GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION
SEPTEMBER 2017
Seasons May Change, But Our Commitment to the Independent Agent Channel Remains the Same...
V
ermont Mutual is proud to have served Vermont and the New England market through the longstanding partnership with our Independent Agents. It remains our privilege to work with the finest Independent Agencies in the industry … the only place you can buy a Vermont Mutual policy.
89 State Street, P.O. Box 188, Montpelier, VT 05601 | 800.451.5000 | VermontMutual.com
Vermont Mutual is proud to sponsor the Vermont Insurance Agents Association’s new Education Center in Williston, Vermont.
Green Mountain Agent is a publication of
In This Issue: September 2017 4
Message from the President
6 Newsflash: VHSA Seeks Partnerships 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 Rodliff Alan Kinney
Staff
Features 9
Insurance Is Not A Commodity
12 Young Agent Spotlight: Jessica Fleury 17 Can You Remove the Care, Custody and Control Exclusion from a CGL Policy? 22 Sales Success: Motion Creates Emotion 25 E & O Corner
Company News 28 Acuity
Agency News 32 The Richards Group
Help Wanted
Executive Director Mary Eversole meversole@viaa.org
38 Crowley Insurance Agency
GMA Publication Design
39 Noyle Johnson Group
LONDONmiddlebury londonmiddlebury.com
38 The Richards Group
Message from the President through whether we find relief at the rule making level or with the legislature. Our award-winning education program is a key benefit that we provide for our members. We are continually expanding our offerings and are committed to providing learning opportunities for our members using today’s technology and presenting live classes with some of the best instructors in the northeast. The Young Agents Committee continues to be the beacon of how we connect our members. This dynamic group exhibits their dedication and commitment to the industry. It encourages participation from all VIAA member agencies, company partners and other supporters. It has led to increased participation in VIAA sponsored events and increase awareness of our member resources.
Change of Seasons It is my distinct honor to be the incoming president of Vermont Insurance Agents Association. The gavel will change hands in mere days. I want to thank Pete Richards for his many years of service on the board and his leadership as president this past year. In light of our ever-changing industry and the speed with which technology keeps up on our toes, the focus at VIAA remains the same in this new season: advocate, educate and connect. VIAA continues to advocate at the state level for clarity on the definition of an independent contractor. Despite a recent Vermont Supreme Court ruling, confusion and frustration remain on this issue. We will see this issue 4
We are also dedicated to helping make our roads safe in Vermont. That is why we support the Youth Safety Council of Vermont and the Vermont Highway Safety Alliance. We encourage our members and supporters to take a stand for road safety and sign the Vermont Road User Pledge. I have and hope you will to! I look forward to seeing my fellow principals at our Annual Business Meeting on September 14, at Lake Morey Resort in Fairlee, Vermont. I am ready to saddle up for the 111th Annual Convention on September 21, in Burlington as we learn from an expert about corralling cyber space to keep our agencies safe and protect valuable client information. Looking forward to a great year ahead! Erin Odell, CIC, CISR, MBA Odell Insurance Agency VIAA Incoming President
Newsflash Vermont Highway Safety Alliance Seeks Partnerships With VIAA Members To Promote Road Safety The Vermont Highway Safety Alliance (VHSA) is a network of private and public organizations working together to collect, share and use data to develop highway safety strategies integrating engineering, enforcement, emergency medical services, and education initiatives to minimize the occurrence and severity of highway crashes, and related injuries and fatalities. VHSA members include organizations like: Vermont Insurance Agents Association, AAA of Northern New England, AARP Driver Safety, Associated General Contractors of Vermont, AT&T, Co-operative Insurance Companies, Local Motion, National Highway Traffic Safety Administration (NHTSA), University of Vermont Medical Center, Vermont Agency of Transportation, Vermont Association of Police Chiefs, Vermont Department of Health, Vermont Department of Motor Vehicles, Vermont Sheriffs Association, Vermont State Police, Vermont Truck and Bus Association, Youth Safety Council of Vermont, and many more. 6
The VHSA invites VIAA members to collaborate with us to help amplify our safety messaging by placing low-profile lowmaintenance displays in dealerships’ service department waiting areas. The free acrylic display features an 8-1/2 x 11-inch poster and 3-1/2 x 2-inch cards encouraging Vermonters to go online and take the Vermont Road User Pledge, and find out more about Vermont’s roadways, as well as the latest on automobile safety and technology. The VHSA is looking forward to partnering with VIAA members on this important safety initiative, and promoting the VADA/VHSA partnership via statewide media outreach, Facebook, and on http:// vermonthighwaysafety.org/. To order your display(s) and for more information, please contact Evelyn McFarlane: Evelyn.McFarlane@ vermont.gov | (802) 595-4661.
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being independent doesn’t mean going it alone.
When you work for yourself, you make your own success. But that doesn’t mean you can’t get help along the way. That’s why Safeco offers programs and services that position you to win. From producer-development and agency-training programs to Bricks & Clicks™, Customers for Life™, and 24/7 Gold Service™ call center support, we’re there.
Reach out to your Territory Manager or Agency Specialist, or visit Safeco.com, to learn more. The audience for this information includes insurance agents and brokers nationwide and is therefore general in nature. Every agent and broker is responsible for knowing the guidelines and laws that govern rating, underwriting, and claims handling in their states. Coverages and features not available in all states; see the Product Guide(s) for details. ©2017 Liberty Mutual Insurance AP 300783 SMART2 2017/01
Feature Article Insurance Is Not A Commodity… Real Life Example #12,472: Personal Auto Insurance Flood Claim
I sometimes follow a Facebook group called Insurance Soup. This past week, one discussion centered on a TV report of an auto insurance claim denial. The background of the claim and carrier can be found at the TV station’s web site in an article entitled “Flooded Car and Insurance Won’t Pay.” The carrier is reportedly a Florida-based nonstandard auto carrier. Most of us in the industry know what “nonstandard” refers to, but the average consumer has no idea that, from a coverage standpoint alone, “nonstandard” is often a euphemism for “substandard.” Why? Because of our own industry’s fixation on price-focused advertising, as I blogged about last week. And the reality is that it is not only “nonstandard” auto carriers that use deficient policy forms, but also some of the bestknown carriers in the country. “Deficient” is a relative term. At one time, the “ISO standard” personal auto policy (PAP) was an industry standard for coverage, with some policies providing less coverage and others more coverage. Increasingly, the ISO PAP
has, pardon the pun, become the “Cadillac” of marketplace personal auto policies. Historically, PAPs have provided extremely generous liability coverage, with broad insuring agreements and very limited, specific exclusions. The reason is that public interest demands it. Given the carnage on the roads, insurance regulators have insisted that PAPs provide broad liability coverage and minimum limits to protect the public. This, I believe, is less true today, with too many regulators seemingly not vetting coverage reductions as they did in the past. As more and more carriers compete on the basis of price, at some point, they can’t get the premium any lower on the expense side. This is the focus of many of the socalled “disrupters” flooding the marketplace. Aside from their “customer experience” (aka convenience, aka “fast, easy and cheap”) and “our cool phone app goes to 11” marketing angle, their pricing premise is that they can provide insurance much more efficiently (and, thus, cheaper) than entrenched insurers. Let’s assume that assumption is true. With phone apps and limited human intervention due to reliance on “big data,” at some point insurers will operate as efficiently as they possibly can. That leaves the loss and loss adjustment expense side to address and it’s, by far, the biggest component of the bottomline premium. So, when you can’t reduce expenses any more, how do you reduce losses and loss adjustment expenses? No doubt, some of the same approaches will be used as those employed to reduce the expense ratio. However, those methods have their own costs. By far the easiest way to reduce the loss ratio is by selling insurance policies that cover less and/or engaging in more restrictive claims adjusting.
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including: • Undisclosed household residents are excluded. How many families have “boomerang” kids living at home that the agency and insurer are not aware of? • Business use of non-owned autos is excluded. Have you ever borrowed a neighbor’s car or made a business stop in a dealer loaner auto? • Business use of ANY auto is excluded. Do any agency employees ever run to Staples or the post office on agency business? And that’s where the danger lies, especially in a decreasingly vigilant regulatory environment. So, back to the claim in the TV story. According to this account: Two days later, [the insurer] made it official, sending this letter refusing to pay for the damage, in one sentence saying, “The vehicle was being used for business purposes.” Then, in another paragraph, saying Exclusion 25 says they, ‘Will not pay because of damage resulting from driving through a flooded area.’” I have not seen the policy and can’t vouch for the accuracy of the new story, but they aver that the claim was denied because the vehicle was allegedly being used for business and was driven through a flooded area. It does not appear that either of these would be excluded by the plain vanilla ISO PAP. Several years ago, I wrote an article for Independent Agent magazine called “Price Check” which gave several real-life and serious (from a 5-figure property damage claim to a multi-million-dollar liability claim) claims that were denied by inferior auto policies. The article also included a laundry list of examples of exclusions in real policies that could result in large or even catastrophic uncovered claims, 10
• Use of ANY non-owned auto is excluded. Better not drive anyone’s car but your own. • Vehicles over 10,000 pounds in GVW are excluded. Have you ever rented a U-Haul truck or an RV thinking your liability coverage extended to the rental? • Any type of delivery is excluded. Denied claims include pizza, newspapers, Mary Kay cosmetics and yes, even the delivery of insurance policies to customers by an agency producer (a real claim denial by a carrier the agency represented). • Permissive users only get minimum limits. This can apply to people who borrow your car or even unlisted household drivers (and such step-down limitations may be illegal in some states). • “Street racing” is excluded. Google “street racing” and see how often people are killed or critically injured in the process. I was personally involved in consulting on one denied claim involving a fatality. • Criminal acts are excluded or limits reduced. DUIs or even speeding tickets may preclude coverage. • Medical payments only include licensed physician fees. One insured incurred a $25,000 “life flight” helicopter
fee that would not be covered, even in part, by a policy with this exclusion. • Theft without evidence of forced entry is excluded. One insured had a four-figure vehicle theft loss denied because he left his keys in the car. • Sales tax is not covered under loss settlement. This cost one “same coverage” insured more than $2,000 out of pocket for sales tax on a replacement auto. So, the next time someone tells you that auto (or any kind of) insurance is a commodity, print out this blog post and shove it…in front of them. Please share this article with your staff. More important, share it with your customers and prospects. As a reminder, any of my blog subscribers are free to reprint my blog posts absolutely free as long as you retain
my copyright and acknowledge the source, as outlined on this page of my web site. In addition, the Big “I” has a free public online resource with tons of information you can use to educate your customers that insurance is NOT a commodity differentiated only by price and that, as their trusted advisor and advocate, you earn every single penny of the meager commission you’re paid to help them protect themselves and their families from financial ruin. Spread the word: “There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man’s lawful prey.” – John Ruskin
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Young Agent Spotlight:
Jessica Fleury, The Richards Group
She relocated to Hinsdale, NH with her Husband Stephen, where she decided to switch gears in her career to better suit the needs of her growing Family; her daughter Kailyn (13) and son Kaleb (8). Jessica started as the Receptionist at The Richards Group in 2008, and “through utilizing resources, being loyal, faithful” and working hard, she has climbed the ladder to become part of the Leadership team at the Agency. As a Licensed Agent and the Personal Lines Branch Supervisor, Jessica manages and develops her team to provide proactive solutions, exceptional service, and unparalleled advocacy. Jessica’s peers describe her as “nurturing, confident and caring”. Jessica is passionate about volunteering her time in her community and is involved with many different programs through the United Way. She also enjoys participating in school and sporting events with her children. In her spare time, Jessica loves to bake/decorate cakes and work on various crafting projects.
Jessica Fleury is a Vermont Young Agent from The Richards Group. She has been a part of the Richards Group Family since 2008 and part of the Young Agents Committee since 2014. Currently, Jessica is performing at a Leadership capacity for both her Employer as well as the YAC’s. She has recently been promoted to Personal Lines Branch Supervisor at The Richards Group. After completing her LPN program at Middlesex Community College in her home town of Lowell, MA, she went on to pursue a career in the medical field as a Nurse. 12
Jessica’s first language was Portuguese. She did not learn how to speak English until 5th Grade where she began to become fluent in English, Spanish and French. As an enhancement to her career at The Richards Group, Jessica joined the Young Agent Committee in 2014. She states “The Young Agents Committee has opened a tremendous number of doors for me and has created an opportunity for me to expand and network”. In 2016, Jessica attended the leadership conference with the YACs in Chicago and year after year has been involved and passionate about her involvement with the young agents.
Vermont Chapter of CPCU Society Announces CPCU 500 Foundations of Risk Management and Insurance Classes We are pleased to announce that the Vermont Chapter of CPCU in cooperation with Vermont Mutual Insurance Group will host CPCU 500 Foundations of Risk Management and Insurance classes Wednesdays from 4:00-6:00 at Vermont Mutual, 89 State St. Montpelier, VT starting September 13, 2017 and ending on November 1, 2017.
is not required. Students will be responsible to purchase their own books and to register for the exam at www.theinstitutes.org. The class will finish in time for you to take the exam in the next testing window, which is October 15, 2017-December 15, 2017. The instructors are volunteers from the Vermont CPCU Chapter and will review one assignment each week starting with assignment one on September 13, 2017.
If you would like to attend or know of someone who would like to, please email Garrett Martin at gmartin@ vermontmutual.com by September 1, 2017.
We will also offer the opportunity for students to call in via the conference call line if not able to attend the class in person. This class is open to all Insurance Professionals, there is no fee and membership in the Vermont Chapter of CPCU 13
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111th Annual Convention & Golf Tournament September 21 & 22, 2017 Hilton Burlington
Corralling Cyber Space SADDLE UP COWBOYS AND COWGIRLS! Join us for a rootin’ tootin’ good time. Round up your boots, wranglers, western shirts, and cowboy hats to wear and mosey on over to the Burlington Hilton. Come in your best western wear and win a prize! Approximately 300+ member agents, Young Agents, and company representatives join together to network and learn. This event is an invaluable opportunity for insurance professionals of all ages, titles, and experience levels and is a must-attend for all independent agents. See y’all real soon!
REGISTER NOW FOR VIAA’S LARGEST AND MOST ANTICIPATED EVENT OF THE YEAR! www.viaa.org
Designations of Distinction In Vermont & New England
Click Here to Choose a Location Near You and Register Today!
The Certified Insurance Service Representative (CISR) designation program is a nationally recognized education program directed at a very particular job description in the agency—the customer service representative. CISR COURSES MAY BE TAKEN FOR CE CREDITS FOR THOSE NOT SEEKING THE DESIGNATION.
CISR Elite status now offers an even higher distinction for those eager to gain greater skills and knowledge of insurance service and sales.
The CIC Program is for agency and company personnel -- owners, producers, agents, account managers, brokers, underwriters, and marketing or claims personnel. Participants should be licensed agents, brokers, adjusters, or solicitors; or have at least two years of full-time experience in the insurance industry or as a risk management professional; or have served for at least two years as a full-time insurance faculty member at an accredited college or university. CIC COURSES MAY BE TAKEN FOR CE CREDITS FOR THOSE NOT SEEKING THE DESIGNATION. ATTENDANCE REQUIRED FOR ALL DAYS TO RECEIVE CREDIT FOR INDIVIDUAL CLASSES.
James K. Ruble Graduate Seminars are designed specifically for CIC Designees and feature a variety of topics along with real-life applications in a seminar that is designed to satisfy the CIC annual update requirement. YOU MUST BE A CIC OR CRM AND A DUES-PAYING MEMBER OF THE SOCIETY TO ATTEND A RUBLE SEMINAR.
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Feature Article Can You Remove the Care, Custody and Control Exclusion from a CGL Policy? By Chris Boggs An agent starts noticing the following requirements becoming more common for their contractor clients: 1) Contractor shall delete the Care, Custody and Control exclusion from their commercial general liability policy. The agent is not aware of any underwriter who is willing to do this, and always recommends that clients take exception to this clause.
2) Contractor’s GL coverage shall include contractually assumed defense costs in addition to policy limits. The only solution the agent can think of is recommending that the indemnitee agrees to all the conditions in the second paragraph of the CGL’s Supplementary Payments section. 3) Contractor shall advise owner if the GL aggregate limit is reduced because of payment of claims. The agent sets up all contractors CGL policies with the Aggregate Per Project endorsement, and recommends that clients inform the owner that this clause is unnecessary because of the endorsement. Q: How should we handle these contractual requirements? A: 1) I haven’t seen this request, because the Care, Custody and Control exclusion is a personal property exclusion rather than a real
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property exclusion. You’re correct—there is no way I’m aware of in the ISO world to remove this exclusion from the CGL policy. The only way to satisfy this request would be with some type of bailee coverage (an inland marine form).
thing with the per-project aggregate, but I would recommend against telling the client the provision isn’t necessary. They are still required to comply with the contract even though you’ve done a good job with coverage.
2) Evidently the lawyers don’t know how to draft the contracts. Again, you’re correct—the policy already addresses this request. If they aren’t additional insureds, all that is required for such indemnitee protection is to add them to the indemnity agreement and agree to specific requirements when they turn defense over to the lower tier/named insured. If they are additional insureds, it’s not necessary. But don’t address it on the certificate of insurance.
Remember, too, that the per-project aggregate applies to ongoing operations only—not completed operations. That means the lower tier may still need to address a potential issue with the upper tier if other completed operations losses have lowered the aggregate. This is an ambiguous area in the contractual wording because it references “the GL aggregate limit,” but there’s more than one GL aggregate limit— there’s the general aggregate, and there’s the products-completed operations aggregate.
3) The contract doesn’t require you to notify anyone; the responsibility belongs to the lower tier. Don’t volunteer to do anything or place anything on the COI. You’re doing the right
Chris Boggs is executive director of the Big “I” Virtual University (VU).
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Are you ta king a d va nta g e of your m em b ership ? Big “ I” Professiona l Lia b ility
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Big “ I” Ma rkets
www.b ig im a rkets.c om Exclusively available to Big “I” members, IIABA’s online market access program features specialty/niche coverages, program business and hard-to-find markets. Unlike similar programs, there are no registration fees, no minimums, and you own your expirations. In many states, additional markets are available through Big “I” Eagle Agency.
Big “ I” Flood
www.ind ep end enta g ent.c om / Flood Big “I” endorsed Selective Insurance has been a Write Your Own carrier (WYO) for the National Flood Insurance Program (NFIP) since 1984 and is one of the top 10 writers of NFIP policies. Selective makes writing flood insurance easy through quality customer service and superior technology. Together, Big “I” Flood and Selective’s relationship helps deliver members an unparalleled flood program by offering state-of-the-art processing, dedicated underwriters (not a TPA call center) and localized flood Territory Managers providing you with the knowledge and expertise needed to effectively speak flood.
Big “ I” Retirem ent
www.ind ep end enta g ent.c om / Retirem ent Big “I” Retirement Services, LLC has partnered with national firms to provide a unique member-only plan that simplifies the plan sponsor’s administrative responsibilities while limiting your fiduciary exposure. The Big “I” MEP 401(k) Plan is sponsored by Big “I” Retirement Services, LLC. It is a multiple employer plan also known as the MEP, which is a great way to lower your overall retirement plan costs while receiving consulting, helpful educational tools and low cost investment options. By partnering with Mesirow Financial, a 3(38) fiduciary and MVP Plan Administrators, a customer service oriented record-keeper, the Big “I” MEP 401(k) Plan is designed to maximize cost savings and our unique association design.
Big “ I” Em p loyee Benefits
www.ind ep end enta g ent.c om / Em p loyeeBenefits The Big “I” Employee Benefits program provides full service group benefits for our member agents. Our program is underwritten by The Guardian Life Insurance Company of America, a multi-line insurance group with many years of experience in the business and administered by a dedicated service team just for Big “I” Members. Offering Group Life, Group Short- and Long-Term Disability, Group Dental and Group Vision, the program offers varying lines of coverage options to meet the diverse needs of our members and also provides guaranteed issue with certain requirements being met. Whether you are a new member or an existing one, we quote and add coverage on a continuous basis.
Big “ I” Persona l Um b rella
www.ind ep end enta g ent.c om / RLI RLI’s PUP stands atop the existing homeowner and auto insurance to provide an extra layer of personal liability protection for the insured and their family. With RLI’s PUP program, the insured can maintain their auto or home coverage with any company they choose, provided they agree to maintain the mandatory minimum underlying coverage limits. Limits up to $5 million ($1M in NM) and UM/UIM coverage available.
Big “ I” Hom e Business
www.ind ep end enta g ent.c om / Hom eBusiness RLI’s Home Business Policy provides affordable coverage for those people who operate small home-based businesses. Insureds often believe their existing homeowners or apartment-dwellers policy will cover any loss or damage to their business equipment, furniture and supplies in the event of fire, theft or other catastrophe, when in fact, those policies usually explicitly exclude coverage for any business exposures on their premises. Partner with us to offer this important coverage to your clients.
Big “ I” Business Resourc es
www.ind ep end enta g ent.c om / Ad va nta g e Enjoy member discounts for a variety of services to assist in managing your agency. Caliper (personality testing and human resource consulting); DocuSign (eSignature); UPS (express delivery); Mines Press (printing); Virtual Risk Consultant (agency checklists and marketing tools); Hertz (rental car service); Big “I” Career Center (insurance jobs board) and more. Members are also encouraged to connect with Insurbanc, the FDIC insured bank founded by agents for agents. Visit www.insurbanc.com.
THE MEETING SPACE YOU’VE BEEN LOOKING FOR
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Everything you insure is on your shoulders
Who do you trust to have your back? VIAS offers the most prestigious Errors & Omissions carrier(s) in the country: Westport Insurance Company & Utica National Insurance Group
For a quote or for more information contact Helen Collins at hcollins@viaa.org or 1-844-609-1481
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VIAS is a subsidiary of Vermont Insurance Agents Association viaa.org
Sales Success: You Do You By Phil Schuman
We humans are hard-wired to mimic those around us either to feel a sense of connection and belonging or to emulate and adopt the traits of those we respect and admire. Although copying others and learning from them is how we grow as individuals, it’s also critically important for success in selling to simply be ourselves. From the moment we’re born we mirror the people staring at us. Babies will often stick their tongue out if someone does it first to them and later in life spouses often start to copy each other’s phrases, gestures and expressions. It’s how we connect, learn and grow. In selling there is a wealth of information from accomplished salespeople and business experts on how to be more successful. Social media has made it easy to follow many different thought leaders and influencers who we admire. Adopting some of their ideas or tips and making them your own can be highly valuable. But what happens all too often and what never ends well is when someone will actually try to copy the influencer’s personality thinking a manufactured carbon copy will make them successful too. The reason it never works out well to imitate someone else in selling comes down to a single word: trust. People buy from those they trust and to gain a prospect’s trust you need to show them your authentic self. We can all tell when someone is not being genuine with us and it’s the fastest way 22
to get a prospect to decide not to buy. Relationship building in sales is a process of getting the prospect to first know us, then like us and finally trust us. And if we’re not being ourselves, there are too many barriers in the way for the prospect to feel a genuine sense of connection to us and to the product we’re presenting. As salespeople we often feel the pressure to please everyone thinking this will help get them to like us and buy from us. But think about the times when you’re desperately trying to get someone to like you or be impressed by you. It takes you out of being your genuine self and it never comes across the way we want. Then think about the times you’re just being yourself and how things just seem to click into place. People pleasing hides the real you. It’s far better to stick to all the great gifts you were given and use those authentically to relate the story of you and your product to your prospect. We all have different gifts that we can use in the sales process so the trick is to be self-aware enough to know what areas we’re best at and use those gifts to excel in our selling skills. Trying to be someone else is not only incredibly exhausting, it also will rarely lead to success. As Stephen Covey has said: “A life of pretense is a tortuous task.” Doesn’t it sound much easier to just be ourselves? After all, we already have all the gifts we need. We merely have to find the confidence to let them shine.
Once we do, the results are truly empowering and life-changing. This simple change could be the greatest challenge but also the greatest reward in our lives. Just simply to recognize the gifts we have hidden and let them shine to benefit the lives of others. As Coco Chanel said: “Beauty begins the moment you decide to be yourself.” Experts in our field on social media and in books are great resources on ideas to learn from. But they must be re-framed within the context of our own personality for them to work effectively and to show our best selves. All we need to do is find the courage to believe we can achieve all we desire with the gifts we already have. Daring ourselves to have the conviction to believe in our potential is the battle. Once we give ourselves that permission, our
whole life changes. As the 14th century philosopher Saint Catherine of Siena said: “Be who you were created to be, and you will set the world on fire.”
Happy Selling! The Schuman Group empowers and inspires sales teams with proven strategies and real world tools through sales training, coaching and consulting services. www.schuman-group.com
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Is the Carrier Providing All the Coverages You Requested? Errors & Omisssions: Risk Management Alert By Curt Pearsall, CPCU, AIAF, CPIA President – Pearsall Associates, Inc. and Special Consultant to the Utica National E&O Program In your efforts to grow your business, your agency is probably actively soliciting new business opportunities. This will eventually lead to sending new business applications to your carriers and wholesalers for competitive quotes and, hopefully, landing those accounts. The applications will re ect specific coverages, including modi cations to endorsements, that you believe will be needed based on your exposure analysis. As the carrier proposals arrive, suppose you determine that the quoted premiums look great. Is that the only extent of your focus? Are you assuming that each proposal provides all the coverages requested? Do you believe that if the carrier could not provide certain requested coverages that it would have told you? If the answer to any of these questions is “yes,� there are some potentially signi cant errors and omissions (E&O) rami cations. To prevent a major headache, every agency should have a detailed approach to comparing the coverages requested versus those provided.
Perform a Comparison The best place to start is to presume the carrier proposal does not exactly meet the coverages requested on the application. Use a spreadsheet or checklist to carefully compare the carrier proposal to your requested coverages. Ideally, the producer working on the account should be involved because who would better know the coverages needed to sell the account? It is possible that the carrier added an endorsement that must be noted. This could include issues such as a Protective Safeguards Endorsement or a Professional Liability Exclusion. If the application was sent to the wholesaler market, the coverage issues could be more signi cant. The excess and surplus (E&S) market is known for excluding exposures they are not willing to cover and for placing signi cant limitations on coverages. This comparison would identify any missing pieces and serve as the basis for dialogue with the underwriters to resolve the issues. Since this process could take some time, agencies should plan on securing the carrier proposal well in advance of the date they will be meeting with the prospect to propose the account. The carrier proposal will likely reference speci c endorsements. Unfortunately, the names of these endorsements may not make it clear exactly what coverage is being offered. It is highly suggested that specimen forms be secured and reviewed. Prevent a Disconnect Performing this comparison is also key when it comes to developing the agency proposal. If a comparison is not done, there is greater potential that the agency proposal may re ect coverages that were requested and presumed included. What if some of those coverages requested were not included by the 25
We Want You! South Burlington, VT NFP, a leading insurance broker and consultant that provides employee benefits, property & casualty (P&C), retirement, and carrier? Your proposal and could be incorrect. individual insurance wealth management This could be extremely damaging to the solutions is currently seeking an experienced agency if aLines subsequent problem develops. Personal Producer to advance his or her career as a Commercial Lines Producer The for reviewing proposal in itsresponsibility South Burlington office. the This position to determine how well it provides what was is responsible for generating new sales for requested falls squarely on the retail agency. all Commercial Lines policies and requires It makes no difference if you are dealing with the ability to work closely with clients, a standard carrier or a wholesaler. In addition, customertoservice representatives, producers, contrary the belief of many, this issue is not management, and insurance carriers. solely a Commercial Lines account issue. The It work environment is professional and very can occur on Personal Lines accounts as well. supportive. The ideal candidate should have excellent years of There are interpersonal many situationsskills, where{2+} there experience, and ability to adapt to emerging can be a disconnect between the carrier technology. They will be supported with commercial lines training and mentoring for prospect/planning, sales calls, proposals and education. A property and casualty license is required. NFP offers a highly competitive compensation and benefits package.
proposal and your the application. Please send resume to:The only true way to uncover the magnitude of the issue Dan Rodliff is to perform a comparison. Make sure Vice President, NFP P&C your agency has this procedure in place.
PO Box 2243 South Burlington, VT 05407 Or
Email: dan.rodliff @nfp.com
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Company News Acuity Recognized for Outstanding Operational Performance For more information, contact: Paul Miller, Manager - Communications Acuity Insurance Phone: 800.242.7666 Ext. 1143 Fax: 920.458.1618 paul.miller@acuity.com www.acuity.com Acuity earned a 2017 Stakeholder Team Accomplishment Recognition™ (STAR) Award from independent financial analysis firm Demotech, Inc., putting the company among the top 1 percent of insurers nationwide. The Demotech STAR Award recognizes insurers whose performance benefits all stakeholders, including agents, customers, employees,
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consumers, regulators, and reinsurers. Acuity was honored with a STAR Award for exceeding performance criteria and maintaining outstanding financial strength and stability, profitability, claim handling, and compensation to employees and agents. Nationwide, just 25 of nearly 3,000 property-casualty carriers evaluated qualified for a STAR Award. Demotech, Inc. is an independent financial analysis firm located in Columbus, Ohio. Since 1985, Demotech, Inc. has been serving the insurance industry by providing consulting services as well as accurate and proven Financial Stability RatingsÂŽ (FSRs) for property and casualty insurance companies of all sizes. Acuity, headquartered in Sheboygan, Wisconsin, is a property and casualty insurer that operates in 25 states, generates nearly $1.4 billion in revenue through 1,000 independent agencies, and manages over $4 billion in assets. Named one of the top 10 large companies to work for in America, Acuity employs over 1,200 people.
Company News Steve Jaberg Named to Acuity Board of Directors For more information, contact: Paul Miller, Manager - Communications Acuity Insurance Phone: 800.242.7666 Ext. 1143 Fax: 920.458.1618 paul.miller@acuity.com www.acuity.com Steven J. Jaberg (Steve) is named to Acuity’s Board of Directors. Steve retired as CEO of the Benevolent Corporation Cedar Community after serving in that position for 25 years and working in the organization for 32 years. Cedar Community is a large not-for-profit retirement and healthcare community headquartered in West Bend, Wisconsin. “It is a great responsibility and true honor to serve on the Acuity Board of Directors. Dedicated to its policyholders, agents, staff, and benefiting the wider community, Acuity has a rich tradition of service and quality. I will be joining a Board of Directors who have shown their intent to support, sustain, and continue to grow Acuity as an industry leader,” Steve said. Steve is a Wisconsin native, having graduated from Sheboygan North High School. He received his Bachelor of Arts degree from the University of Wisconsin-Eau Claire and his Master of Science in Healthcare Administration from Cardinal Stritch University in Milwaukee. Having served as Board President of LeadingAge Wisconsin, an association of notfor-profit senior retirement and healthcare headquartered in Madison, Wisconsin, Steve went on to serve two terms on the LeadingAge National Board of Directors in Washington, D.C. Active
in local communities, Steve has served as President of the West Bend Rotary Club, on the Lakeland University Board, and on the National Exchange Bank Trust Board. He also received a scholarship, given by the Milwaukee Harvard Club, to study non-profit leadership. Steve lives in Kohler with his wife, Susan, who is retired after serving for many years as Principal of the Kohler Public Elementary and Middle Schools. Acuity, headquartered in Sheboygan, Wisconsin, is a property and casualty insurer that operates in 25 states, generates nearly $1.4 billion in revenue through 1,000 independent agencies, and manages over $4 billion in assets. Named one of the top 10 large companies to work for in America, Acuity employs over 1,200 people. 29
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Agency News The Richards Group Expands Employee Benefits Practice – Hires Deb Loughlin August 2017 (Burlington, VT) - The Richards Groups is pleased to announce that veteran Employee Benefits Consultant, Deb Loughlin, has joined The Richards Group (TRG) team https:// therichardsgrp.com/benefits/team . Loughlin has been in the industry for 20 years and held management positions in Vermont businesses for over 30 years. “We are excited to have Deb join our employee benefits team. She brings a breadth of industry knowledge, leadership experience, and a strong reputation with local employer groups. She and I have long looked for an opportunity to work together”, says Tom Scull, Vice President of Employee Benefits. After many years working inside a family owned business, Deb co-founded The Benefit Group of New England in 1997, merging it into a national firm in 2011. Her roots are in her passion for the development of companies’ long-term benefit strategies that support sustainable budgets and promote well employee cultures. Early in her career, Deb developed a desire to support the health of Vermont companies and spent time working with legislators, served on the board of Associated Industries of Vermont as well as industry advisory boards. In the last several years, Deb has dedicated time to the American Heart and Stroke Association; now into her forth year working on the Go Red for Woman Executive Leadership Team, two of which she acted as co-chair. Additionally, she is being honored with the Chrystal Heart Award in early 2018 in appreciation.
have an incredible amount of talent and a culture that is very supportive of each other and TRG clients. Tom and I have always had a synergy and it’s fantastic to finally see that energy converge”. Established in 1867, The Richards Group is the region’s leading insurance, employee benefits and retirement plan services firms, serving over 15,000 clients in New Hampshire, Vermont, Massachusetts and Florida. The firm currently has 12 offices located in New England. For more information, please visit www.TheRichardsGrp.com.
Deb will be based out of our Burlington office and can be reached at (802) 309-9650 or via email Deb commented “I am very excited about the op- at dloughlin@therichardsgrp.com. portunity to work with Tom and his team; they 32
Agency News Tammy Pollard of The Richards Group receives Award of Excellence
Manchester (August 2017) - It is with much enthusiasm that we announce that Tammy Pollard of The Richards Group, Manchester has been awarded the 2017 SafeCo Award of Excellence for the Northeast Region. A total of 279 agents across the United States have been awarded this honor. This elite group of agents possesses superior underwriting skills and meets strict criteria, including membership in Safeco’s Premier Partner program, appointment tenure and are recognized
for their experience in the industry and exceptional customer relations skills. The Award of Excellence is designed to honor strong, long-term agency partnerships and recognize those who have demonstrated a consistent effort in identifying the right business. Recipients of Safeco’s Award of Excellence have displayed a track record of actively partnering with Safeco to provide an exceptional customer experience. Safeco deeply values this relationship and their commitment. “The Award of Excellence agents were nominated because they epitomize the definition of partnership,” said Patricia Hoffman, a personal lines senior underwriter for Safeco. “It is a relationship of mutual respect and professional expertise”. The Richards Group, provides local Insurance, Employee Benefits and Retirement Plan solutions to clients throughout Vermont, New Hampshire and Massachusetts. The firm was named one of the 2017 “Best Places to Work in Vermont” by Vermont Business Magazine and the Vermont Chamber of Commerce. For more information about the firm and its capabilities, please visit www.therichardsgrp.com. 33
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Agency News The Richards Group Expands Human Resources and Leadership Development Services – Rehires Ross Gibson July 2017 (Norwich, VT) - The Richards Group (TRG), a Vermont based professional services firm specializing in insurance, employee benefits and retirement plan consulting, is pleased to announce that Ross Gibson has rejoined the firm effective immediately. Ross will continue to build the Human Resources and Leadership Development Services capabilities of the firm as a key component of the Employee Benefits division. Ross previously worked for TRG but left briefly in 2016 to help establish a Human Resources function for a TRG client. “I am very excited to have Ross back at TRG” stated Tom Scull Vice President, Employee Benefits. “As we continue to expand the service offerings to our clients, we increasingly have realized the need many of our clients have for human resources and management training support” Tom continued, adding “and Ross’ thirty plus years of senior level HR and training experience compliments the team exceptionally well”. Ross will continue to work with clients in assisting in their leadership development and human resources offerings. Ross works directly with executives and leadership teams in delivering widely acknowledged training and development programs that are aimed at increasing leadership effectiveness. As Ross has stated many times “any organization is only as strong as its leaders”. Additionally, Ross consults on a variety of HR issues including retention strategies, succession planning, recruitment and many more. Prior to having previously worked for TRG, 36
Ross was Senior Vice President, Global Human Resources at World Learning, a global academic institution and Non-Governmental Organization with over 1,300 employees. Over the past 30 years working in the Human Resources field, Ross has held several senior level positions including Vice President, Learning and Organizational Development at Charles River Labs and Vice President, Human Resources at both American Superconductor and Cambridge Neuroscience, Inc. In addition, Ross is a certified facilitator in several of the award-winning and internationally recognized Franklin Covey courses including the 7 Habits of Highly Effective People. Ross is past president of the Northeast Human Resources Association and is currently an at-large member of the Vermont State HR Council. Locally in Brattleboro, Vermont, Ross is on the boards of the Brattleboro Area Chamber of Commerce and the Strolling of the Heifers as well as an active member of the Sunrise Rotary Club of Brattleboro. Ross can be reached at (802) 451 6445 and rgibson@therichardsgrp.com.
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HELP WANTED
Personal Lines Insurance Agent The Crowley Agency has been in business since 1947 providing excellent service and products to our many loyal customers. We currently have an open position for a licensed personal lines agent with the opportunity to grow into commercial lines. The ideal candidate would be personable, possess excellent communication skills and really enjoy helping people. This is a full time postion with office hours and basic computer skills are required. We offer competeive salary, commission & benefits based on experience and qualifications. Please send your resume to Gail McKenna at gailm@crowley agency.com For more details regarding our products and the companies that we represent, please visit our website: CrowleyAgency.com
Recognized in 2016 and 2017 as one of the Best Places to Work in Vermont, The Richards Group is an independent, full-service insurance and financial services agency who has been serving the communities of the tri-state region since 1867. We are always looking for highly motivated individuals who have excellent customer service and relationship building skills. The Richards Group offers a competitive salary commensurate with experience as well as a comprehensive benefits package. We are actively recruiting for the following positions: • Commercial Lines Department Manager, Brattleboro • Commercial Lines Sales Assistant, Brattleboro • Commercial Lines Sales Producer, Rutland
• Commercial Lines Account Manager, Middlebury • Personal Lines Account Manager, Ludlow
• Employee Benefits Account Manager, Rutland For job description and requirement please visit https://therichardsgrp.com/about/careers/ Submit Cover Letter and Resume to jobs@therichardsgrp.com
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HELP WANTED
HELP WANTED: PERSONAL LINES QUOTING SPECIALIST
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• •
Must be able to function in a busy & competitive environment
Position requires good communication skills, computer knowledge &
Noyle W. Johnson Ins. - Attn.: Betty Durkee PO Box 279 Montpelier, VT 05601
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