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IN THIS ISSUE September 2017 Vol 13 Issue 9 5

Speed Up Your Internet For Free Some of the most frequent questions we get are about computer or Internet speed. Seems lots of folks don’t care much for waiting, and waiting...

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It Doesn’t Pay To Run Before Trial Complete Chutzpah” is a Yiddish term that means unmitigated gall. The basic definition is a person who kills his parents then pleads for mercy because he is an orphan. To seek a new trial because he was a fugitive from justice is chutzpah.

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California Orders Investigation of Wells Fargo Unlawfully Signing Up Consumers California orders investigation of allegations Wells Fargo and National General Insurance unlawfully signed up consumers for forced-place auto insurance without the knowledge or consent of consumers

LAAIA 2017 Trade Fair Booth Images Now Online! The LAAIA trade fair is always a blast - this year’s 47th annual fair was not exception!

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Vertafore Bolsters Small Agencies With QQCatalyst Salesroom

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The Centralized Sales Management Tool Will Help More Than 3500 Small Agencies Grow Their Business in the Competitive P&C Insurance Market.

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Four Lifestyle Problem Solvers There’s nothing better than finding ways to ease and enhance our daily lives, so here are some helpful resources in this regard.

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Commissioner Jones’s attempt to dissuade insurance companies from investing in the coal industry is a deeply misguided overreach.

FTC Warns Hurricane Victims on Robocall Flood Insurance Scam The FTC is warning consumers about a flood insurance scam targeting those that have been affected by Hurricane Harvey.

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Miami Insurance Agent Arrested Following Assisted Living Facility Fraud Scheme. Florida announced the recent arrest of Juan Jose Castro, owner of JACM Construction Corp., after his alleged attempt to operate a shell company with the sole intent of circumventing the state’s workers’ compensation laws.

6 State Insurance Commissioners Demand CA Commissioner Jones Halt Leftist Political “Climate Change Initiative”

Misclassification of Employees As Independent Contractors, The Temptation & Consequences Employee or Independent Contractor? W4 vs 1099? Legal definitions aside, let’s talk about why so many are tempted to misclassify employees as independent contractors and possible consequences...

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Unbelievable Vintage Ads - Another In Our Series Of Ads From The 30s, 40s, 50s & 60s. There was a time in our history, apparently, when serious problems could be solved by just changing the shade of your lipstick!

PREFER TO READ OFFLINE? DOWNLOAD & VIEW PDF: HERE!


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The Advisor Addresses The Ordeal Of Buying A New Car... First, don’t hate the car salesmen. These poor folks are way down the foodchain in a dealership and have little power to either affect the price of the car you desire or the torture of the negotiations.

Texas Agent Gets 5-Year Sentence For Filing Fake Life Insurance Apps Investigators say Clark used the stolen identities of dozens of people in the San Antonio area to make fraudulent life insurance policies without their knowledge.

FTC Announces Plan To Combat Robocalls The robocaller phone numbers consumers provide will be released each day to telecommunications carriers for action.

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Georgia Insurance Agent Arrested For Fraud The Georgia Department of Insurance announced on August 24th the arrest of a Floyd County insurance agent on fraud charges related to the misappropriation of insurance premiums.

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NC Agent Accused of Embezzlement and Exploitation He is charged with eleven counts of obtaining property by false pretense and nine counts each of embezzlement and exploitation of an elder.

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Antifa: A Colossal Fraud

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Kim Komando Barry Zalma

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Inside Track

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Insider Advisor

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Classifieds

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Say What?

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Back Issues

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Advertising

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Georgia’s Insurance Commissioner Hudgens Announces He Will No Seek Re-election

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Beazley Expands Social Engineering Coverage A new excess policy for the US market that significantly expands the protection available

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So-called “anti-fascists” don’t comprehend that, so they label everything they dislike as fascist, and they are literally textbook fascists.

Hudgen’s Announcement came in the form of an open letter to the citizens of Georgia

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FEATURES

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N. Carolina Man Accused of Acting Without Agent License He is charged with two counts each of fraud and obtaining property by false pretense and an agent acting without a license.

Cover Photo Credit: Ron Manera, Jupiter Beach, Florida


SEPTEMBER 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

SPEED UP YOUR INTERNET FOR FREE

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Really Cool Info - by Kim Komando

ome of the most frequent questions we get are about computer or Internet speed. Seems lots of folks don’t care much for waiting, and waiting - and waiting some more - for the video to load, the movie to download or the upload to send. We don’t blame them.

If that’s not it, there’s other technical wizardry going on behind the browsing scenes that could be the culprit. There’s one thing in particular that can give your Internet a real speed boost

Every computer and mobile gadget has an IP address. This is what identifies it to other computers, and website servers are no different.

Who’s going to remember that?

Browsing the Web is as easy as opening your browser and typing in a Web address, like our site at komando.com. In seconds, you’re learning all sorts of great information or watching fun videos. Or, at least it should take only a few seconds.

SEPTEMBER 2017

DOMAIN NAME SYSTEM

Google.com’s IP address, for example, is “74.125.239.2”. If that isn’t hard enough to remember, newer IPv6 addresses look like this: 2001:db8::1234:ace:6006:1e”.

Even now, sometimes the Internet can seem horribly slow. But before you commit to paying your Internet provider for a faster connection, let’s see if we can help you speed up the connection you have right now.

Of course, sometimes it takes longer than we’d like to pull up a website. There are plenty of reasons for slowdowns. It could just be you aren’t getting the Internet speed your provider promised. Click here to see if that’s the case.

explanation.

with little effort.

That’s why websites also have more recognizable names, like komando.com. A DNS, also called a nameserver, is like the phone book of the Internet. It turns the memorable names that you use into those complicated IP addresses that computers use.

When you sign up for Internet, your We’re talking about your DNS, or provider assigns you to its DNS Domain Name System. If you’re a server. However, that isn’t always longtime reader, you’ve probably the best one to use. It could be heard the term before. But for everyone else, here’s a quick See Kim Komando Pg 43 Table of Contents

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INSURANCE & THE LAW

IT DOESN’T PAY TO RUN BEFORE TRIAL COMPLETE Expert Analysis & Commentary by Barry Zalma, Esq., CFE

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egardless of the public’s belief, insurance fraud is a serious crime. Perpetrators of insurance fraud think, perhaps because of its reputation, that the crime is not serious enough to be exposed to a major jail sentence. They are wrong.

of his rights that occurred after he absconded during the middle of his trial. He also argues that he is entitled to a new trial based upon the absence of a complete trial transcript.

sentenced Worthen to serve a total of 27 years.

On April 14, 2015, a different judge signed an order prepared by Worthen’s counsel which granted his request for a transcript at public expense. The first sentence of Join Barry Zalma’s Blog: the order incorrectly stated that http://www.zalma.com/blog Worthen “continues to be indigent In Worthen v. The State, and incarcerated after being A17A0949, SE-029C, Court of sentenced by this Court on April Appeals of Georgia (August 3, 6, 2015,” when in fact Worthen FACTS 2017) the Court of Appeal of “remained an unapprehended Georgia was faced with an appeal The record shows that Worthen’s fugitive until May 1, 2016 – by Tobias Worthen who sought trial began on March 31, 2015, more than a year following his to set aside his convictions for with a senior judge presiding. On conviction.” (Emphasis supplied.) insurance fraud, two counts of the fourth day of trial, Worthen The order was entered because theft by deception, making a failed to return to court, and the the judge was not advised that false statement, and false report trial court issued a bench warrant Worthen was a fugitive. for his arrest. The trial continued of a crime. in his absence, and the jury found After learning that Worthen had Worthen, in an amazing him guilty of all charges. absconded during a trial over expression of legal chutzpah which the senior judge had complains about various waivers On April 6, 2015, the senior judge presided, the judge set aside her

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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order granting a transcript and Commonly known as the denied a subsequent request by “fugitive disentitlement Worthen for a free transcript. doctrine,” this equitable doctrine limits access to courts On May 25, 2016, the trial court by fugitives from justice. Aside held a status conference in from the difficulty of enforcing which counsel for both parties a judgment against a fugitive, and Worthen were present. In other rationales underlying the this conference, the trial court doctrine include promoting “informed the parties that it the efficient operation of the appeared that the Defendant’s courts, discouraging flights from Motion for New Trial was subject justice, and avoiding prejudice to dismissal due to its having been to the other side caused by the filed while the Defendant was a appellant’s fugitive status. fugitive.” Worthen contends that there was no valid waiver of his right to be present at sentencing, arguing that the State failed to prove a valid, intelligent and knowing waiver. In Worthen’s view, the State must prove that he knew he was waiving his right to be present at sentencing if he absented himself from the trial. DISCUSSION

Chutzpah” is a Yiddish term that means unmitigated gall. The basic definition is a person who kills his parents then pleads for mercy because he is an orphan. To seek a new trial because he was a fugitive from justice is chutzpah. He received and deserved the sentence he received and will serve, hopefully, most of the 27 years he was sentenced to serve.”

It is well-established that if a trial has begun in the defendant’s presence and he voluntarily absents himself, this does not nullify what has been done or prevent the completion of the trial, but, on the contrary, operates as a waiver of his right to be present and leaves the court free to proceed with the trial in like manner and with like effect as if he were present. SEPTEMBER 2017

explained over a century ago, ‘a fugitive defendant does not have a right to appear by counsel until he has returned into custody.’” Additionally, no due process violations are implicated in dismissals under this doctrine. See Goeke v. Branch, 514 U. S. 115, 118-119 (115 SCt 1275, 131 LEd2d 152) (1995); Allen v. Georgia, 166 U. S. 138 (17 SCt 525, 41 LE2d 949) (1897); Brown Ricketts, 235 Ga. 29 (218 SE2d 785) (1975).

Georgia law is clear that where a defendant becomes a fugitive before filing any post-conviction motions and then remains a fugitive during the time in which he could assert such a motion, he waives his right to seek postconviction relief. The Supreme Court of Georgia Table of Contents

The fact that Worthen was captured before the trial court dismissed the motion for new trial filed by his attorney does not preclude its application. Worthen waived his right to seek a new trial because he remained a fugitive during the entire time in which he could have filed a motion for new trial. ZALMA OPINION

“Chutzpah” is a Yiddish term that means unmitigated gall. The basic definition is a person who kills his parents then pleads for mercy because he is an orphan. To seek a new trial because he was a fugitive from justice is chutzpah. He received and deserved the sentence he received and will serve, hopefully, most of the 27 years he was sentenced to serve. underwritersinsider.com

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LIFE INFO

4 LIFESTYLE PROBLEM SOLVERS There’s nothing better than finding ways to ease and enhance our daily lives, so here are some helpful resources in this regard. perspective to those struggling with this condition. It’s is the only global non-profit organization The International Hyperhidrosis dedicated to improving the lives Society – www.SweatHelp.org of those affected, while also irst I want to address the supporting healthcare providers problem of excessive and researchers. sweating, a serious medical condition called hyperhidrosis From their web site, SweatHelp. affecting both kids and adults. org, you’ll find information Research shows that nearly 5 on comprehensive treatment percent of the population— options, U.S. insurance codes, approximately 367 million people- clinical trials, a physician finder, a -are struggling with extreme useful award-winning blog, and or uncontrollable sweating— much more. There’s also amazing be it on their hands, feet, face, product discounts on useful torso or lower extremities. From sweat-management products. stress and embarrassment to depression and isolation, “Heart Smart for Women, Six hyperhidrosis takes its toll; but Steps in Six Weeks to Heartthere’s help! The International Healthy Living” book – www. Hyperhidrosis Society provides Amazon.com support, resources and expert By Merilee Kern, ‘The Luxe List’ Executive Editor

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peaking of feeling well, next is the “Heart Smart for Women, Six Steps in Six Weeks to Heart-Healthy Living” book. You’re never too young or too old to get on the road to heart health so, in it, female cardiologists Jennifer Mieres and Stacey Rosen provide a comprehensive, easy-tofollow roadmap helping women take responsibility for their heart health and become their own health advocates. It’s written to help educate women of all cultures and backgrounds about risk factors that females have; how to determine one’s individual risk -- along with a personalized risk assessment -and how to start making small changes in the five identified areas to promote a longer, healthy

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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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LIFE INFO life. Heart disease is preventable and treatable—this book will teach you how to keep this organ healthy. HealthyWage Weight-Loss Wagering www.HealthyWage. com

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Image Credit: Creative Commons

or those looking to shed a few pounds, recent studies have shown money is an effective motivator to “increase both the magnitude and duration of weight loss.” So many individuals and employee groups have turned to HealthyWage--the leading provider of money–driven diet challenges. Known for pioneering innovative, weight loss contests and programs, HealthyWage provides cash incentives along with social and expert-based support, tools, resources, and goal-setting and tracking technologies to foster participant success. More than 200,000 participants have collectively lost over 10 million pounds, and earned over $5 million in cash prizes for their pound-shedding success. View success stories online at healthywage.com. “20 Retirement Decisions You Need to Make Right Now” book – www.Amazon.com

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inally, those ready to retire can foster financial health with the book,

SEPTEMBER 2017

Lifestyle: Some Tips On Getting It Right!

“20 Retirement Decisions You Need to Make Right Now” authored by Ray LeVitre -- a Certified Financial Planner with nearly twenty years of financial services experience. It covers key financial decisions to make during that critical period transitioning from the workforce into retirement. The decisions you make at this dicey and vital juncture—many of which are permanent—will profoundly affect your financial security and your lifestyle for the next 30 to 40 years. Table of Contents

While there are thousands of retirement books focused on helping boomers manage their money in the years leading up to retirement, this is the only book written specifically for those retiring now. Inside are twenty major financial decisions profoundly impacting your lifestyle over the decades ahead. This expert, commission-free advice explains how to manage assets and prepare for the best possible retirement. underwritersinsider.com

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NEWS

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NEWS

CALIFORNIA ORDERS INVESTIGATION OF ALLEGATIONS WELLS FARGO AND NATIONAL GENERAL INSURANCE UNLAWFULLY SIGNED UP CONSUMERS

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ACRAMENTO, Calif. - consumers were affected by and seek corrective action and Commissioner Dave Jones improper placement of force or penalties in the event that today ordered the California lender-placed auto insurance California's consumer protection Department of Insurance to laws were violated." open an investigation into California orders recent allegations that Wells Force-placed or lenderinvestigation of allegations Fargo and National General placed insurance refers to Insurance improperly Wells Fargo and National General insurance a lender requires charged consumers for borrower to purchase by Insurance unlawfully signed up asigning "force-placed" or "lenderup the borrower for placed" auto insurance for consumers for forced-place auto the insurance to cover the consumers who had auto vehicle in case the borrower insurance without the knowledge loans with Wells Fargo. fails to get their own or consent of consumers.� insurance or allows their In a July 27 news release, auto insurance to lapse. Wells Fargo admitted the company failed to properly manage the program and announced the company was taking steps to refund and compensate consumers affected by the improperly placed insurance and assisting with correcting those consumers' credit reports, which were negatively impacted by the force or lender-placed insurance. "These most recent revelations by Wells Fargo are particularly troubling," said Commissioner Jones. "The department will investigate fully to determine the extent to which California SEPTEMBER 2017

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THE LAAIA 2017 TRADE FAIR BOOTH IMAGES ARE NOW ONLINE! CLICK IMAGE BELOW TO VIEW


NEWS

VERTAFORE BOLSTERS SMALL AGENCIES WITH QQCATALYST SALESROOM

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ENVER – August 8, 2017 – Vertafore®, the leader in modern insurance technology, today announced Salesroom for QQCatalyst®, the agency management system used by more than 3,500 small agencies to increase revenue while becoming more efficient. Salesroom is a management tool fully integrated within QQCatalyst for agents to visualize and oversee the company’s entire sales operation and pipeline, identify new business prospects, strengthen relationships, and capitalize on cross-selling opportunities within the existing customer base. Salesroom is available immediately to all QQCatalyst customers.

commoditized, identifying new opportunities and rounding out accounts is critical for agency growth.

The Centralized Sales Management Tool Will Help More Than 3500 Small Agencies Grow Their Business in the Competitive P&C Insurance Market.” “Independent agencies, especially the smaller businesses, have limited resources to compete for customers in a highly dynamic property and casualty insurance market,” said Sharmila Ray, senior vice president, product and strategy at Vertafore. “We developed Salesroom and integrated it within QQCatalyst to help these agencies better manage their opportunities, strengthen customer relationships, and ultimately help them grow efficiently and profitably.”

Sales and customer relationship management (CRM) systems are quickly becoming one of the most essential technologies for an agency, directly impacting the success of the business. According to The State of Techsurance report, agencies that incorporate CRM tools are twice as likely to have a more effective sales process than those that don’t, resulting in an increase of 43 percent more policies Agencies will use Salesroom for sold per producer. traditional sales and CRM functions, such as reviewing existing sales As personal lines become more opportunities, as well as advanced 14

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functions, like identifying trends in opportunities over time. As a result of the comprehensive integration with QQCatalyst, interactions within the management system will be reflected in the Salesroom and vice versa, eliminating double data entry while protecting data integrity, a common issue when using separate systems. Performance will improve as sales and customer service teams work together to track team and individual goals across various metrics important to each distinct business. Every day, thousands of insurance agencies, carriers, MGAs, MGUs, and 22 states use Vertafore to grow their business. QQCatalyst is the innovative and customizable agency management system from QQSolutions, a division of Vertafore dedicated to helping smaller agencies increase revenue and retention while becoming more productive and efficient. To learn more about Salesroom for QQCatalyst, visit http://www. qqsolutions.com/. About Vertafore Vertafore’s comprehensive insurance management software SEPTEMBER 2017


NEWS solutions allow brokers and carriers to adapt to the evolving insurance industry by efficiently scaling their businesses through deeper access to information and insights. The Vertafore platform features fast innovation, partnerships with the best technology companies, and customizable solutions to help companies remain independent during a time of industry disruption.

As the leader in modern insurance technology with the largest customer base in the industry, Vertafore connects every point of the distribution channel, from agencies and carriers to MGAs, MGUs, and state governments. For more information about Vertafore, visit www.vertafore.com, read the company’s blog, and follow the company on Twitter, LinkedIn, and Facebook.

FTC WARNS HURRICANE VICTIMS ON ROBOCALL FLOOD INSURANCE SCAM

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he Federal Trade Commission is warning consumers about a flood insurance scam targeting those that have been affected by Hurricane Harvey. According to the Federal Emergency Management Agency (FEMA), homeowners and renters are getting fraudulent robocalls telling them their flood premiums are past due.

1-866-720-5721. Also report it to the FTC. Your reports help the FTC and other law enforcement agencies bring scam artists to justice and put an end to unfair and misleading business practices. For information about how to help victims, and for dealing with and recovering from the storm, read FTC Advice for Helping Hurricane Harvey Victims.

Don’t respond to these robocalls. If you have flood insurance and you’re not sure what to do, read this FTC blog post: Hurricane Harvey scams: Callers lie about flood insurance. If you suspect fraud, call the FEMA Disaster Fraud Hotline toll free at SEPTEMBER 2017

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (3824357). ress releases for the latest FTC news and resources. Table of Contents

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!

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NEWS

MIAMI INSURANCE AGENT ARRESTED FOLLOWING ASSISTED LIVING FACILITY FRAUD SCHEME

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IAMI, Fla. – Chief Financial was attempting to help Mora Officer Jimmy Patronis obtain a lower insurance premium. and the Department As a result of Estevez’s actions, Citizens Property of Financial Services (DFS) Insurance lost today announced the $1,536.00 in recent arrest of insurance underpaid agent Claudia Estevez and premiums. In Ariel Mora following an addition, any investigation led by DFS’ future claims Bureau of Insurance Fraud. against Mora’s ALF policy would In an alleged attempt to have been denied evade a higher insurance Jimmy Patronis due to inadequate premium for his assisted Florida CFO insurance coverage. living facility (ALF), Estevez aided Mora by helping him submit a fictitious insurance application Investigators arrested Estevez allowing Mora to fraudulently August 9, 2017 and charged her obtain a less expensive, inadequate with insurance fraud, grand theft and organized scheme to defraud. insurance policy. Estevez was transported to Turner Investigators believe Mora Guilford Knight Correctional Center completed a residential home without incident and is being held owner’s insurance application with a $15,000 bond. If convicted, indicating the structure he was insuring was not being used for business or commercial purposes. Estevez authorized the application allowing Mora to purchase a home owner’s insurance policy instead of obtaining a commercial insurance policy for his ALF, as required by Florida law.

she could face up to 15 years in prison. Investigators arrested Mora May 24, 2017 and charged him with insurance fraud and grand theft. Mora was transported to Turner Guilford Knight Correctional Center and is being held with a $10,000 bond. These cases will be prosecuted by the Miami-Dade State Attorney’s Office. If convicted, he could face up to 10 years in prison. ALF’s are long-term care residences that offer various services such as health and medicine management, transportation and meal services in an effort to support seniors and developmentally or physically disabled members of our local communities.

DFS’ investigation went on to reveal Estevez knew the property was intended to be an ALF and 16

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NEWS

WORKERS’ COMP SCAM LEADS TO ARREST OF MIAMI CONSTRUCTION COMPANY OWNER

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ALM BEACH, Fla. – Chief Financial Officer Jimmy Patronis today announced the recent arrest of Juan Jose Castro, owner of JACM Construction Corp., after his alleged attempt to operate a shell company with the sole intent of circumventing the state’s workers’ compensation laws. A “shell company” is an entity that conducts no significant business operations and can be used as vehicle to conduct fraudulent financial transactions, such as workers’ compensation fraud.

The transaction involved Castro, the president and sole registered agent of JACM, cashing 27 business to business checks totaling $127,025.37. This single transaction surpassed Castro’s estimated yearly payroll.

nearly $300,000 payments.

in

premium

Castro was arrested August 11, 2017 in Palm Beach County by the Bureau of Workers’ Comp Fraud in conjunction with the BSO Money Laundering Task Force and BSO

Castro obtained a workers' compensation policy for JACM Construction Corp. April 25, 2017. When obtaining the policy, Castro provided his business operated with an estimated annual payroll of $112,000.00 for work Corporate Record Of Alleged “Shell Company” classified under the description of wallboard installation and Through further investigation, it Workers’ Compensation Fraud carpentry. was found that from February 12, Task Force. He has been charged 2016 to August 6, 2017, Castro with workers’ compensation The Department of Financial cashed more than $8.4 million in premium fraud, a first-degree Services’ Bureau of Workers’ payroll at various MSBs in Florida. felony, and is being held with a Comp Fraud along with the Had Castro accurately provided $100,000 bond. Broward Sheriff’s Office (BSO) the amount of payroll that would was conducting a surveillance be transmitted by his company, This case will be prosecuted by operation at a Vero Beach money Castro’s yearly premium would the Miami-Dade State Attorney’s service business (MSB) when a have been $424,314.00. As a result Office, 11th judicial circuit. If suspicious transaction for JACM of his actions, Castro defrauded his convicted, Castro could face up to Construction Corp. was identified. insurance company by avoiding 10 years in prison. SEPTEMBER 2017

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NEWS

SIX STATE INSURANCE COMMISSIONERS DEMAND CALIFORNIA COMMISSIONER JONES HALT HIS LEFIST POLITICAL “CLIMATE RISK CARBON INITIATIVE”

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ISMARCK, N.D. – not meant to make politically- a press release in January 2016, in Insurance Commissioner motivated decisions that which he called for all insurance Jon Godfread, along alienate insurance companies companies doing business in with commissioners from and undermine our authority to California, including out-ofAlabama, Indiana, Kentucky, credibly regulate this industry.” state companies, to voluntarily Montana and Oklahoma, sent a divest from their investments in letter Tuesday to California coal. Complying with the Commissioner Jones’s Commissioner Dave Jones initiative includes making expressing their concern no new investments, not attempt to dissuade for his Climate Risk Carbon renewing any existing insurance companies from Initiative and asking that investments, and selling investing in the coal industry is he cease it immediately. or withdrawing from The letter stated that a deeply misguided overreach,” existing investments in the initiative substitutes coal. In last year’s press Godfread said. “Our job as traditional insurance release, Jones stated insurance commissioners is to solvency regulation with that his decision to ask a narrow political agenda companies protect consumers and serve the insurance that places politics above to divest from coal greater public interest through the sound regulatory practices. arises from his statutory effective and unbiased regulation responsibility to ensure “Commissioner Jones’s of the insurance marketplace. We that companies address attempt to dissuade potential financial risks in are not meant to make politicallyinsurance companies the reserves they hold to motivated decisions that alienate pay future claims. from investing in the coal industry is a deeply insurance companies and misguided overreach,” Today’s letter to Jones undermine our authority to credibly Godfread said. “Our job as refutes the initiative insurance commissioners stating that, “Coal is and regulate this industry.” is to protect consumers will remain an affordable and serve the greater public The letter comes in response and reliable source of energy. interest through the effective to Commissioner Jones’s In the next 10 to 20 years, and unbiased regulation of the enforcement of the Climate Risk insurance marketplace. We are Carbon Initiative he introduced in See Jones Taken To Task Page 23

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(800) 229-2009 ext 3 Mention code UWI sales@accuagency.com Request more info at http://accu.agency/UWI Table of Contents

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THE INSIDE TRACK - BREAKING NEWS ACCIDENTAL DATA LOSS GREATER THAN RANSOMWARE THREAT

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ccording to a report from Beazely, a cyber risk insurer that has been collecting data since 2014, accidental breaches resulting from employee error or 3rd party error accounted for 30% of all breaches. Hacking, phishing and malware intrusions (of which ransomware is a subset) resulted in a total of 32% of all breaches. IBM reported in 2016 that the average data breach cost $4 million and that the average individual lost or stolen data record cost a loss of $158.

and oldest brick and mortar stores, including retail icons Sears, J.C. Penney, Dillards, Kohls and Macys. According to BC Capital Markets analyst Brian Tunick, “These are beaten up, hated names. They missed out on the entire market rally this year. Investors are just figuring out who’s going to survive.” Some retail outlets such as T.J. Max, Ross, Homegoods and Marshalls have weathered the storm quite well with a different strategy. These outlets have bought up merchandize others have not been able to sell - and at a deep discount - and have watched revenues and stock values rise significantly.

RYAN SPECIALTY COMPLETES PURCHASE OF N-SURANCE OUTLETS

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HICAGO, IL – Ryan Specialty Group, LLC, is pleased to announce today the completion of the acquisition of the assets and operations of N-Surance Outlets (NSO), a wholesale insurance brokerage and binding authority operation headquartered in Roswell, GA. The acquired business is a part of R-T Specialty, LLC (RT Specialty), the wholesale brokerage unit of Ryan Specialty Group (RSG). The transaction was previously

SEARS, J.C. PENNEY, DILLARDS, KOHLS, MACYS - WHO WILL SURVIVE?

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etail analysts are watching the death of retail buying as Amazon grows and making dire predictions on some of the nations largest 20

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Image Credit: Creative Commons

THE INSIDE TRACK - BREAKING NEWS announced on July 24, 2017. N-Surance Outlets specializes in commercial P&C, transportation, and garage risks and was founded in 1985 by Gregory K. Murrey. Over these 30+ years, NSO has consistently focused on these lines of business and currently services over 1,000 agents in the Southeast. Jason Murrey, President of NSO, and his team will continue to service and expand their client base from RT Specialty. Jason Murrey can be reached at: Jason. Murrey@rtspecialty.com, 678-987-4904. Editor’s Note: Greg Murray met a tragic end on August 29th, 2015 as he fell 40’ to an untimely death from a railing at Atlanta’s Turner Field while standing to boo Alex Rodriquez at bat. Murray was standing in the second row back from the rail, lost his footing, fell over the 1st row and then over the 30” railing. Murray’s family would later file suit against the Braves citing negligence in allowing a 30” railing when the industry standard was 42”. The result of that suit is unknown. SEPTEMBER 2017

of collusion between the USG ANNOUNCES PROMOTION FOR IRVINE, CA plaintiffs and “a trust set

up for creditors of “old GM,” which holds many liabilities predating the automaker’s 2009 bankruptcy,” and that “the settlement was a result of collusion between the plaintiffs and the trust, and “a complete surrender and sellout using new GM’s money.” GM will fight the settlement.

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SG is pleased to announce the promotion of Dave Roy to Producer/Broker in USG’s Irvine, CA office. He formerly held the title of Associate Producer/Broker. Dave will continue building his book of business and agency retail network. Dave joined USG in 2016 as Associate Producer/ AMTRUST ADDS Broker. He holds a Bachelor’s GORELIK AS COO degree in Economics from California State University. mTrust Financial Since he’s been with USG, Services, Inc. Dave has worked diligently (the and consistently to earn his (Nasdaq:AFSI) “Company” or “AmTrust”) promotion. today announced that Ariel Gorelik, an experienced GM DECIDES TO FIGHT global insurance industry $1B IGNITION SWITCH executive and most recently SETTLEMENT Chief Operating Officer of AmTrust’s AMT Warranty hile a group of division, has been appointed plaintiffs have divided Senior Vice President and up the potential winnings Chief Information Officer in a faulty ignition switch (CIO), reporting to Chairman lawsuit against GM, the and Chief Executive Officer company says, “Hey - not Barry Zyskind. Mr. Gorelik so fast!” According to a succeeds Christopher Longo Reuters report, GM lawyer who continues as EVP. Richard Godfrey said the settlement was a result

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NEWS

CALIFORNIA: NINE SENTENCED IN $500,000 AUTO INSURANCE FRAUD RING

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ACRAMENTO, Calif. – In one of the larger auto insurance fraud cases in the Sacramento region, Michael Charles Young, 30, of Sacramento, the leader of a large auto insurance fraud ring was sentenced recently to more than 10 years in state prison for bilking insurance companies out of an estimated $500,000 by filing fraudulent insurance claims.

enforcement partners and district attorneys are critical to eradicating insurance fraud.” An investigation by detectives with the California Department of Insurance and the California

Detectives are seeking three atlarge suspects with outstanding warrants and asking for the public’s help finding them— Jazlyn Ladana Burrell, 20, of Vallejo; Lavina Louise Nunally, 26, Highway Patrol (CHP) uncovered and Desiree Patricia Vasquez, 22, evidence Young and several both of Sacramento. co-conspirators filed multiple insurance claims totaling an “California is ground zero for estimated half a million dollars auto insurance fraud and every after crashing cars into each other policyholder pays for these crimes or filing claims on vehicles with through higher auto insurance existing damage—known as rates,” says Insurance Commissioner paper collisions. The case is being Dave Jones. “This organized crime prosecuted by the Sacramento ring was brought down by the County District Attorney’s Office. hard work of our detectives and the California Highway Patrol. Our According to detectives, Young’s investigative partnerships with law ring operated in the Sacramento 22

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area between 2014 and early 2016 filing dozens of claims ranging between $5,000 and $40,000 with a number of insurance companies. “I am proud of the hard work by our investigators to help bring these criminals to justice,” CHP Commissioner Joe Farrow said. “However, with some suspects still at large, we ask the public’s help to find and arrest them and conclude the case.” In most cases, false identities were used to register and insure the vehicles used to file claims and accomplices were provided scripts to use when communicating with insurers. Some defendants allowed their identities to be used for compensation and then cashed checks issued in their names. The ring grew as friends and family members were recruited. Young was arrested in April 2016, and charged with numerous felonies, including insurance fraud, possession of stolen vehicles, identity theft, and possession of firearms by a convicted felon. SEPTEMBER 2017


NEWS

Continued From Page 18

CALIFORNIA INS. COMM. JONES TAKEN TO TASK coal’s value is likely to grow, as advanced technology, including carbon capture, will continue to meet our nation’s growing need for energy, while also reducing emissions.” Jason Bohrer, President and CEO of the Lignite Energy Council, said the council appreciates SEPTEMBER 2017

the efforts of Godfread and the continues to look bright. As other signatories to the letter. such, the divestment movement is short-sighted, irresponsible “The lignite industry has economic policy that increases invested over $18 billion in the risk and financial exposure.” state to provide affordable and reliable power to two million The letter to Jones concluded customers across the upper by asking the Commissioner Midwest,” Bohrer said. “Industry to end the Climate Risk partners in North Dakota are Carbon Initiative and instead, currently working on new near encourage companies doing zero-emission technologies that business in California to shape will maximize potential for the their investment strategies in world’s second largest lignite accordance with the laws and coal reserve – over an 800-year regulations set out by their supply at current consumption. accredited domestic regulators. The future for coal in North Dakota and across the country Click here to read the letter. Table of Contents

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ANALYSIS This Month’s Workers’ Comp Fraud Analysis Sponsored By MyPEOAgency.

MISCLASSIFICATION OF EMPLOYEES AS INDEPENDENT CONTRACTORS, THE TEMPTATIONS AND THE CONSEQUENCES. By Michael Speizman

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mployee or Independent Contractor? W4 vs 1099? Legal definitions aside, let’s talk about why so many are tempted to misclassify employees as independent contractors and possible consequences... 1st some numbers on why this is so attractive: John and Peter both get jobs painting homes, John is paid as an employee by his “boss” , Peter is paid as a 1099 by his “boss.”

Cost To Employer For Employee Worker vs Independent Contractor To Net $100 Per Day Cost of John as Employee

Cost of Peter as Ind. Contractor

FICA

6.2%

0%

Medi

1.54%

0%

SUTA

2.70%

0%

FUTA

.60%

0%

Workers’ Comp

12.63%

0%

Total

23.58%

0%

Cost in Dollars $135.94 $100.00 For the sake of brevity, let us assume that each worker wants to go home with $100.00 per day. How much The example above understates the advantage of will they each cost their “bosses.” paying cash (1099) as John would need to make The temptation, cheaper labor makes you very another $10.00 a day to net an even $100.00. We also don’t include other costs like payroll companies, competitive. keeping paperwork on file, buying insurance etc. So the total cost to pay John as an employee and Peter as a 1099, with both of them getting $100.00 at the end of the day is: John (W-2) $135.94 - Peter (1099) $100.00

About The Author: Michael Speizman is a voting member of the Florida Workers Compensation Fraud Task Force. Michael has over 25 years’ experience with Employee Leasing and Professional Employers Organizations as both an owner and broker. He is an experienced HR Outsourcing consultant with My PEO Agency. Michael’s specialties include Blue Collar Industries, JUA, Staffing, Transportation and hard to place risks of all sizes. 24

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SEPTEMBER 2017


SO in the above situation, John’s boss has to charge their customer at least $135.94 per day in order to place one worker (John) on site. However, Peter’s boss can place a worker on the job site for only $100.00 per day. Multiply by the number of work days needed to complete a job, you can see the huge advantage Peter’s boss has over John’s boss.

End of Year Tax Consequences John’s taxes on $28,600

Peter’s Taxes on $26,000

FICA

$1,773.20 (already withheld)

$3,224

Medi

$ 414.70 (already withheld)

$ 754

-0-

-0-

Fed. Inc. Tax

and Medi taxes paid by his employer and his share has been deducted and remitted to the IRS by his employer throughout the year. Peter meanwhile owes $3978.00 in Social Security taxes alone.

So there is the temptation, assuming Peter doesn’t get hurt on the job, Peter’s boss can bid 30% less for labor and still have a higher profit margin than Does anyone reading this know anybody who makes John’s boss. If Peter does get hurt, Peter’s boss can $500.00 per week as a laborer who thinks ahead to follow a few more underhanded routes which I will save up 15.30% of their income to pay taxes? (Has save for a future article. just shy of $4000.00 in the bank so he can ink a check to the IRS?) So what happens at the end of the year when John and Peter go to do their taxes? In this example, John and Peter go to do their taxes at the end of the year. John has had half of his FICA SEPTEMBER 2017

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UNBELIEVABLE REALLY SMART BLACK VINTAGE ADS WOMAN: “I DON’T CARE ABOUT CHARLOTTESVILLE!” othing illustrates the

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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.

CANDACE OWENS: HOW TO ESCAPE THE DEMOCRAT PLANTATION: (AN EASY GUIDE)

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here was a time in our history, apparently, when serious problems could be solved by just changing the shade of your lipstick - because what man would want to kiss a woman whose lips were “too red and smeary?”

FREE! JOIN MY NETWORK!

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SEPTEMBER 2017


“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.

Something I hate to do...

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have to do something next month I hate to do: Buy a car. It’s not that I don’t like a new car, it’s just that the process of negotiating the price is so painful and I always feel like I’m being manipulated and ripped off and as a woman with little mechanical experience I feel especially vulnerable. I was hoping The Advisor had some tips! J.R. Columbia, S.C.

ADVISOR

that just might glide you The salesmen have strict through the tribulation and procedures to follow, carefully save you some money. designed by the dealership to separate you from your First, don’t hate the car hard-earned money. You salesmen. These poor folks are may communicate via the way down the food-chain in a salesman, but it is the sales dealership and have little power manager that you are really to either affect the price of the negotiating with. car you desire or the torture of the negotiations. Understand that there is a small margin of profit on new On most sales their commission cars if you are looking at the may not even exceed $150 on invoice to the dealership vs the sale of a $35,000 vehicle. the sales price. The dealership The sales staff theoretically earn a percentage of the profit makes most of their money on the sale - but that number on 1) stealing your trade, 2) is carefully stroked by the financing, 3) add-ons, 4)dealerdealership and almost always holdbacks (bonuses paid to the dealer by the manufacturer), 5) remains low. dealer fees and 6) service.

The process of buying a new car is slowly improving in America, yet it maintains a reputation so awful that many folks would prefer to pass a kidney stone or suffer a root canal than sit through a typical car purchase ordeal - which can last an entire day - or longer. Yet The Advisor does have a few tips, gleaned from professional car salesmen 28

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SEPTEMBER 2017


Flat refuse to pay the dealer Check Kelly Blue Book (www. fee - which can run from $799 kbb.com) for that value. to $999 at most dealers. It’s Arrange your own financing nothing but additional profit. through your bank if possible. If you hold out long enough, Once you’ve agreed on a and threaten to walk, they purchase/trade price, you will will almost always remove it. be shuttled to a sharp toothed, smiling lizard called an F&I guy. If you can buy the car at He will attempt to arrange invoice (demand to see it!) your financing, sell you a bunch and reduce or eliminate of unnecessary add-ons (fabric those first 5 items above - protection, security etching, you’ve probably made a hell extended warranty, etc.) and of a deal. Here’s how you do complete the sale paperwork. it: Dealerships often make more The car salesmen is trained money by bumping the interest to do a walk-around on your rate on your financing than trade, touching every blemish they did selling the car. If you or scratch, and sadly shaking don’t have your own financing, his head - so you are prepared you can often negotiate your for his low-ball trade offer. interest rate down several Ignore this act and demand a points. fair trade price. Important: BUY NOTHING SEPTEMBER 2017

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FROM THE FINANCE/ INSURANCE GUY unless it’s competitive, negotiated financing. Everything else they are selling is usually market up a thousand percent. One more tip: Try Truecar.com or Costco buyer service for a better deal with less effort. Dealers often hate these programs because they often save you more money than you could negotiate yourself - but they feel they are forced to use them to move inventory. You still have to watch out for the money traps outlined above. Still hate the process? Remember: You may be saving $500+ per hour for your efforts! Where else is your time worth that kind of money? underwritersinsider.com

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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.

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

Help us expand our Agency (From Home)!! We are seeking an energetic professional to work parttime 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 us today with the following link http://apply. harvardbenefits.com/269541 16-10

FREE CLASSIFIEDS! HELP WANTED — POSITION WANTED 4 — SALE ITEMS

CLICK HERE! 30

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

Experienced CSR Wanted - Broward Co.

Join our team... A & H Insurance is looking to hire a motivated team member to quote, write & service new & existing customers. Must have active 440 License (we will pay the pre-licensing course for the right candidate) Bilingual a must! Fax resume to:954-251-1423 or email: darlene@autohomeins. net 16-7

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Looking for inside / outside lic. experienced sales rep. Must know QQ/QF, Semcat and other software packages. Efax resume to 561-829-2055. Great office. 16-11

Regional Outreach Coordinator wanted

Looking for professionals who would like to help individuals save on their monthly prescription cost on average 15% for brand name and 55% on generic, while earning a residual income. loucei@msn.com 16-7

2-20/4-40 COMMERCIAL LINES MIAMI DOWNTOWN LOOKING FOR A 2-2O OR 4-40 TO HANDLE COMMERCIAL LINES WITH 1 YEAR EXPERIENCE, PERSONAL LINE KNOLEDGE APPRECIATE , NEED TO SPEAK AFLUENTLY ENGLISH AND SPANISH, WITHOUT PROBLEM TO WORK IN DOWNTOWN MIAMI SEND RESUME DOLORES@JONRAYINSURANCE.NET PH: 305-883-4604 16-9

Field Underwriter As a field underwriter, your job is to meet prospects who have responded to a direct mail campaign asking for more information on our products. When you meet with them you will be determining their eligibility for our products and helping them decide what is best for them. There is no cold-calling required as you are Reply with resume to for immediate consideration with same day response. fieldunderwritersfl@gmail. com 16-10

SEPTEMBER 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 property commercial risk including acords, loss runs, etc. Pls email resume to: jonathandrausch@hotmail.com 16-11

Medicare Supplement Agents Wanted. Tampa and Tri-County Area No sales experience required, will train upon appointment. Need Health and Life License.Great Commissions with 'A'rated Company. Many other insurance products to offer with this great company. Commissions are paid for life and transferable to beneficiaries. Please contact: Charlotte T. Kocian - GA email: agent.char@yahoo.com

BROWARD COUNTY ENTRY LEVEL ACCOUNT MANAGER 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

16-9

Licensed Sales Producers - Norcross Norcross based fast-growing Insurance Agency needs Licensed Sales Producers in GA, FL TN SC NC TX IL and OH states for marketing 401k plans, Life Insurance products as well as Health Insurance plans. Proficiency in computers required. Please e-mail resume to girish_talati@hotmail.com 16-7

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

Efax: (561) 829-2055

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SUBMIT YOUR FREE CLASSIFIED AD HERE

17-3

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

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

2-20/4-40 COMMERCIAL LINES MIAMI DOWNTOWN LOOKING FOR A 2-2O OR 4-40 TO HANDLE COMMERCIAL LINES WITH 1 YEAR EXPERIENCE, PERSONAL LINES KNOWLEDGE AND NEED TO SPEAK FLUENT ENGLISH & SPANISH WITHOUT PROBLEM - DOWNTOWN MIAMI SEND RESUME: DOLORES@JONRAYINSURANCE.NET 305-883-4604

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16-12 SEPTEMBER 2017

Urgent!

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NEWS

TEXAS AGENT GETS 5-YEAR SENTENCE FOR FILING FAKE LIFE INSURANCE APPLICATIONS

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ermaine Clark of San Antonio was sentenced Monday to five years in prison and ordered to pay more than $45,000 for a string of insurance fraud cases. TDI fraud investigators say Clark used the stolen identities of dozens of people in the San Antonio area to make fraudulent life insurance policies without their knowledge. He would make the initial premium payments to collect commissions from the insurance company. Investigators say Clark tried the scheme 49 times in late 2009, stealing more than $32,000 in commissions.

One of the life insurance applications that Clark submitted was for a woman who had died three months earlier. “It’s this kind of unscrupulous crime that puts a drag on the entire insurance system,” said TDI Fraud Director Chris Davis. “When an agent with access to people’s most personal information tries to game the system there will be consequences.” Insurance fraud was not the only crime uncovered during the investigation. During the sentencing, TDI prosecutor

Nicole Thornbro told the court that while Clark was under investigation for the insurance scheme, investigators found he as stealing profits from a San Antonio restaurant he was managing. Part of the ordered restitution was to the restaurant owners. TDI investigators are certified peace officers and work closely with law enforcement authorities around the state to investigate insurance fraud cases. You can report suspected cases of insurance fraud by calling TDI’s Consumer Help Line at 1-800252-3439 or on the TDI website.

TIRED OF THOSE ROBOCALLS?

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nder a new initiative announced by the FTC, when consumers report Do Not Call or robocall violations to the agency, the robocaller phone numbers consumers provide will be released each day to telecommunications carriers and other industry partners that are implementing call-blocking solutions. “Sharing the critical information from consumers’ unwanted call

32

The Underwriter’s Insider

complaints to enable industry innovators to stop illegal robocalls is exactly the type of public-private partnership the FTC champions,” said Acting Chairman Maureen K. Ohlhausen.

the violators behind these calls. In addition, under the initiative announced today, the FTC is now taking steps to provide more data, more often to help power the industry solutions that block illegal calls. The new data that FTC is Unwanted and illegal robocalls are making available also will include the FTC’s number-one complaint the date and time the unwanted category, with more than 1.9 million call was received, the general complaints filed in the first five subject matter of the call (such as months of 2017 alone. By reporting debt reduction, energy, warranties, illegal robocalls, consumers help home security, etc.), and whether law enforcement efforts to stop the call was a robocall. MORE Table of Contents

SEPTEMBER 2017


NEWS

GEORGIA INSURANCE COMMISSIONER RALPH HUDGENS ANNOUNCES HE WILL NOT SEEK RE-ELECTION IN 2018 companies originally denied claims and has aggressively pursued insurance fraud. I focused on those consumer protections while also working to make sure we had a competitive insurance marketplace. The Department has TLANTA - Today, Insurance accomplished a lot, but there is Commissioner Ralph still much to do. I look forward Hudgens announced that to actively serving out the he would not seek re-election for year and a half that remains a third term as Georgia’s Insurance in my term. I will continue to and Safety Fire Commissioner. work to protect Georgia In conjunction with that consumers and make sure announcement, he releases the that Georgia remains a following statement: competitive place to do the business of insurance. My Fellow Georgians,

Hudgen’s Announcement came in the form of an open letter to the citizens of Georgia

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After much thought, prayer, and discussion with my family, I have decided not to seek a third term as Georgia’s Insurance Commissioner. I am immensely grateful for the opportunity that the people of this State have given me to serve in this capacity, but I look forward to retiring from elected office to spend more time with my wife Suzanne, my four kids, and 12 grandchildren. I ran for Insurance Commissioner because I believed I could be an effective advocate for consumers. My office has helped consumers get payment after insurance SEPTEMBER 2017

I enjoyed my time in the State House and State Senate, but I am particularly grateful for the privilege of serving as Georgia’s Insurance Commissioner. I am grateful to my best partner for the last 54 years, Suzanne, who stood by me and worked with me through successful elections and failed ones. I am grateful for the excellent staff at the Department of Insurance that has enabled me to be successful While I am retiring from over the last elected political office, I seven years. intend to stay involved I am grateful in politics. My political for my activity began when I Commissioner Ralph Hudgens s u p p o r t e r s accompanied my wife around the to meetings with conservative State who helped me get activists in 1980. I quickly elected and re-elected to this developed a passion for politics office. and a belief that the right people running for office could make a Most of all, I am grateful to difference for our country and our my God who has given me so state. I still have that passion, and I many blessings- the greatest of still have that belief. Suzanne and which have nothing to do with I will continue to stay involved in politics. politics and will continue to work for the people and the causes in Sincerely, which we believe. Ralph Hudgens Table of Contents

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Notable Quotes In The News

SAY WHAT?

JONES: TRUMP WRECKING OBAMACARE

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Image Credit: Creative Commons

hanks to the actions of President Trump, in April I took the unprecedented step authorizing health insurers to file two sets of rates for 2018. We in California are doing everything we can to keep carriers and plans in the individual market, but President Trump continues to undermine the ACA and as these rate filings demonstrate, California is not immune to his efforts to wreck the Affordable Care Act. If President Trump continues down this path, Dave Jones, CA Insurance Commissioner premiums will increase substantially in 2018. The average premium increase doubles if Trump continues to refuse to fund the cost-sharing assistance in the ACA.”

execution. Many will remember the words of Obamacare architect Jonathan Gruber who mocked the “stupidity” of the American voters, boasting Obama passed the so-called “Cadillac tax” on full-benefit employer provided health care plans “by mislabeling it, calling it a tax on insurance plans rather than a tax on people, when we know it’s a tax on people who hold these insurance plans. The lack of transparency is a huge political advantage” and that “the stupidity of the American voter . . . was really, really critical for the thing to pass.” Perhaps, rather than blaming Trump, Jones should consider that more and more insurers are pulling out of the ACA Marketplace as losses grow into the billions. Over the past 24 months, several more insurers have pulled out of the exchanges, including UnitedHealthcare and Humana, leaving a very real possibility that some regions will have zero carriers operating in 2018.

BILL MAHER REALLY SICK OF POLITICAL CORRECTNESS?

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our colleague –– I don’t agree with him –– Jeffrey Lord, CNN got rid of him because he said ‘sieg heil’ on a tweet. It was a joke. This has gotta stop: This idea of people have to go away if they’ve offended me even for one moment. How about just move on, turn the page? Go to the next thing in your life?”

Uber-liberal CA Insurance Commissioner Dave Jones apparently taking the position that it is President Trump who has somehow “wrecked” the ACA, also known as “Obamacare.” In reality, Obamacare was begun as a fraud on the American people, (“you can keep your doctor, you can keep your health care plan, and a family will have a savings of $2500 per year...”) and has ever since been melting down under it’s own dead weight of poor design and Exasperated liberal pundit and comedian 34

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SEPTEMBER 2017


Bill Maher in an interview with CNN’s Fareed Antifa: A Colossal Fraud Zakaria last month where even he expressed his disgust with the left-leaning cable news ut so-called “anti-fascists” don’t channel’s perpetually offended PC culture as they comprehend that, so they label terminated their relationship with conservative everything they dislike as fascist, pundit Jeffrey Lord over a phrase clearly tweeted and they are literally textbook fascists. Watch satirically. them reenact the Brown Shirts’ greatest hits by burning buildings every time someone HOW MANY TIMES disagrees with them.”

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HAVE YOU THOUGHT THIS?

From a column by Tom Knighton from PJ Media t does not make sense to hire laughing at Antifas (supposedly anti-facists) smart people, and then have who unknowingly applaud a speech made up entirely of Hitler quotes. Precious fools. them follow stupid rules”

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Aphorist Oleg Vishnepolsky, a Russian born American computer scientist known for outstanding technical achievements at IBM as well as a man with good common sense.

LAW PROFESSOR HAS COURAGE TO TELL THE TRUTH

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Image Credit: Creative Commons

don’t shrink from the word, ‘superior.’ Everyone wants to come to the countries that exemplify these values and that everyone wants to go to countries ruled by white Europeans.” Stating a non-PC fact is often dangerous to one’s career, especially in academia, but it didn’t stop University of Pennsylvania law professor Amy Wax from stating a selfevident fact: Some cultures are superior to others and generate superior results. The left, of course, went nuts. She went on to say, “Bourgeois values aren’t just for white people. The irony is: Bourgeois values can help minorities get ahead.”

SEPTEMBER 2017

AND FINALLY, OUR “WTF?” QUOTE OF THE MONTH...

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e collectively made the decision with Robert to switch games as the tragic events in Charlottesville were unfolding, simply because of the coincidence of his name. In that moment it felt right to all parties. It’s a shame that this is even a topic of conversation and we regret that who calls play-by-play for a football game has become an issue.” ESPN in a statement attempting to defend what must be one of the stupidest corporate moves in history explaining why they removed sportscaster Robert Lee from broadcasting a University of Virginia football game - only because his name is Robert Lee - no relationship to Confederate General Robert E. Lee who has been dead for 147 years. The lunatic-left ESPN network actually believed that having such a name in the broadcast booth would offend listeners in the wake of the Charlottesville insanity. We might add: Lee the broadcaster is Asian...

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BACK ISSUES

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SEPTEMBER 2017


BACK ISSUES

SEPTEMBER 2017

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NEWS

BEAZLEY EXPANDS SOCIAL ENGINEERING COVERAGE A new excess policy for the US market that significantly expands the protection available

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ew York, (GLOBE NEWSWIRE) -- Beazley, a leading insurer of fidelity and crime risks, has launched a new excess policy for the US market that significantly expands the protection available to firms that fall victim to impersonation scams by fraudsters convincing employees to wire funds to external accounts. This and similar“social engineering” attacks have proliferated in recent years, costing some companies millions of dollars. Insurance coverage to address the risk has

largely failed to keep pace with the own market-leading cyber policy, larger attacks, typically providing Beazley Breach Response.” between $100,000 and $250,000 of protection. Beazley plc is the parent company of specialist insurance businesses Beazley’s new policy addresses with operations in Europe, the US, this shortfall, providing coverage Canada, Latin America, Asia, the of up to $5,000,000 in excess of Middle East and Australia. Beazley underlying coverage of at least manages six Lloyd’s syndicates $250,000. The coverage is available and, in 2016, underwrote gross on a surplus lines basis only. premiums worldwide of $2,195.6 million. All Lloyd’s syndicates are Bill Jennings, crime underwriter at rated A by A.M. Best. Beazley, said: “Brokers and insureds have been clamoring for higher Beazley’s underwriters in the limits for social engineering risks, United States focus on writing and we’ve come up with a very a range of specialist insurance simple excess form to meet their products. In the admitted market, needs. Our coverage can follow coverage is provided by Beazley the terms of another insurer’s Insurance Company, Inc., an A.M. primary cover. It can also be used Best A rated carrier licensed in to boost the social engineering all 50 states. In the surplus lines cover currently available under our market, coverage is provided by

N.CAROLINA MAN ACCUSED OF ACTING WITHOUT AGENT LICENSE

agent in order to get multiple consumers to purchase life insurance policies in excess of $7,000 between September 2010 and March 2017. Investigators allege ALEIGH -Insurance obtaining property by false pretense Craft never submitted the payments Commissioner Mike and an agent acting without a he received and kept them for his Causey today announced license. personal use. the arrest of Kenneth Earl Craft, Jr., 47, of 1089 Edwards Fork Road, Department of Insurance criminal Craft was arrested on June 27 in Scotland Neck; he is charged with investigators accuse Craft of Martin County and was released two counts each of fraud and presenting himself as a licensed under a promise to appear in court.

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ANALYSIS Continued from Page 25

misclassified employees, the IRS will seek all payroll taxes (including those that the employee was supposed to pay) from the firm, plus penalties plus interest, etc. which can double or more the amount owed. Assuming that Peters’ boss Also, keep in mind our government are never listed on someone’s tax had 5 employees and did this for 5 has several generous programs return send a message to the IRS years, the IRS penalty before interest available to people who don’t that some company needs to be and penalties could be $100,000.00. make a lot of money such as the investigated for misclassification Double that with penalties and EITC, etc., which only come into of employees as independent interest and now Peter’s boss is in effect after all taxes are paid. In contractors. debt to the IRS for the rest of his life, this example, John could get something I see often with a check for a few thousand small contractors who follow dollars, while Peter has to the 1099 route. pay..

MISCLASSIFICATION OF EMPLOYEES

All those adds you hear about “trouble with the IRS” on TV and Radio are targeting firms owned by the Peter’s Bosses of the world, and sometimes the Peters themselves who after years of not filing taxes are tracked down by the IRS.

So what can someone like Peter do? He could file form SS-8 (Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding) which is becoming more and more popular among tax preparation companies.

Last point, I have meet guys SS-8s and numerous 1099s that are never listed Keep in mind that the on someone’s tax return send a message to the like Peter throughout my store front tax preparation IRS that some company needs to be investigated career, and it’s getting companies make most for misclassification of employees as independent more common with the gig contractors. economy, the saddest sight of their money providing is a guy like Peter who has anticipation loans on refunds. By Our government being what it filling form SS-8 a tax preparer is, not all companies who abuse worked “off the books” their entire can get a guy like Peter out of the system are caught, and even lives realizing in their late 50s early their office with a small check as worse no company that abuses the 60s that they don’t qualify for Social opposed to dealing with an angry system is caught quickly. In most Security or Medicare. taxpayer who isn’t getting a refund cases I see the IRS taking at least 4 and has to ink a big check. Peter to 7 years to catch up to a company could also (more common) just that is misclassifying. never file a tax return. So what if you get caught? SS-8s and numerous 1099s that If a firm is determined to have SEPTEMBER 2017

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For fun, some links on companies getting busted for misclassification HERE and HERE. These owners are not going to have a good retirement, assuming they avoid prison. underwritersinsider.com

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NEWS GEORGIA INSURANCE AGENT ARRESTED FOR FRAUD

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tlanta – The Georgia Department of Insurance announced on August 24th the arrest of a Floyd County insurance agent on fraud charges related to the misappropriation of insurance premiums.

any insurance agent stealing from policyholders.” Irwin was taken into custody at his agency located at 1850 Redmond Circle, Suite 800 in Rome, Ga., and booked into the Floyd County Jail.

Marshall Irwin, 56, owner and operator of the Irwin Agency, (a Nationwide agent according to his website) in Rome, Ga., was arrested on the morning of August 24th 2017 and charged with six counts of insurance fraud.

Warrants served to Irwin represents three counts of insurance fraud for the misappropriation of premiums and three counts of insurance fraud for issuing fraudulent certificates of insurance. Irwin has Department of been a licensed Marshall Irwin, 56 Insurance Fraud Georgia insurance investigators determined that agent since 1989. between 2015 and 2017 Irwin accepted approximately $20,000 Deputy Commissioner Florence from his clients to pay premiums urges anyone who has purchased for workers compensation insurance from Marshall Irwin or insurance, but instead of the Irwin Agency, to verify their forwarding the money to the coverage with the insurance insurance company to place company listed on their policy or coverage, he converted it for his contact the Georgia Department of personal use. Insurance for assistance at 800-6562298. “The actions of Mr. Irwin have put consumers and business at Insurance fraud is a felony in significant financial risk,” said Georgia with a penalty of two to 10 Deputy Insurance Commissioner years in prison and/or a fine of up to Jay Florence. “We will not tolerate $10,000. SEPTEMBER 2017

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N. CAROLINA AGENT ACCUSED OF EMBEZZLEMENT AND EXPLOITATION

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ALEIGH -- Insurance Commissioner Mike Causey today announced the arrest of David Maylon Pickett, 59, of 205 Queen St., Grifton; he is charged with eleven counts of obtaining property by false pretense and nine counts each of embezzlement and exploitation of an elder. Department of Insurance criminal investigators accuse Pickett of deceiving elder adults to obtain funds, assets and property. Investigators allege Pickett knowingly embezzled, misapplied and converted other individual’s property for his own use. Pickett was arrested on July 11 in Wayne County and was placed under an $890,000 bond. The counties involved to Pickett’s pending offenses are Carteret, Craven, Duplin, Harnett, Jones, Lenoir, Pitt and Wayne. Any persons with information is urged to contact Department Criminal Investigators at 919-807-6840. underwritersinsider.com

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

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TECHNOLOGY Continued From Page 5

KIM KOMANDO bogged down with traffic, running inefficient software or any number of other problems. If your computer can’t look up IP addresses quickly, it seriously slows down your browsing. Fortunately, there are other DNS servers out there you can use.

download buttons at the end of this article. On the left side of the namebench download page, WHAT DNS IS BEST FOR YOU? there is a green header labeled The big question is how to find a “Featured.” Here is where you will new DNS and how to know it will find the program you need. be any better than your current one. Google has a solution called For PC users, click the second namebench. download link with the ending “Windows.exe”. Mac users should This lightweight program will select the download link ending test your DNS against other in “Mac_OS_X.dmg”. popular DNS servers. Once it finishes the comparison, it will You will be redirected to another give you detailed statistics on page that has another download performance and recommend link. This link should be highlighted the best DNS for you to use. in green and have the same name as the previous download link you Download Instructions clicked. To download the program, navigate to the namebench Note: If the download link is download page by using the blue not highlighted in green or the

Image Credit: Creative Commons CC0

Keep in mind that speed isn’t the only reason to choose a new DNS. Many DNS systems include filtering to block inappropriate websites or other sites you don’t want to see. OpenDNS is one of our regular

recommendations for filtering.

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TECHNOLOGY download link is different from the to your country. In the Query Data first, do not click on it. It is not the Source dropdown menu, select download link you’re looking for. your default browser. If you aren’t sure what browser you use, visit Click the highlighted download this site. link and your download will begin immediately. After the In the Health Check Performance download is complete, extract the section, you normally want this installation files. namebench will set to Fast. This will test the speed launch automatically. of 40 nameservers. But if your Internet connection is slow or MANAGING NAMEBENCH unreliable, change Fast to “Slow On the first window, you’ll see a (unstable network).” field labeled Nameservers. This will automatically be filled with For the number of queries, the the IP address of your current DNS. standard 250 should be sufficient. But if you’re on a slower network, Below the Nameservers field you may want to decrease the are two checkboxes. One says amount. “Include global DNS providers,” the other says “Include best available Once you’ve got your settings regional DNS services.” Leave both in place, hit Start Benchmark. While namebench is running, you of these checked. should avoid using the Internet as The next area is for secondary that can affect its results. options. The first checkbox lets you check if the DNS is blocking certain sites. If you’re looking for a DNS with filtering options, definitely select this one. It will tell you how effective a DNS is at blocking unwanted content.

When namebench completes, it will open up a new browser window with your results. There’s a lot of information in this window. We’ll focus on the most important parts.

The second checkbox will publish your results anonymously. This will help provide more accurate results to you and others in the future. You can leave this blank or check it. Neither will affect the comparisons you’re given.

The first box gives you a DNS recommendation and tells you the possible speed increase by switching. The box immediately to the right gives you the settings of the recommended DNS and two backups.

Next, set the location dropdown 44

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TECHNOLOGY Continued From Page 44

KIM KOMANDO Below these boxes are a series of charts and graphs. These visualize and breakdown the performance of each DNS. You can find exact details about each graph at Namebench’s wiki. CHANGE YOUR ROUTER SETTINGS Now that you know which DNS is best for you, you need to change the settings on your router. That improves all the gadgets on your network. To edit your router settings, you’ll need to open your browser and type in your router’s IP address and enter your username and password. You can find out your router’s default IP address and login information in the router manual. Click here to learn more about accessing router settings and improving network security. Once you access the router’s settings, take a look under the basic settings. You should see fields for Primary DNS and Secondary DNS. Write down both of the IP addresses in case you need to go back to them later. Next, replace the existing IP addresses with the Primary and SEPTEMBER 2017

Secondary IP addresses from cache. This prevents it from trying Namebench’s “Recommended to use the old DNS server to look up configuration” box. Then Save your sites you visit often. router settings and log out. To flush your DNS on Windows Vista If you don’t have a router, you can or later, type CMD into the search changetheDNSsettingsrightonyour field in the Start menu and hit Enter. computer. For Windows, look under Start>>Control Panel>>Network A Command window should open and Internet>>Network and Share up. Type “ipconfig /flushdns” (minus Center. Click the “Manage network quotes). Now hit Enter and you connections” link on the left. should see “Successfully flushed the DNS Resolver Cache.” Right-click on the Local Area Connection icon and select To flush your DNS on Mac OS X, Properties. Under the Networking first click on Spotlight. It’s the tab, click on Internet Protocol magnifying glass at the top right. Version 4 and click the Properties Now type in Terminal and hit Enter. button. When the Terminal window opens, enter “dscacheutil -flushcache” (no Under the General tab, click “Use quotes). Now hit Enter. You should the following DNS server addresses” see “bash-2.05a$ dscacheutil and enter the DNS addresses -flushcache” if all went well. provided by namebench. Then click OK. That’s all there is to it. Enjoy your speedier Internet! On a Mac, go to System Preferences>>Network. Click the lock icon in the lower left corner and enter your password. Copyright 2017, WestStar Multimedia Entertainment. All Select Built-in Ethernet and click rights reserved. Advanced. Select the DNS tab and click the + icon. Add the DNS Learn about all the latest addresses from namebench and technology on the Kim Komando put them at the top of the list. Click Show, the nation’s largest weekend Apply and OK. radio talk show. Kim takes calls and dispenses advice on today’s FLUSH THE OLD DNS CACHE digital lifestyle, from smartphones Once your DNS is changed on your and tablets to online privacy and router or computer, there is still one data hacks. For her daily tips, free more task. To finish, you’ll want to newsletters and more, visit her flush your computer’s current DNS website at Komando.com Table of Contents

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The Underwriter's Insider September 2017  

America's largest exclusively online insurance magazine, The Underwriter's Insider combines insurance news, politically incorrect politics,...

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