Kentucky IA - January/February 2018

January/February 2018

Meet Mike 2018 IIAK Chair

Dear Agents: We are very excited to introduce you to ClearPath Mutual, formerly KESA! ClearPath Mutual is a non-assessable mutual insurance company that is owned by its policyholders. We are still headquartered in Louisville, Kentucky and have retained our excellent staff. The folks you’ve come to know at KESA are still here for you as ClearPath Mutual.

Many may wonder why we decided to reorganize as a mutual insurance company. The answer is simply that the mutual insurance company structure allows us so much more flexibility and greater opportunities for growth. As a mutual, we can provide better service to our agents and insureds and offer several key benefits, such as:

• The elimination of joint and several liability.

• The ability to eventually write coverage outside

the boundaries of Kentucky.

• The opportunity for greater growth and scalability.

• The improved organizational and financial flexibility needed to remain financially strong.

It is certainly bittersweet to say goodbye to KESA, but we believe our transition will position us well for future growth and success.

We are very excited to move forward on our new path.

If you have any questions or need additional information, feel free to contact me. As always, thank you for partnering with us.

Warm Regards,

Gregory L. Buie Chief Executive Officer

200 Executive Park, Louisville, KY 40207 | t 502.894.8484 | 800.367.5372 | clearpathmutual.com

What's

Inside

Page 18

Contents

8 9 steps to better delegating

Page 22

10 Preventing Employee Burnout at Your Agency 11 House & Senate Committees on Banking and Insurance 14 2017-2018 Board of Directors 18 Meet Mike Johnson 22 Everyday Attitudes that Kill Success 24 IIAK Welcomes Tara Purvis as new President/CEO 27 A Visit with the Law Firm (Part Two) 30 Beware of the top seven agency myths

Page 30 The Kentucky IA is the official magazine of the Independent Insurance Agents of Kentucky, and is published bi-monthly.

Editorial offices are located at 13265 O’Bannon Station Way, Louisville, Kentucky 40223.

Telephone:(502) 245-5432 Email: iiak@iiak.org Fax: (502) 245-5750 The Kentucky IA welcomes all advertising and editorial submissions. Inquiries for advertising, news releases and editorial contributions can be directed to Nikki Robins at the editorial office address or via email at nrobins@iiak.org

In Every Issue 4 From the Chair

33 Industry Partners

5 DOI News

35 Advertiser Index

6 Education Calendar

35 Classified Ads

33 Upcoming Events

35 Social Media Links

Mission Statement The mission of the Independent Insurance Agents of Kentucky is to be the preeminent advocate for Kentucky Independent Agents and support their business and professional development needs.

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Chair

Officers

From the

Michael G. Johnson, CIC

Chair, Lexington 859.233.1461 Aaron LaRue

Chair-Elect, Bardstown 502.348.0050 Ray A. Robertson, CIC

Vice Chair, Mt. Sterling 859.498.3410 James D. England, AAI

Treasurer, Pikeville 606.437.7361 Stephen R. Kinkade, CPCU, AAI

National Director, Leitchfield 270.259.5465 George L. “Chip” Atkins, III

Immediate Past Chair, Louisville 502.585.3600

Directors Allen J. Crawford, CIC, CSRM

Somerset, 606.679.6311 Kevin T. Desmond

Bellevue, 859.491.5100 Whitney L. Floyd, CISR

Henderson, 270.827.3543 Barrett H. “Skip” McGaw, II, CIC

Madisonville, 270.821.3122 Danny S. Neely, II

Emerging Leader Chair, Winchester 859.744.3857 Chris J. Wiseman, CIC

Bowling Green, 270.781.2020 Laura Yount, CIC, CISR

London, 606.878.0100

Happy New Year!

As I start 2018, I look back to 2017 to identify accomplishments from the past year and goals for the coming year. One of those goals is to lead your association in a positive manner.

I feel blessed to be leading IIAK and getting to know many different individuals during my service. I consider many of those individuals as leaders, not because of a title they held, but because of the way they have conducted themselves.

There are several characteristics that help define what makes a good leader: being a team cheerleader, being able to effectively communicate, being a good listener, accepting responsibility, fulfilling those responsibilities and staying focused on the goal.

It’s easy to slap the “leader” title on someone in a position of power. However, the best leaders do so by example. All of those that have volunteered to serve this association do so because they care about the industry and want to help protect our livelihoods and that of our clients. The great leaders that I have worked with in your association not only have stepped up to the table of serving, but also have a passion for service and take ownership in that role.

One of the best leaders I know demonstrates all of these traits but even more importantly is goal focused. There may be a plan to get to that goal but they are willing and able to make adjustments in order to reach those goals. They are always focused on the finish line.

Staff

Amy Good

Administrative Assistant

My goal for this year is to leave this association in a better place than when I started. I am blessed to have a great Board of Directors, great Industry Partners and an awesome team in the IIAK office to help me achieve this goal. You have my pledge to stay focused on that goal and with the support of all of these individuals, we will be successful.

Cassie Powell

Office Manager

May all of you reach your goals in 2018!

Peggy P. Porter

President & CEO Katie M. Freshley

Education & Events Director

Tara T. Purvis

Marketing Director Nikki S. Robins

Communications Director Kristie Weyer, CISR

Insurance Services Director

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Michael G. Johnson, CIC

News Department of Insurance

What do you think about when we hear the word “leader”? Do words of accomplishment, direction, guidance, integrity, hard work, and success come to mind, or do you see images of control and self-focus?

There are many different types of leaders throughout history, and depending on the leader’s character, agenda, and leadership style one or more of these characteristics will be evident.

You are a leader of some sort whether you recognize it or not. It is essential for leaders to be self-aware and recognize that leadership begins with personal reflection. We typically do not have the capabilities to perform as a good leader when we cannot first master our own actions. You may not realize it, but you are always leading someone somewhere. A question you should ask is, “Where and how are you leading them?” Good leadership is the art of bringing a group of people together to accomplish a common goal. A good leader has a vision for the team, can motivate team members, and most of all leads by example.

At the Department of Insurance, we strive to practice strong leadership skills every day. Whether it’s a Division Director encouraging the internal team effort and pushing staff members to reach their fullest potential, or a staff member within the Division of Consumer Protection working above and beyond to respond to a public inquiry, our mission is to strive for excellence. You can always accomplish more when working together as a cohesive team. It takes a strong leader to build a productive team. Leadership is about taking initiative and responsibility and then being able to bring others along in the process.

There are several simple, good qualities to put to practice as a leader, including organization, timeliness, supervision, and goal planning. There are always those items you feel you can never catch up on, however, keeping things orderly and organized will certainly help cut down on any unnecessary hassle and confusion. Timeliness is an important attribute of a leader because it shows that you respect other’s time and your own when you show up promptly and prepared to meetings. Supervision skills are also essential because they allow you to keep up with your staff and encourage the team to make progress without having to micromanage.

Finally, goal planning will spur your team on to a successful finish. When you have in mind what you’re striving for, it helps keep you and your team on track and provides motivation to reach the finish line.

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Continuing Education

IIAK has a range of classroom and webcast continuing education courses as well as valuable designation seminars.

See below for our latest offerings.

ON-SITE COURSES:

CRM: Financing of Risk February 20-23 • Hilton Garden Inn Louisville Northeast

E&O: Roadmap to Policy Analysis May 23 • IIAK Education Center

ONLINE COURSES VIA ABEN: Date/Time

Seminar Name

February 26 @ 1 pm March 26 @ 1 pm

Agency Management Based E&O and Ethics

3

February 1 @ 3 pm March 1 @ 3 pm

Annuity Basics and Where They Fit

1

April 20 @ 10 am

Business Auto Claims That Cause Problems

2

March 16 @ 1:30 pm April 18 @ 11:30 am

Business Fraud Protection

1

March 22 @ 11 am April 21 @ 11 am

Certificates of Insurance – Emerging Issues and Other Stuff that May Scare You!

3

March 21 @ 9 am

Commercial Lines Claims That Cause Problems

2

March 16 @ 10 am

Commercial Property Endorsements That Can Make You Money!

2

March 10 @ 10 am

COPE – Property Underwriting and Effective Loss Control

2

March 8 @ 11 am April 20 @ 2 pm

Data Privacy Insurance

2

March 8 @ 2 pm April 20 @ 10 am

Directors and Officers Liability Insurance

2

March 13 @ 1 pm April 10 @ 1 pm

Double Trouble - Certificates of Insurance and Business Auto Endorsements

2

March 7 @ 9 am March 16 @ 10 am

E&O Risk Management – Meeting the Challenge of Change (6 hour course)

6

March 28 @ 10 am March 30 @ 10 am

E&O Risk Management – Meeting the Challenge of Change (Part 1)

3

March 28 @ 2 pm March 30 @ 2 pm

E&O Risk Management – Meeting the Challenge of Change (Part 2)

3

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CE Credits

Date/Time

Seminar Name

CE Credits

March 16 @ 11:30 am April 18 @ 1:30 pm

Estate Planning Basics

2

March 21 @ 9 am

Ethics and Business

3

April 21 @ 10 am

Home Based Business Exposures

2

March 16 @ 3 pm April 4 @ 10 am

Hot Topics in Personal Lines

2

April 5 @ 10 am

Liability Issues to Worry About – Indemnity Agreements and Additional Insureds

2

March 21 @ 9 am

Long Term Care Insurance

2

March 16 @ 10 am April 4 @ 3 pm

National Flood Insurance Program Basic Course - 2016

3

March 9 @ 11 am March 9 @ 3 pm

Personal Fraud Protection

1

April 26 @ 2 pm

Personal Lines Claims That Cause Problems

2

March 24 @ 11 am April 14 @ 2 pm

Professional Ethics in the Insurance Industry

3

March 1 @ 2 pm April 5 @ 2 pm

Property & Liability Concepts - Comp. Cov. Series

2

March 9 @ 10 am April 13 @ 10 am

Rental Cars: More Than Meets the Eye

2

March 9 @ 11:30 am April 11 @ 12:30 pm

Shake, Rattle, and Roll with it- Earthquake Basics

1

April 6 @ 9 am

Those Kids and Their Cars!

2

March 2 @ 1 pm

Top 5 Life Insurance Uses

2

March 8 @ 3 pm April 2 @ 3 pm

What you Need to Know about Employment Law & Coverage

2

April 18 @ 1 pm

Workers Compensation Beyond the Basics

3

New Hire eLearning Training Available!

Visit iiak.org/education for more information www.iiak.org | January/February 2018 | 7

Put a system in place for tracking progress.

Know what you’ve delegated, who is responsible and when each project is due. Keep a master project list that includes priorities, review dates and expected completion dates. This way you can be sure the project is progressing without feeling the need to micro-manage it.

Don’t “take over.”

When things aren’t progressing exactly your way, don’t jump to the conclusion that the method is wrong. If you’re concerned ask to hear the whole plan and determine if the approach will ultimately lead to the desired results. With an open mind, you may actually discover ideas and options to help you with future projects. If the plan does seem doomed to fail, explain why and work together to come up with an appropriate alternative.

Establish and agree on deadlines.

Specify the date the assignment needs to be finished. Determine if your expectations are realistic based on the individual’s other responsibilities and the availability of any additional resources necessary to complete the job. You may need to work together on establishing priorities. Everything can’t be due at the Caliper same time and all tasks cannot be top priority. Encourage open discussions about how to manage multiple projects.

steps to better delegating

Give feedback and recognition.

Discuss any concerns you have about how the assignment was handled so future problems can be avoided.

Explore the thought process behind how the person approached the job and agree on what to do differently next time. If you are pleased with the outcome, or even with certain stages of the project, say so. Point out any specific aspects of the assignment that you were particularly impressed with. Give credit for successes. A little praise goes a long way.

Clearly define the expected results.

Discuss what successful completion of the project means to you.

Elicit feedback from the other person to ensure he or she is clear about the goal and your expectations.

Also be sure you provide any additional resources necessary for the individual to complete the assignment successfully.

Use delegation as a way to develop employees.

Employees who are given new opportunities to grow and develop their abilities, tend to be happier and more productive than those who are not challenged. And you gain a more capable individual who can take on more difficult jobs in the future.

Take responsibility for your part in the progression of the assignment.

Depending on the scope of the task and the ability level of the individual it’s been assigned to, you will need to make yourself available as an authority, a resource, a peer, or a mentor.

Article from Caliper Be sure you’ve defined the task and why it’s important.

Thoroughly explain what the task will involve and be clear about how the job fits into the overall goal of what you’re trying to accomplish. Don’t assume someone knows what you want and why you’re asking for it. The clearer the goal, the more invested the individual will be.

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Understand the strengths and weaknesses of the individuals you are delegating to and assign work accordingly.

Too difficult an assignment will undermine confidence and assigning work that is substantially beneath someone’s skill level is a surefire way to turn him or her off to the assignment.

Relax...

You’ve offered each of your clients a personal umbrella policy.

Right?

It might not be quite as relaxing as a day at the beach, but knowing you’ve done everything in your power to protect the customers who trust you to help them will go a long way towards easing your mind.

Offering each and every client an umbrella not only protects those who choose to purchase the coverage. It protects your agency from liability. And it protects your book of business, since studies show that customers who have multiple policies are less likely to move their business elsewhere.

As a Big “I” member, you have access to a stand alone personal umbrella program from A+ rated carrier RLI, featuring: Limits up to $5 million available Excess UM/UIM available in all states You can keep your current homeowner/auto insurer New drivers accepted - no age limit on drivers Up to one DWI/DUI per household allowed Auto limits as low as 100/300/50 in certain cases

Competitive, low premiums for increased limits of liability Simple, self-underwriting application that lets you know immediately if the insured is accepted E-signature and credit card payment options Immediate coverage available in all 50 states plus D.C.

So cover your clients... protect your agency... and profit from umbrella sales!

Contact Jennifer Hopper, your RLI Administrator at: Email: jhopper@arlingtonroe.com Tollf Free: (800) 878-9891, ext. 8639 Local Fax: (317) 554-8551 Toll Free Fax: (888) 552-9891

Preventing Employee Burnout By: Keith Baldwin at Your Agency When I used to travel around reviewing agent offices, I often encountered burned-out employees.

Interestingly, they were often low-performing team members in underperforming agencies. I’d go to another office and find highly engaged and productive team members in high-performing offices.

The key difference? The agency leader.

I’ve found that high-performing leaders wear four hats simultaneously that bring out the best in their teams: Leaders inspire a bigger vision for the agency and each team member’s role. They make sure staff focuses on the right things. When workloads get heavy, leaders help their teams understand context and timelines. They bring out the best in their people and don’t forget to praise them for work well done.

Managers define clear outcomes and hold people accountable. They make sure people have proper training, are in the right position and receive the tools and information the job demands. An effective manager helps someone craft their job so it’s a good fit.

Mentors support and challenge their teams. They share experiences, teach and serve as a sounding board to others navigating unfamiliar territory. They’re open about their own past experiences with burnout and suggest ways to improve workflow. When mentoring, agents are often telling, teaching and guiding.

Coaches partner with others to help them discover best solutions to mitigate burnout. When coaching, agents ask open-ended questions and help team members dig deep into the thoughts and feelings behind burnout.

Often, a coach helps others understand and reframe their thoughts. Once this leader helps team members understand their own burnout, they can help them identify and implement strategies focused on greater success in their role.

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It’s natural to gravitate toward one of these roles. Some people love painting inspiring pictures, but hate holding people accountable. Others hold people accountable but don’t invest time coaching. The key is to weave all four elements together while building your inspired agency.

Keith Baldwin is a Gallup-Certified Strengths Coach and the author of “Light Your Fire: How leveraging strengths will inspire you and your team members towards skyrocketing success!”

Preventive Measures A person’s manager accounts for at least 70% of employee engagement.

Gallup identified 12 elements leaders can influence that increase engagement and found three areas in particular that seem to have the most impact on reducing burnout: 1) Praising and recognizing team members for good work 2) Giving the team has the right materials and training 3) Making sure team members believe their opinions at work count For additional information and an assessment on employee burnout, visit Gallup online. —K.B.

House & Senate Committees on Banking and Insurance HOUSE COMMITTEE - Chair -

- Vice Chair -

Rep. Bart Rowland* R - Tompkinsville

Rep. Scott Wells R - West Liberty

- Members Rep. Will Coursey D - Symsonia

Rep. Dennis Keene D - Wilder

Rep. Michael Meredith R - Brownsville

Rep. Jim DuPlessis R - Elizabethtown

Rep. Adam Koenig R - Erlanger

Rep. Steve Riggs* D - Louisville

Rep. Joseph M. Fischer R - Ft. Thomas

Rep. Stan Lee R - Lexington

Rep. Wilson Stone D - Scottsville

Rep. Jim Gooch, Jr.* R - Providence

Rep. D. Chad McCoy R - Bardstown

Rep. Addia Wuchner R - Florence

Rep. Jeff Greer* D - Brandenburg

SENATE COMMITTEE - Chair -

Sen. Tom Buford R - Nicholasville

- Vice Chair -

Sen. Jared Carpenter R - Berea

- Members Sen. Julie Raque Adams R - Louisville

Sen. Morgan McGarvey D - Louisville

Sen. Albert Robinson R - London

Sen. Rick Girdler* R - Somerset

Sen. Dennis Parrett D - Elizabethtown

Sen. John Schickel R - Union

Sen. Christian McDaniel R - Taylor Mill

Sen. Dorsey Ridley D - Henderson

Sen. Dan “Malano” Seum R - Fairdale

* These legislators are licensed as insurance agents in the state of Kentucky

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Thank You 2017 KAPAC Contributors Tommy Adams Paul Allison Donny Anderson Nathan Arant Chip Atkins Jason Ayers Joe Barnes Kyle Beckham Brad Blain Sandra Blain Custer Blair Jeff Brown J.W. Brown Brian Burkhead Dick Burks Joe Cerzosie David Clarke Bobby Clarkson Tim Conder Allen Crawford Steve Crawford Gary Criscillis Josh Dahl Denny Desmond Kevin Desmond Lisa DeWitt Jim Downing Jim England Brad Felts Stuart Ferguson Whitney Floyd James Flynn Neel Ford Steve Ford John Funkhouser Virginia Goff Danny Greene Bill Greenwood

Jeff Greer David Gross Jay Hall, III Eric Harden Norm Hatter Mike Hazelwood Ann Heidemann Mike Hepp Sharon Hill Stephen Hill Miller Hoffman David Houk Danny House Michael Huff Tripp Humston Diana Hunt Phillip Hunt Andrea Hurley Brett Ison Jenni Ison John Ison Heather Ivanis Mike Johnson Steve Kinkade Kevin Kirksey Aaron LaRue Alex LaRue Bill Latta Jim Lavelle John Lavelle Ronald LeMaster Stan Logan Michelle Love Lynn McCandless Mike McCandless Ryan McCarty Bill McCarty Ted McClain

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Joe McClain Skip McGaw Adam Murphy Tim Murphy Danny Neely Raymond Nelson Brannon Nix Jeffri Northcut Diana Norwood David O’Bryan Glenn Pike Chuck Polin Peggy Porter Craig Preece John Purdom Jared Pursley Tara Purvis Rick Rand Crystal Reid Carolyn Reynolds Ross Richey Jimmy Riddle Roy Riley Keith Riley John Roberts Bob Roberts Ray Robertson Jim Roe

Nick Rolf Bart Rowland Allen Rudd Debbie Sanford Donna Schlie Adam Sheridan Adam Shipley Betsy Smith Brian Smith Barbara Spalding Matt Stephens Scott Stoermer Carley Strader Norma Stultz Steve Thompson Steve Turner Steve Vaughn Mark Viehmann Lindsey Warren Bob Werner Ashley White Buddy Wilson Chris Wiseman David Wiseman Danny Yackey Hope Yager Laura Yount

Scan below to make your 2018 contribution today!

WHY GIVE to KAPAC? TOP 3 REASONS TO GIVE TO KAPAC

1 2

RELATIONSHIPS

Build relationships with the new faces in Kentucky’s legislature and educate them on important insurance issues. KAPAC helps open doors and gain access to our legislators!

COMPETITION

Some of the largest PACs in Kentucky are from groups that often have very different interests than independent agents. A strong KAPAC means we can effectively compete with these powerful PACs when needed!

3

LEGISLATION

Tort reform and workers’ compensation are some of the significant insurance issues facing Kentucky’s legislature today and tax reform is on the horizon. Our voice needs to be heard as decisions are made that could have a long-term impact on our industry!

MAKE YOUR CONTRIBUTION ONLINE www.iiak.org AT IIAK.ORG/KAPAC | January/February 2018 | 13

BOARD OF DIRECTORS

2017 - 2018 IIAK

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Chair MICHAEL G. JOHNSON, CIC Al Torstrick Insurance Agency, Inc. Lexington Phone: 859-233-1461 Email: mjohnson@altorstrick.com

Immediate Past Chair GEORGE L. “CHIP” ATKINS, III R.H. Clarkson Insurance Agency Louisville Phone: 502-585-3600 Email: catkins@rhcgroup.com

Chair-Elect

Vice Chair

AARON LARUE

RAY A. ROBERTSON, CIC

Treasurer

National Director

JAMES D. ENGLAND, AAI

STEPHEN R. KINKADE, CPCU, AAI

LaRue-Carey Insurance Group LLC Bardstown Phone: 502-348-0050 Email: aaron@larueinsurance.net

Peoples Insurance Agency Pikeville Phone: 606-437-7361 Email: james.england@pebo.com

Limestone Agency, Inc Mt. Sterling Phone: 859-498-3410 Email: ray.robertson@limestoneagency.com

Kinkade-Cornell Insurance Agency, Inc. Leitchfield Phone: 270-259-5465 Email: steve@kinkadecornell.com

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Director at Large

Director at Large

ALLEN J. CRAWFORD, CIC, CSRM

KEVIN T. DESMOND

Emerging Leader Chair

Director at Large

DANNY S. NEELY, II

CHRIS WISEMAN, CIC

Reed Brothers Insurance Services Somerset Phone: 606-679-6311 Email: acrawford@mikrotec.com

Neely & Wade Insurance Agency, Inc. Winchester Phone: 859-744-3857 Email: danny@neelyandwade.com

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Desmond Brothers, Inc. Bellevue Phone: 859-491-5199 Email: kevin.desmond@desmondinsurance.com

Van Meter Insurance Agency Bowling Green Phone: 270-781-2020 Email: cwiseman@vanmeterins.com

Director at Large

Director at Large

WHITNEY L. FLOYD, CISR

BARRETT H. “SKIP” MCGAW, II, CIC

Field & Main Insurance Services Henderson Phone: 270-827-3543 Email: wfloyd@fieldandmaininsurance.com

Riddle Insurance Madisonville Phone: 270-821-3122 Email: smcgaw@riddleins.com

Director at Large LAURA H. YOUNT, CIC, CISR

Mountain Valley Insurance London Phone: 606-878-0100 Email: laura@mountainvalleyinsurance.com

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If you’ve met Mike Johnson once, chances are good that he’s made you laugh or smile. His love for life, his family and his industry shines in everything he does. This self-proclaimed “Yankee from Cleveland” has adjusted well to life here in the Bluegrass and he can’t imagine doing anything other than helping his clients. IIAK was able to sit down with him recently at his office in Lexington to discuss what he’s learned after 17 years in the insurance industry and where he sees the future of both our association and the industry as a whole.

How did you get started in insurance?

I got involved in insurance when my father-in-law, Al Torstrick, asked me to join the team. Prior to that, I couldn’t spell insurence, lol.

What do you find most fulfilling about being an insurance agent?

The most fulfilling times to be in this business are when you are able to help someone out. The obvious times are when a client has a claim and the coverage helps get them back to where they were. However, it isn’t only after losses occur. I like meeting with a client and discussing what is most important to them and help them structure coverage that allows them to sleep at night.

How do you feel about being an independent agent?

When I first started in the business, there was a direct writer that had decided to put a halt on new business.

It didn’t take me long to realize the advantage of being independent with multiple carrier partners to find the right fit for my client. It’s difficult to tell a prospect that you can’t help them because your only market isn’t entertaining new business.

Tell me about your agency Al Torstrick Insurance Agency was founded in 1962, when Mr. Torstrick purchased a small agency in Lexington, KY. With the help of his wife, Barbara Torstrick, he was able to set in motion an era of growth. During those years of growth, the agency added a Benefits Division and even had a sister company operating as a wholesale agency. While the wholesale agency was sold many years ago, the agency continues to offer Personal Lines, Commercial Lines, Health and Life Products.

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2017-18 What does a typical day look like?

Almost all of my days start and end with a walk with my dog, Cosmo. This business has allowed me to see my kids off in the morning and be with them in the evening. In between that, I get to do what I love which is talk to people. I’m always looking to learn something from working with so many different people. I joke with my kids at home that their dad knows everything, but in all reality we can’t know everything but we can continue to grow.

How did you got started in IIAK? My father-in-law opened the door to the association for me but Jordan Clarke, the current Young Agent Chair at the time, invited me in. Through the years I served on many different committees and got to know many of the other members. These relationships offered a great many things to me; friendships, mentors, partnerships, and purpose. I’ve learned a great many things from a great many people and it is because of my involvement.

If you had to pick your favorite benefit of being a member of IIAK, what would it be?

I like people, so my favorite benefit of the association is the IIAK team and its association members.

How are you involved in your local community?

I currently serve as a member of the board of directors for Bluegrass Crime Stoppers, and served as the Chairman in 2013.

I also have volunteered to serve as an Ambassador for Commerce Lexington and the Jessamine County Chamber of Commerce. Our agency is also very involved with Arbor Youth Services which provides a safe alternative for at-risk children, youth and their families.

If you weren’t in insurance, what would you be doing?

If I wasn’t in insurance, I would like to think that I would be a source of knowledge, compassion, expertise, trustworthiness, and fun to be around. But I don’t know of a better fit for that than in insurance.

2017 was an interesting year for our industry, and 2018 looks to be no different. What are some challenges you see for the future of our industry and the independent agent?

With each passing year the time flies by quicker and the world seems to be changing on a daily basis. How and why our clients choose to handle their insurance needs is no different. We as a society have evolved into a world that has expectations that need to be met quickly. Staying ahead, or at least even, with how the buying public wants to deal with insurance and providing it in a way that works for them is the biggest challenge. Insurance choices are no longer confined to a couple of pages in a phonebook, but confined to what is available on the internet. Then when you throw in industry hiccups such as the individual health insurance market it becomes more evident that we need to be nimble and ready to move.

What are some of the challenges you have faced during your career?

One of the most challenging times for me was shortly after joining Al Torstrick Insurance, when my father-in-law was diagnosed with a very aggressive form of cancer. I had just obtained my license and the leader of our agency was in question.

Not to mention the stress of helping my wife through these times. During one of the many client visits, Al and I would talk about accounts, family and many other things.

One thing that he said that has stuck with me is, “not to worry about the things you can’t control, but focus on the things you can control.” I look back at those days and in hindsight there were several things that got our agency through it. First, Al was a man of planning. His personal and professional affairs were all in order. This was also in the early 2000’s when the property and casualty markets had firmed up and selling on price was not an option. This gave me a great opportunity to get to know our clients and earn their trust and respect. This was also the time that I got involved in the Young Agent (now Emerging Leader) program with IIAK. By being involved in the association, I was able to build those relationships which created many friendships and mentors in the industry. It was all of these factors and many others that allow our agency to weather the storm and get us where we are today.

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Tell me about your family.

I’m married to my best friend, Ali Johnson, who has given me two of the best young men, Davis (14) and Donovan (13). My parents live in Naples, FL which gives us a great vacation spot. Growing up I was the middle child between my sisters, Kara and Julie.

How do you strike a balance between work and family life?

It is very difficult to separate your personal life from your professional life. Then when you add the fact that you work with your wife, it becomes even more difficult. Ali, the boys and I sit down to eat dinner together almost every night (schedules permitting). Ali and I try hard not to mention work at those meals. That is time for us to learn what is going on in our kids’ lives.

Are there any lessons from your personal life that you’ve incorporated into your career?

One of the most important things that I have learned over the years is that everyone brings a value. We all enter into situations with our own prejudices but by listening to other points of view on the same situation, you are better equipped to make the best decision.

Hobbies or personal Interests?

I play the guitar and ukulele. I also really enjoy playing golf.

Yes, I like to score well and I get frustrated when I don’t but even those bad rounds are palatable when you get to spend a couple hours with good company. And that would be my favorite thing to do, spend time with good company.

What is something that people would be surprised to discover about you?

I consider myself to be somewhat shy. When I say that I don’t get many believers but internally this is something that I struggle with.

When I’m in comfortable situations, this isn’t true but put me in a new or uncomfortable situation and it can be. I go back to one of the things my father-in-law taught me, “don’t worry about what you can’t control”, and I can’t control opinions.

When it’s all said and done, what is the message you hope IIAK members take away from your time as chair?

When my term is done, I hope that the members that I have served are able to say that Mike has kept the motion of our association moving forward and put it in a position to serve its members for the next 122 years.

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Everyday Attitudes that Kill Success By: John Graham

“Martha has so much going for her, but she could be doing so much more for herself.” How many people do you know or work with like that? What keeps us from getting to where we want to be or what we want to do? Sure, it may be a lack of the right skills, bad luck, having other goals, or just being plain lazy.

More likely, however, the answer is elsewhere and much closer to home. We can call them “everyday” attitudes that are so much apart of us we don’t know the damage they’re doing.

Here are some of them: 1. “For what I get paid, I do more than enough.” Surprise!

You’re probably right. With so much pressure, it’s easy to feel this way today. Even so, it’s the attitude that’s the problem.

Otherwise pleasant people become angry, obstinate, negative, and alienated. It’s not the way to move ahead—or even stay where you are.

2. “I’ve put in my time and paid my dues. Now, its my turn.”

It may be a choice parking space, extra time off, a plum territory, a promotion, or bigger accounts. It doesn’t make any difference what it is; it’s easy to spot someone with a chip on their shoulder. Their attitude sends the unmistakable message that this person thinks they are special.

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3. “Sorry, but I’m really busy right now. Can’t you get someone else?” When asked to step in and help solve a problem, work on a project, develop a plan, or handle a difficult situation, some people make it clear that they can’t be counted on when needed.

4. “They’ll see what happens when I leave. It’ll take three people to replace me.” Even though we know that no one is indispensable, it’s tough for some people to get past the idea that they are the one exception. If asked, they’re quick to let it be known that they carry far more than their share of the load. Those around them often see it quite differently.

5. “Whoa! There’s only so much I can do.” It’s like the parent who installs a “speed limiter” on their kid’s car—only so fast and that’s it. Others put self-imposed limits on what they can or will do. By always playing it safe, they deny themselves the opportunity to see how much they can accomplish.

6. “With so many meetings, I can’t get my work done.”

You’re not alone if you feel this way. Companies are plagued with meeting mania wastes that wastes time and creates stress. Don’t complain; do something about it. Take a “how we can improve it” approach: meeting alternatives, requiring agendas that go to participants beforehand, stand up sessions, setting time limits, and three question participation evaluations.

7. “That’s not my job.” Not long ago, “silos” was at the top of the corporate jargon list—work groups, units, departments, and divisions operating totally separate from others. But countless individuals wall themselves off as if they completely isolated from the organization. They “write” their own job description and stick to it.

8. “I’m a hard worker.” Like beauty, hard work is in the eye of the beholder. Each of us has their own personal definition of what it means to them. But, frankly, it doesn’t make any difference what you and I may think it means. Pampering ourselves is out. Simply put, no one “earns points” or merits a “reward” today for hard work. What counts is measurable and it’s called results.

9. “Unless I get paid extra, I shouldn’t have to do it.” This is a tough one. An employer’ demands can go too far. And

employees can be shortsighted by putting on the brakes too quickly and miss opportunities for taking on task that can showcase their capabilities and demonstrate their skills.

10. “Sorry, but I don’t know anything about that.” It’s not unusual to hear those words, particularly when contacting customer service. But that’s far from the only place.

Unfortunately, they’re all too common throughout most businesses, sending the message that the person has stopped growing.

11. “My ideas aren’t important.” Not true! Whether they know it or not, most people have ideas and suggestions that can benefit a company. They not only doing their job, but they think about what’s going on around them. It’s a mistake.

If you’re one of them, take a chance because someone wants to hear from you.

12. “I meant to get it done. I’ll get right on it.” Why do some people agree to do something—and then ignore it by doing nothing, even after getting reminders? Sure, there are times when we all forget and a reminder helps. But, others can be chronic offenders and fail to respond even when offered help, being nudged, cajoled, and confronted. Everyone knows them: “If you want it done, don’t bother giving it to Brad.”

13. “I’ve been around long enough and the rules don’t apply to me.” Even though the words may never be spoken, actions make their meaning abundantly clear.

Chances are, these are people who won’t be around much longer.

14. “I didn’t know you needed it so soon.” This just might be the most insidious attitude of all for one reason: It’s patently pathetic in its intent. While the words sound so innocent and disarming, it shrouds the fact that those who use this excuse portray themselves as victims. It’s not their fault the work didn’t get done; they didn’t know when it was due. Did they ask? Of course not. They blame someone else for not letting them know.

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More often than not, it’s self-justifying and defensive attitudes that kill success. Rather than allowing someone to think we could have done more, perhaps much more with ourselves, how much better is it to have them say, “She’s done so much with herself. More than I ever thought she would.” We can call that success.

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm, 617-774-9759 or johnrgraham.com.

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Transition can be a challenging. When current President & CEO, Peggy Porter retires on January 31, our association is left with big shoes to fill. IIAK is fortunate to have found the perfect person in our current staff. Tara Purvis, current Marketing Director, will be taking over as President & CEO on February 1. Please join us in welcoming Tara into her new role in our assocation.

Congratulations on your new position!

What is your vision for IIAK?

Much like our world, IIAK is constantly changing and as we are continually having to adapt to meet the needs of our members, who in turn must adapt to the needs of their clients. I want our team to help our members adapt and be the first place our members look to when they have a question or challenge. We are here to protect their interests, be a trusted resource and problem solver for our members and we are always listening. If we can connect our agents to the answers they need in this multi-faceted business, I believe we will have done our job.

What’s your favorite part of your job?

Can I have two? First, is definitely the people. I love hearing about people’s lives, their families and how they got into the business of insurance. This business attracts great people and everyone has a unique story to tell. My second favorite thing is hearing when IIAK has made a difference in a member’s business, whether it be at an event and a speaker opened their eyes or a product that has saved them money and fundamentally changed the way they do business.

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Tell us about your work life up until now

I fell into associations a long time ago and have pretty much stayed in this space since. Right out of college, I moved to California to work for the Northern California Golf Association in Pebble Beach. I started as an USGA intern and worked my way up in the Communications Department.

After four years, I started missing my family and moved back to Kentucky. I then began working for the Kentucky Oil & Gas Association and finally found the Independent Insurance Agents of Kentucky in 2012. In each association, I have grown and learned the inner workings of associations from working with boards, member service, planning meetings, publishing magazines to the legislative process. I love this business and can’t wait to put my stamp on IIAK.

How can IIAK best support its members and help them succeed?

That’s an easy one! Use us. We have 87 products and services that provide value for our members. We have business solutions for your hiring and training needs, consulting for your legal matters, answers to policy, procedure and claims questions and weekly communications on topics affecting our agents. As far as how we can best support our members, IIAK is a wealth of knowledge and tools and we will continue to research and develop new resources. We will focus on enhancing an agent’s capabilities and keep them current with new offerings to better serve their clients. We know independent agents better than anyone else and we want to help them be successful.

Education

Bachelor of Arts – Advertising & Public Relations from Franklin College, Franklin, IN

Family

I am happily married to my husband Bryan of 5 years. We have a 7-monthold baby boy named Rex and a giant sheepadoodle named Franklin.

Hometown Frankfort, Kentucky

Hobbies

My number one hobby has to be golf.

I LOVE golf and have played since I was little and it is a big part of my life.

Thanks to my dad for teaching me, it is a big part of my life.

What would people be surprised to know about you?

I LOVE puns and really bad corny jokes. The cornier, the better.

What’s something on your bucket list?

To play golf at the Old Course at St. Andrews in Scotland and Augusta National

Favorites

Meal - Roast beef & gravy with mashed potatoes Place - Anywhere with my family Song - Don’t Stop Believing

by Journey Sports Team - UK basketball TV Show or Movie - Friends

If you could have a super power, what would it be?

Teleportation

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A Visit with the Law Firm (Part Two) By: Rick Pitts (Editor’s Note: In part one, Andy DeClair of the DeClair Insurance Agency was visiting with his lawyer, Sarah Comfore of Comfore & Patridge, over an errors-andomissions lawsuit.)

“I’m back, Sarah. Just like I said a few weeks ago, I don’t want to be here and I don’t want to be involved in all of this. But unlike last time, I will make sure that I mention how much I enjoy the people in the room!”

“Thank you, Mr. DeClair. The feeling is mutual – I wish I didn’t have to defend the agency, but I do appreciate you and the DeClair Insurance Agency as a client,” Sarah said.

She continued, “Andy, the bottom line is that we’re not much further along. Our firm has answered the complaint, essentially denying the things said in the complaint against you and we’ve said too that the agency doesn’t have any liability to your insured. That’s the typical pace on these things. I’ve made contact with the plaintiff’s lawyer and asked for documentation that would support their claim. It won’t surprise you that they’ve done the same.”

Andy sat up just a bit. “Sarah, they can have our entire file. In fact, I want them to have it. I’ve looked that thing over from beginning to end and I don’t think there’s any reason why we should have to pay some $20,000 or $30,000 theft loss just because they let their insurance lapse.” Andy sighed, “But I know our guy on this, Ted didn’t get them called like he had before when there was a pending cancellation.”

“Andy, when we met last we were talking about the law on this – this idea of a gratuitous assumption of duty. Your agency didn’t have an obligation to call the insured when the account went in to cancellation. However, once it started, it had an obligation to continue to do so,” Sarah said. “At least, that’s the plaintiff’s theory in this case. Ted had called them two or three times before that and they said they were sort of relying on him to call again.”

“Well, here’s the real problem with this, Sarah. I think we’ll be fine on this case. But what am I supposed to tell Ted and the other producers, ‘don’t call?.’”

A wry smile came across Sarah’s face. “Mr. DeClair, I am going to give you two answers to that question,” she said, “for the price of one!”

“The first answer is the largely theoretical one. The legal liability for following up on cancellation notices by calling them comes from deciding that you want to call them.

The agency chooses to create a duty it doesn’t otherwise have by actually making the calls.

“Then, when you ‘miss’ a call or something like it, you have potential liability. So, the academic, by-the-book answer is, ‘Don’t call. Don’t ever, ever call to follow up on a statutory, from-the-company notice.’”

Sarah paused. “I know you don’t like this, Andy, but the theory is that if Ted never started calling the amusement park people, then the agency wouldn’t have any exposure. The cancellation notice from the company for nonpayment would speak for itself.”

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“That’s just not going to work, Sarah.” Andy spoke slowly and softly. “We’ve prided ourselves for literally decades on our service to clients. How can we leave that behind?”

“I appreciate that feeling, Andy, I really do,” Sarah said.

“Here’s where the second, and more practical, answer comes in. It’s also the harder of the two answers to implement and manage. This practical answer isn’t for every single agency, believe me, or even every line of business within an agency, because it requires consistent, professional judgment rather than merely an unbending rule.”

“Speaking of which,” Andy jumped in, “aren’t we a little bit forced by our prior practice to keep going?”

Sarah answered immediately. “Not completely. For instance, we could simply start telling new clients that we will no longer engage in follow-up or something like that, so that at least we’re getting new clients accustomed to paying attention to their mail or email. The agency could also send out a letter announcing its new procedure.

We can slowly start to condition insureds – even insureds who’ve been called before – that we can’t do that any longer.”

“I don’t understand.”

“Andy, a rule that says, ‘we never, ever call’ is simple. It’s easy to communicate to staff. That simple rule, though, gets smashed for most agencies when it collides with reality.

Andy DeClair look puzzled. Sarah continued, “Let’s say you have an infirm elderly client you’ve had for decades missed a payment and goes into cancellation. Imagine it’s the first time it’s happened in thirty years with that client.

What’s your staff going to?”

Andy said, “They would call, even if it’s just to check up on them.”

“Right.” Sarah’s eyes lit up as she spoke. “Can’t you hear the start of the conversation now? ‘Now, Mr. DeClair said I’m not supposed to call, but I’m just calling to check in on you since we didn’t get your payment…’”

“Ok, ok, I get it. So, what’s the answer?”

“The practical answer, Andy, is messy, but I think there’s a little bit of a step-by-step process that can help sort it out.

First, I think you need to decide exactly what you want your policy to be. Sort it out and decide who gets called.

Commercial lines clients? New clients? Clients for more than a certain number of years? What do they get called for? Cancellation only? How many times?”

Andy looked shocked.

“It’s a lot to take in, I know,” Sarah said. “But once you’ve decided that your agency makes calls as a matter of policy, then you have to do some sort of arbitrary linedrawing to try to confine or corral the risk we’re taking on.”

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Sarah continued, “Andy, I know this is hard to do, but what we’re really trying to create is a livable working environment that balances client service needs against our need to prevent E&O losses through good practices. Yes, it absolutely involves drawing some arbitrary lines, and many agencies aren’t comfortable doing it that way.

“What we want to do is prevent situation’s like Ted’s, where frankly I think you’ve got a client who’s abusing you, your staff and your resources. We want to prevent that kind of relationship from getting started while at the same time preserving the discretion and the judgment to call someone who really might need it and might legitimately expect it.”

Andy shook Sarah’s hand as he stood to leave. “Sarah, why do I always leave our meetings with more work to do and hard choices to make?”

“I’m not exactly sure why this happens, Andy. But I am sure I like representing agencies like yours.”

Richard S. Pitts, IIAK’s General Counsel is also part of a member benefit, First Call Free Legal.

Members receive up to a 30-minute phone consultation on an insurance or agency-related matter once a year at no charge. Contact IIAK for more information.

We know what it took to build this unique business.

And we know what it takes to protect it.

Underwriters who know and understand what coverages are necessary for each unique business.

Loss prevention professionals who use a hands-on approach to help develop programs tailored to each specialty business.

Claim reps with the expertise and technology to process claims quickly and efficiently.

As an Official Supplier of the Silver LiningÂŽ, you and West Bend will find a specialized insurance plan for your valued customers.

To find out more, talk to your West Bend underwriter.

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BEWARE of the top seven agency myths By: Roger Sitkins If you hear the same things often enough, repetition becomes reality. And through the years in our industry, certain ideas have been repeated so often that they’ve become widely accepted as the truth when in fact, they’re nothing more than myths. As a result, many people in the agency business have made some very serious mistakes caused by believing in these myths. Here’s my list of the top seven myths to avoid.

Myth #1: Every Account is a Great Account Most think that every account is a great account, which simply is not true. This is especially true with you newer producers, who tend to confuse activity with results. In their minds, anyone who can fog a mirror and pay in U.S. dollars is a great account. These are normally order-taking accounts. Typically, the prospect will call for an insurance quote after seeing an ad or will click to receive a “Free Quote” through the agency’s web site.

be your income and expenses? Most agencies — not all, but most — will lose money on the vast majority of their customers because they don’t even take a look at it, they don’t “know”.

Myth #2: Hire People with Insurance Experience When most agencies have an opening, because they say they don’t have time to train, or any New Employee On-Boarding process, they look to hire people from inside our industry. Typically, they want service people who are already licensed and producers with experience at another agency. But when you go that route, in most cases, all you’re really doing is hiring a bunch of baggage!

If someone is going to move to your agency, you should be questioning why. Assuming they’re not working for a terrible agency, you have to wonder why they’re leaving their current employer if they’re really that good.

So the producer follows up and provides a quotation and winds up taking an order on about two out of ten opportunities. They sell just one policy that the prospect had requested, with the plan to round them out someday.

The problem is, that day never comes. If it did, we’d certainly have a smaller percentage of single-policy accounts. But the reality is that more than 50% of personal lines and small commercial lines are single-policy accounts.

You wind up with low revenue per customer and lower retention. No wonder the average agency loses money on 80% of their customers!

I remember one of the early interviews I conducted as an agency owner in Michigan. The prospective employee was working for a reputable competitor in town and had applied for a personal lines CSR position with us. Naturally, I asked her why she wanted to change jobs. Her reply: “ If I can make a few bucks more per hour, that would be great!

I’ll move.” Wrong answer! What happens next year when someone else offers her a few dollars an hour more?

I’m a firm believer that you have to know your numbers.

You may recall my comments in past articles about “Knowing versus Guessing”. It’s important to complete a profit-center analysis on your various types of clients. For example, if all you had were personal lines, what would

Hire Attitude and Aptitude. I believe in hiring attitude and aptitude first. I also believe in hiring to match your overall agency culture. If we can hire great people and train them, we’re better off. OK, I realize that it’s not that easy, but you can always teach insurance.

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I mentioned above the importance of knowing vs. guessing your numbers. It’s equally important to know your people, both existing and future employees.

With producers, look for sales talent first. You can always teach them insurance. In fact, at one point, everyone reading this article knew nothing about insurance! You’re not born with innate knowledge of the insurance business — you have to learn it! My two grandsons will attest to that — once they learn how to talk (they’re only two weeks old). Right now they know nothing about insurance. And at some point in their life, even the most successful producers in the industry didn’t, either.

Similarly, seek out service people with the qualities that can’t be taught. Look for customer service people with empathy; those who truly enjoy helping people and have a “customer-first” attitude. Don’t hire someone who’s rude just because they know insurance.

Get Profiling Assistance. Work with a profiling firm such as Omnia. Profiles can help you take a closer look at people so that you’ll know what you’re getting. What’s interesting about this service is they ask nothing about insurance, yet they can tell you very clearly what it takes to be successful in this business. Their profiles tell you how the candidates’ characteristics match up against the traits needed to be successful at a specific job. It’s really remarkable how accurate profiles can be, so if you are working with a reputable profiler, listen to them. If they advise you not to hire a certain candidate, believe them. No matter how much you like that prospective employee; it’s never a good idea to hire against the profiler’s recommendation.

Myth #3: You Can’t Have Too Many Insurance Carriers Are you proud that your agency represents so many companies? If so, you’re not alone. I’m amazed at the number of carriers the average agency has. But what’s even more amazing is when they figure out how many they have! In reviewing their “insurance company accounts payable,” most agencies are shocked to see how many carriers are listed. Sometimes, when looking at all companies and E&S Brokers, it’s in excess 75.

Often, agencies will take a contract with one company or one E&S lines broker for one piece of business.

We always talk about the 80/20 Rule, but were you aware that it applies to your carriers also? Basically, 80% of your premium volume is written with 20% of the carriers that you represent. Take a look at your own book if you don’t believe me.

Today more than ever, you need relationships and clout with your carriers. That way, you’re more apt to get their cooperation when you need help with a client who is highrisk or hard to place. Chances are you won’t enjoy that benefit if you’re trying to “spread the wealth”.

First, you’ve got to know your numbers. You may not agree with the 80/20, but go ahead and find out if it applies to you. Just look at all the carriers that make up the bottom 80% and ask yourself: “Why do we have this carrier? Who else could take this premium volume? Who could we take this premium volume to, continue to do a great job for the client but more importantly, be negotiating better deals because we have the clout to do so,” etc. Currently, there are a few major companies that allow the business that you place with E&S business lines to count towards your premium volume requirements on your contingency income contract because they own the E&S business also.

Myth #4: 90% Retention is Great Everyone thinks this is such a great business because90% of your customers stay with you. As wonderful as that sounds, here’s another area where you have to know your numbers.

For example, let’s say that you have 1,000 customers and a 90% retention. Here’s how that would play out over a five-year period.

Year 1: 1,000 clients Year 2: 900 Clients Year 3: 810 Clients Year 4: 730 Clients Year 5: 660 Clients Basically, in four renewal cycles, you’ve lost one-third of your business! And when you look at it that way, if you’re not growing by 33% every four years, you’re going backwards. So the fact is, 90% retention is terrible.

There are several keys to retaining clients, starting with taking a hard look at writing full-time clients only (for the 10 millionth time). Also, you should have formal relationship management programs in place for your A&B customers and do stewardship reports for them, as well. Finally, if you’re really serious about retention, then you won’t start treating every customer like a VIP customer?

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Myth #5: We Can’t Compete with GEICO and Progressive GEICO & Progressive each spend $1 billion a year on advertising. When was the last time you watched TV and didn’t see a gecko or Flo? Geico’s gimmick has been that customers who spend 15 minutes can save 15% on their insurance. Now Esurance is saying that 15 minutes is too long! They claim they can save you just as much on your insurance in half the time — just 7.5 minutes. You really can’t compete with that (and I hope that you don’t want to) because it’s strictly a commoditybased business! However, you can compete — and you will win — if you decide that you want a relationship-based business and everybody is a VIP. A couple of questions to ponder: Have you ever been the lowest price and not won the account? Have you ever been a higher price on a renewal but you still kept the account?

That should tell you that relationships are important, and it’s not always about price.

Granted, some buyers only care about price. But again, those are the commodity buyers that will leave you for $100 a year. Since you can’t build a career or an agency around them, let them go — you’re not making money on them anyway!

Myth #6: You Can’t Earn a 25% Operating Profit People are constantly refuting the idea that it’s possible to earn a 25% operating profit, but the truth is, yes you can!

How? (And here comes the big trick) You simply can’t spend more than 75%! Seriously, I could earn a 25% operating profit if I truly managed to a financial model designed with that in mind. In that case, the bottom line would become the top line and you would live by the 25-50-25 Financial Model (a 25% operating profit; 50% service and administrative expenses, and 25% on sales expenses).

What’s your Financial Model? At some point, you have to draw a line in the sand and commit to earning a 25% profit. Make it a defining moment!

Myth #7: A Website and Social Media Will Solve All of Our Problems I can’t believe how many agencies will spend $50,000 on a website and expect the public to knock their doors down.

Apparently, their theory is “Build it and they will come.” But after seeing some of these sites, I wonder how much time (if any) the agency owners actually spend on them. Some of the sites are atrocious. What’s worse is the owners are often oblivious to what’s on them. They don’t visit them and don’t realize that their website is their brand, that they need to protect. Instead, they’re using their website for automated practice quoting: “Click Here for a No-Obligation, Free Quote.”

While that may seem like a great way to get leads, those leads are only as good as the follow-up. Usually, agencies respond to automated inquiries either with an automated online reply or a phone call, or in rare cases, both. But more often than not, they do none of the above, which understandably doesn’t sit well with most prospective customers. After all, if they can’t follow up there, I’d hate to see how they service their accounts.

Social media is another arena to approach with caution.

Be especially careful about what you and your employees post on Facebook. If you don’t want your customers to see it, don’t post it. For instance, if you’re asking customers to “like” your page, don’t be posting wild and crazy party pictures on it. And speaking of pictures, if you’re part of an online professional networking group such as Linked In, make sure that your profile photo looks professional. I’m often invited to connect with other professionals and am frequently surprised by the poor quality and casual, “afterhours” look of some of the photos. Do you really think that a photo of you partying on a boat projects the appropriate professional image?

THE BOTTOM LINE Obviously, myths abound in our business and these are just a handful of the most prevalent. It’s your job to avoid them.

Don’t make them the future of your agency. Prove them wrong! Or you can ignore what you’ve just read, continue buying into them and watch what happens. It’s your choice.

Roger Sitkins, CEO of Sitkins Group, Inc., is the nation’s number one “Agency Results Coach.” In addition to establishing The Sitkins 100™ and Sitkins International, he is the creator of The Vertical Growth Experience™. His latest offering is The Better Way Agency, a webbased training program that shows agency owners ways to make significant improvements in all areas of the agency. To learn more, go to www.thebetterwayagency.com.

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Save These Dates

Check out these great events near you!

Thank You 2018 Industry Partners (as of 01/15/18) Platinum

CRM: Financing of Risk February 20-23

Hilton Garden Inn Northeast • Louisville

Big “I” Legislative Conference April 18-20

Grand Hyatt Washington • Washington, D.C.

Road Show May 1

Summit Hills Country Club • Crestview Hills

Gold Acuity Kentucky Growers Insurance Co. Safeco Insurance Silver

KY Dam Village State Park • Gilbertsville

Amerisafe, Inc. Keystone Insurers Group Secura Insurance Seneca Insurance State Auto Insurance Company

Road Show

Bronze

Road Show May 8

May 9

Mariah’s • Bowling Green

Leadership Conference May 16 & 17

Owensboro Convention Center • Owensboro

Alexander J. Wayne & Associates Countryway Insurance Company EMC Insurance Company Frankenmuth Mutual Insurance Grange Insurance Company J.M. Wilson Prime Insurance Companies

Road Show May 22

Republic Bank, Brownsboro Rd • Louisville

E&O: Roadmap to Policy Analysis May 23

IIAK Education Center • Louisville

Road Show May 24

London Community Center • London

122nd Annual Convention & Trade Show November 14-16

Omni Hotel • Louisville

Want to be an Industry Partner?

Contact Nikki Robins Communications Director nrobins@iiak.org www.iiak.org | January/February 2018 | 33

34 | www.iiak.org | January/February 2018

WE’RE SOCIAL Follow us on your favorite social media sites.

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Classifieds Acquisitions

Looking for Producers

Established Louisville agency interested in acquiring insurance agencies in Jefferson and surrounding counties. If you are interested in selling, merging, or need assistance with perpetuation, we would like to talk with you in confidence.

Independent with top best markets looking to expand presence in Jefferson, Oldham or Shelby counties. Wanting Personal lines, Producer or book of business to move or purchase.

All arrangements possible, in strict confidence.

Call R. Alex Rankin, CPCU or Philip Anderton, CIC, at Sterling G. Thompson, Co. at 502-5853277

Please send inquiries to Turner Insurance Agency, 2460 Shelbyville Road, Shelbyville, KY 40065 or call Kurt Turner, CPCU at 502-633-6060.

Advertisers We would like to thank our advertisers for their support.

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For classified ads or to advertise in the Kentucky IA, contact: Nikki Robins, Communications Director at nrobins@iiak.org or call 502-245-5432.

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Having trouble writing vacant homes?

Call us today!

If your clients are going on an extended vacation or have moved into a new house and still have the old one up for sale, vacant home insurance can be hard to get.

We have a program especially designed for this market.

Vacant homes are an easy target for thieves, vandals or even homeless people.

Great products, great rates, great service.

Don’t put your clients at risk. Vacant homes are a specialty at Bolton & Company.

• Coverage to $4,000,000 • Buildings undergoing improvements also eligible • Very competitive rates

Call us today and let your clients rest easy.

That’s our policy. It’s why we’ve been in business over 50 years.

• Policy terms of 3, 6 or 12 months available • Online rating at our website: www.boltonmga.com

2400 Waterfront Plaza • 325 West Main Street • Louisville, Kentucky 40202 Telephone 502.583.8361 • 800.292.6597 • Fax 502.584.6131 • www.boltonmga.com