A real advocate for agents and brokers in California’s tough economic & regulatory environment !

The Producer’s Advocate

Newsletter, Volume 5 September 29, 2010

We need tough regulations to protect consumers but we also need more common sense in governmentMike Villines, candidate for Insurance Commissioner

EXCLUSIVE INTERVIEW

Government should not be the enemy of California’s job creators

In keeping with a primary mission of IABAC - to “forcefully advocate for our members” - we bring you a no-holds barred interview with the candidate we believe is most likely to manage the California Insurance Commission in a responsible manner and in the best interests of both consumers and industry - Mike Villines.

IABAC: Mike, what experiences in your life - both in business and in government - have best prepared you for the job of Insurance Commissioner?

Mike Villines (pronounced “Vuh-LINES”): Having owned a small business I understand the challenges that small businesses face and how often it seems like government is working against you. The Insurance Commissioner needs to work with businesses

that follow the law so that they can be successful and in turn create jobs and a healthy, competitive market that ultimately benefits California consumers.

IABAC: As you may know, California businesses providing insurance products and services were promised a more responsive DOI during the last election, but instead it seems to be taking longer and longer to bring new products and services to market for the consumers. What

actions would you take to address this slow-moving bureaucracy?

MV: A good first step to getting products to market quickly would be through regulatory streamlining- that still retains the public hearing process. We could also look at standardized insurance provisions or the use of presumptive regulations as an option to expedite the approval process. The bottom line is that we need more products into the

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Thanks to the efforts by IABAC President Joe Jimenez and our legal counsel, Bob

Hogeboom of Barger and Wolen, the DOI has not yet moved forward on the regulations. According to Mr. Hogeboom they may actually be held for the next insurance commissioner to decide whether to pull them or to move forward.

IABAC continues to strongly oppose the CDI Proposed Homeowners Replacement Estimate Regulations on the basis that they create onerous standards and recordkeeping requirements on producers who use replacement cost estimates in quoting homeowners insurance. IABAC was at the forefront in the efforts to have these regulations repealed as we were the only agents’ association to call for their complete rescission. President Joe Jimenez and legal counsel Bob Hogeboom testified against the regulations in June and submitted letters with legal and policy objections, which in turn, encouraged other associations to sign on in agreement. We will continue to await the actions of the DOI and weigh all of our available options in our subsequent responses.

IABAC continues to urge all agents and brokers to join us in vigorously opposing this proposed regulation. Please get involved by supporting our efforts and become a member today! Visit our website to sign up online at www.iabac.org, emailing info@iabac.org or calling us at 800-998-4022.

Joe Jimenez, CSIS Insurance,

CEO of the Insurance Agents

and Brokers Association

of California (IABAC).

Update on the DOI’s Homeowners Replacement Estimate Regulations

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market faster because more competition will lower prices and offer consumers more choices within their budgets.

IABAC: Health care reform has been a big topic of late resulting in many business owners, who are also consumers of health care, reacting with grave concern to the proposed government takeover of this vital sector of our economy. What are your plans for addressing the health care system in California as Insurance Commissioner?

MV: Insurance Commissioners will have a critical role in shaping how health care changes in their state. I do not support the Federal health care package as a whole but I do believe that there are some pieces that are common-sense measures that California should implement. One of those pieces is expanding health coverage to more people who have pre-existing conditions and cannot get coverage in the private market. IABAC: Mike, frivolous lawsuits are a tremendous drain on California’s economy, including the insurance industry. Frivolous litigation costs consumers in the form of higher prices and higher premiums. What can you do to address the issue of out-of-control litigation?

MV: Using alternatives to litigation - increased use of conciliation and administrative options - will have positive

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EXCLUSIVE INTERVIEW

...Mike Villines1

Government should not

be the enemy of

California’s job creators

IN THIS ISSUE

Important information to help you grow

Dear reader, welcome to the September edition of “The

Producer’s Advocate”. IABAC is dedicated to defending producer’s rights in the state of California. We hope that you enjoy our newsletter - which we intend to fill with vital information designed to help you grow and prosper in California’s tough regulatory environment.

impacts on the number of frivolous lawsuit and help cut insurance costs. The Department already has experience in this field but the opportunity

exists for expansion of these litigation alternatives both administratively and through statute. IABAC: For our members who may be unfamiliar with your career as an Assemblyman from the Clovis (Fresno) area, what were your most significant focus areas as a state representative?

MV: A big focus for me was trying to improve the economy and create jobs - I pushed for a state “spending limit” so government cannot

Assemblyman Mike Villines, R-Clovis, candidate for Insurance Commissioner, and IABAC President, Joe Jimenez, sit down for an exclusive one-on-one interview.

In this edition we bring you an exclusive interview with Assemblyman Mike Villines, candidate for Insurance Commissioner.

In addition, we focus heavily on Obamacare this month, as it continues to pose a serious threat to our individual freedom and ability to operate businesses in the private sector.

Also, an interesting article of

Darby Checketts, regarding the cynicism; another about HHS Secretary Kathleen Sebelius Threatens Insurers, and one more note sbout Blue Shield of California Life & Health.

Your feedback is welcome and we invite you to join IABAC by visiting www.iabac.org.

Thank you

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spend more money than it brings in and also for tax credits for small businesses who hire new employees. Another important issue for me was expanding heath insurance coverage for people with pre-existing conditions and I authored legislation on that issue several times and was able to pass a bill on it this year.

IABAC: You know Mike, what we as business owners are experiencing in California is a downright hostile regulatory environment. What reforms can an Insurance Commissioner enact to make it easier for business people in this state to take care of their customers? MV: We need tough regulations to protect consumers but we also need more common sense in government. Government should not be the enemy of California’s job creators. I would take a balanced approach and work to streamline regulations where it makes sense.

IABAC: Please tell us what the biggest differences are and would be between an Insurance Commissioner Mike Villines and your opponent, Dave Jones?

MV: As Insurance Commissioner, I will work hard to control costs that have hindered job creation and cut barriers to competition to ensure consumers and businesses have access to affordable and available

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insurance. My opponent is a career politician with no private sector work experience who has consistently voted to increase the high taxes and high regulatory

IABAC Editorial:

IABAC believes that Health Insurance carriers and agents who think they can “work with” the Obamacare healthcare takeover are sadly mistaken. We believe Obamacare is designed NOT to work and instead is a plan to slowly put the health insurance carriers and health insurance agents out of business, thereby opening the door for the ultimate liberal/progressive goal of a complete government run single payer healthcare plan like the ones in Great Britain and Canada.

We are convinced that Obamacare will be a disaster for all of us - not only as small business people but also as consumers. Any form of

government managed care ultimately results in rationing and less care, not more. The latest Rasmussen poll (9/20/2010) shows 61% of Americans want Obamacare repealed.

IABAC believes the only way to deal with Obamacare is to defund it and force its repeal.

We urge you to support candidates who will guarantee to vote for any repeal measures and to actively oppose candidates like Dave

Jones who support Obamacare or ANY form of government run healthcare. IABAC will continue to run articles in every issue of the newsletter exposing the Obamacare fraud.

ObamaCare Designed with Failure in Mind- Yours!

costs that have hurt California’s economy.

IABAC: Is there anything else you would like to add?

MV: I appreciate the

opportunity to be inter-viewed for the IABAC newsletter. For more information on my cam-paign visit www.mikevillines.com and when you vote, just remember, “I like Mike.”

Dear Patients: Vote to Repeal ObamaCare

Don’t believe Democrats who promise to fix the bill once they’re re-elected

by Hal Scherz, September 1, 2010 -

Wall Street Journal Online

Facing a nationwide backlash, Democratic congressional candidates have a new message

for voters: We know you don’t like ObamaCare, so we’ll fix it.

This was the line offered by Democrat Mark Critz, who won a special election in Pennsylvania’s 12th congressional district after expressing opposition to the law and promising to mend it-but not to repeal it. As a doctor I know something about unexpected recoveries, and this latest attempt to rescue ObamaCare from repeal needs to be taken seriously.

For Democrats who voted for ObamaCare, this tactic is an escape route, a chance to distance themselves from the president with a vague promise to fix health-care reform in the next Congress.

To counter this election-year ruse, my colleagues and I at Docs4PatientCare are enlisting thousands of doctors in an unorthodox and unprecedented action. Our patients have always expected a certain standard of care from their doctors, which includes providing them with pertinent information that may affect their quality of life. Because the issue this election is so stark-literally life and death for millions of Americans in the years ahead-we are this week posting a “Dear Patient” letter in our waiting rooms.

The letter states in unambiguous language what the new law means:

“Dear Patient: Section 1311 of the new health care legislation gives the U.S. Secretary of Health and Human Services and her appointees the power to establish care guidelines that your doctor must abide by or face

penalties and fines. In making doctors answerable in the federal bureaucracy this bill effectively makes them government employees and means that you and your doctor are no longer in charge of your health care decisions. This new law politicizes medicine and in my opinion destroys the sanctity of the doctor-patient relationship that makes the American health care system the best in the world.”

Our doctor’s letter points out that, in addition to “badly exacerbating the current doctor shortage,” ObamaCare will bring “major cost increases, rising insurance premiums, higher taxes, a decline in new medical techniques, a fall-off in the development of miracle drugs as well as rationing by government panels and by bureaucrats like passionate rationing advocate Donald Berwick that will force delays of months or sometimes years for hospitalization or surgery.”

We cite the brute facts of ObamaCare’s passage:

“Despite countless protests by doctors and overwhelming public opposition-up to 60% of Americans

opposed this bill-the current party in control of Congress pushed this bill through with legal bribes and Chicago style threats and is determined now to resist any ‘repeal and replace’ efforts. This doctor’s office is non-partisan-always has been, always will be. But the fact is that every Republican voted against this bad bill while the Democratic Party leadership and the White House completely dismissed the will of the people in ruthlessly pushing through this legislation.”

Then we address the Democrats’ evasive campaign maneuver:

“In the face of voter anger some Democratic candidates are now trying to make a cosmetic retreat, calling for minor modifications or pretending they are opposed to government-run medicine. Once the election is over, however, they will vote with their party bosses against repealing this bill.” The letter’s final lines are the most important:

“Please remember when you vote this November that unless the Democratic Party receives a strong negative

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Don’t believe Democrats who promise to fix the bill once they’re re-elected

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message about this power grab our health care system will never be fixed and the doctor patient relationship will be ruined forever.”

This message is going out to an electorate that is already frustrated over what they see happening to health care. Missouri voters rejected ObamaCare overwhelmingly in August, voting by a margin of 71%-29% to reject the federal requirement that all individuals purchase health insurance. Democratic pollster Douglas Schoen has assessed that ObamaCare is “a disaster” for Democrats. And around the country many little-noticed primaries have reflected voter rage-including the Republican primary victory of surgeon, political newcomer, and advocate of repeal Daniel Benishek in Michigan’s first district.

Meanwhile, the Obama administration’s damage-control efforts have fallen flat. The latest round of pro-ObamaCare television spots targeting the elderly and starring veteran actor Andy Griffith have not only failed to move the polling numbers. They have caused five U.S. Senators to ask for an investigation of the ads as a violation of federal laws barring the use of tax dollars ($750,000) for campaign purposes.

America’s doctors have millions of personal interactions each week with patients. We have political power. And we intend to use it by working to defeat those who have disrupted and gravely endangered the best health-care system in the world.

* Dr. Scherz, a pediatric urological surgeon at Georgia Urology and Children’s Healthcare

of Atlanta, serves on the faculty of Emory University Medical School and is president and

cofounder of Docs4PatientCare.

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Cynicism is a special brand of negativism. It speaks of distrust and a lack of

confidence that our problems can be solved. It results in angry finger pointing that is often a substitute for constructive participation in the process of bringing about needed change. The “talk show” hosts love to prod cynics to give the impression that these individuals speak for a majority of Americans.

Cynicism vs. Leadership

* DARBY CHECKETTSNote about the author: Darby Checketts is the President of Cornerstone Professional Development, which he founded in 1985. He worked with Mercury’s marketing department in the development of the Service Excellence Awards Program for Mercury agents. He travels across the country each year to conduct Customer Astonishment rallies for Mercury employees to support their commitment to Service Excellence. Darby has worked with hundreds of organizations worldwide to assist them in raising the bar for customer care. He is the author of Customer Astonishment: 10 Secrets to World-Class Customer Care and eleven other books. He is the creator of the CustomerChampionTM professional certification program. This program has been a catalyst for Mercury, where over 340 employees are now certified. This program can assist you and your team in identifying new ways to increase customer satisfaction while providing opportunities for personal recognition of those who join in the commitment to Customer Astonishment. For further information about Darby Checketts and his company and to learn more about the resources available to IABAC members, please visit the following websites or contact info@iabac.org. www.AstonishU.com: This is “The Customer Astonishment Get-Started Website” and the company’s online store where you can obtain Customer Astonishment educational materials. Click on the “Resource Center” tab where there are nine (9) documents that provide much detail on various Cornerstone products and programs along with Client Testimonials.www.CustomerChampion.com: This site provides further background on Darby Checketts’ consulting services in a variety of areas.www.NewAmericanProsperity.org: This is Darby Checketts’ personal blog where he shares inspirational ideas and success tips to assist his fellow Americans in discovering new leverage for leadership in business and success in life.

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Author: Darby Checketts* at www.NewAmericanProsperity.org.

Leadership, on the other hand, is often about trail blazing. It requires the faith and the willingness to change direction to discover new possibilities, often in the face of criticism. The positive breakthroughs that have come in our society have often come about because someone led with vision where others feared to go.

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HISPANIC 100

Villines Secures Endorsements from

Prominent California Latino Leaders and

Organizations

SACRAMENTO, CA - September 23, 2010.- Mike Villines, Republican candidate for Insurance Commissioner, today announced the

endorsement of the Latino Mayors and Elected Officials Coalition, the Hispanic 100, the National Mexican-American Anti-Defamation Committee, the Republican National Hispanic Assembly, California Chapter, and City Councilmembers Alex Vargas of Hawthorne and Eugene Montanez of Corona.

‘Mike Villines is fighting for more job opportunities in our communities,’ said Parlier Mayor Armando Lopez, chairman of the Latino Mayors and Elected Officials Coalition.

Dr. Tomas Martinez, chairman of the National Mexican American Anti-Defamation Committee added, ‘We have known Mike Villines for a decade and deem him of strong character, a leader who can make sure the insurance situation in California is as fair and honest as possible to all its citizens. Let our endorsement be a signal to the Latino population that Mike is a good man and worthy of their vote.

by Jennifer GibbonsMedia Contact

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ELM Insurance Brokers was founded in 1995 as an independent wholesale insurance brokerage.

In August, 2008, E.L.M. was acquired by Insurance Specialty Group and is now an ISG Company.

ELM’s commitment to providing agents and their clients with polished, professional and exacting representation in

the global marketplace is unwavering. It’s promise is to deliver quotes and policies in a timely manner, reflecting

the coverage a client has requested and requires. Brokers from all states may register and use the system.

BENEFITS OF AN ANNUAL IABAC SPONSORSHIP

• Access to informative and timely newsletters with relevant information you need to know.

• You will be helping an extremely pro-active insurance producer advocacy group to defend its members – your sales force.

• A high level of visibility. All IABAC sponsors will be promoted on the IABAC website, at all events, through all program books, marketing material and signage.

• Goodwill among the insurance producer community.

info@iabac.org

HELP US HELP YOU - BECOME A MEMBER TODAY!

The Insurance Agents and Brokers Association of California (IABAC) steadfastly defends insurance producer’s rights to operate freely and fairly in California by providing fair regulatory and legislative protection, as well as protection against potential abuses by any other group, company or organization. In addition, provide quality products and services that help its members compete more effectively in the state.

HHS Secretary Kathleen Sebelius Threatens Insurers Who Criticize Obama Care

ZERO TOLERANCE

September 10, 2010

Can you say thugocracy? I knew you could. As is typically the case for this regime, the First Amendment doesn’t apply to you, if you are

go against the Obama Regime’s policies. Yesterday, HHS Secretary and tax cheat Kathleen Sebelius threatened insurers who have the nerve to actually criticize ObamaCare! According to the AP, Sebelius warned these companies that they will be excluded from new health insurance market once the full bill

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On September 20, 2010, the Lake County Superior Court granted summary judgment in favor of Barger & Wolen

client Blue Shield of California Life & Health Insurance Company in the health insurance rescission action titled John M. Hagan v. California Physicians’ Service, et al. Blue Shield Life was represented by Barger & Wolen partners John M. LeBlanc and Sandra I. Weishart and senior associate Ophir Johna, and by Gregory N. Pimstone from Manatt, Phelps & Phillips, LLP. In 2006, Blue Shield Life rescinded a health insurance policy issued to the Hagan family after discovering that they misrepresented and omitted Ms. Hagan’s ongoing, serious medical problems and treatment in their insurance application. Had it known about Ms. Hagan’s true medical history, Blue Shield Life would not have issued the policy. The Hagans asserted several claims against Blue Shield Life, including breach of contract and bad faith. They contended that the rescission was improper and that it amounted to illegal “post-claims underwriting.” On Monday, the court rejected all of the Hagans’ arguments, granting summary judgment as to the entire action and thereby confirming that Blue Shield Life was legally justified in rescinding the Hagans’ policy.

Blue Shield Wins Summary Judgment in Rescission Caseby John M. LeBlanc

and Ophir Johna

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In granting summary judgment, the court agreed with the Court of Appeal’s decision in Nieto v. Blue Shield of California Life & Health Insurance Company, that the underwriting standard delineated by the appellate court in Hailey v. California Physicians’ Service, a case also handled by Mr. LeBlanc and Barger & Wolen, was inapplicable to health insurers such as Blue Shield Life. Applying the correct legal standard, the court found that Blue Shield Life completed all legally required underwriting prior to issuing the Hagans’ policy, and that it was not required to obtain the Hagans’ medical records because their insurance application gave no indication of any potential underwriting issues. The court further found no triable issues of fact as to whether the Hagans misrepresented and failed to disclose material medical history information requested by the application. (In fact, although not required to support the rescission, the court noted the existence of strong evidence that the Hagans’ misrepresentations and omissions were willful.) Accordingly, the court held that the rescission was proper as a matter of law and dismissed all of the Hagans’ claims. Blue Shield Life’s parent company, California Physicians’ Service, which was named as a defendant in the suit although it did not issue the Hagans’ insurance policy, also obtained judgment in its favor.

Source: www.lifehealthdisabilityinsurancelaw.com

Barger & Wolen LLP

goes into effect in 2014 (that is if it’s repealed or defunded before then).

“There will be zero tolerance for this type of misinformation and unjustified rate increases,” Health and Human Services Secretary Kathleen Sebelius said in a letter to the insurance lobby.

“Simply stated, we will not stand idly by as insurers blame their premium hikes and increased profits on the requirement that they provide consumers with basic protections,” Sebelius said. She warned that bad actors may be

excluded from new health insurance markets that will open in 2014 under the law. They’d lose out on a big pool of customers, as many as 30 million

people nationwide.”bad actors may be excluded from new health insurance markets

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The Insurance Agents and Brokers Association of California (IABAC) aggressively defends insurance producers’ rights to operate freely and fairly in California by providing effective regulatory, legislative and legal representation, as well as protection against potential abuses by any other group, company or organization.

A Non-Profit Mutual Benefit Corporation

“Man is not free unless government is limited.”

Ronald Reagan 40th President of the United States (1981–1989)

Success quotes

13211 Garden Grove Blvd., Suite 100 - Garden Grove, CA 92843 - Tel. 1-800-998-4022 Fax. 714-467-3538, www.iabac.org

• Joe Jimenez, President• Scott Moon, Vice President• Phil Munguia- Treasurer• Robert W. Hogeboom, Esq., Legal

Counsel, Barger & Wolen LLP.

Join IABAC Today!IABAC- A Real Advocate for Our Industry

• We reserve the right to adjust dues pending a review of Department of Insurance records.

• The first year dues shall be waived for any member providing seed money to sponsor the association.

• Membership will automatically renew each year, unless member provides IABAC office with at least a two week advance written notice of cancellation. Members will be notified 30 days in advance of renewal.

• Membership rosters may be made available upon request to full members; or to associate members for a fee, unless the member opts to not be included in the member directory.

• A member may not transfer membership to another entity. In the event of a sale or change in ownership, a new membership application must be submitted.

• Membership dues payments are fully earned upon receipt by the IABAC. No short-term refunds will be provided.

• The IABAC reserves the right to refuse membership to any applicant for just cause.

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MEMBERSHIP APPLICATION

NOTES