GMA June 2018 by VIAA

GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | JUNE 2018

Vermont Insurance Agents Association is a statewide trade association representing nearly 100 independent insurance agencies in Vermont, with more than 900 employees. VIAA member independent insurance agents represent more than one insurance company, and as a result, can offer clients a wider choice of auto, home, business, life and employee benefits.

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Green Mountain Agent is a publication of

CONTENT JUNE 2018

04 Letter from the President

600 Blair Park Road Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org VIAA Officers President Erin Odell Vice President Paul Plunkett Secretary/Treasurer Alan Kinney National Director Ron Bixby

Newsflash

09 On the Hill

11 Under the Dome

12 Feature: Opinion

16 Feature: Knowledge

Directors

Chip Ams

Feature: Sales & Marketing

Daniel Rodliff Michael Barrett

Staff Executive Director Mary Eversole mary@viaa.org

GMA Publication Design LONDONmiddlebury londonmiddlebury.com

20 E&O Corner

23 Insurance Commentary

27 Company & Agency News

36 Now Hiring! W W W.V I A A .O R G

LETTER FROM THE PRESIDENT JUNE 2018

Summer is officially a few weeks away! This time of year, I love the sunny days and think of boating, swimming, golf, festivals, and of course grilling out. This summer marijuana becomes legal in our state on July 1, 2018. Weâ€™ve received a few questions about the legalization of marijuana in Vermont. To our knowledge, it allows the possession of marijuana for recreational purposes; Adults over the age of 21 will be able to possess an ounce of marijuana and grow up to two of their own plants at home. While marijuana is legal under state law it is in conflict with federal law that prohibits cannabis use. However, in Vermont marijuana is still a controlled substance and prohibited from being sold. It is also remains illegal to consume it in public places. Most importantly, it remains illegal for drivers and passengers in vehicles to use marijuana in a motor vehicle. Erin Odell, CIC VIAA President

Can an employee come to work under the intoxication of marijuana? According to legal experts, Vermont employers are still allowed to prohibit employees from coming to work under the intoxication of marijuana, even if it is considered a legal substance. Schools, employers, municipalities, and landlords may adopt policies and ordinances restricting growing and use. As an agency owner (employer) there is a question with the new law. Can an employee come to work under the intoxication of marijuana? According to legal experts, Vermont employers are still allowed to prohibit employees from coming to work under the intoxication of marijuana, even if it is considered a legal substance. The best advice for employers is to identify and clarify expectations with their employees and consult your agencyâ€™s attorney so there is no confusion. Insurance coverage challenges for consumers that use cannabis may come into play as well. There could be coverage deficiencies in the homeownerâ€™s market and in the future, we may see increases in auto insurance rates due to elevated risks associated with impaired drivers. We expect that carriers that write in our state will rely on the experience of other states with legal marijuana and adjust underwriting standards as needed. This is a very new topic and it will be interesting to see how this issue evolves in the insurance market and agencies in the Green Mountain State.

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Williston, VT, May 23, 2018 – The Vermont Insurance Agents Association (VIAA) praises Governor Scott for vetoing S. 197, a bill that would have made Vermont businesses liable for the costs of “medical monitoring” associated with the release of chemicals, even where a release has not been shown to cause harm to an individual.

NEWSFLASH: VIAA APPLAUDS GOV. SCOTT

“S.197 could have made insurance for Vermont Businesses unaffordable or unavailable to many companies in the state,” said Mary Eversole, VIAA executive director.

Vermont Insurance Agents Association Applauds Governor Scott’s Veto of S.197

No other state has adopted such expansive medical monitoring legislation. The bill would have a potential negative impact on the insurance market and business operations in Vermont compared to other states. “We appreciate the Governor taking the negative consequences of this bill into consideration and are grateful that he vetoed this legislation,” continued Eversole.

a result, can offer clients a wider choice of auto, home, business, life and employee benefits. Founded in 1906, VIAA’s mission is to be an advocate for independent insurance agents and to satisfy the professional needs of its members. VIAA is affiliated with the Independent Insurance Agents and Brokers of America. VIAA is here to help our members succeed in today’s competitive insurance industry

Vermont Insurance Agents Association is a statewide trade association representing 150 independent insurance agencies in Vermont, with nearly 900 employees. VIAA member independent insurance agents represent more than one insurance company, and as W W W.V I A A .O R G

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ON THE HILL: NEW TAX RULES MAY NOT COME UNTIL DECEMBER By Jennifer Webb As Big “I” members work to determine how the new tax law applies to them, the Treasury Department has announced it will not issue clarifying rules until December. A key provision of the new tax law creates a section in the individual tax code (26 U.S.C. §199A) that allows for a 20% deduction on “qualified business income” (QBI) for owners and shareholders of pass-through businesses. Two-thirds of Big “I” member agencies are organized as pass-through entities, and many should be able to benefit from the new deduction in whole or in part. However, it is currently unclear whether insurance agencies and brokerages will be able to receive the full benefit of this deduction. The outstanding issue for many Big “I” member agencies is if the sale and servicing of insurance is considered a “specified service trade or business” in any implementing regulations or guidance on the new law. This is important because the law prohibits an owner or shareholder of a “specified service trade or business” with annual taxable income above $415,000 (joint) and $207,500 (single) from utilizing the new deduction. The information released by Treasury indicates that it intends to propose three rules to implement Section 199A. The first will deal with anti-abuse provisions, the second rule will provide definitional guidance necessary to compute the deduction, and the third will address computational questions. The Big “I” is disappointed that guidance will not be issued sooner but will continue to work with the Treasury Department closely on this is-

sue. The Big “I” is working with a coalition of other producer groups to advocate on this issue before the Treasury Department. In April the coalition sent a letter to key Treasury Department officials and had a meeting with the Department. As a follow up from the meeting, the coalition recently sent another letter to the Treasury Department. The Big “I” is hopeful that any implementation regulations or guidance will treat agents and brokers appropriately. The Big “I” believes that Congress did not intend to limit insurance agency owners from receiving the full benefits of the pass-through deduction because Congress specifically excluded the word “insurance” from the definition of a “specified service trade or business” in the new law. Furthermore, interpreting the pass-through provisions of the law in a narrow and exclusionary manner is against the broad public policy goals of the law— to create jobs and grow the economy.

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James K. Ruble Graduate Seminars are designed specifically for CIC Designees and feature a variety of topics along with real-life applications in a seminar that is designed to satisfy the CIC annual update requirement. YOU MUST BE A CIC OR CRM AND A DUES-PAYING MEMBER OF THE SOCIETY TO ATTEND A RUBLE SEMINAR.

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UNDER THE DOME: INDUSTRY FACES THREATS AND SEES SUCCESS IN VT LEGISLATURE By John Hollar Flowers are blooming and trees are blossoming, but the Vermont legislature has yet to adjourn for the year. The General Assembly convened a rare special session on May 23 to resolve a highly contentious impasse between the administration and legislative Democrats over the annual budget and a related tax bill which the governor has promised to veto. The dispute is over large principles and small dollars. Scott has taken an unwavering position all year against any new taxes, and the tax bill would raise statewide property taxes by $33 million. He argues that with $160 million in new revenues this year, the state can amply afford to avoid the increase by filling the gap with one-time funds. Democrats have responded that the state should not use one-time funds to pay for ongoing expenses. They argue that local voters approved the property tax increase, and the $33 million should be better used to pay down long-term teacher retirement obligations, which would save $100 million over time. Although there is no resolution in sight on that issue, several insurance-related bills were resolved favorably this session. The most significant is a bill, S.123, that would have created strict, joint and several liability for any entity that caused a discharge of hazardous or toxic materials. VIAA and others warned that the bill would inject enormous uncertainty into the market, since no state has adopted a similar standard, and there would be no way to determine the potential exposure. VIAA was actively involved in lobbying against the bill. Although it passed the Senate and the House Judiciary Committee, it never emerged from the House Commerce and Economic Development Committee.

A related bill, H.197, did pass the House and Senate, but it was vetoed on May 22 by Gov. Scott. The bill would have allowed a person who is exposed to a hazardous substance above background levels due to the tortious action of another to receive medical monitoring for life regardless of whether a disease is likely to occur. Businesses feared that they would be responsible for costs that cannot be estimated, and insurers said that medical monitoring might not be covered risks. Those concerns led to a veto by Gov. Scott. VIAA helped to defeat another measure that would have adversely impacted the insurance industry. The Agency of Transportation proposed legislation that would have allowed the Secretary to waive the requirement of a performance bond for transportation contracts of $1 million or less. The current requirement for such bonds is $100,000. VIAA and other industry representatives argued that the legislation would harm contractors, subcontractors and the state. It would have created a risk of non-payment for projects; eliminated an important guarantee of workmanship; and removed an important tool for ensuring contractor financial capability. Faced with these objections, the Agency of Transportation withdrew its proposal. The governor and lawmakers will be arguing about the budget and taxes until after Memorial Day, but the insurance industry is likely to emerge from the 2018 legislative session unscathed.

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LEGALIZED MARIJUANA LOOKS LIKE BAD NEWS FOR HIGHWAY SAFETY by Matt Moore

OPINION

This past January, adults in California could line up for the first time to legally buy marijuana for personal, nonmedical use. That is when the nation’s largest state joined seven other states and Washington, D.C., in allowing recreational sales of pot. While much is known about how alcohol impairs drivers, comparatively little is understood about marijuana’s effect on highway safety. Still, as the number of collisions has gone up nationally in recent years, evidence from insurance claims data in three Western states points to marijuana as a contributor to higher crash risk. More drivers admit to using marijuana, and it is showing up more frequently among people involved in crashes.

Although there is evidence from simulator and on-road studies that marijuana can degrade some aspects of driving performance, researchers have not been able to definitively connect marijuana use with crashes that cause injury or death. However, early evidence suggests that marijuana is leading to higher collision claim frequencies in states with recreational use. In November 2012, ballot initiatives to legalize recreational marijuana sales passed overwhelmingly in Washington state and Colorado. Voters in Oregon followed suit in 2014. In 2017, the Highway Loss Data Institute published the first study of how legalized marijuana may be affecting crashes reported to insurers

in those three states. Using HLDI data, which is collected from companies representing roughly 85 percent of the private passenger vehicle insurance market, researchers can look at many crashes over time and analyze how risk is changing in the states that legalized recreational marijuana sales compared with nearby states where the law did not change. The study found that legalized sales in Colorado, Oregon and Washington resulted in collision claim frequencies that were about 3 percent higher than would have been expected without legalization. Looking at each state individually, HLDI found that the size of the effect varied. Colorado saw an estimated 14 percent increase in claim frequency compared with nearby control states. Washington’s estimated claim frequency increase was 6 percent, and Oregon’s was 4 percent higher. When states legalize marijuana, it may make pot more socially acceptable. National

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survey data show that people view driving after using marijuana less negatively than driving after consuming alcohol. The Insurance Institute for Highway Safety recently completed an analysis of roadside survey data gathered over time in Washington. Drivers surveyed in the daytime in the state were more likely to test positive for marijuana after legalized sales of the drug than before. Moreover, drivers who tested positive for marijuana a year after legalization were more likely to admit that they had used the drug recently and less likely to say marijuana impairs driving. HLDI is continuing to monitor insurance claims data in states that have legalized recreational sales and will be updating results for Colorado, Washington and Oregon soon. The ongoing analyses indicate the overall effect on collision claims is worsening. Now that California is in the mix, researchers will have a much larger dataset to analyze. While it is too soon to draw a definitive conclusion, the evidence so far should give states pause on public policy that allows recreational use of the drug. Lawmakers may look favorably on the tax revenue generated by legalized marijuana, but early signals on crash risk are flashing red that this is bad news for highway safety.

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RV DEMOGRAPHICS SHIFT GEARS; INSURANCE RATES ARE CLOSE BEHIND

KNOWLEDGE

by Jacquelyn Connelly

As temperatures finally start to climb and school lets out for the summer, Americans are gearing up for one of their favorite times of the year: RV season. Ariel Menkin, RV product manager, Progressive, says peak RV season typically extends from spring through mid-September, which means many of your personal lines clients probably have a camping or road trip coming up on their calendars soon. After another record year for RV sales—more than half a million shipped in 2017, “which is a number we’ve never reached in the history of the industry,” Menkin notes—the booming RV industry isn’t slowing down.

Steven Preston, national lead for RV product at Foremost, observes “a shift from the baby boomers to the millennials” among RV owners.

Brook McGuire, strategy lead for specialty products at Safeco, says the shift mirrors what’s happening in the motorcycle market: “RVs are starting to appeal to a younger, hipper millennial generation. Instead of the typical motorhomes and fifth-wheel setups, we’re seeing lots of pull-behinds that are designed to be more attractive to the eco-conscious, priceconscious millennial.”

“We see a lot of younger families with younger children entering the market,” agrees Menkin, who notes that around 40% of RV owners have kids under the age of 18. “It used to be more retirees. They’re still buying RVs, but they’re not the only ones now.”

That’s especially relevant as demand for lighter trucks begins to outpace demand for more heavy-duty models, says Deb Gravish, RV product manager at Foremost. Many lighter, more maneuverable SUVs and pickup trucks come with a hitch—and whether your younger client

Just don’t expect the same type of person behind every wheel.

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doesn’t have the requisite experience or they simply “don’t want to spend a whole lot of money on a 550 or something similar, RV dealers are moving a lot more of the ultra-light shorter units that can be towed by these lighter trucks,” she explains. But with widespread appeal comes underwriting consequences. With so many people “getting into RVs for the first time,” Menkin points out, “those first-time users aren’t always as experienced in operating such long and big vehicles.” As more and more RVers vie for space, that’s a recipe for increased claims frequency. “I don’t know if you’ve tried to reserve a spot on a camp-

ground anytime lately, but sometimes you need to reserve your spot more than a year in advance,” Menkin says. “RV manufacturing and shipments may be up, but it’s the same number of campgrounds out there, and those aren’t growing very fast. That means it’s really crowded, and there are just more things to bump into.” In addition to frequency, severity is up as well. Just like in personal auto, McGuire says you can blame “more technology in the RVs, more highway miles, higher speeds, distracted driving—all of that is having an impact.” Plus, with a shortage of RV technicians, “RV body shops are really having a hard time keeping up with the volume,” Menkin adds. “That means not only is it taking longer to fix RVs, but those repairs are also becoming more expensive.” Rate hikes won’t be drastic, but throw in lower gas prices and an improving economy, and all of the above adds up to “higher collision rates and likelihood of accidents,” Preston says. “That’s going to drive increases in the area of collision pricing.”

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SALES & MARKETING

AVOIDING THE INSURANCE SALES ROLLERCOASTER by David Seikman

David Seikman is an author at Insurance Nerds. Selling insurance is hard work as the product isn’t exactly glamorous. It is something that few people actually want to buy, but they are forced to. Sometimes it’s mandatory and sometimes people know that there is value, but at the end of the day, there are so many other things on which they would prefer to be spending their money. This fact can work against us in so many ways when trying to prospect new business. Although price is often given as the answer to what people think is most important, ease of doing business and convenience will always top the charts. There is a reason why we can see retention rates of 90%+ even when rates are increasing. At the end of the day, people don’t really want to have to deal with their insurance, which means it’s harder to get them to give you a shot at writing the business. Even when price is the main factor, they will typically only leave an agency when there is a secondary factor (often some type of actual or even just perceived poor service). Lack of engagement by the insurance agency can be perceived as poor service. When the renewal comes in at an increased rate, they now have two reasons to switch. Simply put, unless the customer has a reason (perceived or real) that they are being treated poorly, the actual effort that goes into switching insurance agencies is simply not worth it for most people. So, how does this affect us when it comes to prospecting? Basically, we need to put the highest priority on prospecting. Prospecting is more important than building rapport, gathering underwriting info, presenting the quote and even asking for the business!

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We need to be consistent and aggressive in our prospecting efforts. Whether this is attending local events, hitting LinkedIn or other social media, or making calls to prior clients that we lost, prospects that we quoted and did not sell, or existing clients for other lines of business, having a daily plan to insure prospecting is consistently done is vital to your sales success. This becomes even more vital when we are “busy” with other activities. If you fail to prospect during times of high quote and high sales activities, you are doomed to ride the sales rollercoaster. This is the effect that is created when you are moving people out of your sales pipeline by closing sales but failing to add in new prospects. You may hit it out of the park this week but then next week you have no sales because there isn’t anything

left to sell. This is why prospecting is the most important task that we take on. We cannot quote or sell anyone if we don’t have new leads coming into the system. To put it a little more bluntly, I recently heard an agency principal tell his staff, “If you prospect, all of the rest of the s#!@ will just happen!”. Every agency is different in how they generate leads, but any producer or sales executive that wants to be successful must have a plan to at least assist in prospecting new business and consistently execute on that plan. As an added benefit, leads that are procured by the producer or sales executive are much more likely to close than a lead that came in through the agency’s marketing efforts.

Every agency is different in how they generate leads, but any producer or sales executive that wants to be successful must have a plan to at least assist in prospecting new business and consistently execute on that plan. W W W.V I A A .O R G

O &

ER N R O C

E&O RISKS WHEN INSURING THE CANNABIS INDUSTRY by Julie Carter

Julie Carter is an assistant vice president, claims specialist with Swiss Re Corporate Solutions and works out of the office in Overland Park, Kansas. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re. At press time, medical marijuana is legal in 28 states and Washington, D.C., and recreational marijuana is legal in eight states and Washington, D.C. The cannabis market is already a multibillion-dollar industry, with revenue expected to reach $20 billion by 2021. Like any other business, marijuana growers and distributors need insurance coverage for their assets and potential liabilities. But although individual states control the laws regulating both the marijuana industry and the insurance industry, growing, distributing and possessing marijuana is a still a crime under federal law—as is aiding and abetting these activities. The Obama Administration made it clear it did not intend to seek prosecution of marijuana-related activities in states where it has been legalized. But Attorney General Jeff Sessions recently stated that the Trump Administration intends to “crack down” on such activities—and that means procuring insurance for cannabis enterprises is extremely risky. The concern centers around two primary issues: 1) Is insuring a federally illegal activity a criminal activity in itself, rendering the insurance contract unenforceable? A court could easily determine that an insurance contract is void as the result of insuring an illegal activity—a clear risk for the business and the insurance agent who procures the policy. Besides, a carrier could potentially deny coverage for certain acts due to the federal law issue, lead-

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ing to a “failure to procure” E&O claim against an agency. 2) Do exclusions in many standard-form policies provide illusory coverage for an insured? Many traditional insurance policies exclude coverage for “illegal activities,” “criminal acts” and “intentional behavior.” Exposures such as civil RICO claims, money laundering and reputational risk are valid concerns for businesses involved in the cannabis industry. But can these exposures be covered by an insurance policy? Considering the dichotomy between state and federal laws regarding legalization, as well as conflicting court rulings regarding insurer obligations to provide coverage, an agent who procures this coverage faces great risk. For starters, policies would likely not be standard ISO forms, but that’s not the only complicating factor. Marijuana growers and distributors are required to obtain specific licenses and permits depending on location—California, for example, requires 20 types of licenses, including permits for farmers, delivery services, testing labs, distributors, dispensary operators and more. Any insurance provider would need to develop an in-depth knowledge of all applicable licensing issues prior to entering this space. Due to the lack of guidance or precedence regarding the validity and enforceability of insurance contracts involving marijuana businesses, many carriers are refusing to write policies for these potential clients.

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Want A handful of insurers,We however, do You! currently provide coverage to cannabis businesses, which run the gamut from one-person operations to large companies with sophisticated technology and several employees. These insureds South the Burlington, VT are seeking same types of coverages as many other retail and crop enterprises: NFP, a leading insurance broker and • Commercial general liability consultant that provides employee benefits, property & casualty (P&C), retirement, and • Business property individual insurance and wealth management Please send your resume to: • Cyber liabilityseeking an experienced solutions is currently Dan Rodliff Personal Lines Producer to advance his or Vice President, NFP P&C • Workers compensation her career as a Commercial Lines Producer PO Box 2243 Directors & officers liability in • its South Burlington office. This position South Burlington, VT 05407 is responsible for generating new sales for • Commercial auto Or all Commercial Lines policies and requires the• abilityProducts to workliability closely with clients, Email: dan.rodliff @nfp.com customer service representatives, producers, • Pollution management, and insurance carriers. The work environment is professional and very • Crop supportive. The ideal candidate should have • Employment practices liability excellent interpersonal skills, {2+} years of experience, and ability to adapt to emerging Cannabis businesses may also require specialized coverage for their unique risks. For example, because U.S. They will with be supported with bankstechnology. are not allowed to deal the cannabis industry under federal law, most of these businesses maintain a commercial lines and mentoring for steady influx of cash on training their premises. prospect/planning, sales calls, proposals and To avoid an E&O A claim, the prudent insurance agentiswill stay on the safe side—and wait until the smoke clears education. property and casualty license before considering procuring insurance for a client in this field. required. NFP offers a highly competitive compensation and benefits package.

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“PROTECTIVE SAFEGUARDS” REQUIREMENTS

One of the premier insurance educators in America on form, coverage, and technical issues; Founder and director of the Big “I” Virtual University; Retired Assoc. VP of Education and Research from Independent Insurance Agents & Brokers of America. W W W.V I A A .O R G

Many policies include requirements that certain protective measures be taken for coverage to apply. For example, both personal and commercial lines policies often have a freezing exclusion that is waived if the insured makes reasonable efforts to maintain heat in a building or shut off the system. Other requirements impose an exclusion if a protective system is not maintained, for example, sprinkler system and burglar alarm system Protective Safeguards endorsements. However, how these requirements are imposed can sometimes be baffling, often defying common sense. The following are real-life claims that illustrate both ends of the coverage/exclusion spectrum. For example, a water line to an outdoor hot tub froze, causing damage to the hot tub equipment. The insurer initially denied the claim, citing the following exclusion in the homeowners policy: Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to: (a) Maintain heat in the building; or (b) Shut off the water supply and drain all systems and appliances of water…. Note that the exclusion clearly says that it does not apply if you have used reasonable care to “Maintain heat in the building.” Just as clearly, whether or not the dwelling was heated had absolutely no impact on whether or not an exterior water line/equipment might freeze. However, in policy analysis, common sense sometimes has no place. We were able to convince the adjuster, to his credit, that the policy clearly, conspicuously, and unambiguously covers freezing claims as long as heat is maintained in the building. This “non-common sense” reading can work for or against the insured, as evidenced by the following two claims. In another claim, a business had property outside their building stolen. The commercial property policy had a Protective Safeguards endorsement attached for their burglar alarm system. The system, however, did not extend to the exterior storage yard, only the building itself. The endorsement though excluded ANY theft if the system was inoperable, as was the case that night. Needless to say, it wouldn’t have mattered if the system was operable or not for theft of property from the yard. The claim was not covered despite common sense saying that the operational condition of the burglar alarm was immaterial to the loss. Most endorsements of this type are warranties, not conditional representations, and are enforced literally. In a similar situation, an inland marine policy on a mobile wood chipper had a requirement that an operational fire extinguisher be attached to the equipment at all times. The extinguisher was removed overnight for recharging so, of course, that’s the night that vandals damaged the equipment beyond repair. Because the extinguisher was missing, the carrier denied the claim even though (1) the damage was vandalism, not fire, so the presence of the extinguisher would have done nothing to prevent the loss, and (2) even if the damage had been due to fire AND the extinguisher was there, would the vandals have used it to put out the fire they started? Of course not, but the warranty exclusion prevailed. The two most important points of this article are that Protective Safeguards endorsements must be read carefully and followed to the letter to insure coverage and common sense doesn’t always have a place in insurance policy interpretation. If you can avoid a Protective Safeguards endorsement without sacrificing a premium discount, that may save your insured an unexpected and inexplicable loss.

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THE MEETING SPACE YOUâ€™VE BEEN LOOKING FOR

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COULD YOUR CUSTOMERS USE A

PERSONAL UMBRELLA POLICY?

ACCIDENTS HAPPEN? That’s why people have insurance. However, if your customers aren’t protected by a personal umbrella policy, they could be putting their house or financial assets at risk. This low-cost policy is designed to protect families against a catastrophic lawsuit or judgment.

CONSIDER THIS: Existing homeowners and auto insurance may not be enough to cover a lawsuit or judgment. A personal umbrella policy will substantially increase your customer’s overall liability coverage beyond the basic coverage provided under homeowners and auto insurance policies. A SMART WAY TO PROTECT YOU AND YOUR FAMILY. You’ll find an RLI personal umbrella policy is a good idea. • Up to $5 million in additional insurance available • Backed by a financially secure, A+ rated company • Customers keep their current homeowner/auto insurer • Excess UM/UIM available • New drivers accepted — no age limit on drivers • Up to one DWI/DUI per household allowed • Auto limits as low as 100/300/50 in certain cases

Rated A+ 26 by A.M.Best W W W.V I A A .O R G

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

COMPANY & AGENCY NEWS

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

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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

Hickok & Boardman Network of Companies Announces Thirteen Non-Profits to Receive Charitable Gift May 22, 2018 – Burlington, VT -- The Hickok & Boardman Network of Companies is pleased to announce thirteen non-profit recipients of their 2018 charitable gifts, including: The Boys & Girls Club of Burlington, Champlain College Single Parent Program, Champlain Valley Down Syndrome Group, a private citizen in need from Town of Fairfax, Girls on the Run Vermont, Green Mountain Animal Defenders, Intervale Center, Jeremy Paul Boquet Foundation, Maggie’s Bright Side, Mobius Inc, Stowe Mountain Rescue, Tatum’s Totes, and The Veterans’ Place. Nearly 20 years ago, to celebrate the volunteerism and interests of their employees and associates, the Hickok & Boardman Network of Companies including Hickok & Boardman Insurance, Coldwell Banker Hickok & Boardman Realty, and Hickok & Boardman Financial Planning & HR Intelligence formed a Charitable Gifts committee with representatives of each company. Annually, each firm contributes to a fund and Hickok & Boardman employees and associates are given the opportunity to nominate a charity in which they are involved. “The Hickok & Boardman Network of Companies, our employees and associates, have long been known for their involvement and generosity during our United Way workforce campaign,” says Scott Boardman, President of Hickok & Boardman Insurance. “The owners of all three companies recognize our team for the time, expertise, and money they contribute to many local charities all year long. The H&B Charitable Gifts program is a way to support their community service and passions.” For a list of previous year’s recipients go to http://hbvermont.com/community.html The origins of Hickok & Boardman date back to 1821 beginning with Hickok & Boardman Insurance. In the mid to late 1900’s, the company experienced significant growth to include Real Estate, Financial Planning, Retirement and Group Benefit services. Today, the companies each independently owned and operated, form the Hickok & Boardman Network of Companies with Burlington, Vermont serving as the headquarters for each firm. Combined, they employ over 220 Staff and contracted Real Estate Sales Associates.

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Vermont Mutual Insurance Group Named Deane C Davis Outstanding Business of the Year Award BURLINGTON, Vermont (May 25, 2018) Vermont Business Magazine and the Vermont Chamber of Commerce announced on Thursday, May 24, that Vermont Mutual Insurance Group has been named the winner of the prestigious Deane C Davis Outstanding Business of the Year Award. The announcement was made during Vermont Business Magazine’s Best of Business Awards at the Vermont Chamber Business Expo 2018. Presented by Governor Phil Scott, the award honors a Vermont business that demonstrates an outstanding history of sustained growth while displaying an awareness of what makes Vermont special. Dan Bridge, Vermont Mutual’s president and CEO said “We could not be more grateful to be named the Deane C Davis Outstanding Business of the Year. It is, without question, an honor to stand alongside the other notable Vermont companies that have received this prestigious award in prior years.” Bridge continued “The recognition means a great deal to our organization and we could not have earned it without the incredible teamwork and dedication of everyone at Vermont Mutual.” Year over year, Vermont Mutual has consistently demonstrated exceptional growth, producing over $66 million in new business in the past year alone as well as increasing the company’s employee count by 24% over the past five years. As well, in 2017, Ward Group®, the industry’s premiere rating agency, named Vermont Mutual one of the top 50 property & casualty insurers in the nation, an honor Vermont Mutual has received for the past nine consecutive years. In addition, through its Charitable Giving Fund, Vermont Mutual has contributed more than $300,000 to worthy, non-profit organizations that directly help their local communities. “We are very proud to be named the Deane C Davis Outstanding Vermont Business of the year” remarked Vermont Mutual’s Executive Vice President and COO, Mark McDonnell. “Without question it speaks to the exceptional commitment of our employees and the positive and productive relationship we enjoy with our independent agent partners.” Along with Governor Phil Scott, the Best of Business Awards presenters included VBM Publisher John Boutin and Vermont Chamber President Betsy Bishop. “We are proud to have Vermont Mutual Insurance Group as the recipient of the Deane C. Davis Outstanding Business of the Year Award,” said John Boutin, publisher of Vermont Business Magazine. “They truly are deserving of this honor.” Vermont Business Magazine is the state’s most respected business publication. Since 1972, Vermont Business Magazine has published statewide business news, economic and political news and commentary, business and individual profiles, data, analysis and statistics. The Vermont Chamber is the largest statewide, private, not-for-profit business organization, they represent every sector of the state’s business community. Its mission is to create an economic climate conducive to business growth and the preservation of the Vermont quality of life

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Thomas Nanof Joins Vermont Mutual as a Senior Marketing Representative MONTPELIER, Vermont (May 14, 2018)—Thomas P. Nanof, CIC, CSRM, has joined Vermont Mutual Insurance Group® as a Senior Marketing Representative for the state of Maine. Nanof brings nearly thirty years of industry experience, as an insurance professional, Certified School Risk Manager and a Certified Insurance Counselor. Vermont Mutual’s Vice President of Marketing, Shaun P.T. Farley remarked “We’re thrilled to have Tom join the Marketing Team here at Vermont Mutual.” Farley continued “Tom is a wellknown and appreciated presence in the Maine arena. He is a veteran of the industry and a consummate professional who has the knowledge, experience and work ethic to effectively support the wonderful partnerships we enjoy with our agencies in Maine.” Mark McDonnell, Executive Vice President and COO, stated “The relationships with our Agency Partners remain a cornerstone of how Vermont Mutual does business and Tom brings the energy and the experience necessary for this important role. We could not be more pleased to have him on board.” Mr. Nanof will serve Vermont Mutual’s Maine territory and will be based in Belgrade, Maine. _______________________________ Vermont Mutual Insurance Group® is a trade name of Vermont Mutual Insurance Company, Northern Security Insurance Company, Inc. and Granite Mutual Insurance Company. Chartered in 1828, Vermont Mutual is one of the ten oldest mutual property/casualty insurers in the United States and provides coverage throughout New England and upstate New York. Through more than 400 independent agencies, the Group insures over 300,000 policyholders with a direct written premium of more than $475,000,000. The group is rated “A+ Superior” by A. M. Best and a Ward’s Top 50 performing property/casualty insurer in the U.S. for the past nine consecutive years.

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Helen Collins hcollins@viaa.org

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Tammy Lawrey Awarded Underwriter of the Year S&H Underwriters would like to announce that our own Tammy Lawrey has recently been awarded Underwriter of the Year by Region I of the National Association of Insurance Professionals International. The Professional Underwriter of the Year Award recognizes a professional underwriter who has demonstrated superior knowledge of the underwriting field, experienced professional advancement through educational pursuits, demonstrated leadership in the field, and is an active participant in IAIP activities. Criteria include IAIP involvement, continuing education, industry involvement, community involvement and an essay on an industry topic. In addition to this prestigious award, Tammy has also recently earned her AINS designation - Associate in General Insurance, her ASLI designation - Associate in Surplus Lines Insurance, and her DAE designation - Diversified Advanced Education. She has studied very hard over the past years to earn these educational designations. We recognize the commitment, determination and overall drive it takes to attain these educational accomplishments. Tammy has proven her professionalism through her level of experience in the insurance industry. We are extremely proud of Tammy and her achievements both professionally and personally. We hope you will share in our Congratulations. Way to go Tammy!! Tammy joined the S&H Underwriters team in 2013 as a Commercial Lines Underwriter. Prior to this she worked as a top producer at the agency level. She has over 20 years of experience in the industry.

Hickok & Boardman Vice Presidents Elected

Tammy Lawrey, CPIW, CLS, AINS, ASLI, DAE 888-731-5116 x 110 tlawrey@sh-underwriters.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 W W W.V I A A .O R G

NOW HIRING: Frazer Insurance Group Agency currently seeking an experience Account Manager for Farm and Commercial Lines. Position consists of point of contact with customers for policy renewals, changes, and other actions. The right person will be the liaison between the client, producer, and carrier. Duties & Responsibilities: • Professional attitude, prompt customer service. Customer service will entail, but not be limited to, phone, email, and walk-in client policy changes or questions, audits, reporting of claims. Complete support of both farm and commercial accounts. • Review and prepare renewal documents to insure accuracy of current account. • Ensure proper documentation of all account changes, policy holder choices, etc. • Monitor billing for farm and commercial accounts, record payments, etc. Experience and Licenses: • Three to five years insurance experience preferred • Property/Casualty License required •

Familiar with AMS360 Client Management a plus

• Team player with ability to work independently a must •

Detail oriented with understanding of deadlines

Competitive Salary with healthcare, vacation, sick time, and Simple IRA Please send resume and cover letter to: Jessie Farnham at Jessie@figvt.com

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NOW HIRING: The Richards Group Recognized in 2016, 2017 & 2018 as one of the Best Places to Work in Vermont, The Richards Group is an independent, full-service insurance and financial services agency who has been serving the communities of the tri-state region since 1867. We are always looking for highly motivated individuals who have excellent customer service and relationship building skills. The Richards Group offers a competitive salary commensurate with experience as well as a comprehensive benefits package. We are actively recruiting for the following positions: • Accounting Assistant, Brattleboro • Commercial Lines Sales Producer, Rutland • Commercial Lines Sales Manager, Brattleboro • Commercial Lines Sales Manager Assistant, Brattleboro • Personal Lines Account Manager, Brattleboro & Bennington • Employee Benefits Account Managers, Brattleboro For job postings and requirements please visit https://therichardsgrp.com/about/careers/ Submit Cover Letter and Resume to jobs@ therichardsgrp.com

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Granite

Set the tone to sell. Mt Mansfield

Ethan Allen

Champlain

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Hanover Insurance Group Imperial PFS MAPFRE|USA

Berkshire Hathaway GUARD Mackinaw Underwriters, Inc (part of the AmeriTrust Group)

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THANK YOU 2018 ANNUAL PARTNERS! W W W.V I A A .O R G

Granite

Mt Mansfield

Ethan Allen

Champlain

Hanover Insurance Group

AmTrust North America, Inc.

Imperial PFS MAPFRE|USA MEMIC Patriot Insurance Company

Maple

Berkshire Hathaway GUARD Mackinaw Underwriters, Inc (part of the AmeriTrust Group) Main Street America New England Excess Exchange, LTD Johnson & Johnson

Travelers

THANK YOU 2018 ANNUAL PARTNERS!