Third Quarter 2005   Volume 12 Number 2

Tools, Tips and Tactics

Hot tips and cool ideas to improve efficiency and profitability

Mark Montagna, network manager, lives and breathes network security. He offers these reminders to keep your data safe and your business, well, in business!

• Pass phrases are better than passwords. If your system allows it, use them. If not, be sure your passwords are strong (include a number, a capital letter, don’t use obvious words like your own name) and change them at least monthly.

• Don’t ever give your password to anyone, even your best friend. There’s no telling when someone with access to your password might access confidential data — or speak on your behalf with, say, a nasty E-mail to the boss in your name.

• Don’t ever install peer-to-peer network software like Kazaa, Morpheus, Bear Share and Lime Wire. In the first place, these programs facilitate stealing copyrighted material. But worse, they open your network’s back door to millions of people as well as Trojan horses, spyware, malware and adware.

• Don’t use Web services that allow you to access your computer from other locations. If you can get in, so can others. If you have a network administrator, ask him or her how — and if — off-site access to your work computer can be arranged.

• If your desktop computer is not being backed-up regularly, speak with your network administrator to find out how you can secure your data. You could be at risk of losing your files if they’re not backed-up daily.

• Lock-down your computer when you leave it, even for a short while. Ask your network administrator how to do it automatically. At night, turn off your computer. Though it doesn’t hurt to leave it on, turning it off gives your computer’s brains a fresh start that will improve its speed and responsiveness. If you ignore this advice, be sure to reboot at least once a week.

Tom Cannon, manager of the Underwriting Audit Unit, Jay Hanuscin and Bill Watson, underwriting auditors, continue this ongoing series of tips to improve accuracy, efficiency, turnaround time and the bottom line:

• Easy as 1,2,3: Any policy endorsement is a legal document that changes the underlying policy. If two different “standard change endorsements” (Form S-1004) to the same policy are submitted to Penn-America with the same number, unfavorable legal interpretations and wasted processing time could result. Each endorsement, for each policy term, must have a unique number to identify it.

• Three years, three pieces: Three years’ prior-carrier loss information is critical information on all risks submitted because an insured’s claims history is a good indicator of future claims. Three pieces of information complete this important picture and can help to spot application fraud as well:
 • The name of the prior carrier and policy number;
 • The amount of the expiring premium for that policy; and
 • That prior carrier’s claims history.

• Sign on the dotted line: Every application must include the signature of the insured and the insured’s retail broker or agent. Both are crucial parts of the application when fraudulent claims are suspected, as evidence that the insured verified the accuracy of the application.

• Bigger is not always better: You must send any property-valuation increase request that exceeds either 25% of the existing property policy limit or $50,000 to a Penn-America underwriter, along with documentation to verify the reason for the increase. Be sure that the documentation is a contractor’s bill, appraisal or estimate or an inspection report, not a real estate appraisal. This is another tool to protect against arson and fraud. Please verify this information before issuing the endorsement.