GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION
August 2015
7
th
Green Mountain Agent is a publication of
In This Issue: August 2015
P.O. Box 1387, Montpelier, VT 05601 Phone: 802-229-5884 Fax: 802-223-0868 www.viaa.org VIAA Officers
President Michael T. Walsh, CPCU Vice President Daniel Lussier Secretary/Treasurer Peter Richards IIABA & PIA State National Director Ron Bixby Immediate Past President Jon Jamieson, CIC
Directors Chip Ams
4 Message from the President
Features 6 Same-Sex Marriage Ruling & P-C Insurance 10 Help Wanted 11 YAC Make-A-Wish Walk 12 VIAA Annual Meeting Notice 16 Marketing: Bringing it All Back 19 Sales Success: The Biggest Issues I see in Sales Organizations
E&O Corner 25 The Benefits of Using Insurance Coverage Checklists
News
Erin Odell Paul Plunkett
Staff Executive Director Mary Eversole meversole@viaa.org
GMA Publication Design Thorin Markison thorinmarkison.com
28 Hickock & Boardman 29 The Richards Group 30 Vermont Mutual
Message from the President Last Word This is my final President’s Message for VIAA. When I accepted the gavel at last year’s convention I set out to bring our Young Agents Committee (YAC) back to life. I am pleased to report that the VIAA YAC’s are up and running with verve and excitement. They’ve set tangible goals for themselves and gaining new members every day. It’s a strong group of future leaders with incredible potential and I look forward to see how this group will grow. During my term as President, your Board of Directors has made significant changes in the way VIAA operates and I’m glad to report that is going well. We continue to focus on the perpetuation of the association, which is challenging in an active mergers and acquisition marketplace. Yet we persevere by thinking outside of the box to keep VIAA financially stable and providing great member services and benefits. Our perennial legislative issue, the independent contractor’s definition, continues to dodge resolution. There is only one way to provide ultimate clarity on this issue—require all workers to carry workers compensation coverage. That is the message we delivered during the session and we will be back again next year to get the legislature to take action for the benefit of all Vermonters. One of things that I have been privileged to do during my presidency is work with our Executive Director, Mary Eversole. Please
believe me when I tell you that there is no trade association with a lone staff member that is as competent and dedicated as this humble leader. Everything you receive at any level from VIAA is due to Mary’s hard work. Be sure to thank her yourself when you see her at the convention next month, which itself is another example of what I am talking about. I would like to congratulate our incoming president, Dan Lussier, and vice president, Pete Richards and Secretary/Treasurer Chip Ams. I know they will do a great job and that we will be in good hands going forward. I want to thank you all for the opportunity to serve on the VIAA Board of Directors and as your president. It has been a pleasure as well as an honor.
Michael T. Walsh, VIAA President
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What the Same-Sex Marriage Ruling Means for P-C Insurance by Bill Wilson On June 26 in Obergefell v. Hodges, the U.S. Supreme Court ruled in favor of same-sex marriage in a 5-4 decision. What does the ruling mean for you and your customers? And what are the property-casualty coverage implications? As always, you need to review the specific policy in question to determine how it addresses terms like “marriage,” “spouse” and “family member.” If it’s not an ISO form, hopefully the underwriting carrier has considered the implications and can provide guidance. But for ISO forms, here’s what you should keep in mind in the aftermath of the Supreme Court ruling: ISO Personal Auto Policy (PAP) The words “you” and “your” appear 141 times in the 13 pages of the 2015 edition of the ISO PAP. ISO defines these terms to mean the named insured on the Declarations and, even if not named, the spouse if a resident of the same household. The term “spouse” appears in the policy seven times, and although it is undefined in the insurance contract, the highest court in the land has established that same-sex couples qualify as “spouses” and are therefore entitled to the insured status of “you” and “your”— even if not specifically named on the policy. As always, it is advisable to name both spouses. “You” has rights under the policy no other insured has, including the right to request changes, cancel coverage, receive return premiums and more, so who is a “you” is critically important. The ISO PAP also uses the term “family member” 26 times, which refers to a person related to “you” by blood, marriage or adoption who is a resident of your household, including ward or foster children. This is significant because after “you,” “family members” enjoy the “second best” coverage in the policy. So the child of an unnamed same-sex spouse
residing in the household now has “family member” status when it comes to coverage. ISO has too many PAP endorsements to analyze for an article of this type. But a good example of the impact of the ruling on PAP endorsements is the PP 03 34 – Joint Ownership Coverage endorsement—a form that can cover the exposures of jointly owned vehicles between: 1) individuals “other than husband and wife” residing in the same household, or 2) non-resident relatives. ISO will likely revise the “husband and wife” language in its upcoming countrywide PAP filing, since “marriage” is no longer delineated by opposing genders. Presumably, this endorsement will no longer be necessary for same-sex couples living together if legally married, but how ISO plans to address this issue in this and other coverage forms remains to be seen. From a rating standpoint, policies issued to same-sex married couples may offer some advantages. But that could depend on other issues that will vary from one couple to the next, such as driving records and credit scores, so it’s impossible to predict the rating impact of this change. As outlined in many Big “I” Virtual University articles, insuring all resident family members under one policy is almost always better from a coverage standpoint. ISO Homeowners Policies Using the most common policy, the 24-page ISO HO 00 03 05 11 (HO-3) as the model HO form, the terms “you” and “your” appear 114 times and mean the same thing they do in ISO’s PAP. The word “spouse” appears twice, once in the “you” and “your” definitions and again under the “Death” condition. Disregarding any impact on HO endorsements, the ruling should have little impact on HO coverage. Expect the ruling to create a larger issue regarding eligibility and rating. Commercial Lines ISO’s primary CGL policy makes four references to a “spouse.” The first is in the
Employer’s Liability exclusion, which applies to business interruption to the spouse of an employee as a consequence of BI to that employee. This exclusion would now apply to a same-sex marriage partner where it presumably did not prior to the Court’s ruling, though establishing a basis for coverage otherwise might have been difficult anyway. The remaining three “spouse” references appear in the “Who Is An Insured” section, where the spouse of a sole proprietor, partner or joint venture member has automatic coverage for claims arising from their conduct on behalf of the business. This would be an expansion of coverage for same-sex spouses. ISO’s Business Auto Policy (BAP) also includes a reference to “spouse” in the Employer’s Liability exclusion, on the same basis as the CGL policy. In addition, the “Fellow Employee” exclusion for consequential losses includes mention of a “spouse.” The result of these two
references: A same-sex spouse would clearly not have coverage for an exposure they would have had coverage for before if there was a basis for recovery under the policy. This change may affect a number of BAP endorsements, from UM and PIP to other forms such as the CA 99 10 – Drive Other Car Coverage and CA 99 17 – Individual Named Insured endorsements. The changes to these forms are similar to ISO’s PAP changes with regard to references to “spouse” and “family member.” These are just a few examples of how the Supreme Court ruling may impact p-c coverages. Once again, it is important to review each policy form on its own merits and discuss any issues with the carrier regarding eligibility, rating and coverage. Bill Wilson is director of the Big “I” Virtual University.
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Help Wanted
309 Portland Street St. Johnsbury, VT
802-748-5224
CSR/Producer
Seeking Turn Off Texting Demo Presenter With Truck Central & Northern VT The Youth Safety Council of Vermont seeks a teen-savvy presenter with a good driving record for its Central & Northern VT “Turn Off Texting” driving safety program, our second presenter position for this popular program. Part time seasonal position with varied hours requires daily travel. Qualified candidates will be ok with a flexible schedule, comfortable working with adolescents and teachers, have good communication skills, and be willing to travel within Vermont using their own vehicle (6 cyl. minimum) to tow a trailer. Compensation includes an hourly wage and mileage reimbursement. Send a resume and information about schedule availability to info@yscvt.org. JAMES LOCKRIDGE | Executive Director Youth Safety Council of Vermont (802) 881-9050 | www.YSCVT.org
Our family owned and operated agency takes the time to get to know our customers, helping them identify risks and recommending the insurance solutions that best fit their needs. We offer local service and are committed to our community. Currently we seek a highly motivated individual that desires a career opportunity. Would you like to help us maintain and grow our business? Do you have your property and casualty license, and sales experience with a proven track record of exceeding goals. In addition, can you connect with people, establishing rapport and building relationships that help round our book of business. Core Job Duties Include (but are not limited to): • Provide excellent customer service • Prospect and generate new business through leads and referrals, soliciting, and quoting new business • Set appointments to meet with clients and prospects • Review renewal business and conduct appropriate follow-up • Build relationships with existing customers • Proactively identify and act on cross-sell opportunities • Perform risk analysis and underwriting • Monitor claims activity for profitability purposes • Determine new business marketing focus based on research and analysis of competitive areas in local market • Diffuse difficult and complex customer interactions Must be able to • Meet performance goals • Understand complex product, billing, underwriting, and processing guidelines • Understand and make decisions based on what’s best for agency’s profitability and growth • Multi-task • Continually pursue development of personal and business skills • Accept feedback Must have the following skills and experience: • Outstanding written and verbal communication skills • Proficiency in Microsoft Office Suite (Excel, Word, Outlook, etc.) and general computing • Previous customer service experience Please submit resumés to us at: apply@thebarrettagency.com
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Join VIAA YACs at the Make a Wish Walk
VERMONT
VIAA and Trusted Choice are again a major sponsor of this year’s Walk for Wishes, which will be held on September 13th, 2015 in Shelburne. We are looking to increase industry participation this year.
We are again encouraging all VIAA members and the insurance industry to join us in this fun event. Please mark your calendar and watch for more details from VIAA’s Young Agent Committee-the organizers of our industry’s effort. Here are different ways you and your company can participate: • Form a team of walkers • Give a contribution on behalf of a walker • Spread the word around the industry about the event. Make a Wish grants wishes to children with life-threatening illnesses. For more information, contact VIAA YAC Dan Rodliff at 802-448-7157.
Vermont Insurance Agents Association
Annual Meeting Notice
sm
SEPTEMBER 10, 2015
Ladies and Gentlemen:
Capitol Plaza Hotel The primary agenda of the meeting is to adopt revised by-laws Montpelier, VT to reduce the size of the VIAA board of directors and also to allow VIAA to operate as a non-profit entity and dissolve Ethan Allen Room This letter serves as notice of the Vermont Insurance Agents Association Annual Meeting.
VIAS along with the election of new officers. This agenda and/or topics listed here are subject to change.
11:30 am – 1:30 pm
I look forward to seeing you in Montpelier. Sincerely,
Michael T. Walsh, VIAA President Register online at:
viaa.org/annual-meeting
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In Every Community Maximize your Investment In the 2015 Trusted Choice Campaign Increase your ad dollars by 150% No other advertising campaign delivers more value
-
2015 TRUSTED CHOICE TOTAL STATEWIDE CAMPAIGN TV Placement
TV AD DESIGN l l
l
l
Your own Trusted Choice high definition TV commercial. Gold sponsors receive customized footage, including an on-camera appearance and agency customers featured - all taped on location. Silver sponsors receive an on-camera appearance taped at VIAA at NO COST. (Customized footage taped on location is available at $350 per agent) Production begins in late Spring.
Total spots: 421
Total spots: 2,875 Total TV Placements: 3,296
$ TARGETED 2015 PLACEMENTS AND BUDGET SPEND Your ads will run between June and November on WCAX during local news, national morning shows, and weekend news and during the Red Sox and other top cable programming. GOLD SPONSOR: $5,000
SILVER SPONSOR: $2,500
Targeted Cable TV Ads: 230
Targeted Cable TV Ads: 115
Ads on WCAX: 35
Ads on WCAX: 16
Total Value: $15,000
Total Value: $6,500
. OVER 1.5 MILLION TOTAL OVERALL CAMPAIGN IMPRESSIONS The number of ad placements may vary depending on total agent participation. Ad placement was based on company contributions plus 7 agents participating at the Gold $5,000 level and 11 agents participating at the Silver $2,500 level. For more information contact Mary Eversole at 802.229.5884 or meversole@viaa.org.
Sponsored By
CONVENTION REGISTRATION Join us September 24 & 25, 2015 at the Hilton Burlington Hotel in Burlington, Vermont for the 109th Annual Convention. VIAA’s largest and most anticipated event of the year is our Annual Convention. Approximately 400 member agents, Young Agents and company representatives join together to network and acquire new knowledge about the industry. We’ve changed the format this year to include more time for networking and socializing. Local and national exhibitors will be in attendance to provide updates on their latest products and educate attendees. The Young Agents are taking over the entertainment and will host Young Agents Casino Night. The Annual Convention this year includes informative CE sessions presented by David Walker, Chair of the Big “I” and a golf tournament at Kwiniaska Golf Club in Shelburne on Friday. This year’s event will be better than ever so mark your calendar, reserve your rooms, register online and get ready to have fun! Remember CSRs attend for free! For questions call (802) 865-5202 or email info@delaneymeetingevent.com.
Visit www.viaa.org for program updates and to register online
SCHEDULE AT-A-GLANCE Thursday, September 24 8:30 AM
Registration
9:00 AM - 4:00 PM
Continuing Education Classes
4:00 PM - 7:00 PM
Trade Show
5:00 PM - 7:00 PM
President’s Opening Reception
7:00 PM - 10:00 PM
Vermont Young Agents Casino Night
Friday, September 25 8:00 AM - 9:00 AM
Friday Breakfast
10:00 AM - 3:00 PM
Annual Golf Tournament at Kwiniaska Golf Club
LOCATION & LODGING Overnight accommodations are available at the Hilton Burlington Hotel to conference participants at a discounted rate of $199/night for September 23, 2015 through September 26, 2015. The special room rate will be available until August 24th or until the group block is sold-out, whichever comes first. Visit http://bit.ly/1e2QqYO to make your reservation online. Hilton Burlington 60 Battery Street Burlington, VT 05401 (802) 658-6500 www.hiltonburlington.com
CONVENTION HIGHLIGHTS CONTINUING EDUCATION E&O AND ETHICS WITH DAVID WALKER, CHAIR, BIG “I”
NEW THIS YEAR! YOUNG AGENTS CASINO NIGHT After the President’s Reception on Thursday evening, the first annual Vermont Young Agents Casino Night will take place from 7:00 PM – 10:00 Take advantage of a rare opportunity to learn from
PM. Each attendee will receive $500 in poker chips
the “Top Dog” of the independent agents, David
to play Texas Hold ’em, Roulette, Craps, 5-Card Stud
Walker, Chair of the Big “I”. Start the morning with
and more! There will also be prize drawings every
an eye-opening E&O course and after lunch learn
15 minutes, cash cube, photo booth as well as food
how ethics and leadership go hand in hand.
and drink. Grand prizes will be awarded at 9:30 PM.
*Each course is 3 CEUs for the State of Vermont
REGISTRATION OPTIONS Register online at http://www.cvent.com/d/3rqdd7/4W
Thursday, September 24 FULL CONVENTION REGISTRATION Includes: Continuing Education Classes & Lunch, Trade Show, President’s Opening Reception, Young Agents Casino Night and Friday Breakfast
MEMBER
NON-MEMBER
$150
$175
CSRs FULL CONVENTION REGISTRATION
Free
Includes: Continuing Education Classes & Lunch, Trade Show, President’s Opening Reception, Young Agents Casino Night and Friday Breakfast
Continuing Education Classes ONLY Includes: Continuing Education Classes & Lunch
• • •
9:00 AM - Noon E&O (3CEUs) 1:00 PM - 4:00 PM Ethics (3 CEUs) Both E&O and Ethics
OPENING NIGHT ONLY Includes: Trade Show, President’s Opening Reception and Young Agents Casino Night
PRESIDENT’S RECEPTION ONLY Includes: President’s Opening Reception
Friday, September 25 Golf Tournament - Kwiniaska Golf Club, Shelburne, VT
$35 $35 $65
$50 $50 $80
$110
$125
$75
$95
INDIVIDUAL
FOURSOME
$180
$720
CANCELLATION POLICY: Cancellations made by September 18th will be issued a refund of 50% of your total registration fee. No refunds will be given for cancellations received after September 18th. All cancellations or changes must be made in the registration system. “No shows” will not receive a refund.
Marketing Strategies with John Houle Bringing It All Back: How social media, email marketing and video can bring people back to your website Whether you already have made the investment in a new website, or if you’re planning to do so in the near future, you also need to be thinking about how you will drive people to your site for new business. Designing a dynamic website is only one aspect of building an effective online presence. Once a website is built, it needs to be found by current and new customers. To ensure that your website is found, make sure that best practices for search engine optimization have been applied to your site. This includes proper page encoding (META tags) and utilizing meta keywords and meta descriptions. It also involves creating unique, accurate title tags for each page and unique keywords and descriptions for each page on a website. Also, you need to make sure all the review sites have accurate information about your company. It is equally important to analyze all the review sites to ensure that your company name is listed consistently and your hours of operation are accurate. If you have not done so already, make sure you set up a Google places page, and take the time to add pictures. Now that your website is completely updated, it is time to bring in the customers. Here are a few ways to draw new customers in and current customers back: Social Media & Blogging We recommend that you engage in proactive social media, primarily with Facebook, LinkedIn, and Twitter. In addition to the central benefits of reaching new customers, social networking and blogging is instrumental to the search engine optimization of a website. We also recommend that you incorporate a blog into your website, and write content based on what you believe new customers will be searching for about your company.
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The blog will be the anchor for all new postings that you will promote through social media and email marketing. You can write short articles (150-250 words) on such topics as “The best reasons why you should combine home and auto insurance;” “What every adult should understand about life insurance;” and “Why you shouldn’t go out the door without an umbrella.” Every time you write a new article, you should promote it using your Social Media handles: “You probably already have heard why you should combine your home and auto insurance, but take a moment to read this brief article about the real benefits you will see, including saving up to 20% on your premiums: www.Yourwebsitepage/news. Email Marketing Regular communications through email marketing serves as an excellent retention tool to keep your current clients informed, since information is sent immediately when it becomes available. You can develop multiple eblasts per year, and distribute them through an electronic communications platform with professional, customized layouts to promote your message. An e-newsletter should have no more than two to three topics in it and should be able to fit onto one screen. To accomplish this, you want to only include the first paragraph of your article in the e-newsletter with a “read more” feature that takes viewers to the full article on your website. The object is to have your customer read the article about adding new coverage, such as an umbrella policy, and then hit the quote button on your website or pick up the phone and call you. You also want to review the statistics of your email marketing campaigns. You can see who clicked on the “read more” feature and direct a producer to follow-up with your client. If your client took the time to read the article on the subject,
he or she may be interested in hearing more details directly from you or one of your agents. Adding video You can take both your social media and email marketing to an even higher level when you start including short one-minute videos about insurance topics and place them on related pages on your website. Now, instead of saying, read this short article when you post through social media, you can say, “Watch this short video in which our agency principal talks about why you shouldn’t always go with the cheapest price for your auto insurance.”
The main goal is to continuously drive people back to your website and company so you can service them better.
John Houle is the president of JH Communications and can be reached at 401.831.6123 or at john@jhcom.net.
You also can incorporate a screen shot of the video and a link to your page and send it out through your eblast. In your e-newsletter you can direct people to read an article, but also watch a video, making your communication to them even more dynamic. Just like with your blog, you want to house all the videos on your website as well as placing them on YouTube.
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Sales Success with John Chapin The Biggest Issues I See in Sales Organizations While there are lots of potential obstacles and roadblocks to building a great sales organization, there are several blatant issues that are responsible for about 90% of failures. The Five Biggest Issues that Derail Sales Organizations
Issue #1: No solid hiring process A solid sales organization starts with solid people. Having solid people starts with having a solid hiring process. Look, salespeople interview well. That’s their job. One person I know had 6 jobs in 12 months. He was completely inept so he only lasted a short period of time, in one case 3 hours, but he was good at selling on the interview. Okay, that’s extreme, the point being: you need a step-by-step process that begins with the basics but then moves people out of the traditional interview process to find out who you’re really dealing with. The best hiring process is one that includes activities which identify transparency, competitiveness, honesty, and attitude. Once you have your step-by-step, non-traditional process in place, don’t skip steps. No matter how good someone looks, or who they’re related to, make sure they are interviewed by all the key people and are made to jump through all the hoops required for proper qualification. Remember the first part of the number one rule of hiring: hire slowly. Issue #2: A lack of accountability It’s critical that standards are set and people are held accountable. The biggest issue I see in ALL organizations, not just sales organizations, is a lack of accountability where people are allowed to slack off, not do what’s expected of them, and still keep their job with no consequences. Salespeople need to know what’s expected and then follow through with those expectations. The longest the wrong person should be with you is 180 days, although you’ll probably know you have the wrong person in a week or two.
I’ve seen salespeople allowed to stay on for years when they weren’t doing the job almost from day one. You’re not running a charity and you’re not doing anyone any favors by keeping them around. In fact, you’re killing morale and the office atmosphere. Remember the second half of the number one rule of hiring: fire quickly. Issue #3: A lack of sales training Most companies spend far too much time on training other than sales training. While product and other technical training is good and necessary, the most important activity of a salesperson is to sell, thus the most important training they get is sales training. They have to be able to do the most difficult sales tasks well, namely: they have to be able to hit the streets and cold call and sell to strangers. There should be an onboarding process for new salespeople and a large component of that process should be how to sell. Each organization also needs to have a proven sales process in place. This is a step-by-step system which includes all the key aspects of selling from identifying prospects, to contacting them, to presenting, to closing, to following up, to account development and relationship building. The goal is for each salesperson to have all answers to objections, questions, and everything else that can come up in a customer or prospect meeting, scripted and committed to memory. They should be role-playing with each other, and even with friends and family members, so they are always prepared. When you can wake a salesperson up at 3 a.m. and they can answer any question or objection, they are ready to go. That said, don’t let salespeople sit in the office during prime-calling times practicing scripts because they don’t have them down yet. That’s just an excuse not to go out and do the hard work. Sales training also needs to be continuous. Sales managers need to be testing salespeople 19
by role-playing with them and asking them questions and giving them objections throughout the day. They should also be going on calls with them. Sales meetings need to be focused on sales education and training. In sales meetings you should be talking about competition, building value, and other items that improve sales skills. Sales meetings are not for looking at charts and eating donuts.
the problem. It’s simple, if something does not get installed or implemented on time or, if customers are not responded to and issues are not addressed on a timely basis, success is usually short lived. It’s imperative that your support group is super-responsive, knowledgeable, and has a great attitude. Serving the customer must be the number one priority.
Salespeople also need to be doing their own training. They should be attending seminars, reading books, listening to and watching programs and videos, and they should have their own educational library. While the company has to have the training systems and processes in place, salespeople also need to take responsibility for their personal and professional development.
John Chapin is a sales and motivational speaker and trainer. For his free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For permission to reprint, e-mail: johnchapin@completeselling.com
Issue #4: Negative attitudes are allowed When I mention negative attitudes I’m not only referring to those of the salespeople. Many times it’s the support people who cop an attitude or act as if they’re more important or better than everyone else. You either have to change these people quickly, not likely, or move them out quickly, more likely. They say one negative person affects six others but it’s worse than that. Negative people and attitudes will drag your company down faster than almost anything else. Issue #5: A bad product or lack of support A company and its sales team are only as good as the service, support, and product that the company turns out. If a company turns out a bad product, that’s obviously a problem. That said, in my experience it’s usually not the product but rather the support and service that are 20
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to ϐlood knowledge.
Stay ahead of the curve with information and updates from Big “I” Flood. Being knowledgeable of NFIP coverages and changes is crucial in communicating the need for �lood insurance to your clients� Fortunately, Selective and Big “I” Flood leverage a variety of channels to keep members up to speed, including:
Continuing education classes offered by state
associations and taught by Selective Territory Managers or other industry experts
Regularly issued communications from Selective about NFIP legislative changes and how they impact agents and customers
Numerous publications providing industry updates:
Insurance News & Views weekly e-newsletter Two for Tuesday weekly e-newsletter Big I Advantage® Newsletter quarterly publication Independent Agent magazine special features NFIP reform announced in state association publications
Free topical webinars hosted by Big “I” Flood,
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The Benefits of Using Insurance Coverage Checklists James C. Keidel, Esq. Christopher B. Weldon, Esq. Keidel, Weldon & Cunningham, L LP
In this issue of The E & O Corner, we will discuss some of the benefits, for agencies and brokerages, as well as for customers, of using insurance coverage checklists. Using coverage checklists is a simple, but very effective, errors and omissions loss control practice that any agency or brokerage can easily implement and follow. The use of insurance coverage checklists often protects an agency or brokerage against inconsistent and conflicting advice being given to customers when discussing various insurance options that may be available in the market. Using an insurance coverage checklist is a recommended E & O loss control practice which, if followed on a consistent basis, can help an insurance agency or brokerage better service its customers. In addition to providing better customer service, an insurance coverage checklist can also be invaluable if an agency or brokerage is forced to defend itself against an E & O claim alleging that it failed to obtain the proper type of insurance coverage. In fact, many professional liability insurers that provide insurance coverage to agents and brokers commonly ask on their application whether the agency or brokerage uses insurance coverage checklists. For example, the application for a very well known professional liability insurer specifically asks the following question: “Does the agency use a coverage checklist on all commercial accounts?� Other insurers also ask similar questions concerning the use of insurance coverage checklists for both commercial and personal lines accounts. Accordingly, every insurance agency or brokerage that is not currently using insurance coverage checklists should seriously consider implementing the use
of coverage checklists when discussing coverage options with a client or a potential customer. There are many sample insurance coverage checklists that are available for agencies and brokerages. In fact, coverage checklists (and other risk assessment tools) are available for purchase from such companies as IRMI, FC&S, Rough Notes and SilverPlume Sage. Also, the national association of the Independent Insurance Agents and Brokers of America (IIABA) offers a number of sample insurance coverage checklists and other risk assessment tools; the address for that web site is www. IIABA.net. A word of caution should be raised, however, since each agency and brokerage has its own distinct clientele and/or unique type of business, there is no form checklist that fits every agency or brokerage. An agency or brokerage that seeks to implement the use of coverage checklists should review the sample forms available and then modify them to fit the framework of their particular business. These examples should serve merely as templates for an agency or brokerage to use in developing its own coverage checklists for its particular clientele. In addition to using insurance coverage checklists for commercial coverage, every agency or brokerage should also be sure to have an insurance coverage checklist that is used for personal lines coverage. In connection with personal lines insurance, ACORD has created a detailed checklist within its Homeowner Application ACORD 80 which if used when writing homeowners coverage provides some of the same benefits that checklists provide. Insurance coverage checklists should be used by producers and those at the agency or brokerage who provide service to customers whenever they are discussing insurance coverage options with existing customers and potential customers either a face-to-face or by telephone. If the coverages contained on 25
the checklist are reviewed in person with a customer, a good practice is to have the customer sign and date the form to acknowledge that the coverages were reviewed with them. If the insurance coverage checklist is discussed over the telephone, the agency or brokerage employee who has the discussion should be sure to note the date and time that the checklist was reviewed with the customer. Once reviewed with the customer, the agency or brokerage should be certain to maintain a copy of the insurance coverage checklist that was actually reviewed in a customer’s file. When using insurance coverage checklists, an agency or brokerage should always be cognizant of the constant theme running throughout all good E & O practices – that theme is “consistency.” What we mean by this is that these checklists should be used uniformly by all employees throughout the agency or brokerage to ensure that insurance
coverage options are reviewed and discussed with all customers and potential customers. Conclusion For the reasons we have discussed, it is our recommendation that every agency or brokerage seriously consider using insurance coverage checklists on a regular basis. In our experience, such a checklist may be the “Get Out of Jail Free Card” that an agency or brokerage needs in defending an E & O claim or lawsuit. A checklist can show that a particular type of coverage was discussed with a customer or potential customer but then declined. An agency or brokerage that uses insurance coverage checklists will not only help protect itself against potential E & O Claims and lawsuits, but will also provide better customer service and in addition likely sell more insurance. The law firm of Keidel, Weldon & Cunningham, L LP specializes in the defense of insurance agents and brokers in connection with E&O claims and lawsuits and regulatory matters. You can contact James C. Keidel by telephone at 914-948-700 and by email at jkeidel@kwcllp.com or Christopher B. Weldon by telephone at 203-869-2200 and by email at cweldon@kwcllp.com.
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InVEST, a 501 (c)(3) non-profit, is supported by financial contributions from insurance companies and individuals, in addition to the active involvement of hundreds of insurance professionals. For volunteer and donor opportunities visit www.investprogram.org.
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Agency News Hickock & Boardman Announces New Stockholder Hickok & Boardman Insurance Group is proud to announce the addition of new stockholder: Jeff LaBonte. “We are very excited to welcome Jeff as a new owner; his superb dedication to our customers and organization have been a vital component to the growth of our organization,” said Scott Boardman, President of the agency. Hickok & Boardman Insurance Group is comprised of Hickok & Boardman and Denis Ricker & Brown; both local Vermont agencies founded in the 1800’s. “Jeff has made a distinct impression on our clients since joining us in 2007.” Boardman added. Jeff Labonte
Born and raised in New Hampshire, Jeff LaBonte joined the agency in 2007 as a Commercial Sales Execute responsible for the business development of medium size clients.
LaBonte has over 15 years of experience in the finance and insurance industry and is a licensed Certified Insurance Counselor; he graduated from St. Michael’s College with a B.S. degree in Business in 1998. LaBonte currently resides in Essex with his partner Jen, and their four children. He participates annually in The Lake Champlain Dragon Boat Festival and Santa Night. He is also an active volunteer for The Boy Scouts of America Troop 635.
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Agency News Barbara Miller Recognized with Safeco Award of Excellence Barbara Miller, Personal Lines Manager at The Richards Group in Brattleboro, VT has earned the Safeco Insurance Award of Excellence for her superior underwriting skills and long-term commitment to Safeco® Insurance for the third consecutive year. This prestigious award recognizes those individuals with excellent underwriting skills who have developed a solid underwriting partnership with Safeco and whose agencies have qualified for the Safeco Insurance Premier Partner Award, the company’s top recognition program. Agents who earn this designation will have the ability to make selected underwriting decisions, in addition to being recognized publicly as an Award of Excellence recipient.
Miller, a resident of Brattleboro, joined The Richards Group in 1977. An Accredited Customer Service Representative (ACSR), Miller is highly qualified to meet the complex insurance challenges facing today’s consumer. She helps The Richards Group deliver customized insurance solutions from many of the country’s finest insurance companies at competitive prices. “Barbara’s expertise, skill and dedication have been a true asset to The Richards Group and our clients,” said Peter Richards, Vice President. “We’re honored to have Barbara on our award-winning Personal Lines team.”
Company News Vermont Mutual Recognized by Ward Group as a Top 50 Insurer for Seventh Consecutive Year For the seventh consecutive year, Vermont Mutual Insurance Group® has been recognized as one of the top 50 Property and Casualty insurers in the United States by Ward Group, one of the industry’s most respected benchmarking organizations. Ward Group, an Aon Hewitt company, is the leading provider of operational and compensation benchmarking and best practices services for insurance companies. Every year Ward Group identifies the industry’s top insurance companies through a comprehensive financial analysis of over 3,000 property and casualty insurers situated in the United States. The Ward’s 50® recognizes safety, consistency and superior financial performance. Vermont Mutual President & CEO, Daniel C. Bridge, stated “we are very pleased to again be recognized as a top performing insurance company by Ward Group. It is an honor we share with our agency partners, who along with our entire team at Vermont Mutual, play an integral role in our success. Bridge continued, “even as insurers throughout the U.S. contend with an uncertain economic climate and, at
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times, unprecedented weather events, Vermont Mutual remains committed to providing financial stability for our policyholders and our agent-partners. The Ward’s Top 50 designation is further confirmation of our commitment to remain a financially secure and stable insurance company.” Companies recognized by Ward Group go through a stringent evaluation that factors growth, profitability, operational efficiency and financial strength over a five year period. As a recipient of the Ward’s 50® designation for seven consecutive years, Vermont Mutual has once again affirmed its position as a leading provider of automobile, homeowner and business insurance in the Northeast, and ranks their performance in the top tier of all companies nationwide since 2009.