GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION
AUGUST 2017
Seasons May Change, But Our Commitment to the Independent Agent Channel Remains the Same...
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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.
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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
In This Issue: August 2017 4
Message from the President
6 Annual Meeting Announcement 600 Blair Park Road Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org VIAA Officers President Peter Richards Vice President Erin Odell Secretary/Treasurer Paul Plunkett IIABA & PIA State National Director Ron Bixby
Directors Chip Ams Daniel Rodcliff Alan Kinney
6 Newsflash: VIAA Wins Education Award
Features 10 Auto Policy Coverage for Indirect Losses 15 Young Agents’ News Brief 19 When Can a Carrier Deny a Claim Based on Faulty Workmanship 25 Sales Success: Motion Creates Emotion 28 E&O Corner 32 Shakin’ In Your Shoes
Company News 35 Vermont Mutual
Help Wanted
Staff
38 The Essex Agency
Executive Director Mary Eversole meversole@viaa.org
39 Crowley Insurance Agency
GMA Publication Design
39 The Richards Group 41 Noyle Johnson Group
LONDONmiddlebury londonmiddlebury.com
Message from the President and opening a state of the art training center with the support of Vermont Mutual. The best part of this last year, and truly my entire tenure on the board is the connections with other agents I get to make regularly. Vermont is a small state and we’re lucky to have the good fortune to connect as much and as well as we do with other people in our industry. It’s easy to feel isolated from what happens elsewhere being located in the very southeastern part of the state. Serving on the VIAA Board, has allowed me to meet and connect with many agents I may not have otherwise come in contact with except for a golf tournament or an agency council. I’d like to say I’m a better insurance professional for the relationships I’ve made on the board and being involved in the association. “Great is the art of beginning, but greater is the art of ending.” -Henry Wadsworth Longfellow
It’s My Turn to Say Farewell My term as VIAA President will end at our Annual Meeting next month and I will leave the board after nine years. I’ve been thinking about my time as a board member of this great organization. There have been many “Kodak” moments. Over the last several years, we’ve gone through a tremendous amount of change. Some of it was not easy, but it was necessary to guarantee the perpetuation of VIAA. I believe we are stronger because of it and operating better than ever. It’s provided the opportunity to be entrepreneurial in several ways: grow the next generation of leaders with the Young Agents Committee, making our voice heard with legislators like never before, 4
I would be remiss if I did not recognize the heroine of VIAA, Mary Eversole our Executive Director. I was fortunate to be involved in the hiring process that brought her to our wilting organization. She was thrown in to the deep end of the risk pool with the implementation of health care in Vermont during her first few weeks. Mary took that challenge head on and ensured that agents stayed in the marketplace and would be compensated for their expertise. That passion and dedication to us as independent agents continues today. She has led us through tough times, fun times and put us in the black financially. VIAA is lucky to have her at the helm. We would not be where we are today without Mary’s tenacity and spirit. My thanks go out to you, the members and our company partners, for without you, VIAA would not exist. It has been my pleasure to serve you. All the best, Pete Richards VIAA President
VIAA will hold its Annual Meeting, Thursday, September 14, 2017, 11:30 am – 1:30 pm, at the Lake Morey Resort, 1 Clubhouse Rd, Fairlee, VT 05045. Our featured speaker is Chris Rouleau, Deputy Commissioner of Insurance, Vermont Department of Financial Regulation. We will also be joined by Spencer Houldin, Big “I” Chairman. The primary agenda of the meeting is to review our 2017 Membership Survey Results and install our new officers, including incoming President Erin Odell from The Odell Agency. This agenda and or topics listed here are subject to change.
Invitations to this event will be sent to each principal member and company partners. Please RSVP. I look forward to seeing you in Fairlee. Sincerely,
Pete Richards VIAA President
Newsflash VIAA Wins National Education Award The Independent Insurance Agents & Brokers of America has announced that VIAA has earned a Gold Level Excellence in Insurance Education Award this year. The award recognizes the outstanding contribution that VIAA makes to provide quality insurance education in the area of class offerings, continuing education (CE), 6
professionalism, designation offerings, industry collaboration, planning goals, marketing, resources and more. VIAA will be presented the award at the Big I Fall Leadership Conference in Chicago in September.
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Reach out to your Territory Manager or Agency Specialist, or visit Safeco.com, to learn more. The audience for this information includes insurance agents and brokers nationwide and is therefore general in nature. Every agent and broker is responsible for knowing the guidelines and laws that govern rating, underwriting, and claims handling in their states. Coverages and features not available in all states; see the Product Guide(s) for details. ©2017 Liberty Mutual Insurance AP 300783 SMART2 2017/01
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Feature Article Auto Policy Coverage for Indirect Losses
In one of my first blog posts, I discussed coverage for indirect or consequential damage under homeowners policies. Recently, this question came through the Big I’s Virtual University (I’m paraphrasing for brevity): “One tire on an insured’s all-wheel drive vehicle was damaged in a covered collision loss. The carrier offered to pay for two front tires, with an allowance for betterment. The manufacturer and tire retailers say all four tires should be replaced at the same time. The insured believes that the insurer, having agreed to pay for two tires, must now agree to pay for four new tires, less betterment. Who is correct?” The ISO Personal Auto Policy (PAP) says that the insurer “will pay for direct and accidental loss….” The ISO Business Auto Policy (BAP) has similar language. Both cover only DIRECT damage. In this case, only one tire was directly damaged, so there should be no coverage for the consequential loss via manufacturersuggested replacement of the undamaged tires. The policy does not cover compliance with manufacturer recommendations. Unfortunately, unlike the “pair or set” clause in the ISO HO forms discussed in my prior article, there is no similar coverage in ISO’s auto policies. However, the carrier has already gone on record as saying it would pay for a second tire, though the logic of this offer is unclear.
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Is it possible that they have established a precedent that could extend to all four tires, depending on the rationale for replacing the second tire? What do you think?
111th Annual Convention & Golf Tournament September 21 & 22, 2017 Hilton Burlington
Corralling Cyber Space SADDLE UP COWBOYS AND COWGIRLS! Join us for a rootin’ tootin’ good time. Round up your boots, wranglers, western shirts, and cowboy hats to wear and mosey on over to the Burlington Hilton. Come in your best western wear and win a prize! Approximately 300+ member agents, Young Agents, and company representatives join together to network and learn. This event is an invaluable opportunity for insurance professionals of all ages, titles, and experience levels and is a must-attend for all independent agents. See y’all real soon!
REGISTER NOW FOR VIAA’S LARGEST AND MOST ANTICIPATED EVENT OF THE YEAR! www.viaa.org
InsurPac
PROTECT YOUR COMMISSIONS & YOUR AGENCY The U.S. Congress regularly considers legislation that directly affects the livelihood of Vermont’s Independent Agents.
InsurPac raises money to contribute to candidates running for federal office, increasing agent visibility on Capitol Hill and empowering members to participate in the political process. Elected officials who receive InsurPac support might not always vote with agents, but it does enable the Big “I” to constantly remind officials about where agents stand on important issues.
GIVE TO InsurPac TODAY – InsurPac WORKS FOR YOU! What does InsurPac Do for Vermont’s Independent Agents? Vermonters need flood insurance. They cannot buy a home without it in many cases.
NFIP is set to expire in September 2017. Agent Compensation is on the chopping block. Your donation to InsurPac will help the Big “I” Government Affairs team beat back and minimize damage to the Write Your Own Program. Most importantly they are working to protect your commissions!
The Federal Crop Insurance Program protects $32 million of liability on growing crops in Vermont. It insures 77,125 acres of farm land that produces dairy products, maple syrup, apples and more. Agriculture is an important part of Vermont’s economy and agent livelihood. The Federal Crop Insurance Program (FCIP) continues to be the bullseye for budget cuts. In 2015 the Big “I” led the charge in opposing cuts to the crop program and protecting agent commissions. They continue that work today advocating for a strong FCIP with agents as the sole sales force of the program. Contributing to InsurPac allows them to do that for you. Tax Reform is heating up in Congress. The majority of VIAA member businesses file at individual tax rates since they are organized as S-Corps, Partnerships, or Sole-Proprietorships. The Big “I’ is urging Congress to address individual tax rates for small businesses like yours along with corporate tax rates. The Big “I” believes that any tax code overhaul should provide simplification and certainty for individuals and small businesses like your C-Corporation counterparts. Otherwise this creates an unequal playing field. Level the playing field by donating to InsurPac.
GIVE TO InsurPac TODAY – InsurPac WORKS FOR YOU! The VIAA Board of Directors has set a stretch-goal for InsurPac this year. Our goal is $8800. Please help us meet that goal today. A reasonable investment today helps protect your bottom line tomorrow.
GIVE TO InsurPac TODAY – InsurPac WORKS FOR YOU! Questions? Please contact: Paul Kendall, Vermont InsurPac Chair, Lawrence & Wheeler, 802.885.2178 Mary Eversole, Executive Director, VIAA, 802.229.5884 Nathan Riedel, InsurPac, Big “I”, 202.863.7000
All forms of payment must be by personal check, credit card or non-incorporated LLC or Partnership check. Contributions or gifts to InsurPac are not deductible as charitable contributions for purposes of federal income tax. Federal law requires us to use our best efforts to collect and report the name, mailing address, occupation and employer for each individual whose contributions aggregate in excess of $200 in a calendar year. Your contribution should be considered strictly voluntary.
VIAA Young Agent Featured in IA Magazine Congratulations to Aislyn Vaughan, VTYACS, Vice Chair!
What do you love about insurance? Vermont is made of small businesses. It’s buy local, shop local. We don’t even allow Target in our state. So many people have more than one job. I’m a yoga instructor and a dance teacher as well—it’s just part of our community. It’s the way we function here. I go from contractors to waffle stands at farmers markets to boat washes to dance teachers to nurses. My book of business is all over the place.
Millennial stereotype that fits you? Have you ever heard the Ralph Emerson quote, “What lies behind us and what lies before us are tiny matters compared to what lies within us”? I think that’s so us. We’re made of something else. We’re willing to get the work done to make our customers or clients happy—we’re just not willing to give up who we are as a person. My parents immigrated here from Ireland in their early 20s to give us greater opportunities. They made things happen for us just by moving here and supporting us, no matter what the dream was. Why wouldn’t we want to take advantage of that?
Industry’s biggest challenge?
Aislyn Vaughan Commercial Lines Account Manager Nfp Property & Casualty Insurance Services, Inc., St. Albans City, Vermont Age: 26 iPhone or Android? iPhone Favorite streaming service? Spotify or Netflix What’s in your earbuds currently? “Bring Your Love to Me” by The Avett Brothers 14
We have a lot of people retiring at a very fast rate, and we don’t have people filling those positions. If you’re only willing to hire people with three to four years of experience, you’re going to find yourself without a staff. Agencies need to put the work in to recruit people who will want to make this a life career. Millennials want to feel challenged and inspired. We want to know our work is fulfilling and has a purpose and makes a difference in someone else’s life. We don’t want to sit there and feel like we’re just a cog in a machine.
Young Agents Night at the Lake Monsters Come Join the Fun at the Second Annual YAC Night at the Lake Monsters!
Wednesday, August 16, 2017 @ 7:05 pm Centennial Field Open to active VTYACS - Family + Friends Welcome Includes BBQ Limit 4 tickets per YAC CHECK YOUR INBOX FOR REGISTRATION INFORMATION For information, contact Kody Lyon Sponsored By:
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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 agency—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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Feature Article When Can a Carrier Deny a Claim Based On Faulty Workmanship? By Big “I” Virtual University Faculty An agency insures a heating and cooling contractor. In spring 2015, the insured took over maintenance of a commercial office building, including a heating and cooling tower that had been installed in 1999. The heating and cooling system had not been well maintained, and the insured installed a new heat exchanger in 2015. In fall 2016, the insured winterized the system. Some water remained in the system—likely from a valve that wasn’t properly closed—and it froze over the winter, which damaged the heat exchanger the insured installed in 2015. Q: The damage to the heat exchanger was discovered in March 2017, when we reported the claim to the general liability carrier (CG 00 01 04 13). Now, the carrier is denying coverage for the damage to the heat exchanger based on three arguments: 1. There is no “occurrence” because of faulty workmanship. 2. Even if this was an occurrence, the Your Work exclusion would apply. 3. Even if the Your Work exclusion was not applicable, the Your Product exclusion would apply.
Is the carrier correct to deny the claim? Response 1: Carriers readily deny coverage
for damage involved in work claims based on an array of court decisions, and they are frequently wrong in their denials. Adjusters aren’t attorneys, and these same individuals often lack an elementary understanding of the commercial general liability policy. Worse, claims units often lack core industry text or reference materials that address important coverage elements—including, notably, reference materials that address broad form property damage. The International Risk Management Institute (IRMI) has a wealth of material that addresses broad form property damage, damage to work, faulty workmanship, the Your Work exclusion and more. The “Commercial General Liability Coverage Guide” by Donald Malecki—as well as Malecki’s long-term publication, “Malecki on Insurance”—also addresses the subject. Fire, Casualty & Surety manuals address the same list of topics, although not as thoroughly as IRMI. In the late 1970s, ISO published Circular CG 79-12, “Broad Form Property Damage Explained.” The description addresses the pre1986 policy form, but it’s still an excellent source document. Broad form property damage was added to the commercial general liability policy in the 1950s-1960s as a means of keeping an insured contractor in business. An additional property damage premium is charged to incorporate valuable additional protection in the policy. This coverage was added by endorsement for decades, then incorporated in the 1986 policy. You may be aware that property damage liability premium is very profitable. Do not argue law with the claims department. Use industry reference and text sources to educate your adjusters. I find insurance company personnel’s understanding of this issue on par with house plants. If they 19
wrongfully deny the claim, you may have grounds for a bad faith lawsuit. Response 2: Check out “The ‘NoOccurrence’ CGL Claim Denial” by Bill Wilson, and download the chart of state and federal case law. Your state is a mixed bag of appellate decisions until the state supreme court ruled in the 2012 Westfield case. In addition, after ruling in 2001 that faulty workmanship was an “occurrence,” the 6th Federal Circuit Court of Appeals later ruled in 2012 that it was not an “occurrence.” It sounds like the carrier is likely correct. They’re probably also correct that the Your Work exclusion would apply, but we’d need more facts to make that determination—which is moot given the law of the land in Ohio. The Your Product comment makes no apparent sense. Response 3: Based on my reading and understanding of the cause of the damage as presented in the question, if the carrier denies this claim based on faulty workmanship, 20
that’s tantamount to making the coverage illusory—which creates a bad faith situation. Doing so would be an unreasonable restriction of coverage. Based on that logic, any failure to execute winterizing or most other normal activities to perfection would be excluded. The question seems to indicate that the damage had nothing to do with the workmanship related to installing the exchanger. Based on your description, it sounds like the damage resulted from improper winterization work undertaken some months after the installation was complete and the system was put to its intended use. That’s not faulty workmanship— it’s unexpected and unintended damage during routine maintenance, just as if they were working on an exchanger installed by someone else. The damage had nothing to do with the installation of the exchanger—it resulted from improper winterization work. If the carrier is threatening to use exclusion l. Damage to Your Work, they’re also nuts. This exclusion essentially applies if the work is damaged by something that is part of the work.
It’s a business risk exclusion: “’Property damage’ to ‘your work’ arising out of it…” The exchanger didn’t damage itself because of something the insured did as part of the installation. The freezing of water after improper winterization is what damaged the exchanger. Regarding the Your Product exclusion, I don’t know many people who don’t consider the HVAC system part of the building, and thus real property. The Your Product exclusion applies to personal property. If the carrier is trying assert the CCC exclusion (j), that’s also crazy. Exclusion j.(5) is an operations exclusion (“are performing operations…”). This was a completed operations loss. Same with exclusion j.(6). Again, based on how I understand the situation, the carrier owes for damage caused by improper winterization. I think the Department of Insurance should have a go at this one. Response 4: The insured’s “work” in this case was winterizing the heat exchanger. That work was not damaged, so the exclusion does
not apply. If part of the repair bill includes the cost of winterizing the exchanger again, then that portion of the cost is excluded. The insurer is arguing that the heat exchange is always included in the definition of “your work” because the insured installed it in the past. But I think you’ll find this connection ends once the original installation is complete. A new and discrete operation on the same property would not invoke the “your work” exclusion. To do otherwise would produce absurd results. If a carpenter went out to repair a house they had built 25 years prior and accidentally damaged it, that damage would be covered—just as if the same situation involved a house they had not built in the first place.
This question was originally submitted by an agent through the Big “I” Virtual University’s Ask an Expert service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.
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Are you ta king a d va nta g e of your m em b ership ? Big “ I” Professiona l Lia b ility
www.ind ep end enta g ent.c om / EO As a member of your state association, you have access to the Big “I” Professional Liability program, the most respected and comprehensive program in the business, offering a variety of insurance agent’s E&O products that are hand-selected for their superior reputation and exceptional performance. With comprehensive rates and a long-term market, the Big “I” Professional Liability program is properly positioned to meet your professional needs, protecting the future of your agency.
Big “ I” Ma rkets
www.b ig im a rkets.c om Exclusively available to Big “I” members, IIABA’s online market access program features specialty/niche coverages, program business and hard-to-find markets. Unlike similar programs, there are no registration fees, no minimums, and you own your expirations. In many states, additional markets are available through Big “I” Eagle Agency.
Big “ I” Flood
www.ind ep end enta g ent.c om / Flood Big “I” endorsed Selective Insurance has been a Write Your Own carrier (WYO) for the National Flood Insurance Program (NFIP) since 1984 and is one of the top 10 writers of NFIP policies. Selective makes writing flood insurance easy through quality customer service and superior technology. Together, Big “I” Flood and Selective’s relationship helps deliver members an unparalleled flood program by offering state-of-the-art processing, dedicated underwriters (not a TPA call center) and localized flood Territory Managers providing you with the knowledge and expertise needed to effectively speak flood.
Big “ I” Retirem ent
www.ind ep end enta g ent.c om / Retirem ent Big “I” Retirement Services, LLC has partnered with national firms to provide a unique member-only plan that simplifies the plan sponsor’s administrative responsibilities while limiting your fiduciary exposure. The Big “I” MEP 401(k) Plan is sponsored by Big “I” Retirement Services, LLC. It is a multiple employer plan also known as the MEP, which is a great way to lower your overall retirement plan costs while receiving consulting, helpful educational tools and low cost investment options. By partnering with Mesirow Financial, a 3(38) fiduciary and MVP Plan Administrators, a customer service oriented record-keeper, the Big “I” MEP 401(k) Plan is designed to maximize cost savings and our unique association design.
Big “ I” Em p loyee Benefits
www.ind ep end enta g ent.c om / Em p loyeeBenefits The Big “I” Employee Benefits program provides full service group benefits for our member agents. Our program is underwritten by The Guardian Life Insurance Company of America, a multi-line insurance group with many years of experience in the business and administered by a dedicated service team just for Big “I” Members. Offering Group Life, Group Short- and Long-Term Disability, Group Dental and Group Vision, the program offers varying lines of coverage options to meet the diverse needs of our members and also provides guaranteed issue with certain requirements being met. Whether you are a new member or an existing one, we quote and add coverage on a continuous basis.
Big “ I” Persona l Um b rella
www.ind ep end enta g ent.c om / RLI RLI’s PUP stands atop the existing homeowner and auto insurance to provide an extra layer of personal liability protection for the insured and their family. With RLI’s PUP program, the insured can maintain their auto or home coverage with any company they choose, provided they agree to maintain the mandatory minimum underlying coverage limits. Limits up to $5 million ($1M in NM) and UM/UIM coverage available.
Big “ I” Hom e Business
www.ind ep end enta g ent.c om / Hom eBusiness RLI’s Home Business Policy provides affordable coverage for those people who operate small home-based businesses. Insureds often believe their existing homeowners or apartment-dwellers policy will cover any loss or damage to their business equipment, furniture and supplies in the event of fire, theft or other catastrophe, when in fact, those policies usually explicitly exclude coverage for any business exposures on their premises. Partner with us to offer this important coverage to your clients.
Big “ I” Business Resourc es
www.ind ep end enta g ent.c om / Ad va nta g e Enjoy member discounts for a variety of services to assist in managing your agency. Caliper (personality testing and human resource consulting); DocuSign (eSignature); UPS (express delivery); Mines Press (printing); Virtual Risk Consultant (agency checklists and marketing tools); Hertz (rental car service); Big “I” Career Center (insurance jobs board) and more. Members are also encouraged to connect with Insurbanc, the FDIC insured bank founded by agents for agents. Visit www.insurbanc.com.
THE MEETING SPACE YOU’VE BEEN LOOKING FOR
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Everything you insure is on your shoulders
Who do you trust to have your back? VIAS offers the most prestigious Errors & Omissions carrier(s) in the country: Westport Insurance Company & Utica National Insurance Group
For a quote or for more information contact Helen Collins at hcollins@viaa.org or 1-844-609-1481
www.iiaba.net/eohappens
VIAS is a subsidiary of Vermont Insurance Agents Association viaa.org
Sales Success: Motion Creates Emotion By Phil Schuman
Anyone who has spent any time as a salesperson knows although it can be a highly rewarding profession it is far from being an easy job. If our prospects wanted to buy what we’re offering they would have already bought it! The only way to be successful in sales is to be prepared to deal with the inevitable rejection as well as the successes – it’s a package deal in the game of sales! One thing we can do to help us maintain the right mindset when dealing with the ups and downs of selling is to understand and use to our advantage the connection between mind and body and how we can successfully influence them both. Have you ever noticed the difference in how you feel between the days you exercise before work and the days you don’t? Just rolling out of bed having hit snooze five times and stumbling to your desk to start work in auto pilot is what many salespeople do, but it makes life much more challenging and encourages us to stay feeing lethargic and directionless. Finding an exercise routine before your work day starts can make a tremendous difference to the entire day ahead in the added energy it can give you and the positive frame of mind it can help you maintain. When you exercise, your body releases endorphins which interact with the receptors in the brain that not only reduce the perception of set backs or
rejection but also helps fight stress and gives us energy. Endorphins are a salesperson’s best chemical friend – they’re free (and legal!) and can change the course of your sales day and your entire sales career. Exercise means different things to different people, but the important thing is you’re getting your body moving before you start work. Maybe this means going to the gym, or maybe taking your dog for a walk or going for a run around the block. Even just doing ten push-ups when you get out of bed can put you in a totally different frame of mind. Maybe it means listening to Outkast loud and throwing your hands in the air like you just don’t care! Whatever it takes, just get the endorphins flowing! The benefit is not only the physical added energy it gives you but also small feelings of accomplishment first thing in the day help establish a positive framework for further accomplishments to come. We all sometimes feel a slump in the middle of the day. Anytime you do you can combat it by moving around. Stand up to make your next set of calls instead of slouching at your desk. Take a break and walk around your desk five times or walk around the office. As Ben Affleck says in his pep talk to his new sales recruits in the movie Boiler Room: “Move around. Motion creates emotion!” There’s a good reason Tony Robbins jumps up and 25
NFP, a leading insurance broker and consultant that provides employee benefits, down on a trampoline backstage before he’s about property & casualty (P&C), retirement, and of enthusiasm.” Sometimes in sales we need to to perform in front of an audience – it’s not just dig deep to send find that well of energy Please your resume to: when things individual insurance and wealth management for solutions fun! Just like how we need to feel when we’re aren’t going our way the free and unlimited is currently seeking an experienced Dan Rodliff on the phonesLines or headed into anto appointment, of endorphins is a gift we should get Personal Producer advance hisit or resource Vice President, P&C gives him immediate energy to perform at his very into the habit of usingNFP daily to help prime the her career as a Commercial Lines Producer best. If we’re motionless throughout the day and PO Box 2243 in its South Burlington office. This position well!proactively, and great results will quickly follow! feeling sluggish with no feeling of energy it’s much South Burlington, VT 05407 is responsible for generating sales for harder to feel and then communicatenew enthusiasm Or Commercial Lineswe’re policies and requires andall passion for the product selling. the ability to work closely with clients, Email: dan.rodliff @nfp.com customer service representatives, producers, “Your energy introduces you before you even Happy Selling! management, insurance speak.” Your generaland energy is pickedcarriers. up by yourThe work environment professional and very prospects and customers is and it speaks volumes, The Schuman Group empowers and inspires sales supportive. candidate have often even louderThe thanideal the actual words should we speak, teams with proven strategies and real world tools excellent interpersonal skills, {2+} years as to how interested they feel they should be in of through sales training, coaching and consulting what you’re presenting to them. guru Brian experience, and ability toSales adapt to emerging services. www.schuman-group.com Tracy says: “Sales is nothing than a transfer technology. They willmore be supported with commercial lines training and mentoring for prospect/planning, sales calls, proposals and education. A property and casualty license is required. NFP offers a highly competitive compensation and benefits package.
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With Coverage Comes Responsibility Have you ever tried to remember what it was like before you started your insurance career? What kind of knowledge did you have about reporting a claim or changes in your personal or business circumstances? Probably about as much as the average insurance consumer and if you were lucky, you didn’t have to learn from personal experience.
of all E&O claims stem from non-payment of premium. How does this happen? By way of magical thinking, some insureds make an assumption that you will keep their policy in force for them, even if they don’t make their payments. An uncovered claim due to a lapse for non-pay can quickly turn your somewhat sophisticated business client into a selfproclaimed dullard who allegedly had no idea that coverage ceased when the third notice of non-payment arrived. Therefore, it’s important to make it clear upon binding and issuing the policy that is responsible for making premium payments, where the payments should be sent, and what the consequences of a lapse are.
As an insurance professional, one of your responsibilities to your clients is to educate them about their responsibilities. As rudimentary as it may seem to you, many of the duties expected of our insureds are not obvious to them. Their minds are on their businesses, their families, the economy or their homes. And if you recall, the urge to tear open and read one’s insurance policy when it arrived was not particularly compelling. Many insureds won’t ever read the policy that you send them until they suffer a loss and that reality is what often leads to an E&O claim for you.
What about reporting changes? Whose responsibility is it to keep an up-to-date listing of inventory, autos, locations, or employees? Of course the answer is the policyholder. But do they know that? What happens when your insured moves or adds a new dimension to their business operations? The human condition lends itself to vague and fleeting thoughts of calling one’s insurance agent during these events but the demands of time and progress often get in the way. If your insured hasn’t read their policy, they may not even know that they have a contractual duty to report changes. A common mistake is for insureds to assume that it’s good enough to report changes at renewal only. Make it a practice to enlighten your customers by pointing out policy language that describes these duties and what the consequences are for not complying with their insurance contract.
Take something as simple as making premium payments. Everyone knows that insurance costs money but does your client know that if they don’t pay their premium, no one else will? Statistics from a study from the Independent Insurance Agents and Brokers of America & Swiss Re show that about 7%
Probably the most important responsibility you can teach your customers is what to do in the event of a claim or potential claim. If you’re doing your job, your customers will know that there are specific actions they need to take when their auto is in an accident, when their employee is injured or a fire destroys their business. The
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worst possible time for your insured to learn what to do is after that devastating loss. This is not only because of the emotional turmoil accidents bring but especially because the agent is usually the one at the top of a short list of people to blame when your insured discovers that becoming financially whole again is not a possibility, and that it could have been prevented. Basic policy language that spells out duties in the event of a claim is a great place to start in discussing this issue. Even the most experienced in the industry sometimes forget that admitting liability, failing to take action, or documenting common sense interactions can
be fatal. If the best among us are vulnerable, think about your average insured.
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Feature Article Claims Happen: Shakin’ In Your Shoes
client accepted some but rejected others, specifically rejecting the building code cover.
What are the major issues in this case?
An insurance agency’s client purchases homeowner’s coverage This is a case that will turn on the relative to protect his $1 million home credibility of the parties. Will the jury believe that the agent offered the building with an HO2 from a major carrier. coverage and the client declined it, or During the sales process, the agent code will the jury believe that the client purchased discusses every other possible every coverage offered and that he would have purchased building code coverage if it option with the client, including had been offered. Does the agent have a legal earthquake coverage, sewer backduty in this jurisdiction to offer coverages that up protection, flood and excess the client has not specifically requested? flood coverage, and building code What were the root causes of the loss? coverage. The client elects to include earthquake, sewer and flood In this case, the loss is caused by the client’s cover to his policy, but decides against the building code coverage. own refusal to buy the necessary coverage, During the policy period, an earthquake causes structural damage to the home. Immediately following the quake, the local government changes the building code to require certain structural reinforcements that will add $100,000 to the cost of rebuilding the home. The carrier pays for the reconstruction cost, but denies the portion of the claim for the cost to comply with the new code. In the ensuing litigation, the client testifies that had his insurance agent presented him with the option of building code coverage, he would have purchased it, just as he purchased the recommended sewer back-up, flood and earthquake coverages. The agent testifies that he offered the client every available optional coverage, and the 32
unless the jury doesn’t believe that the agent offered and the client rejected same. Thus, the true cause of the “loss” seems to be the lack of documentation that would nearly conclusively establish the facts in the agent’s favor.
What could have been done differently by the agent? The agent should have sent his client a letter thanking him for his business and reminding him to contact the office if he later decides to purchase the building code coverage for a small additional premium. Armed with such a letter, a court would be likely to find that the agent offered but the client rejected the coverage, and that the agent therefore met the standard of care required of an insurance
professional. In addition, the agent should have carefully noted the conversations in the agency’s computerized note system.
What do you think was the outcome? Ultimately, the jury found that the client was less likely to have actually offered the building code coverage, since a few premium dollars was not really an issue for this client who had purchased more costly coverage for flood, earthquake and sewer back-up. The jury awarded the client the $100,000 for the added construction costs, plus pre-judgment interest, against the agency, but not against the carrier. The attorney representing the agency filed a post-trial motion seeking a ruling that the agency had no duty to recommend the building code coverage and that since the client didn’t request the coverage the agency cannot be found liable to the client. What is the law about an agent’s duty in your jurisdiction?
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Company News
Vermont Mutual Recognized by Ward Group as a Top 50 Insurer for a Ninth Consecutive Year For Immediate Release July 19, 2017 Media Contact: Thomas Thamm (802) 229-8975 tthamm@vermontmutual.com MONTPELIER, Vermont (July 19, 2017)—For the ninth 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, an Aon Hewitt company and one of the industry’s most respected benchmarking organizations. Every year Ward Group identifies the industry’s top insurance companies through a comprehensive financial analysis of approximately 3,000 U.S. property and casualty insurers. The “Ward’s 50®” recognizes insurers for their consistency, safety and superior financial performance. Daniel C. Bridge, President & CEO of Vermont Mutual, stated “It’s deeply gratifying to once again be recognized as a top performing insurance company by Ward Group. This noteworthy recognition is confirmation of our commitment to managing a financially secure insurance op-
eration for our policyholders, our independent agency partners and our employees.” Bridge continued “We are honored to share this with our employees and business partners, whose combined efforts have allowed us to earn this recognition now for 9 consecutive years.” Every company recognized by Ward Group has passed all safety and consistency screens and achieved superior performance over a five year period. This is the 27th year Ward Group has conducted the analysis. As a recipient of the Ward’s 50 designation for nine years in a row, 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. _______________________________________
Vermont Mutual Insurance Group® is a trade name of Vermont Mutual Insurance Company, Northern Security Insurance Company, Inc. and Granite Mutual Insurance Company. Chartered in 1828, Vermont Mutual is one of the ten oldest mutual property/ casualty insurers in the United States and provides coverage throughout New England and upstate New York. Through more than 400 independent agencies, the Group insures 300,000 policyholders with a direct written premium of more than $435,000,000. The group is rated “A+ Superior” by A. M. Best and a Ward’s Top 50 performing property/casualty for the past nine consecutive years. 35
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HELP WANTED
Experienced Commercial Lines Customer Service Representative Manage small, medium, and large commercial insurance accounts in mid-sized independent insurance agency. Position consists of primary day-to-day point of contact with customers and liaison between the client, carrier and sales producer. Brief Job Description: • Professional and prompt customer service including phone, email, and walk-in inquiries on new and existing client accounts. • Coordinate policy changes, receive and process new claims, and assist as needed on existing claims. • Audit review and processing including audit dispute resolutions. • Handling and processing of surety bond requests including bid, payment, and performance bonds. • Keep precise records of customer interactions and transactions, recording details of inquiries, concerns, and comments, as well as actions taken in the agency management system (AMS 360). • Receive direction from carriers and sales producers to assist in project and/or proposal delivery, policy changes, requests for additional information. • Market all lines of coverage for new and renewal commercial risks including additional lines of coverage. This includes the creation 38
of submissions, preparation of proposals, binding of coverage with carriers, billing and review of policies. • Accompany producers to client meetings both in the agency office and at the client’s offsite location. • Perform other duties as needed. Minimum Qualifications: • Highly organized with excellent verbal and written communications skills. • Sharp attention to detail. • Demonstrated flexibility and adaptability to changing priorities, deadlines, and technology. • Thrives in both a team and independent working environment. • Ability to respectfully resolve problems with clients and insurance carriers. • Proven track record of organizing and prioritizing an ever changing work load. • Minimum three years commercial lines property and casualty experience. • Insurance property and casualty license required. • College degree preferred. Please forward resume and cover letter to: David Holton, CIC, The Essex Agency Inc, PO Box 239, Essex Jct VT 05453 davidholton@essexagency.com
HELP WANTED
Personal Lines Insurance Agent The Crowley Agency has been in business since 1947 providing excellent service and products to our many loyal customers. We currently have an open position for a licensed personal lines agent with the opportunity to grow into commercial lines. The ideal candidate would be personable, possess excellent communication skills and really enjoy helping people. This is a full time postion with office hours and basic computer skills are required. We offer competeive salary, commission & benefits based on experience and qualifications. Please send your resume to Gail McKenna at gailm@crowley agency.com For more details regarding our products and the companies that we represent, please visit our website: CrowleyAgency.com
Recognized in 2016 and 2017 as one of the Best Places to Work in Vermont, The Richards Group is an independent, full-service insurance and financial services agency who has been serving the communities of the tri-state region since 1867. We are always looking for highly motivated individuals who have excellent customer service and relationship building skills. The Richards Group offers a competitive salary commensurate with experience as well as a comprehensive benefits package. We are actively recruiting for the following positions: • Commercial Lines Department Manager, Brattleboro • Commercial Lines Sales Assistant, Brattleboro • Commercial Lines Sales Producer, Rutland
• Commercial Lines Account Manager, Middlebury • Personal Lines Account Manager, Middlebury • Personal Lines Account Manager, Ludlow
• Employee Benefits Account Manager, Rutland For job description and requirement please visit https://therichardsgrp.com/about/careers/ Submit Cover Letter and Resume to jobs@therichardsgrp.com
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HELP WANTED: PERSONAL LINES QUOTING SPECIALIST
• Very competitive salary & benefit package •
Property and Casualty Ins. experience required • Insurance license is a plus
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Position requires good communication skills, computer knowledge &
Noyle W. Johnson Ins. - Attn.: Betty Durkee PO Box 279 Montpelier, VT 05601
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