TouchPoints Daws a publication of Dawson Insurance
All About People
Fargo-based Discovery Benefits started with just three employees in 1986. Today, the third-party benefits administrator has more than 250 employees, clients in each of the 50 states, and hundreds of thousands of those clients’ employees rely on its expertise. But for Discovery Benefits, it’s about more than participants, plans and products; it’s about each person. Pictured are John Biwer, President; Matt Feir, Senior Vice President; and Suzanne Rehr, Chief Risk Officer/EVP
Summer 2012
Commercial L President’s Message Commercial Lines
President’s Message
Looking to the Past, Planning for the Future by Tom Dawson
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awson Insurance has been in business for 95 years. Ninety-five! I think my grandfather, Charles Dawson, would be smiling ear to ear if he could see how far his little venture has come. Grandpa Charlie started Dawson when Woodrow Wilson was president. Half the cars in America were Model T’s off of Henry Ford’s innovative assembly line. The incomparable jazz vocalist Ella Fitzgerald drew her first breath. Tsar Nicholas II was overthrown in Russia, and the United States declared war on Germany. In the midst of all those historic events and personalities, the launch of an insurance business in rural America probably wasn’t of much note. But over the years, for those in the Dawson family, for those who have worked here and, most importantly, for those we’ve helped in times of crisis and need, it has become a momentous event, indeed. This company has survived a Great Depression and several lesser economic downturns, weathered stretches of high unemployment and major political change, and dealt with outside pressures so we could keep the business privately owned. We have prevailed, and we’re proud of it. And while Charlie would be tickled at what his business has accomplished and overcome, I think he’d be smiling even more broadly when thinking about the future. Because looking back is fun, but what really matters is today and tomorrow. The needs of our personal and business clients continue to get more complex. They require proactive and innovative solutions that help mitigate risk in their everyday lives. Those are the kinds of solutions we provide today, even as we search for better ways for the future. Yes, we take a lot of pride in celebrating this anniversary, but we’re not resting on our laurels. Because at the end of the day or even at the end of the 95th year, what really matters is your future, not our past.
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TouchPoints • Summer 2012
Protect Your Organization When Security Fails Get Information Security and Privacy Liability Insurance
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hacker gets into your system and finds your employees’ personal data despite extensive computer and server security. Several of their identities are stolen, costing them thousands of dollars, hours of time in trying to put things right and immeasurable frustration. An employee inadvertently leaves his laptop in his car overnight. Someone breaks into the vehicle and steals the laptop, which contains private information of hundreds of your customers. They start getting fraudulent offers and scam emails. They aren’t the only ones who pay in terms of time and money. You do, too, unless you have the right protection. Private and protected customer and employee information is compromised in organizations across the United States every day. It can happen whether your company is high- or low-tech, regardless of whether you sell over the Internet, and no matter how “bulletproof” your IT advisor says your systems are. And, unfortunately, most general liability policies have significant gaps and don’t cover many types of security breaches. If your organization is victimized you may be liable for associated costs and requirements, which can include anything from notifying those whose information has been compromised to paying court-ordered restitution to victims. The costs have been significant for U.S. companies. According to a January 2010, InternetNews.com report, “Data breach incidents cost companies an average of $6.75 million each time.” The story cited a 2009 study by The Ponemon Institute and PGP Corp. that included a wide range of business and public sectors across the U.S. economy. The Ponemon Institute, Traverse City, Mich., conducts independent research on privacy, data protection and information security policy. PGP, Menlo Park, Calif., is an email and data encryption solutions provider. Fortunately, you can protect your business with information security and privacy liability insurance. Given how much is at stake financially – not to mention the costs of damage to customer and employee relationships – coverage is relatively inexpensive. Some policies cost as little as $1,500 a year for a $1 million limit. They come with a broad definition of unauthorized access, so you’ll be covered for situations that involve network access gained by fraud or deception, lost or stolen hardware or media storage, employee malfeasance and the loss of paper records. To learn more about policies and coverages available, contact our Commercial Lines Department. D
Financial Services Lines Daws Financial Services
HSAs Supplement Healthcare Funding and Provide Long-Term Savings
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f you are enrolled in a high-deductible health plan (HDHP) but need more funds to cover your medical expenses, and if you’d like to use something that will also help you save for retirement, a health savings account (HSA) might be right for you. HSAs are medical savings accounts available to individuals who are enrolled in HDHPs and would like to supplement their health-care funding. They are especially beneficial to people who have had some sort of health issue and for middle-aged adults with families. And, while they are similar to flexible spending accounts, HSAs provide numerous advantages that are not available through any other type of tax-favored savings account. Tax Benefits •• From a tax perspective, you benefit every time you put money in or take it out. This is because contributions are made on a pre-tax basis, and withdrawals for qualified medical expenses are not subject to income tax. •• You may use your HSA funds to pay for qualified medical expenses at any time throughout your lifetime without federal tax liability or penalty. •• Withdrawals for non-medical expenses are treated in much the same way as those withdrawn from an individual retirement account. They may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. •• Your account provides tax-deferred growth. If you wait to withdraw funds until you’ve reached age 65, you only pay income tax on withdrawals that are not used for qualified medical expenses. Other Benefits •• A nyone enrolled in an HDHP can own an HSA. This compares to flex plans, which are only available through employers. •• Both employers and employees can contribute to HSAs. •• You can change your funding level as often as you like. •• You do not have to obtain advance approval from your HSA trustee or medical insurer to withdraw funds. •• There are no “use-it-or-lose-it” features. Regardless of whether you use all your funds in a calendar year for qualifying medical expenses, you will not forfeit your money. Qualified medical expenses include costs for services and items covered by the health plan but subject to cost sharing, such as deductibles and coinsurance; co-payments; expenses for dental, vision and chiropractic care; durable medical equipment such as eyeglasses and hearing aids; and transportation expenses related to medical care. Most HSAs have more than one way to access funds. Some include a debit card, others supply checks for account holder use, and still others allow for a reimbursement process similar to medical insurance. For more information, or to learn if an HSA is right for you and your family, contact our Financial Services Department. D
Assoc Dawson Associates
SALES STAFF Dan Armbrust, CIC, CPIA, CPCU, CRIS Todd Anderson, CPCU,CIC Penny Crowder, CISR, CIC Tom Dawson, CPCU, CIC Zack Dawson Ryan Hoffman, CPCU, AIC Mark Julik, CIC, CRIS Jay Kleingartner, CIC Wayne Lauwers, CIC Jim Nyhof Matt Peterson, CIC Roger Peterson, CIC Natalie Schultz, AIC, CPCU Steve Winter, CIC Ben Zietz ADMINISTRATION Mary Bjerke, CPCU Jaclyn Hanson Steve Miller, CPA Julie Moll Angie Wohl CUSTOMER SUPPORT BONDS Becky Hecker Melody Vinje CLAIMS Jill Graveline Kathy Richard COMMERCIAL LINES Joni Alfson, CIC, CPCU Darthy Brown, CIC Kevin Bruggeman, CPCU Donna Christlieb, AU, CIC Holly Fitch, CISR Joan Hagen, CISR Deb Johnsen, AU Stacy Kemerling Lesley Koehler Jen Kopel, CISR, CIC Melissa Krystosek Karen Lundberg Pam Rudolf Matthew Weis PERSONAL LINES Kendra Ahlquist Raeanna McCollum Connie Bertram Stacey Frolek Joan Hagen, CISR Sharon Maasjo, CISR Crystal Rosen
800.220.4514 • DawsonIns.com
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Client Spotlight Clien Client Spotlight
Discovery Benefits: Dawson Insurance Client Since 2008
Seeing With New Eyes Discovery Benefits Takes a Different View of Benefits Administration 4
TouchPoints • Summer 2012
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iscovery Benefits Inc. (DBI) helps people. Whether it’s one of the hundreds of employers around the country that DBI represents or the thousands of employees in those clients’ benefit plans, the Fargo-based company is focused on helping each one make sense of a highly complicated system. DBI is a third-party administrator (TPA) that manages benefits plans for companies throughout the 50 states. It handles flex spending accounts, COBRA administration, health savings accounts, health reimbursement arrangements and transportation service accounts. In doing so, DBI has become one of the most respected TPAs in the country. While it competes against huge benefits administrators whose employee and customer bases are dozens or even hundreds of times larger, it’s doing just fine, thank you. So are the clients and their employees who benefit from DBI’s Midwestern work ethic and value system. “Our success starts and ends with having a team of people who are passionate about being part of a high-performance culture,” said DBI President John Biwer. “This passion to be the best, and to do it as a team, has put us in position for sustained growth well into the future.” Three to 250 Every day, DBI’s employees walk in the front door of one of the industry’s best places to work, according to a recent ranking by a nationally recognized industry publication. But it’s been that way from the start, says Suzanne Rehr, chief risk
“Our success starts and ends with having a team of people who are passionate about being part of a high-performance culture. This passion to be the best, and to do it as a team, has put us in position for sustained growth well into the future.” – Discovery Benefits President John Biwer
nt Spotlight Client Sp officer and executive vice president. As one of the company’s original three employees, she would know. What eventually became DBI started as part of the marketing department at Blue Cross Blue Shield of North Dakota in 1986. In 1993, it moved to BCBS subsidiary Northern Capital Trust, and in 2003 it became a stand-alone company that is self-sustaining. It was then that the new business took its name from a Marcel Proust line: “The real voyage of discovery consists not in seeking new lands, but in seeing with new eyes.” In terms of customer service, company culture, technology and processes, DBI has been seeing with new eyes – and helping its clients to do the same – ever since. And, just like the French writer, DBI has been visionary and innovative, pushing for more efficient ways to serve clients and their employees, adopting new technologies early and constantly working to improve its customer service. That drive to be ahead of the curve has kept the company growing. By the end of 2012, DBI expects to add 60-80 more employees to the 250 it already has. Simplifying DBI sells and administers plans that incorporate products from reputable companies around the country. As the 6th largest TPA in the United States, DBI administers plans with 400,000 reimbursement account participants and 720,000 people covered under COBRA. Its clients range from public school systems to privately held corporations, from twoemployee organizations to Fortune 100 companies. Regardless of a client’s size, DBI’s role is
to untangle the web of products and plans. “Employee benefits have become more and more complex over the years, so it’s very difficult for employers to handle them,” said Rehr. “Most employers don’t have the sophisticated technologies or the staffing they need to do it well, and it’s more costeffective for them to outsource it to us.” DBI does everything from researching regulations for employers to answering plan-specific questions from employees to managing claims. While it’s relatively inexpensive for employers, the results deliver high value for their employees, says Arika Palloch, marketing coordinator. “We become an extension of the HR departments and answer all the questions from the employees. That’s our most important function, day in and day out.” Small-Town Caring, Big-Time Service All TPAs can access the same insurance providers, products and plans, and they often use the same software to get the job done. DBI sets itself appart through exceptional customer service. “With all things being equal, it comes down to that service, how your company clicks with prospects, how they feel their employees will be treated and so on,” Rehr said. To set the standard, DBI has benchmarks for how long it takes to answer the phone (less than 60 seconds), how many participant questions are resolved on the first call (95 percent) and how quickly claims are processed (in less than two days). To keep the people who deliver that level of responsiveness, DBI empowers them within clear boundaries, provides the technologies, tools and training they need,
and makes sure everyone understands there are opportunities for growth and advancement. It’s paid off, both in terms of growth in the client base and industry recognition. Business Insurance magazine named DBI one of the best places in the industry to work in 2010 and 2011. Only 54 companies out of 10,000 achieve the designation, and very few do it in consecutive years. DBI also had the distinction of being at the very top of the magazine’s small third-party administrator subcategory in 2010. Hyland, a document management solutions company, named DBI one of its 2010 Real Solutions Award winners. Benefitfocus, a benefits technology provider, ranked DBI “Best in Class” among the nation’s third-party COBRA providers. And CDHC Solutions, another industry publication, has designated DBI an “Innovative Service Provider.” The other differentiator is technology, both externally and internally. DBI was one of the first TPAs to offer a benefits debit card, to provide all information for clients and employees online, and to provide mobile applications that allow plan participants to check on benefits from handheld devices. In house, DBI uses computer-based processes that help track plans and claims more efficiently, reduce the risk for errors and create automatic workflows. “Technology really is critical to what we do and what we’re able to do,” Rehr said. “It’s been a big differentiator for us because we can do more with fewer people and that helps us keep clients’ costs down. It also enables us to provide better and faster service to their people.” And that’s the key. Because, at the end of every day, regardless of the plan or the product, it’s always about the people. D
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DesignationsDesignat Staff Designations
D Improving Ourselves to Improve Service to You
awson encourages our associates to continue their insurance education by achieving various licenses and professional designations. In the past year, two of our associates have earned their Chartered Property Casualty Underwriter (CPCU) designations and four more have earned the Certified Insurance Counselor (CIC) designations. The CPCU curriculum balances practical skills and theory to provide an in-depth, broad-based knowledge of insurance and risk management and insurance. The CIC program complements the CPCU curriculum and signifies that the insurance professionals who hold the designation have attained comprehensive knowledge of agency management, commercial casualty, commercial property, life and health and personal lines. D
Certified Insurance Counselor (CIC)
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Chartered Property Casualty Underwriter (CPCU)
Darthy Brown Commercial Lines Account Manager
Matt Peterson Agent
Joni Alfson Commercial Lines Account Executive
Roger Peterson Agent
Steve Winter Agent
Natalie Schultz Agent
TouchPoints • Summer 2012
Employee Spotlight 24-7 DawE Employee Spotlight
New Employee Jill Graveline Claims Advocate Prior to joining us in May, Jill was a fire claim adjuster for State Farm Insurance for more than 14 years. She also was an aeromedical technician in the N.D. Air National Guard and a regional lab technician at MeritCare Medical Center. Jill earned her bachelor’s degree in psychology from North Dakota State University in 1997. She and her husband, Tim, live in Fargo with their three daughters.
Your insurance information is always available so you can: •• Obtain Certificates of Insurance. •• Print auto ID cards. •• Notify Dawson of a claim or loss. •• View your policy information. •• Make change requests such as address or adding vehicles/drivers. Keep in mind, coverages are not bound until you receive confirmation from our office.
in memory of
Konnie Chaffee 1973-2012
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t is with great sadness, but also with fond memories in our hearts, that we say goodbye to our friend and co-worker, Konnie Chaffee. She passed away unexpectedly on May 6. Konnie joined Dawson Insurance in 1998 as a life and health representative. She was a winner of the Dawson Pace Setter Award, which recognizes excellence in service and customer care, and she delivered that excellence day in and day out over the years. Most of all, she will be remembered for her complete dedication to her family, to whom we offer our deepest condolences.
Make Sure Your Business Has an Up-To-Date ERISA Bond The U.S. Department of Labor and the Internal Revenue Service recently have stepped up their compliance measures in terms of audits of fiduciary bonds for employee benefit plans. Before they come knocking at your company’s door, make sure you have a bond in place and that it’s up to date.
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iduciary bonds are required under the Employee Retirement Income Security Act (ERISA) of 1974. They are intended to protect private-sector retirement, pension and health plans from financial loss due to fraud, dishonesty or mismanagement by anyone who has access to their funds. Plan fiduciaries include, for example, plan trustees, plan administrators, and members of a plan’s investment committee.
An ERISA bond differs from an insurance policy in that it does not cover losses. Instead, it guarantees that the company will be able to pay any losses up to the face amount of the bond. In some instances, if an employer is financially unable to meet its obligations, the bond will pay instead of the company. In general, the law requires an ERISA bond to cover 10 percent of a plan’s assets for each person who has access to the plan
assets. The minimum coverage is $1,000 per person and the maximum is $500,000. In many cases, employers do not have the necessary bond. And in some cases, those that have an ERISA bond do not have the required amount of coverage. For assistance in determining if your business is in compliance, contact our Surety Department. D
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Unique Adv Answer Des Dawson Insurance is proud to be a locally owned, independent agency that provides a full line of property and casualty coverage, as well as life and health benefits, surety and financial services for individuals and businesses. For more than 95 years, we have been working hard to ensure our customers always come first, both in the services we offer and the protection we provide. Thank you for your business. Dawson Insurance 721 1st Avenue North PO Box 1958 Fargo, ND 58107
701-237-3311 800-220-4514 701-232-4442 (fax)
24 hours a day, 7 days a week claims@dawsonins.com info@dawsonins.com PAY YOUR HOME AND AUTO BILLS ONLINE CHECK US OUT AT dawsonins.com
Find us on facebook TouchPoints content is for illustration and informational purposes only. Dawson Insurance relies on the accuracy of information provided to us in developing this newsletter. For premium quotes, specific coverage options and other products and services, please contact us.
Answer Desk
Q: How do I get coverage for my classic car? A: Collector Car Insurance, also known as Classic Car Insurance, provides broad coverage for antique and classic vehicles at a reduced cost. Since coverage is written on an agreed-value basis, you receive the full value of your vehicle in the event of a loss. In addition, qualified adjusters trained specifically in coverage for these special vehicles handle the claims. To qualify for the coverage at substantially reduced rates, the vehicle must be more than 15 years old, be used on a limited basis for pleasure (i.e., not for commuting to work or school) and be stored in a garage. In addition, drivers must be over 25 with a favorable driving record. Check out the 8th Annual “Cruisin’ Broadway” in downtown Fargo on the first Thursday of every month through September. • June 7: 5–9 p.m. • July 5: 5–9 p.m. • August 2: 5–9 p.m. • September 6: 5–9 p.m To have your question answered, send it to info@dawsonins.com.
721 1st Avenue North PO Box 1958 Fargo, ND 58107
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