Page 1



Features News 5



Kim Komando


Snarky Climate Wackos Angry - But More Scientists Skeptical on Global Warming


You Only Get What You Ask For - By Barry Zalma, Esq.


Inside Track


A New Low For The Obama Team?




Unintended Consequences of Al Gore’s Green Hype


Insider Advisor


Fighting Sharia Law in U.S. by Dr. Tawfik Hamid




IRMI Launches Personal RiskAdvisor


Say What?


IRMI Publishes Directory of Risk Mgt. & Insurance Prgs. at U.S. Universities


Back Issues


GOP Goes After Obama’s “Cool” Image...

Table of Contents Continued...


The Underwriter’s Insider

News 22

Florida Announces $40M Agreement with MetLife


Penn. Court Denies PDI Petitions to Liquidate Insurance Companies


Four Marketing Opportunities You Don’t Want to Miss by Matthew A. Treskovich


Stunning New NASA Video The Pursuit of Light


The Moon as You’ve Never Seen it Before -Incredible New NASA Video

38 38 39

Florida Boat Captain Arrested for Sinking $1.86 Million Yacht N. Carolina Agent Indicted & Arrested on Federal Fraud Remember the Alamo? Davy Crockett has Some Timely Advice for Congress

Sponsors 4 6 7 8 11 15 16 17 18 19 24 25 27 27 34 36 37

The Agency Advantage Modern Insurance Consultants Florida Insuance School Broadway Premium Funding Broadway Premium Funding St. James Insurance Company Aggressive Insurance

United Automobile Ins Company NASA - Eclipse Agency Mgt. National Insurance Underwriters Accu-Auto Encore HR Personnel Solutions Orrin R. Beilly, Esq. National Insurance Underwriters Kingsway - Amigo Barry Zalma The Towing & Rental Group



The Underwriter’s Insider

Shocked by the rising cost of advertising? Relax... Reach tens of thousands of industry eyeballs for as little as $89 per month.

EZine (Online) Per Issue Rates All advertisements include a 200X600 pixel banner ad on The Underwriter’s Insider home page - as well as appearing on our weekly magazine announcement. All ads will link to the advertiser’s home page unless other instructions are given.



Ad Size









1/2 Page





1/3 Page





1/4 Page





1/8 Page






Ad Specs

Insider Rate Chart


Full Page 1/2 Page 2/5 Page 1/3 Page 1/4 Page 1/8 Page

Option 1 8.00” X 10.50” 4.00” X 10.50” 4.00” X 8.60” 8.00” X 3.25” 4.00” X 5.25” 2.50” X 4.60”

Option 2 8.00” X 5.25” 8.00” X 4.20” 5.30” X 5.25” 2.30” X 9.00” 4.60” X 2.50”

Full-Bleed 8.50 X 11.00

Banner Ads: 200X60 pixels, JPEG, PNG or GIF Format

The Insider can accomodate advertisements submitted in almost any format - but best results can be achieved with a 300DPI TIFF image. If your ad is in PDF, EPS, PSD, JPG or PNG format - send it in. Ad creation is usually free with agreements of 3X frequency or better. There will be a small charge for stock images when needed.


➨ Modern Insurance Consultants is a nationwide insurance agents E&O specialist and the #1 writer of agents E&O in Florida (FSLSO 2004 through 2010) ➨ Serving independent agents since 1994 ➨ One application gives you access to 18 markets writing agents E&O ➨ Modern Insurance Consultants has the E&O coverage you need • Limits available up to $10,000,000 • Premiums starting at $1,200 and deductibles as low as $1,000 • Exclusive E&O programs from A rated carriers • Insolvency, Defense Costs Outside the Limit and First Dollar Defense coverages available • 24 hour quote turnaround with our exclusive 2 page QuickQuote Application for agents and brokers available on our website

Have you been declined, non-renewed or rate increased? Apply now at 1348 Old Dixie Highway Homestead, FL 33030 ph: 305.248.9495 fax: 305.248.9496


The Underwriter’s Insider


The evidence [for manmade global warming] is incontrovertible,” according to the politically-correct, politically driven body of international science organizations, including the APS.

Glaever who publicly resigned from the American Physical Society over the issue. In a now-famous letter to the society, Glaever, with an air of disgust, explained:

“I did not renew [my “NOT!” Says a membership] growing legion of because I cannot top climate scientists live with the [APS - where the very policy] statement: Click on Image To View notion that anything in ‘The evidence is science is “incontrovertible” is heresy on incontrovertible: Global warming is it’s face. occurring. If no mitigating actions are taken, significant disruptions in the The face of the rebellion may be Earth’s physical and ecological systems, Nobel Prize-winning physicist Ivar social systems, security and human

Table of Contents

health are likely to occur. We must reduce emissions of greenhouse gases beginning now.’ In the APS it is OK to discuss whether the mass of the proton changes over time and how a multiuniverse behaves, but the evidence of global warming is incontrovertible?” The Insider has been telling you for years - and we continue to tell you: The concept of man-made global warming is simply the best vehicle the anticapitalist, anti-corporate, Americanhating political left has ever found to advance it’s radical agenda. See also: GW Skeptics Knowledgeable HERE



CONTENTS 2012 • Issue 5

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

Ron Manera Editor/Publisher


© Entire Contents 2012


Table of Contents

To best navigate The Insider, begin with the Table of Contents and select your topic. On the bottom of most pages is a Table of Contents link that will immediately return you for your next topic selection. EVERY SPONSOR AD LINKS DIRECTLY TO THE SPONSOR’S WEBSITE. CLICK ON ANY AD TO VISIT OUR FINE SPONSORS!

The Underwriter’s Insider


stroke patients and accident victims get back on their feet again.

by Kim Komando

Studies indicate that using the Wii can improve the physical abilities of Parkinson’s sufferers. And therapists at Walter Reed Army Medical Center have successfully used the Wii to help our brave soldiers recover from combat injuries.


fter Barbara Pivarnak had a bone marrow transplant last year, she faced a long recovery. For many weeks, she was – in her words – “a blob in a bed.” As soon as she could sit up, though, occupational therapists at the Mayo Clinic began taking her to what they called “Wii-hab.”

other side of the story.

She became absorbed in Wii bowling. What she didn’t realize was that she was also getting good physical workouts. Her strength and coordination rapidly improved.*

Sure, the games are fun. When Nintendo launched the Wii in 2006, it was a runaway hit for kids and families. The unique wireless controller, dubbed the Wii-mote by fans, allowed players to use body movements to bowl, box and play tennis.

Daily headlines can make us forget that technology is often used for “good.” Among all the reports of hackers stealing sensitive information from government agencies – and individuals – I like to point out the

Well beyond paying our bills online or playing Words With Friends with that girl you barely remember from high school, there’s a seriously positive side to technology. It improves the health of thousands of people everyday.

It didn’t take long for elder care professionals to see that the Wii would be a great way to get aging patients up and moving. Soon after that, therapists were using t h e console to help

At $150, the Wii may be the cheapest piece of medical equipment in a clinic. Originally sold for $250, the Wii has been dropping in price because of the expected release of Wii U later this year. The Xbox 360 and PlayStation 3 consoles offer similar motion-control technology and have been used in rehabilitation, too.

These examples are just a part of the story. Other researchers are hard at work developing software for smartphones and tablets that will make a difference in the lives of people with disabilities. At Stanford’s summer course on highperformance computing, students created a Braille writer that works on a tablet’s touchscreen. Blind and visually impaired persons no longer need to find the buttons on this virtual keyboard. They touch eight fingertips to the tablet’s glass screen - and the keys find their fingers! By contrast, a traditional Braille writer, which looks like a laptop keyboard, can cost more than $6,000. And it only does one thing. That makes a $500 multimedia tablet seem like quite a bargain! See Kim Komando Pg 37

Table of Contents




Flood Insurer is Not A Fiduciary

flood insurance program under the National Flood Insurance Act. Liberty Mutual was Grissom’s WYO insurance provider when Hurricane Katrina severely damaged his property. This

the Program, the WYO program allows private insurers to issue flood insurance policies in their own names. Under this framework, the Federal government underwrites the policies and private WYO carriers perform significant administrative functions including “arrang[ing] for the adjustment, settlement, payment and defense of all claims arising from the policies.” WYO carriers must issue policies containing the exact terms and conditions of the [Standard Flood Insurance Policy (“SFIP”)] set forth in FEMA regulations. Additionally, FEMA regulations govern the methods by which WYO carriers adjust and pay claims.

ames Grissom purchased flood insurance for his home in Pascagoula, Mississippi under the Federal National Flood Insurance Program (“NFIP”). Grissom was eligible for a preferred risk insurance policy, but did not know about his eligibility. Following the destruction of his home in Hurricane Katrina, Grissom sued Liberty Mutual for negligent misrepresentation to recover the difference between the coverage he had and the coverage he could have purchased under the preferred risk policy. The district court In 1989 a preferred risk policy Barry Zalma, Esq., CFE is a California attorney concluded that Grissom’s claim became available for the flood specializing in insurance coverage, insurance was not preempted by federal claims handling and fraud who serves as zone on which Grissom’s home law and sent the case to the jury a consultant and expert for insurers and was located, but Grissom is unsure which awarded Grissom $212,900 policyholders. He founded Zalma Insurance if he was ever explicitly offered in compensatory damages. Consultants in 2001 and serves as its senior the preferred risk policy. There is consultant. He recently published an e-book, Liberty Mutual appealed in James no indication that Liberty Mutual “Insurance Fraud,” which is available at his Web P. Grissom, v. Liberty Mutual Fire affirmatively informed Grissom site, Go to Zalma Books at Insurance Company No. 11-60260 he was eligible for preferred (04/23/2012) and asked the Fifth coverage. In 2004 he renewed Circuit Court of Appeal to reverse. his Liberty Mutual policy with FACTS court has previously discussed the covered total loss of up to $121,200 WYO program: for a $531 premium. Had he been enrolled in the preferred risk policy, Join Barry Zalma’s new Blog: By enacting the National Flood he would have had $350,000 in total Insurance Act of 1968, Congress covered loss for a $317 premium. The established the Program to make flood 2004 renewal notice from Liberty In 1977 Grissom first purchased insurance available on reasonable Mutual mentioned the existence of flood insurance through the Federal terms and to reduce fiscal pressure Emergency Management Agency’s on Federal flood relief efforts. Within See Zalma Pg 33 (“FEMA”) Write Your Own (“WYO”)


Table of Contents

The Underwriter’s Insider


Table of Contents



ow that ObamaCare has been foisted on an unwilling and mostly unhappy American public, the Obama team is attempting to turn the intrusive legislation into a massive campaign event to boost the president’s sagging job approval prior to the November elections. Federal guidelines published in May require each of the estimated 16 million rebate notices required under the legislation to notify recipients in the first paragraph that the rebate is a result of Obamacare. According to the nonpartisan Kaiser Family Foundation, the rebate checks are estimated to total $1.3 billion with


checks averaging $127.00 for people owning an individual policy and $72.00 for those obtaining health insurance through a large employer. The ObamaCare legislation has several key hurdles to jump if it is to survive this year. The U.S. Supreme Court is currently reviewing its constitutionality with a decision due in June and candidate Mitt Romney, should he win the presidency in November, has pledged to eliminate the law.


CLICK HERE! Table of Contents

DO YOU KNOW A KEY PERSON IN THE CIGAR MFG. BUSINESS? National brokerage seeks individual with connections in cigar manufacturing and distribution. Exclusive business opportunity! Call John or Matt 1-800-359-5102 The Underwriter’s Insider



thanol meister, climatechange illusionist and VicePresident Al Gore in 1994:

THE REALITY That was the hype - this is the reality: Ethanol production has driven up the price of food at twice the rate of inflation. So severe is the effect on some poorer nations that a corn shortage has already resulted in starvation and food riots. For the amount of corn you need to fill up the gas tank of a Cadillac, you could feed a man for a year.

"It’s well known that I’ve always supported ethanol. I have a consistent record of shoring up the farm safety net. I have not ducked when votes for ... agricultural interests were on the floor. Ethanol and Our administration’s soy bio-fuels goal is to triple the p r o d u c e use of biomass about twice technologies, the emissions ethanol, gasoline as petroleum additives, and other based fuels. environmentally Al Gore, Climate Huckster & MultiWith the Millionaire Carbon Credit Trader friendly products by exception 2010. This is just one of the exciting ways of sugar, the other bio-fuels such as our efforts to protect the environment corn and soy are net carbon emitters will begin to help America’s ailing — being insufficiently efficient to cut farming economy." emissions when burned as fuel by more than the emissions created in their production. THE HYPE Years ago, Al Gore and his legions of earnest save-the-planet "greenies" scrambled to enact laws subsidizing ethanol production. They promised us energy independence, an eco-friendly fuel source. reduced carbon-output and crop-price stabilization. It was the ultimate "win-win" solution — or so we were told.

even do the math: If we were to burn 100% of our corn and soy crop for fuel, we would be able to fuel less than 20% of our on-road vehicles with the ethanol produced. And we’d starve. Guess who is paying to finance this failed ethanol adventure? You are. The cost of ethanol subsidies to the American taxpayers: $8 billion in 2007 — $26 for every man, woman and child in America — on top of what you have been gouged for at the pump.

AL LOVES THE RAIN FOREST In Al Gore’s 1993 best seller, Earth In The Balance, he asserted, "The most dangerous form of deforestation is the destruction of the rain forests, especially the tropical rain forests clustered around the equator. These are the most important sources of biological diversity on earth. For that reason, most biologists believe that the rapid destruction of the tropical rain forests and the irretrievable loss of the living species dying along with them, represent the single most serious damage to nature now occurring."


As to energy independence - we burned about 25% of our corn crop for fuel last year - and reduced our oil consumption by 1%. Further, ethanol is less efficient than fuel from petroleum. In an automobile, for example, your mileage will decrease, and so you must use more of it to get where you are going.

Yet it has been Gore’s short-sighted urging for bio-fuels that has already resulted in massive deforestation of the Amazon rain forest. In just the last six months of 2007, a chunk of the rain forest the size of Rhode Island has fallen to the flames of quick-buck developers

It seems the bio-fuel promoters didn’t

See Unintended Consequences Pg 40

Table of Contents




Laden who led Al-Qaeda and attacked the U.S. on September 11 2001 which dragged the U.S. into very costly confrontations. These confrontations

ome see Sharia Law (Islamic Law) as a threat to human rights, discriminating specifically against women, gays, and nonMU.S.lims. This limited understanding of Sharia may lead to a half-hearted response rather than a serious fight for the U.S.'s strategic interests. It is, however, difficult for an honest person to deny the fact that Sharia Law is a threat to human rights for the real threat of Sharia goes far beyond infringements of human rights.

Another example of the outworking of Sharia is the Iranian Islamic regime that has shown aggression toward the U.S. and currently aims at creating a nuclear bomb that threatens world stability and security. The relationship between the U.S. and Iran declined dramatically after the Iran regime adopted Sharia Law following the Islamic revolution in 1979.

Sharia Law was the main topic for discission in several debates in the U.S. and other western countries. Careful observation of our modern history reveals that the U.S. has had major troubles from all Muslim countries or systems that have implemented Sharia Law. The following is a list of Islamic countries and societies that have implemented Sharia Law as the main law of the land: 1-Saudi Arabia 2-Iran 3-Afghanistan under the Taliban regime 4-Sudan 5-Somalia Without a single exception, the U.S. has suffered major troubles from all of these countries. For example, Saudi Arabia produced Bin 14

Egypt and other Islamic countries thus promoting more Islamic-based hatred and animosity toward the U.S..


r. Tawfik Hamid (aka Tarek Abdelhamid), is an Islamic thinker and reformer, and one time Islamic extremist from Egypt. He was a member of a terrorist Islamic organization JI with Dr. Ayman Al-Zawaherri who became later on the second in command of Al-Qaeda. Dr. Hamid is currently a Senior Fellow and Chair of the study of Islamic Radicalism at the Potomac Institute for Policy Studies. have cost the U.S. economy trillions of dollars and thousands of lives. In fact, 15 of the 19 hijackers of the planes that attacked the twin towers on September 11 were Saudis. Moreover, petrodollars coming out of Sharia-ruled Saudi Arabia have been used to support Islamists in

Table of Contents

Afghanistan under Sharia Law created a system extremely hostile toward the West, including the U.S. The Shariaruled Taliban adopted Al-Qaeda fighters and caused - and is still causing -major troubles for the U.S. In fact, the Islamist threat that originated in Afghanistan has also affected nearby countries such as Pakistan. The honeymoon that existed temporarily between the U.S. and the Taliban during the confrontation with the Russians has ended and the true nature of the Taliban as an antiAmerican regimen has been exposed. Furthermore, the relations between Sudan and the U.S. have significantly declined after the implementation of Sharia in the country. Somalia has shown animosity toward the U.S. and has become a breeding ground for terrorists since it became controlled by the Al-Shabbab Islamic movement that implemented Sharia Law in the land. Several U.S. Muslim citizens also became radicalized in See Fighting Sharia Page 32 The Underwriter’s Insider

IRMI LAUNCHES PERSONAL RISKADVISER IRMI has launched Personal RiskAdviser™—an online RiskExpert System™ focused on personal lines insurance and risk management.


ALLAS, TX, May 3, 2012—International Risk Management Institute, Inc. (IRMI), is pleased to announce the launch of Personal RiskAdviser™. This online product and new RiskExpert System™ from IRMI provides risk management services and advice to personal lines accounts.

A tool for use by agents and brokers, the Personal RiskAdviser utilizes a fourstep process to present risk avoidance, risk control, contractual risk transfer, and insurance recommendations to clients and prospects. First, the Personal RiskAdviser facilitates a comprehensive review of coverage for an existing customer or prospect. The Personal RiskAdviser then determines loss exposures and identifies coverage gaps. Lastly, the Personal RiskAdviser generates a professional report with risk management and additional insurance coverage recommendations for the client or prospect to consider. Jack Gibson, President & CEO of IRMI, said, “By giving agents an efficient way to provide value-added risk management services to personal lines clients and prospects, Personal RiskAdviser will become the best

Table of Contents

sales and client retention tool in most agents’ toolkits .” An introductory video and sample client report are available at store/personal-risk-adviser.aspx. Customized quotes are available by calling IRMI Client Services at (800) 827–4242. International Risk Management Institute, Inc. (IRMI), is a Dallasbased research and publishing organization focusing on insurance and risk management. IRMI reference services, conferences, and webinars give insurance buyers, risk managers, agents, brokers, adjusters, coverage lawyers, and underwriters knowledge to deal effectively with complex and rapidly changing insurance and risk management issues and problems. 15



nternational Risk Management Institute, Inc. (IRMI), is pleased to provide the Directory of Risk Management and Insurance Programs at U.S. Colleges and Universities at no charge. The directory lists the undergraduate risk management and insurance programs at more than 40 colleges and universities across the United States. Additional information provided includes a link to the university’s risk management and insurance department website, department contact information, the number of courses offered and required, the number of full- and parttime faculty, the number of students enrolled in the university and the business/management school, and whether the institution is accredited by The Association to Advance Collegiate Schools of Business (AACSB).


Jack Gibson, President & CEO of IRMI, said, “The insurance industry will face a talent crisis in the coming years, and these programs can help mitigate the problem by attracting intelligent and motivated young people into the industry. “


Table of Contents

The Underwriter’s Insider

Table of Contents


all homeowners across the U.S. paid 1 percent more in premium than the prior year. Auto rates moved up 2 percent.


SG Insurance Services, Inc., a national wholesaler and MGA announced the expansion of their Texas operations with the addition of a new satellite producer located in the Houston, Texas area. Jessica Sutton Jessica Sutton most recently held the position of Underwriter/Broker with Bliss & Glennon Central, Inc. Her work history also includes positions as Associate Underwriter with Myron F. Steves & Company, and Account Manager/CSR with Templeton Insurance Agency. Sutton’s primary focus will be in Texas and contiguous states writing all lines of coverage.


leading global marine insurance provider, Allianz Global Corporate & Specialty (AGCS), today announced an agreement between its US affiliate AGCS Marine Insurance Company and CargoNet, an information network for cargo theft prevention and recovery, helping policyholders protect their motor trucks and cargo in transit. CargoNet is a division of the Verisk Crime Analytics unit at Verisk Analytics (Nasdaq:VRSK). AGCS Marine policyholders who use CargoNet’s deterrent signage and report their loss to law enforcement and CargoNet within one hour of theft discovery will have their deductible waived up to US$5,000. In addition, Allianz insureds will pay 20 percent less for their CargoNet membership than regular clients.

the annual flagship event for Applied Systems users, to be held August 2023 at Gaylord Opryland in Nashville, Tenn. A larger-than-life personality known for his energy, zeal and enthusiasm on and off the field, Terry Bradshaw is an All-American icon. From his achievements in football as a Hall of Fame quarterback and twotime Super Bowl MVP, to his celebrity success as television’s pre-eminent football analyst, best-selling author, and television and film actor, Bradshaw is a beloved household name who came from humble beginnings to achieve astounding success.


ccording to MarketScout’s personal lines rate and premium tracking resources, rates for personal lines insurance rose 1 percent in April 2012 as compared to what consumers paid a year earlier. In April,


rospX, Inc., developer of the largest social business solution for the commercial insurance industry, announced a partnership with World Risk and Insurance News (, the only online video news network delivering late-breaking information, analysis and original programming for the global insurance community. ProspX streamlines communication between insurance agents, brokers, and carriers for the ultimate benefit of the client. The ProspX platform facilitates the real-time sharing and exchanging of critical information and intelligence as it relates to specific classes of risk, types of exposure, and clients. ProspX InsiderConnect, is the first electronic marketing solution that delivers targeted insurance industry news and carrier updates to agents, account executives, CSRs and marketing executives who are actively working on related new and renewal business opportunities.


pplied Systems Client Network (ASCnet) and Applied Systems today announced that Hall of Fame football legend and Fox Sports Analyst Terry Bradshaw will be the featured keynote speaker at TENCon 2012,


Table of Contents

The Underwriter’s Insider


ccording to a recent FBI warning, the agency was able to demonstrate that data thieves are targeting travelers abroad through pop-up windows while they are attempting to establish an Internet connection in their hotel rooms. The pop-up windows are disguised an a notice of software update - such as the ubiguitous Adobe software update window. When the user responds to the fake update, the laptop actually installs malicious software that could forward everything on your computer to the cyber thieves. Be careful and update nothing on a hotel connection.


pplied Systems Client Network (ASCnet) and Applied Systems today announced that Hall of Fame football legend and Fox Sports Analyst Terry Bradshaw will be the featured keynote speaker at TENCon 2012, the annual flagship event for Applied Systems users, to be held August 20-23 at Gaylord Opryland in Nashville, Tenn.


ew Research reports, “A year after the death of its leader, al Qaeda is widely unpopular among Muslim publics. A new poll by the Pew Research Center’s Global Attitudes Project, conducted March 19 to April 13, 2012, finds majorities – and mostly large majorities – expressing negative views of the terrorist group in Egypt, Jordan, Pakistan, Turkey and Lebanon.”


arleysville, PA based Harleysville Group, Inc. and Harleysville Insurance Company have agreed to merge with Columbus, OH based Nationwide Insurance Co. Harleysville policyholders will become Nationwide policyholders. Nationwide sought the merger in order to expand Nationwide’s commerical insurance reach.


licensed massage therapist, a physician’s assistant and 14 patients at a massage clinic in Miami have been arrested in an undercover insurance fraud investigation. Judith Gonzalez is accused of billing insurance companies nearly $250,000 in fraudulent claims and coaching patients on how to commit personal injury protection fraud. The 39-yearold Miami woman is the owner of Flamingo Health Corporation and has operated several other clinics. The state Division of Insurance Fraud and the Miami-Dade Public Department’s Public Corruption Investigation

Table of Contents

Bureau conducted an undercover probe that revealed the scheme.


ork At Home Vintage Employees LLC (WAHVE), a company that provides domestic remote staffing services for insurance firms, announced that veteran insurance industry executive Cynthia Hardy Young has joined WAHVE’s advisory board. Young is former president of Encompass Insurance, a $2.5-billion division of Allstate Insurance that sells personal lines products countrywide through two brands. 19

Marketplace Recently Announced P&C Markets


Agent’s E&O

odern Insurance Consultants - #1 writer of Agent E&O in Florida 18 markets - 24 hour quote turn-around. 305.248.9495 -


rofessional Underwriting Group - $974 min premium - $1K to $10K ded. New Agencies OK - Association discount. 800281-4234 -


ational Ins Underwriting - Limits $300K to $2M - Premiums starting at $1400 with low ded. Available most states. Discounts for loss-free experience and losscontrol efforst. Call Craig Calver - 800-3382680 X 507.



viation Products & Liability Insurance from Arlington/Roe & Company - MGA - representing mulitple markets. Contact: 800.878.9891 X 2401. Cfrench@ [11-6]


Chemical Mfg & Distribution Risks

uel additives, Industrial gases, paints, varnishes, lacquers, enamels, solvents, adhesives, sealants and a multitude of other chemical manufacturing and distribution risks. Min Prem $20,000 and other underwriting criteria. See Sloan Mason: Contact Grant Kanamori @ 619814-2488 or [117]


Commercial Auto

ational Ins Underwriting - Light, medium & heavy up to 66,000 lbs. up to 500 mile radius, Up to $1M CSL or $1/$2M split, Phys Dam up to $100K - Med Pay, Hired and NOL. Contact: Call Craig Calver - 800-338-2680 X 508.


ingsway/Amigo Competitve commercial auto program. Any size fleet, - all types of cars, light trucks and vans - specialty services, like landscaping, electrical, plumbing, lunch trucks and other various occupations. info@kinswayamigo. com


Condo Assoc Program

rident is offering tailored coverage designed for condominium town home and single-family community associations claiming competitive rates and terms. Coverages available include property, including flood, earthquake and coastal windstorm, general liability, D&O, umbrella, worker’s comp, auto, crime and property mgrs E&O. Trident Community Association Program - 5100 N. O’Connor Blvd, #200, Irving, Texas 75039 or email to 877590-0775 [11-6]



eavy construction risks including steel erection contractors, concrete contractors, roofing contractors, bridge, street & road contractors, etc. Norman Spencer - Contact Brian Harrold p: 937.432.1469 [11-7]


Contractor’s Pollution

ost contractors - including those with mold exposures and cleanup contractors. Program includes CPL - Occurrence or Claims Made form - mold coverage available - Annual & Per Project policies. Highly competitive rates claimed. All Risks, Ltd - Lou Ann Cook - 800-3665810 X 3030 email: [12-4]


Convenience Store

rgo Insurance announces expanded program and competitive rates for convenience store accounts. Company is looking for stores open until 11PM, fuel sales up to 90%, alcohol sales up to 30% with no fuel hauling exposure. Not available in Florida at this time. Email 877590-0775 [11-6]

Design & Construction Industry


rchitects, engineers & surveyors, construction managers, contractors, environmental consultants, landscape architects, specialty construction consultants. Contact Jeff Grigsby -


877.453.2071 - [116]


Energy & Utility Risks

il & Gas Companies, pipeline operations, utilities, HVAC contractors and water & sewer contractors. Contact Victor O. Schinner & Co., Inc. Jeff Grigsby - 877-453-2071 or jeffg@ [12-1]


ropane Dealers - PowerWrap is an endorsed insurance program offering specialized, full spectrum coverage. Contact Alteris: 877-590-0775 [12-1]


Entertainment & Sports

&K Insurance claims “over 75 programs available on admitted paper with no prior approval or appointment needed to submit applications for quotation. “ The MGA can be reached at 800-637-4757 or www. [11-6]


Group Homes

roup Homes Programs for such risks as Hospice, Agencies for Aging, Homeless Shelters, Rehab Facilities, Adult Day-Care Facilities, etc. Comprehensive packages available - limits up to $1M/$3M - customize with many optional coverages. AFC Insurance - Toll Free: 877-456-5323


Hair & Beauty Insurance Program

ASS - Salon & Spa Specialty Insurance administered by Brownyard Group open to agents seeking access to program. 888-823-9380 or Email: sassi@brownyard. com [11-7]


Health & Human Services

FC Insurance - Package programs or ala carte. Contact: 877-456-5323 [12-2]

The Underwriter’s Insider

Table of Contents



ational Ins Underwriting -Webbased quick quotes, most protection classes & zip-codes OK - $40K - $750K dwelling values with replacement cost available. No credit scoring. Renters policies available. Contact: Craig Calver - 800-338-2680 X 508.


Kidnap & Ransom

cademic institutions, energy companies, engineering firms, hospitals and healthcare, houses of worship, manufacturing firms, etc. Contact Victor O. Schinner & Co., Inc. Jeff Grigsby - 877-453-2071 or jeffg@ [12-1]


Life Agent E&O

ife agent E&O from Rockwood Programs. Coverage limits from $250K to $1 Million. Base rates from $400 to $550. Individual policies. Indentity theft included. No shared aggregates. Includes mutual fund placement. Call 877-242-2487 or email [12-4]

Marine Risks Worker’s Comp & Longshore & Harbor Workers’ Comp


eaBright Insurance Company offers high quality workers’ compensation coverage for your clients who are small maritime employers and other marine-related businesses. SeaBright provides seamless cov All Risks, LTD 410-828-5810 rlang@allrisks. com or Appalachian Underwriters, Inc. – Oak Ridge, TN 865-425-1051 warren. or Peachtree Special Risk Brokers – Metairie, LA 504830-7347 [11-7]


Martial Arts

&K Insurance announces expanded coverage & lower minimum premiums on martial arts coverage. General Aggregate Limit increased to $5M - Participants Med Pay to $150K. The MGA can be reached at 800-637-4757 or www.kandkinsurance. com. [11-6]


Ocean & Inland Marine

prdwode Facilties, Contractors doing:

Inc. piers,

Have a P&C Product Announcement? Send your press release or one-paragraph announcement to docks, wharfs, bridges, breakwaters, cranes, dredging, etc. 6455 East Johns Crossing, Suite 115 Johns Creek, GA 30097 (678) 736-6720 • Facsimile: (678) 736-6726 - Carter, Kimberly - 678 7366720, Ext. 1000 - [11-7]


Professional Liability

echnology & Cyber, Architects & Engineers, RE Agents, Insurance Agents E&O, Misc. Pro Liability - and more: Contact Atlantic Specialty Lines 877-5459100 [12-1]


ictor O. Schinnerer - A-rated carriers -Real Estate Agents, Healthcare Consultants, General & Artisan Contractors, Architects, engineers & consultants, public entities such as school leaders and public officiials. Contact: 877-4532071 jeffg@


Real Estate E&O

overage for open houses, mold, network risks and privacy claims are now part of Victor O. Schinnerer & Company’s Real Estate E&O policy. Schinnerer includes the three new coverages at no additional premium. Call to ck on your state: Starr Crusenberry Starr.N.Crusenberry@ - 301-951-6904 [116]



rgo Insurance announces lower rates filed on restaurant coverage including food spoilage coverage. Full commission and no agency appointment necessary. Company is looking for family style, family grills, casual style, fine dining and limited cooking restaurants such as pizza and sub shops. Email csmktgprograms@ 877-590-0775 [11-6]


orman Spencer’s Real Estate Program - “one of the most

comprehensive policies in the market with highly competitive pricing” Coverage is available to risks whose services include Residential and Commercial Sales, Leasing, Property Management, Real Estate Consulting, Auctioneering, Mortgage Brokering, BPO’s and Appraisal, and Escrow Services - Michael Ryder michaelryder@ 800.477.9192 x204 [11-7]


Security Guard

rownyard Programs announces coverage for security guards, claiming to insure 15 of the top 40 security guard companies in the U.S. Brownyard Programs - www. or pvancott@ [12-4]


Tech Consultants E&O

odern Insurance Consultants - website design, software development, database admin, web hosting, software/hardware sales - and more. IT consultants up to $15M in annual sales. Contact Andrew Lawrie - 305-248-9495 X 9108 - alawrie@ [12-2]

Welding Supply & Industrial


Gas Distributors

he WDPG Program is dedicated to this class of business and has been a leading choice of agents and welding supply distributors since 1987. Quick Turn around Quotes: Jeannie Coda: [11-6]


Privacy/Data Breach Coverage

irst party expense and third party liability coverage available for many E-Threats and E-Exposures. Contact RPS, Inc. at 800-336-5659 or 11-7]


Table of Contents



ALLAHASSEE, Fla. – Florida against the Death Master File to check Insurance Commissioner for evidence that a person insured Kevin McCarty announced by Metlife may have died. If a match today that a $40 million settlement is found, the company will conduct a has been reached between nine “thorough search” for the insured or Metropolitan Life (MetLife) insurance beneficiaries using databases, mail, companies and the Florida Department telephone calls and email (if available). of Financial Services (DFS), overseen by Chief Financial Officer Jeff • If, within one year, an insured Atwater, the Florida Office of or beneficiary cannot be found, the Attorney General (AG), MetLife will report and pay overseen by Attorney General the death benefit or annuity Pam Bondi, and the Florida payment to the appropriate Office of Insurance Regulation unclaimed property (Office) along with the lead states department. in the investigation. The agreement pertains • MetLife also to the location of agreed to search life and annuity for insureds or beneficiaries beneficiaries Kevin McCarty and the of low-value Florida Insurance Commissioner reporting of or industrial life unclaimed property. A copy of the insurance policies that were sold in agreement and related orders is the early 1900’s up to 1964. Many of available here: National Regulatory these policies were sold in Florida. Settlement Agreement; Florida Multi- MetLife is making extra efforts to Agency Agreement. gather information needed to identify these insureds. The industrial policies alone are estimated to include almost As part of the agreement, 15,000 Florida policyholders with over MetLife agreed to: $9 million in face value. The face value for national industrial life policies is • Adopt business reforms expected to exceed $400 million. strengthening efforts to locate policyholders and beneficiaries within This agreement is the result of a joint 120 days of an insured’s death. investigation undertaken with the Office, DFS, the AG, and coordinated • Conduct quarterly matches for a with the insurance departments year, and then monthly matches of Illinois, California, Pennsylvania,


Table of Contents

New Hampshire and North Dakota. A related agreement is being signed by MetLife and Unclaimed Property officials in 30 states. “This agreement represents another milestone in the ongoing coordinated multi-state multi-agency investigation to change industry practices. Consumers need to know that when purchasing insurance products critical to their financial security – a promise made is a promise kept. We will remain vigilant in our review of other large insurance groups and anticipate concluding similar settlements with other companies to ensure that life insurance and annuity beneficiaries receive the benefits to which they are entitled,” stated Insurance Commissioner Kevin McCarty. “This settlement with MetLife is another important step in correcting a long-standing practice within life insurance companies that was not in the best interest of their customers,” CFO Atwater said. “This agreement sends a strong message that Florida will always stand up for its consumers. Companies doing business in this state should expect to operate by the highest ethical standards and will be held accountable. I’m eager to begin reuniting deserving Floridians with the dollars that they are rightfully owed.” "Life




The Underwriter’s Insider

do their due diligence to locate beneficiaries and pay them the amount agreed upon between the company and the policyholder. In this settlement, MetLife agreed to take the appropriate steps to identify beneficiaries," stated Attorney General Pam Bondi. The practice addressed in this agreement involves life insurance companies determining an insured has died by comparing policyholder records to the Social Security Administration’s Death Master File. Many companies have used this method to stop annuity payments, but have not used the same method to issue life insurance payments. MetLife has agreed that it will do frequent comparisons of its policyholder information to the Death Master File and if it finds that an insured has died, it will either pay the beneficiary or send the policy benefit to the appropriate unclaimed property department within one year. The Florida agreements and orders apply to life insurance annuity contracts, and retained asset accounts held by MetLife. The agreements are expected to result in payments totaling more than $200 million. When an insured or beneficiary cannot be located, the insurance company is responsible for reporting and remitting the monetary value of the policy to the insured’s state department of unclaimed property. During Jeff Atwater’s tenure as CFO, the Bureau of Unclaimed Property has seen record returns, reuniting owners, heirs and businesses with more than one-third of all money returned since the beginning of the program, due largely to aggressive efforts to contact owners. There is no statute of limitations on unclaimed property,

and citizens have the right to claim their property, or the earnings derived from their abandoned property, any time at no cost. This agreement represents a dramatic change in the view of life insurers and a willingness to make efforts to find lost policies. The agreement does not change the underlying insurance policy and companies can still require beneficiaries to submit a death claim as provided by the policy and state laws. In this agreement, though, the companies are stepping up to make extra efforts to find people if they do not receive a claim soon after they have an indication that the insured may have died. In early 2011, the National Association of Insurance Commissioners (NAIC) formed the Investigation of Life/ Annuities Claim Settlement Practices Task Force chaired by Commissioner McCarty to guide and coordinate the multistate examination process, and conducted public hearings in Florida and California in May 2011 on this issue. Both Prudential Insurance Company of America (Prudential) and its affiliates along with the John Hancock Life Insurance Company (John Hancock) have already reached similar agreements with the Office, DFS and the AG. The states of Florida, California, Illinois, North Dakota, New Hampshire and Pennsylvania are serving as lead states for examinations of the largest insurance companies. During this stage of the Task Force’s work, the focus has been on the largest 40 insurance groups, which comprise more than 92.4% of the market for life and annuity products nationwide.

Table of Contents



risco, TX - Penn Treaty American Corporation announced that in an unprecedented decision of significant national consequence, the Commonwealth Court of Pennsylvania has disallowed efforts by the Pennsylvania Insurance Department (PID) to liquidate two long-term care insurance (LTCI) companies domiciled in Pennsylvania. In the Court’s 164-page Memorandum Opinion and Order of May 3, 2012, issued after a 30-day trial and review of more than 1,000 pages of post-trial briefing and thousands of pages of trial exhibits, Judge Mary Hannah Leavitt denied the PID’s petitions to liquidate Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company (the Companies). Headquartered in Allentown, PA. Describing the case as presenting“a serious indictment of the existing system of rate regulation of long-term care insurance” and holding that the Commissioner of the PID has “not undertaken a meaningful effort to rehabilitate the Companies and, to the contrary, has acted to frustrate rehabilitation...” The Court’s ruling is the first time a petition to liquidate an insurance company has been defeated in Pennsylvania. Nationwide, such petitions filed by state insurance departments are routinely granted. 23



ith the economy in a rough patch, and election-year uncertainty about healthcare, income, and gift/estate taxes, many agents and advisors are reporting that new business is more difficult to find than in years past. Here are four ideas that can help you keep your practice growing during tough times:

#1 – College Funding Planning Higher 24




Families with children point to the cost of college as a major financial obstacle. W h i l e traditional planning tools like 529 plans are available, there are s e v e r a l Matthew A. Treskovich new and non-traditional Reviewing methods of saving to fund a college an easy, education and getting discounted tuition rates. The college funding

Table of Contents

planning opportunity is not just for marketing to parents – grandparents, aunts and uncles are great prospects as well. Offering unique solutions to this problem will attract new clients and strengthen relationships with old ones.

#2 – Tax Returns as a Planning Tool a client’s tax return is non-threatening ways See Treskovich Page 34 The Underwriter’s Insider


“The Final Authority on Everything!” Office Climate Change

Please help settle a big argument in our

office. Because it is usually hot when we arrive in the morning, one of the staff insists on turning the thermostat to 60 degrees when we come in the office. Finally, when we are all freezing someone will go over and set it to 74 degrees where we are all comfortable. I say set it at 74 to begin with and she insists it gets cooler faster when set to 68. I’ve got lunch bet on your answer! — H.H. Miami, FL

H.H. - order big and don’t forget dessert because you won this one. Although you don’t identify yourself by gender, this thermostat issue is usually a man/woman argument — with the man taking your position, probably because of a greater understanding of the mechanical issues involved. First - an air conditioner is either on or off. It doesn’t blow different temperature air. Many people assume that if you set the temp to 60, for example, the A/C unit is blowing 60 degree air. It is not. It will simply stay on longer until the temperature in the room drops to 60 degrees. Likewise, if you set the temp to 74, it will blow exactly the same temperature cold air — but will cycle off when the room temperature drops to 74 — where everybody is comfortable. The temperature will not reach 74 degrees a single milliseconds sooner if the A/C is set to 60 or 50 or 40 degrees.


SEEN A FREAKIN’ MANATEE! Yet when I take my family boating, I am more or less continually assaulted by Manatee warning signs and Manatee SLOW MINIMUM WAKE signs. Why you’d think there would be herds of ‘em leaping across the bow of my boat by the number of signs and regulations posted! It’s getting so going any kind of distance in a small boat is impossible because most of the way is idle only. Bigger boats can use the ocean, but it can really beat up your passengers in a smaller boat if the seas are a little rough. I feel sorry for the fat little fellas if they keep swimming into boats, but hey, it’s getting ridiculous! I didn’t buy a $30,000 boat to idle down the waterway at 2mph. Thanks for letting blow off some steam and we love The Insider! - E.T. Ft. Lauderdale, FL

We hear you brother — and share your frustration. And if you accidentally miss one of them “Slow Manatee” signs, you can incur hefty fines from one of the water enforcement agencies. We’ve never seen a Manatee either - except on

Have a question for The Advisor?

Click HERE!

the Discovery Channel, but have been forced to crawl through a 1/2 mile wide Intracoastal more times than I’d like to recall. In some areas, the Manatee speed limits have all but made the Intracoastal unusable for pleasure boating. It seems the politics of “saving the Manatee” may be way ahead of common sense on this issue. Radical Animal-Rights Activists have garnered more public and political support in favor of unreasonable antiboater laws than we’ll ever be able to overcome. We are sure there are some Manatees out there, but I’m not certain of the wisdom or fairness of curtailing one of Florida’s largest industries to protect that small population. Should we shut down I-95 when the endangered land crabs start crossing the highway during mating season?

Doing The Manatee Crawl


his is a little off-topic, but I like the answers you give in the magazine and I was hoping you’d let me rant a little. I’ve been boating in South Florida for about 30 years. I’m sure I’ve covered several thousand miles of Intracoastal Waterway and coastal ocean. I’VE NEVER

Table of Contents



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. REGULAR CLASSIFIED RULES: Submit all ads online at: www. Only $1.00 per word, including title line and response info. Payment must be received prior to print date. Nationwide Agency Owner Wanted - Chicago SW Burbs!

Let’s combine... Agency looking to Merge

Business is expanding so rapidly and we need talented, business-minded individuals. What We Offer

Don’t just sell your book of business and loose income. Why not merge and keep your client base. Contact: Peralta Insurance We have been in business for over twelve years, and have a large book of business and looking to expand. We carry all forms of insurance including; Health, Life, Commercial, Auto, Home, and many more. 12039 sw 132ct Miami Fl 33186 305-969-6960 peralta_ins@ 9-5

- Base salary, commissions and limited benefits for the first 18-24 months - Up to $95K in financial support upon graduation to offset agency start-up costs - Brand name recognition of a Fortune 500 company - Extensive sales and product training opportunities - Dedicated support from a team of agency development specialists 9-3

Coral Springs, FL Experienced 2-20 Agents Experienced P & C Agents required for a Coral Springs office. Good commission and renewal offered. Contact:

Independent Agency For Sale or Merger Location is in North Florida area. $150,000 Firm. Email For More Info:



AGENCY FOR SALE Very profitable Personal & Commercial Lines agency for sale in southwest Florida. Owner re-locating and very motivated to sell. Close to $300,000 in commissions with over 2500 clients. Good mix of auto,homeowners and commercial clients. Call Raj at 239-699-7047 9-4 26

220 Producer Anywhere in Florida Well established commercial agency specializing in the realm of workers’ comp seeks producer. You can be located anywhere in Florida. Excellent commission splits - training and leads. Other commercial markets also available - GL, etc.Contact: 9-5

Table of Contents

FREE! free insider subscription! sign up yourself or any associate at this link

HERE Experienced Commercial Lines Underwriter

Boca Raton Base MGA seeking experienced Commercial lines UW/rater should have company experience, must be able to multi task and deal with Ins Agents and companies as part of your daily duties must have good computer skills and be a team player. Send resume to:


Looking to Expand Book of Business

Looking to buy independent books in Hillsborough County, Florida, full or in part. Please contact me for a confidential discussion. 9-4 The Underwriter’s Insider

Nationwide Agency Owner East Bay Area, CA We need talented, business-minded individuals interested in our Future Agency Owner opportunity located in San Ramon OR Walnut Creek, CA market. What Nationwide Offers • Base salary, commissions and limited benefits for the first 18-24 months • Up to $95K in financial support upon graduation to offset agency startup costs • Extensive sales and product training opportunities • Dedicated support •To apply: 9-5

"Socialism is the philosophy of failure, the creed of ignorance and the gospel of envy. Its only inherent virtue is the equal sharing of misery." - Winston Churchill

Franchised Insurance Agency For Sale Well Est. Florida 2-20 Licensed and Franchised General Insurance Agency. Owner consolidated 2 locations into one in 2012 reducing expenses & increasing profits as a result. Pre-qualified for SBA Lender Financing w/ $81,250 Down. Terms are approximate. Asking $325K. Contact Corporate Investment Business Brokers | (239) 936-1718 | 9-5

Table of Contents

Commercial P&C Ins Sales Position Wanted Tampa,FL Area Recent FSU grad with insurance-related class work seeking full-time opportunity in local agency. I already hold a 4-40 license enrolled in 2-20 class. Great work ethic - fast learner anxious to begin my insurance career! I would also consider the West Palm Beach area. Please email:



“We are in a historical moment when the most powerful

How the First Family Shares the Sacrifice:

“The American people can ill afford to keep sending the First

Family on vacations around the globe. There needs to be greater sensitivity to the costs borne by taxpayers for these personal trips. It is hypocritical for President Obama to fire GSA officials for wasteful conference spending, while his family went on a luxury vacation in the Costa del Sol Spain that cost taxpayers nearly half a million dollars.” - Judicial Watch President Tom Fitton (a taxpayer watchdog group) commenting on the recent report that Michelle Obama’s 2010 trip to Spain cost the American taxpayer $467,000. The data was finally released by the Whitehouse after a Freedom of Information request forced them to deliver the data. Shared sacrifice Mr. President? Ironically, the news of the nearly half a million dollar vacation comes just as the Campaigner in Chief embarks on his Hate-The-Rich campaign tour. How does he keep a straight face?

“In the last three years, Michelle Obama has taken sixteen

vacations on the people’s dime. Sixteen. I haven’t taken sixteen vacations in the 40 years I’ve been working for a living! And may we hasten to add that Michelle Obama doesn’t even HAVE a job from which to vacate! This time Queen Michelle and her brood are swooshing the slopes of Aspen on another well deserved vacation away from Washington, courtesy U.S. taxpayers. One has to wonder why the Old Media is turning a blind eye to these million-dollar extravagances? Especially in this time when millions of Americans are out of work and cannot find suitable jobs the Old Media says nothing while Michelle lavishes herself with expensive vacations. Did I mention we are paying for all this?” - Blogger Warner Todd Huston who goes on to itemize some of the millions taxpayers have been billed for the extravagant and never-ending Obama vacations - taken while millions of American are out of work and barely able to feed their families. Shared sacrifice Mr. President? MORE

“The entire Obama campaign is a slice-and-dice operation,

pandering to one group after another, particularly those that elected Obama in 2008—blacks, Hispanics, women, young people—and for whom the thrill is now gone. What to do? Try fear. Create division, stir resentment, by whatever means necessary—bogus court challenges, dead-end Senate bills, and a forest of straw men. - Columnist and pundit Charles Krauthammer assessing the Divider-in-Chief’s strategy to move the political conversation away from his awful performance on the economy since taking office. MORE 28

people in the two political parties are at the extreme ends of their party. We have deadlock right now. We have gridlock right now,” he explained. “When they do come together to find some compromise it’s the Democrats saying, ‘let’s spend $500 billion we don’t have, and the Republicans saying, ‘no, no that’s ridiculous. Let’s spend $300 billion we don’t have.’ So they end up compromising and spend $400 billion we don’t have.” - Conservative Indiana Senator-elect Richard Mourdock commenting on the status quo in Washington after his surprise defeat of six-term Senator Richard Lugar in the Indiana Republican primary - one of several primary races held in May which should give the Obama regime and hopeful Democrats everywhere much cause of concern - as a conservative ascendency moving towards the November election seems a certainty. MORE

Hybrid? Or Byebrid...

“If you take two similar, even identical models, one a hybrid,

one not, for the Ford Fusion, for example, you’re paying a $5,000 premium up front, versus a non-hybrid. Going forward, it could take 8 to 10 years to make up that savings. If you only plan to keep the car for 6 or 8 years, you are not going to see it. People are thinking twice about that kind of a decision.” - Auto industry expert and UC Berkeley Prof. Harley Shaiken commenting on the news on 35% of hybrid car owners are choosing not to purchase another hybrid - claiming they are not delivering on either mileage claims or “green” claims.

Gov. Christie Nixes NJ Insurance Exchange

“The very constitutionality of the (Patient Protection and

Affordable Care Act) is cloaked in uncertainty. Because it is not known whether the Affordable Care Act will remain, in whole or in part, it would be imprudent for New Jersey now to create an exchange before these critical threshold issues are decided with finality by the court.” - New Jersey Governor Chris Christie on why he vetoed legislation that would create a state health insurance exchange as required by ObamaCare. The exchange would provide a venue for insurers to provide coverage to individuals and small employers.

It’s The Economy Stupid!

“Especially when I come to New York, sometimes people go around and say, ‘I don’t know anybody who is not supporting you, Barack.’ I say, ‘You live in Manhattan, man.’ - An increasingly nervous President Barack Obama as his poll numbers continue to slide against Mitt Romney.

Table of Contents

The Underwriter’s Insider

FREE! free insider subscription! sign up yourself or any associate at this link


To Visit Insider Sponsors, simply click on the Sponsor’s ad!





2012 Issue 4


2012 Issue 3

2012 Issue 1

2011 Issue 7

2011 Issue 5

2011 Issue 4

Table of Contents

2012 Issue 2

2011 Issue 6

2011 Issue 3 The Underwriter’s Insider


2011 Issue 2

2011 Issue 1

2010 Issue 7

2010 Issue 6

2005 Issue 9

2005 Issue 2

Table of Contents

2010 Issue 8

2010 Issue 5

2005 Issue 5 31

Continued From Page 14

FIGHTING SHARIA Somalia after Sharia dominated it. If we compare the above countries to Islamic countries that did not make Sharia Law the main law of the land - such as Turkey, Qatar, UAE, Tunisia, Malaysia, and Indonesia - we notice that the former countries did not cause as much trouble for the U.S. as the Shariaruled countries did. This is unlikely to be just a coincidence. Sharia causes animosity toward the U.S. (as a symbol of the highest power of western civilization) in several ways as we see below:


and inferiority, creates frustrations that lead to a desire to destroy or erase the world power (i.e. the U.S. and other western countries) that 'deprives' them of their superiority.


3. Sharia principles teach the values of Jihad to spread the religion and subjugate non-Muslims to Islamic laws. With no single exception, all schools of Islamic Jurisprudence (Shafeii, Hanbali, Maleki, and Hanafi)-until todaypromote that Muslims MUST declare war on and fight Non-Muslims until they subjugate to Islam. The integration of the previous 3 factors can explain to some extent the observed positive correlation between implementing Sharia and creating hostility toward the U.S. and other western countries.

1. Sharia Law creates hatred toward the values of freedom and equality that are the founding principles of the U.S.. For example, Sharia allows beating women, polygamy, and pedophilia. Additionally, it promotes killing apostates, gays, and adulterers. Islamists who adopt these Sharia values cannot have anything but hatred toward the countries that promotes freedom and liberty.

To conclude; the trouble that has faced the U.S. from countries that adopted Sharia Law in the last few decades, and the enormous costs that were paid by the U.S. in these confrontations, should make the U.S. consider Sharia not only an infringement to Human Rights but, more importantly, a serious. threat to its national security and strategic interests.

2. Sharia induces a notion of the supremacy of Islam above all nonMuslims. Several Quranic verses have been used to promote this principle of supremacy of Muslims and Islam (See: Quran[i] 48:28). Also, Sharia rules necessitate that Non-Muslims in Muslim society MUST pay a special form of Tax of humiliation 'Jizia' to the Muslim rulers. Non-Muslims-according to Sharia- MUST be disgraced[ii] during paying such taxes. The psychological contradiction in the mind of Islamists between their sense of the supremacy of Islam, and the reality of their weakness

[i] Quran 48:28 It is He Who has sent His Messenger with Guidance and the Religion of Truth, to proclaim it over (superior to) all religion: and enough is Allah for a Witness. [ii] Quran 9:29 Fight those who believe not in Allah nor the Last Day, nor hold that forbidden which hath been forbidden by Allah and His Messenger, nor acknowledge the religion of Truth, (Islam) of the People of the Book (Jews and Christians), until they pay the Jizya with willing submission, and feel themselves subdued.

Table of Contents

The Pursuit of Light Click on Image To View


ASA dreams big science. In this awesome new short, NASA presents the Earth, the planets, the Sun, and the endless universe beyond. Come for the cool, stay for the music, take away a sense of wonder to share. It’s six minutes from Earth to forever, and you can see it here!


Click on Image To View


heck out this incredible NASA produced video created from actual high-resolution images of our nearest celestial neighbor. One of the images actually includes one of the lunar landers and the accompanying lunar rover. The Underwriter’s Insider

Continued from Page 10

ZALMA preferred rate policies, but did not indicate whether Grissom was eligible. In August 2005, Grissom’s home was destroyed by Hurricane Katrina. Liberty Mutual paid Grissom’s $121,200 claim, the policy maximum. Grissom then sued Liberty Mutual in Mississippi state court to recover the difference between the coverage he had and the coverage he could have had under the preferred risk policy. Liberty Mutual appeals.

DISCUSSION The issues on appeal were: 1. whether the district court erred by determining this was a policy procurement case rather than a claims handling case subject to federal preemption; 2. whether the district court erred by allowing this case to go to a jury when federal funds were at risk; and 3. whether Mississippi law recognizes negligent misrepresentation in the insurance context.

procurement.” The key factor to determine if an interaction with an insurer is “claims handling” is the status of the insured at the time of the interaction between the parties. If the individual is already covered and in the midst of a non-lapsed insurance policy, the interactions between the insurer and insured, including renewals of insurance, are “claims handling” subject to preemption. Grissom was insured by Liberty Mutual at the time of his interactions with Liberty Mutual. He filed a claim for coverage which was granted and paid in full. Only after Grissom discovered his eligibility for additional subsidized coverage did he raise the negligent misrepresentation claim to obtain additional covered payments. Grissom is alleging that while he was already insured, his insurer should have been

Federal Funds Liberty Mutual alleges that the district court erred in submitting this case to the jury because the federal government would be required to pay any damages award and has not affirmatively and unambiguously granted the right to a jury trial for such matters. Grissom does not dispute that if federal funds are at stake a jury trial is inappropriate. However, he alleged FEMA is not obligated to pay damage awards that result from omissions by WYO insurance companies because the insurance company receives a commission for signing up insureds. By submitting the case to the jury, the district court implicitly determined that the Arrangement which forms a contract between WYO insurers and FEMA does not require FEMA to either defend or indemnify Liberty Mutual.

The NFIP establishes private insurers “as fiscal agents of the United States.” [42 U.S.C. § 4071(a) (1).] The federal government pays flood insurance claims and reimburses costs, including defenses costs, for adjustment and payment of claims by private insurers in the WYO program. The federal government will both indemnify and defend WYO Federal Preemption insurers in the program for many insurance and litigation Federal law preempts state more proactive in informing him of expenses unless the litigation is law tort claims arising from claims his eligibility for additional subsidized grounded in actions by the WYO handling by a WYO according to flood insurance coverage. Because Company that are significantly outside multiple Fifth Circuit decisions. Federal Grissom’s dispute with Liberty Mutual the scope of this Arrangement, and/or law, however, does not preempt staterelates to his renewal of a policy involves issues of agent negligence. law procurement-based claims. The already in place—claims handling, dispute is whether Liberty Mutual’s not the initial procurement of the The right to a jury trial has not been failure to inform a current customer, insurance policy — the Fifth Circuit extended by the government to Grissom, he might be eligible for a concluded that Grissom’s state law richer insurance policy constitutes claim is preempted. “claims handling” or is “insurance See Zalma Pg 35

Table of Contents


Continued From Page 24

TRESKOVICH: MARKETING OPPORTUNITIES to identify financial planning opportunities. This type of review can cover many areas, including making sure that the amount of insurance in place is appropriate given the income earned by the client, determining whether retirement savings are adequate, and evaluating the benefit of diversifying investments into alternative asset classes like insurance and annuity products. Turnkey tax-return-based marketing kits are available for independent agents at no cost! Any agent looking to maximize an existing book of business should offer this service.

calendaring systems like Gmail, Zimbra, and Outlook allow separate calendars to be created.

#4 – Non-Traditional Life Insurance Needs Everyone is familiar with the usual “death benefit needs” - final expenses, paying off debts, replacing lost income, providing estate liquidity, and business continuation. However, there are dozens of other reasons why clients might need

• •

• •

Guaranteeing that a retirement fund will be completed Paying for domestic services if something happens to a caregiver Satisfying obligations that result from a divorce agreement Locking in the value of assets for heirs • Funding post-retirement health care costs • Collateralizing a business loan Uncertain environments are always full of opportunities. The key is to focus on what you can control – prospecting, providing excellent customer service, staying close to clients, and having new and interesting ideas to talk about – and not worry about things that are out of your hands.

#3 – Policy Reviews! This is probably the mosttalked-about and the leastpracticed concept in the insurance business. Insurance policies are assets, and should be treated like an asset and not just a document that is filed and forgotten. Several insurers offer free policy review marketing kits. The biggest hurdle to overcome with a policy review strategy is getting organized and remembering to schedule appointments for reviews. An organized campaign in a CRM system, or even something as simple as a dedicated policy review reminder calendar, will make the process much more successful. Most common 34

a death benefit, and establishing expertise in a particular niche can be very lucrative. Some non-traditional sources for life insurance needs include:

Creekmore Insurance Group is a full-service life insurance brokerage specializing in complex life cases and impaired risks. Creekmore serves independent agents and financial advisors across the country. Matt is the CFO and oversees advanced case design and underwriting. He can be reached via email Matt@ or at 800-9360339. For more information, visit

Table of Contents

The Underwriter’s Insider

Continued from Page 33

ZALMA WYO cases because the line between between a WYO company and FEMA is too thin to matter for the purposes of federal immunities. Because FEMA is presumed to be paying both the litigation expenses and any resulting damage award, the Fifth Circuit concluded that the district court erred in submitting this case to the jury.

Negligent Misrepresentation by Insurer in Mississippi Although the state law claim is preempted, Grissom’s negligent misrepresentation by an insurer claim also does not find a basis in Mississippi law. In Mississippi, a plaintiff must meet five factors to succeed in a claim of negligent misrepresentation: 1. that the representation or omission is material or significant; 2. that the person/entity charged with the negligence failed to exercise that degree of diligence and expertise the public is entitled to expect of such persons/entities; 3. that the plaintiff reasonably relied upon the misrepresentation or omission; and 4. that the plaintiff suffered damages as a direct and proximate result of such reasonable reliance. Mississippi follows the legal principal that the purchase of insurance is an arms-length transaction and no fiduciary duty arises between an insurance company or its agents and the purchaser of the insurance. In Mississippi, a claim of fraud by omission arises only where the defendant had a duty to disclose

material facts purportedly omitted. Insurance Agents in Mississippi do not have an affirmative duty to advise buyers regarding their coverage needs. Liberty Mutual was not required to provide advice to insurance customers. Because Liberty Mutual was not offering insurance advice, was not a fiduciary of Grissom, and did not offer any statement to Grissom to imply the lack of alternative insurance options, Mississippi law would not recognize negligent misrepresentation as a cause of action against Liberty Mutual and the submission of negligent misrepresentation to the jury was error. The Fifth Circuit reversed the ruling of the district court with instructions to dismiss Grissom’s claim.

ZALMA OPINION Flood insurance is not insurance in the usual sense but is a federal entitlement program that is called “insurance.” It is treated differently than the type of policies actually issued by an insurance company. In this case, Liberty Mutual, did not underwrite and insurance policy but simply acted as a representative of the federal government and took a fee for handling the issuance of the policy and the handling of claims. More importantly, the Fifth Circuit accepted the rule in Mississippi and most states that the relationship between an insurance agent and his or her customer is not a fiduciary relationship and does not remove from the person to be insured the duty to take care of his or her needs. The insurer and the agent are only obligated to obtain for the insured that which the insured asked for

Table of Contents

and not to force them to buy more or better insurance. Mr. Grissom got the insurance he ordered. He was not interested in a better insurance coverage until Katrina destroyed his house. Although hindsight is always 20/20 an insurer should not be required to pay for what hindsight told Mr. Grissom he should have bought.

Commercial P&C Ins Sales Position Wanted Tampa,FL Area Recent FSU grad with insurance-related class work seeking full-time opportunity in local agency. I already hold a 4-40 license - Enrolled in 2-20 class. Great work ethic - fast learner - anxious to begin my insurance career! I would also consider the West Palm Beach area. Please email:

FREE! free insider subscription! sign up yourself or any associate at this link



Experts and Consultants for Insurance Disputes 4441 Sepulveda Boulevard Culver City, California 90230 310-390-4455

Consultation from Zalma Insurance Consultants (ZIC) can save you or your client thousands of dollars in the defense or prosecution of an insurance dispute. ZIC provides expert advice and counsel insurers and plaintiffs’ counsel find indispensable. Consultation from ZIC can save you, your counsel or client hundreds of hours of investigative and legal work. ZALMA INSURANCE CONSULTANTS is a service of Barry Zalma, Inc. a California professional corporation. Barry Zalma is an internationally recognized expert on insurance coverage, insurance claims handling, insurance bad faith, insurance fraud detection, the defeat of false and fraudulent claims, Barry Zalma, Esq. insurance claims handling, and the resolution of insurance disputes. As a consultant, expert witness, lawyer, author, mediator or arbitrator he serves all parties who need consultation or expert testimony on matters relating to insurance coverage, insurance claims handling, insurance fraud and the tort of bad faith. Barry Zalma founded Zalma Insurance Consultants to help resolve any insurance claim problem faced by you or your clients that do not need Mr. Zalma’s services as a lawyer. His experience and skill as a consultant and expert witness can make the difference before a jury or other trier of fact. For more than 44 years as a claims person and insurance coverage attorney, Barry Zalma has represented insurers, advised insurers on claims handling, interpreted coverages and testified as an insurance coverage, insurance bad faith, insurance claims handling and insurance fraud expert on behalf of insurers and policyholders in state and federal courts.

Expert Testimony

Zalma Insurance Consultants serves insurers, policyholders, underwriters, brokers, agents, adjusters, public insurance adjusters, lawyers and any person involved in an insurance dispute. Because he is an attorney licensed to practice law in the state of California M r. Zalma may be prohibited by California case law from acting as a consultant or expert witness and, therefore, refuses to serve in any situation where a past client of his law firm, Barry Zalma, Inc. is adverse to anyone seeking his services.

Y ou can obtain M r. Zalma’s C.V . at and his e-book publications and blogs daily at Zalma on Insurance,


Table of Contents


The Underwriter’s Insider

Continued From Page 9

KIM KOMANDO Similarly, apps and iPads are helping kids with autism communicate, convey feelings and break out of their shells of isolation.

doctor’s offices and clinics. Why, just a few years ago, it was strictly forbidden to even use those newfangled cell phones inside a hospital! That’s why I love technology and the digital lifestyle. I can’t wait to see what they think up next.

Mobile medical apps - called mHealth - are now so ubiquitous that it’s easy to take them for granted. They give doctors and patients access to up-to-date information anytime, anywhere on smartphones and tablets.

Copyright 2012, WestStar TalkRadio Network. All rights reserved. Kim Komando hosts the nation’s largest talk radio show about consumer electronics, computers and the Internet. To get the podcast, watch the show or find the station nearest you, visit: http://www.komando. com/listen. To subscribe to Kim’s free email newsletters, sign-up at: http://

Someone in your family probably already relies on an app several times a day to monitor blood pressure, heart rate or their blood glucose levels. These medical apps let patients track their conditions. After falling off his roof and breaking his leg, Damon Lynn’s experience with chronic pain inspired him to design the My Pain Diary app. The app now helps thousands with arthritis, fibromyalgia and other painful maladies track symptoms and improve communication with their doctors. Four out of five doctors now use mobile devices to call up patient records and consult treatment guidelines. Some apps even turn mobile gadgets into remote monitors, allowing high-risk patients to stay in their homes while also cutting down on pricey office visits. It’s really quite amazing how much technology is now being used in

Table of Contents




ALLAHASSEE, FL—Florida Chief Financial Officer Jeff Atwater announced the arrest today of a Miami boat captain on a first-degree grand theft charge for allegedly sinking a $1.86 million yacht in 2009 off the Bahamas. Robert Figueredo, 49, was arrested by detectives from the Florida Department of Financial Services Division of Insurance Fraud (DIF).

known as the “Tongue of the Ocean” sunken boat. offshore from the Bahamas. Figueredo was booked into the MiamiSuspicions of Figueredo’s involvement Dade County Jail. If convicted on the were initially raised by a statement charge, he faces up to 30 years in prison. from Figueredo’s ex-girlfriend, who told Miami-Dade State Attorney Katherine police that he had bragged to her that Fernandez Rundle is prosecuting the he had sunk the boat deliberately. charge. Anyone with information about these or any other incidents of suspected insurance fraud is asked to call 1-800-3780445. Citizens who provide tips can remain anonymous. The Department of Financial Services to date has awarded almost $275,000 to more than 40 citizens as part of its Anti-Fraud Reward Program.

“There is no such thing as a victimless crime,” CFO Atwater said. “Those who reap the spoils of perpetuating fraud victimize every Florida consumer. Those who cheat their fellow Floridians out of their hard-earned dollars will be captured and put behind bars.”

“There is no such thing as a victimless crime,” CFO Atwater said. “Those who reap the spoils of perpetuating fraud victimize every Florida consumer. Those who cheat their fellow Floridians out of their hard-earned dollars will be captured and put behind bars.”

The division initiated an investigation into the sinking of the 80-foot yacht “Star One” reported stolen from Key Biscayne on May 4, 2009, one day after it was discovered scuttled in an area

Figueredo gave a sworn statement to the insurance company that he had no knowledge of the theft, and he was completely unaware of who had taken the Star One. Federated Insurance Company received the claim for the



ALEIGH, NC -- Insurance Commissioner Wayne Goodwin today announced the arrest of John A. Womack, Jr., 66, of 1100 North Rotary Drive, High Point; he is charged with four counts of mail fraud, two counts of making false statements to an insurance examiner, and five counts of making false entries into the accounts and books of an insurance business.


Department of Insurance criminal investigators allege that, while working as a licensed insurance agent under the business name Womack and Associates in High Point, Womack misled insurance clients into believing they were investing in Certificates of Deposit and annuities issued by several insurance companies. After an investigation by the North Carolina Department of Insurance Criminal

Table of Contents

The program rewards individuals up to $25,000 for information that directly leads to an arrest and conviction in an insurance fraud scheme. Investigation Division, its Agent Services Division and the U.S. Secret Service, Womack was indicted by a federal grand jury in Greensboro on May 2. According to the indictment, insurance companies did not issue investments to his customers and Womack instead took the funds for personal use. Womack was arrested on May 3 by North Carolina Department of Insurance investigators and U.S. Secret Service special agents. He was taken before a federal magistrate in Greensboro and released on a $10,000 unsecured bond. The Underwriter’s Insider




ome of you may recall, especially my Tennessee readers, from your days in American History (do they still teach it?) that Colonel David Crockett, aka, King of the Wild Frontier, ran for the U.S. Congress, 9th District, of the Great State of Tennessee. He won and served four years from March 1827 to March1831, losing re-election as a result of his opposition to Andrew Jackson’s Indian Removal Act. He died, famously, almost exactly five years after leaving the Congress at the Battle of the Alamo in San Antonio, Texas. At the time of his statement on the floor of the U.S. Congress, which we shall examine below, Crockett was already a legend amongst his countrymen for his exploits as an Indian fighter, hunter and outdoors man - and quite popular among the common folk. Crockett was anything but an elitist, and shared a Will Rogersesque talent for folksy, common sense that appealed greatly to the average American. As it happened, a bill was taken up one day while on the floor of the Congress to appropriate money to the widow of a well-known and distinguished naval officer. A number of marvelous speeches by his fellow Congressmen had already been offered in support of the bill when the Speaker was about to bang the gavel and give the all-butdecided issue to a vote of the House. That’s when Congressman Crockett

arose :

“Mr. Speaker–I have as much respect for the memory of the deceased, and as much sympathy for the sufferings of the living, if suffering there be, as any man in this House, but we must not permit our respect for the dead or our sympathy for a part of the living to lead us into an act of injustice to the balance of the living.

the deceased lived long after the close of the war; he was in office to the day of his death, and I have never heard that the government was in arrears to him. Every man in this House knows it is not a debt. We cannot, without the grossest corruption, appropriate this money as the payment of a debt. We have not the semblance of authority to appropriate it as a charity. Mr. Speaker, I have said we have the right to give as much money of our own as we please. I am the poorest man on this floor. I cannot vote for this bill, but I will give one week’s pay to the object, and if every member of Congress will do the same, it will amount to more than the bill asks.” The bill, expected to pass unanimously, failed, receiving only a few votes - so powerful were Crockett’s words.

I will not go into an argument to prove that Congress has no power to appropriate this money as an act of charity. Every member upon this floor knows it. We have the right, as individuals, to give away as much of our own money as we please in charity; but as members of Congress we have no right so to appropriate a dollar of the public money. Some eloquent appeals have been made to us upon the ground that it is a debt due the deceased. Mr. Speaker,

Table of Contents

Sometime later, an acquaintance asked him what caused his opposition to the payment to the widow, and Crockett, a story-teller of considerable repute, related the following tale of running into a farmerconstituent on the campaign trail who emphatically told Crockett he would not get his vote.. Crockett why and received the following response: “‘Well, Colonel, it is hardly worth-while to waste time or words upon it. I do not see how it can be mended, but you gave a vote last winter which shows that either you have not capacity to understand the Constitution, or that you are wanting in See Davy Crockett Page 41 39

Continued From Page 13

UNINTENDED CONSEQUENCES who will replace those virgin forests with sugar cane, soy or other bio-fuel crops.

The law of unintended consequences assures disastrous results for those meddling in global affairs without sufficient foresight — “But the growing no matter how well failure of ethanol intended or politically correct the motives of may be only a minor consequence compared the meddlers.

that not a single refinery has been built in this country since the 70’s. And we wonder at $5 per gallon? Consider if Al Gore is as wrong on climate change as he was on ethanol. Will we spend trillions to replace infrastructure unnecessarily? Will the changes do infinitely more harm than good as a result of unintended consequences? Will we make changes so destructive to our economy and the American way of life to where we can never come back?

And that’s not all. The rain forest is perhaps the largest repository of carbon dioxide on Those earnest, groupie greenies the planet - captured surrounding Gore may be true-believers within the dense concerned with nothing more than to what we have to look Not so long ago, in a saving the planet. Yet elitist Gore, at least, vegetation. With deforestation comes a forward to with future November, 2000 in sees himself as a messiah — so elevated Al Gore mistakes.” massive release of that a stump speech in above us mere mortals that we should carbon — last year Kissimmee Florida, Al not question his Tennessee home accounting for fully 20% of all current Gore said, "Everyone consuming 23 times carbon emissions! in Tampa Bay knows the average American “How utterly ironic that Florida depends home's electrical that the Chicken-Little How utterly ironic that The Chicken- on clean beaches and consumption or his of Carbon, Al Gore, Little of Carbon, Al Gore, is largely clean air. While my globe-trotting in is largely responsible responsible for what may be the most opponent refuses to private jets — as he massive release of carbon from a single take a clear stand on lambastes average for what may be the source in the history of mankind - and this, I will. So let me Americans for their most massive release he’s just getting started. pledge to you again, I SUVs. of carbon from a single will ban all new oil and One has to wonder when Gore is gas drilling off of the source in the history of Gore, unconflicted by mankind...” going to come clean with America, yet coast of Florida and errors in calculation even now he may have to get in line California." and application so behind other pandering politicians who serious that they may impact our greatcertainly do not want Eight years later, we grandchildren, charges on undaunted, to offend anybody in are beginning to accruing a net worth reported in “For the amount of the great corn (and see the unintended excess of $100 million trading billions corn you need to fill pivotal election) state consequences of this in "carbon credit" funny-money while up the gas tank of a of Iowa this year. foolish policy. We charging $175 thousand per speech. Cadillac, you could sit back and watch Iowa’s ethanol feed a man for a year.” the Chinese and the "Don't be the last one to figure this out!" production is Russians drill for the approaching 2 billion gallons annually same oil - our oil - as gas prices reach and many of those corn farmers are towards $5.00 per gallon. Thanks to becoming the new Jed Clampets of this Gore and others of his ilk, the same Editor’s Note: This is a reprint of an decade. Don’t tell them to cut back on short-sighted eco-crazy policies that original column first published in the ethanol production if you want to win keep us from drilling our own oil have Insider in 2008 - yet certainly as relevent their vote. created a regulatory climate so dense today as then. 40

Table of Contents

The Underwriter’s Insider

Continued from Page 39

DAVY CROCKETT the honesty and firmness to be guided by it. “ “In either case you are not the man to represent me. But I beg your pardon for expressing it in that way. I did not intend to avail myself of the privilege of the constituent to speak plainly to a candidate for the purpose of insulting or wounding you. I intend by it only to say that your understanding of the Constitution is very different from mine; and I will say to you what, but for my rudeness, I should not have said, that I believe you to be honest. . . . But an understanding of the Constitution different from mine I cannot overlook, because the Constitution, to be worth anything, must be held sacred, and rigidly observed in all its provisions. The man who wields power and misinterprets it is the more dangerous the more honest he is.’ “‘I admit the truth of all you say, but there must be some mistake about it, for I do not remember that I gave any vote last winter upon any constitutional question.’ “‘No, Colonel, there’s no mistake. Though I live here in the backwoods and seldom go from home, I take the papers from Washington and read very carefully all the proceedings of Congress. My papers say that last winter you voted for a bill to appropriate $20,000 to some sufferers by a fire in Georgetown . Is that true?’ “Crockett responded, ‘Well, my friend; I may as well own up. You have got me there. But certainly nobody will complain that a great and rich country like ours should give the insignificant

sum of $20,000 to relieve its suffering women and children, particularly with a full and overflowing Treasury, and I am sure, if you had been there, you would have done just as I did.’ “‘It is not the amount, Colonel, that I complain of; it is the principle. In the first place, the government ought to have in the Treasury no more than enough for its legitimate purposes. But that has nothing to do with the question. The power of collecting and disbursing money at pleasure is the most dangerous power that can be intrusted to man, particularly under our system of collecting revenue by a tariff, which reaches every man in the country, no matter how poor he may be, and the poorer he is the more he pays in proportion to his means. What is worse, it presses upon him without his knowledge where the weight centers, for there is not a man in the United States who can ever guess how much he pays to the government.” “So you see, that while you are contributing to relieve one, you are drawing it from thousands who are even worse off than he. If you had the right to give anything, the amount was simply a matter of discretion with you, and you had as much right to give $20,000,000 as $20,000. If you have the right to give to one, you have the right to give to all; and, as the Constitution neither defines charity nor stipulates the amount, you are at liberty to give to any and everything which you may believe, or profess to believe, is a charity, and to any amount you may think proper. You will very easily perceive what a wide door this would open for fraud and corruption and favoritism, on the one hand, and for robbing the people on the other. No, Colonel, Congress has no right to

Table of Contents

give charity. Individual members may give as much of their own money as they please, but they have no right to touch a dollar of the public money for that purpose. If twice as many houses had been burned in this county as in Georgetown , neither you nor any other member of Congress would have thought of appropriating a dollar for our relief. There are about two hundred and forty members of Congress. If they had shown their sympathy for the sufferers by contributing each one week’s pay, it would have made over $13,000. There are plenty of wealthy men in and around Washington who could have given $20,000 without depriving themselves of even a luxury of life. The congressmen chose to keep their own money, which, if reports be true, some of them spend not very creditably; and the people about Washington , no doubt, applauded you for relieving them from the necessity of giving by giving what was not yours to give. The people have delegated to Congress, by the Constitution, the power to do certain things. To do these, it is authorized to collect and pay moneys, and for nothing else. Everything beyond this is usurpation, and a violation of the Constitution. “‘So you see, Colonel, you have violated the Constitution in what I consider a vital point. It is a precedent fraught with danger to the country, for when Congress once begins to stretch its power beyond the limits of the Constitution, there is no limit to it, and no security for the people. I have no doubt you acted honestly, but that does not make it any better, except as far as you are personally concerned, and you see that I cannot vote for you.’” From that point forward, Crockett never again looked at the public treasury in the same way. So remember the Alamo! 41

The Underwriter's Insider 2012 Issue 5  

The Insider is a trade magazine (EZine) focused on P&C insurance, politics, technology and people. Reaching an email campaign base of 24,000...