12/11/15 Advice From the Experts
Posted by John Marr
It comes as no surprise to the membership of the Portland Rotary Club that we are rich in business talent with years of experience. Consequently, when, Immediate Past President Kris Rosado came up with the idea of creating a program by tapping this asset, it was immediately embraced. The greatest challenge that Kris faced was how to decide what professions to select. He thought about what is going to touch each member of the club. He had many who offered to speak and everyone would be interesting, but he was able to winnow it down to four and give each a 5-minute block of time to tell the club what they did and what club members should think about as members of the community of commerce.
The first speaker was Past President John Marr, ever challenged by the clock, to discuss the elements of an insurance claim and what to expect and what to do when adversity strikes. John began by describing the claim service as the ultimate product of the insurance contract. He explained that there is a difference to be found in the personal lines policies, such as home owners and auto, and the commercial policies that apply to business. However, there is a great deal of cross over, so John decided to concentrate on his particular area of expertise, the Workers’ Compensation (WC) system and the claims business people will face. He told the group that WC was the first “no fault insurance” in the country. In order for a claim to be covered and in need of being paid is, relatively simple, a claimant need only be an employee who gets hurt doing their job. A two-pronged test is applied to determine what will be covered. It has to arise out of and in the course of employment. The threshold is low and the Hearing Officers of the Workers’ Compensation Board are the judges who determine who will be paid. He pointed out that WC is state specific and it is important to go over the scope of your coverage with your agent. The last bit of advice was to give immediate notice to your carrier and record the details, consider using your cell phone to photograph the loss and the job being performed.
Our next specialist was Jerry Angier, a Charter Life Underwriter specializing in life, disability and long-term care insurance coverage. Jerry began by reading the pledge a CLU takes and the importance of education to keep up with the multitude of new products that complement the standard products as our world and national demographics change. Of course we all have a familiarity with life insurance and the need to protect our families if one suffers a premature demise, and the same is likely true with disability insurance coverage. These insurances are now supplemented with “Long Term Care” and “Assisted Living” coverage to help those of us who will continue to live on in years after we retire and may not be able to take care of ourselves in our homes......when we reach our eighties, nineties and even a hundred years old. There are special policies for each of these situations and Jerry pointed out that a month of nursing home care is currently about $9,500 – $11,000, and assisted living is in the area $5,000 to $7,000. Buying protection for those costs are a challenge for the individual and the need for an expert to assist was well presented by Mr. Angier.
Paul Tully was the next specialist to the podium and joked that to follow Jerry, he might have been better off talking about his former occupation, as an undertaker. But Paul is now an expert in the field of Real Estate. With a show of hands, he demonstrated how almost everyone in the room has used the services of a realtor to buy or sell a home. He discussed the difference between agents, brokers and assistants and advised that the buyer know who, with what credentials, are representing them. Paul went into a David Letterman type of ten things you should consider or know when involved in a real estate transaction. The going commissions are 5 to 6% for the common transaction. The benefits of a home inspection were discussed, as well as the importance of having the right purchase and sale agreement to communicate your expectations and protect the deal. Paul mentioned that many people are looking at the “sold by owner” option that is available, but they only work in about 5% of the cases and he reminded us that the value of the house is set by the marketplace, not by the wishes of the seller and buyer. Consequently, having a knowledgeable agent who knows the market and can communicate values to you in a manner you understand is critical.
Our next specialist, heavy in credentials and experience was Ron Bennett. Ron helped the audience understand that a CPA is not some simple bookkeeper who fills in tax forms. In the current world of voluminous tax codes, confounded by loads of regulation, the CPA has two extra years of college training and they have to undergo excruciating testing to acquire the credentials and experience needed to protect businesses and individuals. He reminded us that the "Big Eight" has now become the “Final Four,” as consolidation is a way of gaining both talent and accounts. However, Ron pointed out that the local firms continue to survive and thrive, despite the big companies crowding the area. Bennett discussed the huge help that a good CPA firm, with a team of specialists, can bring to a new business or the purchase of a business. The importance of the protection that audited financials can bring to a commercial business transaction was emphasized.
The concluding presentation, batting clean-up, was Structural Engineer, Jack Carr. Jack is the principal of Criterium, a local firm, but Jack’s engineering practice brings him nationwide to give buyers assurance that the buildings they are buying are what they should be. It would be simple to say that Jack is focusing on home inspections, but the multitude of the homes he and the firm look at are far more than the typical private living place. Be that as it may, it's going to be someone’s home and they want the comfort of knowing that their money is being well spent and that they are getting what is being sold and that the façade is supported by the proper interior structure. Every new home buyer wants the “perfect home” according to Jack and the agent wants them to have it. However, perfection is tough to find and some tough decisions have to be made. Especially in a state like Maine where the caveat “buyer beware” is very much in play. Consequently, finding someone like Jack who knows how to go through a property from basement foundation to the roof and everything inside is critical. To lighten the presentation Jack got into some “war stories” and told of the Zen building in Brooklyn with the private room hidden within the walls that was the home to some less-than-wholesome escapades by the seller and may never had been known by the buyer had Jack not asked the right, very blunt, questions.
To say the least, the club got a great bang for the cost of lunch on this day. They had 5 experts giving them advice that could help them in life. It once again proved that being a member of Portland Rotary was a learning experience while surrounded by friends.
(Photo: The Fab-Five + 1 - PP Kris Rosado, Paul Tully, Ron Bennett, PP John Marr, Jerry Angier, and PP Jack Carr.)