Intern Insights: From Pencil Pusher to Blogger

With August just days away, I’d like to take this opportunity to change gears reflect on the past two months I spent working at Murray & MacDonald. I have taken much away from projects, meetings, and simply socializing with co-workers and with a month left I don’t expect that to stop.

I never expected to be a blogger and it was certainly a shock to blog as much as I have thus far. At Bentley, I’m a Corporate Finance and Accounting major. My specialty is crunching numbers, using ratios, and composing journal entries for everything from depreciation to gains and losses on equity. From the get-go, I was responsible for one blog post per week, the one I’m writing now. “Intern Insights” was the title delegated to my series of blog posts, considering how insightful I am (wink wink). As the summer progressed, I was handed more and more blogging responsibility, writing three posts per week on average. Topics range from insurance tips, discounts customers might not know about, current events, and my insightful, witty observations. To date, I have written 25 blog posts. That’s approximately 25 more than I wrote in my 20 years on this Earth prior to joining Murray & MacDonald.

Marketing is another area my skills aren't vested in. To reiterate, I’m a Corporate Finance and Accounting major. To date, I have taken one course in marketing and the extent of my marketing knowledge are the four P’s: Product, Price, Place, and Promotion. Fortunately, I don’t play as big a role in marketing as I have in blogging and social media, though those are forms of promotion as well. What I have been able to offer the agency is another set of ears and a different perspective, adding tidbits here and there to discussions and affecting the decisions we choose to make. I like to think that as a 20 year-old college student, I can offer the perspective my peers and I have when it comes to insurance, which is invaluable information to an industry. I might not be a marketing genius, I would not bet on myself to generate thousands in new business, but it has been an excellent learning experience to sit in and listen to the agency’s approach to promotion and target markets.

I’m not trying to toot my own horn, but the financial department may be the place I have had the most tangible effect. To say that our accountant owes me a lot of ice cream would be a drastic understatement. If I were to put a number to it, I’d say I should have three gallons of ice cream coming my way before the summer is up. I do not aspire to be an auditor, but most of my tasks have required some form of doing so. Whether it be reconciling accounts and correcting mistakes, auditing commission statements, or even looking at cash flow statements I have been able to utilize the skills that two years of painstaking accounting and finance schooling have given me. Working at the agency has given me a snapshot of what life might be like post-graduation. It is promising to find that I enjoy most of the tasks I have been given, provided they are intellectually stimulating. Knowing my schooling is paying off and I enjoy the field I’m studying are two important outcomes for me.



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Not Your Average Claim

Working in the insurance industry, you seem some truly whacky, counter-intuitive claims, cases, and court rulings. RoughNotes magazine and Insurance Journal constantly publish claims and court settlements far from norm. Yesterday, an article popped up on Insurance Journal’s website about a man who killed his wife, but was awarded the money from her life insurance policy. In the insurance industry, you never know what comes next! In the June 2012 issue of RoughNotes Magazine, they published a story about an insurance claim involving two hunters hoisting a portable toilet onto a hunting stand in a tree. One hunter fell from the stand and a lawsuit followed.

The Tennessee Court of Appeals affirmed a lower court’s decision to grant Dale Larkin the life insurance payout he was to receive when his wife passed away. The {only} problem: he killed her! His wife, Teresa Larkin, was found in her bathtub in 2003, but Dale Larkin was never suspected or convicted of taking her life. Tia Gentry, Teresa Larkin’s daughter, filed a lawsuit to prevent Dale Larkin from collecting the entirety of proceeds of her mother’s life insurance policy, because she suspected he killed her mother. In 2006, they reached a settlement in which the proceeds were split $500,000 to Gentry and $203,000 to Larkin. In 2009, Larkin’s body was exhumed per the suspicions of the Johnson City Police Department. They found she suffered numerous injuries and broken bones before she drowned. In February 2011, Larkin was convicted of murder and is serving a life sentence.

In the wake of the sentence, Gentry filed a lawsuit against Larkin to collect on the life insurance policies, siting a Tennessee law “slayer’s statute”. This law keeps people convicted of murder from inheriting property from the victim. She alleged that Larkin had swayed her to believe he was innocent in her mother’s death. The appellate court ruled that Gentry had entered into a legally binding agreement with Larkin, and regardless of being guilty or innocent, he was allowed to collect on the life policy. The court was visibly reluctant to make such a ruling, with the appellate judge manifesting that he was “this court is not happy with the results of our decision”.

In August 2007, two hunters were hoisting a portable toilet onto a hunting stand approximately 20 feet in the air. One was in the stand and the other was on the ground, using his truck to hoist the toilet in a pulley system. During the process, the hunter in the stand, Martin Hays, fell from the stand and sustained moderate injuries. He filed a suit against the driver, James Buckbee, for motor vehicle negligence and excessive use of force in hoisting the toilet. Buckbee’s insurance company, Farm Bureau, filed an action with the court to determine its obligation to defend Buckbee in the case. Farm Bureau was relinquished of the obligation to defend Buckbee under the exclusion stating that claims pertaining to bodily injury due to the use of a motor vehicle were not covered under his homeowner's policy {note: When a motor vehicle is involved in a bodily injury case, the auto policy would be expected to pick up the bodily injury claim, because bodily injury due to a motor vehicle is excluded on the standard homeowner policy}. Hays appealed the court’s decision.

Hays stated in the appeal that Buckbee’s motor vehicle was being used as an external power source {When a motor vehicle is used as an external power source, the only way to power something, property damage and bodily injury is not excluded on a standard homeowner policy} thus it was the insurer’s responsibility to cover the damages. Hays originally claimed his injuries were a result of the use of Buckbee’s truck as motor vehicle, thus Hays could not reverse his claim that Buckbee’s truck was not in use at the time. The Court of Appeals affirmed the lower court’s decision that relinquished liability from Buckbee’s insurer.

Articles Courtesy of RoughNotes and Insurance Journal!

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Traveler's Insurance Disaster Preparedness for Small Businesses

While natural disasters can be devastating for people's homes and vehicles, Travelers also understands the importance of protecting and preserving small businesses. Small business makes the economy tick, keeps people employed and fuels the economy through consumption spending. To keep small businesses afloat, both figuratively and literally, during and after natural disasters, Travelers offers business owners an almanac of tips to prepare and recover. 

For businesses, a hurricane or tropical storm can mean days without power, the inability to service customers, and ultimately the loss of profits. Damage can also cause unforeseen expenses that can momentarily take the legs out from under a business. To help businesses prepare for disaster, or mitigate risk, Travelers Risk Control professionals offer a comprehensive library of tips for businesses of any size. Small businesses can be left especially susceptible to disaster, so Travelers offers small business owners Small Business Safety tips through the Risk Control Center. Either before or immediately after an extreme event, if you are a client of Travelers, they will inform you of any restrictions or guidelines pertinent to your policy that will affect recovery from a natural disaster.

Murray & MacDonald Insurance strives to assist clients with risk mitigation techniques and we're here to help you recover if you suffer a loss from a natural distaster. Learn how Travelers responds to disasters promptly here! You can also see StormStories from victims of the F-5 tornadoes that tore through the South in 2011 and how Travelers has impacted the response. It is encouraging to know that companies like Travelers are taking the initiative to educate their clients. 


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Intern Insights: Insurance Buzz

There has been a lot to talk about in the insurance industry over the course of the last few weeks, from the introduction of a Medicare Tax per the ACA, the Mass Chamber Health Co-op, to Google facing a huge fine from the Federal Trade Commission because of a corporate liability lawsuit. When the average consumer thinks about insurance, their mind most likely defaults to auto and home, but the scope of insurance extends far beyond just these. 

In Google’s case, they could have been more prepared for such a lawsuit had they taken a different approach their corporate liability risk management. Now Google is facing the largest fine ever handed down by the FTC. Google violated the privacy rights of its users and circumvented privacy settings to track user web-searches as a means of target marketing. Whether it was intentional or not, Google could have been better prepared to mitigate this risk. Now they face a $22.5 million fine that can be eliminated by preventative action. Fortunately, Google carries $47.62 billion in cash on their balance sheet, making $22.5 million look like pocket change.

Per the Patient Protection and Affordable Care Act, there will now be a 3.8% tax levied on investment income for individuals whose adjusted gross income exceeds $200,000; $250,000 for couples filing jointly. They will be taxed on the amount of investment income that causes them to exceed this barrier. The tax is applicable to interest income, dividends, rent, annuities, royalties, income generated from passive nonbusiness activities, capital gains, and interest in a partnership or S-Corporation. Without offering any political basis, to avoid digging my own grave, such a tax could generate some market instability. Investors who might take a significant hit per this tax could sell their securities prior to the law’s January 1^st effective date. It could also cause some investors to cash out of businesses or partnerships to avoid taxation. For most, though, there are not many other places to put your money and see the same returns.

Recently, The Massachusetts Association of Chamber of Commerce Executives voted to implement a Health Co-op with Harvard Pilgrim, Fallon, and Health New England to give small business owners a break from high healthcare costs. Businesses with 1 to 50 employees that work a minimum of 30 hours a week can engage in the Co-op, so long as they are a member of a Mass Chamber of Commerce or other business associations. The Health Co-op slashes rates by 3% for Harvard and Fallon and 5% for Health New England. The vitality of small businesses is essential to the economic stability of Massachusetts. Households keep the economy flowing and cutting costs of healthcare could indirectly mean higher wages or more disposable income for these households.

Each week, I try to make an observation of aspects of working in an office that do not pertain to my tasks at hand, whether they be financials, marketing, etc. Last week, I talked about a girl at Dunkin Donuts that knows my order before I even walk in. This past weekend, I was at the beach with my family and my dad and I decided to go get an ice cream. We got to the snack-shack, and the woman working there guessed my dad's order before he could say a word. She knows I have three younger brothers and that one is a lifeguard for the public beaches. She knows my brothers' names and what they usually order as well. It is not every day that you stumble upon a business that operates that way. Actually, businesses like that are few and far between. I believe that is what separates Murray & MacDonald from other agencies. We do not see our customers every day, week, or month (depending on how well you drive), but we still develop personal relationships with clients. I see it every day: customers come in with a simple task and end up talking to associates for a while, just having friendly conversation. We are not a Fortune 500 company, we are not traded on the NYSE, and we do not have dozens of locations. Customers come to Murray & MacDonald to be treated well, have even the most minute problems worked out, and walk away with a feeling that other agencies simply cannot deliver. 

Medicare Tax: Its Effect on Investment Income

The scope of the Patient Protection and Affordable Care Act (PPACA) has implications beyond individual health care and insurance. To increase Medicare funding, high net worth individuals will see an increase in taxes on net investment income. The tax will take effect on non-business income from dividends, interest, annuities, royalties, rents, and capital gains. The levied tax will be 3.8% on the amount of investment income that causes an individual’s net income to exceed $200,000 (or $250,000 for joint-filers).

While the Medicare Tax seems straightforward, it is highly complex in that its definition of investment income is broad. The tax applies directly to nonbusiness interest, dividends, annuities, royalties, and rents. Nonbusiness interest includes but is not limited to CDs (certificate of deposit) and corporate bonds. A certificate of deposit is issued by a bank and entitles the bearer to a fixed interest rate on the amount of the note, with a maturity date of up to five years. The bearer of the CD will earn interest income depending on the compounding periods of interest. For example, if you purchased a $5,000 CD with a stated rate of 10% annually and one year to maturity, you would earn $500 dollars taxable interest and the CD would be worth $5,500. Corporate bonds are issued with a future value of $1,000 and interest is accrued based on the present value of the bond. If the purchaser of the bond buys it at a discount, less than the $1,000 par value, they are taxed on the interest income earned until the bonds maturity and the issuer repays the bond at par value. If you purchase a corporate bond at $900, you will earn interest income of $100 at the bond’s maturity and you will be taxed 3.8% per the PPACA.

Dividends, rent, and capital gains are easier to grasp. Depending on the corporation, companies will distribute net income on a per share basis as dividends to shareholders. If you own stock in the company, and that company issues dividends, you are taxed on the dividend income. Rent refers to income generated from real estate that you own and rent to others. The monthly fee that they pay you to live on your property is cumulatively taxed at the year-end. Capital gains arise from the sale of an asset at market value, higher than the purchase price for which you bought it. For instance, if you purchased a single share of stock in Apple (AAPL) at $22.00 following its Initial Public Offering, and you sold that stock today at $604.43, you would be taxed on the capital gains of $582.43 (If you purchased a few thousand shares you would be a millionaire!).

For investors in partnerships and S-Corporations, the Medicare Tax affects their percentage ownership of the company upon disposition or sale. For example, if you invested $10,000,000 in an S-Corp and retained 20% ownership, the company would have a net worth of $50,000,000. Down the road, if the company was sold at a fair market price of $100,000,000, or you sold your ownership of the company and its appreciated net worth was $100,000,000, you would realize $20,000,000 in capital gains ($10,000,000 in excess of your original investment).  The 3.8% Medicare Tax is to be levied on the $10,000,000 in capital gains you receive through the sale of your ownership.   

Fortunately, the Medicare Tax does not extend to all of us. Individuals whose net income, adjusted to include the above non-business income, exceed $200,000 or couples whom exceed $250,000 will see the effects of the tax. The aim of the tax is to further fund Medicare, but it could spur a certain degree of market volatility. Investors might look to sell their capital assets before the tax takes affect an incur only the standard  income tax. 

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Chamber Health Co-op: MUST READ

On June 25, 2012, the Massachusetts Association of Chamber of Commerce Executives implemented the Chamber Health Co-op for small businesses to help reduce the costs of health care. The Chamber Health Co-op creates a group-purchasing program for small businesses with 1 to 50 employees, with the participating insurance providers offering substantial discounts. Small businesses that are members of more than 60 Chambers of Commerce and other associations are eligible to enroll in the Co-op. The Cape Cod Canal Region Chamber is the first Chamber of Commerce to offer the Health Co-op to its members.

Fallon Community Health Plan, Harvard Pilgrim Health Care, and Health New England are the participating health care providers in the Health Co-op. Fallon Community and Harvard Pilgrim service primarily businesses located in Eastern and Central Massachusetts, both offering 3% discounts off a company’s premium. Fallon offers 12 different plans to meet the needs of businesses, their employees, and families. The Co-op membership fee through Fallon is $5 per month per single subscriber, $10 per month per couple, $9 per month per single plus child, or $15 per month per family. Harvard Pilgrim offers 11 different health care plans and charges a flat rate of $20 per month as a Co-op membership fee. 

The Co-op also assists individuals and families in leading healthy lives through wellness programs that can potentially bring premiums down further. Wellness programs offer policy holders personal health coaches to manage exercise and nutrition. The programs also integrate biometric screenings to measure blood pressure, cholesterol levels, triglycerides, blood glucose, among other factors. These screenings can be used to raise health awareness and identify employees that might need additional aid from a health coach, ultimately reducing the cost of healthcare to the employer. 

Small businesses make up a 99% of all the enterprises in the country and employ 52% of all US workers. While this statistic accounts for businesses with 51-500 employees as well, ensuring the vitality of these small businesses keeps millions of Americans employed while providing them with adequate health care. Any small business with a maximum of 50 employees that work 30 or more hours per week can enroll in the Health Co-op. Rising health care costs, in the face of a sluggish economic recovery, can significantly impede the growth and development of the state’s small businesses. Reducing the cost of health care is simply one means of allowing small businesses to flourish. 

Travelers Insurance Disaster Preparedness

The beginning of summer brings potentially hazardous weather as a six month long windstorm season begins. People living and operating businesses in New England are presented with the risk of storms disrupting daily life. It is possible that we will see a tropical storm or hurricane before December; preparing your home or business for the potential risks faced should be a top priority. While it might seem medial or even cumbersome to prepare for windstorms that might not cause significant damage, weather is erratic and can bring about storms that could damage your home and impede your business' profitability.

Travelers Insurance offers a variety of easily-accessible, free tips to help you prepare for disaster. They added a "Prepare & Prevent" section on their website (link here!) that contains a variety of tips for customers ranging from seasonal home-maintenance to windstorm and hurricane preparedness. The site has videos and articles tailored specifically for customers highlighting common weather hazards, ways to combat these hazards, myths about storms and storm prevention, among others. Ten minutes of reading, a little-elbow grease, and quick thinking could save you thousands in damage and keep you and your family safe. You can't afford to take shortcuts in lieu of your family's safety. Take a quick look at their tips to ensure you're up to speed.



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Intern Insights: The Reality of the Corporate World

If anyone picked this week to take off from work, you really knocked the ball out of the park. Eighty's and sunny all week long with low humidity and hardly any clouds, you simply can't beat it.

While lots of people were on the beach, we were grinding here at Murray & MacDonald per usual. At the beginning of the week, I was given the task of contacting a few giant petroleum corporations to confirm that they received a fax we had sent them the previous week. I expected to make a few phone calls and my job would done, but I was wrong.

I called one company only to find an automated answering service that did not serve any of my needs. I called another and was directed to my contact's voice-mail. I called yet another and was directed to two different voice-mails. I called 8 companies and was answered by a real, live human-being twice. Call me naive, but I simply could not believe it. Three people responded, two by phone and one by email, confirming they had received our fax days ago but had not called us though they were prompted to do so. I actually had a pleasant conversation during both phone calls, listening to stories about vacations and such, but the lack of communication with others was frustrating. I understand that people are busy, but my question required a simple "yes" or "no" and I felt I was getting the cold shoulder.

While others might see this conflict as minor, it reinforced a stigma about large corporations that I wanted to believe was false. As a Junior at Bentley, the thought of entering the workforce is creeping its way into the forefront of my mind. Like myself, a good majority of my classmates have internships and are taking the direct route to the corporate world. I constantly receive emails from our Career Services department with dozens of new job listings, firms reaching out to Bentley specifically for new employees, and more often than not they are from large corporations. I'm not saying that large corporations are bad places to work, or are evil by nature, the career paths that these corporations offer and fruitful and conducive to the lifestyle I want to live. My experience put into perspective the career path, I both want and need to take, and that is small business. I take pride in servicing people promptly and being able to solve problems that others can not. I need that face-to-face interaction with co-workers and customers, knowing everyone by name and having a friendly relationship with them. The business I was raised in requires this level of interaction, it is what I have seen my grandfather and father do and is it the way I intend to do business some day. To say that my path will not lead me into the big corporate world is false. It is inevitable that I will find myself at some big firm for some time. I have student loans to pay off, and I am going to want a car, an apartment, and food on my plate. Heck, I might even be a CEO some day. If I love what I do, that is fine by me. I just feel that small business is the place for me.

Last week, I talked about the ebb and flow of the workweek and routines that employees go through. I go to Dunkin Donuts every morning and get a medium caramel iced coffee with milk and sugar, and a donut. I order from the same girl every day, she has mine and my girlfriend’s cups filled before we even get in line. However, this week she told me I couldn’t eat donuts anymore. I tried to rebut but I had no justification for eating a donut every day, so I quietly grabbed my coffee and left. At least someone is watching what I eat!

Google: Corporate Liability

According to The Washington Post, the Federal Trade Commission is currently in the process of imposing a $22.5 million fine on Google for violating Apple computer, smartphone, and tablet user privacy rights by circumventing user privacy settings.

Google, among other internet search providers, can track user web behavior through the use of "cookies". Cookies can track internet searches, allowing Google to target advertise user-specific interests. Default setting on Apple devices prevented the use of cookies, a practice that users had been well aware of. However, Google made alterations to its cookies to record if users signed into Google services were viewing advertisement. The alteration allowed users to show their interests on Google's social network, Google+, through selecting specific advertisements. This feature malfunctioned and gave Google access similar to that of unaltered cookies. Apple device users were unaware of this, thus spurring this corporate liability lawsuit. While Google claims the malfunction was inadvertent, they will still be held liable for violating privacy rights and dodging privacy settings.

The $22.5 million penalty will be the largest issued by the Federal Trade Commission if affirmed. The previous record came in 2010 when the commission issued an $18.8 million against a telemarketing company. (Read the full article here!)

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Nauset Beach Kayaker Turned Shark-Bait

Cue the ominous music...


Can you imagine having a 14 foot shark trailing you? And this is not your average shark, but a Great White. A shark of folklore, notorious for sinking boats and devouring beach-goers thanks to Steven Spielberg's famous movie Jaws. 


Fortunately, this kayaker made it to shore without a scratch, thanks to the quick thinking of a fellow paddle-boarder who made him aware of the lurking predator. The shark was spotted a little more than 150 feet from shore in only 8 feet of water, a little bit closer to swimmers than normal. 


In an interview with the Cape Cod Times, the kayaker, Walter Szulc Jr., stated that he "looked down and saw the body and realized that part of the shark was underneath [him], and just proceeded to paddle." That's a very calm response after encountering an animal that can swallow you whole, if you ask me. 


Nauset Beach was closed to swimming following the shark-sighting, but reopened a few hours later after the water was deemed safe. I don't know about you, but I'd constantly be peeking over my shoulder after an encounter like that!


Photo and Quote taken from the Cape Cod Times, article seen here!


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Intern Insights

First, I hope everyone had an awesome Fourth of July, I know I did. I spent the entire day on the beach, went home and stuffed my face with food, watched the fireworks in the Heights, then sat by the fire with close friends and family. It was a blessing to have such awesome weather after such a dismal-looking forecast.

All right, now back to work.

In the six weeks I have spent with the agency, I have come to recognize the ebb and flow of the workweek. When Monday rolls around, something every weekend warrior dreads, it seems like most people spend the majority of the day warming up for the week ahead. The first few hours are spent sifting through emails and finalizing work that may not have been completed the previous week. Actually, Monday’s are not as bad as everyone makes them out to be. It takes a simple pleasure like a fresh “Oreo Crumble” doughnut from Dunkin to brighten a Monday morning.

The next three days are generally very hectic. Work comes in as fast as you can finish it, clients are in and out of the office, and sales associates spend hours on the phone fielding calls on top of the work they are already doing. I keep very busy too, just in a different manner. In between projects, meetings, and blog posts, I spend my time scouring Twitter and news outlets for the latest news. Whether it be news specific to Cape Cod, insurance journals and blogs, or just current events, it is important for me to stay updated so I can write knowledgeable, informed posts.

Friday is a clock-watcher’s nightmare. This summer has been a difficult adjustment for me to make, but I expect no pity when you read why. I am what most would call a “beach-bum”. I was raised that way, it is in my blood and it will forever be my lifestyle. My mother has taught to me to get to the beach early and stay late, and surprisingly it never gets old. I have been sitting in the exact same spot on the Heights beach for my entire life, and I cannot see that changing in the near future. We get some gorgeous weather here on the Cape, and it is different for me to be in the office all day while the beautiful weather passes me by. Fortunately, I stay busy enough for the time to fly by, but come Friday, I’m itching to go out on the boat, get to the beach, and just enjoy the beautiful weather with family and friends.

Venturing out into the insurance industry has been a tremendous learning experience for me. Ultimately, the goal of an internship is to learn and experiment with career paths you might be interested in following. This does not mean that I am destined to be an insurance agent, but he time I will spend here is invaluable. I come from a heating oil background, it is what I know and it has provided for the “beach-bum” and “ski-bum” lifestyle that I live. It has been an interesting experience for me to learn how different industries, businesses, and people function. My father is very old-fashioned, but frankly, it suits the business and maintains efficiency. He does not need the most up-to-snuff software to run his company, in fact, his accounting entries are literally handwritten into a journal and then processed on the computer. The business is subject to price fluctuations and to some degree, legislation that regulates fossil fuel use.

At the insurance agency, everything is computerized. We are virtually paperless; any paperwork that crosses a desk is scanned into the system and shredded. I have two monitors at my desk and a fancy headset that I honestly have no clue how to work. While my father will see a baker’s dozen of clients in an average workday, our office might see half that. The Falmouth office sees a vast majority of the foot traffic, whereas the Bourne office fields dozens of phone calls and emails. The insurance industry is subject to completely different outside influences. With the recent passage of the Patient Protection and Affordable Health Care Act, insurance companies are no longer allowed to deny coverage to clients for preexisting conditions nor can they place lifetime caps on benefits for clients. In addition, the mandate requires insurance companies to take on new clients, some with preexisting conditions and some that were perfectly healthy but could not afford insurance. While insurance might not be the path I choose, it has certainly been an interesting six weeks. 


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Flood Damage: All it Takes is One

Are you prepared for a flood in your home?

With the intensity and frequency of storms here in New England, a flood could be a major concern for you.

Approximately 2% of Americans have flood insurance but nearly everyone is at risk of a flood. If you live close to the water, your insurance company might mandate that you have flood insurance. Even if it is not required, everyone should consider the effects of a flood on their home. You could lose thousands in valuable possessions, furniture, and appliances if you are not properly covered. Basic Homeowner’s policies do not cover damage associated with a flood in your home. With the erratic nature of Cape Cod and New England weather, it is never a bad idea to cover the worst-case scenario.


Last summer, Hurricane Irene brought strong winds, pouring rains, and huge seas to our coastlines. There's always a chance that a storm like Irene could wreak havoc on your home. Check out this picture of Surf Drive in Falmouth during the storm...

To prepare yourself for a flood, keep these tips in mind…

• Make a flood plan and establish evacuation routes with your family. Having food to eat, clothes to wear and even an exit plan can keep your family state.
• Ask someone out of state to be a “family contact” in the event that you have to leave your home behind.
• Take inventory of your possessions that might be at risk, that way you can know what is missing or how much you have lost in the event of a disaster.

Remember, all it takes is one storm to lose thousands of dollars!

Cape Cod sees frequent and heavy precipitation associated with hurricanes, tropical storms, Nor’ Easters, ice storms, and thunder storms. A flood in your home could be tragic and costly, keep these tips in mind to ensure your family’s safety.

Flood mitigation tips provided by The Main Street America Group.


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Intern Insights: Corporate Communication

Prior to joining Murray & MacDonald for the summer, the notion of effective corporate communication was not something I fully understood. It is very easy to sit in a Management or Organizational Behavior course and talk about effective means of communication, but actually putting these to practice is a different story. My expectation was to have someone hand me a project and do it, no questions asked, but my experience has turned out to be vastly different.

This week, I was responsible for posting Electronic Funds Transfers and Journal Entries for an Employee Benefits Account. When you sit down to take an Accounting final, the task at hand is very straightforward. The questions ask, “Record the Adjusting Entry for a PP&E Depreciation Expense of $50,000” or “Prepare the Closing Entries using the Adjusted Trial Balance”. Now I was asked to gather invoices, match invoices to previous transactions, and post the correct entry. I spent a few hours doing so, and to the best of my knowledge I was doing it right. However, when I finally had a question to ask, I was told otherwise.

It turned out that I had been naming the entries wrong, posting them in the wrong spot, and seemingly doing everything else wrong. While it was a disappointment and set me back an hour or so in work, it was an opportunity to realize the benefits of effective communication. It took an hour-long phone call, a good blow to the stomach that was my dignity, and an incredibly sore ear because of my lack of a fancy headset, but I learned how to do the entries properly! When I was asked to do the same type of entry later in the week, I knew exactly what I was doing and completed them without a problem.

Corporate communication advances as technology does. Microsoft, a staple of a vast majority of consumers’ computers, recently acquired Yammer for $1.2B. Yammer is the self-proclaimed “Enterprise Social Network”, specialized for corporate use. Evidently, Microsoft sees the value in the technological advancement of corporate communications. While I like to see myself as a tad old-fashioned, I find it difficult to call or email a co-worker that works mere feet from me when I could simply get up and walk over, there is no doubt that Yammer can streamline and improve corporate communication. Yammer offers companies a secure social platform over which they can share content, store large files, collaborate on projects in real-time, and communicate with customers and vendors, among other things. I would shell out a cool $1.2B to purchase Yammer if I could have. The opportunities of a streamlined means of communication are boundless and can drastically improve a business. Operations become seamless and geographically limitless. While this kind of platform might be extreme for a small insurance company like us, it speaks to the emphasis placed on effective communication. Businesses will go to extreme lengths to ensure that their employees are communicating seamlessly. I certainly would not have had to do those journal entries twice had I been an effective communicator.

It would not be right of me to ignore the recent Supreme Court ruling to uphold the Patient Protection and Affordable Care Act. In a 5-4 decision, the Supreme Court upheld the constitutionality of imposing a penalty on individuals who do not purchase health insurance but qualified it as a tax. The USSC ruled that the government could not mandate that individuals purchase health insurance, but it can penalize those who do not. In a prime example of our country’s system of checks and balance, Chief Justice Roberts stated, “The Affordable Care Act’s requirement that individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax…it is not our role to forbid it, or to pass upon its wisdom or fairness.” Yet, the Affordable Care Act has a rocky road ahead. If Obama is voted out of office in November, Romney will almost certainly repeal it and it will continue to see Republican dissent for some time, regardless of the outcome.

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