The Underwriter's Insider 2012 Issue 8 by The Underwriter's Insider

INSURANCE • POLITICS • TECHNOLOGY • PEOPLE VOLUME 9 • 2012 • ISSUE 8

Features News 5

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Kim Komando

Florida Agents Charged With Multiple Felonies - 4 Years in Prison & 20 Year Probation

The Danger of a Convenant Not to Execute - By Barry Zalma

The Politics off “Gimmee” OP/ED - by Ronald Manera

Premium Finance Scammer Faces 105 New Charges

Mia Love Video - Incredible Speach at the RNC in Tampa

Florida Arrests Woman in $270,000 Medicaid Fraud

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Florida Expands Consumer Interactive Web Program

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News 23 24 32 34

Navy Seals Rip Obama For Leaking Key Intelligence Data For Political Gain From Salesperson to Trusted Partner -By Matthew A. Treeskovich Federal Court Shuts Down Florida Tax Return Preparers Florida Arrests Tampa Health Insurance Execs For Hiding Companyâ&#x20AC;&#x2122;s Insolvency

Florida Tells ForcedPlace Insuror - 2.2% Rate Decrease Not Enough

Bolt Insurance Announces Strong Presence in Florida

PEW Research Predicts Doubling of American Muslim Population by 2030

N. Carolina Charges 4 in $5.3 Million Insurance Embezzlement Scheme

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FLORIDA INSURANCE AGENT CHARGED WITH MULTIPLE FELONIES SENTENCED TO FOUR YEARS IN PRISON - 20 YR PROBATION

tuart, FL - Eden Paul Agnew pleaded “no contest” to four felony counts on August 20, 2012 and was sentenced to four years in prison along with 20 years of probation - each year of which he must pay back Universal P&C Insurance Company $5,000 in restitution. Agnew was charged with organized fraud, grand theft, insurance fraud and one count under the Racketeer Influenced and Corrupt Organizations Act (RICO) statutes. www.underwritersinsider.com

Agnew, who represented Universal Property & Casualty Insurance Company and sold homeowners policies on their behalf, had been arrested for criminal acts involving home wind mitigation inspections. It seems Agnew was charging between $150 and $500 for inspections of homes built between during or after 2002. Those homes did not require inspections under the current rules due to stricter building codes enacted after 2001. Many of the homes were not inspected at all, according to homowner affadavits.

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Agnew, who has been in jail since his arrest on November 3, 2009, will be credited for time served. Although he had originally pleaded guilty in December, at his sentencing hearing Agnew changed his plea to “No Contest,” saying An acquaintence of Agnews, Stuart insurance agent Brad Sellick, testified that “Mr. Agnew is a very good salesman, but not a very good businessman and an even worse adminisrator.” Agnew’s lawyer asked the judge for leniency - requesting only a year of county jail with a furlough to take care of his mother, but the request was denied. 7

CONTENTS 2012 • Issue 8

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ARE YOU READY FOR A SHARED DATA PLAN?

by Kim Komando

f you’re one of the 200 million wireless customers of AT&T or Verizon, it’s time to make a decision about shared data plans. Verizon rolled out its Share Everything plans to new customers back in June. The mobile operator allows current customers to stay on tiered plans if they prefer. Those on grandfathered unlimited plans must switch to a tiered plan or a Share Everything plan to get a subsidized phone. AT&T’s Mobile Share launches Aug. 23. The carrier has said it will continue to offer traditional plans to new and current customers. Those with grandfathered unlimited plans can keep them. Even if you’re h a p p y

with your tiered or grandfathered unlimited plan, it pays to learn the ins and outs of these new shared data plans. A shared plan might save your family money and offer more features than you’re getting now. Shared plans from AT&T and Verizon start out by giving users unlimited talk and text. Your monthly wireless bill is determined by how many gadgets you want covered and how much data you want to share among them. Up to 10 devices can be used on a plan. You can cover smartphones, feature phones, tablets and laptops/ connect cards/netbooks. AT&T and Verizon charge a monthly base fee of $30 for a feature phone, $10 for a tablet and $20 for a laptop/ connect c a r d / netbook. ( There is no

extra charge for tethering - that’s using a smartphone or tablet to share an Internet connection with other devices.) At Verizon, each smartphone costs $40 per month. A smartphone costs $45 on AT&T’s 1GB plan, $40 on the 4GB plan, $35 on the 6GB plan and $30 on the 10-20GB plans. Shared data plans let family members draw from a monthly pool of data. You don’t have to buy a data plan for Mom, a data plan for Dad and a data plan for Junior. The good news for light data users is that AT&T and Verizon shared plans start at 1GB. Verizon’s 1GB is $50, while AT&T’s is $40. From there, AT&T jumps to a $70/4GB level. The 4GB Verizon plan also costs $70. A family using 4GB of data with 2 smartphones, one basic phone and one tablet would pay $190 per month at Verizon and AT&T. Unlike AT&T, Verizon offers a 2GB/$60 data plan. That could be the sweet spot for many families. AT&T’s higher allotments include 6GB/$90, 10GB/$120, 15GB/$160 and 20GB/$200. Verizon’s data levels step up in 2GB/$10-a-month increments, maxing out at 20GB/$150. Generally, shared data plans are a good fit for families that still talk

See Kim Komando Pg 37 www.underwritersinsider.com

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THE DANGER OF A COVENANT NOT TO EXECUTE By Barry Zalma, Esq. MALICIOUS LAWYER LOSES COVERAGE

awyers who filed and maintained a maliciously prosecuted lawsuit, when sued for malicious prosecution, the lawyers entered into a settlement with the injured party for a $4.5 million verdict that could only be executed against the lawyers’ legal malpractice policy. In doing so it avoided a lengthy litigation and the danger of being required to pay a judgment. In John Shiddell, et al v. the Bar Plan Mutual, et al, No. WD74462 (Mo.App. W.D. 07/31/2012) the Missouri Court of Appeal refused to compel an insurer to pay for the malicious conduct of its insured. The injured party took nothing and the malicious lawyers walked free of the judgment for its malicious conduct.

Bar Plan”). Pursuant to a settlement agreement, Appellants obtained a $4.5 million judgment against The Bar Plan’s insured, Dysart Taylor Lay Cotter

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, “Insurance Fraud,” which is available at his Web site, www.zalma.com. Go to Zalma Books at http://www.zalma.com/zalmabooks.htm.

FACTS John E. Shiddell, John G. Shiddell, & McMonigle, P.C. (“Dysart Taylor”), in an Rosalie Shiddell, and Anchor action for malicious prosecution, and Insurance Agency Inc. (“Appellants”) Appellants challenged The Bar Plan’s appealed from a denial of coverage judgment entered Join Barry Zalma’s new Blog: to Dysart Taylor in the Circuit Court http://www.zalma.com/blog for that judgment of Jackson County based upon a policy granting summary exclusion. judgment in favor of The Bar Plan Mutual Insurance Company (“The 10

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The Shiddells are the owners of the Anchor Insurance Company. In 1998, one of their customers, Alpha Omega Express, Inc., asked John G. Shiddell to add a company for which it performed contract work, Airborne Express, Inc., to Alpha Omega’s business automobile policy with Cameron Mutual Insurance Company. Shiddell conveyed that request to Cameron Mutual which agreed and issued the appropriate certificates of insurance. On April 4, 2002, David Dodson filed suit against Alpha Omega and Airborne Express claiming that one of their drivers had negligently caused an automobile accident that had left him paralyzed. Cameron Mutual hired Dysart Taylor to examine whether there was a way to avoid coverage for the accident. Kent Bevan, the attorney working on the case, examined the suit and the policy and determined that there was coverage. Without any knowledge of any facts to support the claim, in an effort to get Appellant’s E & O insurance carrier to contribute to pay a portion of Dodson’s claim, Bevan filed suit against Appellants, on behalf of Cameron Mutual, alleging that they had forged the document adding See Zalma Pg 33 The Underwriter’s Insider

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THE POLITICS OF “GIMMEE” “What’ya want? We’ll loot the treasury, we’ll rob the rich and we’ll print the rest. Just get in line!” (And vote for me...) by Ronald J. Manera, Editor

In 2008, virtually every American

Note: This piece is an update on an OP/ voter stood up proudly and shouted, ED first published in The Insider prior to the "What are you going to do for ME?" 2008 election - just before Barack Obama And there was absolutely no shame was swept into office on a wave of historic, in it. transformative “Hope and Change.” Since then the divisive, hate-the-rich rhetoric It’s All About You! from the White House has increased exponentially as welfare and food-stamp Somehow, the grasping for personal roles reach record levels. Fewer and fewer benefit was almost viewed as Americans are even required to pay income patriotic, righteous. As if one’s taxes as more and more is asked of those highest, most significant calling as who do. Hopefully, a republishing of this an American was to vote oneself the article before the November assets of other election will cause at least Americans “The grasping for one American to rethink his and then pat vote. - Ed personal benefit was

t was almost 52 years ago when President John F. Kennedy, in his historic inaugural address, uttered the now-famous phrase: "Ask not what your country can do for you - ask what you can do for your country." What brave words from America’s young president and what a challenge for her citizens.

almost viewed as patriotic, righteous. As if one’s highest, most significant calling as an American was to vote oneself the assets of other Americans and then pat themselves on the back for having done so.”

How things have changed.

themselves on the back for having done so.

wage and more mandated benefits. And I want a big tax cut even if I pay no taxes." Just send a check. If you mug a rich man for $50 in a parking lot you go to jail, perhaps for a long time. If you’re a politician who promises to confiscate millions of dollars via the tax system from the same man — you’re a hero and a patriot to many on the political left. Go figure. It is unlikely that I will cross Obama’s $250,000 income threshold for targeted tax increases this year, (very unlikely), so I guess I should be pleased that the rich may be assessed the additional costs to pay for whatever government services

Little thought is wasted on what’s good for the country, what is moral or where the money is coming from. It doesn’t matter. Because today, it’s all about ME:

President Barack Obama, in his inaugural address, might just as well uttered the following words reflective of his campaign:

"I want the government to take care of all my needs. I don’t care who you steal it from, who you raise taxes on or what industry you bankrupt. Just get it and give it to ME."

"What’ya want? We’ll loot the treasury, we’ll rob the rich and we’ll print the rest. Just get in line. You don't have to do nothing." In truth, the Republican campaign’s message wasn’t much different.

"I want free healthcare. I want free education. I want subsidized housing. I want reduced interest mortgages and I want to qualify for those mortgages even if I have no income. I want a higher minimum

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and benefits I consume next year. Yet there is absolutely nothing in my being which would cause me to celebrate such a system.

For this citizen, at least, it’s NOT just about me. My politics haven’t changed from when I was a young factory worker in Milwaukee to years gone past when I did cross Obama’s income threshold by a wide margin. The rich owe me nothing. In fact, I may owe them. They've been carrying the tax burden for a long time.

businesses? Attempt to maximize profit? Have any of you offered to reduce your commission rate because the public thought you were "greedy" to be earning a profit? There is a difference between working for your money and voting for your money.

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In truth, there is nothing more greedy than an American citizen, having failed to take advantage of the enormous opportunity afforded by this country, who now wishes to simply confiscate the wealth and income of another citizen via the political system.

Serious, recent FSU grad

Now, more than at any time before, the federal government is encouraging lower income and middle class Americans to both despise the rich and demand their wealth. It’s a transparent, evil scheme to buy votes with taxpayer dollars For those citizens who have less than - no matter the ultimate cost to the they wish to have, the message of American economy. Yet my concern hope and change should be this: is for the lack of character left in the There has never American voter. been a country For the lack of it, “There is nothing more that offers more we may not exist greedy than an American opportunity for long as a country. success than citizen, having failed to America. (At least As we slide take advantage of the until now.) There happy and enormous opportunity has never been an oblivious towards economic system socialism, with afforded by this country, that delivers more the ever growing who now wishes to wealth to more government simply confiscate the people of every more and more class than the invested in the wealth and income of American brand private sector, another citizen via the of free-market we may watch political system.” capitalism. (At the creation of least until now.) the American nanny-state where every one of our The left loves to talk about corporate life's needs are met by all-knowing greed. They are describing, bureaucrats in Washington. Lose apparently, the successful efforts your self-reliance. Lose your selfof corporate management teams determination. You won't need any that are paid to maximize profits for of it. their shareholders. This is capitalism - not greed. It is a big part of what Just sit back with your hand out. has made America great. Isn't this It's all about you. It's the politics of what we all do when we run our "gimmee."

ic - fast learner - anx-

What’s right is right. Our politicians should be encouraging us to vote for what is moral and truly fair rather than simply to vote for whomever promises the most government goodies; for what we can do for our country, not for what it can do for us.

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FLORIDA PREMIUM FINANCE SCAMMER RANSBERGER FACES 105 NEW COUNTS OF GRAND THEFT AND MONEY LAUNDERING

n June of 2009, Insurance Joseph Ransberger submitted a AgentJoseph D. Ransberger of fabricated and fraudulent commercial JDR Coverage Solutions, Inc. insurance application to All Risks for (Palm Beach Gardens, FL) was arrested liability coverage on a Palm Beach County apartment complex which for committing resulted in the acts of organized issuance of a Lloyds fraud, grand of London Insurance theft first degree Policy. Ransberger and insurance then received fraud second financing for the degree in Palm premium thru Capital Beach County. Premium Financing The investigation Co. in the amount revealed that of $12,760.73 which Ransberger was deposited into operated a Joseph D. Ransberger bank premium financing Convicted Ponzi Schemer Ransberger’s account and never “Ponzi Scheme” remitted to All Risks. The policy was from his home based insurance business borrowing nearly $2 million eventually cancelled for non-payment dollars from ETI Financial Corp. for of premiums and Ransberger insurance policies on entities that converted the funds to his own use. never existed. When Ransberger’s ansberger was arrested scheme was unraveled it left ETI with and faces additional $500,000.00 in outstanding premium charges of insurance fraud loans to Ransberger. for submitting a false application In late 2011, DIF received another and a violation of the insurance complaint on Ransberger from All code F.S. 626.561 (3)(b) reporting

Florida Chief Financial Officer Jeff Atwater announced in late August the filing of additional charges against convicted Ponzi schemer Joseph D. R a n s b e r g e r, 49, for 105 counts of grand theft and money laundering. The new c h a r g e s allege that R a n z b e r g e r, a former Palm Beach Jeff Attwater G a r d e n s Florida CFO insurance agent, conducted a Ponzi scheme to defraud premium finance companies out of more than $1 million dollars in premium finance loans.

“Career scam artists undermine the intent of insurance coverage and put businesses at risk for their own personal gain,” CFO Atwater said. “Our fraud investigators will continue to track down these schemes and put the perpetrators behind ETI Financial Corp., SIUPREM and bars where they belong.”

Risks, Ltd., a Managing General Agent (MGA), which indicated a Capital Premium all hit hard - with suspicion that Florida The Florida Department insurance agent Joseph ETI reportedly left with $500,000 in of Financial Services’ D. Ransberger of JDR Division of Insurance outstanding premium loans. Coverage Solutions, Fraud (DIF) conducted Inc., misappropriated an investigation after additional insurance premium funds receiving a complaint by SIUPREM, a between the date of his courtroom and accounting for funds, for licensed premium finance company, the premium which alleged Ransberger submitted plea and his scheduled sentencing in misappropriating finance funds. Palm Beach County. over 100 fraudulent premium 14

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finance agreements in a 14-month period totaling more than $1 million. The applications contained misrepresentations regarding fake insurance policies, placed with Lloyd’s of London through International Risk Specialist Inc., a shell company established by Ransberger. These charges come as Ransberger is currently serving a one-year prison sentence for operating similar premium finance Ponzi schemes. He utilized the proceeds from these schemes to finance a lavish lifestyle for himself and his wife.

“MR. PRESIDENT, THE AMERICAN PEOPLE ARE AWAKE AND WE AREN’T BUYING WHAT YOU’RE SELLING IN 2012!” Mia Love, Mayor of Sratoga Springs, Utah and 2012 Republican Nominee for the US Congress Blasts Obama Click Image to Watch Video

The Palm Beach County Office of the State Attorney, 15th Judicial Circuit will be prosecuting the new charges against Ransberger. If convicted, he faces up to an additional 30 years in prison. www.underwritersinsider.com

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FLORIDA ARRESTS WOMAN FOR $270,000 IN MEDICAID FRAUD

allahassee, Fla. –Attorney General Pam Bondi announced today that an Okaloosa County resident was arrested and charged with three counts of Medicaid fraud for allegedly billing more than $270,000 for services under the Medicaid Developmentally Disabled Waiver Program. With the assistance of the Okaloosa County Sheriff’s Office, the Attorney General’s Medicaid Fraud Control Unit, took Victoria Walker, Executive Director of Abilities Center of Northwest Florida, Inc., into custody. “We will remain steadfast in our efforts to protect taxpayers’ money from those who attempt to defraud the Medicaid program,” stated Attorney General Pam Bondi. “I appreciate the assistance of the Agency for Persons with Disabilities and the Okaloosa Sheriff’s Office for their partnership in investigating $270,000 worth of Medicaid fraud.” The Agency for Persons with Disabilities provided

the Medicaid Fraud Control Unit with information regarding the allegations. Between 2007 and 2010, Walker, 59, allegedly submitted claims containing non-billable services and falsified hours to the Medicaid program for reimbursement.

Walker is charged with one count of first-degree Medicaid fraud and two counts of third-degree Medicaid fraud. If convicted, she could receive up to 40 years in prison and $25,000 in fines. The case will be prosecuted by the Attorney General’s Office under the authority of Bill Eddins, State Attorney for the First Judicial FL Attorney General Circuit. Palm Bondi

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"When

everybody owns something, nobody owns it, and nobody has a direct interest in maintaining or improving its condition. That is why buildings in the Soviet Union -- like public housing in the United States -look decrepit within a year or two of their construction..." - Milton Friedman, Nobel-Prize Winning Economist.

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he Miami Herald reported that senior citizens are going without homeowners insurance as a result of huge Citizen’s rate hikes. According to the story, “Seniors are more likely to own their homes outright, meaning they have the option of going without property insurance. As Citizens Property Insurance Corp. raises its rates and its post-claim deductibles, more older Floridians are doing the math and opting to do just that.” When the premium is added to a deductible often exceeding $15,000, a fixedincome S. Florida homeowner may be more than $20,000 out of pocket before receiving any policy benefits in the event of a hurricane. Many Floridians are taking the gamble and going without, according to the report.

ccording to a well-known technology security researcher, SMS users (text messages) may be at risk of receiving bogus messages as a result of a weakness in the SMS protocal. Text messages have a header called a “User Data Header” (UDH) in which a knowledgable sender with the proper equipment can spoof the return address.

alifornia is at the forefront in the battle between insurers who want to use new technology to monitor the behavior of drivers and privacy advocates who claim the devices are excessively intrustive monitoring everything from milage, average speed, rate of stopping and starting and even destinations. The government of California opposes the new technology. “While there are occasional discussions with certain insurers and vendors, the department has no imminent plans to initiate usage-based rating factors,” claims Pat McConahay, a spokeswoman for the California DOI.

arketScout, the national electronic insurance exchange and specialty MGA, today announced Dr. Robert Hartwig, President of the Insurance Information Institute,

as a speaker for its 6th Annual Entrepreneurial Insurance Symposium. Dr. Hartwig will deliver a speech on economic conditions in the U.S. and how they will impact the insurance industry. “For anyone who hasn’t heard Dr. Hartwig’s presentations, this will be a real treat,” said Richard Kerr, CEO of MarketScout. “Hartwig delivers concise, well researched information at a rapid fire pace. Most attendees at the symposium are executives or owners of insurance companies, agencies, and intermediaries, so they will connect very well with this presentation.” Held in Dallas on September 11-12 at Cityplace Conference and Event Center, this two-day symposium event is a prime opportunity for networking as well as building new business relationships with other like-minded, forward thinking insurance professionals. Attendees have the opportunity to secure a CIC/CRM update and CE credit. Registration is now open and includes access to all presentation sessions, the Networking Exhibit Mall, breakfasts, executive luncheon, and cocktail reception.

OPUSA recently reported “A group of Chicago police officers are stepping forward and have filed a lawsuit against Mayor Rahm Emanuel. The suit claims they were “demoted from the mayor’s security detail when Rahm Emanuel took office because they weren’t politically connected and aren’t black.”

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Pew Research survey in May of 2011 found that “those 65 and older had a negative reaction to Ryan’s plan to change Medicare: 51% opposed the plan (including 43% who opposed it strongly) compared with only 25% who favored the plan. People under the age of 50 offered far more support than those over 50 for Ryan’s Medicare plan.” Ironically, Ryan’’s plan changes nothing for those over 55 years old. More confusingly, Medicare will self-destruct in just a few years if substantial changes are not made, yet seniors would seem to prefer to stick their collective head in the sand rather than being concerned with that reality. MORE

nsurance software company Applied Systems awarded 13 carriers with the Applied System Interface Leadership Awards and another 60 with Interface Partner awards at TENCon 2012, the flagship conference for users of Applied Systems software in Nashville, Tenn. Carriers that received the Applied Systems Interface Leadership Awards are Allied Insurance, EMC Insurance Companies, Farmers Union Insurance, Fremont Insurance Company, Grinnell Mutual Reinsurance Company, Harleysville Insurance, Liberty Mutual Agency Markets, New York Central Mutual Fire Insurance Company, Penn National Insurance, The Cincinnati Insurance Company, The Hartford, The Hanover Insurance Group and The Travelers Companies, Inc.

he Florida Insurance Department has discovered an agency located in California named Mulberry Insurance Services selling commercial property and liability policies in Florida without being properly licensed. The policies being sold are also bogus. They have issued fabricated binders indicating coverage for several insurers: North American Specialty Insurance Company, www.underwritersinsider.com

North American Capacity Insurance Company, Bermuda Limited, Lloyds of London, and others. Please call the Department’s Insurance Consumer Helpline at 1-877-MY-FL-CFO (6935236) if you believe you have been in contact with this agency or know someone who has purchased a policy from this agency.

roperty and casualty insurance predictive analytics provider Valen Technologies announced in August its substantial momentum with a new product for homeowners carriers, launched in March of this year. As the only offering of its kind in market, PropertyRight enables homeowners carriers to use predictive scores to quote policies online and in real-time. A top five carrier is amongst the first to take advantage of this vanguard solution, which better informs carriers on how to underwrite the homes they insure. In six months, Valen has scored nearly 1.5 million policies with a current run rate of over 12,000 policies per day. Valen delivers a transaction response time of less than one second, allowing its customers to seamlessly integrate PropertyRight’s real-time predictive analytic power directly into a carrier’s point-of-sale web applications, enhancing a carrier’s customer service and quote accuracy. Dax Craig, President and CEO of Valen Technologies, said, “PropertyRight solves a fundamental issue that homeowners carriers face in not knowing with certainty, the condition or value of many of the homes they insure. With an average combined ratio of 113 percent for homeowners over the last several years, carriers need better solutions to manage risk. We have developed a quick-to-market product that allows carriers of all sizes to gain instant access to reliable data for individual policies, in order to invest underwriting and inspection resources most effectively.”

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ccording to PEW Research, “The Democratic Party continues to maintain an advantage in party identification among voters going into this year’s campaign, but its lead is much smaller than it was four years ago. Since 2008, the GOP has made sizable gains among white voters, particularly working class white voters.”

nsurance software company Applied Systems announced today at TENCon 2012, the flagship event for Applied Systems users, the release of MobileProducer, the only independent agent mobile application designed specifically for insurance producers that provides them instant access to client information. An intuitive and personalized mobile interface provides producers easy access to view accounts, activities, contacts and insurance policy information. Having access to client data 24/7 provides producers with a competitive advantage and adds value to their product offering. Through MobileProducer, producers also have the ability to communicate through e-mail, add activities to the agency management system, and leverage GPS technology to map accounts and coordinate daily schedules – all from the touch screen of a tablet. The application works on the Apple iPad as well as tablet computers running the Android operating system. Through integration with Applied Systems Epic and TAM agency management systems, producers have on-demand access to the system of record. TENCon attendees were provided a trial version of MobileProducer as part of the company’s initial beta release. Applied Systems plans for MobileProducer to go into controlled release in September of this year, with a general release scheduled for later in the fourth quarter. “MobileProducer is a made-for-purpose app to provide producers the information that they want in the field in an intuitive format that takes advantage of the capabilities of mobile devices,” said Reid French, CEO of Applied System. 19

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Collectables

merican Collectors announces updated specialty coverage for valued collections. The company claims coverage available for almost any type of collection with multiple coverage options. www.AmericanCollectors.com/Agents (800) 620-5052 12-7

Commercial Auto

ational Ins Underwriting - Light, medium & heavy up to 66,000 lbs. up to 500 mile radius, Up to $1M CSL or $1/$2M split, Phys Dam up to $100K - Med Pay, Hired and NOL. Contact: Call Craig Calver - 800338-2680 X 508.

ingsway/Amigo Competitve commercial auto program. Any size fleet, - all types of cars, light trucks and vans - specialty services, like landscaping, electrical, plumbing, lunch trucks and other various occupations. info@ kinswayamigo.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 877590-0775 [11-6]

Contractors

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@normanspencer.com [11-7]

Contractor’s Pollution

ost contractors - including those with mold exposures and cleanup contractors. Program includes CPL - Occurrence or Claims Made form - mold coverage available - Annual & Per Project policies. Highly competitive rates claimed. All Risks, Ltd - Lou Ann Cook - 800-3665810 X 3030 email: nspflyer@allrisks.com [12-4]

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 877590-0775 [11-6]

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 [116]

Energy & Utility Risks

il & Gas Companies, pipeline operations, utilities, HVAC contractors and water & sewer contractors. Contact Victor O. Schinner & Co., Inc. Jeff Grigsby - 877-453-2071 or jeffg@ schinnerer.com [12-1]

ropane Dealers - PowerWrap is an endorsed insurance program offering specialized, full spectrum coverage. Contact Alteris: 877-590-0775 [12-1]

Entertainment & Sports

&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 800-637-4757 or www. kandkinsurance.com. [11-6]

Group Homes

roup Homes Programs for such risks as Hospice, Agencies for Aging, Homeless Shelters, Rehab Facilities, Adult Day-Care Facilities, etc. Comprehensive packages available - limits up to $1M/$3M - customize with many optional coverages. AFC Insurance - Toll Free: 877-456-5323

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 [11-7]

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Health & Human Services

FC Insurance - Package programs or ala carte. Contact: 877-4565323 www.afcins.com submissions@ afcins.com [12-2]

Homeowners

Kidnap & Ransom

ational Ins Underwriting -Webbased quick quotes, most protection classes & zip-codes OK - $40K - $750K dwelling values with replacement cost available. No credit scoring. Renters policies available. Contact: Craig Calver - 800-338-2680 X 508.

cademic institutions, energy companies, engineering firms, hospitals and healthcare, houses of worship, manufacturing firms, etc. Contact Victor O. Schinner & Co., Inc. Jeff Grigsby - 877-453-2071 or jeffg@ schinnerer.com [12-1]

Life Agent E&O

ife agent E&O from Rockwood Programs. Coverage limits from $250K to $1 Million. Base rates from $400 to $550. Individual policies. Indentity theft included. No shared aggregates. Includes mutual fund placement. Call 877-242-2487 or email sales@rockwoodinsurance.com. [12-4]

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 marine-related businesses. SeaBright provides seamless cov 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 504830-7347 jlasseigne@psrllc.co [11-7]

Marine, Recreational

orman Spencer announces availability of a market for multiple and vaious recreational marine risks including marinas, docks, boat rentals, boat mfgs, charters and more. Contact Corky Breeden at 937432-1631. 12-7

Have a P&C Product Announcement? Send your press release or one-paragraph announcement to ron@insurmedia.com

Martial Arts

&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. [11-6]

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) 736-6720 • Facsimile: (678) 736-6726 - Carter, Kimberly - 678 736-6720, Ext. 1000 - kcarter@ wwfi.com [11-7]

Professional Liability

echnology & Cyber, Architects & Engineers, RE Agents, Insurance Agents E&O, Misc. Pro Liability - and more: Contact Atlantic Specialty Lines lorie@atlanticspecial.com 877545-9100 [12-1]

ictor O. Schinnerer - A-rated carriers -Real Estate Agents, Healthcare Consultants, General & Artisan Contractors, Architects, engineers & consultants, public entities such as school leaders and public officiials. Contact: 877-4532071 www.schinnerer.com jeffg@ schinnerer.com

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. Call to ck on your state: Starr Crusenberry Starr.N.Crusenberry@Schinnerer.com - 301-951-6904 [11-6]

Restaurant

rgo Insurance announces l o we r rates filed on restaurant c o ve r a g e including fo o d s p o i l a g e c o ve r a g e. Fu l l commission and no agency a p p o i n t m e n t n e c e s s a r y. Co m p a ny i s l o o k i n g fo r f a m i l y s t y l e, f a m i l y g r i l l s, c a s u a l s t y l e, f i n e d i n i n g a n d limited cooking restaurants such a s p i z z a a n d s u b s h o p s. Email csmktgprograms@argogroupus. com 877-590-0775 [11-6]

o r m a n S p e n c e r ’s R e a l E s t a t e Pr o g r a m - “o n e o f t h e m o s t c o m p r e h e n s i ve p o l i c i e s i n t h e m a r k e t w i t h h i g h l y c o m p e t i t i ve p r i c i n g” Co ve r a g e i s av a i l a b l e to risks whose ser vices include R e s i d e n t i a l a n d Co m m e r c i a l S a l e s, Le a s i n g, Pr o p e r t y M a n a g e m e n t , Real Estate Co n s u l t i n g, Au c t i o n e e r i n g, Mortgage B r o k e r i n g, B P O ’s a n d A p p r a i s a l, and Escrow Ser vices - Michael R yd e r m i c h a e l r yd e r @ n o r m a n s p e n c e r. c o m 800.477.9192 x204 [11-7]

Security Guard

r o w ny a r d Pr o g r a m s announces c o ve r a g e fo r security g u a r d s, claiming to insure 15 of the top 40 security g u a r d c o m p a n i e s i n t h e U. S . B r o w ny a r d Pr o g r a m s w w w. b r o w ny a r d p r o g r a m s. c o m or pvancott@brownyardprograms. com [12-4]

Tech Consultants E&O

odern Insurance Co n s u l t a n t s we b s i t e d e s i g n , s o f t w a r e d e ve l o p m e n t , d a t a b a s e a d m i n , we b h o s t i n g, software/hardware sales - and m o r e. I T c o n s u l t a n t s u p t o $ 1 5 M i n a n n u a l s a l e s. Co n t a c t A n d r e w Lawrie - 305-248-9495 X 9108 a l a w r i e @ m o d e r n i n s. c o m [ 1 2 - 2 ]

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ASCNET, NETVU JOIN ID FEDERATION INITIATIVE AIMING TO REDUCE INSURANCE INDUSTRY PASSWORD MANAGEMENT CHALLENGES

RVING, TEXAS AND DES PLAINES, Tilton & Rolapp Insurance Associates. long is an added expense, not just an ILL. The two largest insurance "In today's environment, agencies inconvenience." agency management systems' are doing more work, but with less users groups in North America, time," he explains. "The ID Federation Password management also interferes NetVU (Network of Vertafore Users) initiative will be a game-changer with client service, notes NetVU and ASCnet (Applied Systems in terms of improved security and Chairman of the Board Mark Stolly, Client Network), have joined the ID greater efficiency. It will save us time CPCU, CIC, president of Stolly Insurance Federation as Liaison Members. The ID and money, and will lead to greater Group in Lima, Ohio. "Our job as Federation is a non-profit collaborative use of real-time processing." independent agents and brokers is working to provide common legal and to provide customers with direction technical standards that will eliminate "Formation of the ID Federation is a and understanding," he says. "This the need for individual agency IDs great example of how our industry requires that we spend quality time and passwords and, at the with each client. Managing “Streamlining the user ID and password same time, increase security user IDs and passwords to process so agents can log in just once and and ease of doing business communicate with carriers throughout the insurance access all of their various companies will be a is troublesome and costs distribution chain. us precious time that huge step forward for our industry.” would be better spent ASCnet Board Member with clients and prospects." Stuart Durland, principal, Seely professionals come together to & Durland Insurance Agency in improve our ecosystem's ease of "Agents have been asking carriers and Warwick, N.Y., says ASCnet and NetVU doing business," says Jim Rogers, who automation partners to move this volunteers have been working for helped spearhead formation of the ID forward," notes Moriyama. "This has some time with others in the industry Federation and serves as its treasurer. been a strategic item for the NetVU to address password issues that "Having industry partners contribute Board of Directors and an example hamper agency-carrier interactions. time, expertise and other resources of the industry coming together to "When this work evolved into the ID moves our industry forward as it looks define our future. We are pleased to Federation, there was no question to enhance security, boost efficiency work together with ASCnet to help we would support this solution," he and improve the user experience." the ID Federation see this process explains. "Streamlining the user ID through." and password process so agents can ASCnet Chair Maureen Boeing, log in just once and access all of their principal, Landmark Insurance Agency Boeing explains, "ASCnet's mission is to various companies will be a huge step in Cincinnati, says, "As an industry, we help members increase agency value forward for our industry." need to find new ways to simplify by maximizing systems use. Our board processes and make automation enthusiastically supports the work, Password management has been an work for our people, not against because it represents change that will ongoing challenge that has become them. Nobody wants to waste time allow ASCnet and NetVU members more frustrating in recent years, and money on technologies that and the broader independent agent adds NetVU Vice Chairman Stephen bog down processes and cost more community to work smarter and use Moriyama, senior vice president to use. The extra time employees their management systems more of Anaheim, Calif.-based Hayward spend logging into websites all day efficiently."

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The Underwriter’s Insider

FLORIDA ANNOUNCES EXPANSION OF CONSUMER INTERACTIVE WEB PROGRAM “CHOICES” TO INCLUDE AUTO INSURANCE

ALLAHASSEE, Fla. -The Florida Office of Insurance Regulation (Office) announced the expansion of its interactive program designed to encourage Florida residents to shop for the best insurance rates in the State of Florida. CHOICES, a program that previously only served the homeowners' insurance market, has now been expanded to include the auto insurance market.

consumers are educated about insurance products and prices for their particular circumstances. The purpose of this shopping comparison tool is to assist consumers in this regard."

Consumers can access the interactive tool, "CHOICES", through the Office of Insurance Regulation's website. The program allows consumers to select among three standard "I am very pleased to announce the risks for statutorily required expansion of our popular rate coverages, comparison system or for more to include auto comprehensive insurance rates," coverages. stated Florida After selecting Florida Ins Commissioner Insurance Commissioner the standard risk Kevin McCarty Kevin McCarty. "We that best match have leveraged the Office's resources their circumstances, the consumer may to give consumers even more select one of the 67 counties in the information, and to make the rates State of Florida. Consumers will then even more transparent. The foundation see a pop-up window ranking the rates of a competitive marketplace is that of leading automobile insurers in the

Navy Seals Rip Obama Administration for Leaking Key Intelligence Data for Political Gain

selected county. "CHOICES" was originally released in 2007 as "shopandcomparerates.com" for homeowners' rate comparison. The program was revamped and relaunched in 2008 with the "CHOICES" name. The current expansion includes a separate option for auto insurance coverage, while retaining the homeowner's rate comparison option. The rate quotes are for illustrative purposes only, and reflect the most recent rate filings accepted by the Office. The listing of an insurance company in the "CHOICES" program does not constitute an endorsement by the Office. The rates do not reflect all possible surcharges or discounts, and the Office encourages consumers to contact their insurance agent, or the company directly to obtain an official premium quote.

Click on Image Below To View Disturbing Video

n an almost unbelievably amateurish series of Whitehouse leaks of critical intelligency data stemming from the Bin Laden killing and other key covert operations, the Obama administration has caused irreparable harm to ongoing and future intelligence operations. One Navy Seal to the Commander and Chief: “Mr. President - to you and those close to you that hold some of the nation’s highest secrets - please be quiet! We need you to shut-up and close your lips when it comes to operational secrets.” www.underwritersinsider.com

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FROM SALESPERSON TO TRUSTED PARTNER

by Matthew A. Treskovich, CMA, CFP®, MBA, CLU, ChFC, FLMI

aking the leap from “salesperson” to “trusted partner” is the most difficult step in the business development process for any independent agent or advisor. Becoming a true partner in your clients’ business or personal finance requires more than a marketing slogan or set of talking points. The old adage “you can’t manage what you don’t measure” still applies today. The selfassessment process for independent agents and advisors requires honest answers to some difficult questions. Asking yourself difficult questions can spark the self-management process.

“How do I help clients through the decisionm a k i n g process?”

was they consider various products. The “buying process” is well-documented (even if clients don’t know they’re using a “process”). You need to have your own “process” that complements the client’s process and moves them in a productive direction.

The answer to this question should be discrete, concrete, and contained in bullet points, Matthew A. Treskovich not generic “Do the products and feel-good phrases services I offer drive real or two-dollar words. Answers financial results?” should be real actions that you take and insights you offer to clients See Treskovich Page 34

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The INSIDER’S

“The Final Authority on Everything!” If “Hold Down The Fort” Offends You - You Might Be A Liberal...

’m on vacation from my [S. Carolina] insurance office this week but I had to write. Before I left, I asked my commercial lines manager to “hold down the fort.” She told me the government had recently decided that phrase was now officially offensive because it’s origins had to do with the American Calvary fighting against Native Americans in the 1700s and 1800s. I thought she was kidding - but I looked it up and it’s true! When will this insanity end? - E.G. - Columbia, S.C. November maybe? As strange as it may sound to “normal” Americans, few of which now occupy official government positions, the federal Chief Diversity Officer John Robinson has actually announced that the phrase “hold the fort” must be stricken from our vocabulary because it is “negative and racially offensive.” Presumable a memo is going out to all Native Americans to inform them of their new obligation to be appropriately offended when hearing the phrase. Yet would not the memo itself implying that Native Americans aren’t bright enough to know when to be offended - be racially offensive as well? It gets so confusing...

ADVISOR

“hold the fort” when being attacked. So to reference that historical act somehow demeans Native Americans? I’m trying to get it, Mr. Robinson, I really am. The actual intent of the modern speaker is meaningless, apparently, if a longforgotten, centuries-old origin that somehow simply referred or related in any way to an ethnic group - no matter how indirectly or respectfully - there is good reason for some quack like John Robinson and his ilk to be offended. But Obama’s oh-so-sensitive Diversity Czar Robinson didn’t stop there. Ever use the phrase “rule of thumb,” you offensive, woman-hating, bigot? Because that phrase, according to Offended-in-Chief Robinson refers to an ancient English law that provided

Have a question for The Advisor?

Click HERE! a defense in law for a man beating his wife as long as the stick he was using was smaller in diameter than his thumb. Any 200 year-old English woman aware of that law would be totally offended if you were to use that phrase to describe, say, how much flour to add to her cake mix. Totally. Liberals, it seems, love to be offended. As long as they can distill some imagined offense out of an innocent comment or phrase, they believe they have fully discredited the speaker. With this kind of nonsense coming from the Obama thought-police, one has to wonder at the irony of them accusing Romney of being out of touch!

I’m trying to get my mind right, I really am. Because there were decades of war between Native Americans and American troops. The Americans often did hold up in structures they called “forts.” They did attempt to www.underwritersinsider.com

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CLASSIFIEDS

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. 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.

Commercial P&C Sales

Let’s combine... Agency looking to Merge

Recent FSU grad with insurance-related class work seeking full-time opportunity in local agency. I already hold a 2-20 license. Great work ethic fast learner - anxious to begin my insurance career! I would also consider the West Palm Beach area. Please

Don’t just sell your book of business and loose income. Why not merge and keep your client base. Contact: Peralta Insurance We have been in business for over twelve years, and have a large book of business and looking to expand. We carry all forms of insurance including; Health, Life, Commercial, Auto, Home, and many more. 12039 sw 132ct Miami Fl 33186 305-969-6960 peralta_ins@ bellsouth.net 9-5

or Underwriting Position Wanted Tampa,FL Area

email: fsurecruit12@yahoo.com 9-5

Coral Springs, FL Experienced 2-20 Agents Experienced P & C Agents required for a Coral Springs office. Good commission and renewal offered. Contact: tamiller91@yahoo.com

Independent Agency For Sale or Merger Location is in North Florida area. $150,000 Firm. Email For More Info: portmgr@comcast.net

9-1

AGENCY FOR SALE Very profitable Personal & Commercial Lines agency for sale in southwest Florida. Owner re-locating and very motivated to sell. Close to $300,000 in commissions with over 2500 clients. Good mix of auto,homeowners and commercial clients. Call Raj at 239-699-7047 9-4 26

220 Producer Anywhere in Florida Well established commercial agency specializing in the realm of workers’ comp seeks producer. You can be located anywhere in Florida. Excellent commission splits - training and leads. Other commercial markets also available - GL, etc.Contact: pcbizbuyer21@gmail.com 9-5

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HERE 2-20 Producers Wanted: Miami Westchester Area

Looking for Personal & Commercial Lines producers. Salary plus commission!!! Rapidly expanding ageny. Please contact us via email or call Yudanis or Luis @ 305-225-955 or: yudanis@optioninsurancesolutions.com

9-6

Looking to Expand Book of Business

Looking to buy independent books in Hillsborough County, Florida, full or in part. Please contact me for a confidential discussion.

abinsdmeyer@yahoo.com 9-4 The Underwriter’s Insider

Nationwide Agency Owner E.Bay Area, CA We need talented, businessminded individuals interested in our Future Agency Owner opportunity located in San Ramon OR Walnut Creek, CA market. What Nationwide Offers • Base salary, commissions and limited benefits for the first 18-24 months • Up to $95K in financial support upon graduation to offset agency start-up costs • Extensive sales and product training opportunities • Dedicated support •To apply: http://tinyurl.com/bn7w2rx 9-5

"Socialism is the philosophy of failure, the creed of ignorance and the gospel of envy. Its only inherent virtue is the equal sharing of misery." - Winston Churchill

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FREE CLASSIFIEDS HERE Foreign Insurance Organization Wanted Part-time position wanted to represent, administrate or manage London or other foreign insurance organization in any U.S. states. I have all state insurance licenses required. Contact:dnmiweiss@yahoo.com 9-6

Franchised Insurance Agency For Sale Well Est. Florida 2-20 Licensed and Franchised General Insurance Agency. Owner consolidated 2 locations into one in 2012 reducing expenses & increasing profits as a result. Pre-qualified for SBA Lender Financing w/ $81,250 Down. Terms are approximate. Asking $325K. Contact Corporate Investment Business Brokers | (239) 936-1718 | www.floridabusinessbrokers.com 9-5

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IMPORTANT! You may also place FREE position-wanted classified ads in this section. Just click on the link below and fill out the simple form and we’ll get you online.

HERE! Profitable Independent Agency For SALE Kissimmee Area

Profitable agency , with low overhead expenses in Central Florida (Kissimmee Area). Motivated Seller. Email: Essie.noboa@gmail.com

9-7 27

“The policy expressly excludes coverage for indirect

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.” Senator Barack H. Obama, March 2006 before he was elected president and decided that the answer to America’s fiscal crisis was to run up another $6 trillion in debt...

“We”

Built This Business Without Gov’t Help. Obama Can Kiss Our Ass. I’m Bob Roggendorff & I Approve This Message.” - From a billboard paid for by the aforementioned Bob Roggendorff, a Broken Arrow, OK business owner greatly offended by the president’s campaign trail remarks.

“The color of your skin is your sin.” - Alleged statement

of Chicago police commander explaining to white policeman why he was being demoted while black officers were not. Several Chicago police officers have filed a lawsuit against Mayor Rahm Emanuel. The suit alleges the officers were “demoted from the mayor’s security detail when Rahm Emanuel took office because they weren’t politically connected and aren’t black.”

“You notice he said ‘anger’ twice!

“There is all the difference in the world, however, between

two kinds of assistance through government that seem superficially similar: first, 90 percent of us agreeing to impose taxes on ourselves in order to help the bottom 10 percent, and second, 80 percent voting to impose taxes on the top 10 percent to help the bottom 10 percent -- William Graham Sumner’s famous example of B and C decided what D shall do for A. The first may be wise or unwise, an effective or ineffective way to help the disadvantaged -- but it is consistent with belief in both equality of opportunity and liberty. The second seeks equality of outcome and is entirely antithetical to liberty.” - Famed Noble-Prize-winning economist Milton Friedman - who spent most of his 94 years attempting to explain why feel-good liberal economics simply don’t/won’t work. If only young Barack Obama would have mentored under Friedman rather than noted communist Frank Marshall Davis... 28

losses—a term that includes the inability to realize income from the money, securities or other property that would have been realized but for the fraud.” From the written decision of an appeals court considering the $8.5 claim of Robert & Harlene Horowitz under a “fraud safeguard” provision in their AIG’s homeowner policy. The Horowitzs had invested with ponzi-schemer Bernie Madoff - and were one of the few that actually earned a profit from their investment: $226,000 on a $4.3 million investment over 10 years. Rather than cheer their good fortune, they were suing for what they believe their potential return on investment would have been if they had invested elsewhere.

He’s really trying to use racial coding and access some really deep stereotypes about the angry black man.” - MSNBC (the most radically left, in-the-tank-forObama “news” organization on the air) host Toure finding code words for racism in every utterance of Candidate Mitt Romney. It’s not possible that Romney, in the confused, ultra-politically-correct mind of Toure, is accurately reporting the increasingly frustrated, finger-pointing, hostile demeanor of Mr. Obama. Toure, and his ilk, actually provide some highhumor to this politically-charged season.

““A few years ago, this guy would have been carrying

our bags.” - Ex-President Bill Clinton, referring to then-candidate Barack Hussein Obama, during the 2008 Democratic Primary race in a conversation with the late Senator Ted Kennedy - as told to Tim Russert by sources. Reportedly, Clinton was in a conversation with Kennedy - attempting to convince Kennedy to endorse his wife, Hillary Clinton, in the primary. He was unsuccessful. Kennedy endorsed Obama, yet some Kennedy’s, including Caroline, have always felt snubbed by the 1st family - and may regret the endorsement.

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OWNER OF MIAMI HOME FEDERAL HEALTH COMPANY PLEADS COURT GUILTY IN $60 MILLION SHUTS DOWN MEDICARE INSURANCE FLORIDA FRAUD SCHEME TAX RETURN PREPARERS he owner of a Miami health care and physical therapy services to

care agency pleaded guilty today for his participation in a $60 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

Rodolfo Nieto Jr., 40, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to defraud the United States and to receive health care kickbacks. According to the court documents, Nieto was the owner and operator of Ronat Home Health Care Inc. According to court documents, during the time of the conspiracy, Ronat was a Florida home health “staffing agency” that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries. Ronat subsequently became a home health agency. According to court documents, from approximately January 2006 to approximately November 2009, Nieto accepted kickbacks in return for recruiting Medicare beneficiaries to be placed at Nany Home Health Inc., a Miami home health agency that purported to provide home health 32

eligible Medicare beneficiaries. The owners and operators of Nany paid Nieto kickbacks in return for allowing Nany to bill the Medicare program on behalf of the patients Nieto had recruited through Ronat. Specifically, as part of the scheme, Nany billed Medicare for home health services purportedly provided by Ronat.

In a related case, on April 25, 2012, Roberto Gonzalez and Olga Gonzalez, president and vice president of Nany, and their son, Fabian Gonzalez, all of whom operated Nany, were sentenced to 120, 87 and 87 months in prison, respectively, following their Dec. 19, 2011, guilty pleas to one count each of conspiracy to commit health care fraud. From approximately January 2006 through November 2009, Roberto, Olga and Fabian Gonzalez and their co-conspirators submitted approximately $60 million in false and fraudulent claims to Medicare, and Medicare paid approximately $40 million on those claims. At sentencing, scheduled for Oct. 23, 2012, Nieto faces a maximum penalty of five years in prison and a fine of $250,000 or twice the pecuniary gain or loss.

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federal court in Miami has permanently barred Sharon Angulo and Claudia Zuloaga, both of Miami, from preparing federal tax returns for others, the Justice Department announced today. The injunction order was signed by Judge Joan A. Lenard of the U.S. District Court for the Southern District of Florida. According to the government complaint in the civil case, Angulo and Zuloaga help customers use Internal Revenue Service (IRS) Forms 1099-OID to report fictitious income tax withholding. The complaint alleges that Angulo and Zuloaga’s customers file federal tax returns claiming tax refunds based on the fake withholding. The complaint states that the defendants have prepared or assisted in the preparation of at least 19 tax returns reporting false withholding and claiming fraudulent tax refunds totaling more than $3 million. The court ordered Angulo and Zuloaga to pay to the U.S. Treasury the funds they received from customers who paid them a percentage of the tax refunds received through the scheme. The court also ordered the defendants to provide the government with a list of all persons for whom they prepared federal tax returns or forms since 2008. The Underwriter’s Insider

Continued from Page 10

ZALMA Airborne Express as an additional insured to the Cameron Mutual policy after the Dodson accident. After litigating the case for about two years, long after Bevan was made aware that the claim was baseless, when the E & O carrier refused an offer of mediation, Bevan dismissed the action against Appellants. After the case was dismissed, Appellants filed a malicious prosecution action against Dysart Taylor and Bevan. Dysart Taylor and Bevan sought coverage under a legal malpractice insurance policy they had with The Bar Plan. The Bar Plan offered to defend the case under a reservation of rights but noted that the policy excluded coverage for malicious and intentionally wrongful acts.

their defense unconditionally, The Bar Plan declined, and Dysart Taylor and Bevan assumed their own defense. Shortly thereafter, Dysart Taylor and Bevan entered into a settlement agreement with Appellants. Pursuant to that agreement, Dysart Taylor agreed to confess liability and stipulate damages of $4.5 in exchange for the dismissal of Bevan from the case and an agreement by Appellants to limit execution of the judgment to proceeds that could be obtained from Dysart Taylor’s malpractice insurance policy with The Bar Plan.

Court further finds that the conduct of Dysart Taylor was not dishonest, deliberately fraudulent, criminal, deliberately wrongful, or motivated by actual malice. Rather, the conduct of Dysart Taylor was motivated by legal malice. In other words, Dysart Taylor initiated and continued civil proceedings against the plaintiffs primarily for a purpose other than that of securing the proper adjudication of the claims on which they were based.”

The court then awarded the plaintiffs a total of $4,500,000.00 on that claim. Following an evidentiary hearing, the After that judgment became final, trial court approved the settlement Appellants filed their petition against agreement and entered judgment The Bar Plan in the Circuit Court of in favor of Appellants and against Jackson County seeking equitable Dysart Taylor. garnishment of the policy limits of Dysart Taylor’s legal malpractice The judgment stated: “On the policy. The trial court granted malicious prosecution claims of summary judgment and concluded: “In this case, the parties do not dispute that ‘legal malice’ is the appropriate element The relevant exclusion in applicable to lawyers and Dysart Taylor’s malpractice law firms, and recognized insurance policy states that in Missouri for lawyers the policy does not provide being sued for malicious coverage for any claim prosecution. Where a policy based upon or arising out of: is written for lawyers, and the “Any dishonest, deliberately element of malice applicable fraudulent, criminal, to lawyers is legal malice, malicious or deliberately http://www.zalma.com/zalmabooks.htm it follows that the term wrongful acts or omissions ‘malicious’ as found in the by an Insured; however, the Company will provide a defense plaintiffs against defendant Dysart ‘Exclusions’ section of the policy be for any claim alleging such acts or Taylor Lay Cotter & McMonigle, P.C., defined as legal malice.” omissions by an Insured acting in a judgment is entered in favor of the professional capacity providing Legal plaintiffs and against Dysart Taylor. The By consenting to a judgment for Services . . . but the Company will Court finds that an ordinarily careful malicious prosecution, an intentional not pay any sums the Insured shall lawyer in the position of Dysart Taylor, tort, Dysart’s conduct is also a become legally obligated to pay as after making a reasonable inquiry, deliberately wrongful act. would not have believed the facts Damages for any such Claim.” alleged against the plaintiffs or that When Dysart Taylor and Bevan the underlying judicial proceeding See Zalma Pg 38 demanded that The Bar Plan assume against the plaintiffs was valid. The www.underwritersinsider.com

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TRESKOVICH Hypothetical analysis, academic studies, and slick sales brochures can tell all the stories they want, but if you can’t identify real financial outcomes how do you know whether you are providing any real value to your clients? (If your relationship with clients isn’t long-term enough to measure real results, “clients” probably isn’t the right word to describe the group of people to whom you sell).

real (and perceived) value with the least possible effort. You don’t need expensive, complicated systems or a full-time financial management team to monitor value and effort (but both can be nice to have!). Having a consistent process for recording data is more important than sophisticated analysis software. If you don’t have a customer relationship management system that allows you to track these types

Creekmore Insurance Group is a fullservice life insurance brokerage specializing in complex life cases and impaired risks. Creekmore serves independent agents and financial advisors across the country. Matt is the CFO and oversees advanced case design and underwriting. He can be reached via email Matt@LifeAgents.com or at 800-936-0339. For more information, visit www.LifeAgents. com

“How can I put numbers on this?” This is where rubber meets the road. No matter what part of the financial services industry you work in, measuring the value of your services to clients is critical for optimizing a practice. The actual metrics will vary – a property and casualty firm will use significantly different methods than an investment advisor – but all firms should have some method for monitoring the real value delivered to clients. The same system should be used to measure the real effort required to service each client, so that the highest-value clients can be identified.

Florida Announces Arrests of Tampa Health Insurance Company Executives for Hiding Company’s Insolvency

lorida Chief Financial Officer Jeff Atwater announced today the arrest of Sabiha Haider Khan, 37, and Nazeer Haider Khan, 40, executives of Quality Health Plans, Inc., located in Tampa, for intentionally filing misleading information to the Office of Insurance Regulation to conceal the financial instability of the company and placing policyholders at risk. MORE

Process Improvement Leads to Profit Improvement The best clients are the ones where you deliver maximum 34

of metrics, don’t despair! Find a management consultant who is experienced with free, open-source software and who is willing to teach you how to use it to monitor and manage your own productivity. Using real numbers to identify the best clients in a book of business gives you a model for the kinds of clients you want to attract. With this in hand, you will be in a great position to refine your marketing and prospecting!

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FLORIDA TELLS FORCED-PLACE INSURER PRAETORIAN: 2.2% RATE DECREASE WAY TOO SMALL - TRY 35-36% IF YOU WANT APPROVAL

ALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today announced the Office of Insurance Regulation (Office) has issued a Notice of Intent to Disapprove the May 4, 2012 rate filing submitted by Praetorian Insurance Company (Praetorian).

The key reasons cited in the Notice of Intent to Disapprove broadly references the following as not being in compliance with Section 627.062, Florida Statutes: excessive rates, insufficient support for the loss trend selected, and indicated expenses and reinsurance cost reflecting allocation of costs to Florida were excessive relative to services rendered.

Praetorian requested a proposed statewide decrease of 2.2 percent in the rate filing for its property collateral protection program, also known as The decision to deny the rate “lender-placed” or “force-placed” decrease followed a public hearing in insurance. This which a panel of form of insurance representatives “Praetorian did not is imposed by from the Office provide appropriate lenders on those questioned support for the rate who fail to secure various aspects decrease it requested.” homeowners’ of the rate filing. insurance for Video of the their property as hearing and required by the mortgage or lending testimony provided by presenters document. are available on the Office’s website. Praetorian has 21 days, if it chooses, The Office’s indications demonstrated to petition the Office for an a reduction of 35-36% was required. administrative hearing or Praetorian may submit a new filing to the Office. "The Praetorian filing was meticulously reviewed and all testimony given As the President of the National by company representatives Association of Insurance at the July 3rd public hearing Commissioners (NAIC), Commissioner carefully considered," said Deputy McCarty attended a hearing on Commissioner of Property and lender-placed insurance in Atlanta, GA Casualty, Richard Koon. "Praetorian on August 9th to hear testimony from did not provide appropriate support insurers and other interested parties for the rate decrease it requested." about this issue. www.underwritersinsider.com

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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.

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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.

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Continued From Page 9

KIM KOMANDO and text a lot, like to use cellularcapable tablets and don’t burn up excessive amounts of data. Singles who are heavy data users might want to consider sticking with a traditional plan, switching to prepaid or switching to an unlimited data plan at Sprint or T-Mobile.

Finally, don’t guess too low. Verizon and AT&T will charge you $15/GB for going over your allowance. That can blow up the monthly family budget pretty quickly! Copyright 2012, WestStar TalkRadio Network. All rights reserved. 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. Important link: http://www.komando. com/dataplan-calculator/

Everyone’s needs are different. That’s why I made this handy calculator to help you decide which shared data plan is best for you. Just enter the number of devices you have and it tells you the monthly cost for each data plan on both carriers. Before you choose a level, it’s essential that you have an accurate picture of how much data your family uses per month. Log in to your online account and examine your usage over the past six months and then use that as your guide. That is, unless you’ve made a major change recently or are planning to. For instance, have you recently upgraded to faster 4G LTE smartphones and/or tablets recently, or do you plan to now? If so, you are likely to consume more data in the future than your sixmonth check will indicate. Verizon and AT&T both have usage calculators on their websites that will help you visualize how much data it takes to stream video and accomplish other Internet tasks that may be relatively new activities for you. www.underwritersinsider.com

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ZALMA ANALYSIS Appellants’ claim against Dysart Taylor was for malicious prosecution. Generally, a plaintiff may recover damages resulting from the initiation of a civil action where such action was prosecuted maliciously and without probable cause or was an abuse of process. Malice in law imputes malice from the mere intentional doing of a wrongful act to the injury of another without legal justification or excuse. The malice required to support a malicious prosecution action against an attorney differs from the malice required on the part of a non-attorney defendant. The test to establish malice on the part of an attorney depends on whether the attorney acted upon a statement of facts provided by the client, or whether the attorney obtained the information acted upon. Where an attorney acts after his or her own investigation, however, malice is proven by demonstrating that (1) the attorney knew that there was no probable cause for the prosecution of the action and (2) the attorney’s primary purpose for initiating or continuing the proceedings was something other than securing a proper adjudication of the claim. To support a claim of malicious prosecution against an attorney where the attorney has performed his or her own investigation, the plaintiff must prove that the attorney pursued a lawsuit, knowing it to be unsupported by probable cause, for a primary 38

purpose other than securing a proper adjudication of the claim. The conduct of the lawyers was “deliberately wrongful, as well as a legally malicious, act.” If one intentionally does a wrongful act and knows at the time that it is wrongful, he does it wantonly and with a bad motive. The Missouri Court of Appeal found unambiguous the “deliberately wrongful acts” exclusion. As a matter of law, therefore, Appellants’ claim of malicious prosecution was clearly excluded under the policy language. The undisputed facts reflect that, at all relevant times, Bevan, the attorney in charge, was a shareholder and director of Dysart Taylor and was the supervisory attorney in charge of the case filed against Appellants. Accordingly, his knowledge of the facts and the nature of his actions in Cameron Mutual’s lawsuit against Appellants must be imputed to the corporation. The judgment was affirmed.

ZALMA OPINION Had the Appellants not been blinded by the potential of suing an insurer for the tort of bad faith they could have continued with their malicious prosecution suit against the lawyers and obtained a verdict equal to or greater than the $4.5 million settlement. They could then execute on the assets of Bevan and the law firm and could have collected a good part of the judgment. By agreeing to the settlement the lawyers were not punished for their wrongful acts, the Appellants get nothing for their effort and the insurer has no obligation to indemnify the lawyers. The lawyers got away with malicious prosecution for the small cost of entering into the settlement where nothing was paid by the lawyers to the Appellants.

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AIA COMMENTS ON U.S. AND GLOBAL REINSURANCE MARKET

ASHINGTON, D.C., August 28, 2012 – The American Insurance Association (AIA) filed comments in response to the Federal Insurance Office’s (FIO) notice in the June 27, 2012 Federal Register entitled “Public Input on the Report to Congress on the U.S. and Global Reinsurance Market.” AIA’s diverse membership writes insurance and reinsurance in both the U.S. and abroad. AIA’s comments emphasize the importance of reinsurance to the primary insurance market and our interest in making certain that the U.S. regulatory system does not lead to market disruption or disadvantage U.S. competiveness abroad. AIA’s comments also point out a number of international trade barriers for reinsurance that affect its members. “As regulated insurance companies, AIA’s members have a substantial stake in maintaining an effective and efficient insurance regulatory system,” said Steven Bennett, associate general counsel for AIA. “We continue to emphasize that the domestic and international regulatory systems ought to foster the growth of vibrant private, competitive insurance markets.” Reinsurance plays a critical role in maintaining financial stability and decreasing concentration of risk for The Underwriter’s Insider

insurance companies. A recent report on reinsurance and financial stability by the International Association of Insurance Supervisors (IAIS) stated that reinsurance can be both a source of stability during crisis and riskdiversification for primary insurers. The IAIS report also concluded that traditional reinsurance and the bulk of alternative risk transfer mechanisms utilized by reinsurers are not sources of systemic risk and do not have the potential to be a threat. “The current reinsurance regulatory environment correctly allows for market competition rather than government price controls,” said Bennett. “Pricing is allowed to ebb and flow with reinsurance capacity. This strong market would be weakened if the states were to adopt the same government price and product controls that apply to primary property-casualty insurance.” AIA’s comments also point out a number of international trade barriers for reinsurance that affect its members, including restrictions in Argentina and Brazil, and the advent of so-called Part VII transfers in the U.K and elsewhere (a development that has made its way into some state bills). AIA strongly encourages the FIO to work with its counterparts in the IAIS and related supervisory associations to encourage the respective government entities to reconsider these misguided regulations. “Overtly protectionist reinsurance regulations adopted by Argentina and Brazil unfairly restrict trade,” said Bennett. “Requiring foreign insurers to cede high percentages of risk with local insurers leads to a concentration of too much risk within one nation’s economy.” www.underwritersinsider.com

AIA TESTIFIES AGAINST CALIFORNIA BILL THAT WILL INFLATE MEDICAL DAMAGES - COULD HAVE RIPPLE EFFECTS IN OTHER STATES

ACRAMENTO, CA, August 29, 2012 – Steve Suchil, Western Region assistant vice president for the American Insurance Association (AIA), testified against SB 1528, legislation that will lead to inflated medical damages costs should it be adopted. SB 1528 departs from current tort law and would allow plaintiffs in capitated health care plans to seek medical damages in excess of the amount actually paid or incurred to providers by substituting “reasonable value.”

in a tort action is the amount actually paid for medical care which is often pre-negotiated at a lower rate, rather than the amount billed. As the bill was amended, not only will it change the measure of damages with respect to plaintiffs covered by capitated healthcare service plans, it brings ambiguity and has the potential of being interpreted to adversely affect the Howell decision.

AIA Calls for Competitive Markets

Commissioners’ (NAIC) Summer National Meeting scheduled for August 9 – 14 in Atlanta, Georgia.

he American Insurance Association (AIA) will call for efficient industry regulation and encourage competitive markets both domestically and internationally at the National Association of Insurance

As international regulatory issues will be a major focus of the meeting, AIA will strongly emphasize the need for non-duplicative guidelines and regulation.

“SB 1528 is unjustified, not needed, will have serious unforeseen consequences and could impact the “SB 1528 will needlessly drive up costs California Supreme Court’s recent for many while benefitting only a few,” decision,” said Suchil. “The Legislature said Suchil. “This bill is contrary to should allow the clock to run out long-standing law and would permit on this bill rather than ram through plaintiffs and their attorneys to be significant legislation with little time for awarded damages in excess of the thoughtful deliberation.” actual costs incurred for medical care.” SB 1528 passed out of the Assembly The purpose of SB 1528 all along Judiciary Committee yesterday and has been to set aside the California now heads to the Assembly floor Supreme Court’s recent Howell v. for consideration. The California Hamilton Meats decision which Legislature is scheduled to adjourn its affirmed the long-standing doctrine session on Aug. 31. that the measure of medical damages

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BOLT INSURANCE AGENCY ANNOUNCES THE ESTABLISHMENT OF STRONG PRESENCE IN FLORIDA TO SERVE INSURANCE CONSUMERS IN THE REGION

BOLT appoints leadership team and acquires two Florida-based insurance agenices

arasota, FL – (August 20, 2012) – Business Owners Liability Team (BOLT Insurance Agency), a leading online insurance agency that protects small business owners, and now the personal lines consumer, announced that it is opening a regional office in Sarasota, Florida.

“We are excited to establish a physical agency presence in Florida to focus on the unique needs of Florida’s insurance consumer and to build the vital relationships needed with the regional insurance carriers that operate there,” said Robert Rizzo, the Regional Director for BOLT Florida.

In support of BOLT’s strategy to better serve the needs of insurance consumers in Florida and the surrounding region, the company appointed insurance industry veteran Robert Rizzo as Regional Director and has acquired the strategic assets of two Florida-based insurance agencies, PFG Insurance Agency and Florida Direct Insurance Agency.

“With the acquisitions of PFG Insurance Agency and Florida Direct Insurance Agency we have the opportunity to advance the strong carrier relationships established by the two firms, and retain key industry veterans that have served customers in this region for many years,” said Mr. Rizzo.

Using BOLT Insurance (www. BoltInsurance.com), small business owners have access to top markets and carriers online, with immediate quotes and expertise consultation. The company’s proven Web-based technology collects all underwriting information required by top-line carriers, and allows business owners to view proposals online within minutes.

Both acquisitions immediately strengthen BOLT’s presence in the overall Florida insurance market, while Flordia Direct also gives BOLT an important foothold in the workers’ compensation insurance market.

Robert Rizzo is the new Regional Director for BOLT Florida. Robert will manage day to day operations in the State as well as lead the company’s Florida acquisition strategy. Prior to joining BOLT, Robert had operated insurance businesses in Florida and

BOLT’s exclusive focus on small business and the strength of its technology platform, processes and team of experts combine to deliver a unique “high tech/high touch” approach to serving the very specific needs of small business owners.

PEW RESEARCH PREDICTS U.S. MUSLIM POPULATION TO DOUBLE BY 2030 40

Ohio. He also has prior experience in Small Business Banking, Commercial Real Estate and Mortgage Banking. Robert received his undergraduate degree from West Virginia University and his MBA from Bowling Green State University.

Click on Chart to Read Entire Report

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N. CAROLINA ANNOUNCES ARRESTS OF FOUR INDIVIDUALS ACCUSED OF PARTICIPATING IN A $5.3 MILLION INSURANCE EMBEZZLEMENT SCHEME

ALEIGH -Insurance Commissioner Wayne Goodwin today announced the arrests of four individuals accused of participating in an embezzlement scheme involving $5.3 million. Edward R. Steed, 67, of 109Wind Dance Lane, Swansboro, is charged with: Obtaining Property by False Pretense (7 counts) Embezzlement (7 counts) Larceny by Employee (7 counts) Corporate Malfeasance (7 counts) Felony Conspiracy (20 counts) Marvin Lyle Quinn, 55, of 120 Cassedale Drive, Goldsboro, is charged with: Obtaining Property by False Pretense (7 counts) Embezzlement (7 counts) Larceny by Employee (7 counts) Corporate Malfeasance (7 counts) Felony Conspiracy (7 counts) Edward Earl Waters, 61, of 610 Walston Ave., Kinston, is charged with: Obtaining Property by False Pretense (7 counts) Embezzlement (7 counts) Larceny by Employee (7 counts) Corporate Malfeasance (7 counts) Felony Conspiracy (7 counts) Franklin R. Steed, 65, of 453 Flat Swamp Lake Road, Denton, is charged with: Obtaining Property by False Pretense (6 counts) Embezzlement (6 counts) Larceny by Employee (6 counts) Corporate Malfeasance (6 counts) www.underwritersinsider.com

Felony Conspiracy (6 counts) The North Carolina Department of Insurance opened a criminal investigation in November 2011 after officials from Discovery Insurance in Kinston notified the department of financial discrepancies in the company’s claims department.

Waters was arrested in Lenoir County and Franklin Steed was arrested in Davidson County. Quinn was arrested in Lenoir County on Aug. 29. Edward Steed’s bond was set at $2.5 million; Waters, Quinn and Franklin Steed were each placed under a $1 million bond.

Edward Steed, a former employee The Department of Insurance employs of Discovery 20 sworn state Insurance, is law enforcement accused of officers dedicated fraudulently using to investigating and company claim prosecuting claims funds to write of insurance and bail checks to fictitious bonding fraud. businesses owned by Quinn and "Fighting insurance Waters. Franklin fraud is one of Steed is accused my top priorities. of receiving and Eliminating fraud, cashing checks waste and abuse from Discovery in our insurance Insurance that marketplace helps NC Ins Commissioner Edward Steed had keep rates low for Wayne Goodwin allegedly made North Carolinians," out to names of said Insurance fictitious individuals. The men are Commissioner Wayne Goodwin. "I am accused of conspiring to split the very proud of the efforts and successes embezzled funds. of the Department of Insurance’s criminal investigators." After reviewing checks written from 2005 to 2011, investigators allege Since Goodwin took office in 2009, that the scheme resulted in more criminal investigators have received than $5.3 million embezzled from the more than 14,000 complaints, company. Discovery Insurance has resulting in more than 600 arrests, 333 been cooperative in the investigation. criminal convictions and more than 110 pending court cases. These efforts On Aug. 28, a Lenoir County grand have delivered more than $48.5 jury indicted the four men; Edward million in restitution and recoveries Steed was arrested in Carteret County, for victims.

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