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Cover Notes
November 2014

Inside This Issue
President’s Message
Thanksgiving Safety
Full Court Press
11 Computer Virus Warning
13 November Luncheon
14 SF Sheriff’s Reentry Center
15 Board & Committees Roster
Cover Notes is published monthly by the 

San Francisco Chapter of NAIW dba the 

San Francisco Insurance Professionals
Deadline for Submissions
Articles, Events, Announcements and other contributions for
Cover Notes must be received by the 15th for publication in next
month's issue. Submissions can be in a Microsoft Word (.doc),
Portable Document File (.pdf) п¬Ѓle format, or in plain text.
Submissions should be formatted for letter-sized paper in the
portrait orientation. Please note, submissions may be edited for
content, format, п¬Ѓt, style, etc. To submit an item, please email
[email protected]
Mailing Address
San Francisco Insurance Professionals
P.O. Box 190862 San Francisco, CA 94119
Cover Photo by Robert S. Donovan on Flickr
2 | November 2014
[email protected]
The San Francisco Insurance Professionals are affiliated with
NAIW International dba В International Association of Insurance
Professionals (IAIP)
President’s Message
By Cynthia Toms
Greetings, everyone!
By the time you read this message, baseball will be over.
What a tremendous season for our Giants! If you missed
our Giants game and tailgate sponsored by Enterprise
Rent A Car, you missed great fun. Not to worry, we are
planning on having another in 2015. It was great to see
our Giants win against the Padres.
Another event passed us at the beginning of the
month was our annual golf tournament. This is another
fabulous event that I highly recommend all golfers and
non-golfers to attend. We already have the date secured
for next year, October 16, 2015, so please look for the
flyer coming soon in a future Cover Notes.
I cannot believe that it is almost Thanksgiving! I
thoroughly love this holiday. Beside all the yummy
traditional dishes that my family and I make we have
another tradition. After we п¬Ѓll our plates and my father
says grace, we go around the table to say what we are
thankful for. This has emphasized to all of my family of
the import bond that we all share. It’s so hard to get all of
us together but Thanksgiving tends to do that for us. I
am very fortunate to have all of my family still here and
in the same state. Feel free to share your own traditions
with me ([email protected]). I’d love to hear them.
I also want to remind everyone as we go through
the Thanksgiving holiday of some safety tips taken from
the National Fire Prevention Association’s website:
• Stay in the kitchen when you are cooking on the
stovetop so you can keep an eye on the food.
• Stay in the home when cooking your turkey and check
on it frequently.
• Keep children away from the stove. The stove will be
hot and kids should stay 3 feet away.
• Make sure kids stay away from hot food and liquids.
The steam or splash from vegetables, gravy or coffee
could cause serious burns.
• Keep the floor clear so you don’t trip over kids, toys,
pocketbooks or bags.
• Keep knives out of the reach of children.
• Be sure electric cords from an electric knife, coffee
maker, plate warmer or mixer are not dangling off the
counter within easy reach of a child.
3 | November 2014
• Keep matches and utility lighters out of the reach of
children — up high in a locked cabinet.
• Never leave children alone in room with a lit a candle.
• Make sure your smoke alarms are working. Test them
by pushing the test button.
For more safety tips you can visit:
If you deep fry a turkey (yummy) you might want to view
their recommendations before the big day.
Enjoy your family and be safe! в–µ
In Fellowship,
Cynthia Toms
Happy Thanksgiving!
Please take a moment out of your day
to think about all our service men and
women (and their families) who cannot
spend the holiday together.
Keep up to date with the latest events
Happy Birthday to all members with November birthdays!
2nd – Volunteer Day at the Asian Art Museum – contact Annette Ing-Firmeza for details.
5th – Board Meeting at Worldwide’s Conference Room - 450 Sansome Street, 10th Floor.
15th - Regional Award submissions due to Lauri Oakden, RVP.
18th – General Lunch Meeting – Lunch and Learn with speaker: Brian Benn of Environmental Risk &
Financial Solutions at Lockton Offices. See flyer for details.
2nd – Board Meeting at Sweet & Baker Offices at 44 Second Street, SF. All members are welcome to
attend, just let Cynthia Toms know that you will be attending so you can be added to the guest list.
7th – Volunteer Day at the Asian Art Museum – contact Annette Ing-Firmeza for details.
16th – Annual Holiday Party and Networking Event – Details coming soon.
6th – Board Meeting at Sweet & Baker Offices at 44 Second Street, SF. All members are welcome to
attend, just let Cynthia Toms know that you will be attending so you can be added to the guest list.
25th – General Lunch Meeting – Location: L’Olivier Restaurant, Speaker: Shawn Edgington, Bestselling
Author and Founder of The Great American NO BULL Challenge. Topic: Cyber Bullying (oh yes and she is President and CEO of Granite Insurance Brokers and a
member of IAIP too!) (NOTE: Speaker moved from the July 2014 lunch)
3rd – Board Meeting at Sweet & Baker Offices at 44 Second Street, SF. All members are welcome to
attend, just let Cynthia Toms know that you will be attending so you can be added to the guest list.
17th – General Lunch Meeting – Details coming soon
3rd – Board Meeting at Sweet & Baker Offices at 44 Second Street, SF.
17th – General Lunch Meeting – Details coming soon
19th–21st – Region VIII Conference – “Make the Scene in 2015” hosted by the San Francisco Insurance
Professionals – Exhibitor and Sponsor opportunities available – Contact Rae Lynn Zachary for details
1st - April Fool’s Day
7th - Board Meeting at Sweet & Baker Offices at 44 Second Street, SF. All members are welcome to
attend, just let Cynthia Toms know that you will be attending so you can be added to the guest list.
15th - TAX DAY
21st - SFIP Annual Business Meeting and Board Elections - Details to follow.
For information about other local IAIP Chapter events, 

check the CA Council calendar at

4 | November 2014
Keep the Roster Up-to-Date
Please help update our Roster by advising us of any
changes/corrections. If you are a member and would like
a copy of our roster, contact Morgan Padway at
[email protected] and 415-202-5409. Please send all
corrections/updates to her. Please take special care in
completing the “Specialty Field” column by indicating
“Account Manager Construction” instead of just “Account
Manager. ”
Want to know what’s happening at
other associations?
Check out the Membership News and Events Calendar
on the CA Council website at:
From the Fellowship Committee
We want to recognize our members for their
accomplishments in their careers or personal lives and
share in their life events — happy or not. If you know of
any of our members who should be recognized
(promotion, new designation, etc.) or are having a life
event (birth, illness, death in the family), please be sure
to contact Cassandra Yu with IMU - [email protected] or
Looking for a Career in Insurance?
Check our job listings at
Check them out! If you know of a job opening, contact
Cynthia Toms at [email protected] or 925-628-6893.
Work At Home Vintage Employees
Are you an insurance professional with at least 20 years
experience and п¬Ѓnd yourself out in the job market again?
Then this company may be for you. Work At Home
Vintage Employees (wahve) Check
them out to see if they are a fit for you. 

2015 Region VIII Conference
Planning for the 2015 Region VIII Conference is in high gear! Our hotel block is now
open and committees are busy working on details for the conference events.
Come join the FUN! Join one of the committees to help organize the Welcome
Party, Awards Banquet; and President’s Lunch; or if you are more detail oriented,
help us with the Printed Program; Transportation, Tours and Registration. Let’s
show our fellow members what San Francisco has to offer! 

5 | November 2014
SFCNAIW Member Businesses
Support your fellow members’ side businesses. A list can be viewed at http:// If you see something that interests you, feel free to contact
the member during times provided (if indicated). And, if you would like to add your
name to our member business directory, please email or contact Rae Lynn Zachary.
Helpful Links
California Council of NAIW/IAIP: В (Note NEW address!)
NAIW/IAIP National:В
A beautiful 10 x 12 serene landscape,
done in acrylics by our own Tish Riley
(TVIP). Framed and ready to hang on your
2015 Region VIII Conference Fundraiser
To get your tickets, contact Rae Lynn Winner will be drawn during the 2015
6 | November 2014
Conference in San Francisco
at [email protected]
Thanksgiving is coming…
Many of us will be cooking big meals for our family and
friends, and a turkey will be the centerpiece of the meal for most of us. This is a good time to remind
everyone of how to safely handle that big bird. Instructions are taken from the Butterball site at
The Four T’s Of turkey
Food Safety
Thaw: Place unopened turkey,
breast side up, on a tray in refrigerator.
Allow at least 24 hours of thawing for
every 4 pounds of turkey.
Temperature: Always use a
meat thermometer to determine when
the turkey is fully cooked. Should
reach 180В° F in the thigh, 170В° F in the
breast and 165В° F in the center of the
Two-Hour Storage: Store
leftovers in separate containers within
two hours after cooking.
Three Days to Eat: Eat or freeze leftover turkey within 3 days.
Remember a few other tips to make sure your food is safe to eat:
Wash preparation utensils, work surfaces and hands in hot, soapy water after contact with
uncooked turkey and juices.
Do not stuff the turkey the night before.
Carve the turkey before you place in the refrigerator.
How to (and how not to)
check for doneness
Leg wiggling, juice color, even the
aroma – you’ll hear lots of ways to
check the doneness of your turkey at
Thanksgiving. But there’s only one
way to be sure: the temperature.
How? Use a meat thermometer. Insert
it close to, but not touching, the thigh
bone. If it reads 180 degrees F in the
thigh and 170 degrees F in the breast
you’re ready to serve. (If it’s stuffed,
check the center of the stuffing to make
sure it’s 165 degrees F as well.)
7 | November 2014
Incredibly easy
Want to keep your cool while
checking your turkey’s
temperature? It’s simple. Check a
few key places to know when your
turkey is done.
1. Insert a meat thermometer
between the turkey’s thigh above
the drumstick without hitting bone.
2. When the thermometer
reads 180 degrees F, you’re done!
(If it’s stuffed, check the center of
the stuffing to make sure it’s 165 degrees F as well.).
3. In addition, make sure the turkey’s temperature is at 170 degrees F in the deepest part of the
breast and 165 degrees F in the center of the stuffing.
8 | November 2014
Full Court Press
By David L. Blinn of Low, Ball & Lynch
Insurance Coverage – 

Auto Exclusion for “Nonrelative
Resident” not Permitted
Mercury Casualty Company v. Hung Chu, et al. — Court
of Appeal, Fourth Appellate District (September 24, 2014)
Many automobile policies have exclusions against
coverage for injury to other insureds, commonly
including “resident relatives” for close family
relatives who live with the named insured. This
case considered the validity of an insurer’s
purported exclusion for persons who reside with
the named insured but are not necessarily related
to the insured.
Hung Chu (“Chu”) was born in Vietnam, and
came to the United States as a student in 2006. By
2008, he was attending Orange Coast College, and
was living with his aunt and uncle. While in
Vietnam, Chu became acquainted with Tu Pham
(“Pham”), who also came to the United States to
attend school. In May or June of 2008, Pham began
sharing a room with Chu at Chu’s family’s house.
Both Chu and Pham paid rent to Chu’s aunt and
uncle to share the room. In October of 2008, Chu
was driving his 1995 Honda Accord with Pham as a
passenger, when he got in an accident with
another vehicle driven by Krystal Hoang. Pham
п¬Ѓled suit against both Chu and Hoang, recovering a
judgment of $333,300 against Chu.
Chu had been insured at the time of the
accident under an automobile liability policy issued
by Mercury Casualty Company (“Mercury”). The
policy contained what was called a “resident
exclusion,” and when read with other definitions in
the policy, purported to exclude coverage for any
claims of injury to any persons who lived in the
same dwelling as the named insured. Mercury
defended the action brought by Pham, but after
the judgment was obtained, Mercury п¬Ѓled a
9 | November 2014
declaratory relief action to confirm it owed no duty
to indemnify Chu against Pham’s claims, and for
reimbursement of its defense costs. Mercury
brought a summary judgment motion based on the
resident exclusion, and the trial court granted the
motion, holding there was no duty under the policy
to indemnify Chu with respect to Pham’s judgment.
Chu appealed.
The Court of Appeal reversed the trial court’s
decision. The Court п¬Ѓrst noted that Insurance Code
Section 11580.1 created by statute all exclusions
that were allowed in an automobile liability policy.
Exclusions not contained in that code section are
impermissible and invalid. Section 11580.1
contains an exclusion “for bodily injury to an insured
or liability for bodily injury to an insured whenever the
ultimate benefits of that indemnification accrue directly
or indirectly to the insured,” which was similar to the
language in Mercury’s policy. However, Mercury’s
policy defined an insured not just to include
relatives who reside with the named insured, but
anyone who “resides in the same dwelling as the
insured.” This would include relatives and nonrelatives alike.
The Court noted that the California Supreme
Court had allowed the resident relative exclusion in
Farmers Insurance Exchange v. Crocking (1981) 29 Cal.
3d 383. The public policy reasons behind such a
limitation were to prevent “suspect inter-family
legal actions which may not be truly adversary and
over which the insurer has little or no control.” The
Crocking court noted that under 11580.1, such an
exclusion of coverage was appropriate, and that
the legislature may reasonably have concluded
that the benefits to the public from automatically
including “family member” coverage in all
automobile liability policies was outweighed by the
“probable adverse consequences” of such a rule,
including increased premiums, increased numbers
of uninsured drivers, and the possibility of
collusion in such claims.
The Court of Appeal noted that in the 33 years
since the Crocking decision, the “resident relative”
exclusion had been the subject of judicial
interpretation over many different versions of the
exclusion, with the terms being broadly construed
to п¬Ѓnd coverage, and narrowly construed to
exclude coverage. To date, there had been no cases
interpreting an exclusion which, like Mercury’s, did
not attempt to limit the exclusion to relatives who
shared the named insured’s household, but to all
co-residents of the insured. The Court noted that
the entire decision in Crocking was based upon the
premise that the excluded person was a relative
who resides “with some permanence” with the
named insured.
The Court of Appeal held that the Crocking
court’s reasoning did not apply to non-relatives
sharing the same dwelling. The Court noted that
cohabitation can be temporary and involve
complete strangers. There was no legal basis to
assume insurers faced the same risk of fraudulent
In addition, the Court held that the ability to
limit coverage for injury to “an insured” under
section 11580.1 did not mean that an insurer could
define anyone it liked as “an insured” solely for a
basis to exclude coverage. Rather, that person
must have some coverage afforded them in some
way under the policy and must have an “insurable
interest.” A parent or child or other close family
member may have some responsibility or have
some liability if their close family member has an
accident. On the other hand, if Chu had an accident
with a third person, there was no possible way that
could affect Pham, simply because he lived in the
same home. No public policy supported such a
broad expansion of the exclusion.
Finally, the Court noted that it appeared
Mercury was naming Pham as “an insured” for the
sole purpose of excluding him from coverage for
bodily injury caused by the use of the insured
10 | November 2014
vehicle by the named insured. Following Mercury’s
argument to its conclusion, it could conceivably
exclude coverage for any members of a large
apartment complex simply because they lived in
the same building with Mercury’s insured. This
would defeat the public policy behind requiring
mandatory automobile insurance liability and
would undermine п¬Ѓnancial responsibility laws.
Summary adjudication in Mercury’s favor was
reversed, and the matter was remanded, with
instructions that the nonrelative resident exclusion
was stricken and that Mercury could not claim
Pham was “an insured.”
Bases for exclusion under an automobile liability
are expressly listed in Insurance Code section
11580.1. If they are not listed there, they are
prohibited. The resident relative exclusion is
allowed under that section, but courts will not
extend that beyond the close familial relationship
to exclude coverage for claims of persons who are
not related but live together in some way.
For a copy of the complete decision, see:
The Weekly Law Resume TM is published п¬Ѓfty-two times a year,
and is a complimentary publication of Low, Ball & Lynch,
Attorneys at Law, a Professional Corporation, with offices in
San Francisco and Monterey, California. Information regarding
this and other Weekly Law Resume TM articles is available from
Linda Meyer at (415) 981-6630, [email protected] or at
To subscribe please go to:

Computer Crypto Virus is on the Rise
Alert re-posted with permission from the Lockton IT Team
What if you lost all your computer files at home? All your documents, all your pictures, all your programs?
During the past few weeks we have seen an increase in outbreaks of the CryptoWall file-encrypting
What is it?
CryptoWall is a file-encrypting ransomware program that targets all versions of Microsoft Windows
operating systems.
What will it do to my computer?
It will secretly encrypt all of the files on your computer including pictures. Once the files have been
encrypted a message will display that contains instructions on how to access a decryption service where
you can pay a ransom to purchase a decryption program. The ransom can cost $500 USD and can go
even higher.
There is no way to unencrypt the files once they have been encrypted. By the time you see the ransom
note it is too late!
How do I keep protect myself?
Make sure you are running the latest version of your antivirus software and have applied the latest
security patches for your operating system.
Backup all files on your computer now to a separate device or CLOUD service. And do so regularly going
Be sure that you disconnect any external drives or flash drives from your computer. This is important
because this type of ransomware targets all of your drives, so if you leave a USB device attached that
data will also be at risk.
Do not open e-mail attachments from unknown sources.
Do not click on web advertisements unless you are certain of the source of the ad. The latest strain has
been reported exclusively to be delivered by way of web advertisements.
We hope you find this
message helpful in protecting
your electronic files at home.
11 | November 2014
The following flyers are brought to you by SFIP
and its sister associations. We encourage you to
participate in as many events as you are able to
attend. The strength of IAIP is in its community.
We provide many opportunities to socialize,
extend your personal networks, and communicate
with colleagues across the industry.
12 | November 2014
Join Us For An Exciting Luncheon!
Lunch and Learn with
Brian Benn
Environmental Risk & Financial Solutions
Topic: Essential Environmental Risk Strategies for Transactions, Claims
and Beyond: How to develop winning transactional strategies and avoid common
mistakes in the event of claims
Brian Benn is Principal and Co-Founder of Environmental Risk & Financial Solutions (ER&FS), an
environmental risk management and insurance consulting firm, where he helps clients negotiate and
transfer environmental exposures in transactions, and maximize recovery of environmental insurance
in the event of claims.
For over 20 years, he has specialized in environmental risk evaluations, insurance underwriting, policy
development, claims support, and development and evaluation of solutions for funding and
transferring environmental risks. Prior to starting ER&FS in 2003, he was Director, Business
Development, National Accounts, and Regional Manager at AIG Environmental from 1992 to 2003,
with prior experience at Fairfax Financial Holdings and General Reinsurance. He holds an M.B.A. from
the Ivey School of Business, London, Canada, and a B.A., Physics, from Williams College,
Massachusetts. He is a participant with the Sustainability Accounting Standards Board (SASB),
Financials / Insurance Industry Working Group, and with the Bay Area Ecosystems Climate Change
Consortium (BAECCC).
Luncheon Meeting – Make Your Reservation Today
Tuesday, November 18, 2014
11:45 am—1 pm
Lockton Offices
A lunch buffet will be available
2 Embarcadero Center, 17th Floor Boardroom
Friday, November 14th to:
Rae Lynn Zachary
[email protected]
*Vegetarian selection available if requested.
Discounted cash price: $25 for Members | $30 for Non-members
Credit card payments accepted via PayPal on our website at
13 | November 2014
Sometimes the simplest
gifts are the ones most
Located at 930 Bryant Street, the
Resource Center, which gets its
funding from private fundraising
efforts as well as local, state and
federal sources, provides women
with transitional support services
including housing assistance,
substance abuse programs,
employment referrals, healthcare,
and legal assistance. The program
also offers personal development
classes to help the women get their
lives back on track.
Since November of 2007, SFCNAIW has partnered with SF Sheriff’s Department’s Women’s
Resource Center to help supply them with toiletries and other items they are in need of to
serve the needs of their clients. We began п¬Ѓrst with collecting unopened toiletries and over
the years our donations have expanded to include clothing, books, magazines (less than 1
year old), and even toys for the children of the participants in the program. When you
travel, pick up all those hotel-provided toiletries; they are perfect for the Center. We also
accept full-sized products (the $1 stores are a great resource for these!).
Items that
are always
• Toothbrushes & toothpaste
• Dental Floss
• Hair dressing products for
African American hair
• Soaps – Bar or Liquid
• Deodorant
• Make-up
• Shampoo & Conditioner
• Lotion
• Feminine Sanitary Items
Bring your donations to any general meeting or contact Rae Lynn Zachary at
415-568-4028 or [email protected] to arrange a pick-up or drop oп¬Ђ.
14 | November 2014
Board of Directors & Committee Leaders
2014-2015 Term
Cynthia Toms
Roberta Gonzalez
Sweet and Baker
Karen Moore
Low, Ball & Lynch
Karen Ryan
Worldwide Facilities
Immediate Past President
Morgan Padway
Insurance Personnel Service
Recording Secretary
Mona Lindahl-Babcock
Lockton Insurance Brokers
Sean McCormick
Dina Zuger
Worldwide Facilities
Christina Arnote
RGL Forensics
M. Sandy Dameron
Ramona DeBernardis
Lockton Insurance Brokers
Susana Baja
GF Brown Insurance Service
Budget & Finance
President and Board Members
By-Laws & Parliament
Alvenia Scott
Confidence While Communicating
Sean McCormick
Community Service
Maria Borovaja
Fundraising & Special Events for 2015
Jackie Neal
Rae Lynn Zachary
Lockton Insurance Brokers
Lockton Insurance Brokers
Education & Legislation
Karen Moore
Low Ball & Lynch
Education Advisory
Mona Lindahl-Babcock
Roberta Gonzalez
Lockton Insurance Brokers
Sweet and Baker
Cynthia Toms
Cassandra Yu
International Marine Underwriters
Golf Tournament
Sean McCormick
May Luncheon
Karen Moore
Low Ball & Lynch
15 | November 2014
Morgan Padway
Insurance Personnel Service
Mentorship Program
Karen Ryan
Worldwide Facilities
Horizon Planning
Immediate Past President
Dina Zuger
October Industry Breakfast
Vice President
Program & Speakers
President and Vice President
Cherilyn Ignacio
Safety Programs
Bill Fowler
McDermott Costa
Technology (Website & Cover Notes)
Rae Lynn Zachary
Lockton Insurance Brokers
Worldwide Facilities
Premium Inspiration
“Success and failure. We think of them as opposites, but they're really not. They're companions -- the hero and the
sidekick.” ~ Laurence Shames
“To laugh often and much; to win the respect of intelligent people and the affection of children; to earn the appreciation
of honest critics and endure the betrayal of false friends; to appreciate beauty; to п¬Ѓnd the best in others; to leave the
world a bit better, whether by a healthy child, a garden patch or a redeemed social condition; to know even one life has
breathed easier because you have lived. This is to have succeeded.” ~ Ralph Waldo Emerson
“As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by
them.” ~ John Fitzgerald Kennedy
It was a Hole in One!
SFIP had their 10th annual Golf Tournament on October 3rd at Tilden Park in Oakland. A fun day was had by all! We
decided to start early this year, and were happy that was the case, as it was a hot day for October. Temperatures were in
the 90's by Noon! The teams battled their way through 18 holes which included a closest to the pin and separate longest
drive men's and women contests. The coveted team trophy's went to the well deserving 1st and 2nd place teams. We
had a number of sponsors this year that we want to thank. Those include hole sponsors: Aon, Lockton, Swett, and
Zurich. In addition, we would like to thank Enterprise and many others who contributed to the event with either
handouts or prizes. We thank everyone who joined us in the fun this year and look forward to your participation at next
year's tournament! Save the date on your calendar, October 16, 2015! ~ Dina Zuger, Event Chair
16 | November 2014