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IN THIS ISSUE June 2017 Vol 13 Issue 5

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7 TECH MYTHS YOU BELIEVE THAT YOU SHOULDN’T

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You remember Ahmed Mohamed right? He was a 14-year-old Muslim kid who, in September of 2015, brought to Irving MacArthur School an disassembled digital alarm clock that had been reassembled in a 8” pencil container.

Today, we’re going to tackle seven persistent tech myths that started out well, but that you really shouldn’t believe anymore.

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CHIROPRACTORS CANNOT OWN & CONTROL A MEDICAL PRACTICE

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The type of scheme defeated by this case was designed for the sole purpose of profiting from fraudulent claims made to insurers whose insureds had allegedly injured third parties.

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6 BUSINESS LESSONS LEARNED FROM WORKING WITH WORLD-LEADING BRANDS C-Suite Strategist Jeff Kiesel offers tactical, actionable ways businesses can create smarter, safer, socially responsible organizations that increase efficiency, productivity and profits

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IBM BUILDS ITS MOST POWERFUL UNIVERSAL QUANTUM COMPUTING PROCESSORS IBM announced in May it has successfully built and tested its most powerful universal quantum computing processors.

“CLOCK-BOY” CLOCKED BY FEDERAL COURT

NEW ONLINE INSURANCE PRODUCTS FROM LEMONADE APPROVED FOR CALIFORNIA MARKET

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Lemonade is a technologydriven insurance company or insurtech, offering property and casualty insurance in California beginning today.

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FORBES NAMES MERCURY INSURANCE ONE OF ‘AMERICA’S BEST EMPLOYERS’ Our culture is a big part of the Mercury experience, and knowing that our staff would recommend working here to family and friends is a tribute to what makes Mercury special.”

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GEORGIA ANNOUNCES ARREST OF DARIEN INSURANCE AGENT Insurance Commissioner Ralph Hudgens and McIntosh County Sheriff Steve Jessup today announced the arrest of a Darien, Ga., insurance agent of fraud charges.

AIG PAYS BIG BUCKS TO BRING IN NEW CEO BRIAN DUPERREAULT As part of the deal to bring in Duperreault, AIG acquired Hamilton subsidiary Hamilton U.S. Holdings, Inc. for about $110 million...

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UNBELIEVABLE VINTAGE ADS One thing cool about the early 20th century was the fact you could buy a “large bottle” of whiskey for $1.00 - drink it freely and call it medicine!

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TRUMP: NOW WHAT? The Advisor Tackles A tough question... The Advisor: So you were a big Trump fan and now he’s being accused of all sorts of malfeasance. It seems like his whole administration is in meltdown. Wish you’d have voted for Hillary? T.J. Trenton, N.J.

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FEATURES 32

14 ARRESTED IN MIAMI FOLLOWING ASSISTED LIVING FACILITY FRAUD Investigators arrested an insurance agent, Alina Fernandez, after she was found to have forged another insurance agent’s name on two fraudulent ALF insurance applications.

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JUST SHUT UP AND GO HOME. PLEASE! The American public does not want a book from Hillary Clinton. It wants an abject apology. And it wants it for free.

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Blacks Fighting For... Segregation? For Real? BET reporting on Harvard University, congratulating themselves on a segregated, Blackonly, graduation. Why isn’t this racism? Why isn’t this a lack of diversity? Why isn’t this a non-inclusive environment?

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BLOCKCHAIN APP PUTS AN END TO MEDICAL RECORDS BEING HELD TO RANSOM

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Kim Komando Barry Zalma

Patientory’s advanced healthcare app that lets users create a patient profile to keep track of their health history.

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Advertising

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Inside Track

ALL RISKS, LTD. ENHANCES ITS SELF-STORAGE PROGRAM

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Insider Advisor

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Classifieds

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Say What?

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Back Issues

All Risks, Ltd., the nation’s largest independent wholesale insurance broker, has enhanced its Self-Storage Insurance Program with multiple new carriers providing greater package coverage.

FREE CLASSIFIEDS!

FORMER LOS ANGELES BROKER CHARGED IN DECADE-LONG AUTO INSURANCE SCHEME Villegas used false birthdates and addresses for clients to offer lower premiums in order to secure more business and gain more commissions.

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CALIFORNIA APPROVES REDUCED RATES FOR STATE FARM California Insurance Commissioner Dave Jones has approved rate reductions for two State Farm inland marine policies that will bring millions in savings.

Cover Photo Credit: Ron Manera, Senior Editor


JUNE 2017 INSURANCE • POLITICS • TECHNOLOGY • PEOPLE

A Publication of AdMax Corp., Inc. Corporate Offices P.O. Box 31551 Palm Beach Gardens, Florida 33420 Ron Manera, Publisher/Senior Editor Join Me On Linkedin: HERE Follow Me On Instagram: @rmanera 561.718.0745 • ron@insurmedia.com

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TECHNOLOGY

7 TECH MYTHS YOU BELIEVE THAT YOU SHOULDN’T

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Really Cool Info - by Kim Komando

echnology used to move forward like a freight train (literally at one point), but now it’s more like a 300 mph bullet train. You just have to blink and you’ll miss the latest smartphone, processor upgrade, new type of connector or any dozens of other developments that never seem to stop.

Many people are afraid to charge their phone or tablet overnight because they think it might overcharge and destroy the battery. I also field this question from people worried about leaving laptops plugged in 24/7.

2. DON’T USE THIRD-PARTY CHARGERS There is a difference between knockoff chargers and thirdparty chargers. A third-party charger is an Apple- or Android-compatible charger from a reputable company like Belkin or Monoprice.

With technology arriving this quickly, information about how to use it correctly can come and go just as fast. Yesterday’s standard operating procedure is tomorrow’s mistake. And what used to be good advice for avoiding danger might not be relevant anymore. Today, we’re going to tackle seven persistent tech myths that started out well, but that you really shouldn’t believe anymore. These cover the range from battery charging to data disposal to privacy and general tech buying. How many of these did you already know? Fortunately, you can stop worrying. Modern electronics 1. YOU SHOULDN’T CHARGE automatically stop before the YOUR GADGET OVERNIGHT battery overcharges. As long as

June 2017

you don’t put your smartphone under your pillow, or stab a battery with a kitchen knife, you’re OK. Learn more about battery safety and how to make your batteries last longer.

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Third-party chargers are OK to buy. Just know that, in general, they won’t charge your gadget as quickly or reliably as a maker’s official charger. Knockoff chargers usually don’t have a brand name, or they say they’re from Apple, Samsung, HTC, etc., but have a ridiculously low price. Knockoffs are often responsible for the horror stories you hear about gadgets bursting into flames or electrocuting users. See Kim Komando Pg 44 underwritersinsider.com

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INSURANCE & THE LAW

CHIROPRACTORS CANNOT OWN & CONTROL A MEDICAL PRACTICE Expert Analysis & Commentary by Barry Zalma, Esq., CFE

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nsurance fraud appears in many different schemes. When a chiropractor wishes to increase his practice and the fees charged in order to defraud insurers who compensate people injured in accidents, creates a “Docin-the-Box” scheme where the physician merely sells his or her name and license to a chiropractor for a fee, the action is a fraudulent violation of state law.

defendants). After a bench trial, defendants were found to have violated the Insurance Fraud Prevention Act (IFPA), N.J.S.A. 17:33A-1 to – 30, by assisting a New Jersey chiropractor in the late 1990s in the creation of an unlawful multi-disciplinary practice, which submitted medical insurance claims to Allstate.

the control, ownership, and direction of a medical practice.

In Allstate Insurance Company v. Northfield Medical Center, P.C. (A-27-15) Supreme Court of New Jersey (076069), 2017 WL 1739692, (May 4, 2017 ) the Supreme Court of New Jersey the Appellate Division reversed because it held Allstate had not established that defendants knew that a violation of those Join Barry Zalma’s new Blog: regulatory requirements could http://www.zalma.com/blog constitute insurance fraud Plaintiff Allstate Insurance under the provision of the Company (Allstate)sued a IFPA that creates liability for group of doctors and lawyers The trial court determined one who “knowingly assists, who created what Allstate that Borsody and Dahan conspires with, or urges any believed were a scheme to violated the IFPA to the extent person or practitioner to commit insurance fraud against they promoted and assisted violate any of the provisions of defendants Robert P. Borsody, in the creation of a practice [the IFPA].” Esq., a New York attorney, and structure that was designed Daniel H. Dahan, a California to circumvent regulatory Defendants extensively chiropractor (collectively, requirements with respect to promoted a professional

Barry Zalma, Esq., CFE, practiced law in California for more than 43 years as an insurance coverage and claims handling lawyer. He now limits his practice to service as an insurance consultant and expert witness specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He founded Zalma Insurance Consultants in 2001 and serves as its only consultant. 6

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practice structure that a fact-finder could reasonably conclude was little more than a sham intended to evade well-established prohibitions and restrictions governing ownership and control of a medical practice by a nondoctor.

as defendants. In the 1990s, Dahan, a chiropractor licensed in California, began organizing a series of lectures throughout the country through his company, “Practice Perfect.”

provided at Northfield, began investigating the legality of Northfield’s practice structure and ceased paying claims to the practice. Neuner retained Borsody to represent him with respect to the investigation. On January 28, 1999, Borsody wrote to Neuner, informing him that because the doctors hired to work at Northfield did not own stock in the medical practice, Neuner’s employment of those doctors likely violated existing guidance from the Board.

Practice Perfect lectures were marketed toward chiropractors and focused on the creation of multi-disciplinary practices in STATE OF NEW JERSEY RULES which chiropractors work with FOR MEDICAL PRACTICES physicians and other medical The Board of Medical professionals. Borsody, a Examiners established limits New York-based health care on the corporate practice of attorney, made presentations medicine. Section 6.16(f ) lists the The type of scheme defeated appropriate types of private practices As a result of its by this case was designed for – for example, investigation, the sole purpose of profiting from solo practice, Allstate refused partnership, and fraudulent claims made to insurers payment on medical corporation approximately whose insureds had allegedly injured – and explicitly $330,000 in claims of third parties.” provides that a patients treated by medical doctor with Northfield. a plenary scope of practice may not be employed at Practice Perfect lectures For present purposes, by a licensee with a more on the legal issues arising the salient charges of the limited scope of practice, such from such multi-disciplinary complaint allege that Borsody as a chiropractor. practices. and Dahan violated the IFPA by knowingly assisting Neuner in FACTS On March 28, 1997, after the creation and operation of A New Jersey-licensed attending the Practice Perfect a multi-disciplinary practice Neuner signed whose insurance claims were chiropractor, John Scott seminar Neuner testified in the trial a contract with Dahan to fraudulent under the IFPA. of the IFPA complaint filed become a client of Practice Based on the record presented, by Allstate against the multi- Perfect. Neuner spoke with the trial court found that disciplinary practice that Borsody about establishing Borsody and Dahan violated he had incorporated as a medical corporation and the IFPA when they “knowingly Northfield Medical Center management company as had assisted, conspired with and urged Neuner to operate in (Northfield), as well as the been described. various other professional In late 1998, Allstate, which entities and persons named had been receiving insurance See ZALMA Pg 43 claims for treatment June 2017

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ANALYSIS

6 BUSINESS LESSONS LEARNED FROM WORKING WITH WORLD-LEADING BRANDS By Merilee Kern, MBA

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t’s rather shocking to know that fully 96% of businesses fail within 10 years of existence, but what’s even more distressing is that many of these failures are entirely avoidable. Even once-mighty Corporate America behemoths are not immune to preventable peril, as exemplified by a glut of highprofile implosions with untold others currently struggling to adapt and stay agile within the digital age—an era where business dynamics on multiple fronts are a fluid, ever-elusive target. While many business and franchise owners embrace

information technology such as omnipresent and recurring cloud computing, ecommerce, expenses in both the short and cybersecurity and emerging long term. robotics, many also make the erroneous Yet others either C-Suite Strategist underestimate or assumption that innovations entirely disregard Jeff Kiesel offers capable of how powerful, tactical, actionable boosting safety w h e t h e r and digital ways businesses can enriching or d e f e n s e s , debilitating, a create smarter, safer, operational company culture socially responsible efficiency and can be and bottom lineeven how issues organizations that impacts related like workplace increase efficiency, thereto are safety play a key financially out role. Multiple productivity and of reach. Indeed, millions of nonprofits often discounted fatal workplace or overlooked is i n j u r i e s the opportunity to significantly needlessly occur each year, reduce, or even entirely eliminate, resulting in absenteeism and

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bout the author: Branding, business and entrepreneurship success pundit, Merilee Kern, MBA, is an influential media voice and lauded communications strategist. As the Executive Editor and Producer of “The Luxe List International News Syndicate,” she’s a revered brand and consumer product trends voice of authority who spotlights noteworthy marketplace change makers, movers and shakers. Merilee may be reached online at www.TheLuxeList.com. Follow her on Twitter here: http://twitter.com/LuxeListEditor and Facebook here: www.Facebook.com/TheLuxeList

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ANALYSIS

Image Credit: Creative Commons

Workers’ Compensation claims that chip away at a company’s profit margins. And then there are brand identity, perception, reputation and service issues wreaking marketplace havoc, as both small and large companies, alike, fail to “speak human” and meaningfully connect with their constituents. While such concerns are nothing new, technological innovations and other modern and strategic means of contending with these issues is a landscape that changes monthly and weekly, if not daily. Solutions, both physical and ideological, are available that can readily result in far smarter, safer and more efficient workplaces that also enhance morale, reduce staff churn, bolster profitability and elevate industries at large.

June 2017

With this in mind, I sought insight from c-suite strategist Jeff Kiesel—a former GE executive and current corporate CEO of Restaurant Technologies, Inc. who’s earned a reputation as a business innovation voice of authority. Given that his firm boasts a roster of multi-billion dollar customers that includes titans of industry like McDonald’s, KFC and Marriott Hotels, I asked if he could share some of the key business lessons he’s learned from working with world-leading brands. This is what he had to say:

to one extent or another. They’re keenly aware that offering, and ultimately selling, a product or service is the net result of having first built a strategically-crafted, risk-mitigated relationship— one that continues to be honed based on key data points well after a deal is closed. Their own internal sales activities aside, the best companies in the world also demand tangible evidence demonstrating how their offerings, as well as their vendor’s offerings, are impacting their customers.

Customer Insights:

Successful companies know, in World-class companies make specific terms and even from many of their business decisions various viewpoints, facts that based on laser sharp, analytics- are germane to the kind of driven insights that veritably solution they offer. Things like if impact the activities of all departments in the organization See 6 Business Lessons Pg 14 Table of Contents

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Image Credit: Creative Commons

NEWS

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NEWS

IBM BUILDS ITS MOST POWERFUL UNIVERSAL QUANTUM COMPUTING PROCESSORS

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orktown Heights, N.Y. - IBM (NYSE: IBM) announced in May it has successfully built and tested its most powerful universal quantum computing processors. The first upgraded processor will be available for use by developers, researchers, and programmers to explore quantum computing

using a real quantum processor at no cost via the IBM Cloud. The second is a new prototype of a commercial processor, which will be the core for the first IBM Q early-access commercial systems.

quantum computing systems for business and science applications. IBM Q systems and services will be delivered via the IBM Cloud platform. IBM first opened public access to its quantum processors one year ago, to serve as an Launched in March 2017, IBM Q is enablement tool for scientific an industry-first initiative to build commercially available universal See IBM Quantum Computing Pg 12

IBM Research Staff Member Katie Pooley, an Applied Physics PhD from Harvard who joined IBM in 2015, at the Thomas J Watson Research Center, is a process integrator on the IBM Q team. In the photo, Pooley is examining a cryostat with the new prototype of a commercial quantum processor inside. (Credit: Andy Aaron, IBM)

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NEWS Continued From Page 11

IBM QUANTUM COMPUTING research, a resource for university classrooms, and a catalyst of enthusiasm for the field. To date users have run more than 300,000 quantum experiments on the IBM Cloud. With the introduction of two new processors today for IBM Q, the company is building the foundation for solving practical problems in business and science that are intractable even with today’s most powerful classical computing systems. The two new IBM-developed processors include: •

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IBM’s first prototype commercial processor with 17 qubits and leverages significant materials, device, and architecture improvements to make it the most powerful quantum processor created to date by IBM. It has been engineered to be at least twice as powerful as what is available today to the public on the IBM Cloud and it will be the basis for the first IBM Q early-access commercial systems.

delivered via the IBM Cloud, allow us to imagine new applications and new frontiers for discovery that are virtually unattainable using classical computers alone.” The inherent computational power of a quantum processor to solve practical problems depends on far more than simply the number of qubits. Due to the fragile nature of quantum information, increasing the computational power requires advances in the quality of the qubits, how the qubits talk to each other and minimizing the quantum errors that can occur.

iBM has adopted a new metric to characterize the computational power of quantum systems: Quantum Volume. Quantum A 16 qubit processor Volume accounts that will allow for for the number and more complex quality of qubits, Quantum Computer Mixing Chamber - Credit IBM experimentation circuit connectivity, than the previously available “The significant engineering and error rates of operations. 5 qubit processor. It is freely improvements announced today IBM’s prototype commercial accessible for developers, will allow IBM to scale future processor offers a significant programmers and researchers processors to include 50 or improvement in the Quantum to run quantum algorithms, more qubits, and demonstrate Volume. Over the next few years, work with individual quantum computational capabilities IBM plans to continue to push bits, and explore tutorials and beyond today’s classical the technology aggressively and simulations. Beta access is computing systems,” said Arvind aims to significantly increase available by request through Krishna, senior vice president the Quantum Volume of future the IBM Q experience and a and director of IBM Research and systems by improving all aspects new Software Development Hybrid Cloud. “These powerful Kit is available on GitHub. upgrades to our quantum systems, See IBM Quantum Computing Pg 23 The Underwriter’s Insider

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ANALYSIS Continued From Page 9

and maybe even decades, can and Much of the technology found in probably should change. They the food service industry centers understand today’s environment around reducing costs, improving of adapt or die. They embrace efficiency and service quality, emerging technology and and helping managers better breaking proverbial new ground handle their teams. However, this with fresh thinking from everyone technology is viewed with eye and anyone that may very well toward what will provide the best their offering is saving customers “build a better mousetrap” and return on investment and improve money; how its impacting increase efficiencies that boost an operation’s bottom line. To employee, customer and vendor bottom lines. achieve this, the highest caliber retention and referrals; if it’s operations focus on technology increasing operational efficiencies, They curate a culture of that’s easy to implement, scalable productivity or creating a safer and also provides metrics work space. Such profiling of Companies successful that are of primary interest both prospects and existing to executives–things like at a global level also customers—or perhaps customer visits and staff costs even lost accounts to the ensure that their management as well as employee retention extent possible—can be a through job satisfaction. teams at every level, from determining factor that sets your operation apart from its the c-suite to the front-line, The analytics must be easily closest competitors. In today’s discernible, providing exact understand their role in market where competition numbers and trend patterns is typically neck and neck, ensuring their teams and on what it costs to continue activities are best driven by operating the old way departments are trained, data-induced insights that are versus what it would cost to enthused and working cross- implement new technology. optimally developed with a robust CRM software solution. functionally while adhering Top-tier operations will parse The best run companies in the this data in droves to glean to standard operating world vigilantly maintain a true key learning on multiple and holistic understanding of fronts. In doing so, the most procedures (SOPs). the value they proffer within successful companies are able the marketplace. to demonstrate the value of ingenuity, seeking input at every a tech-driven solution within 30 touchpoint—from the inside, out days of deployment. Embracing Adaptability: and the bottom, up—revising Changing paradigms in any best practices with customers Operational Excellence: industry is often viewed as a and employees seemingly in huge risk factor. However, global Companies successful at a global real-time. Global brands know corporations know that the level also ensure that their that complacency kills and take business practices, equipment management teams at every level, proactive measures to stay agile and other assets they have been from the c-suite to the front-line, and mindful of shifting standards. relying upon, perhaps for years understand their role in ensuring Technology Innovation:

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ANALYSIS their teams and departments are trained, enthused and working cross-functionally while adhering to standard operating procedures (SOPs). They have a lot on their plate, needless to say. It can be an uphill battle for sure. However, high caliber companies utilize proven technologies and protocols, and implement methodologies allowing managers to establish a simpler operating environment where they can focus more on cultivating people, both employees and customers, and less time on administrative tasks.

focus on strengthening employees relative to both relationships and skill level. Cultivating an employee base that’s enthusiastic, well-trained and well-equipped to do their jobs, also understanding why they are doing any given task, creates an environment of respect that will foster higher accountability and ownership by employees.

successful global companies wholeheartedly embrace corporate citizenship and make it a foundational pillar of their organizations.

Kiesel’s takeaways from working with top global brands makes clear that a holistic approach to business—one that keeps talent cultivation, character and efficiency top-of-mind—creates team loyalty and support and Corporate Citizenship: fosters increased market share. As Successful corporations well, Kiesel is eager to underscore worldwide understand the extent that a company’s culture is to which their company impacts nothing short of imperative for its community–whether that building a successful, growthcommunity is the municipality oriented operation, noting, “The Strengthening the Workforce: where it resides, or the industry investment is in the long-term World-leading brands understand it serves. The news cycles are success of our clients, for sure, that thoroughly onboarding faster than ever before, with but in gaining the loyalty of our team members into a company’s social media driving demand for people within the company, as culture, with an understanding information at a rapid pace. This well.” Indeed. of its history, purpose, vision and creates a heightened need for a strategy as well as job-specific focused work culture that, while training, is mission critical. A talent-driven, carries with it a ton one-to-one relationship based of heart. These companies take on trust and candor establishes a corporate social responsibility path to on-the-job achievement quite seriously. and even growth as staffers evolve in the organization, taking As an effective way to fulfill this on bigger and more complex need, they consistently participate roles. in philanthropic projects. Whether that be establishing and For the employee’s part, ongoing continually contributing to an HELP WANTED — POSITION training and education as well as educational foundation offering WANTED 4 — SALE ITEMS an investment in active listening, merit-based college scholarships understanding and ideation is to employee family members as key for proffering loyalty and my own company does, donating CLICK HERE! attaining career advancement. goods or providing services Large successful corporations pro-bono, or literally picking up purposefully and deliberately litter in the neighborhood park,

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47 th LAAIA Annual Convention August 2-5, 2017 Diplomat Resort & Spa Hollywood Education. Trade Fair. Connect.

“The Preeminent Event of the Year” What you will Experience  3 Days of CE Classes  Network with over 1,000 Industry Professionals  Trade Fair with over 100 exhibitors  Nightly Dynamic Networking Events  Domino Tournament  Charity Golf Tournament

Booth and Sponsorship opportunities are still available! Contact Soraya Regalado, Association’s Executive Manager, at soraya@laaia.com or via phone at 305-477-1442.

Don’t Miss This Great Event! /LatinAgents 16

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Rent This Space! Want Your 1/3 Page Message To Hit Over 120,000 Industry E-Mails Per Month For As Little As View Rate Card Here! Request More Info Here!

June 2017

Position wanted: Field Rep/Special Agent Experienced, licensed (2-20) P&C field rep available to work from Florida East or West Coast. MGA experienced but would consider Carrier or Premium Finance Position. Recent FSU Grad with Risk Management Course Work Please write for resume: candidate88@yahoo.com

“CLOCK-BOY” CLOCKED BY FEDERAL COURT

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ou remember Ahmed Mohamed right? He was a 14-year-old Muslim kid who, in September of 2015, brought to Irving MacArthur School an disassembled digital alarm clock that had been reassembled in a 8” pencil container. It looked for the world like a bomb with a timer. A concerned teacher took it to the principal’s office who called the police who, quite properly, gently interrogated Ahmed and investigated the scary, suspiciouslooking device.

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While arrested, Ahmed was never charged with a crime, but the incident played into Obama’s Muslim sympathies and the president invited Ahmed to the White House as if he were some sort of hero. Looking for a large pay-out, Ahmed’s family filed suit for $15 million alleging discrimination because of his Sudanese ancestry & Muslim faith. Shortly thereafter, Clock-Boy and family moved to Qatar to accept a scholarship. On May 29th, 2017, the lawsuit was dismissed by a federal judge. underwritersinsider.com

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NEWS

NEW ONLINE INSURANCE PRODUCTS FROM LEMONADE APPROVED FOR CALIFORNIA MARKET

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ACRAMENTO, Calif. — California renters, condo owners, and homeowners have new insurance options designed specifically for today’s policyholders who increasingly shop online for goods and services—including insurance. Lemonade is a technology-driven insurance company or insurtech, offering property and casualty insurance in California beginning today. “I commend Lemonade for bringing new insurance options to the California market, where we embrace new technology and business models,” said Insurance Commissioner Dave Jones in announcing approval of Lemonade for sale in California. “It’s encouraging to see insurtech companies developing innovative products and business models designed to better serve the needs of Californians. We welcome more insurers and startups to join the California market.” Lemonade is a completely technology-driven insurance company offering consumers the opportunity to purchase insurance through their mobile 18

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app or on the company’s website. Everything is digitized from purchasing insurance to filing claims. More insurance companies are beginning to use innovative business models designed to meet each policyholder’s unique coverage needs and incorporate technology to simplify and streamline the insurance process.

“Beyond being the techepicenter of the world, California also has as one of the most thorough and exacting insurance regulators.” said Daniel Schreiber, CEO and cofounder of Lemonade. “We’re honored California gave us a license, and are incredibly excited to offer Lemonade to Californians today.”

Position wanted: Field Rep/Special Agent Experienced, licensed (2-20) P&C field rep available to work from Florida East or West Coast. MGA experienced but would consider Carrier or Premium Finance Position. Recent FSU Grad with Risk Management Course Work Please write for resume: candidate88@yahoo.com Table of Contents

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THE INSIDE TRACK - BREAKING NEWS AOB Claims Killing Insurers

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Image Credit: Creative Commons

t’s been recently reported that “Assignment of Benefit” claims, especially water loss claims in South Florida are climbing through the stratosphere and may result in rate increases. The Florida OIR reported that water claims severity had increased 28% since 2010 while frequency had jumped by 46% primarily as a result of AOB abuse. Florida Justice Reform Institute published a paper claiming that AOB lawsuits rose from 25,000 to more than 100,000 in the period 2010 to 2016. While Florida has the greatest AOB concerns, AOB claims are also problematic across the nation.

leading specialty-focused providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services, is pleased to announce the appointment of Grant Nichols as Senior Vice President. Nichols has over fifteen years of experience in developing risk management solutions. Prior to joining JLT, he practiced environmental law internationally, where he focused on managing environmental liabilities associated with corporate and real estate transactions. Early on in his career, he spent six years within the Insurance Practice of a national law firm.

B

BOOM!

ritish entrepreneur and CEO of Virgin Galactic Richard Branson announced he is partnering

Credit: Boom Supersonic

with American startup company Boom Technology to build and fly a supersonic passenger aircraft that will fly even faster than the Concord at 1.451 mph. The Mach 2.2

JLT Appoints Grant Nichols as SVP

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LT Specialty USA, a U.S. subsidiary of Jardine Lloyd Thompson Group plc. (JLT), one of the world’s 20

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THE INSIDE TRACK - BREAKING NEWS aircraft would be able to travel between London and New York in 3 hours and 15 minutes. The consortium plans on having a scaleddown prototype in the air (Baby Boom) for testing by 2018 and FAA certification on a full-size model by 2023. The aircraft will hold 55 passengers in an all “business class” arrangement.

FL HB-421 Dies In Senate

Image Credit: Creative Commons

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by the industry as the Nail That Instagram chief culprit in generating unanticipated losses as it ant some hard data on what works on was seen to be exploited by trial lawyers and vendors Instagram? According to after obtaining an AOB from Aminur Rashid, “Posts that share personal experiences a policyholder. also receive a high amount of engagement, for example, weight Aetna Latest To Quit loss journeys and travel Obamacare Markets pictures. These updates received, on average, a etna had already pulled fifth (22%) more likes out of most of the compared to other images Obamacare exchanges, but posted by the same announced on May 10th account. Posts from female users receive the most it will leave the remaining likes and comments (sorry states where it still had gents!), with an average of been selling Obamacare 578 likes compared to 117 plans. “At this time have on average for a post from completely exited the a male user. The number of exchanges,” according to an comments was also higher, Aetna statement. The carrier 170 on women’s posts, a third more than men who added it will also stop selling receive an average of 113 non-Obamacare individual comments per post. Posts plans in two more states: of animals, such as cats and Delaware and Nebraska. The dogs, are the second most pull-out underscores the engaged with, receiving reality that Obamacare is on average 120 likes and terminal and on life-support, 60 comments. Scenery although Democrats have images, such as beaches, mountains and sunsets, taken the position that it is are the third most popular, Trump that is destroying the earning on average 90 likes controversial ACA. In many and 45 comments.” More states, there is only one Here remaining ACA carrier - and

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Florida House of Representative’s bill cheered by the insurance industry and designed to reduce claims abuse died in the Florida Senate on May 8th, 2017. The bill targeted Assignment of Benefit (AOB) claims and their abuse - primarily stemming from water loss claims. It is assumed that the bill failed due to resistance from the Florida Bar lobby since current law forces insurers to pay for a policyholder’s attorney if it is found that the insurer underpaid by even $1. This “one-way” attorney fee provision is regarded soon there may be none. June 2017

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NEWS-OPINION

RACISM, SEXISM, CISGENDERPHOBIA, EMPLOYMENT DISCRIMINATION NOW MAINSTREAM IN LIBERAL ECHO CHAMBERS by Ron Manera, Senior Editor

New Liberal Word You Must Learn: cisgender or cis “An adjective for someone whose chosen gender corresponds to their birth or biologic gender. Or anybody who is not transgender or gender-confused.”

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iper Herron is a Black temporary assistant professor in the Department of Mathematics at the University of Hawaii who somehow links up her field of mathematics with a disturbing view of “social justice,” liberal code-word for “I hate whites, men, cisgenders, heterosexuals and especially anybody from that group that may be a step ahead of me on the socioeconomic ladder.” Liberals, in declaring what they are fighting for, (liberals are always fighting), seem to have made a complete circle from the 60’s where they fought for racial equality, integration, gender equality, hiring equality, etc., etc. Now in 2017, if you are a modern 22

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liberal, your philosophy is decidedly racist (OK to hate Whites, White privilege, only Black Lives Matter, etc), sexist (OK to hate men) and, pro-discrimination in hiring, as long as it’s White, male, cisgender heterosexuals that you are discriminating against, while several universities (Harvard, Stanford, Columbia) are celebrating Black Only graduation ceremonies this year. They don’t even see the irony. But let’s listen to the esteemed Professor Piper Herron herself in a recent blog rant directed at White cisgender males: “Not to alarm you, but I probably want you to quit your job, or at least take a demotion. Statistically speaking, you are probably taking up room that should go to someone else. If you are a white cis man (meaning you identify as male and you were assigned male at birth) you almost certainly should resign from your position of power. That’s right, please quit. Too difficult? Well, as a first step, at least get off your hiring committee, your curriculum committee, and make sure you’re replaced by a woman Table of Contents

of color or trans person. Don’t have any in your department? HOW SHOCKING.” “I want you to understand that you should. And to understand that by keeping your job and your other unearned privileges, you are running a continued debt to marginalized people and you should always be seeking ways to pay us back. Not to alarm you, but statistically speaking you are the problem,” she concludes. “Your very presence. I can’t tell you what is the best strategy for you to stop blocking my path. I can just ask that you please get out of my way.” You won’t hear a single mainstream liberal politician or university take Herron to task. Total silence. It’s such a curiosity to me why a victim, a hater, a racist like Ms. Piper would even tolerate living in a country largely built by those White cisgender males she so disdains when she could be happily living in so many social justice paradises around the world - unburdened by nasty White cis men. May we suggest Haiti, Angola, Sudan, Ethiopia or Somalia. Hardly a White guy in sight and certainly none in charge. June 2017


NEWS

Continued From Page 12

IBM QUANTUM COMPUTING of the processors, including incorporating 50 or more qubits. While technologies that currently run on classical computers, such as Watson, can help find patterns and insights buried in vast amounts of existing data, quantum computers will deliver solutions to important problems where patterns cannot be found because there isn’t enough data and the possibilities that you need to explore to get to the answer are too enormous to ever be processed by classical computers. June 2017

Future applications of quantum computing may include:

of quantum physics to enhance the security of private data in the cloud.

-Business Optimization: Providing improved solutions to complex optimization problems found in supply chains, logistics, modeling financial data, and risk analysis; -- Materials and Chemistry: Untangling the complexity of molecular and chemical interactions leading to the discovery of new materials and medicines; -- Artificial Intelligence: Making facets of artificial intelligence such as machine learning much more powerful; or -- Cloud Security: Using the laws

About IBM Research

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For more than seven decades, IBM Research has defined the future of information technology with more than 3,000 researchers in 12 labs located across six continents. Scientists from IBM Research have produced six Nobel Laureates, 10 U.S. National Medals of Technology, five U.S. National Medals of Science, six Turing Awards, 19 inductees in the National Academy of Sciences and 20 inductees into the U.S. National Inventors Hall of Fame. For more information about IBM Research, visit www.ibm.com/Research. underwritersinsider.com

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NEWS

FORBES NAMES MERCURY INSURANCE ONE OF ‘AMERICA’S BEST EMPLOYERS’ Employees ‘would overwhelmingly’ recommend Mercury Insurance to a friend or family member.

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OS ANGELES, CALIF. independent survey of almost (PRWEB) MAY 12, 2017 30,000 U.S.-employees working Mercury Insurance has at companies with at least 1,000 been named one of “America’s staff members. The survey was Best Midsize Employers” by conducted from September 9, Forbes magazine. Headquartered 2016 to October 7, 2016, scoring in Los Angeles, Mercury (NYSE: companies on how likely their MCY) primarily provides auto, employees were to recommend them to homeowners and business insurance Our culture someone else. The willingness through a network is a big to recommend of more than 8,000 own independent part of the Mercury one’s employer was agents in 11 states. experience, and considered the “We’re extremely knowing that our staff most important metric of the proud that Forbes would recommend 35-question has recognized working here to survey and one Mercury’s amazing culture and I truly family and friends is a rooted in the theory of the Net appreciate our tribute to what makes Promoter Score. entire team for Mercury is one making this such Mercury special.” of America’s top a wonderful place employers and to work,” said Mercury President and CEO Gabriel Tirador. “Our one of a select few property/ culture is a big part of the Mercury casualty insurance companies to experience, and knowing that our make the list. staff would recommend working here to family and friends is a Mercury has also been recognized tribute to what makes Mercury seven times by Forbes as one of “America’s Most Trustworthy special.” Companies.” Forbes enlisted Statista, an online statistics provider, to conduct an ABOUT MERCURY INSURANCE 24

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Mercury Insurance (MCY) is a multiple-line insurance organization predominantly offering personal automobile, homeowners and commercial insurance through a network of independent agents in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia. Since 1962, Mercury has specialized in offering quality insurance at affordable prices. For more information, visit http:// www.mercuryinsurance.com or Facebook and follow the company on Twitter.

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June 2017


NEWS

GEORGIA ANNOUNCES ARREST OF DARIEN INSURANCE AGENT

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tlanta -Insurance Commissioner Ralph Hudgens and McIntosh County Sheriff Steve Jessup today announced the arrest of a Darien, Ga., insurance agent of fraud charges.

Avera was arrested at his home, 1027 O’Cain Ave., which also serves as the office for his business, Sapelo Insurance Agency.

revocation. The order alleges Avera took insurance premium payment from three clients and failed to forward the money to the insurance company. The administrative and criminal investigations of this case continue.

"I intend to continue aggressively investigating and acting on fraudulent insurance practices Dennis Calvin Avera, 35, was that place our citizens at risk,” arrested on three counts of Commissioner Hudgens said. "Since the premiums paid were insurance fraud, related to not properly forwarded to the his insurance business. An In addition to the criminal insurance companies issuing the investigation by Hudgens’ Fraud charges, an administrative order policies, the effect was that none Unit revealed that Avera was immediately revoking Avera’s of these customers were insured,” allegedly converting to his own agent's license has been signed Commissioner Hudgens said. “If personal use money given to him by the Commissioner. Avera has there were accidents, it could for automobile coverage from ten days from receiving the order create a hardship for any potential insurance clients. to request a hearing on the license victims.”

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AIG PAYS BIG BUCKS TO BRING IN NEW CEO BRIAN DUPERREAULT

ew York, NY - It will cost them tens of $ millions, but the struggling insurance giant AIG seems confidant their acquisition of former Bermuda Insurer Hamilton CEO Brian Duperreault, 70, who promised not to break up AIG, can solve some of the company’s employee morale problems as well as restoring investor and insured confidence.

in Duperreault, AIG acquired Hamilton subsidiary Hamilton U.S. Holdings, Inc. for about $110 million while offering Hamilton the option of assuming $150 million of AIG’s reinsurance premium.

AIG has agreed to pay Hamilton $20 million to “release” Duperreault and another $20 million if he completes his 2nd year with AIG. Duperreault’s As part of the deal to bring compensation will include a June 2017

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base of $1.6 million, a short-term annual incentive of $3.2 million and a long-term incentive of $11.2 million. If as if that weren’t enough, he will be given a onetime cash sign-on bonus of $12 million (to compensate for unvested Hamilton equity) and $1.5 million in AIG common stock. Some critics of the deal have wondered aloud about the wisdom of investing that much in a 70-year-old executive - no matter how capable - and that it shows AIG’s current desperation. underwritersinsider.com

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HP DEMOS MEMORY CENTRIC COMPUTER Architecture will eventually allow the computer to access more than a yottabyte (1 Million TB) of memory!

WATCH THIS AMAZING ODE TO SPACE EXPLORATION!

UNBELIEVABLE VINTAGE ADS

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othing illustrates the changes in our national culture better than vintage ads from the Mad Men era or earlier - many of which would be considered over-the-top sexist, politically incorrect or just plain goofy today.

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ne thing cool about the early 20th century was the fact you could buy a “large bottle” of whiskey for $1.00 - drink it freely - and call it medicine! However, mankind has made great strides. We have figured out much better ways of consuming whiskey than taking it by spoon!

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“The Final Authority on Everything!” WARNING!

The Advisor has been known to be politically incorrect and may send certain Millennials scurrying to their safe space. Also not recommended for Progressives who are easily offended. Please read at your own risk.

Trump: Now What?

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o you were a big Trump fan and now he’s being accused of all sorts of malfeasance. It seems like his whole administration is in meltdown. Wish you’d have voted for Hillary? T.J. Trenton, N.J.

ADVISOR

both health care reform and tax reform - two of his biggest campaign promises. He has Comey fired as Comey was about to give a speech to a group in California - and poor Comey finds out about his own firing while watching TV. Then Trump bad-mouths Comey on the way-out, calling him a “showboat” while later apparently telling a Russian emissary visiting the White House that Comey was a “nut job.” And then there were the Trump tweets, like this threatening one, “James Comey better hope

that there are no ‘tapes’ of our conversations before he starts leaking to the press,” implying, apparently that Trump had taped his prior conversations with Comey. Classic Trump. A complete train wreck. It’s hard to imagine how the firing, which was certainly deserved, could have been done any more sloppily. So, if you voted for Trump because you wanted a paragon of protocol, a defender of decorum and discretion, you must be sorely disappointed.

Well, T.J., it’s like this: Trump continues with a string of unforced errors exacerbated by bad timing, foolish tweets and awful messaging that are reminiscent of his campaign. The recent firing of FBI Director James Comey is a classic example Trump’s bumbling: First, he choose to do it smack in the middle of legislative initiatives to advance 28

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U.S. Investments while others On the other hand, if you don’t give a rat’s rear-end have pledged to keep or move overseas jobs to the U.S. about any of that stuff, you reversing a trend accelerating might be cheered by some of under Obama. this: 1) Since the Trump election, the stock market has made a $3 trillion gain or 15% in valuation. 2) Illegal immigration, rampant under Obama, is down 61% - the lowest in 17 years. 3) The Washington Post reported 227,000 jobs added in the first jobs report under Trump. 4) Since the Trump election multiple companies have announced $ billions in June 2017

5) Decisive military action in Syria and Afghanistan have set the Russians back several notches while regaining respect for the U.S. across the world stage largely lost under weakling Obama.

From Chuck Schumer’s faux tears on the temporary immigration ban to crazy Maxine Water’s inane call for impeachment, they squawk in perfect unison, convincing no one but themselves. The Democratic cacophony over possible Russian influence on the election rings hollow, and, If they had won, they’d be dead silent. If the Russians WERE involved in influencing the election, it was only done by telling voters THE TRUTH about Hillary and the DNC. God bless ‘em for that!

The Dem’s feigned outrage at every single Trump initiative is as transparent as air. They have only one goal and it does not include any benefit for America or her people: Distract, You asked if I wished I voted for diminish, disrupt and destroy Hillary? I’d rather kiss Nancy the Trump administration. Pelosi on the lips! Table of Contents

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220/440 Lic. Ins Agent Needed - Boca

FREE CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider. com/classifieds. Ads must be less than 501 characters plus a title line. Eligible free classifieds include help wanted, position wanted, personal ads, agency for sale/purchase, or the one-time sale of an item or items. Place Ad HERE! REGULAR CLASSIFIED RULES: Submit all ads online at: www.underwritersinsider. com/classifieds. Only $1.00 per word, including title line and response info. Payment must be received prior to print date. Ads run 3 mo.

440 or 220 in Boca Raton, Part Time or Full Time

Insurance Agent With 220 License We are looking for Insurance Agent with License 220 In Kissimmee, Florida Are Full Time on Agency. Please call 407-847-2539 for Interview Ask for Alex Ramos alexinsurance@aol.com 17-6

Exquisite Partner’s Desk For Sale “Wholesale” “Pop” retired, and he sold his Law Office building…Treat Yourself to an Heirloom today!! The only significant fixture left in the building is his Exquisite Partner Desk & Matching Credenza. He paid over $10,000 for the Desk & Credenza, & he is asking $3,800, nego. The desk & credenza are located in Louisiana, and they are both in “exceptional” condition. THIS SET WILL NOT LAST LONG”!!! :) Call Mel (225) 644-8406 /or/ “Pop”, M.T. Melvin (985) 227-9557. Thank You!!!!! Mel Melvin / Ofc: 225- 644-8406 17-6

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Experienced or Trainee; Agent and Customer Service Rep in family owned agency in Boca Raton. Full or Part time. (Flexible Hours) Personal Lines CSR; salary plus bonus. Commercial Agent; 50% commissions and residual. Most important Florida markets and several national markets available. We can compete with the “Big Boys” with our national affiliations. Email your resume to agencyops@gmail.com. or FAX to: 561-416-7221. EOE 17-2

Tampa Area Commercial Producer Agency Established 2006 seeks Outside Commercial Producer. Cutting Edge tech! Generous Comp and Possible Equity Buy In. Experience and FL 220 a must! Resume’ to info@nusurance.com 16-10

Commercial Agency for Sale - Brevard County

Small commercial agency for sale in Brevard County. Approximately $33,000 in annual commissions. Asking $66,000 (2xTTM). 80% brokered commercial, 10% homeowners E&S, 10% miscellaneous. For more information, call (904) 7792000. Business broker fee paid by Seller. kathy@jmjbrokers.com 17-6

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Looking for inside / outside lic. experienced sales rep. Must know QQ/QF, Semcat and other software packages. Efax resume to 954-908-7001. Great office. 16-11

Wanted: P&C Books in the Treasure Coast Well established agency in Martin County looking to buy P&C books in the Treasure Coast area(JupiterVero Beach). Let us be your succession plan. Email:Floridahomeinsurance@ yahoo.com 17-6

Commercial MGA Underwriting Manager in San Antonio TX Area Commercial Lines Underwriting Manager. Under the direction of the Profit Center Leader the Commercial Lines Underwriting Manager is responsible for the day to day management of that Department’s personnel, products, production and carrier relationships. plp@tcgrecruit.com 17-6

Experienced Agents for sales Gwinnett Co. Very strong Bilateral contract for producers seeking a new home. Excellent commission Structure, with a retirement option. You must be able to get out of your current contract. Voted Best in Gwinnett 7 yrs in a row, very strong name recognition and advertising support. We work hard, but have fun too! 770-497-9400 ask for Larry Talbert larrytalbert@talbertservices.com 17-6

June 2017


Outside Ins Sales Rep - Must be licensed South Palm Beach Co. Need home based / office outside insurance sales rep. Must have experience cold calling, networking grps and referrals a must. Most know how to type up and prepare a propert commercial risk including acords, loss runs, etc. Pls email resume to: jonathandrausch@hotmail.com 16-11

Medicare Supplement Agents Wanted Newly licensed health agents welcome. Will train to sell an ‘A’+ rated company with lifetime commissions. Offering a direct contract with no minimum production. Agent is not captive so can appoint with other companies. Get appointed and trained before Medicare Open Enrollment and start making some money!! Contact General Agent: Charlotte T. Kocian at email: AGENT.CHAR@yahoo. com 17-6

Help us to expand our Agency (From Home)!! We are seeking a super energetic and motivated professional to work in a virtual capacity assisting us with recruiting and supporting professional sales agents across the United States and Canada. For detailed information on our company and this non-sales virtual opportunity please contact me at: Nicole.lang@harvardbenefits.com Nicole.lang@harvardbenefits. com

2 Agents With 2-20 & 2-15 Wanted Palm City, FL Our Independent Agency is looking for two Aggressive Producers who hold both a 220 Property Casualty License and a 215 Life and Health License. These producers will be hired as Independent Contractors working towards building their own book of business through our Agency on a Commission basis only. If interested, please send resumes to Senior Agent Stephen Scienzo at stephen@scienzoinsurance.com 17-6

Looking to buy a P&C agency in PB County Please call 561-584-0732

Efax: (561) 829-2055

Growing MGA is looking for a highly motivated & responsible individual. Duties include managing accounts from our distribution channel --- quoting, binding and servicing multiple lines of business. Incredible opportunity for someone looking to learn and grow in a company. Send resumes to info@ everiskpro.com 17-4

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17-3

Now Hiring All Positions Independent Agency Hollywood, FL Independent agency in Hollywood, FL. We are hiring for all positions, commercial & personal lines agent/account manager/processors/receptionist/bookkeeper. 220/440 experience preferred but not required. cpenate@newmanins.com

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16-12 June 2017

BROWARD COUNTY ENTRY LEVEL ACCOUNT MANAGER

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Agency Wanted Miami-Dade, Broward & Palm Beach I have several Buyers with different sized appetites looking to buy a P&C agency. They prefer Palm Beach & Broward Counties but may consider Miami-Dade. Call Steve Whitehill @ 561-3767500. swhitehill@anchorbfs. com All inquires confidential- Anchor Business & Financial Services Inc., Licensed Business & Commercial Real Estate Brokers 17-6

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NEWS

14 ARRESTED IN MIAMI FOLLOWING ASSISTED LIVING FACILITY FRAUD An assisted living facility (ALF) in Miami intentionally misrepresented its business activities in an attempt to obtain an inadequate but cheaper insurance policy.

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IAMI, Fla. – Chief During the processing of the June 2016 and May 2017 Financial Officer claim, Citizens suspected that which identified a trend of Jeff Atwater today the ALF had intentionally misrepresentation taking announced 14 arrests following misrepresented its business place within the ALF industry. a year-long investigation led by activities in an attempt to The Department, with support insurance fraud investigators secure a cheaper, residential from Citizens and the National with the Department of insurance policy rather than Insurance Crime Bureau, Financial Services. Investigators the required commercial identified a total of 14 ALF uncovered an alleged operators in Miamifraud scheme in Investigators arrested Dade County who which an assisted allegedly defrauded an insurance agent, Alina living facility (ALF) in their insurance carrier. Miami intentionally Fernandez, after she was found misrepresented its Those arrested to have forged another insurance business activities in include: an attempt to obtain agent’s name on two fraudulent ALF an inadequate but insurance applications. She was • Jose Perez - Living cheaper insurance charged with acting as an unlicensed Well, 21280 Old Cutler policy. Rd. Miami, Fla. 33189 agent, ID fraud, and organized FL. 33032 When an insurance fraud. The Department’s insurance • Aida Salguiro - Amor Y policy is knowingly Esperanza Home Care, secured under licensing unit has revoked her license 3224 West 14 Avenue, false pretenses, the Hialeah Fla. 33012 insurance carrier and banned her from working in the • Gilberto Peralta oftentimes reserves the insurance industry. Angel's Home, 7935 SW right to deny claims for 146th CT Miami, Fla. loss or injury. 33183 policy. Citizens referred their • Thelma Waite-Blake - B & B Citizens Property Insurance findings to the Department’s Home Care Service, 20625 SW Corporation (Citizens), the Bureau of Insurance Fraud. 114th Place Miami, Fla. 33189 company’s insurance carrier, • Idalberto Brito - Brito Home first discovered the fraud The case ultimately initiated a Corp., 7361 Pine Valley Dr. following the filing of a claim larger series of investigations Miami, Fla. 33015 for a broken pipe in 2014. that took place between • Odalys Amaro & Eduardo

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June 2017


NEWS Rodriguez Loving Hands ALF, 2291 SW 100 Ave., Miami, Fla. 33165 • Anna Kaplan Flamingo Care LLC, 1270 NE 174Th St, N Miami Beach, Fla. 33162 • Teresita Leon - Teresita Home Care, Inc., 4840 SW 89Th PL, Miami, Fla. 33165 • Guillermo Jesus Mendez - La Casita Nuestra Home II, 14909 SW 22nd Street, Miami, Fla. 33185 • Barbara Plaza - Cornell ALF, 581-583 Central Blvd, Miami, Fla. 33144 • Jorge Pulido - La Casita Nuestra Home II, 14909 SW 22nd Street, Miami, Fla. 33185 • Leonel Burmudez - Bermudez Senior Care, 5301 SW 162 Place, Miami, Fla. 33185

was charged with acting as an unlicensed agent, ID fraud, and organized fraud. The Department’s insurance licensing unit has revoked her license and banned her from working in the insurance industry.

The remaining 13 subjects arrested were transported to Turner Guilford Knight Correctional Facility and have been charged with one count of application fraud, a thirddegree felony. These cases will be prosecuted by the Miami Additionally, investigators Dade State Attorney’s Office arrested an insurance agent, and if convicted, those arrested Alina Fernandez, after she was face up to 5 years in prison. found to have forged another insurance agent’s name on ALF’s are long-term care two fraudulent ALF insurance residences that offer various applications for Jorge Pulido. services such as health and management, She was also found to have medicine and meal been acting without the transportation services in an effort to support proper license. seniors and developmentally Fernandez was transported or physically disabled members to Turner Guilford Knight of our local communities. Correctional Facility and June 2017

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Editor’s Note: Alina Fernandez, who had been licensed as a customer representative, had that license suspended in August 2016 for being charged with “Uttering Forged Instrument” after forging another agent’s name on a Citizen’s policy. That investigation ultimately let to the additional investigations leading to May’s arrests detailed in this story.

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33


Notable Quotes In The News

SAY WHAT?

Just Shut Up And Go Home. Please.

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place where they would go. I think people will just forget about it.” Robin Lewis, a longtime industry analyst and chief executive of the Robin Report weighing in on the dramatic decline of once-great retailer Sears and it’s corporate sister, K-Mart. While as recently as 1994, the combined annual revenue of Sears/K-Mart ($111.4 billion) were almost identical to Walmart’s revenues. Since then, Walmart results have increased 400% as Sears/ K-Mart have watched their numbers dwindle. K-Mart filed for bankruptcy in 2002 and Sears announced March of this year that there was “substantial doubt” about its future. The stock plummeted. Lewis was specifically commenting on the actions of Eddie S. Lampert and his firm ESL Investments who control the two struggling retail empires.

he American public does not want a book from Hillary Clinton. It wants an abject apology. And it wants it for free. She got what she deserved: She lost. Now she needs to shut up and go home.” Liberal, former Hillary-supporter, political columnist Gersh Kuntzman offering sage and timely advice to the former candidate - who just seems unable to let her historic defeat get behind her and continues to make a fool Cold Calling Dead? God, I Hope So... of herself in the national media, billing herself as the “leader of eople are already turning off the resistance.” Kuntzman’s comments came to cold calling. Governments on the news that Clinton is writing a book are making it illegal, setting fines on the election, yet Kuntzman declares the and businesses are blocking cold country does not need a book, but rather an apology for the worst-run campaign in history. callers. It’s starting to be seen as a cheeky sales activity and not one that represents the true value a sales professional should In Memory of Sears.. offer. We’re trying to shake off the “bad pushy salesperson” image and yet we’re still e did nothing to maintain the promoting cold calling which in reality is stores—nothing to spiff them pushy and intrusive. Cold calling is relevant up and make them a nice place now, but it’s at the end of it’s product to go shopping. You’ve got young people cycle. It’s a dying activity and it won’t be today that don’t even recognize Sears as a

Image Credit: Creative Commons

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June 2017


long before it will be very rarely used and paid $3 million to attend the event and give a certainly not something you will want your self-aggrandizing speech, the Secret Service teams spending time on.” protection costing as much as $1 million, was paid for by you and I, the American taxpayer. Sales Consultant Daniel Disney on the Read the entire column here. upcoming death of cold calling as millennials move into decision-making roles. They Blacks Fighting For... Segregation? won’t take the call. As one who has survived several months of the “make a 100 calls, get side from studying and 1 appointment” routine, I’ll be glad to see taking grueling tests, if you’re cold calling consigned to the dust bin of sales a minority, the outer pressures history. of society make the already challenging

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Obama Cares... For Something.

Image Credit: Creative Commons

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ormer president Barack Obama cares about the environment. A lot. So much so that he took time out of his busy schedule of hobnobbing with celebrities on a super yacht in Tahiti to attend a “climate change” summit in Italy. But America’s first black president wasn’t so green. He took a private jet to Milan, then rolled into the city in a 14-car motorcade — with a helicopter keeping watch overhead. He dumped enough carbon into He Cares... the environment to kill a small forest. Yet he wasn’t done there. Then he opened his mouth, pouring more hot air into the atmosphere. ““During his roughly 100-minute remarks in Milan, Italy, the former U.S. president talked about himself 216 times,”” according to a count by The American Mirror.”

coursework even more difficult. Knowing this, Black members of the class of 2017 decided to form an individual ceremony. It’s the first of its kind at the school in recent memory and took nearly a year to plan,” reports BET. “The separate graduation is an effort to highlight the aforementioned struggles and resilience it takes to get through those.”

For Real? BET reporting on Harvard University, congratulating themselves on a segregated, Black-only, graduation. Why isn’t this racism? Why isn’t this a lack of diversity? Why isn’t this a non-inclusive environment? Why isn’t this a “trigger” to any normal American wishing to improve race relations in this country? What would happen if Caucasian students decided to hold a White-only graduation? I guess, it’s because “if you’re a minority, the outer pressures of society make the already challenging coursework even more difficult,” whatever the Hell that means. You’ve really got to feel sorry for these poor Harvard grads - about to enter the workforce with six-figure salaries and company Beemers. I sure hope they get over those awful “outer pressures.” Note: Stanford, Temple and Columbia all have Columnist Joseph Curl in an article for The Black student graduations as well. Daily Wire. While climate-caring Obama was June 2017

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BACK ISSUES

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BACK ISSUES

June 2017

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NEWS

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FORMER LOS ANGELES BROKER CHARGED IN DECADE-LONG AUTO INSURANCE SCHEME

OS ANGELES, Calif. — Rosie Villegas, 46, of North Hills was charged with one misdemeanor count for transacting insurance without a license after an investigation by the California Department of Insurance revealed she allegedly misrepresented client information on insurance applications.

For over a decade she sold automobile policies to consumers and misrepresented their information on insurance applications.

Villegas used false birthdates and addresses for clients to offer lower premiums in order to secure more business and gain more commissions. Victims were After receiving a complaint unaware that she falsified their from one of Villegas' victims, policy documents. the department's Investigation Division found that after her The department is requesting broker license expired in 2002, that anyone who purchased Villegas failed to renew her insurance from Villegas to contact license and continued posing as a the department's Investigation Division at (661) 253-7500. licensed broker.

Arraignment is scheduled for October 27, 2016. This case is being prosecuted by the Los Angeles City Attorney's Office. UPDATE: On April 26, 2017, Rosie Villegas, 47, pleaded no contest to one misdemeanor count of providing a false or misleading statement. She was sentenced to two years’ probation and 10 days of community labor. As a condition of her probation, Villegas is not allowed to transact insurance. The case was prosecuted by the Los Angeles City Attorney’s office.

CALIFORNIA APPROVES REDUCED RATES FOR STATE FARM POLICYHOLDERS

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ACRAMENTO, Calif. Insurance Commissioner Dave Jones has approved rate reductions for two State Farm inland marine policies that will bring millions of dollars in premium savings for tens of thousands of boat owners and homeowners with jewelry and higher value collections.

should be lowered, resulting in an estimated total premium savings of $18 million annually to California consumers,” said Insurance Commissioner Dave Jones. “Once again, Californians have benefited from the insurance commissioner’s rate regulation authority.”

damage for a variety of watercraft including sailboats, outboard, inboard and inboard/outboard boats. The second is State Farm’s standalone Jewelry and Personal Articles program used to insure higher values and variety of items including scheduled jewelry, silverware, fine arts, sports equipment, memorabilia and The first rate reduction is for State collectibles like stamps and coins, “The department’s rate analysts Farm’s standalone boat owner’s which offers more deductible reviewed State Farm’s rate filings policies that can cover liability, options than are offered with their and determined that the rates medical payments and physical standard homeowner policies. 38

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NEWS

BLOCKCHAIN APP PUTS AN END TO MEDICAL RECORDS BEING HELD TO RANSOM

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TLANTA, USA (PRWEB) As medical records across England's National Health Service were locked down and held to ransom following Friday’s wide scale cyber attack, leading blockchain startup, Patientory is urging citizens around the globe to unlock their health data with blockchain.

impossible for a cyber criminal to hack one block in the chain without simultaneously hacking every other block in the chain’s chronology, making the blockchain incredibly appealing to not only store a patient’s entire health history, but determining who should have access to it.

In addition, Patientory's use of blockchain technology helps affiliated health care organizations achieve minimal data breaches. It achieves HIPAA Security Rules by maintaining a security compliance team, protecting relevant electronic systems and using encryption to control data access.

Medical information can be Patientory’s advanced health care worth ten times more than Considering that there is app that lets users create a patient credit card numbers on the deep technology like Patientory’s profile to keep track of their health web. Fraudsters can use this already available for citizen’s history. The free to use to ‘own’ and ‘control’ app provides patients their medical records, with an easy and hassle Patientory founder & CEO free way of tracking Chrissa McFarlane "urges doctor visits, medical the government to get bills, personal medical behind a blockchaininformation, insurance, enabled national IT immunizations and health system and at pharmacy medications. the same time help to Furthermore, it removes remove legal obstacles the possibility of having in the movement of data this data held to ransom amongst providers.” by cyber criminals. data to create fake IDs to buy medical equipment or drugs, or McFarlane continued, “It’s Rather than having one central combine a patient number with incomprehensible and frustrating administrator that acts as a a false provider number and file that people’s lives were gatekeeper to data—there’s one fictional claims with insurers, endangered on Friday especially shared ledger, spread across with Patientory’s app, when when there is technology like ours a network of synchronized, administered and implemented out there. How much longer are replicated databases visible to correctly, there is zero possibility we, as citizens prepared to let the anyone with the authorized that any unauthorized access to government control our data and access, providing unprecedented patient data can be gained. not have the necessary security security benefits. Its virtually controls in place.” June 2017

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NEWS ALL RISKS, LTD. ENHANCES ITS SELF-STORAGE PROGRAM WITH NEW MARKETS AND IMPROVED COVERAGE Broker Upgrades Storage-Related Exposure Package With Four New Coverages

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UNT VALLEY, MD (April 25, 2017) – All Risks, Ltd., the nation’s largest independent wholesale insurance broker, has enhanced its Self-Storage Insurance Program with multiple new carriers providing greater package coverage. The program offers a turn-key solution for all storage-related exposures throughout the nation, specifically targeting traditional selfstorage facilities, boat/ RV storage and converted buildings.

Primary General Liability limits are offered up to $6,000,000 and $7,000,000. Discounts are also awarded for association members and those offering tenant insurance. Custom forms and an enhanced Property form with broader coverage and higher limits further distinguish All Risks’ Self-Storage Program.

In addition to General Liability, Property, Customer’s Property Legal Liability, Third Party Limited Pollution Liability, Sale and Disposal Liability, Employment Practices Liability and Business Income insurance, All Risks has added new coverage to the program: • • • •

“As our Self-Storage Program enters its seventh year, we are now more versatile than ever. Our exclusive access to multiple carriers provides thorough coverage solutions for our retail agent partners. With greater capacity, more coverage options and higher limits, All Cyber Liability Risks is uniquely positioned to 1st Party Pollutant Removal meet the evolving needs of the Wind and Hail Options self-storage industry,” stated Excess Policy with Higher Merle Harris, All Risks’ SelfLimits Storage Program Director. June 2017

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Please contact Merle Harris for more information at 602494-7200, extension 3920, or mharris@allrisks.com. About All Risks, Ltd.

All Risks, Ltd., based in Hunt Valley, Maryland, is the largest national independent wholesale brokerage firm offering comprehensive insurance solutions with a full-service platform of brokerage, contract binding, exclusive national programs and specialty personal lines products for retail insurance agents and brokers nationwide. The 52-year-old firm employs 850 staff members in offices located in Maryland, Arizona, California, Colorado, DC, Florida, Georgia, Illinois, Indiana, Louisiana, Minnesota, Nebraska, New Jersey, New York, North Carolina, Pennsylvania, Texas, Virginia, and Washington. To learn more, please visit www. allrisks.com. underwritersinsider.com

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www.zalma.com • web log, “Zalma on Insurance” • videoblog, “Zalma’s Insurance 101”

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June 2017


INSURANCE & THE LAW Continued From Page 7

ZALMA a fashion that violated the law.” The trial judge rejected defendants’ argument that, because the law was unclear the evidence did not establish a knowing violation of the Act. In a Statement of Reasons, the trial court set forth the essence of its determination: “Borsody and Dahan promoted what they knew was essentially a lie. The business model they promoted was intended to appear to be one way and yet, in reality, be another way. They both were motivated to provide to the chiropractor the ability to manage a practice which included medical doctors.

basis for the Court to conclude direct evidence. that Borsody knew what he was doing was not proper.” The failure of a health care provider or service to adhere ANALYSIS to the statutory requirements This is not a criminal case. or any other significant state And, the Legislature did not statute or agency regulation, incorporate the criminal renders that provider or service definition of a “knowing” mens ineligible for reimbursement rea in its adoption of a knowing under the statute. In New Jersey violation for IFPA civil liability, a practice entity must comply as is applicable in criminal with all statutes and regulations insurance fraud prosecutions. governing the permissible for control, There is no need for structures contortions in understanding ownership, and direction of the word. “Knowing.” It is well a medical practice, including understood to be an awareness the use of professional services or knowledge of the illegality interconnected with a medical practice.

Borsody and Dahan promoted what they knew was essentially a lie. The business model they promoted was intended to appear to be one way and yet, in reality, be another way.“

Dahan knew that a chiropractor could not own a majority interest of a multidisciplinary practice since his California corporation was established so that he was a minority shareholder himself. Borsody knew that he was placing in the hands of the chiropractor the control that was lacking in his first experience in New York. The simple fact that the practice was intended to look as though a medical doctor was in control yet, with various side agreements, he was not, constitutes a sufficient June 2017

Borsody, as well as Dahan, knew of the regulatory requirements at issue, promoted a practice scheme specifically designed to circumvent those requirements while appearing compliant, and therefore knowingly assisted in the provision of services, the foreseeable result of of one’s act. which was the submission of There is ample precedent invalid and misleading claims supporting the proposition under the IFPA. that a party’s knowledge as to the falsity or illegality of The documents and structure his conduct may be inferred promoted and designed by accomplished from the surrounding factual defendants circumstances. As has been what the regulations sought stated often circumstantial to avoid. They placed control evidence is not only sufficient over the medical practice in but may also be more certain, satisfying and persuasive than See ZALMA Pg 46 Table of Contents

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TECHNOLOGY Continued From Page 5

KIM KOMANDO Avoid them at all costs. Your safest choice is to buy your charger directly from the gadget manufacturer. You should also know the signs of a shady gadget charger. 3. YOU HAVE TO LET YOUR BATTERY DRAIN TO ZERO BEFORE CHARGING Nickel-Cadmium batteries, which used to be a staple of home electronics, had a “memory effect.” That meant if you didn’t drain them fully before each charging, they’d eventually stop holding as much electricity. The lithium-ion batteries that have replaced them in modern gadgets don’t have that problem. In fact, li-ion batteries last longest when you keep them between 40 percent and 80 percent charged. Also, if you let li-ion batteries discharge completely for too long, they can be permanently damaged or become dangerous. But li-ions do have one challenge. The batteries have a built-in sensor that tells your gadget how much electricity is left in the battery. Over time, that stops matching up with the battery’s actual charge.

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To reset it, you have to charge the li-ion battery to full, let it run down to the point where your gadget gives you a serious battery warning and then charge it back up to full again. However, this only needs to be done every three months or so. For some gadgets, you might not need to do it at all. Apple used to recommend this process but now says it is no longer needed. Check your gadget’s manual to see if it has any specific directions.

If you’re concerned about saving energy, turn it off. Or you can use one of your computer’s many powersaving modes, which are faster for getting it going again in the morning. 5. YOU NEED TO DEFRAGMENT YOUR HARD DRIVE

This is a myth that used to be true, but no longer is. Given the way conventional magnetic hard drives read and write data, over time bits of data that should be next to each 4. ALWAYS SHUT DOWN YOUR other get jumbled. So, to pull COMPUTER AT NIGHT up a file, the drive would have This myth goes all the way back to travel to 15 different places to the early days of computers. instead of one or two, which Back then, computer parts, slows down your system. especially hard drives, wore out much faster than they do today. It used to be that you’d So, the idea was that to make occasionally need to manually your computer last longer, you run a utility to defrag your should always shut it down at system. Now, that function is night. Some people still cling to built into Windows and other that concept, and there is a little major operating systems, grain of truth in it. and it’s run automatically as needed. There’s no need for However, modern computers you to do a thing. have more robust parts, which means you can let them run with In fact, defragmenting can little to no problem. Whether even cause a problem if you’re you shut down your computer using a solid-state hard drive nightly now just comes down (SSD). Not only do SSDs not to personal preference. If you have fragmentation problems, want your computer to do things the memory cells are only like backup, update or other good for a certain number of intensive tasks, you can schedule reads and writes. Running a them at night while you are not defragmenting program just using your system. wears out your drive faster.

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TECHNOLOGY 6. YOU CAN COMPLETELY WIPE 7. PRIVATE BROWSING IS TOTALLY You might be deciding between DATA PRIVATE a laptop with a 256-gigabyte Hopefully, you know that when Every web browser has a private solid-state hard drive and a 1 you delete a file from your mode. When private browsing terabyte conventional hard drive. computer it isn’t gone for good. mode is on, the browser won’t A 1TB drive is four times larger, It’s still hanging around on your record where you go and it but an SSD is much faster and hard drive waiting for another wipes most of the information more reliable. Plus, most people file to overwrite it. Until that someone using the computer rarely even fill up a 256GB hard happens, you can recover it. could use to piece together your drive. online travels. That’s a problem if you’re selling Similarly, you shouldn’t or giving away a computer; you In Microsoft Edge, Internet automatically buy the camera never know what information a Explorer, Firefox and Safari, you with more megapixels or the computer-savvy person can pull enter private browsing mode smartphone with the highestfrom the system. You need to using the keyboard shortcut resolution screen. In a camera, make sure the data is gone for CTRL + SHIFT + P (CTRL + OPTION image quality is as much about good, but how? + P on Mac). In Chrome, you use the size of the image sensor as CTRL + SHIFT + N (OPTION + the number of megapixels. In the olden days of magnetic SHIFT + N on Macs). Click here media with early hard drives and to learn more about private With smartphone screens, after floppy disks, waving a magnet browsing and how you know a certain point, you can’t tell over the drive or disk would do you’re in private browsing mode. the difference in resolution the job. However, modern hard What you might not know is that (and most high-end and middrives are much more resistant private browsing isn’t foolproof. range smartphones are past to magnetism, so that won’t It doesn’t hide your browsing that point). However, a higherwork. from your internet service resolution screen burns battery Wiping data from modern hard provider, the sites you visit or any life faster. drives can be accomplished in law enforcement that happens different ways. Learn the detailed to be watching. Copyright 2017, WestStar steps to wipe your computer or mobile gadget here. Ditto if there’s a logger on the Multimedia Entertainment. All computer or the router is set to rights reserved. If you’re really worried about record sites visited. Like most not erasing all important data things in tech, private only Learn about all the latest technology on the Kim Komando completely, you can keep your means that it’s harder to find. Show, the nation’s largest weekend gadgets at home and use them for other projects. You can also BONUS: MORE IS ALWAYS BETTER radio talk show. Kim takes calls remove your hard drive from This is a general myth that tech and dispenses advice on today’s the computer before giving it manufacturers love because it digital lifestyle, from smartphones away and store it, turn it into boosts sales. However, it isn’t and tablets to online privacy and an external drive, destroy it, or always true, and sometimes data hacks. For her daily tips, free newsletters and more, visit her make art with it. more can even hurt you. website at Komando.com June 2017

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NEWS Continued From Page 43

ZALMA the hands of a chiropractor, subjecting plenary licensees to his effective control through interconnected contracts and the imposition of the threat of substantial monetary penalties. Importantly, the plan sought to conceal those features to appear compliant. The scheme vested bare legal title in a physician. However, the physician, besides being subject to direction and financial control by a chiropractor-owner of a management company, in reality was a stranger to the medical practice and was not operationally in control, having been demonstrated to have “sold” her license to multiple practices utilizing the so-called “Doc-in-the-Box” structure in New Jersey and many other states. There was an abundance of proof that the contracts and penalties – imposed on the doctor named as nominal owner in title of this practice – placed control of the medical practice in the hands of a chiropractor. The lengths that defendants went to in shielding the true controller of this practice from view undermine any basis for interfering with the trial court’s 46

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assessment of the mixed question of fact and law that was presented to the court. Considering all of the circumstances involved in defendants’ interactions with Neuner, the trial court reasonably concluded that defendants knowingly assisted Neuner in violating the Board’s rules and submitting ineligible and fraudulent medical claims for reimbursement through that practice structure, contrary to law. Knowledge or a “knowing” state of mind for purposes of a statutory civil violation under the IFPA was inferred by the Supreme Court and, as a result, reversed the judgment in favor of Allstate. ZALMA OPINION The type of scheme defeated by this case was designed for the sole purpose of profiting from fraudulent claims made to insurers whose insureds had allegedly injured third parties. Allstate, and its persistent and effective counsel, defeated an insurance fraud scheme and may have deterred other chiropractors from entering into the scheme. The Supreme Court was careful to note this was not a criminal case but should have referred the parties to the Attorney General to prosecute the criminal provisions of the IFPA. Table of Contents

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NEWS LAAIA PARTNERS WITH HOLTZ CHILDREN’S HOSPITAL TO BETTER SICK CHILDREN’S QUALITY OF LIFE WITH A CREATIVE ARTS STUDIO LAAIA and Holtz Children’s Hospital will host a ribbon cutting ceremony on May 31st in honor of their new Creative Arts Studio for children.

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iami, FL: On Wednesday, May 31st, 2017 the Holtz Children’s Hospital honored the Latin American Association of Insurance Agencies for their support and gracious donation as they cut the ribbon for their newest space, a Creative Arts and Activity Studio.

arts like drawing, painting, and sculpture, and also boasts a miniphoto studio for portraits. Now, the kids will have access to Music Therapists who can help them cope with their medical conditions

the best available resources,” says LAAIA’s current President, Sebastian Rejon. “We are looking forward to its completion in the upcoming months!”

The Creative Arts and Activities Studio aims to help children cope with their medical conditions in a thoughtful, creative way— offering respite from difficult procedures like Bone Marrow and Organ Transplants, Cancer Treatments, and Trauma Injuries.”

In late 2015, LAAIA (the Latin American Association of Insurance Agencies) committed to raising $150,000 for the Child Life Services Department at Holtz Children’s Hospital to build a state-of-the-art Creative Arts and Activities Studio for the resident children. Roughly seventy pediatric patients reside at Holtz Children’s Hospital, many of whom are unable to go home for holidays or spend time with their families outside of the hospital. The Creative Arts and Activities Studio will be equipped with a fully functioning recording studio, a designated space for creative June 2017

via writing, producing, and sharing their music, collaborate with volunteer artists in a handson environment, and take pictures in a studio setting. “We are working very closely with the hospital’s construction and design teams on refining the details and ensuring this project offers the children at Holtz Table of Contents

The Creative Arts and Activities Studio aims to help children cope with their medical conditions in a thoughtful, creative way—offering respite from difficult procedures like Bone Marrow and Organ Transplants, Cancer Treatments, and Trauma Injuries.

About LAAIA: The Latin American Association of Insurance Agencies was founded in 1969 as “The Voice of Independent Insurance Agents.” We work to ensure a healthy insurance environment by providing continuing education, legislative advocacy, representation on national advisory councils, community outreach and the largest annual insurance convention and trade fair in South Florida. underwritersinsider.com

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