GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION
NOVEMBER 2017
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ermont Mutual is proud to have served Vermont and the New England market through the longstanding partnership with our Independent Agents. It remains our privilege to work with the finest Independent Agencies in the industry … the only place you can buy a Vermont Mutual policy.
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In This Issue: November 2017 4 Message from the President
Features 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 IIABA & PIA State National Director Ron Bixby
7 Credit Freezes and the Insurance Industry 9 Lemonade’s New Message for Gun Owners and Victims 11 Young Agents Committee News Brief 16 High and Dry: How Will Legal Marijuana Impact Workers Comp? 22 Sales Success: If 24 E & O Corner 32 Convention Highlights 52 Distracted Driving is More Deadly Than Data Shows: Special Report
VIAA News
Directors Chip Ams Daniel Rodliff Michael Barrett
46 VIAA Member Survey 48 New Board Members
Staff
50 Bixby Award
Executive Director Mary Eversole meversole@viaa.org
56 Co-Op Insurance
GMA Publication Design LONDONmiddlebury londonmiddlebury.com
Company News 58 Acuity Insurance 59 S&H Underwriters, Inc. 60 Vermont Mutual
Help Wanted 62 The Richards Group 64 The Essex Agency 65 Taylor Moore Agency
Message from the President Thanksgiving and Insurance Go Together Like Peas and Carrots One of my favorite holidays is Thanksgiving. I enjoy seeing family and friends gathered around the table and sharing a great meal. It’s amazing to think that Thanksgiving has existed for 396 years all because a small ship called the Mayflower landed in Massachusetts instead of their planned destination at the mouth of the Hudson River. President Lincoln declared Thanksgiving a national holiday in 1863. In 1939, President Roosevelt tried to move the holiday up a week but that only lasted two years. He later signed a bill in 1941 forever marking Thanksgiving as the fourth Thursday in November. It’s been that way ever since. Most people don’t equate insurance with Thanksgiving. Like the rest of us, you would think that insurance coverage gets the day off too. Imagine insurance policies and claims sitting down on the sofa watching football or falling into a turkey-induced nap. No such luck. According to the National Fire Protection Association (NFPA), Thanksgiving Day is the leading day for home cooking fires, with three times as many occurring on Thanksgiving as any other day of the year. Thanksgiving marks the official start of the holiday travel and shopping season! Speed, alcohol, time of day and weather, increase travel related incidents dramatically during the holiday. How many of you have left your Thanksgiving 4
table to respond to a claim or helped an insured after the holiday file a homeowner’s claim because of food poisoning? I’ll never forget the call I received a couple of years ago from my client at 12:30 am Thanksgiving night when they returned home from their Thanksgiving family travels to find their home totally flooded with water because a town water main pipe had burst. Risk goes up during the holidays. The statistics prove it. As Risk Managers we can help our clients and our ourselves have a happy and claim-free holiday! We’ve included some holiday tips we hope you will put to good use. Happy Thanksgiving to you all! Erin Odell, CIC, CISR, MBA Odell Insurance Agency VIAA Incoming President P.S. Enjoy the photos from convention inside this issue!
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Newsflash Credit Freezes and the Insurance Industry By Wes Bissett Big “I” Senior Counsel, Government Affairs Credit freeze laws have been enacted in fortynine states and the District of Columbia, and these individual statutes address the manner in which the credit freeze process works and impose various requirements on the credit bureaus. The laws typically specify the procedures associated with putting a freeze in place, temporarily lifting a freeze (so that someone with a legitimate need to review a credit report may do so), reinstating a freeze, etc. Most states allow the credit bureaus to charge fees for placing, “thawing,” and reinstating a freeze, but some jurisdictions allow certain segments of the population to take these actions for free. A small number of states also allow any individual to institute (and, in some cases, to lift freezes) for no charge at any time, and policymakers in other places are likely to consider similar action as a result of the Equifax breach. As a growing percentage of the population puts credit freezes into place, some have asked what implications this trend might have for the insurance industry. If insurers become unable to access the credit information of personal lines applicants and insureds, then (1) many consumers are likely to see premium increases, (2) agents will spend an inordinate amount of time reminding consumers to temporarily lift their freezes, and/or (3) many consumers will opt to stick with their existing carriers and refuse to shop their policies (in order to avoid the hassle and costs associated with lifting a
freeze). The good news, however, is that more than 40 states (including Vermont) have some form of an exemption in their credit freeze statutes that permit insurers to access the credit reports of those who have initiated a freeze. The Vermont credit freeze statute can be found here. The statute (see Section 2480h(l)(10)) includes an exemption for “[a] ny property and casualty insurance company for use in setting or adjusting a rate or underwriting for property and casualty insurance purposes.”
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When you work for yourself, you make your own success. But that doesn’t mean you can’t get help along the way. That’s why Safeco offers programs and services that position you to win. From producer-development and agency-training programs to Bricks & Clicks™, Customers for Life™, and 24/7 Gold Service™ call center support, we’re there.
Reach out to your Territory Manager or Agency Specialist, or visit Safeco.com, to learn more. The audience for this information includes insurance agents and brokers nationwide and is therefore general in nature. Every agent and broker is responsible for knowing the guidelines and laws that govern rating, underwriting, and claims handling in their states. Coverages and features not available in all states; see the Product Guide(s) for details. ©2017 Liberty Mutual Insurance AP 300783 SMART2 2017/01
Feature Article Lemonade’s New Message for Gun Owners and Victims
In August, I blogged about “Lemonade’s Bizarre New Self-Service Approach.” This “self-service” approach is pitched by Lemonade as a benefit to customers who can apparently delete coverage for spouses, mortgage companies and others unilaterally, something that could likely create serious problems for consumers who are not counseled on the possible repercussions of such actions. In other words, Lemonade is reducing their workload, increasing consumers’ risks of loss, and making their customers thank them for it. Earlier this month, I posted on my LinkedIn Discussion page about “Lemonade’s ‘Zero Everything’ Policy.” Again, Lemonade touts something that largely benefits…Lemonade. And they do it in a way that makes consumers think it’s good for them. Just this week, I learned of yet another odd Lemonade decision about a new coverage stance on guns and gun owners. This is from their web site blog: “Guns, And Why Lemonade Is Taking A Stand“
According to the blog post, Lemonade’s next policy form revision will include the following: 1. We will exclude assault rifles altogether. We simply don’t understand why civilians need military-grade weapons, and we prefer not to insure them. 2. We will add requirements that firearms be stored securely and used responsibly, upon penalty of voiding coverage. We believe guns should be treated mindfully and soberly, not as a plaything, a status symbol or an ideological prop. Reasonable people, we believe, can agree on that. On the first point, they did not elaborate on how “assault rifle” will be defined, nor did they indicate whether the exclusion will be for loss of the rifle itself or, more likely, liability claims for BI to others. If the latter, this policy sounds like it punishes victims as much as gun owners. Lemonade’s HO policies already exclude liability coverage for intentional losses like the recent Las Vegas shooting, so even if the perpetrator had an HO policy with them (or most other insurers), it wouldn’t cover victims’ claims. However, what about an accidental negligent shooting or BI that arises when someone takes a gun owned by someone else and the owner is sued? Most HO policies would respond to such claims. However, it doesn’t sound like Lemonade wants any part of that. On the second point, they say that their revised policies will require that all firearms be stored “securely and used responsibly” or there is no coverage. How do you determine what “securely” and “responsibly” mean if these
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terms are the ones actually used in the revised policy language? And, again, if such an exclusion is invoked, who is the loser? It sounds like the victim(s) of such negligence now have no insurance proceeds to access. So, who is potentially the primary beneficiary of these changes? Sounds like Lemonade is since they would not be paying claims to innocent victims of the negligence of their insureds. Insurance policies sometimes exclude BI or PD that arises from illegal activities, though most auto policies, for example, don’t exclude BI or PD that arises from driving under the influence. The reason is that one of the primary purposes of liability insurance, from a social aspect, is to benefit innocent victims of such careless actions. However, what we could be seeing with this change from Lemonade is that their insurance products may base coverage on what THEY think is morally right or wrong. Their blog post says they are being upfront about what THEY think is “good” and not good, and that they’re not into “gun
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worship” or “vigilante” gun owners, and that they are doing their part to “solve gun violence.” Sounds like what they’re doing is simply taking away a victim’s source of financial recovery for the negligence of Lemonade’s customers. Does that benefit society, or does it benefit Lemonade?
YOUNG AGENTS VERMONT
Young Agent Spotlight:
Kody Lyon, NFP
NEWS BRIEF
family and finds herself traveling back to New Hampshire often to spend time with her parents, brothers, nieces and nephews. Kody attended 4 years of college at Husson University in Bangor Maine. After her athletic success in high school she continued to focus on her softball career while at the University. Here is where she met a woman that would influence her life forever, her softball coach. “She held our feet to the fire; we were held accountable, taught to be responsible –being late wasn’t an option, and she taught us how our actions could be perceived by others. Her influence has continued to play a major role in my success as a person and as an agent.” Following college Kody earned a high level, demanding role in Hospitality management. However, she was longing for a more structured career path and was determined to have one. After many propositions for her to work in insurance, she began to dive deeper into the business venture. Young and ambitious, Kody studied and became a licensed agent all on her own. She had set her goals to take on the insurance industry.
“Everything happens for a reason” is Kody’s mantra. Growing up in a small town in Northern, NH, By the age of 16 Kody had traveled to 45 of the 50 states in the US. She is the youngest and only girl in her family. Kody remains close to her
In 2015 Kody found herself establishing her insurance career with the Noyle W. Johnson Agency. She relocated to Vermont and became the commercial and personal lines producer in Montpelier. During her time with the agency, Kody was introduced to the Young Agents Committee and quickly became part of the YAC community. Kody has held several leadership roles for the Young Agents, including her current position as secretary. Kody has also represented the Vermont YACs in Washington DC for the past 2 years. Continuing on the path of determination, Kody looked for an agency that would offer her growth 11
YOUNG AGENTS VERMONT
NEWS BRIEF
and tools to improve her knowledge of the business. In 2017 Kody joined NFP as the commercial lines account executive. “NFP promotes growth to better yourself and your career, they actually push for it. They offer CE’s, sales trainings and other tools regularly. You’re never alone.” Kody exudes confidence, kindness, determination and passion. When asked to describe herself she states: “I like helping people. I am dependent, loyal and honest to a fault.” Kody resides in Barre with her dog Pippa. She continues to pass the torch as a local softball coach and stays active by participating in CrossFit, broomball, softball and snowboarding. She is involved in the community as well as the Young
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Agents and the Montpelier Rotary. It is clear that Kody Lyon is a rising star in the insurance industry and we look forward to seeing her accomplishments for years to come. “Kody brings energy and integrity to her relationships, which is something we look for and value in our culture at NFP. She is outgoing and genuinely cares about her clients. Her passion, ambition and good nature will be a driving force in the next generation of leadership at our organization. We are fortunate to have Kody at NFP and also as a member of the VIAA Young Agents Committee.” - Dan Rodliff, NFP Vice President.
YOUNG AGENTS VERMONT
NEWS BRIEF
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Feature Article High and Dry: How Will Legal Marijuana Impact Workers Comp? Scenario 1: An employee sustains a traumatic injury at a jobsite. To treat pain, the physician prescribes medical marijuana instead of an opioid. Scenario 2: An employee sustains an injury at a jobsite and is asked to take a drug test after the fact. The test comes back positive for the active component of marijuana. Question: In either scenario, can the employer still expect their workers compensation carrier to pay the associated claim? And if the employer has a drug-free workplace policy in force, do they have the right to fire the employee for using marijuana either recreationally or for medical purposes? Answer: It depends.
States vs. Feds
As of press time, medical marijuana is legal in 29 U.S. states plus Washington, D.C., and recreational is legal in seven states and D.C. “And there’s no end in sight—there will be other states,” predicts Peter Burton, senior division executive for the National Council on Compensation Insurance state relations department. At a time when the opioid crisis continues to make headlines, some doctors are already prescribing marijuana as an alternative to addictive narcotics. Michael Bourque, CEO of The MEMIC Group, knows of a few cases where injured workers have weened themselves 16
off heavy doses of opioids in favor of marijuana, and Burton says some evidence suggests marijuana can be as effective as opioids in addressing issues like epilepsy, glaucoma and some traumatic injuries. For example, a study that appears in the July 2017 edition of the Journal of the International Association for the Study of Pain asked medical marijuana patients to rate the effectiveness of medical cannabis in treating their chronic pain. The average score was 74.6% on a scale of 0% (“no relief”) to 100% (“complete relief”). And according to a 2015 Harvard-led review of 28 studies examining the efficacy of drugs that use cannabis, “use of marijuana for chronic pain, neuropathic pain, and spasticity due to multiple sclerosis is supported by high-quality evidence.” In January 2017, another report from The National Academies of Sciences Engineering Medicine reached a similar conclusion. Still, cannabis-related research is in its early stages. And even if marijuana becomes a more mainstream therapy for workers comp injuries, it remains illegal under federal law. That means if a doctor prescribes medical marijuana for an injured worker, the carrier may have grounds to refuse to pay the claim. Nationwide, for example, does not reimburse medical marijuana treatment except in jurisdictions that mandate it by law. And so far, only five states—Connecticut, Maine, Minnesota, New Jersey and New Mexico— officially require insurers to pay workers comp claims involving medical marijuana. New Mexico was the first in the 2014 case Vialpando v. Ben’s Automotive Services, when the state’s Court of Appeals upheld the validity of a workers compensation award directing an employer and insurer to reimburse a worker for the cost of medical marijuana used to relieve
pain. Although such cases have been few and far between so far, as more states legalize marijuana in the years ahead, “it could be a very interesting circumstance, because you could have a state saying yes, you have to pay, and the feds saying no,” Bourque says. “The supremacy clause of the Constitution might suggest the federal government would have precedence, but it could be seen as a states’ rights issue too. It’s just too early to tell—these things are just now making their way through state courts.”
The Drug-Free Workplace
Another issue working its way through the courts: employers deciding to implement drug-
free workplace policies, which results in workers comp premium credits in some states. For example, Fitzhugh Powell, Jr., president of Cecil W. Powell & Company in Jacksonville, Florida, says his state offers a 5% credit for a drugfree workplace—compared to a 2% credit for workplace safety. The goal is simple: Reduce the number of employees who show up at work impaired. If a larger portion of the working population comes to work drunk or high, “that obviously creates exposures and injuries on the job that wouldn’t exist before,” says Larry Corsi, leader of workers compensation at Nationwide. “Of course, this could have happened before with illegal drugs and alcohol. Every state has
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laws that dictate what an insurer can do if an individual causes injury who was impaired in some way—some allow you to restrict coverage, some allow you to deny the claim altogether.” Remmie Butchko, CEO of Georgetown Insurance in Silver Spring, Maryland, is a big advocate of drug-free workplace policies. In the 27 years he’s been writing workers comp insurance, “drug testing has been the single most effective strategy for reducing worksite injuries,” he says. “I’ve seen firsthand how effective they are because I’ve helped implement a lot of them.” In one case, Butchko worked with a concrete company that had an experience mod over 2.0. “He put in a drug testing program, and five years later, it went down to a .75. The only change he made was started drug testing,” Butchko explains. “Now, he’s not paying a fortune for workers comp, and he has fewer problems at the job site.” But do drug-free workplace policies stand up in states where marijuana is legal, either medically or recreationally? In Michigan, medical marijuana is allowed, “but that doesn’t mean an employer has to tolerate it,” notes Randy Boss, certified risk architect at Ottawa Kent, headquartered in Jenison, Michigan. “If somebody fails a drug test, the employer can terminate them.” Some states follow the same protocol—in 2015, Colorado courts ruled that “an employer can have a drug-free workplace policy and fire you for testing positive for marijuana, even though it’s legal,” says Kevin Ring, lead workers compensation analyst at the Institute of WorkComp Professionals. “Those two things are not incompatible.” 18
But in July, the Massachusetts Supreme Judicial Court ruled in Barbuto v. Advantage Sales and Marketing, LLC that employees who have legal prescriptions for medical marijuana can sue their employers for disability discrimination if they are fired solely on the basis of using the drug—which means that while employers are free to adopt a zero-tolerance drug policy, they can be held liable for discrimination. The situation is the same in Rhode Island and now in Maine, where a new recreational marijuana law that will take effect in February will not allow employers to test job applicants for marijuana or fire them for a marijuana-positive drug test, unless they can also prove use or impairment on the job.
The Burden of Proof
And that last part may prove trickier than expected: Unlike with alcohol, there’s no reliable way for an employer to determine whether an employee is high at work. A drug test may come back positive, but that could just mean the employee smoked a joint at some point in the last few weeks. At Owen-Dunn Insurance Services, headquartered in Sacramento, California, a workers comp client’s employee was recently completing a painting job when he fell off a ladder. “He acknowledged he fell out of the ladder because he was pretty high,” says Owen Taylor, president. “He uses medical marijuana for control of Tourette’s syndrome, and the employer was aware that he used medical marijuana because of that. So they had to make accommodations to the kind of work he was doing.” But short of an injured worker coming clean of their own accord, proving marijuana impairment in the event of an injury is a tall order. “You can’t breathalyze for marijuana,”
Ring says. “That’s what makes alcohol so easy. ‘Are you drunk?’ It’s a simple yes or no question that we can test for right this second. But the science hasn’t gotten there for marijuana or even for prescription pain medications. It may never get there.”
are certain industries where [drug use among employees] is just part of the drill.”
“Some studies have tried to tackle THC levels, but what constitutes a level of impairment in one person may not do so in another,” Bourque agrees. “It’s a real concern for employers. If states are going to legalize marijuana, employers are going to need tools to make sure their workplaces are safe.” The jury’s still out on what that will look like. Boss, who is careful to assist his workers comp clients in maintaining properly written employee manuals and drug policies, personally advocates a drug-free workplace. But some of his clients have expressed concern that if they implemented drug testing, “they wouldn’t be able to get the work done,” Boss says. “There
“You have people saying, ‘Why does it matter, as long as I’m not stoned when I come to work? You don’t test to see if I got drunk over the weekend or even if I just had a couple of beers last night—why does it matter what I’m doing in my off-hours?’” Ring points out. “What does a drug-free workplace look like in a world where this drug is legal for adults to use? As this becomes more prolific, we’re going to have to figure out how we deal with that.” Jacquelyn Connelly is IA senior editor.
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Sales Success: If By Phil Schuman
Up on the wall in my childhood home was a poem I often would look at but not really understand. As a teenager its message for everyday life became easier to grasp. And many years later one line in particular seemed very fitting as a mental guide for success in both life and sales. The poem is “If” by Rudyard Kipling and the line that stood out that can help any salesperson is this: “If you can meet with Triumph and Disaster and treat those two imposters just the same.” Sales is a game of wins and loses with more loses than wins. The two ends of the spectrum are never mutually exclusive – it’s impossible to have success without some failure and hopefully impossible too if you’re persistent and putting in the work to have failure for too long without success. The word imposter always struck me because both states of the mind are only how you perceive them to be. As Anais Nin said: “We don’t see things are they are, we see them as we are.” Two people can look at the same result of failure. One can be defeated by it and give up. The other can get right back up, learn from it and be stronger as a result. Two people can triumph. One becomes complacent and misses future opportunities. The other person stays humble and hungry. Same situations; different results. The path to success in sales is a long one. If you’re getting too down about the inevitable disappointments of rejection, it makes finding success by staying confident and positive that much harder. If you’re getting too overly excited about the wins you’ll more likely be missing the necessary hunger and sense of urgency for the next great 22
opportunity that lies ahead. The best course of action as you’re navigating the mountains and valleys of prospecting is simply to accept that peaks and troughs will come with the territory and find a happy medium somewhere in the middle where you can stay strong and focused ready to take on victories and defeats with a similar resolute mindset. Next time you’re online look up the poem “If”. The line about triumph and disaster relates well to sales but there’s also something in each of the four verses that can be applied to guidelines for success in selling. Putting in the work and having the discipline to stay focused is obviously critical, but just as important is the mindset of the salesperson – how each result is perceived determines whether it will trip you up or propel you forward. Stay consistent, level headed and laser focused, and you’ll be that much more prepared for sustained successes to come. The next time you achieve a great win or are met with a setback, remember that successes and failures are a package deal and you’ll always experience one to some degree some time after you’ve experienced the other. Make Rudyard Kipling proud and stay the steady course, accepting both imposters on your steady but sure climb to success. Happy Selling! The Schuman Group empowers and inspires sales teams with proven strategies and real world tools through sales training, coaching and consulting services. www.schuman-group.com
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&O ECORNER Smart Site Safety By Virigina M. Bates IIABA/Swiss Re It won’t surprise any reader of this magazine that, as the one insurance person in the family, I found myself going through his insurance papers after my father’s funeral. I searched and searched for the umbrella policy I just KNEW he and my mother would have, but it was nowhere to be found. What I did find was his direct writer’s local agent’s name and phone number. She explained that there was no umbrella and when asked why, she was very clear: “He never asked for one.” In his state, that was an acceptable answer because, like most of the United States, it required only an “order taker duty” or “duty to provide as requested”. (IIABA.net/EOHappens has a map showing each state’s standard of care, along with other helpful loss prevention information.) Fortunately, it never became necessary to discover if that agent or carrier had expanded that duty by advertising or otherwise offering to go beyond that basic duty with coverage advice, exposure analysis, asset protection, and/ or an ideal package of coverages to suit his needs. Any materials that indicated that the agency guaranteed a “special relationship” with its clients would have worked if we needed it. Unfortunately, for many agencies, plaintiff attorneys DO have reason to find those indications and recent E&O claim history shows that they are having good success. AN AGENCY’S WEB PRESENCE HAS DUAL GOALS 24
Just about every agency realizes that it needs a social media presence and often, that starts with a strong website and an app. Like any marketing piece, good design starts with knowing the goal or goals. Good objectives can include: • attracting new business • giving current clients access to information on their account information • allowing current clients “self-service” either because they prefer “doing it • themselves” or need to do it during off-hours • providing current clients and/or the community at large helpful insurancerelated information such as disaster preparedness, differences between working with a direct writer vs. an independent agency, or the various ways property values can be computed/insured. Most marketing seminars and E&O seminars provide very valuable recommendations but they often seem to conflict when it comes to site and app content. The marketing gurus use words like “creating client relationships, “differentiation”, “hyper-value”, “going the extra mile”, “full coverage”, proactive account rounding, “exposure analysis”, and “value added”. E&O seminar leaders urge caution about over-promising, creating that “special relationship”, extending the “duty to provide” to coverage-recommending, and using terms like “full coverage”. One multi-session attendee described feeling like the person between the rock and the hard-place: Should she be E&Osafe or should she be successful in an evermore-competitive insurance marketplace? SAFE & COMPETITIVE
&O ECORNER The industry’s consensus is that an agency that waits for requests for coverage will miss important revenue opportunities and will not be competitive with other agencies that will be offering more analytical, recommendation-based insurance services. Most insurance people have a desire to guide and educate, not just follow instructions, especially if those instructions would leave important exposures uninsured. Happily, an agency can be E&O-safe while it is presenting itself positively and proactively in the marketplace. A simple change in wording from “we will” to “we will endeavor to” can help. Here are some well-intentioned but dangerous examples of wording on websites that if shown on the “big screen” in court could turn the case against the agency, along with safer wording that still gets the message across to the site or app user.
see if modified wording is in order. You also may want to consult one of the site auditors listed on the E&OHappens site of IIABA. “SAY WHAT YOU DO & DO WHAT YOU SAY” A website or an app is not JUST a marketing tool. It really is a representation to the world (literally) of what your agency is. Even safe wording and reasonable descriptions of the agency’s business model can be used against you in a court of law or mediation if the “picture” painted on the site does not match
E&O auditors review and comment on agency websites as part of their analyses and most Agency Principals immediately see the potential for problems when they are pointed out to them. Almost all of those Principals comment that they “just weren’t reviewing it for that exposure” when they approved the site – or the site got updated without as thorough review as when it was new. While your site may not use the exact wording above, this may be a good time to go through it with a “jeweler’s eye” to 25
&O ECORNER the “reality” of your operation. What you reasonably say your agency does will be tested if a plaintiff alleges the agency’s work did not match that description. Many agencies assure clients and prospects that each account is reviewed annually. In many of those agencies, automatic renewals are processed as they come in from the carriers with little or no pre-renewal or post-renewal or mid-term coverage review. It is not unusual for an agency to move a commercial book of business to a new carrier and discover it does not even have a record of what the client company does. Here are some other examples of potential dissonance between a site or app description of what an agency does for its clients and reality: WEBSITE ESSENTIALS Swiss Re’s Corporate Solutions Department, like all E&O carriers, has seen plaintiff attorneys bring the defendant agency’s web-based statements as evidence of the agency’s negligence in not fulfilling its “promise” to the client. They have been very 26
proactive in providing solid recommendations that are very easy to incorporate into an existing
&O ECORNER agency site or app or that can be very helpful in developing a new agency site or app. Some of those recommended “Essentials” are: • clearly indicate the states in which the agency is licensed to offer insurance • explicitly state that mis-statements or omitted information can and probably will change the pricing and availability that the agency can provide • include a privacy statement (available from the E&OHappens website or your agency’s attorney) and be very clear that no information provided will be shared with other parties without the applicant’s explicit permission and provide a mechanism for the applicant to provide that permission • encrypt all information that could jeopardize the user’s privacy and security. Those items include, but are not limited to, health information, full name, mother’s maiden name, social security and driver’s license and car registration numbers, as well as any free-form areas since the client could enter confidential information there • be clear that applying for insurance does not automatically lead to being insured. Specify exactly what the applicant will receive to verify that coverage has been put in force. Repeat (e.g. as a “footer”) on every page. • obtain, by written or electronic signature, permission from any individual or business if you use a testimonial or quote from that entity • avoid superlative and comparative words such as “the best” or “better than other providers” or “all risk” or “full coverage” or “the best insurance program”. Instead, promote the agency’s and its staff’s
professionalism, experience, specialization, product line on their own merits • set up a suspense system to ensure that the site and app information is current. Staff changes, carrier deletions and additions, product line updates, relevant law revisions, and agency hours changes and even location changes can get lost in the shuffle. One agency’s site very recently wished its visitors “A Very Happy 2010” which did not convey the message of competency that the agency intended! • provide the agency’s credit & collection policy on any quote or coverage request page. Examples: if the prospect’s old/ incumbent agency reminds them to pay their direct bills and your agency does NOT, the potential new client has no way of knowing that they should not wait for your reminder call unless you TELL them that. If their old/incumbent agency paid their agency-billed premium for them when their budget was tight and you do not advance premiums, the client deserves to be so informed. This will not only make the agency safer from E&O loss, but will begin client service off on the right foot. VENDOR-PROVIDED INTERACTIVE SITES MAKE YOUR AGENCY’S DATA BASE AN EVEN MORE IMPORTANT E&O SAFETY MECHANISM The major vendors of agency management systems provide products that can be used as the agency’s site or that can be a “plug in” on the agency’s site. Most can also work as an app. These products have been deservedly popular and allow integration with the agency’s data- base so that clients can not only look up their coverages, often through the agency’s portalling of the client’s policies 27
&O ECORNER and endorsements, but also the clients can effect service functions by interacting with the site, rather than by contacting a service rep in the agency. Clients are increasing comfortable and like “doing it themselves” at a site. Many clients want to handle their insurance matters during hours that the agency cannot be physically available. These products, therefore, are becoming not just attractive, but necessary to meet market expectations. It is not uncommon for an agency to offer an interactive site to its clients without verifying that its database, which the client will now be using to get a certificate or a binder or report a loss, is not complete or accurate. Agency staff have been coping with that by using images of paper or the carrier websites – all of which is inefficient and has had its own E&O dangers – but now those dangers are accentuated. Recommended practice before opening up an interactive site to an agency’s clients includes: • data audits for field completeness and currency • workflows that update the agency system first (rather than doing the carrier’s site first and awaiting the download into the agency system) • ensuring that backlogs of agency work are eliminated so that the system detail is as up-to-date as possible. A very simple example might clarify the importance of site and system synchrony. An agency is short-staffed due to unanticipated staff departure and some work is not done in a timely manner. It might be the download suspense; it might be handling of an aged receivable. The upshot is that a cancellation does not get updated in the agency’s system. A commercial lines client in that same timeframe obtains a certificate of insurance from the agency’s 28
website and directs it to an entity for which he is working. A claim occurs during a period of “no coverage”. The agency will likely be found negligent for allowing certification of coverage when coverage was not in force. It is important to point out that, even in the absence of a loss, client confusion is enough reason to ensure that the agency’s data base is “ready for prime time”. AMERICANS WITH DISABILITIES FEDERAL LAW One important consideration in agency website design is accessibility. 244 Federal accessibility cases were filed in 2016 in regard to public accommodation businesses. The Department of Justice responded to one defendant’s interpretation that “only physical locations are subject to Title III of the Americans with Disabilities Act (ADA) in this way: “The United States respectfully submits this Statement of Interest to clarify public accommodations’ longstanding obligation to ensure that individuals with disabilities are not excluded, denied service, or treated differently from other individuals because of the absence of auxiliary aids and services, such as electronic technology. This obligation means that websites of places of public accommodation..... must be accessible to people who are blind, unless public accommodation can demonstrate that doing so would result in fundamental alteration or undue burden.” Since most agencies in their marketing materials offer its location(s) as open to clients, prospects, and visitors, it is a place of “public accommodation”. Note that the DOJ’s statement above is a Statement of Interest, not a court or administrative filing; but an agency in setting up a website would be wise to consider
Lines Experience to the Next Level? & ECORNER O
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South Burlington, VT text alternative such as captions on-screen NFP, a leading insurance broker and or available to bethat displayed. Atemployee minimum, this consultant provides benefits, shows admirable concern for the vision-impaired property & casualty (P&C), retirement, and andindividual at maximum, it mayand keep the agency out of insurance wealth management onesolutions of the expected multiple 2017 beyond is currently seeking anand experienced accessibility-based cases. Personal Lines Producer to advance his or her career as a Commercial Lines Producer its South Burlington office. This position Aninagency’s web-presence is an integral and is responsible for generating new expected part of its overall business sales plan.for all Commercial Lines policies Most clients will want and expectand therequires agency ability to electronically. work closely with clients, to the be accessible Agencies customer producers, will continueservice to facerepresentatives, strong competition insurancethemselves carriers. The andmanagement, will want to and differentiate to work environment is professional very keep current clients and attract new and ones. supportive. candidatethat should have Mindful setupThe of allideal information is made excellent skills, {2+} years of available on interpersonal the web and commitment to keep experience, and ability to adapt to emerging that information up-to-date and carefully technology. They the willagency be supported presented will allow growth,with commercial lines training and mentoring for retention, strong community reputation, calls, proposals and andprospect/planning, avoidance of E&Osales entanglements. education. A property and casualty license is ________________________________ required. NFP offers a highly competitive compensation and benefits package.
Virginia M. Bates is an approved auditor and seminar leader for the IIABA/Swiss Re E&O Program as well as an educator for many other insurance subjects for state associations, vendors, carriers, and other organizations. consults with Please send yourSheresume to:agencies on reducing E&O exposure, profitability, Human Resource management, Best Practice processes,
Dan Rodliff business planning, and sales planning/direction. She also provides inVice President, NFP P&C
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PO Box 2243 South Burlington, VT 05407 Or
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Free Legal Consultation for VIAA Members – Up to 30 minutes KEIDEL, WELDON & CUNNINGHAM, LLP Attorneys at Law
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Helen Collins hcollins@viaa.org
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Thanksgiving Safety The kitchen is the heart of the home, especially at Thanksgiving. Kids love to be involved in holiday preparations. Safety in the kitchen is important, especially on Thanksgiving Day when there is a lot of activity and people at home. KKK Stay in the kitchen when you are cooking on the stovetop so you can keep an eye on the food. KKK Stay in the home when cooking your turkey and check on it frequently. KKK Keep children away from the stove. The stove will be hot and kids should stay 3 feet away. KKK Make sure kids stay away from hot food and liquids. The steam or splash from vegetables, gravy or coffee could cause serious burns. KKK Keep the floor clear so you don’t trip over kids, toys, pocketbooks or bags. KKK Keep knives out of the reach of children. KKK Be sure electric cords from an electric knife, coffee maker, plate warmer or mixer are not dangling off the counter within easy reach of a child. KKK Keep matches and utility lighters out of the reach of children — up high in a locked cabinet. KKK Never leave children alone in room with a lit candle. KKK Make sure your smoke alarms are working. Test them by pushing the test button.
Did you know?
Thanksgiving is the leading day of the year for home fires involving cooking equipment.
Your Source for SAFETY Information
NFPA Public Education Division • 1 Batterymarch Park, Quincy, MA 02169
www.nfpa.org/education ©NFPA 2016
Have activities that
keep kids out of the kitchen during this busy time. Games, puzzles or books can keep them busy. Kids can get involved in Thanksgiving preparations with recipes that can be done outside the kitchen.
Name of Organization Here Contact Information Here
Tips for Holiday Hosts and Guests Watch What You Eat and Feed Others: Even if food was prepared outside your home by a caterer, another guest, a local deli or the neighborhood pizza joint, YOU could be held liable if someone becomes ill from consuming it on your property. Make sure that you check food and don’t put anything out that you suspect may be undercooked, spoiled or contaminated. Use only reputable food purveyors. Follow proper food-handling, heating/cooling and storage recommendations. When in doubt, throw it out. Mix up the Activities, not just the Cocktails: If the party centers on drinking, guests will likely drink more. Schedule entertainment or activities that do not involve alcohol. Provide safe filling food for guests and alternative non-alcoholic beverages. Know who the designated drivers are ahead of time. Party Elsewhere: Host your party at a restaurant or bar that has a liquor license, rather in a home or office to decrease your liability. Call a Cab, Get a Room or Have a Slumber Party: Arrange transportation or overnight accommodations for those who cannot or should not drive home. Just Say No: Do not serve guests who are visibly intoxicated. Stop serving alcohol at least one hour before the party is scheduled to end. Stay alert and always remember your responsibilities as a host. You might also consider hiring an off-duty police officer or professional bouncer to discreetly monitor guests’ sobriety or handle any alcohol-related problems as guests leave. Do Your Homework: When hosting a holiday party, individuals should look to the liability portion of their homeowners or renters insurance policy to protect them if they are sued and found liable for an accident involving a guest who drank or got sick after consuming food at their home. Consumers should regularly review their liability coverage limits to ensure they are adequately covered should an accident or illness occur. Know Your State Laws and Statutes: In many states, party hosts can be held liable if a guest is involved in an alcohol-related accident. Many courts have found hosts liable for damages their party guests cause as a result of consuming alcohol and then driving motor vehicles. Many states have also enacted statutes that can be interpreted as mandating non-commercial social host liability. So, if a guest or third party is injured in an accident that is related to alcohol consumption and the drinking can be linked to you, you could be held responsible for the payment of medical bills, vehicle repair costs, lost time from work and — in the worst case — claims for wrongful death resulting in huge monetary settlements. Consider an Umbrella Policy: While holiday partygoers and hosts alike should act responsibly and know their limits, consumers need to acknowledge that most risks cannot be entirely eliminated. But planning ahead and learning about what’s involved in hosting a reception is the best defense. Purchasing a personal “umbrella” liability policy — providing $1 million or more in additional coverage over the limit of a standard homeowners or renters policy — may be a prudent move for the frequent party host. Source: Big “I” and Trusted Choice®
NEWS
Independent Insurance Agents Impact on Vermont Economy Exceeds $61 Million
Agencies Employ 848 Vermonters and are Extremely Philanthropic WILLISTON VT (October 10, 2017) – The impact on Vermont’s economy by the state’s independent insurance agencies is estimated to be in excess of $61 million. That’s just one significant result of a study commissioned in May by the Vermont Insurance Agents Association (VIAA). Conducted by LONDONmiddlebury of Burlington, the study reveals that principal member agencies of the VIAA play an important role in the state’s economy as employers, taxpayers, consumers and charitable contributors. VIAA member agencies paid about 7.4 percent or an estimated $8.4 million of Vermont’s corporate tax revenue in 2016. Additionally, 54 percent of the agencies surveyed own buildings and real estate here, further contributing to the state’s tax revenue. Independent insurance agencies also contribute to the Green Mountain State’s quality of life by providing hundreds of solid career opportunities. Agencies pay an estimated $42,120,086 in payroll and $5,847,912 in employee benefits, helping to make Vermont one of the Top 10 best places to live and work with excellent health coverage and low unemployment. The agencies have deep roots in their communities, with the majority operating in the state for 46
more than 50 years. The median number of years agencies have been operating here is 60, with the longest being 189 years. Between internal investments of VIAA members, payroll expenses, taxes paid and charitable contributions, the total economic impact of independent insurance agencies in Vermont is estimated at more than $61 million, according to the study. “These phenomenal survey results show the significant economic contributions that Vermont’s independent agents make every day and how the communities where they live and work benefit,” said Mary Eversole, VIAA executive director. “Our members know their customers, provide good jobs with longevity and unlike direct (insurance) writers, buy locally.”
In addition to their economic impact, independent insurance agencies also write and service a significant segment of personal and commercial lines insurance written in Vermont. According to the most recent Independent Insurance Agents and Brokers of America Best Study, VIAA members hold more than a 51 percent share of the personal lines market in comparison to direct writers that hold a 36.5 percent market share. Independent agents dominate the commercial lines segment at a 79 percent market share versus 19.5 percent by direct writers. Vermont’s independent agency system works closely with domestic insurance carriers that contribute to the vibrant insurance industry. According to the Vermont Domestic Property and Casualty Companies Association (Union Mutual, Vermont Mutual, Granite Mutual, Vermont Accident, Northern Security, New England Guaranty, Green Mountain, and Co-operative Insurance companies), independents employ hundreds of people with an average salary of $89,623 and total compensation exceeding $32 million. Unlike direct writers, their premiums represent business done in the state and the money stays in the state. These companies also contribute significantly to Vermont’s tax base with local property taxes of $328,766 and premium taxes of over $2.6 million.
Since 1906, the VIAA has been committed to helping its members succeed in a competitive insurance industry, continuously striving to advocate for its members. Preserving the independent insurance agency industry is not only essential to VIAA members, but it is also instrumental to the long-term strength of the state’s economy, according to Eversole. VIAA members are also significant spenders when it comes to new equipment, office supplies, advertising, legal and accounting, repairs and maintenance and remodeling, according to Eversole.
About the VIAA
NEWS
The Vermont Insurance Agents Association is a statewide trade association representing nearly 100 independent insurance agencies in Vermont, with 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. Founded in 1906, VIAA’s mission is to be an advocate for independent insurance agents and to satisfy the professional needs of its members.
Independent agents are very involved in their local communities as volunteers along with religious, civic and cultural activities. The survey found that VIAA members are very philanthropic, contributing close to $2 million to charities.
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NEWS New Officers and Directors Elected for Vermont Insurance Agents Association
MONTPELIER, VT (October 11, 2017) – Erin Odell, a second-generation principal at the Odell Insurance Agency in Bradford, was elected president of the Vermont Insurance Agents Association (VIAA) during its recent 111th annual convention at the Hilton Burlington. For the past year, Odell was vice president of the association.
She also serves the insurance community as a member of the AIPSO Vermont Board of Governors and the Agency Council on Technology Committee and Task Forces. Odell is Vermont State Champion for the Independent Insurance Agents & Brokers of America (Big “I”) INVEST Program and past president of the Applied Systems Local Chapter. Odell’s agency focuses on providing personal, small business and farm insurance in the Upper Valley of Vermont and New Hampshire. Erin was an early adopter in technology and has implemented several initiatives to provide safe and secure service to clients. Previously, Odell worked in technology business development in North Carolina, corporate recruiting and marketing for the largest home health care company while managing a statewide sales force. She also worked at VISA in Washington, D.C., conducting data research. A resident of Bradford, Odell is involved with many community organizations such as MakeA-Wish, her church and Cottage Hospital; and she served three years as coordinator of Co-Op’s Wish Kid Golf Classic Tournament. She is vice president of the Cohase Chamber of Commerce and serves as head of the organization’s Economic Development Committee. In addition, Odell is an incorporator for Wells River Savings Bank and a member of the Bradford Merchants Association. As a recipient of lifesaving transplants, Odell is an advocate for organ donations, conducting presentations around the country for doctors and medical students as well as patients on the organ donor waiting list and their family members. Odell holds the designations of certified insurance counselor and certified insurance service representative from the National Alliance for Insurance Education and Research. She has a bachelor’s degree in business administration from the University of North Carolina at Greensboro and a master’s of business administration from Plymouth State College.
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NEWS Paul Plunkett of the Hickok & Board Insurance Group in Burlington was elected vice president of the VIAA, and Alan Kinney of Kinney Insurance in St. Albans was elected secretary-treasurer, succeeding Plunkett. Ron Bixby of the Ludlow Insurance Agency in Ludlow was re-elected national director. Michael Barrett, president of the Barrett Insurance Agency in St. Johnsbury, was elected to the board as a director. Barrett runs the family business with his wife, Jennifer, and they live in Waterford with their son, Ethan. They took over the agency as a second-generation husband-and-wife ownership team in 2015.
the station’s Shawn Knight. Barrett attended Lyndon State College in Lyndonville. He serves as the emcee for the Relay for Life of Caledonia County in tribute to his mother who passed due to ovarian cancer. He holds positions on the Waterford Development Review Board and Planning Commission; and serves as a trustee for the Eugene McDounough Scholarship Fund and as an advisory board member for the St. Johnsbury branch of Union Bank. The following agents also serve on the VIAA board of directors: Chip Ams of Finn & Stone Insurance in Manchester; and Daniel J. Rodliff of NFP Property & Casualty in South Burlington.
Before joining the agency, Michael had a successful radio broadcasting career at local stations, and now he can be heard weekly on Kix 105.5 WKXH on “Good Policies,” talking about insurance with 49
NEWS
Ludlow Insurance’s Bixby Receives Prestigious Brigham Alfred Award
Ronald G. Bixby of Ludlow received the prestigious Brigham Alfred Award for his outstanding contributions to the Vermont Insurance Agents Association (VIAA) and American Agency System during the association’s recent 111th annual convention at the Hilton Burlington. The award is in memory of the founding president and executive director of the VIAA and recognizes Bixby as the insurance person of the year in Vermont during 2017-2018.
Bixby is vice president of the Ludlow Insurance Agency. He is a past president of the VIAA board and more than a 30-year member of the association. He is the national director representing Vermont on the Independent Insurance Agents & Brokers of America (Big “I”) board of directors and also serves on the Trusted Choice Big “I” National Championship Committee. In addition, Bixby is a civic leader. His community activities include serving as deputy chief of the Ludlow Fire Department, director of the Ludlow Emergency Management Program and president of the Ludlow Economic Corporation. He also has coached the girls’ golf team at Black River High School for 15 years.
From L to R: Spencer Houldin, Past Chair Big “I”; Ron Bixby, VIAA National Director & Vice President Ludlow Insurance; Angela Ripley, IIAM National Director & President VW Brown
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Feature Article Distracted Driving Is More Deadly Than Data Shows: Special Report By Kyle Stock Jennifer Smith doesn’t like the term “accident.” It implies too much chance and too little culpability. A “crash” killed her mother in 2008, she insists, when her car was broadsided by another vehicle while on her way to pick up cat food. The other driver, a 20-year-old college student, ran a red light while talking on his mobile phone, a distraction that he immediately admitted and cited as the catalyst of the fatal event. “He was remorseful,” Smith, now 43, said. “He never changed his story.” Yet in federal records, the death isn’t attributed to distraction or mobile-phone use. It’s just another line item on the grim annual toll taken by the National Highway Transportation Safety Administration [NHTSA]—one of 37,262 that year. Three months later, Smith quit her job as a realtor and formed Stopdistractions.org, a nonprofit lobbying and support group. Her intent was to make the tragic loss of her mother an anomaly. To that end, she has been wildly unsuccessful. Nine years later, the problem of death-bydistraction has gotten much worse. Over the past two years, after decades of declining deaths on the road, U.S. traffic 52
fatalities surged by 14.4 percent. In 2016 alone, more than 100 people died every day in or near vehicles in America, the first time the country has passed that grim toll in a decade. Regulators, meanwhile, still have no good idea why crash-related deaths are spiking: People are driving longer distances but not tremendously so; total miles were up just 2.2 percent last year. Collectively, we seemed to be speeding and drinking a little more, but not much more than usual. Together, experts say these upticks don’t explain the surge in road deaths. Three Big Clues There are however three big clues, and they don’t rest along the highway. One, as you may have guessed, is the substantial increase in smartphone use by U.S. drivers as they drive. From 2014 to 2016, the share of Americans who owned an iPhone, Android phone, or something comparable rose from 75 percent to 81 percent. The second is the changing way in which Americans use their phones while they drive. These days, we’re pretty much done talking. Texting, Twitter, Facebook, and Instagram are the order of the day—all activities that require far more attention than simply holding a gadget to your ear or responding to a disembodied voice. By 2015, almost 70 percent of Americans were using their phones to share photos and follow news events via social media. In just two additional years, that figure has jumped to 80 percent. Finally, the increase in fatalities has been largely among bicyclists, motorcyclists, and pedestrians—all of whom are easier to miss from the driver’s seat than, say, a 4,000-pound SUV—especially if you’re glancing up from your phone rather than concentrating on the road. Last year, 5,987 pedestrians were killed by cars
in the U.S., almost 1,100 more than in 2014— that’s a 22 percent increase in just two years.
federal figure,” Jennifer Smith said. “We’re all addicted and the scale of this is unheard of.”
Safety regulators and law enforcement officials certainly understand the danger of taking—or making—a phone call while operating a piece of heavy machinery. They still, however, have no idea just how dangerous it is, because the data just isn’t easily obtained. And as mobile phone traffic continues to shift away from simple voice calls and texts to encrypted social networks, officials increasingly have less of a clue than ever before.
In a recent study, the nonprofit National Safety Council found only about half of fatal crashes tied to known mobile phone use were coded as such in NHTSA databases. In other words, according to the NSC, NHTSA’s figures for distraction-related death are too low.
Out of NHTSA’s full 2015 dataset, only 448 deaths were linked to mobile phones—that’s just 1.4 percent of all traffic fatalities. By that measure, drunk driving is 23 times more deadly than using a phone while driving, though studies have shown that both activities behind the wheel constitute (on average) a similar level of impairment. NHTSA has yet to fully crunch its 2016 data, but the agency said deaths tied to distraction actually declined last year. Deadlier Than Data Shows
Perhaps more telling are the findings of Zendrive Inc., a San Francisco startup that analyzes smartphone data to help insurers of commercial fleets assess safety risks. In a study of 3 million people, it found drivers using their mobile phone during 88 percent of trips. The true number is probably even higher because Zendrive didn’t capture instances when phones were mounted in a fixed position—so-called hands free technology, which is also considered dangerous. “It’s definitely frightening,” said Jonathan Matus, Zendrive’s co-founder and chief executive officer. “Pretty much everybody is using their phone while driving.”
There are many reasons to believe mobile phones are far deadlier than NHTSA spreadsheets suggest. Some of the biggest indicators are within the data itself. In more than half of 2015 fatal crashes, motorists were simply going straight down the road— no crossing traffic, rainstorms, or blowouts. Meanwhile, drivers involved in accidents increasingly mowed down things smaller than a Honda Accord, such as pedestrians or cyclists, many of whom occupy the side of the road or the sidewalk next to it. Fatalities increased inordinately among motorcyclists (up 6.2 percent in 2016) and pedestrians (up 9 percent).
There are, by now, myriad technological nannies that freeze smartphone activity. Most notably, a recent version of Apple’s iOS operating system can be configured to keep a phone asleep when its owner is driving and to send an automated text response to incoming messages. However, the “Do Not Disturb” function can be overridden by the person trying to get in touch. More critically, safety advocates note that such systems require an opt-in from the same users who have difficulty ignoring their phones in the first place.
“Honestly, I think the real number of fatalities tied to cell phones is at least three times the
In NHTSA’s defense, its tally of mobile phonerelated deaths is only as good as the data it gets
State Data Collection
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from individual states, each of which has its own methods for diagnosing and detailing the cause of a crash. Each state in turn relies on its various municipalities to compile crash metrics—and they often do things differently, too. The data from each state is compiled from accident reports filed by local police, most of which don’t prompt officers to consider mobile phone distraction as an underlying cause. Only 11 states use reporting forms that contain a field for police to tick-off mobile-phone distraction, while 27 have a space to note distraction in general as a potential cause of the accident. The fine print seems to make a difference. Tennessee, for example, has one of the most thorough accident report forms in the country, a document that asks police to evaluate both distractions in general and mobile phones in particular. Of the 448 accidents involving a phone in 2015 as reported by NHTSA, 84 occurred in Tennessee. That means, a state with 2 percent of the country’s population accounted for 19 percent of its phone-related driving deaths. As in polling, it really depends on how you ask the question. “Crash investigators are told to catch up with this technology phenomenon” Massachusetts State Police Sergeant Christopher Sanchez, a national expert on distracted driving, said many police departments still focus on drinking or drug use when investigating a crash. Also, figuring out whether a mobile phone was in use at the time of a crash is usually is getting trickier every day—proving that it precipitated the event can be even harder to do. Prosecutors have a similar bias. Currently, it’s illegal for drivers to use a handheld phone at all in 15 states, and texting while driving is specifically barred in 47 states. But getting 54
mobile phone records after a crash typically involves a court order and, and even then, the records may not show much activity beyond a call or text. If police provide solid evidence of speeding, drinking, drugs or some other violation, lawyers won’t bother pursuing distraction as a cause. “Crash investigators are told to catch up with this technology phenomenon—and it’s hard,” Sanchez said. “Every year new apps are developed that make it even more difficult.” Officers in Arizona and Montana, meanwhile, don’t have to bother, since they allow mobile phone use while you drive. And in Missouri, police only have to monitor drivers under age 21 who pick up their phone while driving. Like Smith, Emily Stein, 36, lost a parent to the streets. Ever since her father was killed by a distracted driver in 2011, she sometimes finds herself doing unscientific surveys. She’ll sit in front of her home in the suburbs west of Boston and watch how many passing drivers glance down at their phones. “I tell my local police department: ‘If you come here, sit on my stoop and hand out tickets. You’d generate a lot of revenue,’” she said. Since forming the Safe Roads Alliance five years ago, Stein talks to the police regularly. “A lot of them say it surpasses drunk driving at this point,” she said. Meanwhile, grieving families and safety advocates such as her are still struggling to pass legislation mandating handsfree-only use of phones while driving—Iowa and Texas just got around to banning texting behind the wheel. “The argument is always that it’s big government,” said Jonathan Adkins, executive
wrenching 36-minute documentary filmmaker Werner Herzog made on the subject. Laudably, the piece, From One Second to the Next, was bankrolled by the country’s major cellular companies. “It’s not just an accident,” Herzog said of the fatalities. “It’s a new form of culture coming at us, and it’s coming with great vehemence.”
director of the Governors Highway Safety Association. “The other issue is that … it’s hard to ban something that we all do, and we know that we want to do.” “We all know what’s going on, but we don’t have a breathalyzer for a phone” Safety advocates such as Smith say lawmakers, investigators and prosecutors won’t prioritize the danger of mobile phones in vehicles until they are seen as a sizable problem—as big as drinking, say. Yet, it won’t be measured as such until it’s a priority for lawmakers, investigators and prosecutors. “That’s the catch-22 here,” Smith said. “We all know what’s going on, but we don’t have a breathalyzer for a phone.” Perhaps the lawmakers who vote against curbing phone use in cars should watch the heart-
Adkins has watched smartphone culture overtake much of his work in 10 years at the helm of the GHSA, growing increasingly frustrated with the mounting death toll and what he calls clear underreporting of mobile phone fatalities. But he doesn’t think the numbers will come down until a backlash takes hold, one where it’s viewed as shameful to drive while using a phone. Herzog’s documentary, it appears, has had little effect in its four years on YouTube.com. At this point, Adkins is simply holding out for gains in autonomous driving technology. “I use the cocktail party example,” he explained. “If you’re at a cocktail party and say, ‘I was so hammered the other day, and I got behind the wheel,’ people will be outraged. But if you say the same thing about using a cell phone, it won’t be a big deal. It is still acceptable, and that’s the problem.” Copyright 2017 Bloomberg.
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Company News Co-operative Insurance Companies Donates $10,000 to American Red Cross in Support of Hurricane Relief Efforts MIDDLEBURY, VT, October 18, 2017– Co-operative Insurance Companies is giving back to those affected by recent hurricane devastation with a donation of $10,000 to American Red Cross. Co-operative Insurance is a huge supporter of American Red Cross. Along with this donation, the company hosted their second blood drive of 2017 on October 16th.
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Co-op takes pride in their efforts to provide financial security and protection to their own members and Marie Jewett, CEO of Co-operative Insurance Companies, is glad that her company can contribute to support the immense number of individuals affected by the hurricanes. “While most of our members were not directly affected by recent hurricane events, we recognize the devastation and rebuilding effort that is needed and the small part we can play through our donation to the American Red Cross.” “We are so grateful for the support of Co-operative Insurance Companies and their employees who have made donations in support of Red Cross relief efforts for these hurricanes,” said Maria Devlin, CEO for the American Red Cross in New Hampshire and Vermont. “Because of their generous support, the Red Cross continues to execute a massive disaster response mobilizing supplies and people to deliver help and hope to those in need.” Interested in donating to American Red Cross? Visit www.redcross.org.
Company News Co-operative Insurance Companies Wins ValChoice Award for “Number One Best Value” in Vermont and New Hampshire MIDDLEBURY, VT – October 4, 2017 – Co-operative Insurance Companies, with over 100 years of providing reliable insurance coverage, today announced that it has won the prestigious ValChoice® award for Number One Best Value in the states of New Hampshire and Vermont for the year 2016. To win this award, Co-op provided their customers with a unique combination of excellent customer service, claims handling and value in the auto insurance products they sold over a three-year period. They ranked ahead of 62 other insurance companies in Vermont, and 80 other insurance companies in New Hampshire! ValChoice awards recognize the best insurance companies, state-by-state. The company’s data analytics engine is the first to let consumers know which insurance companies offer the best claims handling, service and value. “Our goal is to provide financial security and protection to our members,” said Marie Jewett, President and CEO of Co-operative. “Our employees are committed to providing members the exceptional service and financial protection they deserve. I’m pleased that having been in business for more than a century, ValChoice recognizes our on-going dedication and commitment to customers”. “I founded ValChoice to bring transparency to the insurance industry and help consumers find the protection and value they deserve from the insurance they must buy,” said Dan
Karr, Founder and CEO of ValChoice. “It’s great to see Co-operative, a local Vermont company, achieving such excellence in service, claims handling and value. The level of excellence Co-operative has achieved is something in which both the company, and the communities they serve, can take great pride.” About Co-operative Insurance Organized in 1915 as Patrons Co-operative Fire Insurance Company, Co-op’s roots were in farming. Today, they offer protection for farms, homes, autos, businesses and more throughout Vermont and New Hampshire. Headquartered in Middlebury, Vermont, they are represented by 47 independent agencies throughout the two states. About ValChoice ValChoice® is the only company to provide consumers, agents and advisors with information on which home and auto insurance companies offer the best value: price, protection (claims handling) and service. The company’s analytics platform collects and analyzes millions of financial and complaint data points and delivers the results in an easy-to-use service that Forbes Magazine describes as “Carfax for insurance.” Using ValChoice, consumers are finally able to shop for insurance based on value rather than making decisions blindly based on price or advertising campaigns.
Photo: L-R: Marie Jewett, Co-op President/CEO, Brad Fortier, Co-op EVP Operations, Dan Karr, ValChoice Founder/CEO
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Company News Acuity Earns Agency Technology Award from IVANS
S&H Underwriters, Inc. is a family owned Acuity Insurance received the 2017 IVANS Leadership Award. Presented at IVANS Connect, the award honors Acuity for excellence in increasing connectivity and automating data exchange across the independent insurance agency channel. “Acuity’s real-time interface capabilities allow agents to connect to our policy, rating, claims, and billing systems directly from their desktops without needing to rekey any information,” said Marcus Knuth, Vice President - Enterprise Technology, Acuity. “Those capabilities also enhance Acuity’s ease-of-business capabilities, allowing us to receive more quotes and write more new business.” Acuity continues its industry leadership in carrier/ agency automation and in helping agents implement cost-saving download and real-time transactions. In the coming months, the company will expand its connectivity capabilities by implementing support for ACORD eDocs and messages download, enabling agents to download attachments directly into their agency management system. Acuity has also integrated its real-time quoting capabilities with IVANS Real-Time Rating, which will be leveraged in the Applied Systems platform to provide personal auto and home quotes. This implementation delivers time savings for agents, allowing them to obtain an accurate quotation in a matter of seconds. “Industry statistics continue to highlight the 58
importance of ease of doing business that agencies evaluate when choosing insurer partners,” said Thad Bauer, Vice President and General Manager, IVANS Insurance Solutions, a division of Applied Systems. “Investment in connectivity between insurers, MGAs, and agencies is the cornerstone of enabling ease of doing business for stakeholders across the insurance lifecycle to focus time on servicing customers.” Acuity, headquartered in Sheboygan, Wisconsin, is a property and casualty insurer that operates in 26 states, generates nearly $1.4 billion in revenue through 1,000 independent agencies, and manages over $4 billion in assets. Named one of the top 10 large companies to work for in America, Acuity employs over 1,200 people.
Company News Abramovitz Joins S&H Underwriters S&H Underwriters, a family operated MGA and surplus lines broker based in E. Montpelier, VT., has hired Steven Abramovitz as their new Business Development Manager.
Surplus Lines and Specialty Insurance throughout New England and the Mid Atlantic States. S&H Underwriters maintains a strong position in Personal Lines Insurance, in addition to Commercial and Surplus Lines representation with many binding authority contracts with commercial carriers. These allow S&H to give the most competitive quotes with “A” and “A+” rated carriers. S&H’s long term and profitable relationships with their companies has allowed for increased flexibility with a wide variety of available markets. S&H will be celebrating their 20th Anniversary in 2018.
Steve joins S&H from the premium finance industry, where he most recently served as Sales Executive within the Northeast Region of a large national finance company. Steve brings 17 years of experience finding and nurturing new business opportunities, creatively pursuing solutions for agents, and driving top-line growth within the property & casualty industry. In his role, Steve will be responsible for providing exceptional service to S&H’s wide-ranging retail agency base; identify new business opportunities to support S&H’s growth within New England and Mid Atlantic territories, and contribute to S&H’s online and external marketing programs. In addition, Steve will continue S&H’s consultative style of providing agents with information about their innovative Excess, Surplus Lines, and Specialty insurance products and solutions. About S&H Underwriters: Since 1998 S&H Underwriters, Inc. has been a family operated MGA and surplus lines broker based in Central Vermont. They service retail agents for Excess, 59
Company News Vermont Mutual Insurance Group Makes Donation to American Red Cross of NH & VT For Immediate Release Media Contact: Thomas Thamm 802.229.8975 tthamm@vermontmutual.com MONTPELIER, Vermont (October 23, 2017)— Vermont Mutual Insurance Group®, long recognized as one of the top Property and Casualty insurers in the U.S., recently presented the American Red Cross with a donation of $25,000. The grant is part of the Charitable Giving Fund that was established by the Group in 2014. The donation will be dedicated to the disaster recovery relief for Hurricane Harvey & Hurricane Irma. Vermont Mutual President and CEO, Dan Bridge, stated “We are grateful that Vermont Mutual is in a position to be able to provide financial assistance to the American Red Cross of NH and VT”. Bridge added “We are in the business of providing security and peace of mind for our policyholders; because of that we are acutely aware of the needs that arise when disaster strikes. Our thoughts are with the people affected by the recent hurricanes in Florida, Texas and Puerto Rico.” Maria Devlin, CEO of the Red Cross for NH & VT stated “The Red Cross is humbled and deeply appreciative of the generosity of Vermont Mutual and its employees.” Ms. Devlin continued “During times like this, the Red Cross depends on the generosity of our donors to ensure our humanitarian mission reaches all those affected by these and other disasters.” Vermont Mutual’s Charitable Giving Fund provides financial support to organizations that help to build, maintain and enrich healthy lives and strong, vibrant communities. The Fund’s primary 60
focus is to contribute to non-profit organizations that serve Vermont Mutual communities. The Charitable Giving Fund, launched In 2014, has provided grants to over 75 charities in the communities they serve. _______________________________ 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 $435,000,000. The group is rated “A+ Superior” by A. M. Best and a Ward’s Top 50 performing property/casualty for the past nine consecutive years.
HELP WANTED
Recognized in 2016 and 2017 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: • Commercial Lines Department Manager, Brattleboro • Commercial Lines Sales Assistant, Brattleboro • Commercial Lines Sales Producer, Rutland
• Commercial Lines Account Manager, Middlebury
• Personal Lines Account Manager, Ludlow
• Employee Benefits Account Manager, Rutland For job description and requirement please visit https://therichardsgrp.com/about/careers/ Submit Cover Letter and Resume to jobs@therichardsgrp.com
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Experienced Commercial Lines Customer Service Representative POSITION SUMMARY: Manage small, medium, and large commercial insurance accounts in mid-sized independent insurance agency. Position consists of primary day-today point of contact with customers and liaison between the client, carrier and sales producer. BRIEF JOB DESCRIPTION: • Professional and prompt customer service including phone, email, and walk-in inquiries on new and existing client accounts. • Coordinate policy changes, receive and process new claims, and assist as needed on existing claims. • Audit review and processing including audit dispute resolutions. • Handling and processing of surety bond requests including bid, payment, and performance bonds. • Keep precise records of customer interactions and transactions, recording details of inquiries, concerns, and comments, as well as actions taken in the agency management system (AMS 360). • Receive direction from carriers and sales producers to assist in project and/ or proposal delivery, policy changes, requests for additional information. • Market all lines of coverage for new and renewal commercial risks including 64
additional lines of coverage. This includes the creation of submissions, preparation of proposals, binding of coverage with carriers, billing and review of policies. • Accompany producers to client meetings both in the agency office and at the client’s offsite location. • Perform other duties as needed. MINIMUM QUALIFICATIONS: • Highly organized with excellent verbal and written communications skills. • Sharp attention to detail. • Demonstrated flexibility and adaptability to changing priorities, deadlines, and technology. • Thrives in both a team and independent working environment. • Ability to respectfully resolve problems with clients and insurance carriers. • Proven track record of organizing and prioritizing an ever changing work load. • Minimum three years commercial lines property and casualty experience. • Insurance property and casualty license required. • College degree preferred. Please forward resume and cover letter to: David Holton, CIC, The Essex Agency Inc, PO Box 239, Essex Jct VT 05453 davidholton@essexagency.com
HELP WANTED
Immediate Opening for Personal Lines Customer Service Representative Leverage Your Strong Personal Lines Experience to Join a Company of Choice & Work with a Large Number of Carriers Spotlight Your Skill as You Deliver Exemplary Service to Existing Clients BRIEF JOB DESCRIPTION: This role offers you the opportunity to serve as a trusted advisor to clients and grow your insurance career with an employer of choice. As an Account Manager, you will work with a wide variety of clients as you review their accounts and help them understand their personal insurance coverages. Consider a few of the advantages of joining our team. • You will enjoy the autonomy to manage your desk and excel along with support when you need it. •
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or equivalent office experience with the ability to learn. •
An active personal insurance license preferred or working towards licensure.
• The ability to work with and adapt to a wide range of carriers. • Experience in an automated agency environment is highly preferred. MINIMUM QUALIFICATIONS: • Highly organized with excellent verbal and written communications skills. • Sharp attention to detail. • Demonstrated flexibility and adaptability to changing priorities, deadlines, and technology. • Thrives in both a team and independent working environment. • Ability to respectfully resolve problems with clients and insurance carriers. • Proven track record of organizing and prioritizing an ever changing work load. Email resume for consideration to: ryan@taylormooreinsurance.com
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TELEPHONE: 802-766-2294
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New England Excess Exchange, LTD
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Johnson & Johnson
Patriot Insurance Company