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GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | November 2020

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 ________________ November 2020

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

06 Young Agents Meeting Announcement 11 3 Steps to Building a CustomerDriven Data Presence

VIAA Officers

16 On the Hill

President Daniel J. Rodliff, CIC, CPIA, LUTCF

21 E&O Corner

Vice President Michael Barrett

24 Celebrating Together - Apart

Secretary/Treasurer Jessica M. Fleury, ACSR

26 EVOLVE 2020 Wrap Up

National Director Ronald Bixby

33 Commentary

Directors

37 Agency & Company News

Chip Ams Ian Sunderland Alan Kinney

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LETTER FROM THE PRESIDENT ______________________________ November 2020 Dwight D. Eisenhower stated "The future of this republic is in the hands of the American voter." Never has this statement held more meaning. What happens next for us is in our hands, so I urge you to vote. Encourage your family members to vote. Encourage your employees to vote. We have arrived at that time at any Presidential campaign where we grow weary of the negative ads and the rampant rumors coming at us from all angles. It’s hard to know what is real and what isn’t, but don’t let that stop you from looking at the issues that are important to you, your family and your business and vote for the candidate that you think will take us in the right direction. Now on to association business! Kudos to everyone who helped develop and deliver Evolve20 that took place last month. It was an outstanding program put together under tough circumstances. I continue to be impressed with how strong our membership is and it was good to see you all – even though it was in a virtual setting. We were pleased to host over 180 insurance professionals to two days of outstanding programs.

Dan Rodliff VIAA President Congratulations to our prize-winners and our photo contest winners! See the listing of winners later in the issue. As always, the association continues to be focused on you. Wishing you, your staff and your families all the best for a Happy Thanksgiving! Dan

As we prepare for the season of thanks, I would like to thank those that pulled together to launch Evolve20. I also want to give a sincere thanks to our sponsors and Partners who helped support this new ‘virtual’ format. We could not have done it without your commitment, sponsorship and continued support. Again, thank you, thank you, thank you!

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Next Meeting of the VIAA Young Agents Committee Thursday, November 19, 2020 Watch Your Email for an Invitation!

GUEST SPEAKER: APRIL SIMPKINS Human Resource Professional

Learn more about VIAA's Young Agents Committee 6

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3 Steps to Build a CustomerDriven Digital Presence

AGENCY MARKETING

By AnneMarie McPherson Safeco’s Tyler Asher, president of independent agent distribution, and Sam Affolter, head of agent research and innovation, outlined key ways for independent agents to optimize their digital presence. With the coronavirus pandemic catalyzing an already digital environment, “digital is no longer a ‘nice to have’,” Asher pointed out, as he and Affolter unpacked the question on many agents’ and industry experts’ minds: “How do we continue to evolve and adapt to ensure that the independent agency channel continues to thrive into the future?” It’s clear to Asher that the future includes independent agents. “We fundamentally believe that independent agents will continue to win in the marketplace,” he said. “The unique combination of ease of doing business, choice in terms of breadth of offering and custom-tailored advice is a winning combination.” Asher highlighted independent agents’ ongoing involvement in their communities during the coronavirus pandemic. “Now more than ever, those values, those enduring qualities, are amplified in the time of crisis: independent agents putting their people first, putting their customers first and finding ways to have a real impact.” As independent agents continue to offer the customization and relationship emphasis that sets them apart, digital acceleration means those characteristics will continue to evolve. Much of that evolution is driven by a “seismic shift in customer digital expectation,” Affolter

said. Citing a 2019 Salesforce report, he explained that “75% of customers expect companies to use new technology to create better experiences for them in the future.” Moreover, as independent agents strive to serve their clients, “84% of customers say the experience a company provides is as important as the products and services that those companies offer,” Affolter said. “This number is actually four points higher than it was only a year before.” During the coronavirus pandemic, the digital experience has become an integral part of business. “The share of people buying online nearly doubled in less than half a year as a result of COVID-19,” Affolter said, referencing data from Bank of America, U.S. Department of Commerce and ShawSpring Research. And as independent agencies have adapted to 11

3 Steps to Build a Customer-Driven Digital Presence Continued

remote work and communications, “this experience will undoubtedly force an acceleration of the digital learning curve and you need to move with it.” When building a digital presence, Affolter highlighted three key areas, all focusing on the customer experience: 1) Consumer Awareness. “How do I get people to even know about my agency and the value we provide to our customers?” Affolter asked. He recommends three main areas to explore: a robust web presence, search engine optimization (SEO) and social media marketing. “Nearly 50% of agents we surveyed update their websites less than once a year,” he says. “Well over half don’t use SEO on their web presence.”

determine a change’s effect on success or failure. He also recommended avoiding reinventing the wheel by utilizing a vendor or another company as an inexpensive and efficient way to maintain progress. AnneMarie McPherson is the news editor of IA Magazine, a publication of the Independent Insurance Agents & Brokers of America.

2) Lead Conversion. “How do I get the people that are now for the first time potentially aware that my business exists to become my customer?” Affolter said. “It is critical to show your value and then compel those prospects that are on your site to connect with a relevant and timely call to action. This call to action should be embedded in the digital experience.” He recommended agencies “look to incorporate tools in your website that enable consumers to generate a quote or even purchase directly there.” 3) Customer Relationships. “How do I maintain that relationship with my new customers to ensure that they continue to see the value that my agency is to them?” Affolter said, who recommends incorporating a digital welcome pack for customers, having an online chat service, and even preparing quotes for customers over video and walking them through the website. Especially for agencies looking to catch up with the rapid rate of digitalization, implementing these recommendations can be daunting. Affolter recommended starting with small steps and making highly focused, simple tweaks to 12

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Xxxxx Continued Step 4 â€“ Focus on retention and growth Determine the areas of opportunity and over communicate with your customers. This is not the time to be quiet, so reach out and let your customers know you are there for them. In times of uncertainty there is great comfort in hearing from our advisors. Be proactive and reach out to your customers to ask them how they are and communicate how their current carrier is responding to this pandemic. It is estimated that 8 out of 10 insureds will shop their insurance during this time. Now more than ever, people want to support their local community and local businesses. Remind them that you are there for them, are part of their community and that you care. Using data to assess the risk in your agency and plan for your future has never been more important. The agencies that have a plan will be able to adjust and make the necessary decisions to navigate these unprecedented times. We have the tools and resources available to provide you with the resources you need to build a strong plan for your agency. Our business consulting team can provide you with the support and tools you need to help you build your agency's cashflow projection. In addition, we work with several state association partners across the country to bring as many agents as possible the financial and operational benchmarks that are relevant in your marketplace and actionable in your agency. We are all here to help you utilize these insights, take action and plan for your agency's future. For more information about our state partners and footprint contact Carey Wallace at (614) 552-3063 or visit our website at www.intellagents.io

ON THE HILL: Big ‘I’ Previews 2020 Presidential Election and Counts Down the 2020 Congressional Election

Presidential Preview

Congressional Count Down

Charles Symington, Big “I" senior vice president of external, industry, and government affairs, and Nathan Riedel, Big “I" vice president of political affairs break down the 2020 presidential election.

Charles Symington, Big “I" senior vice president of external, industry, and government affairs, and Nathan Riedel, Big “I" vice president of political affairs preview the 2020 congressional election.

Find out which states are in play, key factors that will determine the winner, and what they are watching for on election night. Will this election give four more years to President Trump or usher in a new administration? Are polling numbers accurate? Will the election be decided on Nov. 3? Watch the Video

Is control of the U.S. House of Representatives and U.S. Senate in play? What will the House look like following Nov. 3? Which senators are in danger of being ousted from office and what will those elections do to change the balance of power? Watch the Video

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C E O & R O N ER

When Good Things Happen To Good Agents By Richard F. Lund, J.D., Vice President, Senior Underwriter,Swiss Re

Let me tell you a little story. Its Monday, December 21, and an agency owner, let's call him Bob, is trying to get things wrapped up before the holidays so he can be ready for a nice vacation and he'll be back after the first of the year. At about 3:00 pm his aministrative assistant tells them he has a call from someone named Frank. He asks who Frank is and she says she doesn't know. Thinking it might be one of his old college buddies, he takes the call. Frank says hi, he's an attorney and he wants to talk to Bob about Kenny, a former insurance customer of Bob's. Frank tells him that they have a trial starting on December 28 and he wants to discuss Kenny with him. Immediately, Bob' heart sinks and things start to race through his mind: Will his vacation be ruined? But one thing pops into his mind that he remembers from a Swiss Re loss control seminar he went to a few months earlier. The instructor said "If an attorney calls you and wants to talk, remember, unless he's YOUR attorney, he's not your friend. And you DON'T

have to talk to him. Instead, ask him what he wants to talk about and don't volunteer any information. Instead, politely tell him you can't talk to him and IMMEDIATELY call the claims department at Swiss Re or your E&O carrier." Bob knows that Kenny has always been a problem customer (late premium payments, unreasonable requests, failing to report changes, etc.). What does this lawyer want? Why is he calling ME???? So Bob told Frank the lawyer, "I'm sorry, but I can't talk to you about Kenny" and hangs up. He immediately calls his state E&O administrator who gives him the number for the Swiss Re claims department. Bob calls and speaks with one of Swiss Re's professional claims staff, Jim, who goes over everything with Bob, and Jim tells him that if anyone calls him or if he receives any letters or documents, including a subpoena, to immediately call him. Sure enough, the next morning the attorney delivers a subpoena for him to testify at his deposition on Thursday, 21

When Good Things Happen To Good Agents Continued December 24. Merry Christmas!!! Bob immediately calls Jim the claims handler who tells him to fax the subpoena to him right then, which Bob does. Suffice it to say, in the next two days, an attorney has been retained to represent Bob, the attorney contacts the attorney who issued the subpoena, they talk, the subpoena is withdrawn and Bob's vacation is saved! The key to this is not that Bob's vacation was saved, (although that's nice too,) but more importantly he remembered what he'd been taught at a Swiss Re/IIABA endorsed loss control seminar: that any time he is contacted by an anyone who wants to talk to him about one of his customers, unless it is his customer, he should assume that they are not wanting to help him and he should contact his E&O claims department. But be careful, if there has been a problem with your customer's policy or a claim, and you receive a call from your customer, a representative from the insurance company or even someone from your state department of insurance, then you may want to call your E&O carrier's claims staff to get some advice as well. Here's a few other examples of what happens when agents do the right thing:

department and the claims handler calls the carrier and asks specifically what information they want. They say they don't know of anything in particular, they just want to see the agent's file to see if they find anything in his notes. The claims handler tells them that if they can tell her anything specifically, they'll see what they locate, but unless they have a specific request, they can't provide anything. They never hear back from the carrier. Agent receives a call from an upset former customer who has a claim that was denied by the carrier because the policy expired due to non-payment of the premium. The customer tells the agent their going to sue them and hangs up. The agent immediately contacts his E&O claims department, they discuss what happened and the claims handler asks if the agent has any documentation about the cancellation. The agent says yes, he has a copy of the letter from the carrier notifying the customer of the cancellation. The claims handler helps the agent draft a letter to the customer and provides a copy of the cancellation notice. The agent sends the letter and the notice to the customer and the agent never hears from the customer again.

Agent receives a subpoena for his customer's records. He contacts his E&O claims department who contacts the attorney who issued the subpoena, asks what is they wanted, and determines they only want a copy of the customer's policy. The claims handler obtains that from the agent and forwards it to the attorney. Agent receives a call from the carrier for a policy of a former customer of the agent and they want to see his file. Agent asks why and they tell him there is a question about the information that was contained in the application. They tell the agent they just want to help him. The agent hangs up and immediately contacts his E&O claims 22

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When Good Things Happen To Good Agents Continued Agent receives a notice of complaint from the state department of insurance and contacts the Swiss Re claims department. The claims handler reviews the complaint, discusses it with the agent, contacts the DOI investigator and helps the agent prepare a formal response refuting the allegations in the complaint. In some limited instances, an attorney is retained to help the agent respond to the complaint. In most cases, the complaints are resolved in the agent's favor without further action. But if the complainant pursues it further including filing a lawsuit, the groundwork to defend the agent has already been laid. In each one of these cases, as soon as the agent was aware that there might be a problem that could lead to a claim the agent immediately contacted their E&O claims department. The claims department then gathered information from the agent and took steps to avert a claim. In many instances, by taking immediate action with the claims department before an actual lawsuit arises, the claim can be averted. So you see, not all E&O claim situations end up bad. Many times, good things happen to good agents. 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 (â€œSwiss Reâ€?) and/or its subsidiaries and/or management and/or shareholders. 23

Celebrating Together—Apart

MANAGING PEOPLE

By Sharon Emek, Ph.D., CIC

With Halloween around the corner, Thanksgiving just a month away and winter celebrations not far behind, we are officially approaching the holiday season. For me, just like for many Americans, that usually means family gatherings, parties with friends, home-cooked meals shared among loved ones, giggling grandchildren, clinking glasses, yummy treats, twinkling lights and lots of laughter. But 2020 isn’t like other years. As Covid continues to upend our lives, and cases tick up across the country, our usual group celebrations are off the table this year. So we are left to wonder: How can we stay safe yet connected during the upcoming holiday season? As seasoned work-from-home experts, we at WAHVE know there are many ways to build bonds and engage in fulfilling social activities from a distance. It’s not just our business—it’s our passion! A few of our tried-and-true strategies for bringing together remote work teams can be applied to our personal lives, as well.

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For example: Virtual toasts. Get out your glasses and give them a digital “clink” with your friends and loved ones over Zoom, Skype or any other video-conferencing service. Just because we can’t physically be in the same place doesn’t mean we can’t see each other’s faces, catch up and enjoy a well deserved cocktail together. To bring the group together more, consider building in a shared experience, whether that’s a theme for the party, a specialty food or drink (having everyone bake their own chocolate chip cookies or mix their own margaritas, for example), or instituting a party game or ice breakers (“share your favorite winter activity”). Send care packages. Another fun way to offer a shared experience among relatives or friends is to send everyone a small gift that each person can open onscreen, during a group video call. This builds the bond and keeps some of the tradition of the holidays going.

Celebrating Together—Apart continued

Don’t forget the holiday cards. If you usually send out family updates during the holidays, whether that’s in the form of a card or newsletter, it will be extra appreciated this year because people are thirsty for real, human connections. Consider personalizing them a bit more this year, perhaps by handwriting them or adding in customized notes for each recipient. Schedule group activities. To build in more connection during this potentially isolating time, get creative. Offer some structured activities for people to participate in, such as virtual exercise, cooking or painting classes. You might be surprised at who signs up and what you can learn from each other. Go outside. It’s possible for small groups of family members to celebrate outdoors, socially distanced and with masks. Enjoy the season’s crisp weather by investing in warm blankets and outdoor heaters, then place chairs at least 6 feet apart and sip cups of hot cocoa, apple cider, or hot toddies together. The holidays are usually filled with precious moments of togetherness. With a little creativity and positive spirit, we can ensure this year’s festive season is just as meaningful and connected as in the past. We are in this together.

PRIZE WINNERS Mouth Specialty Food Boxes From Vermont Mutual Jessica Fleury, The Richards Group Country Chocolate Gift Basket From Vermont Mutual Andrea Ryan, Paige & Campbell, Inc. Made in Vermont Cheese Box From MAPFRE Joshua MacDuff, Kinney Pike Insurance, Inc. Provisionary Artisan Market - Wicked Sweet Box From MEMIC Annette Hannah, Hannah Insurance Agency, Inc.

$75 Visa Gift Card From Portland Glass Stephanie Staib, The Richard's Group & Sara Berry, Hickok & Boardman Yeti Cooler From Union Mutual Aislyn Allen, Jamieson Insurance Agency, Inc. Apple Airpods From Acadia Insurance Marcia Towne, People's United Insurance Agency FitBit Inspire From RLI Lisa Hall, Durkee Insurance

Ben & Jerry's Gift Pack From Progressive Robin Farone, Hickok & Boardman

Apple Watch Series 3 From Portland Glass Audrey Macie, Noyle Johnson Group

Vermont Coffee Company Sampler From XS Brokers Lorelei Lewis, Conley Country Real Estate & Insurance

$150 Burton Gift Card From Hanover Insurance Group Sharon MacEachern, The Richard's Group

$75 Visa Gift Card From Union Mutual Melissa Kavanagh, Hickok & Boardman & Audrey Macie, Noyle Johnson Group

$100 Vermont State Park Pass From Patriot Insurance Company Derek Paul, SERVPRO of Windham & Windsor Counties

$75 Visa Gift Card From MMG Insurance Liza Cheney, Isham-Berwick Agency & Alan Kinney. Kinney Insurance

VT Brownie of the Month Club From Foremost Insurance Group Paula Clark, Vermont Mutual Insurance Group

$75 Visa Gift Card From Co-Op Insurance Companies Dot Clark, the Richards Group & Kim Panton, Barrett Insurance Agency

Welcome Home Vermont Box From Liberty Mutual Insurance | Safeco Insurance Julie Slayton, Noyle Johnson Group

$75 Visa Gift Card From Concord Group Insurance Carrie Eaton, NEEE & Shawna Lovelette, Hull Insurance Agency

Yet Tumbler From Mackinaw Underwriters Erica Heibler, Durkee Insurance Agency

Marshmallow of the Month Club From Ohio Mutual Betsy Dutil, Noyle Johnson Group Dunkin Gift Card From AmTrust Bobbi-Jo Maxham, New England Exccess Exchange Dunkin Gift Card From Berkshire Hathaway Guard MaryAnn Munger, Durkee Insurance Dunkin Gift Card From Green Mountain Agency Mike Barrett, Barrett Insurance Agency, Inc. Spa Box From Acuity Audrey Macie, Noyle Johnson Group Yeti Tumblers From Main Street America Stacey Coburn, Neshobe Falls Insurance Agency, LLC Jean Logan, Wehse & Kinney Insurance Yet Tumbler From New Englad Excess Exchange Bonnie Blodgett, Bushway Agency Yeti Tumbler From S&H Underwriters Keith Greenwood, NFP P&C Inc.

PHOTO CONTEST WINNERS k o o C a l u a P

Julie Slayton

Audrie Macie

Couldnâ€™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. 33

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. 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.

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.

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 34

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COMPANY & AGENCY NEWS 37

Lisa L. Keysar elected as first female President & CEO of Union Mutual Insurance Company The Board of Directors of Union Mutual Insurance Company voted unanimously last week to elect Lisa L. Keysar to the role of President and CEO. Keysar is the fifteenth person to assume the role and the first woman to head the Company since its founding in 1874. Keysar succeeds Michael Nobles who passed away this summer. Keysar joined Union Mutual in 1995 after beginning her career in the industry at National Life Insurance Company. She has held numerous roles in her 25 year tenure at Union Mutual, most recently as Executive Vice President. Her time at the Company includes leadership roles in the Underwriting, Claims, Marketing, and Customer Support Departments and she also served as the Corporate Secretary for Union Mutual Insurance Company and Community Mutual Insurance Company. In addition, Keysar has a longstanding family connection with the Company as her father, Jack McLaughlin, was President & CEO of Union Mutual from 1993 to 2001.

Utica Mutual Insurance Company and Its Affiliates Earn Credit Rating Upgrade from AM Best Utica Mutual Insurance Company and its intercompany pool participants and reinsured affiliates, collectively referred to as Utica National Insurance Group, have earned an AM Best Financial Strength Rating (FSR) upgrade to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a-”. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. Rating Criteria 1.The ratings reflect Utica’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. 2.The rating upgrades reflect Utica’s improved underwriting and operating results in recent years. These results were driven primarily by favorable loss experience and improved risk selection in its leading lines of business, commercial liability and workers’ compensation, as well as the ultimate management of asbestos & environmental exposure. 3.Utica’s ratings also recognize the group’s solid risk-adjusted capitalization, strong risk management culture, and local market presence and expertise in target markets. Further, the ratings consider management’s continuing efforts to achieve rate adequacy and operational efficiencies, and to maintain stability in reserve development.