GMA July 2016 by VIAA

July 2016

GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION

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

July 2016 4 Message from the President 7 VT Department of Financial Regulations Press Release 8 Young Agents News Brief 10 Help Wanted

President Daniel Lussier

Features 15 Road Pledge

Vice President Peter Richards

16 TrustedChoice.com: An Unanticipated Benefit

Secretary/Treasurer Erin Odell IIABA & PIA State National Director Ron Bixby

18 Brexit and the P&C insurance industry: What’s next?

Chip Ams

24 Should You Issue ‘Blank’ Certificates of Insurance?

Alan Kinney

27 Sales Success: Fear is a Liar

Directors

Paul Plunkett

Staff Executive Director Mary Eversole meversole@viaa.org

GMA Publication Design Thorin Markison thorinmarkison.com

31 E&O: How Strong is Your E&O Prevention Culture?

News 33 The Richards Group 35 David Sawyer 36 Jr Golf Tournament

Are you trying to reach Vermont’s Independent agent’s? 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

Message from the President Vermont Mutual Insurance Group® for their generous sponsorship of our campaign. On behalf of the Board of Directors and our members, we would like to wish Commissioner Susan Donegan, Department of Financial Regulation, good luck on her next venture. We’ve appreciated her leadership, accessibility and sense of humor over the last few years. She will be missed.

Summer Time is Here! Summer is one of the best times of the year in Vermont. While everyone is getting outside there is a lot going on inside VIAA. As some of you remember, VIAA merged with the local chapter of The National Association of Professional Insurance Agents (PIA) in 1999. Since that time we have been sustaining the membership for twenty members. After several months of discussion on the cost benefits of this membership your Board of Directors voted to surrender our charter with PIA. VIAA is no longer affiliated with this organization. VIAA remains affiliated with the Independent Insurance Agents & Brokers of America, better known as the Big “I”. It’s also the time of the year for the Agent Awareness Campaign. There is still time to participate. This is a great deal and it maximizes your advertising budget. You’ll find more information about the campaign inside this edition. We’d also like to thank Concord Group Insurance, Co-Operative Insurance Companies, Union Mutual of Vermont Companies and 4

Last but not least, registration is open for the 110th Annual Convention and Golf Tournament! Bill Wilson, the nation’s foremost leading expert on form, coverage, and technical issues will present continuing education this year. Our phenomenal Young Agents Committee is taking over the entertainment again this year and will host a beer tasting. We will wrap up convention with golf at the Country Club of Vermont. CSRs and Young Agents attend the VIAA Convention for free thanks to our company partners! “Let the Good Times Roll” - Laissez le bon temps rouler! Enjoy the summer and stay safe on the roads.

Dan Lussier, VIAA President

SAVE THE DATE FOR VIAA'S LARGEST AND MOST ANTICIPATED EVENT OF THE YEAR! Approximately 300+ member agents, Young Agents, and company representatives join together to network and learn. This event is an invaluable opportunity for insurance professionals of all ages, rank, and experience levels and is a must-attend for all independent agents. This year, the Annual Convention includes informative Continuing Education sessions with William C. Wilson, Jr., CPCU, ARM, AIM, AAM and lively social events along with golf. The Young Agents Committee is hosting Casino Night. Local and national exhibitors will be in attendance to provide updates on their

ons b s le mps te

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FOR MORE INFORMATION OR TO REGISTER, GO TO VIAA.ORG 6

oll! es r m i t d goo e h t Let

D.F.R.Press Release Wells Fargo pays DFR $300,000 in penalties for misguiding client Customer complaint spurs investigation The State of Vermont will receive $300,000 from Wells Fargo Advisors as the result of a recent investigation conducted by the Department of Financial Regulation. Commissioner Susan L. Donegan announced today that Wells Fargo will pay an administrative penalty of $270,000 to the general fund, $15,000 to reimburse the department for the cost of the investigation and $15,000 to the department’s education and training fund. The investigation stemmed from a customer complaint alleging that a Wells Fargo investment advisor had made unsuitable recommendations regarding investment accounts and that the company’s representatives were not adequately trained or supervised. In addition to the $300,000 paid to DFR, the complainant will receive restitution for all fees and commissions charged.

Donegan said she was pleased with the cooperation Wells Fargo provided during the examination and satisfied with the actions the company has been taken to correct the erroneous procedures. “Wells Fargo has made changes to several practices and implemented a number of corrective actions that will result in improved policies and procedures,” she said. “Those remedial measures include a continuing education and training programs for financial advisors and supervisory personnel who are involved in investing consumer funds, which will ensure that Vermonters’ accounts are more closely monitored.” Wells Fargo is a Vermont licensed securities broker-dealer with an office in Burlington.

The department found the company had violated some internal policies and procedures relating to investment strategies and has made changes to its written supervisory procedures.

VERMONT

WALK FOR WISHES September 04, 2016 VIAA and Trusted Choice® are major sponsors again of this year’s Walk for Wishes, which will be held on September 4th, 2016, at Centennial Field in Burlington, home of the Vermont Lake Monsters. We are looking for increased industry participation this year. All VIAA members and the insurance industry are invited to join us in this fun event! Please mark your calendars and watch for more details from VIAA’s Young Agent Committee – the organizers of our industry’s effort. Ways for you and your company to make a difference:

•Form a team of walkers •Contribute on behalf of a walker •Spread the word!

Make-A-Wish Vermont grants wishes to children with life-threatening illnesses. For more information, contact VIAA YAC Dan Rodliff at 802-448-7157.

NEXT QUARTERLY YOUNG AGENT’S MEETING THURSDAY | AUGUST 25, 2016 Noon – 2 PM | Lunch Included Union Mutual, 139 State St., Montpelier, VT RSVP: Kerri O’Connor, Vermont Young Agents Committee President. SPONSORED BY

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HELP WANTED: Commercial Lines Producer

Ohio Mutual Insurance Group is seeking an experienced Commercial Lines Underwriter to service the states of Maine, New Hampshire, and Vermont. This is a work-from-home position responsible for new business, renewal, and endorsement referrals. The Commercial Lines Underwriter performs functions to review, evaluate, and analyze risk coverage for commercial lines liability insurance while acquiring business that is profitable for the Company. The position services the agency force as a main contact regarding underwriting and coverage questions; meets with agents to further build a positive relationship with the agency force, and to generate additional business. The position also trains new employees and assists less experienced underwriting associates in understanding coverages and analyzing risks. The candidate should possess a College degree with a major in business, marketing, or other related area; or a minimum of three years of previous underwriting experience with in the Property and Casualty industry. Continuing insurance education and obtainment of the CPCU designation is preferred. The candidate must demonstrate strong interpersonal skills for dealing with other associates, agents, and other outside contacts. Also, the ability to negotiate, persuade, influence, and deal with adversarial situations is required. The above is intended to describe the general content of and requirements for the performance of this position. It is not to be construed as an exhaustive list of duties, responsibilities and requirements. United Ohio Insurance Company (a corporation owned by Ohio Mutual Insurance Group, providing personnel services for Ohio Mutual Insurance Group) is an equal opportunity employer. United Ohio Insurance Company will comply with any legal obligation to provide reasonable accommodation to otherwise qualified individuals with disabilities. To apply, please visit our career page: https://omig.applicantpro.com/jobs/

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Please send your resume to: Dan Rodliff Vice President, NFP P&C PO Box 2243 South Burlington, VT 05407 Or Email: dan.rodliff @nfp.com

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TAKE A STAND FOR ROAD SAFETY Fatal crashes in Vermont have increased 63% from 2015. Nearly half of these fatalities were due to people failing to wear a seat belt. Lack of seatbelt use is up over 50% this year. VIAA is a proud member of the Vermont Highway Safety Alliance. The VHSA brings together a public/private partnership to lead the effort to reduce crashes on our highways. The organization is a non-profit corporation with a board of directors. We encourage everyone to take the pledge to make our roads safer.

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TrustedChoice.com: An Unanticipated Benefit When the concept that became TrustedChoice. com was conceived, the core idea was that we would get new business to member agencies of the Big I, primarily from the direct writers and captive agencies. Mike McBride, the Chairman of the Trusted Choice® Board recently related the following success story that came from an entirely unexpected direction, one of their own insureds. As Mike tells the story: The CFO for one of the agency’s commercial accounts had some personal lines needs, but he never realized that he might be able to have his needs fulfilled by Mike’s agency. The CFO found TrustedChoice. com, and did a Find-An-Agent search. When Mike’s agency was displayed, the client recognized the agency and had the perfect ‘Aha!’ moment. The CFO had never identified that he could get his personal coverages from his commercial agent. Once he had that realization, there was no question about who he was going to contact. A great win for the agency and the client, all facilitated by TrustedChoice.com! As Mike told me, “Fortunately, TrustedChoice.com served as a safety net for us to catch this individual.” May Breaks All Records for Traffic and Referrals TrustedChoice.com performance has continued to improve dramatically through the first 6 months of 2016. We ended May with over 405,000 visits, and we delivered 8,133 referrals to Advantage agencies during the month. In addition, we had 1,183 inquiries to Basic (non-subscribing) members. 16

New Consumer Workflow Prior to the end of June, TrustedChoice.com will have a new and revised consumer workflow. This workflow will require the consumer to enter their contact information prior to getting the results of a Find-An-Agent search. This change is designed so that when the consumer chooses to ‘Contact’ one of the displayed agencies, an email will automatically be sent to the selected agency, providing notification to the agency for all referrals, even phone calls. The intent is to provide real time information to agencies in order to improve their understanding of the prospects who are contacting them. In the coming months, we’ve got many improvements scheduled for TrustedChoice. com. Some will provide more value for consumers, and others will be targeted at helping agencies and companies attract and write more of the business they prefer. Good Selling, Marty Marty Agather, CPCU, AR M

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Ads on WCAX: 8 Cable TV Ads: 57

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What your fellow agents have to say about the VIAA Trusted Choice campaign: “No other campaign I have been involved in delivers more exposure to my agency than VIAA’s Trusted Choice advertising program.” - Jon Jamieson, Jamieson Insurance

VIAA TRUSTED CHOICE BRANDING CAMPAIGN HIGHLIGHTS

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at our different locations to making sure we had the best TV placements, including the Superbowl. What can be better than that?” -Daniel Rodliff, NFP

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Brexit and the P&C insurance industry: What’s next? From www.propertycasualty360.com In a historic vote on June 24, the U.K. electorate voted to leave the European Union by a narrow margin: 51.9% to 48.1%. The immediate result is that Prime Minister David Cameron plans to resign, and financial markets around the world are jittery. The longer-term effects of the vote are unknown at this point. It’s likely to take several years for the United Kingdom to repeal EU legislation and regulations, and there are several treaties to take into account as the process moves forward. It’s also not yet clear how the U.K.’s actions will affect its relations with such non-EU countries as Switzerland and Norway. For insurance companies, the implications are similarly not yet clear. Lloyd’s of London Chairman John Nelson said in a statement, “I am confident that Lloyd’s will stay at the center of the global specialist insurance and reinsurance sector, and I look forward to continuing our valuable relationship with our European partners. “For the next two years, our business is unchanged,” he added. “Lloyd’s has a well-prepared contingency plan in place and Lloyd’s will be fully equipped to operate in the new environment.” Insurers face Solvency II concerns Daniel Bruce, director at Crowe Horwath LLP and co-founder of London-based insurance industry risk consulting firm BaxterBruce, addressed the possible implications with the EU’s Solvency II directive, which introduced a new, harmonized EU-wide insurance regulatory regime. “We expect the Solvency II requirements to remain, both in the short term during the two-year negotiating period and in the long term, through the granting of formal equivalence status. The U.K. has been a key player in formulating the Solvency II requirements, and we expect that the Prudential Regulatory Authority will be keen to proceed on a similar path.” 18

In this current period of excess volatility, Bruce expects there to be increased oversight of companies from the U.K.’s Prudential Regulatory Authority and the U.K.’s Financial Conduct Authority. “In particular, the PRA will be keen on insurance companies ensuring that their stress and scenario testing is up to date and reflective of the current economic and political environment. They will expect remedial management actions to be taken, as and where necessary, to maintain ongoing solvency.” Related: U.K. insurers reel as Brexit threatens $2.6 trillion of assets Insurers operating in more than one market will need to reassess their underlying market risk exposures, as well as any potential changes to the correlations across risk exposures, Bruce says. For example, U.K.-based companies with EU-based subsidiaries may become exposed to significantly more currency risk because of the volatility of the exchange rate. Assumed diversification benefits across international insurance entities at a group level may need to be revisited in light of the referendum outcome. Comments from insurance industry A round-up of comments from others in the insurance industry (thus far) follows: XL Group plc: “This is an outcome that we have been preparing for, and over recent months we have worked across the business to understand how a vote to leave the EU may impact XL Catlin, and in particular our UK and European operations,” CEO Mike McGavick said in a statement. “Now that this historic vote has taken place, we will be working on the various operational and administrative aspects relating to the U.K.’s withdrawal from the EU. Fundamentally, we believe our strong global network and footprint keeps us well-positioned to continue delivering for our clients.” International Underwriting Association of London: “The London insurance market is resilient and well-positioned to respond to the result of the referendum on the U.K.’s

membership of the EU,” The International Underwriting Association of London stated. The association’s statement noted that the insurance industry has been preparing for the possibility that the vote to leave would succeed and considering how to adapt their business plans. The statement also urged that the financial services industry — including insurance — must form a key part of any discussions about a new trading relationship between the U.K. and the remaining EU member states.

Frank Nutter, president of the RAA, commented, “The impact of Solvency II, and now Brexit, has fostered some uncertainty for U.S.-based companies doing business in EU countries. In light of the Brexit vote, it is important for the covered agreement negotiations between the U.S. and EU to remain a top and immediate priority among all concerned parties. Such an agreement can resolve uncertainty and set a precedent for future regulatory agreements.”

represented as developments continue.”

“Today, in fact, Bermuda is better placed than ever to cater to the contemporary needs of international business. Attributes such as our stand-alone Solvency II equivalence with the EU and our progressive path towards Alternative Investment Fund Managers Directive passport rights in Europe may now appear even more attractive than they were a day ago. These are examples of regulatory votes of confidence given to Bermuda as a

Bermuda Business Development Agency: The In a formal statement, Dave Matcham, chief CEO of the Bermuda Business Development executive of the association, added: “Clearly, Agency, Ross Webber, today made the the U.K.’s decision to exit the EU presents following statement on the United Kingdom’s challenges for London Market companies vote to withdraw from the European Union: and uncertainty surrounding the potentially “The United Kingdom has voted to leave prolonged nature of this process will be the European Union, and the question now problematic for future planning. Our industry is, becomes how the actual process of that exit however, experienced in responding to change. will be carried out. There is naturally much “The free trade benefits of EU membership have speculation and uncertainty over the vote’s political implications, as well as its sociobeen vital in maintaining London’s position as economic impact, and industry around the a global insurance hub and are highly valued world will be closely monitoring how this affects by IUA members,” he continued. “This is the markets and business landscapes of the EU, true both for insurers headquartered in the Britain and their respective trade partners. U.K. and those international firms that use London as their centre for European business. “In a global economy, Bermuda is affected, like other nations, by such major events,” “We know that many companies will Webber added. “We stand ready to deal now be considering their own individual with myriad eventualities. No matter how responses. Continued access to European the exit unfolds, we remind our business markets is essential and will, I expect, be at partners in the U.K. that Bermuda continues the forefront of the process to respond to to offer the same stable, attractive, effective the referendum decision. The IUA will be and proven blue-chip international business working with the London Market Group domicile as it has for the past 70-plus years.” to ensure our industry’s views are fully Reinsurance Association of America: According to a statement from the Reinsurance Association of America, the stabilizing benefits that global reinsurance markets bring to communities are more important than ever, and the United States and EU should remain focused on reducing impediments to the free flow of capital and risk transfer, particularly related to conducting cross-border business.

continued on pg 20

robust jurisdiction in its own right, and not contingent on our relationship with Britain.

insurance capital have served clients well for centuries and will continue to do so.

Bermuda Insurance Management Association: “As an economic bloc, the European Union is stronger with the United Kingdom in it, yet respect has to be given to the decision of the British people in yesterday’s referendum. It likely will take years for a full departure of Britain from the EU, therefore it remains premature to comment on any effects the vote will have on the captive insurance market,” said Grainne Richmond, president of the Bermuda Insurance Management Association.” BIMA and our members will be monitoring the process closely in the U.K.”

Law firms weigh in

Association of Bermuda Insurers & Reinsurers: According to Bradley Kading, president and executive director of the Association of Bermuda Insurers & Reinsurers, Bermuda’s Solvency II equivalence finding by the European Union will serve it well as the U.K. negotiates its multiyear transition out of the EU. “The Bermuda equivalency is unaffected by the U.K. vote,” Kading adds. “ABIR has excellent relationships with both U.K. and EU policymakers and regulators. ABIR members provide vital insurance capacity that makes U.K. and EU insurance markets more competitive. ABIR members will be reviewing corporate structures to determine what changes in their regulatory footprints may be necessary in order to conform with expected changes in European regulatory governance.” Lockton Cos.: In posting on its website, Lockton said that it believes the change — as regrettable as it is — will create opportunities for its clients, its insurer partners and its business. The change will likely create new products, new corporate structures and new businesses. Lockton said it also believes that the London market and Lloyd’s will remain crucial hubs in the insurance world. The rich depth of resources, expertise, and 20

CMS: “Seismic, just seismic for the global insurance market based here,” says Stephen Netherway, an insurance partner with Londonbased commercial corporate law firm CMS, which counts insurers among its clients. “The playbook for distribution and route to European market has just been ripped up, and we enter the world of [former U.S. Defense Secretary Donald] Rumsfeld’s ‘unknown unknowns.’ “For non-EU domiciled insurers and brokers based here, first up for review must be redomiciliation to preserve the certainty of single-market access. For others, can London remain a fulcrum for HQ operations, and if not there will be shrinkage? And spare a thought for those insurers domiciled in Gibraltar, many with strong U.K. links and workers. This is their Brexit, too, and they face the spectre of the flight of their passporting rights.” Kaufman Dolowich & Voluck: Kevin Mattessich, managing partner of Kaufman Dolowich & Voluck’s New York City office and who concentrates his practice on U.S. and London Market insurers, notes that it may be years before we see whether Brexit has a sustained effect on the London insurance market. In the short run, he explains, dramatic change always roils financial markets, so of course financial institution and insurance stocks may suffer with the rest of the stock market. The medium term may require some reshuffling of insurers’ three- to five-year plans, Mattessich says. “London’s involvement in at least some quarters of the U.S. insurance market has not been as great in the past decade as it once was, in part because of opportunities for London in the European market.” Now, London insurers doing business in the EU may have to step back and readjust plans if trade barriers or other costs of doing business go up. Increased costs of doing business on the continent may lead those insurers continued on pg 22

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Brexit and the P&C insurance industry: What’s next? (continued) back to doing more business in North and South America or in the Far East, markets where London has a long-established presence that it can easily increase. Mattessich adds, “This leads one to wonder whether an anticipated absence of London in the EU might harden the insurance market there, and whether greater involvement elsewhere could have the effect of further softening those markets. That again remains to be seen, but in the long run, Brexit is just like any market change — the prospect of immediate turmoil will be followed by the opportunity to make money for those who think it all through.” Venable: Ashley Craig and Lindsay Meyer, partners in Venable’s Washington, D.C., office who counsel both U.S. and foreign interests on transactional matters and cross-border regulatory and policy concerns, noted that many U.S. financial institutions and insurance companies currently operate from the United Kingdom solely because they are able to provide services across the EU from their base in the United Kingdom (called “passporting”). “Unless otherwise agreed between the EU and the U.K., this will no longer be an option after a U.K. exit,” the partners said. As a result, non-EU financial institutions and insurance companies might consider leaving the U.K. as a whole and establishing themselves in other EU countries (for example, France, Germany, Ireland or the Netherlands). “This will likely result in a spill-over effect on the business of other U.K.-based service providers, including law firms,” they added. How the British voted The vote on whether to leave the EU reflected internal regional differences. For example, in Scotland 62% of voters said the United Kingdom should remain, while only one small section of England voted to stay. Here is a look at the way the vote broke down: Chart of UK vote on Brexit from Statista

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Should You Issue ‘Blank’ Certificates of Insurance? BY BILL WILSON A contractor asks an agent for a certificate of insurance without a certificate holder name so he can provide it as proof of insurance. The agent says they will issue a COI to anyone at the contractor’s request, but can’t provide one for him to hand out, as has always been the policy. Q: Is this the appropriate procedure? He is a new insured and claims another agency has done this for him for 20 years. A: Many people have submitted questions lately regarding the propriety of issuing ‘blank’ certificates at an insured’s request. First, I can’t imagine an upstream party accepting a COI directly from the downstream party, especially if the date is old. Second, check your agency/company agreements and supporting underwriting documentation, or contact your underwriters directly. Some agency/ company agreements specifically prohibit this practice. If a lawsuit develops from this practice, and if the insurer is stuck with it, the insurer is likely to file an E&O claim against the agency for failure to follow contractual requirements. Keep in mind that only an ‘authorized representative’ of the insurer can issue a COI to third parties. The signature line is in the lower corner of the ACORD form. The insured is not authorized to certify insurance coverages and limits to their business partners—only the carrier and agency. In addition, governing state laws, regulations or Department of Insurance directives may control this practice. I’ve seen insureds abuse this practice before. In a couple instances, the agency issued a COI without naming a certificate holder. The insured not only issued their own COI to varying parties, they also changed the date on the certificate to imply all the information was still accurate. In at least one of these cases, the agency had signed the original ‘blank’ certificate, confirming the accuracy of the information on the COI. 24

In short, when an insured requests a COI with no certificate holder name, don’t do it.” Bill Wilson is director of the Big “I” Virtual University. This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, email logon@iiaba.net to request login information.

Fear is a Liar Phil Schuman How would you like to dramatically increase your sales results immediately without learning any new particular skill? Over the last twenty years in the business of selling and sales training I’ve identified the greatest obstacle that holds salespeople back from achieving their full potential – fear! It’s something that if left unexamined and untreated can cripple what could otherwise so easily be a triumphant career in sales. I’ve seen salespeople plagued by “what if’s?” What if the prospect doesn’t want to hear from me? What if the prospect says no? What if the prospect tells all their friends not to business with me? I’ve seen salespeople take the longest driving route to the prospect’s business park just to put off having to face the potential of being told no. I’ve heard salespeople find excuses saying how Mondays are not the best day to make calls because everyone’s still catching up from the weekend. But then they say Fridays are not great either just before the weekend starts. And then excuses start creeping in for the middle of the week as well! (Every day is a great day to prospect!) So what is this fear all about? Why do we fear rejection so much and how can we conquer our fears? Put simply, our brains are instructed by our DNA to live cautiously as an instinct for survival. When out hunting for food, we shouldn’t pet the beautiful tiger in case he turns and has us for dinner. But we’ve evolved – we don’t live among the tigers anymore and we need to make sure we balance out our hardwired fears. Although rejection and failure is a natural part of a salesperson’s life, it is never fatal! It’s so important never to take rejection personally, and the very worst a prospect can ever say is “no!” Guess what? You survived! The only real way to

fail in sales is to let the liar that is fear get the best of you and not to put yourself in the way of the potential for rejection. Only by failing and being rejected will you also find those who see the great value in your product and say yes! Two of the greatest obstacles holding salespeople back from success are not prospecting enough and not asking for the business – both borne from fear. If you were 100% sure the prospect would say yes, suddenly there would be no hesitation. And in reality the only way to find out is to ask! Once we’ve identified what an imposter this sense of fear is, next we must make sure we’re overcoming it. The most effective way to do this is by being armed with a Positive Mental Attitude. Say those same what if’s to yourself, but turn them around: what if the prospect wants to hear from me? What if the prospect says yes? What if the prospect tells all their friends to do business with me? The daily consistent instruction of self-belief quickly re-programs the doubt and fear that lies in

Fear is a Liar our sub-conscious mind. Then sales success is compounded as with renewed confidence we are finding fewer reasons to procrastinate, make excuses and not do the work that is needed. Instead we have renewed energy, passion and enthusiasm for the job that lies ahead. The Law of Attraction dictates that we subconsciously attract what we think we deserve – good or bad. If you are ruled by fear the path to success in selling will be a grueling one. But if your true belief is one of abundance, this will lead you to a path of success in selling. As Einstein said: “Everything is energy and that’s all there is to it. Match the frequency of the reality you want and you cannot help

but get that reality. It can be no other way. This is not philosophy. This is science.” How right FDR was – “The only thing we have to fear is fear itself.” 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

Vermont Insurance Agents Association Partner Program Diamond Partners

Platinum Partners Silver Partners AmTrust North America, Inc. Travelers

Gold Partners Co-Operative Insurance Cos. Hanover Insurance Group Imperial PFS MAPFRE|USA MEMIC

Bronze Partners Berkshire Hathaway GUARD CNA Meadowbrook TPA Associates New England Excess Exchange, LTD NGM Insurance

Patriot Insurance Company

Thank you 2016 Annual Partners

How Strong is Your Errors & Omissions Prevention Culture? by Curtis M. Pearsall, CPCU, AIAF, CPIA President – Pearsall Associates, Inc., and Special Consultant to the Utica National E&O Program Assessing an agency’s errors and omissions (E&O) risk management culture is easier said than done. While there is no real established formula that provides a grade, there are some valid ways to determine where the agency is on the continuum to achieving a solid E&O prevention culture. Staff Assessment and Training Agencies don’t make mistakes. People do. Start with an assessment of the agency’s staff. Does each staff member possess the necessary expertise and knowledge to professionally perform his or her duties? This evaluation should be done for each staff member. The results will help to determine if more training is needed. The insurance industry is constantly evolving with new coverages and forms, so dedicating a significant amount of energy to staff training helps ensure that they have the proper level of education on technical knowledge, systems, sales training, etc. An additional evaluation, focused on E&O prevention commitment, should also be performed. Agencies with employees truly committed to E&O loss prevention have achieved a solid step in the right direction. Job Descriptions In addition to having knowledgeable and professional employees, a strong E&O prevention culture includes employees knowing what is expected of them via documented job descriptions. Without job descriptions, there is the chance that staff members will do what they think they should. This increases the risk that certain tasks and activities will not be completed because the staff may think “that’s not my job.” Each employee should be aware of what role he or she plays and how various functions are to be performed. It is common for an agency with a strong E&O culture to have a written procedural manual. Without it, staff will handle a task the way they want to. Consistency is a key word in defining a strong E&O culture. The potential for inconsistency increases without a manual defining how the task should be done. Exposure Analysis Checklists A major cause of E&O claims involves the failure to provide the proper coverage, so a strong E&O culture should include the use of exposure analysis checklists. These lists are often referred to as “the closest thing to a silver bullet in E&O loss prevention” and will help an agency to truly know its clients. This evaluation will heavily determine the next steps in the sales cycle. Job Performance An important yet often overlooked area involves an ongoing review and evaluation of the staff’s job performance. Having the right people and a solid game plan does not guarantee success. To a large degree, the agency’s success depends heavily on whether the staff performs the necessary tasks using the expected procedures. Insurance agencies are fairly complex organizations and, for this reason, they need an internal audit process that periodically verifies to what degree staff members are meeting the firm’s expectations. Without this auditing process, mistakes will occur that can have a significant cost to the agency. The development of a strong E&O prevention culture and commitment doesn’t just happen. It requires a concerted effort from the leadership and every member of the team.

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

Agency News The Richards Group Expands Keene, NH Branch with Hire of Mike Yarosevich The Richards Group is pleased to introduce Mike Yarosevich, who has been hired to advise businesses regarding their commercial insurance and risk management needs. “We are pleased to have Mike as a part of The Richards Group’s commercial insurance team in New Hampshire. Mike brings tremendous skill and talent to our organization and we know he will be a great addition to our Keene office,” said Pete Richards, VP of Risk Management. Mike has been a Keene resident since 2001. His community involvement includes the Keene YMCA, Grace Community Church, Bretwood Golf Course and he is also an Ambassador for the Keene Chamber of Commerce.

Mike Yarosevich

“I’m excited to join The Richards Group” said Mike “the firm has an excellent reputation as a member of the community and I look forward to making use of their extensive markets, technology and expertise here in the greater Keene area.” Mike can be reached at (603)352-2535 or by email at myarosevich@therichardsgrp.com.

IMPERIAL PFS IS PLEASED TO ANNOUNCE OUR NEW PARTNERSHIP WITH VIAA. ®

IMPERIAL PFS® AND VIAA ARE WORKING TOGETHER TO CUSTOMIZE FINANCE PROGRAMS FOR MEMBER AGENCIES. To learn more about special programs for VIAA members, contact Steven Abramovitz at: 617.990.2364 or by email at: steven.abramovitz@ipfs.com

Visit us online at ipfs.com or download our mobile app today using your Android™ or IOS® device to get started.

Imperial PFS is a trade name affiliated with IPFS Corporation (IPFS), a premium finance company. Android is a trademark of Google Inc. IOS is a registered trademark of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries.

Community News Company News VIAA, MEMBERS AND COMPANY PARTNERS SUPPORT EAGLE SCOUT PROJECT Making Vermont Roads Safer with Student Driver Magnets David Sawyer, an Eagle Scout from Rutland, launched a project to get a message and safety tool to student drivers. It’s simply to place ‘STUDENT DRIVER’ magnets on the back of cars driven by new drivers in Vermont. David’s pilot project is focusing on Addison, Rutland and Bennington Counties. Commissioner Keith Flynn and the Vermont Department of Public Safety endorsed the project. David’s goal is to distribute 1,000 magnets to student drivers this summer with the help of Driver Education Instructors. He has distributed 600 to date.

David Sawyer, Eagle Scout, Rutland

VIAA, Holden Financial Services, Kinney Pike Insurance, Odell Insurance Agency, Vermont Mutual Insurance Group, Union Mutual of Vermont Companies and SAFECO all supported the project.

Company News Community VIAA Sends Junior Golfers to Trusted Choice®Big ‘I” National Championship Katie Goulet and Logan Broyles won the Vermont Trusted Choice Big “I” Junior Golf Tournament qualifying round on June 5. Goulet shot an 83 and Broyles shot a 73 on a cold, rainy day at the Orleans Country Club in Orleans, Vermont. David Pfaffenstein, Vermont Golf Association, administered the rules and scoring again this year. This year’s qualifier was coordinated by Jon Lussier, Chair of the Young Agents Golf Committee. The event was sponsored by Dan Lussier and Mike Walsh of NFP. Goulet and Broyles will travel to Sacramento in August and tee off with hundreds of junior golfers from around the country to play at Del Paso Country Club August 1.

Kathryn “Katie” Goulet of Derby and Logan Broyles of Mendon

Helen Collins hcollins@viaa.org