GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION
May 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 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
In This Issue: May 2015 4 Message from the President 7 Federal Legislative Update Features 12 Marketing Strategies: Why You Should Integrate Your Marketing 15 Sales Success: What Makes the Top Salespeople the Top Salespeople
E&O Corner 20 The Importance of Following Good E&O Practices with Regard to Documentation
News 24 NGM Insurance Group 26 Vermont Mutual 28 W. H. Shaw Insurance Agency
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 Legislation and the Independent Agent April was a busy month. I traveled to the Big “I” Legislative Conference in Washington, D.C. with two members of our Young Agents Committee. It was great to give our future leaders this opportunity to learn more about the association and advocate on our legislative issues. I know we are all weary of the partisan bickering that we are inundated with daily. The fact of the matter is our industry is under scrutiny and subject to increased federal regulation on top of state regulation. That is why advocacy is a top priority at VIAA and ensures that members receive daily representation in Washington, D.C. and Montpelier. I encourage all Vermont Independent Agents to be aware of current federal legislation (See Page 7) that impacts our industry from insurance regulatory reform to tax reform with flood insurance somewhere in between. VIAA has a modest fundraising goal for InsurPac in 2015. I’m sure that Paul Kendall, Vermont InsurPac Chair, would welcome your support. If you haven’t made your 2015 Insurpac contribution I hope you will today. Here at home we’ve dodged the service fee tax and fought to reduce the proposed payroll tax. We are expecting one last opportunity to advocate for our clients and industry on H 378 – an act relating to independent contractors. Although there are limited days left in the session we’re ready to provide our perspective on this very important legislation. The Vermont Young Agents Committee (YAC) Kick-Off was a success and these future leaders will meet again in Rutland in early June to finalize their inaugural agenda. It’s not too late to join. I’d also like to congratulate, Pat Cahoon from NFP-Poulos Insurance and YAC
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President, on being appointed to legislature’s Youth Employment Working Group. Looking forward, it’s time to mark your calendars for the 109th VIAA Annual Convention and Golf Tournament. It will be held September 24 and 25 at the Hilton Burlington. We’ve got a new format this year and the Young Agents are taking over the main event—Vintage Vegas Casino Night. It is an invaluable opportunity for insurance professionals of all ages, rank, and experience levels and is a must attend for all independent agents.
Michael T. Walsh, VIAA President
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.
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Federal Legislative Update
Insurance Regulatory Reform While strongly opposing day-to-day federal insurance regulation, the Big “I” does support targeted federal legislation to modernize the state-based system. In that vein, the Big “I” experienced a major legislative victory early this year with passage of the National Association of Registered Agents and Brokers legislation (NARAB II) and thanks Congress for acting. The Big “I” continues working on implementation of this critical agent licensing reform, especially on the NARAB Board appointments. The Big “I” also supports the “Policyholder Protection Act of 2015,” soon to be introduced by Sens. David Vitter (R-Louisiana) and Jon Tester (D-Montana) in the Senate and Reps. Bill Posey (R-Florida) and Brad Sherman (D-California) in the House. This bill would clarify Dodd-Frank to allow state regulators to wall off and protect insurance company assets designated for the benefit of insurance consumers and not be used to “bailout” non-insurance related failures. Flood Insurance and Natural Disasters The Big “I” strongly supports the National Flood Insurance Program (NFIP) as its agents are the delivery force for this private-public program that protects 5.5 million consumers across the country. The association also supports the “Flood Insurance Market Parity and Modernization Act of 2015” soon to be introduced by Sens. Dean Heller (R-Nevada) and Jon Tester (D-Montana) in the Senate and Reps. Dennis Ross (R-Florida) and Patrick Murphy (D-Florida) in the House. This legislation, meant to complement the NFIP rather than replace it, would grant state insurance regulators the authority to determine what is acceptable private flood insurance. The Big “I” also supports the “Safe Building Code Incentive Act of 2015” by Reps. Mario Diaz-Balart (R-Florida) and Albio Sires (D-New Jersey), which would provide financial incentives for states to adopt and enforce safe building codes. Crop Insurance The Big “I” urges Congress to oppose any legislation that attempts to cut the Federal Crop Insurance Program (FCIP). Less than a year after passage of the Farm Bill, S. 345, a bill to cap the annual crop insurance premium subsidies to producers, was introduced by Sens. Pat Toomey (R-Pennsylvania) and Jeanne Shaheen (D-New Hampshire). In addition, S. 463 and H.R. 892, the “Harvest Price Subsidy Reduction Act” introduced by Sens. Jeff Flake (R-Arizona) and Jeanne Shaheen (D-New Hampshire) in the Senate and Rep. John Duncan (R-Tennessee) in the House were also introduced to eliminate premium support for the Harvest Price Option - an important risk management tool for farmers. Arbitrary funding reductions only weaken the system and ultimately shifts risk exposure back to taxpayers. The Big “I” opposes all three bills. Healthcare The Big “I” supports H.R. 815, the “Access to Professional Health Insurance Advisors Act of 2015,’’ sponsored by Reps. Billy Long (R-Missouri) and Kurt Schrader (D-Oregon). The bill would clarify that agent compensation is not part of the Medical Loss Ratio (MLR) formula as enacted in the Affordable Care Act (ACA). The Big “I” also supports the repeal or delay of the ACA’s excise tax on high-cost health plans which is scheduled to take effect in 2018. Dubbed the “Cadillac Tax”, this tax provision assesses a 40% excise tax on health plans that exceed an established annual cost. Rep. Frank Guinta (R-New Hampshire) introduced H.R. 879, the “Ax the Tax on Middle Class Americans’ Health Plans Act,” which would repeal the excise tax. Department of Labor Fiduciary Standard The Big “I” supports H.R. 1090, “The Retail Investor Protection Act” introduced by Rep. Ann Wagner (R-Missouri). This bill requires that the Securities and Exchanges Commission (SEC) go first in issuing its rulemaking on a uniform fiduciary standard before the Department of Labor (DOL) can put forward its rule to expand the definition of a fiduciary under ERISA. The DOL is proposing to expand the application of the fiduciary standard from just registered representatives to also include broker-dealers who are currently subject to a suitability standard. The Big “I” is concerned that this move would lead to investor harm and limit consumer access to professional advice. Risk Retention Act Expansion The Big “I” has concerns with the possible expansion of the Liability Risk Retention Act of 1986 (LRRA) which was meant to respond to a crisis in the commercial liability market when some businesses found it difficult to obtain liability insurance. Some Risk Retention Groups (RRGs are entities created by that law) now want to see it expanded to also include commercial property coverage. The Big “I" and many others in the insurance market including insurance commissioners are concerned because RRGs are not regulated like traditional insurance companies and are held to different consumer protection standards. Also, there is no current crisis and there is no demonstrated marketplace need for this expansion.
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You are Invited to our INSURANCE INDUSTRY MIXER May 28th, 2015 Join Insurance Professionals from across the Champlain Valley for an evening of networking. Thursday May 28th, 2015 5:30 pm – 7:30 pm The Essex, Vermont’s Culinary Resort & Spa 70 Essex Way, Essex Junction, VT
Jazz Band, Door Prizes, Appetizers, Cash Bar, Chocolate Fountain and 50-50 Raffle
Hosted by:
Please make checks payable to CVAIP.
RSVP by 5/22/2015
$10 in advance, $15 at the door Name
CVAIP or IAIP Member (Y/N)
Business Name Amount Enclosed Please mail check and registration form to: Heidi Blondin, c/o Rig Insurance Services, PO Box 966, Colchester, VT 05446
Help Wanted Help Stop Teens from Texting and Driving The Youth Safety Council of Vermont seeks a teensavvy presenter with a good driving record for its Central & Northern VT Turn Off Texting driving safety program, our second presenter position for this popular program. Part time seasonal position with varied hours requires daily travel. Qualified candidates will be ok with a flexible schedule, comfortable working with adolescents and teachers, have good communication skills, and be willing to travel within Vermont using their own vehicle (6 cyl. minimum) to tow a trailer. Compensation includes an hourly wage and mileage reimbursement. Find TOT program information at YSCVT.ORG. Send letter and resume to info@yscvt.org.
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In the Industry less than 10 years or under 40?
e e t t i m m o C g n s i t t e en Me
You’re a Young Agent!
t n o m Ver
g A g n u o Y Wednesday, June 3, 1 pm to 3 pm
Holden Insurance, 92 Center Street, Rutland, VT 05701 RSVP: Pat Cahoon pcahoon@poulosinsurance.com
TOP 6 REASONS TO JOIN THE VT YOUNG AGENTS • Connect with other young agents • Network with vendor and carrier partners • Master the art of leadership • Give back to your industry and community • Experience one-of-a-kind learning opportunities • Be the future of the insurance industry
VERMONT
viaa.org/young-agents
VERMONT
The VT Young Agents Committee is up and running Join us for the June Meeting
Marketing Strategies with John Houle Why you should integrate your marketing Imagine your potential customers tuning into the local news and seeing your TV spot extolling the benefits of combining home and auto policies? An insurance agent, who is recognizable because of appearances on TV news and during prime time football and baseball games, encourages that customer to learn more by going to the agency’s website. Upon visiting the website, that customer watches a longer feature video that further details the benefits of combining home and auto. The 1 minute video shows a customer enjoying free time with her family; the announcer explains that she has the comfort knowing that her family is properly protected because her agent reduced coverage gaps all while saving her hundreds of dollars. After watching the video, the customer scrolls down and reads a blog article on the agency website that provides a reinforcement of the benefits of combining policies. Then, she sees testimonials from other customers right in her neighborhood who have combined policies and saved. The phone rings, her children need her attention, and it’s back to the daily grind; she forgets to call her agent. But within the next week, she is on Facebook, and in her news feed a message from that agency appears with a link to the blog post. She then goes to her email and sees that her agent has sent her an email about combining home and auto insurance. She calls her agent the next day, and moves her auto policy she had with a direct writer, combining both policies with the agency. The agent also explains how she could add an umbrella policy for a relatively low investment, and points her to a page on his website that explains umbrella coverage in more detail. Already appreciative of the savings, she heeds the sound advice the agent has provided and adds an umbrella policy. And six months later that same agent explains why she should add a term life policy.
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While this is a nice story, and is not far removed from how things actually work, it illustrates how integrated marketing should be applied. Still not convinced? Read this real life story with different examples of integrated marketing. A local company was looking for a philanthropic cause to rally behind, while at the same time was seeking to grow the company’s social media following. We organized a cause social marketing campaign, and for every new “like” they received to their Facebook page, we offered to donate $5 towards a local cancer awareness coalition. The campaign generated hundreds of new followers and encouraged engagement from his social media audience. The owner was compelled to match the donation. In front of his building, he presented a check to the head of the cancer coalition. A picture was taken, a press release written and sent to the media, and then a story and photo appeared in the industry trade journal that his current customers and new prospects read. The article was posted on his Facebook with a “Thank You” to all the contributors. This example highlights how cause marketing, social media, and traditional public relations work in concert to showcase a company as a strong community partner. Here are some easy steps you can take now to better integrate your marketing: 1. When you shoot a commercial, take extra footage so you can make a longer form video you can post on your website and social media. This is where you can go into further detail about the benefits of your product. Other than you delivering the pitch in person, this is the next best thing. 2. When you post your product video on social media, boost it with as little as $100 in Facebook advertising and $50 in
Twitter advertising to expand your reach to thousands of people in your targeted area. 3. Develop informative emails that feature blog posts that cross sell products to your existing customers. Segment your email lists so you reach the right customers with a tailored message. 4. All press is good press. Remember to promote your accomplishments, new hires, and charitable work. People want to see the good work you’re doing, and if you don’t tell them, they will never know. Take the simple steps to take an actual photo with a real camera and write a press release. It’s not a sales piece, but a news story, so simply provide the facts. 5. When you blog, write about topics you want to promote, such as home and
auto insurance. Don’t just blog for blog’s sake to simply put something out there. Write about what people are actually looking for and what you want to sell. Integrated marketing is not brain surgery, and I know, my brother is actually a brain surgeon. It’s what you’re supposed to be doing, and what you simply need to do is modify the current approach you’re taking.
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 What Makes the Top Salespeople the Top Salespeople? While the answer to this question might seem obvious, the top sales success traits aren’t always that simple. In over 27 years in the industry, I’ve seen lots of great salespeople and all of them always have the following eight traits. THE TOP EIGHT SALES SUCCESS TRAITS
Success Trait #1: Laser focus on what’s important. No matter what’s going on with the economy, in the industry, or in the world in general, top salespeople always hit their numbers. They always manage to make the calls, and ultimately, the sales that they need to make. This comes from the realization that, as a salesperson, only one thing counts: how much you sell. Top salespeople know that, no matter what, they simply have to do the necessary prospecting, presenting, and closing and they are committed to get them done regardless of what’s going on around them. As a result, they always sell more than anyone else in good times and in bad. Changes in price, competition, rules and regulations, and other factors that sidetrack other salespeople, never seem to affect them. They also don’t get bogged down in other peripheral items such as: research, having the “perfect” call, paperwork, or other items that keep them from talking to prospects and selling. Success Trait #2: Work ethic. Top salespeople are the hardest working people around and they do the work necessary for success. They also work smart, but when it comes to making phone calls, knocking on doors, and doing the other grunt work, they don’t look for short cuts or the easy way out, they simply do it. They show up before everyone, work after everyone, and they get more accomplished than everyone else. They answer their phone before and after business
hours and they are super responsive. If they are in the twilight of their career, they may not put in the hours and work as hard as they once did, but when building the business initially, no one outworked them. Also, when they have to, they are still willing to do what needs to be done. Success Trait #3: An ability to act in spite of fear and step out of their comfort zone. Salespeople can become awfully creative when it comes to staying in their comfort zone and avoiding that which they fear. In 27 years I’ve heard some of the most ridiculous excuses as to why people can’t make calls, can’t close the deal, and ultimately can’t or won’t do what’s necessary for success. I’ve heard excuses related to pets, kids, religion, health, politics, and other concerns that are so ridiculous, if I gave an example, you’d think I made it up. Top salespeople on the other hand, step out of their comfort zone and face and overcome fear every single day. They make the call they are afraid to make, try the crazy idea that might embarrass them but just might work, and they do whatever it takes to be successful regardless of how scared they are. In short, they simply do what needs to be done regardless of their fear or discomfort. Success Trait #4: Having integrity and character. While you can have some short-term success in sales without either of these, long-term success is impossible without both. Integrity and character involve being honest with people and truly caring about them. With integrity and character you will not make a sale unless it is right for both parties involved. You will also always do what’s right for the person you’re selling to even if that means sending them to the competition. Granted, you shouldn’t have to do that too often, if you do you are selling the wrong product or are with the wrong company. That said, you need to be willing 15
to do what’s right regardless of the situation or circumstance. Knowing that, at the end of the day, all you have is your reputation. Success Trait #5: A focus on people and relationships. Related to the above, your focus needs to be on people and long-term relationships. At the end of the day, unless you’re selling batteries at Walmart, the most important element in the sale is the relationship. This also means you need to be staying in touch with people and continually developing and strengthening relationships. At the end of the day, your long-term success will come down to the loyalty and size of your network. Success Trait #6: Preparation. Top salespeople are always well prepared. They have great answers to questions, objections, and all other items that might come up during a prospect interaction. They are continually upgrading their skills and developing themselves personally and professionally. They constantly get better at selling, communication, and understanding other people. Success Trait #7: Confidence. Top salespeople have complete and total belief in themselves, their product, and their company. Top salespeople truly believe that others must have their product and they believe that their customers’ lives are much improved as a result of owning their product. Top salespeople know that the first sale is to yourself. You have to have complete belief and conviction in yourself and your product before you can sell anyone else. Success Trait #8: Accepting 100% responsibility for success or failure. Top salespeople take 100% responsibility for everything in their lives. They realize that success in all areas of their lives is up to them and not determined by outside factors such as the economy, the market, or other
people. Everything starts and stops with them.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
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The Importance of Following Good E&O Practices with Regard to Documentation James C. Keidel, Esq. Christopher B. Weldon, Esq. Keidel, Weldon & Cunningham, L LP When discussing various types of E&O loss control practices, documentation is still the most important. Unfortunately, even if you do everything right with a customer, you still occasionally have insureds who find themselves without coverage for a particular loss. If one of those insureds has a faulty memory or questionable ethics, then, despite doing everything right, you may find yourself defending an E&O claim or lawsuit. In those situations documentation is often critical to the defense of the agency or brokerage. Accordingly, in this issue of The E&O Corner we will review some of the best practices related to documentation that every agency or brokerage should follow. Generally, there are several key documents that we look for when we are defending agents and brokers in E&O claims and lawsuits. These documents include signed applications, detailed notes, comprehensive activity logs, policy transmittal letters and confirmatory letters to insureds. When an agency or brokerage has these documents in their files, the chances of successfully defending an E&O claim or lawsuit greatly increases. Signed Applications Signed applications are a very powerful tool when defending an E&O claim or lawsuit. When you submit an application on behalf of an insured, you should always make sure that the insured signs the application and that you keep a copy of the signed application in the customer’s file. We suggest that you obtain a singed application even if the insurer does not require one. In many cases, an application signed by the insured is all that it takes to defeat an E&O claim or lawsuit. 20
Many of the cases we handle involve situations where insurance companies seek to rescind a policy based upon an alleged misrepresentation in the insured’s application. Often the insured will then seek to cast blame upon the agent or broker for that misrepresentation. Usually the insured will claim either that the agent or broker failed to actually ask the question on the application, or that the agent or broker made a mistake in completing the application. In such cases, an application signed by the insured will often provide a basis for an early motion for summary judgment, as it demonstrates that the insured was aware of, and literally signed off on, the information contained in the application. On the other hand, if there is no signed application, the case will likely come down to a swearing contest between the insured and the agent or broker, a situation that is, needless to say, best to avoid. The same is often true in cases where insureds complain that they requested different or additional coverage beyond what their policies actually provide. While an application cannot always establish the type of coverage the insured requested, if an insured has signed an application that requests a certain limit of coverage, or lists them as performing certain types of operations, the insured will have a difficult time proving that he or she asked for something different from the agency or brokerage. We also strongly recommend against an agent or broker signing an insured’s name to an application – a common but unfortunate practice. Even if the insured consents to this practice, doing so may create a situation where, when coverage is contested, the insured changes his story and then accuses the agent or broker of committing forgery. If an insured is not available to sign the application, and you feel that you must sign his or her
name, we suggest that, at the very least, you have your customer send you something in writing, expressly authorizing you to do so. Activity Logs We recommend that all agents and brokers maintain a system for logging their activities and interactions with their insureds and insurers. Most agencies and brokerages have agency management systems which provide an easy and uniform way to keep track of these interactions. One of the benefits of using an agency management system is that it inserts a timestamp showing the date and time when each entry was made. It is not unusual for an E&O claim to be made or a lawsuit to be brought many years after the insurance transaction took place. The statute of limitations for claims against an agent or broker may be as long as six years. As a result, it is not uncommon for memories to fade or for employees with knowledge of the relevant facts to have left the agency or brokerage before an insured opts to pursue an E&O claim or commence an E&O lawsuit. Having an activity log can help refresh faded memories and, in the right circumstances, even stand in for an employee who cannot be located to testify. An activity log can also help bolster disputed testimony. While a jury may believe a sympathetic insured’s version of events over the agent’s or broker’s version, this becomes much less likely if the agent or broker is able to back up his or her testimony with an activity log made at the time of the events actually occurred. Unfortunately, while we find that most agencies and brokerages use some type of agency management system, we often find that some employees are inconsistent is their use of the system to keep track of activities. This inconsistency may present problems in preparing a defense to an E&O claim or lawsuit. After all, it is difficult to know ahead of time which event or activity an agency or
brokerage may ultimately need to defend against in an E&O claim or lawsuit. Consistent use by employees of an agency or brokerage in recording customer activities in the system should alleviate this potential problem. Transmittal Letter Another important document often used in the defense of an E&O claim or lawsuit is a policy transmittal letter. One of the best ways to demonstrate that the insured received a copy of the policy is to send the policy with a transmittal letter and then to retain a copy of that letter in the customer’s file. Doing so also provides an opportunity to remind insureds to review their policies and that the customer should let the agency or brokerage know if there are any problems with the coverage, or if any changes to the policy need to be made. A policy transmittal letter will also help defend against a claim that an insured made a specific request for additional coverage beyond what their policy provides or that the agent or broker represented that the policy provided coverage that it did not. The insured’s duty to read their insurance policy is a defense that we frequently use in defending E&O claims and lawsuits. An insured’s receipt of a policy will be considered on a comparative basis with any fault of the agency or brokerage in connection with the subject insurance. An insured who has received a copy of his or her insurance policy will have a much more difficult time proving that they requested different coverage or that the agent or broker told the customer the policy provided coverage it did not in fact provide. Confirmatory Letters Finally, any time an insured asks the agency or brokerage to do something in connection with their policy, we recommend that the agency or brokerage memorialize the request in writing. Not only does this help you ensure that the agency or brokerage understood the insured’s request, but, if the request ultimately results 21
in the insured being left without coverage for a loss, it can help the agency or brokerage prove that it was merely following the insured’s instructions. For example, a confirmatory letter would be appropriate when an insured asks the agency or brokerage to increase its deductible, or requests that the agency or brokerage procure less or different coverage than you would normally obtain under the circumstances. In such situations a confirmatory letter would be helpful to demonstrate that the agency or brokerage was merely following the instructions of its customer. Conclusion
brokerage will not only help protect the agency or brokerage from potential E&O claims or lawsuits but it will also help protect the customer and provide better customer service. 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.
As we have said many times over the years, documentation is clearly the key to E&O loss control. The prudent insurance agency or brokerage should make certain that each of the forms of documentation discussed above is consistently used by all employees on a regular basis. By doing so, the agency or
What makes the Insurance Career Center different? Promotion where you want it: The Independent Insurance Agents & Brokers of America and InVEST work to promote the Insurance Career Center in the industry and with future insurance professionals at InVEST schools and colleges with insurance programs
Social media savvy: Postings automatically appear on the InVEST Facebook page, twitter Search qualified applicants: Post a job and gain free access to the resume search feature Entry level positions and internships are highlighted at the InVEST student website at www.learninsurance.org
Visit www.insurancecareercenter.org to post positions, search resumes and much more.
InVEST is a classroom to career insurance education program designed to increase awareness of the insurance industry with students and to introduce them to careers in the insurance industry. To learn more about InVEST, 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
Company Agency News News NGM Insurance Co. Introduces Expanded Workers’ Compensation Program in Vermont Competitive Pricing Levels and Coverage Options Offered via Additional Writing Companies BURLINGTON, VT – The Main Street America Group’s NGM Insurance Company has introduced an expanded workers’ compensation program in Vermont via its network of independent insurance agents across the state. “Our expanded coverage options and pricing levels in Vermont, available through NGM and two of our other writing companies, will enable us to more precisely match risk to rates and offer our customers more attractive rates on preferred business,” said Dan Gaynor, Main Street America’s vice president and head of commercial lines. “These new options also open our workers’ compensation market to a broader mix of business lines beyond contractors. This includes small businesses in the retail, offices, services, manufacturing and wholesale classes throughout Vermont.” NGM’s expanded workers’ compensation product considers 10 characteristics that impact company placement, including ones the Company has not used before such as number of owned vehicles, years in business and number of nonpays in prior billing cycles. Once these characteristics are applied to a risk, it will then be placed into one of three writing companies, which vary by state.
In Vermont, the product can be written with Main Street America’s NGM Insurance Company, Main Street America Assurance Company or Old Dominion Insurance Company.
NGM’s expanded workers’ compensation coverage can be paired with its Main Line Business Owners Program (Main Line BOP) – a robust small business product that offers a wide range of coverages, including many not available in competitor’s products – as well as the super-regional carrier’s tiered commercial auto program. “Quoting and writing the product is easy due to enhancements we have made to our Main Street Station commercial lines policy processing 24
system,” said Steve Berry, president of Main Street America’s New England Region, headquartered in Keene, N.H. “By adding workers’ compensation to our Main Line BOP and tiered commercial auto products, our Vermont agent-customers can meet all of their commercial insureds’ needs with one financially strong carrier.” Throughout 2015, Main Street America plans to introduce its expanded workers’ compensation program in eight more states: Connecticut, Delaware, Indiana, Virginia, Maryland, Pennsylvania, South Carolina and Tennessee. The product was launched in fourth quarter 2014 in Georgia and North Carolina. About The Main Street America Group With roots dating back to 1923, The Main Street America Group is a mutual insurance holding company which writes business through its nine property/casualty insurance carriers: NGM Insurance Company, Old Dominion Insurance Company, Austin Mutual Insurance Company, Grain Dealers Mutual Insurance Company, Main Street America Assurance Company, Great Lakes Casualty Insurance Company, MSA Insurance Company, Spring Valley Mutual Insurance Company and Main Street America Protection Insurance Company. Based in Jacksonville, Fla., Main Street America offers a wide range of commercial and personal insurance, as well as fidelity and surety bond products, to individuals, families and businesses throughout the United States. With nearly $1 billion in premium written exclusively by more than 3,000 independent insurance agents, the 92-year-old company insures over 650,000 policyholders in 36 states
and writes bonds in 46 states and the District of Columbia. A.M. Best Company rates The Main Street America Group with an “A” (Excellent) financial strength rating and “a+” issuer credit rating. Main Street America is the founding company partner of Trusted Choice®, the global branding program of the Independent Insurance Agents & Brokers of America. Main Street America is also a founding company partner of the TrustedChoice.com consumer agent portal and the Insurance Institute for Business & Home Safety (IBHS) Research Center. For more information about Main Street America, please visit our newsroom at http://msagroup.newshq.businesswire. com/ or connect with us on Facebook at www. facebook.com/MainStreetAmerica.
Agency News Company News Terry Moore Joins Vermont Mutual as Vice President of Underwriting MONTPELIER, Vermont—Vermont Mutual Insurance Group has elected Terry Moore as Vice President of Underwriting. Mr. Moore comes to Vermont Mutual from Safeco Insurance, where he served as AVP and Regional Manager of Safeco’s New York and New Jersey region. Mark McDonnell, Senior Vice President, stated “We’re very pleased to have Terry join the team at Vermont Mutual. His broad industry experience makes him a great addition to our organization.” McDonnell continued “beyond the technical expertise Terry possesses, his entire career has been spent partnering with agents in the Independent Agent channel, which is an added benefit to Vermont Mutual, since it is the only channel through which we proudly distribute our products.”
Prior to his time at Safeco, Moore was with OneBeacon as VP of Underwriting for their reciprocal companies, Adirondack Insurance and New Jersey Skylands. Starting as a Claims Examiner with Mutual Benefit Life, Moore’s experience brought him to Fireman’s Fund, where for nearly 20 years he held a variety of positions of increasing authority in Underwriting, Field Sales, Territorial Leadership, Finance and Administration, Pricing, Human Resources and Operations. Mr. Moore will be based at the Group’s Montpelier headquarters.
BEST
OF A REGIONAL.
üLocal relationships ü Local claims staff ü 100% dedicated underwriter
BEST
OF A NATIONAL.
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 Bridge Named President of Vermont Mutual Insurance Group MONTPELIER, Vermont — At the annual meeting held on April 15, 2015, the Board of Directors named Daniel C. Bridge President of Vermont Mutual Insurance Group. Bridge, the 17th president of the 187 year old group of companies, replaces former President and current Chief Executive Officer William A. Catto, who will retire on June 30, 2015. Bridge joined Vermont Mutual as a Resident Vice President in January 2009. Prior to joining Vermont Mutual, he held senior leadership positions at several regional and national insurance companies within New England.
• Richard N. Bland, Vice President General Counsel and Secretary • Susan L. Chicoine, Vice President Human Resources • Joanne M. Currier, Vice President Information Technology • David N. DeLuca, Vice President Claims • Brian C. Eagan, Vice President Chief Financial Officer and Treasurer • Shaun P.T. Farley, Vice President Marketing
“As Executive Vice President, Dan has played a lead role in guiding the strategic direction of our organization” said CEO, William A. Catto. “Dan’s election to President is an important step in the leadership transition plan that began several years ago and I have every confidence in his ability to continue to advance our strategy, one that has consistently produced excellent operating results.” “I am pleased and honored to be chosen to lead such a successful and well respected organization” stated Bridge. “I’m also excited to continue to collaborate with a talented and dedicated team of management and staff at Vermont Mutual as we partner with the best Independent Agents in the Northeast to deliver excellent products and service to over 285,000 customers.” Bridge added, “As we look to the future, we will combine the rich history of Vermont Mutual with the innovation needed to stay competitive in this ever-changing industry. Our goal is to remain a stable, predictable, and competent partner for our agents and a financially secure insurance solution for our policyholders.” Other officers elected at this year’s annual meeting are as follows: • Mark J. McDonnell, Senior Vice President 27
Agency News
W. H. Shaw Insurance Agency regretfully announces the passing on May 4, 2015 of Douglas P. Shaw at the age of 85. Doug led the agency for 30 years until his retirement in 1991. He had joined his mother, Esther, then owner of the agency, in 1953 after a short tour of duty in Korea. Doug is survived by his wife Joan, his son Andrew, and daughters Sally, Nancy, Cyndy and Betsy, 7 grandchildren, and nieces and nephews including Michael A. Powers who was VIAA President 1987-88.
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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