DONOVAN INSURANCE SOLUTIONS

se U n a C u o Y ws e N e c n a r Insu
Volume 4 Issue 3 March 1, 2014

L e s s o n s f ro m a S a i n t

by Paul Donovan

Inside this issue:

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St. Patrick was born in Britain to wealthy Christian parents near the end of the fourth century. He is believed to have died on March 17, around 460 A.D. At the age of 16, Patrick was taken prisoner by a group of Irish raiders who were attacking his familys estate. They transported him to Ireland where he spent six years in captivity. During this time, he worked as a shepherd, outdoors and away from people. Lonely and afraid, he turned to his religion for solace, becoming a devout Christian. Finally, Patrick escaped. According to his writing he heard a voice in a dream telling him it was time to leave Ireland. To do so, Patrick walked nearly 200 miles from County Mayo on the Irish coast eventually escaping back to Britain. Patrick experienced a second dream that told him to return to Ireland as a missionary. Soon after, Patrick started training to become a priest and eventually was ordained and returned to Ireland (in part because he was already familiar with the language and culture). His dual mission involved: 1. Ministering to the small number of Christians already living in Ireland and 2. Converting the native Irish to take from his life.
Lessons from a Saint Establishing a Teleworking Policy IRS Section 125 Tax Code Encouragement Chronicles Irish Humor Utility Bill Scam Insurance Headlines Top Litigation Areas for 2014

As a student of history Im constantly amazed at great leaders and pioneers of the past. Heres just a few of the lessons Life will throw the unexpected at you, how will you deal with it? Will you let circumstances define you or refine you into something greater? Will you be bitter or better?

The bigger the vision the greater the cost. What will you sacrifice to accomplish your goals? Pain nourishes courage. You cant be brave if youve only had good things happen to you. It may take a while to find it, but realize your life has a purpose. If you dont have a vision for your life, then you probably havent focused in on anything. Dont settle for adequacy, pursue your purpose with excellence. Continuous improvement doesnt mean being 100% better in any one thing, it means we strive to be 1% better in 100 things.

I firmly believe, if youre still on this earth, then you still have something to accomplish. You might be on the start of your journey or nearing the finish line. Either way, remember, most great people tend to end their race with the same enthusiasm as they started with. With a little luck, maybe your story will be told for generations too.

Be like a postage stamp. Stick to something until you get there. Josh Billings

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INSURANCE NEWS YOU CAN USE

Establishing a Teleworking Policy

Things have changed drastically since the time I entered the workforce. However, many of todays young workforce value flexibility as an important job function. Advancing technologies have made teleworking easier than ever to complete essential job functions outside the office. Teleworking can be the solution to many concerns, such as long commutes, tending to sick children, or the need to work on a special project without distraction. Employees get to experience the benefits of flexibility, fewer distractions and reduction of commuting time. Employers get to experience the potential increase in work productivity, and additional aid in recruitment and retention of employees. Keep in mind, supervising work from a distance comes with unique challenges. Therefore, establishing the right teleworking policies is imperative for successful implementation. Heres some top tips for establishing teleworking policies:

Establishing the Arrangement with clear expectations. Determine the amount of and quality of the work an employee can reasonably accomplish in a given amount of time. Always post the notices. Determine the schedule. Supervisors and managers need to be aware of and communicate when the employee is going to be working. Address Dependent Care. Employers should consider establishing a policy concerning dependent care (whether it is children or adults) while teleworking. Determining Eligibility. Not all positions lend themselves to effective teleworking. Positions that involve intensive writing, research and analysis, or telephone or computer-based tasks are often the best fit. Teleworking is not the best solution for new hires, employees on probation or those who do not meet performance expectations. Loyalty should be a factor. Dedicated Home Office. Employees need to have an established workstation that allows for the separation of work and home life. Workers Compensation concerns. Remember that unforeseeable incidents could be compensated for home-based employees. Contact your insurance broker for details. Address Safety Concerns. Some companies have the employee sign an authorization that allows the corporation to perform a site safety inspection to look for dangerous conditions that could become potential work hazards. This includes ergonomics in the workstation.

Naturally, teleworking is not for everyone nor ever business. Considering a trial period may be the best option for you as both an employer and an employee.

People seldom notice old clothes when you wear a big smile. Lee Milden IRS Section 125 Tax Code
The Internal Revenue Services Section 125 Tax Code is often misunderstood. Its typically referred to as the Section 125 Cafeteria Plans. Unfortunately, Cafeteria 125 plans are one of the most underused employee benefits for small businesses today. These plans simply allow employees to withhold a portion of their salary on a pre-tax basis to cover the cost of:

Qualifying insurance premiums Medical expenses and Dependent care expenses.

Because Section 125 Cafeteria Plan benefits are free from federal and state income tax, an employees taxable income is reduced which increases take-home pay. And because the Section 125 Cafeteria Plan reduces employee gross income for purposes of income tax, the employer also enjoys a reduction in their payroll tax liability by eliminating matching FICA taxes of 7.65%, and possibly workers compensation (depending on your state). The qualified benefits permitted to be offered in a IRS Section 125 are group- term life insurance, medical, accident, and disability benefits; group legal services; and dependent care assistance. For more information, please contact us at Donovan Insurance Solutions 727-935-4858.

May you be half an hour in heaven before the devil knows youre dead. Traditional Irish Blessing

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By Paul Donovan

En courag em en t Chroni cl es

A sick man was visiting his country doctor after a long bout of illness. He turned to his doctor as he was preparing to leave the examination room and said, Doctor, I am afraid to die, can you tell me what lies on the other side. Very quietly, the doctor said, I don't know. 'You don't know? You, are supposedly a Christian man, yet you do not know what is on the other side? The doctor was holding the handle of the door and on the other side came a sound of scratching and whining. As he opened the door, a dog sprang into the room and leaped onto the doctor with an eager show of gladness. The doctor turned to his patient and said, Did you notice my dog? The patient said, of course. The doctor continued, As a rule I have never let him in this room before, he didn't know what was inside, he knew nothing except that his master was here inside. However, when the door opened, he sprang in without fear. I know little of what is on the other side of death, but I do know one thing... I know my Master is there on the other side and that is enough.

Irish Humor

by Paul Donovan (just the messenger)

Mr. Murphy and his pregnant wife live on a farm in the distant rural regions. No running water, and no electricity, etc. One night, Mikes' wife begins to deliver the baby. The local doctor is there in attendance. "What d'ya want me to do, Doctor?" "Hold the lantern, Mikey. Here it comes!" the doctor delivers the child and holds it up for the proud father to see. "Mike, you're the proud father of a fine strapping boy." "Saints be praised, I..." Before Mike can finish the Doctor interrupts, "Wait a minute. Hold the lantern, Mikey." Soon the doctor delivers the next child. "You've a full set now, Mikey. A beautiful baby daughter." "Thanks be to..." Again the Doctor cuts in, "Hold the lantern, Mikey, Hold the lantern!" Soon the Doctor delivers a third child. The doctor holds up the baby for Mike's inspection. "Doctor," asks Mike, "Do you think it's the light that's attracting them?"

Sean was tooling along the road one fine day when the local policeman, a friend of his, pulled him over. "What's wrong, officer OToole?" Sean asked. "Well didn't ya know, Sean, that your wife fell out of the car about five miles back?" said OToole. "Ah, praise the Almighty!" he replied with relief. "I thought I'd gone deaf!" "Well, Mrs. O'Connor, so you want a divorce?" the solicitor questioned his client. "Tell me about it. Do you have a grudge?" "Oh, no," replied Mrs. O'Connor. "Shure now, we have a carport." The solicitor tried again. "Well, does the man beat you up?" "No, no," said Mrs. O'Connor, looking puzzled. "Oi'm always first out of bed." Still hopeful, the solicitor tried once again. "What I'm trying to find out are what grounds you have." "Bless ye, sor. We live in a flat -- not even a window box, let alone grounds." "Mrs. O'Connor," the solicitor said in considerable exasperation, "you need a reason that the court can consider. What is the reason for you seeking this divorce?" "Ah, well now," said the lady, "Shure it's because the man can't hold an intelligent conversation.

Paddy Murphy asked Mr. Casey for the hand of his daughter in wedlock. 'And can you support a family?' asked Mr. Casey. 'I think so,' replied Murphy. 'Well thats fine enough, there's six of us, you know,' said the future father-in-law.

Spanish singer Julio Iglesias was on television with British TV host Anne Diamond when he used the word 'manana'. Diamond asked him to explain what it meant. He said that the term means "maybe the job will be done tomorrow, maybe the next day, maybe the day after that. Perhaps next week, next month, next year. Who cares?" The host turned to Irishman Shay Brennan who was also on the show and asked him if there was an equivalent term in Irish. "No. In Ireland we don't have a word to describe that degree of urgency.", replied Brennan.

May the good saints protect you and bless you today and may troubles ignore you each step of the way Old Irish Blessing

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utility Bill Scam

Be Aware of the recent scam that seems to be targeting local businesses and residences. An individual calls the business or residence and alleges that he is from the power company (ex: Duke Energy). He states that the electric bill must be paid immediately or the electricity will be turned off. The caller asks for the businesses or individuals bank information, account number, routing number, etc. This is a scam attempting to get your banking information. If you should receive a call from a utility company making such a claim, hang up and get the phone number of your utility company from your billing statement. Call the company and verify any such information.

In the Halls of Justice the only justice is in the halls. Lenny Bruce Hot Insurance Headlines in the news
Legislation was introduced in the House that would substantively roll back the NFIP rate hikes imposed by the 2012 Biggert-Waters legislation. The flood rate-hike battle is divided more regional, rather than political lines. Republican leadership cleared the way by offering an alternative that includes; delays on all rates increases until after the current authorization for the NFIP expires 9/30/17, a maximum 15% annual cap on rate increases imposed by the 2012 law, refunds to people who already have paid large increases, a $25 annual surcharge on all NFIP primary home subscribers, and a $250 annual surcharge on all second homes and businesses. Additionally, it would repeal the reform law that calls on the FEMA to update its maps and would allow policyholders multiple options for higher deductibles and more flexible payment schedules. A vote is scheduled for mid-March.

CryptoLocker Virus - holding your computer files hostage is the new kidnapping and ransom crime. It essentially holds your computer hostage, encrypting your files and rendering them unusable until you pay a ransom. The ransomware typically installs a countdown clock that ticks backwards from 72 hours. Those who let the timer expire before paying risk losing access to their files forever. Backing up your data is a priority that many businesses and organizations have not prepared for. A federal judge gave Detroit and a group of bond insurance companies two or three weeks to settle a dispute over whether the city can treat certain bonds as unsecured debt. The outcome of the dispute could significantly affect the $3.7 trillion municipal bond market, where general obligation bonds backed by the full faith and credit pledge of cities, school districts and others has long been considered untouchable. Currently Detroit is 18 billion dollars in long-term debt.

Top Litigation areas for 2014

This seasons cyclical law suit trends has targeted the following areas:

Filing class action mergers & acquisitions (M&A) complaints in state courts. They assert state-law breach-offiduciary-duty claims, typically claiming the sale process was deficient, the proxy disclosures were inadequate or misleading, and the agreed share price was set too low. New energy construction who decides what, where and when to build? States regulate retail rates and the Federal Energy Regulatory Commission regulates wholesale rates. The two are debating this arrangement.

Concussion lawsuits and brain injuries. In August 2013, the NFL announced a $765 million settlement, which if approved, would resolve the claims of thousands of retired players. This is still the tip of the iceberg. False Advertising Litigation (usually easier & less expensive than products liability) is on the rise Trade secret fraud has become an increasingly high profile issue, resulting in The Private Right of Action Against Theft of Trade Secrets Act of 2013. It allows a civil cause of action to the existing criminal law. White collar whistleblowers (including overseas operations) are under exam. The Dodd-Frank Act gave authorization to the SEC to reward whistleblowers who provide information that leads to successful enforcement actions. The SEC increased its activity in this area and recently announced more than $14 million in an investment fraud case (the largest whistleblower payout to date).

May the road rise to meet you, may the wind be always at your back, may the sun shine warm upon your face, the rains fall soft upon your fields and until we meet again, may God hold you in the palm of His hand. Irish Blessing