This app allows agents and advisors access to the tools they need to help their clients anywhere.” Agents and advisors can download the Life Agents Mobile Office application for free from the Android market. The app includes term and universal life insurance comparisons, a needs analysis calculator, a medical underwriting guide covering over 100 impairments, and access to real-time insurance case status. “This platform is truly a gamechanger,” says Treskovich. “Agents and financial advisors can effortlessly get rates for a wide variety of term and permanent insurance products, in a format optimized for their Android www.underwritersinsider.com

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