GMA April 2018 by VIAA

GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | APRIL 2018

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.

Seasons May Change, But Our Commitment to the Independent Agent Channel Remains the Same...

ermont Mutual is proud to have served Vermont and the New England market through the longstanding partnership with our Independent Agents. It remains our privilege to work with the finest Independent Agencies in the industry … the only place you can buy a Vermont Mutual policy.

89 State Street, P.O. Box 188, Montpelier, VT 05601 | 800.451.5000 | VermontMutual.com 02

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Vermont Mutual is proud to sponsor the Vermont Insurance Agents Association’s new Education Center in Williston, Vermont.

Green Mountain Agent is a publication of

CONTENT APRIL 2018

04 Letter from the President

600 Blair Park Road Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org VIAA Officers President Erin Odell Vice President Paul Plunkett Secretary/Treasurer Alan Kinney National Director Ron Bixby

08 Newsflash

10 DFR Inaugural Industry Roundtable

12 Feature: Knowledge

18 Feature: Sales & Marketing

20 E&O Corner

Directors

Chip Ams

Insurance Commentary

Daniel Rodliff Michael Barrett

Staff

29 Company News

Executive Director Mary Eversole meversole@viaa.org

GMA Publication Design LONDONmiddlebury londonmiddlebury.com

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LETTER FROM THE PRESIDENT APRIL 2018

With all the recent Nor’easters I was beginning to doubt that we would see spring! But alas we made it through another winter and helped our clients navigate through claims of broken pipes and the inevitable fender bender. VIAA continues working on legislative issues that impact our members and their clients. Our top priority is to oppose S. 197. While we all enjoy the beauty of our state, S. 197, would impose “strict liability” for polluters, which by definition is liability that does not depend on actual negligence or intent to harm. It narrowly passed the Senate last month. We believe that S. 197 would create an insurance availability/ affordability crisis. In other words, insurance is likely to become unavailable for businesses or where available will be extremely expensive. The bill is now in the House Judiciary Committee and we will call on our members to reach out to members of this committee Erin Odell, CIC VIAA President

In a couple of weeks, a group from VIAA will travel to Washington, D.C. to attend the Big “I” Legislative Conference and have the opportunity to discuss legislative issues with our congressional delegation that impact our livelihood.

and oppose the legislation. We are offering a free CE Class to our members this month as well. Yes, free CE! VIAA is offering a new class on a timely and important topic—Insuring the Active Assailant/Shooter Exposure on Tuesday, April 24 at 9 am, in Williston. Many experts have said that Active Assailant/Shooter coverage is the “New Cyber.” There is a common misconception among insureds that their general liability policy will cover such incidents. Many gray areas exist. The insurance market is responding to this risk with active shooter insurance programs. We hope that you will take advantage of this opportunity and attend. Enjoy springtime!

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NEWSFLASH: VERMONT EMPLOYERS TO SAVE $10M Scott Administration Decreases Workers’ Compensation Insurance Rates for Second Consecutive Year

Montpelier, Vt. – Governor Phil Scott today announced that workers’ compensation insurance rates will continue to improve for a second year in a row. It will cost less for most Vermont employers when the new rates approved by the Department of Financial Regulation (DFR) become effective on April 1. “I am pleased to announce this substantial decrease in workers’ compensation rates, which will directly lower the cost of doing business in Vermont,” said Scott. “This is good news for Vermont employers and the overall Vermont job market. These considerable savings will contribute to making Vermont a more affordable place to do business and creates more opportunity for businesses to thrive, grow their operations and support more workers.” The continued improvement is based on several factors. Over the past three months, in conjunction with an outside actuary consulting firm, DFR conducted an extensive review of the workers’ compensation rates filed by the National Council on Compensation Insurance (NCCI). With a new perspective gained through the review and additional recommendations from the consultant, the Department was able to recommend even greater rate relief. There were overall reductions of 3.7 percent in voluntary lost costs and 7.6 percent in assigned risk rates. This is the second consecutive year both loss costs and assigned risk rates have been reduced, with aggregate 08

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reductions of 11.6 percent and 15.6 percent respectively over the last two years. In addition, DFR directed NCCI to remove a surcharge applied to the assigned risk market – as recent experience no longer justified the expense – resulting in additional premium relief of 6.7 percent for Vermont employers in the assigned risk market. Vermont’s log hauling industry will receive the greatest benefit from this year’s filing, as DFR directed NCCI to combine the log hauling employer class with the contract trucking class, resulting in a 24 percent rate reduction for log haulers while having no impact on the contract trucking industry. In the aggregate, these actions should lead to Vermont employers paying approximately $10 million less in workers’ compensation premiums when the new rates take effective on April 1. The reduction in workers’ compensation costs are also driven by improvements of the frequency (number of workplace injuries) of claims, down 7.2 percent in past five years and 11.5 percent in the past three years. The severity (average cost per claim) of indemnity (wage replacement) and medical (treatment and services for injuries) claims have also improved, down 10.5 percent and 4.6 percent respectively over the past 5 years. The decreased frequency and severity of claims is indicative of improved workplace safety practices.

“Reducing costs in the assigned risk market is particularly good news as many important Vermont industries, such as log hauling and dairy farming, as well as new start-up companies, can only obtain coverage through this market,” said DFR Commissioner Michael Pieciak. “Affordable insurance will reduce the barriers to market entry, encourage compliance and even spur job growth – all of which will further improve rates in the long run.” “I applaud the Department’s Insurance Division, particularly Director Kevin Gaffney and Jessica Sherpa, for taking a hard look at this year’s filing and implementing creative solutions to reduce the cost of workers’ compensation insurance for Vermont business owners. I also thank NCCI for continuing to be a good partner as we seek to improve Vermont’s workers’ compensation market,” added Pieciak. See the announced rates: http://www.dfr.vermont.gov/insurance/rates-forms/workers-compensation-insurance-information-resource-page<http://www.dfr.vermont.gov/insurance/ratesforms/workers-compensation-insurance-information-resource-page. For additional information on workers’ compensation insurance, please contact: Kevin Gaffney, Director of Rates and Forms, 802-828-4845, Kevin.Gaffney@vermont.gov<mailto:Kevin.Gaffney@vermont.gov.

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DFR Inaugural Industry Roundtable Cybersecure Your Organization May 17th at the Burlington Hilton; 3 hrs of CE Approved

Cybersecurity continues to impact each of our organizations regardless of complexity, size or the industries in which we operate. The threats from cyber criminals are ever evolving and the focus from c-suites, boardrooms and regulators is ever increasing. This is why the Department has made cybersecurity a top priority. The Department has made some important strides the last two years by establishing a cybersecurity task force, conducting an internal cyber self-assessment and enacting first-in-thenation cyber regulations for state registered investment advisor firms. I also applaud the VIAA and Mary Eversole for their great work on the cyber front, including devoting its 2017 conference to the issue. In continuation of these efforts, the Department is excited to announce it will host an inaugural industry roundtable on May 17th at the Burlington Hilton devoted to cybersecurity. The roundtable will bring together national experts as well as professionals from Vermont’s banking, securities, insurance and captive insurance industries to discuss leading approaches to protecting your organizations and advising your clients on cyber risk. The roundtable will begin with a luncheon keynote from Robert Cook, the president and CEO of the Financial Industry Regulatory Authority (FINRA). FINRA is responsible for the regulation of the nation’s 3,700 broker-dealer firms and 630,000 brokers. Mr. Cook will share his thoughts on FINRA’s cybersecurity efforts, it modernization initiative and the general regulatory outlook from DC. Three panels will follow lunch. The first panel will include perspectives on the cyber regulatory landscape. Panelists will include leading insurance regulators Maria Vullo, who heads the New York Department of Financial Services, and Beth Dwyer, who heads the Rhode Island Insurance Department and is Vice-Chair of the NAIC’s Cybersecurity Working Group. They will be on hand to discuss New York’s recently enacted cybersecurity regulations and the NAIC’s recently approved model cybersecurity act. The second panel, moderated by former governor Jim Douglas, includes Vermont industry experts and the FBI’s special agent in charge of cyber crimes. The panel will discuss best practices regarding cyber risk mitigation, employee cyber training, third party vendor management, and incident response plans among other topics. The final panel includes local and national cyber insurance experts that will discuss innovations and considerations relating to cyber insurance and alternative risk management strategies utilizing a captive program. The roundtable has been approved for 3 hours of continuing education and will conclude with a networking reception. The full agenda and the registration link can be found on the Department’s website or here: https://t.co/N0oZKXce0F. I look forward to seeing many of you later this spring at the Department’s inaugural industry roundtable. 10

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Vermont Department of Financial Regulation Internship Position Description: The Department of Financial Regulation seeks two interns for the Divisions within the Department including Legal, Banking, Insurance, Captives and Securities. The Financial Regulation Interns will participate in a rotation between the Divisions. The Interns will be responsible for various projects under the guidance of Department leaders. The Internship will include job shadowing, reviewing regulatory rules, participating in consumer service processing of complaints, understanding the EB-5 process, financial analysis and examination and the legal process of Financial Regulation. Required Qualification: Current college student, preferred major: Information technology, Business, Public Administration, Finance, Law or Accounting. Knowledge of MS Office, ability to communicate orally and in writing and to work in a team environment. Educational/Professional Development Outcomes: Intern will learn the work of the Department of Financial Regulation and complete assigned projects and participate in Department activities. • Work Environment/Culture: • Collaborative work • Opportunity for all workers to contribute ideas • Sense of community • Independent/autonomous work • Access to managers who can act as mentors • Respect based upon accomplishments, not seniority • Diversity valued, welcomed and encouraged Application Information: Your application will consist of a cover letter and resume. Please direct your cover letter to Patricia A. Murray, Senior Rate and Forms Analyst, Vermont Department of Financial Regulation, 89 Main Street, Montpelier, VT 05620 – 3101. Click on the”Apply” button on this page to complete an application form and upload your cover letter and resume. Position is available until filled.

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Leasing: A Seamless Customer Experience

But don’t take it from us. Listen to your peers. Agents Express Leasing is an effective solution to manage your clients needs with today’s best equipment technology. Jay Byrnes of Byrnes Agency experienced how easy our leasing solution is for his agency: “As a longtime member of the “Big I”, I always knew of InsurBanc and their commitment to the independent insurance agent. Recently we wanted to update the agency with a new computer network and desktops, so I turned to InsurBanc for leasing options. From start to finish I experienced firsthand how seamless it was to conduct business with them. We have a 35 person agency so to update everyone’s computers was a decent size upgrade. InsurBanc made the process very easy and offered attractive terms and competitive rates which helped to manage the agency’s cash flow”. – Jay Byrnes ~ Byrnes Agency How it works: • Lease terms are 24, 36, 48 or 60 months with a minimum transaction of $5,000 • You are looking for 100% equipment financing, including certain soft costs such as software, shipping, installation and maintenance* • No down payments or advance payments are required • Monthly payments can be customized to meet your special business needs • You are looking for potential tax benefits associated with equipment financing**

We invite you to see for yourself. Contact us today for help preserving your cash flow with an equipment lease solution. These materials are for informational purposes only. The availability of any financing described herein is subject to approval of applicant’s credit, the equipment supplier and the equipment. *Soft costs are limited to 20% of the total amount financed. **Nothing herein constitutes tax advice and customers are advised to consult with their own tax advisors prior to electing specific rates or options. Agents’ Express leasing is a program of De Lage Landen Financial Services, Inc., a third party not affiliated with InsurBanc, a Division of Connecticut Community Bank, N.A.

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Please visit our web site at www.insurbanc.com or contact one of our leasing professionals at 800.957.0858.

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Imperial PFS® is a trade name affiliated with IPFS Corporation® (IPFS®), a premium finance company. Access to products and services described herein may be subject to change and are subject to IPFS’s standard terms and conditions in all respects. Copyright © 2017 IPFS Corporation. All rights reserved. W W W.V I A A .O R G

6 THINGS YOU NEED TO KNOW ABOUT INSURING CRYPTOCURRENCY

KNOWLEDGE

by Brian H. Mukherjee

As an alternate method of payment, investment or means of raising corporate capital, cryptocurrencies like bitcoin appear here to stay.

Brian H. Mukherjee is counsel for Goodwin Procter’s financial industry and business litigation practices. He concentrates on insurance and risk management matters for financial institutions, technology companies, private equity firms and other business clients.

In essence, cryptocurrencies are digital money—and they’re associated with significant risks. A quick scan of today’s headlines reveals that cryptocurrency owners have already lost significant amounts of their assets as a result of cyberattacks, negligence and outright fraud. This means insurance coverage for exposures associated with cryptocurrencies should be high on your list of discussion topics with commercial clients. Here are six practical tips for insuring cryptocurrency: 1) Understand underwriting considerations. As a condition of securing insurance coverage for their cryptocurrency exposures, your clients should be prepared to undergo a thorough underwriting process. Expect insurers to ask about security protocols, internal financial controls, use of banks and third-party service providers, the experience of the management team, and the overall financial health of the insured. As a result, the underwriting process can take much longer than for more traditional coverages.

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The insured should also expect to answer whether it holds its digital currencies in “warm storage”—connected to the internet—or “cold storage”—not internet-connected. Cryptocurrencies held in cold storage are generally considered easier to insure because they are better protected from theft. 2) Assess crime coverage options. Like any asset, cryptocurrencies are at risk of theft—specifically, the theft of “keys” which unlock the digital “wallets” that hold the currency. Theft of these assets can occur in a number of ways, including through scams such as social engineering or “phishing” emails, employee theft, and wallet hacking. Given the unique nature of cryptocurrencies, typical crime policies may not specifically cover their loss, as these coverages are primarily

intended to provide protection for a tangible physical property like cash and securities. But insurance markets are increasingly addressing this potential gap in coverage: At least one U.S. insurer now extends crime coverage to cover bitcoin accepted by insureds as a means of payment. But note that insurers may limit coverage in some cases by only agreeing to insure internal threats, such as theft by an employee, and not theft by outside parties. Valuation of loss can be another challenging issue. Given the volatility in the value of these digital assets, determining fair market value can be more complicated than with the theft of a more traditional asset. 3) Consider D&O insurance for initial coin offerings. Some companies are issuing cryptocurrencies as an alternative to a public of-

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fering of equity, commonly referred to as an initial coin offering. But directors & officers insurance coverage for initial coin offering issuers is perhaps the most challenging type of coverage to obtain in the cryptocurrency space. In the current environment, insurers are concerned that disgruntled coin purchasers, the Securities and Exchange Commission or other regulators may scrutinize an initial coin offering as an unregistered offering of securities, which may expose the issuer to federal, state or foreign securities law liability. 4) Partner with the right insurer. This step is key to establishing a strong insurance program. Currently, the insurance market for cryptocurrency and initial coin offering-related coverage is limited. When considering potential insurers, premiums are an important factor, but you and your client should also be comfortable with the insurer’s specific experience with cryptocurrencies and its claims-handling reputation. If limited market offerings necessitate placing insurance with an insurer that does not have a demonstrated track record, let your client know that up front. Don’t wait until the time of loss. 5) Reassess coverages. As with other types of coverages, you should reassess your clients’ coverages with respect to cryptocurrency exposures on an ongoing basis to make sure those coverages and limits continue to be appropriate. Coverage options in the cryptocurrency space will likely improve over time, so it pays to stay current on what coverage

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options become available. 6) Consider retaining an experienced intermediary. Insuring cryptocurrency exposures is not an area to just dabble in. Until you develop an expertise and understanding in this rapidly evolving area of technology and risk, consider using an intermediary with a deep bench of experience, expertise and focus on cryptocurrency exposures.

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The Certified Insurance Service Representative (CISR) designation program is a nationally recognized education program directed at a very particular job description in the agencyâ€”the customer service representative. CISR COURSES MAY BE TAKEN FOR CE CREDITS FOR THOSE NOT SEEKING THE DESIGNATION.

CISR Elite status now offers an even higher distinction for those eager to gain greater skills and knowledge of insurance service and sales.

The CIC Program is for agency and company personnel -- owners, producers, agents, account managers, brokers, underwriters, and marketing or claims personnel. Participants should be licensed agents, brokers, adjusters, or solicitors; or have at least two years of full-time experience in the insurance industry or as a risk management professional; or have served for at least two years as a full-time insurance faculty member at an accredited college or university. CIC COURSES MAY BE TAKEN FOR CE CREDITS FOR THOSE NOT SEEKING THE DESIGNATION. ATTENDANCE REQUIRED FOR ALL DAYS TO RECEIVE CREDIT FOR INDIVIDUAL CLASSES.

James K. Ruble Graduate Seminars are designed specifically for CIC Designees and feature a variety of topics along with real-life applications in a seminar that is designed to satisfy the CIC annual update requirement. YOU MUST BE A CIC OR CRM AND A DUES-PAYING MEMBER OF THE SOCIETY TO ATTEND A RUBLE SEMINAR.

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SALES & MARKETING

5 STRATEGIC CHANGES FOR CLOSING MORE SALES by John Graham

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of Magnet Marketing and publishes a free monthly eBulletin, No Nonsense Marketing & Sales Ideas. For most of us, what we learn first sticks with us for a long time. Nursery rhymes, what we consider right and wrong—the acorn doesn’t fall far from the tree. It happens to salespeople, too. Because our early training is indelible, it stays with us. But new demands and expectations call for strategic changes to keep up, stay relevant and close more sales.

Here Are 5 Strategies That Can Help 1) Change your thinking about what you know. Salespeople are known for being sure—sometimes overly sure—of themselves. Although self-confidence is necessary to keep going, it also has a risky downside: It can lead to believing we know more than we do. Nothing kills sales faster than arrogance. Consider this example: A website designer’s creativity gives him an initial edge with a prospect. But it was obvious from his presentation that he had not taken the time to understand the organization or its services. The designer was so focused on what he was selling, he didn’t have a clue about what his prospect wanted to buy. In other words, he didn’t know what he didn’t know—and despite his obvious talent, he lost the job. Unless salespeople consciously challenge their thinking, they hand sales to the competition. We all benefit by asking ourselves these questions: What am I missing? What don’t I know? Are my assumptions correct? 2) Change the way you prepare. Do you think you’re at a place where you can “wing

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it”—where all you need to do to get ready for a presentation is to make a few notes or a quick outline, or simply go over it in your mind? If so, you’re deluding yourself, and you’re also short-changing your employer and your customers. You may be good, but you’re not that good. Like it or not, here’s the truth: If we don’t write it, we only think we know it. It happens to us all when we’re under pressure: We lose control and default to whatever comes to mind. Before we know it, we’re talking gibberish. 3) Change the way you present. While presentations may have several objectives, they all have one overriding goal: engage the participants. Unless that happens, a presentation may be interesting and informative, but it’s not a home run. Something is missing.

For a presentation to be a winner, it must be interactive. Inviting your listeners to interrupt you and then managing to pick up the thread and continue takes confidence. But it also sends the message that the participants shape the presentation— an that’s well worth the risk. 4) Change your persuasion strategy. Some salespeople still say, “If I can just get in front of prospects, that’s all I need to close them.” If you want to give it a name, call it “the power of persuasion”: They build their case in a way that leads prospects to the logical conclusion that their only reasonable response is yes. Such a sales strategy is still popular. However, more and more of today’s consumers buy it. They push back, feeling like they’re being set up, manipulated or pushed. Today, push is out; pull is in. Influencing buying behavior requires a sales environment in which customers can decide if they want to do business with you. That gives them the opportunity to find out if they can trust you, if your messaging makes sense, and if you’re reliable and responsive.

They say change is inevitable. If it’s true, then there’s no better place to start than with ourselves. 5) Change how you relate to customers. Even though companies continue preaching a customer loyalty message, they may be deceiving themselves. For example, Accenture’s research indicates that 99% of retailers claim their loyalty programs perform at or above expectations, even though 71% of shoppers argue that such programs do not result in loyalty. The trend is toward tentative or quid pro quo loyalty. The message is: “As long as you give me what I want, I’ll be loyal. If that changes, so will I.” What counts today are a consistently good customer experience, convenience, an easy payment process, new and innovative products, and excellent customer service across multiple platforms, according to a Blackhawk Network study. Even if they’re an Amazon Prime customer paying $99 a year, customers don’t think twice about buying it for cheaper elsewhere, particularly if there’s free delivery. Clearly, performance-based relationships trump everything, including loyalty.

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O &

ER N R O C

WHICH COMMERCIAL CLIENTS NEED POLLUTION COVERAGE? by Jim Redeker

Jim Redeker is vice president and claims manager at Swiss Re Corporate Solutions and works out of the office in Overland Park, Kansas. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re. We all know which clients need pollution coverage, right? They have smoke stacks puffing away all day. It’s the oil refineries and gas stations, the truckers who haul hazardous loads and the manufacturing plants. It’s the coal-powered electric plant and the pulp mill. It’s true these businesses need pollution coverage. But other, less conspicuous commercial clients need it, too. Swiss Re Corporate Solutions has fielded several errors & omissions claims against agencies where a client’s commercial general liability carrier denied a claim based on the pollution exclusion. One client installed spray foam insulation in a building while other people were present. Spray foam emits fumes during installation, which can allegedly cause long-term medical conditions. Or consider a new medical condition called “popcorn lung,” associated with workers who are exposed to the powdered butter flavoring used in microwave popcorn. Injured workers at these packaging plants have received multimillion-dollar awards. While Swiss Re’s insureds have yet to see a health-related herbicide claim, one claim involved a landscape company spraying the lawn of an apartment complex with herbicide instead of fertilizer, accidentally killing the lawn. The liability carrier denied the claim under the pollution exclusion on the land-

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scape company’s policy, and the landscape company made a claim against their insurance agent. As the population grows and urban sprawl picks up steam, more people are likely to complain about the business practices of their neighbors. In one case, a gun range was sued for noise pollution due to all of the shooting. In another, a rock quarry, which cut stone for commercial and residential use, faced a suit from angry neighbors complaining about the odor emitted during the process. The pollution exclusion can even come into play during something as seemingly innocent as a barbeque picnic held for employees. In one instance, while cleaning up after the meal, employees hosed down the barbeque grill. The contents of the grill ended up in a stream, and the business was sued for contamination. In all these scenarios, the insurance agent faced an E&O claim when the business in question had no pollution coverage. Bottom line: Offer pollution coverage to every commercial client, and document the conversation. It’ll go a long way in defending your agency in a subsequent suit—and it will also qualify your agency for Westport’s deductible elimination in the event that your agency faces a claim for not placing pollution coverage.

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Helen Collins hcollins@viaa.org

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“FOLLOWING FORM” CERTIFICATE OF INSURANCE REQUESTS by Bill Wilson

One of the premier insurance educators in America on form, coverage, and technical issues; Founder and director of the Big “I” Virtual University; Retired Assoc. VP of Education and Research from Independent Insurance Agents & Brokers of America.

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I’ve spoken about this before in a number of seminars and webinars, but I don’t think I’ve ever written about it. Not long ago, an agent who had attended one of my webinars asked about an article on why you should never say on a certificate of insurance (or elsewhere) that a umbrella or excess liability policy provided “following form” coverage. I’ve seen contracts with these kinds of requirements if limits are provided by umbrella or excess policies: •

“Excess or umbrella liability policy is follow-form with no additional exclusions.”

•

“Umbrella (excess) liability insurance is ‘Following Form’ to the General Liability Policy (meaning no additional exclusions that aren’t already on the CGL policy). Y or N.”

The “following form” requirement usually means that the umbrella or excess policy is expected cover everything covered by the underlying policies. The reality is that this is almost never the case. Many/most umbrella and excess policies have exclusions or an absence of coverage for exposures covered by underlying policies. For example, an exclusion for damage to rented premises is common, with no exception for fire damage legal liability (FDLL) coverage or the ISO CGL’s open perils coverage that is provided for temporary rentals of 7 days or less. Here is an example of a primary policy exclusion and the FDLL exception: “‘Property damage’ to property rented to, occupied by or in the care of an ‘insured’. This exclusion does not apply to ‘property damage’ caused by fire, smoke or explosion.” Here is the exclusionary language in the excess policy: “Property Damage to property owned, rented or occupied by you….” As you can see, the excess policy provides no exception for fire, smoke or explosion. Defined terms such as “bodily injury” and “property damage” are often different and may effect lesser coverage in the umbrella/excess policy than the underlying CGL or auto. Umbrella/excess policies often exclude auto UM/UIM coverage or, more commonly, provide a UM/UIM limit less than the liability limit. IRMI’s CGL reference manual set includes an analysis of the common umbrella/excess policies in the marketplace and might also address “following form” issues. You have to subscribe to this reference material to review that. For a good free article from IRMI about following form issues, click here. There is always a danger when you use verbiage on a certificate of insurance to describe coverage that is different from the actual policy language. Terms like “following form,” “blanket,” and “all risk” are terms we should resist using since they often serve as a noose in which the certificate holder hopes the agent will stick his or her head in.

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DID YOU KNOW AGENCY E&O UMBRELLA IS NOW AVAILABLE THROUGH BIG “I” PROFESSIONAL LIABILITY A commercial umbrella underwritten by Swiss Re (rated A+ by A.M. Best) is now available exclusively to Big “I” members. Designed in collaboration with the IIABA to

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SUPPORT your state association while protecting your business W W W.V I A A .O R G

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas. Westport is licensed in all 50 states and the District of Columbia. Insurance products mentioned may not be available in all states. Please contact your state administrator or Westport for availability in your state

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COMPANY NEWS

COULD YOUR CUSTOMERS USE A

PERSONAL UMBRELLA POLICY?

ACCIDENTS HAPPEN? That’s why people have insurance. However, if your customers aren’t protected by a personal umbrella policy, they could be putting their house or financial assets at risk. This low-cost policy is designed to protect families against a catastrophic lawsuit or judgment.

CONSIDER THIS: Existing homeowners and auto insurance may not be enough to cover a lawsuit or judgment. A personal umbrella policy will substantially increase your customer’s overall liability coverage beyond the basic coverage provided under homeowners and auto insurance policies. A SMART WAY TO PROTECT YOU AND YOUR FAMILY. You’ll find an RLI personal umbrella policy is a good idea. • Up to $5 million in additional insurance available • Backed by a financially secure, A+ rated company • Customers keep their current homeowner/auto insurer • Excess UM/UIM available • New drivers accepted — no age limit on drivers • Up to one DWI/DUI per household allowed • Auto limits as low as 100/300/50 in certain cases

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Vermont Mutual Donates Over $9,000 to the Boys & Girls Club of Burlington, VT BURLINGTON, Vermont (March 13, 2018)—Vermont Mutual Insurance Group® recently presented a check for $9,900 to the Boys & Girls Club of Burlington, Vermont as part of their partnership with UVM and the Cats Win, Community Wins initiative. The check was presented on the ice by Dan Bridge, president and CEO of Vermont Mutual and Mark McDonnell, executive vice president and COO, to Tanya Benosky, executive director of The Boys & Girls Club of Burlington, VT. Joining the presentation were Men’s Basketball Team Captains, Trae Bell Haynes and Payton Henson along with Taylor Willard from Women’s Hockey; and Courtney Cole, Alex Bernier, and Elena McWright from Women’s Lacrosse. “We are thrilled to be part of ‘Cats Win, Community Wins’ initiative and grateful to Vermont Mutual’s generous support.” said Tanya Benosky, Executive Director, Boys & Girls Club of Burlington. Benosky continued “It was a treat to be guests of the Cats and the kids really enjoyed the game as well!” Vermont Mutual and UVM Athletics have formed a community-based initiative that gives back to local organizations. As part of the multi-year agreement, Vermont Mutual will give $100 to the Boys & Girls Club of Burlington for each Catamount win – inclusive of every team, every sport, home and away victories. In years three and four, two additional organizations will be selected as the recipients of the donations based on wins by the Cats. Fans will soon recognize this initiative as “Cats Win, Community Wins” that will be supported through in-game promotion, social

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Amick, Coon, Willett Promoted by Union Mutual MONTPELIER – John W. Amick, Anna G. Coon, and Emile F. Willett, Jr. were recently promoted by Union Mutual, the Company/ Union Mutual President and CEO Michael W. Nobles announced. Amick was elevated to Vice President of Claims and Coon was advanced to Executive & Communications Coordinator / Assistant Corporate Secretary. Willett has moved to the Assistant Vice President of Market and Product Development. The promotion of Amick was approved by the Company’s Board of Directors at the November 29th meeting. All three promotions were effective January 1, 2018, and the employees are based in the Company’s Montpelier office. Amick began his career with Union Mutual in 1991 and was most recently Assistant Vice President of Claims. Coon joined Union Mutual in 2014, and continues to be responsible for the company’s social media and communications platforms. Willett’s promotion was also effective Jan. 1, 2018. He joined Union Mutual as the Manager of Product Development in 2017.

Acuity Announces Staff Promotions Jennifer Beringer is promoted to Business Analyst at Acuity’s Corporate Headquarters. She started at Acuity in June 2015 as a Commercial Processor. She graduated in 2006 from the University of Wisconsin-Green Bay with a bachelor of arts degree in Spanish. Jennifer lives in Sheboygan, Wisconsin. Marissa Hartzheim is promoted to Actuarial Analyst at Acuity’s Corporate Headquarters. Marissa began her career at Acuity in June 2015 as a Commercial Underwriter. She graduated in 2015 from St. Norbert College with a bachelor of arts degree in mathematics and economics. Marissa resides in Sheboygan, Wisconsin Kevin Pickhard is promoted to Commercial Field Underwriter at Acuity. Kevin joined Acuity in October 2010 as a Business Analyst. He was promoted in January 2013 to Commercial Underwriter. He graduated in 2010 from Cornell College with a bachelor of arts degree in business and economics. Kevin lives in Fargo, North Dakota.

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HELP WANTED: Commercial Lines Producer Looking to Take Your Personal

Lines Experience to the Next Level?

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NFP, a leadingand insurance and vice insurance financialbroker services agency consultant thatserving provides benefits, who has been the employee communities of the tri-state region since (P&C), 1867. We are alwaysand property & casualty retirement, looking forinsurance highly motivated individuals who individual and wealth management have excellent customer service and relationsolutions is currently experienced ship building skills. Theseeking RichardsanGroup offers Personal Linessalary Producer to advance hisexor a competitive commensurate with perience as a comprehensive benefits her careerasaswell a Commercial Lines Producer WeBurlington are activelyoffice. recruiting forposition the inpackage. its South This following positions: is responsible for generating new sales for all Lines policies and requires • Commercial Accounting Assistant, Brattleboro the ability to work closely with clients, • Commercial Sales Producer, Rutland customer serviceLines representatives, producers, management, and insurance carriers.BrattleThe • Personal Lines Account Manager, workboro environment is professional and very supportive. The ideal candidate should have • Employee Benefits Account Managers excellent interpersonal skills, {2+} years of for the following locations: Concord & experience, and ability to adapt to emerging Hanover technology. They will be supported with commercial linesand training and mentoring for For job postings requirements please visit https://therichardsgrp.com/about/careers/ prospect/planning, sales calls, proposals and Submit Cover Letter and Resume to jobs@ education. A property and casualty license is therichardsgrp.com required. NFP offers a highly competitive compensation and benefits package.

Please send your resume to: Dan Rodliff Vice President, NFP P&C PO Box 2243 South Burlington, VT 05407 Or Email: dan.rodliff @nfp.com

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THANK YOU 2018 ANNUAL PARTNERS!

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