Oregon Agent | Q2 2022

Question: Is writing E&S insurance always this difficult?

Answer: Not if you come to Griffin.

P: 800.562.8095 I F: 425.453.8696

We make it EASY!

Griffin Underwriting Services has the expertise, customer service, and product availability to help you navigate the excess and surplus lines market with ease.

submissions@gogus.com Serving over 2,200 agents throughout Washington and Oregon, and a proud supporter of IIABW.

“I love spending hours trying to quote online.”

SAID NO AGENT EVER. No agent ever said they enjoy wasting time.

But they have said fast online quoting with a clear understanding of appetite is key to a successful partnership.

UFG Insurance listened.

Welcome to a better way to work online — because you deserve it.

BOP-Pro Get down to (small) business with this robust businessowners policy, including select endorsements to take coverage to the next level.

Pro-Quote Get from start to bind with fast efficiency thanks to smart tools and straight-forward appetite within this enhanced quoting experience.

Simple solutions for complex times

UFG’s rejuvenated online experience isn’t about being better than others — it’s about being better for agents like you. Explore our simple solutions for complex times and experience service aimed to exceed expectations.

ufginsurance.com/online © 2021 United Fire & Casualty Company. All rights reserved.

CONTENTS BIG I OREGON AWARD WINNERS

Big I Oregon PO Box 68366 Portland, OR 97268 Phone: 503-274-4000 Fax: 503-274-0062 Toll Free: 866-774-4226 Big I Oregon Staff Tyra Dressel | Executive Director tyra@bigioregon.com LeeAnn Smelley | Director of Member Services LeeAnn@bigioregon.com Kate Hasenauer | Project Liaison kate@bigioregon.com Jill Tieu | Bookkeeper jillt@bigioregon.com

Congratulations to all of the Big I Oregon Award Winners! See the list of winners on pages 24-25.

PRESIDENT’S MESSAGE......................................5-6 2022: Returning to the New & Improved Normal THE DIRECTOR’S CORNER...............................10 Adaptability in 2022 VIRTUAL UNIVERSITY...........................................16-17 When Sweet Fifi Bites LEGISLATIVE UPDATE..........................................26 Unprecedented Occurrences in the OR Legislature

Melissa Reed | Director of Agency E&O oregoneoteam@bigioregon.com

INDEPENDENT AGENT.......................................28-29 2022 Digital Trends: Translate Client Data into Insights

April Pitz | RLI Administrator April.Pitz@iiaba.net

E&O.....................................................................................27-28 An Agent’s (Legal) Duty to Advise: Updated

Roger Beyer | Big I Oregon Lobbyist roger@rwbeyer.com

ADVERTISER INDEX Applied Underwriters......................................32 auw.com/us

Rothert Insurance.......................................17 rothertinsurance.com

Berkshire Hathaway GUARD.........................6 guard.com

UFG..................................................................3 ufginsurance.com

Griffin Underwriting Services.......................2 goGus.com

Western National.........................................12 wnins.com

Imperial PFS......................................................29 ipfs.com Iroquois Northwest..........................................7 iroquoisgroup.com

For more information on advertising, contact Kaylyn Staudt at kaylyn@iiaw.com.

The Oregon Agent is a publication of the Independent Insurance Agents and Brokers of Oregon and is published quarterly by Independent Insurance Agents of Wisconsin. Big I Oregon reserves the right in its sole discretion to reject advertising that does not meet Big I Oregon qualifications or which may detract from its business, professional or ethical standards. Big I Oregon and IIAW do not necessarily endorse any of the companies advertising in the publication or the views of its writers. The publisher cannot assume responsibility for claims made by advertisers, context provided by the editor, or for the opinions expressed by contributing authors.

4 | Q2 2022 |

PRESIDENT’S MESSAGE

2022: RETURNING TO THE NEW & IMPROVED NORMAL I really wish I was sitting across the table from you having a conversation rather than you reading this. I’m writing this article at the end of January By: Lyndsay Kooistra and beginning Big I Oregon President LaPorte Insurance of February. Who knows what the next few months have in store for us. I’m out of the prediction business! My expectation is that we’re starting to “go back to normal,” whatever that means. In anticipation of that, this article is going to take you through a series of questions I want you to ask yourself or discuss with your partners or friends.

•

My first set of questions are: Will we ever go back to the way things were prior to Covid? Will our businesses be the same?

How do we go from surviving back to thriving?

I was introduced to Sara Bradshaw Ray Senior Vice President of Strategic Initiatives for Big I Oklahoma and founder of MyNetwork. I’m part of her mastermind group for insurance leaders. Our warmup for our late January meeting was “I’m most excited about 2022 because …” My answer was “I’m excited to go back to a new and improved normal.”

•

Second set of questions: What does that look like for your agency?

What are you excited about for 2022?

I was in a Zoom networking call mid-year 2020. There were a lot of participants from all different industries going around the Brady Bunch squares answering the question, “What is your positive takeaway from Covid?”

Most of the people were insightful, addressing their ability to find more time for work, their families, picking up new hobbies, etc. When it was my turn, I was proud to advise I was right not to get my degree in early childhood development! This was shortly after I was on a Zoom call with new clients and my kindergartner son kept interrupting with questions about how to log into school online and I looked down to see my one-year-old daughter under my desk with a marble in her mouth. (We don’t even own marbles!)

•

Third set of questions: How have you gotten better since Covid? How are you making lemons out of lemonade? Did you add vodka?

I suppose one positive thing from Covid is that we all know how to work remotely from home or other locations. The issue now is how to stay connected. Think of your agency as a three-legged stool that supports the business. We have internal team members, carrier partnerships, and client interactions and relationships.

I have been missing all of the fun things we did as an agency pre-Covid. | Q2 2022 | 5

Our charity work, Christmas Party, Summer Picnic, potlucks, anniversary celebrations … the list goes on! I want us to keep the camaraderie and culture we’ve created over time. We’re together but in a new way.

I often think of my old job as a carrier marketing representative. Not having the ability to go into an agency, sit down to talk about all the new things going on, pipeline, build relationships, etc.

We’ve had some fun and engaging meetings with our carriers’ partners, complete with trivia games and gift cards for lunch. It is really hard to engage, so reps are trying to figure out what engages and moves people right now.

We’ve had to change our approach with current and new clients. Meeting in person works for some, and others only want Zoom. I think most people are excited to see us again, smiles behind our masks, to talk insurance and learn more about their business and how we can best insure them.

•

Fourth set of questions: How do we motivate our salespeople when networking and cold calling is so different? Are we going back to an office or are we going to work remotely indefinitely? If our new normal means less in person, how do we stay connected? How do we get together, share knowledge, keep our company culture and values?

We ended that mastermind meeting with: What is the one thing you’re going to focus on in 2022?

•

These are my last questions to you: Is your focus going to be on connection, process, prospecting, networking? What did you learn? What are you going to do about it?

What is my answer you might ask? Focus.

I want to focus on focus. Redundant, yes, but my goal is to spend time on what is important to my clients, agency and family.

I wish you all a very happy, prosperous and focused 2022!

Commercial Personal Lines We offer insurance solutions for homeowners and for small, medium, and large businesses with competitive pricing, an easy submission process, and the opportunity for multi-product discounts. Visit www.guard.com to see what we can do for you.

Businessowner’s

Homeowners

Commercial Auto

Personal Umbrella

Commercial Umbrella

Workers’ Compensation

Pay-As-You-Go options with over 200 payroll partners!

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/ Not all Berkshire Hathaway GUARD Insurance Companies provide the products described herein nor are they available in all states.

Visit www.guard.com/states/ to see our current product suite and operating area.

6 | Q2 2022 |

Built To Fit How is it that The Iroquois Group works effectively with Member Agencies with $2 million in premium and others with $200 million?

Because Iroquois builds a custom solution for each agency utilizing our markets, resources and benefits. We can create just the right fit for your agency too.

For over 40 years Iroquois has helped agencies grow their revenue and strengthen their independence.

Visit IroquoisGroup.com to explore what we can design for your agency.

Denise Moore, CIC Regional Manager | Oregon & Idaho (503) 396-2225 dmoore@iroquoisgroup.com iroquoisgroup.com

Is Iroquois The Right Fit For Your Agency?

Want to avoid initiation or monthly fees?

We don't charge any.

Want to earn superior compensation from your carriers?

We can show you how.

Want direct carrier appointments outside the Iroquois network?

Not a problem.

Want to remain independent and in charge of your agency?

We offer information and options, but you make all the decisions for what is best for your agency.

2022 EXECUTIVE COMMITTEE

JENNIE WEILAND Vice President PayneWest Insurance Beaverton, OR 21 Years

ED DAVIS National Director Maps Insurance Services Salem, OR 57 Years 8 | Q2 2022 |

LYNDSAY KOOISTRA President LaPorte Insurance Portland, OR 20 Years

MARK ATKINSON Immediate Past President Atkinson Insurance Group Portland, OR 39 Years

RUSS SCHWEIKERT President-Elect Ashland Insurance, Inc. Ashland, OR 28 Years

TIM CUNDARI Finance Chair Cundari Insurance Portland, OR 27 Years

TYRA DRESSEL Executive Director Big I Oregon Lake Oswego, OR 29 Years

2022 EXECUTIVE COMMITTEE

2022 BOARD OF DIRECTORS

KRISTON CORRELL JUUL Insurance Agency North Bend, OR 24 Years

STEVE LACESA Oak Tree Insurance Lake Oswego, OR 38 Years

JAMES SABIN WAFD Brookings, OR 17 Years

TJ SULLIVAN Legislative Chair BH Insurance Salem, OR 25 Years

TRISH FULWILER J.D. Fulwiler Insurance & Co. Portland, OR 25 Years

MATT PIDCOCK Valley Insurance LaGrande, OR 18 Years

KAITY BLACKSHER NextGen Chair Atkinson Insurance Group Portalnd, OR 17 Years

DEBORAH MOHR Assured Partners Forest Grove, OR 26 Years

DALLAS ROSS Timmco Insurance Beaverton, OR 9 Years

STEPHEN SMELLEY Goldfinch Consulting Beaverton, OR 35 Years

MICHELLE GALLARDO NextGen Immediate Past Chair The Partner’s Group Portland, OR 18 Years

MARTY KANTOLA Chet Hill Insurance Ashland, OR 38 Years

BOB ROSSON Timmco Insurance Portland, OR 28 Years

2022 BOARD OF DIRECTORS

| Q2 2022 | 9

THE DIRECTOR’S CORNER

By: Tyra Dressel Executive Director of Big I Oregon

“Adaptability is being able to adjust to any situation at any given time.”

- John Wooden

ADAPTABILITY IN 2022

Wasn’t that the truth in 2020 and 2021 and now again in 2022? Am I right in saying that nothing can surprise us now?! We’ve all become adaptable if we weren’t already, and while things aren’t always going the way we want them to, the good news is they are going!

We are meeting, networking, and getting the word out. Whether over Zoom, in-person, in an e-newsletter, or magazine, we are making progress, growing, learning, and having fun too!

We’re doing all of this because it matters, and we’ve figured out how to make things happen regardless of what obstacles are trying to stop us.

The National Legislative Conference in Washington, D.C. is April 27-29, 2022. Thousands of agents will be visiting Capitol Hill to lobby members of the House, Senate, and their staff on issues that directly impact independent agents and consumers. I am grateful we have members willing to take time out of their busy schedules to attend this important event and make an impact. Their volunteerism makes it easier for us to do our jobs and protect our independent agency system and our customers.

Time for a little bragging - The Big “I” was the only property-casualty insurance agent or broker group to be listed in The Hill, a prominent political newspaper, among the top trade association lobbyists. “The Big ‘I’ is proud to have our president & CEO and senior vice president of government affairs recognized, once again, by one of the premier political newspapers in the country,” says Bob Fee, Big “I” Chairman and President of Fee Insurance in Hutchinson, Kansas.

10 | Q2 2022 |

“It is an honor to be selected for this list and serves as a testament to the hard work of Bob Rusbuldt, Charles Symington and the entire government affairs team. Their meaningful relationships and dedication result in our association being named among the most influential in the country time and again.”

No matter your political involvement level, I encourage you to join us for a monthly “Brown Bag Legislative Update”. Grab your lunch and join us for a legislative update from Roger Beyer on the second Tuesday of each month, noon – 1 p.m., via Zoom.

Open to all and FREE for Big I Oregon members.

August 21-23, 2022, you will find us at the beautiful Sunriver Resort for InsurCon 2022. The location is ideal and lends itself to bringing the family or hosting a staff retreat while taking in all our convention offers. We are planning a fabulous lineup of speakers, events, and activities and can’t wait to see you there!

More exciting news…we’ve expanded our online Continuing Education (CE) offerings; we have tons of new content, having added over 100 new CE courses through ABEN (Agents & Brokers Education Network)! If you need a few CE hours or several, you can select from a wide array of courses and work toward your 24 hours of CE. Visit https://iiaor.aben.tv to get started.

Whether in-person, online, a virtual meeting, or a legislative conference, Big I Oregon is working away to do everything we can to give our members the resources necessary to do their jobs and do them well. Keep up the amazing work, stay positive and keep your sense of humor!

| Q2 2022 | 11

YOUR CLIENT LOOKS PRETTY CONFIDENT.

Their business must be protected

by Western National Insurance.

Western National carefully crafts policies to fit your client’s unique business insurance needs – so they can feel confident in their coverage.

www.wnins.com

RING IN STAND-ALONE JEWELRY COVERAGE SALES! When it comes to insuring your clients’ jewelry, often a standalone, specialty jewelry insurance policy provides the best option for protection. That’s why Big “I” Markets has partnered with Jewelers Mutual to bring a fast and easy solution for this market to Big “I” members.

Big “I” Markets agents can quickly quote through our direct portal located at jewelry.bigimarkets.com.

Many policies are issued at the point of sale without a need for underwriting review, and policies protect against loss, theft, damage, and mysterious disappearance.

As always, there are no fees, no production minimums, and you own your expirations. Visit Big “I” Markets’ dedicated jewelry portal at www.jewelry.bigimarkets.com. In order to receive commission, you must also request a quote in Big “I” Markets.

LEARN MORE AT WWW.BIGIMARKETS.COM.

June 2020

| Q2 2022 | 13

2022 Premier Partners THANK YOU TO OUR PREMIER PARTNERS FOR THEIR CONTINUED SUPPORT!

D I A M O N D

P L U S

D I A M O N D

14 | Q2 2022 |

PLATINUM

GOLD

SILVER

BRONZE Acuity Insurance Chubb Mid Valley General Agency Mutual of Enumclaw

Sublimity Superior Underwriters Western National | Q2 2022 | 15

VIRTUAL UNIVERSITY

WHEN SWEET FIFI BITES By: Chris Boggs

Executive Director Risk Management & Education, IIABA

Depending on the source, there are between 78 to 90 millon dogs in the US. The American Veterinary Medical Association (AVMA) reports 78 million dogs and the Amercian Pet Products Association (APPA) asserts 90 million.

Regardless the true number, the insurance industry reported 17,297 dog bite claims in 2018, resulting in $675 million in total liability payment. Although this is a 6 percent decrease from 2017 numbers, industry statistics from the Insurance Information Institute (I.I.I.) show that approximately one-third, if not more, of homeowners’ insurance liability claims are attributable to dog bites.

Approximately 4.5 million people were bit by dogs in 2018, and one in five of the victims required medical attention according to the AVMA. And the I.I.I. reports that the average cost of a dog bite claim was $39,017 in 2018 - a 5.3 percent increase over 2017 costs and more than twice the cost in 2003.

Where do most dog bites occur and who gets bit most often? Statistically, 61 percent of dog bites occur at the owner’s home; and 77 percent of victims are bitten by a dog owned by a family member or family friend.

Nature Vs. Nurture: Breed Vs. Training Animals 24-7 editor, Merritt Clifton, conducted a long-term study of dog bit fatalities to determine if breed mattered. His study covered the period September 1982 to May 2016.

16 | Q2 2022 |

During that period 658 documented cases of dog-attack deaths were reviewed.

Seventy-eight percent of fatalities were attributable to five breeds, and pit bulls accounted for more than half the fatalities: • Pit bull / pit bull mix 53.5 percent of the fatalities; • Rottweiler / Rottweiler mix 14 percent of the fatalities; • Husky / husky mix 4.3 percent of the fatalities; • German shepherd / German shepherd mix 4 percent of the fatalities; and • Bull mastiff / bull mastiff mix 3 percent of the fatalities.

From 2017 through 2018, pit bulls accounted for 74 percent of dog attack deaths in the US and Canada. Seventy-three of the 99 dog-attack deaths were by pit bulls.

Dog Owner Liability States treat dog bites differently, applying one of three concepts to govern the liability or responsibility imposed on dog owners: • Strict Liability (“Dog Bite Statute”): Thirtyfour states and the District of Columbia apply a “Dog Bite Statute.” Dog owners in 31 of these states (and DC) are strictly liable for any injury or property damage caused by the dog (a trespasser, someone committing a crime or the victim harassing or teasing the dog may be exceptions).

Three “Dog Bite Statute” states apply negligence laws rather than strict liability within their dog-bite statutes.

In general, these statutes mandate that the owner has a duty to keep the dog under control and failure to do so could result in civil liability.

These states are: •Georgia: if the dog is “vicious or dangerous;” • Hawaii (applies a mixture of strict liability and negligence): Strictly liable if dog known to be dangerous; but can be found negligent regardless of the “propensity” of the dog to violent behavior; and • Tennessee: regardless of the propensity of the dog to violence.

• “One-bite” rule: Sixteen states do not have “Dog Bite Statutes.” These states apply the “one-bite” rule. In “one-bite” states, the owner is not held liable for the dog’s first bite. But once an animal has demonstrated vicious behavior, such as biting or otherwise displayed a “vicious propensity,” the owner can be held liable for future bites. Some states have moved away from the absolute application of the onebite rule and hold owners responsible for any injury, regardless of whether the animal has previously bitten someone, if the dog is of a known dangerous breed (based on nature).

These are known as “mixed dog bite statute states” as they apply a mixture of the “onebite” rule and the strict liability rule based on the breed.

• Negligence laws: Several “one-bite” states apply the concept of negligence in determining the liability of the owner.

Essentially, the dog owner is liable if the injury occurred because the dog owner was unreasonably careless (negligent) in controlling the dog. Four requirements must be met to prove the owner was negligent: 1) the dog’s owner had a duty to use reasonable care in handling or controlling the dog; 2) the duty was breached; 3) an injury was inflicted; and 4) the injury was a direct result of the breach of duty.

Regardless of the law or concept applied, most

states do not hold dog owners liable for injury to trespassers.

If a dog owner is statutorily held or judged to be legally responsible for injury or damage, he may be required to pay the injured person’s: 1) medical bills; 2) lost wages; 3) pain and suffering; and 4) property damage (if any).

Visit bit.ly/DogLiabilityRules to see dog owner liability rules by state.

Insurer Response Homeowners’ insurers take dog bites very seriously. Both Insurance Services Office (ISO) and American Association of Insurance Services (AAIS) have promulgated dog-bite liability exclusions. And some carriers have developed proprietary dog-bite exclusions (or limitations).

However, some state’s Homeowners’ rules do not allow the use of a dog bite exclusion.

Likewise, some states do not allow carriers to charge additional premiums for the dog bite exposure. Consequently, insurers in these states must underwrite around the exposure. This could mean not accepting risks where there is a known exposure, or nonrenewing insureds when the underwriter becomes aware of an exposure after initial acceptance if this is even an acceptable reason in statute.

Additionally, the law or concept applicable in the state plays a part in the underwriting decision. If the insured is in a “strict liability” state, the carrier is “on the hook” for any and all dog bites. Underwriters with insureds in “one bite” or “negligence law” states may have a bit of “wiggle room” (if the dog bites, the underwriter has a chance to “get off the risk” before another incident).

Regardless of the state, the availability of exclusionary endorsements or the ability to charge a higher premium, insurers are attempting to underwrite the dog exposure by identifying the breed of the dog in question and assessing the extent to which the exposure is increased by that breed. From an underwriting perspective, statistics are more powerful evidence than how gentle and loving the owner claims his pit bull, Fifi, is. | Q2 2022 | 17

Insurance Agents Errors and Omissions Coverage That’s Right For Your Business Why Big “I” Professional Liability and Swiss Re Corporate Solutions Prompt, local service: You can expect superior customer service, in-house underwriting authority and prompt turnaround on quotes, policy delivery and answers to questions.

More premium discounts: Qualifying agents can save over 50% in premium discounts including the loss control, claims free, agency operations improvement review, efficiency and carrier concentration credits.

Deductible savings: Loss only deductible available along with deductible reduction feature offering up to 100% savings of deductible (up to $25,000) per claim with proper documentation Claims handling: Prompt and thorough claims handling by an experienced staff made up primarily of licensed attorneys that stand ready to support policyholders with any potential incident and claim.

Agency risk management tools: Access to experienced E&O Risk Management team through our partnersand online tools for agency risk mitigation Exclusive: A Big “I” member exclusive policy form and premium credits filed on a Risk Purchasing Group basis giving Big “I” members tailored coverage.

Member oversight: A Professional Liability Committee including IIABA member agents oversees an directly influences the program. Our program was designed by agents for agents.

Swiss Re Corporate Solutions Policy Form Highlights Big “I” Professional Liability program and Swiss Re Corporate Solutions pride ourselves on offering the strongest coverage form in the marketplace that continues to evolve to meet the changing needs of the agents. Review the preferred policy form and you will find that these are just a few of the coverage benefits: • Rate A+ by A.M. Best • Claims-made coverage with full prior acts available • Limits of liability up to $25 million • Broad definition of covered professional services and activities • Comprehensive definition of insured • Aggregate deductibles available • Defense cost outside the limit • $25,000 1st Party Personal Data Breach • $1,000,000 3rd Party Personal Data Breach sublimit available • 60/40 consent to settle clause • Crisis Management coverage; up to $20,000 per policy period for fees, costs and expenses incurred within 6 months of a crisis event • Deductible reduction up to $25,000 per claim with proper documentation, no limitation to the number of claims • Catastrophe Expense $25,000 per incident, $50,000 per policy period • Regulatory defense $100,000 per policy period in addition to the limit of liability • Several options to earn premium discounts up to 30%

If you have any questions, please contact LeeAnn Smelley, leeann@bigioregon.com.

The information provided is for general informational purposes only and you should review the policy form and any applicable endorsements for complete policy language. Please note that all applications are subject to review, underwriting and approval by Westport Insurance Corporation, a member of Swiss Re Corporate Solutions.

Need CE?

100 NEW COURSES ADDED TO OUR EDUCATION CATALOG iiaor.aben.tv High-quality on-demand CE and professional development State-of-the-art video webcast technology Courses taught by qualified expert practitioners Rewards/Referral Programs Build your own bundle feature for discounted pricing Top notch customer service and help desk Group/Agency discounts

Save 20% - Use code SPRING20 Expires: May 31

| Q2 2022 | 19

ASK AN EXPERT

DOES AN EMPLOYER WITH A 401(K) PLAN NEED FIDUCIARY LIABILITY INSURANCE? By: Big “I” Virtual University Faculty Q: Does a company that has a 401(k) plan need to have fiduciary liability insurance if they have the appropriate Employee Retirement Income Security Act of 1974 (ERISA) bond in place? Does the U.S. Department of Labor (DOL) mandate fiduciary liability coverage along with the ERISA bond?

Response 1: An ERISA bond protects plan participants from theft of plan assets. It is a bond—a financial guarantee—and it is not insurance. An ERISA bond does not provide any protection to fiduciaries. If payments are made under the bond, the bond carrier can pursue recovery from fiduciaries and other responsible parties. In contrast, a fiduciary liability policy is written to protect and defend fiduciaries from alleged liability.

There are lots of publications from fiduciary liability insurers that explain the importance of having both. Your client needs an ERISA bond to comply with legal requirements 20 | Q2 2022 |

and a fiduciary liability policy to provide insurance protection.

Response 2: Sadly, the DOL does not require a fiduciary liability policy. Your plan administrator needs to advise your insurance provider that the plan exists. The ERISA bond should trigger the agent to offer a policy for such needs. Your failure to do so could be considered negligent under your errors & omissions policy.

Response 3: Fiduciary liability insurance may not be a mandate, but defending an ERISA fiduciary liability claim is very, very expensive. The suits are uncommon, but each trustee needs their own attorney.

The legal defense bills will run through the typical $1 million fiduciary limit at rocket speed.

Response 4: The DOL does not mandate that fiduciary liability insurance coverage be in effect for sponsors of 401(k) plans. A document from the DOL outlines duties and responsibilities in this realm: “Meeting

Your Fiduciary Responsibilities.”

However, a prospective fiduciary, either as a company employee or administrator, or an outside service provider, is well-advised to be sure such protection is or will be affected for the exposures arising out of such duties.

Response 5: Mandatory versus wise to have in place are two different things. I am not aware of any mandate. We always offer coverage to our clients that they can then review with their legal advisors and plan administrators. Whether the plan is offered directly or through a professional employer organization (PEO) adds other considerations.

The National Alliance for Insurance Education & Research discusses the topic in an article, “Fiduciary Liability Insurance: Under-loved and Under-utilized.”

Response 6: Start with a study of the nature of a bond versus a liability policy.

A bond protects the obligee but not the principal. If the plan suffers a loss and the bond pays, the principal has to reimburse the surety. Liability insurance, on the other hand, protects the covered persons or organization from liability resulting from certain acts. These policies are not standard, but you’d like them to cover failure to enroll, faulty investment advice and more.

Response 7: Whether the government requires fiduciary liability coverage is not as important as the need for the benefit plan trustees to have the coverage.

Just like directors & officers coverage is vital to directors & officers, so too is fiduciary liability vital to the trustees. If they are sued and you never explained and offered the coverage, that would be grounds for an E&O lawsuit.

This question was originally submitted by an agent through the Big “I” Virtual University’s (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website.

If you need help accessing the website, request login information.

This article is intended for general informational purposes only, and any opinions expressed are solely those of the author(s). The article is provided “as is” with no warranties or representations of any kind, and any liability is disclaimed that is in any way connected to reliance on or use of the information contained therein. The article is not intended to constitute and should not be considered legal or other professional advice, nor shall it serve as a substitute for obtaining such advice. If specific expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought.

Trusted Choice® Social Media Guidebook Now Available!

Prepare for seasonal insurance trends Speak to the right audience Choose the best channels

Visit trustedchoice.independentagent.com to learn more

| Q2 2022 | 21

E&O

AN AGENT’S (LEGAL) DUTY TO ADVISE: UPDATED By: Mallory Cornell IIAW Vice President & Swiss Re Approved Auditor

In 2010, respected attorney Myles Hassett, ESQ published a guide to understanding Standard of Care laws across the United States. More recently in 2021, Mr. Hassett and his colleagues have updated this guide and made it available at no cost for all Swiss Re policyholders. The guide cites that over 30 new decisions have impacted the laws in many states. These laws apply to both captive and independent insurance agents and brokers. As a Swiss Re approved auditor, I rely heavily on the information provided in this document to educate policyholders on their legal obligations and how their words and actions increase those obligations by creating “special relationships”.

Do your clients turn to you to advise them on their insurance needs? Of course they do! Your legal obligation in Oregon is to procure the coverage requested or advise on why it cannot be provided. In working with many of our wonderful agents, I have seen that you provide more than just this baseline requirement. In general, if you answer “yes” to

any of the following, the court could find that a “special relationship” exists between you and the customer and, thus, your duty has been increased.

• Have you agreed to act as an “advisor” to the customer? Many times, we review an agent’s website or public facing communications and find that the agent has referred to themselves as an “advisor” or “trusted advisor”. If this is the role you’ve chosen to play, its imperative to understand the legal duties that accompany this position.

• Did the customer request your advice?

Whether you’ve stated you’re an advisor or the customer specifically requests your advice, an increased duty exists in both situations. Ultimately, its important to have strong documentation to show the customer made a final decision based on the options you presented.

• Have you accepted additional compensation for your services? Just as you would expect a higher level of service from a paid professional in your own home, an insured will expect additional care and consideration if they are paying fees (beyond the commission) for your services.

• Is there a long-term relationship established with the customer? In Oregon, there are countless customers who have been with their agents for many years. Over the course of these years, the insured has become accustomed to the advice and recommendations of the agent.

Do not take these customers for granted because you may be held at a higher standard of care due to the relationship that has been established.

• Do you refer to an agent or the agency as “experts” or “specialists”? As an approved auditor, I regularly review an agency’s website, and this is one of the most common references that I find on a site. Many of our agents have extensive knowledge and may be a “specialist”.

Be mindful of the additional duties this presents and be wary of referring to the ALL staff as experts or specialists – especially in a specific coverage type.

• Have you accurately represented the coverage you’re providing? Many agencies provide coverage language either on their website or in written materials. Its important to review, update and make careful decisions about how you would like this information presented and interpreted. Providing updated materials produced by the carrier may mitigate the increased duty that comes with creating your own information.

Personal

l

The entire document “Insurance Producers’E&O Duty to Advise: A Nationwide Guide To the Law Governing Insurance Producers’ Obligations to Advise Their Customers” explains Standard of Care laws and how the courts are imposing a duty to advise. This document can be found on the E&O Happens website and is available at no cost to Swiss Re policyholders.

While understanding the specific laws and interpretations in Oregon should come first and foremost, you may be held at a higher standard of care based on where you do business and the coverage provided to those insureds in other states. It isn’t completely black and white which standard of care laws will be considered, so understanding your duties and mitigating your risk through strong procedures and workflows should be at the forefront of all agency operations.

For an independent review of agency operations, website language or to consult on specific workflows please visit virtualagencysolutions. com.

Commercial

l

Flood

A trusted supporter of the Big “I” Oregon

| Q2 2022 | 23

2021 Award Recipients

Ed Davis/Maps Insurance Lifetime Achievement Award 2021

"As the State National Director for Big I Oregon, I've learned to appreciate our association's influence and members all across our state. And how much we do to protect our clients, not only from the insurable risks they face but also from the occasionally self-serving behaviors of insurers, attorneys, and legislators. Our events allow the fostering of relationships with local insurance company managers, underwriters, and fellow agents who share the daily challenges. Getting involved at both state and national levels has helped me understand the wide selection of resources, tools, and opportunities the Big I provides its members; more than I’ve yet been able to use in my nearly 57-year insurance adventure.

"The Big I Oregon Association was the beginning of my commitment to the insurance industry.

The education, networking, friendships and sense of purpose our association has brought to my life and career solidifies my passion for insurance."

Lyndsay Kooistra/LaPorte Insurance Agent of the Year 2021

"I have been involved with the Big I of Oregon for many years because it has allowed me the opportunity to meet with some wonderful agents and learn so much about their needs and the industry as a whole. I am then able to share solutions that can benefit their agencies."

Barb Casey/Kennedy Restoration Services Person of the Year 2021

24 | Q2 2022 |

and the award goes to... "...I truly believe that spending time with our colleagues benefits our customers, and sharing ideas and common experiences will lead to innovation, collaboration, and growth in the long run. We know that good relationships are the foundation to open and honest communication, and there's no better forum to build these industry relationships than to participate in Big I Oregon events, engage with fellow agents and vendors, and learn from each other."

Dave Markel/Safeco Carrier Person of the Year 2021

"Big I Oregon is like family to me. Since middle school, I've been attending events as my father has been in the industry since my birth. I've focused on giving back to the association through service on the NextGen Committee since 2018. As a Board member, I am excited to demonstrate to the Next Generation that insurance isn't just a job but a career full of opportunities to advocate for clients and the community."

Dallas Ross/Timmco Insurance NextGen Person(s) of the Year 2021

"Big I Oregon is an opportunity to network and build relationships with my peers. We come from different agencies and different backgrounds but Big I Oregon allows us to come together and support the independent channel as one."

Kaity Blacksher/Atkinson Insurance Group NextGen Person(s) of the Year 2021 | Q2 2022 | 25

LEGISLATIVE UPDATES

UNPRECEDENTED OCCURRENCES IN THE OREGON LEGISLATURE By: Roger Beyer

Big I Oregon Lobbyist The Oregon Legislature began the 35-day session on Tuesday, February 1st. With each legislator limited to two bills and each policy committee three, just over 250 bills were introduced. The first cutoff date for the session was February 7th, the last day for policy bills to be scheduled in the first committee. Any bill had to be voted out of committee and on their way to the House and Senate chambers by the 14th. These short timelines mean things move fast or not at all.

As the legislative session began, the soon-to-be open Governor seat had quite an impact. Tina Kotek, House Speaker, and Christine Drazen, House Republican Leader, both resigned from the legislature in January to focus on campaigning for governor. Both had recently said that they’d not leave the legislature early to run for governor, so this was unexpected. It really shouldn’t have been a surprise because Senator Betsy Johnson had also left the legislature in December to focus on her campaign for governor. These three are the front runners in the governor’s race and not being able to raise money for the 35-day session would’ve been crippling for each of them in the governor’s race.

Another surprising event, Senate President Peter Courtney announced that he was not running for reelection this year but would serve out the remainder of his current term. While Courtney had been hinting at retirement, the timing of the announcement was interesting. A leader who is retiring won’t have the power they’d have if returning. With a brandnew House Speaker, lame duck Senate President and three of the four caucus leaders also new, any negotiations needed to successfully close the session could prove challenging.

The deadline for those interested in running for a political office is March 8th.

26 | Q2 2022 |

The resignations, announced retirements coupled with new legislative districts, will have quite an impact on the elections later this year and ultimately who will be controlling the state government for next two years. For the first time since 2010, we will have an election without an incumbent governor on the ballot and nearly half of the legislators will be new or in new districts.

This unprecedented occurrence demonstrates the importance of being involved in our political system.

Big I Oregon members need to make sure they take advantage of this opportunity by registering to vote, doing their homework on the candidates, getting involved with those you think will best represent you and, most importantly, casting a vote for that person.

Getting involved can be done in multiple ways: by financially supporting the candidate of your choice, donating to OIPAC (the political action committee of Big I Oregon), donating to InsurPac (the national Big I political action committee), attending town halls or going to campaign events where you can get to know the candidate personally and volunteering time to help get them elected. Donations can be made on our website, www.bigioregon.com, under Advocacy.

If you do any of these items and the person wins the election, you will have put yourself in a position to be the “insurance expert” for that new state lawmaker.

This will pay dividends for you and your industry for as long as that person remains a lawmaker in the state.

To help you get involved and stay on top of the latest goings on, Big I Oregon has launched a new monthly political forum this year. Your executive team is working to bring you legislative and campaign info to help you navigate these confusing issues. Join us for these monthly updates via Zoom, which are free to Big I Oregon members!

Drives for Dreams Benefitting Make-A-Wish World Wide Wish Day

Registration Registration includes golf, food and two beverage tickets per person: • $75 per person

OR BUY A BAY ($500): • admission & golf for 6 people • food & 2 drink tickets per person • 1 complimentary InsurCon2022 registration for a NextGen attendee • includes $150 donation to Make-a-Wish

There will also be an on-site raffle with items ranging from experiences to wine!

APRIL 19, 2022 Top Golf 5505 NE Huffman St. Hillsboro, OR 97214

SCHEDULE: 4:30 P.M. TO 5 P.M. SOCIAL 5 P.M. TO 7 P.M. GOLF

Register today at bigioregon.com/events | Q2 2022 | 27

INDEPENDENT AGENT

2022 DIGITAL TRENDS: TRANSLATE CLIENT DATA INTO INSIGHTS By: AnneMarie McPherson Independent Agent News Editor

Eighty-seven percent of senior executives believe that the events of 2020 and 2021 have rewired customers to be digitalfirst, according to the Adobe’s “2022 Digital Trends” report. And with customer expectations around digitalization continuing to ramp up, businesses’ ability to adapt to the realities of 2022 is crucial.

In 2022, the dizzying pace of change is only going to accelerate, according to the survey, which collected responses from marketers and business leaders from a variety of organizations and industries around the world.

On average, organizations have driven seven years’ worth of digital progress in just a matter of months. Three in 4 respondents observed a surge in existing customers using digital channels over the past 18 months, with nearly the same percentage (72%) observing a surge in new customers using digital channels. To keep up with customers’ expectations around digitalization, 82% of respondents say their digital experience emphasis will either remain steady or accelerate.

The biggest barrier to meeting customer expectations is friction in the employee experience. Issues such as poor systems integration, workflow issues, and lack of 28 | Q2 2022 |

digital capabilities and skills haunted organizations across the board.

Adobe’s survey also identified three levels of proficiencies in marketing and meeting customer expectations: leaders, mainstream and laggard.

Of organizations that fell into the leadership category, 29% identified workflow issues as an internal barrier holding marketing and customer experience back. However, 34% of mainstream organizations and 43% of laggard organizations admitted that workflow issues were holding them back.

Across all proficiencies, digitalization of the customer experience is taking a larger priority in budgets. In 2022, over 50% of senior executives are increasing investment in platforms that will empower their organization to serve customers across increasingly complex omnichannel customer journeys.

Ethical data stewardship will be a major theme in 2022. With two-thirds of global consumers concerned with how their personal data is used, according to a 2021 Deloitte study, responsible data usage is vital to strengthen customer relationships.

Data collection isn’t the problem— respondents are more likely to regard their organization as effective in collecting firstparty data (74%) than they are in using that

data to personalize experiences (68%).

It’s the ability to turn the data into actionable insights that will make or break success in 2022—one of the areas in which leaders differentiate themselves from the pack. Fifty percent of leaders have significant insight into the journeys of new customers, versus 20% of mainstream and 6% of laggards.

Additionally, 52% of leaders said they had very significant insight into new customers’ drivers of purchase, compared to 21% of mainstream and 9% of laggards. Nearly 1 in 2 leaders had very significant insight into drivers of loyalty and retention, versus 1 in 5 of mainstream and less than 1 in 10 of laggards.

Collecting and using first-party data will become even more crucial this year as organizations will need to use 2022 to prepare for the end of the cookie. Extending their original January 2022 deadline, Google is ending its third-party Chrome cookies in late 2023. Despite the extension and increasing regulations, 38% of respondents are unprepared for a cookieless future. In the laggards category, only 1 in 5 consider themselves prepared for the end of the cookie.

or very strong. In contrasting, 5% of laggards get insights with speed and 5% act on their insights with speed.

“With customer expectations continuing to rise, the importance of developing and nurturing direct relationships with customers has never been more important,” said Dave Carrel, vice president, marketing, Adobe Experience Cloud. “How companies gather and extract insights from customer data will become more critical, especially as marketers shift from relying on third-party data and embrace first-party strategies.”

“Our findings suggest that there is much work to be done here as executives see their organization as more effective at collecting first-party data than using it to personalize experiences,” Carrel said.

“Artificial intelligence (AI) is a key area of opportunity that not enough organizations are taking advantage of to drive real-time business decisions and improve customer experiences.”

The big takeaway: In 2022, it’s more important than ever to translate data into insights—and at a rate that keeps up with rapidly shifting customer preferences.

Sixty-five percent of marketing organization leaders rate their speed of getting insights as strong or very strong, with 64% rating their speed of acting on customer insights as strong

DARREN EVERSOLE | 503.957.5460 | darren.eversole@ipfs.com Copyright © 2021 IPFS Corporation. All rights reserved.

| Q2 2022 | 29

into Digital Marketing Ready to try out digital marketing this year and grow your business?

Utilize our customizable advertising materials and try something new for your agency!

Advertise on the web, TV, or social media and get back up to $750.

All Big “I” Members Eligible!

Details at: trustedchoice.independentagent.com visit the Marketing Reimbursement page

MORE IMAGINATION.

MORE TO LOVE FROM APPLIED.® Workers’ Compensation • Transportation – Liability & Physical Damage • Construction – Primary & Excess Liability Homeowners – Including California Wildfire & Gulf Region Hurricane • Fine Art & Collections • Structured Insurance Financial Lines • Environmental & Pollution Liability • Shared & Layered Property • Fronting & Program Business • Reinsurance

...And More To Come.

It Pays To Get A Quote From Applied.® Learn more at auw.com/MoreToLove or call sales (877) 234-4450 ©2022 Applied Underwriters, Inc. Rated A (Excellent) by AM Best. Insurance plans protected U.S. Patent No. 7,908,157.