GMA October 2016 by VIAA

GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION

October 2016

Green Mountain Agent is a publication of

In This Issue: 600 Blair Park Road Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org VIAA Officers President Peter Richards Vice President Erin Odell Secretary/Treasurer Paul Plunkett IIABA & PIA State National Director Ron Bixby

Directors Chip Ams Daniel Rodcliff

October 2016 4 Message from the President 6 Commisioner’s Report 8 VIAA Elects New Officers 9 Young Agents News Brief 13 Help Wanted

Features 21 Big “I” Virtual University 28 NFIP Bulletin 35 Sales Success: Your Network is Your Net Worth 39 E&O: The Effect of an Insured’s Bankruptcy on Coverage

News

Alan Kinney

41 ACUITY

Staff

43 Vermont Mutual

Executive Director Mary Eversole meversole@viaa.org

GMA Publication Design Thorin Markison thorinmarkison.com

44 Hickock & Boardman 45 Concord Group 46 Richards Group 47 Text U L8R 48 Dept Financial Regulation It’s been a busy month at VIAA. We will share the highlights from the 110th Annual Convention next month. If you’d like to see the photos from the event, unedited and unsorted, you can view them HERE

Message from the President First 30 Days I think most presidents are measured by their first 100 days in office. I have been president of the VIAA for a little over 30 days and a lot has happened during this short time! I hope you all enjoyed convention as much as I did. It was fun to have New Orleans in Vermont for a night. I am honored and excited to be VIAA President this year. I clearly remember my first year on the board eight years ago, and some of the faces around the table at that time. I’ve made a lot of great friends in the industry over these years and much of it started with this organization. We’ve laid out two major goals for this year. First and foremost is to pass legislation, in collaboration with like-minded organizations, to clarify the definition of an independent contractor in Vermont. It affects all of our agencies and a good majority of our clients. In early December we will host meetings throughout the state on the issue with legislators, our clients, local chambers and other associations to provide the agents prospective on this vital industry topic. Your Board of Directors also voted to put some skin in the game for this year’s state elections. It’s a first for our organization and we believe a wise investment. We have provided campaign contributions on a bipartisan basis to select candidates. They include Lt. Governor Phil Scott, Senator Peg Flory, Senator Kevin Mullin, Senator Brian Collamore, Senator Rich Westman, Senator Ann Cummings, Representative Heidi Scheuremann, Representative Michael Marcotte, Representative Fred Baser, Mr. Brian Keefe, Representative Bob Bancroft, Representative Laura Sibilia, Representative Paul Dame, Mr. Gary Nolan and Representative Diane Lanpher. Last but not least, we also supported Representative Corey Parent, who I am proud to say is a member of VIAA. It 4

will be interesting to see the outcome of these key races that are important to our industry. Five years ago, we issued a study that showed Vermont’s economy is positively impacted by the state’s independent insurance agencies. It revealed that principal agencies of VIAA play a significant role in the Green Mountain State as employers, taxpayers, consumer spenders and charitable contributors. I am sure that holds true today in the market place and I am waiting with great anticipation to see the results. Principals will be contacted directly to participate in the study in the late spring and results will be issued at next year’s annual business meeting in September. I would also like to mention the Vermont Young Agents Committee (YAC). It has been and will continue to be an important part of our mission and support. A group of Vermont Young Agents traveled to Chicago last month and attended the Big I’s Young Agent Leadership Institute with their peers from across the nation. They were even in the running for national awards!

I am proud of how this committee has grown since its inception two years ago and always look forward to what they will do next. Perpetuation and employee recruitment is probably the most challenging part of our agency lives. The YACs are doing amazing things around getting young people involved in a great industry, in which they can have a meaningful long term career. It’s imperative that we, as industry leaders, support this effort. As I said during the Annual Business Meeting in September, I need to recognize our company partners. I am trafficking in understatement when I say we could not do what we do without your support. The increase in your support of the association has been amazing and it’s allowed us to expand our offerings, bring continuing education in-house in our new training center, and expand attendance

to VIAA sponsored events, to name a few. Your support is amazing and it speaks to the close-knit nature of the agent-carrier relationship in Vermont. We thank you. I’d also like to thank VIAA members for their continued membership in and support of the association. We are only as strong as the collective voice of our membership, and it’s a strong voice. The fact that we live in a small state where we all know and respect one another only adds to that strength. Here’s to a great year!

Pete Richards, VIAA President

TrustedChoice.com

Vermont Insurance Agents Association SM

Department of Financial Regulation

Commissioner’s Report Michael Pieciak

It has been a busy and very shortly thereafter, the individual rewarding experience since I was who sold the product was appointed commissioner in July. barred from the industry. I want to first thank the VIAA Although a good outcome was membership and your excellent achieved, it was a traumatic executive director Mary experience for Walter and Eversole for the strong longunfortunately the bulk of these standing relationship with the cases never reach the Department. Department, a relationship that Only 1 in 44 cases of elder will only be enhanced under the financial fraud are ever reported to leadership of your new President regulatory agencies, even though Pete Richards – a great estimates indicate 1 in 5 individuals choice. I believe the industry over 65 has been victimized is best served when we all equaling an annualized loss of work collaboratively to ensure Michael Pieciak approximately $2.9 billion. This financial services are delivered is why elder financial fraud has appropriately to our fellow Vermonters. been dubbed “the crime of the 21st Century.” In that vein, I want to use this forum to For Vermont these figures are particularly discuss the serious and growing issue of elder alarming. We have the second oldest median age financial fraud and the opportunities for the in the country with 21.1 percent of Vermonters Department and the VIAA to work together over the age of 60, which is also the most rapidly to address it. A recent experience illustrates growing age group in Vermont. Accordingly, the problem and what can be done when the Department is undertaking multi-faceted the Department’s outstanding consumer efforts to address elder financial fraud, services team is on the case – the name and including: (1) strengthening Vermont’s laws to some identifying details have been changed better protect vulnerable Vermonter, including to protect the privacy of the individual. tougher penalties for those who perpetrate The call came into the Department early one morning; the man on the line was in tears. Walter, an 80-year-old Korean War veteran living on a fixed income in his daughter’s basement, had been blindsided by a multithousand-dollar federal tax bill he couldn’t even begin to pay. The tax bill stemmed from a recent withdrawal from a tax-deferred retirement account to purchase an annuity – all done at the recommendation of a recently befriended individual who sold him the product. A cursory review by the Department indicated the sale was inappropriate for a host of reasons. The Department took swift action. Within three days the annuity transaction was reversed, the tax liability rescinded, and 6

financial crimes against this population; (2) implementing an elder fraud response team at the Department to quickly and effectively respond to reported cases; (3) providing training to financial professionals to help identify possible red flags for elder financial fraud; and (4) increasing educational outreach across the state to arm Vermonters with the financial literacy necessary to avoid becoming a victim. The Department, however, needs your help to effectively combat this issue. If you know someone you suspect may be a victim of elder financial fraud please e-mail the Department at DFR.SeniorSafe@vermont.gov or call 802828-3301. I look forward to working together to root out elder financial fraud in Vermont

Vermont Insurance Agents Association Elects New Officers and directors Peter T. Richards, vice president and principal of The Richards Group, Brattleboro, Vt., was elected president of the Vermont Insurance Agents Association (VIAA) today. Richard’s election as VIAA’s president follows an Peter Richards active involvement with the association that includes serving as vice president, as a member of the Executive Committee, and VIAA board member and chair of the 110th Annual Convention. Within the Richards Group, Peter heads up the commercial property and casualty insurance operations of the company, as well as the accident and health operations, focused on cultural exchange/travel organizations. Prior to joining The Richards Group, Peter was a Vice President of Investment Banking at Southcoast Capital, in New Orleans, LA, involved in a variety of investment banking activities including equity raises (both public and private), mergers and acquisition advisory and business valuations, specifically in the gaming and oil and gas industries. Prior to Southcoast, Peter was a Venture Capital Officer at Hibernia Capital Corporation, a $100 million venture capital fund focusing on industrial technology, capital restructuring for small to middle market sized companies and private placement debt service. Peter received his undergraduate degree from Williams College, and his MBA from The AB Freeman School at Tulane University. He 8

has served in a variety of Board capacities at numerous local organizations. Peter and his wife Liz live in Brattleboro with their four children, Lillie, Sophie, Mark and Henry. Other officers include: Erin Odell of Odell Insurance Agency in Bradford as vice president; Paul Plunkett of Hickok and Board Insurance Group in Burlington as secretary/treasurer , and Ron Bixby from the Ludlow Insurance Agency in Ludlow as national director . Daniel J. Rodliff, vice president of NFP P&C, South Burlington, VT, was elected to the board as a director. Rodliff started his career at Liberty Mutual Insurance and joined NFP P&C (formerly Poulos Insurance) in Daniel Rodcliff 2007. Dan has won numerous awards during his insurance career. He currently manages three offices in Northern Vermont, develops marketing strategies for the firm and assists with NFP integration throughout New England. Rodliff holds the LUTCF, CIC, and CPIA designations. He is a graduate of St. Michael’s college. Daniel resides in Shelburne with his wife and two sons. The following agents also serve on the VIAA Board of Directors: Chip Ams of Finn & Stone Insurance in Manchester & Alan Kinney of Kinney Insurance Agency in St. Albans.

VERMONT

2016 YOUNG AGENTS LEADERSHIP INSTITUTE CHICAGO, ILLINOIS | SEPT 9 -10

From L to R: Brady Hecht, Patriot Insurance; Caitlin Sprague, The Richards Group; Brittani Villandry, Main Street America; Kelly Schavone, Jamieson Insurance; Bob Rusbuldt, President & CEO, Big “I”; Kerri O’Connor, Noyle Johnson Group; Jessica Fleury, The Richards Group

THANK YOU FOR SENDING US TO CHICAGO!

COULD YOUR CUSTOMERS USE A

PERSONAL UMBRELLA POLICY?

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

CONSIDER THIS: Existing homeowners and auto insurance may not be enough to cover a lawsuit or judgment. A personal umbrella policy will substantially increase your customer’s overall liability coverage beyond the basic coverage provided under homeowners and auto insurance policies. A SMART WAY TO PROTECT YOU AND YOUR FAMILY. You’ll find an RLI personal umbrella policy is a good idea. • $1 million in additional insurance • Backed by a financially secure, A+ rated company • Customers keep their current homeowner/auto insurer • Excess UM/UIM available • New drivers accepted — no age limit on drivers • Up to one DWI/DUI per household allowed • Auto limits as low as 100/300/50 in certain cases

Rated A+ by A.M.Best

CALL TODAY

FOR AN IMMEDIATE QUOTE!

The RLI PERSONAL UMBRELLA POLICY is available through selected agents and program administrators in all 50 states.

CONTACT:

April Shrewsbury 800.221.7917 x5360 April.Shrewsbury@iiaba.net

RLICORP.COM

VERMONT

YOUNG AGENTS ANNUAL MEETING THURSDAY| NOVEMBER 17, 2016 11 am – 5 pm

5 pm

• Michael Pieciak Vt Department of Financial Regulation

• Social Hour

• John Hollar Vermont Legislative Briefing • Sale Seminar: Phil Schuman, The Schuman Group

This meeting is exclusively for VIAA YAC Committee Members, YAC At-Large Members and VIAA Company Partners

• YAC Business Meeting

Sponsored by

Vermont Young Agents Committee Presents Check to Vermont Make-A-Wish

Hilton Burlington, 60 Battery Street, Burlington

Trusted Choice & Vermont Insurance Agents Association donated $7,500 to the Make-A-Wish Foundation® of Vermont. Vermont Insurance Agents Association (VIAA) presented the check during the Vermont Lake Monsters baseball game against the Lowell Spinners on Wednesday, August 24. Kody Lyon, of the Noyle Johnson Group, threw out the first pitch. Kerri O’Connor, AAI, Noyle Johnson Group, Vermont Young Agents Committee Chair, and Dan Rodliff, NFP P&C, Vermont Young Agents Committee Outreach Chair presented the check to Jamie Hathaway, Executive Director of the Vermont Make-A-Wish.

Jamie Hathaway, CEO, Make-A-Wish, Vermont; Kerri O’Connor, Noyle Johnson, Group; Dan Rodliff, NFP P&C

The donation will go towards helping grant the wishes of children with lifethreatening illnesses. Trusted Choice is the funder in collaboration with VIAA.

Consider us your trusted, improve-your-online-presenceand-retain-customers sidekick.

With so many competitors out there, you need every edge possible. Safeco gets that. That’s why we’re 100% dedicated to your success. Our goal is to give you everything you need to sell more insurance premium. The rest is up to you. 4 PROGRAMS DESIGNED TO HELP YOU: Customers for Life Workshop Producer Development Program

Contact your Territory Manager or Agency Specialist to find out more, or visit Safeco.com to learn how you can become a Safeco agent.

Bricks and Clicks Online Marketing Resource Center CSR Development Program

HELP WANTED

COMMERCIAL LINES ACCOUNT MANAGER Agency dedicated to superior customer service with employees committed to adding value to every client activity. We offer our clients complete insurance services.

• Travel as needed to accommodate and attend scheduled client visits, company meetings, and continuing education.

We are currently seeking an experienced Insurance Account Manager for our Commercial Lines Division. The position consists of primary day-to-day point of contact with customers and acting as a liaison between the client, the carrier and the sales producer.

• Highly organized with excellent verbal and written communication skills.

Essential Duties & Responsibilities: • Professional and prompt customer service including phone, email and walk-in inquiries on new and existing client accounts, including client questions on topics such as coverage, reporting of claims, audits, etc. • Coordinate policy changes, receive and process new claims, and assist as needed on existing claims. • Review prospective new clients’ insurance policies. Develop accurate information for account submissions and analysis. • Prepare applications for quotation. Obtain updated renewal information and have to marketing 120 days out.

Education/Experience/ Licenses/Certifications

• Computer literacy required. • Sharp attention to detail. • Flexibility and adaptability to changing priorities, deadlines and technology. • Thrives in both team and independent working environments. • High School diploma required; college degree preferred. • Three to five years in company or agency underwriting a Plus. • Agency experience preferred • Property/Casualty License required Send your resume and cover letter to Robin Bilodeau, CPIW, CISR, Operations Manager at NFP P & C Services, Inc. Email Robin at robin.bilodeau@nfp.com

• Review and quote renewal policies. Policy review – quality control for policies, new or renewal. • Renewals-retains and services existing accounts, maintains direct communications with each client. • Ensure proper account documentation • Monitor financial status of accounts, collect premiums, and adhere to agency collection policies.

HELP WANTED

Berrian Insurance Group COMMERCIAL LINES ACCOUNT MANAGER/CSR Berrian Insurance Group works very closely with commercial clients in several distinct niches. We provide the highest level of service and are actively seeking a Commercial Insurance Account Manager/CSR that is capable of delivering at this standard. The position consists of working daily as the point of contact between our commercial clients and our appointed markets. Responsibilities Include: • Customer service via phone & email • Communication between clients & carrier representatives • Prepare new and renewal applications for submission • Coordinating policy changes • Review quotations and insurance policies for accuracy • Claims reporting

Education/Experience: • Prior agency experience preferred (commercial lines) • Must be computer literate • Must be able to focus on detail with the desire to make a difference through helping others • Excellent verbal and written communication skills • Must be willing & able to learn technology (AMS 360) • Property/Casualty Insurance License will be required; if currently not held, will need to be • obtained • Continuing Education units as mandated by the state regulatory guidelines going forward Send your cover letter and resume to Kim J. Berrian PO Box 647, Waitsfield, VT 05673 OR via email at kberrian@bigvermont.com

Grenade Golf Driver, 3 wood, 3+ wood, 5 wood, or a 4 hybrid! 802-560-3192 VIAA20

Education Days Northern & Southern Vermont

Earn 6

credits in one day

Jay Peak Tuesday, Nov 1 Jay Peak Resort 830 Jay Peak Rd/ Jay VT

Manchester Wednesday, Oct 19 The Inns at Equinox 3567 Main St/ Manchester VT

(Valhalla Executive Boardroom)

Presented By

Both Days

Schedule

Cyber Coverage-

Why the Need & What’s that Buzzing? It’s a Drone | 6 CEUS Attendance is FREE Instructor: Bruce Thomas

HELP WANTED

New England Excess Exchange, Ltd. is seeking Commercial and Personal Lines Producers to join our growing team! NEEE, Ltd. is a family owned and operated E&S brokerage firm, established in 1981, based in Barre, Vermont with 48 employees. The ideal applicant for Commercial or Personal Lines would have a bachelors degree or commiserate insurance experience. That said, we’ve found the most successful underwriters are detail oriented and driven with strong organizational skills while having an analytical mind and welcoming personality. This individual will need to obtain their state Property and Casualty license and maintain the Continuing Education units as directed by state regulatory guidelines, with our aide; but, we will train them in the role and, at least initially, have the renewals and a submission flow from which they can develop professional relationships and the experience needed to grow a book of business. If they can efficiently multitask, while delivering a high degree of accuracy, they will enjoy a very successful and lucrative career here at NEEE, Ltd. These are commission structured positions with a generous draw to allow for livable bi‐weekly pay between quarterly commission opportunities. Primary Expectations:      

Provide superior customer service to our agents and partner companies Develop relationships with agents and markets Accountable for underwriting decisions Manage a large volume of calls and emails with timely responses Ability to work independently and within a team Excellent oral and written communication

Applicants can submit their resume to Renee Grzankowski, rgrzankowski@neee.com.

DID YOU KNOW AGENCY E&O UMBRELLA IS NOW AVAILABLE THROUGH BIG “I” PROFESSIONAL LIABILITY A commercial umbrella underwritten by Swiss Re (rated A+ by A.M. Best) is now available exclusively to Big “I” members. Designed in collaboration with the IIABA to

PROTECT

your business with an E&O umbrella endorsed by IIABA

meet the needs of independent insurance agents Broad coverage over primary casualty lines,

including E&O Limits available up to $10 million over

CONSOLIDATE coverages with one carrier and avoid potential gaps

underlying primary E&O policy Will be available in 50 states and the

District of Columbia May to be written over a variety of E&O

carriers Contact your state association to learn more or to receive a quote today:

www.independentagent.com/EOContact

SECURE your agency’s future with the largest writer of agents professional liability in the country

SUPPORT your state association while protecting your business

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas. Westport is licensed in all 50 states and the District of Columbia. Insurance products mentioned may not be available in all states. Please contact your state administrator or Westport for availability in your state

THANK YOU TO OUR PRIZE SPONSORS Casino Grand Prize

Casino Raffle Prize

AmTrust has a bouquet of coverage for small businesses

Complementary workers’ comp and BOP coverage By offering a competitive businessowners policy (BOP) as an individual product or as an accompaniment to our workers’ compensation insurance or commercial auto products, AmTrust has a selection that serves small businesses well. Better yet, we offer a 10% discount on BOP for our existing workers’ compensation policyholders. An umbrella policy is also available, with limits ranging from $1 million to $10 million to fit over our BOP and commercial auto products.

Meet Stu from AmTrust

Stu has some “stupendous” ways to save your policyholders money! Smartphone users:

To quickly request a quote or visit our website, please scan this QR code with your QR code reader app.

A.M. Best rating of “A” (Excellent) FSC X

AmTrust North America An AmTrust Financial Company

Your Success is Our Policy.®

For more information about how you can write business with AmTrust, please call 877.528.7878 or visit www.amtrustnorthamerica.com.

Big “I” Virtual University

When Should You Make Policy Changes Requested by Third Parties? Bill Wilson An agency provides a policy for an insured who leases several vehicles. The insured puts the agency in touch with the leasing company to get the vehicle information necessary to place the coverage.

face as an agency? What could we have done differently to prevent this?

A: “As we understand the situation, your agency has been making changes to the insured›s auto policy based on instructions from the auto leasing company—not the insured themselves.

The leasing company then sends written requests explaining that the insured is swapping vehicles and needs to change their current policy. The agent complies with the request to remove one vehicle from the policy and add another, then sends proof of coverage to the leasing company so the leasing company can supply it to the insured for placement in the vehicle. The insurance company then sends the changes directly to the insured.

Read the policy for specification of who is authorized to make changes. In most cases, only the named insured—or, when it’s a commercial lines policy, the first named insured—has the authority to make changes on a policy.

About two months later, the agent receives a call from the carrier. An accident has occurred, but the vehicle involved is not on the policy. In fact, the vehicle in question is the one the agent removed per the leasing company’s request. Now, the leasing company argues that the swap should have only lasted 20 days while one of the vehicles was undergoing repairs.

Since the insured now seems to have an uncovered claim, you should probably notify your E&O carrier.”

Q: No one informed us this was a temporary swap. What issues do we

Accepting changes from third parties can get your agency into errors & omissions trouble. Check out this article from the Big ‘I’ Virtual University, ‘Policy Changes Requested by Third Parties,’ for more information.

Bill Wilson is director of the Big “I” Virtual University. This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, email logon@iiaba.net to request login information.

Halloween Safety Tips Everything you need to know to keep your kids safe on Halloween.

Everyone loves a good scare on Halloween, but not when it comes to child safety. There are several easy and effective behaviors that parents can share with kids to help reduce their risk of injury.

Walk Safely

Trick or Treat With an Adult

• Cross the street at corners, using traffic signals and crosswalks.

• Children under the age of 12 should not be alone at night without adult supervision. If kids are mature enough to be out without supervision, remind them to stick to familiar areas that are well lit and trickor-treat in groups.

• Look left, right and left again when crossing and keep looking as you cross. • Put electronic devices down and keep heads up and walk, don’t run, across the street. • Teach children to make eye contact with drivers before crossing in front of them. • Always walk on sidewalks or paths. If there are no sidewalks, walk facing traffic as far to the left as possible. Children should walk on direct routes with the fewest street crossings. • Watch for cars that are turning or backing up. Teach children to never dart out into the street or cross between parked cars.

Keep Costumes Both Creative and Safe • Decorate costumes and bags with reflective tape or stickers and, if possible, choose light colors. • Choose face paint and makeup whenever possible instead of masks, which can obstruct a child’s vision. • Have kids carry glow sticks or flashlights to help them see and be seen by drivers.

• When selecting a costume, make sure it is the right size to prevent trips and falls.

Drive Extra Safely on Halloween • Slow down and be especially alert in residential neighborhoods. Children are excited on Halloween and may move in unpredictable ways. • Take extra time to look for kids at intersections, on medians and on curbs.

On average, children are more than twice as likely to be hit by a car and killed on Halloween than on any other day of the year.

• Enter and exit driveways and alleys slowly and carefully. • Eliminate any distractions inside your car so you can concentrate on the road and your surroundings. • Drive slowly, anticipate heavy pedestrian traffic and turn your headlights on earlier in the day to spot children from greater distances. • Popular trick-or-treating hours are 5:30 p.m. to 9:30 p.m. so be especially alert for kids during those hours.

For more information visit safekids.org.

Big “I” Virtual University Coverage vs. Eligibility: Is a PAP Enough for an Independent Contractor? Bill Wilson An insured who has a non-ISO personal auto policy works as an independent contractor with no employees. As an electrician, he uses his own pickup truck—the one on the PAP—to visit jobsites. He does not haul or deliver products, but on occasion transports tools or wiring to perform service work for residences or businesses, such as installing a light switch or repairing a fan. Although the PAP includes coverage for business use, the underwriter advises the agent that the insured needs to obtain a commercial auto policy, saying he isn’t covered in the event of an accident if he happens to have equipment in the truck. Q: Does this client require a commercial auto policy for proper coverage? A: “Coverage and eligibility are two different things. Based on the underwriting guidelines, your insured is not eligible for a PAP. But that doesn›t mean he doesn›t have coverage if he is currently insured on a PAP. The underwriter would have to incorporate the eligibility and underwriting rules into the policy to preclude coverage. For example: Before a manual can be looked to in determining the rights and liabilities of the parties, it must first have been referred to in the body of the policies by plain and clear language and properly made a part thereof. — Virginia Sur. Co. v. Knoxville Transit Lines, 135 F. Supp. 606 (E.D. Tenn. 1955) Similarly, valid grounds are necessary if the insurer wants to cancel mid-term. Ask the underwriter to cite the exclusions that remove coverage. Otherwise, the insurer is likely stuck with the account until renewal time. Also check with the claims department to confirm coverage. Obviously, the carrier doesn’t want this exposure, but it’s on it until its policy language 26

matches its underwriting appetite. Your best bet is to move the coverage eventually. Until then, it appears that coverage is in place.” Bill Wilson is director of the Big “I” Virtual University. This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, email logon@ iiaba.net to request login information.

AT MMG INSURANCE, WE PROVIDE COVERAGE FOR ALL THE BIG AND LITTLE THINGS THAT COMPRISE YOUR PIECE OF THE WORLD.

The world may be full of uncertainties. But when you choose MMG Insurance, thereâ€™s one thing you can be sure of: Every minute of every day, you can count on MMG Insurance to protect your piece of the world, through good times and bad, just as we have for all of our customers since 1897.

1-800-343-0533 www.mmgins.com

NFIP Bulletin What Changes Can You Expect Next Year? Jen Mcphillips This week, FEMA released a bulletin outlining NFIP changes that apply to new business and renewals—and may impact you and your flood insurance policyholders when they take effect on or after April 1, 2017. The bulletin outlines changes including updated premium rates which comply with the premium rate caps established by BiggertWaters and the Homeowners Flood Insurance Affordability Act of 2014—laws intended to help streamline the program and set the NFIP on a path toward financial solvency. The changes also include updated premium multiplier tables for polices rated under the Newly Mapped procedure, along with clarifications for policy rating and loss adjustment for Pre-Flood Insurance Rate Map (Pre-FIRM) substantially improved properties. In its summary of changes, FEMA says the maximum individual rate increase for any individual policy is 18%—with a few exceptions. Premium rates for the four categories of PreFIRM subsidized policies must increase by 25% annually until they reach full-risk rates. Average annual premium rate increases for all other risk classes, however, are limited to 15%. The bulletin also notes, “when premium rate increases are evaluated for compliance with these caps, the probation surcharge, the Federal Policy Fee and the congressionally mandated

HFIAA surcharges are not considered premium and, therefore, are not subject to premium rate cap limitations. As a result, the increase in the total amount charged to the policyholder may exceed 18% in some cases.” FEMA also issued a Newly Mapped multiplier table for calculating the premium for properties newly mapped into the Special Flood Hazard Area (SFHA) through December 2018. Note: Premiums for properties newly mapped into the SFHA will receive a Preferred Risk Policy premium for the first year after being newly mapped into the SFHA, and then their premiums will gradually increase using the multiplier table. Finally, FEMA’s guidance includes clarifications for the rating of Pre-FIRM substantially improved buildings. As Congress continues to work on program reauthorization, the Big “I” continues advocating for a long-term extension of the flood program to ensure market stability. The association also strongly believes that flood insurance should be available and affordable to anyone who wants to purchase coverage and will continue to highlight the critical role agents play in selling and servicing NFIP flood policies. Jen McPhillips is Big “I” assistant vice president of federal government affairs.

Are you trying to reach Vermont’s Independent agent’s? Do you have a great ad that represents your company and have nowhere to place it? Are you looking to hire? Place your ad in VIAA’s monthly publication and have the opportunity to advertise and market to Vermont’s Independent Agents.

Questions on how to place an ad? Contact Mary Eversole at meversole@viaa.org for placement options and advertising rates. Vermont Insurance Agents Association ATTN: Advertising/ 600 Blair Park Road/Suite 100/Williston, VT 05495

THE MEETING SPACE YOUâ€™VE BEEN LOOKING FOR

Sharpen Your Competitive Edge…

Are you struggling to keep up with ISO changes? Do you really know and understand Commercial Property coverages, Causes of Loss Forms, Endorsements, Inland Marine coverages, Time Element coverages, and Businessowners policies? This knowledge is essential when the competitive heat is turned up high. You simply cannot afford to lack confidence or make a mistake!

Lake Morey Resort 1 Clubhouse Road Fairlee, VT 05045 Phone: 802-333-4311 Room Rate: $95.00

At the Commercial Property Institute, you’ll learn ..  Commercial Property Coverages and Endorsements  Causes of Loss Forms and Endorsements  Time Element Coverages  Commercial Inland Marine Coverages  Businessowners Policies  Commercial Property Case Study Risk Management This CIC program can be taken just for CE credits… no testing required for CE credits … CE fee INCLUDED in tuition price! Please go to massagent.com®

For Agenda / Hotel Information / Register & Pay online



TUITION is …$452.00/person … INCLUDES CE Fee!

All programs are subject to a cancellation/transfer fee. Please call 800/222-2699 for details.

METHOD OF PAYMENT:

1. Register and pay online with a credit card at

massagent.com®

Name: Agency/Company:

2. Enclosed is my check for $____________ made payable to MAIA, 91 Cedar Street, Milford, MA 01757.

Address:

3. I am paying by credit card.

Badge Name:

Please circle one: AMEX

City/ST/Zip:

VISA

Name:

Phone:

Card #:

E-Mail: Course #:

#250026

*PHOTO ID: Admittance ONLY with photo I.D.

Exp. Date:

CSV#:

$Amt.

Signature: 10/4/16

Mail or Fax to (508) 634-2929

THERE ARE MANY REASONS WHY MORE AGENTS AND EMPLOYERS ARE CHOOSING MEMIC As one of the fastest growing workers’ compensation specialists in the country, our expertise, our depth of safety and claims service and our “A” (Excellent) rating from A.M. Best offers assurance that MEMIC provides the best long-term value for your clients. Go to memic.com/thechoice to find out more about service offerings in our target industry groups: • Manufacturing/Technology • Healthcare • Hospitality • Retail • Financial/Professional Services • Private Schools and Colleges

YOUR VERMONT UNDERWRITING CONTACT

Steve Hansen

Executive Underwriter shansen@memic.com 603-314-0603

www.memic.com

Your Network is Your Net Worth Phil Schuman We all know the phrase “It’s not what you know, it’s who you know.” In addition to product knowledge, selling at its core is about building relationships. The better our network of people around us, the more likely it is we’ll discover the people who either can benefit from our service directly or introduce us to someone who can. Networking opportunities are all around us: business associations, chambers, lead groups, non-profits, Rotary clubs, to name just a few. But the benefit of networking can also be found in the most unlikely of places. Here’s a recent example: I was asked to be a chili cook-off judge at a hotel. Striking up a conversation with a fellow judge led to a discussion about sales training needs her organization had, which has since turned into an ongoing partnership. The connection would never have happened if I’d stayed home - and as a bonus the chili was delicious! The key is to be “out there” as much as possible and with a positive attitude always embrace the opportunity to meet new people. If you’re out and about and wondering whether you should start talking to someone you think you recognize or even someone you don’t, the answer is absolutely you should - every single time. You just don’t know where it may lead. By opening a conversation you have nothing to lose and everything to gain. If you’re nervous about approaching groups of people you don’t know at networking events, here’s a great tip that works really well: only approach groups of odd numbers. Talk to someone standing on their own, they’ll be relieved they have someone to talk with! And with a group of three or five there is likely to be one of them less engaged in the group conversation for you to approach. One of the biggest mistakes I made early on in networking was to attend events wondering what business I could generate from the people I met. I’ve since learned that I had it backwards – the real art to networking is to attend events looking to see who you can

help and what introductions you can make for others, with a genuine interest in being able to serve. This is the magical law of “givers gain” – in turn your help is reciprocated and you’ll find much deeper, more meaningful business relationships as a result. As Deepak Chopra says: “If you crave material affluence, help others become prosperous.” Similarly it’s the wrong approach to go to an event with the aim of passing out as many business cards as possible hoping people will call you back – they won’t! Rather be far more focused, intentional and goal oriented in your efforts. Networking events aren’t for pushing your product or service; they’re for making initial introductions and leveraging those new contacts to follow up with and find out more about their needs to see how your service might be able to help them or others that they know. A great rule of thumb is to spend 75% of the evening meeting new people and 25% of the time building on existing relationships you already have. And best to attend the event alone. Going in a group you’re far more likely to stay in your pack and meet less people. Make a realistic goal before the event that you’ll make just 5-8 new meaningful connections and contacts. 35

Find out what they do, have the conversation be focused on them, and be ready with a quick “elevator pitch” on what your product or service provides. And always make sure you get their business card so you can follow up the next day to continue the conversation. In the world of selling the letters ABC often refer to “Always Be Closing”. But to sustain a more meaningful, effective and rewarding life in sales, ABC should also stand for “Always Be Connecting”. The success

of your career in sales will be determined by the strength of the relationships you cultivate, and networking is the vessel to make your ever increasing success a reality. Happy Selling! The Schuman Group empowers sales teams with real world tools through sales training, coaching and consulting services.

www.schuman-group.com

Perpetuate the Industry? Check.

Don’t wait until the office is empty to find new talent – support InVEST and find new recruits now. InVEST is a free, classroom to career program designed to increase awareness of the insurance industry with high school and college students. And, InVEST has been making huge strides over the last year. With a new student center, career center and more scholarship dollars than ever before, InVEST is touching more and more students daily. InVEST, a 501 (c)(3) non-profit, is supported by financial contributions from insurance companies and individuals, in addition to the active involvement of hundreds of insurance professionals. For volunteer and donor opportunities visit www.investprogram.org.

Everything you insure is on your shoulders

Who do you trust to have your back? VIAS offers the most prestigious Errors & Omissions carrier(s) in the country: Westport Insurance Company & Utica National Insurance Group

For a quote or for more information contact Helen Collins at hcollins@viaa.org or 1-844-609-1481

www.iiaba.net/eohappens

VIAS is a subsidiary of Vermont Insurance Agents Association viaa.org

Vermont Insurance Agents Association Partner Program Diamond Partners

Platinum Partners Silver Partners AmTrust North America, Inc. Travelers

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

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

Patriot Insurance Company

Thank you 2016 Annual Partners

The Effect of an Insured’s Bankruptcy on Coverage James C. Keidel, Esq. Christopher B. Weldon, Esq. Keidel, Weldon & Cunningham, L LP

n a perfect world, all your insureds would remain in business (and continue to be your customers) in perpetuity. However, in the real world, this is not always the case and sometimes one of your insureds may end up filing for bankruptcy. When this happens, one issue your insured may face is what effect does the bankruptcy have on its insurance coverage?

debtors are void and without effect.[4] Since many policies of insurance will automatically renew unless the insurer issues an effective notice of non-renewal, such insurers will likely be powerless to prevent the policy from renewing, at least absent relief from the automatic stay. On the other hand, policies that expire on their own terms will likely do so irrespective of any automatic stay.

Where an insured has paid its premiums in full prior to the time when the bankruptcy is filed, the filing for bankruptcy should have little effect on insurance coverage. In fact, bankruptcy courts have found on several occasions that, even where the insurer would have otherwise been permitted to cancel the insurance policy at will, the insurer cannot do so where the reason for doing so is based upon the insured having filed for bankruptcy.[1]

That being said, the automatic stay does not leave an insurer whose insured has filed for bankruptcy without any remedy where the insured falls behind on payments or where other circumstances arise justifying the insurer’s cancellation of the policy. In such circumstances, an insurer can petition the bankruptcy court for relief from the automatic stay.[5] However, the bankruptcy court is not required to grant this relief in every situation, and it may deny the relief where the requested cancellation would significantly impair the bankruptcy proceeding.[6] This process also gives the trustee time to cure any problem causing the insurer to cancel the insurance policy.

An insured’s bankruptcy filing will also provide at least some protection against the insurer canceling the insured’s policy, even where the cancellation is predicated on the insured having failed to pay its premium, or a material change in conditions exists that would otherwise permit the insurer to cancel the policy. Filing for bankruptcy triggers an “automatic stay,” which prohibits a variety of actions against the debtor, including “any act to … exercise control over property of the estate.”[2] In interpreting this provision, courts have held any attempt by an insurer to cancel an insurance policy constitutes an act to exercise control over property of the estate and violates the automatic stay.[3]

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.

The effect of bankruptcy on an insurance policy depends, at least in part, on whether the insured had paid its premiums in full prior to filing for bankruptcy.

Of course, every situation has its own peculiarities. While your insureds should be aware that filing for bankruptcy might provide them with some degree of protection against their insurers cancelling their insurance policies, you should direct your insureds to speak to their bankruptcy attorney about the specific facts of their bankruptcy to determine how this protection may apply in their particular case.

Courts have also routinely found notices of termination and cancellation issued to 39

[1] See, In re Cahokia Downs, Inc., 5 B.R. 529, 531-32 (Bankr.S.D.Ill 1980) [2] See, 28 .U.S.C. § 362(a)(3) [3] See, In re Minoco Group of Companies, Ltd., 799 F.2d 517 (9th Cir. 1986); Matter of Pester Refining Co., 58 B.R. 189, 191(Bankr.S.D.Iowa 1985) [4] See, In re Elder-Beerman Stores Corp., 195 B.R. 1019, 1023-24 (Bankr. S.D. Ohio 1996); see, Minoco, 799 at 518. [5] See, In re Payless Cashways, Inc., 305 B.R. 303, 306 (Bankr.W.D.Mo. 2004) [6] See, Matter of Amber Lingerie, Inc., 30 B.R. 736, 737 (Bankr.S.D.N.Y. 1983)

On a Related Note

E&O Risk Management:

Meeting the Challenge of Change (6 P&C CES) Thursday, October 27, 2016, 9 am to 4 pm Featuring Jim Keidel & Chris Weldon Register Here

Real WC Solutions to Meet Your Challenges

Real WC Solutions

to Meet Your Challenges • Fully Insured Markets; Broad Range Classes, Deviations and Dividends; Highly Rated Company Partners; Superior Service • Claims Management Services/TPA Services • Risk Control Services • Self-Insured Group Management • Alternative Market Solutions • Other Products – High Net Worth Personal Lines Program

Alison Jones (978) 933-4187 | www.meadowbrook.com

Company News Acuity’s Trevor Votruba Named AWIA Company Person of the Year Trevor Votruba is named Company Person of the Year by the Association of Wyoming Insurance Agents (AWIA). The AWIA’s Company Person of the Year award recognizes an insurance professional who has made a difference for agents and wholeheartedly supports the Independent Agency System. Trevor is Acuity’s Sales Territory Director for Wyoming as well as parts of Nebraska and Montana. He joined Acuity in 2012 and is based in Riverton, Wyoming. Prior to joining Acuity, Trevor had been office manager of an independent insurance agency. Before that, he served at Allied and Great American Insurance.

Trevor Votruba

Company News Acuity Rises on List of Large P&C Insurers Acuity is the 57th-largest insurer in the nation, according to Conning’s latest Market Share Rankings report. Acuity’s current ranking is a four-point jump from the previous year and reflects the insurer’s continued rise in the industry. “Acuity is proud of our sustained growth and momentum,” said Ben Salzmann, Acuity President and CEO. “Our continually increasing market share shows we are a strong force for independent agencies and a source of protection for a growing number of individuals, families, and businesses.” In 2015, Acuity again achieved significant growth across all lines

of business and throughout the company’s operating territory, writing over $200 million in new business for the fourth straight year. Over the past 16 years, Acuity has grown 250 percent faster than the insurance industry. In the past 48 months alone, the company added nearly $500 million to its top-line revenue. Acuity has also hired 700 employees over just a five-year span. As a result of the insurer’s continued strong growth, Acuity is building a 240,000-square-foot addition to its corporate headquarters to accommodate its more than 1,200 current employees and prepare for further regional expansion.

Acuity Named a Top Workplace for Women Acuity is one of the 2016 Best Workplaces for Women, according to global research and consulting firm Great Place to Work® and Fortune. This marks Acuity’s second consecutive year on the list. The 100 Best Workplaces for Women list highlights companies with generous benefits, flexible schedules, and an emphasis on balancing work and life. Rankings are determined by employee surveys and the representation of women within the overall workforce and in management and executive positions. “There is a strong correlation between being able to talk openly with company executives and feeling like a workplace is fair,” said Michael C. Bush, CEO of Great Place to Work®. “Traditionally, communication channels with leaders have been less available to women than to men. The Best Workplaces for Women do well at paving the way for those open dialogs, and as a result, women are more likely to feel they get fair consideration in their jobs and careers. Congratulations to these great companies—they are showing everyone how to create a Great Place to Work For ALL.” 42

Acuity’s workplace offers unique benefits designed for women, such as a Mothers’ Room, as well as facilities and features enjoyed by all employees, such as an onsite fitness center, bonding events for employees, and numerous programs that recognize, reward, and encourage staff. “We have worked diligently to create a great workplace for everyone,” said Joan Ravanelli Miller, Acuity’s General Counsel/Vice President - Human Resources. “Creating an environment that supports people in and outside of work isn’t just an issue for women—it’s an issue for all employees, which is why we are honored to be recognized for building a culture based on respect, fairness, and opportunity.” Acuity is rated as a top employer in other categories as well. The company earned a spot on the Best Workplaces in Financial Services & Insurance, Best Workplaces for Baby Boomers, Best Workplaces for Recent College Graduates, and Best Workplaces for Millennials lists in 2016. Acuity was also ranked #2 in Fortune’s 100 Best Companies to Work For® in 2016.

Company News Vermont Mutual Insurance Group Receives United Way Award Vermont Mutual Insurance Group® was recently honored with the United Way’s 2016 Workplace Campaign Award. At the 41st Campaign Kickoff Breakfast, Green Mountain United Way gathered nearly 100 business leaders and non-profit representatives from the state of Vermont to review initiatives, share success stories and present awards. During the awards ceremony, Green Mountain United Way honored Vermont Mutual Insurance Group with their 2016 Workplace Campaign Award. The award was given in appreciation of Vermont Mutual’s efforts to raise awareness among its employees about the Green Mountain United Way and the work it does. As a result, Vermont

Mutual saw a 100% increase in the number of donations from their employees. Upon receiving the award, Susan Chicoine, Vermont Mutual’s Vice President of Human Resources, stated “we are thrilled to receive this recognition from the United Way,” Chicoine continued, “it is testament to both Vermont Mutual employees and the valuable work the United Way does for our local communities.” Green Mountain United Way serves Caledonia, Essex, Orleans, Orange, and Washington Counties and works to improve these communities with a focus on the common good, seeking to assist and protect the health, education and financial stability of everyone within these communities.

Vermont Mutual Celebrates its “25 Year Club” Vermont Mutual Insurance Group® recently held its 34th annual meeting of the “25 Year Club”. Every year Vermont Mutual hosts a reception and dinner to honor those employees, both active and retired, who have given at least 25 years of service to the company. A total of seventy nine guests were on hand to celebrate and recognize members of this venerable club. Vermont Mutual’s General Counsel, Richard Bland, who celebrates 25 years at Vermont Mutual, is the newest member of the club. Also acknowledged for 30 years of service were Reneè Bilodeau, Sharon Chadwick, Christine Lewis and Laurie Stone. Celebrating 35 years at the company were Debi Graves, Shirley Metcalf and Julie Smith and celebrating 40 years at Vermont Mutual was Mary Davis, who started at the company back in 1976.

Though the evening was one of celebration, all in attendance joined in a somber and reflective moment of silence for one of its esteemed members, former VP of Claims, Donald W. Bean, who sadly passed away on June 16, 2016. During the evening, Daniel C. Bridge, Vermont Mutual’s President and CEO, stated: “It is indeed a remarkable achievement to be admitted into this exclusive club and Vermont Mutual is pleased to acknowledge these outstanding employees. We are grateful for their dedication and decades of service and look forward to working alongside these distinguished insurance professionals for many years to come.” The “25 Year Club” is proud to have 66 members in its ranks, 44 of whom are active and current Vermont Mutual employees. 43

Agency News Hickok & Boardman Insurance Group Announces New Personal Insurance Client Advisor Hickok & Boardman Insurance Group is pleased to announce that Kristy Lemieux has been promoted to Client Advisor for Personal Insurance. Lemieux is based in their Burlington office and will be reaching out to new and legacy clients to offer the agency’s broad portfolio of insurance products and services. Lemieux has been in the industry for 15 years specializing in personal insurance client service. She joined Hickok and Boardman in 2015 as a Personal Lines Account Manager. “Kristy has a proven track record of using her deep knowledge to best guide clients through the often complex insurance process. Her promotion to Client Advisor expands our community outreach and broadens our base of clients.” said Scott Boardman, President. Lemieux is a graduate of Capella University. She currently resides in St. Albans with her two children, Cole and Lexie. She is an active volunteer for youth soccer and is an avid participant in local charity events. Kristy Lemieux

Agency News VIAA Congratulates The Frankenburg Agency, Holden Insurance and The Woods Agency On Their Annivesary With The Concord Insurance Group Companies

THE WOODS AGENCY CELEBRATING 40 YEARS!

Ann Marie Mahar & David Calvi

CELEBRATING 20 YEARS! Holden Insurance

The Frankenburg Agency

Darlene Palmer & Paul Gladding

Ryan & Carol Bushey 45

Agency News Allisyn Houghton Joins The Richards Group The Richards Group is pleased to introduce Allisyn Houghton, who has been hired to advise employers with the management of their retirement plans as well as leading onsite education initiatives for plan participants. “We are excited to have Allisyn join The Richards Group’s retirement plan services practice. Allisyn brings a lot of skill and talent to our organization and is a great addition to our firm,” said Ben Taggard, Vice President of Wealth Management. Most recently Allisyn was employed by an international digital publishing company where in addition to being a Staff Accountant she provided financial analysis based on sales data and anticipated market trends, and coordinated the sales and marketing efforts of the North American branch. She graduated from the Isenberg School of Management with her Bachelor’s in Accounting in Business Administration from the University of Massachusetts Amherst. Allisyn is passionate about helping local businesses succeed and has provided guidance to various businesses and nonprofits with regard to bookkeeping, accounting and tax code adherence. She has also been involved in area youth sports for more than a decade, volunteering in both a coaching and officiating capacity. “I’m delighted to join The Richards Group” said Allisyn, “the firm has an excellent reputation as a member of the community and I look forward to helping employers and participants with their retirement plans.” Allisyn holds her FINRA Series 6 and 63 securities licenses.

Allisyn Houghton Allisyn will be based out of our Brattleboro office at 48 Harris Place Brattleboro VT 05301 and can be reached at (802) 254-6016 or by email at ahoughton@therichardsgrp.com.

Community News Txt U L8R Program Texting while driving has quickly become one of the greatest hazards on the road. It causes 1.6 million car accidents, 330,000 injuries per year, and 11 teen deaths every single day. That’s why UVM Medical Center and the Clinical Simulation Laboratory at the UVM College of Medicine created “TXT U L8R” a unique program designed to discourage individuals from texting while driving. Key elements include a demonstration of an advanced driving simulator, a presentation of a realistic trauma scenario, a testimonial from the victim of an accident caused by a teen driver who was texting, and a demonstration of several smartphone apps designed to prevent texting while driving.

To learn more, visit https://www. uvmhealth. org/txtul8r FREE parking is available onsite for all classes. For more information or questions, contact Christina Keating Injury Prevention/Safe Kids VT Coordinator Trauma Services 802-847-2291 Christina.Keating@UVMHealth.org The University of Vermont Medical Center UVMHealth.org/MedCenter

Thursday, October 20, 6:00 – 7:30 pm

UVM Medical Center, UVM Medical Education Pavilion, Sullivan Classroom

Free Legal Consultation for VIAA Members – Up to 30 minutes KEIDEL, WELDON & CUNNINGHAM, LLP Attorneys at Law

Mergers & Acquisitions Professional Liability Defense

Litigation

Pre-Litigation Services

Loss Control

Producer Agreements

Agency Contracts Contract Disputes

Contact: James Keidel, Managing Partner jkeidel@kwcllp.com|914.948.7000 Bar Admissions: Vermont, New York, Connecticut, New Jersey, North Carolina

Experienced| Economical | Effective 47

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

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

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

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

Community News DFR launches initiatives to help Vermont’s senior citizens avoid fraud Commissioner Michael S. Pieciak announced today that the Department of Financial Regulation will launch a number of initiatives designed to combat elder financial abuse in Vermont. In conjunction with National Senior$afe Training Week, October 2-8, DFR has compiled a number of resources aimed at raising awareness and establishing procedures for reporting possible financial abuse. Elder financial abuse has been termed the “Crime of the 21st Century.” According to the Investor Production Trust, it is estimated that one of every five citizens over the age of 65 has been victimized by a financial fraud, totaling a loss of approximately $2.9 billion annually. Vermont is particularly susceptible to elder financial abuse because it has the second oldest median age in the country with 21.1 percent of Vermonters over the age of 60 and that segment of the population is growing more rapidly than any other age group. In addition to the rising number of retirees here and nationwide, senior citizens are also vulnerable because of the amount of money they have saved in preparation for retirement. Pieciak said the key to successfully lowering the number of financial fraud victims is to increase educational outreach across the state and arm Vermonters with the financial literacy necessary to avoid fraudulent activity. “Elder financial abuse is a serious and growing problem. The Department will devote the necessary resources and work cooperatively with industry and those in government to root out elder financial abuse in Vermont,” he said. One way to do that is to provide training for financial professionals that focuses on identifying possible red flags. The Department is planning trainings this fall for investment advisors and broker-dealers, and will expand

trainings to include tellers and other frontline staff at Vermont banks and credit unions as well as other financial professionals. DFR is also implementing an elder abuse response team that will quickly investigate reported cases and work collaboratively with partner agencies to investigate and take legal action if necessary. E-mail DFR.SeniorSafe@ vermont.gov to provide to tips, ask questions or reports instances of elder financial abuse. At the state level, Vermont was recently the first state to fully implement a model state regulation designed to give industry participants and state regulators new tools to help detect and prevent elder financial abuse. The regulation requires investment professionals to report suspected cases of elder financial abuse to the Department and Adult Protective Services. It also authorizes delayed disbursements from investment accounts for up to 15 business days while authorities investigate. In addition to these multi-faceted efforts to address the serious problem of elder financial abuse, DFR will seek tougher penalties for individuals who perpetrate financial crimes against Vermont’s vulnerable population. Senior$afe is a national program that was created to help those in the financial services industries learn more about this growing problem. For more information or to request a Department representative to speak at your next meeting or event about tips and strategies to avoid becoming a victim of financial fraud, please contact Dale Schaft at 802-828-4872 or e-mail dale.schaft@vermont.gov.

Helen Collins hcollins@viaa.org