E-Mex News 2014.

Issue #3

Inside this issue:

1

Editorial

EDITORIAL
Brand new product:
Mexican Insurance in the USA

Hurricane Odile

Technical article: The Energy

Reform

The Reform timeline

Meet our people

Something to laugh about

s always for us, it is a pleasure to keep in touch

with our friendly producers and international
colleagues that follow our steps, servicing your
Mexican Insurance needs, whether in the
Commercial and Personal Lines. Thanks to all, our business
keeps growing steadily. Overall the situation in Mexico is
improving a lot, politically and economically; since crime
has been decreasing, tourism has been back this summer.
The manufacturing part of the Economy has achieved a
substantial growth this second quarter of 2014.
All the Reforms, which amount to twenty, are starting to
take place and show an advance, specially the Energy
Reform. We have a special issue on this number, because
this will bring to Mexico billions of fresh new investment
that will in turn carry out lots of business opportunities for
you.

Brand new product:

MEXICAN INSURANCE IN THE USA

ualitas Insurance company started doing business on June

2014, with headquarter in San Diego, CA and it is the first
Mexican Insurance company (Qualitas Mexico) operating
doing business in USA. Qualitas it is admitted company and has
license already in 16 states in the USA.
Qualitas Mexico is one of the top insurance carriers in Mexico for
tourist and residents auto with a very well competitive rates,
(Continued on page 6)

USA OFFICE
700 S. Flower Street, Suite 1216. Los Angeles, CA. 90017.
Tel. (213) 629-9777 Fax. (213) 629-9779, info@macafeeandedwards.com

www.macafeeandedwards.com

Hurricane Odile
Time to service you
As you know, this hurricane has stricken the Baja Peninsula, starting as a tropical depression on September 10th
and by the 14th, once reaching category 4, with winds of 130 miles per hour, entered the Peninsula right through
its tip, which is Cabo San Lucas, and going forward and devastating San Jose , its neighboring Cape, following on to
hit La Paz, Loreto, Mulege and Santa Rosalia, other small towns and villages, all municipalities of the state.
Preliminary data showing that there were 30,000 tourist at the time, a 60% occupation rate. After the strike, there
were approx. 239,000 people without power which is 92% of the Population, as 2180 power poles went down.
Schools were closed, government offices and all commerce was shut down. Hundreds of shelters were set up . The
initial estimated Insured losses will be at least one billion dollars, but the overall loss will be further more. For this
reason, we have prepared instructions inside this issue.

For those of you who have clients and have purchased insurance through our firm, please read this important message:
Please note that we have proceeded to report all claims to the different insurers, for those of you that have been able to notify us, and do have a
claim number. A vast majority of our claims are with MAPFRE for our (Homeowners) on line programs, as well as other carriers for all of our
Commercial Lines, since the overall loss comprehends all types of homes and businesses. Given the current circumstances of problems in communications and transportation to the affected area, we reiterate that our personnel is currently coordinating with the corresponding adjuster of task
performing the survey visits and initial revisions of damages, as they will be at your/designated location shortly. The objective of acknowledging
the state of the goods that are claimed, additionally establishing procedures that are necessary for the assessment of damages sustained.
While this inspection visits are achieved, we kindly require you to perform the following steps to gather the documentation and information:
ACTIONS

Take as many photographs and videos to iden

tify the affected property/goods, as well as the

extent of damages sustained.
Issue a list of the goods, estimated by you to be
claimed, detailing the characteristics that would
help their identification and that would help the
measurement of the losses (through replacement
quotations or repair bids, as it may be each
case)
Goods to be claimed as total loss, should be
kept safe, so the adjuster may be able to verify
them (they should not be discarded, nor destroyed), until further instructions received from
the Adjuster. These goods are identified as
salvage.

NECESSARY DOCUMENTS (PRELIMINARY)

Complete copy of your insurance policy.
Hard copies of purchase invoices of the affected-claimed goods.
Estimate of repairs or bids for the affected goods (mainly building).
Issue your claim letter, which should include description of
affected Items (Building, Contents, Glasses, Special goods, etc.),
and estimated amounts to be claimed by each general item.

We consider that depending on your insurance coverage conditions,

these issues would be the most relevant ones, and they should facilitate the initial process of your claim; notwithstanding this, each case,
the Adjuster will confirm or extent the items to be revised and
gathered for the corresponding measurement and adjustment.
Also, we will appreciate that you send such photographs taken of
sustained damages to our email address, in order to anticipate the
revision of your affected goods.

THIRD PARTY ADJUSTMENT SERVICES:

If for any reason you have difficulty obtaining the information/documentation listed above or you are located in the USA and its impossible for you
to travel down to Los Cabos, we can recommend the professional services of a third party adjustment firm, that could help you gather the
necessary documents and information on your behalf. Please be advised that these companies are not part of the insurance company or part of
our brokerage firm. There service fees will be negotiated between you and these respective companies that are listed below:
a)
Ramirez Valle Contact: Mr. Francisco Romo fromof@prodigy.net.mx
b)
XMexico Claims & Risk Management Contact: Mr. Carlos Zamudio czamudio@mexicoclaims.com
For any questions or concerns regarding the above, please feel free to contact our MacAfee & Edwards/Proteccion Tecnica International team.

MEXICO OFFICE
Av. Las Palmas, Fraccionamiento Las Palmas 4912, Tijuana, B.C. Mxico
Tel. 01152 (664) 134-6520 Fax. 01152 (664) 621-1819, info@protecint.com

www.protecint.com

Technical article:

The Energy Reform

ince 1938 when President Cardenas confiscated all foreign oil interests, all the related
activities were handled by the
State. Today in our modern
world, its impossible to continue with that philosophy; even
Venezuela is pretty smart
handling its oil. In few years
from now, for sure, oil importance will be less, since all kinds
of alternative energy will be
available. In congress a vast majority of Congressmen as well
as Senators, from PRI and PAN
had a joint agreement and
voted to open the Economy to
Oil private and foreign investment, after 170 hours of discussions and more than 1300
speaches. The issue is not new
to us, since, during the last two
6 years presidencies, from 2000
to 2012 under PAN party
governance, both presidents
Fox and Calderon proposed this
reform, but PRI would not sign
since they boycotted the Proposal and PRD ,the left wing
party will never approve such a
subject, but this time and trying
to forget old fights, finally two
of the three parties agreed to it,

in a congress that is pretty

balanced between the three.
PRI had previously agreed with
PRD other reforms such as the
Fiscal reform, which is very
oppressing to enterprises and to
decent salaried employees,
because it taxes them so high
and allows little incentives and
cuts to tax deductions, that
instead of having to sign in new
tax payers, to avoid the problem to go into the subeconomy world, such as sales
vendors and what we call the
informal
Economy
which
amounts billions of pesos a
year, interesting subject, very
much Mexico, and what is
Populism,
which would be

worth to mention as a full chapter in another time. PRI also

reached agreement with PAN
for an Education Reform which
basically will not make teachers
better in the short-medium run,
but it is taking away from the
Union leaders, lots of power
and tons of money to handle.
Ten reforms in two years is
what we have; the time has
been ripe for PRI to negotiate in
both directions, at the end
Good Politicians.
In this Energy Reform, the opposition in turn, PRD through its
leader in Congress, Miguel Barbosa, is calling the people to
protest and will try a referen-

USA OFFICE
700 S. Flower Street, Suite 1216. Los Angeles, CA. 90017.
Tel. (213) 629-9777 Fax. (213) 629-9779, info@macafeeandedwards.com

www.macafeeandedwards.com

dum to take the law back, based

on the fact, that the results of

this Political and Economic decision will result in loss of jobs for
PEMEX and CFE (the electricity
national company); also that,
lots of environmental damages
will be caused, lands will be lost
to multinational interests, violations of Human Rights, among
many other calamities.

Our system through a congress

is representation of our
interests, so if these are the
politician we have elected, now,
its difficult to complain, this is
what we have and they are
doing its job, so we do not
foresee and major problem of
carrying out the Reform.

Basic rules of the agreement:

The ten point system :
1.
2.
3.

4.

5.
6.
7.
8.
9.
10.

Exploration, extraction, process from crude to gasoline. Logistics are hereby opened to private
sector.
This will be treated through public offer, choosing the best offer.
There have been established five transparency rules: bidding will be public and will be shown in Real
time in Internet. Participants will have to make public all their expenses as well as payments
received by the state. The state will have to disclose all numbers to the public.
Secretary of Energy will set up the rules and technical regulations. The Secretary of treasure will outline the economic rules. The National Commission of Hydrocarbon will conduct the bids and the
Central Bank of Mexico will make the payments.
All contracts will be cancelled if participants fail providing information, or mishandling the rules, or
cause damages to third parties.
PEMEX will have a 20% share in each of the feasible projects.
Taxes for PEMEX will be reduced from 85% to 79%, which will give the firm , three or four times the
current profit.
PEMEX will have the authority to decide if profits are to be reinvested or a part is giving to research
or to grow Human Capital.
CFE: The electricity company will only pay taxes as any other entity.
A new entity National Agency of Security will be created to implement loss prevention against
catastrophes and will also dictate punishments against Companies that do not comply with
regulations.

MEXICO OFFICE
Av. Las Palmas, Fraccionamiento Las Palmas 4912, Tijuana, B.C. Mxico
Tel. 01152 (664) 134-6520 Fax. 01152 (664) 621-1819, info@protecint.com

www.protecint.com

Basic rules of
the agreement:
What is next? Round cero and Round one:
Pemex has already been investing and working on exploration fields and they have requested to leave these
projects, meaning the specific fields and exploration
areas unchanged and this has been called round cero,
because Pemex will make this list and present it as projects that will continue under their own exploration
and management. However the second step, Round
One, is a list of twelve projects, mostly in deep waters

as well as in the coasts of Texas, with the use of Lutites

which are sedimentary Rocks that through hydraulic
breakage are producing oil. These package of 12 projects will be launched to the world for bids in the next
five years and represents an investment of 77 billion
dollars in areas already defined as Chicontepec, Lakach
and other Gulf Of Mexico primary destinations. There
is an estimated of 113 billion barrels.

What will reforms bring to the people of Mexico?

Advantages of carrying out these changes:
The Federal Government has promised the people of
Mexico that, these reforms will improve the quality of
living of most of the population, since, these government entities will be forced to enter into competition
and monopolies will disappear right away and that in
the medium-longer run, prices of all energy related
services will be reduced, because volume in crude oil
production will increase its productivity from todays
2.4 million barrels per day to at least 3.5.million, with

the joint participation of international private energy

companies who have the knowledge and know-how.
Utility bills will also decrease since we are leaving monopolies behind and all alternative energies such as
Eolic (Wind), Solar Panel markets are liberated and
therefore competition will drive prices down. Also, the
Federal Government is considering that up to 2.5
million new jobs can be created in a 10 year program .

New business opportunities

The Insurance marketplace
Non admitted insurance will continue to be prohibited,
so this will be the opportunity for the local market to
grow and specialize in the different fields. Contractors,
Sub-Contractors, Trucking Companies, Logistic Firms,
Distribution channels, Sales of all sorts of equipment,
Casualty business should boom, Professional Liability,

Environmental, workers compensation

insurance will probably have to
evolve to make room for all foreign engineers coming
to assist, etc.
The reinsurance market will also be benefited since
these new areas will require of foreign expertise and
world capacities.

USA OFFICE
700 S. Flower Street, Suite 1216. Los Angeles, CA. 90017.
Tel. (213) 629-9777 Fax. (213) 629-9779, info@macafeeandedwards.com

www.macafeeandedwards.com

The Reform in the timeline:

12/18/2013

08/12/2013
12/11/2013

Initiative
of law is
presented
by President Pea
Nieto.

Approved
by Congress.
One day
later by
the Senate.

Initiative
is called
Constitutional.
Two days
later is
official.

06/07/2014

01/01/2015

01/01/201 7

04/30/2014

11/09/2014

01/01/2016

Package Package
of secon- is apdary ac- proved.
cessory
laws
were presented.

Deadline Kick off

of proto present for ject.
Secretary
of Treasure subscribe
with Pemex, the
new
monetary
funds.

Different
brands of
gasoline
will be
available
for sale in
Mexico.
The
brand
PEMEX
will disappear.

(Continued from page 1)

doing business in Mexico since 1994 and with

offices located in all Mexico. This program is aimed
for truck motor carriers and/or truck drivers that
cross the US/Mexican Border and have an MX or
MC enterprise, or are in the process obtaining such
permit. Coverage is offer in the USA.
Coverage available as follows:

Third party liability from $750M to $1M

Uninsured motorist up to $60K

Medical Expenses up to $20K

01/01/2018

Any private
company
will be
able to
import
gasoline.

No fix
price of
the gasoline, just
competition.

This program accepts light, medium and heavy

trucks as well as tractors/trailers. The radius of
operation will be up to 1,500 miles from the cross
border port and the driver can have a US or Mexico
commercial driver license and must be at least 21
years of age with minimum of 2 years of driving
experience.
Filing will be offer with the DOT (Department of
Transportation) as well with the state thats the
insured require. Financial options are available.
Please email us or give us a call to request an
application or general conditions of the program.

MEXICO OFFICE
Av. Las Palmas, Fraccionamiento Las Palmas 4912, Tijuana, B.C. Mxico
Tel. 01152 (664) 134-6520 Fax. 01152 (664) 621-1819, info@protecint.com

www.protecint.com

Alejandra Hernandez was born in Tijuana, Baja California.

In April of 2013, she started working for this company assisting with the
Article 140 documentation within the Commercial Lines Department.
Whenever one asks about her experience at work, she says: "The Insurance business is very wide and interesting, my experience in this
industry and this company has helped me very much at an intelectual and professional level. I just think that it is very important to
choose a reliable and solid agent/company, that guarantees the
service and the capability of adaptation to the customers needs,
both technically and financially.
August 2013, she graduated from the Autonomous University of
Baja California with a degree in Marketing. Alejandra enjoys the
most, spending time with her daughter Andrea of 3 years old and
finding creative activities for both. She enjoys listening to music
and reading a good book, that is very rewarding to her. No doubt,
serenity has been always her best ally, when confronting new challenges or simply enjoying the good things of life.
Alejandras favorite phrase is:
"Accept, learn and let go."
ahernandez@mexicard.com
Ext. 223

Never Argue With Children...

D

A little girl was talking to her teacher about whales. The teacher said it was
physically impossible for a whale to swallow a human because even though it was
a very large mammal its throat was very small. The girl stated that Jonah was
swallowed by a whale. Irritated, the teacher reiterated that a whale could not
swallow a human; it was physically impossible.
The little girl said, "When I get to heaven I will ask Jonah."
The teacher asked, "What if Jonah went to hell?"
The little girl replied, "Then you ask him."

USA OFFICE
700 S. Flower Street, Suite 1216. Los Angeles, CA. 90017.
Tel. (213) 629-9777 Fax. (213) 629-9779, info@macafeeandedwards.com

www.macafeeandedwards.com