GMA - Summer 2023

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GREENMOUNTAIN

AGENT

Summer 2023

This Month's Feature Surviving Changing Markets

Table of Contents President's Message VIAA Convention 2023 VIAA Jobs Vermont News National News Managing Cash in a Rising Rate Environment Agency & Carrier News VIAA Golf Tournament Trusted Choice Launches Hard Market Tools Errors & Omissions Same Old Claim: 3 Ways agents are getting stuck in auto errors & omissions VIIABoardofDirectors President Vice President Treasurer Secretary National Director Directors Jessica Fleury, ACSR Ian Sutherland, CIC, AAI-M Aislyn Allen, CISR Laurie Audy Michael R. Barrett Pat Cahoon Audrey Macie Green Mountain Agent is a publication of Vermont Insurance Agents Services 600 Blair Park Road, Suite 100 Williston, VT 05495 Phone: 802-229-5884 | Fax: 802-876-7912 www.viaa.org 05 06 11 12 13 16 20 26 27 32 viaa org | 3 GREEN MOUNTAIN AGENT| SPRING 2023

PRESIDENT'S MESSAGE

JessicaFleury,ACSR

Ihopeeveryoneisenjoyingtheirsummer months!Withtheheatcomesunpredictable weatherandpotentialforflooding.Speaking offlooding,ourbeautifulStateofVermont wasrecentlyhithardwithfloodingand impactingseveraltownsinVermont, includingourCapitol Thedevastationfrom thishistoricfloodingwillcreatehardshipsfor manyresidentsandbusinessownersacross thestate.VIAAhasbeen,andwillcontinueto be,dedicatedinprovidingmemberswith importantupdatesandresourcesinatimely fashion.Thevolumeofinformationis overwhelming,butweendeavortoseparate themostimportantandusefulinformation aboveallelse.Letusknowwhatelsewecan dotosupportyouinrecoveringfromthis disaster.

Plansforthe2023VIAAAnnualConvention arewellunderwaywithregistrationnow open Theeventwillbeheldatanewlocation, KillingtonGrandResort,onSeptember18-20, 2023.Wesecuredincredibleovernight lodgingpricingandloweredtheregistration feestomaketheeventaffordableforall.Take

acoupleofdaysouttoenjoynetworking, learning,relaxationandinteractionwith companiesandvendors–youdeservea break!VisitVIAA.orgfordetailsand registration.Thegoalistocometogetherin personforfunentertainmentinadditionto somefantasticcontinuingeducation.After receivinggreatfeedback,wedecidedtobring backHospitalitySuitestopromote networkingamongstourmembers,carriers, andvendors.Youwillnotwanttomissit!

Anotherexcitingchangehappeningthisyear isthatwearemovingourAnnualMeetingand BoardInstallationtoNovember.Savethe dateforMonday,November13,2023.The EvolvingLeaderswillalsoholdtheirmeeting atthesametimewithaluncheontofollowin Montpelier Moretocomeonthedetailsas wegetcloser.

Onbehalfoftheboard,thankyouforyour continuedsupport.Ican’twaittoseeyouat theAnnualConventioninKillington!

Ifyouhavequestions,Iinviteyoutocontact reachmeat:Jfleury@therichardsgrp.com.

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JobsinVermont

VERMONTNEWS

VIAAHelpswithFlood Resources RegisterforVIAA Convention

VIAA has posted several resources to help you and your insureds as you recover from recent flooding. As an agency, if you need assistance with your agency, you can apply for assistance through the Trusted Choice Disaster Relief Fund. Learn More

The 2023 VIAA Annual Convention will take place on September 1820 at the Killington Resort in Killington, VT. You're invited to attend this premier event including independent insurance agency members, Evolving Agents, and companies throughout the state of Vermont. Register Here

2023VIAAGolfTournamentAResounding Success!

Agents, Carriers and other Insurance Professionals enjoyed a great day golfing at Vermont National on July 24. Check out the photos and play highlights.

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GREEN MOUNTAIN AGENT| SUMMER 2023

NATIONALNEWS

TrustedChoice® LaunchesHard MarketToolkit

After an extended period of low premiums and abundant capacity, we are now in the midst of a hard insurance market. Trusted Choice® is proud to announce the release of its Hard Market Toolkit. The toolkit assists Big “I" member agencies in navigating the current insurance market and helps them effectively communicate with their clients about its complexities. Learn More

TextMessagingand Customer ExperienceWebinar

Trusted Choice® and TechCompare vendor Textel are co-hosting a webinar, “Using Text Messages for Marketing & Improved Customer Experience" on Aug. 23 at 1:00 p.m. ET. Learn More

LegislationMakingTax ReliefforSmall BusinessesPermanent ReintroducedinHouse

Rep. Llyod Smucker reintroduced the “Main Street Tax Certainty Act" and was joined by over 80 cosponsors in the U.S. House of Representatives. The Big “I" supports this bipartisan legislation, which would make permanent the 20% small business deduction (Section 199A) passed as part of the 2017 Tax Cuts & Jobs Act. See More

Big‘I’Releases2023 MarketShareReport

The independent agency channel is holding ground and making slow, steady gains in lines of business penetration, including homeowners, according to the Big “I" 2023 Market Share Report. See More

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VIAA EDUCATION Any time. Any where. Get it done. viaa.org/Education

MANAGING CASHINA RISINGRATE ENVIRONMENT

Cashmanagementinvolvesmonitoringand controllingcashinflowsandoutflows,investingidle fundsandmaintainingexpenses.It'sanessential aspectofrunninganysuccessfulbusinessand independentinsuranceagenciesarenoexception. Regardlessoftheirsize,focusorlocation,agencies needtomanagecasheffectively

Withinterestratescurrentlyontherise,independent insuranceagenciesneedtobeespeciallymindfulof theircashmanagementpracticestomaximizethe valueoftheircash,ensuretheyhavethefundsthey needwhentheyneedthem,reducetheriskof financialdifficulties,

Effectivecashmanagementisessentialforall strategies,fromexpandinganexistingagency, startinganewone,orsimplymaintainingfinancial stability.Forexample,ifanagencyislookingto expand,itneedstohavethecashflowtosupport newhires,marketingcampaignsandothergrowth initiatives.Ontheotherhand,ifanagencyisfocused onmaintainingfinancialstability,it needstobe

G
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M A N A
I N G C A S H

ManagingCashinaRisingRateEnvironment

mindfulofitsexpensesandcashflowtoavoid financialdifficulties.

Automatedcashmanagementsweep productscanbeavaluabletoolfor independentinsuranceagencies.These productssimplifythecashmanagement process,reducingthetimeandeffort spent onmanualmoneymanagementbyhelping monitorandcontrolcashinflowsand outflows,investidlefunds,andminimize expenses—allowingagenciestomaximizethe valueoftheircash.

Cashmanagementsweepproductsallow agenciestoautomaticallysweepexcess cash outoftheiroperatingaccountsintohighyieldingaccounts,helpingthemtoearnmore ontheirfunds.Agenciesdonothaveto monitorinterestratesortransferfunds manually,whichfreesuptimeandresources forothertasks.

Theyalsoallowagenciestooptimizetheir commissionflow—anothercrucialaspect of aninsuranceagency'sfinancialhealth.By maximizingcommissionflow,agenciescan earnhigherreturnsonidlefunds,improve theiroverallcashflowandensurethey have enoughcashonhandtocoverexpensesand investingrowthopportunities.

Itisimportanttorememberthatthe insuranceindustryisconsistentlyevolving, anditisessentialforindependentinsurance agenciestobeproactiveandresponsive to changesinthemarket.Nowmaybethe perfecttimetoreevaluateyouragency's bankingrelationshipandtakeadvantageof risingrates.

Bytakingadvantageofarisingrate environmentandoptimizingcash managementstrategieswithacash

managementsweepproduct,agencies canbuildfinancialstrength and positionthemselves forsuccessin the longterm.

directorofcashmanagementservices ofInsurBanc, adivisionof Connecticut CommunityBankN.A.Shemanages anddevelopseffective cash managementsolutionsfor independentinsuranceagencies across thecountry.

Reprinted withpermission fromthe Independent Agent Magazine, copyright Independent Insurance Agentsof America.

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Agency&Carrier NEWS

JENNIFER ZANDY NAMED 2023 VERMONT OUTSTANDING CUSTOMER SUPPORT REPRESENTATIVE OF THE YEAR

UnionMutualannouncedthatTheNationalAllianceforInsuranceEducation andResearchhasnamedJennZandyofUnionMutualasVermont OutstandingCSRoftheYear. Asastatequalifier,Zandynowcompetesatthe Nationallevel,whichwillannounceawinnerlaterthisyear.

TheCSRoftheYearawardrecognizesthe contributionsandcommitmentofthosewhoserve clientswithintheinsuranceindustry. Inthe submissionessay,Jennnotesthathermother instilledinherearlyonthat‘everyonehasthesame hopes,dreams,andfearsasyoudo’andthis reminderhasaidedherwellinnavigatingdifficult conversationswithinherrole Jennhasbeenwith UnionMutualforover25years,primarilywithinthe CustomerSupport’sbillingteam.

VERMONT MUTUAL PROVIDES SUPPORT TO FLOOD IMPACTED COMMUNITIES

VermontMutualInsurancehaswitnessedthecatastrophicimpacttothehomes andbusinessesintheirownneighborhood.Toassistthoseinneed,Vermont Mutualiscommittingsignificantfinancialassistance,and,similartotheir $1M COVIDreliefcontribution,theyaredirectingthefundstocommunitypartners whoarebestequippedtogetreliefintothehandsofthosewhoneeditmost. Readmore.

THE HANOVER RECOGNIZED AS A BEST PLACE TO WORK BY

U.S. NEWS & WORLD REPORT, DISABILITY

EQUALITY INDEX

TheHanoverInsuranceGroup,Inc.recentlywasnamedtoU.S.News&World Report'slistof2023-2024BestCompaniestoWorkForandwasalsorecognizedby theDisabilityEqualityIndexasa2023BestPlacestoWorkforPeoplewith Disabilities.

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CONCORD GROUP INSURANCE'S CHRIS HYNES TO RECEIVE RISE PROFESSIONAL 35 UNDER 35 AWARD

ChrisHynes,SHRM-CP,Human ResourcesLeaderforTheConcord Group,hasbeenselectedasaRISE 35Under35awardwinner.The annualRISEAward,hostedbyRISE Professionals,recognizestoprising talentwithintheInsuranceIndustry nationwidewhoaremakingan impactintheircompany, community,andtheIndustryasa whole.

VERMONT MUTUAL PRESIDENT & CEO, DAN BRIDGE, NAMED INSURANCE PROFESSIONAL OF THE YEAR

TheInsuranceLibraryAssociation ofBostonrecentlynamedVermont MutualInsuranceGroup®President &CEO,DanielC.Bridge,astheir InsuranceProfessionaloftheYear for2023.

TheAwardispresentedeachyear toanindividualwhoexemplifies thequalitiesofaninsurance professionalwithastrong understandingandrespectforand fromtheinsuranceindustry.

VERMONT MUTUAL RECOGNIZED BY WARD GROUP AS A TOP 50 INSURER FOR 15TH CONSECUTIVE YEAR

VermontMutualInsuranceGroup®hasagainbeenrecognizedasoneofthe Top50PropertyandCasualtyinsurersintheU.S.byWardGroup,anAon company,andoneoftheindustry’smostrespectedbenchmarking organizations.Thisisthe15thconsecutiveyearthattheVermont-based insurerhasbeendesignatedasaWardTop50P&Cinsurer.

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MEMIC EXPANDS REACH WITH UNDERWRITING HIRES

TheMEMICGroupcontinuesaddingexperiencedinsuranceindustrytalenttoexpand itsEasternRegionbookofbusinesswiththerecenthiresofunderwritersJulieM. SmithintheSoutheastandJeremyCardinNewEngland.

ProductionUnderwriterJeremyCardjoined MEMICinApril,bringingmorethanadecade ofexperiencewithhimfromtheagency side.

SeniorProductionUnderwriterJulieM.Smith joinedMEMICinMay.Herbackgroundand experienceininsuranceincludesmulti-line commercialunderwritingfornationaland regionalcarriers,aswellasagencysales andmarketingmanagement.

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VIAA ANNUAL GOLF TOURNAMENT JULY 24 See all the Photos of this great event!

TRUSTED CHOICE® LAUNCHES HARDMARKET TOOLKIT

Afteranextendedperiodoflowpremiumsand abundantcapacity,wearenowinthemidstofa hardinsurancemarket.Althoughinsurance marketsarecyclical,everyhardorsoftmarketis different.Duringthesechallengingtimes,agents canprovetheirvaluetotheirclientsandimprove retentionthroughconsistentandthorough customercommunication,whichincludestalking tocustomersaboutwhytheirpremiumsarerising andwhattheyshouldexpectatrenewaltime.

TrustedChoice®isproudtoannouncetherelease ofitsHardMarketToolkit.ThetoolkitassistsBig“I" memberagenciesinnavigatingthecurrent insurancemarketandhelpsthemeffectively communicatewiththeirclientsaboutits complexities.

TheHardMarketToolkitofferspracticalsolutions andexpertadviceforindependentinsurance agenciestoconveytoclientsthereasonsbehind risingpremiumsandwhattheyshouldexpectat renewaltime,aswellasguidanceonexplaining

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coveragechangesorrestrictionscausedby thehardmarket.Agentscanstreamlinea plan,communicateeffectively,handletough questions,andultimatelyretainclients ina hardmarket.

"Inthesemarketconditions,independent agents'rolesastrustedadvisorstotheir clientsismoreimportantthanever,andwe understandthechallengesthatagencies faceastheyservetheircommunitiesunder thesedifficultcircumstances,"saysCharles Symington,Big“I"executivevicepresident. "OurcommitmentistosupportBig'I' memberseverystepoftheway.TheHard MarketToolkitequipsTrustedChoiceagents withtheresourcestomeettheirclients' evolvingneeds."

ThedigitalHardMarketToolkitincludes a rangeoffeaturestosupportclient communications:

Anoverviewofmarketconditions. Expertadviceforsurvivingahardmarket fromsavvyindependentagents. Talkingpointsforclients. Clientemailtemplates.

Frequentlyaskedquestionsfrom clients. Ageneralcommunicationtimeline to keepyouragencyontrack.

Remarketingstandardsdocument asa fill-intemplate.

Personallinesandcommerciallines renewalforms.

Creativecontentsuchascustomizable videosandgraphicstohelpyouragency standout.

Thetoolkitwascuratedwithinputfroma teamofveteranBig“I"memberagents with anarrayofexperiencesinhardmarkets.

viaa org | 28 GREEN MOUNTAIN AGENT| SUMMER 2023 Learn more about Trusted Choice's Hard Market Toolkit TrustedChoice®LaunchesHardMarketToolkit
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ERRORS&OMISSIONS

SAMEOLDCLAIM:3WAYSAGENTSARE GETTINGSTUCKINAUTOERRORS& OMISSIONS

It'softensaidthateverycloudhasasilverliningInthecaseoftheadmittedlyverydark cloudthatwasCOVID-19,onesuchpositiveintheinsuranceworldwasthedropinauto insuranceclaimsandpremiums.

Fromanerrors&omissionsstandpoint,SwissResawthenumberofautoE&Oclaims dropfromaround190between2017and2019tojust118in2020.Thiswasnosurprise. Driverswithnoplacetogotranslatedneatlyintolessdriving,fewerautoaccidents, fewerclaimsand,therefore,feweragentmistakesbeingbroughttolight.

However,timeshavechangedagain.In2021,theGreatReopeningbroughtwithita returnoftheautoE&Oclaim.SwissRereceived183ofthemand2022isontrackto surpasslastyear.

Businessisback.Yourcustomershavelefttheirgaragesandareaskingyoutorenew existingpolicies,replaceoldvehiclesoraddanewones.Manyagentsaretakingon newpersonalandbusinessautoclients.Asaresult,we’reseeingthesameoldclaims.

HerearethreecommonscenariosthatarecontributingtothereemergenceofautorelatedE&Oclaims:

1. Incorrectvalueslistedafteravehiclechange.Yourcustomerwantstoreplacethe tired,oldvehiclethatiscurrentlyontheirautopolicywithanewpurchase.Youfillout achangerequestinthesystemofanationalinsurancecarrierspecifying“vehicle changeonly,”sothatthecoveragesremainthesame.Theformgoesdirectlytothe carrierrepwhoprocessesyourrequestandforwardsthenewdeclarationspageto thecustomerandyouroffice.Youreceiveandfileanddocumentit.Youhandledthe changepersonally,soyouknowitwasdonecorrectly.

Amonthlater,thecustomertotalshisnewride.Curiously,thenewdeclarationspage shows“StatedValue,”whichyouhadnotnoticedbefore,mostlikelybecauseyou

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didn’treviewitproperly Infact,you neverlook.That’swhyyouweren’t awarethatthisnationalcarrierhada systemglitchwhereitdoesnotalways recognizenewvehicleidentification numbers(VIN)andconvertsthepolicy tostatedvalue.Whenyoureviewother files,youlaterfindoutthatitisa recurringproblemandhasimplications forvehiclesthatmayappreciatein value,suchasluxurycarsandhigh-end electricvehicles.

Commercialvehiclelistedona personalpolicy.Thecustomerasksto addavehicletothepolicy.Youenter themake,modelandVINinformation intothecarrier’ssystem.Thesystem flashesgreenandacceptsthe information.Hadtherebeenapotential problem,thesystemwouldhave flashedredandyourrequestwould insteadgotounderwritingforapproval. Thecarrierdoesnotrequireyoutoview thevehicle,soyoudonotaskabout modificationsorchangestothevehicle Instead,youbindthecoverageand moveon

Amonthlater,yourcustomer’svehicleis totaledThecarrierdeniescoverage, claimingthevehicleisacommercialgradetruckonapersonalautopolicy. Youseepicturesofthewreckedvehicle andseethatsignificantmodifications weremade.Itnowappearstobea commercialtruckusedinconstruction andsnowremoval.

Lookingupfromthephototoyour customer,youcomplainthatthe insureddidn’ttellyouthevehiclehad beenmodified.Hisplaintiveresponse: “Youdidn’task.”

Policycanceledforlast-minute payments.Aninsuredmakesalate premiumpaymentthroughtheagent’s officetoavoidacancellation,whichis notthefirsttimethishashappened withthiscustomer.Twodayslater,you seeanoticeofcancellationcome throughonthecustomer’saccount. Youknowthepaymentwasmadeat theofficeandsweptfromtheagency systembythecarrier,soyouassume thecancellationwillbereversed.No actionisneeded,andnoneistaken.

Threemonthslaterthecustomerhas anaccident,butthecarrierdenies coveragebecausethepolicywas canceledfornon-paymentYou receivedthenoticeofcancelationbut didnotcheckthesystemtoverifythe paymenthadbeencollectedbythe carrier.Further,noonesetareminder tofollowuptocheckthatthepayment wascredited,andthepolicystatuswas stillactive.

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2. 3.

Insomecases,thelion’sshareoftheblame forthesethreescenariosbelongstoyour customerforfailingtoreadanyinstructions orinformationsenttothem.Sadly,gettinga jurytobelieveitismuchmoredifficult.You alwayshavetheoptionofgoingtotrial, takingthestandandtestifyingunderoath: “Yes,asalicensedprofessional,Imayhave madeasmallmistake butmycustomer shouldhavecaughtit!”

That’stheworstdefenseeverHonestly,if yousatonajuryoftheplaintiff’speers, wouldyoubuythatargument?

Ouradvice:SkipthetrialBetteryet,skipthe E&OclaimaltogetherToavoidangering yourcustomer,gettingsuedandfacingthe financialramificationsofanE&Oclaim,take afewminutestoasktherightquestions; reviewthereturnedquote,changeformor reviseddeclarations;andifyou’veinserted yourselfinthepaymentprocess,whichis notrecommended,confirmthatpayments madethroughyourofficearereceivedand creditedtoanactivepolicy.

Wegetit,timeismoney.Butanyjudgewill tellyou:Evenanordertakerneedstotake enoughtimetogettheorderright.

MadlynTombsisanassistantvicepresident,claims specialistwithSwissReCorporateSolutionsandworksout oftheofficeinKansasCity,Missouri.Insuranceproducts underwrittenbySwissReCorporateSolutionsAmerica InsuranceCorporation,KansasCity,Missouri,amemberof SwissReCorporateSolutions

Thisarticleisintendedtobeusedforgeneralinformationalpurposes onlyandisnottoberelieduponorusedforanyparticularpurpose SwissReshallnotbeheldresponsibleinanywayfor,andspecifically disclaimsanyliabilityarisingoutoforinanywayconnectedto, relianceonoruseofanyoftheinformationcontainedorreferenced inthisarticleTheinformationcontainedorreferencedinthisarticle isnotintendedtoconstituteandshouldnotbeconsideredlegal, accountingorprofessionaladvice,norshallitserveasasubstitute fortherecipientobtainingsuchadviceTheviewsexpressedinthis articledonotnecessarilyrepresenttheviewsoftheSwissReGroup (“SwissRe”)and/oritssubsidiariesand/ormanagementand/or shareholders

Copyright©2023,BigIAdvantage®,IncAllrightsreservedNopartof thismaterialmaybeusedorreproducedinanymannerwithoutthe priorwrittenpermissionfromBigIAdvantage®Forpermissionor furtherinformation,contactAgencyE&ORiskManager,127South PeytonStreet,Alexandria,VA22314oremailatinfo@iiabanet

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