DONOVAN INSURANCE SOLUTIONS

se U n a C u o Y ws e N e c n a r Insu
Volume 4 Issue 1 January 2, 2014

At t i t u d e i s t h e K e y

by Paul Donovan

Inside this issue:

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When Vince Lombardi took over as coach for the Green Bay Packers he was not handed a winning team. In 1958 the Packers were at the bottom of the division, they lost ten out of 12 games, tied one and won one. When he addressed the players at spring training camp in June of 1959, Lomabardi was faced with a dispirited football team. According to an article in Guidepost magazine, Lombardi said, Gentlemen, we are going to have a great football team. We are going to win games. Get that! Now, how are we going to accomplish that? He continued, You are going to learn to block, run, and tackle. You are going to outplay all the teams that come up against you. Get that! Then he said, You are going to have confidence in me and enthusiasm for my system. Hereafter, I want you to think of only three things: your home, your religion and the Green Bay Packers, in that order! Let enthusiasm take hold of you beginning now! He told them, If you arent fired with enthusiasm, you will be fired, with enthusiasm! Virtually the same players as the year before went on to win seven games that year, the division title the next year and the world championship in the third year. Their renewed passion for the game produced astounding results. It is hard to be depressed when you are grateful, is a mantra I have preached in my home for years. It all comes down to your attitude. Ultimately, no one can control you but you. It comes from knowing your convictions and core beliefs. What you think about, either positive or negative, will determine how you behave. Ask yourself the following: 1. How would a renewed enthusiasm for what you do enhance the outcome? 2. How would your mood, actions and performance be altered if you knew that being unenthusiastic would get you fired? 3. If you were the owner of the organization you work for now, how would you rate your performance and effort? Sometimes the reason people are unhappy where they are, is that they havent performed up to expectations and that has snowballed into pressure. If thats the case, the first thing to change is your attitude. If you love what you do but dont like your current job, it may be time to ask why? Perhaps its your attitude that needs to change. Life is too short, either you change yourself or change your environment (perhaps you change both). 2014 is going to be filled with changes. The choice you have, is how you approach them , and realize that that alone, can absolutely affect the outcome.
Attitude is the Key Independent Contractors, What you need to know Top 10 Insurance Stories of 2013 Encouragement Chronicles Important New Year Resolutions Top 3 Healthcare changes for 1/1/14 Insurance Funnies

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Success consists of going from failure to failure without loss of enthusiasm. Winston Churchill

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INSURANCE NEWS YOU CAN USE

Independent Contractor Status

In order to meet the definition of an Independent Contractor (IC), at least four of the six following criteria must be met: 1. ICs maintain a separate business with his or her own work facility, truck, equipment, materials, or similar accommodations 2. The IC holds or has applied for a Federal Tax ID #, unless the IC is a sole proprietor who is not required to obtain a number under state or federal regulations. 3. The IC receives compensation for services rendered or work performed and such compensation is paid to a business rather than to an individual 4. The IC holds one or more bank accounts in the name of the business entity for purposes of paying business expenses or other expenses related to services rendered or work performed for compensation. 5. The IC performs work or is able to perform work for an entity in addition to or besides the employer at his or her own election without the necessity of completing an employment application or process. 6. The IC receives compensation for work or services rendered on a competitive bid basis or completion of a task or set of tasks as defined by contractual agreement, unless such contractual agreement expressly states that an employment relationship exists. The rules for non-construction LLCs changed on 7/1/13. All employers will be billed a minimum of $41,600 and a maximum $124,800 in payroll for workers compensation charges if the LLC members have not filed an exemption with the Florida Department of Financial Services. If you have any question please feel free to call us at 727-935-4858 or visit www.MyFloridaCFO.com/WC/exemption.html for filing instructions.

Accidents on big mountains happen when people's ambitions cloud their good judgment. Good climbing is about climbing with heart and with instinct, not ambition and pride. Bear Grylls Top 10 Insurance Stories of 2013
Heres a re-cap of the top 2013 Insurance related stories. 10. Boston Marathon Bombings - Two explosions rang out near the finish line of the Boston Marathon on April 15, and while the event did not result in a huge payout for property and casualty insurers, it did leave three dead and hundreds injured, and also damaged property in the vicinity. The event has led discussions over the extension of the Terrorism Risk Insurance Act. 9. In August, Josef Ackermann resigned as chairman of Zurich Insurance after the suicide of the companys CFO, Pierre Wauthier. 8. Obamacare Implementation - the rollout debacle and the multiple changes made throughout 2013 was exhausting. 7. Cyber Security - Increasing threats and increasing interest. As we grow more technologically dependent this area of concern will grow exponentially. 6. Solid Performance for the Industry - this was the best year for insurance carriers in the post-crisis era. Profits were up and forecasts are glowing. 5. Two Legends pass onJack Byrnes the genius behind the resurgence of GEICO and Firemans Fund, and Peter Lewis CEO of Progressive. Both men leave behind a wealth of experience and vision within the industry. 4. The Hurricane Season That Wasn't. - Enough said! 3. West Fertilizer Explosion - 17 people died in the Texas explosion including 7 first responders 2. NFIP Uncertainty...Again - Flood Insurance rates and our Federal government and its response to fix a national problem with rates continues. 1. The Continuing Evolution of Federal Involvement in Regulation - its a short list to name things the government does better than private sector.

VOLUME 4 ISSUE 1

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By Paul Donovan

En courag em en t Chroni cl es

Dr. Alexander Papaderos had just finished his lecture when he extended his usual ending with Are there any questions? A voice rang out, Yes, What is the meaning of life? Amidst the snickering, Dr. Papaderos said, I will answer that for you. He told of his upbringing in the midst of World War 2. His family was very poor and he found a broken mirror from a German motorcycle. He kept the biggest piece and rounded it into a circle by scraping it upon the rocks. He then played with it as a toy and became fascinated with the fact that he could redirect light into dark places. It became a game to see where he could reflect the light into the darkest inaccessible places he could find. He explained that he soon began to understand that the light was a metaphor for life. With what I have; I can reflect light into the dark places of the world and into the black places in the hearts of men, and change some things in some people. He then pulled out the little rounded mirror that he had kept since childhood and always had with him. He caught the rays from the daylight streaming in through the window and reflected them into the eyes of his audience. May 2014 allow you the opportunity to shine into someones life to make a difference.

Top New Years Resolutions

by Paul Donovan

I will stop sending texts and emails to my loved ones when they are in the same room. I will use my treadmill for something other than a place to hang my jacket. I vow to never again take a laxative and a sleeping pill on the same night. I will drive by a fitness center at least once a week. I will actually laugh out loud when I type LOL to the person I am messaging with. I will not hit reply all when intending on sending a private message. I will work harder to find time to sleep more. I will pretend I am interested in your new years resolution. I will not gain any more weight. Losing weight is such a hard goal, so I will try to stay as fat as I am now. I will write all my checks using the 2014 calendar date. I will not skip the gym today, using, I played Wii Bowling." as a work out excuse. I will keep it to myself that I have trouble with authority when I'm being interviewed. I will only eat white snow. I will stop buttering my doughnuts. I will eventually write a book on the dangers of procrastination. I will watch less T.V. in standard definition. I will start washing my hands after I use the restroom. I will start to work with neglected children (my own). I will start smoking, first get used to the patch, then eventually move up to puffing.

For many people the highlight of New Year's Eve is watching the ball drop in Times Square. Big deal. I've seen lots of balls dropped this year -- I had season tickets to the Bucs games. Paul Donovan

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Top three Healthcare changes Effective January 1, 2014

Heres a look at some of the less-known provisions coming into effect with the start of the new year. 1) Wellness programs can grow. Beginning in January, the healthcare law allows employers to tether as much as 50% of workers insurance costs to their participation in wellness programs. These can range, for example, from a reduced deductible for taking a health assessment to rewards for meeting a certain target weight or cholesterol level. Currently, the federal government limits the amount of cost-sharing that can ride on wellness programs to 20%. In 2014, that number will rise to 30% for general wellness programs and 50% for participation in programs that aim to reduce tobacco use. The goal is to give workers a financial incentive to improve their health. However, consumer advocates worry about the possibility of discrimination against less-healthy workers who are unable to meet certain targets. In response, the Labor Department issued rules requiring companies to give those whose medical conditions make it unreasonably difficult to qualify for the cost reduction an alternative means of qualifying for the reward. This approach raises new challenges for individuals and their doctors in personalizing an individuals reasonable alternative standard and documenting and monitoring their progress toward the goal, 2) A tax on health insurance kicks in. Despite their best lobbying efforts, the health insurance industry was not able to repeal an industry-wide tax that helps finance the Affordable Care Act. Health insurers who bring in more than $25 million in premium revenue annually will be subject to a new tax meant to generate $8 billion in revenue in 2014. The size of the tax will vary on an insurer-to-insurer basis, depending on how big they are (i.e., how much premium revenue they bring in). This means that, beginning this year, health insurers must report their net premiums to the Treasury Department, which administers the fee. Insurers argue that this fee will get passed on to consumers, in the form of higher premiums. 3) Medicare Advantage plans must spend 85 percent of premiums on health care. Way back in 2010, one of the first things the health-care law required was that insurers spend the vast majority 80% of subscriber premiums on actual medical costs, as opposed to profits and administrative activities. Beginning in 2014, a similar requirement applies to Medicare Advantage, where private companies provide benefits to seniors. Beginning next year, these insurance plans must spend at least 85% of premiums on health care.

"Everything is changing. People are taking their comedians seriously and the politicians as a joke." New Year Insurance

A New Year's resolution is something that goes in one Year and out the other.