GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION
January 2017
Seasons May Change, But Our Commitment to the Independent Agent Channel Remains the Same...
V
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: 600 Blair Park Road Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org VIAA Officers President Peter Richards Vice President Erin Odell Secretary/Treasurer Paul Plunkett
January 2017 4 Message from the President 7 On the Hill 10 Agents in Action 11 FEMA Communicates Flood Risk to Policyholders 13 2017 Outlook 16 Help Wanted 21 YAC News Brief
Features
IIABA & PIA State National Director Ron Bixby
24 Department of Financial Regulation
Directors
30 Sales Success: Fill the Funnel
Chip Ams Daniel Rodcliff
32 E&O Corner
News
Alan Kinney
Staff Executive Director Mary Eversole meversole@viaa.org
GMA Publication Design Thorin Markison thorinmarkison.com
34 In Memoriam: Neil Alden Sherman 35 Acuity
Message from the President My Two Cents The Vermont General Assembly has returned to work along with the United States Congress. The President-elect will be inaugurated in a number of days. Those in the know say that this will be a great time of transformation in our state and nationally. We are anxious for the Vermont House Committee on Commerce and Economic Development to take up legislation again to address the “independent contractor” definition. Last month, we held forums throughout the state to discuss this issue with legislators and our members. This gave us the opportunity to present our point of view on the confusion of the current definition. Clearly, it is not working and having a negative impact on the Vermont economy. What I found most interesting from our discussions was the objections that organized labor had with H. 867 that was unanimously passed by the Committee last session. I am not an attorney, but it seems to me that the legislation would not allow employers to audaciously convert employees into independent contractors. There is still federal law that applies. Experts in this area of law have stated that there is no evidence at this point to demonstrate that the current Vermont standard is protecting any vulnerable workers that were not already protected by the federal standard. Why not simplify the matter and adopt the federal standard? The 21st Century workforce needs both flexibility and stability, especially in Vermont. One should not be sacrificed for the other. Independence is what built our state and sustains it.
4
My hope for the first year of the biennium is that the House Commerce Committee puts forth another unanimous bill and it gets to floor for discussion and debate. VIAA is ready to help make this happen.
Pete Richards, VIAA President
APRIL 2017 VIAA ECONOMIC IMPACT SURVEY
5
Real WC Solutions to Meet Your Challenges
Real WC Solutions
to Meet Your Challenges • Fully Insured Markets; Broad Range Classes, Deviations and Dividends; Highly Rated Company Partners; Superior Service • Claims Management Services/TPA Services • Risk Control Services • Self-Insured Group Management • Alternative Market Solutions • Other Products – High Net Worth Personal Lines Program
Alison Jones (978) 933-4187 | www.meadowbrook.com
TrustedChoice.com
Vermont Insurance Agents Association SM
Big “I” University
On the Hill
Big ‘I’ Capitol Hill Team Looks Ahead to 2017 Big ‘I’ Government Affairs Team
The Big “I” Capitol Hill team is looking forward to tackling numerous issues that impact independent insurance agents and their clients in 2017. As a Republican President takes office on Jan. 20 and Republicans control both chambers of Congress, lawmakers are eager to put their party’s stamp on many important pieces of legislation this year. Flood insurance: Last year, the Big “I” was at the forefront of policy discussions surrounding flood insurance. In addition to testifying at the first flood insurance hearing of 2016 before a U.S. House of Representatives committee, the association played an integral role in laying the groundwork for NFIP reauthorization in September 2017. Last month, House Financial Services Committee Republican leadership released draft principles as a roadmap for reauthorization. The Big “I” believes these principles are a reasonable starting point, but the association has concerns about a proposal to phase out some policyholders from the NFIP. This year, the Big “I” will continue working closely with Congress and its members to help secure appropriate reforms. Health care: Perhaps the most significant development in the wake of the 2017 Presidential election is the anticipated repeal of the Affordable Care Act (ACA) in early 2017. While repeal may happen right away, a lengthy transition period and perhaps a delay are likely while Congress and the Administration work on replacement legislation.
Elect Trump and congressional Republicans have made it clear that they want to enact a major tax overhaul in 2017. The Big “I” supports wholesale tax code reform on the condition that any proposal fairly address individual rates for small business pass-through entities, along with corporate rates. The Big “I” will continue pursuing tax reform that provides relief to its small business members and their employees. Department of Labor (DOL) rules: The Big “I” expects Congress and the new Administration to delay, stop or amend the DOL fiduciary rule, which is set to take effect in April 2017. At the end of 2016, the Big “I” scored a legal victory when a federal judge delayed implementation of the DOL overtime rule. Last fall, more than 55 business groups and 21 state governments sued the DOL. The Big “I” is the only insurance trade association involved in the lawsuits. The delay means the incoming Trump Administration and Congress now have more options for rolling back or amending the rule. The Big “I” will continue advocating for adjustments to both DOL rules in 2017. Federal insurance regulation: In 2017, many anticipate consideration of legislation to install stronger procedural “checks” for federal officials in international insurance negotiations and defend state insurance regulation—as either a standalone issue or part of a wideranging financial services reform effort, such as the “Financial CHOICE Act.”
Replacing the ACA will require some bipartisan support in order to pass the U.S. Senate. As ACA replacement progresses, the Big “I” will continue to guard against harmful changes to the employer-sponsored health care system.
Last fall, the House Financial Services Committee passed the CHOICE Act by Rep. Jeb Hensarling (R-Texas), which is expected to serve as a template for financial services reform in 2017. This legislative effort could include efforts to change the structure of the Federal Insurance Office.
Taxes: The outcome of the election has given tax reform discussions a major jolt as President-
NARAB: The Big “I” is optimistic that 2017 will be the year the NARAB board is finally 7
confirmed and can begin its important work. After a lengthy process, the White House submitted a batch of candidates for the NARAB board of directors—including a Big “I” agent and national board member, Angela Ripley of Maryland—to Congress in 2016. A 13-member board consisting of industry members and state regulators will run NARAB, but once the President appoints the board members, the Senate must confirm them. Although the Senate failed to confirm the slate of nominees before adjourning the 114th Congress, the association will work with the Senate and the new Administration to ensure that this process moves along as smoothly as possible in 2017. Crop Insurance: This year, leaders in both the Senate and House will begin to lay the groundwork for the next Farm Bill, as the current one expires in February 2018. Protecting the Federal Crop Insurance Program (FCIP) as the cornerstone of the farm safety net will continue to be a priority for the association, which will also continue ensuring that agents remain the sole sales force of the FCIP. With so many key issues on the line, it’s more important than ever for agents to participate in Big “I” grassroots campaigns and attend
8
the annual Legislative Conference, May 3-5 in Washington, D.C. On Thursday, May 4, Big “I” agents will visit Capitol Hill for the annual lobbying day. More than 50 new senators and representatives will hear directly from their agent and broker constituents, who represent every state and almost every congressional district during this annual pilgrimage. In addition to visiting with legislators, the conference offers numerous opportunities to network and learn. Key highlights include the Young Agent and InsurPac lunch, the InsurPac major donor appreciation reception, leadership committee meetings and various panels. For more information, visit the Big “I” online or call 800-221-7917. Charles Symington is Big “I” senior vice president of external and government affairs Jen McPhillips is Big “I” vice president of federal government affairs. Margarita Tapia is Big “I” director of public affairs. Nathan Riedel is Big “I” vice president of political affairs. Wyatt Stewart is Big “I” senior director of federal government affairs Jennifer Webb is Big “I” federal government affairs counsel.
Agents In Action Members Ask Legislators to Clarify the Definition of Independent Contractors
VIAA hosted three Independent Contractor Forums with legislators and our members last month in Manchester, Burlington and Montpelier. The association has long held the position that Vermont’s definition of “independent contractor” is confusing and unworkable. Many contractors, that VIAA members insure, do not know if they will be held responsible for workers’ compensation premiums or claims from subcontractors who operate as independent businesses. This confusion has a negative impact on the Vermont economy.
10
FEMA Communicates Flood Risk Information to Policyholders in October 2016 through December 2016 will also receive their first mailing at this time. The letter will continue to be mailed at each subsequent renewal. With flood risk information varying from one policy to the next, the letter encourages each policyholder to contact their insurance agent to discuss their policy and options. It may also be helpful to visit FEMA.gov/cost-of-flood. In January 2017, FEMA will begin the next phase of implementation of Section 28, Clear Communication of Risk, of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA), which requires the Agency to clearly communicate full flood risk determinations to individual property owners. To meet this requirement, the National Flood Insurance Program (NFIP) reviewed the flood risk and underwriting information for every flood insurance policy, and is writing to all NFIP policyholders to communicate how their flood risk impacts their premium rate. Policyholders will begin receiving one of seven letters, depending upon their policy, in 2017. Policyholders who renewed policies
In addition to Section 28, HFIAA requires gradual insurance rate increases to properties that currently receive artificially low (or subsidized) rates, rather than immediate increases to reflect the property’s full flood risk. HFIAA requires increases to premiums for most subsidized properties by no less than 5 to 15 percent annually, but no more than 18 percent for an individual policyholder – with limited exceptions –until the premium reaches its full-risk insurance rate. Approximately 80 percent of National Flood Insurance Program policyholders currently pay full-risk rates and are minimally impacted by these increases.
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. • $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
Rated A+ by A.M.Best
CALL TODAY
FOR AN IMMEDIATE QUOTE!
The RLI PERSONAL UMBRELLA POLICY is available through selected agents and program administrators in all 50 states.
CONTACT:
April Shrewsbury 800.221.7917 x5360 April.Shrewsbury@iiaba.net
RLICORP.COM
Big “I” University
2017 Outlook
How Will Your Agency Increase Efficiency Jordan Reabold
At the start of the New Year, Ernst & Young predicts technology, customer expectations and cyber risks will be the top three most impactful factors on the propertycasualty market in 2017. What’s the common thread among them? Efficiency. “Analytics and technology in general will be part of an agent’s value proposition— understanding what customers are needing, better understanding interactions across channels,” explains David Bassi, executive director at EY. “This is important as people continue focusing on how to drive efficiency.” Here’s what you can expect in those areas this year. Harnessing Technology In 2017, expect InsurTech—the many segments of new technology that are disrupting the insurance space—to continue impacting the industry. “Give or take, 35% of emerging InsurTech providers have determined that the distribution of insurance products is broken, and they have created technology to change that,” says Karen Pauli, principal of Strategy Meets Action. And although plenty of InsurTech startups fail, “there is so much change in the distribution space that today’s independent agents and brokers need to make choices about the tech they’re adopting,” Pauli says. “Technology is now a clear piece of the transaction.” Jay Sarzen, senior p-c analyst at the Aite Group, points out that technology is also a critical component of agency-carrier interactions.
This year, “technology is going to help agents align better with carriers. I think it’s critical not to waste time and energy submitting business that isn’t going to go anywhere,” he says. Making agentcarrier interactions more efficient is especially important in commercial lines, Pauli explains: “It’s a hypercompetitive market, and because of that and globalization, the need to get quotes done in minutes to an hour vs. weeks or months is weighing on every insurer. Every agent is saying, ‘You’ve got to be able to get me quotes.’” Sarzen believes this is the year when carriers are going to “throw up their hands and listen. Things are challenging for carriers right now because we’re in a low interest rate environment, so they’re going to be looking to tech to help them advance. Whether they’re looking for more innovation in underwriting or claims to deliver a better customer experience, carriers are going to start getting their heads around what tech innovations can do for them.” Meeting Customer Expectations When all is said and done, the goal of technology is “improving the customer experience and better meeting their needs,” Bassi notes. The Aite Group’s Top 10 Trends in Insurance 2017 ranks insurers’ focus on improving customer experience in underwriting at No. 5. And while many in the industry are turning their noses up at Lemonade’s oversimplified 13
approach to quoting, Pauli points out that efficiency is the company’s main appeal.
becoming aware of is that a cyberattack has actual manifestations beyond the data loss.”
“Let’s say Lemonade doesn’t make it in the end. It will still change certain parts of the insurance process because people will understand it can be easier. They will expect certain things to be seamless that aren’t right now,” Pauli explains.
The Aite Group’s top 2017 insurance prediction: Cyber insurance moves beyond coverage for data breaches. Sarzen says agents must start having extensive conversations with their clients about what constitutes a breach: “Businesses still see cyber as just an endorsement. It’s more than sending your customers a notice saying their information has been compromised—it’s a business interruption.”
Sarzen agrees, adding that agents can use that concept as an opportunity to compete. “The savvier insurance agencies will embrace online portals to combat the other comparers of the world,” he suggests. “People shop on Amazon because it’s a one-click purchase. People are conditioned to that kind of shopping experience, but it doesn’t mean brick and mortar stores are going away. They just have to adapt.” It’s not about you—it’s about the customer, Bassi says: “It’s all about creating a customer-centric experience that drives ways of interacting with customers via channels they’re comfortable with. You have to figure out how to touch them in different places. Use these methods to get a 360-degree view of the customer, then act appropriately with products and services.” Like peer-to-peer insurance, the industry is still holding its breath about the Internet of Things (IoT). “From a personal lines perspective, smart homes bring new opportunities for customers,” Pauli says. “You can provide a better service by engaging them more around the benefits of IoT.” And while it’s debatable whether connected devices like refrigerators will change the insurance landscape or end up translating to lower insurance premiums, “systems like smoke detectors and water sensors— things that can actually save a life and prevent real damage—that’s going to be where people see value,” Sarzen notes. Increasing Cyber Awareness Despite its advantages, however, the connectedness of the IoT “clearly creates more of an avenue for cyberattack,” Bassi says. “One of the things companies are 14
According to the Insurance Information Institute, 60 carriers now offer cyber insurance—and the U.S. cyber market is worth more than $3.25 billion in gross written premiums, with the potential to grow to $7.5 billion over the next few years. “Can we expect insurance to help people understand risk management and trends and be their defense in terms of breaches?” Bassi asks. “We see it high on the agenda in 2017, and it calls for immediate attention.” Jordan Reabold is IA assistant editor.
Consider us your trusted, improve-your-online-presenceand-retain-customers sidekick.
With so many competitors out there, you need every edge possible. Safeco gets that. That’s why we’re 100% dedicated to your success. Our goal is to give you everything you need to sell more insurance premium. The rest is up to you. 4 PROGRAMS DESIGNED TO HELP YOU: Customers for Life Workshop Producer Development Program
Contact your Territory Manager or Agency Specialist to find out more, or visit Safeco.com to learn how you can become a Safeco agent.
Bricks and Clicks Online Marketing Resource Center CSR Development Program
©2016 Liberty Mutual Insurance
HELP WANTED
PERSONAL LINES SERVICE Customer Service is the top priority of this position. Efficient servicing will be required in this position in order to maintain excellent customer relations. This position will coordinate the processing of personal lines new and renewal business. Essential Duties & Responsibilities: • Manage & prepare quotations. • Complete and upload new business applications. • Manage new accounts in Agency Automation System • Respond to company memos or e-mail in timely manner. • Maintain positive relationships and keep direct communication with company underwriters and staff. • Keep informed and up to date on industry and company issues. • Improve/refine sales techniques through continuing education. • Maintain account files in accordance with established procedures. • Complete performance objectives as directed by the Manager. • Perform other specific duties as requested by the Manager. • Some processing on assigned accounts, including: daily mail, ordering of renewal or new coverage’s, invoicing, binders, company and/or client correspondence, suspense and follow-up, computer information input and client and/or policy information update. • Maintain control on renewal expirations and binders. 16
• Check policies, endorsements, and other policy documents for accuracy. • Manage adding coverages to existing accounts. • Market, quoting, and placing new and renewal risks. Set up complete policy applications and/or specifications as required for new or renewal business in conjunction with clients’ needs and in conjunction with producer instructions. • Maintain Pipeline weekly with sold business. • Coordinate with accounting department in collecting premiums promptly or taking action in accordance with agency credit program. • Individual will also process any task as needed to relieve the loads of others in the department. Education/Experience/ Licenses/Certifications • High School diploma required; college degree preferred. • Three to five years in company or agency underwriting. • Agency experience preferred • Property/Casualty License required Submit Cover Letter and Resume to: Robin Bilodeau robin.bilodeau@nfp.com
HELP WANTED
Personal Lines Insurance Agent The Crowley Agency has been in business since 1947 providing excellent service and products to our many loyal customers. We currently have an open position for a licensed personal lines agent with the opportunity to grow into commercial lines. The ideal candidate would be personable, possess excellent communication skills and really enjoy helping people. This is a full time position with office hours and basic computer skills are required. We offer competitive salary, commision & benefits based on experience and qualifications. Please send your resume to Gail McKenna at gailm@crowleyagency.com For more details regarding our products and the companies that we represent please visit our website: CrowleyAgency.com
17
?
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
PROTECT
your business with an E&O umbrella endorsed by IIABA
meet the needs of independent insurance agents Broad coverage over primary casualty lines,
including E&O Limits available up to $10 million over
CONSOLIDATE coverages with one carrier and avoid potential gaps
underlying primary E&O policy Will be available in 50 states and the
District of Columbia May to be written over a variety of E&O
carriers Contact your state association to learn more or to receive a quote today:
www.independentagent.com/EOContact
SECURE your agency’s future with the largest writer of agents professional liability in the country
SUPPORT your state association while protecting your business
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
HELP WANTED
Titus Insurance Agency in Shelburne looking for an experienced Commercial Lines Account Manager to join our team. Candidates should demonstrate enthusiasm, a positive attitude, and strong communication and problem solving skills. You will be responsible for building relationships with our clients and carriers by delivering exceptional customer service, coverage review, looking for opportunities to provide relationship value, and process endorsements and payments for existing clients. Primary Expectations: Respond to and resolve account related inquires, policy changes, handle complex customer calls in a timely and professional manner and take ownership to resolve customer issues that will foster long term relationships within the agency. Understand the carrier’s capabilities and systems, their underwriting appetite in
order to remarket clients, round accounts, and write new business. Create the #1 customer experience in the independent agency system that creates value and increases retention. Requirements: Licensed individual with 3 years of P&C experience with extensive knowledge of commercial lines. Offers a VERY competitive compensation and benefits plan Please send resume to Donna Wagner via email Donna@titusinsurance.net or Annette Hannah at Annette@ titusinsurance.net or mail to Titus Insurance Agency, PO Box 476, Shelburne, VT 05482.
ALL INQUIRIES WILL BE STRICTLY CONFIDENTIAL.
Free Legal Consultation for VIAA Members – Up to 30 minutes KEIDEL, WELDON & CUNNINGHAM, LLP Attorneys at Law
Mergers & Acquisitions Professional Liability Defense
Litigation
Pre-Litigation Services
Loss Control
Producer Agreements
Agency Contracts Contract Disputes
Contact: James Keidel, Managing Partner jkeidel@kwcllp.com|914.948.7000 Bar Admissions: Vermont, New York, Connecticut, New Jersey, North Carolina
Experienced| Economical | Effective
VERMONT
Quarterly Meeting February 16, 2017 VIAA, 600 Blair Park Road, #100, Williston, VT Time To Be Announced Check your in-box for a meeting invite!
Questions? Brady Hecht brady.hecht@fmins.com
21
I AmTrusted Join our unmatched team of independent agents offering workers’ comp and commercial lines insurance, including:
• Small-Business, Multi-Line Coverage • 3rd Largest National Workers’ Comp Provider • A.M. Best Rating of “A” (Excellent) FSC “XIV”
Get started with an application at amtrustnorthamerica.com or call 877.528.7878 for more information.
Connect with us A.M. Best Rating of “A” (Excellent) FSC “XIV”
VT Department of Financial Regulation
Three Vermonters named to Captive Review Hall of Fame Honorees recognized as among the most influential in the captive insurance industry
Vermont’s economy, and I look forward to working with Dave and the entire department.”
David Provost, deputy commissioner of the Captive Insurance Division of the Vermont Department of Financial Regulation, has been honored as one of 13 inductees to the Captive Review Hall of Fame. Also named were Leonard Crouse and Edward Meehan, Provost’s predecessors in the Captive Insurance Division.
Michael S. Pieciak, DFR commissioner, praised Provost as an invaluable asset to Vermont and the captive insurance industry globally.
According to Captive Review magazine, the Hall of Fame will recognize the “most influential individuals the captive industry has produced.” Its editor, Richard Cutcher said the magazine wants to recognize people who have “shaped and driven the captive journey over the past half-century.” Governor Peter Shumlin commented on the strength of the Vermont captive market. “This is great news and a well-deserved honor,” Shumlin said, “The truth is, Vermont has one of the strongest captive insurance markets because of the hard work of people like Dave. This is great recognition of all Dave has done to make Vermont’s captive program one of the strongest in America.” Governor-elect Phil Scott agreed. “I want to congratulate Deputy Commissioner Provost on this honor. The fact that he and two former Vermont state employees received this honor is a testament to the good work the Department of Financial Regulation does in the captive insurance industry. His Division has overseen a predictable and thoughtful regulatory system that supports businesses and consumers,” Scott said. “This is an example of how government can work with the private sector to improve
“Dave is a terrific leader both at DFR and internationally within the captive insurance industry. His unique blend of expertise, approachably and humor helps keep Vermont at the forefront of the captive world and Vermont is very lucky to have him,” he said. Provost said he is humbled by the nomination. “I’m humbled and honored to be named to the same list as the man who invented captive insurance, and three captive stalwarts who hired and mentored me,” he said. “It’s a team effort that makes Vermont a special place, and this honor is a reflection on all of the great people in the Vermont captive insurance industry, past and present, who have contributed to our ‘Gold Standard’ reputation. “ Captive insurance is a regulated form of selfinsurance created by companies or groups of companies as an alternative to traditional insurance and is designed to better manage their own risk. Vermont’s captive insurance industry employs more than 1,400 people in full- and part-time positions and is the largest captive insurance domicile in the U.S. and the third largest in the world. Vermont was named “U.S. Domicile of the Year” for captive insurance four of the last five years, and in November earned the distinction of top “Non-European Union Captive Domicile of the Year” from the European Captive Forum. Edward Meehan Meehan served as Vermont’s first captive insurance director in the 1980s. Captive 23
Review called him one of the “early pioneers and architects of onshore captive insurance in the United States.” The magazine also said he is “widely regarded as the man to kick-start Vermont’s captive insurance journey and set it on the road to the ‘Gold Standard’ status it holds today.” Meehan died in 2014.
1990s to 2008, a time that firmly established Vermont as the leading captive domicile. David Provost
Provost joined the department in 2001 and took the reins from Crouse in 2008. He has been named the most influential person in the captive insurance world four times by Captive Review magazine and in 2013 guided Leonard Crouse the signing of Vermont’s 1,000 captive. During his tenure, Vermont has added 256 captive Crouse shepherded the department’s captive insurance division through what Captive Review insurance companies to its impressive list that now numbers 1,086. Provost received the 2000 called Vermont’s “crucial growth period.” Vermont Captive Insurance Association Captive More than 600 captive insurance companies Crusader Award and has ranked in the top three were licensed during his tenure from the on Captive Review’s “Power 50” list in the past four years, topping the list in 2015 and 2013.
Are you trying to reach Vermont’s Independent agents? Do you have a great ad that represents your company and have nowhere to place it? Are you looking to hire? Place your ad in VIAA’s monthly publication and have the opportunity to advertise and market to Vermont’s Independent Agents.
Questions on how to place an ad? Contact Mary Eversole at meversole@viaa.org for placement options and advertising rates. Vermont Insurance Agents Association ATTN: Advertising/ 600 Blair Park Road/Suite 100/Williston, VT 05495
24
VT Department of Financial Regulation
Governor Scott Reappoints Commissioner Pieciak Vermont Governor-elect Phil Scott announced he would reappoint Michael Pieciak as commissioner of the Department of Financial Regulation. The department will also retain the deputy commissioners for each of its four divisions, which include Cynthia Stuart for Banking, Kaj Samsom for Insurance, William Carrigan for Securities, and David Provost for Captive Insurance.
the North American Securities Administrators Association (NASAA) and member of the National Association of Insurance Commissioners (NAIC). He previously practiced law in Skadden, Arps, Slate, Meagher & Flom LLP’s New York office, and at Burlington’s Downs Rachlin Martin.
Additionally, Deputy Commissioner Stuart was appointed in January Commissioner Pieciak was 2015 and has worked in banking Michael first appointed to this role in July Pieciak for nearly two decades. She oversees the 2016, serving as the chief regulator of division that regulates and examines the state’s financial services sector. Prior to financial services entities, including banks, credit that appointment, he served as the deputy unions, lenders, mortgage brokers, sales finance commissioner of the department’s Securities companies, debt adjusters and money servicers. Division, where he led the investigation into the Appointed in 2014, Deputy Commissioner Jay Peak EB-5 projects. In 2014, the department Samsom and has served in the department modernized the state’s securities laws to allow since 2006. The Insurance Division is Vermont businesses to raise capital through tasked with maintaining affordability and equity crowdfunding, making Vermont a availability of insurance for Vermonters, leader in the local investing movement. ensuring reasonable competition among “Michael has demonstrated a strong commitment to protecting Vermonters’ financial security, especially throughout the EB-5 investigation, while also thinking outside the box to help foster entrepreneurship by modernizing systems to help Vermont meet the demands of a new marketplace,” Governor-elect Scott said. “I’m looking for leaders in every agency and department to step up and think differently about how we can better serve Vermonters and grow our economy. Michael and his deputy commissioners have each shown that it is possible to be innovative and modernize, while also safeguarding the security of Vermonters and Vermont businesses.” Commissioner Pieciak is an observer member of the Securities Exchange Commission (SEC) Advisory Committee on Small and Emerging Companies, treasurer and board member of
insurers and protecting consumers against unfair and unlawful business practices.
Deputy Commissioner Carrigan was appointed in July 2016 and has worked in the department since 2007. Carrigan is a Certified Fraud Examiner and was a member of the team that investigated the Jay Peak EB-5 matter. He oversees the division’s efforts to protect the Vermont investing public from fraud, and promote development of Vermont’s capital markets. In addition, Deputy Commissioner Provost was appointed in June 2008 and has been with the division since 2001. He leads the division in its mission to maintain and enforce a regulatory system that attracts quality captive insurance business to Vermont and advances the growth of this sector. 25
THE MEETING SPACE YOU’VE BEEN LOOKING FOR
Register Today!
Calendar: viaa.org/Education/Pages Webinars: iiavt.aben.tv/
Fill the Funnel Phil Schuman One of the key disciplines that separates average salespeople from stellar salespeople is developing and maintaining a healthy pipeline of prospects. Average salespeople hone in on a few promising leads and hope and dream with all their might that they work out. But the nature of selling is that as skilled as we are as salespeople there are many reasons beyond our control why a sale may ultimately not work out, or at least take longer than we anticipate. Until a deal is signed, banked (and any refund deadlines passed!) it is never a done deal. The simple and irrefutable law of numbers dictates that the more qualified prospects we have in our funnel the greater our chances to close deals and open lasting business relationships. One of the most effective ways to turn a prospect off is to appear over eager for their business. The challenge with relying on just a handful of prospects at any given time is that your desperate need for them to work out will surely show and push the prospect away. Although it’s our job to encourage and influence the prospect to see the benefits and value in what we’re offering, it’s also our job to empower the prospect to feel like they are making the final buying decision rather than being sold. This can require patience but patience is not something we can afford to have when we absolutely need every deal we are working on to close at the specific time we require to hit our numbers. Some deals take longer to close than others which is why if we have a healthy pipeline of leads at all different stages of the sales cycle, then we are allowing for the art of patience within our arsenal of sales strategies. Maintaining the funnel is equally as important as developing it. Daily prospecting is the engine room and oxygen of the sales process. The challenge with selling and the autonomy 30
the job affords us is it’s very easy to put off prospecting one day with a promise to ourselves that we’ll double down the following day. Nobody will know and there are many seemingly more pressing activities within the sales process we can be focused on instead. The challenge with this is two-fold: the more we delay our daily prospecting efforts the harder it is to catch up and the worse our average input into the funnel becomes. The second challenge is if we don’t prospect on any particular day it actually makes no difference to our sales results in the moment. Psychologically we think we’re ok. Even a week later it won’t make much difference if we already have a healthy existing funnel to work from. But sure enough a month or even a quarter later it comes back to bite us and we wonder why sales is such a bumpy, roller-coaster of a ride when sales have suddenly seemingly dried up. The truth is we have created the roller-coaster ourselves by not consistently adding to the pipeline. It doesn’t take any massive action if we’re adding to it consistently – just daily incremental additions which over time compound our net sales results. Just like skipping a regular routine such as going to the gym or maintaining a diet, once we’re out of the habit it takes much more effort to get it back on track. A robust sales funnel enables us to measure and evaluate our sales effectiveness at each stage of the sales process and puts a consistent sales roadmap in place. Building and maintaining a healthy pipeline of leads is one of the surest ways to maximize success in selling. CRMs (Customer Relationship Management) software does all the work for us in terms of managing our prospects – all we need to do is constantly be adding to the funnel with qualified prospects and we’ll be able to present the benefits of our product to each
potential customer with more confidence and patience. Sales results are directly determined by the quantity and quality of the leads we nurture. As Robert Louis Stevenson says: “Don’t judge each day by the harvest you reap but by the seeds that you plant.” Happy Selling! The Schuman Group empowers sales teams with real world tools through sales training, coaching and consulting services.
www.schuman-group.com
Perpetuate the Industry? Check.
Don’t wait until the office is empty to find new talent – support InVEST and find new recruits now. InVEST is a free, classroom to career program designed to increase awareness of the insurance industry with high school and college students. And, InVEST has been making huge strides over the last year. With a new student center, career center and more scholarship dollars than ever before, InVEST is touching more and more students daily. InVEST, a 501 (c)(3) non-profit, is supported by financial contributions from insurance companies and individuals, in addition to the active involvement of hundreds of insurance professionals. For volunteer and donor opportunities visit www.investprogram.org.
Everything you insure is on your shoulders
Who do you trust to have your back? VIAS offers the most prestigious Errors & Omissions carrier(s) in the country: Westport Insurance Company & Utica National Insurance Group
For a quote or for more information contact Helen Collins at hcollins@viaa.org or 1-844-609-1481
www.iiaba.net/eohappens
VIAS is a subsidiary of Vermont Insurance Agents Association viaa.org
All Talk? Be careful what you promise on your website Ellen McCarthy Technology has done wonders to increase an insurance agency’s productivity and sales goals. But the statements an agency makes on its website and marketing materials can lead to serious, unintended consequences from an E&O perspective. Consider John Client, who owns several older apartment buildings. He comes to your agency seeking property coverage for the buildings. You meet with John, visit the buildings and procure a policy based on the limits John specifically and unequivocally requests. Several months later, one of the buildings burns down due to faulty wiring. The carrier pays the full policy limits to John. Dissatisfied with his recovery, John then sues the agency, asserting that the amount of coverage on the building was inadequate and that the agency should have recommended higher limits.
a “special relationship” existed between you and John. In the event of a special relationship between agent and customer in your state, the agent may have an affirmative duty to advise about types and limits of available coverage. Your website language makes you susceptible to an adverse finding. Subsequently, your E&O carrier enters into a negotiated settlement of John’s claim with your consent. While hypothetical, the above situation is not at all unusual. Thoroughly review your website and other marketing materials, asking: • Could any representations create unrealistic customer expectations? • Does the content make promises the agency may not be able to fulfill? • Does the agency website inadvertently create a heightened standard of care? • Would you want your website statements blown up on a poster board as a trial exhibit?
Statements on your agency’s website are You meet with your appointed defense counsel not just advertising slogans. Don’t make and discuss the standard of care of insurance promises unless you can deliver. agents in your state. Your state has an “order Ellen McCarthy is a vice president and claims expert taker” standard, meaning that an agent has at Swiss Re Corporate Solutions and teleworks an obligation to procure requested coverage out of the Overland Park, Kansas office. without any duty to advise as to appropriate limits. Your defense counsel is relatively confident that you met the standard of care. All Talk? But then, John amends the lawsuit. In the newBe careful what you promise on your website complaint, John cites the agency’s website language, which advertises that it procures By Ellen McCarthy “great insurance protection,” that its “agents will help you choose the amount of coverage that best fits your individual situation,” “works hard to ensure that you are fully covered for all those Technology has done wonders to increase an risks that most apply to you” and “produces the insurance agency’s productivity and sales goals. most complete plan to safeguard your business.” But the statements an agency makes on its website Now, counsel informs you that the allegations and marketing materials can lead to serious, based on your webpage in the amended unintended consequences from an E&O complaint may be sufficient to establish that perspective.
Consider John Client, who owns several older apartment buildings. He comes to your agency 33
In Memoriam Neil Alden Sherman, of Richmond, VT passed away on December 6, 2016. He was a unique and complicated person. As our dad, he was what might be described as a “character” whose stories, legends and moonshine were at once both entertaining and enigmatic. Neil also had a wellguarded tenderness and love for his wife Phyllis, for his four children and eight grandchildren which was displayed in quiet ways. Professionally, he was known as a considerate businessman building The Richmond Insurance Agency through tenacity and grit. Born in 1927 in Wolfeboro, New Hampshire to Albert and Hetty Sherman, Neil was the oldest of three children. Moving to Baldwinville, MA in early childhood, he attended the local schools. Following graduation, he joined the US Navy in 1945 as an electrician aboard the minesweeper USS Strive where he served in the Pacific Theater clearing mines off the coast of China. Returning to Massachusetts, he married Phyllis Bourn of Baldwinville and began a family while simultaneously matriculating at the University of New Hampshire. Neil worked many jobs with long hours and at several businesses in support of his young family while working toward his degree. Graduating with a bachelor’s degree in 1955 he began work toward a MA at Boston University. At that time, he was invited to join the Traveler’s Insurance Company as a field representative. During the twenty-five years of service to this company, Neil was made a manager in offices around New England Including Burlington, VT, Worcester, MA and New Haven, CT. In 1971, he left the Travelers and brought his family back to Richmond, VT where he started The Richmond Insurance Agency. He built 34
this enterprise into a successful concern until 2000, retiring at 72. For many years, Neil also served as member of the board of trustees, for the Howard Bank in Richmond was a trustee for the Village of Richmond, served on the Richmond Police advisory board, and donated his knowledge and time to the Richmond Historical Society for many years. His interests included participation in local drama groups, freshwater and marine fishing, gardening with vegetables and fruits, and of renovating an old sailboat salvaged from Lake Webster, Massachusetts, which, returned to Bristol fashion, sailed at Marion Bay on Cape Cod for many years during summers. It was rare to see Neil relaxing rather than being involved in construction somewhere. His projects included garages, patios, a summer camp, as well as renovating parts of many old houses the family lived in. Neil also built the antique shop in Richmond where his wife ran her own business for nearly thirty years. Neil was known by his family to be a “WalterMitty” personality. He often told of his exploits flying a Sopwith Camel over the house in Richmond and of an occasional strafing run over the Winooski River. Each year renewed his interest in acquiring a monocle and swordcane as part of his perceived persona as an RAF pilot. For a decade, he asserted witnessing a unicorn browsing from time to time in the back yard. His children grew up being told that his twin brother, Nero had inadvertently gone down the bathtub drain when they were children and that in his twenties he’d attended the Sorbonne in Paris. One never knew what story might be crafted next. Everyone accepted these as part of the droll humor of our father/ husband and even came to put credence into elements of whatever was shared.
Company News ACUITY GROWS TO NEW RECORD IN REVENUE, ASSETS IN 2016 Acuity announced its 2016 growth results, reporting a gain of over $46 million in total written premium. The amount brought Acuity’s revenue to an all-time high of $1.38 billion for the year. “For the past 17 years, Acuity has consistently grown faster than the insurance industry. Over the past six years alone, we have added $600 million to topline revenue,” said Acuity President and CEO Ben Salzmann. Acuity achieved balanced growth across its business in 2016. The company achieved an incredible 20th consecutive year of premium increase in personal lines and reached a record $1 billion in written premium in commercial lines. Acuity is poised to continue its growth in 2017 due to its competitive strengths and market positioning. “Acuity’s financial success in 2016 is a tribute to the partnership between our dedicated staff and trusted agency force and the faith of our mutual customers,” said Wally Waldhart, Vice President - Sales and Communications. “We are thankful to everyone who helped us achieve another record-setting year, and we look forward to continued success in 2017.”
35
INNOVATIVE SERVICES TO GROW YOUR BUSINESS
Imperial PFS® is committed to providing VIAA members exclusive rates, terms, and industry leading technology. Errors and Omissions Special Financing Compete in today’s market with special rates and terms provided by Imperial PFS®.
Credit Card and ACH Down Payments Save time and let Imperial PFS® collect your premium finance down payments electronically
eSignature Capabilities Process loan agreements faster and easier with electronic signatures.
STEVE ABRAMOVITZ | 617.990.2364 | steve.abramovitz@ipfs.com
Visit us today at ipfs.com or follow us on social media for news and updates on Imperial PFS®
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 © 2016 IPFS Corporation. All rights reserved.
Helen Collins hcollins@viaa.org
Vermont Insurance Agents Association Partner Program Granite
Mt Mansfield Maple AmTrust North America, Inc. Travelers
Champlain Berkshire Hathaway GUARD
Ethan Allen
CNA Meadowbrook TPA Associates
Hanover Insurance Group
New England Excess Exchange, LTD
Imperial PFS
Main Street America
MAPFRE|USA MEMIC Patriot Insurance Company
Thank you 2017 Annual Partners