GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | JULY 2019
Vermont Insurance Agents Association is a statewide trade association representing nearly 100 independent insurance agencies in Vermont, with more than 900 employees. VIAA member independent insurance agents represent more than one insurance company, and as a result, can offer clients a wider choice of auto, home, business, life and employee benefits.t
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Green Mountain Agent is a publication of
CONTENT ________________ JULY 2019
04 Letter from the President
600 Blair Park Road, Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org VIAA Officers President Paul Plunkett, CIC Vice President Alan Kinney Secretary/Treasurer Dan Rodliff National Director Ron Bixby Directors Chip Ams Michael Barrett Erin Odell, CIC Staff Executive Director Mary Eversole mary@viaa.org
07 Newsflash 09 Feature: Agency Operations 13 Feature: Sales & Marketing 16 On the Hill 20 E&O Corner 24 Feature: Claims Happen 27 Insurance Commentary 30 From the Department 32 Company & Agency News
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LETTER FROM THE PRESIDENT ______________________________ JULY 2019 Fourth of July is soon here and summer is flying by! We continue to work to meet our membership needs by bringing to you outstanding programs, products and services that help you meet your goals.
We are moving quickly with the new crop market so you can start placing your current clients and prospects with this premier market. Developed by ProAg, a member of the Tokio Marine HCC group of companies, this program will offer you a great range of products at very competitive commissions. We are starting to appoint sub-agents for this program, so contact the VIAA office to get the process started for your agency. If you are looking for talent for your agency, carve out some time to check out the new Big I Hires program now available to you as a member of VIAA. Big I Hires is a complete hiring platform that gives you the tools to find, screen and assess qualified candidates for your agency. This platform is designed specifically for independent agencies and pricing is deeply discounted to make it affordable to our members. Registration will soon be open for our fall convention EVOLVE19 scheduled for September 18-19 at The Essex in Essex Junction. Have the opportunity to meet many of your fellow agents and the carriers you represent, including our Premier sponsor Vermont Mutual Insurance Group. We’ve got a great line up of activities you don’t want to miss, so
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Paul E. Plunkett, CIC VIAA President save the date watch for more information to follow soon. There are so many benefits of being a member of VIAA, I hope you take advantage of what is available! Please share your business needs with VIAA. We will do all we can to match your needs up with a current VIAA service, resource, product or referral.t
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NEWSFLASH: BIG ‘I’ APPLAUDS HOUSE FINANCIAL SERVICES COMMITTEE FOR FLOOD REAUTHORIZATION The Independent Insurance Agents & Brokers of America (the Big “I") thanks the House Financial Services Committee for passing a measure to extend the National Flood Insurance Program (NFIP) for five years. “The Big 'I' applauds the committee for voting to extend the NFIP for five years,” says Charles Symington, Big “I" senior vice president of external, industry & government affairs. “The Big 'I' especially wants to thank Chairwoman Maxine Waters (DCalifornia) and Ranking Member Patrick McHenry (R-North Carolina) for recognizing the critical role the NFIP plays in the lives of millions of Americans. They have previously lead efforts in the House to guarantee flood insurance remains available to those who need it. Now they are now playing a critical role in reauthorizing the program on a long-term basis while making needed reforms that will increase take-up rates through the NFIP and the private market."
series of stop-gap extensions and a few brief lapses in 2017 and 2018. The committee-passed measure would extend the program for five years and make needed reforms to the program. The Big “I” strongly supports a continuous coverage reform clarifying there is no penalty if consumers leave the NFIP for the private market and then need to return to the NFIP because conditions change.
Congress must periodically reauthorize the NFIP, which is currently set to expire on Sept. 30. However, Congress has yet to pass a long-term NFIP extension as debate continues regarding options for reforming the program. This has already resulted in a
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AGENCY OPERATIONS
GETTING SUED BY BEING TOO HELPFUL: STICK TO YOUR EXPERTISE By David Thompson A fellow "insurance nerd" of mine did a class a few years back titled, "Getting Sued by Being Too Helpful." He presented the class alongside an attorney who specialized in E&O defense. The thrust of the class was that insurance agents should stick to their expertise (insurance), and not venture outside of insurance when giving advice to customers. Here are 10 examples I have run across recently that illustrate this concept very well. All of these situations were presented to me by agency staff, seeking an answer from me so that they could provide an answer to their customer. 1. Golf cart: "Can golf carts legally travel on public roads? If so what roads, and must they be licensed? What safety equipment is required? My customer has asked me and I don't know the answers." Answer: "I don't know. I'd refer the customer to the Department of Highway Safety. I can help you with the insurance issues surrounding the ownership of a golf cart, but not the registration issue." 2. Swimming pool: "I insure a homeowners association. Does the swimming pool have to meet the requirements of the Americans with Disability Act?" Answer: "The best source is probably a local building official or a swimming pool company; I'd refer the customer there. Did you have a question about coverage under a CGL policy for the pool?" 3. IRAs and life insurance cash values: "I am quoting an umbrella for a customer. He has asked me if he were to get sued could the plaintiff take his IRA and cash value from his life insurance policy?" Answer: "That's a question to be answered by an attorney; I'd suggest to the customer that they consult with their attorney. Did you have a question about coverage under an umbrella policy? If so, I can help with that."
4. Garnish wages: "A coworker and I disagree on an issue. She just sold her house and says she no longer needs to carry an umbrella. (WHAT?) She said that if she got sued a judge could not garnish her wages. Could that happen?" Answer: "Your coworker should ask a judge that question. Now, let's talk about the need to carry an umbrella even if you don't own a home." 5. Auto lease: "My customer owns a car and wants to lease it to his company and add it to his business auto policy. Does FAIA have a sample lease we can provide to the customer?" (I swear this was a real question.) Answer: "No we do not; that's for an attorney to draw up. Now, let's talk about the serious insurance mistake the customer is about to make." 6. Condo drywall: "I insure a condominium and they have to tear out the drywall to repair a pipe that is deteriorating. There is no insurance claim, but they have asked me who has to pay for the drywall. I want to be helpful to my condo association, so what's your view of who has to pay?"
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Answer: "My view is that this is not an insurance issue, and an insurance agent should not be involved. The issue is between the board and the unit owner. If there had been a covered cause of loss generating an insurance claim I could have helped, but this is not an insurance issue." 7. The kid's car: "My customer's son is 19 years old and dad wants to put the car in the kid's name, and write an auto policy with low limits. The kid is over 18 and the title is not in dad's name any more. Dad has asked if he can be sued if the kid injures someone?" Answer: "You know the saying that anyone can be sued for anything. Whether such suit would result in success is ultimately up to a judge or jury. I can, however, discuss the serious insurance gap that is about to be created." 8. Form of business ownership: A few years back when my daughter was only 25 she called me saying, "Dad, Beth and I are going to start our own speech therapy business." After the initial shock passed (she was only 25 and planning to start a business!), I said to her, "Let me know a month in advance and I can get the insurance going for you." A week or so later she called back saying, "Dad, how should we organize this thing? Should we incorporate, be a LLC, a partnership, or something else?" Dad's answer: "I don't know, Leslie. Ask Robert, he is your corporate attorney. Once you and Robert figure it out let me know and I'll run with the insurance issues." 9. Condominium: "I have a condo association where a unit was sold by one individual and bought by another individual in May of this year. In July, the new unit owner wrote to the property maintenance company that the bay window in her master bedroom does not close property and the sliding lock does not secure the window. She called a window company and their assessment was that the window was not level or plumb and the entire system needs replacing to the tune of $6,500. The association has asked me who has to pay for this repair?" 10
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Answer: "This does not involve insurance and the board should consult with their property manager and/or attorney." 10. Vehicle registration: "Is it possible to register the vehicle that is garaged in California and a vehicle garaged in Chicago without physically bringing each vehicle to a Florida Tax Collector or DMV office?" Answer: "Refer the customer to the local 'tag office' so they can get the answer. Then, if the vehicle is registered in Florida and thus requires a Florida auto insurance policy, you can take care of that aspect for the customer." Remember, stick to your area of expertise. i.e. insurance. Don't get sued by trying to be too helpful to your insurance customer.
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SALES & MARKETING
SO YOU'VE GOT A MARKETING BUDGET R CO - NOW WHAT?
O & E
By Jacquelyn Connelly If you’re one of the few agencies that dedicates time and energy to developing a concrete marketing budget, kudos—you’ve taken an important first step in prioritizing your business’s funds to make a little go a long way. Ideally, if you’re the owner or principal of your agency, you’ve been an integral part of the process so far. Experts agree that at a bare minimum, it’s crucial for agency leadership to have a hand in developing the marketing budget. “Setting a budget is a function of building the business plan, and that’s a senior management kind of thing,” says Paul Kurnit, clinical professor of marketing at Pace University and CEO of PS Insights, a marketing communications consultancy firm. “The owner needs to be deeply involved.” “The principal needs to be highly involved—the person spending the money, because no one cares about your money as much as you do,” agrees Robyn Sharp, owner of Sharp Family Insurance and founder of Mega Agency Marketing, a marketing firm that specializes in helping agents use online marketing to grow their agencies. “Delegating creation of the budget to people who don’t have skin in the game can be really dangerous. If you’re getting a paycheck, and you can count on that paycheck, you’re just not as worried about the outcome.” But it’s one thing to create an agency marketing budget in the first place—it’s another thing entirely to execute it. “Many agencies simply don’t have an active marketer in the office,” says Jennifer Jennings, vice president, marketing and training, Grange Insurance. “The principal is spending their time running their agency and is often still part of client acquisition.”
Over the course of developing the budget, “the owner needs to identify two or three or four trusted resources in the agency who have a stake in developing and fulfilling the plan,” Kurnit suggests. “They may not have a vote in terms of what the budget’s going to be, and that’s OK. Having that understanding is critically important because it has a bearing on not only financial investment, but also human investment. Staff should get a vote on whether or not marketing ideas they develop will be consistent with the budget.” Aligning your people with the marketing budget and plan is a crucial step that many agencies overlook. “A lot of times you see the principal hand marketing responsibilities over to a CSR and say, ‘Hey, you can work on this.’ But then they never block out time for that person to do it,” points out Dale Steinke, director, independent agent marketing programs, Safeco Insurance. “If you don’t block out the time, it doesn’t happen.”
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At the average agency with revenues under $5 million, one employee is dedicated to marketing, and marketing payroll totals approximately 2.5% of net revenue, according to the 2018 Best Practices Study Update. Meanwhile, the average agency with revenues over $5 million employs nearly four marketing staffers and devotes approximately 1.3% of net revenue to marketing payroll. “Figure out, within the components of the plan, who is best suited to do which aspects of it,” Kurnit suggests. “You could have a relative’s kid who’s got a good gift of gab doing cold-calling, for example. That would be a very inexpensive component of your budget.” Once you’ve determined who’s going to execute what, “someone needs to have accountability for marketing results,” says Sharp, who works with a variety of agencies on Facebook advertising specifically. Who that person is will vary agency to agency.
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“I’ve seen this with a lot of my clients—at smaller agencies, it’s usually the owner who’s keeping up with exactly how many leads their staff is responding to, getting quotes from, all of that,” Sharp says. “Then I have larger agencies that kind of just turn it over to their employees. They vaguely know what’s happening, but their staff has a clear picture. Either way, you need to really understand how well your marketing is performing.” Regardless of how your agency structures its marketing manpower, “you need to have somebody who’s dedicated to doing it, even if it’s only a few hours a week,” Steinke says. “Among the fastest-growing agencies, one of the core things they have is some sort of marketer—part-time, full-time, something.”
ON THE HILL: NFIP REAUTHORIZED; FEMA TO RELEASE DATA By Wyatt Stewart
The U.S. House of Representatives passed a disaster aid package that included an extension of the NFIP through Sept. 30, the end of the fiscal year. Earlier today, President Trump signed the legislation into law. Congress had previously passed a two--week extension of the program through June 14, so this new legislation gives Congress more time to work on a long-term reauthorization. Now, the Big “I” expects the House Financial Services Committee to mark up a long-term reauthorization of the program with some reforms this summer—potentially as early as next week. At press time, the Big “I” expects at least four bills related to flood insurance to be included in any mark-up. One bill would deal with the NFIP’s reauthorization and affordability issues; one would address mitigation and flood management; one would address mapping; 16
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and one would address the claims process. Additional legislation could be added to any mark-up. In other flood insurance news, FEMA announced plans to release decades of previously unreleased data from the NFIP in the coming days. "We believe this will provide transparency, reduce complexity for public data requests, improve how our stakeholders interact with and understand our program, all without compromising consumer privacy," said FEMA chief executive David Maurstad. FEMA will release the documents on its OpenFEMA website, including data on every individual flood insurance claim going back to 1978 and every policy sold going back a decade.
Wyatt Stewart is Big “I” senior director of federal government affairs.
C E O & R O N ER
STAY IN YOUR LANE By James Redeker - Vice President and Claims Manager at Swiss Re Corporate Solutions Whether it’s to please a large account, appease a family member or diversify their business, many insurance agents agree to place coverage that is outside either their area of expertise or their geographical comfort zone. Due to their lack of expertise or lack of knowledge about the area where they are placing coverage, these agents are at risk of committing an error. This is a dangerous practice. Swiss Re Corporate Solutions has witnessed claims in which a large client purchases their own airplane, yacht or summer home on the coast. The client asks their agent to procure coverage for the new acquisition. While the agent is not comfortable placing the coverage, they are even less comfortable sending their prized client to a competitor for the coverage. Instead, they muddle their way through, obtaining what they believe is the coverage their client needs. Not until a loss occurs is the coverage flaw discovered: The owner/pilot of an airplane does not meet the qualifications the policy requires. The homeowners policy on a coastal home does not include wind or flood coverage. The yacht now located on the bottom of the Gulf of Mexico has a docking restriction: within 100 miles of the owner’s address, which the policy lists as Indiana. In each of these real-life examples, Swiss Re’s insured agent had to go back to a large client and explain why there was no coverage for their loss. Another common dabbling error is when an agency decides to expand their book of business by branching into a new area of coverage. In an attempt to broaden their footprint, an agent may approach prospects who require coverages of which the agent is unaware.
In these scenarios, Swiss Re’s insured agents have failed to procure pollution coverage or hired and non-owned auto coverage, just to name a couple examples. The common thread across most of these claims: When a loss occurs, the missing coverage is so obvious that we are unable to find an expert witness who will say our insured agent met the standard of care. The damages are often high, and the impact of the claim on the agency is dramatic. The good news is there are ways to lessen or even avoid these dabbling errors. When placing a type of coverage for the first time, go through a broker who is knowledgeable about the coverage. Although you must split the commission with the broker, consider that cost as investment in an education and peace of mind. Another good source of information is the Big “I” Virtual University (independentagent.com/vu), which is full of white papers, articles and checklists for many types of coverage in many geographical regions. If you have a specific coverage question, you can use the VU’s Ask an Expert service for help. As a member of the Big “I” family, you have a wealth of information and expertise at your disposal for no additional charge, starting with this simple piece of advice: Even a little dabble is too much.
James Redeker is vice president and claims manager at Swiss Re Corporate Solutions and works out of the office in Overland Park, Kansas. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re. Copyright © 2018, Big “I” Advantage, Inc. and Westport Insurance Corporation. All rights reserved. No part of this material may be used or reproduced in any manner without the prior written permission from Big “I” Advantage. For permission or further information, contact Agency E&O Risk Manager, 127 South Peyton Street, Alexandria, VA 22314 or email at info@iiaba.net.
This article is not intended to provide specific advice about individual legal, business, or other questions. It was prepared solely for general informational purposes, and is not a recommendation that a particular course of action be followed. If specific legal or other expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought.
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CLAIMS HAPPEN
IN OVER YOUR HEAD Andrew was an experienced agent at a large insurance agency. Andrew placed Commercial Property coverage for his client who was a real estate developer. Among the properties he owned, the real estate developer owned a shopping center. The agent and the property developer had verbal discussions when the policy was initially placed regarding the value of the property. According to the agent, the value of the building was ultimately determined by the real estate developer, but nothing was put in writing by the agent to reflect how the value was determined or whether the client agreed with the valuation. The agent procured a replacement cost property policy with $2.5 Million in replacement cost for the building. The policy was then renewed each year for 5 years. During this time period, neither the agent nor the client re-visited the issue of the valuation of the property or considered or discussed possible increases in the value of the property. The shopping center then burned to the ground. When the client submitted the claim, the carrier paid the limit of the policy. However, the property owner claimed that the replacement cost of the property was actually $7MM and claimed that the property was undervalued. The real estate developer admitted receiving the renewals each year but not reading them. He further claimed that he completely relied on his agent to determine the appropriate insurance coverages, that it was the agent that set the initial value of the property and that the agent never recommended an appraisal at any point. The real estate developer proceeded to file suit against Andrew and his agency. 24
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What are the major issues in this case? Agent’s failure to document property valuation process in writing Agent’s undertaking to set the value of the property when that is potentially outside his/her area of expertise and the agent may not have a duty to undertake this task. In addition, the property owner is in a superior position to know the value of his/her own property An insurance broker is not required to ascertain the levels of coverage for a risk. However, if the agent assumed this obligation even though he didn’t have to, he thereby created a special relationship that obligated him/her to exercise a greater degree of care and diligence. Agent’s failure to consider and discuss increases in value of the property over time i.e. by not performing a yearly analysis of coverages and making necessary modifications to the level of coverage. What could have been done differently by the agency? Yearly review of property values with sign off by client Written documentation of valuation with client sign-off Written recommendation that the client have the property appraised What do you think was the outcome? The case was tried and the agent assessed almost $2MM in damages for undertaking to value the property and not doing it properly as well as failing to review the value Copyright © 2019, Big “I” Advantage, Inc. and Westport Insurance Corporation. All rights reserved. No part of this material may be used or reproduced in any manner without the prior written permission from Big “I” Advantage. For permission or further information, contact Agency E&O Risk Manager, 127 South Peyton Street, Alexandria, VA 22314 or email at info@iiaba.net.
Insurance Is NOT a Commodity… Real Life Example #8,215: Auto Business Exclusions
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A risk management consultant shared the following claim with me: “An employee was running to the store to get some milk for some sort of work party or activity and was involved in an at-fault accident. Now, the employee’s personal auto carrier is denying the claim on the basis that the insured was engaged in “business use” at the time of the auto accident and, therefore, not only is the liability claim excluded, but so is the physical damage claim. “It is downright disgraceful that an insurer would include such a broad exclusion and that any department of insurance would approve that policy form. I wonder if the California financial responsibility laws will require that coverage apply for the $15K-$30K-$5K minimum limits for third party liability. “Traditional insurance agents arranging coverage should know that at some point in time most everyone uses their vehicle in business whether to run an errand, go to a class or meeting, etc. Insurance agencies should ban the sale of policies like this one. “There is a good chance the policyholder purchased the coverage online or via a direct sales representative and might have answered honestly that he did not use his car in business – of course until he did.” The liability exclusion in the personal auto policy in question reads: “Bodily injury or property damage resulting from the ownership, maintenance, or use of a vehicle or trailer by a person while in the course and scope of employment, or engaged in any business. This exclusion includes use of a vehicle for delivery of goods or services arising out of any business. This exclusion does not apply if business use of the insured auto has been declared and a premium charged prior to the loss.”
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"I have written about this for years. Insurance is NOT a commodity." A similar exclusion applies to physical damage claims. I have written about this for years. Insurance is NOT a commodity. You will not find an onerous business use exclusion like this in an “ISO standard” personal auto policy nor in the proprietary policies of most insurance companies. At policy inception, an insured can answer truthfully that they do not use the vehicle for any business purpose, but later begin to do so, unaware of the restrictiveness of this type of exclusion. Such onerous exclusions have, I believe, dramatically increased in the past decade or two. I’ve seen exclusions for unlisted drivers where the insured reported all resident drivers at policy inception, but later a ‘boomerang’ kid moves back home and the insured fails to report this to the insurer. For other examples of this, check out this article. Allowing exclusions like this in the most common class of insurance policies is appalling. I can recall when state insurance departments rigorously reviewed policy forms and form revisions, disallowing such onerous exclusions that not only adversely impact the insured, but leave the public unprotected from negligent vehicle operators that would otherwise be insured in the absence of such exclusions. Allowing such policy forms in the marketplace does not serve the public interest. This is especially true given that industry advertising is dominated by price-focused ads that imply that there’s really no difference between insurance policies other than price. Regulators should regulate what is important.
FROM THE DEPARTMENT Vermont Creates Restitution Fund for Victims of Securities Fraud Commissioner of Financial Regulation Michael Pieciak announced the creation of a restitution fund for Vermonters who fall victim to investment fraud. The Department of Financial Regulation worked closely with the Legislature to create the fund, which is included in Senate Bill 131 (Act No. 57 of 2019). It will allow fraud victims to recover a portion of their losses when full restitution is not available. “In cases of investment fraud, such as Ponzi schemes, stolen money is often quickly squandered, leaving the courts and DFR unable to enforce restitution orders,” said Commissioner Pieciak. “This fund will provide financial assistance to victims of scams and frauds who obtain nominal relief from a court or the department, but no monetary recovery.” The money for the victim restitution fund will come from monetary settlements of state securities law enforcement matters. No taxpayer money will be used.
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Michael Pieciak Commissioner of Financial Regulation The money for the victim restitution fund will come from monetary settlements of state securities law enforcement matters. No taxpayer money will be used. Victims may apply for restitution within two years of receiving a final order. Claims are limited to the lesser of $25,000 or 25 percent of the total restitution awarded, except vulnerable persons, including persons age 60 or older, may receive the lesser of $50,000 or 50 percent of the total restitution awarded. The department intends to adopt rules, including an application process, by the end of the year.
FROM THE DEPARTMENT INSURANCE INNOVATION WAIVER BILL SIGNED BY GOVERNOR Vermont is now one of only two states offering this unique approach to stimulate insurance innovation
Governor Phil Scott signed S.131, an act relating to the creation of an insurance “regulatory sandbox” that permits the Commissioner of Financial Regulation to grant limited-duration innovation waivers. The waivers are designed to enable companies to offer innovative or more efficient insurance products and services to Vermont consumers.With this legislation, Vermont becomes one of only two states to offer this incentive for insurance innovation. “This program will show insurers and the businesses and individuals they serve that Vermont is open to innovation,” said Governor Scott. “We hope this program will allow insurers the opportunity to bring to market new types of products that provide significant benefits to Vermont consumers and our economy.” The program allows the commissioner to waive, for a specific time period, a limited set of statutory and regulatory requirements that might otherwise inhibit new and innovative products or services. Innovation waivers may
be granted if a company demonstrates a waiver is in the public interest and will not substantially increase risk to consumers. Additional robust consumer protections are included in the law. According to Commissioner Michael Pieciak, “although companies may be granted temporary relief from certain statutory or regulatory requirements under this program, they will also be subject to enhanced regulatory oversight during the waiver period.” Innovation waivers are temporary; at the end of a waiver period, a company must cease offering the product or service and comply with all applicable laws and regulations. Deputy Commissioner of Insurance Kevin Gaffney explained that, “if a product completes a successful test under a waiver, the Department could determine that statutory change is warranted and propose appropriate legislation to allow the insurance product or service to be offered on a permanent basis.” The Department anticipates it will begin accepting applications for innovation waivers by the end of 2019 once the operative regulations are adopted.
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COMPANY & AGENCY NEWS
Acuity Announces High School Contest for National Truck Driver Appreciation Week National Truck Driver Appreciation Week, September 8-14, 2019, is when America takes the time to honor all professional truck drivers for their hard work and commitment in tackling one of our economy's most demanding and important jobs. To commemorate the event and celebrate drivers nationwide, Acuity is sponsoring its third annual National Truck Driver Appreciation Week Essay and Video Contest. High school students are invited to submit an essay of up to 1,000 words and an accompanying video of up to one minute. Over $5,000 in prizes will be awarded, including a grand prize of $2,500. Entries are being accepted until July 21, 2019. Submissions will be judged on originality and uniqueness of the story, use of language relevant to the topic, and creativity in how ideas are expressed. For more information, including official rules, judging criteria, and prizes, visit acuity.com/contest. Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 100,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 27 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,300 people.
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Acuity Acuity Recognized for Outstanding Operational Performance Acuity earned a 2019 Stakeholder Team Accomplishment Recognition™ (STAR) award from independent financial analysis firm Demotech, Inc., putting the company among the top 1 percent of insurers nationwide. Acuity is one of only three companies to earn a STAR award in each of the last four years. "In a competitive, regulated industry subjected to a variety of economic influences, Acuity’s consistent ability to meet the objective financial standards associated with the criteria underlying our STAR awards is a tribute to management and the enterprise risk management practices they have put in place,” said Joe Petrelli, Demotech Co-Founder and President. The Demotech STAR award recognizes insurers whose performance benefits all stakeholders, including agents, customers, employees, consumers, regulators, and reinsurers. Acuity was honored with a STAR award for exceeding performance criteria and maintaining outstanding financial strength and stability, profitability, claim handling, and compensation to employees and agents. Nationwide, just 27 of nearly 3,000 property-casualty carriers evaluated qualified for a STAR award. “Acuity’s consistent performance benefits everyone who depends on us and reflects our commitment to our employees, agents, and customers,” said Ben Salzmann, Acuity President and CEO. “We can all be proud of performing among the top 1 percent of companies and being one of only three companies to earn a Demotech STAR award for four straight years.” Demotech, Inc. is an independent financial analysis firm located in Columbus, Ohio. Since 1985, Demotech, Inc. has been serving the insurance industry by providing consulting services as well as accurate and proven Financial Stability Ratings® (FSRs) for property and casualty insurance companies of all sizes.
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Hickok & Boardman Network of Companies Announces Twelve Non-Profits to Receive Charitable Gift The Hickok & Boardman Network of Companies is pleased to announce twelve non-profit recipients of their 2019 charitable gifts, including: Children’s Literacy Foundation, Kids on the Ball, Cancer Patient Support Foundation, Steps to End Domestic Violence, Lake Champlain Committee, C.I.D.E.R. (Champlain Islanders Developing Essential Resources, Inc.), Hope Lodge, Mount Mansfield Village, H.O.P.E. in Lyndonville (Helping Other People Every day), Therapy Dogs of Vermont, Passion 4 Paws and an employee family member in need from the Town of Barre. Nearly 20 years ago, to celebrate the volunteerism and interests of their employees and associates, the Hickok & Boardman Network of Companies including Hickok & Boardman Insurance, Coldwell Banker Hickok & Boardman Realty, and Hickok & Boardman Financial Planning & HR Intelligence formed a Charitable Gifts committee with representatives of each company. Annually, each firm contributes to a fund and Hickok & Boardman employees and associates are given the opportunity to nominate a charity in which they are involved.
Mary Kaminsky Joins Vermont Mutual as Loss Control Manager Vermont Mutual Insurance Group® recently named Mary Kaminsky as the company’s Loss Control Manager, replacing retiring Loss Control Manager, Donald Rung. For the past two decades, Ms. Kaminsky has worked as a Loss Control Consultant for several companies, more recently she spent 4 years as the Loss Control Manager for a New England regional company. Over the past few years she played a key role in leading a Loss Control process improvement program for a national carrier. Kaminsky has been with Vermont Mutual now for several months, working closely with Mr. Rung in order to make the transition process as seamless as possible for their customers, agents and fellow employees. Vermont Mutual’s Executive Vice President and COO, Mark McDonnell, stated “This is a bittersweet moment for Vermont Mutual as we welcome a new Loss Control Manager of Mary’s caliber, but at the same time have to say goodbye to Don, a key member of our team who has contributed immeasurably to our success. Don will be greatly missed by all of us who have had the privilege of working with him, both as a top-notch insurance professional and a friend.” Mr. Rung remarked “Working for Vermont Mutual has been such an incredible experience for me and my time here has been among the best years of my professional career. I am truly grateful to the company for its leadership and its values.” Regarding his successor, Rung continued “Vermont Mutual is very fortunate to have been able to attract and secure someone with Mary’s skill set and attitude. While she possesses technical loss control expertise that is admirable in its breadth and depth, she also brings communication competencies and interpersonal skills of a caliber that are rarely found in combination with her technical skills..” Ms. Kaminsky will be based in Whiteville, ME and Montpelier, VT.
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Hickok & Boardman Insurance Group Hires New Talent for Critical Role Jay Nunn has joined Hickok & Boardman Insurance Group as their Controller as of October, 2018. Nunn joins the organization from UTC Aerospace Systems. He brings over 15 years of Finance and Accounting experience in both Manufacturing and Financial Services, having previously worked for State Street Bank, Fidelity Investments, and JP Morgan Chase. Jay received his Bachelors from Wittenberg University and holds his MBA from Norwich University and was recently elected to the Board of Directors for Special Olympics of Vermont. Scott Boardman, President of H&B, noted that “Jay fills a critical role in our organization and will support our mission and values with utmost integrity”. Jay grew up near Columbus, Ohio and currently resides in South Burlington with his wife Katie and their two children. In his free time, he enjoys spending time with his family, traveling and getting outdoors. Hickok & Boardman Insurance Group was founded in 1821 and is headquartered in Burlington, Vermont. They have most recently been awarded with “Best Places to Work” in Vermont, and “Best of Business” in Vermont for Property and Casualty Insurance, both for the second consecutive year.
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Now Hiring - Senior Commercial Risk Manager
Senior Commercial Risk Manager ESSENTIAL DUTIES AND RESPONSIBILITIES: The Richards Group is currently seeking an experienced insurance professional to join our Commercial Lines Division in Brattleboro, VT. This position will be instrumental in managing a complex commercial insurance book of business through expertise in retention, client servicing, technology, marketing and sales support. We are seeking an outgoing, confident, team player who has extensive experience in Commercial Property & Casualty Insurance. This individual will work directly with the agency VP to meet organizational objectives. They will be responsible for servicing existing clients directly and will consistently meets sales, service, and quality standards established by management with emphasis on retention and exemplary client servicing. KEY REQUIRED SKILLS & QUALIFICATIONS Deep knowledge and expertise in Property & Casualty; a thorough understanding of Commercial Insurance Products, including: Property, General Liability, Workers Compensation, Products Liability, Professional Liability, Employment Practices, Cyber Liability, Automobile, Umbrella and Flood Insurance is required. An executive presence with polished and well developed written and oral communication skills. Must have a Consultative service and sales attitude and approach in working with a variety of business industries and sizes. Experience in working with various insurance companies and systems; professionally and thoroughly developing customized proposals. Ability to perform in depth coverage analysis and policy review. Ability to work effectively with account management and customer service teams Must have Integrity. A positive attitude. Highly professional. Very reliable. Focused. Detailed. Efficient. Must be a Team player and highly self-motivated. Active Property & Casualty Insurance Producer License. 5-10+ years experience in Commercial Property & Liability Insurance Client Servicing, Management and Technology. At least 3 years experience using application management system (AMS 360). Please send resume & cover letter to acrawford@therichardsgrp.com
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