2015-16 4th edition houston insurance news · 2016. 9. 16. · houston, tx 77024 713-807-8264 first...
TRANSCRIPT
32015-16 4th Edition houston insurance news
2015-2016 / 4th Edition
DEPARTMENTS
04 Benefits View
05 Committee Spotlight - HIN
10 Have You Heard
14 Affiliate Spotlight
16 UHD - Wendy Braniff
17 EO & QA
19 Legislative Update
22 It’s the Law
22 BuyingPower
23 CSI: Houston
24 Who Has the Last Word
25 In Memoriam
26 Houston Insurance Professionals (HIP)
26 Committee Spotlight - YIPS
30 TechByte
31 IIAH Benefits
31 Plan & Learn
COMMENTARY
08 President’s Message
SPECIAL ITEMS
32 Business Card Ads
CSR 20Appreciation
Bretagne 27
YIP Spring/Summer Social 29
42015-16 4th Edition houston insurance news
STAFF
Scott Mackey Chairman
Laura Wisniewski Vice Chairman
Scott Mackey Photographer
Penny Smith Photographer
Walter Tomlinson Board Liaison
ScottMargraves OfficerLiaison
Carole Shelton Staff Liaison
Debbie McRae Advertising Coordinator
Amy Weimer Contributor
Archie McDougald Contributor
Daphne B. Clark Contributor
Penny Smith Contributor
Walter Tomlinson Contributor
Contributing Writers
Tom Braniff Legislative Amy Weimer Have You Heard Mary LaPorte E&O Kyle Dean President’s Message Stephen Johnston TechByte Maryana Zhuk CSI: Houston GrahamMcIntosh BenefitsView Deb Currie Insurance Associations
Advertising
Debbie McRae 713-975-0141 [email protected]
Membership Renee Stager [email protected]
Comments Editorial
Scott Mackey [email protected]
The Magazine Committee, Officers,Directors,Executive Director and the staff of IIAH reserve the right to review all information submitted for publication and to refuse such publication at their sole discretion.
Benefits ViewEPO Networks……A Misunderstood Tool!
By Grahm McIntosh - Hotchkiss Insurance
As employee benefits agents it is our job to make sure we provide our clients with up to date information on changes to the benefit market. Guiding individuals and companies to plans that will supply the best possible coverage to fit their budgets.
In recent years there have been a variety of factors that made this task a little complicated, the number one culprit being every insurance agent’s villain of choice, the Affordable Care Act (AKA Obamacare). A less obvious complication is the public’s perception in regards to network choices. Namely, PPO/POS, EPO and HMO.
Firstly, a quick definition of the primary choices:
PPO/POS – Preferred Provider Network/Point of Service. Traditionally offering the largest range of providers with in and out of network coverage.
HMO – Health Maintenance Organization – No out of network coverage, requires a primary care physician who acts as a gatekeeper to access other services and requires referrals to see a specialist.
EPO – Exclusive Provider Organization – No out of network coverage, no gatekeeper referrals required to see specialists. Tends to mirror many carrier’s in-network PPO networks.
Amongst the recent raft of carrier changes one of the most notable has been the decline of PPO options in favor of the EPO network plans. Certainly, in the Houston individual market, this replacement has almost been complete. However, now as we are firmly in the third quarter, small group products are showing signs of potentially following suit.
Many carriers have been offering EPO plans to the small group market as a potential cost saving option for some time and the majority would agree they have largely been successful. But, as premiums continue to rise a frequent stumbling block in selling these plans is the perceived similarity between EPO and the HMO networks. A comparison that is ultimately unjust.
HMO plans certainly have their place. For companies providing benefits for the first time they offer a solid base level option, which meet ACA requirements and extends valuable health protection to employees that may have previously relied on ER rooms. The bad press arises when companies that previously enjoyed access to PPO or POS network plans move to a HMO for the cost savings. The new restrictions are understandably unpopular with employees, many of whom are forced to leave physicians they had been seeing for years. This in turn creates negative feedback, primarily fueled by the limitations in the provider network.
It is this perception that can prevent companies from considering an EPO option when it comes to discussing their renewal with their agent. But, it really shouldn’t. Arguably, an EPO is just the next step for what all carriers try to make their insured do already, stay in network. Furthermore, as there is talk of at least one large carrier withdrawing their PPO/POS plans from their small group fully insured offering effective 8/1, now could be the time to speak to our clients about EPO as a cost saving option.
As medical, pharmacy and claims cost continue to grow carriers are increasingly looking for ways to manage these expenses. As the individual market has shown us, restricting network access has been a “popular” means of doing this. So it is not inconceivable that other carriers could follow this example in the small group arena. Especially as the ability to underwrite in the small group fully insured market is unavailable.
Yes, level funded offers a route back to PPO/POS network coverage. But, for those groups with poor claims this isn’t necessarily a viable option. So it falls upon us, as agents, to re-educate and re-iterate that small group EPO is not the network demon it is perceived to be. In an uncertain market it still offers a significant amount of freedom and the sooner we get our clients comfortable with that concept the better…. because who can say what next year will bring.
52015-16 4th Edition houston insurance news
Charitable Special Projects/Fire Prevention
Chairman: Sarah Beck
Vice Chair: Merry Jane Eversole
Education, I.T., CE &
Member Luncheon
Chairman: Katrina Masek
Vice Chair: Michelle Dennis
Houston Insurance Day
Chairman: Amy Leicht
Vice Chair: Wes Crawford
Legislative
Chairman: Mark Thurmond
Vice Chair: Kyle Dean
IMPACT
Chairman: Scott Margraves
Membership
Chairman: Mike Stroman
Vice Chair: Allison Bond
Recreation
Chairman: Robbie Darnell
Vice Chair: Stuart Ray
Young Insurance Professionals
Chairman: A.J. Perez
Vice Chair: Gwen Singleton
PR/Media Matters
Chairman: Scott West
2015-2016COMMITTEES
HIN (Houston Insurance News) The HIN Committee is made up of a small groupof people who love giving back to the association!
We aim to publish the best Houston Insurance News there is with fun and informative content! Through the online magazine and now through multiple social media outlets IIAH members can see pictures, learn of upcoming & past events, find educational & legislative information and achievements of the people in our industry along with articles relevant to current topics.
We meet once a month (3rd Tuesday of every month) and would love to have you join us. If you like to have fun, laugh and enjoy meeting people, then we want you on our committee!
If you would like more information on this committee please feel free to contact us at [email protected] or [email protected]
@IIAHNews IIAHNEWS [email protected] IIAH twitter, Instagram, Email, Facebook
Committee Spotlight
62015-16 4th Edition houston insurance news
Agency Members
New Affiliates
NEW MEMBERS
Platinum Partners For Excellence 2015-2016
AmWins Brokerage of TexasBurns & Wilcox, Ltd.
ChubbCRC|SCU
Delta General Agency
AFS/IBEX A division of MetaBankBlackmon Mooring of Houston
CNA Insurance Companies
Gold Patron Sponsors 2015-2016
Kyle Dean, CLCS, MBA President
Daphne B. Clark, CIC, ACSR President-Elect
Scott Margraves, CIC Vice President
Paul Cerone, CRIS, CRM Treasurer
Carole Shelton Secretary
Bill Baycroft, CIC Immediate Past President
BOARD OF DIRECTORS Jason Billingslea
Allison Bond
Fred Barrera, JD, ARM, AIC
Dean Christoffels, CIC
Wesley Kurtz, CIC
Allana Frischenmeyer
Chris Goff, LUTCF
Brian Schmulen, ACSR
Walter Tomlinson
IIAT EX-OFFICIO MEMBER OF THE IIAH BOARD OF DIRECTORS Jeff Brady, CIC, CRM
Ed Schreiber, CIC
IIAH STAFF Carole Shelton Executive Director
Renee Stager Director of Education/ Membership
Sandra Greer Events and Accounting Associate
7700 San Felipe
Suite 310
Houston, Texas
77063
832-769-4666
Fax: 832-324-3503
www.iiah.org
Bayou City Risk & Insurance Services
Carol Nguyen5444 Westheimer, Suite 1080
Houston, TX 77056346-800-1099
Creekside Risk Solutions (DBA Cart Insurance)
Jason Cart14027 Memorial Dr., Suite 186
Houston, TX 77079713-984-2410
Greenway InsuranceRobert Lopez
11950 Spring Cypress,Suite 102
Tomball, TX 77377713-429-0202
The May GroupTony May
730 N. Post Oak Blvd.,Suite 120
Houston, TX 77024713-807-8264
FIRST Insurance Funding Corp.The Hanover Insurance Group
WRIGHT Flood
Imperial PFSMyron StevesRPS Houston
Texas Mutual Insurance Company
Care Providers Insurance ServicesNatalie Miele
16301 Quorum Dr., Suite 100AAddison, TX 75001
800-761-7072
SERVPRO of the Woodlands/ConroeEd Carpenter
2700 Greens Road, Suite F300Houston, TX 77032
281-219-8180
Risk Transfer PartnersChris Scott
13455 Noel Road, Suite 2100Dallas, TX 75240469-310-9159
72015-16 4th Edition houston insurance news
DISCOVER HULL & CO.
GIVE US THE OPPORTUNITY TO WORK WITH YOU AND SHOW YOU HOW HULL DOES IT BETTER!
Proud members of IIA, PIA, AAMGA, NAPSLO, TSLA & IIAD.
For more information, please call your Hull Representative
or email [email protected].
DallasToll Free: 800-765-HULL
Phone: 972-789-1962Fax: 866-513-9053
HoustonToll Free: 877-256-HULL
Phone: 281-759-4855Fax: 866-513-8219
We’ve got the markets• In-house facilities• Admitted• Non-Admitted
We’ve got the coverage• Transportation• Casualty• Commercial Property• Commercial Marine• Inland Marine
We’ve got more…• Service• Professionals• Experience
CASUALTYAllied HealthcareArtisan ContractorsCommercial Umbrella & Excess LiabilityContractors – GeneralContractors - ResidentialEarthquakeEntertainment, Sports & LeisureLiquor LiabilityMercantilePremises LiabilityProduct LiabilitySpecial Events/Spectator Liability
COMMERCIAL PROPERTYApartments, HabitationalConvenience StoresGas StationsLessor’s RiskMixed MercantileMunicipalitiesVacantsWind Deductible Buybacks
TRANSPORTATIONEnvironmentalMotor Truck CargoPollution Legal LiabilityPrimary & ExcessWorkers’ Comp
INLAND MARINEBaileesContractors EquipmentEDOInstallation FloatersTrip Transit
PROFESSIONAL LIABILITYCyber LiabilityD&OEPLIMedia/Internet LiabilityMisc. Professional E&OProducts Liability
ASK ABOUT:Excess Liability & UmbrellaCommercial MarineWatercraft
WWW.HULLANDCO-TEXAS.COM
HullTX_HOUSTON_Texas_WLOGO_Ad.indd 1 11/4/15 3:08 PM
82015-16 4th Edition houston insurance news
Kyle Dean, President
PRESIDENT’S MESSAGE
It’s hard to believe that my year as President of IIAH is almost over. Working with the professionals we have in the IIAH staff, the Board of Directors, the Executive Committee, along with the chairs and co-chairs of the association committees, has been a great pleasure and humbling experience. As I look over the past year, the IIAH has had some stellar events including the CSR Appreciation Luncheon with “Miss Sue” Mitchell, Michael Oher’s tutor, as the speaker. I’m sorry I missed that event and grateful that Daphne Clark graciously filled in as our host.
While you were enjoying “Miss Sue,” I attended the IIABA Big I Legislative Conference in Washington, D.C. While we were there we visited representatives whose districts are in or touching the greater Houston area. We were well received plus I felt the legislators and their staff heard our concerns.
The IIAT Convention in San Antonio was informative, impressive, and great fun since I was there as your president. The convention featured the largest state insurance trade show in the southwest, along with Governor Greg Abbott as the luncheon keynote.
What I’m really thinking about as we wrap up this year, focuses on my Dad. Throughout this year, his wisdom has continually surfaced. I grew up in the insurance industry and from the beginning, Dad always talked about becoming involved with IIAH. In his opinion, contributing time and energy to this organization was very important and rewarding. I have to agree. I will always be involved in this association.
I would like to thank the great people who worked so hard this year to make the IIAH so successful.
Servicing All Agents With No Minimum Production Requirements
92015-16 4th Edition houston insurance news
Since 1999, Texas Mutual has sent more than $2 billion in dividends to our policyholder
owners. We’ve sent more than $1 billion since 2012, with a record $240 million
distributed in 2016 alone. And they’ve earned every penny. By promoting safety in
the workplace, your clients have lowered costs, and helped a lot of great Texans
make it home to their families. And while we strongly believe safety is its own
reward—that doesn’t mean it’s the only reward. Our policyholder owners have done
a great job, and 18 consecutive years of dividends are our way of saying “thanks a
billion.” And with your help, we’re looking forward to saying it again and again.
For more information about the rewards of working safe, call (800) 859-5995
or go to worksafetexas.com/2billion.
While dividends can’t be guaranteed, Texas Mutual Insurance Company has returned more than $2 billion to safety-
conscious policyholder owners since 1999. Texas Mutual Insurance Company is rated ‘A’ by A.M. Best Company.
©2016 Texas Mutual Insurance Company
Thanks a Billion…
Make That $2 Billion.
TXM_Houston Ins News_2BillionDividend_June2016_FNL.indd 1 7/6/16 1:30 PM
102015-16 4th Edition houston insurance news
Frances Runk turned 90 on August 8th. Her birthday party was filled with family, insurance men and women and friends from Clarewood House where she lives. Wayne sang her a special birthday song and then we all sang the traditional one. Frances served in all capacities of the National Association of Insurance Women both locally and regionally throughout her career in insurance.
I asked her who her first job was with and what year? “Cravens Dargan Insurance Group in 1944”. Any advice for the rest of us who hope to someday be celebrating 90? “Keep on keeping on”.
FACTS ABOUT 1926
President of the United States – Calvin Coolidge
New House - $7,748.00
Average Income - $2,310 per year
New Car - $360.00
Tuition to Harvard University
- $300.00 per year
Movie Ticket – 20 cents each
Gasoline – 12 cents per gallon
First Class Stamp – 2 cents each
AUSTIN, TEXAS - May 12, 2016 - Jan Kearbey, CIC, CWCP, CISR, VP of Marketing & Sales with Service Lloyds Insurance Company, announced today the addition of Judith “Libbie” Hayes, CIC, as the Business Development Manager in Marketing for the company. In this capacity, she will be responsible for the overall leadership of the field marketing operation, including the development and implementation of agency plant management and marketing procedures designed to enhance company results and relationships with policyholders and agents.
Ms. Hayes brings over 28 years of in-depth insurance experience, including territorial and regional management responsibilities, marketing, and multi-line underwriting. Her expertise has afforded her multiple awards for surpassing profit and production objectives. In addition, she has been consistently acknowledged for her ability to build relationships with agents as well as coworkers. Starting in 1988, the first half of her career was focused on developing multi-line underwriting skills through her employment with Great American, Travelers, Liberty Mutual, and America First. Since 2009, Ms. Hayes has focused her attention on building marketing skills, achieving territorial management positions for America First and most recently Patriot National. Ms. Kearbey, said, “Libbie brings to our organization the combined underwriting and marketing skills that specifically match our company’s focus on bringing added value to our agency plant through field underwriting. Her agency experience in the Texas marketplace and stellar industry reputation will be invaluable in meeting our growth goals while continuing our legacy of delivering unsurpassed customer service to our agents.”
SLIC is ranked as one of the top ten providers of workers compensation in the State of Texas and has been serving the needs of employers since 1982. The company is family-owned and operated, dedicated to the needs of Texas businesses. Service Lloyds has built its reputation on providing a quality product while delivering unmatched support and personal service. Current writings are in excess of $61,000,000 with an A VIII AM. Best Rating. For more information, please visit www.servicelloyds.com.
Service Lloyds Insurance Company Announces Business Development
Manager for Marketing
SOLD
OUT!!
112015-16 4th Edition houston insurance news
Jeff and Laurette Presley welcomed their first grandchild in Austin on July 16, 2016. Daniel Martin Presley weighed in at a healthy 8 lbs, 1 oz and 21 inches. Jeff ’s youngest son, Robert, and his wife, Chelsea, are the proud new parents.
LUBA Workers’ Comp names Tiffany Leffke to Assistant Vice Presidentand Texas Territory Sales Executive
Dallas, Tx. (May 12, 2016) – LUBA Workers’ Comp, a privately held regional casualty insurance company, has named Tiffany Leffke as Assistant Vice President and Sales Executive. With LUBA’s growing presence in the Texas market, she will be based in Dallas to better serve the company’s expanding network of independent agents there.
Leffke has been in the insurance industry since 1997 and has experience on both the independent agency and company sides of the business. Throughout her career, she has worked with Texas United Managing General Agency, Indiana Lumberman’s Mutual Insurance Company, and Texas Political Subdivisions Joint Self Insured Fund. She is also a licensed property and casualty agent. In her new role as LUBA’s Assistant Vice President and Sales Executive, Leffke will continue to build LUBA’s brand and relationships with potential and current independent agents in Texas.
“When we met Tiffany we knew she would be a valuable asset to our company,” said Trent Bondy, Vice President and Sales Manager at LUBA. “Her experience in the Texas insurance market coupled with her enthusiastic personality
gives us confidence she will serve our agents well.”
Tiffany is a member of the Independent Insurance Agents and Brokers of Texas as well as the individual Houston and Dallas chapters. She also volunteers her time at the Union Gospel Mission of Dallas, a faith based non-profit organization which provides food, beds and clothing to the homeless.
SAVE THE DATE…..IIAH “Legislative Day” Industry Luncheon
October 4, 2016Maggiano’s Little Italy
2019 Post Oak Blvd., 2nd Floor Banquet Room11:00am – 12:45pm
You do not want to miss the opportunity to network with our Houston area legislators! Note! Limited Seating with Legislators in
attendance! Register Early!!!
122015-16 4th Edition houston insurance news
Carole Smith joined HARCO after working with Transamerica Insurance Company in their accounting department. As manager of the HARCO Accounting Department, she manages a team of three persons. Carole has achieved her ACSR, CISR and CIC designations during her tenure at HARCO. She is involved with the Houston Insurance Professionals and assists with all the charitable projects that HARCO is involved with.
Kathey Hoffmaster started with HARCO as a VOE (Vocational Office Education) student when she was 16 years old - the summer before her Senior Year at Waltrip High School. Kathey has remained employed with HARCO since then, going through the personal lines ranks to become Personal Lines Manager at HARCO. Kathey has earned the Safeco Award of Excellence underwriting status for 19 years which is quite an accomplishment. Kathey has achieved her ACSR, CISR and CIC designations during her tenure at HARCO. Side note: A year ago, HARCO hired her daughter, Kristen Hoffmaster, for personal lines, as her goal is to follow the career path of her Mom!
HARCO Anniversaries
Carole Smith 31 years 6/3/16 Kathey Hoffmaster 41 years 6/4/16
132015-16 4th Edition houston insurance news
We are Texas No one knows more about Texas workers compensation than Service Lloyds.
Workers Compensation – www.servicelloyds.com
142015-16 4th Edition houston insurance news
Our goal is to help our clients place their surplus lines coverage in the best markets available with the broadest coverages possible. All of our carriers are “A” rated and several have been with us since we first opened our doors. We think of clients and carriers as extensions of our family. And, just like your family, there are occasionally challenges (crazy uncles and rowdy cousins anyone?!?!?) but we do our best to work for solutions that benefit everyone. This includes quick quotes for our agents and profitable accounts for our carriers. Our experienced group of underwriters & brokers consists of Alison Bishop, Zunnie Villegas, Beatrice Moreno, Denise Rodriguez & Mike Gore. Our staff enjoys meeting all of the IIAH agents at the annual Houston Insurance Day. We appreciate everyone stopping by as it is always nice to match a smiling face with a name from an email. When not with the office family, Zunnie can be found on the side of a soccer field somewhere cheering on her son. Denise is either at Cub Scouts, soccer or basketball.
Affiliate Spotlight
Houston Surplus Lines
Family, One of the definitions Webster’s gives us for family is “A group of kindred or closely related individuals” and that’s what we are at Houston Surplus – a family. We are a tightly knit group that pulls together to get the job done for our customers.
Houston Surplus was founded in 1994 by Jack Reed along with his daughter, Carol Gardner, Barbara Partlow and Linda Morgan. To keep the whole family theme going, Barbara’s husband, Don, joined the firm in 2001. Linda and Jack retired and, unfortunately, Jack passed away in 2009.
Mike, Carol & Reed Barbara & Don
When Monday morning rolls around, it’s back to the Houston Surplus family, ready to tackle that next submission. It might be a vacant building, a general contractor, an environmental consultant, a waste hauler, or just about anything. Our book of business ranges from the small and mundane to the large and just plain weird. But they all need coverage and we’re here to help our agents get them quoted and bound.
Zunnie & family
Denise, Caleb & Elijah
Alison is home helping create a Legos masterpiece and Beatrice is quite often on the road to Corpus Christi to visit with family & friends. Mike has 5 kids and 10 grandkids so he’s always going somewhere!
Beatrice & Benny
Allen, Allison & Aaron
Mike & the Multitude
152015-16 4th Edition houston insurance news
When strength and stability matters…We can get you there!
Property | Liability | Contractors | Environmental
Inland Marine | Garage | Professional | Homeowners
RSI International, Inc. | 1250 East Copeland Rd. | Arlington, TX 76011 | 800.275.2084
RSI INTERNATIONAL, INC.Managing General Agency
Arlington • St. Louis Toll Free: 800.275.2084
www.rsimga.com
162015-16 4th Edition houston insurance news
(continued on page 17)
This is my last message as director of the IRM Center at UHD; I am retiring on July 31. Thinking back over the past seven years, I am amused with the memory of how I came into this position and indebted to those who helped along the way. First, and foremost among them is Tom Braniff, my husband, best friend, law partner and mentor.
When Tom first suggested I consider the lead position for the undergraduate program he and his insurance colleagues had created, I was stunned. “Why me?” As a lawyer, my experience with insurance was limited to administrative law. He explained that my professional and personal experience in program management, charitable fundraising, lifelong mentorship, relation-ship building and stewardship were the skills needed to get their program up and running. “But,” I answered, “surely, there are others who would be better teachers than me.” “The industry can provide qualified teachers and we know the curriculum the students need to learn to be hired in the industry. We need someone we can depend upon to communicate with and listen to the industry. We need an individual who will facilitate the interaction of students with industry professionals and provide the industry with access to the new talent as it is being developed by UHD. We need a director who will show up at industry meetings and conferences with students looking for internships and career opportunities.”
As I spoke with some of the other founders, many of whom I had known for many years as Tom’s colleagues and clients, they repeated his sentiments again and again. So, trusting that I would have the knowledge and support of these industry professionals, I applied. Dean Donald Bates, a proven university leader, whom the founders entrusted with their plans and funding and who, with David de Roode, had raised the initial funding for the program, chose me to lead the program.
My first task was to develop a formal Advisory Council to assist with developing curriculum, fundraising, and recruiting qualified faculty. Fortunately, nearly all of the original founders agreed to serve, including Bob Dean, David de Roode, Bob Holloway, Matt Sasso, Fred Steves, Doug Hotchkiss, Wayne Dauterive, Fred de Roode, Tom Fitzpatrick, John Knox, Ginny Penzell, Irving Pozmantier, Vikki Robinson, Scott Kilpatrick, Renee Stager, Marshall Leicht, Cindy Coleman, Mary Jane Fortin, Sharon Blake, and Allen Wilson. Others, including Russ Taylor, Paul Martin, Randy Doss and Susan Howie, were recruited to ensure a balanced representation of industry agencies, carriers, wholesalers, risk managers, consultants and associations among the thirty members.
The fall 2009-10 academic year started weeks after I was hired, and we needed to recruit students to fill the classes and faculty to teach them. With the advice and assistance of these individuals, a fundraising campaign was launched, and students were recruited to enroll in the first two classes, taught by Tom Braniff and Bob Holloway.
The first several years involved a whirlwind of challenging new learning curves. Fund raising was a primary objective – we needed scholarships to entice students into this previously unknown major, and funds to take students to industry meetings and conferences. With a leadership succession of engaged and resourceful Council chairs, including David de Roode, Bob Dean, and Matt Sasso, we faced and overcame many challenges and I came to understand the wisdom of the industry’s curriculum recommendations and focus on continued relationship building.
Our students also learned the value of showing up. We showed up at CPCU, RIMS, IIAH, GHSHRM and NAIFA meetings and conferences. We showed up at IIAT, ICT, Houston Marine Insurance, Texas Captive Insurance Companies, and Gamma Iota Sigma conferences. We showed up at UHD and College of Business resume
UHD - Wendy Braniff Retirementwriting, job interview, and business etiquette training and career fairs. Enrollment and contributions grew, students received scholarships, obtained internships, graduated and were hired in the industry.
I have been fortunate to have had two extremely personable and supportive College of Business deans during my time at UHD. Dean Donald Bates originated the program and supported and guided me for the first four years. His successor, Dean Mike Fields, paid the IRM academic program its greatest compliment by using the program’s industry professional input as a template to craft the faculty/industry developed curriculum of all the other business majors within the College. With the financial support of Fred de Roode, he created the College of Business Career Services Office to facilitate the mutual goal of students and employers to fill business career positions. He is a strong and important advocate and supporter of the program’s career relevant curriculum and placement success.
Over the years, the program has changed and grown as directors retired from the Council and were replaced with new directors including Tim Brady, Pam Humphrey, Amanda Mount, Laura S. Hill, Lorie Cardoni-Haymes, Jared Moore, Mike Geeslin and Gerald Ladner. Kyle Dean, Ken Hotchkiss, and Amy Leicht each filled their father’s positions on the Council. Scott Long, a 2012 graduate of the program, joined the Council in 2013.
Teaching in a bachelor’s program typically requires having earned a master’s degree, and although Houston has an abundance of individuals in the industry who can effectively teach, finding those with the academic and professional credentials to meet the College of Business’s strong AACSB accredited academic standards was a challenge. We were fortunate to have professors committed to teaching UHD’s unusually ethnically, age and experience-diverse student population, including founder Dennis A. Baker, Latrisha Goodwin, Tiffany Barnes, Stephanie Gaffron, Steve Halterman, Steve Shuchart, Erik Konicki, Irwin Hanks, Naomi Hall, Kelly Bluhm, Robert Snyder, Jai Sharma, David Jackson and Jeffry O’Dea. In 2011, Christopher Ketcham, who had earned an MBA in risk management and a PhD in curriculum design and instruction, and a former senior director of knowledge resources for The Institutes for CPCU and the Insurance Institute of American, was hired to teach our first online course, and proved so effective he was subsequently contracted to build out all of the IRM curriculum in an online format. In 2013, Pamela Hurley, another PhD, was added to the faculty, strengthening its academic credentials.
The uniqueness of UHD’s academic program is that it is meticulously coordinated with professional designations from The Institutes for CPCU, The National Alliance for Insurance Education and Research and The American College to provide maximum benefit to students. I can say with confidence, no other program in the world offers a larger or more diverse, relevant and industry vetted curriculum in insurance and risk management than UHD. Our faculty have the requisite knowledge, experience, resources and, most importantly, the will to help students gain the education necessary to succeed in industry careers. UHD’s career placement of its IRM students and graduates in internships and career positions is unsurpassed. This is our legacy.
Stepping aside in my role as director is bittersweet. In my heart, I know it is time for someone else to take the reins. New challenges have arisen; different talents are needed. The critical challenge for the future is growing our enrollment. Valuable resources are in place to support my successor in this initiative: a committed and tenured Advisory Council with proven leadership, counsel and resources; the Myron Steves Directorship Endowment which will generate funds in perpetuity for scholarships and student participation in industry events; sustaining donors, a strong academic curriculum that has
172015-16 4th Edition houston insurance news
By Mary LaPorte,CPCU, CIC, LIC, CPIA
Agent’s questions about Errors and Omissions, and how E&O losses can be prevented.
We have been discussing documentation in our agency and have a bit of disagreement. We know it is important to document critical communication with our customers, so that we can later demonstrate what was said in the conversation. Some of our CSRs recently attended a CE class, and as a result of what they were told, they now want everyone to document every single contact with the customer, even if it was only a routine service issue or question. I could see where this might be a good idea for a new CSR, but most of us have a great deal of experience in providing service to our customers. Because of my experience, I recognize which conversations should be documented, and which are simply routine. Any time I have a conversation with a customer about coverage related issues, I always document that conversation in an activity in our system. I fail to see the benefit of documenting each time we talk, since the majority of conversations are routine servicing calls, such as billing questions, and not related to coverage. Honestly, I don’t know how I would find time to document every single contact, and it seems like a waste of time if there is no real benefit. Could you please address this from an E&O perspective and help us decide how to resolve this? Diane, Illinois
Diane, it is becoming the accepted standard in agencies to document every contact made with or regarding the customer. This not only includes phone conversations, but e-mail, faxes, letters, office visits and all types of contact. In addition to customer contacts, you should
Mary LaPorte is a consultant and educator with a strong background in Errors & Omissions loss prevention. Forward your E&O questions to [email protected].
©2015 LaPorte Consulting, LLC. All Rights Reserved
also document conversations and correspondence with others, such as underwriters, adjusters, finance companies, body shops, auto dealers, jewelry stores, etc.….. as long as the conversation or correspondence relates to a specific insured.
There are a few reasons that this has become the standard. First of all, we do not always know at the time a conversation takes place how important it may be in the future. Second, by documenting every contact with the customer, you create a good chronological record of how frequently the customer is contacted (or contacts you) and the nature of information that was exchanged during any converstaions. In the event of an E&O claim against the agency, the documentation record would help demonstrate the care the agent has given the customer, and provide a better defense against any “alleged” conversation that may have never taken place.
Even though this may seeem like an additional burdon of work, it can become very routine with time. Discuss this with others in your office to determine how they accomplish this with the least effort and keystrokes. Establish clear guidelines in your agency so that all employees understand the need for good, complete documentation.
resulted in a successful career placement record; and a network of relationships with industry to ensure continued career opportunities for students and graduates.
I had no premonition of the passion that would develop in my heart for providing ways for students to gain the knowledge, skills and abilities necessary to secure life changing footholds in a dynamic industry with an abundance of opportunities for growth and career success. Fueled by the overwhelming academic and career success of our students and graduates, my passion has grown and grown. The experiences and relationships that Tom and I have developed along the way have filled our lives with joy and happiness.
Although I am retiring from my role as director of the IRM undergraduate program, I continue to be interested and committed to the success of its students, and the important role it plays as a developer of new talent for the industry, and will be looking for ways to continue to contribute to that success and to support my successor. Tom and I will continue our role in fundraising to support insurance and risk management education, our work in insurance and other legal and political issues, and our valued friendships within the insurance industry and the UHD and academic community.
Thank you all for your support and friendship throughout this unusual and interesting journey!
(continued from page16)
182015-16 4th Edition houston insurance news
(continued on page 19)
A NAME THAT BUILDS RELATIONSHIPS
At Risk Placement Services (RPS), we value the relationships we have fostered with Inde-
pendent Agents in the Lone Star State. Understanding the intimate needs of your company
and your customers are our priority. In addition, we are committed to provide you access
to the top markets and producers in the industry while offering customized solutions
designed, negotiated, and tailored to each unique risk.
To learn more, contact Tim Padilla, Regional Client Relations Manager at 214.414.3848 or email [email protected].
RPSins.com
192015-16 4th Edition houston insurance news
LEGISLATIVE UPDATEby Thomas M. Braniff, JD, CPCU
IIAH Legislative Committee
IIAT’s 119th Annual Conference & Trade ShowExplores the Future of the Insurance Industry
Everyone explored the future of the insurance industry at IIAT’s 119th Annual Conference & Trade Show in San Antonio held June 15-17. Agents received answers to questions like, “What is the insurance industry going to be like in 5, 10 or 20 year?”. How will self driving cars impact insurance?
The main attraction was very entertaining, “Why We Love the Movies”. It was educational and it took you back to places in your life that you remembered by a simple score of a movie, or a line from a movie or maybe it was just 2 simple notes….da…da……da…..da (Jaws!)
IIAT also named the CSR of the Year award and it went to Ann Ratcliff who is a customer service representative at Bryan
Insurance Agency in Graham, Texas. She has been in the industry for 30 years and is highly dedicated to the customers that she serves.
IIAT also announced that Ross Ormond of San Antonio received the Young Professional of the Year award! He is the current chair of IIAT Young Professionals Advisory Council and serves as an officer on the board of the Independent Insurance Agents of San Antonio.
If you weren’t able to go this this year’s trade show, be sure to mark your calendars for the next one. IIAT’s 120th Annual Conference & Trade Show will be held in Fort Worth, Texas!
WE MAKE INSURANCE EASY SO YOU CAN FOCUS ON WHAT MATTERS
Got a risk? Find out how easy it can be:Write now: midlandsmgt.com/products
AUTO | PROPERTY | PROFESSIONAL LIABILITY | GENERAL LIABILITY | CONTRACTORS HOSPITALITY | ANIMAL MORTALITY | KIDNAP & RANSOM | GARAGE | NONSUBSCRIBER | COMP
Fred Steves, Myron Steves and IIAH Past President Scott West, Pathfinder LL & D Insurance Group
Meeting Gov. Abbott during IMPACT reception at IIAT Convention
202015-16 4th Edition houston insurance news
On April 21, 2016 IIAH hosted its annual CSR Appreciation Luncheon at The Westin Houston-Memorial City to a sold out audience. CSR Insurance Professionals are the back bone of our industry and this luncheon affords the industry an opportunity to say thanks for a “job well done”. CSR’s were captivated by keynote speaker “Miss Sue” Mitchell, educator and learning specialist. Miss Sue is most well-known for her impact on Super Bowl champion offensive lineman, Michael Oher, as depicted in the film ‘The Blind Side’. Her message was heartwarming and inspirational and she drove home the importance of building character in all aspects of our lives. Mitchell has transformed the lives of not only Oher, but countless other young men and women around the country. Her most famous work with Oher was in helping to raise his high school GPA from 0.6 to a 2.05, and later to a 3.75 scholastic average and a spot on the Dean’s List at the University of Mississippi. Mitchell was portrayed by actor Kathy Bates in the 2009 Academy Award nominated film. Mark your calendars for the 2017 CSR Luncheon on April 13, 2017.
This event was supported by:
Platinum Partners for ExcellenceAmWINS Brokerage of TexasBurns & WilcoxChubbCRC | SCUDelta General AgencyImperial PFSMyron StevesRPS HoustonTexas Mutual Insurance Company
Gold PatronsAFS/IBEX A division of MetaBankBlackmon Mooring of HoustonCNA Insurance CompanyFIRST Insurance Funding CorpThe Hanover Insurance GroupWRIGHT Flood
Gold, Silver & Bronze SponsorsMcClelland & Hine, Inc. - HoustonSureTec Insurance CompanyRepublic GroupTravelersUPC Insurance
“The Blind Side” Educator Introduced atCSR Appreciation Luncheon
(continued on page 21)
212015-16 4th Edition houston insurance news
(continued from page 20)
222015-16 4th Edition houston insurance news
Martin, Disiere, Jefferson & Wisdom
INSURER FAILED TO NOTIFY OF INTENT TO
RESCIND POLICY IN 90 DAYS AS REQUIRED
UNDER INSURANCE CODE §705.005 -
SUMMARY JUDGMENT REVERSED
June 13, 2016
Last Thursday, the Waco Court of Appeals overturned an insurer’s summary judgment on its policy rescission claim on the ground that the insurer failed to notify the insured of its intention to rely on material misrepresentations in the policy application within 90 days of discovering their falsity, under Tex. Ins. Code §705.005. In Wallace v. AmTrust Ins. Co. of Kansas, Inc., 10-14-00209-CV, 2016 WL 3136875 (Tex. App.—Waco June 2, 2016, no. pet. h.), Wallace purchased a farm and ranch insurance policy for a piece of rural property in Wallace County. In the application, he represented the property was 100% occupied, when in fact it was vacant and had been vacant since he took possession of it. When a mobile home on the property was destroyed by a grass fire, Wallace made a claim.
When AmTrust learned the property was vacant and had been vacant when Wallace acquired the property and applied for the insurance, it sought to rescind the policy and refund his premiums because its business practice did not include insuring vacant properties due to the high risk. In the resulting lawsuit, AmTrust moved for summary judgment on this issue on the ground that Wallace had made a material misrepresentation in the application.
Texas Insurance Code Section 705.005 provides:(b) A defendant may use as a defense a misrepresentation made in the application for or in obtaining an insurance policy only if the defendant shows at trial that before the 91st day after the date the defendant discovered the falsity of the representation, the defendant gave notice that the defendant refused to be bound by the policy [to the insured].
AmTrust contended it discovered the misrepresentation during Wallace’s examination under oath on July 26, 2011, and sent him the required notice on August 18, 2011, which complied with the statutory notice requirement. However, Wallace later swore in an affidavit that he had told the adjuster the property was vacant at the time he made the claim, which was more than 90 days before AmTrust’s notice letter. Under the summary judgment standard of review, the court accepted Wallace’s affidavit as true even though it contradicted Wallace’s previous deposition testimony. (The court noted that AmTrust objected to the affidavit in the trial court on this ground but failed to obtain a ruling.) Thus, the court found a fact issue and reversed the summary judgment that had previously been granted to AmTrust in the trial court.
Editor’s Note: While this reversal does not necessarily mean AmTrust loses, it means there will be no easy exit from this litigation. The Wallace case thus provides a cautionary tale that strict compliance with §705.005 is an essential element of any coverage defense that depends on a misrepresentation in the policy application. The 90-day deadline requires quick and decisive action by adjusters and claim management whenever they learn or think they may have learned of a misrepresentation in the policy application. It is better to notify early and reserve the right to deny coverage or rescind the policy than to notify too late. And… always obtain a clear ruling on your evidentiary objections.
http://www2.jmbp.com/IIAH
232015-16 4th Edition houston insurance news
Hacking a Car with an Ex-NSA HackerBy Maryana Zhuk – Hotchkiss Insurance
Recently I watched a show called CyberWar where an ex-NSA hacker demonstrates the dangers of hacking a car, and explains the cyber exposures of machines we use in our everyday lives. The SUV used is a popular model by Chrysler.
Host: what part of this car exactly did you target that was hackable?
Hacker: …It’s called the head unit and it looks like a computer. It does the radio, navigation, your climate controls, stuff like that. It’s also connected to the internet. The fact that it’s on the internet and that we could talk to it, there was a vulnerability that actually allowed us to get in. We were able to send commands to control the brakes, steering, and make it do physical things.
Host: what was the most dangerous thing you could do to the car with this particular hack?
Hacker: probably the scariest thing you can do is kill the engine or really kill the transmission while you’re driving.
As the host was rolling to a stop the hacker remarked “I can make you go out into the intersection right now, but that would be dangerous”.
The ex-NSA hacker was able to electronically control vital functions remotely until they advised Chrysler of this who rapidly fixed the hole. With a cell phone he was able to turn on the same radio station at once on multiple vehicles where
the head unit was installed. Anything you control with nobs the hacker can control with his laptop. Including windshield wipers with or without spray.
The hacker ‘told’ the car there was an object behind it which caused the host to stop even though the camera showed a clear view.
Host: is there ever a scenario where you think a hacker can have access to a vulnerability in a car just like this where a million cars just turn off?
Hacker: I could’ve done that. I could’ve made all the transmissions go into neutral for a million cars. Modern cars have vulnerabilities and we need to make an effort in fixing them.
Host: are most cars hackable, that are new using lots of computer technology and internet access?
Hacker: basically the more technology in the car the more hackable it is. That’s why we chose this model which has connectivity features, Wi-Fi, bluetooth and all that. And it also has a lot of safety features like collision detection which means the computers are in charge of the physical aspects of the car.Chrysler recalled 1.4 million models and may have fixed this security flaw. But is that the only one or is it one of a thousand? There are no assurances that these vehicles are the only ones that are this unprotected from cyberattacks. Our modern day cars are smartphones on wheels, but the computers inside still seem to be pretty “dumb”.
Is your wholesale broker the weak link?Get more markets and professional services from NeitClem.
www.NeitClem.com
P: 323.258.2600F: 323.258.2676
CA Lic. #0E24609
242015-16 4th Edition houston insurance news
Here are the questions:
Q:
A:
Allison Bond
If you could paint a picture of any scenery you’ve seen before, what would you paint?
Scenes from any family occasion. I’ll need a lot of paint! I belong to a large family; we enjoy each other’s company and get together as often as we can.
What was the first thing you bought with your own money?
A 45 --- “Never Can Say Goodbye” by the Jackson 5. (You have to be over 50 to understand any of that.)
If you could choose to stay a certain age forever, what age would it be?
Right now. I’m having the time of my life.
What did you do growing up that got you into trouble?
I didn’t listen.
What is something you learned in the last week?
Learned a lot just last night, reviewing the portfolios of graphic design students from Houston Community College. There is so much that the digital sphere offers business, and technology is continually expanding the scope of possibilities.
What is your pet peeve in traffic?
Someone riding a bike down a major street during rush hour.
Q:
A:
Do you have any hidden talents?
I’ve done voice overs for decades. If you’ve ridden Houston’s METRORail, it’s my voice telling you where to get off!
What is your favorite electronic device?
My Mac, loaded with design, audio and video applications.
What were your favorite childhood television programs?
Mary Tyler Moore, Bob Newhart and The Carol Burnett Show
Are you a collector of anything?
Family photos.
At a movie theater which arm rest is yours?
Both!
A:
Q:
A: Q:
A:Q:
A:Q:
A:
Q:Q:A:
Q:
A:Q:A:Q:
A:
252015-16 4th Edition houston insurance news
In Memorium
Robbie Manning CranfordSeptember 29, 1947 – July 24, 2016Robbie Manning Cranford of Conroe passed away July 24th, 2016 following a courageous, ten year battle with cancer. She was a 1965 graduate of Buffalo High School and attended Sam Houston State University in Huntsville. She began her career in insurance in the 70’s and was still in insurance at the time of her passing. She had spent the last four years working for Ashley General Agency in Conroe. She was a member of the Federation of Insurance Women of Texas and she served both as President 1996 – 1997 and Executive Director. She will truly be missed by her “FIWT” family.
Edward C. Adams, Jr., of Houston, TX, passed away on June 08, 2016 surrounded by loved ones. He grew up in Kentucky, traveled the U.S. and Europe before settling in Houston. Edward worked as Vice President/Senior Broker and Underwriter for an insurance company for most of his professional career. You may remember him as an underwriter for US Risk. He was an accomplished musician, business man, family man and friend. Edward loved the arts, movies, his career, family, friends and dog, Buster. Edward is survived by his mother, Lois Adams, his sister, Katherine Adams, his dog, Buster Adams and the rest of his family and friends. Rest in peace Edward.
Albert Michael “Mike” Tomforde, Jr.1925-2016Albert Michael “Mike” Tomforde, Jr., 91, went to be with his Lord peacefully in his sleep on Thursday, the 2nd of June 2016. He is survived by his loving and faithful wife of 68 years, Jo Alice “Jody” Wynne Tomforde; his daughters, Susan Thomas of Austin, and Julia “Jan”
Tomforde McNabb of Fredericksburg; son, Jim Tomforde and his wife Leigh of Houston; granddaughters, Wynne Cunningham and her husband Chris, Allison McNabb, all of Dallas, Staley Tomforde and Lucy Tomforde of Houston; and great-grandson, Staiger Cunningham. Also, he is survived by his sister-in-law, Marietta “Bitsy” Wynne, of Tyler; and his nieces and nephews, great nieces and nephews. He was preceded in death by his parents, Mr. and Mrs. A.M. Tomforde, Sr.; his sister, Betty Jo Tomforde Duson; brother-in-law, Pharr Duson; mother and father-in-law, Fleet and Chester Wynne; brother-in-law, James Chester Wynne, Jr.; son-in-law, John Scott McNabb; and grandson, Brock Tomforde.
Mike was born of parents Josie Williams Tomforde and A. M. Tomforde, Sr. on January 21st, 1925. A life-long Houstonian, he attended Lanier Junior High, Lamar High, Rice University and graduated with a dual business/engineering degree from The University of Texas at Austin where he was a member of Kappa Sigma Fraternity. He had a rich and blessed life. Whether racing cars down Main Street on Saturday night, leading cheers for the Rice Owls, fiercely competing at golf or tennis, livening up classes at Sunday school or assisting his insurance clients through a storm, Mike always made friends and helped others. Later in life he and Jody enjoyed taking their granddaughters on antique car tours with the VMCCA each summer, sitting on the front porch of his ranch house watching cars drive by, and traveling the world to see marvelous natural creations and exotic car factories.
When Mike was a pledge at the Kappa Sigma fraternity in 1945 he had a blind date with a certain Cherry Ann Moore of Tyler. Cherry got cold feet and didn’t want to go on the date and asked her roommate Jo Alice to go give Mike the bad news. When Jo Alice told him he shrugged and said “How about you?” So she got in his Ford Model A and off they went. The highlight of Mike’s life was knowing and loving Jo Alice (Jody) Wynne. After they met at the University
of Texas and were married in Jody’s hometown of Tyler on the 20th of September 1947, they moved to Houston and embarked upon a life filled with adventure and service.
Mike went to work for his father in 1947 at A. M. Tomforde and Co. insurance agency. When his father passed away suddenly in 1956, Mike took over the business and spearheaded its growing success. His son Jim joined him in 1986 and they worked together serving Houstonians until Mike retired in 1995.
Once Mike was meeting with a prospective client, told the prospect his phone number and asked him to call him if he needed some help. Then he ate lunch and decided to drop in and see one of his friends downtown. While at his friend’s office the phone rang, the friend answered it and then with a quizzical look handed the phone to Mike and said “it’s for you.” Turns out that the other guy had decided to call Mike at just that time and had accidentally written down the friend’s number. Mike really liked telling the story and messing with our heads.
Mike and Jody purchased their first ranch outside Corsicana in 1962 and at one time had over 300 head of cattle. But they always wanted to live in the Texas Hill Country, so in 1976 they bought a beautiful ranch outside Fredericksburg near Enchanted Rock. It was there that Mike was truly able to grow his collection of classic cars and could always be found tinkering around in the garage. They carefully restored all of the 150-year-old buildings and garnered a coveted Texas Historical Marker. They generously shared the ranch with family, friends and visitors for over 35 years.
Mike served as President of the Executives Association of Houston, the Independent Insurance Agents of Houston, the Kiwanis Club and the Veteran Motor Car Club of America. He was a founding member and Elder of St. Philip Presbyterian Church and a member of The Houston Country Club. He was a board member of the Family Service Center of Houston and while in Fredericksburg served as the Chairman of the Hill Country Memorial Hospital Foundation.
Memorial contributions may be directed to St. Philip Presbyterian Church, 4807 San Felipe St., Houston, Texas 77056, or to Hill Country Memorial Hospital Foundation, PO Box 1339, Fredericksburg, Texas 78624, www.hillcountrymemorial.org.
262015-16 4th Edition houston insurance news
In MemoriumLarry J. StromanLarry J. Stroman was born at home on July 8, 1932 in Mt. Pleasant, Texas and entered eternal life on June 13, 2016. Larry Joe was the youngest of three children born to Joseph Benjamin Stroman and Josephine Cook Stroman. His parents were older when he was born and they spoiled their only son, but his sisters Helen and Judy did their best to set him
straight when out of sight of their mother and father with a stern warning that if he told on them he would get a double spanking the next chance they had.
After graduating from Mt. Pleasant High School, he joined the Air Force and was stationed at Keesler AFB in Biloxi, Mississippi where he was introduced to his wife Dorothy. They married at Keesler, lived in Biloxi for a year and a half until their daughter was born, and once he was discharged from the service they moved to Texas. He decided early on that a career in the military was not for him and earned a bachelor of Electrical Engineering degree at the University of Houston while working and supporting his family, named outstanding engineering student and graduating magna cum laude. He earned his Master of Electrical Engineering from U of H while working as an engineer, and added three sons along the way. Dad worked very hard to create a good life for his family, working at oil related engineering firms, designing oil flow computers and starting his own business, Stroman Instrument Company, affectionately referred to as STINCO.
He held numerous patents on his inventions. His career included projects in Venezuela, Ecuador, and England.
Dad was very proud of the house he built on Lake Livingston and was never happier than when his children and their families came to spend the weekend. He enjoyed being on the water in his sailboat, which he turned over every now and then, and the 4th of July boat parade on the lake. Broadway musicals were his favorites and road trips often included singing tunes from the shows. He and Mom enjoyed traveling to Ireland and Europe, and taking Caribbean cruises and river cruises in Europe. He was honored to serve as a grand juror and member of the Harris County Appraisal Review board. He was a member of Lutheran Church of the Good Shepherd.
He loved and was loved by his family. He will be dearly missed by his daughter and son-in-law Beverly and Randy Sones, and sons and daughters-in-law John Stroman, Mike and Bonnie Stroman and Steve and Rachel Stroman. Grandchildren and their spouses include Graham Sones, Chelsea and Matt Ballard, Amber and Michael Lynch, Lauren and Kevin Hirshberg, Ben and Julia Stroman, Rachel Stroman, Shelby Stroman and Joseph Gerth, Sarah Estrada, Allie Stroman, Hannah Norman and Django Stroman. Great-grandchildren are Jayden Bonvillian, Hunter Stroman, Sofia Sones and her mother Jill Sones, Veronica Estrada, Owen Ballard, Landon Gerth, Avery Hirshberg, Ryan Norman and Brynn Ballard. He will be reunited with his wife Dorothy, parents, sisters Helen and Judy, daughter-in-law Vicki Stroman and granddaughter’s husband Evie Estrada.
Memorial contributions may be made to the Alzheimer’s Association.
Another great Christmas in July for the Houston Insurance Professionals (HIP). Gloria Reed and Deborah Currie were Chair and Co-Chair for the event. Merry Jane Eversole was Chairperson for the Silent Auction. This year we had the event at Pappasito’s on Northwest Freeway. They were so easy to work with and very accommodating.
Everyone really enjoys the Right/Left game and this year we added an ugly sweater/t-shirt contest. We had $800 in monetary sponsorships, 15 auction items donated and the Liquor Wagon (an actual wagon) had 21 bottles of wine, liquor and miscellaneous items that were donated by members and future members. Many thanks to all of those that donated. You helped make the event a huge success.
The monies raised go to our Charitable events and causes. Watch for the next HIN addition for monies raised.
Respectfully, Deb Currie
COMMITTEE SPOTLIGHTIIAH Young Insurance Professionals
(YIP’s)
The Young Insurance Professionals is a committee that caters to young professionals in the insurance industry that are under 40, or those who have been in the industry less than 5 years. We focus on networking and host four sponsored socials a year, one a quarter, as well as smaller happy hours around town. Our last social was at Karbach Brewery and we had a great turnout that included agents, producers and carriers.
In addition to networking, we also look for opportunities to give back to the community and volunteer annually at the TH Rodgers Elementary ‘Be An Angel’ Christmas party! This year the YIP committee is raising funds for the Texas Children’s Hospital Christmas Bags.
If you are interested in networking with other young professionals in the insurance industry and getting involved in your community, contact the Young Insurance Professionals Chair - AJ Perez [email protected] or Vice Chair - Gwen Singleton [email protected] for more information on how you can get involved.
Our next sponsored social is set for September 15th, so be on the lookout for emails from IIAH. We hope to see you there!
272015-16 4th Edition houston insurance news
Bretagne…. In Honor of Her Lifetime of
Service to Our Country and Our Local Community
On the afternoon of June 6, 2016, The Cy-Fair Volunteer Fire Department, Texas Task Force 1 and the doting veterinary staff that has cared for her for 16 years, said a painful goodbye to a now renowned search-and-rescue dog whose career began at Ground Zero after the 9/11 attacks in New York City. In all, around 300 dogs took part in those search efforts.
Bretagne, pronounced Brittany, is the Golden Retriever who became the last surviving search-and-rescue dog from 9/11. But two months shy of her 17th birthday, declining health that included kidney failure prompted her handler, Denise Corliss, to make the difficult choice to have her humanely euthanized.
Two dozen co-workers from the Cy-Fair Volunteer Fire Department, Texas Task Force 1 and other law enforcement personnel, formed a traditional wall of honor, saluting the canine as she walked past them and entered Fairfield Animal Hospital in Cypress. They were there to salute her again 30-minutes later as she was carried from the veterinary clinic draped in the Texas flag.
Bretagne joined the Cy-Fair Volunteer Fire Department’s Search and Rescue team in 2000. In addition to being the last surviving search-and-rescue dog from 9/11,
Bretagne had been deployed to search for survivors after Hurricanes Katrina and Rita. In retirement at age 10, she became a Cy-Fair celebrity, a mascot who served as an ambassador for Cy-Fair. And she became a therapy dog of sorts, a friend who first graders could read to at Waller ISD’s Roberts Road Elementary. Bretagne was also one of 8 finalists for the national 2014 American Humane Association Hero Dog Award.
On September 11, 2015, Bretagne, returned to New York City to celebrate her “Sweet 16” birthday. Barkpost.com worked with luxury hotel operator 1 Hotel Central Park to send Bretagne back to New York City for her birthday party. There she enjoyed a tour of the city, presidential accommodations, gourmet meals, free taxi rides, the presentation of a boardwalk plaque at Ground Zero in honor of her service during 9/11 and a birthday party complete with cake. Here is the video commemorating her special day. https://www.youtube.com/watch?v=ezcHy8DkrmE
The hard goodbye to a canine officer comes with one last offer of service. She has been studied her entire life for the impact of 9/11 pollutants. An autopsy at Texas A & M in College Station, one last medical screening, will be her last selfless gift to give.
This was not just a dog. She was a servant to our country, a co-worker, an inspiration to children, a companion and a friend whose 119 human years of service we all won’t soon forget. And so we say goodbye to Bretagne. Well done faithful servant, well done.
Summarized from sources: Houston Chronicle, KPRC and KHOU
by David Surles,Contributing Author
Finding a public parking spot in a congested urban area can be a big problem these days. A company by the name of ParXit has developed a potential solution for the problem.
ParXit provides an online platform that enables a homeowner to rent parking space in the driveway. The website says nothing about potential insurance issues, but in an interview published in the Austin American-Statesman, founder Jonathan Kanarek said, “most homeowners’ policies should cover you if you opt to rent out your driveway.”
Let’s put his statement to the truth test.
In the ISO homeowners policy, any rental activity by the insured is considered a “business.” The definition of “business” includes an exception for activities for which the insured receives $2,000 or less in total compensation for the 12 months before the beginning of the policy period.
If the insured receives more than $2,000 in compensation for renting out the driveway, it is subject to the “business” exclusion. In that case, the insured would not be covered for liability arising out of the rental parking activities on the residence premises.
In the TDI homeowners policy, liability arising out of rental of any part of the premises is excluded with a couple of exceptions not pertinent to renting the driveway. In addition, the business pursuits exclusion probably applies without an exception similar to the ISO policy.
Something New: Renting the Driveway
282015-16 4th Edition houston insurance news
LighthousePropertyIns.com
292015-16 4th Edition houston insurance news
The Young Insurance Professionals held their second social of the year on May 26th at Karbach Brewery. Even though the rain was threatening the area again, a huge turnout of agents, producers and carriers came out to network! We all enjoyed the local craft brews and snacks on Karbach’s spacious back porch.
Something new that the committee tried was promoting the event through the IIAH Facebook page! The first 10 people who liked the post received free drink tokens thanks to our sponsor, FIRST Insurance Funding!
Thank you so much to Sarah Beck, FIRST Insurance Funding – without your generous support, we wouldn’t be able to have these fabulous social networking opportunities!
If you haven’t taken the time to “Like” IIAH’s Facebook page, do it today! Keep an eye out for emails from IIAH for more networking events coming up this fall!
Here are few pictures from the night’s event. Enjoy!
YIP Spring/Summer Social
302015-16 4th Edition houston insurance news
By Stephen Johnston CEO and Owner of Frontline Computer Services
Anatomy of a Phishing Attack
Have you ever received an email that looks like the following?
This, my friend, is a poorly disguised yet surprisingly effective example of a phishing attack that was designed to do one thing, trick the recipient into clicking the provided web link thus opening the door for the attacker’s nefarious actions. In this month’s article, I will explain why it is important to train your staff to recognize a phishing email and then use the above example to point out some of the most common social engineering tactics used by the bad guys to trick their victims into clicking the link or opening an infected email attachment.
So why does this matter? At its core, a phishing attack exploits the one weakness that is found in every organization, human psychology, to skirt our security tools. Phishing attacks can be used to steal personal or organizational information or, increasingly, to deliver malware such as Cryptolocker.
According to a recent Cisco press release citing the Cisco 2016 Midyear Cybersecurity Report ( http://bit.ly/2akB0g3 ) ”So far in 2016, ransomware has become the most profitable malware type in history”. Additionally, according to Symantec in its “Ransomware and Businesses 2016” special report ( http://symc.ly/29UfZKP ), “The perfection of the ransomware business model has created a gold-rush mentality among attackers, as growing numbers seek to cash in…the average ransom demanded by attackers has jumped to $679”.
Although the above example is from one of our clients from back in 2014, the social engineering tactics have not changed. In order to be effective, the message must do two things, elicit enough trust to lower the recipients guard and second, to present some urgent and compelling reason to follow through with the requested action.
Let’s go through the above example and look for the items that are intended to elicit trust in the sender. The email appears to have been sent from “Microsoft Windows”. Obviously, Microsoft is a large, well known
business. The [mailto:[email protected]] sender address reinforces that the email is from Microsoft because the sender’s domain is @microsoft.com. This is the first tactic used, the sender frequently masquerades as a known and trusted source. More recently, attackers have figured out an even more directed and targeted method called CEO Fraud where an email sent to company staff appears to be sent directly from the business owner or decision maker. See article at http://bit.ly/2aCueGS.
To continue, the subject line of “Microsoft Windows Alert” supports the assertion that the message is from and relates to Microsoft and echoes the sender address of “Microsoft Windows” so there is a note of consistency presented. The body of the message refers to a problem with the recipient’s email account which indicates a bit of specific knowledge on the sender’s part as the recipient’s email was actually hosted on Microsoft Office365. This is a second tactic used, the sender often will have some bit of specific information and knowledge related to the recipient that may not be widely known but also may not be hard to find with just a little research. Presenting the recipient with that bit of specific knowledge lends credibility and contributes to the trust level in the sender.
Next, let’s look at the sender’s urgent and compelling message that the sender is imploring the recipient to act on. The premise of the message is straight forward, there is a problem with the user’s email account. First, the recipient’s email account “has exceeded it’s storage limit”. Second, “…incoming messages may be placed on pending…” indicates there may be inbound email messages the recipient is not receiving. Third, the user must “Verify your email account immediately…” to get more storage and fix the problem and finally, the user must complete these actions within 24 hours to avoid their account being de-activated. The “Click here” link is provided to allow the user to resolve the indicated problems. Not much explanation required here, everyone knows how important email is today so it is natural that this type of message will likely elicit a reaction and maybe even a response.
Now, let’s look at the indicators that this is a scam. The first red flag is the grammar and punctuation errors that would not be typical of messaging from a large corporation like Microsoft. The use of “it’s” instead of “its”, the comma after “limit”, the phrase “messages may be placed on pending” is ambiguous and a poor choice of wording to describe an email problem to an end user
and finally, the inclusion of periods after the words “you” and “Security” in the signature is improper punctuation. All of these indicate a lack of mastery of the English language and should immediately raise a concern.
Secondly, the email is from “Microsoft Windows” with a subject of “Microsoft Windows Alert” but the body of the message discusses something different, the recipient’s email account. Why would “Microsoft Windows” which is a computer operating system be sending a message about email?
Finally, and most telling, hovering the mouse cursor over the “Click here” link without clicking brings up a tool tip with the URL of the web page that the link actually points to. In this example, here is the link:
The link actually points to “www.treevalley.org”, not to www.microsoft.com or an Office 365 website. This is the biggest red flag in the message as the link does not point to a website related to the sender or the content of the message.
So, in summary, this example is a pretty blatant example but be assured, it was good enough to fool my client but luckily it was forwarded to me and not acted on. Just know that the bad guys are getting smarter and they are getting better because with today’s ransomware, it’s now all about the money. So, what can you, the business owner or decision maker, do to help protect your business and your staff from the effects of a phishing attack? (List adopted from https://www.fbi.gov/investigate/cyber ) • Educate employees on phishing attacks and the effects of ransomware and their critical role in protecting their personal information and the business.• Implement a comprehensive patch management system to deploy operating system and software updates in a timely manner.• Antivirus and anti-malware are table stakes. Ensure they are working and up to date.• Because malware executes with the same rights as the logged in user, users should not be granted administrative rights and administrator accounts should only be used when performing administrative tasks. • Use the principle of least privilege and need-to-know to protect and secure file access permissions.• Last but not least, develop a robust, secure and automated backup system that will automatically replicate backups to a secondary off-site location then proactively monitor and test those backups regularly.
As a final thought, I’d love to know if you find this information useful. Drop me an email at [email protected] with your feedback and/or suggestions for future articles or let me know if your business has been impacted by a phishing attack or ransomware and how it affected your business.
312015-16 4th Edition houston insurance news
Buying PowerIIAH has partnered with Buying Power to manage our Sprint and Office Depot discount programs.Office Depot Discounts: A global supplier of brand-name office supplies, office furniture, business products and services. IIAH members receive discounts up to 80% on the entire Office Depot catalog of products and services.Sprint Discounts: The nation’s leading provider of fully integrated, all-digital wireless service. IIAH members receive a 17% discount of their Sprint rate plans, best corporate pricing on new phones and upgrades, and a 20% discount on accessories! These incredible discounts apply to existing Sprint units as well as new activations.
EducationIIAH Provides 5 – three hour FREE seminars annually for all member licensed personnel – a total of 15 hours per employee – a value of $360 per employee. Members receive a 50% discount on all education programs (Energy Symposium excluded)
Group PlansKelsey National has provided quality products from highly rated insurance carriers to IIA members since establishing the IIA Group Insurance Trust in 1966 and now offers IIAH members plans at competitive group rates. Kelsey has a superior customer service team ready to offer IIAH members plans for Dental, Dental with Vision, Life/AD&D, Long Term Disability and Short Term Disability. With many plans available to only one enrolling employee, you can begin covering your agency right away. Kelsey has all your employee benefits covered!
Houston Insurance Day (HID)When a member agency purchases 1 full registration inclusive of all seminars, lunch and exhibit hall they may obtain additional full registrations for all agency personnel with no lunch for FREE or pay for additional full registrations with lunch.
Houston Insurance NewsReceive the Houston Insurance News publication four times annually that includes industry events, articles and advertisements
IIAH Website AdvertisingAll IIAH Member Agents and Affiliates are automatically in the Find an Agent/Service search engine on the IIAH website. Members may purchase additional options to include searches by lines of business, direct links to member’s website and logo banner ads. This service is exclusive to IIAH Members only.
Legislative Advocacy & Political ActionPriceless
Merchant AccountsThrough the IIAH Program you can accept every form of payment and provide your clients with the convenience of paying by debit and credit card. Payments can be accepted in person, by mail, over the phone, by fax and even on-line. You will receive discounted enrollment and monthly fees – reduced processing and transaction fees are volume based. Value $100 minimum
Member DiscountsIIAH Members receive a 50% discount on all events and services
As a member of IIAH you will have access tospecialized education programs, advocacy, publications,
networking through meetings and events EVENTS
• Oct. 4, 2016 “Legislative Day” Insurance Industry Luncheon Maggiano’s Little Italy
• Oct. 21, 2016 26th Annual Charity Benefit The Pavillion on Gessner
• Nov. 24-25, 2016 Association Holiday
• Nov. 30, 2016 IIAH Insurance Industry Luncheon Maggiano’s Little Italy
• Dec. 6, 2016 IIAH Christmas Celebration Reception The Pavillion on Gessner
• Dec. 26, 2016 Association Holiday
• January 2, 2017 Association Holiday
• January 17, 2016 IIAH January Industry Luncheon Maggiano’s Little Italy
• February 7, 2017 Houston Insurance Day Westchase Marriott
EDUCATION• Oct. 4, 2016 Free CE Seminar 1:00-4:30pm Maggiano’s Little Italy
• Oct. 18, 2016 Commercial Property/Crime Insurance Seminar Brady Chapman Holland Training Room
• Nov. 16, 2016 Technology Conference Marriott Westchase
• Nov. 30, 2016 Free CE Seminar Maggiano’s Little Italy
• Jan. 17, 2017 Free CE Seminar Maggiano’s Little Italy
Plan & Learn
322015-16 4th Edition houston insurance news
Burns & Wilcox . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Business Card Ads . . . . . . . . . . . . . . . . . . . . . . . . . . 32Hull & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Lighthouse Property Insurance Corp . . . . . . . . . . . 28LUBA Workers’ Comp . . . . . . . . . . . . . . . . . . . . . . . 33McClelland & Hine . . . . . . . . . . . . . . . . . . . . . . . . . . 8Midlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Myron Steves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2NeitClem Wholesale Insurance . . . . . . . . . . . . . . . 23RPS Houston . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18RSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Service Lloyds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Summit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Texas Mutual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Jane E. RohdeAccount ExecutiveUnderwriting Division
Cell [email protected]
2950 N. Loop West, Houston, TX 77092800.859.5995 | www.texasmutual.com
Houston is Work Safe, Texas.
Kerry D. Kee, CPCUAccount ExecutiveUnderwriting Division
Cell [email protected]
2950 N. Loop West, Houston, TX 77092800.859.5995 | www.texasmutual.com
Houston is Work Safe, Texas.
TONICAMPBELL
[email protected] representative
342015-16 4th Edition houston insurance news
CHOOSE ACHAMPION
Brokerage | Binding | Commercial | Professional | Personal | Risk Management Services
Expertise, perseverance and hard work separates the contenders from the pretenders. Access industry experts that have the widest variety of commercial, professional and personal solutions. Whatever the challenge, you can perform like a champion with Burns & Wilcox.
Burns & Wilcox, the leader in specialty insurance. burnsandwilcox.com
Congratulations Jimmy Walker2016 PGA Champion
Burns & Wilcox Brand Ambassador
41560 BURNS Jimmy Win Ad RZ Houston Insurance News.indd 1 8/16/16 3:24 PM