HIN 2020-2021 5th Edition

2020-2021 5th Edition

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SCOTT BAIN Manager Regional Safety Services | Texas Mutual Insurance Company

Me e t S COT T – a D R I V I N G FO R C E b e hin d SA FE T Y, D I V I D E N DS a n d ha ppi e r C LI E N T S. Scott Bain knows all about going the extra mile. He visits workplaces, evaluates safety programs and provides custom recommendations that make our policyholders safer. Happier, too. That’s because Texas Mutual policyholders earn dividends for avoiding accidents. Since 1999, we’ve distributed more than $3.4 billion to safe Texas businesses, including $330 million in 2021. Scott is just one of the many dedicated professionals we’re proud to have working behind the scenes for our agent partners.

To learn more, visit texasmutual.com/yourteam.

© 2021 Texas Mutual Insurance Company | Texas Mutual Insurance Company is rated ‘A’ by A.M. Best Company.

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Houston Insurance News Committee Spotlight What do we do? » » » »

Organize and collect content for our bi-monthly digital magazine Keep our membership up to date on current events and information in the industry Spotlight and promote our members Seek advertisers and support from the industry

Welcome A committee who loves to share news, the HIN Committee publishes our bi-monthly digital newsletter with rich content aimed at informing our members of upcoming & past events,

MEETING DETAILS

educational & legislative information, industry updates, acknowledgment of achievements of people in the industry along with articles relevant to current topics. Make plans to join us at our next meeting. See you soon!

WHEN: Monthly @ 5:30 PM WHERE: Bayou Sports Bar EMAIL: aweimer@hiallc.com

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Table of Cont

03 Committee Spotlig 05 Events & Educatio

Features 07

Executive Director’s Message

20-26

Charity Bowl

28-35

Sporting Clays Invitational

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Have you Heard?

11 Affiliate Spotlight

12 July Industry Lunc

13 Legislative Update 14-15 CPCU Update 16 President’s Messa 17 HIP 19 IIAH Poll 27 It’s the Law 40 E & O

42-43 Coverage Spotl 44 In Memoriam

46 Who has the Last W

Special Items

48 Business Card Ads 48 Advertise Index

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Upcoming events September Industry Luncheon September 22, 2021

2nd Annual YIP’s Charity Corn Hole Tournament September 22, 2021 Fishin’ With a Mission October 14-15, 2021 November Industry Luncheon November 11, 2021 YIP’s Axe Throwing November 18, 2021

Education Member’s Webinar September 16, 2021

Look for more updates at: www.iiah.org 5

Committees of 2020-2021

Committees

are what breaths life into our association. With 9 active committees there are at least 100 people actively serving the association with their unique skills. We are always looking to put your skills to use to further drive the association’s mission forward. No matter what your skills are, or what you are passionate about, we likely have something of interest to you. The end result is to better the industry we all serve. Join a Committee today and become part of the mission.

Charitable Projects/ Fire Prevention Chairman: Sarah Beck Vice Chairman: Tasha Stolte Education, I.T., CE Chairman: Katrina Masek Vice Chairman: Michelle Dennis Houston Insurance Day Chairman: Ashley Newton Vice Chairman: Carmela Cancino Legislative Chairman: Kyle Dean IMPACT Chairman: Mickie Comiskey Vice Chairman: Lea Brimberry Membership Chairman: Liz Brock Recreation Chairman: Amber Stevenson Vice Chairman: Carisa Cole Young Insurance Professionals Chairman: Derek Pierce Vice Chairman: Grant Pierce PR/Media Matters Chairman: Scott West Social Media Chairman: Daphne Clark Vice Chariman: Cassie Shanks Houston Insurance News Chairman: Amy Weimer Vice Chairman: Cassie Shanks

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August 26 | 2021 Dear Friends, As we come to the end of our fiscal year, 2021-2021, I am feeling very grateful! Grateful that this year of craziness is ending, grateful for our membership, grateful...

Grateful for our boards, grateful for our staff and grateful for the many things that we take for granted.

This year has been unlike any other for both you personally and for your Association. We have had to navigate in uncharted waters, but we did and we made it to the other side safe and sound! Even though we had to take a break from some of our activities, we were able to hold as many as we could and allow those that could attend a welcome relief from their COVID filled days. More than one person has told me what a welcome relief it was to be able to attend an IIAH event and feel like “normal” again, at least for a few hours.

I am grateful for our membership, both Agencies and Affiliates. Without you, what we do at the Association would not be possible. You guys stepped up in a big way when you could and for that the

entire Association will forever be grateful. You got us through this very difficult year with only minor distractions from our “normal” routine. We don’t tell you THANKS enough, so I wanted to do it again now!

Grateful for our Boards.

IIAH is very fortunate to have wonderful individuals that serve on both the Executive Committee as well as our Board of Directors. These folks give of their time and talents on a volunteer basis to keep your Association heading in the right direction. Without their leadership, we would not be where we are today! Thanks especially to Chris Goff, our President.

This has been a very unnormal year and Chris led us through with lots of experience, thought and insight. Thanks Chris!

Grateful for our staff. As you know, this year was unlike any other for your staff. We are very thankful that everything has turned

out OK and that we are back together as one big team!

It made me appreciate Sandra, Renee and Ayla even more than I already did, if that is even possible!

Grateful for things that we take for granted. I am thankful that those things that we just assumed would happen or that were very ordinary, are now special.

Committee meetings, luncheons, HID, events and the like were just ordinary in 2019-2020. This year brought a special feeling that we were able to get together in person for even something as minor as a staff meeting!

As I wrap this up, THANKS to all of you for “weathering the storm” of COVID and keeping the Association moving forward in our mission. We couldn’t do it without you!

David Wuthrich IIAH Executive Director

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Executive Committee Chris Goff,CIC, LUTCF President Jim Drew,ARM, CIC, CRM President Elect Jason Nybakken Vice President Adam Harris Treasurer David Wuthrich Executive Director Stuart Ray Immediate Past President

Board of Directors Robbie Darnell Holly Bozant Tom Fitzpatrick Jason Knecht Tony May Ryan Moorehead Jesse Sanchez Wes Weatherred Darrell Wolfe Susan Zipper

Our Staff Executive Director David Wuthrich Sr. Managing Director Renee Stager Managing Director Ayla Benavides Communications Sandra Greer

New Members New Agency Members Four Oaks Insurance Group

New Affiliate Members Frank Winston Crum Insurance

Annual Sponsors Titanium Elite Sponsors Imperial PFS Burns & Wilcox, Ltd. CRC Group

Platinum Partners for Excellence Lighthouse Property Insurance Corporation RT Specialty Texas Mutual Insurance Company UFG Insurance WSG Specialty Underwriters

Gold Patron Sponsors

AFS/IBEX A Division of MetaBank Chubb CNA Insurance Companies Delta General Agency Skyward Specialty Insurance WRIGHT Flood

Office 7700 San Felipe, Suite 310 Houston, Texas 77063 P: 832. 769.4666 F: 832.324.3503 www.iiah.org

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Brookwood Communuity This year IIAH decided to dedicate all charitable efforts to three benefactors, Brookwood Community, Camp Hope, and Company Onstage. This edition features Brookwood Community.

Brookwood Community is a Godcentered educational, residential, and entrepreneurial community for adults with disabilities. Through the Grace of God, Brookwood Community provides an educational environment that creates meaningful jobs, builds a sense of belonging, and demands dignity and respect for adults with disabilities.

Serving our Community

Its purpose is to provide opportunity through education so that Brookwood citizens will: • Acquire meaningful job skills and hold real jobs in the Community’s own business enterprises • Experience the pride that accompanies the ability to contribute to one’s own support • Grow socially, emotionally, and spiritually Learn More | Brookwood Community

our charitable benefactor

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Affiliate Spotlight

Frank Winston Crum Insurance Frank Winston Crum Insurance is a commercial carrier founded in 2003, specializing in reliable and affordable workers’ compensation and contractor general liability. Headquartered in sunny Clearwater, Florida, we serve 37 states through an exclusive network of independent agents and an affiliate relationship with FrankCrum, a professional employer organization (PEO).

As a privately-owned company, we have the autonomy to see beyond profits and to adhere to a simple but profound principle: We do what’s right for the right reasons. This core commitment is evidenced in our approach to both agency partners and policyholders.

We value our agency partners’ expertise and market knowledge, and we show it by investing in their success. Our staff and underwriters stand ready to provide training, sales support,

and help closing business. From quoting and policy issuance to servicing, we harness the power of technology to streamline their experiences. Plus, we provide ready access to leadership, enabling our agency partners to have a voice in our company.

We strive to be creative and agile in support of our policyholders, helping them to build stable foundations for long-term success. Unlike other insurance companies, we have an appetite for start-ups and no-prior coverage employers. And, with a safety-first approach, we help our policyholders reduce workplace accidents and manage their claims with care.

Houston native, Karla Samora, represents Frank Winston Crum in the Greater Houston area. To learn more about FWCI, you may contact her directly or or visit our website.

CONTACT | Karla Samora

Phone: (281) 793-0215 Email: KarlaS@frankcrum.com Website: www.FWCrumInsurance.com

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July Luncheon The July luncheon was held at Maggiano’s with over 50 people in attendance. The numbers keep growing as more and more people feel comfortable with the new normal. We even went back to family style serving at each table and everyone seemed to like that! We were scheduled to have the Houston Fire Department awards during this luncheon, but were unable to attend due to a last minute conflict.

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Industry Networking We will be sure to reschedule them so that everyone can come out and recognize the great work that our Firefighters do in our communities. David Wuthrich, our Executive Director, gave an update on everything IIAH. He spoke about the difficulties of the previous year and the hopefulness of the great year to come.

Please join us for our September luncheon which will feature the Installation of New Officers and our Legislative Appreciation.

Your IMPACT dollars – where do they go? Well, they help our State PAC to look out for us. See below for a very important bill that passed, although amended but 2 key pieces were retained.

The Texas Legislature regularly tweaks insurance rules, policies, and protocols. Some of these changes benefit independent insurance agencies; some threaten them. IIAT’s mission is to defeat bad bills and pass good bills into law.

HB 19 by Leach – Priority bill which would help curb the “nuclear verdicts” we are seeing in commercial auto claims in Texas. The final bill was not as comprehensive as the original bill, but the two key pieces of the bill were retained, however in different ways. First was the paid vs. incurred provision which was to reign in the outrageous charges that are often a “white herring” of what is actually paid by the claimant. This will be covered as a separate item under SB 207. Secondly, under this legislation, a trial will be bifurcated, or split, into two phases.

In phase 1, the facts of the incident are

determined, and fault is established.

One important provision is that in phase 1, the driving record and hiring practices can be used to determine negligent entrustment of the vehicle by the insured. It will be imperative that agents advise their clients to adhere to strict hiring practices to avoid poor practices be used against them in court.

If an insured is found to be liable, then the second phase of the trial begins. In this phase, the determination of award is ascertained. All sorts of additional information may be entered into the second phase, including prior claims history, safety records, and a multitude of other information.

To read more about what bills passed and how they affect YOU, the insurance professional, go here: Legislative Issues | IIAT

Legislative Update

IIAT Government Affairs

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CPCU WEBINARS

Upcoming Events CPCU 2021 | SEPTEMBER - DECEMBER

September Live Seminar and Virtual Webinar | Jeffrey D. Lindner Director/Meteorologist Harris County Flood Control District Houston Racquet Club Thursday, September 16, 2021 11:30 AM Jeffrey D. Lindner Director of the Hydrologic Operations Division and Harris County meteorologist, implements regular communication with multiple agencies, elected officials, and media partners during episodes of severe weather. He also oversees the operation of the District’s flood operations, the flood warning system, and flood forecasting efforts and will share information about Houston and Harris County’s flood history and the challenges faced in managing and controlling future flooding throughout the area. Prevent loss of life and property,” he stated.

REGISTER

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October Our 2021 Conferment Ceremony will be held on Tuesday, October 19 at 11:00 am at Houston Racquet Club, 10709 Memorial Drive, where we will honor 35 individuals who have completed the series of courses, national exams, ethics, and other requirements to earn the Chartered Property Casualty Underwriters professional designation. Please reserve your seat and plan to attend to recognize these insurance professionals who have committed to attain excellence in their craft and have been invited to join the prestigious Chartered Property Casualty Underwriters Society – Houston Chapter.

Register | https://houston.cpcusociety.org/

November The chapter is planning an Education Day on Tuesday, November 16 10:00 AM - 1:30 PM featuring an on-site virtual CE Ethics presentation by RIMKUS’s Denver-based Rob Foster and including a social luncheon followed by a live presentation at Houston Racquet Club.

Details to follow.

December The final chapter event for 2021 will be an inperson social event, hopefully to celebrate the end of a challenging and socially distanced year.

University of Houston Board of Directors Marilyn Davis College of Business Insurance and Risk Management Center The University of Houston-Downtown offers a BBA degree in insurance and risk management that includes six of the eight courses required for the CPCU designation.

Virtual Info Sessions are available to learn about fall enrollment and ask questions on the below dates and times.

TUESDAY, SEPTEMBER 14 2:00 PM WEDNESDAY, SEPTEMBER 22 7:00 PM TUESDAY, OCTOBER 12 2:00 PM WEDNESDAY, OCTOBER 20 7:00 PM

Learn More

Contact Insurance and Risk Management Center Director Priscilla Oehlert Phone: (713) 226-5522 Email: oehlertp@uhd.edu

PRESIDENT Judith Smalls, CPCU, CIFI, AIC PRESIDENT ELECT Kevin Boykin, CPCU SECRETARY Emily G. Haluska, MBA, CPCU, ARe, RPLU TREASURER Melvinn Brown, CPCU, ARM, AIC, API, AIS, ACS PAST PRESIDENT Brandon Yarborough, CPCU, AIC, AIP, AINS, AIM DIRECTORS AT LARGE Noah Klein, CPCU, AMIM Terrence Steele, CPCU, AIC

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President’s Message It is often said that “The greatest architecture is building character” and over the last couple of years our character has certainly been transformed. Many of you have been directly affected in so many ways by the pandemic and as bad as that is, all the stresses & challenges present before COVID 19 still remain. You have done an outstanding job hanging in there and making the necessary adjustments to keep our association and industry moving forward. Great Job! I wouldn’t have expected anything less.

There are so many that I need to thank for supporting me throughout my career and my time spent serving IIAH. I wish there was a way to do that here, but I will keep it to just a few.

Christopher Goff President 2020-2021 cgoff@harco-ins.com 713.800.2256

Thank You from the Bottom of my Heart Thank You to David Wuthrich, Renee Stager and Ayla Benavides!

Your dedication to the advancement of our local association is second to none and you should be commended for your tireless efforts to keep our association relevant to all its members.

Thank You to the executive committee! I am inspired by your leadership, and I can absolutely say that I have been blessed to serve alongside each of you.

To the many that have served on our board of directors, thank you for dedication and your willingness to give of your time and talent in governance of our association.

You are the leaders of tomorrow and I hope you will always find that you can serve our association when and where possible.

Last but certainly not least, I would like to thank Josh Hargrave and Gerri Rougeau for building my character over the past 22 years at HARCO Insurance Services. I was a hot shot know it all that needed a strong dose of humility when I started, and they made it clear where my priorities should be. This ultimately lead to my growth and my many industry accomplishments. I will forever be in debt to them for their unwavering leadership, care and guidance.

As I step away and yield to our future association leaders, please know that my willingness to serve remains strong.

I can’t wait to see where we go next and look forward to seeing all of you very soon. “Thank you from the bottom of my Heart” Chris Goff, CIC LUTCF

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Houston Insurance Professionals HIP The Houston Insurance Professionals hosted another successful Christmas in July at the Saltgrass Steak House (I10 and Shepherd) on July 29th, 2021. With people anxious to get out of the house - we hoped for high attendance. We again had such incredible sponsors for the event and were able to offer a great deal. Silent Auction items, Left-Right-Left Game and a ton of door prizes! We were pleasantly

surprised with our turn out and raised almost as much money as the 2nd year prior.

If you are interested in attending one of our events or meetings, contact Amy via email.

We all miss our usual stuff we do, in the usual way we do it. But we are ready for whatever comes!

Thank you for Supporting CONTACT

Amy Weimer Email: aweimer@hiallc.com

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learn more

take poll

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Charity Bowl Highest Women’s Individual Score Mary Frann Swank Highest Men’s Individual Score Rixie Sipes Highest Team Score “The Sleepers” with RPS Houston Best Company Theme Award 1st Place Hotchkiss Insurance Agency 2nd Place BXS Insurance Company Spirit Award 1st Place BrookWood Community 2nd Place U.S. E&O Brokers Highest Individual Fundraiser Mary Frann Swank 2nd Place Nancy Whitmire Highest Company Fundraiser 1st Place Hotchkiss Insurance Agency 2nd Place HARCO Insurance Services

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Raising Funds for Local Charities

Our 27th annual Charity Bowl went off with a bang! With a total of 31 teams we raised a bountiful of rewards for our beneficiaries The Brookwood Community, Camp Hope and Company Onstage totaling $6,000.

Everyone had a ‘root·in’-toot·in’ good time bowling and networking. It was so wonderful to see everyone

and host one of our favorite annual events. Thank you to our Exclusive Sponsor Vintage Underwriters, this event wouldn’t be possible without your generous donation and thank you to all the individuals who raised/donated additional funds!

We look forward to making this event bigger and better next year. See you in 2022.

! u o y k n a h T

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It’s The Law STATE APPELLATE COURT UPHOLDS TAKE-NOTHING JUDGMENT RENDERED IN PERSONAL INJURY CASE July 14, 2021 Last week, a Houston Court of Appeals affirmed a trial court’s take-nothing judgment rendered after the jury found the insured driver was not negligent in a motor vehicle accident case. Jowdy v. Rossi et al., No. 01-19-00715-CV (Tex. App.—Houston [1st Dist.]

July 6, 2021).

In Jowdy, the insured driver (“Rossi”) testified at trial that she was on a tollway when she rear-ended a driver who was stopped at the toll booth exit lane (“Jowdy”) and “caused [the] wreck 100 percent.”

Jowdy, who was stopped despite the fact that she was in the “toll tag” lane that did not require traffic to stop, testified that she did so because traffic was heavy. Jowdy also testified she believed Rossi was looking off to the side prior to impact. Conversely, Rossi testified she was looking straight ahead with both hands on the wheel, was not speeding or on her phone, and tried to stop in time but could not. Additionally, the investigating officer, Deputy Reeves, testified Rossi’s

failure to control her speed was a contributing factor to the accident. Deputy Reeves also testified that, although all drivers have a duty to drive in a prudent manner, accidents could happen even when people are trying to follow the law.

Upon hearing all the evidence, the jury found Rossi not negligent, and the trial court accordingly rendered a take-nothing judgment against Jowdy.

Jowdy appealed, in part claiming the evidence was factually insufficient to support the jury’s finding of no negligence, given that Rossi has “admitted” to causing the accident and Deputy Reeves testified she believed Rossi caused the accident and indicated that Rossi failed to control her speed.

On appeal, the Court reminded Jowdy that the occurrence of a rear-end accident does not mean one is negligent as a matter of law, a plaintiff must prove specific facts to support every element of a negligence claim, and there was conflicting evidence regarding whether Rossi was negligent and that such

negligence proximately caused the accident.

Further, Rossi presented evidence that she exercised some care. Consequently, the jury had to determine whether a reasonably prudent driver would have acted in the same way under the same circumstances, which required judging the credibility of the witnesses and resolving any inconsistencies in witness testimony to determine whether Rossi was such a “reasonably prudent driver.” Moreover, the Court made clear that a driver’s statement acknowledging they were responsible for the crash is not conclusive evidence that the driver breached the duty of ordinary care.

Rather, whether such an admission rose to the level of negligence is a question for the jury.

Because Jowdy did not show that the jury’s verdict was against the great weight and preponderance of the evidence, the Court upheld the trial court’s take-nothing judgment.

Learn More | https://www.mdjwlaw.com/

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Sporting Clays

Annual Charity Tournament

This Year’s Winners Nineteen teams braved the scorching Texas heat to participate in our annual Charity Clay Shoot on Friday, August 6th. The event this year was held at the beautiful Greater Houston Sports Club. Folks enjoyed a nice breakfast while catching up with friends from the industry. After a brief safety meeting, the teams headed out to the course for some good shooting. The tournament featured twelve stations plus a flurry station. Also, at the conclusion of the event, everyone got to try their hand at Gun Powder Golf.

We then sat down for a great BBQ lunch from Mikeska’s BBQ and passed out the awards for the top shooters.

Thanks again for all of the participants and sponsors for helping us raise lots of money for our charitable partners!

Our Benefactors

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1st place team – Bowen Miclette & Britt (Terry Lucht, Mark Santos, Robert Bartee, Will Baxter) – 244 2nd place team – Imperial PFS (Will Graves, Keith Meyer, William Peachey, Jay Pasero) – 188 3rd place team – Tie between CNA (Ryan Beavers, Scott Hunter, Matt Sasso, Brian Schmulen) and Pathfinder/LLD (Russell Laing, Wes Kurtz, Scott West, David Laing) 187 Overall Top Male Shooter – Will Graves with 73 Overall Top Women Shooter – Laura Farmer with 36

TITANIUM ELITE SPONSORS 2020-2021 IMPERIAL PFS BURNS & WILCOX, LTD. CRC GROUP

PLATINUM PARTNERS FOR EXCELLENCE 2020-2021 LIGHTHOUSE PROPERTY INSURANCE CORPORATION RT SPECIALTY TEXAS MUTUAL INSURANCE COMPANY UFG INSURANCE WSG SPECIALTY UNDERWRITERS

GOLD PATRON SPONSORS 2020-2021 AFS/IBEX A DIVISION OF METABANK CHUBB CNA INSURANCE COMPANIES DELTA GENERAL AGENCY SKYWARD SPECIALTY INSURANCE WRIGHT FLOOD

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PRESENTED BY CHRONOS RETAIL

BEER SPONSOR CORVUS INSURANCE

BREAKFAST & COFFEE SPONSOR CHUBB

SCORE CARE SPONSOR TEXAS MUTUAL INSURANCE COMPANY

BEVERAGE SPONSOR CHRONOS RETAIL

CART SPONSOR NFIB

CIGAR CART SPONSOR COLUMBIA INSURANCE GROUP

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STATION SPONSOR BURNS & WILCOX

SNACK CART SPONSOR TEXAS MUTUAL INSURANCE COMPANY

DOOR PRIZE SPONSOR U.S. E&O BROKERS

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Thank You to all who attended our Charitable Sporting Clays Invitational

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A day on the range for charity

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YOUR CONTRIBUTIONS MATTERS By contributing to IMPACT, you are supporting pro-business minded candidates and elected officials who are looking out for agents’ interests in the Capitol. All of the money raised by IMPACT is contributed to candidates and campaigns that support the independent agent network.

NOTE: IMPACT is prohibited by law from accepting corporate contributions. Investments may be made via personal or partnership check/credit card AND the following business entities may contribute via company check/credit card: » Limited Liability Companies (LLCs) with no corporate partner members of their LLC, » Limited Partnerships (LPs) or Limited Liability Partnerships (LLPs) with no corporate partner members of their LP or LLP, » Partnerships with no corporate partner members of their Partnership, and » Sole Proprietorships with no corporate partner members of their Sole Proprietorship.

Contributions to this campaign are not deductible for tax purposes. Consult your tax advisor.

Have you Heard?

Ed Schreiber of Houston Receives 2021 Drex Foreman Award

IIAT is proud to announce that Ed Schreiber, Houston Region President of BXS Insurance, was named the 2021 Drex Foreman Award winner at IIAT’s annual awards ceremony and business meeting.

The ceremony took place on June 25, during IIAT’s INSURCON, at the Kalahari in Round Rock. Named after Drex Foreman, who served as the chief executive director of IIAT for more than 30 years, the Drex Foreman Award is the highest honor IIAT bestows annually to an individual who has contributed greatly to the independent agency system.

Schreiber is currently the Houston Region President of BXS Insurance and was the president of GEM

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Insurance of Houston prior to GEM Insurance joining with BXS Insurance in 2013.

He is a past president of the Independent Insurance Agencies of Houston (IIAH) and a past board member of the Independent Insurance Agents of Texas (IIAT).

He is also the immediate past chairman of the IIAT Services Corporation.

He also served on the membership committee of the Independent Insurance Agents and Brokers of America (IIABA).

Schreiber is very active serving his community.

He is a past board chair of the Evelyn Rubenstein Jewish Community Center of Houston. He is currently the fundraising chair for a capital campaign to renovate

the community center and Jewish Federation, both of which were damaged during Hurricane Harvey.

Schreiber also serves on the executive committee of the Houston Jewish Community Foundation and the Jewish Community Centers of America National Board.

He and his wife, Betsy, are longtime supporters of the Toqueville Society of the United Way of Houston.

“Ed’s selection for this award is a result of the countless hours he has volunteered both for our industry and in his community. He truly has given of his time, talents and financial support in many ways,” said Mark Ray, Vice President of Higginbotham Insurance in Corpus Christi.

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USG Announces the Hire of Strickland in Houston, TX USG Insurance Services, Inc., a national wholesaler and MGA, is pleased to announce the hire of Greg Strickland, Producer/ Broker: Commercial Lines, in Houston, TX.

footprint.

Strickland joins the USG team with 12 years of experience in the industry, most recently with Burns & Wilcox in Houston, TX. As Producer/Broker at USG, Greg will continue building his book of business and assist in the development of USG’s Southern

This move is the most recent change that USG has implemented in its plan to continue expanding its operations nationally as a leading wholesaler brokerage firm.

Contact Informadtion Greg Strickland Producer/Broker: Commercial Lines Phone: 713.568.6137 Email: gstrickland@usgins.com

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Agent’s questions about Errors and Omissions, and how E&O losses can be prevented

By Mary LaPorte, AINS, CPCU, CIC, LIC, CPIA Agent’s

Q:

Our office is finally eliminating paper customer files and going paperless.

The question came up on how long we should keep customer records. We used to keep everything for five years. Is that still the rule of thumb for digital records too?

Callie, Illinois

A:

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Callie, the first thing you need to do is check to see if your state has requirements for maintaining records. Your state agent’s association should be able to provide that information.

Generally, I have always recommended keeping personal lines records for 5-7 years, and commercial records for 7-10 years. In the past, an agency’s desire to keep paper records longer was tempered by space limitations.

Thanks to technology, space is no longer an issue.

One argument, therefore, is to keep records indefinitely since it is so easy to do. That can be a double-edged sword.

On the plus side, you can provide historical perspective

on an account and perhaps even help a customer with a long-tailed claim when the carrier no longer has a record of the policy.

Conversely, poor documentation from the past can hurt you in an E&O situation. I think most of us would agree that, thanks to technology, we do a much better job at documenting today than we did ten, twenty or more years ago. I have witnessed situations where incomplete documentation or gaps in documentation from the past have affected agencies negatively in E&O litigation.

There is one more area to consider, and that is the limitations of your agency management system.

In many management systems, customer records can be archived, but not deleted completely.You should speak to your vendor to see if it is even possible to totally delete records. From an E&O perspective, archived records are still subject to subpoena.

In other words, archiving is the same as “keeping” them indefinitely.

At the time of an E&O claim, you will be judged against your peers. What would a similar agency do in the same situation? What are your peers doing? If the old “normal” was 7 years, what is the new

“normal?” The truth is - no one knows. That takes time to establish and our changes in technology are relatively new. What I can tell you what I see other agencies doing right now and that is either keeping files indefinitely or archiving. Check your state requirements, speak to your vendor, review my comments above and create a retention policy that fits your agency’s needs.

For resources to help reduce your agency’s E&O exposure, see Mary’s book: Mission: EXCELLENCE Creating an Internal E&O Loss Control Program Visit her website for more information www.lpinsuranceconsult.com

CONTACT Mary LaPorte | Email

marylp@lpinsuranceconsult.com

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CoverageSpotlight AUTOMATION, DIGITIZATION, AND MORE: 5 TRENDS DISRUPTING THE WHOLESALE INDUSTRY August 11 | 2021 For decades, wholesale distributors have been the primary source of inventory to retailers. Over the past decade, however, technology, e-commerce, and shifting customer expectations have altered the wholesale landscape. Today’s distributors are evolving their business models—and fast.

1. Digitization With access to a massive catalog of products that they can ship quicker than most competitors, digital giants like Amazon and Alibaba have sent shockwaves through the traditional wholesale industry. This threat is particularly serious when it comes to commoditized products like printing supplies and paper. The problem? Businesses are looking for the fastest, easiest, and most affordable way to obtain these products—and traditional wholesalers often struggle to keep up with their digital competitors.

2. Disintermediation As digitization continues to connect more people and systems, it creates an opportunity for manufacturers and retailers to skip traditional wholesalers and work directly together, blurring the line between wholesale, retail, and manufacturing. As a result, disintermediation has become more common in the marketplace.

The number of direct-to-consumer (D2C) brands is projected to grow by almost 20 percent in 2021, with many manufacturers leveraging e-commerce platforms to bypass wholesalers entirely. For example, Boeing invested heavily in business-to-business (B2B) e-commerce and acquired a leading aerospace parts distributor, helping increase its share of the replacement aerospace parts market by 7 percent. Many companies find that they can also improve shipping speeds and customer service by cutting out the middleman role that wholesalers traditionally play.

In 2017, 92 percent of wholesale distributors cited Amazon as a competitor—and for good reason. According to a recent report from the National Association of Wholesaler-Distributors (NAW), Bank of America/Merrill Lynch estimates that Amazon Business, the tech giant’s wholesale branch, will reach $34 billion in gross merchandise sales by 2023, and $125 to $245 billion by 2029. And Amazon and Alibaba aren’t the only competitors in the digital space—new

3. Evolving customer demand Amazon has disrupted the marketplace in multiple ways. As a result of this retail behemoth’s influence, businesses and consumers alike are experiencing something called the “Amazon Effect,” a psychological phenomenon that has shifted customer service expectations in virtually every industry. Customers today expect their wholesale distributors to be able to match Amazon’s speeds—even if that means shipping

In this article, we’re diving into five trends disrupting the wholesale industry, from navigating competition like e-commerce giants to embracing technological innovation.

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business models are constantly emerging, including eBay Business & Industrial, Digi-Key, and Zoro. With all these businesses competing for the same pool of customers, their profits will likely come at the expense of traditional distributors.

products in just a few hours. And businesses expect to have the same responsive customerservice experience from their distributors that they get from retail e-commerce. To keep up, today’s wholesalers are reconsidering old models that rely on regional representatives and storefronts and introducing a more versatile, tech-savvy buying experience.

M&A activity was primarily focused on growth opportunities, today’s wholesalers are merging to stay competitive and optimize their position in the market. Consolidating helps wholesalers improve customer experience, provide a broader array of products and services, and work more efficiently—all in response to the “Amazon Effect.”

4. New technological innovations E-commerce isn’t the only technological innovation transforming the wholesale space.

Distributors are now using automation, Artificial Intelligence (AI), robotics, and drones to speed up their fulfillment processes, cut down on labor costs, and help reduce workplace injuries. According to Boston Consulting Group, wholesalers who automate their warehouses can cut costs by up to 55 percent. Automation is faster, too. JD logistics, the largest online and offline retailer in China, has a fully automated warehouse that can process more than 1.3 million orders a day and services 99 percent of China’s population and offers same- and nextday delivery. Some new technologies, such as augmented reality and exoskeletons, can enhance workforce productivity and help reduce injuries, potentially saving millions of dollars per year in workers compensation claims.

Navigating disruption with insurance coverage Industry disruption is likely to continue for the foreseeable future, pushing wholesalers to adjust their business models and offer valueadded services to stay relevant in an evershifting market. As distributors rework their business models to address these disruptions, their insurance coverage will need to adjust as well.

While the upfront cost of implementing these technologies can be high, the return on investment can also be significant.

5. Industry consolidation Increasing disintermediation and stiff competition from digital giants have resulted in more mergers and acquisitions (M&A) activity over the last few years. While in the past

The automation of processes may result in a decreased need for workers compensation coverage and increased need for cyber and property coverages to address equipment breakdown and business interruption exposures. The introduction of new products and services may also result in the need for more specialized general liability and errors & omissions coverages. Insurance providers are critical partners during these business changes, helping wholesalers re-evaluate their risk exposures and adjust coverages to help ensure they’re properly protected.

The wholesale market is changing—but a knowledgeable insurance provider can support your business through this period of disruption.

Learn more about how Liberty Mutual supports wholesale distributors.

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E. J. Chromcak 1927- 2021

In Memoriam Emil Joe Chromcak (E.J.) having reached the age of 94 and a half went to be with the Lord, and join his wife of 47 years, Barbara and son Brad on July 23, 2021.

E.J. was born in Yoakum, Tx. on 1-27-27 and grew up in Schulenburg, Tx. He attended St. Rose Catholic School, Schulenburg High School and proudly served our country in the U.S. Navy in WWII and again during the Korean Conflict. E.J. was past owner of Balzer Feed Mills of Schulenburg 1974-2017 and the Bill Vawter & Company Insurance Agency 1952-2018. He was a member of the Class of 1950 at Texas A & M University and recently received recognition as the Outstanding Houston Aggie of 2020 by the Houston A & M Club.

A few of his affiliations included: Charter member / director of the Touchdown Club of Houston, Houston A & M Club, 12th Man Club, American Legion, Knights of

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Columbus, St. Cyril of Alexandria Catholic Church, and was an Eagle Scout. Always eager to donate time and energy, never met a stranger. E.J. loved family, friends and Texas A & M. Survived by remaining son and Vawter partner, Tom Chromcak (Aggie’76) and wife / super daughter in law, Jeanne. 5 Grandchildren: T.J.(Aggie’13), Chase, Kaylie, Justin Boyle (Jennifer), Leslie Zimmerman (Trevor) and 5 Great Grandchildren: Brooklyn ‘25, Penny, Oliver, Nora and Maysie.

Special thanks to Susan Jordan for her care and comfort during the final months. Additional thanks to his physician, Freemu Varghese, for dad’s longevity. Contributions in his honor to American Cancer Society or The Association of Former Students of Texas A & M. Services were held at Forest Park - Westheimer Funeral Home, Thursday, July 29, 2021.

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Who has the Last Word Carmen Cancino ate it again once I was told what it was!)

Q: Where you work: A: The Hanover Insurance Group Q: What sound do you love?

A: Babies laughing Q: If you could paint a picture of any scenery you’ve seen before, what would you paint?

A: I’m not a very good artist, but I would totally Bob Ross it and paint Pike’s Peak in Colorado.

Q: What was the first thing you bought with your own money?

A: Man, I don’t even remember that far back because I started earning when I was really young and would babysit. Probably a pint of Blue Bell Homemade Vanilla. I used to walk to the corner store from my grandmother’s and it was only a $1.

Q: If you could choose to stay a certain age forever, what age would it be?

A: Probably 27. I’d had all 3 of my children by then and they were so sweet when they were little!

Q: What did you do growing up that got you into trouble?

A: I was really bad about shoving all of my mess under my bed and into my drawers so I could go play. My mom would take the drawers out and dump them in the middle of the room. I ran out of places to hide things and just started keeping my room clean!

Q: What is your pet peeve in traffic?

A: People that travel in the left lane, people that don’t use their blinkers, people that don’t understand how “the zipper” works, and rubberneckers. I drive a lot.

Q: Do you have any hidden talents?

A: Not really, but I do love to sing. Whether it’s the latest jingle for Sterling Mcall or Journey, I’m always singing something.

Q: What is your favorite flavor of jelly beans?

A: Cotton Candy Q: What is your LEAST favorite electronic device?

A: A treadmill – anything but cardio!!

Q: What is the longest car trip you have ever taken?

A: Richwood, TX to Orlando, FL Q: Can vegetarians eat animal crackers?

A: Of course, where else would they get their carbs!?

Q: Ninjas or pirates?

A: To watch? To date? To be? To have defending you? Those could be different answers! Let’s say, ninjas!

Q: What was your favorite childhood television program?

A: Teenage Mutant Ninja Turtles – probably the only thing that could still get me up early on a Saturday morning

Q: What is something you learned in the last week?

A: You can control your dreams! It’s called Lucid Dreaming! I listened to a podcast about it and it’s fascinating.

Q: Are you a collector of anything?

A: Not really – I’m not super nostalgic and I don’t like clutter. My mom kept all of these awards from my childhood and I have no idea what to do with them. Marie Kondo would tell me to take a picture and then thank them before discarding.

Q: Weirdest thing you have ever eaten?

A: I’m not a super adventurous eater, so maybe escargot or lengua (I had the latter once and never

Q: At a movie theater, which arm rest is yours?

A: Whichever one the other person isn’t using.

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