July 2010
Kibble & Prentice, a USI Company.

Kibble & Prentice Insider

New Faces at Kibble & Prentice

In the past few weeks, we've welcomed several new sales executives to the firm. Meet Gary Patterson and Peter Pomeroy, new to our Property & Casualty team. As well, allow us to introduce Todd Miller and Mark Kaess in our Employee Benefits group. Finally, Malcolm Witter will be focusing on relationship and business development initiatives.


Property & Casualty

Red Flags Rule Update

Soon after we released the Notes from Counsel article, "Red Flags Rule" deadline for identity theft program offers opportunity to examine your company's cyber risk, letting you know about the rule's upcoming deadline, the Federal Trade Commission extended the deadline for enforcement of the rule to December 31, 2010. This extension should give you additional time to consider whether your company is impacted by the Red Flags Rule and what you can do to ensure compliance. It also offers additional time to consider other risks regarding cyber issues and how you can work with your Kibble & Prentice team to mitigate and transfer those risks. Other than the new deadline for compliance, the FTC's release, which can be found here, does not affect the substance of the article.

Updates to the Medicare Secondary Payer Statute

New Direct Data Entry Option for Liability Insurance (Including Self-Insurance), No-Fault Insurance and Workers’ Compensation. Full Details

Protecting Your Vacant Building: Reduce Risks and Become More Aware of Coverage Pitfalls

Commercial property owners face several problems due to the current economic downturn. The demand for commercial real estate of all types -- office, retail, apartment and industrial – is diminishing as businesses trim payrolls. People who lose their jobs may be forced into leaving their apartments. Retail chains see sales plummet as consumers cut spending and may be forced to close locations or even file for bankruptcy. In addition, continually rising available sublease space and a 19 percent decline in overall office leasing activity can be observed. All these factors contribute to climbing vacancy rates. Full Article (Note: article provided by Zurich)

Commercial General Liability Pollution Exclusion

Exclusion f. Pollution of the standard General Liability contract (CG 00 01 12 04) is the most lengthy and possibly the most complicated of all the 15 standard exclusions. This exclusion is frequently misunderstood by agents and brokers, underwriters, claim adjusters and contractors. Confusion about Exclusion f. Pollution could result in a contractor not understanding the true exposure of a situation. Full Article

Look Before You Leap: How Technology Companies can Anticipate and Reduce the Impact of Unexpected Overseas Events

Technology companies are generally quicker to take their operations global than companies in many other industries. Whether it's subcontracting with component suppliers in China or Ireland or hiring software programmers in India or Russia, technology companies are eager to tap into the cost benefits of using global supply chains and knowledge workers. Full Article (Note: article provided by Zurich)

Benefits Compliance Alerts

No More COBRA Subsidy

The President recently signed into law legislation that will extend jobless benefits to Americans who are out of work (H.R. 4213).

While the legislation extends certain unemployment benefits, it does not provide an additional extension of the COBRA subsidy. Thus, the COBRA subsidy is no longer available to individuals who experience an involuntary termination of employment after May 31, 2010. Individuals who were involuntarily terminated on or before May 31, 2010 may continue to pay a reduced COBRA premium for up to 15 months, assuming they remain eligible for the subsidy (i.e. they are not eligible for other group health plan coverage or Medicare). Full Article

Final Interim Regulations Released on Preventive Care

As reported earlier, effective for the first plan year that begins on or after September 23, 2010, a group health plan and a health insurance carrier must (at a minimum) provide coverage for and must not impose any cost sharing requirements on preventive items and services. This requirement does not apply to grandfathered coverage. Full Article

Mental Health Parity and Addiction Equity Act: New FAQ Creates a Safe Harbor for Benefits Provided on an Outpatient Basis

The Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) is effective for plan years beginning after October 3, 2009. Among other things, MHPAEA requires that the financial requirements (e.g., deductibles, copays) and treatment limitations (e.g., office visit limits) imposed on mental health and substance use disorder (MH/SUD) benefits are no more restrictive than the predominant requirements or limitations that apply to substantially all medical/surgical benefits. Full Article

DOL Clarifies FMLA Definition of a "Son or Daughter"

The DOL issued an Interpretation on June 22, 2010, indicating that either day-to-day care or financial support (not both) may establish an in loco parentis relationship where the employee intends to assume the responsibilities of a parent with regard to a child. Full Article

The Departments Issue Further Guidance on Health Care Reform

The Depts. of the Treasury, Labor and Health and Human Services issued final interim regulations addressing many of the new consumer protections contained in the Patient Protection and Affordable Care Act (PPACA), including the restrictions on lifetime and annual limits on "essential benefits."

The regulations are effective August 27, 2010 and generally apply to plan years beginning on or after September 23, 2010 (unless otherwise noted in this summary). Full Article

In this Issue

Property & Casualty
Benefits Compliance Alerts
Claims Resolutions
Wellness Corner
Private Client Services


Save the Date

Risk Management Seminar for Attorneys
October 27 & 28

Claims Resolutions

Coordination of Claims Between Two Insurers

A tenant's fire destroyed our client’s industrial building and since it was insured by both our client and their tenant many coverage issues and challenges had to be overcome in order to get the fullest recovery for our client. Full Article

Wellness Corner

50 No-Sweat Ways to Burn Calories

People with great bodies have a dirty little secret. Sure, they work out and eat well — but they also sneakily burn hundreds more calories than everyone else. From the outside, they don't seem to be doing anything particularly strenuous. "You wouldn't believe how many straightforward ways there are to burn calories," says Lauren Slayton, director of foodtrainers.net. "But it's easy to miss the opportunities if you're not looking for them." Full Article

Private Client Services

Managers vs. Markets

Proponents of active management believe that skilled managers can outperform the financial markets through security selection, market timing and other efforts based on prediction. While the promise of above-market returns is alluring, investors must face the reality that as a group, US-based active managers do not consistently deliver on this promise, according to research provided by Standard & Poor's. Full Article

IRS Circular 230 Disclosure: Kibble & Prentice Holding Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with Kibble & Prentice Holding Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. Also, the information contained in this brochure should not be construed as medical or legal advice and is intended for educational purposes only. Kibble & Prentice operates in the State of California under the name of Kibble & Prentice Holding Company dba Kibble & Prentice Insurance Agency (0E28835).

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