OREGON AGENT Q4 2023
NOW AVAILABLE: TRUSTED CHOICE HARD MARKET TOOLKIT CREATED TO HELP AGENTS NAVIGATE CURRENT MARKET CONDITIONS SUCCESSFULLY
IN THIS ISSUE: INSURCON2023 Recap A Look Ahead
CONTENTS NEW MEMBER BENEFIT
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 Christine Muduryan | Member Engagement Director christine@bigioregon.com Melissa Reed | Director of Agency E&O oregoneoteam@bigioregon.com Lyra Roberts | Agency E&O Senior Account Executive oregoneoteam@bigioregon.com April Pitz | RLI Administrator April.Pitz@iiaba.net Roger Beyer | Big I Oregon Lobbyist roger@rwbeyer.com Jill Tieu | Bookkeeper jillt@bigioregon.com
Trusted Choice has released a Hard Market Toolkit aimed to provide resources to help you streamline a plan, communicate effectively, handle tough questions, and ultimately retain clients in a hard market.
- PAGES 8-9
PRESIDENT’S MESSAGE......................................4 INSURCON2023: A Success for New Members and Beyond THE DIRECTOR’S CORNER...............................10-11 A Look at the Past Year and a Look Ahead COMMERCIAL LINES...........................................14-15 How Reinsurance Rates are Contributing to the Hard Market NEXTGEN........................................................................16 INSURCON2023 Wrap - NextGen Style PERSONAL LINES...................................................18-19 Is Skunk Spray Damage Covered Under a Homeowners Policy? AGENCY OPERATIONS......................................22 Reentering the (New, Hybrid) Workplace LEGISLATIVE UPDATE........................................24-25 Legislative Highlights from INSURCON2023 E&O.....................................................................................30-31 E&O Risk Management: Top 10 Words and Phrases to Avoid on Your Website
ADVERTISER INDEX Applied Underwriters................................32 auw.com/us
Rothert Insurance......................................19 rothertinsurance.com
Berkshire Hathaway GUARD...................25 guard.com
RPS.................................................................5 rpsins.com
EMC................................................................23 emcins.com
UFG................................................................3 ufginsurance.com
IPFS................................................................11 ipfs.com
Western National.......................................28 wnins.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.
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PRESIDENT’S MESSAGE
INSURCON2023: A SUCCESS FOR NEW MEMBERS AND BEYOND The sun was shining though obscured behind a smoky sky! But the anticipation was palpable as insurance professionals from across the state converged on Sunriver, Oregon for INSURCON2023. This annual gathering of By: Russ Schweikert industry colleagues has Big I Oregon President always been a highlight Ashland Insurance, Inc. on my calendar, but this year’s event truly exceeded all expectations. Not only did it provide valuable insights and networking opportunities for seasoned veterans, but it also proved to be a game-changer for new members of the insurance community.
for it to be donated to Make-A-Wish Oregon. Another example of the greatness that exists in our industry.
INSURCON2023 was something special. The organizers had clearly pulled out all the stops to make this event unforgettable, and it showed in every detail, from the well-planned agenda to the world-class speakers and engaging networking sessions. Clearly Tyra, Christine, and their team of supporters had the execution down to a science.
The Final Night The grand finale of INSURCON2023 was undoubtedly the Final Night, a glamorous affair that brought attendees together for an evening of celebration, camaraderie, and faux gambling. It not only showcased the warmth and inclusivity of the insurance community but also served as a reminder that our industry is about more than just policies and claims—it’s about the people who make it thrive.
New Member Focused The Executive Board and the Board of Directors had intentionally identified first-time agencies and agents, and throughout the event I observed veteran leaders engaging new attendees, then introducing them to other veterans to create a foundation of light networking without overwhelming them. Great work team! Keynote Speakers and Industry Insights Of course, no insurance conference is complete without a lineup of influential keynote speakers, and INSURCON2023 did not disappoint. The speakers represented a diverse range of perspectives, from industry marketing specialists to visionary leaders from adjacent fields. Their talks covered topics such as emerging trends in insurtech, the evolving regulatory landscape, DEI, and the importance of ethical decision-making in insurance. Exhibitor Showcase Thank you to all the exhibitors who took part in this year’s showcase. I enjoyed learning about new tools, making new contacts and seeing the wide variety of exhibitors. T.J. Sullivan won the drawing for $1,000 cash by completing his exhibitor blackout bingo card. Immediately upon winning he handed back $400 of it and asked 4 | Q4 2023 |
Networking Opportunities Beyond the structured sessions, INSURCON2023 provided ample opportunities for networking and relationship-building. The conference’s beautiful outdoor venues, including the stunning golf course and scenic trails, offered the perfect backdrop for informal conversations and connections. As a seasoned professional, I found these moments just as valuable as the formal sessions, as they allowed for candid discussions and the exchange of practical tips and tricks. Perhaps even more so, as the topics of the day will come and go, but foundational relationships persevere decades of work.
In Conclusion INSURCON 2023 in Sunriver, Oregon, was an exceptional event that left a lasting impression. Current market conditions, expectations of catastrophic weather-related events, consumer frustration with wildfire mapping, premium spikes, and unexpected carrier business decisions brought us together in the recognition that we are ALL IN THIS TOGETHER, being our non-profit organization team members, vendors, insurance companies, excess & surplus brokers, agency principals, agents, etc. No one sector is feeling the brunt. As a seasoned insurance professional, I left INSURCON2023 inspired and energized, and I have no doubt that new members of the industry felt the same. The conference was a testament to the resilience and innovation that define the insurance field, and it bodes well for the bright future of our industry. I eagerly await INSURCON2024 and the continued growth and success of the insurance community! Exceptional work Tyra, Christine, and team, thank you!
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Thank you for attending INSURCON2023
SUNRIVER WELCOMES YOU
1989-90 PAST PRESIDENT PLATINUM PREMIER PARTNER TYSEN BODEWIG & DAVE WALDO SHARES AT THE LAURA MCDERMOTT, MELISSA REED, KENNEDY BOARD & PRESIDENTS DINNER RESTORATION AT BOARD & PRESIDENTS DINNER
TJ SULLIVAN, HAGAN HAMILTON, BRETT SLATER, SLATER & ASSOCIATES, BETH SLATER
STEVE LACESA OAK TREE INSURANCE, LINDA LACESA, RYAN PROWSE ATLAS, JUAN MORA ATLAS
LYNDSAY KOOISTRA LAPORTE INS, TYRA DRESSEL BIG I OREGON, GOLD PREMIER PARTNER SHAWN CARTER CAPITAL PREMIUM FINANCING GOLF TOURNAMENT TITLE PARTNER 6 | Q4 2023 |
STEPHEN SMELLEY GOLDFINCH CONSULTING TRAINING THE NEXTGEN TO COLLECT INSURPAC DONATIONS
GOLD PREMIER PARTNER JAN AND MARK ROTHERT, LESLIE BALLARD, ROTHERT INSURANCE
GOLF TOURNAMENT SECOND PLACE WINNERS: JOE DEJESUS MJ HALL & CO, SUSAN HUWALDT, CHRIS HUWALDT PAYNEWEST INS, ROBERT SOUZA MJ HALL & CO
FIRST PLACE WINNERS - CRAIG SIMONSON SENTRY, KENT BERGSTEDT HUB, NATHAN BAUER R BAUER INS, CAMERON DEISS SILVER PREMIER PARTNER MID VALLEY GENERAL AGENCY
REPEAT CORNHOLE WINNERS - PATTY BRANDT WALDO AND DELLAS WALDO
GOLD PREMIER PARTNER NICK MALONE, BELFOR
PLATINUM PREMIER PARTNER BBSI, ROB HAMBLETON, LEEANN SMELLEY
DIAMOND PREMIER PARTNER RYAN BASS, JEANNE WITHERSPOON, DARREN EVERSOLE IMPERIAL PFS
NEXTGEN COMMITTEE HOSTING TRIVIA COMPETITION
CHRISTINE MUDURYAN BIG I OREGON, DIAMOND PLUS PREMIER PARTNER CRAIG BEESON SAFECO, WINNER OF FRANK SOMMA’S SIGNED BOOK
TODD BLACKSHER ATKINSON INS, JUDD WYNN BRONZE PREMIER PARTNER MUTUAL OF ENUMCLAW, COLE, GRACE, JOHN & RACHEL POWELL HOPP INS CHELSEA ROSSITER THE PARTNERS GROUP, CARMEN JACOBSON & JOAN BOLLIGER DIAMOND PLUS PREMIER PARTNER SAFECO HAVING FUN AT CASINO NIGHT
OUR GENEROUS INDUSTRY RAISED $3,172 FOR MAKEA-WISH OREGON DURING INSURCON2023
MICHELLE GALLARDO THE PARTNERS GROUP, TYRA DRESSEL BIG I OREGON, ANGELA WILLIAMS HUGGINS INS, TODD & KAITY BLACKSHER ATKINSON INSURANCE
JENNIE WEILAND, HUB, TYRA DRESSEL, BIG I OREGON
BEST DRESSED FOR CARNIVAL NIGHT/ SILVER PREMIER PARTNER JOE SCHOFIELD PEOPLES PREMIUM FINANCE, MICHELLE GALLARDO THE PARTNERS GROUP | Q4 2023 | 7
NEW MEMBER BENEFIT
TRUSTED CHOICE LAUNCHES HARD MARKET TOOLKIT TO HELP AGENCIES NAVIGATE THIS MARKET After decades of low premiums and abundant capacity, we are in the midst of a hard insurance market. But what exactly does that mean? A hard market is defined by the Insurance Risk Management Institute as “the upswing in the insurance market cycle, when premiums increase, coverage terms are restricted, and capacity for most types of insurance decreases.” Or to put it simply, insurance costs a lot more for our clients and is harder to find. Although insurance markets are cyclical, every hard or soft market is different. Each line of business is affected differently by the market’s conditions.
This should include telling customers why their premiums are rising and what they should expect at renewal time and explaining coverage changes or restrictions that may impact their exposure. This Trusted Choice® Hard Market Toolkit provides resources agents can use to successfully navigate the current market conditions. Included in this toolkit are:
1. Overview of Market Conditions 2. Expert Advice for Surviving a Hard Market from Savvy Independent Agents 3. Talking Points for Clients Trusted Choice has released a Hard Market 4. Client Email Templates Toolkit aimed to provide resources to 5. Frequently Asked Questions from help you streamline a plan, communicate Clients effectively, handle tough questions, and 6. A General Communication Timeline to ultimately retain clients in a hard market. 7. Keep Your Agency on Track 8. Remarketing Standards Document During these challenging times, (Fill-in Template) independent insurance agents are more 9. Personal Lines and Commercial Lines important than ever. Agents can prove 10. Renewal Forms their value to their clients and improve 11. Creative to Help Your Agency Stand retention through consistent and Out (Customizable Video’s and thorough customer communication. Graphics)
8 | Q4 2023 |
Get the toolkit now at lp.independentagent.com/hardmarket
Is Your Agency Prepared For the
Hard Market?
Equip your team with the expertise they need to support clients during this demanding time. Includes: Expert advice Client talking point FAQ solutions Email templates Renewals forms And more!
Download this free toolkit today and continue to focus on what you do best – providing excellent customer service to your clients. Turn the hard market into your agency’s success story!
TrustedChoice.IndependentAgent.com/Hard-Market
THE DIRECTOR’S CORNER
By: Tyra Dressel Executive Director of Big I Oregon
A LOOK AT THE PAST YEAR AND A LOOK AHEAD
2023 has been a remarkable journey we have shared, and I am looking forward to the incredible opportunities that lie ahead. In this fourth quarter edition of The Director’s Corner, I express my heartfelt thanks, share the exciting upcoming events in 2024, and treat you to a delightful fall mocktail/cocktail recipe to celebrate the season. A Heartfelt Thank You: Big I Oregon’s accomplishments in 2023 were made possible in large part through the dedication and commitment of our esteemed Premier Partners. Their unwavering support and collaborative spirit have been the cornerstone of our success. Together, we have navigated challenges, celebrated achievements, and focused on our shared goals to grow stronger together. Thanks, in large part, to our Premier Partners, we were able to send four NextGen to the 2023 Big I National Legislative Conference in DC where they honed their advocacy skills and experienced firsthand how their participation can contribute to shaping policy for the insurance industry. We hosted an exceptional lineup of speakers at INSURCON2023 including Frank Somma, Chuck Blondino, John Costello, Mallory Tyler, Whitnee Dillard, Brandon Okita, Commissioner Andrew Stolfi, Karla Martinez, Stephanie Noren, & Brian Foote who brought a wealth of knowledge and inspiration to our attendees and guided us all to be better prepared and resilient in the ever-evolving landscape of our industry. 10 | Q4 2023 |
We were also able to keep registration costs far under the actual costs for many of our events. We simply could not do all this without our Premier Partners, and I extend my sincere gratitude for their contributions and look forward to another year of thriving collaboration. Save the Date for 2024: Mark your calendars for the exciting events we have in store for 2024! Our lineup includes thought-provoking conferences, givebacks, and networking opportunities that promise to inspire, educate, and connect us all in the insurance industry. Stay tuned for official invitations and details in the coming months as we continue to shape the future of our industry together. • January 19 - Economic Forecast Breakfast & Big I Oregon Board Installation & Awards – Embassy Suites, Tigard, OR • March 7-8 – Connect & Educate Symposium – Inn at Spanish Head, Lincoln City, OR • April 10-12 - Big I National Legislative Conference – Washington, DC • April 18 – Drives for Dreams Make-A-Wish Oregon Fundraiser hosted by NextGen – TopGolf, Hillsboro, OR • June – Premier Partner Appreciation hosted by NextGen – Portland Metro Area • August 18-20 – INSURCON2024 – Sunriver Resort, Sunriver, OR • December 5 – Ugly Sweater Holiday Party hosted by NextGen – Portland Metro Area
Fall Mocktail Recipe: Apple Cider Mule Member participation in these events is a vital component of event success. It not only benefits agents by providing valuable content and networking opportunities but also enhances the value proposition for our Premier Partners. By actively participating in events, Big I Oregon agents and Premier Partners can create a symbiotic relationship that contributes to the overall success and growth of our entire Big I Oregon community.
Ingredients:
As we bid farewell to summer and welcome the arrival of fall, I want to express my heartfelt appreciation for the continued support of our Big I Oregon Members & Partners. In the spirit of gratitude and celebration, I share this delightful fall mocktail (easily made into a cocktail) recipe to raise a glass and toast to the future and the success it holds for us all. Cheers to our partnership and the exciting journey that lies ahead!
•
• • • • • •
8 ounces apple cider 4 ounces ginger beer 2 ounces tonic water 1 tablespoon caramel drizzle 1 cinnamon stick apple slices; for garnish
Instructions:
• • •
Place ice in a copper mug or glass of choice. Add the apple cider, ginger beer, and tonic water. Drizzle the caramel on top and stir with a cinnamon stick. Garnish with apple slices. Enjoy your refreshing Apple Cider Mule! Make a mule with a kick by adding 2oz vodka (or your preferred amount)!
2023Premier Partners THANK YOU TO OUR PREMIER PARTNERS FOR THEIR CONTINUED SUPPORT!
DIAMOND PLUS
DIAMOND
12 | Q4 2023 |
PLATINUM
GOLD
S I LVE R
BRONZE Acuity Insurance CHUBB Great American Insurance Group Mutual of Enumclaw
Sublimity Superior Underwriters United Midwest Savings Bank Western National | Q4 2023 | 13
COMMERCIAL LINES
HOW REINSURANCE RATES ARE CONTRIBUTING TO THE HARD MARKET By: Olivia Overman IA Content Editor
The soft reinsurance market conditions that had prevailed for close to 15 years came to an end in 2020. Since then, 40-year high inflation rates that have been exacerbated by the war in Ukraine, a challenging 2022 storm season, concerns over climate change, and investor pressures to improve performance are all factors that have been impacting reinsurance rates and capacity offerings, according to “Aon’s Reinsurance Aggregate (ARA)—Results for the Year to December 31, 2022” report. These headwinds, coupled with a complex reinsurance renewal period this year in which reinsurers followed strict underwriting guidelines and tightened treaty terms and conditions with new exclusions, combined to drive insurance prices up during the first quarter of 2023, according to the report. Common exclusions added by reinsurers include communicable diseases and cyber. New this year was an updated cyber war exclusion covering attacks that could cripple a nation’s ability to function. While this has raised some concerns within the industry, it may offer more benefits for policyholders. Overall, the lines of business most significantly impacted by increasing reinsurance rates include catastrophe-prone property risks and specialty lines of business. 14 | Q4 2023 |
“Reinsurers are focused on improving the bottom-line results, since legal system abuse, inflation and climate change have really taken a toll on industry results over the past five to six years,” says Kerri Hamm, executive vice president, head of business development, Munich Re U.S. “Reinsurers are focused on getting high-quality quantitative and qualitative information, which they used to deepen their analyses of significant loss exposures.” Further, after years of low-interest rate returns on their fixed-income portfolio along with poor underwriting margins, reinsurers are looking to reset the market by putting upward pressure on pricing and regaining some capital, which declined by approximately 15% in 2022, according to Beinsure. While insurers were able to purchase the reinsurance protection they needed during the January renewal period, it was at significantly higher rates and retentions. In the commercial property segment, property rates rose by 20% in the first quarter due to large increases in reinsurance costs, according to CIAB—while some reinsurers partially or completely withdrew from the property & catastrophe segment in an effort to limit losses. Specialty lines closely connected to war, including marine and aviation, also saw rate increases linked to increasing reinsurance costs.
More recently, commercial property reinsurance rates rose between 30% and 50% for accounts with catastrophe losses at June 1 and July 1 reinsurance renewals, according to a report from Gallagher Re. While significant, such increases were less than those experienced earlier in the year as midyear property catastrophe capacity improved with top layers on some oversubscribed U.S. national programs, according to an Aon report. Looking ahead, changes in terms could be even more important than higher pricing, with the property reinsurance market in true hard market territory for the first time in over two decades, according to analysts at JMP Securities LLC. As claims inflation is expected to continue through 2023, reinsurers are expected to continue to push further price increases and higher limits in this line. However, “there are certainly opportunities for reinsurers to expand their portfolios in ways that are responsible and healthy,
especially as insurers desire not just highquality capacity, but also market insights and risk guidance that knowledge-based reinsurers can bring to the table,” Hamm says. The hard market requires that risks are explained and negotiated in every detail, both in numbers and in words. Meanwhile, insurers and reinsurers are looking for more information and transparency before assuming any risk. As agents look to provide coverage for clients in this atmosphere, “my advice is for agents to read the forms, learn the coverage, and get into the details,” Hamm says. “I also recommend specializing where possible: Join a trade association and really get into the details of the businesses that you are insuring and get to know the deeper business needs of your clients.” This article was originally featured on iamagazine.com in September 2023.
LIFE IS TOO SHORT FOR BAD CE Big I Oregon provides unique and attention-grabbing courses with its partnership with ABEN. Visit iiaor.aben.tv to see all our available courses.
| Q4 2023 | 15
NEXTGEN
By: Angela Williams NextGen Chair Huggins Insurance
INSURCON2023 WRAP NEXTGEN STYLE
What is community? A group of people brought together by something in common whether that be culture, shared experiences, geographical location, background, and/or circumstance. I have established community with my insurance professional friends across the State of Oregon, and we seriously know how to have a good time.
Who knew insurance professionals could be so competitive? Wow! Trivia ended with a win or go home question, where the team who was in last place ended up winning the entire competition. Let’s just say, make sure you are confident in knowing which countries drive on the right- or left-hand side of the road. Brutal!
Last month, INSURCON2023 took place in Sunriver, Oregon and the venue was amazing. The Sunriver Resort did a great job hosting our group and the atmosphere was electric. (We quite literally had thunder during the Saturday night Board & Presidents Dinner, but we didn’t let that stop us from laughing the night away.)
To wrap up the festivities Monday evening, NextGen hosted a corn hole tournament where I learned that insurance professionals are fierce competitors. Again wow! For two hours, people tossed bags onto boards, scored points, laughed, cried and in victory or defeat. Cole Weiland and Tyler Ross gave it their all, but our reigning champions, Dellas Waldo and Patty Brandt Waldo took the winning trophy for the second year in a row. Congratulations Waldos!
On Sunday the weather was a little smokey, but golfers and margarita makers didn’t let a little smoke dampen the mood. The margarita makers enjoyed learning the intricacies of margarita making while also discovering their inner competitor. The overall winning margarita was a little spicy for my taste, but hey, when in Rome! Dinner on Sunday was held on the open lawn where anyone could channel their inner child by playing a slew of carnival games. Games were played, everyone ate, brave souls danced, many enjoyed seeing old friends while others enjoyed meeting new friends. The evening ended with an opportunity to mingle around the fire pit with a last call drink hosted by BBSI. Day 1=Amazing! On Monday, the NextGen crew was busy when the committee hosted 35 insurance professionals to play trivia on the patio in the afternoon. 16 | Q4 2023 |
If you didn’t attend INSURCON2023, make sure you lookout for information and mark your calendars for INSURCON2024. You won’t want to miss this great opportunity to relax, have fun and strengthen the bonds of friendship with other insurance professionals. So, what’s next? On Thursday December 7, 2023, NextGen is hosting our annual holiday party. Mark your calendars for this date and make sure you follow Big I Oregon on Facebook and Instagram for more information to follow. We will once again partner with Make-A-Wish Oregon to provide Christmas gifts to kiddos who are in need. You won’t want to miss this exciting event and remember EVERYONE is welcome to attend.
TOUGH COVERAGE
QUESTIONS? WE HAVE ANSWERS. Every day our experts help independent agents find the answers they need to serve clients and close deals in all lines of business. Dive into the Big “I” Virtual University or submit a question online for a custom response from the Big “I” Ask an Expert team. Don’t leave questions to chance.
WHEN YOU NEED ANSWERS, THE BIG “I” HAS YOUR BACK
independentagent.com/vu
| Q4 2023 | 17
PERSONAL LINES
Is Skunk Spray Damage Covered Under a Homeowners Policy? Big “I” University Faculty A skunk entered the basement of a house through a cat door and sprayed the area. The insurance company denied the cleanup of the spray saying the discharge from the skunk is a pollutant and is excluded in ISO’s 2000 edition of the HO 005 10 00 under Section I - Perils Insured Against (e) 5. The policy defines a pollutant as “any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.” Section (e) 7 also excludes damage by “birds, vermin, rodents, or insects.” Q: Is animal spray excluded from coverage under the pollution exclusion? Response 1: Historically, skunk spray has always been covered under the ISO homeowners policy, even the HO3. But that was up until the ISO revised the form in the 2011 edition. In the 2000 edition, the policy excludes: (7) Birds, vermin, rodents, or insects In 2011, the ISO replaced that exclusion by removing the word “vermin:” (7) Birds, rodents or insects and added a new exclusion: 18 | Q4 2023 |
(8) Nesting or infestation, or discharge or release of waste products or secretions by any animals; So, under the 2011 ISO policy (HO 00 05 05 11) skunk discharge is not covered. This was a huge removal of coverage under the homeowners policy. Not only for skunk discharge but any blood or urine from a deer or bear that may break into the insured’s home. If those waste products or secretions were considered “pollution” there would have been no reason for ISO to change that language. Tell your carrier that if they want to deny those claims, they had better adopt the 2011 edition of the ISO homeowners policy. Response 2: Skunk spray seems to fit the definition of a pollutant, so on its face, the release of the nasty stuff would seem to be excluded under a plain English reading of the form. However, there may be case law in your state that distinguishes between skunk spray and pollutants. You may need to have an attorney or your state’s insurance department check that for you. Response 3: Most carriers will cite the pollution exclusion for this type of claim. The definition of “pollutant” is “any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids,
Courts have dealt with this exclusion for many years with varying results. Some courts have said the exclusion applies to industrial pollutants; others have said that bat guano is a pollutant.
Response 4: Skunk spray, when naturally released by a skunk, wouldn’t be considered a pollutant by many courts. The 2011 edition of ISO’s Homeowners now excludes animal secretions which the skunk spray would likely be considered and consequently would no longer be covered.
If you can get around the pollution exclusion, you run into the exclusion for damage caused by birds, vermin, rodents, or insects. A skunk is not a bird, rodent or insect, but is it a vermin? The policy doesn’t define the term.
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.
alkalis, chemicals and waste.”
The term “vermin” was removed in the 2011 homeowners edition, however, it added an exclusion for: “nesting or infestation, or discharge or release of waste products or secretions, by any animals.” This exclusion was probably added to address this type of claim. Unfortunately, the insured might have to take this to court and rely on a favorable ruling.
Personal
l
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.
Commercial Flood l
We now offer cyber coverage!
www.rothertinsurance.com | Q4 2023 | 19
2023 EXECUTIVE COMMITTEE RUSS SCHWEIKERT President
LYNDSAY KOOISTRA Immediate Past President
JENNIE WEILAND President-Elect
Agency/Company Relations Chair Ashland Insurance, Inc. Ashland, OR 29 Years
Membership Chair LaPorte Insurance Portland, OR 21 Years
Events Advisory Chair HUB International Northwest Portland, OR 22 Years
DEBORAH MOHR Vice President
TIM CUNDARI Finance Chair
STEPHEN SMELLEY National Director
DEI Chair Deborah Mohr Consulting Forest Grove, OR 27 Years
Education Chair Cundari Insurance Portland, OR 28 Years
Product & Services Chair Goldfinch Consulting Beaverton, OR 36 Years
TYRA DRESSEL Executive Director Big I Oregon Portland, OR 30 Years
bigioregon.com
2023 BOARD OF DIRECTORS KAITY BLACKSHER NextGen Immediate Past Chair Atkinson Insurance Group Portland, OR 18 Years
KRISTON CORRELL
ANGELA ED DAVIS WILLIAMS NextGen Chair Legislative & Government Huggins Insurance Affairs Chair Salem, Services OR Maps Insurance
JUUL Insurance Agency North Bend, OR 25 Years
Salem, OR 58 Years
MICHELLE GALLARDO
CHRIS HUWALDT
STEVE LACESA
DALLAS ROSS
The Partner’s Group Tigard, OR 19 Years
PayneWest Insurance McMinnville, OR 28 Years
Oak Tree Insurance Lake Oswego, OR 39 Years
Procurement Chair Timmco Insurance - Cornell Portland, OR 10 Years
TJ SULLIVAN
DELLAS WALDO
ANGELA WILLIAMS
Hagan Hamilton Insurance Solutions Sheridan, OR 26 Years
Field-Waldo Insurance, Inc. Ontario, OR 6 Years
NextGen Chair Huggins Insurance Salem, OR 20 Years
| Q3 2023 | 21
AGENCY OPERATIONS
REENTERTING THE (NEW, HYBRID) WORKFORCE By: WAHVE have the opportunity to work from both home and the office. But what kinds of jobs are out there that would provide this kind of flexibility?” I was going for a lunchtime walk in the park with a good friend of mine last week when she mentioned she had just started job hunting. About two years ago, she quit her full-time, in-office marketing job and decided to try her hand at freelancing. She loved the flexibility and work-from-home setup that freelancing was providing, she said, but she missed having colleagues and—perhaps most crucially—she found going it alone to be stressful and unpredictable. “The ideal arrangement,” she said, “would be a permanent-hybrid position. Like a permalancer, with hours that I dictate myself.” Certainly sounded ideal, I thought. Then I remembered that another friend of mine mentioned this past spring that she was itching to get back into the workforce after many years away. But she didn’t know where to start, since the last time she’d been employed was long before the Covid pandemic. I remember she told me: “I’d love to keep some autonomy in my days and 22 | Q4 2023 |
Well, thanks to advancements in technology and updated workplace attitudes, exactly these kinds of flexible workplaces are the way of the future. The one silver lining of Covid is that it permanently changed our views on work—how and where it’s done, and by whom. Many companies are either offering the kind of positions my friends are hoping to find, or they’re open to creating them. Gartner predicts that the number of global workers working hybrid will increase this year—to 39% by the end of the year, up from 37% from 2022. In the U.S., more workers will be hybrid than not, with 51% predicted to be hybrid by year end. In light of this, I thought back to my friends. How does this new, flexible, hybrid workplace handle re-entrants into the workforce? My guess is that the transition will be more seamless, with more understanding of the balance between work and life, and the need for flexibility. What do you think? What will it be like to reenter this workforce? Have you recently done it, or do you know someone who did?
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LEGISLATIVE UPDATES
LEGISLATIVE HIGHLIGHTS FROM INSURCON2023 By: Roger Beyer
Big I Oregon Lobbyist
As summer is ending and I’m writing this, I felt it was time to reflect on INSURCON2023 held last month. For those of you who were able to make it, I think you will agree it was a great time and a very informative event. If you did not, add August 18-20 to your calendar for next year. The annual conference is always a good close to the summer in addition to being very informational. This year we were very lucky to have Andrew Stolfi, the Oregon Insurance Commissioner, join us for the final morning breakfast. He touched on many topics during his presentation to us and I will just highlight what I thought was most important and interesting. You certainly don’t need someone who doesn’t sell insurance to tell you what a difficult year it has been for the industry. Andrew explained why this is happening, with more than three billion dollars in Oregon losses in the past 3 years, in just the wildfire sector. He also pointed out that this is occurring not only in Oregon but also across the nation with fires and 24 | Q4 2023 |
other natural disasters. How that is changing the P&C markets for everyone and what is happening to help the industry recover was eye opening for me. The Oregon legislature, working with the industry and his agency, passed key bills (SB 80, SB 82 and HB 2982) to make sure that the state policies don’t make the problem worse in the short term and hopefully turn things around in the future. His response to the question about what will keep the Oregon home insurance market from becoming like California was certainly enlightening. The key items he outlined- our land use laws, allowing all costs to be included in premiums, the ability to use shorter timelines when setting rates and not having rate pre-approval made me, along with all the professionals in the room, feel better about the key differences between us and our neighbors to the south and what will keep carriers from leaving our market. He next addressed health insurance and all that is happening in that arena. The passage of SB 1089, establishing a Universal Health Care Board, has the potential to completely transform the health care system in our state, not just for the insurance industry but for all Oregonians. The board, once established, will have about two
years to present a plan to the legislature for a state-run, single-payer health care system for all. He stressed that they cannot start this system without final approval of the legislature, which is scheduled for 2027, and that most of the details have not yet been ironed out. For anyone who deals with health insurance, this should be a key point of interest for you. These nine board positions, set to be appointed by the Governor in the next couple of months, will have the future of health insurance in their collective hands. The information and applications to apply for these positions can be found on the Governor’s website (www.Oregon.gov/ gov). Andrew stressed the need for insurance professionals to be included and encouraged people to apply. The final issue I will report on was in response to a question about proper regulation of the insurance industry. I have been representing the Big I since 2010. Every year there is legislation introduced to increase the regulation of the industry and subject it to additional
lawsuits. Director Stolfi did not directly address the question, does the department have enough authority to adequately regulate the industry? He did point out that in the last four years the agency has recovered, for clients, more than $25 million, without any attorney fees charged. He also reminded us that agents help their clients in this arena, and he believes that if additional regulation is someday passed, it should be carefully crafted so that it does not impact the role agents can play in helping their clients with insurance claims. This is consistent with the position we have advocated for over the last year: agents helping clients with claims should be exempt from any new regulations or not subject to any potential litigation from unhappy clients. As we approach the next legislative session, this information will help us spread the message that your role is to help clients navigate the pitfalls many have when dealing with insurance and therefore should not be subject to additional regulation or lawsuits.
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MARKETING
LEVERAGING GOOGLE MY BUSINESS AND REVIEWS
By: Kelley Smith
Director of Traffic Generation, Trusted Choice One of the most effective ways to enhance your agency’s visibility on Google is by optimizing your Google My Business (GMB) page. An updated listing with at least 10 reviews can help your business appear in search results, positively impact your online reputation, and help attract new clients. Customers are 42% more likely to request driving directions to a business if its Business Profile has photos, and 35% more likely to click through to its website, according to Google. Furthermore, a BrightLocal study showed that businesses with more than 100 photos get 520% more calls, 2,717% more direction requests, and 1,065% more website clicks than the average business.
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In this blog post, we will explore four key practices for keeping your GMB page optimized and maximizing the power of customer reviews. 1) Create and Optimize Your GMB Page. If you haven’t already done so, it’s easy to create a GMB page for your agency. This free tool from Google provides a platform to showcase your business to potential clients. When setting up your GMB page, make sure all your business information is up to date including your address, business hours, website links, and phone number. 2) Showcase your agency with photos. Adding photos to your GMB listing can help you showcase your agency’s personality. Consider sharing photos of your agency’s office, team members, and community events. High-quality and visually appealing photos can give customers a great first impression and insight into who you are. 3) Ask for reviews. To grow the number of reviews on your GMB page, you will need to proactively ask customers to leave a review. Here are a few strategies to get you started: •
After a phone call or meeting: When you have a positive interaction with a client, take the opportunity to request a review.
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Satisfied customers are often willing to share their experiences. Utilize business cards and email signatures: Include a link to your GMB page on your business cards and add it to your email signature. This allows customers to easily access your page and leave a review. Follow-up emails: After binding a policy, send a friendly follow-up email thanking the customer for their business and kindly request them to leave a review if they were satisfied with your services. Incentivize your sales team: Encourage your sales team to ask for reviews by incentivizing them. Offer rewards or recognition for team members who consistently gather positive feedback. In-store signage: If you have a physical location, display signage asking customers to leave a review on your GMB page. Make the process as simple as possible by providing clear instructions or a QR code. Website and social channels: Promote your GMB page on your agency’s website and across your social media channels. Directly ask your followers to share their experiences and leave reviews
4) Engage with reviews. Regardless of whether the feedback is positive or negative, always respond to customer reviews. Engaging with reviews shows that you value your customers’ opinions and are committed to providing excellent service. Responding to positive reviews with gratitude further strengthens your agency’s reputation, while addressing negative reviews in a professional manner demonstrates your willingness to resolve issues and improve customer satisfaction. Optimizing your GMB page and actively managing customer reviews can significantly enhance your agency’s visibility on Google. By following these four practices, you can strengthen your online presence, attract more potential clients, and establish a positive reputation in your industry. This article was originally published on trustedchoice.com in June 2023.
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E&O
E&O RISK MANAGEMENT: TOP 10 WORDS AND PHRASES TO AVOID ON YOUR WEBSITE By: Evan Leitch Swiss Re Approved Auditor, Virtual Agency Solutions If you ever find yourself in the unfortunate situation of an E&O lawsuit, one of the first actions the opposing attorney takes is obtaining screenshots of your agency website. Their goal is to show the jury that you are increasing your standard of care or creating promises based on the language you use on your website. According to Swiss Re data, 1 in 7 agents report a potential E&O claim each year. A seemingly innocent statement about your services could be exactly what an attorney needs to help their client win their case against you. Here are the top ten most common words, phrases and issues found on agency websites that can increase their standard of care. •
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Missing Disclaimer on Quote or Contact Forms Solution: Add disclaimer – contact the IIAW for full disclaimer (evan@iiaw.com). “Best Coverage” Solution: Change the sentence this is included in to express that “We can help you find coverage that matches your described needs.” “Expert” or “Expertise” Solution: Replace word with “experienced”
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Superlatives such as “All”, “Will”, “Always”, etc. Solution: Delete superlative words.
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“We specialize in…” Solution: Replace with “We have experience in/with…”
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“Peace of Mind” Solution: Delete phrase/sentence
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“Protect” Solution: Replace with “help protect”
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“We work for you!” Solution: Delete sentence or replace with “We work with you to help find coverage from one of the many carriers we represent.”
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“Comprehensive” Solution: Delete the word “Comprehensive” (unless used to describe a type of auto insurance)
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Disclaimer on Blog Posts Solution: Add disclaimer – contact the IIAW for full disclaimer (evan@iiaw.com).
If you have any questions about what language to use or what language to avoid, I’d be more than happy to help answer them. Find out if your website can be used against you with an E&O Website Review from virtualagencysolutions.com.
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Whether it is keywords, phrases, or missing disclaimers, having text on your website that increases your duty to advise puts you at an increased risk for an unfavorable outcome in an E&O lawsuit. Fortunately, getting an E&O website review from Virtual Agency Solutions is a simple, affordable way to uncover issues and reduce E&O exposures on your site.
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evan@iiaw.com
| Q4 2023 | 31
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