KIA&B- March/April 2012 by Association Publications

Kansas Insurance Agent & Broker March/April 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 March/April 2012

KANSAS INSURANCE AGENT & BROKER

Vol. 17, No. 2 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 Kristi Wilson | kwilson@kellermaninsurance.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

F E AT U R E S 12 COVER STORY Community Involvement at All Levels

18 CIC 35-Year Milestone 19 Coloring Outside the Lines

d e pa r t m e n t s President’s Message 2 Industry Partner Programs 3

21 High Quality CE via Live Streaming 22 What’s the Game Plan

Executive Director | Kerri Spielman Vice President of Operations | Marcia Moore

16 Some Pools Financially Challenged

28 Exit Planning

New Members 3 Agents Council For Technology 4 Commissioner’s Column 7 Young Agents Committee 8 Trusted Choice Committee 10 Technology Committee 11 Education Classes 30 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

Why Not? Why not? Too many times we get caught asking “Why?” when we LEE HAYS, LUTC, CSA should actually be asking ourselves “Why not?” Why not have a KAIA President Facebook Page? Why not use mobile devices in the ﬁeld? Why not invest in a website? By asking the question from this perspective, you force yourself to provide evidence that what you are considering is not a great idea, and more often than not, you’ll ﬁnd that it is actually better than great.

n September, KAIA was awarded the gold level “Excellence in Education” award from the Big I in recognition of the quality education and advancements in education technology that KAIA is making. Along with the Larry Magill Education Center, KAIA has started offering a new wave of education via the Agents & Brokers Education Network (ABEN). ABEN is a user-friendly platform by which classes can be live-streamed to personal computers. Viewers can see their instructors, email questions, follow along with power points, take notes, and get CE all at once. When discussions first started on whether KAIA should get into live-broadcasting classes through the internet, the board of directors asked, “why not?” Dissention was difficult to find in light of the possibility that KAIA could offer live, online and on demand education at the same time. There are numerous ways to get CE online, but the quality isn’t always there. Webcasting provides satisfaction from multiple angles, and mollifies a growing demand from a larger group of people. Moreover, the webcast can be recorded and replayed again and again. From there, the conversation spurned into, “In fact, why not transform half of the KAIA building into a state-of-the-art education center?” As you know, mere suggestions quickly turned into reality. The second floor of the building now houses a 70+ person education center with state of-the-art technology, including smart boards, program recording, and live-streaming capability. Simultaneously serving as overflow to the education center, two additional conference rooms comprise the same cutting-edge technology as the education center.

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. The flexible meeting space can seat 36 in a hollow square or u-shape boardroom setup, 75 comfortably fit a classroom format, and 200+ people can attend a theater or reception setup. Since its completion in early January, the facility has been used to host Legislative Receptions on Monday evenings, legislative and local area business meetings, KAIA committee and board meetings, and KAIA classes. Caterers fall in love with the kitchen on first sight. It is fully functioning with a large work island, full size convection oven, refrigerator, dishwasher, and ice maker. Mini beverage stations in the lobby and education center provide an added convenience and accommodate regulations for moderated classes. The legislators and their staff have been very complimentary and several have already found ways in which the space is useful for their own purposes. The location within walking distance of the capitol makes KAIA a prime event venue. This brand-new, state-of-the-art education facility will take the quality education for which KAIA is already recognized to the next level, bringing added value to each agency’s membership dollar. It has 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. I

A sound proof partition allows the seventy plus capacity room

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

continued on page 32»

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 yearâ&#x20AC;&#x2122;s revamped program offers many beneďŹ ts 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 Heartland

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.

NSI/West Bend Mutual Progressive Insurance

KAIA NEW MEMBERS Earl Herren Insurance Wichita, KS

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

TECHNOLOGY UPDATE

A Millennial’s Take on Social Media | BY Lauren Foy

Independent Agent Mike Foy asked his daughter Lauren, currently in college, to comment on a recent Independent Agent article, “Marketing to Millennials,” by Michael Fleischner (MarketingScoop.com). Lauren provided a very interesting perspective as a future insurance consumer on how she views and uses social media, commercials and the Internet to shop. She also comments on the continuing importance of personal relationships.

“Marketing to Millennials” by Michael Fleischner is a good article discussing the way my generation would look at media and commercials. As I discuss below, I think most of the article’s points are on target. Some, however, are less important

than others. Have a Social Media Presence and Make it Genuine I think one of the better points the author makes is: “Make sure your company has a space among social media outlets. Keep in mind though not to be overly commercial. Millennials can see

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

right through it. Rather, be genuine and let your prospective market understand what you’re really about and what you stand for.” While I am not sure how you can be insincere regarding matters of insurance, I think that the author makes a good point to be sure your

target really understands what you are marketing. One example would be to not make a company look like a friendly personal environment when chances are a customer would have to get through many automated messages or new employees each time they try to contact the company. This just makes people angry. This is common sense, but I do think it has become more relevant in the age of the Internet. Finding a company on the Internet is a lot more of a guessing game than getting personal recommendations or knowing the right people. If you are trying to attract people through this medium, it is much easier to do so when the message and the reality are matching. Engage on a Personal Level Another point the author made was to “Communicate on a personal level.” This is an easy thing to do with blogs or Facebook, etc. I have become a “fan” or “liked” a few companies that I never see again. I have done the same to others, which now seem to haunt my Facebook. I think a medium level of posts is good. If you are on someone’s Facebook home screen too much with uninteresting comments, you are more likely to get hidden. However, I can think of two companies that I see on my Facebook a lot and I am more likely to consider them when I am in the market. The way they do this is by posting relevant posts and doing it on a consistent, reasonable basis. One company usually posts a fact, story or comment relevant to their product and ends the post in a question. This gets a lot of feedback and then is likely to show up on more people’s home screens. Don’t ask me how to take this skill from a sales company and make it relevant to insurance, but this is just one

idea. My generation feeds on being “heard” and finds it so appealing that we give more attention to the social media sites that try to engage us. I learned in my persuasive writing class that the best way to be effective in a blog setting is to use a question at the end so readers will feel like they have a say in your opinion and the topics covered. A good way to use this technique is by making a point with your question or crafting one that will get a lot of response from both sides. This will help to get positive feedback as well as some insight into the opposing side. Be Consistent& Creative Two additional points made in the article are also good ones: be consistent and creative. These qualities help capture the attention of an otherwise preoccupied generation. While we are always multitasking, it is hard to pay complete attention to the radio (online or live) or the TV while trying to do homework, or whatever we might be doing. So consistency and repetition are good tools to use. Creativity will always help a website when dealing with my generation. Also, I am always drawn to the website that looks more professional and attractive. For a generation that has grown up

dealing with the Internet, a functional and appealing website shows that the business is viable. Info & Contacts Must Be Easy to Find One point missing from the article, which is very important to understand when dealing with my generation, is that for the most part we expect instant gratification. Everyone grew up with the Internet getting faster and faster, providing answers to everything at our fingertips. With the invention of online radio, DVR/TiVo/Live Rewinding and Pausing features, the iPod and continued on page 26 »

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

High Quality CE Brought to you Via LIVE Streaming Video

The next BIG thing in Continuing Education • • • •

Live Streaming Video Webcasts utilizing the ABEN platform Significant savings in both time and travel…….view from your home or office! Fully interactive setting – e-mail questions to presenters ABEN Shared State Network allows for a variety of topics to be delivered

A quadrant presentation allows you to watch a “live” instructor, while viewing a powerpoint presentation at the same time.

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!.

Earn CE hours without leaving your office 6

This means saving time, travel and money! Go to: www.kaia.com for more information 800-229-7048

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

FROM THE COMMISSIONER

Our “box score” as of 2011 The 2012 baseball season is almost here, and with spring’s warmer weather, green grass and the crack of the bat comes the passionate duty of keeping statistics.

or those of you who love baseball, you know the game isn’t complete without the need for updated stats. Keeping records at the Kansas Insurance Department (KID) is very similar. We constantly update department numbers so that we can fulfill the “need to know” for our fellow Kansans, consumers and agents alike. We track progress and check our work in a number of areas. In keeping with the upcoming season, here are some of the stats in our “box score” as of 2011. • Kansas has approximately 22,000 resident producers and 76,000 non-resident producers selling in the state. In the top resident agent lines of business, there are approximately 16,000 life agents, 14,000 health agents, and nearly 10,000 each in crop, casualty and personal lines. • More than 225 additional insurance companies have been admitted to the state since 2003. • A point of pride for us: There is always a live person on our in-state toll-free hotline (800-432-2484), and consumers almost always get a same-day response. Customer service is one of our strongest assets. • Our Consumer Assistance Division handled more than 16,000 calls last year. • Since 2003, KID has recovered more than $102 million for consumers in disputed claims over and above what was already paid to them. • Our Anti-Fraud Division worked 685 cases in 2011.

• KID representatives, including myself, visited 37 Kansas counties in 2011 for speaking engagements or to staff exhibits at meetings and conventions. • The number of written complaints dropped again during 2011. During the past two years we have handled 1,000 fewer complaints, something that agents are at least partly responsible for. We appreciate your efforts to inform your customers about their policies. • We produced 47 booklets and other publications last year. If you aren’t using some of our publications, go to www.ksinsurance.org, under “Publications” in the Quick Links box on the home page, and check out the variety of informational booklets and pamphlets we have. • Consumers asked for almost 29,000 copies of publications to be sent to them during 2011.

SANDY SANDY PRAEGER PRAEGER Kansas Kansas Insurance Insurance Commissioner Commissioner

• There were more than 800 insurance-related newspaper articles that appeared in Kansas newspapers during 2011, many of them generated from our news releases, consumer alerts and monthly columns. • Department personnel did nearly 350 media interviews during the year. • KID remitted almost $142 million to the state general fund budget during fiscal year 2011, most of that from premium taxes. I could go on, but those are some of our major statistics during the year. Kansas has a $15 billion/year insurance industry that is going strong, thanks to many good independent agents and strong companies. KID will go to bat for them as well as consumers to keep the industry vibrant, solvent and competitive for all Kansans.

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

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

YOUNG AGENTS COMMITTEE

The Learning Curve In our agency we recently hired someone new to the insurance JO ROSS ERINHENDRICKSON STUTEVILLE, CISR YAC Representative industry. While she was studying for her licensing exam I realized just how much I have learned in the last 10 years. While our new hire was working to remember DICE I was reﬂecting on the learning curve associated with our profession and the importance of staying the course and not letting frustration get the best of you.

f course it doesn’t help that things change all of the time but it’s amazing how the basics, like DICE, eventually turn into truly counciling customers with their risk management.

Young people (yes, I’m generalizing) are eager to learn and assume they are going to learn it all in a short time. This isn’t the case when it comes to insurance. Insurance is a process and evolves over the life of the client. This eagerness to know it all now cannot be what deters young people from our industry. Our new employee won’t be able to sit down and start conducting business just because she has a piece of paper that says she passed an exam. It will take months of training and observing before she feels confident in the day-to-day tasks of a CSR. Almost daily I catch myself saying, “Huh, I didn’t realize that”. The old saying “You Never Stop Learning” is reality. Rather it’s learning that a carrier won’t write a certain risk or my two year old telling me she and her dog look alike, I’m always surprised by something! So I’ve been in the industry 10 years and learn something new every day. I don’t think of that as frustration, but rather as opportunity. Young agents - stay the course! Don’t let what you don’t know get the best of you. You’d be surprised if you did an inventory of what you’ve learned since you first sat down at that computer and took the licensing exam.

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

TRUSTED CHOICE COMMITTEE

How Do You Live the Brand? In our current economy, value is everything. What do you have to JIM RUNNEBAUM offer over your competitor that’s going to be of value to me? UnderTrusted Choice standing and marketing your value proposition are key to branding. Committee Chair Of course, recognition is a major part of the battle too, which is why all members of the KAIA become Trusted Choice® agents upon joining. It’s not meant to work against, but in conjunction with your own agency brand.

he goal is to have consumers understand the value in using an independent insurance agent. By using the Trusted Choice® logo in your marketing scheme, you can help create touches with the brand that are meant to help gain back some of the personal lines market share. KAIA has several resources available to you to help keep down the cost to your agency. Through the state co-op you can receive up to 50% of your dues back for putting the Trusted Choice® logo on your advertisements. On the national level you can receive up to $500 for using the logo in promotional materials. Moreover, KAIA has special offers available to members through Navrats Office Products, based in Emporia, and through IIA Mobile with the Kansas Trusted Choice® Agency App.

Not sure where to start? A few agents have shared what their office is doing to help create brand recognition. Saylor Insurance Service, Inc. “I am a huge proponent in pushing the fact that we are a Trusted Choice® independent insurance agency, as that is what makes us stand out over many others!” says Jan Steinlage, Trusted Choice® agent and Head of Advertising for Saylor Insurance Service, Inc. She adds that they use the Trusted Choice® logo

every chance they get including with promotional items such as wall calendars, small sticky calendars, calendar diaries, magnetic clips, rain gauges, etc. Their website is co-branded, and by clicking on the logo or the words “Trusted Choice®” clients can go directly to the consumer website. Saylor Insurance Service also advertises with Trusted Choice® in almost all of their newspaper clippings and radio commercials. Through the newspaper, Saylor Insurance Service has also run a flyer that explains what Trusted Choice® is and the benefits of having an independent insurance agent. Fouts Ins. & Citizens State Agency Fouts Ins. & Citizens State Agency has been a Trusted Choice® agency for many years, but only recently began using the Trusted Choice® logo. They are in the process of incorporating it into their advertising, stationary and letterhead. “After asking every member of our staff if they knew what Trusted Choice® actually was and what benefits it brought, the responses startled me,” says Larry Fouts, Trusted Choice® agent and President of Fouts Ins. & Citizens State Agency. “We then discussed the Pledge of Performance and some of the benefits of being a Trusted Choice® agent. We would like to get a framed version of this to hang in the front room as we need to get our customers familiar with our purpose as an agency.” Fee Insurance Group, Inc.

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

“We put the Trusted Choice® logo on almost everything we put out there,” says Bob Fee, Trusted Choice® Agent and vice president of Fee Insurance Group, Inc. “It is on our website, the back of our business cards, our marketing material, and most notably on our billboards that we rotate around the communities we are in. Billboards, particularly in Hutchinson, are important as we office on the seventh floor of a bank. We don’t have a physical building and signage.” Fee Insurance Group has also gotten a bit creative and placed their signage in a running advertisement on monitors throughout the Hutchinson YMCA. Raleigh Insurance Agency, Inc. “We use it on some print ads for which we received co-op dollars through KAIA’s Trusted Choice® advertising co-op,” says Lucas Raleigh, Trusted Choice® Agent and producer for Raleigh Insurance Agency, Inc. Raleigh Insurance Agency also took advantage of the KU/KSU radio advertising program this year, purchasing spots on two towers. Wyatt Thompson does the voice-over, providing a “game winning tip” on Trusted Choice® agents and Raleigh tagged their contact info in the last five seconds. They have also just ordered some Trusted Choice® emcontinued on page 20 »

TECHNOLOGY COMMITTEE

Federation, Inc. How do we build a customer centric agency? What does that look like? In what ways can we best leverage technologies to our and our clients’ beneﬁt? How will the eagle snatch the lizard in this virtual universe? These questions were at the forefront of discussion at the Agents Council for Technology (ACT) meeting in February.

obile everything dominated the room – literally. There were more smartphones and tablets present than people. ACT is one of the few groups that encourage attendees to tweet insights, start discussions on Facebook, respond to client emails, and take notes using their mobile devices during sessions. It’s a fairly different concept, but one that did not keep brilliant thoughts from arising. The first time you attend the meeting you pick up pretty quickly that ACT is not designed to build technological devices, but rather to identify the needs of the insurance industry and how they will incorporate with the instruments and tools that are currently at our disposal or should be in the future. One very large effort that has come about from ACT is ID Federation, Inc., a password synchronization framework that will significantly reduce demand on agents and carriers. ACT Executive Director Jeff Yates outlines the project below.

New Industry Organization Points the Way to Alleviate Current Password Management Headaches It is no secret that one of the greatest headaches for independent agencies is the need to deal with the ever changing passwords for each of their carriers and other business partners. One large bank agency manager recently reported that she and her staff have to manage 5500 different ids and passwords for the bank’s agency employees. One of the more exciting developments in our industry is to see several significant players in our industry come together and create ID Federation, Inc., which has recently released the first public version of a Trust Framework that will enable agency employees (and carrier employees as well) to create federated, digital identities that would be trusted by multiple carriers and other business partners.

LYLE DAVIDSON Technology Committee Chair

Here is how it would work. The typical agency (called a “user authority”) would contract with a vendor (“identity provider”), which would create digital identities for each of the agency’s employees (“users”). These digital identities (SAML tokens) would be passed to carriers (“relying parties”) that have established a trust relationship with the agency’s identity provider, pursuant to the Trust Framework that both the vendor (identity provider) and carrier (the relying party) have agreed to. The agency employee (user) would only have to logon on to the identity creation and management tool (identity provider) that the agency has selected and then would be able to conduct business with his or her multiple carriers, whether using Real Time or logging on to the carrier’s website, without entering carrier passwords. The agency and carrier, of course, would continue to be governed by the business agreement that runs between them. We expect some very large agencies to become trusted identity providers directly (rather than using a vendor), and one large bank agent has already done so. Keep in mind that this is a future development for most agents and is not live yet, except for one large agency and carrier. These developments, however, provide the roadmap for the industry to alleviate the current headaches that agents are experiencing with passwords. Agents should start to talk with their carriers about the ID Federation and encourage them to participate in the Federation. In addition, we need the major vendors to build out the tool for agents to use. So far, the two largest agency management system vendors have shown a strong interest in developing an identity management tool for their agencies, which is encouraging. You will find an excellent overview about the ID Federation at http://idfederation.com/in-the-industry/idfiact_2_16_2012 , which consists of the PowerPoint that the ID Federation presented at Feb 16 2012 ACT Meeting.

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

BY KATIE HOBSON, KAIA PUBLIC RELATIONS COORDINATOR

Extreme Makeover Home Edition

Community Involvement at all Levels In college I was a resident assistant (RA) for two years. All of the trainings I went through stressed the importance of building a community. My residents were freshmen women living away from home for the first time. Usually the first week or two they were all too excited about their new found freedom to think about anything else. Yet, as soon as the hype of not having anyone keeping tabs on you 24/7 wore off, they’d start getting homesick, feeling lonely, needing advice about relationships or help with school projects. To whom did they turn? At first it was me, but if I was doing my job correctly, they’d start to depend upon one another. Everyone knew that Arielle always had Tylenol on hand. Heidi and Abigail were not afraid of spiders. Nicole had an insane collection of music. Sam would participate in any rec league sport. Heather knew Science. Sara knew math. They would begin to lean on each other, each lending their leg of support. So what does a twenty something’s college experience have to do with insurance? It’s that little word “community.” Independent insurance agents, many are intricately intertwined with the goings-on of their communities. They attend all the local events, perhaps even sponsor them. They serve on the local school board, sing in their church choirs, and are golfing buddies with their town mayors. They sell more than just insurance. They sell community, or as a colleague says, “I’m selling happy!” The touches independent insurance agents make on a daily basis are about more than selling policies, they’re about serving people. When Loren Middlebusher, Trusted Choice® agent for Ottawa Insurance Agency, first told me about his daughter Gina Hill, and how she was to receive a new home from ABC Family’s Extreme Makeover: Home Edition (EM:HE), I thought, “Oh sweet. How great that I know someone who’s going to be on TV.” I had no idea the impact her story would have on her community… “When we get in the car and go somewhere, and then get back, it’s like holy mackerel!” says (Ret.) SSgt. Allen C. Hill in the

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

What is PTS? interview with KIA&B. Six months later, the Hills still exhibit emotions of astonishment and are utterly aghast when describing the experience. Gina’s response to her husband’s invisible wounds is an inspired story of grassroots advocacy. She has volunteered across the country with Bring Change 2 Mind (BC2M) – a national anti-stigma campaign founded by Glenn Close with the help of several nonprofit groups. The mission of BC2M is to help erase the stigma of mental illness and to provide people who have mental illness, and those who know them, quick and easy access to information and support. It was because of Glenn Close’s nomination that the Hill Family became eligible for EM:HE. Many of you are familiar with EM:HE. You’ve watched countless number of families receive one of a kind homes intricately designed to fit their needs. It’s reality TV at its best, providing forty minutes of feel-good stories and distracting you from the events of the day. After it’s over, you might tell a few buddies how cool the doggie play land was, or comment on how the dialogue was obviously scripted. The truth is that these are real people with real concerns expressing real emotions in need of actual help. In the case of the Hills, the home they received has transcended its basic function of shelter. Their home has aroused a volunteer spirit that continues to flourish in their community and is reaching across the country. This story is about more than a home, more than a man with injuries, but the power of voice, of relationship, of community, and of a truly inspiring grassroots advocacy. “Thank you…Thank you…Thank you,” SSgt. Allen C. Hill repeated over and over again, tears streaming from his eyes, as he gazed upon his new home with ABC Extreme Makeover’s Ty Pennington. Thousands watched from just behind the service men flanking SSgt. Hill, waving miniature American flags

Post-Traumatic Stress Disorder, PTSD, is an anxiety disorder that can develop after exposure to a trauwhilst maintaining a complete matic event or ordeal in which grave silence for this wounded warrior. Millions more viewed on televiphysical, psychological, or sexual sion as the Hill Family finally re- harm occurred or was threatened. ceived a sliver of relief from the When in danger, it’s natural to feel constant worries plaguing them afraid, and this fear triggers many since SSgt. Hill was medically split-second changes in the body to evacuated from Iraq in 2007. This home, built in one week by prepare to defend against the danger, or to avoid it. This “fight-orthe labor, toil, and sweat of a few thousand volunteers would flight” response is a healthy reacfinally allow SSgt. Hill to be the tion meant to protect a person from father and husband he has so harm. But in PTSD, this reaction is desperately desired to be. changed, damaged, and often over activated. People who have PTSD may Home – it is a simple word feel stressed or frightened even that carries a weight beyond its when they’re no longer in danger. measure. Imagine being forced to leave your home, not for lack of love or ardor, but because Bring Change 2 Mind is a non-profit of an invisible wound, PTS, an organization, started by Glenn Close, illness that causes you to relive to help erase the stigma of mental your most terrifying moments illness. Gina Hill stresses that it is daily, weekly, without so much important to “separate the illness as a by your leave. For SSgt. Hill, his new home is more than from the person.” Persons with PTSD a roof over his head. It is the don’t choose this suffering. KIA&B ultimate nexus, the one place has chosen to refer to PTS rather with the capacity for his family than PTSD for that very reason. For to abide together. It’s a precious more information on Bring Change 2 gift from his community; the Mind, go to www.bringchange2mind. one award among his collecorg. tion of medals and plaques that tangibly expresses the gratitude this nation has for his service on a daily basis. appearance on EM:HE. She has gracefully taken the position in stride as she SSgt. Hill was medically evacuated celebrates her family being reunited. from Iraq in November 2007, for injuries associated with an IED. Four months later From day one, Gina has been a he was released from Walter Reed Army major actor in assuring not only that her Medical Center, while still suffering from husband could one day return to their post-traumatic stress (PTS) and traumatic family in Ottawa, KS, but also that he brain injury (TBI), wounds that he will could feel safe living there. carry the rest of his life. It would be four more years before SSgt. Hill could finally When SSgt. Hill first returned, the be welcomed home. Hills’ home was in close proximity to a rock quarry and literally right across the Middlebusher is still in awe. In fact, street from a railroad track. Between the he said that the most difficult part of the booming blasts from the quarry and the whole experience is “trying to figure out raucous sounds from the railroad, SSgt. how my family got this.” Hill was unable to find relief from his PTS, and was forced to find his solace Gina, wife and full time caregiver to elsewhere. He moved to The Pathway SSgt. Hill, has been thrust into the public Home – a treatment facility in California sphere because of her family’s recent in the fall of 2010.

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

PTS causes SSgt. Hill to experience flashbacks in which his mind is transported back to the war in Iraq. Though his body is physically present, SSgt. Hill is immediately thrown into a high state of alert as his mind throttles him into combat. The flashbacks can be stimulated by loud noises, unfamiliar surroundings or large crowds. Thus the house he was living in was a constant threat for him and by extension, his family.

SSGT. HILL SHOWN IN HIS QUIET CHAIR

Gina says that living in Ottawa was never up for discussion. “I couldn’t have done it without my mom and dad and sister,” she says, her eyes beginning to glisten. Though their new home has provided an atmosphere in which SSgt. Hill can be rather self-reliant, his illness is incredibly severe. In fact, the doctors and psychiatrists he has seen all admit that his is the most severe that they have seen. For the most part, someone must always be with him. When Gina has to be away for speaking engagements, her parents or her sister stay at the Hills’ home with Allen, and they make sure he gets his medicines, take him to class, and are there in case something triggers his PTS. Thus their community’s reaction to their need is all the more precious. The average turn-out for an EM:HE project is fifteen to eighteen hundred volunteers. More than three thousand volunteered from across Kansas, the United States, and as far as China to help build the Hills’ home in the sweltering August heat. What is more, the community of Ottawa got together and threw a good ol’ fashioned barbeque, Kansas style, and raised forty thousand dollars for the Hill Family. The feast was a few fish and a couple bread loaves short of the ten thousand-person crowd that showed up for the meal prepared for four thousand. Gina’s parents were both available at the build. Many of the volunteers were friends, and people whom Middlebusher works with regularly. Middlebusher said that there were also people who had come from outside the US to help with the build. Looking bedazzled, Loren said he asked one volunteer from Nova Scotia, “So what brought you to the furnace of Kansas?” The man replied simply, “your daughter.”

GINA HILL AT HOME IN HER KITCHEN.

Hearing the Hills share the ways in which their community has wrapped its arms around their family has the ability to send chills down your spine and imbue standers-by with compassion beyond themselves. Gina is encouraged that her community has captured the spirit for volunteer work. “It’s like it [EM:HE] turned on a light bulb with a lot of people.” Moreover, the Hill Family is making it a priority to pay forward the gift given them.

BC2M and Puppies Behind Bars

A SPECIAL AREA DESIGNED JUST FOR FRANKIE.

Gina learned about BC2M through Puppies Behind Bars (PBB), an organization that sponsors service dog training through prison inmates. Dog Tags: Service Dogs for Those Who’ve Served Us was established by PBB to provide service dogs to veterans returning home from Iraq (OIF) and Afghanistan (OEF) who have suffered a physical injury, TBI or exhibit PTS. PBB introduced SSgt. Hill to his service dog, Frankie. Frankie is always with SSgt. Hill, working around the clock to supply him with the company, affection and whatever else he needs to keep from going into a flashback.

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

Veterans with Disabilities

In the fall, SSgt. Hill and Gina travelled to Joplin, MO, with EM:HE as the show did what it could to provide some sense of retribution for the deadly tornadoes that demolished the city last May. On a long term scale, the couple has committed themselves to serving as advocates on stigma surrounding PTS and other mental illnesses. “We are a proud people,” says SSgt. Hill of service members. “It’s really disheartening when one day you are on top of the world and then the next day you’re at the bottom rung of the ladder and have to depend on everyone around you. You have this overwhelming sense of worthlessness because you were hurt doing what you love.” Speaking to his family’s public persona SSgt. Hill puts forth, “We represent so many things – ourselves, our family, Silent Siren, Puppies Behind Bars, Bring Change 2 Mind, Wounded Warriors…we have a responsibility to these organizations. We’re trying to be good stewards of what God has given us. I have a responsibility to my community to take care of what they gave me.” Humbly he adds, “It’s the best I can do.” As part of their commitment to community, the Hills have started a foundation called Silent Siren. The mission of Silent Siren is to build strong community collaborations that enhance and expand existing community crisis intervention/support for military service individuals and their families. The idea for Silent Siren came about because of Gina’s own hesitation to call 911 for help during SSgt. Hill’s more severe flashbacks. The thought of the situation escalating because of the blaring sound of the emergency vehicles, the same tone used in Iraq to alert the soldiers of incoming fire, or the respondents not being aware of her husband’s illness weighed heavy upon her. After trying to handle the situation on her own several times, Gina finally got brave enough to speak with Ottawa’s chief of police. Together they worked out a plan so that when she called, the team

of responders were alerted beforehand and would turn their sirens off before approaching the Hill’s home. “It’s all about preparedness,” she says of the foundation. There are simple things that emergency responders can do to make these types of calls go more smoothly. Joining Forces, an initiative to equip medical students, faculty and staff with the tools to help veterans with PTS, headed by members of the Association of American Medical Colleges and the Association of AACOM held a press conference in January at which First Lady Michelle Obama was the guest speaker. The First Lady shared heart wrenching stories from families fighting PTS, including a plea for help from Gina Hill. She continued with a call to action for every citizen, “In a time of war, when troops and their families are sacrificing so much, we all should be doing everything we can to serve them as well as they are serving this country. And it’s an obligation that does not end when wars close and troops return home. In many ways, that’s when the real work begins.” The First Lady’s words resonate all too clearly with the Hill Family and with Middlebusher. The Ottawa, KS, community responded ten-fold to the Hills’ need. “I’m amazed at the way the community took this project on,” interjects Middlebusher, as Gina and SSgt. Hill nod their agreement. As an independent insurance agent, Middlebusher is no stranger to service. The Pledge of Performance perfectly sums “As a Trusted Choice® agency, we are dedicated to you and are committed to treating you as a person, not a policy.” The volunteers at the Hills’ build boldly took a stand and showed with action that the Hills are people in their community and as such deserve all the best service they can get. That’s what the independent insurance industry is all about. Trusted Choice® agents are advocates for people, advocates for service, and advocates for community.

In January, the Seattle Times reported that a Madigan Army Medical Center psychiatric team was under review for having “reversed the diagnoses of more than a dozen soldiers previously found to have post-traumatic stress disorder. ” Since that time one psychiatrist has been removed, and more than a dozen soldiers have regained their initial reviews. The soldiers’ diagnoses were changed to “adjustment disorder” which kept them from qualifying for medical retirements which entitle them to lifetime life insurance which can extend to their dependents. The issue was brought to light when the soldiers became concerned that their reviews were wrongly changed in order to “hold down the Army’s retirement and disability costs.” Because of the liability in taking on these wounded warriors, the likelihood of a private company taking them on was almost zero. Gina has already started conversations with Governor Brownback about legislation lacking in Kansas to help one hundred percent disabled veterans. According to Gina, the state of Texas offers the most in terms of benefits for veterans including property tax exemptions, housing assistance, land purchase, home repairs, and a host of other benefits. This type of legislation has caused more retirees to settle in Texas. Moreover it allows organizations like Operation Finally Home, a nonprofit whose mission is to build homes for veterans, to provide private assistance to families without causing financial burdens. They build the home and the family has no added obligations. Operation Finally Home was one of the many sponsors for the Hill’s home. In addition to their volunteer work, they donated $10,000 to the cause, and have committed to paying the Hills’ property taxes for the next two years. In her meeting with the governor, representatives from Operation Finally Home helped stress the importance of a “no property tax benefit” for veterans. Only one percent of the nation serves in the armed forces, so the funding needed is not as overwhelming as it may initially seem. Though legislation did not come through this session, Gina is committed to seeing changes made. KAIA has found a few companies that offer limited whole life up to $25,000 to veterans who are on full time disability. A second option may be a guaranteed issue policy which has a graded death benefit that gradually increases over time. Those companies do not include USAA. For more information you may contact Mark Ricklefs, a partner of Agency Services Corporation of Kansas (AScK) who helps agents broker life insurance. Email Mark at ricklefsm@cfslinc.com. Bernton, Hal. “Army is reviewing Madigan’s reversal of PTSD diagnoses,” Seattle Times, Jan. 26, 2012, < http:// seattletimes.nwsource.com/html/localnews/2017346365_madiganreview27m. html>.

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

By KERRI SPIELMAN- KAIA Executive Director

Challenged

Financially

The following table was prepared by KAIA’s accounting firm, Douthett CPA, P.A. There are currently 15 pools included in the spreadsheet. KAIA just received word that a new pool has begun doing business in Kansas - Midwest Public Risk of Kansas. That data is included. Most of the pools have calendar year ends but the Kansas Association of Homes for the Aging has a March 31st year end, and the Kansas Association of School Boards and the Midwest Public Risk of Kansas, Inc. use a June 30th fiscal year. The Kansas Building Industry Workers Compensation Fund remains the largest in the state by far at $10.6 million earned premium, but that is down from over $12 million last year. Their net loss before dividends and taxes was $602,030. That is an increased loss of about $300,000. They had unrealized gains of $232K – down from the $648k of last year. They showed a total net loss this year of $427K, up from the $175k in 2009, and their year end fund balance decreased by almost 200K.

REVENUES: Premiums earned Ceded reinsurance premiums Investment in County reinsurance Investment income Realized capital gain (loss) Other income

Kansas Building Industry Workers' Compensation Fund

Kansas Association of Homes for the Aging Insurance Group, Inc.

Kansas Automobile Dealers Workers' Compensation Fund

Kansas Restaurant and Hospitality Association self Insurance Fund, Inc.

Wichita Auto Dealers Self Insurance Fund

Kansas Employers Workers' Compensation Fund

Kansas Livestock Association Risk Management Services, Inc.

12/31/2010

3/31/2011

12/31/2010

Total Revenues EXPENSES: Incurred lossess/workers compensation claims Claims adjustment Claims management fees Administration Premium taxes Insurance taxes Excess insurance premiums Other underwriting expenses Other expenses Total Expenses

10,622,234 363,592 294,716

3,697,826 (190,751) 173,762 34,056 -

3,120,383 (174,734) 258,929 -

2,755,473 (234,269) 190,175 11,578

683,127 (75,934) 4,939 -

2,947,801 (204,864) 43,465 -

2,877,724 (227,957) 98,557 -

11,280,542

3,714,893

3,204,578

2,722,957

612,132

2,786,402

2,748,324

8,587,547 859,854 2,435,171

3,060,534 446,389 902,700

2,841,019 464,273 153,840 155,395 -

2,852,881 235,255 686,170 -

244,202 24,000 40,828 23,649 11,976

2,415,411 304,038 729,731 -

2,159,220 425,286 100,228 146,191

11,882,572

4,409,623

3,614,527

3,449,180

2,830,925

3,774,306

344,655

Net income (loss) before dividends and income taxes Dividends paid to members

(602,030) -

(694,730) 399,997

(409,949) 410,000

(1,051,349) -

267,477 310,429

(662,778) -

(82,601) 450,000

Net income (loss) before income taxes Provisions for income tax expense (benefit)

(602,030) (174,677)

(1,094,727) -

(819,949) (196,000)

(1,051,349) (357,457)

(42,952) 741

(662,778) (229,708)

(532,601) (63,239)

(427,353) 43,188 (50,206) 232,082 2,514,324

(1,094,727) (600) 303,434 3,190,056

(623,949) 9,200 1,847,964

(693,892) 13,241 110,905 1,219,436

(43,693) 947,347

(433,070) (354,790) 56,010 (239,539)

(469,362) (16,467) (1,974) 122,298 2,065,776

Net Income (Loss) Change in nonadmitted assets Change in provisions for reinsurance Change in net deferred income tax Change in net unrealized gains (losses) on investments Members' fund balance, beginning of year Members' fund balance, end of year

Overall, most of the pools saw a drop in their fund balances for 2010. The net worth for the Kansas Association of Homes for the Aging decreased by almost $1 million. Their net loss before unrealized gains was almost $1.1 million, continuing a trend of decreasing income. However, they had unrealized gains of over $300k to offset the decline in income. The Truckers pool made some substantial progress in decreasing their negative balance. They climbed from a negative $983k in 2009 to a negative $142k in 2010. Their income climbed from $2.9 million to $4 million, but their claims dropped from $3.1 million to just under $1 million. The Truckers pool operates at one of the highest administration costs climbing from $825k in 2009 to over $1 million in 2010. The next closes in administrative costs are the public entity pools – KCAMP ($986k), KMIT($946K) and KWRCC ($807k). The Kansas Employers Workers Compensation Fund slipped into a negative net worth picture in ’08 of $468k. They slightly improved, climbing to a negative $255k in ’09, but dived to a

2,312,035

2,398,163

1,233,215

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

649,690

903,654

(971,389)

1,700,271

Kansa of Com Industr Comp Corp

12/3

negative $971k in 2010. That’s not an unusual position for them to be in as they’ve had a negative net worth for 11 of their 16 years of operations. Their claims more than doubled, their administrative costs went up and their nonadmitted assets went from a negative $9,425 to a negative $354k. Assessments on their members have been significant and have begun affecting their member count. The Livestock association pool had another steady year. They ended the year with $300k less than in 2009, but higher income offset an increase in claims. Kansas Restaurant & Hospitality Association’s pool had a very challenging year. Their premiums earned dropped from $3.2 million to $2.7 million, while their claims increased $600k from $2.2 million to $2.8 million. The fund balance dropped from $1.2 million to just $650k.. The Kansas Auto Dealers ending balance declined by $600k but they also paid out $410K in dividends to their members. Their premiums earned have remained steady at around $3.2 million. In fact, the Kansas Association of Homes for the Aging Insurance Group, the Kansas Automobile Dealers Workers’ Compensation Fund, the Wichita Auto Dealers Self Insurance Fund, and the Kansas Livestock Association Risk Management Services, Inc. all paid dividends to their members. Something the public entity pools have not done, though their ending fund balances climbed from 2009 to 2010.

KCAMP, the counties multi-line pool, increased their fund balance by almost $2 million dollars, but did not pay dividends to the members. The Kansas Association of School Board Workers Compensation Fund increased its end of year balance by almost $1 million, but did not pay dividends to the members. KERIT (Kansas Eastern Region Insuance Trust) is the public entity pool for cities and counties that writes primarily in Northeast Kansas. They had a realized net loss $570k in 2010. Their net worth decreased from $5.2m to $4.6m – the third consecutive year to decrease. The Kansas Workers Risk Cooperative for Counties (KWORCC) had another increase in their fund balance going from $10.6 million to $11.3 million, but did not pay dividends to their members. KMIT, the cities’ workers compensation increased its net worth by $1million from $3 million to over $4 million, but paid no dividend to its members. KAIA members who would like a complete copy of any specific audit may contact the office. We encourage you to call us is you have questions about any specific pool as well. Since pools were first authorized in 1984, eleven pools have either surrendered their certificate to operate, become dormant continued on page 32 »

Public Entity Pools

s Chamber mmerce and ry Workers' pensation poration

31/2010

794 -

KHA Workers' Comepnsation Fund

Medicalodges Affiliates Workers' Compensation Self-Insurance Pool

Kansas Truckers Risk Management Group, Inc. Trust

Midwest Public Risk of Kansas, Inc.

12/31/2010

10/31/2010

12/31/2010

6/30/2011

4,506,871 (552,159) 145,950 -

557 -

4,078,761 (363,277) 56,067 7,108 -

6,641,077 17,496 13,307 -

Kansas Counties Association Multiline Pool

Kanasas Association of School Board Workers Compensation Fund, Inc.

Kansas Eastern Region Insurance Trust

Kansas Municpal Insurance Trust

Kansas Workers Risk Cooperative for Counties

12/31/2010

6/30/2011

12/31/2010

12/31/2001

6,122,931 (6,168) 500,727 -

3,873,371 (188,377) 392,269 -

2,613,130 142,826 -

5,218,103 (348,127) 52,768 -

5,954,686 209,727 -

794

4,100,662

557

3,778,659

6,671,880

6,617,490

4,077,263

2,755,956

4,922,744

6,164,413

102,110 -

3,543,195 1,106,627 -

11,506 -

994,959 317,717 1,009,093 -

6,011,065

2,938,088 317,345 986,017 55,682 554,699 -

2,871,512 427,685 38,460 -

2,056,214 288,759 51,156 500,078

2,737,351 183,748 964,233 -

4,275,383 190,000 807,391 126,923 461,228 -

102,110

4,649,822

6,829,069

2,896,207

412,981 389,293 12,300 3,430

11,506

2,321,769

4,851,831

3,337,657

3,885,332

5,860,925

(101,316) (32,093)

(549,160) (187,991)

(10,949) -

1,456,890 -

(157,189) -

1,765,659 -

739,606 -

(140,251) -

1,037,412 -

303,488 -

(69,223) -

(361,169) -

(10,949) -

1,456,890 396,261

(157,189)

1,765,659 -

739,606 -

(140,251) -

1,037,412 -

303,488 -

(69,223) 69,223

(361,169) 14,597 128,324 1,052,115

(10,949) 34,732

1,060,629 (362,465) (840,672)

(157,189) 172,576 68,765 807,826

1,765,659 4,728 10,417,428

739,606 344 4,470,403

(140,251) (429,140) 5,255,300

1,037,412 (23,531) 3,059,407

833,867

23,783

(142,508)

891,978

12,187,815

5,210,353

4,685,909

4,073,288

303,488 378,124 10,650,671 $

11,332,283

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

35-Year Milestone for the CIC Program in Kansas KAIA first began conducting the Certified Insurance Counselors (CIC) Program 35 years ago, in partnership with the Society of CIC, and helped to take the program nationwide. There are currently 239 CICs in Kansas with more than 500 participating in the program annually. Kerri Spielman, KAIA Executive Director stated, “Today it is widely respected as a symbol of advanced knowledge and achievement.” She adds that this anniversary “represents professional accomplishment, advancement, commitment, challenge, and much, much more. Most importantly, it is a sign of stability in a professional education program.” Today, there are more than 31,000 designated CICs and the program is conducted in all 50 states and Puerto Rico. Kansas began conducting the CIC program in 1977 and has successfully done so for

35 years in 2012 along with Iowa, Kentucky, Montana, North Carolina, Oklahoma, South Carolina, Virginia/District of Columbia, Utah, and Washington. The Certified Insurance Counselors (CIC) Program is the cornerstone of The National Alliance for Insurance Education & Research, which provides a wide range of educational programs and resources to the insurance and risk management industries. It originated in 1969 in Austin, Texas, and was designed to provide insurance and risk management professionals with a designation program that would lend professionalism and integrity to the insurance industry through education.

The CIC designation improves an agency’s bottom line. According to the new Producer Profile, published by The National Alliance Research Academy, “Commercial lines producers with five or more years of experience and the CIC designation earn 30% more than those without the designation: $134,000 vs. $103,000.” All institutes deliver current, technical knowledge, and the curriculum is developed and taught by active insurance practitioners. In addition, every CIC institute is tailored to the laws and regulations of the state in which it is being conducted. Institute faculty were selected based on their expertise, pre-

Only 30 percent of all designated CICs passed all of the exams on their first try. Many new participants find the level of the examinations difficult. Also, to obtain the CIC designation, many participants must take an institute that covers an area of insurance they are not familiar with. The difficulty of the exams is a key reason why CICs are proud of their accomplishment, and confident that successful completion puts them among the elite of their industry. Success in all five institutes represents well-rounded insurance knowledge. From the inception of the CIC Program, there has been an annual update requirement to maintain the CIC designation. This lifelong commitment ensures that each designee continues to learn and

update his or her knowledge. By maintaining the designation, the value and high standard is upheld. sentation, Currently, there are more than and teaching ability, 30,000 designation-holders who have making available—for what not only achieved the CIC designation, many considered the first time—truly but have maintained it—some for 20 practical, professional education, which or more years! In 2010, the CIC Board carried with it a recognized designation. of Governors approved the University Agendas included: new coverages, new Associate Certified Insurance Counselor sales methods, new markets, how to write (UACIC) Designation Program which a complicated risk, retention of risks, and gives students enrolled in major colleges many other facets of the daily operation and universities the opportunity to begin of the successful insurance business. their CIC studies as a part of their curThe CIC Program, covering five riculum. They will graduate with an extra major areas of insurance including Comcredential of practical use in the insurmercial Casualty, Commercial Property, DESIGNATION HOLDER STATISTICS FOR KANSAS ance industry. For additional infor10-14 15-19 20-24 25-29 30-35 mation about Years Years Years Years Years the CIC Program and 65 56 47 26 15 educational opportunities in Kansas, go to www.kaia.com, or call contact Erin Personal Lines, Life & Health, and Agency Lesser, KAIA Director of Education, (800) Management, provides practical infor229-7048 or Erin@kaia.com. mation for the everyday operation of an insurance agency.

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

By KERRI SPIELMAN- KAIA Executive Director

Coloring Outside the Lines Do you remember when you loved to color? Maybe you still do . . . with your children or grandchildren? Do you remember the smell of the crayons? The incredible difference between the black and white picture with its stark lines and the brightness of the completely colored picture? How many of those pictures did you work really hard to stay inside the lines so the picture would be “perfect” – everyone looking at it would know exactly what it was, admire the attention to detail – your effort to stay inside the lines? Now go back a little further in your mind and see if you can remember the days of your childhood when just putting color to paper was all that was needed to get credit for a job well-done. Do you remember being able to just scribble a couple of times on the picture and getting accolades from Mom or Dad? Do you remember those pictures being hung on the refrigerator for everyone to admire what an outstanding job you had done – coloring inside the lines, coloring over the lines, and coloring outside the lines? I don’t remember them, but I’m pretty positive it happened. I can tell you I specifically remember the day that coloring inside the lines became THE goal in my life. My older brother said something nice about a picture I had colored (funny how the opinions of those older siblings make such an impact). That’s all it took. From then on, every picture I colored was an effort to win those praises again. Throughout elementary, middle and high school, it’s drilled into us to follow

the instructions, follow the rules, and color inside the lines. Societal norms demand you conform. It wasn’t until college that “thinking outside the box” and coloring outside the lines became possibilities again. Then it was a daily challenge to force yourself to re-think the way you had been trained – and sometimes, it wasn’t possible. That was then. I am truly amazed at how the education system has changed. Today, every child is not expected to fit inside the box that was drawn in the mid 1900’s; and the goal of “the system” is not to produce clones who all think and color the same way. Children are encouraged to think and express themselves in unique ways. Education is not just delivered from black and white text books anymore. Education is delivered in radiant, eye-popping Technicolor. To explain – it’s interactive; it’s through smart boards, live programs, on-line programs and hands-on experience; it’s offered through different mediums. And children are encouraged to color outside those lines. This is now. Apply this to the business world. The average age of an agency owner is the early to mid-50’s. You were trained to color inside those lines. Business is conducted 8:00 to 5:00 unless you need to work longer. One monitor is enough to see what is on your CPU. A cell phone is a necessary evil. Education is delivered from a book or a powerpoint (black and white). You sit in the

classroom, listen to the instructor and answer the questions. You get rewarded with a certificate that basically says you followed the rules and colored inside the lines. And then Generation X, Y, and Z hit the office. They challenge every norm you have ever lived by. They want flexible continued on page 32 »

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March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

LIVING THE BRAND continued from page 10

broidered hats through Navrats Office Products on which they received a 25% discount since they are KAIA members. The Davidson Agency The Davidson Agency has also incorporated the Trusted Choice® logo on all letterhead, envelopes, billboards and road signs. Moreover, they include both the Trusted Choice® and Big I logos on all of their office signage. In addition, The Davidson Agency and Trusted Choice® are very present at their local golf course on bag tags, and tee and sand boxes. They put the logo on office shirts, license plates and magnetic car signage. Rather than

reinventing the wheel, they use the pre-made radio commercials from the www.trustedchoice.com/agents and through the KU/KSU Radio Advertising Co-op that allow for short tags with their agency contact information at the end. Most recently, The Davidson Agency has purchased the Kansas Trusted Choice® Agency App which dually acts as a marketing and service tool. “We’re also considering answering the phones: Davidson Agency, your Trusted Choice®, this is [insert name], but we haven’t made the commitment yet,” shared Lyle Davidson, Trusted Choice Agent and owner of The Davidson Agency.

The Trusted Choice® committee is comprised of agents and company representatives from across the state who are committed to working with KAIA members to increase awareness of the independent insurance industry. I would encourage all agents to take advantage of everything that is available through Trusted Choice®. We are always looking for creative ways to help agencies market their value with that of Trusted Choice® and appreciate any feedback you can provide on how your office is living the brand. You can share your ideas at info@kaia.com or facebook.com/ bigiofkansas.

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KANSAS INSURANCE AGENT & BROKER :: March/April 2012

By ERIN LESSER- KAIA Director of Education

High Quality CE

via

Live Streaming Video

Are you tired of having to take a whole day out of the office to attend a continuing education class, plus having the expense of gas at over $4.00 a gallon to get there? Well, KAIA has the answer for you. ABEN, the Agents and Brokers Network, can bring the class to YOU via your laptop or desktop computer! KAIA has partnered with several other Big I state associations to bring you highly relevant, interactive, and professionally produced continuing education programs in the most convenient and economical way possible using webcast technology. ABEN is managed by Business Professionals’ Network, Inc., the leader in association-based continuing professional education, using video streaming technology for the delivery of highly produced, valuable information to help the insurance professional succeed. ABEN is intended to provide the insurance agent/ broker with an efficient and effective medium for receiving live, as well as archived, educational courses. What’s the ABEN Difference? Webinar technology has, for some time, been a common offering of many agent and broker associations. Combining PowerPoint slides delivered via the internet with audio of the instructor, either by telephone or internet, the webinar format allows for the delivery of educational content in a convenient, but visually limited fashion, in an increasingly visual media environment. By contrast, the

ABEN network employs streaming video technology over the internet providing live, full motion video of the presenter, high quality audio, along with coordinated PowerPoint slides. The ABEN platform, provided by Business Professionals’ Network and its technology partner, BizVision, allows the end user to fully participate in the webcast by downloading written materials, emailing questions to presenters in real time, making notes in the viewer “notes” area, and emailing them to themselves for later use. ABEN programming features enhanced production values and formats appropriate to the video medium. Presenters interact with each other as well as the ABEN participant. This delivers an educational experience that is engaging, interesting, as well as professionally rewarding. It is this unique combination of valuable information delivered using interactive live, video and audio internet technology that define The ABEN Difference. There are many more courses available for you now in the ABEN catalog. Please visit our website to see the most current class offerings. More courses are being added every week, and unlike other online courses ABEN webcasts do not require an exam!

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

By KATIE HOBSON, KAIA Public Relations Coordinator

What’s the Game Plan Jude shook his head up and down – yes. Then again, how could he not be when our team is winning 4-0? I always ask anyway. I want to make sure my seven year-old friends know that even though I may raise my voice to direct them to a better position on the field, or to strongly encourage them to aggressively go after the ball, my ultimate goal is for them to enjoy the game. They don’t play because they want to wake up early on Saturday morning, or because they are hoping for a college scholarship. Seven-year old boys play soccer because their friends are doing it, and because their parents need them to have a positive outlet for all of that energy built up from hours of tediously sitting on hard plastic chairs exercising their brain cells. As a member services provider, KAIA has a similar desire to ensure that members are completely satisfied with the game plan. The Larry Magill Rural & Small Agents Conference is the biggest event of the year. Planning is on-going. Staff and committee members are constantly considering speakers, classes, the schedule, even down to minute details like how big the font on the badges should be. Every year, attendees are asked to provide feedback on how the conference can be improved, likes, dislikes, and more. “The confer-

ence exists to provide

services for the agents. We want to be sure that we’re putting forth our best effort to meet or members’ needs,” says KAIA Executive Director Kerri Spielman. It can be no surprise then that moving the location of this already successful conference was in no way a simple decision. “I have been on the Events Committee for several years… the topic of moving the Rural & Small

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

Agents Conference has come up several times in the past,” says KAIA Events Committee Chair Kristy Wilson, a Trusted Choice® agent at Kellerman Insurance, Inc. “I have never

been a fan of moving this event due to its success. My feeling was ‘why fix it if it ain’t broke?’ In fact when I left the October Board Meeting and there was discussion of having

a combined education and events meeting at Junction City, I said there is no way I want this moved.” The success of the Larry Magill Rural & Small Agents Conference has never been called into question. Carole Merkel Tozier, a Trusted Choice® agent at Schifman, Remley & Assoc., Inc, was the Director of Education for the KAIA at the inception of the Rural & Small Agents Conference. She said that the idea came from some of the larger Big I associations who had shared at the national Education Convocation what they were doing to help meet the needs of the smaller and more rural agencies. At the time, the only true conference in Kansas was the annual convention, or what we now call Management Conference, held in the Kansas City area. By the time an agent would drive from the southwest corner of Kansas to the very northeastern corner, pay for a room, attend the conference, and make the trip back, they could be out of the office for nearly a week. Hosting a conference in a more central area of the state allows for shorter drives and less time out of the office so that agents can get their CE in one sweep, meet up with their company representatives and network with other agents. Moreover, hosting in a smaller city keeps costs down across the board. KAIA’s Education Committee jumped on board with the idea and the conference was started. “We had eight or nine exhibitors the first year and probably 100-150 agents. And we had two hospitality rooms if you can believe that,” Carole reminisced. From there, it continued to grow into the largest conference in the state of Kansas for independent insurance agents. So why go through the turmoil and aggravation of working with a new location? Over the past several years, it has become glaringly evident to the staff, the board, and KAIA members alike that, while comfortable and familiar, the Ramada Hotel & Conven-

tion Center was no longer meeting the logistical demands of the conference. Every year the quality of education, the opportunity for agents and company members to connect, and the chance for social camaraderie are praised. Yet even agents and exhibitors point out the need for change. After the 2011 conference, the events committee decided that they could no longer let the issue simply lay, hoping for a genie’s lamp to magically appear.

The only option was to go to the mattresses. There are so many elements to consider in this kind of transition. “Where do you go?” is of course the over-arching question. Keeping the conference in Salina was impossible as the Ramada Hotel & Convention Center is currently the only facility large enough to host the conference. Then of course there are the considerations of driving time, centralized meeting,

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

whether main highways are accessible, travel for out of state attendees, keeping the costs similar, and most importantly, the task of keeping the integrity of the conference intact: taking a conference to the rural and small agents. What about Dodge City? How about Hays? Could it be held in Great Bend? Should the conference be rotated among multiple locations? Would rural and small agents be ok with hosting in a city like Wichita as it’s centrally located? Is Manhattan too far east? The suggestions go on and on. Everyone has a different idea about the most suitable location for Rural & Small. September 2011, the genie finally appeared. The Geary County CVB invited nearby businesses to check out what they could offer an organization in the way of convention space and activities. KAIA Events Director Beth Roybal and Education Director Erin Lesser took part in the two day tour of the area. When they returned, both were bubbling with excitement. The answer had been laid out before them. Everything Rural & Small needed in terms of space and accommodations would be available through the convention center in Junction City. They quickly began sharing the possibilities with the KAIA Events and Education committees, hosting joint meetings when possible. It became evident that the agents who would be most affected by the move to Junction City would be the Southwest agents. Moving east forty miles means more driving time for an

Survey Results Indicate Members Want Change Moving the Larry Magill Rural & Small Agents Conference location has always been a hot topic on the post-conference survey. This year’s survey showed that three additional areas have become areas of interest, including a one day registration option, a social event registration, and dining facilities. In response to the survey results and comments, the KAIA Events and Education Committees will be considering each of these items at their upcoming meetings.

already lengthy car ride. They had to become a part of the conversation.

“Moving the conference further east makes travel easy for the Kansas City

2013 Class Topics In light of legislation regarding the Farm Bill and inevitable changes to the federal crop insurance program, a class focused on crop insurance and relative topics will be added to the 2013 Larry Magill Rural & Small Agents Conference. The usual suspects will be back as well. If you have any topic suggestions in the following areas, please contact Erin Lesser, Education Director, Erin@kaia. com or (800) 229-7048. Life/Health Commercial Lines Personal Lines Technology Ethics Errors & Omissions

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

and Topeka agents,” says Jackie Borth, a Trusted Choice® agent for Borth Agency, Inc, Montezuma, KS. Borth and one other agent, who also happens to be her son, take turns attending the Rural & Small Conference. The drive to Salina is already three and a half hours without stops. While forty miles may not seem to be a lot to some, it makes their round trip over eight hours long. Despite her dissent, Borth has already reserved a room at the Marriott for next year’s conference saying that the conference itself is always, “quite well done.” Phil Walrod, Trusted Choice® agent for Walrod Insurance Services, Elkhart, KS, told KIA&B that his main reason for attending the conference every year is that he almost never sees a

company representative in his office. Until recently, he was the only agent in his office. Rural & Small allowed him to make those personal connections he wouldn’t have opportunity for otherwise. In regard to the move he said “It doesn’t

matter. Elkhart is a long way from anywhere. Another hour to Junction City isn’t that big of a deal.” He admitted the complications in moving the conference around too much. Moreover he adds, “Sounds like Junction City is going the extra mile.” The Junction City Courtyard by Marriott has a fresh updated look and is located right off of I-70. Even though there aren’t quite as many rooms as the Salina convention center, there are five hotels less than a mile from the Courtyard, a couple of which are within walking distance. A newer facility equals newer technology including sound proof walls and superior sound equipment. Larger meeting spaces allow for more flexibility. Moreover, the exhibitors can all be in one room, making networking opportunities easier. In addition, the Junction City CVB has agreed to sponsor the opening reception on Tuesday evening. “After touring the facility and envisioning how the event could be planned, I started having a change of heart,” comments Wilson. “This committee meeting was a pretty lengthy one with much debate…we tried to think of all the angles. Thinking back to comments we have heard over the past several years about the Salina facility…I decided it was probably time for a change. I can’t say that I think Junction City is the ‘perfect’ place for it; but based on the research of other facilities that would work for the size of group that we have and of course the accommodations that we need, this seems to be the best option at this time.” Wilson assures members, “We are definitely not closing the door on Salina.” Given that the needs of the conference have outgrown the Salina convention center, Wilson asks that members “give Junction City a chance. Change is never easy for anyone. This event has always been built on networking and great education and that is not going to change regardless of where we have it.” Comments and questions may be submitted to info@kaia. com, www.Facebook.com/TheBigIofKansas, or www.Twitter. com/BigIofKansas.

COURTYARD BY MARRIOTT REGISTRATION AREA

COURTYARD C OURTYARD RD BY B Y MARRIOTT MAR ARRIOTT T B ALLRO LR R OM M BALLROOM

COURTYARD BY MARRIOTT GUEST ROOMS

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

TAKE ON SOCIAL MEDIA continued from page 5

the prevalence of smart phones, my generation grew up having everything we wanted whenever we wanted it. I think this is a very important and sometimes negative aspect of my generation. Since we are so technologically literate, we have access to hundreds of websites selling the same thing. We have the knowledge to navigate our way through a website, but I doubt most of us have the time/patience. We gravitate toward information, forms and products that we can find now. I think this is an important aspect to marketing, because you can draw all the attention you want to your website, but if it is not easy to navigate or to find a way to contact someone, I think a good many prospective customers will drift to their second choice. How I Use the Internet to Shop I use the Internet for almost all of my shopping. If I am at a shopping center and I need something, I will buy it there, but

“Many in my generation would rather do something on the Internet than pick up the phone and call.” most other times, I will just rely on the Internet. I have always found it more convenient to go to a website for what I might need than to find a store. Websites usually are easier to navigate, have more options and are faster than traveling to a store. Generally I will start with a website that I have used before and have had a good experience with. If I have a longstanding relationship with a company, I usually will just trust that they have the best price and not look any further. However, if it is a new website or one I have not used a lot, I will tend to look around the Internet for a better deal, and if I can’t find one, I will come back to the first one. I think that my generation would rather not take a

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

day to travel around and price shop when they could just get the same amount accomplished in a much smaller period of time on the Internet. Many in my generation would rather do something on the Internet than pick up the phone and call. As a generation, we seem to be more comfortable with the Internet than with a phone call. For the most part, I have found the Internet to be a reliable buying outlet, so there has been no reason to use another means of shopping. A few unappealing encounters can teach an Internet buyer to look into the company before buying from them. It is easier for a company to lie about their product when it is

being presented on a webpage. This is where the relationship with a company comes into play. If you have bought a product with them that wasnâ&#x20AC;&#x2122;t what it said it was, then a bad relationship is created. Growing up with the Internet makes it so much easier to use this resource to go shopping, do homework or anything else we might need. Personal Relationships Are Still Important Personal relationships are still important for some things. I look at these relationships in a similar way to a website, in the sense that if I had a positive relationship with a store or service, then I am more likely to return again. If the experience

was negative, I will not return. There are a few things that I will never buy online, one of them being a cell phone. I got my first cell phone from a sales representative, Stan, and I have returned every time I needed a new phone or anything else cellular. On the other hand, there are companies I will never return to based on bad experiences. I am currently in the process of cancelling one of my debit card accounts because of such bad customer service. Customer service is where people establish relationships, and if the goal is to attract Internet users to come into an office or even pick up the phone to speak with a person, relationships play a huge

role. Going back to the example of Stan, I have many opportunities and online resources to buy a cell phone or accessories on a website, but due to the strong relationship with the store personnel, I am always drawn to return there rather than go to the Internet. These personal relationships give the customer a respect for the opinions and suggestions of the service representative that one cannot get from a website or a customer service representative in a call center. In a perfect situation, there would be a strong relationship with the personnel of the business, coupled with the support of a functional website and/or mobile app. Providing that personal relationship enhanced by these online tools is the best way to get my generation off the Internet and into the office. Lauren Foy is a sophomore at University of Rhode Island and can be reached at lauren_foy@yahoo.com. Lauren wrote this article for ACT and based it on an email she wrote to her dad, an independent agent, to assist him with the millennialsâ&#x20AC;&#x2122; perspective with regard to social media and marketing. The Agents Council for Technology (ACT) is part of the Independent Insurance Agents & Brokers of America, Inc. ACTâ&#x20AC;&#x2122;s Web site is www.independentagent. com/act. This article reflects the views of the author and should not be construed as an official statement by ACT.

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

Mark is the

Have You AScKed Lately?

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ita, which has

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60+ reps doing business from His practice entails business continuation strategies, retirement, and estate investment planning as well as

s an insurance agency owner you should think about this question. Are you thinking about a potential exit strategy or are you planning on having your retirement party and funeral on the same day? Or maybe, you just want to slow down and work less, and smarter, knowing a plan is in force to get fair value to your heirs when that time comes. An exit strategy is something most business owners or insurance agencies never address. We ask our commercial clients to plan for risks and eventualities but do we look inward and plan ourselves? Usually not. A good definition of an exit planning strategy is a tax-efficient transfer of ownership and control from one entity to another. Although an exit planning strategy can be quite complex and cumbersome, it all boils down to a three step process.

financial services platforms for independent P/C agencies.

Step number one is to identify what is to be actually sold. Most agencies have both a book of business and hard assets. The business book valuation will vary on the mix of business such as personal lines, commercial, size of accounts, and financial services revenue. This value can vary by company contracts, owner or producer skill levels and mix. Usually a multiplier on the different lines of business is done and a valuation is determined. Or, an outside firm can be used to perform the valuation depending on the complexity and size of the agency. Challenges faced during this process can be as follows: Will the carriers stay with the new owners? What producers may stay or go? Can they be incented to stay? Usually the new

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

ownership will request the sellers or key staff to stay on during a transition period. This is all negotiable and can be price reflective. Hard assets such as buildings, furnishings, computers, and software require a different view with various variables. Considerations could be any recaptured depreciation on certain assets if sold. In the case of a building it could be either no sale of that asset and a lease back to the owner or a contract sale spread over time may make more sense tax-wise. These valuations should be periodically reviewed as circumstances change. All of these options should be discussed with your tax advisor and these choices may change as the tax laws evolve. I am sure we all agree that they will change, but maybe not evolve!

After a valuation of what assets are to be sold and their values have been established, the structures of selling these assets should be decided upon. Then funding has to be addressed. Funding alternatives are a major consideration. Should the buyer get outside financing if possible? Should the owner finance a contract sale? In either situation, life insurance and disability buy-out should be considered and priced. All contract sales should be binding and properly insured with life insurance, if possible, and disability buy-out insurance, if appropriate. Contract sales on both the book and assets should be handled by an attorney with advice from a tax advisor as they may also affect an overall estate plan. The third component of whom to sell it to is sometimes the most difficult for many reasons. If it is a family or legacy agency, do the future owners have the skill or experience to run it and is that their goal? If it is sold to existing producers do they have the skills necessary to run the agency to transfer the agreed upon value to the seller? Could they get outside financing? How could this affect existing producers in the agency if they are not the future owners? How would the present owner psychologically feel about selling to a competitor? The solution is designing a smooth process to the new owners so you get paid a fair value for the efforts you have spent building your business. There are many other more complex issues that should be addressed such as discounting valuation, gifting, and minority voting stock issues. All would require, as with any plan, discussing this with a legal and tax professional. Bottom line is this. As insurance professionals, we not only need to make sure our clientsâ&#x20AC;&#x2122; hopes, wants, and dreams are planned and insured for, we must also plan on our own. Get started!! AScK us about how you can get your exit planning strategy started through our trusted

vendor by calling (800) 229-7048 or AScK@KAIA.com. Securities and investment advisory services offered through Ameritas Investment Corp. (AIC). Member FINRA, SIPC. , AIC & CFS are not affiliated. Additional products and services may be available through Mark Ricklefs or CFS that are not offered through AIC.

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March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

UPCOMING CIC INSTITUTES

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

Commercial Casualty Institute

July 18-20, 2012 Overland Park

Agency Management Institute

Sept 12-14, 2012 Topeka

Life & Health Institute Nov 14-16, 2012

Erin Lesser Director of Education Kansas Association of Insurance Agents

Overland Park

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

Scan with your mobile device.

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

CISR CLASSES

MAY- 2012 2 IP OP Swiss Re 16 PR Hutchinson Kansas Farmers Service Association

JUNE- 2012 5 IC

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SEPTEMBER- 2012

OCTOBER- 2012

6 PA 18 IC 26 AO

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KANSAS INSURANCE AGENT & BROKER :: March/April 2012

OP Swiss Re Wichita SM Topeka KAIA

NOVEMBER- 2012 8 AO 28 PR

Topeka KAIA Wichita SM

AD INDEX Insurance Agent- Church Lines & Related Ministries

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

COMPANY

PAGE

ABEN

American Mining Insurance Corp Big I Flood Program

Bremen Farmers Mutual

Columbia Insurance Group EMC

4 Inside Front Cover

J.M. Wilson Kansas Fire/EMS Pak Kansas Mutual Insurance Company

23 5 19

COMPANY

PAGE

Mid-Continent Group

Midlands Management Companies

M.J. Kelly Company

Progressive

Back Cover

Ringwalt & Liesche

Secura Insurance Companies

Trusted Choice

Upland Mutual Insurance, Inc.

Brethren Mutual Aid Agency is seeking a licensed agent (Property/Casualty and Life/Health) to work with our Church Accounts. The successful candidate will be honest and ethical, and possess a strong understanding of church insurance needs, estimating the value of church buildings, and identifying and managing ministry risks. A faith-based, service-minded spirit, coupled with a strong desire to act in the client’s best interest is mandatory. Responsibilities include sales, service and retention of insurance plans to churches and their related ministries. This position offers a flexible schedule, team environment, full office support, and a strong marketing communications program. Compensation includes a competitive salary, based on applicable experience, and a very generous benefit package. Send your letter of interest and resume to: Brethren Mutual Aid Agency, Attn: Kim Rutter, 3094 Jeep Road, Abilene, KS 67410 or e-mail to kim@maabrethren.com.

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

POOLS FINANCIALS continued from page 17

OUTSIDE THE LINES continued from page 19

hours; they want music and headphones; they want “suggested guidelines”; they want a smart phone, a tablet, and the latest in agency management systems; they want on-line, interactive education; and, heaven help us, they want it right now. How do you reconcile the punchedtime-card, follow-the-rules, color-insidethe-lines owners with those give-me-thetools (some call them toys), some vague parameters, and let-me-color-the-picture-my-way new hires? Some would say that’s impossible. First, let me stop the emails and phone calls and say, I am fully aware that many agency owners and principals have smart phones, tablets and more than one monitor – and have for some time. This is exaggeration for a purpose. Now let me say that it’s not impossible. For this issue, let’s just focus on the on-line, interactive education. KAIA has colored outside the lines and can deliver. The newly completed 70+ seat education center has state of the art technology that will allow live streaming of classes to individual PC’s. Each on-line participant will be able to see the instructor, view the power-point presentation, email questions, and take notes. Classes can also be recorded and viewed at other times if the live-streaming date

and time does not work with your schedule. If there are more agents who want to attend class in person rather than online, instruction in the education center can be pushed to two additional conference rooms for overflow purposes. This is color outside the lines. On June 10, KAIA will host an Open House for all members, friends and family from 2:00 p.m. to 5:00 p.m. A dedication and ribbon-cutting ceremony will begin at 3:00. Executive Vice-President Larry Magill strongly supported agent education and advocated for the best quality. Larry was also known to love a challenge and he would have enjoyed the challenge of finding a way to deliver engaging and quality on-line education. In recognition of his leadership and dedication, the center will be dedicated as the Larry Magill Education Center. The Open House will continue through Monday, June 11 – the same day as the President’s Classic Golf Tournament. We invite you to come see the “impossible” – the Larry Magill Education Center that will deliver education “old school” – in the classroom; and deliver online, interactive education directly to your personal computer. We also invite you to take a day to come play golf oldschool style – on the golf course – not on the tablet. Next up, tackling the 24-7 world . . .

WHY NOT? continued from page 2 highly encourage all of you to take advantage of the spaces to host meetings, trainings, or events of your own. KAIA staff can 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. Because this will be an invaluable member benefit that focuses on bringing quality education to KAIA members,

the KAIA Board of Directors has decided to name the education center in honor of Larry Magill. The Larry Magill Education Center will be officially dedicated with a ribbon cutting on June 10 and an open house June 10 – June 11 in conjunction with the 2012 Presidents Classic Golf Tournament. Why not attend and discover the benefits for yourself?

KANSAS INSURANCE AGENT & BROKER :: March/April 2012

or, in the case of BASIF, become a mutual insurance company. Those pools are listed in the accompanying table. 1. Builders Association SelfInsurance Fund of Kansas which became Builders Mutual Casualty Company on July 1, 2008 2. Medicalodges Affiliates Workers Compensation Self Insurance Pool surrendered its certificate on November 1, 1998 3. Kansas Health Care Association Workers Compensation Insurance Trust became dormant on February 1, 2007 4. Kansas Electric Cooperatives Workers Compensation Group Self Insurers Pool surrendered its certificate June 30, 1998 5. Kansas PIA Workers Compensation Corporation (Printing industry) surrendered its certificate December 20, 2005 6. Kansas Aggregate Ready Mixed Association Self Insurance Fund surrendered its certificate August 1, 1995 7. Kansas Manufacturers and Commerce Self Insurers Fund surrendered its certificate April 1, 1998 8. Kansas Chamber of Commerce and Industry Workers Compensation Corporation went dormant January 1, 1998 9. Western Association Self Insured Workers Compensation Trust surrendered its certificate March 31, 2000 10. Kansas Transportation and Industry Self Insurers Fund surrendered its certificate April 1, 1998 11. Associated Builders & Contractors Self Insurers Fund, Inc surrendered its certificate November 22, 1999.

KANSAS FILINGS REPORT Major Line

Subject

Company

Eff. Date

Overall

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

Accident Fund Group Accident Fund Group Accident Fund National Insurance Co Accident Fund Group Bankers Standard Insurance Company Agri General Insurance Company Allstate Insurance Group American Standard Insurance Co of WI American Family Insurance Group Amica Mutual Insurance Company Wesco Insurance Company Security National Insurance Company Wesco Insurance Company Automobile Club Inter-Insurance Exchange Berkshire Hathaway Insurance Group California Casualty Indemnity Exch Canal Insurance Company Vigilant Insurance Company Cincinnati Insurance Company Cincinnati Insurance Companies Cincinnati Insurance Company Cincinnati Insurance Company Cincinnati Insurance Company Continental Casualty Company Columbia National Insurance Company Columbia National Insurance Company Columbia National Insurance Company COUNTRY Mutual Insurance Company COUNTRY Mutual Insurance Company Employers Mutual Casualty Company EMCASCO Insurance Company Employers Mutual Casualty Company Union Insurance Company of Providence Farmers Alliance Mutual Insurance Co Horace Mann Insurance Company Horace Mann Insurance Group Markel Insurance Company American Alternative Insurance Corp Nationwide Group Nationwide Group Nationwide Group Nationwide Insurance Company of America Insurance Services Office Insurance Services Office American Association Insurance Services Brotherhood Mutual Insurance Company Insurance Services Office Insurance Services Office Insurance Services Office Kansas Automobile Insurance Plan NIPPONKOA Insurance Company Limited USB ACUITY A Mutual Insurance Company ACUITY A Mutual Insurance Company ACUITY A Mutual Insurance Company Bremen Farmers Mutual Insurance Company Benchmark Insurance Company Kansas Automobile Insurance Plan Kansas Automobile Insurance Plan Upland Mutual Insurance Inc Bituminous Casualty Corporation Pharmacists Mutual Insurance Company Pharmacists Insurance Group Progressive Insurance Group Shelter Mutual Insurance Company State Farm Group St Paul Guardian Insurance Company Travelers Group Charter Oak Fire Insurance Company Travelers Group Travelers Casualty and Surety Co America Travelers Home and Marine Ins Co Travelers Group Travelers Group Automobile Ins Co of Hartford, CT

03/01/2012 03/01/2012 03/01/2012 03/01/2012 02/10/2012 02/01/2012 02/06/2012 03/01/2012 02/01/2012 04/01/2012 02/01/2012 02/01/2012 02/01/2012 02/01/2012 02/01/2012 04/01/2012 02/01/2012 03/15/2012 04/01/2012 02/01/2012 02/01/2012 02/01/2012 02/01/2012 02/01/2012 04/01/2012 02/01/2012 02/01/2012 02/01/2012 02/01/2012 03/01/2012 02/01/2012 02/01/2012 02/01/2012 02/15/2012 04/01/2012 04/01/2012 04/01/2012 04/01/2012 03/01/2012 02/11/2012 02/11/2012 02/11/2012 04/01/2012 03/15/2012 03/01/2012 03/01/2012 03/01/2012 03/01/2012 03/01/2012 03/01/2012 03/01/2012 02/24/2012 02/22/2012 02/21/2012 02/01/2012 02/01/2012 02/01/2012 02/01/2012 02/01/2012 03/01/2012 04/01/2012 03/01/2012 02/09/2012 02/18/2012 03/01/2012 04/01/2012 04/01/2012 03/01/2012 03/01/2012 03/01/2012 02/04/2012 02/04/2012 02/04/2012 02/04/2012

3.10 % 7.40 % -0.90 % 3.70 % 11.50 % 10.00 % 0.00 % 0.10 % 0.00 % 4.00 % -6.82 % -36.30 % -15.00 % 0.50 % 11.70 % 12.00 % 14.30 % -3.80 % 3.00 % 0.00 % -0.02 % 3.40 % 1.50 % 4.20 % 15.15 % 3.00 % 0.50 % 10.10 % 9.70 % -6.50 % 9.00 % 8.40 % 0.00 % 6.00 % 5.10 % 5.10 % 0.00 % -1.90 % 0.40 % 4.50 % -0.30 % 3.50 % -3.00 % -3.40 % 10.00 % -1.30 % -0.40 % 1.90 % 3.00 % -5.20 % 5.00 % 0.00 % -0.80 % 1.30 % 5.00 % 1.58 % -3.40 % 0.00 % 6.00 % -1.40 % 5.50 % 2.90 % 5.50 % 10.10 % 6.40 % -28.60 % -36.40 % 4.20 % 9.80 % 13.90 % 9.63 % 8.93 % 10.14 % 10.32 %

March/April 2012 :: KANSAS INSURANCE AGENT & BROKER

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

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

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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.