Jan_Feb 2012 KIA&B by Rebecca Spriggs

Kansas Insurance Agent & Broker January/Febr ua ry 2 0 1 2

I’m celebrating our 100th year by planning for our next 100 years. Jason Bogart, CPCU, ARM, Vice President of Branch Operations Our future will be marked by the relationships we forge with you—the independent insurance agents who represent us. You’re the reason we’ll continue to investigate new market opportunities. Why we’ll develop competitive products. Why we’ll maximize the use of new technologies. Why we’ll emphasize ongoing professional development for our staff. By helping you proﬁtably and efﬁciently grow your agency, EMC Insurance Companies will continue to serve you and your customers today and well into the future.

Wichita Branch: 800.223.0562 | Home Ofﬁce: Des Moines, IA

TABLE OF CONTENTS January/February 2012

KANSAS INSURANCE AGENT & BROKER

Vol. 17, No. 6 The bimonthly magazine of the Kansas Association of Insurance Agents

EDITOR Rebecca Spriggs OFFICERS OF KAIA President Lee Hays | lhays@capfed.com President Elect Tim Tyner | tim@tynerinsurancegroup.com Vice President/Treasurer Bob Wood | bwood@wooddulohery.com Secretary/Assistant Treasurer SueAnn Schultz | sueann.schultz@imacorp.com

State National Director Greg Renn | grenn@rennandcompany.com Immediate Past President Mark Lowry | mlowry@ruraltel.net

BOARD OF DIRECTORS Zone I Director Jim Wilkinson | wilkinson@cretcherheartland.com Zone II Director Rob Lessen | rob@foxinsuranceks.com Zone III Director Lyle Davidson | lyledavidson@thedavidsonagency.net Zone IV Director Lee Gleason | lee@elliottins.com Zone V Director Lonny Claycamp | claylo@insurance-planning.com Zone VI Director Scott Strong | sstrong@strongsinsurance.com Director at Large Jim Runnebaum | jmrunnebaum@sbsins.com Director at Large Ron Bolz | bolzins@embarqmail.com Director at Large Christine Teagarden | cteagarden@linncountyins.com Director at Large Dusty Davis | ddavis@icblueskies.com YAC Chairperson Jo Erin Stuteville | joerin@elliottinsurancegroup.com K A I A P R O F E S S I O N A L S TA F F Executive Director | Kerri Spielman Vice President of Operations | Marcia Moore Director of Communications | Rebecca Spriggs Director of Education | Erin Lesser Director of Events | Beth Roybal Membership Services Rep | Deanna Dinwiddie Insurance Services Rep | Amanda Hanson

F E AT U R E S 12 COVER STORY The Farm Bill and the Independent Insurance Agent 14 Triple Net Insurance Requirement 16 Pay As You Drive- Understanding Snapshot

d e pa r t m e n t s Presidentâ&#x20AC;&#x2122;s Message 2

Industry Partner Programs 3 22 E&O Basics: Why Your Clients Should New Members 3 Read Their Policies Agents Council For Technology 4 Commissionerâ&#x20AC;&#x2122;s Column 7 24 Young Agents Committee 8 Agents Prefer Real Time Trusted Choice Committee 10 28 Technology Committee 11 How to Prevent Hacking Education Classes 30 and Breaching Advertising Index 31 Kansas Filings of Interest 33

POSTMASTER: Send address changes to Kansas Insurance Agent & Broker c/o the Kansas Association of Insurance Agents, 815 SW Topeka Blvd., Topeka, KS 66612. (785) 232-0561. Kansas Insurance Agent & Broker (ISSN#1069-1847) is published bimonthly by Agency Services Corporation of Kansas (ASCK) a subsidiary of the Kansas Association of Insurance Agents, 815 SW Topeka Blvd., Topeka, KS. (785) 232-0561. Periodicals postage paid at Topeka, KS 66612. The Kansas Association of Insurance Agents was formed September 1, 1992, through the combination of the Professional Insurance Agents of Kansas (PIAK) and the Independent Insurance Agents of Kansas (IIAK). The Association was formerly affiliated with the National Association of Professional Insurance Agents (PIA) and is currently affiliated with the Independent Insurance Agents and Brokers of America (IIABA).

PRESIDENT’S PAGE

Advocacy is not Easily Quantified Advocacy is at the top of the list of those benefits KAIA provides for each and every member, yet it is one of the most vague .The dictionary defines advocacy as “giving aid to cause” or “active verbal support for a cause or position”. Well, the “cause” of KAIA is you.

e often think of government when we speak of advocacy for agents and the independent insurance agency system. How could you not when every year there is an effort to have agents contribute to KIAPAC (the state PAC that enables KAIA to support candidates running for state offices) and InsurPac (the national PAC that enables the Big I to support candidates running for national offices)? But the advocacy of KAIA and the Big I on behalf of agents is so much deeper, from monitoring single issue legislation to working with companies and vendors to speaking to local organizations about the role of agents and specific issues. Advocacy is not easily quantified –you can’t count or measure the results as you can operating expenses, income, and profit. As a business man who likes to know the numbers and compare, I know this can cause heartburn. But let’s try this exercise:

How much is it worth to you to have someone monitoring every bill in the Kansas legislature for language that may negatively impact you and your business – for example, agent fee increases; Licensing requirements; unfair competitive advantages; or sales taxes on professional services?

KAIA President

How much is it worth to you to have updates on any new information that directly impacts your business - such as changes made to work comp statutes?

How much is it worth to have someone educate elected officials about the basic deficiencies of FSA (Farm Service Agency) delivering the crop insurance program over the independent crop insurance agents. This Farm Bill, which includes the crop insurance program, must be renewed by the end of September of this year. Jen McPhillips, the Big I crop insurance lobbyist will be delivering the latest updates on the program at the Kansas Agents Legislative Day. Let me give you a picture of what some pay for these services: a contract lobbyist who makes a living watching legislation and lobbying on issues may be paid anywhere from $15,000 to over $1000,000 per year, per client. To have a lawyer on retainer would cost just as much. To have someone on staff who can research and present on changes to statutes, regulations, forms, etc., would cost a professional salary as well. So, would you rather shell out over $200,000 a year for these services? Or would you rather be a member of KAIA?

How much is it worth to have someone monitoring ev-

There is a saying that goes something like “if you aren’t at the table, then you might be on the menu.”

ery proposed regulation, working with companies and vendors on forms and processes, and participating in work groups, task forces, committee meetings to educate on the role of agents and prevent bad ideas from becoming reality?

KAIA is at the table and keeping you off the menu. Thank you for your membership and may you enjoy your dinner tonight.

How much is it worth to you to have a lawyer available to review legislation, proposed regulations, forms, etc. as well as be available for consultation?

LEE HAYS, LUTC, CSA

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

INDUSTRY PARTNERSHIP

2012 Industry Partnership Program The Industry Partnership Program was initiated by the KAIA Board of Directors to give company partners greater recognition and more options in a single annual sponsorship. Our tiered program allows partners to decide which level of sponsorship is most appropriate. This one-time solicitation allows maximum exposure to the KAIA membership throughout the entire year at our most popular events. This year’s revamped program offers many beneﬁts that were not included before: paid membership dues, priority selection of booth placement at the Rural & Small Conference, special recognition on the online event registration pages and event/ education registration packets; not to mention a free ad in the KIA&B magazine.

DIAMOND SPONSORS

GOLD SPONSORS

SILVER SPONSORS

BRONZE SPONSORS

Accident Fund Insurance Company of America and United

Allied Insurance America First Insurance Columbia Insurance Group Continental Western Farmers Alliance Kansas Mutual Insurance Company

ACUITY Allstate Insurance AMERISAFE ARMTech Insurance Auto-Owners Insurance Bremen Farmers Mutual Insurance Company Buckeye Insurance Group Capital Premium Finance Marysville Mutual Insurance Company MetLife Mid-Continent Group M.J. Kelly Rain & Hail, LLC State Auto TAS Insurance Upland Mutual Insurance, Inc.

Schaller Insurance Agency Kinsley, KS

BHB Insurance Services LLC Mission Hills, KS

Fidelity, LLC Mission, KS

Hendricks Insurance Overland Park, KS

NSI/West Bend Mutual Progressive Insurance

KAIA NEW MEMBERS US Alliance Life & Securites Co Topeka, KS Scott & Associates Lenexa, KS

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

TECHNOLOGY UPDATE

Agency Opportunities in a Time of Profound Change | BY Jeff Yates, ACT Executive Director

We are living through a period where several major transitions are occurring simultaneously creating both opportunities and challenges for independent agencies. Consumer expectations and communications preferences are changing, and hybrid digital/personal relationships are creating enhanced experiences for consumers. Agencies have more choices regarding how they organize, the technologies they decide to utilize, and whether they outsource or not. The attributes of the agency managers of the future will have to evolve as well to succeed in this changed world.

his is an exciting time to be involved in ACT because we have so many future oriented initiatives underway. What are the key consumer, technology and business trends that will impact our future? What will the agencies of the future look like and what will the attributes be for the most successful agency managers?

How will the expectations of our clients change and how will they expect us to communicate with them? How will insurance processes change in an increasingly mobile world, opening up new ways to communicate among consumers, agents, carriers and other business partners? How will agency automation and agent-carrier interfaces continue to evolve, so that we

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

can automate more of the routine processes and free up time for agents to be trusted advisors to their clients – the true “value add” that independent agents provide? ACT has work groups or is participating in industry initiatives that are probing each of these issues. Stay tuned for future

ACT articles as details emerge from these groups. One theme has struck me, however, that weaves its way through each of these groups and that is transition. We are seeing transitions happening with consumers, agencies, agent-carrier interfaces, agency management and other areas. What are some of these major changes and what kind of opportunities do they open up for agencies and brokerages?

Consumers In the next five years, millennials (those born in the 1980s and 90s) will become a major client segment for most agencies, and for some agents already are. These consumers grew up with technology and expect to interact with their business partners when and how they choose – not in the manner that the business partner chooses. These clients may prefer texting, mobile applications and/or using social media over traditional methods such as email. The desire to have communications choices is not confined to just millennials, however. We are witnessing this transition in communications preferences across all the generations to some extent, requiring innovative agencies to offer several communications options to their clients and to begin to maintain these preferences in their systems. Agencies have the challenge of managing multiple forms of communications with clients at varying stages of transition to new communication methods. Agency management system vendors will need to make it easy for agents to retain these preferences in their systems and to integrate with all of the innovative forms of communication, so that agents can easily keep a record of these conversations.

Consumers increasingly want to be able to go online to do research and perform other self-service transactions when they want to, as well as to consult with an agent when appropriate. It is “both/and,” not “either/ or.” In fact, having a personal connection with the client is becoming even more important at this time of growing mistrust of large institutions and government, and independent agents excel at creating these relationships. Agencies, however, will need to free themselves up significantly from routine processes using automation and potentially outsourcing, so they can truly focus on creating enduring relationships as trusted advisors.

agencies which kept their clients well informed during the disasters we experienced last year using social media, taking advantage of its capability to deliver multiple messages to a broad audience instantly. McQuivey emphasizes that the personal relationship based on trust remains a core part of these evolving digital/personal relationships. The opportunity and challenge for agencies are to use digital tools to enhance the relationships they provide their clients, while using the automacontinued on page 26 »

“Era of Experience” At the Fall Big “I” Leadership Conference, Dr. James McQuivey of Forrester Research discussed how we have entered the “Era of Experience” where personal customer relationships are being enhanced by digital components that add value. For example, if an agency has contractor clients, having the ability for those contractors to issue routine Certificates of Insurance on the agency’s website, 24/7, according to preset agency parameters, is a highly valued enhancement to the traditional agency relationship. Another example is provided by those

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

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ABEN’s unique webcast platform and viewer delivers a training experience that is the next best thing to actually being there. ABEN users receive live, streaming video feed of the event, and useful powerpoint presentations and other supporting materials, plus real-time interactivity with ABEN’s expert instructors. In addition, ABEN provides simple e-commerce and an excellent customer service and technical help-desk staff who make the ABEN course experience a breeze…even for the internet inexperienced!.

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KANSAS INSURANCE AGENT & BROKER :: January/February 2012

FROM THE COMMISSIONER

Fingerprinting & Criminal History Checks Several items of mutual interest to both KAIA members and the Kansas Insurance Department will be under consideration during the 2012 Kansas legislative session.

ne of the more topical items for both organizations is the concept of fingerprinting and criminal history checks for new resident agent applicants. Kris Kellim, our governmental affairs liaison, presented much of the following information to the Kansas Legislature’s Special Committee on Financial Institutions and Insurance on Sept. 27, 2011. The current criminal background check system is inadequate and does not provide vital national criminal history information to the department. Without such information, individuals with criminal histories in other states can move to Kansas and apply for a resident agent license without consideration of that criminal history. Further, without a national background check, other states might be reluctant to extend reciprocity to a Kansas resident agent. Fingerprinting will also help the department confirm the identity of all resident applicants. The current resident agent license application requires that an applicant indicate whether the applicant has ever been convicted of a crime, had a judgment withheld or deferred, or whether the applicant is currently charged with a crime. A “yes” answer to this question can be cause for denial or deferment of approval of an application. To ensure the accuracy of the criminal history information provided on an application, the department currently submits the applicant’s name and social security number to the KBI for a criminal history search based on that information. However, the search only includes criminal history records from Kansas.

criminal histories from other states, unless they volunteer the information. Moreover, it is difficult to confirm an applicant’s identity based only on a name and social security number. We want to close this gap in our ability to identify resident agent applicants with out-of-state criminal histories. The only way to achieve this is by replacing our current state-limited KBI “name search” with a nation-wide background check through the KBI and FBI based on an applicant’s fingerprints. It is important to note that fingerprinting would only be required of resident agent applicants as of January 1, 2013. Fingerprinting would not apply to a person applying for renewal, continuation, or adding additional lines of authority to an existing resident or non-resident agent. The value of fingerprinting to the regulation of insurance agents licenses is also reflected in the clear national trend toward requiring fingerprinting. Currently, 20 states have implemented fingerprinting, and five states have passed legislation and are in the implementation process.

SANDY SANDY PRAEGER PRAEGER Kansas Kansas Insurance Insurance Commissioner Commissioner

There are multiple methods for obtaining and processing applicants’ fingerprints. The main differences between these methods are whether a vendor is used and the timing of fingerprinting in the application process. We are still considering these issues. We have met with representatives of the KBI to discuss applicant fingerprinting. Our understanding is that the KBI will not have a problem processing the additional fingerprint jobs, which we estimate will be between 2,500 and 3,750 per year (based on the number of recent KBI “name searches” and examination pass/ fail rates). Fingerprinting of resident insurance agent applicants is not only necessary to protect Kansas insurance consumers, who entrust you as agents with their personal information and money, but will also protect the integrity of your profession from “bad actors.” Fingerprinting of new applicants has been discussed for the past several years among agents, regulatory and governmental officials. Now is the time to make it happen.

General Liability, Automobile, Umbrella, Inland Marine, Surety and Surplus Lines

With such limited information, KID cannot identify resident agent applicants with

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

YOUNG AGENTS COMMITTEE

A Great Group of Professionals After being in the industry for 10 years I think I am finally catching on JO ROSS ERINHENDRICKSON STUTEVILLE, CISR to some of the terms commonly used by the seasoned veterans of the YAC Representative insurance business. Some of these terms are very common and I’m sure you already know them, but others take some time to figure out, so let me spare you some scratching of the head and share what I have figured out.

nsurPac – This is the national political voice of the independent insurance agent. Our donations to this “pac” fuel the fight to keep our industry strong. Each year a goal is set for both the state and the young agents.

KIAPAC – This is our state advocacy fund. It is the political voice of the Kansas independent insurance agent. TrustedChoice - Trusted Choice is an independent agency’s pledge to provide quality products and services to clients. This is a national brand and a large number of agencies bare the Trusted Choice logo. The Big “I” – Okay, this one took me awhile to figure out. This is the national association for independent insurance agents and brokers. Also commonly called “National”. KAIA is the state level, the Big “I” is the national level. AScK – Agency Services Corporation of Kansas is a subsidiary of KAIA and is housed in the same office as the KAIA. AScK has a host of insurance markets that for one reason or another might not be available to your agency on an individual contract basis. The list of companies AScK has contracts with is listed at kaia.com. YAC - Young Agents Committee ( I saved the best for last! Just kidding!!) YAC is anyone under 40 or that has been in the insurance industry for 5 years or less. In Kansas, currently, everyone that fits into that criteria is automatically a member of the Young Agents. So that hopefully means that as someone is reading this article (I am guessing I have a following of maybe 2 and that figure is probably on the high side!) they are realizing that they are a Young Agent and are now excited about the prospect of getting involved. So there you have it, the low down on some terms that might have had you scratching your head. My explana-

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

tion of the above terms are by no means complete and exhaustive, but a short Cliff’s Notes if you will. Aside from hoping someone learns something from the terms discussed above, I wish everyone a wonderful 2012. I always love the New Year. It’s the only time of the year that a “do-over” is acceptable and it makes me hopeful that professionally and personally I can make improvements that will help make 2012 the best yet.

Wishing the same for you in 2012!

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

TRUSTED CHOICE COMMITTEE

Build Your Marketing Strategy One Cow at a Time...Last winter I asked you to make 2011 a year of devotion to your values. Well, the report card is in and apparently you not only devoted yourself to your own values, but also succeeded in demonstrating your own value to others.

ccording to a study sponsored by The Hanover Group and conducted by The Pert Group, “small business owners trust independent insurance agents and commercial insurance carriers significantly more than other financial services businesses.” This year, I would encourage you to own that level of trust you’ve gained and use it in your 2012 marketing plan.

Emphasize value instead of price In today’s crowded insurance marketplace, how does your agency stand out from all the rest? Using the Trusted Choice® branding tools helps but beyond that, what will distinguish your agency from the other Trusted Choice agencies in your town? What COMPELS people to do business with you and keeps your current customers renewing their policies? It better not be only price because sooner or later your customers will find a better price somewhere else. A few years back the book “Purple Cow” was all the rage in marketing circles. As a refresher, the primary thesis of the book written by Seth Godin is that cows, after you’ve seen a few of them, are boring. A Purple Cow though, now that is something you would remember. “Purple Cow” describes something phenomenal, something counterintuitive and exciting and flat out unbelievable. Every day consumers come face to face with a lot of boring stuff-a lot of brown cows-but you can bet they won’t forget a Purple Cow.

So start thinking about how you can put Purple Cow thinking into everything you build and do, to create something truly noticeable that will compel people to want to do business with YOUR agency. To help you get started, take the Purple Cow business development survey designed specifically for insurance agents which will get the wheels turning about insurance agency specific ideas on how to apply Purple Cow concepts to your business.

Build long term relationships You, as an Independent agent, represent a vital thread in the fabric of the U.S. economy: small business. And like any small business, if you were to ask your agency customers to name the very first thing that pops into their minds when they think of your firm, what would they say? They’d probably name a person—a producer or CSR. That’s because in a service business such as insurance, specific people matter. In fact, they matter a great deal— much more than you might expect. Thus, in the how-to-brand material provided to Trusted Choice® agencies, the concept of highlighting agency employees comes through loud and clear. And for good reason. Agencies often focus marketing activities on things, such as new ads, logos and slogans, and overlook the number-one marketing feature of their firms: their people. Independent agents and brokers build their local brands with people. Your employees literally are living the

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

JIM RUNNEBAUM Trusted Choice Committee Chair

brand. They touch your customers and prospects every day in words and deeds. Your brand is not just a name or an entity—it’s a collection of highly skilled individuals. But how can you better promote your people to customers and prospects? Consider hiring a photographer to take professional pictures of individual staffers, and take some group shots as well. Use those photos everywhere— website, print ads, proposal kits, Facebook Page, direct-mail pieces, business cards, for example. Show off the sales staff and the service team—the latter of which is largely responsible for retaining important clients. Remind your customers what makes your agency work—not a single person, but a group of skilled persons. And employees at Trusted Choice® agencies are there to help the consumer navigate the marketplace, offering customization, choice and advocacy.

Focus on increasing market share The people business is still a business. Increasing market share should definitely be part of your strategic marketing plan. Identify markets in which your agency has an edge and the businesses and individuals who fall into those categories. As a Trusted Choice® insurance agent, you already have a leg-up on the competition – you are known to be continued on page 20 »

TECHNOLOGY COMMITTEE

CE Without Leaving Your Ofﬁce Jane Doe lives in Ulysses, KS, a mere six hours and nine minutes from Topeka, one way. In order to attend an 8am class on Wednesday, Jane must drive into town the day before, and stay at a hotel, or she must be on the road by one am. Fun.

f the class only lasts a couple of hours, she can make it home safely that day. If, however, the class is to last all day, she might be stuck another evening, making three days out of the office when all is said and done. I’m exhausted just thinking about the hassle. If you’ve experienced this frustration, raise your hand. Keep your hand raised if you prefer to have your classes delivered to you (isn’t that a concept!). Keep your hand raised still if you hate online classes because you can’t see your instructor. If your hand is still up, put it down before the blood rushes out and makes your hand numb. Your 2012 Christmas gift from the KAIA is a brand new state-of-the-art education center, decked out with the technology to meet all of your needs. Live – streaming video feeds will deliver your class directly to your PC, along with your instructor so that you can participate just as if you had travelled all the way to Top Town. The KAIA joined the Agents & Brokers Education Network (ABEN) last summer and has been working diligently to learn how best to deliver this new wave of online education to your computers. Classes are broadcasted live and recorded to be replayed again at later dates. A host of classes are available for you to experience and can be accessed through the KAIA website www.kaia.com. The recordings are not available on demand, but if you need some last minute CE to fulfill your final credits, you may still access classes through Virtual University as well.

LYLE DAVIDSON Technology Committee Chair

A sound proof partition allows the sixty plus capacity room to be divided into two smaller classrooms complete with smart boards, large screens for premium viewing capability, refreshment stations, and of course the ability to connect to two overflow rooms that dually function as conference rooms for your perusal. Pretty sweet, eh? We’re excited too. The facility will be used to host our Monday Night Receptions during legislative sessions as well as be available for area businesses to rent. The updated spaces have the potential to help us build stronger relationships with our legislators, our affiliates, and the local community, a value which we all know to be inestimable. Members are highly encouraged to take advantage of the spaces to host meetings, trainings, or events of your own. We’ll even broadcast your classes live to anyone with an internet connection and record them so that you can access them again at a later date. Why? We like you. Well, that’s not the answer in its entirety, but we are meant to be a resource and benefit provider for you and your agency. You don’t want to drive twelve hours for CE, and we want to make sure that education is easily accessible. More importantly we want to guarantee that you have a quality educational experience with the best technology available. Join us for the Open House in June. You won’t be disappointed.

Many of you may have already been able to experience the quality of education that KAIA can now offer members when you attended the CAP seminar in Topeka. On June 10, the association will host an Open House – in conjunction with the annual President’s Classic Golf Event - to officially announce the addition of the education center and show off the re-model.

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

BY KERRI SPIELMAN, KAIA EXECUTIVE DIRECTOR

How Does the

Farm Bill

Affect the Independent

Insurance Agent

“C

lose your eyes. Picture a rolling sea of green stalks blowing ever so slightly along with the morning breeze. Silky tassels are just beginning to ease out from the protective cover of the corn husks. Aside from the wind and the cheerful choir of crickets, not a sound can be heard for miles. It’s a pleasant picture, almost medicinal in its soothing effects.” It is also cause for some of the most controversial discussions in Washington, DC.

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

While weather is a large threat to this beautiful picture, it could be argued that the biggest threat to farmers and their crops is not the chance of 70 mile per hour straight-line winds, or hail, or drought. The biggest threat to farmers, crops, and our food supply is politics. While KAIA and the Big I continue to educate the public about where the world’s food supply comes from, the political machinations of Democrats, Republicans, and government bureaucrats threaten crop production and the livelihood of farmers every year. The federally-backed crop insurance program provides farmers with the safety net they need to face the challenges of destructive weather and continue to plant, re-plant, and re-plant again when weather has destroyed hundreds of acres of fields. The crop insurance program is also one of the first to be targeted for budget cuts when the federal government is looking for dollars. Started in 1938, the crop insurance program was made “permanent” in 1980 and has grown successfully with implementation of private market distribution through independent insurance agents. That success is proving to be, at minimum, controversial, at worst, detrimental.

The Controversial: The Farm Bill, by law, must be renewed by the end of September of this year. With budget deficits running in the trillions, every government program receives extra scrutiny and the Farm Bill has a target painted on it. Because it funds multiple programs, sustaining the Farm Bill requires a significant cost, which can be glaringly eye-catching for those new to the subject. The crop insurance program, just one of the programs funded in the Farm

Bill, has sustained billions of dollars in cuts over the recent past but those cuts have come at the expense of the independent insurance agents delivering the program. Over the course of the last two years, many crop insurance agents have had to sell or, worse, close their doors. As the number of agents selling crop insurance declines, so too, does the education and penetration of helping farmers obtain this life-sustaining product. This year of renewal, discussion of cuts seems to focus on direct payments, but that has not eliminated consideration for additional cuts to the crop insurance program, or consideration of restructuring.

The Detrimental: The current administration has demonstrated a solid belief that whatever private industry can do, government can do better. Witness the federal government’s involvement in the auto industry, the financial services industry, the health insurance industry. That makes what the FSA is doing not only scary, but also potentially destructive. The crop insurance program has worked extremely well as a public-private partnership. Furthermore, crop insurance agents, until recently, have grown the program and made it a profitable part of their business. This has attracted the attention of NASCOE (National Association of Farm Service Agency County Office Employees), an association of FSA (Farm Service Agency). In April of 2011, the FSA launched a call to action memo right before their Day on the Hill claiming that they could deliver the crop insurance program cheaper. The Big I responded with letters to elected officials and to RMA detailing the fundamental problems with the arguments that FSA made. In addition,

many farmers sent letters testifying that they only wanted to do business with their insurance agents. Now, NASCOE has commissioned a report from Informa Economics entitled “Cost & Efficiency Analysis of the US Crop Insurance Program: Implications of Additional FSA Responsibilities”. They are using this report along with a letter that calls for restoring fiscal responsibility by assigning a greater role to FSA for crop insurance. The Big I continues to educate RMA and elected officials about the basic deficiencies in FSA offices and the cost associated with moving the delivery from the private market to government employees. Suggesting that growing the size of government when government spending is already out of control should be a no-starter. However, FSA maintains that they would be able to run the program at less cost. Thus, KAIA and the Big I continue to educate RMA and elected officials about the benefits of the independent agent delivery system as well as the benefits of the crop insurance program as a whole. Kansas Senators Pat Roberts and Jerry Moran are strong supporters of the Farm Bill and the crop insurance program. KAIA will be visiting with them, as well as the Kansas Congressional Delegation, at the National Legislative Conference in Washington, DC in April. If you are interested in participating in the Big I Day on the Hill, log on to www.iiaba.net to learn more about the event. Also, be sure to attend Kansas Agents Legislative Day as Big I crop insurance lobbyist Jen McPhillips will be delivering the latest updates on the program. Online registration is available at www.kaia.com. *Katie Hobson, “And the Thunder Rolls…,” KIA&B Magazine, Sept/Oct 2012, Vol 16, Issue 5.

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

Complying with Triple

Net Lease

Insurance Requirements

WILLIAM C. WILSON, JR., CPCU, ARM, AIM, AAM, DIRECTOR OF IIABA VIRTUAL UNIVERSITY

ease agreements can take many forms. One of the increasingly more popular ones is a triple net lease. While it has historically been used more often for the long-term lease of larger properties, it is showing up more and more often in 3-5 year leases of smaller properties, many insured under BOP’s. Here are some things to be aware of.... There are many types of leases...simple occupancy leases, percentage leases often used with retail properties, and net leases, the latter of which is addressed here. Black’s Law Dictionary defines a “net lease” to be a “Lease in which provision is made for the lessee to pay, in addition to rent, such additional expenses as the taxes, insurance and maintenance charges.” Under a single net lease, the lessee pays (in addition to the rent itself) the maintenance and operating costs associated with the property. A double net lease adds property taxes to rent and maintenance/operating costs. A triple net lease, in addition to the rental payment, includes maintenance/operating costs, taxes, and insurance...and that’s where WE come in. Historically, triple net leases have been used for long-term leasing of larger properties because of there alleged positive impact on taxes, cash flow, and other factors. Increasingly, however, agents are seeing this form of lease being used in properties rented by relatively small occupants, many of which are insured by BOP policies. In addition, we’re seeing a wide variety of triple net lease requirements...some effectively require the lessee to pay the landlord’s mortgage interest payments, while others include requirements to insured some of the real property in the structure. For example, here’s a question recently received by our “Ask an Expert” service:

“Question: When a tenant signs a lease and is responsible for heating, air conditioning, plumbing, and kitchen fixtures (excluding removable appliances like a refrigerator), wouldn’t all of the items in the building that they are responsible for (carpeting that is glued to a slab, furnaces, glass, water heaters, air conditioners, sinks, toilets, etc.) be considered Personal Property under Tenants Improvements and Betterments????? If not, how do we insure?” Unfortunately, Tenants I&B won’t help much in this situation. Tenant’s I&B refers to real property “you acquired or made at your

expense.” Since the tenant didn’t “acquire” the property (it was already a part of the building), Tenant’s I&B would not respond. So, what can you do? First, it is essential that the lease be carefully reviewed and it’s probably advisable that the insured have an attorney do this and identify what specific real property the lessee (your client) is contractually required to insure. Agents like reviewing leases about as much as they enjoy rating flood insurance, but this is a critical need. Since few agents are skilled in contract analysis, it is important that the insured and his/her attorney carefully review these legal documents to determine what exposures and risks are being incurred. If possible, delete onerous insurance requirements during the lease negotiation. Explain to the landlord, even if there is a perceived tax or other financial advantage, why it is in his or her best interest to procure his/her own insurance and not rely on that of a tenant. Now, back to the real world, what are the lessee’s insurance options? Depending on the lease requirements, a BOP may not be the best way to insure the property. The ISO BOP, for example, includes only Fire Legal liability for damage to rented property, which is far short of the requirements of most triple net leases. However, many company-specific BOP’s have Tenant Legal Liability coverage instead of Fire Legal Liability coverage included in the form. The forms that include this coverage usually refer back to the property coverage section for the perils insured against. Some BOP’s include additional coverages or coverage extensions (for special sublimits) for real property the insured/lessee is responsible for. Risk management guru (and VU faculty member) Jim Mahurin (who has seen his fill of triple net leases) suggests the following: “Contractual assumptions to replace improvements to rented space create risk very poorly addressed under a BOP. The

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

Damage & Destruction clause of the lease usually states that the Landlord is responsible to rebuild the facility to an unfinished floor, with utility services stubbed at the outer wall. The tenant may be responsible for damage to occupied space, and responsible for loss of space they did not damage. “The first task is to identify risk. What is the tenant’s responsibility for damage to leased space? This is usually not addressed in the Insurance section, but found in the Damage & Destruction section of the lease. “Second, Improvements & Betterments coverage as an extension under contents is often inadequate. This part insures improvements made by the insured or acquired by the insured. It does not address contractual obligations. Further, coverage for I & B under contents will include a theft loading, a cost you should not pay. “Third, the CGL excludes care, custody and control (CCC) claims, and usually won’t pay for damage to space occupied by the insured (other than fire if FDLL is selected). “One suggestion is to add a building component for the value of I & B for the leased space. The cost is lower than contents rates, and the risk is clearly identified, valued and insured. In addition, add Legal Liability coverage form CP 00 40 to remove the CCC exclusion (though there are some downsides to this approach...see below). This will provide coverage for damage to mechanical systems that may not be a part of the I & B, but are responsibilities of the tenant in the event of loss. “This exposure is very serious. Tenants sign leases as officers of their corporation, and then personally. Landlords pursue these contractual obligations. The landlords’ insurance carriers subrogate as well. Major losses in leased facilities are not pretty to watch. “I’m currently examining a couple of leases. One requires removal of the CCC exclusion, and both impose liability for damage to the improvements and

mechanicals. The D & D clauses require the tenant to rebuild from a bare floor, stubbed utility to finished Class A rental space unless the loss occurs during the last 90 days of a ten year lease. “The risk in both locations is very serious. The improvements are serious six to approaching seven figure exposures. Damage to mechanicals could be a staggering sum. Take out the HVAC in July in a 45-story building full of attorneys, and see what the incidental expenses total. “Relying on BOP’s for this magnitude of risk is not wise. (But guess what policy is being used on one of the accounts above.)” As indicated above, the CP 00 40 - Legal Liability Coverage Form may be used to insure such property, but it has one significant drawback found in the special exclusions of the Causes of Loss forms: (a) Contractual Liability We will not defend any claim or “suit”, or pay damages that you are legally liable to pay, solely by reason of your assumption of liability in a contract or agreement. But this exclusion does not apply to a written lease agreement in which you have assumed liability for building damage resulting from an actual or attempted burglary or robbery, provided that: (i) Your assumption of liability was executed prior to the accident; and (ii) The building is Covered Property under this Coverage Form. As you can see, this form does not cover any liability that exists exclusively by contract except for burglary or robbery damage under a lease. By and large, the insured must be negligent for the damages and they must be caused by a covered peril before the policy will respond. So, what to do? Unless the BOP adequately and properly addresses the exposure (which the ISO BOP does not), the lessee/insured is compelled to purchase specific property coverage for these items at adequate limits. In addition, consideration should be given for business income and extra expense

exposures the insured may contractually incur not otherwise covered by property or liability forms, along with any necessary boiler and machinery coverages. UPDATE: Coinsurance Issues One reader asked what were the coinsurance implications under a CP 00 10 Building & Personal Property Coverage Form...would there be a significant potential coinsurance penalty since the tenant is only insuring part of the building under Coverage A?

Here’s what the CP 00 10 10 95 form says about the “building”: 1. Covered Property Covered Property, as used in this Coverage Part, means the type of property described in this section, A.1., and limited in A.2., Property Not Covered, if a Limit of Insurance is shown in the Declarations for that type of property. a. Building, meaning the building or structure described in the Declarations.... [emphasis added] Note that the insuring agreement applies to “covered property” buildings or structures “described” in the Declarations. The coinsurance clause similarly states: We will not pay the full amount of any loss if the value of Covered Property at the time of loss times the Coinsurance percentage shown for it in the Declarations is greater than the Limit of Insurance for the property. [emphasis added] Again, this clause refers to “Covered Property” which is that described on the Declarations page. So, there shouldn’t be a coinsurance problem as long as the declared property is insured to the required value. As always, it’s important to clarify issues like this with the underwriter prior to policy issuance and to explicitly declare the specific property being insured.

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

Pay As You Drive

By Katie Hobson, KAIA Public Relations Coordinator

Understanding Snapshot

“Our first snapshot customer received a 27 percent discount just for the way he drives!! Wow…how cool is that? He still has a chance to save up to 30 percent over the next five months. If you were saving 27 percent on your auto insurance, how much extra money would that put in your pocket?? $300, $500…more?” Streamline Insurance Facebook Page Trusted Choice® Agency Salina, KS

In April, Doug Betts, a Trusted Choice® agent and principal owner of Streamline Insurance, Salina, Kansas, became certified to sell Progressive’s pay as you drive (PAYD) program. By installing a small device known as “Snapshot” in their vehicles, insureds can accumulate up to a 30 percent discount on their

auto insurance. As the Facebook post above demonstrates, within just a month’s time, he had already helped one client save 27 percent on his auto insurance policy. Perhaps you’ve seen Flo sharing the news with her recent commercial in which she “snaps” a “shot” of a driver before giving him a policy. Snapshot is a usage based program that allows Progressive to more accurately determine your auto policy rate by measuring your driving habits, along with the usual data – number of accidents and tickets, age, and car model. The insured saves by driving less, during safer times of the day and by not making sudden stops. Basically, if you don’t already have good habits, it encourages you to drive fewer miles than the average driver, break gently, and minimize your driving time between the hours of midnight and four am. “Anecdotally, we’ve found that customers are very happy with the program,” says Elizabeth Robinson, Marketing Communications Specialist for Progressive Insurance. “Over the past few years that Progressive has been testing and refining its usage-based insurance program, nearly half a million drivers have participated. About one in four drivers who are eligible choose to sign up. And drivers currently enrolled in the optional program are already saving an average of $150 per year.” Progressive’s earlier PAYD program included a GPS feature; yet market research showed that consumers would prefer a device without it. Snapshot has no such capability. It neither tracks your location, nor can it tell if you are practicing to be the next Dale Earnhardt. It does record the time of day and speed per second, but only in the sense that it is reporting the number of miles the client is driving…and how often they are slamming on their brakes.

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

In an interview with Betts, he remarked, “I just think a 30 percent discount is huge.” Betts said he currently has six people enrolled in the program. He is finding out that “even though technology is changing so much, people are still leery” of a. it. He adds that younger policy holders are definitely more into the idea. Snapshot only records your vehicle’s speed, the time of day, if it is ). connected or disconnected, and the vehicle identification number (VIN). It cannot tell if your hair is brushed, your neighbor is chauffeuring because of your broken toe, nor whether you were at the golf course instead of the office Thursday morning. “Snapshot is a whole new way to think about car insurance,” says Robinson. “It’s a voluntary discount program that gives customers more control over their car insurance costs.” By simply having safe and cautious driving habits, insureds can reduce their monthly car insurance costs. Drivers who are constantly making hard breaks or tend to drive in the wee hours of the day may not be ideal Snapshot candidates. However, if they do decide to give it a whirl, there’s no penalty for not meeting the requirements; they just don’t get the discount. Snapshot plugs directly into the on-board diagnostic (OBD) port of your car (a handy picture guide walks you through how to locate thiss for those of us who are not mechanically inclined) and stays there for six months. “We have consumers install a device because our program is vice about how you drive, in addition to how much,” said Robinson. The device records and sends the driving data to Progressive which is then used to calculate their rate. The discount is calculated after the first thirty days of driving. The initial orm over the next neext n discount can increase or decrease based on how you continue to perform five months. our driving Over the six-month period, Snapshot provides reports that track your ot’s online behavior, or that of your fifteen year-old son. “Parents can use Snapshot’s reports to get details about how safely their teen is driving,” Robinson added. C. Moreover, Snapshot is now available in thirty-nine states and Washington D.C. Progressive is currently piloting a similar program known as Test drive, which would allow potential new customers to test out the product. As it is now, only current customd ers can choose to participate in the Snapshot program. “We are alwayss researching to find terested in providing what is appealing to consumers,” Robinson commented. “And we’re interested re control over their car car ar our customers with innovative ways to save money and giving them more insurance costs.” ather simple Ready to get involved? Becoming certified to offer Snapshot is a rather wering seven process. After attending a one-hour training webinar, and correctly answering rance agents of ten related questions, you can join Betts and other independent insurance ncipals looking across the country in providing cost-savings options to your clients. Principals to have their entire agency involved need only send one person to the training which romotional is offered four days a month. Moreover, Progressive has ready-made promotional ts. signage, ads, business cards and sell sheets for Trusted Choice® agents. mpany Partner. Partner err. Progressive is a KAIA Industry Partner and a Trusted Choice® Company omplemenRobinson adds, “We see Progressive and Trusted Choice® efforts as complemenagents ” tary; both will build awareness of and create demand for independent agents.”

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

2012 KAIA Year at a Glance January 24-26

Larry Magill Rural and Small Agents Conference

Ramada Inn

Salina

Best Practices E&O

Ramada Inn

Salina

CISR Insuring Commercial Property

KAIA Office

Topeka

CIC Commercial Property

Marriott Hotel

Overland Park

CISR Commercial Casualty

ServiceMaster

Wichita

Kansas Agents Legislative Day Briefing and Social

Overland Station

Topeka

CISR William T Hold Seminar

Swiss Re

Overland Park

CISR Insuring Personal Auto Exposures

ServiceMaster

Wichita

CIC James K. Ruble

Marriott Hotel

Overland Park

Swiss Re

Overland Park

Hays

February 8 15-17

March

15-16 22

Webinar- Who's Really Insured by the CGL

CISR Insuring Personal Residential Property

April 4

CISR Insuring Personal Auto Exposures

Hampton Inn

CISR Agency Operations

Bryan Education Center

Scott City

25-27

IIABA National Legislative Conference and Convention

Washington DC

Grand Hyatt Hotel

25-27

CIC Personal Lines

Old Town Conv Center

Wichita

May 2

CISR Insuring Commercial Property

CISR Insuring Personal Residential Property

Swiss Re Kansas Farmers Service Association

Hutchinson

Overland Park

Best Practices E&O

KAIA Office

Topeka

CISR Insuring Commercial Casualty Exposures

KAIA Office

Topeka

KAIA Open House

KAIA Office

Topeka

KAIA President's Classic Golf Outing

Topeka Country Club

Topeka

June 5 10-11 11 20

Webinar- What We Think We Know about the PAP

July 9-10 18-20

Trusted Choice Big "I" State Championship

Prairie Dunes CC

Hutchinson

CIC Commercial Casualty

Marriott Hotel

Overland Park

CISR Insuring Personal Residential Property

KAIA Office

Topeka

Trusted Choice Big "I" National Championship

Westin Peachtree Plaza

Austin, TX

August 1 7-10 22

Webinar- Misunderstood Definition of Building in the CPP

27-28

AFIS Part 3

Old Town Conv Center

Wichita

27-28

AFIS Breakouts

Old Town Conv Center

Wichita

Big "I" Fall Leadership Conference & Education Convocation

Westin Peachtree Plaza

Atlanta, GA

CISR Insuring Personal Auto Exposures

Swiss Re

Overland Park Topeka

September 5-8 6 12-14

CIC Agency Management

KAIA Office

CISR Insuring Commercial Casualty Exposures

Swiss Re

Overland Park

CISR Agency Operations

ServiceMaster

Wichita

CISR Agency Operations

Swiss Re

Overland Park

Best Practices E&O

Marriott Hotel

Overland Park

KAIA Management Conference

Marriott Hotel

Overland Park

CISR Insuring Commercial Property Webinar- What the Personal Auto Covers That the Business Auto Does Not

ServiceMaster

Wichita

23 24

CISR Insuring Personal Auto Exposures

KAIA Office

Topeka

October

3-5 18

November 8 14-16 28

December 6

CISR Agency Operations

KAIA

Topeka

CIC Life & Health CISR Insuring Personal Residential Property

Marriott Hotel ServiceMaster

Overland Park Wichita

Webinar- Back to the Basics of Life Insurance

815 SW Topeka Blvd., Topeka, KS 66612

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

You or someone you nominate may be the next Outstanding CSR of the Year! Call for Nominations: Nominations are now being accepted for the 2012 Outstanding Customer Service Representative of the Year award. The national winner will receive $2,000 cash, a gold and diamond pin, and a framed certificate of recognition. National finalists win $500 and a gold and garnet pin. And if you nominate the national winner, you receive a $1,000 cash award! All it takes to enter is a nomination, a letter of recommendation, a competition entry form, and a 1,000-word essay written by the nominee on a customer service topic specified by The National Alliance. Entries are due no later than May 1, 2012. For more information about the contest, the essay topic, and to download forms, visit: www.TheNationalAlliance.com/CSR_Award Kansas Assocition of Insurance Agents 815 Topeka Blvd., 66612 in this area. InsertSW Association name, logo,Topeka, and contactKSinformation 800-229-7048 info@kaia.com Fonts used in thiswww.kaia.com ad are Futura Condensed Light and Medium.

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January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

NASON ASSOCIATES, INC. MARKETING STRATEGY continued from page 10

IS YOUR

trustworthy. In the Pert Group’s study, 86 percent of small business owners rated trust “very important.” That’s your value added asset. That’s the leverage you use – in conjunction with the strategies above – when targeting new business for your markets. Howard Schultz, chairman of Starbucks, relays how an employee in a local store told him once: “We’re not in the coffee business serving people; we’re in the people business serving coffee.” As an independent agent on the front lines in your communities, you’re in the people business as well. And what better way to be in the people business than to let your employees unleash the power of Trusted Choice®?

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E&O Basics: Why

Your

Read

Clients Should Their Policies By CURTIS M. PEARSALL, CPCU, ARM, CPIA, Pearsall Associates, Inc.

Do your clients read their insurance policy? Many agents say that while some may, most do not. This is somewhat baffling since technically, an insurance policy is a contract; would someone agree to a contract without reviewing it? This is an extremely important point in the world of agents’ E&O. Most states require clients to read and understand the policy content, provisions, duties and exclusions—and further require clients to contact the agency directly to make any additions, alterations and modifications if the coverage is not what they thought they requested. Some states actually state that the client has a duty to reject the policy if the terms are unacceptable If a customer takes action against his or her agent, a significant part of the agent’s defense could involve whether the client performed this duty to read his policy. So what should an agent do to ensure that customers read their policies? Start by creating a cover letter urging the insured to fully review the policy for accuracy, including the declarations and

endorsements, and to contact the producer immediately with any questions about policy content. Include this letter when delivering the complete policy to the insured. Keep the letter straightforward and general, such as:

Enclosed please find the renewal of your homeowners policy written with ABC Insurance Co. You will be receiving your premium invoice shortly. It is important that you take the time to read this policy to ensure your understanding of the limits and the coverages. If you have any questions or wish to make any changes to this policy, please contact the agency promptly. You have selected the limits of insurance and we can’t guarantee that the limit will be sufficient in the event of a major loss. We can add or increase coverage at any time.

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

Thank you for the confidence in our agency; we appreciate your business. What if the insured’s still doesn’t read the policy? Actually, client ignorance or a statement such as they didn’t have the time is not a valid defense for the client. Some agencies go a step further and recap the coverages in the cover letter. While this may appear to be “customer friendly” or “good customer service,” this degree of detail could actually pose a problem. The theory behind this is that if you recap the limits and coverages in the cover letter, you are essentially telling your client that they do not need to read the policy since you are telling them what’s in it. Bottom line: It is best to keep the cover letter very general and not restate the limits and coverages.

If your agency plans to personally deliver the policies, you should still include this cover letter with the policies. Make it a practice to bring this letter to the attention of the party that you are delivering the policies to. If your customer will be receiving the policy directly from the carrier, it’s still a good idea to use the above letter with a slight modification. Instead of stating “Enclosed please find your renewal,” use a phrase such as:

You will be receiving the renewal of your homeowners policy directly from the carrier, ABC Insurance Co. When you receive it, it is important….. There are tremendous benefits to this approach. Hopefully the coverage provided is what the client requested. If not, the client should discover upon her review those areas of concern. For example, if he asked for full coverage or “protect me from whatever can happen,” he will now find that every policy has exclusions and limitations. Or she may discover that the artwork she asked to have scheduled in her HO policy is missing. Trust that all would agree that catching this “error” before the loss is better than catching it after. The benefits to your agency are also tremendous. It shows that you want your customers to understand their coverage and there may be situations where the customer asks for coverage modifications that resulted in a program that better suits their needs. In addition, there is no

doubt that this letter has dramatically determined the direction of a number of E&O claims. Curtis M. Pearsall, CPCU, ARM, CPIA, has more than three decades of experience in agents’ errors & omissions insurance in various marketing, under-

writing and managerial capacities. He currently heads his own firm, Pearsall Associates, Inc., and is a special consultant to the Utica National Insurance Group for its agents’ E&O program. He provides E&O risk management information with his blog, www.agentseotips.com, and can be contacted at curtis@pearsallassociates.com.

RELATIONSHIPS IT’S WHY WE STAND OUT FROM THE CROWD “I’m a mom, and for me excellent communication is important. The same holds true for my role as a Bond Underwriter. Developing personal relationships with our customers is essential—it’s who we are.”

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January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

Independent Agencies Prefer

Real Time Over Carrier Portals

The Real Time/Download Campaign was founded to champion the adoption of Real Time1 and Download for independent insurance agencies and companies. Real Time provides agencies with a consistent workflow through agency management systems or comparative raters when doing business with multiple carriers, rather than having to learn the workflow of each carrier portal and enter data multiple times into these portals. Some 7,500 independent agents answered a survey on carrier communications in 2006, leading to the campaign’s launch that fall. They said their primary challenge was dealing with “different proprietary company interfaces.” That challenge was followed closely by “duplicate entry,” “multiple IDs and passwords,” and “training agency staff” on different carrier workflows.2 Real Time workflows were designed to ameliorate the challenges created by carrier portals. Today, carrier portals continue to play a role in enhancing some Real Time transactions and in providing additional information to agencies that is not otherwise available. But portals should not be seen by carriers as a substitute for implementing Real Time transactions for the many agencies which prefer to work through their agency management systems and comparative raters.

Vision Confirmed Over the past five years, the adoption of Real Time has continued to expand

real-time tool can enter IDs and passwords automatically. And it can either return the information directly to the management system or navigate precisely to the information on the carrier website.3

Moving Forward and deliver outstanding benefits to agencies. This confirms our vision that Real Time offers these firms a more efficient and responsive workflow than navigating through various carrier portals. Consider what 3,110 agencies and brokerages told us in the campaign’s latest agency survey, conducted a couple of months ago: • Fully 63 percent of agency management system users employ real-time rating on comparative raters and management systems to access multiple carriers at once. This represents an increase of six percentage points over a similar 2010 survey. The use of real-time rating tools for personal lines saves agencies an estimated 68 minutes per employee per day. • About three fifths (62 percent) of those using real-time rating also use real-time inquiry and service transactions through management systems, most often for billing, policy and claims inquiries, but also for endorsement processing (55 percent for personal lines, 29 percent for commercial). • Real-time inquiry and servicing are saving 50 minutes daily for those employees using the functionality, because the

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

Our industry has an excellent opportunity in 2012 to increase implementation and enhance the benefits being delivered by Real Time to our distribution channel. To encourage more agencies to implement Real Time, the campaign is planning a National Real Time Day on Feb. 29, 2012, during which the campaign, individual vendors, user groups and carriers will hold events to help agency owners and employees fully understand what real-time functionality can do for them. Details for the day will be announced soon. Independent agency owners are busy people, to be sure. But as we enter a new year, the campaign calls on even more agency leaders to take a step back and examine—desktop to desktop—how employees write and service business. Real Time provides strategic benefits that enhance agency productivity. But there’s more: If principals insist on Real Time as the required workflow for all employees, it promotes consistent workflows across the firm, which simplifies staff training, allows managers to monitor employees’ performance more effectively, increases the security of processing, and creates better transaction records for E&O protection.

Recent Survey of Over 3,100 Independent Agents Conﬁrms a Strategic Vision Carrier & Vendor Role More carriers need to offer Real Time and carriers and vendors should continue to enhance the functionality they provide. Agents clearly told us in our latest survey what further improvements in Real Time they want to see: • Have additional carriers introduce Real Time. • Have those carriers offering Real Time provide the full array of real-time functions across the major lines of business, so that agency employees can count on Real Time as a consistent workflow across carriers. • See vendors and carriers continue to improve the real-time functions they do provide so that the response times are faster.4 To give carriers and vendors a road map for implementing “best practice” real-time workflows—whether they are just starting to build out the functionality or seeking to improve and expand the transactions being provided— the campaign has just completed Agency Real-Time “Best Practice” Workflows & Implementation Strategies. In addition, in 2012 ACORD will be developing specifications and implementation guidance to assist the industry in implementing ACORD standards and forms. The campaign also will encourage greater use of realtime transactions and download within the E&S market and for mid-commercial submissions.

About the Campaign Launched in 2007, the Real Time/Download Campaign (www.getrealtime.org) is dedicated to improving the competitiveness of the independent agency distribution channel. The campaign isn’t advocating a specific technology, but a workflow approach that frees up more time for agencies to sell, process and service business. Most agents can leverage tools already contained in their agency management systems or comparative raters. Campaign participants include agents, brokers, carriers, technology providers, user groups, and agent and industry associations. The campaign is led by industry groups and sponsored financially by ACORD and the ACORD-User Groups Information Exchange (AUGIE); Allied Insurance; Applied Systems; Applied Systems Client Network (ASCnet); Artizan Internet Services; CNA; EMC Insurance Companies; Erie Insurance; Grange Insurance; Harleysville; The Hartford; Independent Insurance Agents & Brokers of America (IIABA) and its Agents Council for Technology (ACT); IVANS; Liberty Mutual Agency Corporation; MetLife Auto & Home; Network of Vertafore Users (NetVU); PIA of New York, New Jersey, Connecticut & New Hampshire; Progressive; Travelers Insurance; Vertafore; and Westfield Insurance. 1 Real Time is the ability to click on a button from a client file in your agency management system or comparative rater for immediate access to carrier information on that client. The transaction may be a quote, billing inquiry, claim inquiry/loss runs, policy view, endorsements or a request for information. This approach provides a single workflow for servicing or quoting with multiple carriers. 2 ACORD User Groups Information Exchange (AUGIE) Agency Technology Survey Executive Summary, 2006, p. 14. 3 Fall, 2011 Survey of 3110 agencies by the Real Time/Download Campaign 4 Ibid.

Call For Entries Outstanding CSR of the Year Award Competition Now is the time to identify and nominate an exceptional insurance customer service representative for the 2012 Outstanding CSR of the Year Award competition. The National Alliance for Insurance Education & Research is now soliciting entries for candidates who consistently provide quality service, exhibit strong leadership capabilities, and have made valuable contributions to their agencies and communities. A $1,000 cash award will be presented to the nominator of the national winner; the four national finalists will each receive $500; and the national winner will receive $2,000. Established in 1991, the Outstanding CSR of the Year Award is one of the greatest professional honors a customer service representative can receive. The award is open to everyone, regardless of affiliation or designation. The only requirement is that the candidate be an insurance CSR or have primary duties in the customer service arena. Once nominated, a candidate fills out a form, submits letter(s) of recommendation from professional reference(s), and writes a two-page essay on a designated topic. State recipients of the award receive a framed Certificate of Achievement and become candidates in the National Outstanding CSR of the Year Award competition. From this field, four finalists are chosen who receive $500 each, a gold and garnet pin, and publicity in national publications. The winner of the National Award receives a $2,000 cash award, a gold and diamond pin, and a scholarship for his or her agency/company to any National Alliance program. The nominator of the National Award winner receives a $1,000 cash award. Nominations are currently being accepted by KAIA for the state of Kansas. To nominate an individual, please send his/her name, agency/company, address, and phone number to: KAIA, 815 SW Topeka Blvd., Topeka, KS 66612 or email it to info@ kaia.com. Your nomination can be kept anonymous if you wish. Upon receipt of nominations, candidates will be mailed all materials necessary to complete the entry process. The deadline for submission of the candidate form and essay is May 1, 2012. For further information contact: Erin Lesser, KAIA Director of Education, erin@kaia.com, 800-229-7048.

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

AGENCY OPPORTUNITIES continued from page 5

tion provided to them by their agency management systems, Download, Real Time and electronic filing to free up their staffs to develop a binding personal connection with each client.

Demographic Changes We continue to see a major transition in many of our communities to a more diverse population. The opportunity and challenge for independent agencies are to be able to reach out to and develop personal relationships with these different groups. Some agencies are hiring producers from the various ethnic groups found in their community because these producers understand the culture of their particular groups, speak the language and know how they want to interact with the agency – whether they want to come to the agency, have agents visit them, or deal remotely using email, the phone and the other digital communications offered by the agency.

“...over the next 10 years, as many as 50% of current agency employees and principals will have retired” Changes in Agencies It is sobering to realize that over the next 10 years, as many as 50% of current agency employees and principals will have retired. How can agencies create an attractive work environment for the future generations who expect to have efficient and integrated technologies available to them? Agencies have more choices than ever before in how they organize for the future. They are able to decentralize into very local offices to be even closer to consumers, because of technology that can bind multiple offices together and allow producers and other employees to operate from anywhere. In today’s mobile world, we are starting to see producers in the field almost 100% of the time, using the

We’re experienced, efficient, and accessible. Our knowledgeable underwriters provide quick turnaround on quotes. M. J. Kelly Company delivers personal service and professional results. Call for competitive coverage such as Property, General Liability, Transportation, Garage, Professional Liability, Day Care Centers, Umbrella, Errors & Omissions, Restaurant & Special Events, and many more quality specialty lines.

Remember to finance with M. J. Kelly Company.

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

agency office only when needed for conferences. Many agency employees are able to do their work from home, opening up new opportunities to hire employees who want and need a more flexible work environment. We are seeing a major trend among businesses in general to outsource functions to third parties that are highly efficient and expert in given areas. These outsourcing firms may employ domestic and/ or foreign workers. We are likely to see agencies outsource more in the future, as they have already started to do with their technology and routine processing such as policy and download checking.

The Challenge to Agency Managers The requirements for effective agency management are also evolving. Agency strategic planning has become more important today as agencies have more options with regard to how they will organize and operate in the future. Managers will also have to take advantage of more business intelligence tools in order to effectively manage a more distributed workforce and potentially outsourced non-core functions. The Managers of the future will also have to think through how they will create an online brand

and digital/personal relationship with their clients that effectively differentiates their agency from their competitors. In addition, these managers will need to use their technology to the fullest, so that routine processes are automated to the maximum extent possible and their employees have the time to develop lasting personal relationships with their clients. ACT’s Agencies of the Future Work Group has started to discuss what it believes will be the critical attributes of tomorrow’s successful agency managers. These attributes include leadership skills (managing a business, not just an insurance technician), strategic thinking,

anticipatory, agile, knowledgeable, social, knowing your consumer, good marketing and sales skills, having a communications plan (clear brand positioning), efficient processes, and financial management. Not only is this an exciting time for ACT as a forum where many of these defining issues are being discussed; it is an exciting time to be an independent agent. Creating that personal connection and relationship is becoming more and more important to today’s consumer and independent agents excel in this arena. At the same time, agencies have more choices available to them as to how they organize, manage their staffs, create an effective online brand and establish enduring digital/ personal relationships with their clients in order to thrive in tomorrow’s insurance market.

Jeff Yates is Executive Director of the Agents Council for Technology (ACT) which is part of the Independent Insurance Agents & Brokers of America. Jeff can be reached at jeff.yates@ iiaba.net. ACT’s website is www.iiaba.net/act. This article reflects the views of the author and should not be construed as an official statement by ACT.

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

Have You AScKed Lately?

How to prevent

hacking

and

breaching

hether or not you should have data breach insurance is no longer a question. Your concern should be that you have the proper coverage and that you and your staff are actively using proper safeguards on all of your networked, wireless access and mobile devices.

Recent news on data breaches have begun to outline the threat to small businesses when it comes to personally identifiable information (PII). Businesses in healthcare and

finance are at particularly high risk. In the last couple of months, Dusty Davis, a Trusted Choice® insurance agent for ICI and AScK Board President says, that he has sold several data breach policies and that several have been in healthcare as HIPAA is a concern for anyone in the industry. The latest research from the Ponemon Institute indicates that employee negligence, not malicious attacks is the cause for a 32 percent increase in the frequency of data breaches in healthcare. Moreover, the study reveals that the most expensive data breach event included in this year’s

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

study put a company out $31 million. The least expensive breach for a company included in the study was $750,000. Are you covered? Are your clients covered? Do your companies not carry data breach insurance? Now would be a good time to AScK us. We may have the right product for you. Moreover, if we do not have the coverage you need, we will forward your request to our affiliate members. Davis points out that data breaches are not limited to healthcare and financial businesses. “Almost every business would have some potential exposure to sensitive data, including employee information, customer or patient records or credit card data,” and should definitely have a policy.

â&#x20AC;&#x153;The data held by an insured in their computer system is one of their most valuable possessions,â&#x20AC;? says Jon Rittman, Regional Sales Manager for Philadelphia Insurance Companies. â&#x20AC;&#x153;Client or vendor lists, employee data, and financial information can be found in most business networks and nearly every organization is dependent on their computer system for their daily operations. Businesses are required to maintain third party and employee information in a secure manner to stay compliant with various information protection regulations.â&#x20AC;? That being said, both Rittman and Davis concede that clients are often reluctant to purchase data breach coverage. Rittman says that â&#x20AC;&#x153;larger and savvierâ&#x20AC;? clients are more likely to consider the risk more seriously. â&#x20AC;&#x153;Middle market accounts are becoming more aware of the exposure, but they are still slower to purchase the coverage. Smaller insuredâ&#x20AC;&#x2122;s understand they have the exposure, but many elect to self-insure because they arenâ&#x20AC;&#x2122;t all too aware of the exposures that come with a privacy breach. The most common response we get is that itâ&#x20AC;&#x2122;s cost prohibitive to add an additional line of coverage.â&#x20AC;? Moreover, Davis adds, â&#x20AC;&#x153;applications are difficult to complete and many clients do not understand how the coverage would be useful to them. Data breach is still a fairly continued on page 32 Âť

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January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

KAIA is the leading provider of agent continuing education in the state, managing both the Certified Insurance Counselor (CIC)and Certified Insurance Service Representative (CISR) designation programs of the National Alliance for Insurance Education and Research. • Kansas CE Requirements • Designation Certification • Ethics • Westport E&O Loss Control • Certified Insurance Counselor • Certified Insurance Service Representative • Upcoming CE Opportunities

UPCOMING CIC INSTITUTES

James K Ruble Institute March 14-16, 2012 Overland Park

Personal Lines Institute April 25-27, 2012 Wichita

Commercial Casualty Institute

July 18-20, 2012 Overland Park

Agency Management Institute

Register online for any of these classes at www.kaia.com. Erin Lesser Director of Education Kansas Association of Insurance Agents

Sept 12-14, 2012 Topeka

Phone: (785) 232-0561 Toll Free: (800) 229-7048 Fax: (785) 232-6817

Overland Park

Scan with your mobile device.

E-mail: erin@kaia.com or deanna@kaia.com

CISR CLASSES

FEBRUARY- 2012

APRIL- 2012

22 IC Wichita SM 28 WTH OP Swiss Re

4 PA Hays Hampton Inn 18 AO Scott City Bryon Education Center

MARCH- 2012 8 PA Wichita SM 28 PR OP Swiss Re

MAY- 2012

SEPTEMBER- 2012

2 IP OP Swiss Re 16 PR Hutchinson Kansas Farmers Service Association

6 PA 18 IC 26 AO

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OCTOBER- 2012 JUNE- 2012 5 IC

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KANSAS INSURANCE AGENT & BROKER :: January/February 2012

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For information about advertising, contact Rebecca Spriggs at rebecca@kaia.com, or visit www.kaia.com.

COMPANY

PAGE

ABEN

American Mining Insurance Corp Amerisafe

Insert

Bremen Farmers Mutual Columbia Insurance Group EMC

Kansas Fire/EMS Pak Kansas Mutual Insurance Company

Midlands Management Companies

PAGE 9

M.J. Kelly Company

Nason

Progressive

Back Cover

Project Cap

Ringwalt & Liesche

Secura Insurance Companies

Inside Front Cover

J.M. Wilson

Mid-Continent Group

COMPANY

23 5 19 7

Trusted Choice Upland Mutual Insurance, Inc.

8 20

KFSA, a commercial and traditional insurance agency with ofﬁces in Hutchinson and Dodge City, currently has an opening for a Commercial Accounts Manager. This position reports directly to the Vice-President of Agribusiness Insurance and is responsible for providing insurance and other services to our existing accounts as well as marketing products and services to new accounts. This position travels over 65% of the time. Qualiﬁed candidates must have a valid driver’s license and be willing to obtain and maintain appropriate insurance agent licenses; current insurance agent license or sales experience preferred. Preference will also be given to candidates that have a background in agriculture. Excellent communication and computer skills are also required. Please send your resume to skepley@ provaluellc.com or mail to Human Resources, KFSA, PO Box 1747, Hutchinson, KS 67504.

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

AScK DATABREACH continued from page 29

new concept that can be difficult to grasp. By learning more about this coverage, independent agents can really demonstrate their value to their clients.” In the case that a breach would occur, any business, large or small could take a major financial hit. “If a security breach results in the unauthorized disclosure or private third party information, the insured may be liable for financial damages to third parties and significant regulatory fines penalties and expenses as a result,” says Rittman. “A data breach policy provides a specific solution and acts as a financial backstop by providing defense costs and indemnity resulting from security breaches.” Rittman adds, “Common claims will typically involve allegations of invasion of privacy due to the unauthorized disclosure of private and confidential financial or health-related data; identity theft and the transmission or receipt of a cyber-toxin (aka worm, virus, trojan, etc.).” These types of allegations can be damaging on several levels including your check book, current client relations and your brand. “Many insurance companies are offering lower limits of data breach, which would make it affordable for almost any business,” says Davis. A basic policy should cover losses and liability to a third party should your computer security fail, or be breached. Of course you may need more than that depending on the extent of the breach. “Broader coverage includes defense costs, coverage for compensatory and punitive damages or demands for injunctive relief,” says Rittman. He adds that no two carriers will have the same coverage forms for their cyber policies, so policy reviews

and comparisons are not to be taken lightly. “Forms can include first party insuring agreements that cover loss of digital assets, non-physical business interruption and extra expense, cyber extortion threats, security event costs and cyber terrorism coverage. They can also include third party insuring agreements that cover network security and privacy, employee privacy and electronic media liability.” Of course, having a data breach policy is only one piece of the puzzle. The second piece is to ensure that you are using proper safeguards in day-to-day activity. Virus protection and firewalls should be taken care of by your IT provider. Many businesses may not have thought to create a disaster recovery plan. Considering the number of parties that could be involved with a breach, having a strategy for how you will go about notifying the right people at the right time is necessary. Protecting sensitive data involves everyone in your office. Even simple ideas like using passwords to lock computers and mobile devices can help prevent a breach. When you leave your house to run errands, do you leave the door wide open? Of course not! You would have all kinds of creatures, small, big and probably furry taking up residence. More importantly, you would not want people to think they were welcome to snag your jewelry, annex your prized bug collection, or commandeer your Winchester. You not only close the door, but you lock it – with a key. How is your computer any different? How would you feel about your neighbor using your hide-a-

KANSAS INSURANCE AGENT & BROKER :: January/February 2012

key to let the dog out and leaving the back sliding door open? Not only would you be furious about the snow piling on your brand new wood flooring, but you most likely would not appreciate having your bills exposed to everyone else in the neighborhood. Any document, print or electronic, is considered PII if it contains a person’s first and last name along with one of the following: social security number, driver’s license, passport number, state issued identification, financial account number, credit or debit card with or without the CSV number, access code, personal identification number or password, personal or protected health information.

Control, Alt, Delete.

Chant it to yourself daily; absorb it into your memory; dream about it in your sleep. You can reach all three keys with your right hand. Click them at the same time, go to “Lock Computer” and you are free to walk away for your morning break. Your desktop applications remain as they were when you got up. Only this time, visitors on your computer must use a password to read through the policy you have been working on since 8:00 am. There are software systems that can be useful in providing additional security. The company through which you get your data breach policy should be able to advise you on these topics. Follow-through is pivotal. For more information on data breach, visit the Agents Council for Technology (ACT) website at www. iiaba.net/ACT. The US Chamber of Commerce also has tools and resources online at www.uschamber. com/cybersecurity.

KANSAS FILINGS REPORT Major Line

Subject

Company

Eff. Date

Overall

General Liability Commercial Multi-Peril Commercial Auto Workers Compensation Commercial Auto Workers Compensation Workers Compensation Private Passenger Auto Private Passenger Auto Homeowners Multi-Peril General Liability Workers Compensation Fire & Allied Lines Commercial Multi-Peril Farmowners Workers Compensation General Liability General Liability Farmowners Multi-Peril Commercial Multi-Peril Commercial Auto Workers Compensation Crime Commercial Multi-Peril Workers Compensation General Liability General Liability Fire & Allied Lines General Liability Workers Compensation Homeowners Multi-Peril Commercial Multi-Peril Workers Compensation Workers Compensation Workers Compensation Commercial Auto Workers Compensation General Liability Workers Compensation General Liability Farmowners Commercial Auto Workers Compensation Workers Compensation Fire & Allied Lines Workers Compensation Workers Compensation Workers Compensation Farmowners Multi-Peril Homeowners Multi-Peril General Liability Workers Compensation Workers Compensation Crop-Hail Workers Compensation General Liability Workers Compensation Workers Compensation Workers Compensation Workers Compensation Workers Compensation Workers Compensation Workers Compensation Homeowners Multi-Peril Workers Compensation Commercial Auto Workers Compensation Workers Compensation Workers Compensation Workers Compensation Workers Compensation Workers Compensation Farmowners Multi-Peril Homeowners Multi-Peril

Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate

ACUITY A Mutual Insurance Company ACUITY A Mutual Insurance Company Agri General Insurance Company AMCO Insurance Company American Automobile Insurance Company American Economy Insurance Company American Zurich Insurance Company Auto Club Enterprises Insurance Group Automobile Club Inter-Insurance Exchange Automobile Ins Co of Hartford, CT Bar Plan Mutual Insurance Company Berkshire Hathaway Insurance Group Bremen Farmers Mutual Insurance Company Charter Oak Fire Insurance Company Charter Oak Fire Insurance Company Church Mutual Insurance Company Cincinnati Indemnity Company Cincinnati Insurance Company Columbia National Insurance Company Continental Western Insurance Company Continental Western Insurance Company Continental Western Insurance Company COUNTRY Mutual Insurance Company COUNTRY Mutual Insurance Company Depositors Insurance Company EMC Insurance Companies EMC Insurance Companies EMC Insurance Companies Employers Mutual Casualty Company Farm Bureau Property & Casualty Group Farmers Casualty Insurance Company Farmland Mutual Insurance Company Farmland Mutual Insurance Company Firemens Insurance Company of WA, D.C. First National Insurance Co of America Graphic Arts Mutual Insurance Company Graphic Arts Mutual Insurance Company Graphic Arts Mutual Insurance Company Great West Casualty Company HCA Inc Indemnity Insurance Company of N A Indemnity Insurance Company of N A Liberty Mutual Insurance Companies Liberty Mutual Insurance Companies Liberty Mutual Insurance Companies Liberty Mutual Insurance Companies Liberty Mutual Insurance Companies Lumbermenâ&#x20AC;&#x2122;s Underwriting Alliance Marysville Mutual Insurance Company Marysville Mutual Insurance Company Medical Protective Company Midwest Insurance Company Midwestern Indemnity Company National Crop Insurance Services Nationwide Agribusiness Insurance Co Nationwide Group Nationwide Group Nationwide Mutual Insurance Company Ohio Security Insurance Company Old Republic Insurance Group Old Republic Insurance Group Peerless Indemnity Insurance Company Peerless Insurance Company Phoenix Insurance Company Plaza Insurance Company Republic-Franklin Insurance Company Republic-Franklin Insurance Company Sentry Insurance a Mutual Company Sentry Insurance Group State Auto Insurance Companies State Auto Insurance Companies State Automobile Mutual Insurance Co State Farm Group Travelers Group

02/22/2012 02/22/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 02/01/2012 02/01/2012 02/04/2012 01/01/2012 02/01/2012 02/01/2012 01/01/2012 01/01/2012 01/01/2012 02/01/2012 02/01/2012 02/01/2012 01/01/2012 01/01/2012 01/01/2012 02/01/2012 02/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/09/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 02/01/2012 01/01/2012 01/01/2012 01/01/2012 01/23/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 02/04/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 02/04/2012

0.30 % 1.70 % 20.00 % 4.70 % 11.60 % 7.10 % 4.80 % 0.50 % 0.50 % 10.32 % 9.00 % 11.70 % 5.00 % 15.00 % 15.00 % 10.56 % 1.50 % 3.40 % 3.00 % 2.70 % 6.50 % 9.55 % 9.70 % 10.10 % 5.50 % 4.80 % 5.10 % 6.20 % 4.80 % 0.70 % 6.50 % 2.70 % 5.00 % 8.79 % 4.10 % 5.00 % 7.70 % 17.10 % 5.40 % 5.90 % 10.00 % 20.00 % 3.80 % 7.30 % 12.00 % 13.30 % 27.10 % 3.10 % 2.20 % 6.00 % 3.00 % 9.58 % 10.40 % 1.01 % 4.00 % 5.10 % 5.50 % 6.40 % 13.30 % 5.40 % 11.40 % 8.00 % 9.60 % 9.72 % 3.99 % 5.00 % 7.70 % 2.00 % 1.90 % 10.68 % 34.12 % 17.03 % 27.70 % 8.93 %

January/February 2012 :: KANSAS INSURANCE AGENT & BROKER

More Agents are Selling Preferred Auto Policies and Earning Higher Commission in Kansas with the Signature Agent Program. ®

Congratulations to the following agents who have joined Progressive’s Signature Agent Program in January. Riney C. Dean Insurance, Inc. Liberal

Parker Haskins Dodge City

PIB Insurance Brokerage Wichita

They join an elite group of agents already in the Signature Agent Program. Albright Insurance Winﬁeld

Munson Insurance Agency Arkansas City

Dillon Insurance Agency Manhattan

Roquet Insurance Agency Topeka

Insurance Planning, Inc. Hays

Southern Kansas Agency, Inc. Howard

Krueger Insurance Management Newton

Thomas L. May Insurance Services Wichita

SIGNATURE AGENTS RECEIVE: 15/12 commission on preferred auto business. A $2,000 marketing allowance to co-op with Progressive on advertising or marketing materials. Recognition as a Progressive Signature Agent in select advertising, along with special signage for your agency and identity items for your staff. Free one-year subscription to Progressive’s online directory listing program, ListAgent. Advance access to our new Vehicle Dataﬁll features on FAO. You can join the program in January or July by writing an average of one preferred auto policy a week over the previous six months. Then, just keep writing one preferred auto policy a week throughout the year to maintain your Signature Agent status and beneﬁts. Contact your account sales representative to learn more about how you can become a Signature Agent.