The Underwriter's Insider 2011 Issue 5 by The Underwriter's Insider

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Features

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7 10 Inside Track 12 Insider Advisor 13 14 Classifieds 15 16 Say What? 18 Back Issues 20 Advertising 20 Kim Komando

News Florida Appoints Consumer Advocate “Watchdog” Barry Zalma - Fail to Read Policy Suffer The Consequences Florida Calls for Review of Check Cashing Services Up to 4.3 Billion Barrels of Oil Assessed in Bakken Foundation Matt Treskovich - 5 Great Reasons to Add Life Insurance! N.C. Agent Arrested for Alleged Securities Scam NASA Concludes Attempts to Contact Mars Rover Spirit Larry Bailin To Keynote at TenCon 2011 in Orlando Florida Makes 2 Arrests for Staged Accidents in Tampa Insurance Softball Tournament Scores for New York Children Table of Contents Continued...

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News 20 21 21 22 22 22 34 35 35

Brownyard Launches a New Landscaper Program All Risks Forms Joint Venture With Avondale Ins Associates Chris Siegel Joins MacDuff Underwriters Florida Recovers Nearly $12 Million So Far in 2011 AIA Comments on House Passage of NFIP Reform AIA on Reauthorization of NCOIL Model Affecting P&C Insurors Georgia Announces $6 Million + in Insurance Claims Recovered Florida OIR Statement on Citizenâ&#x20AC;&#x2122;s Rate Filing Florida Re-Launches Popular HO Comparision Rate Site

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Sponsors 4 6 5 7 8 11 12 15 17 17 18 19 23 24 28 36

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

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ATWATER APPOINTS WATCHDOG TO SERVE AS FLORIDA’S INSURANCE CONSUMER ADVOCATE

ALLAHASSEE—Chief Financial Officer Jeff Atwater today announced the appointment of attorney and insurance watchdog Robin Westcott to serve as Florida’s Insurance Consumer Advocate. CFO Atwater signaled that Westcott’s vast insurance knowledge as well as her career-long experience

safeguarding Florida’s consumers will be a tremendous asset to the insurance-buying public. Over the last several years, Westcott has repeatedly called on the insurance industry to hand over data on various insurance products important to consumers, including auto insurance and sinkhole coverage, and demanded accountability from insurance companies charging excessive fees for servicing policyholders through affiliated companies.

Tampa Position Wanted -Commercial Producer in Training Recent FSU Graduate (5/11 Marketing Major) seeks career-level-position as Commercial Producer in Training with a Tampa Property & Casualty agency or MGA where I can have the opportuity to earn my 2-20 General Lines Agent’s License while learning the business of commercial property & casualty insurance. Ambitous, focused, hard-working, fast learner. Please email me for a resume: zmanera@gmail. com Westcott said her first goal is to address cost drivers hurting Florida’s consumers who are paying escalating auto and property insurance rates.

“Robin will be an ardent, outspoken and persistent Westcott began her career in 1993 with the Florida Department of Insurance, Division advocate of Rehabilitation for Florida’s and Liquidation. insurance She served with the consumers,” department until 2001, said CFO when she entered Atwater. “She private practice. is committed Westcott returned to to holding the public sector in insurance 2002 with the Florida companies Agency for Workforce accountable Innovation, where she and to served as Assistant ensuring General Counsel and consumers Counsel to the Florida get exactly Partnership for School what they Readiness. In 2004, she pay for and Watchdog Robin Westcott returned to the Office of are protected Insurance Regulation, from fraud and abuse. She has most recently serving as the Acting Deputy seen firsthand the tactics used Commissioner of Property and Casualty. to game the system and simply won’t stand for it.” Westcott will also continue to serve as the “I’m honored that CFO Atwater Executive Director of the Medicaid and Public has given me the opportunity to Assistance Fraud Strike Force. continue to advocate for Florida’s insurance consumers—a passion I have dedicated my career to,” said Westcott. “I am excited and committed to ensuring Florida’s consumers have the best products at the most competitive prices.” www.underwritersinsider.com

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See Also: Consumer Advocates Should They Be Funded by Taxpayer Dollars? (An Insider OP/ED)

CONTENTS 2011 • Issue 5

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

Ron Manera Editor/Publisher

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UNBELIEVABLE SOLUTIONS TO COMMON TECH PROBLEMS Or How Uncooked Rice Saved My Cell Phone... By Kim Komando

ow could you use rice or your freezer to rescue your digital life? Believe it or not, these are little-known staples in your friendly technical support person’s bag of tricks. Now they can be yours. Dropping a cell phone in the toilet is more common than you’d think. Fortunately, you can rescue a wet cell phone. But you have to act quickly. Corrosion moves fast. So first thing (after fishing the phone out of the toilet, which I won’t get into), remove the battery, if possible. Pat it dry and set it aside. Pat the cell phone dry, too. Also, remove the sim card, if your phone has one. Then, immerse the wet cell

phone in a container of uncooked rice overnight. Rotate the phone every hour until bedtime. You want to be sure that any water in the phone has an escape route. You could also put the wet cell phone in an airtight bag with silica packs. Those are the things that protect goods from moisture. Like rice, silica absorbs moisture. You probably could find silica packs at camera stores. Fast action is imperative when you’re dealing with a wet cell phone. Get the phone out of the toilet quickly. This is no time to be squeamish. The longer it is there, the more likely water will penetrate it. Better yet, don’t take your cell phone to the bathroom. Sometimes, when you start your computer, you might get an unpleasant sound akin to a cat squealing. Clicking a n d

grinding are also pretty bad sounds. I hate to be the bearer of bad news. By all likelihood, your hard drive is staggering toward the grave and taking your data with it. It didn’t spin up fast enough to start. And perhaps there is something wrong with the drive’s components. Often, you can rescue the situation temporarily by rebooting the computer. But if the hard drive is failing, don’t dillydally. If you don’t have a backup regimen, develop one, fast. Send your data to another computer if you’re on a network. Save it on a bunch of DVDs. Use an online backup service. Now, the following may sound like a very strange recommendation and works for all but solid state drives. If a hard drive is dead, take it out of the computer, seal it in a plastic bag and put it in a freezer overnight. Sometimes the cold causes the metal to shrink enough to allow the drive’s head to work. When you reinstall the hard drive, move your data to a new hard drive quickly. Once it warms up, any benefit from the cold will be gone. I once told a guy to do this who called my national radio show with a bum hard drive. Afterwards, he didn’t say a word until I told him that I was not joking. A few days later, he sent me a thank you note. He was able to get the data off the drive before it croaked for good.

Copyright 2011, 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 or find the station nearest you, visit: http://www.komando.com/ listen. To subscribe to Kim’s free e-mail newsletters, sign-up at: h t t p : / / w w w. ko m a n d o . c o m / newsletters.

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FAIL TO READ A POLICY AND SUFFER THE CONSEQUENCES

By Barry Zalma, Esq. t Is Necessary to Read the Insurance Policy

dealing, breach of contract, and intentional and negligent infliction of emotional distress. Defendants moved to compel arbitration based on an arbitration provision in the insurance contract between the parties.

Many, if not most, insurance consumers, according to several studies and my experience, buy insurance based on price rather than on the terms or conditions of the policy. Doing so may save money for the insured at the time of acquisition

The trial court denied the motion, ruling that the arbitration provision was unenforceable because it was not disclosed in the application for the policy.

Join Barry Zalma’s new Blog:

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of the policy only to cost the insured much when it is time to present a claim. When an arbitration provision, or any other provision of an insurance policy, is clearly stated in the policy no provision of law requires that the insurer also disclose the provision in an application for insurance. It is the obligation of every insured to read their policy or to retain the services of a risk manager or insurance consultant to read the policy wording before acquiring the policy. Insurance is a contract. An insurance policy limitation is enforceable if it is clear and conspicuous. A policy provision is conspicuous if it is positioned and printed in a form which adequately attracts the reader‘s attention to the limitation. California applies the objective theory of contract law. Claiming ignorance of an insurance policy provision, if allowed to avoid a valid policy condition, would allow any party to a contract to avoid a disadvantageous provision by claiming that they were not aware it existed and would evicerate the terms of the policy contract. Failure to read an insurance policy provision is, and should be, no excuse. A clear and conspicuous contract term, whether read or not, will be enforced. 10

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.

Recent Decision In Mission Viejo Emergency Medical Associates et al., v. Beta Healthcare Group et al., (Super. Ct. No. 30-201000342845) (Cal.App. Dist.4 06/29/2011) Plaintiffs Mission Viejo Emergency Medical Associates (MVEMA) and 12 physicians who are partners in MVEMA, sued defendants Health Providers Insurance Reciprocal, RRG (HealthPro) and Beta Healthcare Group (Beta) for breach of the duty of good faith and fair

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Beginning in January 2002 and renewing in 2003 and 2004, HealthPro issued professional liability insurance policies to plaintiffs. These policies were apparently obtained through a broker, James Murphy of Seaport Insurance Services. In all three policies, the table of contents indicates a section of the policy entitled Arbitration of Disputes with Us.

The 2004 provision read, in part, as follows:

ARBITRATION OF DISPUTES WITH US. Any dispute arising out of this policy will be submitted to and settled by arbitration in San Francisco, California. The arbitration and discovery process will be governed by the California Arbitration Act, Section 1280, et seq. of the Code of Civil Procedure, except to the extent that it is inconsistent with this Section. You and We waive the right to court remedies, including a jury trial.

See Read The Policy Pg 33 The Underwriter’s Insider

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FLORIDA CALLS FOR REVIEW OF CHECK CASHING SERVICES AIDING IN WORKERS’ COMP FRAUD

ALLAHASSEE—At a Cabinet meeting today, Florida Chief Financial Officer Jeff Atwater announced the creation of a working group to review the practices of certain bad actors in the check cashing services industry aiding in workers’ compensation premium fraud, which is putting pressure on rates and crippling the business community. The working group will include representatives from the CFO’s Division of Insurance Fraud as well as the Office of Financial Regulation, the Attorney General’s Office, and the construction and money services industries. “This growing crime trend is diverting more than a billion dollars from Florida’s economy,” said CFO Atwater, whose office oversees the Divisions of Insurance Fraud and Workers Compensation. “We are committed to dismantling this scheme and putting these cheats behind bars. Bringing together stakeholders will take us one step closer to the solutions we need to expedite jail time for these con artists.” According to Atwater, this latest workers’ compensation premium scheme is highly organized and orchestrated by individuals who know the construction and subcontracting industry and are intent on evading payment of workers’ compensation premiums. Florida law generally requires every employee in the construction industry to be covered by workers’ compensation insurance. The effect of this scheme is that workers are left unprotected and honest employers suffer from an uneven playing field because they are consistently outbid on construction projects by those who skirt premium requirements. “These organized schemes are disastrous to honest businesses that pay their workers' compensation premiums and protect their employees on-the-job,” said Attorney General Bondi. “Not only is this fraudulent activity costly to the insurance

industry, but also it leaves individuals without protection. We look forward to collaborating with the work group to pursue and prosecute these con artists.”

Financial Services to date has awarded almost $250,000 to approximately 40 citizens as part of its Anti-Fraud Reward Program.

John Askins, Director of the Division of Insurance Fraud, and Major Geoffrey Branch, Bureau Chief of the Division of Workers’ Compensation Fraud, testified on how the scheme works and how it leads to the avoidance of premiums.

Chief Financial Officer Jeff Atwater, a statewide elected official and officer of the Florida Cabinet, oversees the Department of Financial Services including the Division of Insurance Fraud. CFO Atwater’s priorities include fighting financial fraud, abuse and waste in government, reducing government spending and regulatory burdens that chase away businesses, and providing transparency and accountability in spending.

Organized criminal enterprises set up “shell” or fake companies and obtain a minimal workers’ compensation insurance policy. Uninsured contractors pay a fee to use the shell policy, enabling them to avoid purchasing required workers compensation insurance. The uninsured contractor presents a copy of the shell certificate of insurance to a general contractor, and often gets the job because he is able to underbid honest contractors by removing the cost of workers’ compensation insurance from his expenses. The scheme uses money service businesses to cash the checks that are made out to the shell company. Atwater said the working group will develop recommendations to help stop hundreds of millions of dollars that are being diverted from Florida’s economy. Recommendations from the work group will be presented to the Governor and Cabinet in late fall. If you have any information regarding suspected insurance fraud call 1-800-378-0445. Individuals who provide tips can remain anonymous and are eligible for a reward of up to $25,000 for information that directly leads to an arrest and conviction in an insurance fraud scheme. The Department of

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3 TO 4.3 BILLION BARRELS OF TECHNICALLY RECOVERABLE OIL ASSESSED IN NORTH DAKOTA AND MONTANAâ&#x20AC;&#x2122;S BAKKEN FORMATIONâ&#x20AC;&#x201D;25 TIMES MORE THAN 1995 ESTIMATE

echnically recoverable oil resources are those producible using currently available technology and industry practices. USGS is the only provider of publicly available estimates of undiscovered technically recoverable oil and gas resources. New geologic models applied to the Bakken Formation, advances in drilling and production technologies, and recent oil discoveries have resulted in these substantially larger technically recoverable oil volumes. About 105 million barrels of oil were produced from the Bakken Formation by the end of 2007. The USGS Bakken study was undertaken as part of a nationwide project assessing domestic petroleum basins using standardized methodology and protocol as required by the Energy Policy and Conservation Act of 2000. The Bakken Formation estimate is larger than all other current USGS oil assessments of the lower 48 states and is the largest "continuous" oil accumulation ever assessed by the USGS. A "continuous" oil accumulation means that the oil resource is dispersed throughout a geologic formation rather than existing as discrete, localized occurrences. The next largest "continuous" oil accumulation in the U.S. is in the Austin Chalk of Texas and Louisiana, with an undiscovered estimate of 1.0 billions of barrels of technically recoverable oil. "It is clear that the Bakken formation www.underwritersinsider.com

contains a significant amount of oil the question is how much of that oil is recoverable using today's technology?" said Senator Byron Dorgan, of North Dakota. "To get an answer to this important question, I requested that the U.S. Geological Survey complete this study, which will provide an upto-date estimate on the amount of technically recoverable oil resources in the Bakken Shale formation." The USGS estimate of 3.0 to 4.3 billion barrels of technically recoverable oil has a mean value of 3.65 billion barrels. Scientists conducted detailed studies in stratigraphy and structural geology and the modeling of petroleum geochemistry. They also combined their findings with historical exploration and production analyses to determine the undiscovered, technically recoverable oil estimates. USGS worked with the North Dakota Geological Survey, a number of petroleum industry companies and independents, universities and other experts to develop a geological understanding of the Bakken Formation. These groups provided critical information and feedback on geological and engineering concepts important to building the geologic and production models used in the assessment. Five continuous assessment units (AU) were identified and assessed in the Bakken Formation of North Dakota and Montana - the Elm Coulee-Billings Nose AU, the Central Basin-Poplar Dome AU,

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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 the Nesson-Little Knife Structural AU, the Eastern Expulsion Threshold AU, and the Northwest Expulsion Threshold AU. At the time of the assessment, a limited number of wells have produced oil from three of the assessments units in Central Basin-Poplar Dome, Eastern Expulsion Threshold, and Northwest Expulsion Threshold. The Elm Coulee oil field in Montana, discovered in 2000, has produced about 65 million barrels of the 105 million barrels of oil recovered from the Bakken Formation. Results of the assessment can be found at http://energy.usgs.gov. For a podcast interview with scientists about the Bakken Formation, listen to episode 38 of CoreCast at http://www. usgs.gov/corecast/. 13

IF YOUR P&C BUSINESS IS DRYING UP... WE HAVE 5 GREAT REASONS TO ADD LIFE INSURANCE By John A. Creekmore, CFP®, CLU, ChFC, CEBS, and, Matthew A. Treskovich, MBA, CMA, CLU, ChFC, FLMI

1. Better retention means a better bottom line for your agency. Agencies that cross sell enjoy significantly better retention rates. Why would you allow another agent to come into one of your clients homes and sell them something you should have sold them? It's all about service, keeping in touch with your clients and looking out for their needs and changing circumstances. After 30 years in this business we still see agents who forget the three essential rules for success: “Service, Service, Service”.

3. It's still risk management. You're in the risk-management business. You're already protecting their homes, businesses and vehicles; shouldn't you be protecting their dreams as well? It never hurts to ask. Have you ever been asked "do you want cheese with that?" Ask them if you can make a copy of their current life insurance policy because you'd like to review it and see if you can save them money. Ask them if they have had a change of health since they purchased the policy. Then get a life insurance professional to review the policy and compare the old rate with newer rates.

4. Niche markets make easy sales.

If any of your clients smoker cigars or pipes, chew, or dip, they are probably paying smoker rates 2. Cross-selling for their life insurance. Matthew A. Treskovich That means they are to existing clients paying about 30% more for their life is easier than prospecting for insurance. There is an A+ life insurance company that will issue non-smoker rates new ones. for cigar and pipe smokers, as well as Recruiting new clients is harder than ever, chewers and dippers. This could result in and controlling attrition is a full-time job several thousand of dollars in savings to for some agents. It's more efficient to your client, and make you look like a hero. generate new sales within your current book of business. If a client has purchased insurance from you in the past, he/she is more likely to buy from you again, rather than a stranger. Your client is more likely to answer your call or return your call than that of a stranger. 14

5. It's never been easier to add life insurance to your agency. We offer free web-based quoting tools for agents that make it truly painless to add life insurance to your practice and offer

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it on your web site. Mobile tools are also available, allowing you to quote cases from your smart phone, iPad, or Android device.

The Bottom Line Your clients are buying life insurance. If not selling it to them, your competition is and you are leaving money on the table. A good way to promote yourself and agency is to insert with your premium stuffers a simple question. "Do you need life insurance? Call this agency for a free quote and comparison. Or go to our website and run your own quote." And don't forget, with life insurance, claims are rare and rates are very stable!

BROWN & BROWN SETTLES SUIT AGAINST FORMER EMPLOYEES

AYTONA BEACH, FL and TAMPA, FL--(Marketwire - Jul 22, 2011) Brown & Brown, Inc. (NYSE: BRO), today announced the settlement of its lawsuit against former employees, Jim W. Henderson, Thomas E. Riley, Eric A. Anderson, Stanley K. Kinnett, II, Paul A. Vredenburg, and their new company, AssuredPartners, Inc. (the "Defendants"). "We are satisfied with the settlement in this litigation, and we believe this matter was resolved appropriately within the judicial system," said J. Powell Brown, President and Chief Executive Officer of Brown & Brown, Inc. The amount of money to be paid by the Defendants pursuant to the settlement is confidential, but the parties agreed to an order to be entered by the court, which includes certain restrictions on the Defendants, the nature and scope of which are set forth in the Agreed Order (See Attached Agreed Order issued by the Court on July 20, 2011). The Underwriter’s Insider

FORMER N. CAROLINA AGENT ARRESTED FOR ALLEGED SECURITIES SCAM

ALEIGH -Insurance Commissioner Wayne Goodwin today announced the arrest of Roland Dee Branch, 69, of 718 Pecan Ridge Circle, Kernersville; he is charged with 10 counts of obtaining property by false pretense. Department of Insurance criminal investigators allege that Branch misled a Davidson County couple to invest in a non-existent annuities investment plan. The

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Commissioner Wayne Goodwin

couple gave Branch an undisclosed amount of funds over a four-year period, and investigators allege that Branch failed to invest any of the retirement funds for the couple. The Department of Insurance C r i m i n a l I nvestigations Division began investigating the matter in

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2010 after the alleged victims filed a complaint with the Department. Branch was arrested on Aug. 3 in Davidson County, placed under a $5,000 secured bond and is scheduled to appear in Davidson County Court on Aug. 23. Branch surrendered his insurance license to the Department of Insurance in April 2010. If you suspect that you are a potential victim of Branch, or of a similar financial scheme, you are encouraged to contact the Department of Insurance Criminal Investigations Division at 919-807-6840. The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. In 2010, these criminal investigators successfully closed 402 cases and made 126 arrests, leading to 88 criminal convictions. These resulted in more than $21.1 million in restitution and recoveries-more than double the dollar amount from the previous year and a record for NCDOI. 15

NASA CONCLUDES ATTEMPTS TO CONTACT MARS ROVER SPIRIT EXPLORATION ROVER

ASA is ending attempts to regain contact with the long-lived Mars Exploration Rover Spirit, which last communicated on March 22, 2010. A transmission that ended on Wednesday, May 25, will be the last in a series of attempts. Extensive communications activities during the past 10 months also have explored the possibility that Spirit might reawaken as the solar energy available to it increased after a stressful Martian winter without much sunlight. With inadequate energy to run its survival heaters, the rover likely experienced colder internal temperatures last year than in any of its prior six years on Mars. Many critical components and connections would have been susceptible to damage from the cold.

"We're now transitioning assets to support the November launch of our next generation Mars rover, Curiosity," said Dave Lavery, NASAâ&#x20AC;&#x2122;s program executive for solar

system exploration. "However, while we no longer believe there is a realistic probability of hearing from Spirit, the Deep Space Network may occasionally listen for any faint signals when the schedule permits."

Engineers' assessments in recent months have shown a very low probability for recovering communications with Spirit. Communications assets that have been used by the Spirit mission in the past, including NASA's Deep Space Network of antennas on Earth, plus two NASA Mars orbiters that can relay communications, now are needed to prepare for NASA's Mars Science Laboratory mission. MSL is scheduled to launch later this year. 16

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INTERNET, MARKETING EXPERT LARRY BAILIN TO KEYNOTE AT TENCON 2011 IN ORLANDO

A half-day of classes, led by ASCnet Chair Brian Bartosh, designed specifically for insurance producers. The practical workshops explore sales pipeline management and the use of agency automation for submissions. A Pathways Series, which highlights ways to improve service, boost sales and increase profits using available technologies and workflows. In addition to a full education agenda, TENCon 2011 will feature an exhibit hall, where members can quickly and easily learn about products and services available from carriers and solution providers to help boost agency and brokerage efficiency and profits.

Also, a number of networking opportunities will allow members to interact with and get ideas from fellow members about how to improve their own operations. For more information, including early-bird and other discounts, go to www.ASCnet.org/ TENCon. About ASCnet: Founded in 1985 and based in Des Plaines, Ill., Applied Systems Client Network, Inc. (ASCnet) is an international association representing more than 80,000 insurance professionals. The organization will provide opportunities for members to achieve this success through advocacy, education and networking. For more information: www.ASCnet.org.

Technology, Education, Networking Event Features More Than 150 Classes

ES PLAINES, IL (August 4, 2011) -- Best-selling author, Internet marketing CEO and social media expert Larry Bailin will deliver the keynote presentation at this year's TENCon -- the annual technology, education and networking event hosted by Applied Systems Client Network (ASCnet) for members and other industry professionals. TENCon runs September 20-23 at the Gaylord Palms Hotel & Convention Center near Orlando. Considered to be one of the foremost experts in the Internet marketing space, Bailin will share his knowledge with TENCon attendees in a presentation titled, "Clicking Ass!â&#x201E;˘ - The New Art of Getting What's Yours... Customers." In the talk, Bailin will examine everything from search engines to social media, websites to videos, blogs to email, and then some! He'll cover what works, what doesn't, and give attendees the tools they need to become "Click Ass" marketers. TENCon attendees will be able to round out their learning through any of the 150-plus sessions being offered this year. Topics range from accounting to office procedures to social media and more. Among this year's notable sessions:

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profitability was further moderated by statemandated wind mitigation credits within the state of Florida.

ecret tapes recorded by Jackie Kennedy just months after the JFK assassination are scheduled to be released shortly - in a deal brokered by Caroline Kennedy with ABC in exchange for the network dropping its plans for airing a drama series about the Kennedy family. The tapes, originally set to be released 50 years after Jackie’s death, were recorded with leading historian Arthur Schlesinger Jr., and reportedly contain some real bombshells, including: Jackie’s belief that V-Pres. LBJ and a cabal of southern businessmen were part of a conspiracy that resulted in the assassination of President Kennedy; that she knew of JFK’s many extra-marital dalliances, considered them superficial “flings” yet retaliated with affairs of her own, with actor William Holden, Fiat founder Gianni Agnelli and others - even including a 19-year old White House Intern. It seems what many Americans regarded as “Camelot,” was actually closer to Plato’s Retreat...

llied American Underwriters (AAU), a subsidiary of USG Holding, announced the launch of a new exclusive pawnbrokers program today. Targeted classifications include the sale of guns, firearms, ammunition, high value collectables, jewelry, and art. This program is available in all states with a $2500 minimum premium. Available coverages include property, casualty, products liability including guns, firearms, and ammunition, hired &non-hired auto, business income/extra expense, inventory (owned and pawned), travel (local & national), exhibitions, money locked safes, show windows, employee dishonesty, auto pawn stock, shipments (air, international, and registered mail), employee benefits liability. Contact Troy Fornof, Director of Branch Operations, tfornof@aauins.com or 724.754.9004.

ccording to a recent PEW Research report, “There is broad public consensus that the budget negotiations of recent weeks can be summed up in words such as ridiculous, disgusting, stupid, and frustrating. Nationwide, 72% describe the recent negotiations in negative terms such as these; while very few offer a positive (2%), or even neutral (11%), assessment. Other frequently used terms include terrible, disappointing, childish, and joke.”

niversal Insurance Holdings, Inc. (the Company or Universal) (NYSE Amex: UVE), a vertically integrated insurance holding company, reported net income of $7.5 million, or $0.19 per diluted share, in the second quarter of 2011, compared to net income of $10.8 million, or $0.27 per diluted share, for the same period in 2010. For the first six months of 2011, the Company reported net income of $21.4 million, or $0.53 per diluted share, compared to $17.7 million, or $0.44 per diluted share, for the same period of 2010. Net income and diluted earnings per share declined approximately 29.9 percent and 29.6 percent, respectively, in the 2011 second quarter compared to the same period last year. Notwithstanding higher net premiums earned, the Company’s profitability decreased primarily due to net unrealized losses on investments and lower net realized gains on investments during the 2011 second quarter. Additionally, the Company’s

ome scientists now believe that the Earth once had two moons - citing archeological data from the moon showing that the far side the dark side that always faces away from Earth has a much more rugged, mountainous terrain and a much thicker crust. The theory is that a smaller moon that once circled the planet collided with the remaining moon early in its history - resulting in the greater mass on one side. The scientists believe the moons collided at about 4,400MPH - resulting in a combined new moon - but not fast enough to have seemlessly melted the two bodies. “This is the slowest possible collision the two massive bodies could have if they fell into each other’s gravity,” explained study co-author Erik Asphaug, at the University of California, Santa Cruz (UCSC). “It’s like a car crash, where you have crumpled bumpers but you don’t melt the cars as they’re colliding,” Asphaug said. “This is the same kind of phenomenon.”

nsurance giant AIG has sued Bank of America Corp for $10 billion, alleging “massive fraud” on mortgage debt - accusing the bank and owned units Countrywide Mortgage and Merrill Lynch of misrepresenting the quality of mortgagees that were ultimately included in securities and placed with investors. Bank of America spokesperson Lawrence Di Rita responded: “AIG recklessly chased high yields and profits throughout the mortgage and structured finance markets. It is the very definition of an informed, seasoned investor, with losses solely attributable to its own excesses and errors. We reject its assertions and allegations.”

enture Programs (www. VenturePrograms.com) announced today that it has added Zurich in North America as a carrier for its resort and hotel program, expanding its capacity with an all-lines product for destination resorts and premier/boutique hotel properties. The hospitality program features the broadest coverage language available to resort and hotel properties nationwide. The program has the flexibility to handle management companies with M&A properties and offers access to loss-sensitive and alternative risk structures. Coverage includes General Liability, Commercial Auto, Liquor Liability, Umbrella and Workers’ Compensation, as well as Property limits to $500 million with the availability of Coastal Property coverage.

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FLORIDA’S DIVISION OF INSURANCE FRAUD MAKES TWO ARRESTS FOR STAGED ACCIDENTS IN TAMPA

ALLAHASSEE—Florida Chief Financial Officer Jeff Atwater today announced the arrest of two people who engaged in insurance fraud by staging an accident, claiming injury and billing an insurance company for procedures they did not receive. Suspects Floribel Figueroa Quiles and Lazaro Hernandez Cabrales were arrested following an investigation of complaints filed with the Division of Insurance Fraud by Assurance America. “It is always great day when we are able to track down one of these fraudsters who, by their actions, cause each and every Floridian to pay more for auto insurance,” said CFO Atwater. “With the support and assistance of consumers and our partners in the insurance industry my department will continue to bring these criminals to justice.” The complaint filed with the division by

INSURANCE INDUSTRY SOFTBALL TOURNAMENT SCORES FOR AREA CHILDREN

EW YORK (August 4, 2011) -Aon Benfield and the Insurance Industry Charitable Foundation (IICF) are pleased to announce that their annual charity softball tournament in Central Park, held on July 28, raised over $50,000 for the Family Reach Foundation. This grant will provide assistance for 50 families of children with cancer who are in

was arrested on July 8 at his residence in Tampa.

It is always great day when we are able to track down one of these fraudsters who, by their actions, cause each and every Floridian to pay more for auto insurance” Assurance America indicated that Quiles and Cabrales were involved in a staged automobile accident in Pinellas Park in October 2010. As a result of the alleged accident, Quiles and her three minor children claimed to be treated at TLC Medical Rehab LLC, located in Tampa. TLC Medical Rehab submitted invoices to Assurance America for close to $50,000. Quiles was arrested on July 7 at her residence in Osceola County. Cabrales, a former manager of TLC Medical Rehab, financial crisis as a result of their children's illness. Partner Reinsurance of the US was the victor, beating out 13 teams from the reinsurance industry to win the tournament. Rob Bredahl, president Aon Benfield Americas, commented, "We are pleased to be able to host this event and to combine our insurance industry gifts through our partnership with IICF. Everyone is a winner here today since we share in the knowledge that our gifts will help 50 children who are fighting cancer." In addition to the host, Aon Benfield, and the victor, Partner Re, the contributing teams came from Allied World Reinsurance Company, Arch Reinsurance Company, Aspen Re America Inc., AXIS Re, Catlin Group US, Endurance Reinsurance Corporation of America, Everest Reinsurance Company, Munich Reinsurance America, Inc., Odyssey America Reinsurance Corporation, and Transatlantic Reinsurance Company, and XL Reinsurance America.

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A new law championed by CFO Atwater that went into effect on July 1 means that these fraudsters may also face civil penalties if convicted of auto insurance fraud or staging an accident. CFO Atwater also helped secure additional funding for fraud prosecutors in Tampa, the number-one city in the state for staged auto accidents according to the National Insurance Crime Bureau. Anyone with information regarding suspected insurance fraud is asked to call 1-800-378-0445. Individuals who provide tips can remain anonymous and are eligible for a reward of up to $25,000 for information that directly leads to an arrest and conviction in an insurance fraud scheme. The Department of Financial Services to date has awarded almost $250,000 to approximately 40 citizens as part of its Anti-Fraud Reward Program.

BROWNYARD LAUNCHES A NEW LANDSCAPER PROGRAM

ay Shore, N.Y.—August 8, 2011— Brownyard Group, a program administrator providing specialized insurance coverage for select industry groups, announced today that it has launched GroundCover, a new insurance program for landscape professionals. The program provides General Liability and Property coverage for landscape contractors such as landscape gardeners and lawn care services, with coverage also provided for incidental exposures related to the insured’s business. Contact: www.brownyard.com The Underwriter’s Insider

CHRIS SIEGEL ALL RISKS, LTD. FORMS JOINS MACDUFF UNDERWRITERS JOINT VENTURE AYTONA BEACH, FL-(Marketwire - Jul 25, 2011) - MacDuff Underwriters, Inc. WITH is pleased to announce the addition of Siegel to our team of Insurance AVONDALE Chris Professionals. Chris will focus on casualty lines brokerage, servicing INSURANCE &ourprofessional agents throughout the US. ASSOCIATES

Chris brings 13 years of insurance experience in the property & casualty arena, most recently as the Profit Center Leader of Hull & Company, Inc. in Stockton, CA. With a Bachelor of Science Degree in International Business and Japanese Studies, Chris also holds the CIC, CRIS, ARM and AAI designations. Actively serving on the Executive Board of NAPSLO NextGeneration, Chris is very involved in our industry, specifically within the Excess & Surplus Lines sector. Placing and servicing casualty and professional lines business throughout the US has given Chris a very broad understanding of the needs of his Agents over his career.

UNT VALLEY, MD (July 20, 2011) – Leading independent wholesale insurance brokerage firm, All Risks, Ltd., is pleased to announce a joint venture with Avondale Insurance Associates. All Risks has the opportunity to provide its retail insurance agents and brokers with significant additional capacity in the State of Florida, excluding the tri-counties: Dade, Broward, and Palm Beach. Avondale is bolstered by Lloyd's of London paper and is committed to timely quote turnaround, policy issuance and claims handling. This Program is designed for risks with a Total Insurable Value under $5,000,000 with competitive rates and deductibles. Targeted classes of business include: Bars/Taverns, Churches, Condos, Distributors, Hotels/ Motels, Lessor’s Risk, Light Manufacturing, Office Buildings, Medical Offices, Warehouses/ Commercial Condos, Restaurants & Catering Operations, Retail Operations, Strip Malls, Shopping Centers, Vacant Buildings (with no more than 2 years vacant, unless a new owner). Retailers can send business to their local FL or GA All Risks’ broker for a quote. For additional questions, please contact Kim Steinmetz at 866-350-6885, extension 4723.

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CFO ATWATER’S DEPARTMENT RECOVERS NEARLY $12 MILLION IN FIRST HALF OF 2011

ALLAHASSEE—Florida Chief Financial Officer Jeff Atwater announced today that the Department of Financial Services’ Division of Consumer Services and Division of Agent and Agency Services have helped recover nearly $12 million in claim payments, premium refunds, restitution and recoveries this year for Florida consumers. The Division of Consumer Services is available to answer questions and assist consumers in all lines of insurance—including homeowners, health, auto, life and warranties— handling an average of 20,000 calls a month. The Division of Agent and Agency Services licenses insurance professionals and investigates alleged violations of the Florida Insurance Code— handling an average of 400 cases a month.

AIA COMMENTS ON HOUSE PASSAGE OF NFIP REFORM

ASHINGTON, D.C., July 12, 2011 – Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), today issued a statement in support of the House of Representative’s passage of H.R. 1309, The Flood Insurance Reform Act of 2011. The measure passed with 406 votes and includes a long-term extension and a number of improvements to the National Flood Insurance Program (NFIP). The bill now moves to the Senate for consideration. "AIA and its member companies commend the House for passing a meaningful long-

“Our purpose is to help our fellow Floridians by providing tools, education and when necessary serving as mediators between them and insurance companies,” said CFO Atwater. “Most situations can be easily resolved; we want consumers to know we are here to assist them when needed.”

Following is a synopsis of recent situations: • An 80-year-old Hillsborough County woman contacted Consumer Services about her husband’s annuity policy after the company had not paid six months after his death. With the assistance of a Consumer Services specialist who contacted the life insurance company on her behalf, her claim was settled and the consumer received payment of almost $318,000. term extension of the NFIP and for making necessary reforms to the program such as movement toward risk-based premiums and reduced price subsidies. We also commend the leadership of the House Financial Services Committee, especially Representative Biggert and Representative Waters, for their leadership in helping pass this important piece of legislation. “The five-year extension and reforms included in H.R. 1309 will provide certainty in the flood program thereby increasing consumer and business confidence in the NFIP while putting it on a more sound financial footing. “The certainty and stability of this program is an essential component of protecting the homes and businesses that may incur losses as a result of flooding. With more than 5.6 million policy holders dependent upon the NFIP for their protection against floods, it is our sincere hope that the Senate will now move to enact similar reforms quickly.”

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• A representative for a damaged commercial property in Hillsborough County called about a property claim that went unpaid for approximately a year, and the policy was being non-renewed. The consumer contacted Consumer Services to seek help with the unpaid claim. The specialist contacted the insurance company for an explanation for the continued delays and proof of claim payment. Approximately 10 days after receiving supporting documentation from the consumer, the specialist followed up with the company again and the consumer received the check for the policy limit of $188,000. • A case in which it was alleged an insurance agent grossly mishandled the finances of a senior couple living in Lake County was referred to the Division of Agent and Agency Services’ Bureau of Investigation. It was further alleged that the agent convinced the couple to surrender annuities they previously purchased through the agent and purchase new annuities for the sole purpose of earning more commission. An investigator was able to have the insurance company refund the surrender charges the couple incurred, which amounted to nearly $60,000. It was also alleged that the agent victimized other seniors through unsuitable or misleading life insurance and annuity transactions. Administrative charges have been filed against the agent’s insurance license. An investigation by the Division of Insurance Fraud led to a criminal charge of exploitation of the elderly—$100,000 or more filed against the agent. He is scheduled for sentencing in the criminal case. For assistance with an insurance claim, question or complaint, log on to www. MyFloridaCFO.com or call our Consumer Helpline at (850) 413-3089 or toll-free at 1-877-MY-FL-CFO (1-877-693-5236). Consumers can also access on-line an Insurance Library, numerous consumer brochures, read more about the CFO’s initiatives, and verify licensure of an insurance agent, agency or company.

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AIA COMMENTS ON REAUTHORIZATION OF NCOIL MODEL ACTS AFFECTING PROPERTY-CASUALTY INSURERS

ASHINGTON, D.C., – The Improvement Model Act previously American Insurance adopted in 2004. It establishes a 12 Association (AIA) percent flex-band within which an insurer announced its positions on two model may file rate changes on an expedited acts which basis during any 12 are due to be month period. “AIA supports NCOIL’s considered for flex-rating model act. reauthorization “AIA supports NCOIL’s at the National flex-rating model act,” Enabling insurers to Conference Ray Farmer, AIA quickly respond to market said of Insurance Southeast region vice trends promotes a healthy president. “Enabling Legislators’ (NCOIL) Summer insurers to quickly insurance marketplace.” Meeting in respond to market Newport, Rhode trends promotes a Island on July 14-17. healthy insurance marketplace.” AIA indicated its support for the Property-Casualty Flex-Rating Regulatory

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AIA, however, noted its opposition to NCOIL’s Model Act Regarding the Use

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of Insurance Claims History Information in Homeowners and Personal Lines Residential Property Insurance. The Model Act restricts rating and underwriting based solely on previous property owner experiences and sets various other insurer parameters on the use of claims data. It was previously adopted in 2005. “AIA opposes reauthorization of NCOIL’s model act which restricts adverse actions based on a property owner’s claims history,” said Eric M. Goldberg, AIA MidAtlantic region vice president. “Claims history is an accurate predictor of the potential for future claims and therefore remains a legitimate underwriting tool for assessing risk.” 23

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The INSIDER’S

“The Final Authority on Everything!” Something To Reflect On...

ow can I be certain my right and left-side auto mirrors are adjusted properly? My husband and I argue constantly about this. He says that the mirrors should be adjusted out real wide but I want them in closer where I can see along the side of my car. If I can’t see the side of the car, I can’t figure out what I’m looking at anyway. – N.B. Baton Rouge, LA

We checked with Poncho Vam-Vito, former GT racing great and a member of our automotive staff: “Well, N.B. may not want to hear this, but her husband is most likely correct. The purpose of the outside mirrors is to see that relatively small area between where your view ends in the rear view mirror and what you can see glancing out your side windows. It’s called your ‘blind spot’ and you have one on each side of the vehicle. Best way to adjust? For your right mirror, do the following: In any parking lot, pull slowly about 5 feet to the left of a parked vehicle until the parked vehicle disappears from view out your right side window. (The idea is to position the other car as if it was in an adjacent lane.) Now stop. You probably cannot see the vehicle in your rear view mirror at this point either, because it is in your blind spot. Now adjust your right-side mirror so that you have the other vehicle clearly in view. Don’t be surprised if you have to adjust your mirror almost all the way out in order to do so. For your left mirror, do the same with a parked vehicle on your left. Note that the adjustment is sensitive to seat position and you and your husband may have to readjust the mirrors each time you drive the vehicle if you are sharing one car. In a random sample, more than 90% of all vehicles were found to have the mirrors adjusted improperly – almost always too far in where they missed the blind spot altogether! Incidentally, you don’t ordinarily have to keep track of the side of your own car. It will usually follow you home.”

ADVISOR

practitioners. Some believe it is a state of enhanced suggestibility where suggestions (i.e., “when you awaken, you will be a chicken!”) bypass your normal deductive reasoning process and are accepted as fact. Others believe, with support gleaned from PET scans, that hypnosis actually changes the brain process. One exercise of hypnotism familiar to new parents is the Lamaze method of childbirth which incorporates much hypnotic technique in the elimination of pain and anxiety. As far as quitting smoking – give it a try. It doesn’t work for everyone but it has worked for many. A method used by some professionals to make a quick determination as to how easily someone can be hypnotized, is to have the subject lookup as far up as possible while holding their eyes open. The more “white” that shows under the iris, the more easily it is believed that person can be hypnotized.

Arguing School Children or Standing on Principle?

know you always take the Republican position but I am sick of the childish debate on the debt ceiling and I think both sides need to grow up and start working for a solution instead of political gain. Just my two cents. B.R., Miami Beach, FL

Have a question for The Advisor?

Click HERE! The Advisor normally takes the conservative position - not the Republican position. Half of the Republicans in office today could retire tomorrow with the Advisor’s blessing and encouragement to be replaced with true conservatives. The debate is simply not a 50/50 deal - with each side having equal merit to their argument and needing only to compromise. One side, the conservatives, are arguing for radical spending cuts and smaller government - clearly a rational ticket for a brighter American future. The other side, the liberal Democrats, simply insist on the same failed strategy of massive government spending, continuously expanding entitlement programs and even more wealth transference from the makers to the takers - a process which has brought our country and our economy to the brink of utter failure. It is clear to the Advisor that conservatives are, for the most part, principled patriots wishing to save their country from certain demise while the liberal side simply schemes, with their spending, to buy votes with taxpayer dollars. If there ever was a time to “hold the line” - this is it!

Hyp-No Smoke

y wife wants me to get hypnotized to quit smoking. I say hypnotism is either complete baloney or a stage trick and I’m sure I couldn’t be put in a trance. Give me the straight scoop so I don’t waste my time. – J..B. Birmingham, AL

It works J.B. How do you think she got you to marry her in the first place? What, exactly the phenomena of hypnotism is, however, is a subject of debate even among experts and

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Insurance Agency 4-Sale Miami-Dade County area

Miami Agency For Sale Well established agency for sale. Owner is retiring. Positive cash flow/ $1,200,000 sales, prime location, over 20 years in business/ representing eight companies, turn-key operation, priced for a quick cash sale 50% commercial/50%personal lines industry special/ commercial auto. Contact: Medero@bellsouth.net 8-3

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

CSR Wanted Memphis, TN area P&C CSR to produce quotes for progressive agency. Need commercial P&C experience.

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Sale price $110,000. in Hialeah Area. Established 1979. Call me at (305)322-9039. 7-5

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HERE 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

Csr/Agent Medley/Doral Area Doral/Medley Ins Agency seeks sales producer/CSR. Must have previous ins exp & knowledge of Auto & Home ins. Commercial exp a plus. A min of a 4-40 ins lic. Applicant must possess excellent communication skills in Eng & Span. Respond to this at: info@jmendezandassociates.com

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Part time/Full Time Insurance Agents – P&C

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Established in 2007. Growing business opportunity. Good mix of HO, auto & Commercial business. Owner motivated to sell for less than $100k. Close to 400 customers and $60000 in commissions. Call Raj Singh at 239-699-7047 7-6

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Active property and casualty insurance agency located in kissimmee FL,representing multiple carriers.busy street front store extremely organized smooth operating and clean. over 500 policies in force with great retention income tax services also offered at this location buyer must provide personal financial statement. asking $240,000 price is negotiable.for more info agencyforsale1@yahoo.com 8-1

2-20 Agent Wanted Lakeland, FL Need 2-20 Commercial Agent for Lakeland, FL office. Contact Teresa Bailey. Phone: 863-686-3100 Email: teresa@baileyharris. com 8-1

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2-20 Commercial Agent need for Plant City, FL office. Commission based. Contact Deb Newman Phone: 813-752-5200 Fax: 813-752-2011 Email: dnewmaninsurance@yahoo.com 8-1

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Suppose you were an idiot. And suppose your were a member of Congress...

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But then I repeat myself. - Mark Twain

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Property And Casualty Insurance Agency 4-sale Kissimmee, FL

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“Our nation is currently on an unsustainable

economic path. The nation’s debt-to-GDP ratio is currently on track to hit record levels. It is imperative that Congress agrees to cut spending in greater amounts than the increase in borrowing authority if we are to curtail an ever increasing debt. In addition, future efforts to enact comprehensive reform to our tax code and find solutions to our long-term debt and deficit problems will be essential to establishing a strong fiscal footing for future generations.” - – Leigh Ann Pusey, president and CEO of the American Insurance Association, in a letter to members of the U.S. House of Representatives urging passage of bipartisan legislation, the “Budget Control Act of 2011,” which will increase the statutory debt ceiling and avoid default on the financial obligations of the U.S. Government.

“And

I’m saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems, that keeps using that word redistribution. Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration. And it makes you slow down and not invest your money. Everybody complains about how much money is on the side in America.” - Steve Wynn, the CEO of casino company Wynn Resorts, delivered on his company’s quarterly conference call in July in a scathing review of “Obamanomics.”

“A drop in the bucket, or even spit in the ocean, ...this is nowhere close

to the amount of savings we need to really get on top of this deficit and debt challenge. We’re on course to borrow about $10 or 11 trillion over the next 10 years. ... .And $2.5 trillion in savings over 10 years is not going to fix the problem. It’s not even going to set us on the right course quite yet.” - Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget in an interview with Fox News.

“This system has become an indispensable medium for the inculcation

of leftist ideas. The university system allows the left to grab ahold of young people before they have had any experience of the world of work, production, and entrepreneurship, and it proceeds to fill their heads with a bunch of invalid political and economic abstractions before they are really able to test those ideas against the evidence of the real world. This is what explains the well-known phenomenon of 18-to-24-year-olds trending far to the left and falling for gaseous platitudes about “hope and change,” then gradually trending back to the right as they get older, gain real-world experience, and deprogram the propaganda they picked up in college. - Robert Tracinski, Editor of the TIA Daily commenting on what has become recently known as the “Education Bubble.”

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Continued from Page 10

READ THE POLICY! The Malpractice Suit On September 12, 2004, Joey Crumes went to the emergency medicine department at Mission Hospital Regional Medical Center complaining of a headache. He was treated by Dr. Andrew Lawson, a partner in MVEMA. Crumes was released after a CT scan revealed no pathology. On September 18, Crumes returned to the hospital in a semi-conscious state. He underwent a craniotomy and suffered a stroke thereafter. The stroke was allegedly caused by a brain infection that had been present and went undiagnosed during the September 12 visit. He was in a prolonged coma and was eventually transferred to a skilled nursing facility. In December 2005, Crumes and his wife filed a medical malpractice lawsuit against multiple parties, including Lawson and MVEMA. Defendants’ liability limit as to this claim was $2 million. Representation was provided under the policy’s terms. The case went to trial, and the jury awarded Crumes a judgment in excess of $11.7 million. The case settled in 2008 for $5.3 million. Defendants paid the policy limits of $2 million toward the settlement.

The Motion to Compel Arbitration In February 2010, plaintiffs sued its insurers. The complaint alleged causes of action for breach of the duty of good faith and fair dealing, breach of contract, reckless infliction of severe emotional distress, and intentional infliction of emotional distress. Defendants moved to compel arbitration. Plaintiffs opposed the motion, relying on the declaration of Dr. Robert Winokur, www.underwritersinsider.com

MVEMA’s managing partner. He testified that none of the application forms he filled out mentioned arbitration and that no one informed him that the HealthPro policies would include an arbitration clause. He stated he was unaware of the arbitration clause until the lawsuit was filed. In reply, defendants argued that irrespective of Dr. Winokur‘s professed lack of knowledge of the arbitration provision in the policy, MVEMA and its partners had a duty to read the policy, and were therefore bound by its provisions, including the arbitration clause. While MVEMA argues that the trial court’s determination of the factual evidence is reviewed under the substantial evidence standard, where, as here, the evidence is undisputed, appellate review of the determination of the enforceability of an arbitration agreement is new, as if there was no order by the trial court.

Public Policy California has a strong public policy in favor of arbitration as an expeditious and cost-effective way of resolving disputes. The strong public policy in favor of arbitration does not extend to those who are not parties to an arbitration agreement, and a party cannot be compelled to arbitrate a dispute that he has not agreed to resolve by arbitration. In Rosenthal v. Great Western Fin. Securities Corp. (1996) 14 Cal.4th 394 (Rosenthal), the California Supreme Court stated, “[W]hen a petition to compel arbitration is filed and accompanied by prima facie evidence of a written agreement to arbitrate the controversy,

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the court itself must determine whether the agreement exists . . . . Because the existence of the agreement is a statutory prerequisite to granting the petition, the petitioner bears the burden of proving its existence by a preponderance of the evidence.”

Applicable Law Once the moving party has established the existence of the arbitration agreement, the burden shifts to the party opposing arbitration to establish, by a preponderance of the evidence, the factual basis for any defense to enforcement. The Court of Appeal noted that the defendants provided prima facie evidence in the form of the insurance policy containing the provision. Plaintiffs admit the existence of the policy through Dr. Winokur’s declaration, and implicitly through their undisputed acceptance of policy benefits. In addition the Court of Appeal found that the arbitration provision is clear and conspicuous. It is included in the policy’s table of contents, in the policy itself and it is the second provision of the General Conditions section of the policy. The arbitration condition is printed in the same typeface as the rest of the document and the heading is underlined and in capital letters. Under the law pertaining to insurance contracts, an insurance policy limitation is conspicuous if it is positioned and printed in a form which adequately attracts the reader’s attention to the limitation. Given the existence of a valid insurance policy (e.g., a contract) containing a clear and conspicuous arbitration provision, the Court of Appeal found that defendants met their burden to establish a prima facie evidence of an agreement to arbitrate. If the arbitration clause is to be found invalid, it is up to plaintiffs to establish a

See Read The Policy Page 34 33

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READ THE POLICY! defense to the provision’s enforcement. Plaintiffs’ primary claim is that they never consented to an arbitration provision. Dr. Winokur‘s declaration states that “At no time did anyone inform me that the [HealthPro] professional liability policies would include an arbitration clause. I was not aware and did not expect that the policies would include an arbitration clause. I had no reason to suspect that the policies would include an arbitration clause. Neither I nor any agent or representative of MVEMA ever signed or initialed anything consenting to arbitration of disputes arising out of the policies.” In California courts follow the objective theory of contract law. Under that theory, “[i]t is the objective intent, as evidenced by the words of the contract, rather than the subjective intent of one of the parties, that controls interpretation.” [Founding Members of the Newport Beach Country Club v. Newport Beach Country Club, Inc. (2003) 109 Cal.App.4th 944, 956.] Plaintiffs’ argument regarding Dr. Winokur’s lack of knowledge ignores the objective theory of contract law. Further, if valid, it would permit any party to a contract to avoid a disadvantageous provision by claiming that they were not aware it existed. Fortunately for those who believe in the need to enforce contracts, the Plaintiffs’ argument is not the law. Rather, it is a general rule that the receipt of a policy and its acceptance by the insured without an objection binds the insured as well as the insurer. It is a duty of the insured to read his policy. Plaintiffs cited authority for the proposition that insurers must call special attention to any unusual or unfair language in an insurance policy. None dealt with an arbitration provision and the court could not question the premise that an arbitration provision qualifies as 34

unusual or unfair language because an arbitration provision does not impact the basic duty to insure. The Court of Appeal noted that even if it assumed that an arbitration provision does qualify as unusual or unfair language, it is enforceable if it is conspicuous, plain and clear in the policy itself.

Lesson The Plaintiffs in this case failed because their real argument against the enforceability of the arbitration agreement is that they did not read the policy. They could not prove that the contract provision was illegal or unconscionable or that the insurer hid the provision from them. An argument that a party to a contract should not be held to it because the contract was not read is inadequate and an attempt to emasculate the language of the policy. Contract language that is clear and conspicuous, as was the arbitration language in the policy in this case, must always be enforced. If a person fails to read the policy acquired – a not unusual occurrence – is bound by the contract. To avoid an arbitration clause one must read the contract and refuse to accept the provision or acquire insurance elsewhere.

GA’S HUDGENS ANNOUNCES OVER $6 MILLION IN INSURANCE CLAIMS RECOVERED

tlanta -- In the first six months of 2011, Insurance Commissioner Ralph T. Hudgens’ Insurance Department helped thousands of Georgians settle disputes with their insurance companies. Without his help, policyholders might not have seen the $6.2 million of insurance claims that was returned.

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Ralph T. Hudgens Georgia Insurance “Investigators in our Consumer Services and Managed Care Divisions helped over 24,000 consumers and businesses retrieve $6,231,568,” Hudgens said. “Many of the citizens who called my office had claim disputes with insurance companies, and our investigators were then able to secure a settlement favorable to the consumer.” The Underwriter’s Insider

FLORIDA OFFICE OF INSURANCE REGULATION STATEMENT ON CITIZENS RATE FILING

ALLAHASSEE, Fla. –The Florida Office of Insurance Regulation (Office) has received the first of several annual rate filings from Citizens Property Insurance Corporation (Citizens) – most notably the Homeowners filings related to the Coastal Account formally known as the High Risk Account (HRA), and the Personal Lines Account (PLA). Pursuant to Section 627.351(6)(n)6-7, Florida Statutes, Citizens is limited to a 10% annual rate increase excluding the cash build up factor, coverage changes, surcharges and sinkhole coverage which explains why some of these percentages may exceed 10%. The average statewide rate requests for the Coastal Account (HO) are: Policy Type Percent Requested HO-3 (Homeowners) 12.2% HO-4 (Tenants) 10.5% HO-6 (Condominium 11.1% Unit Owners) Total 12.1% The Coastal Account provides coverage for the peril of wind. The average statewide rate requests for the Personal Lines Accounts (PLA) are: Policy Type Total Percent HO-3 (Homeowners) 26.6% HO-4 (Tenants) 3.6% HO-6 (Condominium Unit 8.5% Owners) Total 25.4%

Sinkhole Coverage 447% N/A

Note: The HO-4 and HO-6 charges for sinkhole coverage are not separately identified in the filing. They are included in the all other perils rates therefore, at this time it is not possible to determine the percent changes in the charges for sinkhole coverage. The Personal Lines Account provides comprehensive, multiperil coverage. The rate filings were received the morning of August 3, 2011, and are available on the Office's Filing Search page on our website: Coastal Account - Filing # 11-12402 Personal Lines Account - Filing # 11-12403 Note: Once there, the search criteria will be displayed on the left side of the page. The most commonly used search criteria are www.underwritersinsider.com

the “file log #” and the “company name.” To view a filing type file log number (example 11-07034) into the file log # field and the filing will be displayed. The Office will carefully review the filings to ensure they are complete prior to beginning the rate review process. The rate review process will evaluate whether the rates are actuarially justified and that they are consistent with Florida law. Rate filings cannot seek rate increases to recoup past losses, but must reflect actuarially predicated future losses. Due to the potential impact of this filing, the Office will conduct a public hearing and will provide such details when available. The Office has created several tools to enable consumers to send comments to the Office regarding the Citizens’ filing. Consumers may e-mail: RateHearings@floir.com, or visit the Office's website (www.floir.com) and click on the box that reads "Click here to share comments about Citizens Property Insurance Rates." Please be sure to include "Citizens" in the subject line of the email.

FL RE-LAUNCHES POPULAR H.O. RATE COMPARISON SITE

ALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) today announced the re-launch of an interactive program designed to assist Florida's homeowners to shop for homeowners' rates. The new system, called the Consumer HomeOwners' Insurance Comparison Electronic System (CHOICES), is a revamp of an earlier system developed in 2007. "This is an extraordinarily helpful tool for Florida’s consumers," remarked Florida Insurance Commissioner Kevin McCarty. "The system ranks companies' rates in a given county, along with company contact information, to encourage Floridians to shop for a better rate; the system also illustrates the competitiveness of the homeowners' insurance market in Florida and the benefits of shopping for insurance." Consumers can access the interactive tool, CHOICES, through the Office of Insurance Regulation's website. The program assists consumers by allowing them to select between two standard risks, and pick any of Florida's 67 counties. By clicking on each county, consumers will see a pop-up window ranking the rates of leading insurers in these counties.

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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.

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