DONOVAN INSURANCE SOLUTIONS

se U n a C u o Y ws e N e c n a r Insu
Volume 3 Issue 11 November 1, 2013

Ribbon Cutting

Inside this issue:

by Paul Donovan

Free to the public, please join Donovan Insurance Solutions on Wednesday, November 20th, from 5:00PM to 7:00PM for our Ribbon Cutting Event. We want to thank our friends and introduce our new location as Tarpon Springs premier full lines independent insurance brokerage. So save the date and come discover our new offices located at 1 East Tarpon Ave Tarpon Springs, FL 34689 (on the corner of Pinellas Ave (Alt.US19) and Tarpon Ave). We look forward to seeing you there. Please RSVP by Friday 11/15 to Donovan.Solutions@gmail.com or call us at 727-935-4858. Naturally, we are excited about this opportunity and we want to thank everyone that helped make our vision a reality.

Ribbon Cutting Top Insurance News Stories Benefits Update Encouragement Chronicles November Trivia The Condo Conundrum FL Denies Work Comp Increases

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INSURANCE NEWS YOU CAN USE

Top Insurance News for October 2013

A survey by The Council of Insurance Agents & Brokers finds commercial P&C pricing is up 4.3 percent during the third quarter. This includes small, medium and large account sizes. Pricing for business interruption, umbrella, commercial property and workers compensation showed signs of flattening in the third quarter. Each declined slightly more than some other lines during the third quarter.

Senate legislation to delay some flood insurance rate increases for four years was unveiled late last week. With the support of 18 senators, the bill looks to stop (except for second homes and businesses) the scheduled National Flood Insurance Program (NFIP) rate hikes effective 10/1/2013. These program rate hikes are mandated by the 2012's Biggerts-Waters Act reauthorizing the program. The purpose of this act was to fix the NFIP by adjusting premium rates to adhere to actuarially sound underwriting practices and to remove the mask of the true burden faced by taxpayers. Most people dont realize that as a result of Sandy and Katrina, the NFIP owes the Treasury about $24 billion. Mississippi has filed a law suit to stop the rate increases and has the support of many other states impacted by the increases. I suppose with the tremendous gridlock in Washington, coupled with our rising national debt (measured in trillions), is why many people dont see the difference over a few more measly billion. Its true, When buying and selling are controlled by legislation, the first things to be bought and sold are legislators.
Homeowners Choice Property & Casualty Insurance Company Inc. will soon offer flood insurance in the state of Florida, having already submitted related forms and rate filings with the Florida Office of Insurance Regulation to jumpstart their efforts. Homeowners Choice (a wholly-owned subsidiary of HCI group Inc., based in Tampa), will provide rate relief to existing customers by applying to regulators to add an endorsement to its policies to include flood coverage. The additional coverage is expected to be priced similarly to what property owners paid before the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012 removed the government subsidies that offset premiums (for many NFIP policyholders that have never submitted a claim).

Extraordinary people survive under the most terrible circumstances and then become more extraordinary because of it. Robertson Davies Benefits Update most Employers Still offering benefits
Recent surveys suggest that more than 80% of small businesses will continue to offer healthcare coverage to their employees, despite the changes of the Affordable Care Act (Obamacare), there are many benefits for employers to keeping them in place. The Affordable Care Act does not change the nature of the benefits equation for employers, whose chief concern is remaining competitive against other companies. Business leaders simply continue to believe that providing group health insurance plans offers a significant advantage in their efforts to recruit and retain talented professionals. Businesses will continue to offer benefits not because any law requires them to but because it serves their interests, they can remain competitive when recruiting employees and keep their workforce healthier and more productive. Many employers agree with the conclusion that cancelling their benefits programs would have a substantial negative impact on their ability to attract and retain top-quality professionals. Companies that are looking to gain a further edge in their efforts to recruit leading talent are recommended to contact an experienced corporate recruiter firm. Working with experts enables a company to conduct a fast, effective executive or financial professional search and come away with its staffing needs fully satisfied. Years ago a business owner was asked, What makes your company that much better than your nearest competitor, its your employees, right? The business owner said, Absolutely not! My competitor can steal my best employees tomorrow but hell never, ever, steal my culture. And, he was right. Part of the most dynamic thriving corporate cultures are those that reward their employees with great benefits. Studies have shown that employee pride, enthusiasm and productivity always increase when the employer is perceived to truly care for their employees. Employers realize that many employees and prospective employees have asked themselves the following questions. Which type of work environment do you think has a better morale, lower turnover, lower mistakes and higher profits? Which type of environment would you rather work in?

Ive learned that pleasing everyone is impossible, but ticking everyone off is a piece of cake.

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By Paul Donovan

En courag em en t Chroni cl es

In the late 17th century, three rural families dominated the musical instrument industry. Working in shops located side by side in the Italian village of Cremona, these families produced violins. The Amatic family hung a sign outside their shop that read, The best violins in all of Italy. Not wanting their creations to go unnoticed, the Guarneri family posted a sign that read, The best violins in all the world. The famous Anton Stradivari, known to produce the finest most expensive stringed instruments, boasted on his door a simple sign that read, The best violins on the block! The greatest enemy of excellence is good. Three Italian families were proud of their product. They also understood the aggressive competition among them would never allow good to be their best. Whether our products or services are the best in the country or the world, remember, there might be someone on the block who surpasses us.

There comes a time in the affairs of man when he must take the bull by the tail and face the situation. W. C. Fields November trivia you may or may not know
by Paul Donovan

Thanksgiving in the USA is easy. However, can you match these other November festivals with the country of origin?
A. B. C. Dia de Muertos - day of the dead remembering departed souls with skeletons, jack-o-lanterns and skulls with candy Fete Gede - the voodoo festival for Day of the dead. Their spirits are known to be a little bit friskier Bonfire Night - Marked by fireworks this holiday celebrates an attempt to blow up the monarchy and his family hold up in Parliament Rabechilbi Turnip Festival - a small-town celebration of the vegetable Perang Tobat (Rice Cake War) Hindu and Muslim residents pelt each other with rice in a huge fun food fight 1. Lombok Indonesia 2. Richterswil, Switzerland 3. Oaxaca, Mexico 4. Port-au-Prince, Haiti 5. East Sussex England

D. E.

1. Who proposed that the Turkey, rather than the Eagle, should be our national bird? (Hint: He later mockingly named Tom Turkey after Thomas Jefferson who opposed the idea) 2. True or FalseThe U.S.A. is the only country that celebrates Thanksgiving? 3. The First Department store to hold a Thanksgiving Day parade was ? 4. How many days did the first Thanksgiving last? (Americans know how to party) 5. Each year the President pardons a turkey, which President was the first to do so? Andrew Jackson, Millard Fillmore Harry Truman or Warren Harding (not the man who shot someone just for snoring) 6. How fast can a turkey run, 7 mph, 11 mph, 18 mph or 25 mph? (how fast would you run from a man with a knife?) 7. How many Pilgrims were on the Mayflower, 75, 102, 170 or 201? (only half the people survived the journey) 8. It is believed, how many women survived the journey to Plymouth Rock and cooked the first Thanksgiving? 9. The author of "Mary Had a Little Lamb," was key in getting Thanksgiving officially recognized as a national holiday. Who was she...Emily Dickenson, Sarah Josepha Hale, Sarah Jessica Parker or Louisa May Alcott ? 10. L-tryptophan is a chemical found in Turkey what is it good for? Absolutely nothing, say it again or insomnia?

On Thanksgiving Day, all over America, families sit down to dinner at the same moment...halftime."

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The Condominium Conundrum

Condominiums (condos) offer some great advantages to those that dont want to worry about taking care of the everything that owning a home entails. Whether its a secondary residence, a rental income property or a simple downsize, condominiums have a lot to offer. However, there are some areas in the insurance policy language that can create confusion for both unit owners and associations. One of the first things to establish when dealing with condos is who owns what; which part of the building is the unit owners responsible for maintaining, and which is the responsibility of the condo association. The condominium master agreement will detail both the associations and the insureds responsibilities. The typical responsibilities of the condo include common areas, plumbing, wiring, roof and exterior walls. This could include any additional features such as club houses, pools, parking areas and docks. It is the responsibility of the unit owner to understand his/her duties as an owner. For instance, some condo associations could dictate that the unit owner is responsible for coverage for the patio or balcony. They typically include everything from the interior walls, including paint and drywall. This could include built-in bookcases, stainless steel appliances and travertine tile or granite upgrades. The unit owners policy (HO6) states that when an association policy is present, the unit owners policy is excess over the associations. This begs the unit owner to confirm that the association policy has adequate limits and appropriate terms and conditions of coverage. Condo policies also cover loss assessment coverage for unit owners share of an assessment made to all unit owners. This comes in two forms. 1. Assessments made for damages to common areas owned by all the unit owners jointly (property) Ex: Damages to the community pool (assessment damages limited to $1,000 annually unless increased) 1. Assessments made from bodily injury or property damage Ex: A unit owner throws a party and the balcony collapses injuring several guests, unit owners could be assessed for the visitors injuries. Endorsement ISO HO04 35 05 11 allows increases to loss assessment coverage - ask your broker for more information.

Mistakes are always forgivable, if one has the courage to admit them. Bruce Lee (come on, whens the last time you saw a quote from Bruce Lee?) Florida Insurance Commissioner Disapproves Rates
Earlier this year, NCCI issued a proposed notification rate increase to be effective 1/1/2014. However, Florida Insurance Commissioner, Kevin McCarty, issued an order notifying the National Council on Compensation Insurance that its 1 percent proposed annual rate filing increase in Floridas workers compensation insurance rates has been disapproved. After a careful review and analysis by the Office of Insurance Regulation (OIR), the filing reflected an increase in production expenses that were not supported by the information submitted by NCCI. NCCI can re-submit the rate filing to the Office and a 0.7 percent increase would be approved to become effective on January 1, 2014 for all new and renewal business. This approval would represent a 56 percent cumulative reduction in Florida workers compensation rates as a result of legislative reforms introduced in 2003. These legislative reforms have helped keep Florida competitive in the national workers compensation market place. In addition, the abuse and fraud of the system was significantly reduced by these changes. Marginal rate increases are currently necessary for workers compensation insurance in Florida. Mr. McCarty said, "Evidence from the hearing demonstrated that rates could be reduced by as much as 8.3 percent if the reimbursement for hospital inpatient, hospital outpatient and ambulatory surgical centers were statutorily limited to 120 percent of Medicare reimbursement." Some also believe that additional legislative reforms towards medical malpractice litigation would further reduce medical increases and sub sequentially lower Workers Compensation rates.

Humility does not mean you think less of yourself. It means you think of yourself less. Ken Blanchard
Trivia Answers from Page 3: A= #3 Mexico, B = #4 Haiti, C = #5 England, D = #2 Switzerland E =#1 Indonesia 1. Benjamin Franklin, 2. FalseCanada also celebrates, 3. Gimbels Dept. Store Philadelphia November 1920, 4. Three Days, 5. Harry Truman, 6. Up to 25mph, 7. 102 people/Pilgrims, 8. Only 5 women survived the journey, 9. Sarah Josepha Hale, 10. Insomnia