the
TEXAS CONNECTION TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
NOVEMBER 2015
In This Issue
Social Media and the Liability Risks
Preventing Privacy Breaches
Why Stress is an Employer’s Problem
Shirley Almany Presidents Corner …………………………
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………………………. Social Media and Liability Risks ….……… Classifieds ………………………..………… Preventing Privacy Breaches………..….... Why Stress is an Employer’s Problem .… By The Numbers …...…….………...……… Word Scramble ……...…….…………..…… TDI Enforcement Actions …….……..……. The Last Word ………………………………
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Meet the Member
Page 8 Page 14 Page 15 Page 18 Page 20 Page 22 Page 29 Page 30
If you are reading this magazine, you surely have an interest in our industry. If you’re not already a member, I’d like to give you 3 good reasons to join us... Reason #1: Errors & Omissions Texas PIA offers members quality coverage at very competitive pricing. PIA has exclusive deals with some of the best carriers in the United States. Reason #2: Market Access Find new markets to expand your business.
Texas has a bit of everything. Spanning 268,000 miles, we have plains, swamps, forests, beaches, and we have the Davis Mountains. Located in far east Texas, you’ll find 2,700 acres of scenic arid beauty. Davis Mountains State Park has an elevation from 5,000 to 6,000 feet above sea level.
Reason #3: Continuing Education Texas PIA presents regular local CE meetings, including dinner and a relaxed atmosphere to get the CE credits you need. You get 4 hours of CE credit just for being a member. There are many more… Go to www.piatx.org
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
Shirley Page 3
Texas Insurance Professional Services
Ray Reyes
or
Bob Dixon
(214) 618-2365
(832) 375-0787
ray@piatx.org
bdixon@piatx.org
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Meet Patti Romo, Marketing Director for Aggressive Insurance. Patti began her career in insurance in 1996 and worked in customer service and ultimately became underwriting manager for a large, multistate, insurance organization. In 2007, she had an opportunity to help launch a new company‌ Aggressive Insurance. She says it was quite a challenge for her, but she adds that working for Richard Asprey, Lauren Moore and Robert Newton was the best career decision she has ever made. The company grew steadily, adding more products, launching
a new state and quickly becoming a brand name. She adds: Aggressive Insurance is now one of the leading non-standard carriers in both Texas and Georgia.
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Patti is married and has three daughters; two are married and one is a high school senior. She says she loves animals almost as much as she does people. She has four dogs and she “facetimes” with them when she’s travelling. Her hobbies are shopping and decorating which, as she says, “fit together” nicely… It’s good to have you as a member, Patti.
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Should you worry about the content of your teen’s tweets or your spouse’s Pinterest posts? All it takes is for one tweet to veer away from commentary to defamation, or one image to invade another’s privacy, and you could face a lawsuit. The liability portion of a homeowners policy covers the homeowner for certain types of liability. The standard homeowners policy covers liability for property damage and bodily injury. If you have a covered claim, your policy will pay for your legal defense costs and any settlements or awards you become legally obligated to pay. This means that if a covered household member unintentionally damage or destroy another person’s property, the homeowners policy would cover it. It would also pay if a member of the household unintentionally caused physical harm to another person. For example, if a visitor tripped on a loose paver on the front walkway and broke his arm, the policy would pay his medical and lost work time costs plus any attorney costs, minus the deductible.
In addition to bodily injury, a person can also suffer “personal injury.” These non-physical injuries can include wrongful eviction, false arrest, defamation and violation of privacy. The standard homeowners policy does not cover these claims. Once posted on social media, your words become public. If your postings cross the line from casual observation to defamation, your target might threaten a lawsuit. Likewise, anything you post that someone perceives as an invasion of their privacy could lead to a lawsuit. Since the target hasn’t suffered any bodily injury, your homeowners policy won’t cover you. Any legal defense costs, settlements or damages will come out of your pocket. (Continued on page 16) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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McAllen — October 14th Empower Insurance Group & Texas PIA invited 30 agency owners to discuss forming a local chapter to serve agents in the Rio Grande Valley.
Quite a few became members, and provided a core group to allow formation of a local chapter to provide services to member agents in the area.
Thanks Janie Martinez! Thanks Ed Lack! Thanks Empower Group!
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Houston — October 28th Pappadeaux Seafood Kitchen Colonel Roy Phillips offered a fine presentation on ethics
Colonel Phillips and Past President Tony Harper THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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San Antonio
Texas PIA President Shirley Almany opened the meeting
November 11th
Dave & Busters
Don Miller, Treasurer, talked about the many benefits of membership in Texas PIA
Patsy Hysquierdo from Aggressive Insurance taught the Ethics Class THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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Texas PIA Offers Members Satisfying E&O Solutions “Fifteen
Members... Place classified ads here FREE
Buying? Selling? Hiring?
Looking?
This is your space… Use it.
Email your ads to: Classifieds@piatx.org
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15%.... Everyone knows that… but did you know that not all E&O policies are the same? E&O is like other types of insurance… you buy it hoping you’ll never need it… but if you do… E&O can be the difference in whether you stay in business or not. How about it? Do you know what your policy covers…. And more importantly, what it doesn’t?
Texas PIA offers members, quality E&O markets and coverage. And members say they have saved as much as 40% when they switch to exclusive PIA programs. Call today and get an analysis of your coverage and a competitive quote from multiple markets. Call Texas Insurance Professional Services: Ray Reyes (214) 618-2365 ray@piatx.org
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
or
Bob Dixon (866) 577-7428 bdixon@piatx.org
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Think about all the information you store on employees alone: Social Security numbers, addresses, names of spouses and dependents, and possibly even medical information. Then there are customers—do you have names, addresses, credit card numbers and expiration dates? If any of this information falls into the wrong hands, whether through error or theft, you have a liability exposure. The following quiz can help you identify security gaps. Correct answers are in parentheses.
If you keep paper files, are they in locked cabinets? Are cabinets in an office with a locking door, inaccessible to unauthorized persons? (yes) Do you keep the file cabinet key in the top desk drawer? (no) Do you shred documents containing personal information before discarding? (yes) Do you use Social Security numbers as employee ID numbers? Do you print Social Security numbers on paychecks? (no) Do you train human resource, payroll and benefits staff not to disclose personal information about other employees? Do you include this requirement in job descriptions for employees who handle personal information? (yes) Do you train customer service, IT and other staff who have access to customers’ personal infor mation (particularly credit card numbers) not to disclose this information? Do you make this a condition of employment? (yes) Do you do background checks on any employee who will have access to others’ personal info? (yes) Do you have appropriate firewalls, antivirus and malware detection software installed on your servers and networked computers? (yes)
3
Do you regularly scan your computers/networks, and keep your protection services updated? (yes) Is your network password-protected? (yes) Do you require employees to change their passwords regularly? (yes) Do you encrypt sensitive data? (yes) Do you require employees to report the theft or loss of any mobile device that might contain sensitive files immediately? (yes) Does your insurance cover your organization for security breach liability? (yes)
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(continued from page 8)
Defamation When defamation occurs in oral statements, it’s called slander. In print—as on Facebook or other social media—it’s libel. Black’s Law Dictionary defines defamation as the injury of another person’s reputation by “false and malicious” statements. Note the “and” — to be defamatory, statements must be both false and malicious. If your daughter mentioned on Facebook that her classmate Sarah drives a blue car, when in fact it’s black, the statement might be false, but it’s not malicious. Sarah’s reputation wouldn’t suffer any harm. But what if your daughter said on Facebook that Sarah shoplifted a designer bag from the local department store? If it wasn’t true, your daughter would be defaming Sarah’s reputation. But if Sarah had already been tried and convicted as a shoplifter, posting that true fact on Facebook would not be defamation.
Invasion of Privacy What about invasion of privacy? Invasion of privacy can be literal — as when a landlord doesn’t respect a tenant’s privacy rights. People also have privacy rights surrounding their likeness or photographs. Laws vary by state, but you’ll have fewer legal repercussions photographing and publishing anything visible in a public space. If your neighbor decides to walk stark naked down Main Street at noon and you post a photo on Facebook? You’re probably safe. If he sunbathes in the nude in his backyard and you take a photo through the fence? Invasion of privacy! So you want to become a paparazzi (continued on page 25) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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Short-lived or infrequent episodes of stress pose little risk. But when stressful situations go unresolved, the body is kept in a constant state of activation, which increases the rate of wear and tear to biological systems. Ultimately, fatigue or damage results, and the ability of the body to repair and defend itself can become seriously compromised. As a result, the risk of injury or disease escalates.
We all know that continuous exposure to stress damages health. NIOSH, the National Institute of Occupational Safety and Health, reports that it also creates increased risk of injury at work. According to NIOSH, exposure to stressful working conditions (called job stressors) can have a direct influence on worker safety and health. NIOSH defines job stress as the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker. It cites the following as possible causes of job stress:
Task Design. Heavy workload, infrequent rest breaks, long work hours and shiftwork; hectic and routine tasks that have little inherent meaning, do not utilize workers’ skills, and provide little sense of control. Management Style. Lack of participation by workers in decision-making, poor communication in the organization, lack of family-friendly policies. Interpersonal Relationships. Poor social environment and lack of support or help from coworkers and supervisors. Work Roles. Conflicting or uncertain job expectations, too much responsibility, too many “hats to wear.” Career Concerns. Job insecurity and lack of opportunity for growth, advancement, or promotion; rapid changes for which workers are unprepared. Environmental Conditions. Unpleasant or dangerous physical conditions such as crowding, noise, air pollution, or ergonomic problems. (continued on page 28)
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I thought about blowing this off until later, but then I realized that I would feel much better if I would just get it done. It turns out that procrastination in our society is getting worse. Let’s look at some numbers. Statistics show that procrastination affects about 20% of the population. According to some researchers, procrastination has quadrupled in the last 30 years. In the late 70’s, 5% of the population admitted to being chronic procrastinators compared to roughly 26% of the population today.
1 in 5 people procrastinate so badly that it may be jeopardizing their jobs, their credit, their relationships an even their health. In one study, a procrastination research group looked at 374 undergraduates and found that students who put things off were more likely to eat poorly, sleep less, and drink more than students who do homework promptly. Procrastination statistics suggest that 40% of people have experienced financial loss due to procrastination. Research suggests that procrastination predicts higher levels of consumption of alcohol among those people who drink. In the immortal words of Victor Kiam, “Procrastination is the assassin of opportunity.” So, let’s get out there and get it done. Oh yeah… Happy Belated Halloween.
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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 prize! Feel free to call us if you’re stuck.
972.965.2025 Email to: Joe@piatx.org or fax to 972. 307.7888
ROUT CAT CLAN
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Here’s the answers to last month’s puzzle. Remember there’s $100 prize for the first person to submit the correct answers. (before the answers are published obviously.) MINI COSMOS GOURMET PALS I DOMINATE
COY LIP SURLIER GAB MEND ME TIMBERS
COMMISSION PROMULGATES MEDIATION
POLICY BURGLARIES DISMEMBERMENT
TEST ME LENT
SETTLEMENT
SINGULAR TOE
REGULATIONS
WOMEN TEND
ENDOWMENT
SHARPEST COAT
CATASTROPHES
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(continued from page 16)
photographer? You can generally publish images of “public figures,” including politicians and celebrities, as long as they are in a public place when you take the photo. If they are in a privately owned space open to the public, such as a restaurant or shopping mall, look for signs. Unless the owner specifically forbids photography, you might be safe. Private citizens have a higher expectation of privacy. Context matters. If you’re photographing a newsworthy public event, you have greater leeway. You could probably safely publish a photo of a group of women taken at a protest, for example, even if they are individually recognizable. The same group of women at the beach for a travel article? You’d be wise to make sure they weren’t recognizable, or to get their permission. And using the same shot of women on the beach for an advertisement? Absolutely not, unless you get permission.
Laws in most states protect the rights of children and others incapable of protecting themselves. Whenever publishing photographs of children and mentally handicapped individuals, you should get a parent or guardian’s consent.
Insurance Coverage To protect your family from costly non-bodily injury liability claims, you can buy a personal injury endorsement. This policy addition broadens your policy’s definition of bodily injury to include personal injuries, such as false arrest, false imprisonment, defamation, invasion of privacy, malicious prosecution, wrongful eviction and wrongful entry. Like the rest of your homeowners coverages, the endorsement will probably exclude coverage for business-related activities, such as defaming a business competitor on your business blog. It will also exclude coverage for claims resulting from and intentional or illegal activities. You can also buy an umbrella liability policy to add personal injury coverage. People buy umbrella liability policies primarily to obtain additional liability coverage, from $1 to $10 million, over their homeowners policy’s limits. When you have a costly claim that exhausts your homeowners policy’s limits, coverage under your umbrella will kick in. The umbrella policy also provides coverage that the standard homeowners policy lacks. Most broaden the definition of bodily injury to include personal injury. It will also cover you for claims that exceed your personal auto policy. Since children and teens are usually heavy social media users, any household with children or teens should have coverage for personal injury. Both the homeowners policy personal injury endorsement and the umbrella liability policy will cover family members living in your household. Personal umbrella policies don’t cover the everyday risks that homeowners policies do, so they cost a lot less for the amount of coverage you receive. You can often get limits of $1 million for around $200 per year.
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BENEFITS OF MEMBERSHIP IN TEXAS PIA The POWER of Numbers As a Group, we have a Louder Legislative Voice (State & Federal) As an Association, we help each other with agency management issues
Market Assistance Website Design Help Search Engine Optimization Social Media Expertise Advertising… Find out what works before you spend any money
Market Access New Companies – New Products What % of your business is Auto? What if you could add more Homeowners, commercial auto, more General Liability, Life products, to your book without reducing your auto book by 1 policy. How would your bottom line look then?
Education Texas PIA Members get 4 hours CE Credit just for being Members Regular Local CE Classes with dinner meeting make it easy to collect CE hours Member get big discounts on web based CE Classes Annual Convention offers 2 days of solid CE Classes
Quality E&O coverage PIA Exclusive programs with Utica, Liberty Mutual, & other quality carriers offer some of the broadest coverage available Competitive Pricing – Several members have said they saved more than their Membership cost by switching to PIA E&O programs.
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Business-building tools PIA Branding Program: Add the PIA logo on your business card, website, stationery and signage. Identify your agency with a national association of insurance professionals. Hartford Flood Insurance: Special Program for Texas PIA Members Website building for your agency: Cutting-edge website tailored specifically for your agency… by the world’s largest insurance agent website provider. Offered at an incredible rate exclusively to Texas PIA members. Consumer brochures: PIA provides attractive brochures to answer customers’ questions
PIA Agents Umbrella Program: Excess insurance protection includes E&O and business liability coverage, with available endorsements for EPL and personal coverage. Cyber & Privacy Insurance: PIA and U.S. Risk Brokers have introduced a robust program exclusively for PIA members.
Individual & Group Insurance for you Agency Basic, voluntary, and dependent term life; Long/short term disability; AD&D; Business overhead expense; and Hospital income protection for you, your employees, and families.
Management Tools Agency Agreement Review Service: Free to members and carriers Agency Preparedness and Recovery Plan: The PIA guide to creating an agency-specific business contingency plan. Prescription discounts: Available to PIA members and their clients. Employee profiling: Hire right people with skills & personality testing from OMNIA. Discounts on UPS shipping
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(continued from page 18)
Exposure to stress sets off our natural “flight or fight” reaction. The nervous system is aroused and hormones are released to sharpen the senses, quicken the pulse, deepen respiration, and tense the muscles. While this reaction serves an important function in protecting us from immediate danger, long-term exposure to stress can lead to health problems. Stress-related conditions that could affect your workers include:
Musculoskeletal Disorders - On the basis of research by NIOSH and many other organizations, it is widely believed that job stress increases the risk for development of back and upper- extremity musculoskeletal disorders. Psychological Disorders - Several studies suggest that differences in rates of mental health problems (such as depression and burnout) for various occupations are due partly to differences in job stress levels. (Economic and lifestyle differences between occupations may also contribute to some of these problems.) Workplace Injury - Although more study is needed, there is a growing concern that stressful working conditions interfere with safe work practices and set the stage for injuries at work. What Can Employers Do to Reduce or Minimize Job-Related Stress?
Individuals under stress often display several symptoms. Managers and supervisors can use these as early warning signals of job-related stress: • Headache • Sleep disturbances • Difficulty in concentrating • Short temper
• Upset stomach • Job dissatisfaction • Low morale.
Factors that can help to reduce the effects of stressful working conditions include the following: • Balance between work and family or personal life • A support network of friends and coworkers • A relaxed and positive outlook. Employee assistance programs (EAPs) can help workers under job-related stress address their problems and find a better work/life balance. A quality EAP can provide counseling and referrals on a broad range of subjects, including personal problems such as substance abuse, financial problems and family conflicts that can also affect job performance.
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TEXAS DEPARTMENT OF INSURANCE ACTIONS
Nguyen, Charlie T Date of Action: 6/8/2015 Location: Houston Action Taken: Sentenced to 2 years deferred adjudication and 60 hours community service. Violation: Forgery, State Jail Felony Gaona, Antonio Date of Action: 5/28/2015 Location: Houston Action Taken: Sentenced to 1 year deferred adjudication and 50 hours of community service. Violation: Insurance Fraud, Class A misdemeanor Williams, Lorenzo E Date of Action: 5/21/2015 Location: Houston Action Taken: Sentenced to 5 years deferred adjudication, 100 hours community service and ordered to pay $60,733.24 in restitution. Violation: Theft, 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
Santos, Eidde Date of Action: 5/15/2015 Location: San Antonio Action Taken: Information Violation: Insurance Fraud, Class A misdemeanor Lara, David Date of Action: 5/8/2015 Location: San Antonio Action Taken: Sentenced to 2 years probation and fined $2,000.00. Violation: Insurance Fraud, Class A misdemeanor Muhlbeier, Makinzie M Date of Action: 5/8/2015 Location: Dallas Action Taken: Sentenced to 3 months deferred adjudication and fined $250.00. Violation: Theft, Class C Misdemeanor Johnson, Cimmeyon Date of Action: 5/6/2015 Location: Dallas Action Taken: Sentenced to 3 years deferred adjudication, 120 hours community service, fined $1,500.00 and ordered to pay $3,400.00 in restitution. Violation: Insurance Fraud, State Jail Felony
Good
judgment
comes
from experience, and a lot of that comes from bad judgment. - The Insurance Sage
: https://wwwapps.tdi.state.tx.us/inter/asproot/fraud/indictments/clips.asp
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL
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the
Last word Are you taking full advantage of your member benefits? We try to remind you often of the many benefits to Texas PIA Members. In this issue (pages 26 & 27) we listed many of them. Take a look… you may be surprised… Also… I want to tell you about a new benefit we just added. If you do not write life and health lines in your office… why not? Many of us say: “It’s too complicated… I’ll just stick to property and casualty.” But, we just added a new member that will help you make the transition, and increase your agency’s bottom line. I suggest you give Ronnie Davis a call and let him explain how his program works. He will take all the “mystery” out of selling life products and set you up with his EZ app system. I think you will be pleasantly surprised how easy it will be to get started. Take a look at Page 17 for more information about Ronnie and Davis Insurance & Associates.
Joe