GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION
June 2015
Green Mountain Agent is a publication of
P.O. Box 1387, Montpelier, VT 05601 Phone: 802-229-5884 Fax: 802-223-0868 www.viaa.org VIAA Officers
President Michael T. Walsh, CPCU Vice President Daniel Lussier Secretary/Treasurer Peter Richards IIABA & PIA State National Director Ron Bixby
In This Issue: June 2015 4 Message from the President 7 Legislative Wrap-Up Features 8 Teen Drivers Put Everyone at Risk as 100 Deadliest Days Begin 12 Marketing: Indisputable Truths for Your Marketing 15 Sales Success: Stop Sales Pipeline Feast or Famine E&O Corner 20 How to Handle Requests for Disclosure of Information About Your Insureds News 24 Ohio Mutual 25 Hickok & Boardman Insurance Agency
Immediate Past President Jon Jamieson, CIC
Directors Chip Ams Erin Odell Paul Plunkett
Staff Executive Director Mary Eversole meversole@viaa.org
GMA Publication Design Thorin Markison thorinmarkison.com
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/ PO Box 1387/ Montpelier, VT 05601
Message from the President Hitting the Airwaves with the VIAA Agents Awareness Campaign Last year, I had the opportunity to see what can happen when agents join together under a common brand to promote themselves and our mission. Several member agencies and our association were part of a $100,000 campaign to promote independent agents in Vermont with Trusted Choice. It truly represented everything we’re all about - agencies, companies and our association all joining together to help the people we all care about where we live and work. It’s why VIAA and our company partners are committed to this year’s campaign, and based on the interest we’ve already received we’re looking to double the Agent Awareness Campaign this year. You will see a number of agents hitting the airwaves this summer and fall, and I urge you to take advantage of this opportunity as well. Only with the VIAA Agent Awareness Campaign you receive three times the advertising return for your investment. It works like this, an agent who invests $5000 or $2500 into this campaign can expect to receive $15,000 or $7500 in advertising value. This is because our company partners invest in the campaign, and Trusted Choice provides matching funds based on agent participation and company support. Additionally, together we benefit from group purchasing power for media placement and video production. It’s win-win for all of us, and I hope you will consider participating. Take a look at the campaign information in this issue and reserve your space now. See you on TV!
Michael T. Walsh, VIAA President
4
You will see a number of agents hitting the airwaves this summer and fall, and I urge you to take advantage of this opportunity as well.
Leasing: A Seamless Customer Experience
But don’t take it from us. Listen to your peers. Agents Express Leasing is an effective solution to manage your clients needs with today’s best equipment technology. Jay Byrnes of Byrnes Agency experienced how easy our leasing solution is for his agency: “As a longtime member of the “Big I”, I always knew of InsurBanc and their commitment to the independent insurance agent. Recently we wanted to update the agency with a new computer network and desktops, so I turned to InsurBanc for leasing options. From start to finish I experienced firsthand how seamless it was to conduct business with them. We have a 35 person agency so to update everyone’s computers was a decent size upgrade. InsurBanc made the process very easy and offered attractive terms and competitive rates which helped to manage the agency’s cash flow”. – Jay Byrnes ~ Byrnes Agency How it works: • Lease terms are 24, 36, 48 or 60 months with a minimum transaction of $5,000 • You are looking for 100% equipment financing, including certain soft costs such as software, shipping, installation and maintenance* • No down payments or advance payments are required • Monthly payments can be customized to meet your special business needs • You are looking for potential tax benefits associated with equipment financing**
We invite you to see for yourself. Contact us today for help preserving your cash flow with an equipment lease solution. These materials are for informational purposes only. The availability of any financing described herein is subject to approval of applicant’s credit, the equipment supplier and the equipment. *Soft costs are limited to 20% of the total amount financed. **Nothing herein constitutes tax advice and customers are advised to consult with their own tax advisors prior to electing specific rates or options. Agents’ Express leasing is a program of De Lage Landen Financial Services, Inc., a third party not affiliated with InsurBanc, a Division of Connecticut Community Bank, N.A.
Member FDIC 13INR052
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Please visit our web site at www.insurbanc.com or contact one of our leasing professionals at 800.957.0858.
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© Copyright 2014 by Consumer Agent Portal, LLC. All rights reserved.
Legislative Wrap-Up John Hollar Downs Rachlin Martin Vermont has a long history of defining the left-most boundary of American politics, but the movement towards an ever-more-progressive state shifted during the 2015 legislative session. After decades of enacting liberal legislation in virtually ever area of Vermont life, lawmakers sensed a changed mood in the electorate. They responded with a session that was mostly pragmatic and largely bereft of ideology. The end of the session, which concluded on May 16, was dominated as usual by taxes and spending. Although the so-called Big Bill passed the House and Senate by a wide margin, many observers have complained that the bill increased General Fund spending by more than four percent – far more than the rate of inflation or the rate of growth in household incomes. A $38 million tax bill was more partisan. After months of wrangling, the governor and Democratic legislative leaders agreed on a bill that raises about $23 million in income taxes by eliminating the deduction for state income taxes paid and capping itemized deductions at two-and-a-half times the standard federal deduction, except for charitable contributions and medical deductions. The bill also raises $2.9 million in various fees, establishes a minimum income tax, adds soft drinks to items taxable under the sales tax and adds the rooms and meals tax to items purchased in vending machines. About $32 million of the tax bill was devoted to balancing the fiscal year 2016 budget. An increase in the cigarette tax of 33 cents per pack was included in the separate health care bill. Insurance issues were less predominant than in past years. Lawmakers considered but did not
approve bills to increase disclosure requirements in workers’ compensation settlements (S.23); create a commission to investigate the issue of employee misclassification (S.82); create a limited lines license for travel insurance agents (H.34); and create new liability coverage requirements for transportation network companies such as Uber (H.385). The legislature also failed to take action in response to growing pressure from agents, building contractors and others to revise the state’s definitions of “employee” and “independent contractor.” Vermont law defines employment to cover any individual on a worksite who is performing duties within the “nature” of a general contractor’s business. The broad statute, and the Department of Labor’s enforcement efforts, have led to increasing calls to clarify the law. On May 7, the House Commerce and Economic Development Committee took one-half day of testimony on the issue in anticipation of a major reform effort next year. VIAA President Mike Walsh told the committee that he advises clients never to let subcontractors on a construction site who lack workers’ compensation coverage. A contract should always exist between the general contractor and subcontractor, but the general should be aware of the risks given the expansive definition of “employment” under state law. Walsh said the legislature could provide the “ultimate clarity” by requiring that all workers carry workers’ compensation coverage. Commerce Secretary Pat Moulton acknowledged that many contractors are being caught up in a “robust” enforcement process that fails to recognize the changes in the state’s workforce. Moulton said the state should create a temporary registration process until a long-term solution is found. Although several previous summer study groups have failed to solve the issue, another one is likely to be convened this summer. That effort will likely be successful only if the Shumlin administration decides the issue is important and dedicates significant staff resources towards finding a solution. 7
Teen Drivers Put Everyone at Risk as 100 Deadliest Days Begin Nearly two-thirds of people injured or killed in a crash involving a teen driver are people other than the teen behind the wheel, according to a new report released by the AAA Foundation for Traffic Safety. In 2013 alone, 371,645 people were injured and 2,927 were killed in crashes that involved a teen driver. The results come just as the “100 Deadliest Days” begin, the period between Memorial Day and Labor Day when teen crash fatalities historically climb. “Teen crash rates are higher than any other age group, and this data confirms that the impact of their crashes extend well beyond the teen who is behind the wheel,” said Pat Moody manager of public affairs for AAA Northern New England. “AAA urges parents to increase their focus on safety during the school-free, high-risk summer months when teens drive more and often have less supervision. Since teens drive more during the summer than any other season, this insight is a timely reminder to everyone—drivers, pedestrians and bicyclists— to be mindful when sharing the roads with young drivers.” The study analyzed data of policereported crashes of drivers aged 15-19, from 1994-2013 and found that: While the overall number of teen crashes are down, the majority of people killed (66%) and injured (67%) in crashes involving a teen driver are people other than the teen themselves Nearly 50 percent of those injured were in another vehicle; 17 percent were in the teen driver’s car; and 2 percent were nonmotorists (i.e., pedestrian, bicyclist) Nearly 30 percent of those killed were in another car, 27 percent were the teen’s passenger and ten percent were nonmotorists (i.e., pedestrians, bicyclist) AAA is promoting the study findings to raise attention among parents of teen drivers and all road users particularly during the “100 Deadliest Days” period. Based on a AAA analysis of the government’s Fatality Analysis Reporting 8
System (FARS), in 2013, an average of 220 teen drivers and passengers died in traffic crashes during each of the summer months, a 43 percent increase compared to the rest of the year. AAA has been a decades-long advocate on behalf of teen drivers and their families and has been a leader at the state level in advocating for the implementation and improvement of both graduated drivers licensing (GDL) laws and quality driver education programs. Additional data from this study point to the drop in overall crash rates for teen drivers that can be attributed to strong GDL legislation as well as other factors including falling gas prices and the economy. In the last 20 years, non-fatal injury crashes and fatal crashes of teen drivers aged 1519 decreased by 51 percent and 56 percent respectively. In comparison, crashes resulting in non-fatal injuries and fatalities, including but not limited to those involving teen drivers fell by 25 percent and 17 percent respectively. “While great strides have been made to improve the safety of teen drivers over the past 20 years, motor vehicle crashes still remain the leading cause of death for drivers aged 15-19, so advocating on behalf of teen driver safety remains a top priority for AAA,” said Moody. Tools to help parents prepare for the “100 Deadliest Days” of summer driving and other resources to coach teens through the learning-to drive process including a parentteen driving agreement can be found on AAA’s award-winning website TeenDriving. AAA.com. Parents have found the online AAA StartSmart program to be particularly useful, helping them to quickly become effective in-car coaches, make informed decisions about access to a vehicle, and manage their teen’s overall driving privileges.
Vermont Insurance Agents Association
sm
Annual Business Meeting Luncheon & Installation of Officers
SEPTEMBER 10, 2015 Featured Guests Capitol Plaza Hotel Montpelier, VT Ethan Allen Room 11:30 am – 1:30 pm
Randy Lanoix
Susan Donegan
Chairman Elect Big “I”
Commissioner VT Department of Financial Regulation
In Every Community Maximize your Investment In the 2015 Trusted Choice Campaign Increase your ad dollars by 150% No other advertising campaign delivers more value
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2015 TRUSTED CHOICE TOTAL STATEWIDE CAMPAIGN TV Placement
TV AD DESIGN l l
l
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Your own Trusted Choice high definition TV commercial. Gold sponsors receive customized footage, including an on-camera appearance and agency customers featured - all taped on location. Silver sponsors receive an on-camera appearance taped at VIAA at NO COST. (Customized footage taped on location is available at $350 per agent) Production begins in late Spring.
Total spots: 421
Total spots: 2,875 Total TV Placements: 3,296
$ TARGETED 2015 PLACEMENTS AND BUDGET SPEND Your ads will run between June and November on WCAX during local news, national morning shows, and weekend news and during the Red Sox and other top cable programming. GOLD SPONSOR: $5,000
SILVER SPONSOR: $2,500
Targeted Cable TV Ads: 230
Targeted Cable TV Ads: 115
Ads on WCAX: 35
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Total Value: $15,000
Total Value: $6,500
. OVER 1.5 MILLION TOTAL OVERALL CAMPAIGN IMPRESSIONS The number of ad placements may vary depending on total agent participation. Ad placement was based on company contributions plus 7 agents participating at the Gold $5,000 level and 11 agents participating at the Silver $2,500 level. For more information contact Mary Eversole at 802.229.5884 or meversole@viaa.org.
Sponsored By
Marketing Strategies with John Houle Indisputable Truths for Your Marketing The truth is this. If it weren’t for independent insurance agents and Trusted Choice, I would not have the marketing and advertising agency I have today. Currently managing Trusted Choice campaigns in Vermont, New Hampshire, Rhode Island and Maine, I owe so much to the association and agents who have entrusted me to be a part of one the most successful campaigns I have seen in marketing today. Much of my business today stems from the first Trusted Choice campaign I managed in 2007. It is the basis for the company I have today. Thank You. As my way of expressing my appreciation, I want to share with you five indisputable realities that I believe can help you in your own agency. 5. Trusted Choice is the best campaign I have ever seen. That’s right, it’s the best, and nothing I’ve seen ever comes close. Consider what the advertising pioneer, John Wanamaker, said: “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.” Trusted Choice participants don’t have this worry, because they clearly understand what they receive for their advertising investment. A $5000 investment results in more than $15,000 in advertising value with agent ads placed on all major broadcast and cable stations ($2500 and $1250 investors see similar returns). The Association equally benefits because it consistently delivers a successful campaign to its members. Insurance companies who sponsor the campaign benefit since they receive millions of ad impressions for their $5000 investment. And Trusted Choice benefits because they turn their $85,000 into more than $250,000 in advertising. It’s simply a win-win for everyone involved. 4. Facebook advertising really works. I would not have written this last year, but I am now a true believer after witnessing its effect first-hand. I could easily tell you the 12
story of the candidate running for office, and how more people saw his intro video due to the $500 we invested in Facebook advertising. Or I could tell you a similar story about the country club that swears more people came to their open house due to the Facebook ads than from other activities. Or I could let you know how one of your colleagues made more people aware of ice dams by placing a Facebook ad and how his message was then re-shared with hundreds more. And this was all accomplished for as little as $100 and as much as $500 (for the candidate). The ability to have your message and video appear in the news feeds of your targeted demographic is very exciting to me as a marketing consultant. This is one of those marketing opportunities you need to take advantage of now. 3. You should move your website over to Wordpress. Let me be honest with you. Web designers want to build really beautiful and functional websites, but it’s not our joy to have to go in and change your hours or add a new employee. We much prefer you do it yourself, and we would rather see you save the fees we would have charged towards a better use of your marketing dollars (please see above mentioned marketing options). This is where Wordpress comes in. Now with the ability to build customizable websites, Wordpress also enables you or someone from your office to easily go in and update your website. It is the preferred content management system for your website, and its platform helps you rank even higher in the search engines. If you’re looking to redo your website, I advise you to take a serious look at rebuilding it in Wordpress. 2. SEO is as important as SEM. Before you start placing ads on Google (SEM), please make sure you have first done everything you need to do to make sure your website is optimized for the search engines (SEO). Take
a look at Google’s Search Engine Optimization Starter’s Guide, which Google makes readily available. Also, check out your online listings in all the search engines and other listing sites to verify that all your information is correct. You also should install a blog into your site, and it should be the anchor of your social media and email marketing campaigns. The goal is to drive people back to your site from the content you post, and social media and email marketing are the simple drivers to bring people back. Content is king in SEO, so make sure you develop content in your blog that is insightful and important to your consumer.
where your consumers are, you still need to be on local network TV and on the radio. This should be the mainstay of your marketing campaign, and local broadcast TV advertising remains the most cost effective means to reach your greatest audience. You only have to look to the last political campaign for validation. Consider the millions of dollars that was primarily spent on local TV to reach you, the voter. To reach your consumer, the same philosophy applies. You need to be where your people are, and they’re still watching TV.
1. Broadcast TV still remains Number One. Like most people, I consume more television programming on Netflix and paid networks and watch my favorite shows on OnDemand or on my DVR. However, I still watch the local news and live sporting events. Though you don’t want to fall for the fallacy that everyone does things just like you do, the truth is that consumers spend more time with local TV and radio than with any other media. To be
John Houle is the president of JH Communications and can be reached at 401.831.6123 or at john@jhcom.net.
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Sales Success with John Chapin Stop Sales Pipeline Feast Or Famine If you’ve been in sales for any length of time, you have more than likely experienced the ebb and flow of prospects in your pipeline from time to time. We all know there will be certain days, weeks, and months that are heavy with appointments, servicing of accounts, and other items that make it difficult to find time to prospect. That said, here are some ideas to ensure that you always have plenty of prospects in the pipeline.
will get the majority of your prospects and also when you will make up for the crazy-busy days in which you had little time to prospect.
How to Always Have Plenty of Prospects
Third, make prospecting a priority.
First, you have to be prospecting every day.
Even on your busiest day, you’ve got to make some prospecting calls. No matter what you have going on personally or professionally, there are always 10 to 20 minutes in the day, probably more, to make some calls. Over a year, even a few calls a day really adds up. Prospecting every day also ensures that you stay sharp and get in the habit of doing it. Note: Assuming it only takes about 2 minutes to make a call, or 5 minutes if you actually contact someone, you can make anywhere from 2 to 10 calls in 10 to 20 minutes. Shoot for a minimum of at least 5 calls even on the busiest days. If you fall short, and do 3 or 4, that’s still 720 to 960 calls a year over a 48 week working year. Note 2: If you don’t think you have any time, track your time and where each minute goes during the day. If you do this, you will literally find hours in your day. In any case, you can always find 15 to 30 minutes somewhere. Second, take advantage of the slow times. When times are slow in terms of sales and other activities, you have to take advantage of these times by making a significant number of prospecting calls. For example, if your goal is 20 calls a day, shoot for 40 or more calls a day, when times are slow. This is when you
One of the biggest prospecting issues is that when people have time to prospect, they either don’t do enough or they hit their daily goal and stop. The people who always have plenty of prospects make two to three times the amount of daily prospecting calls when they have the time. When your primary job is to produce revenue (sell), you have three priorities: prospecting, presenting, and closing. Those three activities simply have to come before the other things you’re doing during the day and they are all important. Many times, when there is plenty of time to prospect, salespeople find ways to “kill” time. Most salespeople get really creative when it comes to avoiding the hard work of prospecting. Cleaning the desk, looking up information on a prospect or customer (for more than a few minutes), reading articles during prime calling hours, going to doctor or dentist appointments during prime calling hours, answering an e-mail that isn’t important but is quick, making a phone call that isn’t important but is quick, are all examples of items that are less important than prospecting.Make sure that during prime calling time you are focused on closing sales, appointments, and prospecting. Forth, get better at sales and prospecting. When is the last time you read a book on sales or prospecting? When the last time you changed or refined any part of your sales or prospecting process? It’s critical that you continue to get better in these areas. The better you are at prospecting and selling, the fewer calls you have to make and the fewer people you need to talk to. Practice, drill, and rehearse your 15
prospecting calls. You have to be practicing you lines with other salespeople and/or friends and family. This goes for prospecting as well as other sales situations such as: presentations, objections, questions you ask prospects, etc. Fifth, work more hours when there is less time to prospect. There will be times when you simply have to work more hours. Even if you only work an average of an extra 30 minutes a day, or 2 1/2 hours a week, on average, that’s enough time for 10 phone calls per day or 50 per week. Here are some other ideas that can help hit your prospecting goals: • Time block your prospecting. Treat prospecting as an appointment on your schedule. • Have someone hold you accountable. • Team up with someone and make calls at the same time. • Have a contest with someone. Who can make the most calls and get the most appointments? Finally, remember: Someone out there is keeping their pipeline full at all times. Actually, lots of people are. Whatever your excuse is, how bad you have it, how busy your day is, there is someone out there who has it worse than you and has overcome that to achieve a full sales pipeline at all times. Is it the majority of people? No. But there are many who are getting it done. Executing on most of the above items will simply come down to sheer determination and effort to do what must be done. Is it going to be easy? No. Can you do it and will it be worth it? Yes. Note: The examples I used for this article involve making phone calls versus in-person calls. Whatever types of calls you’re making, the thing to keep in mind is that even on the busiest days you can always make 1 or 2 in-
person visits or 5 to 10 phone calls. Either way, you’ve got to do some prospecting every day. John Chapin is a sales and motivational speaker and trainer. For his free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For permission to reprint, e-mail: johnchapin@completeselling.com
Vermont Insurance Agents Association Partner Program
Thank you 2015 Annual Partners for Your Continued Support Diamond Partners
Platinum Partners MMG Insurance Co. Progressive
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How to Handle Requests for Disclosure of Information About Your Insureds James C. Keidel, Esq. Christopher B. Weldon, Esq. Keidel, Weldon & Cunningham, L LP
One of the more frequent questions that we receive from insurance agents and brokers is the proper way to handle requests for the disclosure of information about their insureds. If such a request is handled properly, an agency or brokerage can minimize the likelihood of E&O claim or lawsuit. In this issue of The E&O Corner, we will review several procedures that an agency or brokerage should follow if faced with a request from an insurance company, an insured, an attorney, or anyone else, to disclose information regarding an insured. When an agency or brokerage receives any sort of request to provide information or documents regarding an insured, the agency or brokerage should be sure to proceed with caution. Such a request may potentially constitute a claim against the agency or brokerage, or possibly contain facts which give rise to a possible claim; both of which require that notice be given to an E&O insurer pursuant to the terms of its insurance policy. Like other insurance policies, E&O insurance policies require that insureds provide prompt notice of not only actual claims, but also notice of any circumstances that may give rise to a potential claim. For this reason, we advise that when an agency or brokerage receives a request for any information about an insured, it should promptly report the situation to its E&O insurer. Doing so will ensure that if the situation eventually develops into an E&O claim or lawsuit the E&O insurer cannot assert that it was not timely notified of the situation. As you can well imagine, it is very difficult for an insurance agency or brokerage, faced with a late notice situation under its own insurance policy, to claim that it was not familiar with, or did not understand, the claims reporting requirements of the 20
policy. Furthermore, in many instances the E&O insurer will appoint counsel to assist the agency or brokerage in dealing with the request for the disclosure of information. One of the more common requests we see in our practice is where an insurance agency or brokerage is asked by an insurance company to provide either information or documents concerning an insured. One thing to keep in mind is that if an agency or brokerage is faced with such a request made by an insurance company, to disclose information regarding an insured, it is usually in connection with the insurer’s investigation or denial of a claim. Very often the insurance company will contact the agency or brokerage during the course of its claims investigation and request that the agency or brokerage provide either a written or recorded statement or copies of its file materials. If the insurance company conducting the investigation is one that the agency or brokerage has an agency agreement or an ongoing relationship with, the insurance company may take the position that the agency or brokerage is obligated to provide the requested information. Any agency or brokerage faced with this situation must remember that, under most circumstances, it is under no obligation to provide this information. Additionally, if this information is provided to the insurance company by the agency or brokerage and is subsequently used as a basis for the denial of an insured’s claim, it is quite likely that the agency or brokerage will become involved in any litigation arising out of the insurer’s denial of the claim. On a number of occasions agencies and brokerages are asked by the insureds themselves to provide information or documents from the files maintained by the agency or brokerage. An insured, however, is not entitled to obtain copies of file materials maintained by the agency
or brokerage that relate to his or her insurance. Those documents constitute the business records of the agency or brokerage and, as such, are the property of the agency or brokerage. We understand that when an insured requests information or copies of documents from the insured’s files that the agency or brokerage may be inclined to provide that information in order to foster good will and maintain the relationship. Accordingly, we advise that if an agency or brokerage is faced with such a situation and wants to comply with the request, it should do so on a limited basis and provide the insured with only those documents that the insured would have received in the ordinary course of the relationship. For example, the agency or brokerage may provide the insured with copies of insurance policies, endorsements, certificates of insurance, letters and other communications with the insured. However, the agency or brokerage should not disclose to the insured such items as notes, computer records from the agency management system or internal memoranda. In our experience, an insured will most often request copies of these items only if they are trying to determine whether to bring a claim or lawsuit against the insurance company or the insurance agency or brokerage. Furthermore, if the agency or brokerage receives a request for information or file materials from an attorney for an insured, this should likewise be reported to the E&O insurer. Our experience has shown that when an insured goes so far as to enlist the services of an attorney to inquire into the practices of an insurance company, or the agency or brokerage, an E&O claim or lawsuit is likely to follow. As you could imagine, an agency or brokerage should proceed most cautiously when it is served with a subpoena seeking information or documents. Although the agency or brokerage may simply be a non-party to the legal proceeding in which the subpoena was served, a legal proceeding is, in fact, pending and it is very easy for the agency or brokerage
to be added as a party to that proceeding. We often see agencies and brokerages served with subpoenas simply choose to comply and provide the requested testimony or documents without the assistance of an attorney. While it is true that an agency or brokerage that is properly served with a valid subpoena has an obligation to comply or risk being held in contempt of court, we recommend that an attorney always be involved to assist in this situation. Many times a subpoena is defective in some manner because the attorney who served it either failed to comply with the strict legal requirement governing the manner in which service may be made or the information that may be requested. If an agency or brokerage simply complies with a subpoena without the assistance of an attorney, they may be providing information that it is not required to be disclosed, and therefore be putting itself at risk of becoming involved in an E&O claim or lawsuit. Our final recommendation on this topic is that every agency and brokerage should make certain that all employees are aware of the procedures to be followed if the agency or brokerage receives a request to disclose information concerning an insured. We suggest that all such inquiries be directed to one person at the agency or brokerage so that the requests are handled properly and consistently. The prudent insurance agency or brokerage that follows the few simple steps we have outlined above can help reduce the likelihood that the request for information will develop into something more serious, such as an E&O claim or lawsuit. The law firm of Keidel, Weldon & Cunningham, L LP specializes in the defense of insurance agents and brokers in connection with E&O claims and lawsuits and regulatory matters. You can contact James C. Keidel by telephone at 914-948-700 and by email at jkeidel@ kwcllp.com or Christopher B. Weldon by telephone at 203-869-2200 and by email at cweldon@kwcllp.com.
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Everything you insure is on your shoulders
Who do you trust to have your back? VIAS offers the most prestigious Errors & Omissions carrier(s) in the country: Westport Insurance Company & Utica National Insurance Group
For a quote or for more information contact Helen Collins at hcollins@viaa.org or 1-844-609-1481
www.iiaba.net/eohappens
VIAS is a subsidiary of Vermont Insurance Agents Association viaa.org
BEST
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BEST
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THE PRODUCTS YOU NEED From auto, home and umbrella to watercraft, classic car and more. Safeco® has the products your customers need most.
üThe products you need ü24/7 claims in class quote and ü Best issue platform Interested in becoming a Safeco agent? Reach out to our VT Territory Manager, Deb Bissell, at Deborah.Bissell@Safeco.com for more information.
Safeco Insurance, with a principal place of business in Boston, Massachusetts. © 2014 Liberty Mutual Insurance.
Agency News Company News Ohio Mutual’s Issuer Credit Rating Upgraded by A.M. Best BUCYRUS, OH – Insurance rating organization A.M. Best has issued its annual rating of Ohio Mutual’s financial strength, upgrading its issuer credit rating (ICR) to “a+” after three years rd as “a”, and reaffirming the company’s financial strength rating (FSR) of “A” (Excellent) for the 23 consecutive year. The ratings include the three companies included in the OMIG intercompany pool: Ohio-domiciled Ohio Mutual Insurance Company, its wholly owned subsidiary United Ohio Insurance Company, and Mainedomiciled Casco Indemnity Company. In sharing its rating rationale, A.M. Best states: “OMIG’s positive rating factors are derived from its moderate underwriting leverage, conservative investment risk profile, and solid regional market presence.” While recognizing the company’s weather-related risks, Best acknowledged that “despite weather-related issues, OMIG continued to produce pre-tax operating gains and positive net income in each of the past five years,” and noted that “OMIG’s five-year pre-tax returns on revenue and equity have
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outperformed the private passenger standard auto and homeowners composite average.” “This increased rating from A.M. Best reflects both the financial and operational profiles of Ohio Mutual as a solid, stable company with a bright future,” said the company’s President & CEO Jim Kennedy. “As this is the final rating review under my leadership tenure, I’m particularly encouraged to see the upgraded ICR rating from A.M. Best, which is tangible acknowledgement of Ohio Mutual’s strong operating performance in recent years.” Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. More information is available at www.ambest.com. Ohio Mutual Insurance Group, founded in 1901 and based in Bucyrus, OH, partners with nearly 400 independent agencies to distribute quality property and casualty insurance products throughout Ohio, Indiana, Maine, Vermont, New Hampshire, Connecticut, and Rhode Island. Additional company information is available at www.omig.com.
Agency News Hickok & Boardman Insurance Group Appointed to The Hanover’s President’s Club The Hanover Insurance Group, a leading provider of property and casualty insurance products and services nationwide, recently honored Hickok & Boardman Insurance Group with an appointment to its President’s Club, an elite group of independent insurance agencies from across the country. President’s Club agencies meet the highest level of standards with regard to the agency’s ability to deliver value to customers through strong insurance expertise and responsive service. The Hanover partners with only 2,200 out of a total of 35,000 total independent agents in the country. Across The Hanover’s agents, an elite group of only 125 are honored in its President’s Club each year as the company’s top performers.
recognized our team for its excellent work and dedication on behalf of our customers.” The Hanover – At a Glance: • One of the largest and fastest growing property and casualty insurers in the U.S. • Specialized products that meet the needs of families, individuals and businesses • Since 1852, distributing products through the best independent agents in the U.S. Hickok & Boardman Insurance Group is a locally owned and operated insurance agency offering business and personal insurance, founded in 1821 with offices in Burlington, Lyndonville, Montpelier, St. Albans and Stowe.
“The Hanover has always partnered with the best independent agents in the country who provide real value and outstanding service for their customers,” said Frederick H. Eppinger, president and chief executive officer of The Hanover. “Hickok & Boardman Insurance Group exemplifies what it means to be a truly professional independent agent, providing expert insurance advice, dedicated service and a broad range of products to meet the needs of its customers.” The agency will be formally recognized for its President’s Club achievement at a national business conference sponsored by The Hanover. “We are proud to have earned the honor of The Hanover’s President’s Club said Scott Boardman, President at Hickok & Boardman Insurance Group. “This achievement is a reflection of the successful partnership we have developed with The Hanover, through which we offer specialized and innovative insurance products to meet our customers’ unique needs. We are very pleased that The Hanover has
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Union Mutual of Vermont Companies offer agent support and customer service that is “Second to None” with a complete line of competitively-priced, personal and commercial products. We proudly serve all six New England States and the State of New York, providing peace of mind for our 100,000+ policyholders. PERSONAL INSURANCE • Homeowner (including Inland Marine) • Auto • Umbrella • Flood Program • Dwelling Fire Robert F. Glass
Senior Vice President of Products and Distribution
MARKETING Molly Ross
Director of Marketing
Carolyn S. Ix
Regional Vice President
COMMERCIAL INSURANCE Businessowner (including Inland Marine) Auto Umbrella Flood Program
• • • •
UNDERWRITING Geoff J. Smith
Director of Underwriting
PERSONAL LINES Francine C. Boulanger Stephanie J. Richardson Diane T. Shadroui
Jeffrey S. McLaughlin
Senior Marketing Representative
www.unionmutual.com
COMMERCIAL LINES Joanie M. Smith Laurie L. Tatro Kim M. Whitcomb