Oregon Agent | Q4 2022

OREGON AGENT Q4 2022

Thank you for attending

IN THIS ISSUE: InsurCon2022 Photo Recap 2022-2023 Upcoming Events

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CONTENTS THANK YOU FOR ATTENDING INSURCON2022

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 Travis Wills | Operations Coordinator travis@bigioregon.com Melissa Reed | Director of Agency E&O 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

This year’s event featured exciting content and so many fun events! Save the date for Insurcon2023 happening on August 20-23, 2023.

- PAGES 10-13 PRESIDENT’S MESSAGE......................................5 Big I - Farewell to 2022!

THE DIRECTOR’S CORNER...............................10 Thank you for attending Insurcon2022 PERSONAL LINES....................................................16-17 Preparing a Home Inventory Before Storm Season Eases the Path to Faster Claim Settlements COMMERCIAL LINES............................................20-21 Construction Risk Becoming Harder to Place AGENCY OPERATIONS.......................................22 We’ve Entered the Era of Disengagement LEGISLATIVE UPDATE........................................24-25 Big I Oregon Candidate Recap E&O.....................................................................................28-29 Replacement Costs: Know Your Limits

ADVERTISER INDEX ACUITY...........................................................11 acuity.com

IPFS................................................................17 ipfs.com

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

Iroquois Group............................................7 iroquoisgroup.com

Aspera Insurance........................................21 asperains.com

Rothert Insurance......................................25 rothertinsurance.com

Berkshire Hathaway GUARD....................29 guard.com

RPS................................................................23 rpsins.com

EMC................................................................31 emcins.com

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

Griffin Underwriting Services.................2 gogus.com

Western National......................................19 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.

4 | Q4 2022 |

PRESIDENT’S MESSAGE

BIG I - FAREWELL TO 2022!

By: Lyndsay Kooistra Big I Oregon President

This is my last article as your Big I President and I’m struck with nostalgia. I think back to my first Big I Convention 18 years ago and I never would have ever dreamed where we are today.

LaPorte Insurance

First off, children scared me, and now I have two lovely children and my husband continues to put up with me.

Agency/Company Relations: Committee promotes productive dialog between carriers and agents, plus coordinates the annual Agency/Company Forum.

Convention Advisory: Committee works with and assists the staff in planning and promoting the Annual Convention.

Education: Committee assists in developing education programs, selecting speakers and promoting the association’s continuing education.

Finance: Committee works to establish annual budget and evaluate sources of revenue for the association.

INSURPAC/OIPAC: Committee helps raise funds for the IIABA national political action committee (PAC) and our local PAC OIPAC. Legislative: Committee monitors legislative activities, analyzes legislation and develops positions for the IIABO.

Second, we’ve done so much this year including but not limited to: Forecast Breakfast, Educate & Connect Symposium at the Coast, Lobbying in DC, Legislative Lunch & Learns and then …

Third, WOW, what a Convention! Our Big I Team didn’t forget a single detail. The food was amazing, Sunriver superb, and the events fun to the max! Lastly, our Board Meeting and President’s Dinner were wonderful.

One of the items we discussed at our Board Meeting is expanding committee involvement.

Each committee is chaired by a current Board Member, but committee members can be any agency member of our association and is an excellent way to get involved. You can join a committee no matter what part of the state you live in, as meetings can be held virtually when in-person isn’t practical. What are the Committees you ask? Well, here you go!

Membership: Committee helps promote and retain members for the association and assure member satisfaction.

NextGen: Committee seeks to aid young agents develop their skills and promotes professional programs to assist agents new to the industry.

Procurement: Committee reaches out for donations for events with fundraisers and giveaways.

Products & Services: Committee helps make policy decisions about products and services to offer members.

To sign up for a Committee please contact Tyra Dressel at Tyra@bigioregon.com.

I hope 2022 has inspired you to get involved and become more active with Big I. We’ve had a great year and we welcome your involvement! | Q4 2022 | 5

6 | Q4 2022 |

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2022 EXECUTIVE COMMITTEE

LYNDSAY KOOISTRA President LaPorte Insurance Portland, OR 20 Years

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

JENNIE WEILAND Vice President HUB International Northwest Portland, OR 21 Years

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

TIM CUNDARI Finance Chair Cundari Insurance Portland, OR 27 Years

ED DAVIS National Director Maps Insurance Services Salem, OR 57 Years

TYRA DRESSEL Executive Director Big I Oregon Portland, OR 29 Years

bigioregon.com

2022 BOARD OF DIRECTORS TJ SULLIVAN Legislative Chair BH Insurance Salem, OR 25 Years

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

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

DALLAS ROSS Timmco Insurance Portland, OR 9 Years

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

DEBORAH MOHR Assured Partners Forest Grove, OR 26 Years

MARTY KANTOLA Nicholson and Associates/ Portland Division Portland, OR 38 Years

STEVE LACESA Oak Tree Insurance Lake Oswego, OR 38 Years

MATT PIDCOCK Valley Insurance LaGrande, OR 18 Years

KRISTON CORRELL JUUL Insurance Agency North Bend, OR 24 Years

BOB ROSSON Timmco Insurance Portland, OR 28 Years

STEPHEN SMELLEY Goldfinch Consulting Beaverton, OR 35 Years

THE DIRECTOR’S CORNER

By: Tyra Dressel Executive Director of Big I Oregon

THANK YOU FOR ATTENDING INSURCON2022!

As Executive Director of Big I Oregon, I had difficulty writing this quarter’s article following INSURCON2022 in late August…the event’s excitement made it challenging to keep to 600 words! Being together in person generates energy like no other and propels us in our endeavor to Build, Grow and Thrive!

We built a two-and half-day event to enhance our members’ ability to connect and engage.

Attendees heard from Kasey Conners, VP of Marketing, Operations, Trusted Choice, Inc., and how our members are supported with immense resources, including financial assistance with branding and marketing. If you missed Kasey’s presentation, check out https://trustedchoice. independentagent.com for the plethora of ways Trusted Choice supports you. Gordon Zeller, an Advisor, and Greg Goodmanson, Advisor/Virtual Sales Manager of Incite Performance Group, shared their intellect and years of experience to help move your organization to the next level.

During lunch, we heard from our “Future of the Industry Panel,” Kabir Syed, MBA, Senior Insurance Industry Executive & Thought Leader, Founder of Ennabl, Inc., Tyler Asher, President, Independent Agent Distribution, Liberty Mutual and Dan Ferrari, Sr Vice President, Independent Agent Distribution, Liberty Mutual. Stephen Smelley, Founder of Goldfinch Consulting, was our Panel Moderator and led the group with engaging and thought-provoking questions.

We heard insight on everything from working remotely to how the independent agent is here to stay!

During our panel, Tyler Asher shared with the group how Liberty Mutual and Safeco partnered with the Big I to see how independent agents give back to their communities. The survey found that 96% of independent agents donate to charity, which echoes what we have seen in the 10 | Q4 2022 |

fundraising efforts Big I Oregon has organized.

Mallory Tyler, Vice President of Advancement, Make-A-Wish® Oregon, came to INSURCON2022 to share the fantastic news that Big I Oregon has raised $22,173.11 in the past year thanks to our generous members, and we raised another $1,257 during InsurCon2022! Our giving attendees also raised over $2,000, thanks partly to a matching grant from Trusted Choice of $1,000, at our Kentucky Derby night. During the event, we held a “Roses for Kentucky” fundraiser to support Marie Roberts-Caney Elementary decimated by the recent floods, and over 90% of the school’s families lost everything. In addition, we raised almost $3,000 for our state PAC, Oregon Insurance Political Action Committee (OIPAC).

A $1,000 donation from Mark Atkinson, the winner of the Exhibitor Blackout Bingo, shared his entire winnings to OIPAC. And if that wasn’t enough, those attending an alternate activity during the Golf Tournament also gave back as they competed in the Great Backpack Relay that provided $1000 worth of backpacks full of food to the Bend K-12 Food Pantry. As we were proud to hear Tyler’s survey results, we were not surprised, as our members continually give in this way. Thank you to everyone for their generosity… together we are stronger!

INSURCON2022 not only had great content and superb exhibitors, but our Director of Fun, LeeAnn Smelley, delivered! Whether betting on horses during our Kentucky Derby night, golfing the beautiful Meadows course, rolling the dice at casino night, putting with the NextGen, giving back during the Great Backpack Relay, or tossing a bag in the cornhole tournament, fun was had. There was something for everyone and networking opportunities galore! The excitement is already building for INSURCON2023, so don’t miss out and mark your calendars for August 2022 at the spectacular Sunriver Resort. I can’t wait to see you there!

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Thank you for attending

INSURCON2022!

NEXTGEN PUTTING TOURNAMENT ORGANIZERS: ANGELA WILLIAMS, KAITY BLACKSHER, TYLER ROSS, TODD BLACKSHER, LYNDSAY KOOISTRA

ROB FUNK, K.P.D. & MATT GLENN, MARKEL SPECIALTY

NEXTGEN PUTTINGTOURNAMENT NICK MALONE, BELFOR, LAURA FITZGERALD, GREAT AMERICAN, TYLER COOK, TRAVELERS, JULIE TREMBLAY, SAIF

THE YOUNGEST NEXTGEN, BOSTON ROSS

1ST PLACE TEAM! NATE BAUER, KENT BERGSTEDT, TIM KENNEDY & ERIK FINROW CORN HOLE CHAMPS! PATTY BRANT WALDO & DELLAS WALDO, FIELD WALDO INSURANCE AGENCIES, INC.

THE GREAT BACKPACK RELAY GIVEBACK WINNERS! DAVID MARKEL, ELODEE CHAPMAN & ANGELA WILLIAMS

LINDA LACESA, STEVE LACESA, OAK TREE INSURANCE, ADRIENNE LITTLE, SAFECO, MOLLY SMITH, SAFECO

JANELL ATKINSON & MARK ATKINSON, ATKINSON INSURANCE & PAST PRESIDENT OF BIG I OREGON

GETTING INTO KENTUCKY DERBY NIGHT

KIM KROGH, OREGON MUTUAL INS GROUP, ROB HAMBLETON, BBSI & CHELSEA ROSSITER, THE PARTNERS GROUP

PRESIDENTS’ DINNER

EXECUTIVE DIRECTOR, TYRA DRESSEL WITH HER FAMILY, HUSBAND BROCK DRESSEL & THEIR SONS, STERLING & DONOVAN

MARY BAUER OPRA & CRAIG OPRA, R BAUER INSURANCE INC

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KELLY REESE & DEBBIE FLORES

BIG WINNERS! JIM HARTH, JENNIE WEILAND, STEPHEN SMELLEY, MATHEW ROBERTSON, LINDSAY ROBERTSON & KABIR SYED

FUTURE OF THE INDUSTRY PANEL. STEPHEN SMELLEY, FOUNDER OF GOLDFINCH CONSULTING - PANEL MODERATOR, KABIR SYED, MBA, SENIOR INSURANCE INDUSTRY EXECUTIVE & THOUGHT LEADER, FOUNDER OF ENNABL, INC., TYLER ASHER, PRESIDENT, INDEPENDENT AGENT DISTRIBUTION, LIBERTY MUTUAL AND DAN FERRARI, SR VICE PRESIDENT, INDEPENDENT AGENT DISTRIBUTION, LIBERTY MUTUAL

CASINO NIGHT GLAM! LYNDSAY KOOISTRA, LAPORTE INS, LINDA SCHELLENBERG & STEPHANIE CRAVEN, SENTRY INSURANCE

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PERSONAL LINES

PREPARING A HOME INVENTORY BEFORE STORM SEASON EASES THE PATH TO FASTER CLAIM SETTLEMENTS By: Nancy Germond

Executive Director of Risk Management & Education, Big “I”

The National Weather Service cited an article recently that found that tornado frequency may be increasing in the U.S. Previously, insurers referred to “Tornado Alley,” – the Great Plains.

Today, this new study finds that the “Dixie Alley” – Mississippi through Tennessee and Kentucky, including southern Indiana, may be the new tornado hotspots.

No matter where your insureds live, many hazards lurk – floods, wildfires, tornados, hurricanes, and home burglaries. A home inventory can help your insureds after a loss, when they are often least equipped to be thinking logically.

When it looks like rain Devastating storm damage or a fire can lock your insureds out of their homes, sometimes for months. One of my agent friends had a small kitchen fire when his daughter decided to cook tacos for the family. When I asked him what had happened, he replied glumly, “She’s trying to kill us!”

They were out of their home for more than nine months.

Relocating after a storm, even temporarily, brings many problems, including finding lodging that allows family pets. The last thing your insured needs after a major storm or fire loss is the preparation of a home inventory, yet that is exactly what they will face.

A thorough home inventory can make the claims settlement process much, much easier on your 16 | Q4 2022 |

insureds. Here are some recommendations you can give your insureds.

Make a list Your insureds should list all their possessions by logical categories. For example, list all appliances, all business property, all clothing, or all kitchen appliances. This is where home inventory templates can help.

If your insureds make a physical inventory, they should store a copy away from their homes in the unlikely event of a total loss. Even using an excel spreadsheet can be a straightforward way to make an inventory.

Take time to document In today’s cell phone world, one of the easiest approaches to inventory management is to photograph or videotape each item, adding a brief description. If your insured is narrating, he or she can add the age, purchase price, and with antiques or scheduled items, the approximate current value. This can help the insured to prepare a running total to help ensure they have sufficient contents coverage.

Remind them to open doors, look in storage boxes (this might encourage them to manage those old family photos), as well as look in the basement and attic if they store things there. An annual inventory update makes it easier to track possessions and increase coverage when needed.

There are several applications that download to your clients’ phones. The National Association of Insurance Commissions offers an online home inventory application for both Androids and iPhone.

Remember that adage, “A picture’s worth a thousand words.”

Remind your insureds of personal property policy limitations Personal property limitations in the various homeowners forms can leave your insureds facing uninsured losses. Remind your insureds often that if they have the following assets, they should review their policies to determine any limitations, and contact you to discuss scheduling specialized personal property that exceeds these limitations.

• Money, gold, gift cards and other monetary items • Watercraft and trailers • Jewelry, watches, silverware, furs, etc.

• Artwork • Business personal property Antiques, jewelry and collectibles are tricky to value and usually require appraisals.

Avoid listing personal property contents limits assuming all your insureds have HO-3 or HO-5 forms. Simply discuss the categories that can be problematic and ask them to call you if they would like more information.

This creates an opportunity to update their information and inform them of other critical issues such as coinsurance penalties and limits of liability.

Be sure to check their forms for replacement cost on contents. Facing a loss without replacement cost coverage can be costly to your insureds.

Update your social media or email campaign with these entries • With [storm season] [hurricane season] [fire season] approaching, take time to prepare a home inventory before you experience a loss.

Here’s a home inventory tool that can help you prepare.

• No one expects [flood] [home fire] [wildfire] [tornado] damage. Losses happen unexpectedly.

You can prepare with this handy home inventory tool.

• Did you know you have special limits on certain valuable items you may own such as jewelry and guns? Reach out to us to discuss how to protect your valuable assets.

Any time is a suitable time to inform your insureds Look for events to reach out to your customers such as Independence Day and seasons like fire season that carry special hazards. The more you can educate your insureds on their policies and perils they may face, the more you gain opportunities to better protect their assets and reduce your errors and omissions exposure.

This article was originally featured on independentagent.com in June.

After your insureds experience a loss, they do not want to scramble to build an inventory.

Some preparation now can save them a lot of time and frustration after a loss.

There are many good home inventory templates out there, including this one from the South Carolina Department of Insurance. Review these tools or search “home inventory templates” on your favorite search engine for more examples.

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

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COMMERCIAL LINES

CONSTRUCTION RISK BECOMING HARDER TO PLACE By: Nancy Germond Executive Director of Risk Management & Education, Big “I”

If the last two years have shown us anything, it is that supply chain disruption will be only one hurdle in insuring new and remodel construction contractors. The demand for housing, whether single-family residences or apartments, continues to increase.

Construction trends in 2022 According to Forbes in a recent article on housing trends, most housing gurus predict “the market to remain strong for a while” for several reasons.

These include the following.

• A younger demographic.

•Now half the U.S. population, Millennials and Gen Z comprise almost a third of today’s real estate market.

• Low housing supply is fueling demand, and with it, increasing home prices.

• Due to stricter loan requirements, experts do not expect a high number of mortgage loan defaults as the U.S. experienced in 2008’s housing crash.

Additionally, skilled artisan and contractor trades such as plumbers, electricians, and kitchen and bath remodelers report strong demand.

As Americans age in place, upgrades such as accessibility improvements and adding square footage for relatives or caregivers will also continue to fuel the remodeling boom.

Challenges placing construction insurance In a recent online seminar on property markets, wholesale brokers discussed the recent 20 | Q4 2022 |

insurance marketplace, The pandemic proved that the government, and customers, deemed tradespeople of all stripes “essential workers,” and most continued to work steadily throughout this persistent pandemic. While the presenting brokers described the market as “in transition,” 2020 saw problems with coverage as the insurance market adjusted. Lower capacity, stricter policy conditions and provisions, and other issues surfaced that insurance agents had to adapt to. These changes included the following.

• Inflation on construction products and now, transportation costs • Nuclear verdicts, especially in commercial fleet exposures • Higher cost of goods, which resulted in higher claims payouts and an “overall poor claims experience,” much of it due to inflationary material costs Additionally, wildfires impacted lumber reserves, and the Texas freeze last year as I saw first-hand last year (my husband is a plumbing contractor), caused practically all plumbing supplies in the U.S. to head to Texas, has hit claims payouts as repaired times and prices increased.

Rate increases are higher among residential contractors.

Fleet auto losses hit contractors’ premiums hard Auto risks are leading the way in losses, and excess carriers today focus on auto losses that pierce excess layers, according to one broker. What underwriters used to consider a fleet, 25 or so autos, is newly defined.

Agents are finding that underwriters now classify eight or ten vehicles as fleets.

The auto experience on the underlying layer is especially important when underwriters review construction accounts, and the insured’s auto loss history is strongly impacting pricing.

As nuclear auto verdicts continue across the nation, most of them tied to auto losses, carriers are carefully scrutinizing fleets. The following factors will come under close review by today’s construction underwriters.

• Driver hiring and training • Annual driving record checks on drivers • Telematics now almost a requirement • Fleet safety practices overall Add in an aging workforce, with many tradespeople working well into their late sixties and seventies, nuclear auto verdicts, and younger workers with less driving experience added to the employment mix, and you can understand the concerns worrying underwriters.

The importance of a strong submission

• Complete any contractors’ supplements required by the carrier or wholesaler • Complete a fleet supplemental application • Submit five years of currently valued loss runs • A five-year history of the following: • Revenue • Payroll • Subcontractor payments, often referred to as SubK costs • Fleet count The more information you provide, the quicker your submission gets “to the top of the stack,” according to one broker.

Working with wholesalers It’s important if you’re working with wholesalers that you use brokers with strong industry contacts, who know the forms and the markets they represent, and have developed strong relationships with underwriters.

With the construction market in transition, it’s imperative that your submission be thorough and of high quality.​ This article was originally featured on independentagent.com in June.

How can agents work against this tide of enhanced underwriting? Here are a few suggestions from the workshop.

A good submission moves to the top of the stack. Underwriters hate to request additional information. If you provide all the information with the submission, you’re more likely to receive a quicker, more positive response.

According to one broker, where an underwriter used to receive one hundred submissions a month, now they’re receiving 200-to-300 a month. The trend now with agents is to “market everything,” so new construction submissions flood today’s constructions underwriters.

Here are some specific submission recommendations made by surplus lines brokers.

• Complete, with an emphasis on “complete,” the Acord 125, 126, and 131

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| Q4 2022 | 21

AGENCY OPERATIONS

WE’VE ENTERED THE ERA OF DISENGAGEMENT Implement flexible working arrangements. It’s By: WAHVE

been shown that employees who work remotely or in a hybrid environment have higher levels of engagement than those who work exclusively in person.

For the first time in a decade, the percentage of employees who are engaged in their jobs is declining. Steadily.

Live your values. According to Gallup, “Employees need to see the intended culture and values lived out daily. The most successful organizations put their values at the center of decisions.” Prioritize employee health, well-being and productivity.

And start at the top. Make sure your people see everyone from the CEO to their peers modeling that behavior. That way, “employees can see the organization’s values lived out through decisions, which builds trust in leadership.”

In fact, the number of engaged full- and parttime employees dropped from 36% to 34% last year, according to a Gallup poll. And this year, that number dropped to 32%, with the percentage of employees who say they are “extremely satisfied” with their organization as a place to work plummeting eight percentage points. Meanwhile, the number of actively disengaged employees—those who are defined as disgruntled and disloyal because most of their workplace needs are unmet—rose to 17%. Yikes!

My guess is that there are a few culprits behind this “era of disengagement.” First and foremost, pandemic burnout is real, and many people are no doubt feeling the strain of being asked to juggle too much with too little help for too long.

Many have left in search of greener pastures, angling for higher salaries, more flexibility or other benefits; but as I discuss in another blog, one in five employees who have quit now regrets it, and only about a quarter are happy enough in their new jobs to stay. So it’s not much better for them, either.

I don’t think it’s all doom and gloom, though.

There are some steps organizations can take to ensure they are a desirable and fulfilling place for people to work. For example, you can: 22 | Q4 2022 |

Communicate regularly. Nothing makes people feel seen and valued like regular and authentic communication. What does that look like? It means doing the research to understand where your team members are spending their time— and reaching them there. That might be email, town halls, podcasts, the company app, or all of the above. And encourage everyone to keep the lines of communication open.

Talk about the future. According to Gallup, there are five keys to success for improving engagement, and one of them is direct, growthfocused conversations with employees. “The only way to meet employees’ needs is through conversations that actively work to address those needs,” the report says.

This is certainly not an exhaustive list of tips for improving employee engagement. What are some of your tried-and-true strategies for boosting engagement across your workforce?

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LEGISLATIVE UPDATES

Big I Oregon Candidate Recap By: Roger Beyer Big I Oregon Lobbyist

Big I Oregon staff seized the opportunity provided by the first real competitive governor’s race in more than a decade and invited the three leading candidates to attend a forum at INSURCON2022. While we had last-minute cancellations for in-person, we did have Christine Drazan join us by video, and Betsy Johnson had a spokesperson participate in person. Unfortunately, Tina Kotek declined her invitation citing her booked travel campaign schedule.

Lyndsay Kooistra, Big I Oregon’s 2022 President, led the discussion by asking each of them a series of questions dealing with public policy and personal items. The fun questions, such as how they met their spouse, were entertaining and gave insight into their families and what they each do in their spare time.

The policy questions, like how they would deal with the homeless crisis, gave the participants an idea of how they would govern and what their priorities would be. The chart below summarizes some of the critical positions each has expressed publicly.

RECAP OF POSITIONS TAKEN BY CANDIDATES AT BIG I OREGON CONVENTION. TINA KOTEK DID NOT PARTICPATE. ISSUES

CHRISTINE DRAZAN

COVID-19 Opposed to mask and vaccine mandates MANDATES Increased funding for law enforcement, will PUBLIC use state trooper to uphold the law, governor SAFETY overstepped power in releasing prisoners HOMELESS- Will address the root causes of homelessness – addiction, mental health, and affordability NESS – and work with our nonprofits, the faith community, and local governments to get people off the streets.

COST OF LIVING

Voted against CAT tax as legislator. Will lead by vetoing new taxes, repealing costly regulations, and by supporting policies that allow Oregonians to keep more of their money in their own pockets.

BUSINESS ENVIRONMENT

Will fight for lower taxes for families and businesses and streamline regulations that make it expensive to build everything from new housing to new factories. I will work with our job creators to bring new investments to our state. I will support critical industries like timber, trucking, and manufacturing.

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BETSY JOHNSON End mandates for business, schools and government workers Increased funding for law enforcement, defend M11, not release violent criminals Will lead with compassion – while also expecting personal responsibility. I will be honest about how the problem has been driven by our state’s mental health crisis, drug and alcohol addiction, access to recently legalized hard drugs, a sorely inadequate housing supply, poverty, and a tolerance for lawlessness.

Voted for CAT tax as legislator. Will work to reduce some taxes and tap the breaks on runaway state spending. I will say no to new taxes, and I will lead to reduce and reform the CAT tax and the estate/death tax.

Will be on the side of Oregon jobs and job creators.

Whether you make wood chips, computer chips, potato chips or fish and chips, state government doesn’t need to be telling you how to run your business or digging deeper into your wallet.

CAP-ANDTRADE

Will repeal Governor Brown’s climate scheme on first day in office. Worked against it while in legislature.

Will revoke Governor Brown’s executive order to implement cap-and-trade plan. Worked against it while in legislature. Will lead the climate fight with practical, common-sense solutions.

EDUCATION

Will lead by keeping our schools open full time and in person. I will restore the graduation requirements that Kate Brown eliminated. I will expand access to school choice.

I will immediately restore academic standards and lost graduation requirements. I believe in giving parents more options for their children’s education including charter schools and home schooling.

I will lead by putting the focus back on patients and on how to provide them with care that is affordable and accessible. We need to recruit providers from out of state to join our ranks on an emergency and temporary basis. If that means suspending some of the licensing and red tape that can delay their ability to provide care DRUG Does not support legalization of drugs.

LEGALIZATION Supports life sentence for drug trafficking conviction. Support repeal of Measure 110.

I will immediately restore academic standards and lost graduation requirements. I believe in giving parents more options for their children’s education including charter schools and home schooling.

HEALTH CARE

Some past governor elections might shed some light on what to expect this year.

In 1990, an independent candidate garnered just 13% of the vote, allowing Barbara Roberts to win the office with 46%. In 1930, when Julius Meier was elected as the only person to serve as the governor who was not a member of a major political party, he tallied an unprecedented 55% to win in a landslide. Even with both major parties being represented on the ballot.

With three well-known and well-funded candidates this year, recent data has moved Oregon from a likely democrat win to a tossup, as rated by national media.

Local pundits have predicted that any candidate getting 40% support could likely win. The translation is that whoever is elected will certainly not receive a majority of the vote and will need to govern by reaching a compromise with whichever party is controlling the legislature.

Personal

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I opposed BM 110 and will work to repeal this failed experiment. I believe the state of Oregon should declare a state of emergency to address our crisis of addiction and mental health.

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

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

Getting involved can be done in many ways: • Financially supporting the candidate of your choice.

• Donating to OIPAC (the political action committee of Big I Oregon).

• Attending town halls.

• Going to campaign events or volunteering your time.

• Being involved in your local communities as decisions being made on how we live and work are also supported at the grassroots level.

Don’t miss this chance to be involved in the most exciting election in nearly a century.

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A trusted supporter of the Big “I” Oregon

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E&O

REPLACEMENT COST: KNOW YOUR LIMITS By: Mallory Cornell IIAW Vice President & Swiss Re Approved Auditor

There is a recurring theme within the questions that have been brought to my attention over the last thirty days: replacement values. In reviewing agency operations, I always ask employees how they determine replacement cost, and more importantly, how do they show that the client selected the values. The first part of the question was historically simple. The second part always ignites some great conversations. It’s important to tackle both and have a consistent procedure within the agency.

Determining Values What used to seem like a straightforward answer now carries a bit more weight considering the rising costs of building materials. Utilization of replacement cost estimators is a good place to start, but always be mindful that the information that is generated by the RCE software is only as good as the data that is entered. The replacement cost estimator is exactly what it says, an estimator. There are many variables to consider in addition to educating your customers on market value versus replacement value. I have yet to meet an insurance agent who is also a licensed appraiser, so consider recommending an appraiser or online cost estimator to your insured.

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In addition to replacement cost estimators, agents may also use a builders estimate or various online resources. Whatever tools the agency chooses to invest their time and money in using, it should be consistent across the agency.

Personnel should also consider the endorsements to the policy they are issuing, upgrades the property owners may be making and advising customers on current market conditions and building costs. While it may be additional work for the agency, it is important to evaluate customer coverage limits at renewal or send correspondence offering a review of coverage and limits.

It is always important to use disclaimers when providing the results of the replacement cost estimator. Agents must avoid providing coverage limits for their client.

Client Acknowledgment Agents who select values and coverage limits for clients are operating in dangerous territory.

The agent should never make decisions for the customer and should always obtain documentation on how values were determined and an acknowledgment from the customer that they agree with the coverage limits. This is NOT a note in the agency management system, this is an attachment or email showing written customer acknowledgment. A signed application is great, but correspondence on values should also be included.

Also be aware that anytime you provide advice on coverage or limits, you are increasing your duty to advise and taking on a role that may be hard to defend if there is ever an E&O claim with that client.

Sample Disclaimer Language:

Building and personal property coverage limits are estimates only and were arrived at based on information provided by the policyholder and/ or industry standard software used to estimate replacement costs. The actual cost to rebuild the structure or replace the personal property may exceed the policy limits, especially in circumstances where a catastrophic event has disrupted the normal supply of materials, labor, and resources. The agency makes no assurances or guarantees that the policy limits provided will be adequate to rebuild the structure or replace personal property. If there is doubt about the adequacy of the policy limits, the policyholder should obtain a professional appraisal or obtain the services of a qualified company or builder who is able to provide replacement cost estimates.

...

Always let your customer make the final decision and only provide information to help them come to that decision.

If a customer selects limits below what your recommendation may be, strongly consider a waiver stating the customer understands the limits may be below what it would cost to replace the property. You also have the option to recommend that customer find another agent if they are not willing to select higher values.

There is no exact science or magic equation when it comes to selecting property values and coverage limits. My advice is to continue to responsibly utilize updated replacement cost estimator software, provide regular updates, and utilize disclaimers. You are great insurance agents, but likely not expert appraisers.

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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.

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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.

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