DONOVAN INSURANCE SOLUTIONS

e You Can Us s rance New Insu Volume 2 Issue 5

November 1, 2012
Inside this issue:
Our Fiscal Cliff 1 2 2 2

Our fiscal cliff

by Paul Donovan

Irrespective of your political leanings, lets look at the facts that are about to affect every family in America on January 1st, 2013. The Bush-era tax rates are due to expire and lest we forget what that means, lets take a quick stroll down memory lane:

Our Fiscal Cliff continued Citizens Insurance Update 4 Commercial Auto Endorsements You Should Have Encouragement Chronicles 13 Halloween Fun Facts Thanksgiving & Insurance Our Sacred Vote Part 2

10% income tax rate jumps to 15% 25% income tax rate jumps to 28% 28% income tax rate jumps to 31% 33% income tax rate jumps to 36% 35% income tax rate jumps to 39.6% Child tax credit drops from $1,000 to $500

$55 Billion will be cut from Domestic Programs $55 Billion will be cut from Military Defense Employees Social Security payroll tax moves up from 4.2% to 6.2% Top rate on Estate Tax jumps from 35% to 55% Dividends will be taxed at ordinary income tax rates

3 3 4

The return of the Marriage Penalty Tax Top rate on Capital Gains jumps from 15% to 20% Extended Unemployment benefits end The Alternative Minimum Tax will affect millions So, whats the problem, whos to blame and how do we fix this? The problem is a climbing $16 TRILLION dollar debt crisis, the blame rests on the shoulders of all of our elected officials and the solution is not that complicated. I believe There are at least three keys to unlocking the answers. First, we need true leaders. Leaders that look at problems as opportunities rather than challenges to avoid and that care less about re-election and more about resolving the issues.

Second, we need to stop demonizing classes of people. Our founding fathers broke ties with mother England and evoked the Classless Society. No longer would authority be granted through inherited birthright. No longer would we put our trust in a royal hierarchy. Distinctions of wealth, education, and social network would be determined by individual achievement which would assure each person, freedom, liberty and justice. This new opportunity created wave after wave of migration for those that wanted to trust in a better way of life. This belief transcends our multi-ethnic lines and allows each of us the Pursuit of Happiness. Our history of healthy individualism includes the trust we have in our government to not interfere with the legal pursuit of our choice. Every American has the freedom
Continued on Page 2

Why does a slight tax increase cost you $200 and a substantial tax cut save you .30 cents? Peg Bracken

PAGE 2

INSURANCE NEWS YOU CAN USE

to succeed or fail based on the right amount of determination, persistence, ingenuity and enthusiasm. Our forefathers knew that a level playing field meant everyone should have the same opportunity. It does NOT mean that unequal effort should produce equal results. Thats one of the truly magnificent things about our country. Lastly, this article started with fiscal truths that will come to fruition at the end of this year. The freedoms we cherish are greatly threatened when the majority of our culture expects government assistance in some form or another. I am not referring to the truly needy people that exist in this country. However, I am astonished at the lack of shame that accompanies the prevailing attitude that comes in an era of, government handout expectation. Having just celebrated Halloween, I think its ironic that the scariest thing I can imagine is leadership without character, business without ethics and science without human valuesin short, freedom without virtue. With so many competing world views, I think we need to get back to our foundations of faith, family and free enterprise. Before we start tearing down all of our social fences in the name of progress, we should at least remember why those fences were put up in the first place. Lets go back to our roots, lets reinstall honor and virtue back into our families and communities. Lets demand accountability and lets be prepared to fall on our swords for truth. I am grateful for those that are willing to serve the greater good and I continue to believe in this great nation of ours. May God continue to Bless America!

"There is only one other lesson that success should teach us: Be as amazed by your own success as your friends are. Harvey Mackay 4 Commercial Auto Endorsements To Consider
BY Paul Donovan

1) Employees as Insureds (CA 99 33) - Covering hired and non-owned insureds for employees 2) Fellow Employee Coverage (CA 20 55) - in conjunction with Work Comp (WC is not required on many small business) 3) Auto Loan/Lease Gap Coverage (CA 20 71) - pays the difference between amount owed and total loss 4) Rental Reimbursement (CA 99 23) - coverage should be for similar type use vehicle To find out why these endorsements are so important, please feel free to contact us.

Citizens Approves another round of takeout companies

The following graph marks the latest round of approved Citizens Insurance takeout insurance companies. As of September 2012, approximately 84,000+ policies have been removed from the take-out process. Citizens has approved a controversial plan to loan its surplus to insurers that are willing to assume its policies. Citizens offers a 20-year low interest loans to insurers if they provide the same coverage at the same rate, upon assumption. The perceived problem with this strategy is that Citizens is widely known to be very underpriced. If you are currently with Citizens, chances are you will receive a future notice about transferring your insurance program to a take-out company on the renewal. Please consult with your insurance professional to determine the best approach towards obtaining the best coverage for the costs.
We can be reached at 10 N. Pinellas Ave Tarpon Springs, FL 34689 727-935-4858 (Office) 877-226-9304 (Fax) 727-656-5371 (cell)

The sole purpose of my middle name was so I knew when I was in trouble. Paul Donovan

VOLUME 2 ISSUE 5

PAGE 3
By Paul Donovan

En courag em en t Chroni cl es

An aspiring junior executive was assigned a major project that could enhance her career. At night she tossed and turned worrying about getting the final report completed on time. Her husband, who had been kept awake, became annoyed with the sleepless night and asked his wife what was worrying her so much. She said, My entire future rests on successfully completing this report by noon tomorrow and theres no way Im going to get it done. Her husband got out of bed, went to the phone and called her boss. He said, My wife is a fantastic employee who deserves any promotion you might consider her for. However, theres no way my wife is going to have this report done by noon tomorrow. Good night. His wife said, What do you think youre doing? He said, You have a report due at noon tomorrow. It is not going to be done so I let your boss know, and now she can worry about it.

1 3 H A L LOW E E N FAC T S

via the mind of Paul Donovan

1. The movie Halloween (1978) was on such a tight budget, they had to use the cheapest mask they could find for the character Michael Meyers, which turned out to be a William Shatner Star Trek mask. 2. Ireland is typically believed to be the birthplace of Halloween. (no doubt, alcohol was involved) 3. The largest pumpkin ever (1993) measured & weighed in at 836 lb. (that = 6,688,000 M&Ms) 4. According to tradition, if a person wears his or her clothes inside out and then walks backwards on Halloween, he or she will see a witch at midnight. (strangely, this occurs more often while also traveling in front of your in-laws house) 5. Halloween is the second highest grossing commercial holiday after Christmas. (Take that, Easter Bunny!) 6. Fifty percent of kids prefer to receive chocolate candy for Halloween, compared with 24% who prefer nonchocolate candy and 10% who preferred gum. (any bookies want to take 0% on fruit?) 7. According to Irish legend, Jack OLanterns are named after a stingy man named Jack who, because he tricked the devil several times, was forbidden entrance into both heaven and hell. He was condemned to wander the Earth, waving his lantern to lead people away from their paths (also the origin of our political convention system as well) 8. The owl is a popular Halloween image. In Medieval Europe, owls were thought to be witches, and to hear an owl's call meant someone was about to die. (apparently, Bobby Valentine was born under the symbol of the Owl) 9. An intense and persistent fear of Halloween is called Samhainophobia. (which is weird because my good buddy Samuel Hain is afraid of Valentines Day)
Halloween has variously been called All Hallows Eve, Lamswool, Snap-Apple Night, Samhaim, Summers End,

and Witches Night. (Alternatively: November 1st Narcolepsy, Hypernight and Diabetes Day)
Black and orange are the colors associated with Halloween, because black is the color associated with death and

darkness, and orange is the color associated with the autumn harvest. (Cincinnati Bengals have complained)
Both Salem, Massachusetts, and Anoka, Minnesota, are the self-proclaimed Halloween capitals of the world.

(Ironically, only 13 people care, coincidence?)

Scottish girls believed they could see images of their future husband if they hung wet sheets in front of the fire on

Halloween. Other girls believed they would see their boyfriends faces if they looked into mirrors while walking downstairs at midnight on Halloween. (as silly as trying to extinguish St. Elmos fire with a wet sheet)

The punch line of Halloween Facts #13 was only slightly clever to the author, he apologizes. He thinks clever is something to cut meet with. Furthermore, he realizes a November issue shouldnt be late with Thanksgiving facts. Paul Donovan

Thanksgiving & Insurance

by Paul Donovan

Originally we celebrated the national holiday of Thanksgiving to commemorate the blessings we have experienced as a country. Today we think of parades, football, family, food and insurance. Yes, I said, insurance. Lets briefly discuss the two top opportunities in insurance during this holiday season.

Unfortunately, many people will attempt to travel and visit family and relatives without seriously considering purchasing travel insurance. Travel insurance can protect a persons financial investment in a vacation, give them medical coverage while out of the country, as well as protect them in any unexpected costly or inconvenient bumps that can happen along the way. Complicated or expensive travel plans should always include, lost, stolen or damaged baggage coverage as well as travel cancellation and/or interruption coverage options.

According to a popular insurance journal, more cooking fires occur on Thanksgiving than on any other day of the year. One of the top culprits belongs to the increasing popularity of turkey frying. There has been a steady increase of fryer related fires, damages and injuries. Some people can recollect a bad experience over a holiday. However, given the choice of moist turkey or burned down home, most people prefer saving the home.

A last note: This year we have many things to be thankful for. Donovan Insurance Solutions is celebrating. After only 23 months, we have become a full lines independent agency offering P&C for commercial and personal lines. We have also added a benefits division to our agency offering both individual and group benefits. We would not have our success without YOU! Thank you. Truly, it is hard to be depressed when you are grateful.

"Thanksgiving is an emotional holiday. People travel thousands of miles to be with people they only see once a year. And then discover once a year is way too often." Johnny Carson Our Sacred Vote Part 2
By Paul Donovan

This Tuesday, November 6, 2012 marks our nations 57th quadrennial presidential election! Every elected official is entrusted to influence our legislation. This is true at the national, state and local levels. I am convinced that it is as much a right, privilege and an obligation for legal registered voters to vote. Regardless of your political persuasion, we must exercise our responsibility to elect our leaders. It is ingrained in our culture and part of our heritage to do this on a regular basis. It is one of the key components to safeguarding and preserving our liberty and freedom as Americans. The Florida November ballot is extremely long this year. Therefore, expect longer than usual lines at the polls and do your homework with regards to the issues. There are no Federal voting leave requirements for private sector employers HOWEVER, in some cases state laws and city/municipality ordinances have jumped in to fill the gap. From the book 50 Laws for 50 States , employers are prohibited from discharging or threatening to discharge employees who vote in state or local elections. The same prohibitions apply to prevent employers from discharging or threatening to discharge employees who refuse to vote. Some local ordinances give employees time off without pay to vote on an election day. Citation: FSA 104.081. If you have questions regarding your local ordinances, give your local chamber of commerce or the city / municipality offices a call or check their website. If you already have a voting leave policy in place, it can always be more generous than whats required by law, but should never be less than whats required. We all understand that the easy thing to do is to succumb to apathy and ignore the process. When we do the right thing, (the hard thing) we maintain a practice that was bought and paid for with the blood of patriots. This may seem a trifle dramatic but Thomas Jeffersons point is clear. Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. Please make an effort to go out and VOTE!