Kentucky IA - July/August 2018

July/August 2018

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What's

Inside

Page 10

Contents

10 Conference Highlights 13 Staff Profile: Amy Good

Page 13

15 The best way to combat digital disruption, increase revenue, and get your life back 18 IIAK By the Numbers 19 What does IIAK do for me?

27 Yet Another Two-fer

Page 32 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

32 Socially Awkward

In Every Issue 4 From the Chair

24 Upcoming Events

5 DOI News

35 Advertiser Index

6 Education Calendar

35 Classified Ads

9 Industry Partners

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.

www.iiak.org | July/August 2018 | 3

Officers 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

Staff

Chair From the

With this publication, we are officially at the midway point of 2018. In the first six months, your association has put together great Legislative meetings in Frankfort and Washington DC, and one of the best Leadership Conferences I’ve ever attended. If that wasn’t enough, IIAK came to you with five Road Shows throughout the Commonwealth. Each of these events were great opportunities for you, our members, to become more informed on legislative issues, industry education, industry technology, and good old-fashioned networking. Each of these events are designed to bring more value to your membership. And there are still more opportunities to come!

Events are just one of the benefits of being part of the Independent Insurance Agents of Kentucky. Having the privilege of service on your Board of Directors gives me a unique perspective when it comes to all that IIAK offers its members.

There are member benefits that provide agency administration assistance for you such as: employee benefits through the Anthem Group Health plan, personnel staffing with Work At Home Vintage Experts (WAHVE), or errors & omissions coverage for your agency. Have a legal question pertaining to your agency? Our First Call Free Legal program grants 30 minutes of free legal counsel.

You gain access to many valuable resources with your membership. I strongly encourage you to take 5-10 minutes to look around the IIAK website and see what great resources are available and what you can take advantage of.

If there isn’t a benefit available at this time to address your needs, reach out to IIAK and let them know where your pain points are. There is a good chance that you aren’t the only one in need. This helps IIAK continue to modify the offerings to cater to you, the member.

Every time I speak at a function, I make a point of stating that IIAK is YOUR association. We make every effort to bring value to your membership. Take advantage of the benefits currently available and offer feedback on the benefits you would like to see in the future.

I look forward to seeing many of you on November 14-16 at the 122nd Annual Convention & Trade Show being held at the new Omni Resort Hotel in downtown Louisville.

Tara T. Purvis

President & CEO Katie M. Freshley

Member Services Director Amy Good

Financial Services Director Cassie Powell

Director of First Impressions Nikki S. Robins

Communications Director Kristie Weyer, CISR

Insurance Services Director

4 | www.iiak.org | July/August 2018

Michael G. Johnson, CIC

News Department of Insurance

This time of year presents an agent with many opportunities to discuss coverage with policyholders and to create new lifelong clients.

For instance, young adults and recent graduates beginning the next chapter of their lives may need to review coverages or begin new policies. This could be as simple as changing where they park a vehicle for their auto policy or as significant as purchasing coverage for their first home. Reaching out to policyholders who are experiencing such milestones can be a great way to strengthen the relationship between client and agent.

State agencies across the nation have urged preparedness for severe weather during the spring and summer, but policyholders should consider coverage for sunny days and weekends too, when families participate in backyard fun. Pools and trampolines can result in incidents that are not covered in every homeowner’s policy. Now is a good time to discuss umbrella policies with your clients.

Updated Auto & Home Insurance Guide New and current policyholders can benefit from the updates made to the Department of Insurance’s (DOI) Auto & Home Insurance Guide. The guide is a consumer resource about auto and home insurance products. The guide also includes premium comparison using data submitted by Kentucky insurers. Housing and vehicles have changed significantly since our last update, so the guide includes new comparison examples that reflect contemporary scenarios.

In May, property and casualty insurers in the state should have received an email from DOI including both an order and our new examples. The full order and examples are available under the “What’s New/Recent Topics” section of DOI’s website. We anticipate posting the new guide later this summer. eServices The previous column outlined how DOI uses online services to streamline communication between consumers, licensees and our staff. Since then, our development team has expanded our eServices capabilities, providing several new options for licensees.

Users can now add or remove locations, edit locations and assign agents or managing employees for rental vehicle

businesses. With the exception of adding a location (which requires the same $50 fee as filing a paper application), there are no fees associated with these services. Rental vehicle agents who complete the licensing process will automatically populate in a list of available assignments, so users can easily add them to or remove them from business locations.

Agents who work with auto and motorcycle products now have the option to submit a No-Fault Rejection form (NF1) online. After submitting a policyholder’s information and selecting a no-fault option, you will be provided with a confirmation email and printable letter that can be given to the client while they are still in your office. Identity protection is important, so the printable confirmation will not include the policyholder’s full social security number.

The information needed to file an online rejection form is the same as the paper form. There are no charges or fees associated with an online submission. The no-fault rejection form is delivered instantly, so the process can be completed in a single day. Online entry also eliminates other common problems associated with no-fault rejection filings such as incomplete information. Currently, DOI does not offer the option to request No-Fault Verification (NFV-1) online.

Another new online feature enables agents to request and receive certification and clearance letters. Previously, licensees could request a letter via eServices and DOI would mail them a hard copy. Users now have the option to receive the letter via email or a printable PDF document. The fee is $5, the same as requesting a paper application.

For additional information, contact the Kentucky Department of Insurance by calling 800-595-6053 or by emailing doi.info@ky.gov. www.iiak.org | July/August 2018 | 5

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:

E&O: Roadmap to Policy Analysis October 3 • IIAK Education Center

ONLINE COURSES VIA ABEN: Date/Time

Seminar Name

July 30 @ 1 pm August 27 @ 1 pm

Agency Management Based E&O and Ethics

3

July 20 @ 3 pm August 2 @ 3 pm

Annuity Basics and Where They Fit

1

July 18 @ 11 am August 22 @ 11 am

Business Auto Claims That Cause Problems

2

July 12@ 11 am August 9 @ 11 am

Business Fraud Protection

1

July 16 @ 11 am August 17 @ 11 am

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

3

July 13 @ 10 am August 7 @ 2 pm

Commercial Lines Claims That Cause Problems

2

July 17 @ 10 am

Commercial Property Endorsements That Can Make You Money!

2

July 24 @ 1 pm August 16 @ 1 pm

COPE – Property Underwriting and Effective Loss Control

2

July 27 @ 2 pm August 16 @ 2 pm

Data Privacy Insurance

2

July 9 @ 10 am August 1 @ 10 am

Directors and Officers Liability Insurance

2

July 9 @ 1 pm August 13 @ 1 pm

Double Trouble - Certificates of Insurance and Business Auto Endorsements

2

July 19 @ 11 am August 7 @ 9 am

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

6

July 26 @ 10 am August 28 @ 10 am

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

3

July 26 @ 2 pm August 28 @ 2 pm

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

3

July 12 @ 3 pm August 9 @ 3 pm

Estate Planning Basics

2

6 | www.iiak.org | July/August 2018

CE Credits

Date/Time

Seminar Name

CE Credits

July 27 @ 11 am

Ethics and Business

3

August 27 @ 2 pm

Home Based Business Exposures

2

July 18 @ 11 am August 2 @ 11 am

Hot Topics in Personal Lines

2

August 22 @ 2 pm

Liability Issues to Worry About – Indemnity Agreements and Additional Insureds

2

July 17 @ 10 am August 17 @ 10 am

Long Term Care Insurance

2

July 19 @ 11 am August 19 @ 11 am

National Flood Insurance Program Basic Course - 2016

3

July 27 @ 2 pm August 24 @ 2 pm

Personal Fraud Protection

1

July 11 @ 11 am August 8 @ 11 am

Personal Lines Claims That Cause Problems

2

July 27 @ 11 am August 24 @ 11 am

Professional Ethics in the Insurance Industry

3

July 12 @ 2 pm August 9 @ 2 pm

Property & Liability Concepts - Comp. Cov. Series

2

July 24 @ 9 am August 28 @ 9 am

Rental Cars: More Than Meets the Eye

2

July 20 @ 10 am August 17 @ 10 am

Shake, Rattle, and Roll with it- Earthquake Basics

1

July 30 @ 11 am August 27 @ 11 am

Those Kids and Their Cars!

2

July 31 @ 2 pm August 28 @ 2 pm

Top 5 Life Insurance Uses

2

July 13 @ 3 pm August 1 @ 3 pm

What you Need to Know about Employment Law & Coverage

2

July 17 @ 10 am August 14 @ 10 am

Workers Compensation Beyond the Basics

3

New Hire eLearning Training Available!

Visit iiak.org/education for more information www.iiak.org | July/August 2018 | 7

®

IIAK would like to welcome our newest members:

Thank You 2018 Industry Partners (as of 06/01/18) Platinum

Agency Members Compuche Insurance Agency Louisville

S. Cohen Insurance Fort Thomas

Gold

Summit Insurance Group Frankfort

Taylor Insurance, Inc. Harold

Associate Members AmWINS Brokerage of the Midwest, LLC Cumberland Surety Eastern Alliance Insurance Group ICW Group Insurance Companies McNeil & Company, Inc. For information regarding IIAK membership, contact Amy Good, Financial Services Director 502-245-5432 • agood@iiak.org

Want to be an Industry Partner?

Contact Nikki Robins Communications Director nrobins@iiak.org

Silver AFCO Amerisafe, Inc. Kentucky National Insurance Co Keystone Insurers Group KY Associated General Contractors Seneca Insurance State Auto Insurance Company Bronze Alexander J. Wayne & Associates AmWINS Brokerage of the Midwest, LLC Anthem Blue Cross Blue Shield Auto-Owners Insurance Company BITCO Insurance Companies Capital Premium Financing ClearPath Mutual Columbia Insurance Group Countryway Insurance Company EMC Insurance Company FCCI Insurance Group FFVA Mutual Insurance Company

Frankenmuth Insurance Imperial Premium Financing Specialists InsurBanc J.M. Wilson Market Finders Insurance Corp Motorists Insurance Group Prime Insurance Companies Summit SwissRe Corporate Solutions United Home Insurance Company Westfield Insurance

www.iiak.org | July/August 2018 | 9

We would like to thank the 92 attendees who were able to join us for another spectacular Leadership Conference in Owensboro.

While the rain greeted us both on our drive in on Wednesday and heading home on Thursday, skies were clear and we had gorgeous weather for the majority of our stay. Wednesday morning Kelly Donahue-Piro lead a discussion on how to go beyond customer service and improve the customer experience. Left, Mike Johnson called his agency during the presentation to illustrate that the entire staff, from admins to agent, have a hand in the customer experience.

After a delicious taco bar lunch, crowd favorite Beth Z proved that everyone can use a Nerdy BFF. Her back-to-back sessions kept the energy high and gave attendees TONS of apps to streamline their work and home life - and even a few just for fun! (If you would like to be added to Beth’s mailing list, text NERD to 66866.)

The night concluded with our 3rd Pitchin’ for PAC Corn Hole Tournament.

The competition was stiff this year, but the team of Robert Palmer from KEMI and Justin Bruce from Glass & Thompson claimed this year’s title (pictured below). But best of all, we were able to raise more than $10,000 for our state and national PACs!

10 | www.iiak.org | July/August 2018

Thursday started bright and early with a legislative session recap and an election prevew

by Dustin Miller from Government Strategies followed by Gretchen Copley of KEMI giving us a more in-depth view of the new worker’s compensation reform. Sydney Roe rounded out the sessions with an engaging presentation on how to CRUSH social media. The golf scramble ended a successful conference with beautiful weather and 24 golfers.

The team of Chip Wilkins (Lawton Insurance), J.D. Lester (Cole & Durham Insurance), Cody Quinn (Al Torstrick Insurance Agency, Inc.) and Bryan Buchanan (Lawton Insurance) prevailed as champions. Thank you to all who made their way to Owensboro and for those of you that missed... see you next year!

Check out our Instagram and Facebook pages for even MORE fun photos!

www.iiak.org | July/August 2018 | 11

© SECURA Insurance

LEXIE • Born into an insurance agency; worked at two of them • Loves the Green Bay Packers, music, her toddlers… in reverse order • A decade of insurance experience

Has walked in your shoes

Meet Lexie, one of our Commercial experts. Agents call her first because she’s worked at an agency and knows what they want. She’s quick to reply, open-minded, and knows her stuff; just like her colleagues. She may even trash talk football or the latest breakout rock band.

High standards you can rely on from real people. Plus, they’re backed by our caring claims group who will get your clients back on their feet.

SECURA Commercial. It’s how you get ahead.

12 | www.iiak.org | July/August 2018

Commercial | Personal | Farm-Ag | Specialty

Financial Services Director Time at IIAK: 1 year What does your job entail?

I take care of anything associated with accounts receivable and accounts payable for IIAK. What do you like most about your job?

I have always loved numbers and have had several accounting/economics classes so this is a nice fit for me.

What was the first job you ever had?

My first job was working for Fairfax Family Fund, a finance company. At 15 years old, I was part of a call center (probably one of the first). It was a group of high school girls from around Louisville. I eventually became the team lead.

What are you most proud of, personally or professionally?

I am most proud of the fact that my children (Lindsay, below left; Rachel, below right) have grown up to be responsible, contributing and hard-working adults.

Tell us about yourself I am the youngest of four.

I am married (almost 30 years) to my husband Bruce, and we have two grown daughters: Lindsay and Rachel. I love to fish and go boating. Rough River Lake is my happy place!

Education Background: Although I have attended many colleges and universities over the years including UofL Speed School, Bellarmine and EKU, I have an Associate’s degree from Sullivan University in Business Administration.

Name something people would be surprised to know about you.

I graduated high school at 16 years old.

Name one thing on your bucket list To stay at one of those tropical, over-the-water bungalows in an exotic location.

Favorites Food: I like all kinds of food so picking just one is difficult.

Movie: I’m a lover of old movies – Turner Classic Movies (TCM) is one of my favorite channels. My mother was a big influence on my movie preference.

Band: My music tastes are quite varied, but alternative rock tops the list. I also appreciate music from the 60’s such as Bob Dylan and The Band.

www.iiak.org | July/August 2018 | 13

Doing The Right Thing Since 1964

James A. Roe, CPCU, ASLI President

Our people will earn your trust.

Our service will keep it.

We understand the needs of today’s independent agents, so we offer more than a diverse line of product offerings. We have personable experts who will work seamlessly with your team to meet the needs of your customers, where and when you need it. When you want service that exceeds your expectations, we’re ready.

Let us help you find the right solutions. ®

800.878.9891 ArlingtonRoe.com Aviation | Bonds | Brokerage | Commercial Lines | Farm | Medical Professional Personal Lines | Professional Liability | Transportation | Workers’ Compensation

If I asked you what you do for a living, how would you respond? If your answer revolves around the fact that you sell insurance, you may want to begin to rethink your answer. Computers, call centers, and even smart phones can all sell insurance better and faster than you.

But you already knew that. So, the better question is, “What are you going to do about it?”

The act of selling insurance is transactional. Selling insurance is also only one part of what the best insurance agencies and agents provide their clients.

It’s time for insurance agencies to focus on what they do best and allow technology to support you, not work against you.

See, somewhere in the transnational world of insurance, many independent insurance agencies lost focus of what they do best… True risk advice and relationships.

Guess what, you can’t provide true risk advice in 15 minutes, so why are you trying to do it? Too often I see insurance agents trying to play a game they can’t win, and even if they do win, they are often not satisfied, nor are they profitable.

So how can you begin to move from a transactional agency focused on selling insurance to a relationship based agency focused on risk advice and relationships?

STOP SELLING THE “OLD WAY”

When I ask agencies and agents, “What is your sales process?” I typically receive blank stares because most insurance agencies do not have a true selling system.

In fact, even in today’s information rich world, most agents use the same selling system that has been in place for the past 50 years. It’s called the look, copy, quote, and pray selling system and it creates little value to your clients and no differentiation from your competition.

Here is how it works: 1. Look — ”Can I look at your policies?”

2. Copy — ”Let me copy what you currently have.”

3. Quote — “I will go to my markets and get you some quotes.”

4. Pray — ”I pray my price is the best or maybe I’ll just get lucky.”

The reality is that if you work hard enough, you can do okay in this sales philosophy. However, it offers a poor return on your time investment and is dangerous from an E&O perspective.

As a true insurance professional, your job is not to provide quotes. Your job is not even to sell insurance.

If insurance is your only solution, you are a commodity broker. One of the keys to differentiation is the understanding that insurance is one of your solutions, not the only solution.

Your main task is to provide risk advice and build relationships. Selling insurance is the byproduct of your work, not your entire body of work. To become a true risk advisor, you must be crystal clear on identifying your ideal client and the value you bring to your ideal client.

www.iiak.org | July/August 2018 | 15

CREATE TRUE POINTS OF DIFFERENTIATION

If insurance isn’t your only solution, what is the solution?

How can you differentiate beyond selling insurance?

First, ask the question, “What makes us different?” There is a reason why the majority of insurance consumers say, “You insurance agents all look and sound the same.” It’s because it’s true.

WARNING: Most agencies try to differentiate themselves from their competition by saying the exact things their competition is saying.

If I ask agencies what do you do that makes you unique, here are the five most common answers.

• We have great service • We have competitive rates • We represent all the best carriers • We are local • We have the best people These responses create zero differentiation. Don’t use them. Stop it.

Outside of not being local (which usually means, we don’t really do anything, but we are across town if you would need us), which of these responses makes you any different from most of your competition?

You need to change the conversation from transactions and quoting insurance to risk advice and relationships.

What are some proactive risk services you offer your ideal clients? Every agency has different services, but here are some examples of true risk services that can be differentiators for your agency.

• Quarterly/semi-annual scheduled strategy meetings • Claims advocacy & pre-loss training • Safety & risk management training • Educational seminars (onsite/offsite/online) • Formal report to value audits • In-house claims manager • Verification and analysis of work comp experience mod • Defensive driver programs • Annual updated risk survey • Business interruption worksheets verified by CPA • Contract/lease review • Proactive certificate of insurance management Your list may be completely different depending on the products and services you provide, but note that none of these examples are about insurance quoting. They are about value based services that help your clients financially and differentiate you from everyone else.

16 | www.iiak.org | July/August 2018

THE VITAL FEW VS. THE TRIVIAL MANY

Once you stop selling the “Old Way” and create defined points of differentiation, you can begin to focus your time and effort on your best clients and ideal future clients.

One of the reasons that agents tell me they don’t provide ongoing risk management and advice is that they are simply “too busy.” Every day is a crazy day answering the phone, returning emails, and putting out whatever fire is blazing.

My response is always the same, “Are you busy, or are you productive?” Busy has become a badge of honor today. We are consistently bombarded with catch phrases like, “hustle” and “grind.” I am 100% in favor or working hard, but too often, I see busyness being confused with production.

At my firm, the Sitkins Group, we have studied thousands of agencies and agents over the past 35 years and have found that there is always a predictive imbalance in the universe based on the 100-year-old Pareto principle. The 80/20 rule is very real today and vital that agents understand its significance. Here are a few examples for insurance agencies.

• 20% of your carriers produce 80% of your commission • 20% of your clients produce 80% of your revenue • 20% of your effort produces 80% of your results The 80/20 rule is not exact, but it is consistent. The bottom line is this, insurance agencies are spending too much time chasing the trivial many vs. focusing on the vital few.

For you to become relationship and risk advice focused, you must create the time to build those relationships and provide risk management services. That means you need to become intentional about your time, effort, and energy.

When you understand that your main job is to provide risk advice, you have unique points of differentiation, and you believe that your time is your most precious asset, you become more selective.

While every prospect and client can technically “buy” from your agency, that doesn’t mean they are the “right” prospects or clients. Any doctor can provide a routine physical exam, but that doesn’t mean they all do them. I don’t know of any highly paid medical specialist that is regularly providing routine physicals to any patient that wants one. That’s because specialists understand their unique abilities and what effort produces the best results. This is a hard concept for many agencies and agents to grasp. Not every opportunity is a good opportunity.

The things you currently are getting paid for (insurance transactions) will be replaced by the things you are not currently getting paid for (risk advice and relationships).

You get to choose the game you want to play.

Choose wisely.

Brent Kelly is a speaker and executive coach with The Sitkins Group. Contact Brent at brent@sitkins.com or visit Sitkins.com to learn about their training and coaching programs.

When you understand that your main job is to provide risk advice, you have unique points of differentiation, and you believe that your time is your most precious asset, you become more selective. You also become more profitable.

LOW PRICE TRANSACTIONS COST A LOT

If clients don’t value your advice, expertise, and relationship, what do they value? You already know the answer… Low priced transactions.

That’s a game you can’t afford to play, and long-term a game you will not win.

Instead, what if you focused your time, energy and effort on the top 20% of your clients and future clients that do value your risk advice and that also produce 80% of your revenue?

For the sake of easy math, pretend you have a $100,000 book of business and you focus on developing deeper relationships and implementing a clear value proposition based on risk advice with your top 20% of clients.

You become intentional about rounding out, retaining, and replicating these types of accounts. At the same time, you begin to trade down half of the bottom 80% to an agent with a smaller book of business, your agency service team, or a carrier service center.

You could double the revenue on the top 20% of your accounts, $80,000 to $160,000, while losing half of the revenue from your bottom 80% of accounts with a net result of $150,000.

That is a 50% increase in growth while freeing up substantial time, effort and energy.

This is a game that you can not only win, but you can and will dominate.

DIGITAL DISRUPTION WON’T STOP

I firmly believe that over the next several years the days of independent insurance agents selling transaction based insurance will fizzle out.

PROFESSIONAL LIABILITY BROKERAGE PROPERTY & CASUALTY GARAGE LIABILITY TRANSPORTATION SURETY PERSONAL LINES

(800) 666-5692 | JMWILSON.COM

www.iiak.org | July/August 2018 | 17

Volunteer committee members

517

industry partners Full list on page 9!

94 MEMBERS RECEIVED FREE CE AT 2018 ROAD SHOWS

$22,805

383 600

CE COURSES ON ABEN PORTAL FOR 2018

18 | www.iiak.org | July/August 2018

WHAT DOES IIAK DO FOR ME? Advocates Brands Communicates Educates Insures Networks Saves Works As a member of the Independent Insurance Agents of Kentucky, you have access to a wide variety of benefits, but do you know them all?

How many are you taking advantage of? In the following pages we will outline a few of them. All of these benefits and services can be found on our website, www.iiak.org.

Member Services Director, Katie Freshley would be happy to visit your agency to give you an overview of the benefits that would help your agency the most. To schedule a time, call 502-245-5432 or email her at kfreshley@iiak.org

DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORK NSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COMMUN RANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WO WORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCA Advocates MUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCAT WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NE ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM ATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVE ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES ED OMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADV AVESWORKSADVOCATESBRANDSCOMMUNICATESEDUCATESINSUR DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES BRAND DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORK NSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COMMUN RANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WO I HELP SUPPORT THESE EFFORTS?EDUCAT WORKS HOW SAVESCAN WORKS ADVOCATES BRANDS COMMUNICATES MUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCAT KAPAC WORKS ADVOCATES BRANDS COMMUNICATESInsurPac EDUCATES INSURES NE ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM ATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVE ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES ED OMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADV AVESWORKS ADVOCATESBRANDSCOMMUNICATESEDUCATESINSUR DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES BRAND DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORK The voice of the independent agent will never be silenced while we’re around! IIAK and IIABA work on your behalf in the halls of Frankfort and Washington, D.C. to protect the insurance industry, you and your clients. IIAK maintains a strong relationship with the Department of Insurance and keeps the lines of communication open. To keep members up-to-date, a weekly Legislative Bulletin is sent to members outlining progress being made on bills, regulations and laws that affect the industry.

We also host an Agents Legislative Day at the beginning of each session. This free event gathers agents together as a united force to bring awareness and understanding of issues facing agents to our legislators, and to also thank them for the support they have provided our organization and industry.

Attendees are encouraged to meet face-to-face with their legislators to discuss policies.

Consistently ranked as one of the most effective lobbying organizations, IIABA focuses on protecting independent agents on federal issues. Each year, IIAK members attend IIABA’s annual National Legislative Conference in Washington, D.C. where members attend briefings, meet key congressional leaders and visit with the Kentucky delegation of the U.S. Senate and the House of Representatives.

The Kentucky Agents Political Action Committee supports the advocacy efforts of IIAK’s government affairs program, by raising money to contribute to candidates in a non-partisan spirit.

It is a way for independent agents to be involved in the political process, support candidates and make our voices heard through the halls of Frankfort and our issues and concerns visible to our legislators. While contributions do not buy votes, they do give us access to legislators.

20 | www.iiak.org | July/August 2018

InsurPac is a political action committee on the national level. This non-partisan PAC raises funds for contributions to candidates for national office on behalf of independent agents. Contributions support federal candidates only. **Both PACS can only accept personal contributions.

RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES NICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCATES ORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NET ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM TES BRANDS COMMUNICATESBrands EDUCATES INSURES NETWORKS SAVES ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDU MMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVO ES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS RESNETWORKSSAVESWORKS ADVOCATESBRANDSCOMMUNICATES DS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES NICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCATES ORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NET ATES INSURES NETWORKS SAVES WORKS BRANDS COM WHO DO I CONTACT TO GETADVOCATES STARTED? TES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVES Marketing Reimbursement & ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDU Advantage Subscription MMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVO ES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES DUCATES INSURES SAVES WORKS ADVOCATES Website NETWORKS Review Social Media Review BRANDS DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS URESNETWORKSSAVESWORKSADVOCATESBRANDSCOMMUNICATES DS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES Don’t go at it alone. Trusted Choice is the brand created exclusively for Big “I” members to help consumers differentiate the value that an independent insurance agents offers. IIAK invests in various avenues to drive online consumers to TrustedChoice.com, an online quoting portal. You can boost your presence even further by investing in an Advantage Profile.

At TrustedChoice.com/agents you will find a wealth of resources that will help your agency achieve greatness. The Power of 30 Seconds™ training series will help you maximize the experience of customers calling your agency on the phone. Ever wonder how your agency’s marketing compares to other agencies? Take the MeasureUp! survey and receive a marketing scorecard and ideas on how to improve. You can also compare your agency with other agencies based on several criteria.

Ensure your online presence is making the most impact by getting a FREE website and social media review from the pros at Trusted Choice. Trusted Choice will provide the feedback and necessary tools to refine and perfect your online image. Don’t have a graphic designer on staff? No problem, IIABA will customize advertising materials specifically for YOUR agency. There’s even a wide variety of pre-made infographics and articles to share with your clients in the Content to Share section.

Advertising 101 is a nine-part series designed to help you understand, design and execute a successful advertising campaign. Learn about advertising goals, market research, budgeting, strategy, media, advertising agencies, ad content and measurement. Then make those advertising dollars go further by using the Marketing Reimbursement Program (MRP) to co-brand your agency.

IIAK Communications Director Nikki Robins nrobins@iiak.org • 502-245-5432

IIABA Marketing Coordinator Madeleine Stern madeleine.stern@iiaba.net

IIABA Communications Coordinator Demarcus Johnson demarcus.johnson@iiaba.net

www.iiak.org | July/August 2018 | 21

DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORK NSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COMMUN RANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WO WORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCA Communicates MUNICATES EDUCATES INSURES NETWORKSEducates SAVES WORKS ADVOCAT WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NE ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM ATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVE ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES ED OMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADV AVESWORKSADVOCATESBRANDSCOMMUNICATESEDUCATESINSUR DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES BRAND DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORK NSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COMMUN RANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WO WORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCAT MUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCAT WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NE GET INNETWORKS THE KNOW ME UP!BRANDS COM ATES INSURES SAVES WORKSSIGN ADVOCATES ATES BRANDS COMMUNICATES NETWORKS Not receiving our emails orEDUCATES For all INSURES your education needs, SAVE ETWORKS SAVES Let’s WORKS ADVOCATES BRANDS COMMUNICATES ED mailings? fix that! please contact: OMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADV AVESWORKS ADVOCATESBRANDSCOMMUNICATESEDUCATESINSUR DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES BRAND DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORK IIAK is the source for industry news with a weekly e-newsletter, IIAK Insider, Legislative Bulletins during the Kentucky legislative session and this bi-monthly magazine, Kentucky IA. These items, along with much more can also be found on our website, www.iiak.org. Your association is also quite the “social” butterfly see page 35 for links to all of our pages. Give us a follow while you’re at it - we promise to give your page a thumbs up as well!

ACT, (Agents Council for Technology) brings you the best workflows and technologies available within the independent agency system. (Visit www.iiaba.net/act for all ACT has to offer.)

While you’re online, check out the ways that IIABA puts the breadth of the association’s knowledge base through Big “I” Virtual University (VU). There you will find Best Practices studies, checklists and white papers.

One of the most popular programs in the VU is “Ask An Expert”. Simply submit your questions and experts and faculty will give you an answer within 24 hours!

Director of First Impressions Cassie Powell cpowell@iiak.org • 502-245-5432

22 | www.iiak.org | July/August 2018

IIAK strives to offer quality, professional education and professional development that meets everyone’s needs. If you’re looking for pre-licensing self study look no further than ExamFX.

For those who are new to the industry, switching roles, or just need more training, New Level Partners offers affordable options for members to train employees on a self-paced online platform.

Need your Continuing Education for the year?

IIAK has teamed up with ABEN (Agents & Brokers Education Network) to provide quality online courses in both live and on-demand formats. See page 6 for a list of upcoming courses.

Want to set yourself apart? Our Certified Risk Manager (CRM) designation through the National Alliance proves that you are a cut above the rest and are knowledgeable in all areas of managing risk, hazards, and exposures. Plus, you can get some very distinguished letters behind your name!

Director of First Impressions Cassie Powell cpowell@iiak.org • 502-245-5432

RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES NICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCATES ORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NET ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM TES BRANDS COMMUNICATESInsures EDUCATES INSURES NETWORKS SAVES ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDU MMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVO ES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS RESNETWORKSSAVESWORKS ADVOCATESBRANDSCOMMUNICATES DS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES NICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCATES ORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NET ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM WHO CAN I CONTACT? TES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVES ETWORKS BRANDS COMMUNICATES EDU E&O,SAVES GroupWORKS Health,ADVOCATES Cyber LiabilityEDUCATES & Big “I” Markets MMUNICATES INSURES NETWORKS SAVES WORKS ADVO ES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES DUCATESFlood INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS Insurance Program RLI Programs DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS URESNETWORKSSAVESWORKSADVOCATESBRANDSCOMMUNICATES DS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES Coverage for Your Agency

We offer a comprehensive E&O program with competitive rates through Westport, A.J. Wayne and Allianz designed specifically for IIAK members. We received a 10% rate reduction and it will be reflected in your E&O premium.

We are so excited to announce that our IIAK Group Health plan, through Anthem, received an overall 6.5% rate REDUCTION. If you are not already taking advantage of the association plan, it is not too late. We have many plan options available to fit your needs.

What would you do if your agency had a data breach? 80% of businesses fail to recover from a breach because they do not know this answer. IIAK has partnered with Arlington/Roe & Co., Inc. to offer our members an exclusive cyber liability program through Beazley to help protect their agencies from information security breaches.

Insurance Services Director Kristie Weyer, CISR kweyer@iiak.org • 502-245-5432

Big “I” Flood BigIFlood@iiaba.net • 800-221-7917

​​​​Coverage for your clients

Big “I” Markets​is an online market access program available exclusively to Big “I” members featuring no fees, no volume commitments and competitive commissions.

Benefits of Big “I” Markets include: ownership of expirations, no initial access or termination fees, no obligation to submit other accounts, EFT commission payments, only one login needed to access all programs, weekly e-newsletter featuring product knowledge and special interest pieces.

The Big “I” Flood program through Selective gives members an unparalleled flood program.

Agents have several layers of support to meet any and all flood insurance needs.

With personalized support, competitive commissions, and an easy-to-use quoting platform, it is an easy decision to start writing your flood business through the Big “I” FloodSelective partnership today.

RLI’s Stand Alone Personal Umbrella Policy covers your client’s assets by providing up to $5 million in coverage. This personal umbrella is the perfect solution for difficult-to-place personal lines accounts.

RLI’s Home Business policy provides affordable coverage for those people who operate small businesses. It is specifically targeted for over 100 retail and services risks operated from the insured’s residence and minimal product liability, professional liability and/or off-premises exposures.

Arlington/Roe Personal Lines Underwriter Jennifer Hopper jhopper@arlingtonroe.com • 800-878-9891

www.iiak.org | July/August 2018 | 23

DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORK NSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COMMUN RANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WO WORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCA Networks Saves MUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCAT WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NE ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM ATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVE ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES ED OMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADV AVESWORKSADVOCATESBRANDSCOMMUNICATESEDUCATESINSUR EVENTS SAVES WORKS ADVOCATES BRAND DUCATESUPCOMING INSURES NETWORKS Emerging LeaderCOMMUNICATES Clay Shoot EDUCATES INSURES NETWORK DVOCATES BRANDS NSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COMMUN RANDS COMMUNICATES INSURES NETWORKS SAVES WO E&O: RoadmapEDUCATES to Analysis WORKS SAVESPolicy WORKS ADVOCATES BRANDS COMMUNICATES EDUCAT MUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCAT EmergingBRANDS Leader COMMUNICATES EDUCATES INSURES NE WORKS ADVOCATES Tailgate at Keeneland ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM ATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVE 122nd Annual Convention ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES ED & Trade Show INSURES NETWORKS SAVES WORKS ADV OMMUNICATES EDUCATES AVESWORKS ADVOCATESBRANDSCOMMUNICATESEDUCATESINSUR DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES BRAND DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORK We’ve all been to networking events that were complete snoozefests. Why bother, right?

We strive to think outside of the box for fun and interesting ways to facilitate networking opportunities for our members. From horse racing and golf to corn hole and clay shoots, we take advantage of everything the Bluegrass has to offer.

August 16 Blue Grass Sportsmen’s League • Lexington

October 3 IIAK Education Center • Louisville

October 18 Keeneland • Lexington

As you can see, the value of your IIAK membership far outweighs the monetary cost.

But we do appreciate being fiscally responsible and bring you a variety of ways to free up capital.

Schooley Mitchell can save you 100’s of dollars by inspecting what you are paying on all communication services like land/mobile lines, internet, cable and VoIP and use their buying power to save you money! This program is available with zero risk or out-of-pocket expense.

Members receive exclusive discount pricing on the premier personality testing product in the industry. Finding the right fit for the culture of your agency is tough. Let Caliper tell you what you need to know before you hire.

The Moberg Group offers special pricing to do a risk assessment of your agency and will include a FREE policy and procedures manual.

Bonus: save 10% for 5 YEARS on your E&O!

DocuSign is an e-signature program used to accelerate transaction times to increase speed and results, reduce costs, improve customer service and reduce E&O exposures. Find out more exclusive reduced pricing for members ad www.docusign.com/iiaba.

Save $1,250 on finding your next superstar with WAHVE. Details on next page.

Other cost saving programs include:

November 14-16 Omni Hotel • Louisville

24 | www.iiak.org | July/August 2018

First Call Free Legal Brooks Brothers Virtual Risk Consultant

UPS Mines Press

RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES NICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVOCATES ORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NET ATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS COM TES BRANDS COMMUNICATESWorks EDUCATES INSURES NETWORKS SAVES ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDU MMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS ADVO ES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES BRANDS DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS RESNETWORKSSAVESWORKS ADVOCATESBRANDSCOMMUNICATES DS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES LOOK MA, 6 EXTRA PAIRSSAVES OF HANDS! NICATES EDUCATES INSURES NETWORKS WORKS ADVOCATES We pride ourselves on being the ultimate resource for our members.

ORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES NET Have a question? We have the answer - or we know where to get it. think of us as that extra staff member - without all of the on-boarding paperwork!

ATES INSURES JustNETWORKS SAVES WORKS ADVOCATES BRANDS COM TES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS SAVES Tara Purvis Cassie Powell ETWORKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDU MMUNICATES EDUCATES Amy Good INSURES NETWORKS NikkiSAVES RobinsWORKS ADVO ES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES INSURES DUCATES INSURES NETWORKS SAVES WORKS ADVOCATES Katie Freshley Kristie Weyer, CISR BRANDS DVOCATES BRANDS COMMUNICATES EDUCATES INSURES NETWORKS URESNETWORKSSAVESWORKSADVOCATESBRANDSCOMMUNICATES DS COMMUNICATES EDUCATES INSURES NETWORKS SAVES WORKS RKS SAVES WORKS ADVOCATES BRANDS COMMUNICATES EDUCATES Whether you need to hire new staff, or want to get some training for folks you already have, we have solutions for you.

• Gain access to resumes or post open positions on our Job Board.

• Our New Level Partners program provides industry training to new hires, job changes within the agency and enhances the skill set of current staff.

• Check out our Veteran Licensing Program giving veterans and their spouses a new path in a post-military career. IIAK pays for their classes, licensing exam and fees.

• Our Agent’s Guide for Internships will give you the framework for getting those fresh faces in the door and on the right track.

• Don’t want to hire and train? Check out our Work At Home Vintage Experts (WAHVE) program.

WAHVE hires, supports, and manages your next employee, saving your agency between 40 and 50% on personnel costs and overhead. IIAK members receive a 50% discount on the standard one-time set-up fee of $2,500.

President & CEO • tpurvis@iiak.org

Director of First Impressions • cpowell@iiak.org

Financial Services Director • agood@iiak.org

Communications Director • nrobins@iiak.org

Member Services Director • kfreshley@iiak.org

Insurance Services Director • kweyer@iiak.org

www.iiak.org | July/August 2018 | 25

DESIGNED TO DO ONE THING Pushing is a force of effort toward progress. For over 30 years, AMERISAFE has built a no-nonsense culture of safety.

Never shying away from hazard, we simply outsmart it.

Our policyholders take comfort knowing a workers’ comp policy from AMERISAFE carries clout. It’s one of many reasons we’ve maintained a policyholder retention rate over 90%*. Workers’ comp is all we do. Strong and steady, clearing the pathway as we go.

amerisafe.com - 800.897.9719

*Policyholder retention rate based on voluntary business that we elected for renewal quote: 97.2% in 2016.

Yet Another Two-fer By: Rick Pitts

Readers know I like to discuss real, concrete coverage cases in this space. I also try (and don’t always succeed!) in extrapolating practical principles for producers from those cases. Sometimes, we get cases that can only be described as an embarrassment of riches, because we get two different, and important, principles. It is the celebrated “two-fer,” as in “two for the price of one.”

This two-fer of a case was first reported by FC&S in its November 13 Bulletin, and goes by the name of Northfield Insurance Company v. Herrera. It was decided by a federal district court in western Texas in early November.

An elevator accident happened at the Sandhill Energy Center in Austin, Texas in March, 2014. Thomas McCoy was an employee of a company called Austin Energy.

Austin Energy was responsible for operating the Sandhill Energy Center. As a part of those responsibilities, Austin Energy hired Herrera to “service and maintain” the elevators, including the one that failed and injured McCoy. Herrera’s insurance company (under a commercial general liability policy) was Northfield.

McCoy sued Herrera for injuries he suffered, and Northfield stepped in to defend Herrera. Northfield apparently did so under a reservation of rights because it later filed a separate lawsuit against its insured, Herrera, and asked the court to order that it had neither a duty to indemnify nor a duty to defend Herrera.

The reason? An exclusion in the Northfield policy provided: This insurance does not apply to “bodily injury” to…

(3) Any person who is employed by, is leased to or contracted with any organization that: (a) Contracted with you or with any insured for services; or (b) Contracted with others on your behalf for services; arising out of and in the course of employment by that organization or performing duties related to the conduct of that organization’s business…

That’s a mouthful of an exclusion, for sure. What does it mean? Well, there wasn’t any dispute that McCoy had suffered bodily injuries. There also wasn’t any dispute that McCoy was an employee of Austin Energy. Likewise, no one disputed that Austin Energy had contracted with “you,” that is, Herrera, the insured under Northfield’s policy. Finally, McCoy had been hurt at work – while he www.iiak.org | July/August 2018 | 27

was “performing duties related to the conduct of Austin Energy’s business. So, since the lawsuit came from an employee of someone who had contracted with Herrera, Northfield said, there isn’t any coverage.

In all probability, the Northfield exclusion is designed to eliminate general liability coverage for claims that should be, first and foremost, worker’s compensation claims. In other words, the exclusion is triggered because McCoy’s appropriate remedy is to seek worker’s compensation from his employer, Austin Energy. He was, after all, at work when he got hurt.

In fact, Northfield’s argument tracked along these lines.

Herrera’s response? If Northfield is right, it proves too much and it takes away too much coverage. Herrera claimed that the exclusion was supposed to function only “downstream,” that is, for its subcontractors and their employees, and not “upstream” to bar claims by the employees of companies that hired Herrera.

the worker’s compensation policy and system are what responds, not the general liability policy.

Where things start to get tricky is when the CGL carrier expands the scope of this concept to include employees of other companies. As we noted earlier, McCoy has (presumably) a worker’s compensation remedy against his employer, Austin Energy, through the worker’s compensation system.

However, the fact that McCoy has that worker’s compensation remedy doesn’t mean he can’t sue Herrera.

Herrera is not McCoy’s employer. In virtually all states, McCoy suit against Herrera can go forward. The way

There’s traction to Herrera’s argument, based on the way the exclusion is written. The exclusion clearly works to bar claims from the employees of Herrera, and that’s not controversial in the context of a standard CGL. Next, it bars claims from subcontractors who are working on behalf of Herrera. That’s a little less standard, but still well within exclusionary language norms.

If those two are the primary coverage carveouts in the exclusion, it makes sense to then say that the third excluded category is “…bodily injury to employees and workers of Herrera’s subcontractors and their subcontractors.”

The federal court agreed with Herrera, and also added that Northfield’s “expansive” reading of the exclusion “…would render coverage under the Policy largely illusory.” This made Northfield’s interpretation unreasonable.

We started with calling this case a “two-fer.”

What two and what fer? The first lesson has to do with the subject matter itself. Commercial insureds shouldn’t be surprised that CGLs don’t function as worker’s compensation policies.

Even unsophisticated insureds probably have a reasonable expectation or understanding that if one of their own employees gets hurt, 28 | www.iiak.org | July/August 2018

Contractor founded.

Locally insured.

FCCI is a trusted provider of insurance and surety bonding for the construction industry. Founded by contractors in 1959, we have earned the trust of our customers by keeping our promises and doing what we say we’ll do.

that Northfield interpreted the exclusion meant that the suit of McCoy versus Herrera was not covered.

different lawsuits. This was another proverbial log on the fire to try to prove that the language was ambiguous.

This clashes with the expectation that most insureds (sophisticated or otherwise) would have. Not to put too fine a point on it, a CGL is supposed to cover against general liability lawsuits. This is why the Texas court analyzed the structure and the language to rule in favor of Herrera.

Producers are justifiably frustrated when they see the same company treating a coverage or claim issue differently under different circumstances. “Doesn’t consistency count for something? Doesn’t precedent matter?” they ask me.

So, we arrive in familiar territory – it pays to look closely at the policy language. It pays to shop well. That’s especially true when the insured is someone who has substantial risks (like providing maintenance on elevators) and wants to know that its customers and their employees (like Austin Energy and McCoy) will have reasonable access to coverage should it be necessary.

The second two of the “two-fers” is a fun one, but also one with practical implications. Again, the Texas federal court concluded that the logical progression of the language meant that it only applied “downstream,” to Herrera’s subcontractors and their employees, and not “upstream” to the entities for whom Herrera was providing work.

Part of the reason for this? According to the Court, “Tellingly, Northland Insurance Company (the parent company of [Northfield]) offered this exact interpretation in another lawsuit involving the same exclusion.” In other words, Northland and Northfield had offered polar opposite interpretations of the same language in two

It does count and it does matter, and the Herrera case is proof positive of that. At the same time, we shouldn’t read too much in to the Herrera decision. It did involve a company taking a published, or at least public, position in a legal matter and then having its subsidiary take a different one. The precise issue in Herrera was whether the language was ambiguous, meaning, whether it was subject to two differing, reasonable, and conflicting interpretations. Interestingly, the Court used the two public positions of Northfield and Northland, but actually not to find an ambiguity. Instead, the Court found simply that Herrera was right about the interpretation, period.

The upshot is that minor variances in value or minor differences in claims adjustment will not automatically rise to the “gotcha” level that seemingly happened here. It does mean, though, there’s a chance it might.

Richard S. Pitts is IIAK’s General Counsel.

Have an attorney on retainer?

We do.

With our First Call Free Legal program, all members receive 30 minutes of free legal consultation per year with our general counsel to discuss any insurance or agency related matter.

www.iiak.org | July/August 2018 | 29

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

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.

By Demarcus Johnson Social media connects billions of people across the globe, provides a safe space to share original, creative, and political thought and, so far, has all but replaced face-toface communication. Despite its advances, criticisms fill the air all too often that social media is “death to personal conversation” “susceptible to miscommunication” and even “makes us socially awkward.”

But, let’s be honest. To NOT take part in social media is to be socially awkward, and a pitfall far too many small businesses fall into. And for those small businesses that dare to be a part of the cool crowd, some roam awkwardly through the social media sphere unsure of how, when, where or even why to connect with their social communities.

For Trusted Choice® independent insurance agencies, social awkwardness isn’t an option. Being a part of the Trusted Choice brand means connecting with consumers where they are and when they want, which is why Trusted Choice offers a way for members to shed their awkward shell and navigate social media with confidence and skill by reviewing their social media channels.

Whether an agency just wants to dip a toe in or cannon ball fearlessly into the waters of social media, social media reviews gauge the agency’s performance, provide supplemental resources, and offer recommendations for improvement. Reviews provide a blueprint for developing an effective social media presence integrated with the agency’s other online properties and overall brand.

From choosing the right platform and creating the page to developing a content strategy and engaging your 32 | www.iiak.org | July/August 2018

followers, social media reviews dive into all aspects and features of each social media platform including: Facebook YouTube Google+ Twitter Yelp and more...

LinkedIn Instagram You see, you don’t have to be socially awkward. And if you’re a Trusted Choice independent insurance agent, you won’t be. Whether you’re a viral brand, an agency looking to advance socially or just aren’t sure how to get started, a Trusted Choice social review is the best place to start.

Don’t be socially awkward. Get a Trusted Choice social media review.

Demarcus Johnson is Communications Coordinator for Trusted Choice, Inc. and can be reached at demarcus.johnson@iiaba.net.

All the Rage

Why is social media all the rage?

Because it: • increases traffic to your agency website; • generates online leads; • promotes brand awareness and loyalty; • offers a unique customer experience; • builds personal relationships; • allows for targeted marketing; • reaches thousands to millions of potential clients; • gauges consumer behavior and perception of your brand; • is FREE.

www.iiak.org | July/August 2018 | 33

Don’t slip up and land in court.

Sign on to E&O Happens to safeguard your agency.

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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 502-585-3277

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

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Amerisafe Arlington/Roe Bolton & Company ClearPath Mutual FCCI J.M. Wilson KEMI

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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.

www.iiak.org | July/August 2018 | 35

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