GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | SEPTEMBER 2020
Is Your Website ADA Compliant? 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
Green Mountain Agent is a publication of
CONTENT ________________ September 2020
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
08 Meet the New VIAA President Dan Racliff 10 NewsFlash 14 Now is the Time to Make Sure Your Website is Accessible
VIAA Officers President Daniel J. Rodliff, CIC, CPIA, LUTCF
17 On the Hill
Vice President Michael Barrett
24 E&O Corner
Secretary/Treasurer Jessica M. Fleury, ACSR
27 Insurance War Stories that Make You Go "What?"
National Director Ronald Bixby
29 Young Agent Spotlight
Directors
33 Governor Phil Scott Announces Strengthened Mask Requirements
Chip Ams Ian Sunderland Alan Kinney
36 Commentary 39 Agency & Company News
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LETTER FROM THE PRESIDENT ______________________________ September 2020 It is truly exciting and humbling to be writing my first letter to you as your newly installed President for the coming year. As a Board, we are ready to take on all of the challenges in front of us in our goal to serve you, our members. We will continue to offer you outstanding education, great Errors & Omissions Insurance, advocacy and all of the other benefits you have come to expect from us. As we announced previously, Mary Eversole, our long-time Executive Director, is no longer with the VIAA. I personally want to thank her for her leadership, dedication and support to independent agents during her tenure. She will be missed.
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Dan Rodliff VIAA President
Any time there is change, it is an opportunity to look at what you do and how you do it. We, as your elected Board of Directors, have engaged New England Association Services (NEAS) to handle additional functions for us as we determine how to best structure our staffing to meet your needs. I assure you that you will see no change in the level of service you are accustomed to receiving. I will continue to update you on our plans as we forge ahead in our strategic planning.
probably feel overwhelmed with the task of taking this on, but don’t worry. The Big ‘I’ has a host of resources, including a list of vendors, that can help you get compliant and stay compliant.
This month we feature an article about making sure your website is ADA Complaint. I want to stress the importance of getting this updated for your own websites, as suits are being filed nationally. As agency owners, I know you
Thank you for your continued support in our great association. Whether you are working from home or are back to the office, I wish you all and your family’s success and good health in the weeks and months ahead.
Last, but certainly not least, I want to encourage you to participate in EVOLVE 2020. It will take place virtually this year and will be free to you and your staff. We are putting together a great line up of speakers and activities to make this a truly outstanding benefit of membership.
"As a Board, we are ready to take on all of the challenges in front of us in our goal to serve you, our members." www.viaa.org
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M E E T
V I A A D A N
P R E S I D E N T
R O D L I F F
Dan Rodliff was born and raised in St. Johnsbury and graduated St. Michael’s College in 2001. He joined Liberty Mutual in 2003 as a sales representative and assisted in starting the first BNI Chapter in Chittenden County in October of 2003 as a networking sales group. In his 12 years in BNI, he held all of the various leadership positions and won BNI Vermont’s Member of the Year in 2014. After four years with Liberty Mutual, Dan moved on to Poulos Insurance in 2007. He spent his first four years as a top producer with Poulos and earned a partnership in the firm in 2011. In 2014, Poulos was acquired by NFP and Dan saw his responsibilities grow to include the management of eight offices as well as the New England sales division. In May of 2019, he was promoted to his current role as Senior Vice President where he manages the entire P&C sales team for the Northeast Region, cultivating a productive sales culture. Dan served on the board of the Vermont Builders and Remodelers Association and is currently on the board of CSB Youth
V I A A
G O A L S
Hockey. He assisted in starting the first Young Agents Committee along with Alan Kinney and Pat Cahoon in 2014 and has served on the VIAA Board since 2016. A ten year resident of Shelburne, Dan enjoys spending time with his family doing almost anything outside and coaching his two sons in a variety of sports.
F O R
2 0 2 0 - 2 1
Advocate, educate and connect our members. Build on the working relationship with our friends at the Department of Financial Regulation . Promote and support the activities of our Young Agents. Develop an outstanding conference for the fall of 2020. 8
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V I A A
B O A R D
O F
D I R E C T O R S
2 0 2 0 - 2 0 2 1
Officers
Directors
President Daniel J. Rodliff, CIC, CPIA, LUTCF NFP, South Burlington
Chip Ams Finn & Stone Insurance, Manchester Center Ian Sunderland Hickok & Boardman Insurance Group, Burlington
Vice President Michael Barrett Barrett Insurance Agency
Alan K. Kinney Kinney Insurance Agency, St. Albans
Secretary/Treasurer Jessica M. Fleury, ACSR The Richards Group, Brattleboro National Director Ronald Bixby Ludlow Insurance Agency, Ludlow
F R O M
V I A A
O U T G O I N G
A L A N
P R E S I D E N T
K I N N E Y
I would like to start by thanking Mary Eversole for her 8 years of work for VIAA. Mary was instrumental in starting our award winning Young Agents Committee, a key legislative advocate for us, ran award winning educational programing, and a strong resource for all Vermont agents. Her leadership during the COVID outbreak was noticed by many. Her contributions to our state association are many and we wish her the best in her move back home. Overall it was a very different year for all agents. We started with our first ever EVOLVE conference which focused on technology and information sharing among agents. Little did we know how much we would all be forced to accelerate those plans with many of us having to work from home during the quarantine period. I wish Dan the best during his presidency and want to thank Paul Plunkett and Erin Odell for their year’s of service to VIAA. www.viaa.org
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NEWSFLASH
DFR Reaches $230,000 Settlement with State Farm for Underpayment to Life Insurance Beneficiaries Commissioner Michael Pieciak announced the Vermont Department of Financial Regulation (DFR) entered into a settlement agreement with State Farm Insurance Company, of Illinois, for improperly calculating interest payments resulting in underpayments to over 500 life insurance policy beneficiaries. Under the terms of the settlement, State Farm will pay $204,000 as an administrative penalty and implement a corrective action plan to ensure compliance with Vermont law. The company also paid $30,347 in restitution to the affected beneficiaries.
Farm will strengthen its internal processes to ensure future compliance with Vermont law and the company will be subject to a DFR audit to verify these processes have been properly implemented. DFR entered into similar insurance settlements in 2019 with CMFG Life Insurance Company and John Hancock relating to the underpayment of interest on death benefits, which combined totaled $1,031,000 in administrative penalties and $170,793 in restitution.
“Our department’s top priority is protecting Vermont consumers and making certain they are fairly treated and get the full benefit of Vermont law and their insurance policies – I am proud our department achieved these goals under this settlement,” said Commissioner Pieciak. “I also appreciate that State Farm has worked cooperatively with our department, provided restitution, and committed to implementing a corrective action plan to prevent this from happening again.” A routine review of State Farm’s form life policy determined that State Farm’s policy form did not contain reference to Vermont’s death benefit interest rate. Further, State Farm was unable to certify the appropriate interest had, in fact, been paid during the prior six years. It was later determined 569 claims were underpaid based on an inappropriate interest rate.
Commissioner PieciakUnder the settlement agreement, State Farm will strengthen its internal processes to ensure future compliance with Vermont law and the company will be subject to a DFR audit to verify these processes have been properly implemented. Commissioner Pieciak would like to recognize and thank the leadership of Deputy Commissioner Kevin Gaffney, as well as Christina Rouleau, Phil Keller, Isabelle Keiser, Marcia Violette, and Diane Sherman for their work on this matter. Commissioner Pieciak also encourages Vermonters to contact DFR if they have a question, concern or complaint about their finances or at 833-DFR-HOTLINE or online at https://dfr.vermont.gov/consumers/filecomplaint/insurance. Connect with the Vermont Department of Financial Regulation on Twitter, Facebook, and on our website.
Under the settlement agreement, State 10
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NOW IS THE TIME TO MAKE SURE YOUR WEBSITE IS ACCESSIBLE
AGENCY OPERATIONS
By Ron Berg and Eric Lipton When the Americans with Disabilities Act (ADA) became law in 1990, it was long before the internet became an engrained part of everyday life. While early litigation focused on physical access, such as access to places of public accommodation such as stores and offices), claims today often take issue with online access barriers such as websites that are incompatible with screen-reading software. In October 2019, the U.S. Supreme Court declined to hear Domino's appeal of a lower court ruling on an ADA website accessibility claim against the pizza company. With the Supreme Court and Congress failing to establish limitations on these types of claims to date, there has been a surge in ADA website accessibility litigation. That trend is likely to accelerate, especially with the increase in online business due to the COVID-19 pandemic. Given the circumstances, it is more important than ever to make sure your agency's website is sufficiently accessible to persons with disabilities. Although neither Congress nor the Department of Justice have yet established clear rules or regulations on what is required, many jurisdictions have looked to the Web Content Accessibility Guidelines (WCAG) 2.0 or 2.1, published by W3C Web Accessibility Initiative, as the industry standard. Some plaintiffs even use automated tools to search for websites that fail to meet these standards. Thus, although agents are not under an express obligation and may even be in material compliance without meeting every 14
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standard, trying to meet WCAG standards is key to avoiding unwanted website accessibility disputes. “Accessibility does not guarantee that you won't be sued, but it makes it a lot less likely and it will help defend your case in that you were working to make your agency website accessible," says Larry Neilson, CEO of Neilson Marketing. Third-party vendors like Neilson Marketing offer services intended to help businesses try to meet WCAG standards. Ideally, website accessibility should be addressed both in the initial development and ongoing maintenance of a business website. Some web developers may even offer guarantees or assurances that a newly developed website will conform with current WCAG standards. Changes or updates to a website and its content, of course, could require further consideration. And websites
Now Is the Time to Make Sure Your Website Is Accessible Continued that did not address accessibility at all when developed present additional challenges.
ADA Compliance Resources
To that end, some vendors offer accessibility overlay toolbars or plugins that can help improve accessibility on existing sites. While there has been some recent criticism of whether certain of these overlays are adequate, they may still prove helpful tools in achieving compliance and avoiding litigation. It is important to remember that simply adding an accessibility overlay toolbar or working with an outside vendor is not a foolproof defense against legal claims. At the same time, making reasonable efforts should not only help to avoid or defend against any claims—it also makes good business sense. With approximately 12 million people age 40 or older in the U.S. having vision impairment, according to the Centers for Disease Control and Prevention, Mr. Neilson often asks businesses a simple question: “Why would you want to exclude such a large customer base before they even know anything about you?"
Over the past several years, the Big “I" Office of the General Counsel and the Agents Council for Technology (ACT) have provided a variety of resources on this topic with links to some key resources below. A webinar is also in development. The web-based ACT guide “ADA & Accessibility: What You Need to Know" is a crucial starting place and includes a list of potential website accessibility service providers. Other resources include: ACT Article by Larry Neilson and Jerry Fox: “Your Website Should be ADA-Compliant" ACT and Big “I" Memo: “FAQ Regarding Website Compliance with the ADA" WCAG 2.0: “Web Content Accessibility Guidelines" WCAG “Checklist for Web Content Accessibility"
Written by Ron Berg and Eric Lipton. Ron Berg is executive director of the Agents Council for Technology (ACT). Eric Lipton is Big "I" senior counsel.
Use these resources to be proactive—not only to increase the awareness of your agency to a wider array of potential customers, but also to ensure you take steps to prevent potential accessibility disputes.
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ON THE HILL: Medicare for All Gaining Momentum as 2020 Election Approaches
As the COVID-19 pandemic lingers on and we approach the November elections, federal health care policy continues to garner significant attention. Specifically, Medicare for All, Medicare buy-in and the public option have gained some momentum within the Democratic party. Democrats in the U.S. House of Representatives held multiple hearings on these proposals in 2019, including hearings in the House Committee on Energy and Commerce and the Ways and Means Committee, which have jurisdiction over health care policy. In addition to the hearings, Sen. Bernie Sanders (I-Vermont) and Rep. Pramila Jayapal (DWashington) have both introduced Medicare for All legislation this Congress. While presidential candidate Joe Biden has continued to advocate for making changes within the framework of the Affordable Care Act on the campaign trail, a Democratic sweep in the November elections
could bring immense pressure from the Democratic base to consider these policies in 2021 and beyond. The Big “I" has been a consistent supporter of the employer-sponsored health care system and was successful in fighting to repeal the Affordable Care Act's (ACA's) “Cadillac Tax," an insidious tax that would have caused significant harm to the employer-sponsored marketplace if it had not been repealed at the end of 2019 before it was set to be implemented. Employer-sponsored health insurance is the most common way Americans receive their health insurance and the Big “I" believes we must do everything we can to make sure that the more than 180 million Americans who rely on this system can keep their current insurance. As the “Cadillac Tax" is now in the rear-view mirror, the Big “I" has turned its attention to this www.viaa.org
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Medicare for All Gaining Momentum as 2020 Election Approaches continued
new government-run threat to the employersponsored system. As part of its fight against attempts to scrap the employer-sponsored system in favor of a government-run system, the Big “I" joined the Partnership for America's Health Care Future (PAHCF).
In addition to hurting consumers, this would have a drastic effect on the health care marketplace and completely change the role agents and brokers play in ensuring consumers get the best health care coverage for their individual needs.
In addition to agents and brokers, this important coalition includes the nation's leading doctors, nurses, clinicians, community hospitals, health insurance providers and pharmaceutical companies, who are all committed to working together to ensure every American has access to the affordable, high-quality coverage they deserve.
Outside of the insurance marketplace, government-run healthcare would also have a broad effect on the nation's economy. According to the Committee for a Responsible Federal Budget (CRFB), American families would have to see significant income tax increases to fund Medicare for All, which they believe would cost $32 trillion over a decade.
Like the Big “I," the PAHCF supports building on the strength of the employer-provided health care system and preserving Medicare, Medicaid, and other proven solutions that hundreds of millions of Americans depend on. The organization's mission is to “work together to lower costs, protect patient choice, expand access, improve quality and foster innovation."
Interestingly, the CRFB also notes that even a low-end estimate of $30 trillion over a decade “would mean increasing federal spending by about 60 percent (excluding interest)" and “require the equivalent of tripling payroll taxes or more than doubling all other taxes."
The PAHCF strongly believes that a new government-run health insurance system, such as Medicare for All, Medicare buy-in or the public option, will not allow us to achieve those goals. These new proposals would ultimately eliminate patient choice and control over their coverage and force Americans off their current plan and into a single, government-controlled health insurance system. The Congressional Budget Office notes that under a government-run system, “patients might face increased wait times and reduced access to care," and such a system “could also reduce the quality of care," while “[t]he number of hospitals and other health care facilities might also decline as a result of closures, and there might be less investment in new and existing facilities." 18
The PAHCF is focused on taking this policy analysis and increasing public education and awareness on the dangers of government-run health care through TV advertisements and digital engagement. As the November election draws closer, the Big “I" looks forward to continuing our work with the PAHCF to build on and improve what is working in our current employer-based health care system while continuing to oppose a one-size-fits-all, new government health insurance system. Written by Wyatt Stewart, the Big “I" senior director of federal government affairs.
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C E O & R O N ER
A Surplus Lines Blow-up By SwissRe
Joe Smith Insurance Agency’s office is in Pecos, Texas, as is Smith’s long-time client, Pyrotechnics, Inc. Pyrotechnics designs and performs fireworks shows throughout the southwest region. Smith has procured Pyrotechnics’s CGL coverage for many years. The nature of the liability is such that the coverage has always been procured through the surplus lines market. Pyrotechnics does many shows for municipalities around the 4th of July. Each municipality requires Pyrotechnics to procure a special event policy listing the municipality as an additional insured. Smith also procures these policies for Pyrotechnics in the surplus lines market. The City of Carlsbad, NM hired Pyrotechnics for its Independence Day celebration, and Smith procured the usual policy from BiCentennial Insurance Company. At the time of placement, BiCentennial carried a B- rating from A.M. Best. As the Smith Agency is a licensed surplus lines broker in Texas, it was able to collect the taxes and stamp the policy with the language required by the Texas regulations. During the Carlsbad event, a fireworks product malfunctioned such that the unit exploded on the ground near a group of spectators and caused significant injuries. When the injured parties brought suit, BiCentennial had just finalized its liquidation in the bankruptcy court. The BiCentennial policy was therefore not available to defend or indemnify either Carlsbad or Pyrotechnics. What are the major issues in this case? There are several issues. First, did the New Mexico or Texas surplus lines statutes apply to 24
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this event-specific policy? If New Mexico’s statutes applied, what is the effect of having the Texas stamp on the policy? What is the effect of Smith not having a NM surplus lines license? Second, was a higher rated or admitted product available at the time of placement? Will Smith’s E&O carrier respond to the claim against Smith in light of the policy’s insolvency exclusion? What were the root causes of the loss? In this case, the loss is caused by the agency having placed a policy for a New Mexico event without using a New Mexico licensed surplus lines broker, thus failing to follow the required New Mexico regulatory and statutory provisions. The courts are likely to impose “strict liability” on the agency as a result; in other words, the agency will not be permitted to mount a defense to demonstrate that its placement of the BiCentennial policy was not negligent under the circumstances. Since BiCentennial was rated B- at the time of sale, Smith may have to defend the case without its
A Surplus Lines Blow-up Continued E&O policy’s assistance because the policy’s insolvency exclusion does not cover claims arising out of a carrier’s insolvency if the carrier was rated lower than B+ at the time of sale. What could have been done differently by the agency? The agency should have made every effort to find a higher rated carrier (especially if an admitted market was available), but absolutelyshould have written the client to advise that the coverage was being placed with a carrier rated as B-, and included a suggestion that Pyrotechnics conduct its own investigation to find any broker with access to a higher rated carrier for this risk. They also should have made the client aware of the ramifications of placing business through a non-admitted market and its effect on coverage under the state guarantee fund should the carrier become unable to meet its financial obligations. The client file should include signed documentation to this effect. Obviously, Smith should have affiliated with a New Mexico licensed surplus lines broker to make sure the policy was placed in accordance with all the applicable statutes and regulations.
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VIAA Education September
2020
Virtual Courses
September 3 CISR Commercial Property Seminar
September 30 CISR:Personal Residential Seminar
September 15 CISR: Commercial Casualty II Seminar
September 30 Environmental Liability Coverage Seminar
September 24 When Words Collide with Bill Wilson September 28 CISR Life & Health Essentials Seminar September 29 EPL - Understanding the Exposures and Insurance Coverage Seminar
September 30 Key Questions to Ask When Writing Homeowners Insurance Seminar
Register at VIAA.org Open
Insurance War Stories That Make You Go, “What?”
COVERAGE
By Chris Boggs
What an industry we chose! We get to see the good, the bad, the ugly, the stupid, and the utterly ridiculous. This is the stuff of legend and it reminds us why we must pay attention. Following are some real-life war stories from insurance professionals from around the country. There is a lot that can be learned from the weird reality in which we live. Names have been changed or left out completely to protect the innocent. It Was Caused by a Pollutant; Therefore, it is Excluded My client was a large utility contractor. They installed and repaired underground piping for municipalities and utility companies. A crew was repairing piping at a water treatment plant when the pipe on which they were working burst. Unfortunately, the pipe ran through the computer room of this utility company. As you might imagine, what was in the pipe spewed from the pipe and destroyed the computers. I hesitate to say what was in the pipe, but remember, it was a water treatment plant. www.viaa.org
Let's just say is was effluent-filled water. We turned the claim into the CGL carrier and guess what, they denied the claim saying that the effluent-filed water met the definition of a pollutant and thus there was no coverage. I said, “What a crock of effluent-filled water" and I pointed out their error. ISO's “absolute" pollution exclusion applies to, “(1) 'Bodily injury' or 'property damage' arising out of…." The key phrase is “arising out of" which requires proximate cause, not just the presence of a pollutant. I called the claims adjuster and asked, “Do you think the same damage would have been caused by absolutely pure and clean water?" He said, “Yes." To which I responded, “Then the damage did not arise from the release of a pollutant, correct? It arose from the fact a liquid substance that happened to contain something you might consider a pollutant was released." The adjuster had to agree and pay the claim. Moral: Understand how policy language applies and question the adjuster for improper denial 27
Insurance War Stories That Make You Go, “What?” continued “I Don't Want to Pay to Insure the Full Amount!" One of my wealthy insureds bought a new $275,000 boat (Cabin Cruiser/Yacht). Time goes by and the boat gets stolen. The thieves take the boat down the Mississippi River to the Gulf of Mexico and out into the ocean; we literally had video of them taking the boat through each lock/dam on the river. I get a call from the claims adjuster telling me the boat is insured for $275,000 and its currently worth $425,000. I can't believe it! I call the insured and he says he bought the boat for $500,000 but didn't want to pay premium on that amount so he asked for $275,000; “I never figured I would lose the entire boat." The carrier wrote the insured a check for the policy limit - $275,000. The insured suffered a $150,000 uninsured loss. He used the $275,000 to buy a $100,000 boat – which he insured for liability only because rates for physical damage were high due to his recent loss.
Moral: Don't be afraid to research and ask questions – there is no such thing as too many questions. The Application: More Than Something that Simply Must be Completed (It's Good to Look at Them) The owner of a condominium project hired a framing contractor for a multi building project. The framing contractor hired a subsubcontractor for the window installation. They were able to get a really good deal on the windows; but because the windows had no flashing fins, they leaked and everyone filed suit. Although the framer's supplemental application - completed by the framer himself - clearly stated that 60 percent of his work 28
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involved condos and townhomes, the framing subcontractor's policy contained an exclusion for any work involving condos, multi-family townhomes, or co-ops. Evidently, the agent didn't spot the problem. But the good news was the agent issued a certificate of insurance (COI) for the project his E&O carrier paid policy limits and the agent added $500,000 from his own resources. Moral: You might want to check the application and compare it to the policy. In fact, you may want to check the policy, period. Just Because You Can Doesn't Mean You Should Two individuals retired to start a business that ultimately became very successful. Since they were fully vested in their former employer's benefit plan, both individuals remained on the retirement health insurance program. In order to save approximately $1,000 a year, the two men made a decision to remove themselves, as members/managers of the LLC, from their company workers' compensation coverage. While on a business trip both owners were involved in a tragic accident resulting in more than $1 million in medical bills. Their former employer's health plan excluded medical expenses arising out of work-related injuries; and because coverage under their own company's workers' compensation had been endorsed removing them from coverage, these expenses had to be paid out of pocket. Moral: Never take coverage work comp coverage away; but if you do, make sure the policy that is expected to pick up the cost actually will.
YAC SPOTLIGHT: Audrey Macie Noyle Johnson Insurance
Audrey Macie has been working at Noyle Johnson Insurance since 2012 and over the last 8 years has worked her way up into her current position as Director of Operations. She enjoys being able to share her knowledge of computer systems to help her coworkers understand and be able to do their job more efficiently and effectively. Although her fellow employees may say she is quiet, they would also tell you how friendly and knowledgeable she is! She hopes to continue to grow within the agency and one day work her way into an ownership role. Those that know Audrey will tell you about her compassion and loyalty. She is extremely organized and very dedicated to her family and career. Before insurance, Audrey owned a small at home bakery that she would sell at farmer markets, convenience stores and restaurants.
When Audrey isn’t working at her agency you will still find her baking at her home in Barre Town with her husband Carroll, her two chocolate labs, Chancellorsville and Sir Lancelot and her three-legged cat Henry. When she isn’t working or at home, you can find Audrey out walking her dogs, Jazzercise class or anywhere near a body of water.
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WHEN WORDS COLLIDE SEMINAR
RESOLVING INSURANCE COVERAGE & CLAIMS DISPUTES With Bill Wilson, CPCU, ARM, AIM, AMM
September 22, 2020 Live via Zoom Filed for 6 VT Credits
REGISTER NOW AT VIAA.ORG
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Couldn’t Happen To Me
William C. Wilson, Jr. CPCU, ARM, AIM, AMM is the founder of InsuranceCommentary.com. He retired from the Independent Insurance Agents & Brokers of America in December 2016 where he served as Assoc. VP of Education and Research and was the founder and Director of the Big "I" Virtual University for over 17 years. 36
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Couldn't Happen to Me Continued
The first incident is something I read online at Reddit where consumers often ask insurance questions: “I have an auto insurance policy with AMICA. However, in April of this year, I reduced coverage, as I was not driving the vehicle at all. My vehicle was marked as not being driven, which I believe means I don’t have liability coverage. “As fate may have it, I decide to drive for the first time in 3 months to a grocery store hardly a mile away, stop at a traffic light and proceed to accelerate as a green light is on. The vehicle in front of me stops abruptly and I had hardly any time to react and I hit the car in front of me on the bumper. There was no damage to my car and the other car had probably a bumper scratch. No visible damages to both cars. Cop gets called in and a police report is filed. We both state there’s no damage to car and no one is injured and I get home. I also call up insurance to put back my liability and all others back on the policy. “Today 3 days later, the other party files for injury claim. I get a call from my insurance company today asking the details and I provided them. I am wondering as to how will this be handled by insurance, as I may not have liability insurance at the time of the incident. Will there by any out of pocket expense?” This is exactly why I’ve written before about suspending auto coverage: The Danger of Auto Policy Lay-Up Endorsements Hopefully, in his case, he only suspended physical damage coverage, as some states may not allow liability coverage to be suspended while the license is active. Sadly, he doesn’t even know what coverage was
suspended and may, in fact, have simply cancelled his coverage. The second incident was a marina fire. I live on a lake across a cove from a marina. In 2013, a tornado came through our property on its way to destroying much of the marina. This time, according to at least one account, a houseboat owner was working on the engine in his slip, starting and stopping it many times throughout the day, and perhaps gas fumes built up until there was an explosion and fire. Fortunately, no one was injured. According to news accounts, three houseboats and a pontoon boat were completely destroyed, along with damage to other watercraft, not to mention significant structural damage to the docks. This is purely a guesstimate, but I would not be surprised to learn that the damages exceed a million dollars. I’m also guessing that the person responsible had watercraft liability insurance but I wonder about the limit and whether he has an umbrella policy. People with watercraft need umbrella policies. REAL umbrella policies. GOOD umbrella policies. And probably not just $1M limits, depending on both the assets and income (now and in the future) of the insured and the exposure to loss. When we got our pontoon boat in 2013, I added watercraft coverage to our personal lines account and our $2M personal umbrella policy. The cost to extend the umbrella liability to the boat? Seven dollars. Yes, you read that correctly, SEVEN ($7.00) dollars. What watercraft owner can’t afford an additional $7 premium on an umbrella policy? Do you share stories like this with your customers and prospects? Do you have success stories where you, with great effort, convinced someone to buy a coverage or policy they didn’t think they needed until they did? Stories and testimonials are one of the best sales tools you have. www.viaa.org
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COMPANY & AGENCY NEWS www.viaa.org
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Union Mutual Earns Seventh Consecutive Best Places to Work Honor Union Mutual is proud to announce it was recently named one of the 2020 Best Places to Work in Vermont. This is the seventh consecutive year that the Company has received this award, achieving its highest-ever overall rank of third out of 13 winning organizations within the Medium (100-249 employees) category. The 14th annual list of the Best Places to Work in Vermont was created by Vermont Business Magazine, the Vermont Chamber of Commerce, the Vermont Department of Economic Development, the Vermont Department of Labor, the Society for Human Resource Management (SHRM) – Vermont State Council and Best Companies Group. This statewide survey and awards program is designed to identify, recognize and honor the best places of employment in Vermont, benefiting the state's economy, its workforce and businesses. The 2020 Best Places to Work in Vermont list is made up of 51 companies. Companies from across the state entered the two-part survey process to determine the Best Places to Work in Vermont. The first part consisted of evaluating each nominated company's workplace policies, practices, philosophy, systems and demographics. This part of the process was worth approximately 25% of the total evaluation. The second part consisted of an employee survey to measure the employee experience. This part of the process was worth approximately 75% of the total evaluation. The combined scores determined the top companies and the final rankings. Best Companies Group managed the overall registration and survey process in Vermont and also analyzed the data and used their expertise to determine the final rankings.
Union Mutual Promotes Burrall to Assistant Vice President The Union Mutual Companies recently announced the promotion of Alexis Burrall to Assistant Vice President, Marketing. Having graduated from The University of Vermont in 2009, Burrall began her career in financial planning for a Boston, Massachusetts-based company. With prior experience in public relations, Burrall joined the Company in 2012 as Marketing Coordinator. Most recently she served as the Companies’ Director of Marketing overseeing Agency Management, Marketing and Sales efforts throughout the New England and New York territories. The promotion was effective August 15, 2020. Burrall lives in Waterbury, Vermont with her family and she is based in the insurance group’s Montpelier, Vermont office.
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Acuity Helps Provide Grants, Training to Employees in Service Industries Impacted By COVID-19 Acuity Insurance is donating $35,000 to help provide grants and training to employees of hotel and beauty industries, two sectors impacted significantly by COVID-19. The donation was spearheaded by Acuity’s Services Customer Team, which focuses on creating innovative products and resources for service businesses and building strong partnerships with Acuity’s customers in the sector. During a time in which many in-person activities have been curtailed, this team has worked to identify new ways to support the service industry, such as through support of the PBA Foundation and the AHLA Foundation. Acuity is donating $10,000 to the Professional Beauty Association (PBA) Foundation COVID-19 Relief Fund and $25,000 to the American Hotel & Lodging (AHLA) Foundation’s COVID Relief Fund. The PBA Foundation donation will provide 20 grants to industry professionals impacted by the pandemic. The AHLA Foundation donation will help provide 100 hotel employees with access to free training, professional development, and continuing education scholarships.
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