texas connection february 2016

In This Issue

2016 Convention & Trade Show

Employee Privacy

The Benefits of Tele-Medicine

What a Speeding Ticket Really Costs

the

TEXAS CONNECTION TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL FEBRUARY 2016

Our Partners ……..……………....…….… Page 2

Presidents Corner ……………………..……

Employee Privacy …………………..……… Page 5

2016 Convention & Trade Show …....…… Page 14

What a Speeding Ticket Really Costs ….... Page 14

The Benefits of Tele-Medicine ………….... Page 16

Classifieds ………………………..……….… Page 21

TDI Enforcement Actions …….……..….…. Page 23

By The Numbers …...…….………...…….… Page 25 Word Scramble ……...…….…………..….… Page 27 The Last Word …………………………….… Page 29

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 3

Well, the Holidays are past Now our attention here at Texas PIA turns to our Annual Conven-tion. This year, we are back in San Antonio, May 19th - 21st … but at a new hotel.

Hotel Contessa is on The Riverwalk… about a block from the Palacio Del Rio. Every room is a 2 room suite. Last year it was named as one of the 10 Best Hotels in America by USA Today! And the rates are very reasonable… we can’t publish them here… but you’ll like them.

This year’s theme is “Meet me at the Fair!”

Exhibitors will be invited to include typical “Midway type” games and a $1,000 prize will be awarded to the booth that best emulates the ‘County or State Fair aura.”

There is also a $500 prize for the best costume. Maybe not as easy as last year with the Mardi Gras theme… but our members can be pretty imaginative and resourceful… and who of us has not been to a fair? Remember Ready Kilo-watt? Maybe not.

At Friday’s Luncheon, Colonel Roy Phillips, a recognized expert on such topics as Ethics and Cyber Liability, and a regular contributor to the legendary industry magazine, The Insurance Record, will educate us during our fine meal.

Jason Cass of Grow Program, a social media and marketing expert, will speak at Saturday’s Luncheon. You’ll remember him from last year’s convention… your pen will melt down as you try to write down all of his good ideas!

See you there!

Shirley Almany

Shirley

Prada Marfa is an art installa-

tion by artists Elmgreen and

Dragset created in 2005. It’s

located just northwest of Valen-

tine, Texas, just off U.S. High-

way 90 (US 90), and about 26

miles (42 km) northwest of the

city of Marfa. In 2014, TxDOT

officials announced that the

structure would be reclassified

as a museum, with the Prada

Marfa as its only exhibit.

(continued on page 6)

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

From video surveillance to keystroke recorders, technology makes it easier than ever for employers to monitor what their employees are doing. But where do employers’ surveillance rights end and employees’ rights to privacy begin?

Video Surveillance In 2007, only 7 percent of companies surveyed by the American Management Association used video

surveillance to track select employees’ on-the-job performance. Almost half (48 percent) used video

surveillance to counter theft, vandalism and sabotage, which might or might not include employees.

No federal law prohibits video monitoring of the workplace, even if employees do not know or con-

sent to monitoring. Only two states, Connecticut and Delaware, require employers to disclose moni-

toring to employees. Elsewhere, employees generally have no privacy rights in “public spaces.” How-

ever, in areas where they have a “reasonable expectation of privacy,” such as an enclosed office, rest

room or locker room, courts have generally ruled in favor of employees’ privacy rights.

If your video equipment records sound as well as images, wiretapping and eavesdropping laws might

apply. Federal law and the majority of states permit recording of phone calls and other electronic

communications with the consent of at least one party. Twelve states (California, Connecticut, Flori-

da, Illinois, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Pennsylvania

and Washington) require all parties to a conversation to consent to being recorded. In every state,

employers should disclose that employees might be subject to audio and video recording while on

company property. For further advice, please contact an employment attorney.



GPS Tracking An AMA/ePolicy Institute survey from 2005 found that 5 percent of employers used GPS tech-

nology to monitor employee cell phones, 8 percent used it to track company vehicles, and 8

percent used it to monitor employee ID or smartcards. No federal laws address GPS tracking

of employees. However, courts could find “…the use of GPS to monitor employees could meet

the necessary legal standards for invasion of privacy,” even within the workplace, according to

a National Workrights Foundation report. The report further cautions, “…[Collecting] infor-

mation regarding employee activities during breaks and their activity in sensitive areas such as

rest rooms might be actionable. Outside the traditional employment setting and during hours

traditionally regarded as personal, monitoring using GPS technology raises even stronger pri-

vacy concerns.”

To avoid violating employees’ privacy, employers using GPS technology should inform their

employees which devices have GPS technology, what information the company will gather and

when, and how the information will be used. Most GPS-equipped devices allow users to turn

off tracking. If your employees can use GPS-equipped phones or vehicles for personal purpos-

es, you can instruct them how to turn off tracking features when off duty.

Computers, Internet and Email Software programs with names like IAmBigBrother, SpyTech and Activity Monitor can let you

monitor your employees’ computer use without their knowledge. They can show you employ-

ees’ screens in real time, track Internet sites visited, monitor keystrokes to track productivity

and show contents of email and IM messages—all without employees knowing. But is it legal?

Although the Electronic Communications Privacy Act of 1986 (ECPA) generally prohibits the in-

terception of any wire, oral or electronic communication, it creates a specific exception for

employers. Employers can intercept employees’ electronic communications if they have a

“legitimate business purpose” for doing so. The ECPA also permits employers to intercept em-

ployees’ communications if they have employees’ express permission.

Courts have traditionally treated company computers, and anything on them, as company

property—even when employees were using personal email accounts on company computers.

However, several recent cases have come down in favor of granting employees more privacy

rights over their emails.


(from Page 6)

For this reason, any company that plans to monitor employees’ e-mail or online activities

should include an e-mail and Internet privacy statement in its employee handbooks and re-

quire employees to sign a document acknowledging receipt of the policy.

Telephone Monitoring The Omnibus Crime Control and Safe Streets Act prohibits employers from eavesdropping on or wire-

tapping telephone calls, with two major exceptions. The employer can listen in on conversations “in

the ordinary course of business,” such as for customer service, and “where employees have been no-

tified expressly that their telephone conversations will be monitored.” If your company will monitor

employees’ telephone calls, you need to notify them in writing and obtain their written consent.

However, even with consent, the ABA Family Law Guide says that employers’ rights to monitor em-

ployees’ conversations are not absolute: “Some courts have indicated…that once the private nature

of a telephone conversation is determined, any continued eavesdropping would not be in the ordi-

nary course of business and may subject the employer to liability. An employer violating the law can

be sued for money damages.”

Property Searches Although the U.S. Constitution prohibits unreasonable search and seizure, once in the workplace, the

employers’ rights to protect their property usually trump employees’ privacy rights. As with video

monitoring, however, employers should tread carefully before searching any area where an employee

might have a “reasonable expectation of privacy.” These include his/her personal possessions (such as

handbags and backpacks), personal workspace and lockers.

If you suspect an employee might have prohibited items, such as illegal drugs or firearms, at work,

contact an employment attorney before conducting a search. And to protect your company from po-

tential lawsuits, make sure your employee handbook contains a notice that the company retains the

right to search company property, including employee desks and lockers, at any time and without

warning.

Liability Protections Although commercial liability policies protects your customer from claims alleging invasion of privacy,

it excludes claims brought by employees. To protect your customer from the high cost of employee

lawsuits, they’ll need employment practices liability insurance (EPLI). Offer them coverage either

through standalone policies or as an add-on to their business owners package.

Hotel Contessa Luxury Suites on the Riverwalk

306 West Market Street, San Antonio, Texas 78205

Thursday, May 19: Golf Scramble & Skeet Shoot

Friday, May 20: CE Classes, Lunch, Trade Show,

Free evening for fun.

Saturday, May 21: CE Classes, Lunch, Trade Show, &

President’s Reception Saturday Evening.

Presenters include: Colonel Roy L. Phillips, CIC, CISR, CPIA, AAI

and

Jason Cass author of "Customer Service is Just Foreplay"

http://www.aaimco.com/node/219

The convention hotel is

Hotel Contessa, named

by USA Today as one of

the Top 10 hotels in

America for 2015.

On the Riverwalk…

A Full service Spa & the Gym

are near the rooftop pool, and

Great dining right in the Hotel.

It is truly a Luxury Hotel.

Every room’s a suite.


Every year, about 41 million Americans, or one-fifth of drivers, get speeding tickets. They pay

more than $6.2 billion in fines, according the U.S. Highway Patrol.

Speeding tickets are big business. StatisticBrain.com reports that the average annual speeding

ticket revenue per U.S. police officer is $300,000! With municipalities strapped for cash, and

technologies such as cameras and sensors making it easier to catch violators, your chances of

getting caught are probably increasing.

So what will a speeding ticket cost you? The average ranges from $110 to $150; your actual

costs will vary depending on the locale, your speed in excess of the limit, and other factors.

But your costs don’t end there. Getting caught speeding could result in the following charges:

• Traffic school. Some jurisdictions allow first-time violators, or those who haven’t been cit-

ed in a while, to go to traffic school. Pass the course and your violation won’t appear on

your driving record. Expect to pay $35 or more, plus your lost time.

• Increased premiums. Driving 1-15 miles above the speed limit will add an average of

20.54 percent to your insurance premiums. Driving 16-30 miles per hour over the limit will

add 28.06 percent, and 31+ miles per hour will cost you nearly 30 percent extra. (Source:

Insurancequotes.com)

• Points. In most states, insurers use a point system to determine a driver’s safety record. A

moving violation will add points to your driving record. When your points reach certain

levels, your insurer will add surcharges to your insurance premiums. Points stay on your

driving record anywhere between one and three years, depending on state. Accumulate

too many points, and you can lose your license.

If you get a speeding ticket in a rental car or out of state, don’t think you’re off the hook. A ticket follows your license, not the car. Most states’ motor vehicle departments have reciprocity, which means they share information on driving violations. Your ticket will likely catch up to you.


Parity laws remove some of the barriers to more widespread adoption of telemedicine.

Knowing they will be reimbursed for services makes healthcare providers more willing to

offer telemedicine services and to invest in any technology. And the more providers that

offer it, the more mainstream it will become. The laws also reduce the compliance require-

ments on hospitals when granting privileges to telemedicine “visiting physicians.”

What Is Telemedicine?

As the name implies, telemedicine encompasses any medical activity involving distance. To-

day telemedicine uses electronic information and telecommunications, but the practice goes

back to the days when sea captains would use ship-to-shore radio to obtain medical advice.

Telehealth includes such technologies as telephones, facsimile machines, electronic mail sys-

tems, and remote patient monitoring devices, which collect and transmit patient data for

monitoring and interpretation.

The Centers for Medicare & Medicaid Services (CMS) says, “…telemedicine seeks to improve a patient’s health by permitting two-way, real time interactive communication between the patient, and the physician or practitioner at the distant site.” CMS views telemedicine as “…a cost-effective alternative to the more traditional face-to-face way of providing medical care (e.g., face-to-face consultations or examinations between provider and patient)…”


Recently, the state of Washington passed a law requiring employee health plans to reimburse providers for telemedicine services. That made Washing-ton the 24th state to require “telemedicine parity.”


(From Page 16)

What’s so Great About Telemedicine?

Telemedicine can help an injured or sick person get proper treatment sooner, particularly in

remote or rural areas where medical help or specialists might be far away. In addition, tele-

medicine technologies deployed in ambulances can help speed diagnosis and the initiation

of important, potentially lifesaving interventions.

Telemedicine has the potential to shave $4.28 billion annually from America’s healthcare bill,

according to a study by the University of Texas Medical Branch. It offers these benefits:

• Providers get greater access to specialized information and diagnoses

• Reduction in hospital admissions from emergency departments

• Reduced wait times for outpatient consultation

• Increased productivity of healthcare staff

Reduction in patient travel time and expenses

The University of Rochester Medical Center in Rochester, N.Y. has a telemedicine center. Its

director, Kenneth McConnochie, MD, MPH, told a forum that telemedicine can handle 85

percent of pediatric primary care visits and 40 percent of emergency room visits. The aver-

age telemedicine visit there costs $75, or one-tenth of the cost of a typical ER visit.

Telemedicine also saves patients time and money. The state of Georgia launched a telemedi-

cine partnership in 2005 to provide better health services to the state’s large rural popula-

tion, and to address a shortage of specialists. Paula Guy, CEO of the nonprofit Georgia Part-

nership for Telehealth, reported that a random sample of Georgia telehealth visits from 2011

saved the average patient travel time of 124 miles per encounter and a total of nearly

$762,027 in fuel costs over 40,009 telehealth visits.

The combination of sophisticated videoconferencing, electronic medical records, and tele-

monitoring can revolutionize medical care for all patients. The challenge lies not in the tech-

nology, but the processes and policies that govern healthcare delivery and payment.

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 9

(From Page xx)

There’s an App for That

Parity laws help bring telemedicine into the mainstream. Full integration of telemedicine into the

medical system will depend on the healthcare industry’s ability to address barriers, especially in-

surance reimbursement models; liability rules; and licensure rules that prevent healthcare pro-

viders from offering telemedicine consultations across state lines.

Some of the country’s largest health insurers, including Wellpoint/Anthem, United Healthcare

and Aetna, are convinced telemedicine is here to stay. They will pay for telemedicine services.

Already, a couple of smartphone apps allow users to connect with a doctor remotely. Doctor on

Demand claims to be the largest provider of video physician visits in the country. Doctors con-

nect with patients via smartphone or computer so they can discuss and/or look at a specific

problem.

Although telemedicine might never replace a face-to-face doctor’s visit, it has its place. It could

save money and allow patients in remote areas to see the doctor more often.


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Need more information on the

benefits of membership?

Have a question about member

services? Give us a call:

Texas PIA & Young Insurance Professionals

3632 Frankford Rd 200B

Dallas, Texas 75287

(972) 862.3333 [email protected]

www.piatx.org

Never ask a barber if

you need a haircut.

- The Insurance Sage

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Pa ge 23

TEXAS DEPARTMENT OF INSURANCE ACTIONS

Vanpelt, Cynthia N Date of Action: 7/13/2015 Location: Dallas Action Taken: Sentenced to 3 years deferred adjudication, 120 hours community service, fined $1,500.00 and ordered to pay $3,174.64 in restitution. Violation: Insurance Fraud, State Jail Felony

Tarco, Virgilio Date of Action: 7/22/2015 Location: Houston Action Taken: Sentenced to 3 years deferred adjudication. Violation: Securing Execution of a Document by Deception, 3rd De-gree Felony

Vanpelt, Cynthia N Date of Action: 7/13/2015 Location: Dallas Action Taken: Sentenced to 3 years deferred adjudication, 120 hours community service, fined $1,500.00 and ordered to pay $3,174.64 in restitution. Violation: Insurance Fraud, State Jail Felony

McCann, Paul Date of Action: 7/8/2015 Location: Houston Action Taken: Sentenced to 7 months incarceration. Violation: Insurance Fraud, State Jail Felony

Oyoung, Yu Ping Date of Action: 7/8/2015 Location: Richmond Action Taken: Indicted Violation: Insurance Fraud, State Jail Felony

Mackey, Kenneth Date of Action: 7/7/2015 Location: Houston Action Taken: Sentenced to 18 months deferred adjudication and 120 hours community service. Violation: Insurance Fraud, Class A Misdemeanor

Clayton, Randall Date of Action: 6/26/2015 Location: Waxahachie Action Taken: Sentenced to 3 years probation, 120 hours community service, fined $1,000.00 and ordered to pay $3,203.00 in restitution. Violation: Misapplication of Fiduciary Property, State Jail Felony

: https://wwwapps.tdi.state.tx.us/inter/asproot/fraud/indictments/clips.asp


It wasn’t that long ago that I would routinely leave my car unlocked. I’m sure that would have irritated my agent. Even though these numbers are a few years old, they demonstrate the need to be vigilant about vehicle theft and burglary. Let’s take a look.

A vehicle is stolen in Texas every minutes.

in every registered vehicles was stolen in 2010.

Texas ranks number in the nation in auto theft, behind California. Half of the vehicles stolen are unlocked and have the keys in the ignition.

Texas recovered approximately of the vehicles stolen in the state in 2009.

A vehicle is burglarized in Texas every minutes.

cases of vehicle burglary were reported in Texas in 2010.

The estimated total value of property stolen from vehicles in 2010 was

.

The average dollar loss per case involving the theft of property from inside a vehicle in

2009 was .

The average dollar loss per case involving the theft of parts off a vehicle in 2009 was

.

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Call Brett Fallert

Direct: 866-776-6574

[email protected]

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Monitored security certificates sent directly to the agent, from your Secure/24ADT representative

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Free upgrades to cellular module if there is no

phone line to the house

Upgrades available to ADT Pulse (home automa-

tion and video)

ADT has a money back service guarantee as well

as a movers package guarantee

ADT will pay $500 of the deductible in the case of

burglary (certain restrictions apply)

Enroll with our new partner, Secure 24/ADT and:

Show your homeowners customers how to lower their insurance rates with a monitored se-curity system.

Secure 24 offers your customer a special installation pricing.

Secure 24 pays you $200. when they install a system you refer.


Arrange each of the following anagrams to form a single insurance related word.

Keep in mind that the anagram is not a clue. It has nothing to do with the insurance

related word. Send us your answers to be entered in a drawing to win a fabulous

CASH prize! Feel free to call us if you’re stuck.

972.965.2025 Email to: [email protected] or fax to 972. 307.7888

TRY A STOUT

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MALLS INTENT

NO DEERS

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TOPICAL PAIN

BY DIM RIOT

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LONE GUITAR

BROWSE A TON

MEAN IDIOTS

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IN A CRUSHER

SECLUDED BIT

FANCIER END

NO GENT CYNIC

CORAL PRICE

UNICORN ACES

Here’s the answers to last month’s puzzle. Remember there’s a $50 prize for the first person to

submit the correct answers. (before the answers are published obviously.)

REGULATION

BOATOWNERS

MEDIATIONS

ACTUARY

HURRICANES

DEDUCTIBLES

REFINANCED

CONTINGENCY

RECIPROCAL

COINSURANCE

We’d like to give a hardy welcome to

our newest company members:

AmWINS Specialty Auto

Aspen Insurance Managing General Agency

Louis A. Williams & Associates, Inc.

McClelland & Hine, Inc.

MyUnderwriter.com

Windhaven Insurance

You join an elite group of companies that make this

association thrive, and enable us to provide serious

support to member agency owners… and we truly

appreciate your continuing support.

Thank you!

the Last word

texas connection february 2016

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