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GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | September 2021

In this issue: Two Key Character Traits of Successful Producers

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 2021

05 Letter from the President

600 Blair Park Road, Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org

12 Two Key Character Traits of Successful Producers 17 On the Hill

VIAA Officers President Daniel J. Rodliff, CIC, CPIA, LUTCF

20 E&O Corner Watch Out -Here Comes the Hurricane Season

Vice President Michael Barrett Secretary/Treasurer Jessica M. Fleury, ACSR

25 EVOLVE21 Welcome Back

National Director Ronald Bixby Directors

28 6 Ways Financial Partnering Can Help Independent Agencies Thrive

Chip Ams Ian Sutherland Alan Kinney

37 Commentary 43 Agency & Company News

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LETTER FROM THE PRESIDENT ______________________________ September 2021

One year later. I can’t believe a year has passed since I wrote my first letter to you as President of VIAA. We promised at that time, that our members could continue to rely on us for outstanding education, great E&O Insurance and advocacy. We engaged with New England Association Services (NEAS) to provide support and we hired a new part-time Executive Director, Mary Farley. These two moves allowed us to deliver on our promises. We moved to a virtual convention with Evolve20, which was an amazing success. We could not have pivoted without the support of the NEAS team, Mary, our YACs and our members. Thank you all for your efforts! Turning to this month’s issue - what makes for a successful producer? As we work to find candidates for these roles, understanding the key character traits and how to find the right person is critical. As a VIAA member, you have access to Big ‘I’ National’s Big ‘I’ Hires, an outstanding resource that helps you recruit and assess new employees. There is also a new job posting site, Big ‘I’ Jobs, that can assist you in identifying quality individuals to fill key roles in your agency.

Dan Rodliff VIAA President

As I near the end of my term as VIAA President, I reflect on the many challenges our members faced and continue to face during this pandemic. Now that we are slowly opening up, we can finally see each other in person. I cannot tell you how excited I am for this opportunity. Evolve21 is scheduled for September 16 -17 in Burlington – it is not too late to register. Our sessions will help you navigate the post-pandemic insurance marketplace with dynamic speakers and relevant topics. We will also have virtual options for those that cannot attend in person. Registration is open! It is not too late to sponsor, either – we have a few sponsorships available. Contact Sarah Ribera (sarah@viaa.org | 802-229-5884) to learn more. Thank you and we will see you in a few weeks! Dan

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AGENCY MANAGEMENT

TWO KEY CHARACTER TRAITS OF SUCCESSFUL PRODUCERS

By John Chapin There are two primary character traits that almost guarantee success in a producer. Of course, they need to have people skills first and foremost, but assuming they do, these two character traits usually seal the deal. Producers who possess these two character traits will move Heaven and Earth to reach success and if they have these, they’ll also have most of the other qualities you want in top producers. In addition, you won’t have to babysit them to make sure they’re doing what they should be doing, they’ll do what they should be doing automatically, provided of course, you’ve given them proper direction on what their most important activities are and the support to do them. So, what are these two traits? They are the same two traits that make overall great human beings, great companies, and also great

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countries. In fact, people, companies, and countries that lack these two traits will never achieve long-term success. And while shortterm financial success may be possible without these, the long-term effect will ultimately be failure. These two traits are responsibility and accountability. Responsible and accountable producers see themselves as self-employed even though they are technically an employee of an agency. They treat the agency as if it were their own. They understand that they are responsible and accountable to “Me Inc” and not only do they put in the necessary effort and make the necessary sales, they go above and beyond, making more calls and more sales. They also go above and beyond and deliver more for their clients.

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The responsible and accountable producer realizes that their professional and personal development is ultimately up to them.

harder than anyone else can possibly push me.” This comment ultimately highlights the fact that no one can hold you accountable and be responsible for you like you can. You are with yourself 24 hours a day so only you truly know your commitment level.

Hopefully, the agency provides the tools, resources, sales and product training, and support necessary to do the job, but where the agency falls short, the responsible and accountable producer picks up the slack. If they don’t know something, they take it upon themselves to find out. If they feel they are lacking in any area, they take it upon themselves to fill in the gaps and acquire the necessary skills. They don’t blame their manager or the agency for not giving them what they need to succeed. Even if the level of training and support is the highest possible, they still look for additional sales training and professional development outside of what the agency provides. In addition to professional growth, the responsible and accountable producer also makes sure they are growing personally. They take care of their physical and mental health and work on personal relationships and all other aspects of a well-rounded life. Overall, they realize that the best investment is the one you make in yourself and they are willing to make the time and financial investments to become the best they can be.

So, if you’re a producer, take 100% responsibility and accountability for success. Own it completely. By the way, have you ever noticed that the most successful producers are always the most successful? It doesn’t matter what happens with the market, the economy, competition, governments regulations, you name it, they always find a way to succeed. That’s because they are accountable and responsible, they realize that nothing outside of them determines their success or failure, it’s completely up to them. If you’re in sales management and/or you hire producers, keep in mind that like work ethic and good people skills, people either come to you with accountability and responsibility, or they don’t. You want to test for these during the hiring process. Give potential new-hires assignments during the hiring process and then pay attention to their follow-up and follow

The producer who is responsible and accountable realizes they are responsible and accountable to themselves first and foremost. They realize that they made a promise and commitment when they took the job and it is on them to do what they said they would do and to perform the job at the highest level possible. They are also responsible and accountable to their boss and other people in the organization but they realize that the buck stops with them. As the famous basketball player Julius Erving, aka: Dr. J, once said, “I push myself www.viaa.org

Two Key Character Traits of Successful Producers continued

through. These could be people to call, items to read and report on, and other similar activities. Do they do what they’re supposed to do on a timely basis? Are they thorough? Do they need to be micromanaged or reminded? How do they follow directions? How would you grade them on a scale of one to ten? Also, ask questions in the interview to determine whether or not the person you’re interviewing has these traits. When you ask people about their past failings, challenges they’ve had with other people, and other difficult situations they’ve encountered in life, you’re looking for people who take responsibility, not those that blame other people, situations, and outside circumstances for what happened. I think it’s interesting that seemingly upstanding, honest, people of integrity are willing to make all sorts of promises and agree to certain standards during the interview process then, once on board, they have no problem taking your money while not coming close to living up to those promises and standards. You want to find out who these people are before you hire them.

John Chapin is a motivational sales speaker, coach, and trainer. For his free eBook: 30 Ideas to Double Sales and monthly article, or to have him speak at your next event, go to www.completeselling.com John has over 33 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia (Axiom Book Awards). You can reprint provided you keep contact information in place. E-mail: johnchapin@completeselling.com. John Chapin #1 Sales Rep w 33+ years’ experience, Author of the 2010 sales book of the year: Sales Encyclopedia (Axiom Book Awards) – also the largest sales book on the planet (678 pages). 508-243-7359 | johnchapin@completeselling.com www.completeselling.com

By the way, the biggest issues I see with sales teams revolve around responsibility and accountability. It usually shows up in producers who don’t take personal responsibility for their success and a management team that fails to hold them accountable to high standards. If your agency has producers who personally take responsibility and hold themselves accountable, you will eliminate the biggest problems found in sales teams.

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ON THE HILL: House Democrats Pass $3.5 Trillion Budget Resolution

Democrats in the U.S. House of Representatives passed a $3.5 trillion budget resolution that unlocks the process known as reconciliation. The budget resolution had previously passed the U.S. Senate. It did not receive a single Republican vote in either chamber. Reconciliation allows the majority party in the Senate to use spending or revenue bills to expedite consideration of certain tax, budget and spending related legislation. While limited in use, budget reconciliation measures in the Senate require a majority vote and not the normal 60vote threshold to overcome a filibuster and pass legislation. While the Democratic party's budget resolution outlined the Biden administration's spending priorities, it did not include how it will pay for the spending. After House passage of the resolution, both chambers will now need to craft and pass a reconciliation package, which will include the details on their “pay-fors." This is expected to take place sometime this fall or early winter. Based on the contours of the budget resolution, the reconciliation package could include up to $1.75 trillion in tax increases. It is widely It is widely expected that Democrats will include

provisions from President Joe Biden's American Jobs Plan and the American Families Plan that he unveiled earlier this year. Those plans include significant tax increases on both businesses and individuals. Importantly for agencies that file taxes as a C corporation, which is roughly one-third of Big “I" members, President Biden has suggested raising the corporate tax rate from 21% to 28%. For the two-thirds of Big “I" members organized as passthrough entities, President Biden's proposals earlier this year did not call for any changes to the 20% tax deduction for small businesses that was created in former President Donald Trump's Tax Cuts and Jobs Act. However, Senate Finance Committee Chairman Ron Wyden (D-Oregon) recently introduced legislation that would phase out the 20% small business tax deduction for taxpayers with incomes over $400,000, while eliminating it altogether for those with incomes exceeding $500,000. It is expected that numerous congressional Democrats will push to have this included in their reconciliation package. Read More .

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C E O & R O N ER

"A Rejection Form, a rejection form, My Kingdom for a rejection form!" A Cautionary Tale with Apologies to William Shakespeare

By By Richard F. Lund, JD

IIn his play "Richard III", William Shakespeare relates the tale of King Richard III in which Richard is unhorsed on the battle field at the most crucial moment. In a desperate attempt to save himself, he cries out: "A horse, a horse, my kingdom for a horse!" Unfortunately for Richard, no horse is delivered and Henry dispatches him, succeeds to the throne as Henry VII and marries Princess Elizabeth of the House of York. This very famous story highlights how one asset can be the most important factor in determining the success or failure of a person, especially when timing is critical. For Richard, it was his horse. For you as an insurance agent, while not as noble or glamorous, it can be the coverage rejection form. While certainly an agent won't lose his life without this form, the financial impact can be devastating. And to the contrary, if such a form is in obtained, not only may it save the day, it may also be financially rewarding if you are insured by Swiss Re Corporate Solutions. A case in point: In 2011, an agent was retained to procure personal auto liability and umbrella coverage on behalf of his customer. The policy had UIM limits of $250,000/ $500,000 aggregate and an accompanying umbrella policy had a $1MM limit. At that time, according to the agent, the customer signed a UM/UIM rejection form for the umbrella policy. Under this particular state law, an applicant must execute a signed UIM waiver form during the application process in order to waive UIM coverage under an umbrella policy. Additionally, the agency agreement with the insurance carrier expressly stipulated that the agency retain for the period specified in the 20

underwriting requirements, all original, signed applications, driver exclusions, selections and rejections of optional coverage, premium discount documents, vehicle inspection reports, and power of attorney. After the primary and umbrella policies were issued, the customer was involved in a serious accident that resulted in a significant brain injury. The claimant sought the full $1MM umbrella limit from the carrier. (Notably under the law of the state, if an insurer fails to pay a first party UIM claim within thirty days, it may be subject to the assessment of double damages). The carrier contacted the agency to determine if any such waiver existed and after a thorough search, none was found. The carrier was required to pay the $1MM limit of the umbrella policy and then tendered a $1MM policy limit indemnification demand against the agency. Due to the agency's inability to locate the waiver and the language of the agency agreement, the claim was paid. There are two key points to remember from this tale: the first is to always read your agency agreements thoroughly and be fully aware of their terms. The explicit language of the agreement was that it was the agency's duty to retain copies of certain documents and in particular to this case, the waiver of coverage form. Therefore, liability for indemnity to the carrier was absolute. Had the agency read and understood this provision, perhaps better care would have been taken to ensure that the document was retained. When you are presented with any written agreement that you must sign in order to be able to do business with a company, be sure to read the document

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"A Rejection Form, a rejection form, My Kingdom for a rejection form!" Continued thoroughly and if you have questions concerning the provisions, consult with your own attorney to review and advise you of any provisions you may not understand. In many instances, some provisions may be negotiated if you or your attorney do not believe they properly state or protect your interests. The second key point is to properly document and retain rejections of coverages. Offers of higher limits can, and would have in this case, prevented a significant exposure in which a claim was later made as it related to the coverage limit. If you are insured under a policy issued by Swiss Re Corporate Solutions/Westport Insurance Corporation, you may reap a financial benefit. Under the Deductible Reduction feature of the policy, if an insured agency generates and maintains contemporaneous written documentation of a customer's refusal to accept any type of coverage or limit recommendation made by the agency, and there is subsequently a claim alleging a failure to secure such recommended type of coverage or limit, then 50% of the deductible relating to that claim will be waived up to a maximum of $12,500, or until dismissal of the allegations, whichever is first. For example, in the case above, if the agency had the signed waiver in its file, and an action was brought against the agency and costs were incurred, the agency would have been responsible for only 50% of their deductible. Had the deductible been $10,000 for example, the agency would have saved $5,000, perhaps enough to buy a horse!

coverages that you should be offering to your customers, look for the "Virtual Risk Consultant" as well. Hopefully this has given you a little help so that when you are on the battlefield in your everyday business, you won't end up like Richard III crying out "A Rejection Form, a rejection form, My Kingdom for a rejection form!" This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group ("Swiss Re") and/or its subsidiaries and/or management and/or shareholders.

For more information about how to properly document your files, go to www.iiaba.net/eohappens and look under "Prevention Tools". To learn more about the www.viaa.org

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6 Ways Financial Partnering Can Help Independent Agencies Thrive

AGENCY MANAGEMENT

By David Tralka

Twenty years ago, traditional banks weren't a reliable source of capital to finance agency growth and perpetuation. Many institutions just didn't—and still don't —understand the agency model. Insurance companies provided some lending, but it was spotty at best. As a result, agencies were left with few viable options besides private capital for financing. That gave rise to InsurBanc: “The agent's bank." Formed by the Big “I" with the backing of W.R. Berkley Company, InsurBanc was created to provide the capital agents require to compete, grow and perpetuate their firms. With InsurBanc's 20th anniversary in 2021, it's as important as ever to build a culture emulating that of the independent agency: A financial partner that truly understands agency value—cash flow, income and

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credit needs—and tailors solutions like an agent tailors solutions for their clients. Onesize-fits-all does not work in insurance—or lending. Recent history has shown what outside financing can do for an agency's growth. But even though the message remains the same, educating agency principals about capital and why it's so important is too. Here are six ways partnering with an independent agency bank can take your agency to the next level: 1) Staying Independent Agency merger & acquisition activity continues at a fast clip. And while there is huge demand from third-party acquirers, many agency owners want to keep their firm independent through an internal perpetuation plan. However, transferring control of the company to a new generation

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is often easier said than done. For example, the owners of a nearly 200year-old firm wished to stay independent, but two of their partners were retiring. The agency wasn't sure it could afford to buy out both partners at the same time or if it could make the acquisition price attractive enough that an internal buyout would be preferable to the offer of a large national brokerage. The owners knew selling to a larger firm or broker would maximize the retiring partners' earnings, but they wanted to explore options to stay independent. We worked with them to create a perpetuation plan and financing for the buyouts. We analyze an agency's income potential and long-term viability to help owners assess the value of their agency and determine a fair price. We also advise on the appropriate structure for a perpetuation, from personal buyouts to stock redemptions. In the end, that agency was able to remain independent. 2) Succession Plans It was true 20 years ago and it's true today: Attracting talented young producers to this industry and preparing them for ownership is an ongoing challenge for agency owners. Banks should play an important role in business continuity by providing the capital to fund a succession plan.

a remodel has become a showcase for the firm. Agency valuation is a specialty area that few financial institutions have expertise in. It's certainly important to work with a firm that knows this area well when you're thinking about acquiring another agency, but it may matter even more when you're ready to exit the business and need to structure a deal that maximizes your profit while providing the next owner a means to acquire your agency. 3) Inorganic Growth Organic growth is an excellent way to build equity in your firm, but there are times when it makes sense to grow inorganically. Examples include purchasing a book of business, acquiring another agency, adding a producer, investing in new technology, or upgrading your customer service and marketing. For a well-run agency, outside financing can be beneficial. Consider a health care-focused agency that recognized a need to diversify and increase its personal lines business. It wanted to acquire a nearby agency with a recognized and seasoned property-casualty book of business that also provided excellent crossselling opportunities. But the agency needed a financial partner that would view the acquisition as an attractive business opportunity.

Well-crafted financing can make amazing things happen with valuable, long-term employees. Some 28 years after joining an agency as a customer service representative, one of our clients had an opportunity to purchase the firm from the retiring owner. She had gone from customer service representative to president and, ultimately, owner. We provided the initial loan—and after paying it off, she again asked us to finance the purchase of a building for the agency's offices, which after www.viaa.org

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4) Perpetuation Options Even if you aren't ready to sell your agency now, eventually it will have to change hands. Many agency owners haven't given thought to when or how they'll perpetuate. These plans take time to unfold—five to 10 years in most cases—and with so many principals nearing retirement, they need to act sooner rather than later to develop a sound, written, well-funded perpetuation plan that establishes agency value and names buyers and sellers. Sometimes, agency owners need to move quickly. One of our clients had prepared a self-funded perpetuation plan, but the timeline had to be accelerated when his health deteriorated. At that point, he decided that it would be best to involve a bank in the funding. After talking to several banks that didn't understand the agency's business or how to value it, the owner approached us for the transaction. We were able to act quickly and help develop and fund a revised plan to benefit all parties. Other times, agency owners experience seller's remorse. They want to stay in the business and regret giving up control too soon. There's an alternative. In a staged perpetuation backed with outside lending, you sell part of your agency now, but you still own it. Down the road, when you're ready to retire, you sell the rest. You can have your cake and eat it too. 5) Launching a Firm Over the years, producers who successfully cut their sales teeth under the wing of an agency owner have dreamed of owning a firm. But they face a challenge: Banks are leery of lending to an unknown risk. Take the top producer at a large agency who built a book of business from scratch that is now valued at $1 million. She wanted to start her own agency but needed the capital to purchase the business. InsurBanc 30

understood the commitment of a producer who could grow a book to $1 million. This producer's niche is in commercial insurance bonds in the construction, habitation and restaurant industries, and her contacts were extensive. A bank that understands the value of a strong producer is more willing to invest in their future and provide working capital than the average bank. Financing the emerging agency owner is key to the future health of the independent agency channel. Many new agencies and brokerages are building strong brands. They are technologically savvy, culturally tight, aggressive and successful. 6) Strategy Changes Independent agencies certainly appreciate the value of a long-term client relationship built around trust. Their commercial clients can pivot, sometimes entering unchartered waters, and they need an insurance partner to back them up. Agents, too, can pivot and they need a lender that already knows them. The fifth-generation owners of an agency established in 1869 wanted to rethink their acquisition strategy in a difficult and changing economic environment. They were looking for ways to refinance their debt on more favorable terms with flexible cash management and continue to grow through acquisitions.

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The principals were driven to stay on track with their ultimate strategy of growth but needed the financial expertise to get there. InsurBanc loaned the capital and has remained a loyal financial partner, providing financing for subsequent agency acquisitions and the purchase of a building. In these competitive and uncertain times, having a strong lending partner can make all the difference in the world. InsurBanc is proud of our beginnings and the collaborative relationship we've forged with the Big “I" and its members. What Kind of Bank Do You Need? The insight and planning that comes from a long-term relationship with a bank can be invaluable—especially a bank that understands your goals and the complexities of your business and can help you identify and pursue new opportunities. Your bank should be able to provide a wealth of financial and operational advice. This includes analysis of financial statements and other key business metrics, including important industry trends, benchmarking data, information about the latest deal structures and capitalizations, and suggestions for other professionals you might retain such as an attorney, certified public accountant or investment broker.

contribute to building value, and you need a bank that understands this. A bank should know your business and your borrowing needs. A lender should be able to analyze and recommend growth opportunities. It should understand the strategic significance of acquiring new business, as well as the urgency often required in putting together a deal. A long-term banking relationship can have practical benefits, including greater convenience, higher levels of service, better rates and lower fees. Find a bank that truly wants to be your ally and has your best interests in mind. David Tralka is the president and CEO of InsurBanc, a division of Connecticut Community Bank N.A. He is responsible for keeping the bank focused on being an innovative provider of financial products and services for the independent agency community. An expert on agency mergers & acquisitions, agency perpetuation and financing, he has presented at numerous venues nationwide.

Your bank should have the tools an agency needs to analyze income and expenses and forecast future cash needs. Accurate and timely financial reporting will allow you to make more informed cash-management decisions, improve efficiency and maximize your revenue. Also, are you paying attention to quality of earning (QOE)? This is an important measurement of your agency's sustained earning power. It's also an indicator buyers look at closely when they make an offer. All the moving pieces in your agency can

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Beware CGL Classification Endorsements!

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. www.viaa.org

Last week, I received an email regarding a denied claim. A hardware store serviced a garden tractor they had sold. While changing the oil, they failed to adequately tighten the drain plug. While using the mower, the drain plug vibrated loose, causing the oil to drain and damage the engine. The customer filed a claim to replace or repair the engine and the claim was denied by the CGL insurer. The entire basis of the denial was a non-ISO proprietary CGL “Business Description And Classification Limitation” endorsement which said: “Coverage under this policy is specifically limited to those classification codes listed on the Policy Declarations or listed in the SCHEDULE above. No coverage is provided for any classification code or operation performed by the Named Insured not specifically listed in the Policy Declarations or listed in the SCHEDULE above.” The Business Description shown in the SCHEDULE is simply: “Hardware Stores / Distributors / Warehouse” The ISO CGL policy provides very broad coverage for insureds who expand their operations into areas beyond those originally underwritten by the insurer. If the insurer prefers not to assume such risks at the original premium, they may be able to adjust the premium on audit or nonrenew the account. However, some insurers may want to limit their assumption of risk, especially for certain types of businesses, by attaching an endorsement that seeks to limit coverage to the class code(s) on which the premium is based. However, courts often refuse to enforce these types of exclusionary endorsements because reliance on a very broad description as controlling language in an insurance contract may be prohibited as constituting an ambiguity. I’ve actually seen endorsements like this the 38

simply display the actual CGL class code or otherwise provide a vague description. In this case, I would argue that “Hardware Stores” could mean a lot of things and represent businesses with varying services. To illustrate the view of many courts, in the 2011 case of Essex Ins. Co. v. Foley, the federal district court refused a summary judgment request by the carrier on the basis that a comparable endorsement was ambiguous. The late, great Don Malecki, CPCU, ARM wrote about this in the July 2011 issue of Rough Notes magazine. He cites several other cases, including Indiana Insurance Companies v. Granite State Insurance Co., 689 F.Supp. 1549 (U.S. Dist. Ct. So. Dist. IN 1988), in his earlier March 2010 column. More recently, the NY Court of Appeals ruled on a similar situation. Another article from law firm Cozen O’Connor cites numerous court cases involving classification limitation endorsements, with mixed results. While some courts have upheld more specific and detailed descriptions, my past research indicates that it is rare for a court to uphold a very broad description. In the present case, I believe the “Hardware Stores” description to be overly broad and ambiguous. An insured would have no idea

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Beware CGL Classification Endorsements! Continued what activities or services would fall within this statement as to insurance coverage. In this claim, the service provided was some sort of warranty work and, specifically with regard to the actual damage, an oil change. There are at least three “hardware stores” near me that offer equipment servicing and repair. In addition, 10 seconds of Googling revealed a number of “hardware stores” around the country whose products and services entail more than just the sale of hardware.

t which is common among many “hardware stores,” they should have written a broader description that, for example, limited coverage to retail sales or specifically excluded any kind of servicing or repair of equipment. Simply listing a class code description is insufficient given that the insured does not have a copy of a Commercial Lines Manual (CLM) that might be more descriptive. An ambiguity like this is almost certainly going to be interpreted in favor of the insured.

For example, when you say “hardware store,” many people think of Ace Hardware. Consider Simons Ace Hardware which has six locations in Indiana. According to their web site, they offer small engine repair and other services such as equipment rental. An underwriter taking two minutes to visit their web site would see that they perform equipment repair and, given hat they rent equipment like many hardware stores, from Ace to Lowes and Home Depot, they are likely to service such equipment. So, again, given that the “Hardware Stores” description is so broad, I believe that a denial of this claim is inappropriate. If the carrier did not want to cover this type of servicing exposure,

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COMPANY & AGENCY NEWS www.viaa.org

Vermont Mutual Insurance Group Awards Scholarship Grants Vermont Mutual Insurance Group® recently awarded two scholarship grants as part of their company's scholarship program. The scholarships were awarded to two students based on entries submitted as part of the selection process. The company's scholarship committee was tasked with the difficult selection decision based on personal essays submitted by several students. From all of the entries submitted, two essays, one from Molly Yacavoni and another from Nate Williams, were selected. The Vermont Mutual Scholarship Program was established to help the children and grandchildren of employees at Vermont Mutual who are matriculated into a college, university, or other higher education program. The company will issue a check of $2,500 to each recipient with the only requirement that the scholarship money be used for college expenses, including but not limited to: tuition, books, room and board, and other applicable expenses related to their college, university or vocational school.