Volume 5 Issue 4

April 1 2015

DONOVAN INSURANCE SOLUTIONS

Regrets and possibilities b y P a u l D o n o v a n

Insurance News You Can Use

Regrets and Possibilities

1

Aging Population

Trends

2

Top 5 Liability

Cases of All Time

2

Encouragement

Chronicles

3

Stephen Wright Observations

3

Individual Health Market Update FL

4

Insurance News 4

Inside this issue:

The year was 1975 and I remember sitting in my friend’s tree fort discussing what the

world, and specifically, what would we be like in the year 2000. It seemed a lifetime

away and if we did the math right, we would be old men in our mid THIRTY’S! The

future held endless questions about what we would do for a living, would we be married,

would we have kids and how rich would we be. That was forty years ago and I cannot

believe my car still doesn’t fly and that I don’t have a robot servant. Wouldn't it be fun to

know what comes next? Sure, it might take some of the surprise out of life, but think of

all the pitfalls you could avoid. Bad investments, bad haircuts and buying that lemon of a car when

you were young. There are very few of us who have made decisions we wouldn’t change if we had

known the results. However, if we are the sum total of our past choices, then we should have few

regrets and only new possibilities.

Legitimate regrets should be limited, here’s a few:

Not spending enough time with your loved ones

Being a workaholic (not to be confused with drive/ambition)

Not taking a risk on something new (business, vacation, hobby)

Not keeping in touch with friends

Ignoring your health

It’s absolutely true that we cannot change our past but it’s equally true that we can affect our future! That’s right, we are

not victims of circumstance, we can change things now to impact what comes next. Glance back to those regrets listed

and prioritize and determine which one(s) you can do something about today. Forget the excuses, it’s too late, it’s too

hard, there’s no time, there’s no money. Establish and prioritize what you need to change to avoid potential regrets.

Then, take action towards accomplishing those goals. Every minute spent in preparation saves ten minutes in execution

(don’t look for the perfect time to act, do it now). Our lives change only when we change something we do everyday. If

we could kick the person that’s responsible for most of our troubles, we wouldn’t be able to sit down for a week. Living

a life without regrets is a wonderful, yet hard thing to do. It’s because we are all prone to making mistakes. Regrets

aren’t about failures in accomplishing things, regrets happen when we don’t put forth our best effort to change. Avoid-

ing regrets is easy if we remember that we can’t become what we need to be by remaining what we are.

“ I’ve yet to find the man, however exalted his station in life, who didn’t do better work and put forth greater effort,

under a spirit of approval than under a spirit of criticism.” Charles Schwab

P A G E 2 I N S U R A N C E N E W S Y O U C A N U S E

While somewhat subjective, these are the cases that exerted huge influence over the national land-

scape of liability coverage.

1. Keene Corp v Ins. Co. of N. America (1981) - the birth of the (continuous trigger) asbestos and

hazardous waste claims. It also created the all sums/joint and several liability method of allocation of

benefits within multiple policies.

2. Marx v Hartford (1968) - it redefined how professional liability (E&O) errors and omissions coverage defined an injury

or damage via conduct deemed a professional services (ex: medical malpractice).

3. Montrose Chemical v Admiral Ins. (1995) - creation of the Montrose endorsement within the insurance industry.

Insured’s can’t insure previously known damaged property or purchase insurance with a known pending claim.

4. Zuckerman v National Union Fire Ins. (1985) - defined claims made v occurrence policy provisions and retro active

coverage for policies. It established the “no prejudice” for claims made policies provisions.

5. NW National Casualty v McNulty (1962) & Lazenby v Universal Underwriters (1964) - McNulty and Lazenby are the

two most frequently cited court decisions regarding punitive damages. The two opposing decisions concerned insurance

companies being responsible for punitive damages v an individual. Both cases are still argued today for and against.

"Courage is fear that’s said its prayers.” Karl Barth

Worldwide population is experiencing declining fertility rates and increasing longevity rates.

The sale of adult diapers outpacing baby diapers in Japan made national headlines. Nations

that have more than 20% of their population over the age of 65 are now considered “super

aged.” Countries like Italy, Germany, Bulgaria, Finland, Greece, Sweden and others are also considered super aged. In

fact more than 34 nations are more than 20% over the age of 65 and another half dozen (including the U.S.) are over

19%. The U.N. has projected the number of older persons will triple from 841 million in 2013 to more

than two billion by the year 2050. The effects on demographics within multiple societies will be massive.

Every aspect of the standards of living will be effected. This includes, jobs, pensions, healthcare, food,

insurance, and even housing in communities worldwide.

Life expectancy in the U.S. in 1950 for men was 71 years and for women 73.5. Therefore it made sense that retiring at

65 gave you a few years of enjoyment. However, today the average life expectancy is around 83 for both men and

women. If you retire at age 65 that’s 18 years of unemployment. Have you made provisions for your future based on

that potential? In a low-yield environment with high government debts, what’s the best way to prepare for the silver

years? Start now! We can’t change the past but we can change our present actions to impact our futures. The lore of

yesteryear, starting with a company in the mailroom and retiring 45 years later as the CEO with the gold watch and

huge pension are gone. Start now and seek the help of a professional to help prepare for your golden years.

The Aging of the worlds population

Top 5 Liability cases of all time by Randy Maniloff

"Stay on target, if you miss the bullseye it’s never the targets fault.” Anonymous

P A G E 3 V O L U M E 5 I S S U E 4

Steven wright-isms b y P a u l D o n o v a n ( j u s t t h e m e s s e n g e r )

Encouragement Chronicles B y P a u l D o n o v a n

I’m blessed to have an amazing staff of talented selfless people. I hate to rob them of a blessing but I want to

share how they have impacted others. This next story has repeated itself twice so far. Our offices are

located on the main corner of downtown Tarpon Springs. We used to be neighbors with a tax preparation

and book-keeping organization. They moved their offices last year and gave us forwarding forms to share

with people that might come inquiring about their new location. An very elderly woman came in and asked

us where their offices were and we told her they had moved. The woman was at first confused then got

misty eyed stating she had just spent $11 dollars on a taxi to get here and she didn’t know what to do.

Without missing a beat, my staff volunteered to drive her to the offices and to wait until she was done,

volunteering to take her home afterwards (remember, this happened more than once now). The tax office

thanked us enthusiastically and told us they would take care of returning their client. The reason we are in

business is not just to make a profit, it’s to impact lives. When I shared this story with some friends they too

had some great examples of people helping others without the possibility of receiving anything in return.

Think about how much more fulfilling our community would be if more people exercised the idea of pay-it-

forward.

“It’s what you learn after you know it all that counts.” Coach John Wooden

1. I bought powdered water but didn’t know what to add.

2. How do you know when you’re out of invisible ink?

3. I couldn't repair your brakes, so I made your horn louder.

4. When I was a kid we had a sandbox. It was a quicksand box. I was an only child..… eventually.

5. I remember when the candle store burned down. Everyone stood around singing Happy Birthday.

6. I busted a mirror and got seven years bad luck, but my lawyer thinks he can get me five.

7. I went to a restaurant that served breakfast anytime so I ordered French toast in the Renaissance

8. There’s a fine line between fishing and just standing on the shore like an idiot with a stick in your hand

9. Sponges grow in the ocean. That just kills me. I wonder how much deeper the ocean would be if that didn’t happen.

10. Do Lipton employees take coffee breaks?

11. What’s another word for Thesaurus?

12. Last night I stayed up late playing poker with Tarot cards. I got a full house and four people died.

13. I was reading the dictionary. I thought it was a poem about everything.

14. If you were going to shoot a mime, would you use a silencer?

15. All those who believe in psychokinesis—raise my right hand.

16. I intend to live forever - so far, so good.

17. Everywhere is within walking distance, if you have the time.

“Would you like to be the sunshine in my life? Aww, yes! Then stay 92,935,700 miles away from me.”

Pg. 4

Will King vs. Burwell kill the 2016 individual health market?

“Of all the things a leader should fear, complacency should lead the list.” John Maxwell

1. Amtrak train collides with tractor trailer in Halifax, N.C. leaving 55 people injured. The truck driver was

attempting a difficult turn when it got stuck on the tracks.

2. Ebola in W. Africa, March of 2014, there were 49 cases reported with 29 deaths. One year later, more

than 10,000 lives have been lost to the disease. World health officials are continuing to fight this outbreak.

3. Germanwings Airbus A320 with 150 people on board, crashed in the French Alps on Tuesday March

24th, no survivors have been reported.

4. With winds of up to 150 mph, Cyclone Pam makes a direct hit on the island nation of Vanuatu leaving 90% of

their infrastructure damaged.

5. The Islamic terrorist triumvirate of Al Qaeda, Boko Haram & ISIS have joined forces and are training together

in the W. African country of Mauritania. Not including the human lives that have been affected, the economic im-

pact of terrorism has exceeded $3 Trillion over the past 15 years.

6. Fireman’s Fund to pay $44 million to settle Crop Insurance Fraud charges.

7. Tornadoes rip through Oklahoma and Arkansas March 25th with one fatality and millions in property damage.

8. A driverless car is attempting 3,500-mile, cross-country trip from SF to NYC. Premium calculations partly

based on driving records will be changed forever.

9. More airbag deployment issues plague Nissan as the second largest automaker requests more recalls.

10. Supreme court rules hospitals and providers can’t sue over reimbursement rates set by states under the Medicaid

insurance program for the poor, irrespective whether it covers the costs of services.

Insurance News Making Headlines

A 2016 major medical plan filing timeline notice from Florida shows how U.S. Supreme Court

deliberations on King vs. Burwell (Case Number 14-114) could paralyze the individual health

markets in some states next year. The case relates to whether Patient Protection and Affordable

Care Act (Obamacare) public exchanges established by the U.S. Department of Health and

Human Services (HHS) can offer PPACA premium tax credits. Traditionally, the court waits until late June to issue

rulings on complicated, controversial cases. However, about 3/4 of exchange plan enrollees are using PPACA tax

credits to pay for coverage, and the exchanges now dominate many states' individual major medical markets. A ruling

against tax credits could cause individual exchange plan enrollments to plummet and increase the percentage of those

who have serious health problems. Decreased access to subsidized individual coverage could seriously affect actuarial

projections for off-exchange plans and small group plans.

Justice Samuel Alito suggested during oral arguments that the court could stay the effects of a ruling

against tax credits until the end of the year. This potentially creates a huge problem because HHS requires

participating carriers to submit rate and form filings for 2016 by May 15, 2015. The Florida Office of Ins.

Requires rate reviews by August 25, 2015 and have until Oct. 9, 2015, to sign off on filings that do not

include a qualified Health Plan (QHP). The conflict between the rate filing system and the Supreme Court

deliberation process means that a health insurer may have to set 2016 rates with little or no access to important

information about how the individual market, and, possibly, the small-group market, will work in 2016. The old

Indian proverb holds true, “Timing has a lot to do with the outcome of a rain-dance.”

“If we did all the things we are capable of doing, we would astonish ourselves.” Thomas Edison