the
TEXAS CONNECTION TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
In This Issue
After the Storm—Replacing Lost or Damaged Documents Do You Need Insurance for Your Cellphone? How Safety Devices Will Change Auto Insurance as We Know It
APRIL 2016
Shirley Almany
……..……………....…….… Presidents Corner …………………....…… After the Storm ………………......……… By The Numbers ….….…………...…….… Our Partners
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Do You Need Insurance for Your Cellphone? Page 12 How Safety Devices Will Change Insurance
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Word Scramble ……...…….…………..….…
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………………………..……….… TDI Enforcement Actions …….……..….…. The Last Word …………………………….…
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Classifieds
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We publish this magazine with articles that we believe will be of benefit to our readers. If you are enjoying the features, great! But why not tell us what you’d like to see in the magazine and we will do our best to respond.
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Would you like to see articles on certain subjects? Agency management? Next time you are in Austin, you should make it a point to visit Hamilton Pool Preserve. It is a beautiful natural pool located about 23 miles west of Austin, Texas off Highway 71. The limestone lined pool is surrounded by a large shelter cave where large stalactites grow from the ceiling high above. When the water is up, a 50 foot waterfall spills into the pool.
Employee issues? Products?
You tell us what you want, and we will listen! Thanks for your suggestions, and support of Texas PIA.
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
Shirley Page 3
Release Date: January 13, 2016
Release Number: DR-4245-TX-NR027 AUSTIN, Texas—Disasters such as floods and tornadoes commonly result in loss of important documents. While it can seem like a daunting task, the good news for Texans is that many official papers and vital records are relatively easy to replace. Survivors od October’s severe storms, tornadoes, straight-line winds and flooding, , who have registered and applied for federal disaster assistance, should keep their personal information updated with the Federal Emergency Management Agency (FEMA) through out the recovery process. Supplying copies of important documentation is a necessary part of registering with FEMA. Applicants should share any change of address, telephone and bank account numbers and insurance information with FEMA to keep that information up to date. Check the list below to find out where to obtain official copies of your lost or damaged documents.
SNAP CARD (Food Stamps): Phone: 800-777-7328 Website: https://www.hhsc.state.tx.us/providers/LoneStar/EBT/EBThowto.html (continued on page 6) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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Green Cards: Phone: 800-375-5283 Website: http://www.uscis.gov/green-card/after-green-card-granted/replace-green-card
Birth and Death Certificates Phone: 888-963-7111 Website: https://www.dshs.state.tx.us/vs/reqproc/default.shtm
Texas Driver License Phone: 512-424-2600 Website: https://www.txdps.state.tx.us/DriverLicense/replace.htm
Bank Checks, ATM/Debit Cards, or Safe Deposit Boxes Phone: 877-275-3342 Website: www.fdic.gov
Credit Cards: Contact the issuing institution
American Express: 800-992-3404 https://online.americanexpress.com/myca/mobl/us/static.do?page=un lostorstolen
Discover: 800-347-2683 www.discover.com/credit-cards/help-center/
Master Card: 800-622-7747 www.mastercard.com/cgi-bin/emergserv.cgi
Visa: 800-847-2911 www.usa.visa.com
Credit Reports: Equifax, Experian, TransUnion Phone: 877-322-8228 Website: www.annualcreditreport.com Social Security Card Phone: 800-772-1213 Website: www.ssa.gov
Fraud Alerts or a credit freeze Phone: 877-438-4338 Website: http://www.texasfightsidtheft.gov/
Medicare Cards Phone: 800-772-1213 Website: www.socialsecurity.gov/medicarecard/ (continued on page (continued on page 6) 20) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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Luxury Suites on the Riverwalk
I wanted to know if there was any correlation between vanity license plates and auto theft. The scant data available suggests that while a vehicle with vanity plates might be slightly less likely to be stolen, the chance your license plates will be stolen is significant. The research does show that many people are willing to pay big money for personalized plates and states are making big money. Let’s look at the numbers. personalized plates purchased by Texans from
to
.
generated for the Texas general revenue fund. —The cost of ordinary license plates per year. There’s a variety of license plate purchase packages offered in Texas. If you personalize your plate by using numbers and letters to create your own message, it will cost you up to
per year
to display it. Buyers get rights to personalized plates for years and also gets first rights to renewal when the period ends. The plates are also fully transferable, meaning the owner could also sell the rights to another person. The most coveted plates are sold at auction. Here are a few ridiculous prices paid in the last few years: —Paid by a business man from UAE for a set of “1” license plates. —Paid by a rabid Texas A&M fan for a set of “12THMAN” plates. —Paid for a set of “”HOUSTON” plates. —Paid for a et of “FERRARI” plates. —Paid for a set of “COWBOYS” plates. —Paid for a set of “GO HORNS” plates. —Paid for a set of “RANGERS” plates.
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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Twenty years ago, the typical cell phone was the size of a brick. It could make phone calls, and that’s it. Today, smartphones handle everything from calls to texts to organizing our lives. In fact, many people would be lost without their phones. Does this make smartphone insurance a smart buy? According to the Federal Communications Commission (FCC): There is a growing epidemic of robberies involving smartphones and other cell phones: More than 40 percent of all robberies in New York City involve smartphones and other cell phones. The situation is getting worse: In Washington, D.C., cell phones were taken in 54 percent more robberies in 2011 than in 2007, and cell phones are now taken in 38 percent of all DC robberies. Other major cities have similar statistics, with robberies involving cell phones comprising (continued on page 13) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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30-40 percent of all robberies. Robberies are, by definition, violent crimes, and in many instances robberies targeting cell phones result in serious injury or even death. A recent Symantec study indicates that a loss or theft of an unsecured smartphone often results in access to sensitive personal data. Practically every smartphone carrier offers insurance. But is it worthwhile? Most cell phone carriers use a third-party insurance agency to provide their smartphone coverage. Before buying, read any documents carefully. The coverage you buy might simply be an extended warranty, which will replace or reimburse the cost of a defective device, This coverage could duplicate coverage you might already have through the manufacturer, retailer or credit card issuer. A warranty will typically exclude coverage for loss due to misuse or damage, including water damage. Some also exclude coverage for “normal wear and tear.” (With a device as frequently used as a smartphone, what is “normal wear and tear”?) And a warranty will not cover you if your phone is lost or stolen. Most require you to return the damaged or malfunctioning phone to the vendor. A smartphone insurance policy will cover you for a lost, stolen or damaged phone. So if your toddler drops your smartphone in the toilet, you’re covered. However, coverage generally costs $7-$10 per month, depending on the cost of the phone. You’ll also have to pay a deductible out of pocket, as much as $100. Are you willing to pay that much for your phone, particularly since you can often find refurbished smartphones for about the annual price of coverage plus a deductible? Some people might think the convenience of speedy replacement is worth the cost. Your homeowners policy provides coverage for loss, damage or theft of your personal property, even when it’s away from your home. (Many homeowners policies have lower sublimits for electronic devices. Check your policy—it might limit coverage for business electronics or electronics in cars to a much lower dollar amount than your personal property limits, such as $1,500.) You’ll want to do the math before filing a claim. A “cash value” policy will pay only the current cash value of your device. Since these devices become obsolete so quickly, your policy will pay much less than the cost of buying a comparable new smartphone. And any claim paid by your policy will be reduced by your deductible. Even if you have a brand-new iPhone, you’ll probably recover very little for filing an insurance claim…and your rates might even go up on renewal. THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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Many newer cars have automated driving safety devices ranging from back-up cameras to automated parking systems. Google has been testing driverless cars on public highways, and soon most cars will include event data recorders, similar to the “black boxes” in aircraft. What will these developments mean for your auto insurance?
Richard V. Rupp, a former insurance executive and risk management expert, makes the following predictions: Automobile and truck insurance premiums will begin to drop due to new vehicle safety features. Premiums will significantly drop when autonomous (“driverless”) vehicles come into common usage in eight to ten years. • Some smaller insurance companies will be forced to drop out of the auto insurance business, only partly because of lower premiums due to fewer accidents from autonomous vehicles. They will also be unable to match larger insurers’ ability to get enough data to effectively underwrite usage-based insurance policies. They will also be unable to afford the expense of building sophisticated communications systems between the insurer and insured vehicles [i.e., the “black box’’] needed to implement usage-based insurance pricing. • Standard auto insurance coverage will have more automobile club-type features because of the computer link between insurers and their customers’ vehicles. Insurers will know when a customer has had an accident or the vehicle has a mechanical problem and will be able to dispatch assistance and/or a claims adjuster. • Auto claims adjusting will become almost automatic because of the connection between the insurer and the insured vehicle. Much of the process will be computerized and will include the use of satellite pictures or pictures taken from the insurer’s drone aircraft. •
Although advanced devices will likely enhance your safety—and may reduce your auto insurance costs in the future—your best bet for keeping auto insurance costs under control today is to drive safely, park in safe areas and keep your car in good repair. Source: Rupp’s Riskepedia, www.ruppsriskepedia.com. THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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Arrange each of the following anagrams to form a single insurance related word. Keep in mind that the anagram is not a clue. It has nothing to do with the insurance related word. Send us your answers to be entered in a drawing to win a fabulous CASH prize! Feel free to call us if you’re stuck.
972.965.2025 Email to: Joe@piatx.org or fax to 972. 307.7888
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THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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(continued from page 6)
Passports Phone: 202-955-0430 or 877-487-2778 Website: http://travel.state.gov/content/passports/english/passports/lost-stolen.html
U.S. Savings Bonds Phone: 800-722-2678 or 800-553-2663 Website: http://www.treasurydirect.gov/
Tax Returns Phone: 800-829-1040 Website: http://www.irs.gov
Military Records Phone: 866-272-6272 Website: www.archives.gov/contact/
Vehicle Titles Phone: 888-368-4689 Website: http://txdmv.gov/motorists/buying-or-selling-a-vehicle/get-a-copy-of-your-title
Insurance Documents Phone: Check with your own insurance agent Website: http://insurance.lawyers.com/natural-disasters/replacing-personal-documents-lost-in-adisaster.html
Real Estate and Property Records (Mortgage Documents, Deeds, tec.) Phone: Contact your own agent Website: http://propertydeeds.org/lost-property-deed-replacement-procedure/
Medical and Prescription Records Call your own doctor; medical and prescription records are tracked electronically.
Replace a Texas Marriage Record or Certificate Website: www.dshs.state.tx.us/vs/field/localremotedistrict.shtm
Proof of Address/Residency Website: http://dps.texas.gov/Internetforms/FormDetail.aspx?Id=295&FormNumber=DL-5.pdf Spanish Website: http://dps.texas.gov/Internetforms/FormDetail.aspx?Id=2701&FormNumber=DL -5s.pdf
National Archive Records Website: General http://www.archives.gov/preservation/records-emergency/public.html Website: Saving family records http://www.archives.gov/preservation/disaster-response/ guidelines.html (continued on page (continued on page 6) 21) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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NOTE: FEMA does not endorse any specific products or services.
To prevent further loss of vtal documents, place the originals or copies in a sealable plastic bag or other watertight container and secure that container where it is best protected and can easily be located. It is also a good idea to make copies of vital and important documents and mail them to a friend or relative you can trust to keep them safe and retrievable. Texans in the following counties may register for disaster assistance for damage or losses sustained during the period Oct. 22 to Oct. 31:
Bastrop, Brazoria, Caldwell, Cameron, Comal, Galveston, Guadalupe, Hardin, Hays, Hildago, Liberty, Navarro, Travis, Willacy and Wilson. Survivors can apply online at DisasterAssistance.gov or by phone (voice, 711 or relay service) at 800-621-3362. TTY users should call 800-462-7585. The toll free lines are open 7 a.m. to 10 p.m. seven days a week. Multilingual operators are available. Fore more information on Texas recovery, visit the disaster web page at www.fema.gov/ disaster/4245, Twitter at https://www.twitter.com/femaregion6 and the Texas Division of Emergency Management website, https://www.txdps.state.tx.us/dem. ### All FEMA disaster assistance will be provided without discrimination on the grounds of race, color, sex (including sexual harassment), religion, national origin, age, disability, limited English proficiency, economic status, or retaliation. If you believe your civil rights are being violated, call 800-621-3362 or 800-462-7585 (TTY/TDD). FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards. The SBA is the federal government’s primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps businesses of all sizes, private non-profit organizations, homeowners and renters fund repairs or rebuilding efforts and cover the cost of replacing lost or disaster-damaged personal property. These disaster loans cover losses not fully compensated by insurance or other recoveries and do not duplicate benefits of other agencies or organizations. For more information, applicants may contact SBA’s Disaster Assistance Customer Service Center by call 800-659-2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s website at www.sba.gov/disaster. Deaf and hard-of-hearing individuals may call 800-877-8339. (continued on page 6) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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TEXAS DEPARTMENT OF INSURANCE ACTIONS Anderson, Alexander L Date of Action: 8/24/2015 Location: Houston Action Taken: Indicted Violation: Insurance Fraud, State Jail Felony Cage, Darrell Date of Action: 8/24/2015 Location: Houston Action Taken: Indicted Violation: Securing Execution of a Document by Deception, 2nd Degree Felony Carranza, Narcedalia C Date of Action: 8/24/2015 Location: Houston Action Taken: Indicted Violation: Forgery, State Jail Felony Hayes, Ruth G Date of Action: 8/24/2015 Location: Houston Action Taken: Indicted Violation: Securing Execution of a Document by Deception, 3rd Degree Felony
Contact Us Need more information on the benefits of membership? Have a question about member services? Give us a call: Texas PIA & Young Insurance Professionals 3632 Frankford Rd 200B Dallas, Texas 75287 (972) 862.3333 joe@piatx.org www.piatx.org
Kemp, Patricia A Date of Action: 8/24/2015 Location: Houston Action Taken: Indicted Violation: Securing Execution of a Document by Deception, 3rd Degree Felony Rodriguez, Douglas M Date of Action: 8/24/2015 Location: Houston Action Taken: Indicted Violation: Insurance Fraud, State Jail Felony Littlejohn, Joseph W Date of Action: 8/20/2015 Location: Dallas Action Taken: Sentenced to 5 years incarceration, fined $3,000.00 and ordered to pay $15,879.22 in restitution. Violation: Organized Criminal Activity, 1st degree felony Florez, Herman Jr Date of Action: 8/10/2015 Location: Fort Worth Action Taken: Indicted Violation: Insurance Fraud, 3rd Degree Felony Fraud Use/Possession of ID Info, State Jail Felony
The quickest way to
double your money is to fold it over and put it back into your pocket. The Insurance Sage
: https://wwwapps.tdi.state.tx.us/inter/asproot/fraud/indictments/clips.asp
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
Pa ge 26
the
Last word
Ken Blanchard, as most of you know, is a prolific author of books for business people, best known for his book “The One Minute Manager.” Several years ago, I attended a seminar presented by Ken and his wife Marjorie at the Cox Business College at SMU: “The Power of Ethical Management” For three hours we dissected various ethical dilemmas to determine the most proper “ethical” action to take on each one… Then they gave us the litmus test for every ethical decision we face: Ask yourself three questions… and then decide… 1. Is it LEGAL? And that would include Company Rules. 2. Is it GOOD for ALL PARTIES in the LONG and the SHORT RUN? Finally… and this helps put things into perspective… 3. How would you feel if your action was printed in the HEADLINES of the NEWSPAPER for all your FRIENDS & FAMILY to read? Or as we might say today, on FACEBOOK or TWITTER? As Professional Insurance Agents, it make sense to use good sense:
The Golden Rule still applies.
Honest is still the best Policy.
And Remember: If you don’t lie… you don’t have to remember what you said!
Joe Tipton