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Think hard-to-place. Think Burns & Wilcox.
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WINTER 2011
......... Independent Insurance Agents & Brokers of South Carolina PO Box 210008, Columbia, SC 29221 800 Gracern Road, Columbia, SC 29210 803-731-9460 803-772-6425 (fax) e-mail: information@iiabsc.com
Contents
Redirecting Advertising Campaign Funds to Support a Cause 10 Relay for Life 2011 Events 12 Independent Agent Colleagues Hold Important Posts in State House 14
Rebecca H. McCormack, CPCU, CIC, AAI, CPIW Vice President ext. 14, bmccormack@iiabsc.com Anita J. Trevino Director of Communications ext. 29, atrevino@iiabsc.com
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.................. Message from the National Director 8
IIABSC Staff
G. Frank Sheppard, AAI, CAE President ext. 23, fsheppard@iiabsc.com
“Minds in Motion” Annual Convention Report 20 2011 Big “I” SC Spring Conference 26
New Designation Program Begins in 2011 (AIAM) 28 AIAM Course Descriptions 29
Beth Chastie Director of Administration & Finance ext. 17, bchastie@iiabsc.com
Insuring Leased Personal Property Not as Easy as it Looks 30 Your E&O Coverage’s Hidden Value
33
Laura Cornell Agency Administrator ext. 22, lcornell@iiabsc.com
IIABSC New Online Courses for CE Credit 35
Elaine Mikell Meeting Coordinator ext. 16, emikell@iiabsc.com
InsurPac: We Make Your Voice Heard in Washington 39
Mary A. Ellis Education Coordinator ext. 12, mellis@iiabsc.com Jeanette Bloss Education Coordinator ext. 11, jbloss@iiabsc.com Pat Fetner Receptionist ext. 10, pfetner@iiabsc.com Lee Ruef Director of State Government Relations lruef@iiabsc.com South Carolina Agent & Broker is the official magazine of the Independent Insurance Agents and Brokers of South Carolina and is published four times annually. IIABSC does not necessarily endorse any of the companies advertising in this publication or the views of its writers. Articles and information published in this magazine may not be reproduced without written consent of the IIABSC. South Carolina Agent & Broker is not responsible for unsolicited manuscripts, art or photography. The publisher cannot assume responsibility for claims made by advertisers and is not responsible for the opinions expressed by contributing authors. For more information on advertising, Contact Jim Aitkins Blue Water Publishers 22727 - 161st Avenue SE Monroe, WA 98272 360-805-6474 fax: 360-805-6475 jima@bluewaterpublishers.com
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Message from the Chairman of the Board
South Carolina Agent & Broker • Winter 2011
Palmetto Partners Program 36 IIABSC Education Calendar 40 2011 Board of Directors and Executive Committee 46
Advertiser Index Bankers Insurance Group
11
Preferred Specialty
47
Builders Mutual Insurance
46
Prime Rate Premium Finance
21
ProVision Underwriters
27
Burns & Wilcox
3, 5, 48
Genesee General
16
RPS Rollins
GUARD Insurance Group
37
South Carolina Agent Network
21
Hanover Excess & Surplus
15
Summit Marketing Services
27
Insurance House
19
TAPCO Underwriters
J. M. Wilson
32
The National Security Group
31
The Seibels Bruce Group
11
UPC Insurance
37
Universal North America
41
Utica National Insurance Group
13
Jackson Sumner & Associates Johnson & Johnson Montgomery Insurance
2 24, 25 16
NetComp 34
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Cover photo credit, ©Robert Clay, Dreamstime.com. This image of a wetlands landscape was taken with an special filter to capture the infrared spectrum of electromagnetic waves and block the visible spectrums. The resulting “Wood Effect” not only resembles a snowy winter scene but in this instance with the palmettos, our state flag.
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Think hard-to-place. Think Burns & Wilcox.
. . . . . Condominiums Oceanfront Homeowners Excess Windstorm Excess Flood Umbrellas Liability
. . . . . Burns & Wilcox — the largest insurance MGA/wholesaler in North America.
800.498.1600 Get Personal: Commercial:
Kasey Vaughn X 2221 Jamie Canady X 2214 Angela McNally X 2205 Melissa Hawgood X 2219
IIABSC Chairman of the Board Kathy D. McKay, CIC, CPIW
Why Cause Marketing? Building Brands...and Brand Loyalty
I
n a time when people have more choices for products and services than ever, and more reasons not to choose our brand than to choose it (thanks to marketing by our competition), differentiation is key. Emotional connections are key. People need a reason to want to choose a Trusted Choice® agent — a reason beyond quality or features. So what sets you apart? What space does our brand occupy in people’s minds? This is the dilemma facing corporations internationally and why there’s been an influx of campaigns that have now been termed “cause marketing” or “pro-social” efforts like The Gap’s Product (RED) to support Africa or Reebok’s Human Rights Awards. For years, C-level leaders have seen supporting a cause as a necessary evil, what every company should do to be perceived as a good corporate citizen — but not as a key component of brand building. Thus, donations are randomly trickled out to the local food bank, to sponsor the local Boy Scouts and perhaps on a bit larger scale to the national Boys and Girls Clubs. These donations, however, are viewed as a corporate write-off with no bottom-line value to be gained, nor any reason to incorporate them into the marketing and branding mix. Strategy lacking, the charitable nonprofits receive aid and the companies feel good. Mission accomplished ... right? Not so fast. Today consumers are in the driver’s seat and for all of the reasons stated above are expecting more from the companies they support. Particularly in the age of social media, transparency is not only essential; it is inevitable. According to a recent study, Americans’ expectations of companies are at an all time high. Eighty-three percent say
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South Carolina Agent & Broker • Winter 2011
companies have a responsibility to help support causes, and 92 percent acknowledge they have a more positive image of a company that supports a cause they care about. A New York Times article reinforced this finding, saying “retail executives and philanthropy experts agree ... charity is no longer an option; it’s the cost of doing business.” Studies also show that, with the rash of recent corporate scandals, consumers care even more about a company’s good deeds and will make buying decisions based on what they learn. What’s more, they’re looking beyond the donations themselves to the changes — the positive impact — companies are actually making in the lives of others. Yet with more than 80 percent of corporations involved in nonprofit giving, how many of their affiliations or efforts are top of mind with you, the consumer? What brands are you choosing to buy — or not buy — and why? That’s the problem, or more accurately, the opportunity. Few corporations know how to turn “fluffy” donations and partnerships into meaningful, change-impacting, strategic, non-profit alignments that aren’t add-ons, rather they’re a core part of the brand. But those that do are reaping the benefits: increased sales over time, customer loyalty, goodwill in the public “bank” for tough days, and most importantly, a stronger brand. And that’s what Trusted Choice® intends to do with Relay for Life®, but like the success of a brand in all other aspects, it depends on your participation. For more information on our involvement with Relay for Life® or to find an event in your area, read the article by our new Trusted Choice® Chairman on page 10, or visit our web site, www.iiabsc.com.
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National Director Jon A. Jensen, AAI, AIP
T
here is no question that this past November’s was a historic election for our country. Republicans gained more seats in the House than any election since 1948 and closed the gap significantly in the Senate. Mid-term elections are generally a referendum on the president and are often influenced by the state of the economy. This election was no different as exit polls showed a 54 percent disapproval rating of President Obama and 62 percent ranked the economy as the single most important issue facing the country (health care was second with 18 percent). While the election was historic for the nation, it was also historic for InsurPac. Your federal political action committee supported more House and Senate campaigns than ever before and distributed a record amount of money along the way. InsurPac distributed more than $1.7 million to a total of 265 federal campaigns, winning at least 247 of them for an amazing 93 percent victory rate. In disbursing this money, InsurPac did not look at party affiliation; as always, it gave money to representatives, senators and candidates for federal office that have been friends and advocates of the independent agency system. At the urging of agent leaders, the Big “I” and InsurPac went on the offensive in a handful of races to knock off incumbents that have been antagonistic to our industry. InsurPac went “all-in” against three Members of the House who co-sponsored legislation creating a federal regulator (called Optional Federal Charter) for the insurance industry. Two of these members lost by wide margins. Additionally, InsurPac went all-in against two Members of the House who introduced legislation to repeal the McCarran-Ferguson Act, and both incumbents lost soundly. Overall, InsurPac challenged 14 incumbent House Members with the maximum amount of money allowed; 12 of those incumbents lost.
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South Carolina Agent & Broker • Winter 2011
Not only was InsurPac’s financial support in these races critical, but equally important were the grassroots efforts demonstrated by independent agents. Numerous individuals volunteered their time, organized fundraisers, attended campaign events and, most importantly, cast their ballots. The Big “I” has always prided itself on representing individuals who understand and appreciate their civic duties and responsibilities, and this year was no different. As with every election, independent agents suffered some congressional losses. While disappointing, they are an equally important reminder that our friends in Congress cannot be taken for granted. They must have the necessary financial resources to win re-election each cycle. For that reason, it is critically important to have a strong PAC with which to support and defend our allies. Politicians and the media are already looking ahead to the 2012 elections, so we must too. It took many, many years and an incredible amount of effort to get InsurPAC where it is today, and we need to maintain that effort in order to be ready for 2012 by replenishing our InsurPAC funds. I would like to extend my thanks to last year’s contributors, who can be found on our web site (www .iiabsc.com > Advocacy > Political Action Committee) and will be published in a special section in the next issue of this magazine. In the meantime, a delegation of SC Big “I” Agents will be accompanying us to Washington, D.C this spring to visit with our SC Congressmen on Capitol Hill and attend the Big “I” Legislative Conference and Convention. Stay tuned for a report from that event, and feel free to contact me or SC InsurPAC Chairman Scott Moseley with any concerns about InsurPAC and the 2012 election cycle or to make a contribution.
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Cause and Effect:
Redirecting Advertising Campaign Funds to
Support a Cause
By Tom M. Bates, Jr. SC Trusted Choice® Committee Chairman
I
n the insurance world, where we compete constantly with lizards, a man with a blue phone, a good neighbor and mayhem, just what is it that sets us apart from it all? Trusted Choice® to the rescue! Your state association has been diligent in its advocacy to let consumers know about our stand above the rest, the Pledge of Performance, to treat them as people not polices. Trusted Choice® is the premier consumer brand for ALL Independent Insurance Agents. But did you know we have a wonderful opportunity to not only to increase our brand recognition, but help a wonderful cause by being a part of The American Cancer Society’s® Relay For Life, with events occurring all over the state? Our statewide pledge to this cause represents a powerful way to support an organization important to hundreds of cancer survivors and their families. The objective for these events is to raise funds for cancer awareness and to support the organization’s mission to eliminate cancer as a major health problem by cancer prevention, “More Birthdays” for those afflicted, and diminishing suffering from cancer, all through research, education, advocacy and service. We should not underestimate the importance of giving back to the local communities we live and work in. Being aligned with a highly reputable organization like the American Cancer Society conveys a high level of corporate citizenship and could help position your agency as a community corporate leader. The awareness the Relay For Life can bring to your business could help your business in numerous ways: • Increase Customer Loyalty • Enhance brand image • Strengthen employee loyalty and productivity • Enhance corporate reputation • Benefit our communities
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South Carolina Agent & Broker • Winter 2011
Board Member and Trusted Choice® Committee Chairman Tom Bates at age 10 with his mother, Marguerite, just a few weeks before the family lost her to breast cancer. This personal experience gives him passion for the Big “I” SC’s statewide sponsorship of the American Cancer Society’s Relay for Life®.
My passion for this particular cause comes from personal experience. In 1965 at the age of ten, I lost my mother to breast cancer, and in 1986 I lost my father to Lymphoma. I was devastated by both deaths, but through faith and time passed, I now truly believe that through the advancements of cancer research and the variety of treatment options today versus then, that my parents might have had a better chance of survival if it had happened now as opposed to then. I want to do all I can to ensure even further progress in the future. As this year’s Trusted Choice® Committee Chairman, I pledge that our committee will do our best to educate and advise you of not only Relay for Life opportunities, but also the many branding and other strategic tools Trusted Choice® offers in helping you reach consumers. On behalf of your SC Trusted Choice® committee and The American Cancer Society, we look forward to working with you in the upcoming 2011 Relay For Life events all over our great state. We hope that your agency will become a long-term friend of corporate giving/participation and make its mark through this great event.
What you can do: 1. Find a local Relay for Life event near you. A list of events is on page 12, and links to event details can be found at www.screlayforlife .org 2. Form a Relay Team. Team members set personal fundraising goals and camp out at the event, with at least one member walking the track at all times during the overnight event (because “Cancer Never Sleeps”). 3. Volunteer. All events need help with registration, setup and logistics, fundraising, publicity, food & beverage, entertainment and the coordination for the Survivor Lap and Ceremony of Hope. 4. Contribute to the Ceremony of Hope. Memorialize those you have lost to cancer and honor the cancer survivors in your life by donating a luminary inscribed with their name that will be lit during the Ceremony of Hope. 5. Educate your clients on numerous ACS programs — www.cancer.org.
Winter 2011 • South Carolina Agent & Broker
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What you can do:
Relay for Life 2011
1. 2. 3. 4.
SC Event List
Form a Relay Team Volunteer at the event Contribute to the Ceremony of Hope Educate clients on ACS programs
Abbeville County
Clemson University
Kershaw County
Northeast Richland
Aiken
Coastal Carolina University
Lancaster County
Orangeburg County
Allendale
Colleges of Charleston
Laurens County
Pendleton-Clemson
Anderson
Colleton County
Lee County
Pickens
Andrews
Conway-Aynor
May 20, Abbeville HS May 20, Aiken HS May 20, Allendale Fairfax HS May 20, Westside HS May 20, Andrews HS
Bamberg
May 13, Bamberg Ehrhardt HS
Barnwell
April 29, Downtown Barnwell Circle
Batesburg-Leesville
April 29, Leesville College Park
Beaufort
April 29, Beaufort Middle School
April 15, Lower Intramural Fields April 15, CCU Track Field
April 8, CofC Soccer Field
May 13, Colleton County HS May 20, Bay Village Mini Mall
Darlington County
May 20-21, Byerly Park
Dillon County
May 13-14, Dillon HS
Downtown Columbia
May 5-6, State Fairgrounds
Edgefield County
April 29, Strom Thurmond HS
Belton-Honea Path- Williamston
Florence
Bluffton
Furman University
Calhoun County
Georgetown-Pawleys Island
Chapin-Irmo
Greenville
Charleston County
Greenwood
Cherokee County
Greer
May 6, Belton Honea Path HS TBD, Bluffton HS May 6, County Courthouse May 6, Chapin HS May 20-21, West Ashley HS May 6, Timken Company
Chester County
May 13, Lewisville HS
Chesterfield County April 8, TBD
Clarendon County May 6-7, Manning HS
April 1-2, Freedom Florence April 1, FU “Mall”
May 13, Georgetown HS May 13, Sirrine Stadium
May 6, Greenwood YMCA May 13, Greer HS
Hampton County
May 20, Wade Hampton HS
Hilton Head
May 6, Honey Horn
Jasper County
May 6, Hardeeville Recreation Complex
May 6, Lugoff-Elgin HS May 6-7, USC-Lancaster May 20, Clinton HS April 29, County Parks & Recreation Field
Lexington
April 8, Lexington HS
Loris
April 29-30, Loris HS
Lower Berkeley May 13-14, TBD
Marion
May 20, Blythewood HS April 22, Clark Middle School May 6, Pendleton HS May 6, Liberty HS
Saluda
May 13, County Rec. Park
Spartanburg
May 20, Dorman HS
Summerville
April 15, Summerville HS
Sumter County
TBD, Withlacoochee Park
May 13, Sumter SD 2 Memorial Stadium
Marlboro County
Travelers Rest
May 13, Marlboro County HS
McCormick
May 13, McCormick Elementary
Moncks Corner
April 29, Berkeley HS
Mt. Pleasant
April 29, Park West Recreation Complex
Myrtle Beach – South Strand
April 29, George Theisen Family YMCA
Union County
April 29, County Fairgrounds
Univ. of SC
April 8, Blatt PE Fields
Upper Dorchester County
April 29, Harleyville Community Center
April 29, Athletic Field 7 at Market Common
Western York County
Newberry County
Winthrop University
North Augusta-Midland Valley
Woodruff
North Myrtle Beach-Little River
York East County
April 15, Newberry HS May 6-7, North Augusta HS
April 9, Possum Trot Athletic Field
North Spartanburg May 6, Chapman HS
Visit www.screlayforlife.org for details about your local Relay For Life event
April 30, York MS
April 8, Dinkins Lawn June 3, Woodruff HS
May 20-21, Castle Heights MS
Get to Know Utica! We’re not a household name. We don’t have a 40-story home office in a big city. But we’re a household name to the agents who sell our products and their clients who buy our insurance. We’re one of the top 100 property-casualty groups in the country (National Underwriter’s annual ranking), and we’ve been serving independent agents and their policyholders with top quality products and service since our founding in 1914. We are a multi-regional carrier with great products. We stay close to our agents. And we’re consistently noted for the high quality of our service, whether it’s our specialized loss control work or the fast, fair work of the Utica Claims staff. Open the door to more sales and revenue for your agency. Call me today to find out what Utica can add to your agency! Larry Hart, CPCU, CIC — Regional Marketing Manager Utica National Insurance Group 1100 Boulders Parkway, Suite 300, Richmond, VA 23225 Phone: 804-560-6680 • Larry.Hart@uticanational.com
Winter 2011 • South Carolina Agent & Broker
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By Lee Ruef, IIABSC Dir. State Government Relations
Independent Agent Colleagues Hold Important Posts in State House “... both are quick to say [the biggest issue in 2011] will be how to cope with having an estimated $800 million less revenue to underwrite the state budget”
T
hey are independent insurance agents. They are colleagues in the same agency — Capstone Insurance Services in Greenville. They are members of the SC House of Representatives. They are members of the same delegation from Anderson County in northwest South Carolina. Their districts are side-by-side in Anderson County. And both are committee chairs in the House. Rep. Dan Cooper, 50, of Piedmont, holds one of the six most important posts in the South Carolina state government as chairman of the SC House Ways and Means Committee. Ways and Means writes the first draft of every state annual budget and gets the ball rolling on tax policy changes, fees and other fiscal matters. Cooper is beginning his 21st year in the General Assembly. He has been Ways and Means chairman for six years and was re-elected to the position by members of the Committee during the House reorganization meeting in November.
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South Carolina Agent & Broker • Winter 2011
(l. to r.) Rep. Brian White and Rep. Dan Cooper
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South Carolina Agent & Broker • Winter 2011
11/9/10
As Chairman of Ways and Means, Cooper is also one of five members of the Budget and Control Board the chief administrative agency of South Carolina that plays a key role in the management of state government. It is an agency unique to South Carolina. The other members are the Governor, Treasurer, Comptroller General and Chairman of the State Senate Finance Committee. Cooper is the representative of District 10 in the northeast corner of Anderson County, which includes Williamston, Pelzer and Powdersville. He was elected to his 11th two-year term this past November. Rep. Brian White, 43, of Anderson, is the Chairman of the SC House Rules Committee and a member of the Ways and Means Committee, where he chairs the Healthcare Budget Subcommittee. He also is the first vice chairman of Ways and Means, having been elected to the post this past November. White has been in the House for ten years representing District Six, which covers the north central portion of Anderson County and includes parts of the town of Anderson and Pendleton. When Cooper and White are asked what will be the biggest issues in the 2011 session of the General Assembly both are quick to say it will be how to cope with having an estimated $800 million less revenue to underwrite the state budget. South Carolina had a state budget of 5.8 billion in 2009-10 and because of less revenue is operating on a budget of $5.5 billion in the current fiscal year which runs through June. So the current projections indicate 3:35 PM that the budget will have to be trimmed to $4.7 billion for fiscal year 2001-12. To do that the General Assembly faces a number of tough decisions. State government will have to be made much smaller. In the insurance world Cooper and White are sales executives at Capstone. Cooper is a Vice President of the firm. He has spent his entire adult life in insurance after graduating from Clemson. For a short time he was a Liberty Life agent. Then Citizens Insurance of Anderson (owned back in 1988 by Bill Thomason Sr. and now his sons Bill and John) bought the Cox agency in Williamston. Thomason Sr. hired Cooper to work in that office, and he has been in property and casualty insurance since. He also briefly worked in a State Farm agency. Then in 1997 Jack Puckett asked Cooper to join his insurance operation at the Furman Company. When Puckett formed Capstone Insurance Services, Cooper joined the agency as well.
Rep. Dan Cooper
Rep. Dan Cooper has served in the SC House for 20 years, and it started because another independent insurance agent recruited him to seek the office. Cooper’s father, M. J. “Dolly” Cooper, a department store owner in Piedmont, represented the same district in the House for 16 years from 1975 to 1990. The elder Cooper had decided not to seek the post again in 1990. Enter Belton independent agent Rufus Keys, who was Mr. Republican in Anderson County and county chairman of the party. Cooper says Keys visited him time after time for a year in the process of recruiting him to run for the House as a Republican. Dolly was a Democrat. Cooper won election in his first attempt and has been re-elected 11 times. When asked about his most significant legislative achievements, he starts with legislation he introduced
Sam Holland Photography
Brian White’s family was the fixed base operators (FBO) at the Anderson Airport for 25 years. He grew up in the aviation business and taught flying. A number of political friends approached White about running for the House in 1998 when independent insurance agent Brad Jordan retired from the seat. White lost a General Election race in that year but won two years later and has been re-elected five times since. White asked for Cooper’s help in that first campaign, and Cooper agreed. They’ve been friends ever since. As Capstone Insurance Services attracted new business the agency began to develop clients with aviation interests. Puckett knew White because of his friendship with Cooper and put on a recruiting campaign for him to take the lead in developing aviation-related business. White joined Capstone in early 2003. Here are the individual stories of Cooper and White and their thoughts on their careers as legislators and the future.
when he arrived in Columbia to require driver’s education and to raise the age at which one could drive. The high school nearest his home is Wren. Several Wren students had been killed in auto accidents just before Cooper’s first election. It took him nearly five years to make the new requirements law, but he doggedly pursued his first priority until he was successful. Cooper also cites his involvement in key economic development projects as special highlights of his career as state legislator. These include decisions that led to BMW establishing its massive operations in Spartanburg County in the early ‘90s, a billion-dollar investment by First Quality in Anderson County and the state government decisions that had to be made as Boeing was considering establishing a jetliner assembly plant in North Charleston. Cooper also has in important to-do list on legislation he would like to have passed while he is in the General Assembly. Foremost on the list is to require that all regulations must be passed by the General Assembly before they become regulations. Today the General Assembly can review regulations, but they can take effect without an affirmative vote of both houses. He also wants to simplify the formula for school funding so that more money is pushed into classrooms for K–12. Cooper says we need to give school districts more flexibility than they have now under a “one-size-fits-all” formula. Cooper and his wife Melissa have two children: Leanne Alexandra, 14, and Daniel T. II, 10. They are members of Mt. Airy Baptist Church. Winter 2011 • South Carolina Agent & Broker
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Rep. Brian White
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South Carolina Agent & Broker • Winter 2011
Sam Holland Photography
Sam Holland Photography
Rep. Brian White sees the role of the House Rules Committee, which he chairs, as being responsible for protecting the rules and integrity of the House. We have to insure that debate is fair, voting is as transparent as possible and that the House operates efficiently, he said. In that regard there are rules proposals in every session that are reviewed by the committee, but rules are not often changed. We have recently changed rules so that there are more recorded votes, which is a good thing, White said. Another important responsibility of the Rules Committee is to recommend that a particular bill be set for priority consideration. The House must then vote to set the bill for Special Order on a certain day and time. White recently saw accomplishment of a longtime goal. He has for years campaigned for a state constitutional amendment establishing the right to hunt and fish in South Carolina. In the November 2010 General Election South Carolina voters approved that constitutional amendment. White points out that the amendment is important because in some states efforts are being made to curtail hunting and fishing rights. One of White’s highlights as a legislator was enactment several years ago of his first bill that established a veterans cemetery in Anderson. White says his chief long-range concern is upkeep of the state’s infrastructure – roads, bridges and airports. In some cases our infrastructure is crumbling, he pointed out, and there is very little money to keep up with the need for replacement, upgrading or repair. The gasoline tax, the source of funds for road and bridges, is not growing because of the poor economy and more efficient cars and trucks, White said. And he said airports are a particular concern because he believes the aviation industry is going to become more important in the state as a result of the new Boeing plant near Charleston. He pointed out that every county in the state except one has an airport. White and his wife Courtney have three daughters: Amelia Grace, 14, Isabelle Faith, 9, and Madeline Hope, 2. The Whites are members of First Presbyterian Church in Anderson.
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Winter 2011 • South Carolina Agent & Broker
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South Carolina Agent & Broker • Winter 2011
For more information please contact Gary Cornell at 866-669-0937 ext 25404, or at gcornell@primeratepfc.com
Winter 2011 • South Carolina Agent & Broker
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South Carolina Agent & Broker • Winter 2011
Winter 2011 • South Carolina Agent & Broker
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Johnson & Johnson Preferred Financing is fully licensed and can finance with any company that accepts outside financing. Chat with us online at www.jjpf.com!
800.868.5573
www.jjins.com
800.487.7565
Serving I nd ep
n ie s mpa Co
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Sin ce 1930
Competitive Package Classes Not Limited To: ● Apartments
● Distributors
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2011 Big “I” SC
Spring Conference March 16 – 17
Embassy Suites, Columbia, SC
Exhibit Hall open all day Wednesday, with:
Wednesday
Legislative and Industry Issues panel
Representatives from SC’s Department of Insurance and members of the SC State Legislature have been invited to bring attendees up to date on various issues and proposed legislation facing the South Carolina insurance industry today.
Trusted Choice® Live the Brand and cause marketing
Learn about more about the Trusted Choice® brand and how to use the many tools and resources available to every Trusted Choice® agency to recapture market share. Also, learn how you can participate in our statewide sponsorship of the American Cancer Society’s Relay for Life®.
Impact of health-insurance reform, employment law changes on small business
A practical look on what you and your clients need to know to prepare for the immediate changes, as well as how to begin preparing for future changes made by last year’s federal health-insurance reform laws. Plus recent changes in employment law, and other common mistakes employers make that can lead to costly litigation. Agenda is tentative. Check web site for up-to-date agenda information.
8:00–11:00 am
Early Bird CE Session Recent Changes in Employment Law that Affect Small Business 11:00 am–6:30 pm
Exhibit Hall open 11:30 am–1:00 pm
Lunch with Exhibitors 1:15–3:00 pm
Opening General Session: Part I Getting the Most out of Trusted Choice® 3:30–5:15 pm
Legislative & Industry Issues Panel 5:15–6:30 pm
CE Credits...
Exhibitor Appreciation Reception
Thursday 8:00 am
Continental Breakfast
Legislators... Exhibitors...
... and PRIZES! 26
South Carolina Agent & Broker • Winter 2011
9:00 am–Noon
Closing General Session Health-Care Reform and How it Will Affect Small Business
Find up-to-date agenda, forms and online registration at
www.iiabsc.com
10-274 IIA SC Agent & Broker Ad txtoutl.indd 1
11/12/2010 1:09:32 PM
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Winter 2011 • South Carolina Agent & Broker
27
New Designation Program Begins in 2011
time management
Business Strategies
Developing Professional Relationships
Organizing Workflows Telephone Skills
Writing Skills Reducing E&O Exposure
F
Understanding Customer Needs
or many years, IIABSC has offered several designation programs such as CIC, CISR and AAI designed to help agents better understand the policies they are selling, but it is just as important that agents know how to properly manage and service their books of business. Without proper account management, an agency’s retention level and profits will decrease while their E&O exposure will increase. Beginning this year, IIABSC will begin offering a new professional designation program designed to teach agents how to be better account managers and policy servicers. Designed for account managers/executive, customer service representative and office staff, the Associate in Insurance Account Management (AIAM) designation is a comprehensive program that deals in the non-technical aspects of an insurance professional’s responsibilities. Classes will focus on topics such as understanding customer needs, time management, organizing workflows, negotiating conflict, developing professional relationships,
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South Carolina Agent & Broker • Winter 2011
reducing E&O exposures, writing skills, telephone skills, leadership and much, much more. Participants can earn up to 36 hours of continuing education credits – including the mandatory 3 hours of Ethics. The AIAM designation is comprised of six non-consecutive days of study. Classes will be offered in Columbia, Charleston and Greenville beginning early in 2011. (Classes can also be conducted privately in your agency. Contact Becky McCormack, bmccormack@iiabsc.com, for more details.) There is no time limit for completing the six days of study, and classes may be taken in any order. Participants must complete all six days of classroom study and successfully pass an open-book exam to achieve the AIAM designation. The AIAM is an approved Best Practices program. IIABA’s Best Practices originated in 1993 as an initiative to help independent agents build the value of their agencies. The benchmarks and business strategies established by the Best Practices programs provides member agents with meaningful tools that can be used to improve agency performance, thus enhancing the agency’s overall value. Registration information and other details can be found at www.iiabsc.com. Don’t miss out on this opportunity to improve your account management skills, increase your professional knowledge, improve your customer satisfaction and grow your agency’s book of business.
AIAM Course Descriptions Day One:
Day Four:
Columbia, Feb. 16; Charleston, March 8 AIAM 110 – Understanding Insurance Consumer Needs This course, dubbed The Communication Jungle, is a personal discovery on how personalities affect the office. You will learn how to recognize your co-workers’ and customers’ styles so that you can increase effectiveness in communication. 3 hrs. P&C
Greenville, Feb. 23; Columbia, Aug. 30 AIAM 410 – How Not to Get in Trouble With Your Mouth This Best Practices class will help you identify, analyze, and reduce and/or eliminate your exposures to an E&O loss by helping you implement changes to accomplish prevention objectives. 4 hrs. P&C
AIAM 120 – Best Practices in Customer Service Why service matters most; and why it is never enough. This Best Practices class will show you how to build the best customer service. 4 hrs. P&C
AIAM 420 – The Write Stuff Proper grammar and style in the written (including emailed!) word need not be a lost art. Let your image shine with excellent business writing and editing skills. Hands on work will help you write letters you can take back to the office and use. 2 hrs. P&C
Day Two: Columbia, April 13; Charleston, June 14 AIAM 210 – Mastering Time Take control of your time. We all have the same amount of hours in the day. Make the most of your most precious resource! Learn how to balance your home and work lives! 4 hrs. P&C AIAM 220 – Organizational Workflow Workflow has never been more important in our agencies. Good workflows will protect against E&O, provide better customer service, and streamline your work. 2 hrs. P&C
Day Five: Greenville, May 5; Columbia Oct. 19 AIAM 510 – Regulation, Politics and Polish Learn why you should care about political action. What does your association do to protect your industry? What can you do to create job security? 4 hrs. P&C AIAM 520 – Leadership is Everyone’s Job Sooner or later everyone needs to have basic leadership skills. This class uses Best Practices materials to go beyond supervision to show you how leadership can make a difference every day. 2 hrs. P&C
Day Three: Columbia, June 15; Charleston, Oct. 20 AIAM 310 – Negotiating Conflict Learn how to negotiate well with clients and co-workers. You can prevent conflict before it starts, work well with others every day, and understand both sides of the story. 3 hrs. P&C AIAM 320 – Professional Relationships in the Insurance Agency Insurance is a relationship business. You make a difference to your clients, underwriters, and co-workers. We will look at developing relationships and how it improves the bottom line in the agency. Referencing the Best Practices Joint Agency/Company Planner, we’ll show you how to maximize your relationship with company partners. 3 hrs. P&C
Day Six: Greenville, Sept. 7; Columbia, Dec. 14 AIAM 610 – Agent Ethics as a Consumer Protection Ethics should be a “given” in our work, but how do we define this elusive trait? How do you balance legal and ethical responsibilities? 3 hrs. Ethics AIAM 620 – Changing Attitudes/Creating Opportunities The final step, dubbed Survival in the Jungle— focuses on how to keep your work fun and reduce stress while building your personal approach to account management. 2 hrs. P&C
Winter 2011 • South Carolina Agent & Broker
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Insuring Leased Personal Property Not as Easy as it Looks By Terry Tadlock, CIC, CPCU, CRIS
T
he Building and Personal Property Coverage Form presents some challenges for agents writing coverage on the client’s personal property. This is an increasing concern as the concept of leasing instead of purchasing takes over in the business world. As we look at our own agencies, we are leasing postage machines, fax machines, copiers and computers to mention a few. All of these are items that we may wish to insure and the how to insure them is the question this article hopes to answer. Let us first examine the how we write coverage and how we interact with our client. Most agents ask the age-old question of, how much Business Personal Property coverage do you need? But because of the language in the Building and Personal Property Coverage Form, the more correct question should be, how much of your personal property is owned by you and how much is leased by your business? If you think of the restaurant client, how much of their equipment is owned and how much is leased? How about your service clients, such as law firms and CPAs? If they say that some is leased, how many agents ask to review the lease and if they ask the question, how many clients can produce the lease? This extra step is important because of the policy language that defines “Your Business Personal Property” and “Personal Property of Others” may include leased or rented property depending upon the conditions found in the lease. The policy reads: A. COVERAGE We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss. 1. Covered Property Covered Property, as used in this Coverage Part, means the type of property described in this section, A.1., and limited in A.2., Property Not Covered, if a Limit of Insurance is shown in the Declarations for that type of property. b. Your Business Personal Property located in or on the building described in the Declarations or in the open (or
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South Carolina Agent & Broker • Winter 2011
in a vehicle) within 100 feet of the described premises, consisting of the following unless otherwise specified in the Declarations or on the Your Business Personal Property — Separation of Coverage form: (7) Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under Personal Property of Others. c. Personal Property of Others that is: (1) In your care, custody or control; and (2) Located in or on the building described in the Declarations or in the open (or in vehicle) within 100 feet of the described premises. However, our payment for loss of or damage to personal property of others will only be for the account of the owner of the property. The definition of “Your Business Personal Property” includes personal property of others where the insured has a contractual obligation to insure the property. Many agents have included the leased property in this coverage, especially to receive the replacement cost valuation for these items (an ineffective technique to be discussed later in this article). The policy is clear that the adjuster would have the right to look at the lease to determine if the property was included in the definition of item (7) in the definition of “Your Business Personal Property.” The difficulty for the agent is that the client does not always furnish the lease nor does the client read the lease. In reviewing six business equipment leases that cover copiers, postage machines and fax machines, I found three requiring insurance and three requiring the lessee to repair or replace if damaged or destroyed. If the agent places the value of the leased item where no insurance is required, the insured might not have their loss paid except for the $2,500 Coverage Extension for Personal Property of Others. This
outcome could be an unhappy one. A second unhappy outcome may be found in the circumstance in which the agent correctly places the value in the “Personal Property of Others.” Most leases allow the client to purchase the leased item for a nominal sum at the end of the lease period. At that point the item becomes owned by the client and is now “Your Business Personal Property.” Rarely will the client call the agent to report the purchase, nor will the agent note the purchase date in the client’s file. Given the lack of access to the required information and the potential for misclassifying because of the lack of information from the client, one method to write the coverage is to ask to blanket the “Your Business Personal Property” with the “Personal Property of Others.” The entry on the declarations page should state, “Your Business Personal Property and Personal Property of Others-Blanket Limit.” The CLM allows these two coverages to be blanketed at an 80 percent coinsurance, at no cost. The agent still needs to be certain that there is an adequate limit to cover all of the property and comply with the coinsurance condition of the policy. Now the problem of which limit applies is alleviated. The second problem of the Building and Personal Coverage Form and the leasing of property is the issue of valuation at time of loss. One need is to have coverage on a replacement cost basis. Another need is that, like automobile leases, it may have a payoff requirement that is higher than actual cash value or replacement cost. This situation creates the need for a “gap” coverage for the
leased property. As to the issue of providing replacement cost valuation, consider the policy language: G. OPTIONAL COVERAGES If shown in the Declarations, the following Optional Coverages apply separately to each item. 3. Replacement Cost a. Replacement Cost (without deduction for depreciation) replaces Actual Cash Value in the Loss Condition, Valuation, of this Coverage Form. b. This Optional Coverage does not apply to: (1) Personal property of others; (2) Contents of a residence; (3) Manuscripts; (4) Works of art, antiques or rare articles, including etchings, pictures, statuary, marbles, bronzes, porcelains and bric-a-brac; or (5) “Stock,” unless the Including “Stock” option is shown in the Declarations. The earlier discussion of coverage centered upon which bucket of money the claim is paid from. The valuation of the policy tells the client what size of dollar, actual cash value or replacement cost, the client receives. The policy is clear in that any personal property that does not belong to the client (which includes leased property)
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Winter 2011 • South Carolina Agent & Broker
31
is valued at actual cash value. The Replacement Cost Optional Coverage does not apply to “personal property of others.” Even though “Your Business Personal Property” may include that leased property where the lease requires insurance, and even if the Replacement Cost Optional Coverage is activated for “Your Business Personal Property,” the Replacement Cost option does not apply to that property. There are two solutions to this problem. The most difficult is getting your underwriter to give you Replacement Cost on Personal Property Of Others. This option, if allowed, can be activated on the Declarations Page. Many underwriters are reluctant to allow the use of this optional coverage because it gives replacement cost on all personal property that does not belong to the insured such as property borrowed, rented, used or on consignment…not just leased property. The second and most available solution is the use of the Leased Property endorsement CP 14 60. The lease may be scheduled on the endorsement and as paragraph B states: “Your Business Personal Property is revised to include personal property of others in your care, custody or control under written leases, as described in the Schedule or in the Declarations.” This places the value in “Your Business Personal Property.” Should the underwriter agree to an entry on the schedule of the endorsement that says “all written leases” would produce the same result as the blanket entry on the Declarations page. The Agreed Value option may be used to solve the valuation problem. An agreed value entry of “replacement cost” would create an agreement between the company and the client that the valuation will be replacement cost. A second option would be to show an entry of “per value stipulated in the lease.” If the lease requires replacement cost, then the agreement is replacement cost. If the lease is a dollar payoff like the automobile lease, the lease will determine the value. There is no premium charge for using this endorsement, but the agent should be certain to include the correct value of the item covered in the limit set on the Declarations page. I know I threw a lot at you in this issue, but just remember two key questions to ask yourself. First, where do I put the coverage dollars (BPP or PPO)? Second, how will the policy value the property regardless of where it is insured? I think you will find the Leased Property Endorsement helpful. Terry Tadlock, CIC, CPCU, CRIS: Terry currently resides in Hilton Head Island where he is a Principal of Coastal Plains Insurance, which is part of the Correll Insurance Group. Terry is also the Education Consultant for the CIC program in North Carolina and a member of the CIC National Faculty. Terry continues to provide a variety of education courses and consulting services for agents in South Carolina as well as others across the country. In his spare time Terry speaks at state conventions and writes publications for state and national associations, including our own SC Agent & Broker magazine.
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South Carolina Agent & Broker • Winter 2011
RELATIONSHIPS IT’S WHY WE STAND OUT FROM THE CROWD
“I’m a mom, and for me excellent communication is important. The same holds true for my role as a Bond Underwriter. Developing personal relationships with our customers is essential— it’s who we are.”
Robyn Shepherd Bond Underwriter—professional listener and “customer care” expert Connect with Robyn on LinkedIn!
Managing General Agency Since 1920 Property/Casualty • Professional Liability • Surety Commercial Transportation • Personal Lines • Premium Finance
800.538.4796
jmwilson.com
‘
e u l a v n e d d i H
I
n shopping for your agency’s E&O coverage, it’s relatively easy to compare the different carriers’ terms and conditions. It’s easy to evaluate the carriers’ financial strength and compare premiums. However, if you haven’t looked at the claims team you would deal with when the time comes (and it will come — on average, 20 percent of insurance agencies submit a claim or potential claim to their E&O carriers each year), you haven’t evaluated one of the most important aspects of selecting the best professional liability carrier for your agency. Insurance professionals have an obligation to determine what the claims process holds for agents. As chairman of the Loss Control Working Group (LCWG), the agent-lead group responsible for overseeing the Big “I” Professional Liability Program’s risk management activities, I had the opportunity to meet with the Swiss Re claims team to better understand the process of how the program handles claims. I had a number of interesting observations that I felt it important to share because the claims handling process is much different then you are probably used to from the P&C carriers you work with daily for your clients. We all know what the industry trade press,
By Jack Sherrill, CPCU, CLU President of Sherrill & Co.
When a Claim Happens Many of you are probably not aware that reporting an incident to the Swiss Re claims department does not directly affect your renewal terms. The Swiss Re claims team wants to be involved early on in incidents that may give rise to a claim. In addition, and unlike what you are probably used to with your own clients, the Swiss Re claims team always contact your agency first, prior to any conversations with the claimant. When you submit a potential claim, your claim handler can share her experience with you, giving advice that can help put the claim in the best possible position. Because they handle nothing but insurance agents’ professional liability claims, odds are that they’ve seen a similar claim situation before, and can help you decide on the next step. Whether this proactive approach avoids the claim altogether or simply preserves evidence used in defending allegations against the agency, policyholders benefit. When an agency error has created a situation appropriate for processing under the E&O policy, Swiss Re’s claim team handles one third (33%) of these claims without incurring the expense of engaging counsel. This is important for three reasons: first, you just avoided a lawsuit and the need to spend countless hours embroiled in the litigation process; second, you may save part of your deductible payment, depending on the terms of your policy and the overall amount involved; and third, the overall E&O program saves on expenses, which allows for lower premiums. — J. S.
Winter 2011 • South Carolina Agent & Broker
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not to mention the mainstream media, thinks of insurance carrier claims handling. But what really goes on behind closed doors? At the outset, consider that the Swiss Re insurance agents E&O claims team is completely dedicated to handling professional liability claims against insurance agents and brokers agents’ E&O is not a sideline. They have focused experience that benefits policyholders in the process. The team is comprised of 29 professionals with the following credentials: • 70% have law degrees, • An average of 14 years insurance industry experience, • 12 have earned insurance industry designations. Customer service is a paramount goal of the Swiss Re claims department. The insurance agents’ E&O claims team strives to contact the insured agency within 48 to 72 hours of the agency faxing its claim. Swiss Re takes its coverage obligation very seriously; when a claim falls outside the policy’s coverage terms the claim handler must review the coverage denial letter with his supervisor and with the group leader before the letter gets sent. Finally, working with the LCWG and Big “I” Risk Management department the claims team provides valuable loss prevention tools to its policyholders, including industry-leading loss coding that creates detailed analysis for effectively targeted loss control information, as well as Swiss Re’s participation in many loss control seminars every year.
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South Carolina Agent & Broker • Winter 2011
From time to time, we’ve all recommended one carrier over another to a client based on a reputation for excellent customer service and superior claim handling. When it comes to protecting your own professional reputation, I suggest that you give due consideration to the customer service and claims service you can expect from Swiss Re when you have to deal with a claim or potential claim situation. In addition, my working group will continue to work with the Swiss Re claims team on your behalf to develop cutting edge risk management information and services that differentiate the national program from others in the marketplace to keep premiums as stable as possible. IIABA will continue to recommend the Swiss Re errors and omissions program to its membership based on the coverage and value provided. A significant part of that value is provided by the Swiss Re claims team. Jack Sherrill, CPCU, CLU, is President of Sherrill & Co., a Savannah, Georgia insurance agency, and serves on the IIABA Board of Directors and the Big “I” Professional Liability Committee.
Independent Insurance Agents & Brokers of SC
New online courses for CE credit ABEN: Live Instruction Online
Agents & Brokers Education Network offers live webcasts accessible from your office or home computer. Actually SEE your instructors as they teach rather than staring at their computer screen while they talk in the background. Participants also have the ability to ask questions and chat with other students.
CEU.com: Online Courses
A quick and convenient way to help meet your CE compliance requirements from your office or home computer, IIABSC agent members receive a 35% discount on any of CEU.com’s quality educational courses when accessed through our web site.
www.iiabsc.com
IIABSC: Webinars
Live webinars for CE credit using GotoWebinar, we will be offering a monthly Ethics webinar as well as several other timely two- and onehour courses. Register online using IIABSC Education & Event Calendar. See below for course descriptions.
Ethics: Yesterday, Today & Tomorrow
This course fulfills the 3 hrs’ Ethics CE requirement by the SC Department of Insurance. Ancient philosophers like Aristotle and Socrates devoted much of their lives to the study of ethics. Today, we share these same philosophies to enhance our lives both personally and professionally. This course will discuss not only where the study of ethics originated, but will review our current ethical situations—specifically what affects us as insurance professionals. 3 hrs.’ Ethics credit. $60 for members.
CP Endorsements That Can Make You Money
This is a fun and informative two hour webinar that will show you how to use a few common (and some not so common) endorsements that will close those coverage gaps as well as generate some income for the agency. More importantly they may be the difference between you and your competition that will land you a few good accounts. Filed for 2 hrs.’ P&C credit. $45 members/ $65 nonmembers.
Education > Webinars
Rental Cars
HO Changes
The one thing that never changes about the insurance business is that everything keeps changing! This webinar will look at each of the changes to the brand new, hot off the shelf 2011 Homeowners Program effective in SC in May 2011. We will also identify for each of the changes if it is a broadening or restriction of coverage and the implication it has for your clients!. This course is a must for your personal lines staff. Length and resulting cost TBD.
Insuring Condos
There are three things agents must understand to adequately write insurance for a condominium unit-owner. This webinar will address all three issues and review the coverages provided in the insurance policy. You may have heard the saying “when writing condos... either get in or get out.” Nothing could be more true and we will explain why. Topics include: how to read and understand association documents, understanding the SC Horizontal Property Regime Statute, and applicable coverages in the insurance policy. Filed for 2 hrs.’ P&C credit. $45 members/ $65 nonmembers.
One of the most frequently asked questions in personal lines is: “Does my policy cover me when I rent a car?” This question is loaded with potential problems. We will take a look at the rental car agreement and the insurance policy to shed some light on the situation. We will discuss the rental exposure, rental car agreements, coverages and exclusions under the Personal Auto Policy, gaps in the PAP, and give you some risk management steps the agency can take to minimize the E&O exposure involved with this issue. Filed for 2 hrs.’ P&C credit. $45 members/ $65 nonmembers.
Lunch & Learn Series
We know your time is an important factor in deciding to attend a course. In response we developed the Lunch and Learn series in order to minimize the impact on your attention to your clients and maximize your continuing path of “Excellence Through Education.” Only one hour long, each seminar starts at noon and is only $25. More info about “Lunch and Learn” webinar series on page 42.
IIABSC Professional Development: Excellence through Education Winter 2011 • South Carolina Agent & Broker
35
Independent Insurance Agents & Brokers of SC
Palmetto Partners Program Program Levels:
IIABSC offers a special thanks to our 2011 Palmetto Partners. The program was created as a simplified way for
Diamond: Platinum: Gold: Silver: Bronze:
companies, brokers and vendors to support the association and all our major conferences and events on an ongoing basis. They contribute once annually and are not solicited for additional sponsorships or support for the rest of the year.
$12,000 annually $10,000 annually $8,000 annually $5,000 annually $3,000 annually
Diamond Level Johnson & Johnson IIABSC Agency
Platinum Level
Bankers Insurance United Property & Casualty Ins. Co.
Gold Level
St. Johns Insurance Company
Silver Level
American Strategic Insurance Companion Property & Casualty Ins. Co. Frontline Homeowners Insurance
Bronze Level
AFCO/ Prime Rate Premium Finance Corp. AmTrust North America Capitol Preferred Insurance Main Street America Group Preferred Specialty, LLC Southern Cross Underwriters Tapco Underwriters, Inc. Zurich Small Business/ Farmers/ Foremost
Download forms and detailed program benefits at:
www.iiabsc.com 36
South Carolina Agent & Broker • Winter 2011
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Winter 2011 • South Carolina Agent & Broker
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I
BIG MARKETS
Market your agency with the new Member Marketing Activity Center www.independentagent.com/MMAC
South Carolina Product Availability: Commercial Lines:
Personal Lines:
ACEC Business Insurance Bonds Bid Contractor Performance Surety Other Business Pac (Travelers Select) Commercial Office Pac (Travelers Select) Commercial Auto Commercial Builders’ Risk Commercial Media Umbrella Commercial Property Umbrella Commercial Package Policy (150 subclasses) Community Banks Business Insurance Program Employers‘ Practices Liability Environmental Impairment-Pollution Coverage Event Cancellation (EXPO Plus) Event Liability Executive Liability (Wrap+) Financial Advisors’ E&O Fine Art & Valuable Articles (Stand-alone) Flood Insurance Flood Insurance - Excess Habitational Markets Apartments Condo and Homeowner Associations Hospitality/Restaurant Program Bar/Tavern Program Family Style Restaurant Fast Casual Fine Dining Restaurant Nightclub Program Miscellaneous Professional Liability Non-Profit D&O Liability Outdoor Markets Guides & Outfitters Rod & Gun Clubs Fishing and Hunting Lodges & Plantations Real Estate E&O proliability Program Recreational Vehicles Technology Consultants Professional Liability Valuable Articles (Stand Alone) Workers’ Compensation
Affluent 3:1 Package (Three Carriers) ACE Chubb Fireman’s Fund At-Home Business Collector Car Policy Event Liability Fine Art & Valuable Articles (Stand-alone) Flood Insurance Excess NPC CBRA Non-standard Homeowners Affluent Non-standard Homeowners Coastal Homeowners Corporate/LLC Owned Homeowners Non-standard Condos Non-standard Homeowners Non-standard Rental Dwellings Non-standard Renters Personal Builders’ Risk Seasonal Homeowners Unprotected Homeowners Unsupported Secondary Homeowners Vacant Dwelling Personal Builders’ Risk Personal Excess Policy Personal Umbrella Policy Personal Umbrella Policy (Alt. Market) Recreational Vehicles Vacant Property Program (Admitted) Valuable Articles (Stand Alone)
www.bigimarkets.com
Big “I” Markets (BIM) is the IIABA member’s online market access program with no fees, no volume commitments and competitive commissions.
Online Registration We’ve made it easier than ever to Plug into the Power of Big “I” Markets! Register online today and discover a fresh new way to do business. All products are only accessible online and coverage is subject to licensing compliance and underwriting approval. To register online you will need your login ID and password, your agency tax ID number, your agency E&O policy, and your state agency/agent license information (where applicable). Log on to www.bigimarkets.com today to begin the registration process and be quoting in minutes! 38
South Carolina Agent & Broker • Winter 2011
Insure your Future with InsurPAC
Join us for the
Big “I” Legislative Conference & Convention
April 13–15
We make your voice heard in Washington
Washington, D.C.
Issues on the table include optional federal charter (federal regulation of insurance) and state of NFIP, McCarran-Ferguson Act (anti-trust exemptions), and health-insurance reform.
"What is this 'InsurPAC' thing, anyway?"
InsurPAC is the Political Action Committee of our national association. It was established more than thirty years ago to complement IIABA's legislative program and has since become the largest property & casualty insurance industry PAC in the country. InsurPAC is one of the reasons the Big "I" is routinely rated in Fortune magazine's Top 25 list of most successful lobbying groups in Washington, D.C. With health-insurance reform, senators stalling NFIP renewals and certain groups using the economic crisis as an excuse for the federal regulation of insurance, your contribution has never been more important! InsurPac raises funds by asking for voluntary personal contributions from independent agents and brokers throughout the country. By pooling these monies together, InsurPac helps elect candidates and re-elect members of the U.S. Congress who share IIABA's business philosophy. Why is it important for InsurPac to financially support members of Congress? The reasons are clear: Attention, access, getting our foot in the door. While contributions do not buy solutions to legislative debates, they do allow members of IIABA's government affairs team significant face time with elected officials. Through InsurPac, IIABA is allowed the opportunity to educate these members and develop working relationships with them. Lobbying and a well-funded PAC go hand in hand. Thank you 2010 contributors! Your names will be published in next issue of SC Agent & Broker magazine. For more information about InsurPAC, please contact Scott Moseley (803.781.4700, irmoins@bellsouth.net) or Ken Finch (864.942.8060, kfinch@ecountybanc.com).
Calendar For course descriptions and up-to-date calendar, see our Education & Event calendars at www.iiabsc.com
January
13
AIAM 210 & 220, Columbia, 6 hrs. P&C
25
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
14
CRIS Property Ins for Contractors, Greenville, 6 hrs. P&C
CIC Commercial Property, Columbia, 20 hrs. P&C
20–22
CIC Ruble Graduate Seminar, Myrtle Beach, 20 hrs. CE
26
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
28
AAI 83B, Columbia, 6 hrs. P&C
26-28
February 2
CISR Agency Operations, Bluffton/HHI, 6 hrs P&C or L&H, 1 hr. Ethics
2
Surplus Lines Markets & Practices, Charleston, 6 hrs. P&C
May
8
Ethics: Yesterday, Today & Tomorrow, Charleston, 3 hrs. Ethics
4
Ethics: Yesterday, Today & Tomorrow, Columbia, 3 hrs. Ethics
8
Setting Business Income Limits, Webinar*, 1 hr. P&C
5
AIAM 510 & 520, Greenville, 6 hrs. P&C
10
CRIS Workers Comp for Contractors, Charleston, 6 hrs. P&C
5
Business Income: Mystery Solved, Charleston, 6 hrs. P&C
15
CRIS Commercial Liability for Contractors, Columbia, 6 hrs. P&C
10
CRIS Contractual Risk Transfer, Columbia, 6 hrs. P&C
16
AIAM 110 & 120, Columbia, 6 hrs. P&C
11
CISR Agency Operations, Columbia, 6 hrs P&C or L&H, 1 hr. Ethics
17
CISR Commercial Casualty, Charleston, 7 hrs. P&C
18
E&O Risk Management, Greenville, 6 hrs. P&C
18
Insuring Condos, Webinar*, 2 hrs. P&C
19
CISR Personal Residential, Greenville, 7 hrs. P&C
22
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3hrs. Ethics
26
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
22
CISR Personal Auto, Columbia, 7 hrs. P&C
26
AAI 83C, Columbia, 6 hrs. P&C
23
AIAM 410 & 420, Greenville, 6 hrs. P&C
24
CISR William T. Hold Seminar, Columbia, 8 hrs. CE
June
24
Rental Cars, Webinar*, 2 hrs. P&C
7
CISR Personal Auto, Charleston, 7 hrs. P&C
8
Ethics: Yesterday, Today & Tomorrow, Hilton Head, 3 hrs. Ethics
9
SC Agents Technology Conference, Columbia
CIC Commercial Casualty, Greenville, 20 hrs. P&C
14
AIAM 201 & 220, Charleston, 6 hrs. P&C
3
E&O Risk Management, Columbia, 6 hrs. P&C
15
AIAM 310 & 320, Columbia, 6 hrs. P&C
8
AIAM 110 & 120, Charleston, 6 hrs. P&C
16
CISR Commercial Property, Myrtle Beach, 7 hrs. P&C
8
CISR Commercial Property, Greenville, 7 hrs. P&C
21
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
11
Ethics: Yesterday, Today & Tomorrow, Columbia, 3 hrs. Ethics
23
E&O Risk Management, Columbia, 6 hrs. P&C
15
CISR Commercial Property, Rock Hill, 7 hrs. P&C
22–24
CIC Life & Health, Charleston, 20 hrs. L&H
15
How to Complete Business Income Worksheet, Webinar*, 2 hrs. P&C
28
Business Income: Mystery Solved, Greenville, 6 hrs. P&C
16–17
Spring Conference, Columbia
22
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
July
23
CISR Personal Residential, Columbia, 7 hrs. P&C
13
CISR William T. Hold Seminar, Greenville, 4 hrs Ethics, 4 hrs. P&C
24
CISR Dynamics of Service, Charleston, 7 hrs. P&C or L&H
19
Surplus Lines Markets & Practices, Greenville, 6 hrs. P&C
24
Advanced Flood, Webinar*, 2 hrs. P&C
21
CISR Personal Residential, Bluffton/HHI, 7 hrs. P&C
24
AAI-83A, Columbia, 6 hrs. P&C
26
E&O Risk Management, Myrtle Beach, 6 hrs. P&C
HO Changes, Webinar*, TBD
26
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
21
CRIS Commercial Auto, Surety, CIPs, Misc. Lines, Charleston, 6 hrs. P&C
March 2–4
30
April 5
CISR Commercial Casualty, Florence, 7 hrs. P&C
August
5
Surplus Lines Markets & Practices, Columbia, 6 hrs. P&C
9
AAI-81A, Columbia, 7 hrs. P&C
6
Ethics: Yesterday, Today & Tomorrow, Greenville, 3 hrs. Ethics
11
CISR Commercial Property, Charleston, 7 hrs. P&C
* Webinar dates are tentative. For up-to-date listing view online Education and Event Calendar on our website. 40
South Carolina Agent & Broker • Winter 2011
continued on page 42
This is my insurance company.
This is why.
Family matters to my customers, and my customers matter to me. That’s why I offer coverage from Universal North
(866) 338-4262, ext. 6540 UniversalNorthAmerica.com
America®. Experienced, smart and dependable, Universal North America responds quickly when my customers need a helping hand. n
Rock-solid financials and a strong reinsurance program
n
Uncompromising coverage and service
n
Easy, online rating and policy management through My Universal®
n
Competitive rates and commissions
I give 100% to my customers every day and expect nothing less from the provider I recommend. That’s why Universal North America is my insurance company.
HOME
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Universal North America Insurance Company is rated A - (Excellent) by A.M. Best & Company. Insurance products are issued and underwritten by one of Universal North America’s insurance companies: Universal North America Insurance Company or Universal Insurance Company of North America. Issuance of coverage is subject to underwriting review and approval. Products may not be available in all states. © 2011 Universal North America.
Winter 2011 • South Carolina Agent & Broker
41
17
Ethics: Yesterday, Today & Tomorrow, Charleston, 3 hrs. Ethics
18
Roadshow, Hilton Head, 6 hrs. CE
18
CISR Personal Auto, Columbia, 7 hrs. P&C
23
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
24–26
CIC Agency Management, Greenville, 16 hrs P&C or L&H, 4 hrs. Ethics
30
AIAM 410 & 420, Columbia, 6 hrs. P&C
September 7
AAI-81B, Columbia, 7 hrs. P&C
7
AIAM 610 & 620, Greenville, 3 hrs. Ethics & 2 hrs. P&C
8
CISR Commercial Casualty, Greenville, 7 hrs. P&C
8
Ethics: Yesterday, Today & Tomorrow, Columbia, 3 hrs. Ethics
15
CISR Personal Auto, Rock Hill, 7 hrs. P&C
15
CRIS Workers Comp for Contractors, Columbia, 6 hrs. P&C
20
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
21
E&O Risk Management, Columbia, 6 hrs. P&C
22
Roadshow, Columbia, 6 hrs. CE
27
Surplus Lines Markets & Practices, Myrtle Beach, 6 hrs. P&C
28–30
CIC Personal Lines, Myrtle Beach, 20 hrs. P&C
October 6
CISR Dynamics of Service, Columbia, 7 hrs. P&C or L&H
11
CISR Personal Residential, Charleston, 7 hrs. P&C
12
AAI-81C, Columbia, 7 hrs. P&C
18
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
19
AIAM 510 & 520, Columbia, 6 hrs. P&C
20
AIAM 310 & 320, Charleston, 6 hrs. P&C
25
CRIS: Commercial Liability for Contractors, Greenville, 6 hrs. P&C
30–31
IIABSC Annual Convention, Charleston Place Hotel
November 1
IIABSC Annual Convention, Charleston Place Hotel
3
CISR Personal Auto, Greenville, 7 hrs. P&C
8
Roadshow, Charleston, 6 hrs. CE
9–11
CIC Commercial Property, Hilton Head, 20 hrs. P&C
15
CISR William T. Hold Seminar, Charleston, 4 hrs. Ethics, 4 hrs. P&C
16
CISR Personal Residential, Florence, 7 hrs. P&C
16
E&O Risk Management, Hilton Head, 6 hrs. P&C
17
Ethics: Yesterday, Today & Tomorrow, Greenville, 3 hrs. Ethics
22
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics
29
CISR Agency Operations, Charleston, 6 hrs P&C or L&H, 1 hr. Ethics
December 1
Surplus Lines Markets & Practices, Columbia, 6 hrs. P&C
7
CISR Commercial Casualty, Columbia, 7 hrs P&C
13
CISR Agency Operations, Greenville, 6 hrs P&C or L&H, 1 hr. Ethics
13
Ethics: Yesterday, Today & Tomorrow, Columbia, 3 hrs. Ethics
14
AIAM 610 & 620, Columbia, 4 hrs. Ethics & 2 hrs. P&C
15
Ethics: Yesterday, Today & Tomorrow, Webinar*, 3 hrs. Ethics * Webinar dates are tentative. For up-to-date listing view online Education and Event Calendar on our website.
42
South Carolina Agent & Broker • Winter 2011
www.iiabsc.com
Are you walking the E&O tightrope by not offering personal umbrella protection to your clients?
In today’s crowded field of personal umbrella options, one carrier stands out; RLI, with its “stand alone” personal umbrella policy. Why RLI? 20% of agency E&O claims are from failure to procure coverage. 100/300 auto limits available for most customers. Flexibility to take advantage of RLI's personal umbrella and still get auto or home iiicoverage from any carrier. Competitive, low premiums for increased limits of liability, up to $5 million on A+ iiirated paper. Friendly, broad underwriting so most people easily qualify for the program. iA simple, self-underwriting application that lets you know immediately if the insured iiiis accepted and offers automatic, direct billed renewals. Support your association by accessing the RLI personal umbrella.
For more information on this program, please visit
www.independentagent.com/RLI
I
BIG MARKETS 44
South Carolina Agent & Broker • Winter 2011
The Big “I” Young Agents Committee provides you with the tools you need to succeed as a leader today and tomorrow
Learn more at: www.iiabsc.com > Member Resources > Young Agents Winter 2011 • South Carolina Agent & Broker
45
2011 Board of Directors Directors Chairman Kathy D. McKay, CIC, CPIW McKay Insurance Mt. Pleasant, SC kmckay6681@aol.com
National Director Jon A. Jensen, AAI, AIP Correll Insurance Group Spartanburg, SC jjensen@correllinsurance.com
Chairman Elect/ Treasurer Ashley Brady, CIC First Charter Co., Inc Marion, SC abrady@firstcharterins.com
Immediate Past Chairman Julius J “Jules” Anderson, Jr., AAI Anderson Ins Assoc Charleston, SC janderson@aiasc.com
Secretary Kenneth A. “Ken” Finch, CPCU, CIC, CRM, AAI Countybanc Insurance Greenwood, SC kfinch@ecountybanc.com
R. Scott Moseley Irmo Insurance Agency Irmo, SC scotirmo@bellsouth.net
Angus M. Brabham, IV, CIC (Gus) Frank B. Norris & Co. Columbia SC gbrabham@franbnorris.com
Edward S. Spivey, CIC, AAI (Spider) Howard B. Smith Agency Mullins, SC espivey@hbsmithagency.com
David A. Cyphers, CIC, AAI Sifford-Stine Insurance Clover, SC dcyphers@sifford-stine.com
James G. Taylor, Jr., CIC (Jay) Kinghorn Insurance Agency of Beaufort Beaufort, SC jtaylor@insurancebeaufort.com
Kimberly J. Gore, CIC (Kim) Associated Insurors Myrtle Beach, SC kgore@firstseinsurance.com
Richard L. Walker, CIC Cormell Street & Patterson Florence, SC rwalker@csp4me.com
Larry G. Joyner, CIC, AAI CWS Ins Agency Spartanburg, SC larry@cwsinsurance.com
we interrupt our regular
coverage to bring you
this commercial. 46
South Carolina Agent & Broker • Winter 2011
....................................................................................
Executive Committee
Thomas M. Bates, Jr. (Tom) Herlong Bates Burnett Insurance Greenville, SC tom@herlongbatesburnett.com
After insuring residential homebuilders for nearly 25 years, Builders Mutual has expanded into commercial construction. At a moment like this, Builders Mutual has the expertise to serve contractors specializing in commercial construction. We are well-positioned to provide both. Workers’ Compensation Commercial Package Policy Commercial General Liability
Commercial Property Commercial Inland Marine Commercial Crime Commercial Auto Umbrella Liability
Your commercial customers will be eligible for all the same treatment and benefits as residential builders, from our personalized risk management services to our record-setting dividends. You’ve always known us as the industry experts, so why would you turn anywhere else to cover your commercial customers? Let us give you a quote and see what we’ll do to earn your business.
(800) 809.4859 | www.buildersmutual.com
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