GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | AUGUST 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...
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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.
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 JULY 2018
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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
Directors Chip Ams Daniel Rodliff Michael Barrett
Staff Executive Director Mary Eversole mary@viaa.org
GMA Publication Design LONDONmiddlebury londonmiddlebury.com
07 On the Hill
08 Feature: Agency Operations
10 InsurTech
12 Young Agents News Brief
16 E&O Corner
19 Claims Happen
23 Insurance Commentary
29 Company & Agency News
33 Now Hiring!
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LETTER FROM THE PRESIDENT AUGUST 2018
It is truly hard to believe how quickly my term of President has passed. It was certainly a busy year, which is probably why it passed in the blink of an eye. We spent a considerable amount of time on the sale of our building in Montpelier. This has strengthened our reserves as we continue to navigate through continued merger and acquisitions. The legislative session kept us busy with S.123, that would have created strict, joint and several liability for any entity that caused a discharge of hazardous or toxic materials. VIAA successfully lobbied against this bill and its eventual defeat. We applauded the Governor’s veto of H.197, a related bill, that would have allowed a person who is exposed to a hazardous substance above background levels due to the tortious action of another to receive medical monitoring for life regardless of whether a disease is likely to occur. VIAA helped defeat another measure that would have impacted the insurance industry. The Agency of Transportation proposed Erin Odell, CIC VIAA President
While there is still much to do, the Board of Directors is invigorated and motivated to tackle issues like the industry talent gap in the next year. Going forward, it is clear to me that VIAA will be in great hands under the leadership of President-Elect Paul Plunkett. legislation that would have allowed the Secretary to waive the requirement of a performance bond for transportation contracts of $1 million or less. The current requirement for such bonds is $100,000. This legislation would have harmed contractors, subcontractors and the state. It would have created a risk of non-payment for projects; eliminated an important guarantee of workmanship; and removed an important tool for ensuring contractor financial capability. It takes a collective effort to make an association like ours thrive, and I think its only fair that special thanks go out to all the volunteer members of the board from across the state for all their hard work and dedication to VIAA. I would be remiss if I did not extend thanks to Mary Eversole, our renowned Executive Director. No matter what we put before her she gets it done. She has made my year very successful. VIAA plays a vital role in our profession. We will continue to monitor legislation that affects our industry. We will continue to invest in our award-winning continuing education program to benefit our members and offer affordable networking. Last but not least we are committed to supporting the Young Agents Committee and fostering the next generation of industry leaders. I thank you all – the members of VIAA – for allowing me to serve you as president over the last year. It has been an honor, a joy, and an experience that I will always cherish. I have met many new, interesting colleagues and enjoyed it to the fullest. I look forward to seeing you at the VIAA Convention in September. 04
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ON THE HILL: FARM BILLS PROTECT CROP INSURANCE By Jennifer Webb
On June 28, the Senate passed its version of the Farm Bill, the “Agricultural Improvement Act of 2018,” by Sens. Pat Roberts (R-Kansas) and Debbie Stabenow (D-Michigan) by the largest margin ever for a Senate Farm Bill, 86 to 11. The bipartisan Senate Farm Bill stands in sharp contrast to the House Farm Bill which the House passed on June 21 by a narrow two-vote margin after the bill failed to pass in May. Only Republications supported the House bill. Of note for Big “I” members, neither the Senate or House bill contains cuts to the Federal Crop Insurance Program (FCIP). The Big “I” and a number of Big “I” state associations sent letters to every member of the House of Representatives urging opposition to any amendments to the Farm Bill that would 1) limit participation in crop insurance, 2) make insurance more expensive for farmers or 3) harm the private-sector delivery of crop insurance.
Many Big “I” state associations also launched targeted grassroots for key Senate offices. The Big “I” also participated in several meetings with members of the Senate and House. Even though both the House and Senate have passed a Farm Bill supportive of crop insurance, it may be some time before a final bill heads to the President’s desk. The bills significantly differ on several contentious issues. This means that the process for reconciling the two bills into something both chambers can approve—and that the President will sign— is likely to be difficult. Changes to the bills—including changes to the crop insurance provisions—are possible during this process. The Big “I” will continue to update members on the status of the Farm Bill and its impact on the FCIP as the process moves forward.
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AGENCY OPERATIONS
THE BEST COACHING QUESTION EVER By Keith Rosen Picture this: One of your salespeople approaches you with a timely, pressing issue. “Boss, I really need your help closing this deal. I’ve been working this for the last year and have it in my forecast for this quarter. Unfortunately, now the customer is pushing back, and I’m not sure what to do. I know you have a relationship with the CFO—can you please call them and help me out here, or just tell me what I need to do?” At this moment, you have two basic options. Option 1: Call the CFO, or tell your salesperson what to do—or, worse, do the work for them, believing it will save you time and allow you to move on to the next task on your plate. The result? Failure. Once someone feels they’re being talked at, they stop listening. If you’re not asking questions, you’re assuming the facts. You wind up solving the wrong problems or providing ineffective solutions. Option 2: “I’m happy to share my opinion with you. However, you’re much closer to this situation than I am, and I trust you and your judgment on this. So, what’s your opinion on how to move forward?” This statement acknowledges the salesperson’s role and accountability, in a positive way—then builds their confidence by acknowledging trust.
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The coaching moment is the question: when you seek to understand your salesperson’s opinion and viewpoint before sharing your own. The mere act of respecting, actively listening and truly wanting to understand someone’s point of view stimulates trust, deeper collaboration and remarkable innovation.
thing like: “Thanks for sharing your opinion on this—I really appreciate it. Let’s walk through that approach together to see how it could play out and create the best possible outcome.”
But most important, that question empowers your salesperson to do the work.
This kind of follow-up enables you to further explore and solidify your salesperson’s solution, without interrogating or invalidating them. Then, together, you can refine and come up with the best possible solution.
Depending on how they answer, follow up with some-
Remember: If they create it, they own it!
Be Precise One important caveat: Make sure you ask for an opinion, not a solution. If you ask someone for an answer, you’ll often hear, “I don’t know.” But even when someone doesn’t have an answer, they always have an opinion. An opinion is neither right nor wrong—it just is. Each word you choose is critical and carries a different meaning for everyone. Precision in your language is critical to successful leadership. —K.R.
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INSURTECH: HOW PARAMETRIC PUTS MONEY IN YOUR POCKET By John Novaria What’s the one thing you can’t live without? It probably took you .07 of a second to answer: “My phone, of course!” Yeah, our phones are indispensable. You can’t look anything up, listen to music, communicate or buy anything without your phone. It’s your lifeline and your constant companion. So let me ask a question, then: Why are we still asked to put down our phones when transacting business? I still drive five miles to my bank, park the car, get out of the car and walk inside to deposit a check because my bank has made it darn near impossible to activate mobile banking for my business account. My dad opened a bank in 1966 and if he were alive today even he would be rolling his eyes. But before we beat ourselves up too much, let’s admit we are getting better at putting the customer experience in the smartphone. There are some great examples in the world of insurance and risk, like Lemonade, Metromile, and GEICO. But – and here’s the big “but!” – there’s still too much friction when the you-know-what hits the fan and a policyholder tries to file a claim. They have to look up a phone number, call the number, sit on hold, speak to three different people, give their policyholder number (who knows where to find their policyholder number anyway?) and wait another 15 minutes until they get some kind of assurance that they are being taken seriously and someone will look into their claim. Or they go to a website and open up one of those dreaded chat windows. Helllooo? Is anyone there? You can bet the uncertainty and delays are only worse when hundreds of people are trying to get online after a major disaster.
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As J.D. Power notes, “most insurers’ digital offerings are lacking in insurance-specific capabilities such as processing claims, effective shopping and servicing of policies.” It shouldn’t be this difficult for the consumer. Fortunately, two breakthroughs have converged that will ease the pain of the interminable claims process: 1. Parametric insurance has shortened the time to payment. 2. Mobile technology has made it immediate. 3. You can now have a claims payment hitting your bank account within hours with no hassle or human interaction. The problem has been around forever: too
many things happen during a disaster that aren’t covered by a typical homeowners policy. With the exception of the dwelling and contents, anything damaged or destroyed isn’t covered. That’s historically put consumers in a bind, until advanced data science and computing came along and made it possible to insure all these additional risks. In fact, if it doesn’t appear in your homeowners policy, a supplemental hurricane policy will cover it. Here’s an example of how parametric and mobile are teaming up to help people recover faster. Let’s say you live in Florida and a hurricane passes through your town and topples a huge tree in your driveway. Now you’re stranded because your car is stuck in the garage. To make matters worse, you lost power, your food is spoiling and you’ve been ordered to evacuate. Few of us would have the cash sitting around to take care of these urgent matters quickly. If you’ve been through a hurricane, tornado or similar disaster, you know the first 24 to 48 hours can be paralyzing. Your world is turned upside down. However, if you had purchased a parametric insurance policy, you can get the money you need almost instantly. There’s no claims process because the computer instantly calculates how much dough you’re eligible to collect. The amount is based on the strength of the storm and its distance from where you live. So, you’re sitting on your front step lamenting your situation when all of a sudden you get a text from your insurer saying you’re eligible for a claims payment. All you have to do is click “accept” and the money is wired to your bank. It’s like “found money” because you even forgot you purchased that parametric policy! And it’s a good thing your insurer notified you by text because your phone is about the only thing you own that’s working at the
moment. A typical parametric policy works this way: • Submit your name and address • Select a limit • Click Buy There’s no underwriting in a parametric policy; the machine already has the information it needs (your name and address) to distribute the correct amount to you if or when there’s a hurricane and you’re affected. Remember, payments are based on the strength of the storm and the distance of the insured from the center of the storm. Parametric insurance is pretty common in business, especially in developing nations and areas that are especially vulnerable to extreme CATs. (See MICRO’s entry into El Salvador with business interruption coverage.). Only recently are insurers recognizing the value it holds for consumers. That’s because it gives people the assurance that they’ll have money in their pocket to handle those surprise expenses that pop up, like needing to buy a generator, repair a pool cage or boat dock, or replant landscaping. Folks like the idea of supplemental parametric insurance because they can use the funds to meet their homeowners deductible, which can run into the thousands. Without the deductible, repair work on your house will be delayed even longer. Thanks to the Insurtech wizards, it’s getting easier to review coverages, match them to your needs and purchase a policy. But the claims piece is more complex and challenging. While the wizards can’t close your homeowners claim with a simple click (yet), they’ve found a way to get you the instant funds you need to get back on your feet. Parametric insurance and mobile technology are pairing to make this possible. Reinsurers like Swiss Re are doing some amazing things with parametric insurance – everything from compensation for delayed flights to pre-disaster infrastructure funding to protecting the finances of African farmers from the vagaries of the weather.
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YOUNG AGENTS
NEWS BRIEF
YAC SPOTLIGHT: IAN SUTHERLAND, CLIENT ADVISOR, HICKOK & BOARDMAN Oldest of four, and the youngest sibling being 11 years old, you could say Ian has a strong sense of family. Ian and his wife Erin of 12 years have four children of their own, Tommy (9), Susie (7), Tucker (5) and Winnie (2). Susie in particular, is very fond of their family pet bunny, Lars Owen McFluffy. Lars has even captivated the hearts of social media and has 72 followers on Instagram! Growing up in a diverse household opened up Ian’s eyes and taught him to not only be more accepting of others but also understanding of other cultures. That diversity helped Ian decide to double major in Business and Psychology at Saint Michael’s College. The business degree would provide various career choices and though he had no intention to become a therapist or psychologist, studying the nuances of individuals and the human mind intrigued him. Ian explored jobs such as roofing, advertising sales, and tech sales before finding the insurance industry. After interviewing for various sales positions, Ian landed on the front steps of Hickok & Boardman. During the interview process, he became attracted to the insurance industry. Working with people was important to him and he knew this could be achieved in a sales role. Today, Ian really enjoys this sales role, stating “no two days are ever the same and the business can be very rewarding. You are rewarded for what you put in and it’s almost as if you’re running your own business.” Ian joined the Vermont Young Agents Committee because he saw it as a networking opportunity at the time. Now that he has been a part of it for a couple of years, he now sees the bigger picture. One of the biggest issues our industry faces is the ever so fast retirement rate and the lack of younger agents
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coming in. He also finds it as a great way to connect with other agents, but also the opportunity to reach out to people who are struggling to decide what career path to go down. He wants to be able to educate them. Ian joined the leadership of the YACs this year as our Legislative Chair. 100% willing to take on this position after traveling to the 2017 Big “I” Legislative conference in Washington D.C. last spring. Ian mentioned that this is a big reason why he continues being a part of the committee. He saw the impact we can make on legislature after spending four days in our country’s capital, meeting with our state’s delegates to ask for their support on issues we face in our industry while also trying to bring positive changes to the state.
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Mark your calendar and make plans now to attend VIAA's 112th Annual Convention & Golf Tournament, “Limitless Possibilities,” September 20-21, 2018 at the Hilton Burlington Hotel in Burlington, VT. At VIAA's Annual Convention, 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, rank, and experience levels and is a must-attend for all independent agents. We hope you can join us! EVENT HIGHLIGHTS: • VIAA is very pleased to announce Sam Glenn as the keynote luncheon speaker! Sam is regarded as The Authority on ATTITUDE, and as often featured guest on TV talk shows and radio programs. • Two half-day continuing education classes. • Golf tournament at the Country Club of Vermont. • Industry tradeshow. • Young Agents Event following the President’s Reception. • A discounted room block is available at the Hilton Burlington. Reserve online at http:// bit.ly/2kmOYJa or call 800.445.8667. FOR GENERAL CONFERENCE INQUIRIES & QUESTIONS: 802.865.5202 or info@delaneymeetingevent.com
REGISTER NOW
FOR VIAA’S LARGEST AND MOST ANTICIPATED EVENT OF THE YEAR! www.viaa.org
Designations of Distinction In Vermont & New England
Click Here to Choose a Location Near You and Register Today!
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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“DUTY? WE DON’T HAVE NO STINKIN’ DUTY!” by Richard F. Lund, J.D.
Vice President, Senior Underwriter, Swiss Re “Badges, we don’t need no stinkin’ badges,” is one of the most famous, and most often misquoted, lines from the 1927 novel by B. Traven, “The Treasure of the Sierra Madre”, and the later great film of the same name starring Humphrey Bogart. When Gold Hat, the bandit leader is asked by the character Fred C. Dobbs, played by Bogart, “If you’re the police where are your badges,” his response is “Badges? We ain’t got no badges. We don’t need no badges! I don’t have to show you any stinkin’ badges!” With my apologies to the author and the filmmakers, a similar sentiment can sometimes be heard when an insurance agent’s customer receives a notice of cancellation. Many times the notice comes at the end of the policy period and is simply a reminder to the policy holder by the insurance company that their policy may cancel at the end of the policy term unless it is renewed prior to that date. These notices are many times required under state insurance laws or regulations. They are relatively innocuous and little more than a perfunctory duty of the insurance carrier pursuant to the terms of the policy. However, there are other times that the notice is more than a just a reminder and in fact is necessary due to non-payment of premium. This is the instance when the customer may utter the words “Notice? We don’t need no stinkin’ notice!” In years past, independent agents acting on behalf of their carriers were responsible for collecting, accounting for, and transmitting premium payments to the insurance companies on a daily basis. At many points during these transactions, due to various factors including the crush of everyday business, errors would be made at every step: Collection: the amount paid would not be the correct amount owed, if paid by check it could be post dated or from a closed account; Accounting: the amounts may not be entered correctly between what was billed and what was collected, the premium calculation could be misquoted resulting in insufficient payment amount; Transmitting: the amount sent to the carrier would be net of the agent’s commission and the calculation would be incorrect, or, heaven forbid, the payment would not be sent to the car-
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rier in a timely basis. At any point in this timeline, an error might be made that would result in the carrier notifying the agent that the policy had been cancelled due to non-payment of the premium and to issue the notice of cancellation. The agency might then issue the notice of cancellation without checking their records to determine if in fact the notice was appropriate. Thankfully for the agents, insurance companies then began the process known as “direct bill”. This effectively took the agency out of the money handling business and reduced the risk of exposure when dealing with monetary transactions. No longer does an agency have to worry when a customer is late with a premium payment and the carrier issues a notice of cancellation. Should the customer come running into the agency late on Friday afternoon with their premium payment, it is no longer the agent’s duty to collect the premium and transmit it to the carrier. Now, the customer is responsible for making sure that timely payment is made directly to the carrier. The agent can leave the office on Friday evening with a clear conscious that all is right with the world. However, there are some agents who create an obligation and an E&O exposure that direct bill had eliminated. Consider if you will the following situation: On March 1 Marc, a long time customer of the All Is Right With The World Insurance Agency, receives a premium notice on his direct bill policy from the FiddleDeeDee Insurance Company. The notice states that if premium is not received by the company by May 1, his policy will be cancelled. Marc places it on his desk and it is promptly covered up by other papers he receives and just as promptly forgotten. The fact that it was forgotten by Marc is not important to him because he knows that his agent, Sharon, will always call him to remind him to pay his bill. (Remember, this is a direct bill policy.) Sharon, who has always called Marc to remind him to pay his bill a week before it is due, is on an ex-
tended vacation to Hawaii celebrating her 25 years in the insurance business and will not return until May 10. On May 5, Marc has a loss and calls Sharron’s office to let her know about the claim so she can report it to the carrier. Sharon’s CSR, Erik, tells Marc that Sharon is out of town and won’t be back until May 10, but he will report it to the carrier. Erik then looks for the file on the agency management system and discovers that the policy cancelled on May 1 due to nonpayment of premium. Erik was going to call Sharon to tell her what happened, but when she was leaving for her trip, she left strict orders that she was not to be contacted for any reason other than for death of a family member or pet. Erik then called Marc and said he reported the claim to the carrier, but it would probably be denied because the policy had cancelled before the loss, and of course it was. In this situation Sharon had created a duty for herself that was completely unnecessary: the duty to notify her customer that a premium was due on a direct bill policy. Although Sharon thought she was being a good agent and providing a good service to her customer, all she had done was create an expectation that until she called to remind him to pay the premium, that the policy would always been in force. Due to that expectation, she was now responsible if he did not make the payment on time. Had she not created the expectation, she would not be responsible. So what should Sharon have done? Assuming that once she took on this obligation to call her customer, she also had a duty to let Marc know that she would not be doing it any longer. She would let him know that the premium notice from the carrier was the only notice he would receive and if he failed to make the payment, the policy would be cancelled. So how should she notify him (and any other customer that she did this for that also had a direct bill policy)? A good thing to do would be to send him (and all others like him) a letter advising him that she would no longer be notifying him by any means, phone call, letter, email or any other method, when the premium was do. The best thing to do would be to send a letter certified mail return receipt requested so that there would be documentation in their file that Marc had received the letter. Yes, there is a cost involved with sending these letters, but the cost is significantly less than most deductibles on an E&O policy, not to mention the time, stress, and all the other unpleasant things associated with an errors and omissions claim. Sometimes the simplest thing to do to protect yourself from an E&O exposure is to simply do nothing. Don’t create an obligation for yourself where no obligation is necessary. “Duty? We don’t have no stinkin’ duty.”
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.
18 Member FDIC
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Please visit our web site at www.insurbanc.com or contact one of our leasing professionals at 800.957.0858.
CLAIMS HAPPEN: A LITTLE DABBLE MAY DO IN YOUR AGENCY By Jim Redeker Whether it’s to please a large account, appease a family member or an attempt to diversify their business, many insurance agents agree to place coverage that is either outside their expertise or their geographical comfort zone. Due to their lack of expertise or lack of knowledge about the area where they are placing coverage, these agents are at risk of committing an error. This is a dangerous practice because, to paraphrase a famous ad campaign: ‘A little dabble will do you in.’ We have seen claims where a large agency customer purchases their own airplane, a summer home on the coast or even a yacht. The customer asks their agent to procure coverage for the new acquisition and, while the agent is not comfortable placing the coverage, they are even less comfortable sending their prize customer to a competitor for the coverage. Instead, they muddle their way through, obtaining what they believe is the coverage their customer needs. Not until a loss occurs is the coverage flaw discovered: • The owner/pilot of an airplane did not meet the qualifications required in the policy. • The agent failed to realize that the homeowner’s policy procured for a coastal home does not include wind or flood coverage. • As for the yacht now located on the bottom of the Gulf of Mexico, it had a docking restriction: within 100 miles of the owner’s address ... which the policy lists as Indiana. In each of these actual examples our insured agent had to go back to a large agency customer and explain why there was no coverage for their loss. Not uncommonly, agents lose their largest accounts over dabbling mistakes because those are the very customers they will never refer out for fear of losing the business – thereby causing the very outcome
they feared most. Another common dabbling error we see is when an agency or agent decides to expand their book of business by branching into a new area of coverage. In an attempt to broaden their footprint, the agent will approach potential customers who require coverages of which our insured agent is unaware. In these scenarios our insured agents have failed to procure pollution coverage or hired- and non-owned auto coverage just to name a couple of examples. The common thread across most of these claims: when there is a loss, the missing coverage is so obvious that we are unable to find an expert witness who will say our insured agent met the standard of care. The damages are often high and the impact of the claim on the agency is dramatic. The good news is there are ways to lessen, or even avoid these dabbling errors. When placing a type of coverage for the first time an agency can go through a broker, who is knowledgeable about the type of coverage. While the agent must split the commission with the broker, they can look at the cost as paying for an education and also buying some peace of mind that the correct coverage is being obtained. Another good source of information is the Big I’s “Virtual University”, which is full of white papers, articles and checklists for multiple types of coverage anda in many geographical areas. Or if you have a specific question you can use the Big “I”’s “Ask an Expert” for help. Remember, as a member of the Big I family you have a wealth of information and expertise at your disposal for no additional charge, starting with this simple piece of advice: even a little dabble is too much.
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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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W W W.V I A A .O R GRLICORP.COM 21
INNOVATIVE SERVICES TO GROW YOUR BUSINESS
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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.
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JUST QUOTING “APPLES TO APPLES” ...REALLY?
The following is a guest blog post from David Thompson, CPCU, AAI, API, CRIS at the Florida Association of Insurance Agents. It is the first in a series of “Do You ‘Rate and Write’ or ‘Counsel and Sell’?” articles.
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I am no longer shocked in classes these days when I ask a question like, “A customer comes to you for a homeowners policy. Do you always quote ordinance and law coverage at 50 percent?” Almost invariably the answer is, “No, we just quote apples to apples.” Shocked, no…disappointed, yes. What I really want to say in class (but I don’t because I have to take “nice pills” when I am in front of people!) is, “Really, you are kidding me, right? The customer is coming to you with an inferior product and you don’t tell them that you have something better to offer? Isn’t that part of being a Trusted Choice agent?” My “cut to the bone brutal thought” is, “If an insurance agent doesn’t offer me the best product out there, why do I need them?” The examples are endless, but here are a few of the common issues that come up in classes: • The PAP the agency is competing against has no uninsured motorist coverage or has non-stacked coverage. •
A CGL policy has an assault and battery exclusion.
•
A commercial property policy does not have any ordinance and law coverage.
•
A business auto policy does not have any “hired car physical damage coverage” because employees don’t rent cars for business. (And of course they would NEVER do that in the future!)
•
A flood policy has only building coverage; no contents coverage.
•
A homeowners policy does not have replacement cost coverage for personal property.
• Why would anyone (insurance professional or otherwise) not tell a customer or prospect, “I can offer you something better than you have for not a lot of money?” A few examples come to my mind. •
A well-known sandwich shop often runs a special for “sub of the day.” Several times I have ordered a six-inch turkey sub (about $4.50) and the clerk said, “Sir, that’s the sub of the day. For $5.00 you can get a foot-long sub.” That is a bit over ten percent more.
•
About two years ago I traded in my 2007 Civic, and amazingly the same sales representative was still there from back in 2007. I told him I wanted a 2016 Civic, either red or blue. He said, “Come on man, that Civic is nice but let’s upgrade you to an Acord.” There was some humor there, but he did “make” me walk over and look at the Acord. The difference was about 19 percent. (I stuck with the Civic!)
•
I just bought a new oven; mine of 25+ years finally died. Being an avid cook, an oven is critical for me! I went to a local appliance store with a photo of what I had. The sales rep took me to the brand I owned (She said it was her favorite brand) and showed me three to select from. My oven was the “middle” model. After showing me the features she said, “The best model in that brand is this one.” She showed me the features of the “top end” model (none of which appealed to me) and pointed out the price difference of about twenty percent.
• In January I took our daughter to New York City. (It was the weekend of “The Bomb Cyclone!” The temperature ranged from 5 to 15 degrees for three days!) After booking the hotel room with the brand that I most often frequent, I immediately received the email confirmation. Within about one minute I received a second email showing me the upgrade options I could qualify for. One was an upgraded room with a better view, one was free breakfast, and another offered a package of other benefits. The room rate was about $170, while the lowest price upgrade was just about $20 more; under 15 percent.
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Agents often tell me, “Customers buy on price; they won’t spend more money.” Let’s think about that statement. Suppose that an agent quotes the best product 100 times, such as stacked uninsured motorist coverage equal to the bodily injury limits. Of the 100 quotes, only eight buy it. That’s a horrible batting average; only eight percent. What major league baseball player would stay on the roster with Looking those horrible numbers? Think, however, about this: “If Experience the better coverage is never the to Take Your to the Nextquoted, Level? “batting average” will be a big fat zero percent. If the best coverage is not quoted, there is no way a customer will buy it.”
HELP WANTED: Commercial Lines Producer
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To illustrate this point, look at our Education Library article titled: Uninsured Motorist Coverage: An SouthWho Burlington, VT You must be an FAIA member to access this article.). The article involves Agent Gets It (Note: Matt of Brightway (name and agency used with permission) and his quest to offer NFP,Carlucci a leading insuranceInsurance broker and the best coverage to his customers. He concludes his remarks with this: consultant that provides employee benefits,
property &last casualty (P&C), and “I guess the thing I’ll say is retirement, that there has always been this prevailing notion in the agency force Please50send yourofresume to:or less. It’s amazing individual insurance and wealth management that ‘customers won’t pay for that,’ and it’s only true about percent the time, what a customer will doseeking when you add the words at the end of your email, or solutions is currently ansimply experienced Dan‘I recommend…’ Rodliff in a conversation. People know very little about insurance, so they’re looking for recommendations. Personal Lines Producer to advance his or Vice President, NFP P&C Too many agents are afraid to give it.”
her career as a Commercial Lines Producer PO Box 2243 in itstechnology South Burlington This to position With today, it’soffice. very simple quote multiple coverage options. I go back to the days South Burlington, VTof 05407 when every quote a pencil, paper,for and handheld calculator. Quotes five different auto liis responsible for involved generating new sales ability limits involved five different “crunching the numbers” mathematical calculations. (I probably did Or all Commercial Lines policies and requires the math wrong 20 percent of the time too!) Today it’s as simple as checking a few boxes on a comthe ability clients, Email: dan.rodliff @nfp.com puter screentotowork offer closely differentwith options; it takes only seconds. customer service representatives, producers, Tim Dodge, AU,and ARM, CPCU is Assistant management, insurance carriers. Vice ThePresident of Research (and self-proclaimed “Insurance Geek”) for the Independent Insurance Agents work environment is professional and veryand Brokers of New York. In an article Tim wrote dealing with why agents should read the policies they sell he stated this: supportive. The ideal candidate should have excellent interpersonal skills, We {2+} are years of Choice, for crying out loud. Maybe we’re not all CPWe are insurance professionals. Trusted CUs, but thatand doesn’t mean shouldn’t meet the requirements of the CPCU canons at the beginning experience, ability to we adapt to emerging of this article. They We have obligations to the people we serve. We owe it to them. We owe it to technology. willethical be supported with our peers in this industry that has treated us so well. We owe it to ourselves. commercial lines training and mentoring for prospect/planning, saleson-point calls, proposals Tim’s comments are right here too. and education. A property and casualty license is What aboutNFP you, are youajust an “apples to apples” person, or do you always provide customers with required. offers highly competitive the best coverage option available? compensation and benefits package.
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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
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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 & AGENCY NEWS
Helen Collins hcollins@viaa.org
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Acuity Rises on List of Large P&C Insurers Acuity is the 56th-largest insurer in the nation out of nearly 3,000 companies, according to the latest Best’s Rankings of the U.S. property/casualty industry. Acuity’s current ranking is a threepoint jump from the previous year and reflects the insurer’s continued rise in the industry. “Acuity is proud of our financial strength, stability, and sustained growth and momentum,” said Ben Salzmann, Acuity President and CEO. “Our continued increase in market share shows we are a strong force for independent agencies and a source of protection for a growing number of individuals, families, and businesses. It also creates unprecedented career opportunity for our employees.” In 2017, Acuity again achieved significant growth across all lines of business and throughout the company’s operating territory, writing over $200 million in new business. Over the past 18 years, Acuity has grown 230 percent faster than the insurance industry. Acuity has also hired nearly 800 employees over just a five-year span. As a result of the insurer’s continued strong growth, Acuity recently completed a headquarters expansion project that created two additional wings of office space and doubled the amount of total building space, which now stands at over 1.2 million square feet. Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 100,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 26 states. Rated A+ by A.M. Best and S&P, Acuity employs nearly 1,300 people.
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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 32
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VIAS is a subsidiary of Vermont Insurance Agents Association viaa.org
NOW HIRING: Frazer Insurance Group Agency currently seeking an experience Account Manager for Farm and Commercial Lines. Position consists of point of contact with customers for policy renewals, changes, and other actions. The right person will be the liaison between the client, producer, and carrier. Duties & Responsibilities: • Professional attitude, prompt customer service. Customer service will entail, but not be limited to, phone, email, and walk-in client policy changes or questions, audits, reporting of claims. Complete support of both farm and commercial accounts. • Review and prepare renewal documents to insure accuracy of current account. • Ensure proper documentation of all account changes, policy holder choices, etc. • Monitor billing for farm and commercial accounts, record payments, etc. Experience and Licenses: • Three to five years insurance experience preferred • Property/Casualty License required •
Familiar with AMS360 Client Management a plus
• Team player with ability to work independently a must •
Detail oriented with understanding of deadlines
Competitive Salary with healthcare, vacation, sick time, and Simple IRA Please send resume and cover letter to: Jessie Farnham at Jessie@figvt.com
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NOW HIRING: The Richards Group Recognized in 2016, 2017 & 2018 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: • Accounting Assistant, Brattleboro • Commercial Lines Sales Producer, Rutland • Commercial Lines Sales Manager, Brattleboro • Commercial Lines Sales Manager Assistant, Brattleboro • Personal Lines Account Manager, Brattleboro & Bennington • Employee Benefits Account Managers, Brattleboro For job postings and requirements please visit https://therichardsgrp.com/about/careers/ Submit Cover Letter and Resume to jobs@ therichardsgrp.com
NOW HIRING: Noyle Johnson Group Property and Casualty Insurance Agency looking for a commercial lines account manager. We offer a competitive salary and benefits package. Property and Casualty Insurance experience and license is a plus but we are willing to train the right candidate. Position requires good communication skills, ability to function in a busy and competitive environment and strong computer knowledge. Send resume to: Noyle W. Johnson Ins. PO Box 279 Montpelier, VT 05601 Attn.: Audrey Macie
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NOW HIRING: Department of Financial Regulation The Department seeks to hire an Assistant General Counsel with expertise in healthcare law. The Assistant General Counsel will work within the department’s nine-member Legal Division to provide legal services to the department. Assignments may include (1) legal counsel and regulatory support to the commissioner, deputy commissioners, and department staff, (2) representing the department in administrative and judicial proceedings, and (3) drafting legislation, administrative rules, and bulletins. Experience in healthcare law is highly desirable; this position will focus on the department’s healthcare matters, including external appeals, while also providing legal support in other subject areas as required. Candidates must be admitted to the Vermont Bar or eligible for admission without examination. Excellent benefits package and working environment. Compensation based on the State of Vermont Attorney Pay Plan. Application deadline July 20, 2018. Desired starting date is late August or early September. Please send letter of interest, resume, and writing sample to: Nancy Kirkland, Human Resources Administrator, Department of Financial Regulation, 89 Main St., Montpelier, VT, 05602 or by email to nancy. kirkland@vermont.gov. The State of Vermont is an Equal Opportunity / Affirmative Action Employer.
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Granite
Mt Mansfield
Ethan Allen
Champlain
Hanover Insurance Group
AmTrust North America, Inc.
Imperial PFS MAPFRE|USA MEMIC Patriot Insurance Company
Maple
Berkshire Hathaway GUARD Mackinaw Underwriters, Inc (part of the AmeriTrust Group) Main Street America New England Excess Exchange, LTD Johnson & Johnson
Travelers
THANK YOU 2018 ANNUAL PARTNERS!