GMA December 2017 by VIAA

GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION

DECEMBER 2017

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

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

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

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: December 2017 4 Message from the President

Features 600 Blair Park Road Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org

7 Newsflash: Big “I” Statement on Passage of House Tax Plan

VIAA Officers

13 Don’t Get Left Behind in a Rising Rate Environment

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 meversole@viaa.org

GMA Publication Design LONDONmiddlebury londonmiddlebury.com

9 On the Hill: House and Senate Make Progress on Tax Reform 12 On the Hill:House Passes Five Year Flood Authorization Bill

16 Young Agents News Brief 20 ISO’s New 2018 Personal Auto Policy 24 Sales Success: Givers Gain 34 CLAIMS HAPPEN: The Bumps and Bruises of Policy Delivery

Company News 36 Acuity Insurance 37 Vermont Mutual

Help Wanted 39 The Richards Group 41 The Essex Agency 42 Taylor Moore Agency 43 Royer Camp & Associated Insurance, Inc.

Message from the President It’s the Most Wonderful Time of the Year! It is hard to believe that another year is coming to a close and the holidays are in full swing. As an organization, we can look back with pride and satisfaction at the accomplishments of the past year. At the core of what we do, we were awarded the Gold Excellence in Insurance Education Award again this year. It is in an honor we are very proud of. We also added the CRIS designation to our course offerings this year. It was well received and we look forward to offering it again this coming summer. Our Annual Convention received 4 out of 5 stars! And I keep replaying what Ryan Spelman, from the Center for Internet Security, taught us at the luncheon. Make sure you pay attention to the updates when you receive them on your computer, your phone or tablet. Ninety-eight percent of the time it’s a security update you don’t want to miss. The Young Agents Committee continues to grow in their enthusiasm and vision for becoming the next generation leaders of in the independent agency distribution system. They are an amazing, energetic group. We will continue to #lovetheyacs! I would be remiss if I did not mention our Economic Impact Report. Our collective impact exceeds $61 million dollars and we employ 848 Vermonters. Independent agents play an important role in the state’s economy as employers, taxpayers, consumers and charitable 4

contributors. We all should be proud of our contributions to the Green Mountain State. It has been a good year. 2018 will bring some challenges with the change of leadership in the Senate Committee on Economic Development, where insurance issues are debated. Nonetheless, we will be ready to advocate for our members. On behalf of the Board of Directors, I wish you the best of the holiday seasons, and a happy, healthy and prosperous New Year. Erin Odell, CIC, CISR, MBA Odell Insurance Agency VIAA Incoming President

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Newsflash Big “I” Statement on Passage of House Tax Plan By Katie Butler VP, Communications and Editor-in-Chief, IA Magazine WASHINGTON, D.C., November 16, 2017—The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) today released the following statement by Bob Rusbuldt, Big “I” president & CEO:

“The Big ‘I’ appreciates the U.S. House of Representatives’ effort to grow our economy and create new jobs through a modernized tax code. Changes throughout the legislative process have made significant improvements to H.R. 1, the Tax Cuts and Jobs Act, and provided more tax relief to small insurance agencies. However, the Big ‘I’ remains concerned that the bill passed by the House of Representatives today would place a number of Big ‘I’ member businesses at a competitive disadvantage with their C Corporation counterparts and would create a new tax disparity between different types of pass-through businesses. The Big ‘I’ will continue to work with Congress and interested stakeholders to improve the provisions of this legislation related to pass-through taxation as the bill moves through the legislative process.”

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On the Hill House and Senate Make Progress on Tax Reform By Wyatt Stewart & Jennifer Webb The U.S. House of Representatives passed H.R. 1, the “Tax Cuts and Jobs Act,” this afternoon by a vote of 227-205 along party lines. The U.S. Senate Finance Committee is also in the process of marking up its own version of tax reform legislation and is expected to finish by the end of the week. Once the legislation passes the Finance Committee, the Senate is expected to consider it on the floor starting the week after Thanksgiving. However, because Senate Republicans only have a narrow majority, finding a legislative compromise may prove more difficult in the upper chamber. Any differences between the final versions of the House and Senate bills would have to be reconciled, either through a formal conference committee or via informal negotiations, before tax reform legislation could go to the President . The Big “I” analysis of the House and Senate tax bills is available to members on the government affairs webpage (log in to view). The centerpiece of both the House and Senate tax reform bills is a large cut to the corporate tax rate. The current tax rate imposed on C corporations is tiered, with the highest possible rate at 35%. The House bill would generally impose a 20% flat tax on C corporations.

However, businesses engaging in “specified services” activities would be subject to a flat tax of 25%. Specified services activities include financial services and most, if not all, activities related to the sale and servicing of insurance—which means insurance agencies that are organized as C corporations would be subject to a 25% tax rate under the House bill. The Senate bill does not make such a distinction and imposes a 20% flat tax on all businesses organized as C corporations, but the cut would not take effect until 2019. For the two-thirds of Big “I” members organized as subchapter S corporations, partnerships and sole proprietorships, both the House and Senate proposals make changes to tax rates for pass-through entities. The House bill creates special tax rates for passthrough entities depending on the type and level of income and business activities. The Senate takes a different approach, creating a tax deduction for certain pass-through small businesses. The result is that some insurance agencies organized as pass-throughs would continue to be taxed at the applicable individual rates, as revised by both bills. Throughout the process, the Big “I” has led a coalition including the National Association of Insurance and Financial Advisors and the Council of Insurance Agents & Brokers in sending letters to the House and Senate to express concerns regarding the bill’s treatment of some small businesses. Since that effort began, both the House and Senate bills have been significantly improved to allow more small businesses to receive tax relief but the Big “I” believes that more revisions should be made to provide tax relief to a larger subset of our members. At this point, the disparity between C Corporations and many professional services pass-throughs is still significant. 9

In addition to concerns regarding the impact of tax reform on Big “I” members, the legislation includes a provision to subject royalty income derived from the licensing of a tax-exempt organization’s name or logo to the unrelated business income tax. This tax would leave the Big “I” and its state associations with a significant new financial burden. Royalties have historically been treated as passive income, meaning the organization has entered into a licensing arrangement for use of its name or logo but is not actively involved in the

marketing or administration of the product or service connected with the arrangement. Wyatt Stewart is Big “I” senior director of federal government affairs. Jennifer Webb is Big “I” federal government affairs counsel.

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On the Hill House Passes Five-Year Flood Reauthorization Bill By Jen McPhillips WThis week, the U.S. House of Representatives passed H.R. 2874, “The 21st Century Flood Reform Act,” introduced by Rep. Sean Duffy (R-Wisconsin). The product of negotiations between House Financial Services Chairman Jeb Hensarling (R-Texas) and Majority Whip Steve Scalise (R-Louisiana), this bill reauthorizes the NFIP for five years and makes several reforms to the program. One of the biggest concerns for many members of Congress was the bill’s treatment of “repetitive loss properties.” The agreement struck by House leadership changes treatment of these multi-loss properties. If a policyholder files two claims on a property, their premium will increase 10% annually. After a third claim, the rate will increase 15% annually until full risk rates are met. The negotiated compromise also delays another provision that would exempt commercial properties from mandatory coverage requirements until 2019. The bill still includes a reduction in the WYO reimbursement rate from 30.9% to 27.9%, phased in over three years and offset by lower administrative costs of 1.5% over the same timeframe. While the Big “I” is disappointed that this language was included in the legislation, the original bill included a much deeper cut to the WYO reimbursement rate, which would have had a greater impact on agent commissions. Along with the three 12

property-casualty insurer associations (AIA, NAMIC and PCI), the Big “I” originally opposed the legislation and negotiated with leaders on the House Financial Services Committee on improvements to the WYO reimbursement language. The negotiated changes will save agents millions of dollars in compensation if passed into law. As a result of these changes to the WYO reimbursement rate, the Big “I” shifted its position on the bill from “opposed” to “neutral.” Additional reforms in the package include an increase in the minimum annual premium increase for properties not at full risk rate from 5% to 6.5%, but a reduction in the maximum annual premium increase for any single property from 18% to 15%; a $10,000 cap on any NFIP premium on a residential property; clarification that a private flood policy can satisfy the mandatory purchase requirement for flood insurance, including on Federal Housing Administration-insured mortgages; and continuous coverage language that protects policyholders and is also an important errors & omissions protection for agents. The NFIP is set to expire on Dec. 8, 2018. The bill now heads to the U.S. Senate, which will decide whether to take up the House version of the bill or work on its own reauthorization legislation. Stay tuned to News & Views for updates. Big “I” staff prepared a summary of the legislation, available on the Big “I” website (members must be logged in to view). Jen McPhillips is Big “I” vice president of federal government affairs

Feature Article Don’t Get Left Behind in a Rising Rate Environment By David W. Tralka Interest rates are rising again. In June, the Federal Reserve made its fourth upward adjustment in 18 months. The Fed’s recent tightening brings to a close a remarkable chapter in our monetary history. In December 2008, the prime rate fell to a near-record low of 3.25 percent and remained unchanged for seven straight years. Not since 1955 had rates been that low, and not for that long a period of time. As a consequence, many younger agency managers have never lived through a rising rate environment and may not fully appreciate the impact of higher rates on borrowing costs, cash management and agency values. While most economists expect the Fed’s rate hikes to be gradual, it’s important to understand that because we have had lowinterest rates for so long, even relatively small increases will have a big impact on the cost of capital. The historical average for the prime rate is 7 percent. As we move back towards that mean, borrowing costs will increase significantly — in fact, double. Agencies need to be prepared and take steps to better manage their capital needs. Are you a user or provider of capital? Remember the advice Polonius gave in Hamlet — “Neither a borrower nor a lender

be”? It turns out those famous words from Shakespeare don’t apply to the agency world. Insurance agencies are always lending money (when they make deposits) or borrowing (to grow or perpetuate). So the first step is to recognize where you are in that continuum. Are you a provider of capital (lender) or a user of capital (borrower)? If you’re a provider of capital, you’re making deposits and you have cash on hand. So you need to pay attention to how you manage that liquidity. That means understanding your cash management relationship — the fees, the return on your deposits, how much flexibility you have in moving money to capture yield. When money market rates are near zero (as they have been for the last nine years), deposits don’t earn much. That lulls people into thinking that they don’t need to actively manage their cash. However, when rates start moving back up towards 5 percent or more, they add real value to you and can be used as a tool to improve your bottom line. Squeezing even incremental returns from your cash ow can pay handsomely. It’s basically “free money” that goes right to your bottom line. Consider, too, the multiplier effect it has on agency value. Let’s assume your agency has a value of six times its cash flow, and you’re able to increase your cash yield by $5,000. You’ve actually increased the value of your agency by $30,000 (because of the multiplier). That’s a pretty darn good return! Why should I borrow? Most agencies don’t require regular borrowings like other businesses. However, there are

times when even forward-looking should think about borrowing. Here are ve good reasons why an agency might want to borrow: Producer growth. Agencies will often borrow to pay for the cost of bringing on a new producer rather than drain their working capital. Investing in technology and infrastructure. As agencies modernize to become more efficient and competitive, they may need to borrow to purchase a new computer and office equipment. Purchasing a building. Owning versus leasing space may make sense for a growing agency. Borrowing makes that possible. Agency perpetuation. As agency principals approach retirement, they begin to consider ways to pass their rm on to the next genera on — whether that’s family members, their partners or an outside buyer. These types of succession plans generally involve borrowing. Mergers and acquisitions. Agencies looking to grow or enter new markets may choose to purchase a book of business or another agency. M&As and agency perpetuation on are the biggest reasons for agencies to borrow. Higher rates = higher capital costs Trying to me interest-rate changes is a bit like trying to me the stock market, but one thing is certain: rates will continue to go up in the near term. With inflation under control and 14

unemployment low, the Fed has been fairly transparent in signaling its desire to raise rates. So if you’ve been thinking about an acquisition, a buyout, investing in new equipment or adding staff, now is the time to see your banker. The longer you wait, the greater the likelihood that your capital costs will be higher. You can do the math yourself, but let’s suppose you want to acquire an agency for $1 million. Over the last decade, the cost of borrowing has held steady at about 5 percent (prime plus 1–2 percent). So that would be $50,000 in annual interest expense. But if prime rises to 7 percent, you’re now looking at perhaps 9 percent interest, or $90,000. You can begin to see that interest rates really do make a difference. Paying more for capital means less goes to your bottom line, and that puts more pressure on earnings to make up the difference. You may decide that you can’t afford to borrow as much as you’d hoped; maybe your acquisition on or capital improvement gets scaled back or postponed. That’s not to say that you should rush into a deal. In the end, it’s all about planning and making the right business decisions for your agency. But if you’ve had a proposal sitting on your desk for a while, you might want to consider moving it forward. Agency valuations and perpetuation strategies At some point every agency gets sold—a succession plan gets executed with an internal party or a third-party acquires the agency. Almost always there is a need to borrow funds. A son or daughter might use the value of the

agency to take out a loan, or the owner might provide a seller’s note to allow his managers to buy the firm. Or maybe a larger agency acquires a smaller rm with bank financing. Regardless of the vehicle used, the cost of nancing will increase in a rising rate environment. As rates rise, they can have an impact on agency valuations and the ability of buyers to acquire a new book of business or an agency. Keep these factors in mind as you consider your options: • Agency valuations have increased over the last few years, and agencies today are generally selling at higher multiples than before. However, as interest rates rise, there may be fewer buyers willing to pay top dollar for your agency. Think about when mortgage rates go up. Homebuyers can’t afford as big a house so they try to negotiate the price down or end up purchasing a smaller home. • With rates climbing, a good strategy is to lock in a rate now with a fixed-rate loan. While these loans are initially priced a little higher than floating rate loans, they ensure stability over the life of the loan and allow agencies to budget for the future. Over the long term, a sustainable loan is best for all par es involved — the bank and the borrower. • Staged exits are one way for a principal to sell part of the agency now and the rest at a later me. You might consider selling 30 percent now and then selling the other 70 percent ve years later. It’s a good way to ease yourself out of the agency yet keep some control over the business. Also, if your agency grows in value, you can realize some of those gains by staging the sale.

Choose a bank that understands your business You may not have any current borrowing needs, but that doesn’t mean you won’t someday. The key is to be ready, and that starts with building a relationship with a bank that can meet your needs for the long term. Does your bank understand the insurance business? Does it understand the unique requirements of your agency? Would it be able to help you if an opportunity came along that required immediate financing? Are you using the value of your deposits to create a strong relationship that can pay dividends down the road? How well is your bank managing your cash? Is it suggesting ways to increase your yields? A rising rate environment has its pluses and minuses. Rate hikes increase the price of capital, but they also mean higher returns on your money if you manage your cash well. Take the time to figure out whether you’re a provider or user of capital, then work with your bank to create a strategy that’s best for you. David Tralka is the president and CEO of InsurBanc, a division of Connecticut Community Bank, N.A. As the CEO of InsurBanc, he is responsible for keeping the bank focused on being an innovative provider of financial products and services for the independent agency community. An expert on agency mergers and acquisitions, agency perpetuation and financing, he has presented at numerous venues nationwide.

YOUNG AGENTS

NEWS BRIEF

Congratulations to the new leadership team for the Vermont Young AgentsCommittee 2018 Aislyn Vaughan, NFP Insurance, Chairperson

Kody Lyon, NFP Insurance, Vice-Chairperson

Forest Oberst, Liberty Mutual, Secretary/Treasurer

Kelly Schavone, Jamieson Insurance, Outreach/InVEST Coordinator

Brittani Villandry, Main Street America Group, Communications Coordinator Ian Sutherland, Hickok & Boardman, Legislative Coordinator Brady Hecht, Patriot Insurance Company, Past Chairperson

YOUNG AGENTS

NEWS BRIEF

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

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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.

Feature Article ISO’s New 2018 Personal Auto Policy

ISO has filed a new countrywide Personal Auto program in all jurisdictions except Hawaii, North Carolina, and Puerto Rico. The target effective date in most states is September 1, 2018. Some carriers may not adopt the change until later, but it is not uncommon for some carriers to adopt some or all of the changes prior to that date. Almost a dozen changes are made to the policy itself, along with well over 40 endorsement changes, including over a dozen noneditorial changes. Understanding the impact of these changes prior to their adoption by carriers and in advance of 2018 renewals can give you a competitive advantage and reduce your E&O exposure. Some of the policy changes involve incorporating exclusionary language for “car sharing” programs that currently exists in several endorsements. Another notable and DANGEROUS coverage reduction is that there is a restriction in time that insureds have for notice of the acquisition of replacement autos in order to continue liability, medical payments, and UM coverage. Being aware of these coverage restrictions is critical to minimizing your E&O exposure. On the positive side, there are quite a few broadenings of coverage and new coverage endorsements. Being aware of these coverage improvements and options may give you a 20

competitive advantage over other agents who are not aware of these sales opportunities. For example, a HUGE improvement is that the Named Nonowner endorsement can now be used to extend physical damage coverage to nonowned autos for individuals who do not themselves own an auto. Another positive change, perhaps more of a clarification than a true broadening (although there are carriers and adjusters that might disagree) is that ISO is adding an express exception to the public or livery conveyance exclusion for the use of autos for “volunteer or charitable purposes.” To illustrate, the following is an “Ask an Expert” question that was submitted to the Big “I” Virtual University (VU) just three weeks ago: “We insure a non-profit organization that occasionally asks their employees to use their personal vehicles to provide rides for their clients to doctor’s appointments, the grocery store, etc. They are all local rides. The client does NOT pay the employee for the ride; however, the employee receives a mileage reimbursement from the employer. We have advised the employer to have their employees check with their personal agents to make sure their PAP policy will respond in case of accident in this scenario. “We are receiving a wide variety of answers from the PAP carriers, from $100/month additional premium (I’m assuming to change from commute to business use) to the carrier wanting off of the risk, citing the ‘livery’ exclusion. We have liability for the employees’ vehicles covered by having non-owned liability as well as Employees as Insureds on the employer’s business auto policy. “I have researched your VU, and find that there is really no way for the employer to provide physical damage coverage for the employee’s vehicles. I’m sure that our non-profit

organization is not the only one having their employees do this type of driving activity. If the PAP carriers are excluding, or not wanting to write this exposure for the employees, how do we get this exposure covered?” We believe that a majority of courts only apply the public or livery conveyance exclusion to individuals who hold their autos out to the general public for hire, not to individuals working for a private employer where such service is provided to their customers, not the general public. For example, if you are a Big “I” member, you can access two articles on this:

ISO now makes it clear, at least with regard to volunteer or charitable activities such as Meals-On-Wheels or transporting seniors to doctor appointments, that their new PAP clearly covers this exposure. This is not the case for many auto policies in the marketplace, again giving you a competitive advantage.

However, case law varies by jurisdiction. In addition, many carriers use more restrictive language such as “transporting persons or property for a fee” or worse.

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Sales Success: Givers Gain By Phil Schuman

The first time I heard the saying “Givers Gain” was when learning about the right way to network. People commonly go to networking events armed with business cards ready to peddle their wares and hoping to find as many potential customers as possible. It took many years to realize the benefits of looking at networking completely differently: to walk in with the goal of first finding out about other people’s needs and seeing who in the room you can help get what they want with connections or advice. The worldwide networking organization BNI use Givers Gain as their mantra and underlying philosophy. Helping others first opens doors to finding future business. Yet the Givers Gain mindset extends far beyond the networking room – it will in fact help in all areas of sales and all areas of life. There’s a good reason we’re often given a chocolate, fortune cookies or mints along with the bill at a restaurant. Aside from the proprietor just feeling generous there’s also a basic reason based on psychology for the gesture. Studies show an increase in the amount of tip given when a token gift is offered at the end of the meal. When the gift is doubled with two mints or two chocolates the increase in tip more than doubles. The basic law of nature is we feel either an obligation or a genuine desire to give when we’ve first received. Robert Cialdini in his book “Influence” outlines six basic principles or short cuts in the science of persuasion

and this one is the principle of reciprocity.

principle of reciprocity.

We now see this art of reciprocity at work in social media too. Content is king and you’ll often see nuggets of highly valuable content with information, tips or expert insights given for free well before there’s any ask to buy. This helps establish credibility and trust with followers but also, as with the example in the restaurant, plays to the

One of the best pieces of advice I’ve heard about how to achieve success in sales is always to be laser focused on achieving quota. At first I thought it sounded like fairly lame advice – of course we want to keep our sales goal top of mind. But then it went on to explain that it wasn’t referring to your quota but rather to your customer’s quota. If you can always be mindful of and even obsessed with your desire to help your customer achieve their goals instead of just your own, everything about the way you approach your prospects and how they respond to you will change in an instant. When your prospects know you are genuinely trying to help them and not just pushing a sale, new doors will immediately open on your path to success. People like to call it karma that good things just happen when you help others out, and maybe that’s partly true. But it’s mainly down to science and human psychology. Stop selling and start helping!

This holiday season and all through the year there’s another and far more important reason for giving to gain. Giving ultimately just feels better and is more rewarding than getting. The spirit of giving and helping each other is essential in society and is the only way to ensure we humans succeed in this world and thrive in it. One day we’ll each look back on our lives when it’s all said and done and wonder how we fared and what we really achieved. The simple truth is what we’ve gained in this life will be determined in equal measure by what we’ve given.

Happy Selling and Happy Holidays! The Schuman Group empowers and inspires sales teams with proven strategies and real world tools through sales training, coaching and consulting services. www.schuman-group.com

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E E E Z FR

S E R I F Y A D I L INTER HO ay

PUT A ON

idays, but holid ol h r te in w e th r ate fo u deck It’s fun to decor home fire. As yo a r fo sk ri r u yo increase decorations can art. ason, be fire sm the halls this se

Read manufacturer’s instructions for the number of light strands to connect.

Although live Christmas tree fires are not common, when they do occur, they are dangerous. On average,

1 34 of every

reported home Christmas

out of

5 The top

tree fires resulted in death.

home decoration fires are started by candles.

1 4 in every

days for home candle fires are

Christmas Eve, Christmas Day, New Year’s Eve and New Year’s Day. Keep candles at least

inches away from anything that burns. For more information on how to prevent winter fires, visit:

A heat source too close to the Christmas tree causes

www.usfa.fema.gov and www.nfpa.org

Make sure your tree is at least

of the fires.

feet away from heat sources like fireplaces, radiators, space heaters, candles or heat vents. Also, make sure your tree does not block exits.

Get rid of your tree after Christmas or when it is dry.

Holiday Health and Safety Tips 1

Wash your hands often.

Stay warm.

Manage stress.

Travel safely.

Keeping hands clean is one of the most important steps you can take to avoid getting sick and spreading germs to others. Wash your hands with soap and clean running water for at least 20 seconds. If soap and clean water are not available, use an alcohol-based product.

Cold temperatures can cause serious health problems, especially in infants and older adults. Stay dry, and dress warmly in several layers of loose-fitting, tightly woven clothing. Check on children, the elderly and pets.

The holidays don’t need to take a toll on your health. Keep a check on over-commitment and over-spending. Balance work, home, and play. Get support from family and friends. Keep a relaxed and positive outlook. Get enough sleep.

Whether you’re traveling across town or around the world, help ensure your trip is safe. Don’t drink and drive, and don’t let someone else drink and drive. Wear a seat belt every time you drive or ride in a motor vehicle. Always buckle your child in the car using a child safety seat, booster seat, or seat belt according to his/ her height, weight, and age. Get vaccinations if traveling out of the country.

The holidays are a time to celebrate, give thanks, and reflect. They are also a time to pay special attention to your health. Give the gift of health and safety to yourself and others by following these holiday tips.

The 12 of

DAYS

Never use lighted candles near trees or boughs

SAFETY

Keep poisonous plants out of reach of children and pets

Choose an artificial tree that is labeled fire resistant

Turn off all tree lights and decorations when not in use

8 11

When preparing a meal, wash hands, utensils, sink and anything else that touches raw meat

Keep trees away from fireplaces, radiators and other heat sources

If using a natural tree, make sure it is well watered

When putting up decorations, use a step stool or ladder to reach high places

Reheat leftovers to at least 165˚F

6 9 12

Make sure your tree has a stable platform

1 4 7

Check holiday lights for fraying, bare spots, gaps in the insulation or excessive kinking in the wire

Designate a sober driver

Happy Holidays

HAPPY ONLINE Holiday

SHOPPING Cheers

to a cybersecure holiday season! Cyber Monday 2017 is expected to be the biggest shopping day in U.S. history.1 According to a Pew Research Center survey, Americans use a wide range of digital tools and platforms to shop, and roughly 80 percent of adults purchase products online.2 Mobile has taken over holiday gift giving: last year, half of website visits and 30 percent of online sales were conducted via mobile devices.3 Gift givers are going mobile to conveniently compare products, read reviews and make purchasing decisions while out and about. Technology also ranks high on shopping lists – from new laptops and gaming systems to tablets, the latest phones and Internet of Things (IoT) devices like video cameras, toys and appliances. Whether you are giving the gift of connectivity or using it yourself, don’t let hackers mess with the merriment. The National Cyber Security Alliance (NCSA) reminds everyone that all devices connected to the internet – including mobile and IoT – must be protected. And young people receiving technology for the first time need to understand how to use it safely and securely. In addition, older adults must make it their mission to continue to learn about and practice good cyber hygiene. “All tech users – especially vulnerable audiences like teens and seniors – need to take responsibility and protect themselves against cyber threats, scams and identity theft – not only during prime shopping time, but every day,” said Michael Kaiser, NCSA’s executive director. “In past years, we have seen that scammers, hackers and cybercriminals are actively on the prowl during the holidays. Stay alert for phishing emails, deals that look to good to be true and warnings about packages that can’t be delivered or orders that have problems. Continually learn about and always initiate basic safety and security practices, and you will connect with more peace of mind during the holidays and year-round.” 1 http://www.techradar.com/news/cyber-monday-2017-deals 2 Pew Jan. 2016 http://www.pewinternet.org/2016/12/19/online-shopping-and-e-commerce/ 3 Adobe Jan. 2017 http://www.cmo.com/adobe-digital-insights/articles/2016/11/8/2016-holiday-shopping-up-to-the-minute-datafrom-adi.html#gsSXi=4ik

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Feature Article CLAIMS HAPPEN: The Bumps and Bruises of Policy Delivery Case Study – “The Bumps and Bruises of Policy Delivery”

months later a fight takes place in the parking lot of Tumble Out. The claim is submitted to Coverall Insurance Company and Coverall Insurance Company denies coverage based on the assault and battery exclusion. A claim is then made against the Wesell Agency. “Checking the Scorecard” – What are the major issues?

By Kyle Stock

This case study raises two main issues. First, did Wesell request the appropriate coverage

Tumble Out Bar is a customer of the Wesell Insurance Agency. Tumble Out has requested a liquor liability policy to replace its previous policy. The previous policy included assault and battery coverage. Since the Wesell agency does not have a market for liquor liability coverage, John Wesell prepared the application and faxed it to Middleguy Insurance Agency. Middleguy is a broker that does have a liquor liability market. Coverage is bound and shortly thereafter Coverall Insurance Company issues the policy and it is forwarded to Wesell. However, this policy excludes assault and battery. Wesell simply drops it in the mail to the Tumble Out Bar. Several

to match the previous policy of Tumble Out? If Tumble Out wished to replace its previous policy, the jury will likely hold the agent responsible for failing to do so if the agent did not get all of the same coverages, limits, deductibles, etc. in the new policy. For purposes of this case study, let us assume that assault and battery coverage was requested. Then the issue is whether the agent reviewed the policy as it was issued to see if all the coverages requested were included in the policy. In many states, Wesell will be able to argue that Tumble Out had a duty to read its policy and was thus on notice that it did not have the assault and battery coverage; however, this is generally not

a bar to the claim. The jury will still be able to compare the fault of the agent, and perhaps the broker, for not getting the proper coverage or advising its customer of the differences. â€œChange in Fight Planâ€? - What could the agency have done differently? Assuming that all the appropriate coverages were requested in the application, avoiding or preparing for the defense of this claim would have been a relatively easy change in practice for the Wesell Agency. When the policy was received it should have been carefully reviewed by the agency to see if all of the coverages requested in the application were included. At this point, it should have been discovered that Coverall Insurance Company had, in fact, issued an exclusion for assault and battery and

not granted coverage for it. Wesell could have then gone back to the carrier or broker and tried to make sure that all the appropriate coverages were included. If Coverall Insurance Company would not provide the coverage, Wesell could then have sought coverage from a different carrier. At the least, Wesell could have advised Tumble Out in writing that the policy did not have assault and battery coverage and then Tumble Out could have decided whether it was a coverage it wished to pursue. Disclaimer: The material contained herein is for informational purposes only and is not intended as legal or other professional advice. Please procure the appropriate legal or other professional advice and services to address your individual needs and circumstances. The premise of the above claim scenario(s) is based in part on actual errors and omissions claim(s). The facts and circumstances may have been revised to better illustrate the subject matter.is still acceptable, and thatâ€™s the problem.

Company News Acuity Recognized as Top Employer by Stevie Awards Acuity is the winner of a Gold Stevie® Award for Great Employers, earning the company the distinction of Employer of the Year - Insurance. The Stevie Awards for Great Employers recognize the world’s best employers and the human resources professionals, teams, achievements, and HR-related products and suppliers who help to create and drive great places to work. “We are honored to be recognized as Employer of the Year among insurers,” said Ben Salzmann, Acuity President and CEO. “Everyone at Acuity can take pride in the workplace we have built together.”

sources. “Earning a Gold Stevie Award is a validation of our efforts.” Additionally, Acuity earned a Silver Stevie Award for Achievement in Workplace Design for companies of more than 100 employees. The award recognized the impact of Acuity’s recent headquarters expansion project. “In the expansion, we set out to create a business environment that was both state-of-the-art and employee-focused,” said Sheri Murphy, Acuity’s Vice President - Services and Administration. “It is an honor to be recognized for achievement in workplace design.” Nicknamed the Stevies for the Greek word meaning “crowned,” the awards were presented to winners at the Marriott Marquis Hotel in New York on Friday, September 22. More than 500 nominations from organizations around the world were submitted this year for consideration. More than 50 professionals worldwide participated in the judging process to select this year’s Stevie Award winners. “The judges were impressed with the quality of entries we received in the second annual Stevie Award for Great Employers. The dedication these Stevie-winning organizations have to providing great workplaces for employees was evident,” said Michael Gallagher, President and founder of the Stevie Awards.

“We are all committed to being a great employer not just within the insurance industry, but across all sectors and for employees of all ages and backgrounds,” said Joan Ravanelli Miller, Acuity General Counsel and Vice President - Human Re36

In choosing Acuity as Employer of the Year Insurance, judges noted Acuity’s “amazing set of employee engagement initiatives and benefits” and a fun work environment that encourages open communication. In recognizing Acuity for Achievement in Workplace Design, judges highlighted the company’s “fun and informal spaces for employees to connect” as well as overall project design that was authentic to company culture and values. _______________________________ Acuity, headquartered in Sheboygan, Wisconsin, is a property and casualty insurer that operates in 26 states, generates nearly $1.4 billion in revenue through 1,000 independent agencies, and manages over $4 billion in assets. Named one of the top 10 large companies to work for in America, Acuity employs over 1,200 people.

Company News Bryan Mjaanes joins Vermont Mutual Insurance Group For Immediate Release Media Contact: Thomas Thamm 802.229.8975 tthamm@vermontmutual.com MONTPELIER, Vermont (November 13, 2017)— Vermont Mutual Insurance Group is pleased to announce that Bryan A. Mjaanes has joined the organization as Vice-President and Head of Information Technology. Mr. Mjaanes is joining Vermont Mutual as part of the succession plan to replace the current IT Vice President, Joanne Currier, upon her retirement. Mr. Mjaanes comes to Vermont Mutual from Zurich North America in Schaumburg, Illinois, where he most recently served as Senior Vice-President and Head of Underwriting Information Technology. In his more than 20-year career he has held a number of key IT positions of increasing responsibility both with Zurich North America as well as the broader Zurich Insurance Group in their home office in Zurich, Switzerland. Dan Bridge, President and CEO commented, “Bryan brings a wealth of experience to our organization at a time when keeping pace with technology is a necessity for us to succeed both operationally for our employees and as we strive to provide exceptional service to our independent agent partners and our policyholders. His comprehensive and contemporary experience in the insurance technology space will allow us to maintain our industry-leading position, evolve as our business changes and ensure we remain competitive well into the future.” Mr. Mjaanes, along with his wife and three children, will be relocating to Vermont. He will be based at the group’s Montpelier, Vermont, headquarters.

_______________________________ 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 over 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.

HELP WANTED

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: • Accounts Payable Coordinator, Brattleboro

• Commercial Lines Account Manager, Brattleboro • Commercial Lines Sales Producer, Rutland

• Personal Lines Account Manager, Bellows Falls • Personal Lines Account Manager, Brattleboro • Personal Lines Receptionist, Bennington

• Employee Benefits Account Manager, all locations For job description and requirement please visit https://therichardsgrp.com/about/careers/ Submit Cover Letter and Resume to jobs@therichardsgrp.com

COULD YOUR CUSTOMERS USE A

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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. • $1 million in additional insurance • 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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HELP WANTED

Experienced Commercial Lines Customer Service Representative POSITION SUMMARY: Manage small, medium, and large commercial insurance accounts in mid-sized independent insurance agency. Position consists of primary day-today 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 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

Immediate Opening for Personal Lines Customer Service Representative Leverage Your Strong Personal Lines Experience to Join a Company of Choice & Work with a Large Number of Carriers Spotlight Your Skill as You Deliver Exemplary Service to Existing Clients BRIEF JOB DESCRIPTION: This role offers you the opportunity to serve as a trusted advisor to clients and grow your insurance career with an employer of choice. As an Account Manager, you will work with a wide variety of clients as you review their accounts and help them understand their personal insurance coverages. Consider a few of the advantages of joining our team. • You will enjoy the autonomy to manage your desk and excel along with support when you need it. •

You will enjoy working with a tightknit team. The ideal candidate will be eager, determined and ready to step into a vital role to the organization.

•

Feel pride knowing you are providing an important service that helps your clients.

• To be a good fit for the Personal Lines Customer Service Representative opportunity, you will have: •

At least 3 years of personal insurance account management experience

or equivalent office experience with the ability to learn. •

An active personal insurance license preferred or working towards licensure.

• The ability to work with and adapt to a wide range of carriers. • Experience in an automated agency environment is highly preferred. 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. Email resume for consideration to: ryan@taylormooreinsurance.com

TAYLOR MOORE AGENCY 346 MAIN STREET DERBY, VT

TELEPHONE: 802-766-2294

HELP WANTED

Licensed Insurance Sales Account Manager (relocation required)

Qualifications and Skills

This position is located in Newport Vt. Candidates must be willing to relocate to the area.

Must be proficient with computer.

JOIN OUR TEAM & GROW WITH US! Due to continued agency growth, Royer Camp & Associated Insurance in Newport Vt. has an immediate need for an experienced, full time, licensed insurance account manager with an emphasis on Commercial Lines insurance. Previous experience calling on & servicing commercial accounts is strongly preferred. Responsibilities and Duties Job responsibilities include all aspects of insurance operations including but not limited to policy servicing, insurance quoting, claim assistance and providing exemplary CUSTOMER SERVICE! The right candidate must have strong organizational & communication skills and be proficient with a computer. You must be a team player and be comfortable working with others in a very busy office environment.

Candidate must have a Property & Casualty license. A Life & Health license is also a plus.

You must be a team player and be comfortable working with others in a very busy office environment. Benefits We offer a competitive benefits & compensation package which includes a competitive salary, health benefits, paid vacation, & retirement contributions. Job Type: Full-time

Required experience: Insurance: 3 years

Required license or certification: P&C

If Interested, please email your resume and cover letter to annette@royercamp.com or you can put in the mail to : Annette Lantagne, Agent Royer Camp & Associated Insurance Inc. 573 East Main Street Newport, VT 05855 802-334-6727 (phone) 802-334-2061 (fax) 43

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