GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION
September 2015
7
th
Green Mountain Agent is a publication of
In This Issue: September 2015
P.O. Box 1387, Montpelier, VT 05601 Phone: 802-229-5884 Fax: 802-223-0868 www.viaa.org VIAA Officers President Elect Daniel Lussier Secretary/Treasurer Peter Richards IIABA & PIA State National Director Ron Bixby Immediate Past President Michael T. Walsh, CPCU
4 Message from the President
Features 6 Important Tax Update 10 Help Wanted 12 YAC Make-A-Wish Walk 14 VIAA Annual Meeting Notice 18 Marketing: Why We Choose TV 21 Sales Success: Customer Information You Need to Build Super-Strong Relationships
E&O Corner
Directors Chip Ams Erin Odell
27 Technology Related E&O Questions
News
Paul Plunkett
Staff Executive Director Mary Eversole meversole@viaa.org
GMA Publication Design Thorin Markison thorinmarkison.com
30 Morse Insurance 31 Ohio Mutual 32 Vermont Mutual
Message from the President Much Better Than Putting In a matter of days I will accept the gavel as president for the Vermont Independent Agents Association. I thank you for the honor. I was recently asked what my platform is. That’s easy to answer. Your board of directors in the last few years has taken a course of purposeful abandonment. We’ve cut events and programs that no longer fill the needs of our members and diminish our finite resources. We’ve thought outside of the box and looked for new sources of revenue that has brought us a long term tenant at the building. We’re making that asset work for us. Most importantly, we will continue to grow our future leaders and invest heavily in the Vermont Young Agents Programs. I would like to thank Mike Walsh for his leadership during a challenging year and Jon Jamieson for his many years of volunteer leadership as he leaves the board. We’ll take it one shot at a time, stay out of the bunker and keep our score at par. Looking forward to teeing off as President!
Dan Lussier, VIAA President Elect
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Leasing: A Seamless Customer Experience
But don’t take it from us. Listen to your peers. Agents Express Leasing is an effective solution to manage your clients needs with today’s best equipment technology. Jay Byrnes of Byrnes Agency experienced how easy our leasing solution is for his agency: “As a longtime member of the “Big I”, I always knew of InsurBanc and their commitment to the independent insurance agent. Recently we wanted to update the agency with a new computer network and desktops, so I turned to InsurBanc for leasing options. From start to finish I experienced firsthand how seamless it was to conduct business with them. We have a 35 person agency so to update everyone’s computers was a decent size upgrade. InsurBanc made the process very easy and offered attractive terms and competitive rates which helped to manage the agency’s cash flow”. – Jay Byrnes ~ Byrnes Agency How it works: • Lease terms are 24, 36, 48 or 60 months with a minimum transaction of $5,000 • You are looking for 100% equipment financing, including certain soft costs such as software, shipping, installation and maintenance* • No down payments or advance payments are required • Monthly payments can be customized to meet your special business needs • You are looking for potential tax benefits associated with equipment financing**
We invite you to see for yourself. Contact us today for help preserving your cash flow with an equipment lease solution. These materials are for informational purposes only. The availability of any financing described herein is subject to approval of applicant’s credit, the equipment supplier and the equipment. *Soft costs are limited to 20% of the total amount financed. **Nothing herein constitutes tax advice and customers are advised to consult with their own tax advisors prior to electing specific rates or options. Agents’ Express leasing is a program of De Lage Landen Financial Services, Inc., a third party not affiliated with InsurBanc, a Division of Connecticut Community Bank, N.A.
Member FDIC 13INR052
7/13
Please visit our web site at www.insurbanc.com or contact one of our leasing professionals at 800.957.0858.
Attention VIAA Members – Important Tax Updates! VIAA wants to make our members aware of a recently enacted legislation that went into effect July 1, 2015. The Vermont Legislature, as part of a larger tax bill, enacted the below legislation that went into effect July 1, 2015. It requires all employers regardless of size to provide additional information on employees’ W-2 forms. If you are using a payroll company, they should be contacting you for the necessary information. If you are processing your payroll in-house, you will need to be aware of this requirement. See the excerpted paragraph below for the state’s wording: (Page 91 of 113) 2015 VT LEG #309733 v.1 Sec. 67. 32 V.S.A. § 5841(c) is added to read: (c) Every person who is required under this subchapter to withhold income taxes from payments of income, except for the government of the United States, shall provide the aggregate cost
of applicable employer-sponsored coverage required under 26 U.S.C. § 6051(a)(14) regardless of the number of W-2 forms filed. Click here for entire text of legislation
Congratulations to VIAA Company Partner
Co-Operative Insurance Companies on their 100th Anniversary
Certified Professional Insurance Agent A NEW DESIGNATION FOR YOUNG AGENTS
3 Courses, 3 Days, 21 CEUs + the CPIA Designation October 8, CPIA 1, Position for Success, 8:30 am – 4:30 pm, Credits 7 The Aims Society
October 8, 22 & 29, 2015 Capitol Plaza, Montpelier, VT Instructor: Bruce Thomas VIAA YOUNG AGENTS MEMBERS ATTEND FREE! The Certified Professional Insurance Agent (CPIA) Designation is the first-of-its-kind, on-hands, howto-training. To earn the CPIA designation, candidates are required to participate in a series of three, one-day Insurance Success Seminars. These seminars are designed to enhance the ability of producers, sales support staff and company personnel to efficiently create and distribute effective insurance programs. Participants leave with ideas that will produce increased sales results immediately. Insurance Success Seminars Are Guaranteed! Implement the principles covered in these sessions and experience a 20% increase in personal production within 6 months.
VIAA Members $175 Non-Members $225 VIAA Young Agents* – Free * A VIAA Young Agent is a member of the Vermont Young Agents Committee or anyone who has worked in the industry for less than ten years or is 40 years of age or younger who works for a VIAA Member Agency.
Sponsored By VERMONT
Program participants are encouraged to focus on internal and external factors affecting business plans. Factors include review of the insurance marketplace; analysis of competitive pressures; necessary insurance carrier underwriting criteria; and consumer expectations and understanding. Throughout the workshop materials and tips for preventing errors & omissions are highlighted and discussed. Register October 22, CPIA 2, Implement for Success, 8:30 am – 4:30 pm, Credits 7 During this session participants will be provided with specific tools for analyzing consumer needs; risk identification techniques to gather pertinent prospect information; skills necessary to assimilate information gathered into a customized protection program, and will participate in exercises designed to promote effective delivery of proven solutions. Register
October 29, CPIA 3, Sustain Success, 8:30 am – 4:30 pm, 7 Credits This program focuses on fulfilling the implied promises contained in the insuring agreement. Students will review methods of providing evidence of insurance coverage; discuss policies and procedure for controlling errors and omissions including policy review and delivery, endorsements, claims-processing, and handling of client complaints. Register Space is Limited!
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Help Wanted
Personal Lines Customer Service Representative South Burlington, VT T.S. Peck Insurance, based in South Burlington, Vermont is looking for an experienced personal lines customer service representative to join our team. This position involves assisting new and existing personal lines clients with billing, claims, and policy changes for all personal lines policies. The position requires the ability to work closely with fellow customer service representatives, producers, management, and insurance carrier personnel. The work environment is professional and very supportive. The ideal candidate should have excellent interpersonal skills, 3+ years of CSR experience, and fluency in the Applied Management System. A property and casualty license is required. T.S. Peck offers a highly competitive salary, profit sharing, and benefits package. T.S. Peck has been providing personal and commercial insurance solutions to Vermonters since 1869. As a local, independent agency we have deep roots in the community and offer superior service to our clients.
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Please send your resume to: jakehynes@tspeck.com T.S. Peck Insurance Attn: Jake Hynes 41 IDX Drive #135 South Burlington, VT, 05403
Help Wanted
309 Portland Street St. Johnsbury, VT
802-748-5224
CSR/Producer
Seeking Turn Off Texting Demo Presenter With Truck Central & Northern VT The Youth Safety Council of Vermont seeks a teen-savvy presenter with a good driving record for its Central & Northern VT “Turn Off Texting” driving safety program, our second presenter position for this popular program. Part time seasonal position with varied hours requires daily travel. Qualified candidates will be ok with a flexible schedule, comfortable working with adolescents and teachers, have good communication skills, and be willing to travel within Vermont using their own vehicle (6 cyl. minimum) to tow a trailer. Compensation includes an hourly wage and mileage reimbursement. Send a resume and information about schedule availability to info@yscvt.org. JAMES LOCKRIDGE | Executive Director Youth Safety Council of Vermont (802) 881-9050 | www.YSCVT.org
Our family owned and operated agency takes the time to get to know our customers, helping them identify risks and recommending the insurance solutions that best fit their needs. We offer local service and are committed to our community. Currently we seek a highly motivated individual that desires a career opportunity. Would you like to help us maintain and grow our business? Do you have your property and casualty license, and sales experience with a proven track record of exceeding goals. In addition, can you connect with people, establishing rapport and building relationships that help round our book of business. Core Job Duties Include (but are not limited to): • Provide excellent customer service • Prospect and generate new business through leads and referrals, soliciting, and quoting new business • Set appointments to meet with clients and prospects • Review renewal business and conduct appropriate follow-up • Build relationships with existing customers • Proactively identify and act on cross-sell opportunities • Perform risk analysis and underwriting • Monitor claims activity for profitability purposes • Determine new business marketing focus based on research and analysis of competitive areas in local market • Diffuse difficult and complex customer interactions Must be able to • Meet performance goals • Understand complex product, billing, underwriting, and processing guidelines • Understand and make decisions based on what’s best for agency’s profitability and growth • Multi-task • Continually pursue development of personal and business skills • Accept feedback Must have the following skills and experience: • Outstanding written and verbal communication skills • Proficiency in Microsoft Office Suite (Excel, Word, Outlook, etc.) and general computing • Previous customer service experience Please submit resumés to us at: apply@thebarrettagency.com
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Join VIAA YACs at the Make a Wish Walk
VERMONT
VIAA and Trusted Choice are again a major sponsor of this year’s Walk for Wishes, which will be held on September 13th, 2015 in Shelburne. We are looking to increase industry participation this year.
We are again encouraging all VIAA members and the insurance industry to join us in this fun event. Please mark your calendar and watch for more details from VIAA’s Young Agent Committee-the organizers of our industry’s effort. Here are different ways you and your company can participate: • Form a team of walkers • Give a contribution on behalf of a walker • Spread the word around the industry about the event. Make a Wish grants wishes to children with life-threatening illnesses. For more information, contact VIAA YAC Dan Rodliff at 802-448-7157.
At MMG Insurance we offer a wide variety of property and casualty insurance options. Our products are designed to fit your customer’s personal and business needs at a competitive price. We understand that customers expect and demand exceptional value. Compare, and you’ll discover that superior service and value is what you’ll get with MMG Insurance. We’re proud to partner with agents like you agents who share our commitment to excellence, every day. Visit us online at mmgins.com
2014
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.
10 Reasons to Attend the Big “I” Young BESTAgents Leadership Institute OF A REGIONAL. September 24-25 at the Fairmont San Francisco
üLocal relationships 1. Find answers to social media questions—from time management to ROI ü Local claims staff 2. Find out how to tap your inner creative side to increase sales YOU NEED THE PRODUCTS ü 100% dedicated underwriter From auto, home and umbrella
3. Make connections with other young agents—share your successes and challenges to watercraft, classic car and more. ® 4. Hear from top insurance carrier executives on issues to your agency has the products your Safecoimportant 5. Network with industry and association leaders customers need most. OF A NATIONAL. 6. Take away tools to help you work smarter products you need ü7.TheDiscover new marketing best practices claims ü8.24/7Spend time with good friends and get great ideas in class quote and ü9.Best Play a little jeopardy with our friends from the ACT issue platform 10. Check out the sights and sounds of San Francisco, Calif.
BEST
Interested in becoming a Safeco agent? Reach out to our VT Territory Manager, Deb Bissell, at Deborah.Bissell@Safeco.com for more information. www.independentagent.com/events www.independentagent.com/events Safeco Insurance, with a principal place of business in Boston, Massachusetts. © 2014 Liberty Mutual Insurance.
In Every Community Maximize your Investment In the 2015 Trusted Choice Campaign Increase your ad dollars by 150% No other advertising campaign delivers more value
-
2015 TRUSTED CHOICE TOTAL STATEWIDE CAMPAIGN TV Placement
TV AD DESIGN l l
l
l
Your own Trusted Choice high definition TV commercial. Gold sponsors receive customized footage, including an on-camera appearance and agency customers featured - all taped on location. Silver sponsors receive an on-camera appearance taped at VIAA at NO COST. (Customized footage taped on location is available at $350 per agent) Production begins in late Spring.
Total spots: 421
Total spots: 2,875 Total TV Placements: 3,296
$ TARGETED 2015 PLACEMENTS AND BUDGET SPEND Your ads will run between June and November on WCAX during local news, national morning shows, and weekend news and during the Red Sox and other top cable programming. GOLD SPONSOR: $5,000
SILVER SPONSOR: $2,500
Targeted Cable TV Ads: 230
Targeted Cable TV Ads: 115
Ads on WCAX: 35
Ads on WCAX: 16
Total Value: $15,000
Total Value: $6,500
. OVER 1.5 MILLION TOTAL OVERALL CAMPAIGN IMPRESSIONS The number of ad placements may vary depending on total agent participation. Ad placement was based on company contributions plus 7 agents participating at the Gold $5,000 level and 11 agents participating at the Silver $2,500 level. For more information contact Mary Eversole at 802.229.5884 or meversole@viaa.org.
Sponsored By
CONVENTION REGISTRATION Join us September 24 & 25, 2015 at the Hilton Burlington Hotel in Burlington, Vermont for the 109th Annual Convention. VIAA’s largest and most anticipated event of the year is our Annual Convention. Approximately 400 member agents, Young Agents and company representatives join together to network and acquire new knowledge about the industry. We’ve changed the format this year to include more time for networking and socializing. Local and national exhibitors will be in attendance to provide updates on their latest products and educate attendees. The Young Agents are taking over the entertainment and will host Young Agents Casino Night. The Annual Convention this year includes informative CE sessions presented by David Walker, Chair of the Big “I” and a golf tournament at Kwiniaska Golf Club in Shelburne on Friday. This year’s event will be better than ever so mark your calendar, reserve your rooms, register online and get ready to have fun! Remember CSRs attend for free! For questions call (802) 865-5202 or email info@delaneymeetingevent.com.
Visit www.viaa.org for program updates and to register online
SCHEDULE AT-A-GLANCE Thursday, September 24 8:30 AM
Registration
9:00 AM - 4:00 PM
Continuing Education Classes
4:00 PM - 7:00 PM
Trade Show
5:00 PM - 7:00 PM
President’s Opening Reception
7:00 PM - 10:00 PM
Vermont Young Agents Casino Night
Friday, September 25 8:00 AM - 9:00 AM
Friday Breakfast
10:00 AM - 3:00 PM
Annual Golf Tournament at Kwiniaska Golf Club
LOCATION & LODGING Overnight accommodations are available at the Hilton Burlington Hotel to conference participants at a discounted rate of $199/night for September 23, 2015 through September 26, 2015. The special room rate will be available until August 24th or until the group block is sold-out, whichever comes first. Visit http://bit.ly/1e2QqYO to make your reservation online. Hilton Burlington 60 Battery Street Burlington, VT 05401 (802) 658-6500 www.hiltonburlington.com
CONVENTION HIGHLIGHTS CONTINUING EDUCATION E&O AND ETHICS WITH DAVID WALKER, CHAIR, BIG “I”
NEW THIS YEAR! YOUNG AGENTS CASINO NIGHT After the President’s Reception on Thursday evening, the first annual Vermont Young Agents Casino Night will take place from 7:00 PM – 10:00 Take advantage of a rare opportunity to learn from
PM. Each attendee will receive $500 in poker chips
the “Top Dog” of the independent agents, David
to play Texas Hold ’em, Roulette, Craps, 5-Card Stud
Walker, Chair of the Big “I”. Start the morning with
and more! There will also be prize drawings every
an eye-opening E&O course and after lunch learn
15 minutes, cash cube, photo booth as well as food
how ethics and leadership go hand in hand.
and drink. Grand prizes will be awarded at 9:30 PM.
*Each course is 3 CEUs for the State of Vermont
REGISTRATION OPTIONS Register online at http://www.cvent.com/d/3rqdd7/4W
Thursday, September 24 FULL CONVENTION REGISTRATION Includes: Continuing Education Classes & Lunch, Trade Show, President’s Opening Reception, Young Agents Casino Night and Friday Breakfast
MEMBER
NON-MEMBER
$150
$175
CSRs FULL CONVENTION REGISTRATION
Free
Includes: Continuing Education Classes & Lunch, Trade Show, President’s Opening Reception, Young Agents Casino Night and Friday Breakfast
Continuing Education Classes ONLY Includes: Continuing Education Classes & Lunch
• • •
9:00 AM - Noon E&O (3CEUs) 1:00 PM - 4:00 PM Ethics (3 CEUs) Both E&O and Ethics
OPENING NIGHT ONLY Includes: Trade Show, President’s Opening Reception and Young Agents Casino Night
PRESIDENT’S RECEPTION ONLY Includes: President’s Opening Reception
Friday, September 25 Golf Tournament - Kwiniaska Golf Club, Shelburne, VT
$35 $35 $65
$50 $50 $80
$110
$125
$75
$95
INDIVIDUAL
FOURSOME
$180
$720
CANCELLATION POLICY: Cancellations made by September 18th will be issued a refund of 50% of your total registration fee. No refunds will be given for cancellations received after September 18th. All cancellations or changes must be made in the registration system. “No shows” will not receive a refund.
Marketing Strategies with John Houle Why we choose TV Broadcast TV still remains the number one medium to promote a brand.
afford high-end production, or even worse, their ad could appear like some of the lower quality ads they have seen by local advertisers.
Which direction should your business take? Should your message be placed on TV, or is radio or digital advertising a better option? If you select print media, are you better served in local community papers or larger dailies? What about direct mail or email marketing?
The reality is that you can produce a highquality television ad for relatively the same cost as designing a new brochure. A good TV ad can cost as low as $750 and no more than $2500, depending on how elaborate you make it and whether you hire actors. The added benefit of a video shoot for TV is all the extra footage you capture that can be turned into web videos and clips for presentations.
There are many questions to consider in marketing your business. With all the many options available to disseminate your message, what is the best? MarketShare, a national marketing-analytics company, analyzed advertising performance across industry and media outlets such as television, online display, paid search, print and radio advertising. The analysis found that TV has the highest efficiency at achieving key performance indicators, or KPIs, for sales and new accounts. When comparing performance at similar spending levels, TV averaged four times the sales performance of digital. Simply put, you can reach more people through broadcast TV – ABC, Fox, NBC and CBS. On a cost per thousand basis, which is how many professional marketers compare media, broadcast TV remains one of the most efficient. In a recent campaign my company prepared, it cost $7 to reach 1000 people on broadcast TV versus a $25 cost per thousand on radio. Billboard advertising is even lower at a $3 cost per thousand, but the downside is the limited message you are capable of delivering in a few words and in a static format. The barrier to television advertising has often been the ad itself. Television ads were either perceived as too costly or too cheap looking. The perception often is that a small business cannot 18
While TV is the market driver, it doesn’t mean that you should forgo other marketing activities such as direct mail, email marketing, digital marketing, and social media. Facebook advertising and Google Adwords are especially effective in promoting a message and directly appealing to active buyers. Email marketing is an excellent retention tool to keep your
Are you trying to reach Vermont’s Independent agent’s? Do you have a great ad that represents your company and have nowhere to place it? Are you looking to hire? Place your ad in VIAA’s monthly publication and have the opportunity to advertise and market to Vermont’s Independent Agents.
Questions on how to place an ad? Contact Mary Eversole at meversole@viaa.org for placement options and advertising rates.
Vermont Insurance Agents Association ATTN: Advertising/ PO Box 1387/ Montpelier, VT 05601
customers informed and is equally effective in cross-selling products. Advertising in local newspapers still reaches an informed and more affluent consumer, and the prices today are more affordable. Direct mail is an excellent option to target specific areas to promote your offer, and with new programs such as the US Postal Services Every Door Direct Mail, it is very cost effective.
John Houle is the president of JH Communications and can be reached at 401.831.6123 or at john@jhcom.net.
No matter what option you choose to promote your message, remember to stick to the fundamentals. This involves making decisions based on what data tells us, not what you personally watch, listen, or do. And when it comes to developing that message, make certain it is clear, concise and to the point.
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Sales Success with John Chapin Customer Information You Need to Build Super-strong Relationships In my article two months ago, I mentioned that any time the subject of relationships comes up and I ask how important they are in the overall sales and business process, I usually get the answer that they are the most important part. I think we all know that the more a prospect or customer likes us, the more likely they are to do business with us regardless of most other factors and in fact, a prospect will buy a higher-priced, inferior product from someone they like versus someone they don’t. Make no mistake, building solid relationships takes time, effort, energy, and money and that’s precisely why most people continue to cop out with price and other excuses when they lose a sale as opposed to building the relationships necessary to retain customers and get new ones. That said, if you do decide you’d like to do the hard work upfront in order to hang on to customers long-term, this article will give you the information to gather and use with each customer. You won’t gather and use this information on all your customers. Ideally you’ll be doing this to build relationships with the top 20% of customers that give you 80% of your business. In addition, you will be gathering and using this information on other good customers such as those giving you the most referrals. The goal is to reach out to these customers 14-18 times per year with a variety of methods, such as: birthday, holiday, and anniversary cards, thank-you notes, in-person calls, phone calls, e-mail (assuming they have agreed to be on your e-mail list), regular mail in which you can send hard-copy newsletters, gifts, and other items of interest, and via customer appreciation events. While it’s not likely that you’ll get all this information from everyone, the more information you have about each customer and the better you know them, the better
your relationship will most likely be. Specifically, you want to know about your best customers’ family, their hobbies and interests, and their history. Here is an outline of the information you’re looking for: 1) Name: 2) Title: 3) Company: 4) Address: 5) Phone number: 6) Fax number: 7) Cell phone number: 8) Home phone number: 9) E-mail address: 10) Birth date: (month and day) 11) Where they live now: 12) Where they grew up: 13) Where they went to school (high school, college, other): a) What degrees they have: b) If college, what was their major: 14) Activities they were involved in growing up (sports, clubs, student government, fraternities, sororities, etc.): 15) Military service, and at what level: 16) What, if anything, do you know about their political or religious beliefs: 17) What subjects do they like to talk about and what, if any, subjects should you avoid: 18) Where they were employed previously: 19) What activities are they involved in now (sports, clubs, groups, trade associations, travel, hobbies): 19a) What is their level of involvement and proficiency (are they on a board of directors, are they an instructor, scratch golfer, etc.): 21
20) Are they related or connected to anyone else you know (someone’s sister, cousin, close friend, etc.): 21) What do they consider their most significant accomplishment(s): 22) Do they plan on retiring some day, and what would they like to do: 23) Where they vacation also, where would they like to vacation: 24) Married, single, divorced: a) If married now, how long: b) Anniversary date: c) spouse’s name and birthday: d) spouse’s occupation: e) spouse’s interests: 25) Children: a) Names, ages, and birthdays: b) Are they involved in any activities, and what are they: 26) Other information you’ve gathered on the customer. Examples: • Have they had knee surgery? • Do they have diabetes? • Did they go to an Aerosmith concert last year? • Have they climbed Mt. Fuji? • Have they run the Boston Marathon? • Do they have a famous uncle, aunt, cousin, etc.? • Is their son the wrestling champion in the state of Iowa? 27) Did they give you some information on family members that doesn’t fall into the categories listed above? 28) What other personal information will help you understand and relate better with your customer? Once you have this information, again, use it. Ultimately you are looking to make customers both loyal customers as well as good friends. The more of this information you have, and the more you use it, the less likely it is that someone will leave you or buy from someone else.
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John Chapin is a sales and motivational speaker and trainer. For his free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For permission to reprint, e-mail: johnchapin@completeselling.com
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Dive in
to ϐlood knowledge.
Stay ahead of the curve with information and updates from Big “I” Flood. Being knowledgeable of NFIP coverages and changes is crucial in communicating the need for �lood insurance to your clients� Fortunately, Selective and Big “I” Flood leverage a variety of channels to keep members up to speed, including:
Continuing education classes offered by state
associations and taught by Selective Territory Managers or other industry experts
Regularly issued communications from Selective about NFIP legislative changes and how they impact agents and customers
Numerous publications providing industry updates:
Insurance News & Views weekly e-newsletter Two for Tuesday weekly e-newsletter Big I Advantage® Newsletter quarterly publication Independent Agent magazine special features NFIP reform announced in state association publications
Free topical webinars hosted by Big “I” Flood,
including a monthly “Oh, By The Way Flood Sale” webinar, as well as access to a virtual university dedicated to �lood insurance�
To learn more about Big “I” Flood visit www.independentagent.com/Flood today.
Vermont Insurance Agents Association Partner Program
Thank you 2015 Annual Partners for Your Continued Support Diamond Partners
Platinum Partners MMG Insurance Co. Progressive MEMIC
Silver Partners C OURTEOUS
Gold Partners Co-operative Insurance Cos. Hanover Insurance Group Patriot Insurance Company MAPFRE|USA
R ESPONSIVE
Q UICK
C LAIMS C ASH C ARDS 97% S Allstate AmTrust North America, Inc.
Bronze Partners BankDirect Capital Finance Foremost Insurance Co. Kemper Meadowbrook TPA Associates New England Excess Exchange, LTD NGM Insurance
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SECURE your agency’s future with the largest writer of agents professional liability in the country
SUPPORT your state association while protecting your business
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Technology Related E&O Questions that Agents and Brokers Frequently Ask Us James C. Keidel, Esq. Christopher B. Weldon, Esq. Keidel, Weldon & Cunningham, L LP
Our law firm regularly receives calls from agents and brokers across the country asking questions concerning how they should handle various aspects of their business operations in order to help avoid potential E&O claims and lawsuits. Issues concerning technology are some of the most common questions that we regularly receive. In this issue of the E&O Corner we will discuss several technology related questions that we frequently hear from insurance agents and brokers. The first question that we hear from agents and brokers concerns the issue of how they should handle email communications that they have with insureds and insurers. It seems like the most common way for agencies and brokerages to communicate with insureds and insurers is through e-mail. Very often that e-mail communication is necessary to defend against an E&O claim or lawsuit. It is for this reason we suggest that agencies and brokerages have a procedure in effect whereby employees consistently save all e-mails they send or receive that pertain in any way to coverage or claims. By doing this the agency or brokerage will have the documentation necessary to defend itself if a potential E&O claim or lawsuit arises. The second question that we regularly receive from agents and brokers concerns how they should deal with text communications that they may have with customers and others. Although not as common as email, text messages are also increasing in popularity as a way for agents and brokers to communicate with their customers and others. Text messages present a different issue, however, since they are not easily printed or saved to a customer’s
electronic file within the agency management system. Accordingly, one recommendation that we have concerning text messages is as follows: if a producer or another employee of an agency or brokerage receives a text message, they should create a corresponding note or activity within the agency management system to document receipt of that text message. The note or activity should contain the language of the text massage as well as any action that the agency or brokerage may take in connection with the message. Another way to deal with a text message is to email a copy of the message to yourself and then save that email in the customer file within the agency management system. By doing so, the agency or brokerage will have the proof that it needs to defend against a potential E&O claim or lawsuit that may arise. A third question that we receive from agencies and brokerages concerns the best practices that they should follow if a customer requests that insurance documents be delivered to them going forward in an electronic format and not in paper. Any agency or brokerage that is asked to deliver insurance policies or other insurance documents to a customer in an electronic format and not in paper should be sure to first have the customer sign an acknowledgement confirming their request and what will be done going forward. A handful of states require that a writing such as this be obtained, but the best practice for every agency and brokerage to follow is to obtain a signed writing such as this from a customer in every instance regardless of whether it is required or not. A sample electronic document acknowledgement form that we have prepared states the following: Electronic Document Acknowledgement Â
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This is to acknowledge that as of the date set forth below I have requested that the ______ agency provide me with electronic copies of my insurance documents. In addition, I further acknowledge my understanding that until such time as I specifically request in writing to the agency that this procedure be changed and the agency acknowledges its receipt of that request, I will only receive electronic copies of my insurance documents and I will not receive any paper insurance documents. Agreed to this ___ day of _____, 201__. ___________________________ (Name of the Insured) The actual language of the acknowledgement used by an agency or brokerage for the delivery of electronic insurance policies and other documents can be different than the above. However, the most important thing to remember is that any form that is used should specifically state that, from the point the Electronic Document Acknowledgement is signed by the customer, all insurance documents will be delivered in an electronic format only and that no paper documents will be provided to the customer unless specifically requested by the customer. An agency or brokerage that handles electronic delivery of insurance policies and other insurance documents in this manner will protect itself from a potential E&O claim or lawsuit that may arise in connection with these transactions. Our experience has demonstrated that agencies and brokerage that regularly follow good E&O loss control practices, such as those that we have discussed above, can not only reduce the likelihood of an E&O claim or lawsuit, but they can also provide increased customer service, while at the same time very often sell more insurance in the process.
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The law firm of Keidel, Weldon & Cunningham, L LP specializes in the defense of insurance agents and brokers in connection with E&O claims and lawsuits and regulatory matters. You can contact James C. Keidel by telephone at 914-948-700 and by email at jkeidel@kwcllp.com or Christopher B. Weldon by telephone at 203-869-2200 and by email at cweldon@kwcllp.com.
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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
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VIAS is a subsidiary of Vermont Insurance Agents Association viaa.org
Agency News Morse Insurance Celebrates 30 Years With Concord Insurance
Left to Right Jennifer Bellavance, Glenn Mink, Kim Phelps
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Company News Mark C. Russell Selected as Next Ohio Mutual President & CEO SELECTED TO SUCCEED RETIRING JIM KENNEDY BUCYRUS, OH – The Ohio Mutual Insurance Group Board of Directors announced today that Mark C. Russell has been selected as the company’s next president and chief executive officer, succeeding the company’s current retiring leader Jim Kennedy. Russell comes to Ohio Mutual from Columbus, Ohio-based Grange Insurance, where he has served in a variety of key roles since December 1997 – most recently in several executive vice president positions, as interim president of Grange affiliate Integrity Insurance, and roles overseeing information technology, marketing, agency relations, customer experience, and claims. Prior employers include Century Surety Insurance Group and Anthem Casualty Insurance Group (Shelby, OH), and Crum and Forster Commercial Insurance (New Jersey and Louisiana). “Over the past few months as we have interviewed Mark, observed his alignment with Ohio Mutual’s Guiding Principles, and heard his commitment to perpetuate and strengthen the company’s unique corporate culture – we have become more and more confident that
More than a promise . . .
he is the right kind of person and the right kind of leader to assume this key role for our organization,” said Sue Porter, Chair of the Ohio Mutual Board of Directors. Russell is a 1984 graduate of Texas Lutheran University, and earned an MBA from Ashland University in 1989. He has also completed additional executive training from the Harvard Business School and Indiana University. He holds the CPCU, ARM, and CCLA professional designations, and currently sits on the board of governors for the National Insurance Crime Bureau. A resident of Dublin, OH, Russell is active in his local community – he currently serves as board president for the Ronald McDonald House and as a trustee for the Community Shelter Board. Russell and his wife, Lori, have two high-school age children. “Following the Board’s careful search and selection process, we now move into a period of transition that will culminate with Mark assuming full leadership responsibility by January 1, 2016,” Porter added. “Ohio Mutual has thrived under the superb leadership of Jim Kennedy for the past 13 years, and we fully expect that the organization’s upward trajectory will continue under Mark Russell.”
1725 Hopley Avenue, P.O. Box 111 Bucyrus, Ohio 44820 419.562.3011 800.686.3011 omig.com
31 RELEA FOR IMMEDIATE
Company News Vermont Mutual Honors Employees for Years of Service Vermont Mutual Insurance Group® recently held its 33rd 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 eighty-one guests were on hand to celebrate and recognize several Vermont Mutual employee milestones. First welcomed to the Club was new member, Jennifer Rouse, who celebrates 25 years at Vermont Mutual. Also acknowledged were Mary Gray and Rose Thompson for 30 years of service and Lisa Edson and Lisa Seaver for 35 years of contributions. In addition, two more employees, Alice Bard and Diane Couture, were both honored for their 40 years at Vermont Mutual. During the evening’s festivities, Arnold Lawson (Vermont Mutual employee from 1963 - 1999),
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announced that he will be stepping down from his role as Club President, a position he has held for 27 years. The newly elected Club President, Kevin Croteau, has been with Vermont Mutual for 27 years. Renee Bilodeau (29 years with the Company) will maintain her role as the Club’s Vice President and Secretary. Speaking at the event, Dan Bridge, Vermont Mutual’s President and CEO remarked: “It is a privilege to work with these fine insurance professionals. This event makes it clear that people can enjoy a rewarding career and offer positive lifelong contributions if they find the right home.” The “25 Year Club” is proud to have 66 members in its ranks, 43 of whom are active and current Vermont Mutual employees.