Kentucky IA - July/August 2016

July/August 2016

Are you making the most of your membership?

KESA has been hitting the road in our beautiful state for 35 years. We have been meeting with our policyholders, handling claims, visiting our agency partners, conducting SAFETY WORKSTM seminars, and implementing loss prevention programs. KESA’s goal is simple - to reduce workplace injuries and keep Kentucky employees working safely and productively.

KESA knows Kentucky.

200 Executive Park, Louisville, KY 40207 502.894.8484 | 800.367.5372 | www.kesa.org

What's

Inside

Page 20

Contents

6 Look at what your association is doing for you!

13 ‘Pretirement’ Brings Benefits to Both Sides of the Hiring Table

Page 28

15 Record-Setting Attendence at 2016 Big “I” Sales & Leadership Conference 20 Jr. Golf Tournament attracts many 22 Protecting Yourself from Internet Crime 25 What the new DOL regulations mean for you

Page 36

28 Have Questions? Here’s who will have the answer 36 Top 10 Member Benefits 39 Commercial & Personal Lines Coverage Checklists

In Every Issue 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

4 From the Chair

30 & 37 Upcoming Events

5 DOI News

43 Advertiser Index

9 E&O

43 Classified Ads

16 Education Calendar

43 Social Media Links

37 Industry Partners

43 There’s an APP for that

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 2016 | 3

Officers David M. Houk

Chair, Horse Cave 270.786.2724 George L. “Chip” Atkins

Chair-Elect, Louisville 502.585.3600 Michael G. Johnson, CIC Vice Chair, Lexington 859.233.1461 James D. England, AAI

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

National Director, Leitchfield 270.259.5465 Michelle L. Love

Immediate Past Chair, Owensboro 270.926.2806

Directors Allen J. Crawford, CIC, CSRM

Somerset, 606.679.6311 Neel Ford, AU, CPIA

Owensboro, 270.926.2806 Sharon B. Hill

Jamestown, 270.343.3144 Aaron LaRue

Bardstown, 502.348.0050 Skip McGaw, CIC

Madisonville, 270.821.3122 Crystal Reid, CIC

Paducah, 270.442.3533 Ray A. Robertson, CIC

Mt. Sterling, 859.498.3410 Laura Yount, CIC, CISR

London, 606.878.0100

Staff Peggy P. Porter

President & CEO Crystal Brown

Administrative Assistant Katie M. Freshley

Education & Events Director Tara T. Purvis

Marketing Director

Chair From the

Hello everyone!

Summer is in full swing and I know we are definitely feeling the heat in Horse Cave! I hope you all have taken time to get out of the office and enjoy some fun in the sun - even if it’s at least a staycation in the Bluegrass.

Thank you to everyone who was able to join us in Bowling Green June 8 & 9 for our Big “I” Sales & Leadership Conference. We had a record turnout and hope to continue that growth next year in Lexington. Turn to page 15 for a more in-depth look at this fun and informative annual event.

This year’s Kentucky Qualifier for the Trusted Choice Big “I” National Championship was held on July 5 & 6 at Oxmoor. Despite the rainy weather and rain delays we had a full field. We had 3 boys and 2 girls qualify to represent us at the National Championship in Sacramento. See page 20 for a full recap.

This issue of Kentucky IA, we will be highlighting the many products and services your association makes available to you. We strive to make sure that your membership is a worthwhile expense and bring you discounts and access to benefits you can’t find anywhere else. Whether that comes in the form of special pricing for a Cyber Liability policy, an array of continuing education opportunities, access to experienced professionals through WAHVE, or market access to more than 80 niche markets.

Our staff is always there to help should you have questions. They can help you with legislation affecting our industry, insurance products and how to register for an upcoming event. Please see page 28 for a list of products and services and who can help you find the answer.

Registration is now open for our 120th Annual Convention and Trade Show on November 9-11 at The Brown Hotel in Louisville. Save 10% with Early Bird registration by using promo code EB2016. One of the highlights of this event are the E. Starling Holloway and CSR of the Year Awards. These are the highest honors we can give in our association. If you would like to nominate someone for these prestigious honors, please see pages 31 & 32 for nomination forms.

We hope you enjoy this issue and learn about all the products and services your association has to offer.

Sincerely,

Nikki S. Robins

Communications Director Kristie Weyer, CISR

Insurance Services Director

4 | www.iiak.org | July/August 2016

David M. Houk

DOI News

From the Commissioner By: Brian Maynard It was a pleasure to meet many of you at your conference in Bowling Green. I appreciated the warm welcome. I enjoyed our conversations and hope you will contact my office if we can be of assistance.

I wanted to take this space to highlight some legislative changes adopted by the 2016 General Assembly. The bulletin with all insurance-related legislation is now available on our website. I encourage you to review it.

A few of particular interest to the agent community include: • Senate Bill 18 – requires insurers offering a health benefit plan or a limited service health benefit plan to establish procedures for changing an existing agreement with a participating provider. In the case of a “material change,” as defined in the law, insurers must give participating providers at least 90 days’ prior notice. The bill also clarifies the genetic conditions for which coverage for therapeutic food, formulas and supplements must be provided.

• Senate Bill 117 – creates a license process for pharmacy benefit managers (PBM). Any entity acting in this capacity must obtain a license from the Department of Insurance and must submit an application, a nonrefundable fee of $1,000, and evidence of financial responsibility of $1 million.

Entities currently functioning as a PBM must obtain a license by Jan. 1, 2017. The license must be renewed annually with a $1,000 renewal fee.

• House Bill 100 – requires health insurers to have a member liaison to assist with communication between the member and the insurer regarding benefits for the treatment of autism spectrum disorders.

The Department wants to bring other new legislation to your attention for informational purposes only. Some of those include: • Senate Bill 11 – sets up a license issued by the Department of Alcoholic Beverage Control for “commercial quadricycles.” These vehicles will be equipped with a minimum of 10 pairs of fully operational pedals and a minimum of 13 seats for passengers. The vehicles will be used for commercial tour purposes and will be operated by the vehicle owner or employee. In order to operate a commercial quadricycle legally, the applicant must maintain at least $2 million in general liability insurance. While the operator/driver cannot drink, patrons can open and consume alcoholic beverages after boarding and while riding.

• House Bill 40 – allows those convicted of specific Class D felonies to apply for expungement no sooner than five years after completion of the sentence.

Please go to our website and review the legislative bulletin at http://insurance.ky.gov under Bulletins and Advisories on the home page. www.iiak.org | July/August 2016 | 5

Look at what your association is doing for you!

It is our sincerest hope that you see what we your association has done and continues to do to bring added value to your membership with the Independent Insurance Agents of Kentucky. Here are a few recent and/or ongoing examples: • Invested over $20,000 into Trusted Choice’s Search Engine Optimization (SEO) campaign from January-August 2016 which helps your agency within TrustedChoice.com rise to the top of the Google searches of Kentucky consumers.

• Made training your newest employee easier by endorsing New Level Partners for online, affordable, training for new hires, producers & CSRs. • Partnered with Work At Home Vintage Experts (WAHVE) to provide remote, experienced staff catered to your needs.

• Utilized general counsel Rick Pitts to provide a FREE 30-minute phone consultation once a year via First Call Free Legal.

• Developed a Veteran Licensing Program to support the men and women of our armed forces and assist them in finding post-military careers in insurance.

• Created a smart phone app to easily access up-to-the-minute information during events.

• Supported Make-A-Wish® Gala to give Trusted Choice a presence in the state while benefiting a worthy cause.

• Added 21 NEW courses on our ABEN education platform.

• Successful in Legislation: By supporting/killing bills that could have affect how you do business.

What you have to look forward to in 2016: • Road Shows including lunch and continuing education development that are FREE to you and your co-workers. See page 37 for locations to see which one is closest to you.

• A NEW mobile optimized website will be launched soon.

• Tara Purvis will also be visiting various agencies around the state. Would you like to request an agency visit?

Contact her at tpurvis@iiak.org.

Free Member Benefits

There are many benefits that are INCLUDED in your IIAK membership - are you taking advantage of them?

Being a Trusted Choice Agent Advocacy Networking Leadership Opportunities Legislative Day Event Website Access Young Agents 6 | www.iiak.org | July/August 2016

Big “I” Markets First Call Free Legal Kentucky IA Magazine IIAK Insider e-newsletter TrustedChoice.com Basic Subscription Telecom Services Consultant

Social Media Presence Staff as a Resource Personal & Commercial Lines Coverage Checklists Social Media checkup through Trusted Choice

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

The

Program You Trust.

We’re Looking Out for You

When it comes to your agency’s professional liability insurance, who can you trust more than your dedicated E&O administrator at IIAK? For more than 30 years IIAK has provided reliable coverage at a competitive price. But, that’s not the only reason to count on your association for E&O coverage.

Here’s why: • Access to the country’s premiere E&O policy as well as access to other major E&O markets so we can find you the best coverage at the best price.

• An E&O professional dedicated day in, day out to serving Kentucky independent insurance agents and to making sure your agency has the answers and the resources it needs.

• The only market that actively works on your behalf to pass professional liability laws and protections for agents, making Kentucky a great place to operate your agency.

Coverage Options: • Full prior acts coverage • Policy limits up to $20 million • First dollar and loss & expense deductibles • Deductibles as low as $2,500 up to $100,000 • Available to both L&H and P&C agents • Expert claims administration • Legal counsel specialized in agent defense • Personal data breach protection included • EPL coverage endorsement available • Extended reporting periods up to 10 years • 10% discount for risk seminar attendance • 10% discount for an on-site audit

Contact me, Kristie Weyer, for a quote or for more details at 502-245-5432 or kweyer@iiak.org Kristie Weyer, CISR Insurance Services Director

Duty? We don’t have no stinkin’ duty!

By: Richard F. Lund, J.D.

“Badges, we don’t need no stinkin’ badges,” is one of the most famous, and most often misquoted, lines from the 1927 novel by B. Traven, “The Treasure of the Sierra Madre”, and the later great film of the same name starring Humphrey Bogart. When Gold Hat, the bandit leader is asked by the character Fred C. Dobbs, played

by Bogart, “If you’re the police where are your badges,” his response is “Badges? We ain’t got no badges. We don’t need no badges! I don’t have to show you any stinkin’ badges!”

With my apologies to the author and the filmmakers, a similar sentiment can sometimes be heard when an insurance agent’s customer receives a notice of cancellation. Many times the notice comes at the end of the policy period and is simply a reminder to the policy holder by the insurance company that their policy may cancel at the end of the policy term unless it is renewed prior to that date. These notices are many times required under state insurance laws or regulations. They are relatively innocuous and little more than a perfunctory duty of the insurance carrier pursuant to the terms of the policy. However, there are other times that the notice is more than a just a reminder and in fact is necessary due to non-payment of premium. This is the instance when the customer may utter the words “Notice? We don’t need no stinkin’ notice!”

In years past, independent agents acting on behalf of their carriers were responsible for collecting, accounting for, and transmitting premium payments to the insurance companies on a daily basis. At many points during these transactions, due to various factors including the crush of everyday business, errors would be made at every step: Collection: the amount paid would not be the correct amount owed, if paid by check it could be post dated or from a closed account; Accounting: the amounts may not

be entered correctly between what was billed and what was collected, the premium calculation could be misquoted resulting in insufficient payment amount; Transmitting: the amount sent to the carrier would be net of the agent’s commission and the calculation would be incorrect, or, heaven forbid, the payment would not be sent to the carrier in a timely basis. At any point in this timeline, an error might be made that would result in the carrier notifying the agent that the policy had been canceled due to non-payment of the premium and to issue the notice of cancellation. The agency might then issue the notice of cancellation without checking their records to determine if in fact the notice was appropriate.

Thankfully for the agents, insurance companies then began the process known as “direct bill”. This effectively took the agency out of the money handling business and reduced the risk of exposure when dealing with monetary transactions. No longer does an agency have to worry when a customer is late with a premium payment and the carrier issues a notice of cancellation.

Should the customer come running into the agency late on Friday afternoon with their premium payment, it is no longer the agent’s duty to collect the premium and transmit it to the carrier.

Now, the customer is responsible for making sure that timely payment is made directly to the carrier. The agent can leave the office on Friday evening with a clear conscious that all is right with the world. However, there are some agents who create an obligation and an E&O exposure that direct bill had eliminated.

Consider if you will the following situation: On March 1 Marc, a long time customer of the All Is Right With The World Insurance Agency, receives a premium notice on his direct bill policy from the FiddleDeeDee Insurance Company. www.iiak.org | July/August 2016 | 9

The notice states that if premium is not received by she notify him (and any other customer that she did the company by May 1, his policy will be canceled. this for that also had a direct bill policy)? A good thing Marc places it on his desk and it is promptly covered to do would be to send him (and all others like him) a up by other papers he receives and just as promptly letter advising him that she would no longer be notifying forgotten. The fact that it was forgotten by Marc is him by any means, phone call, letter, email or any other not important to him because he knows that his agent, method, when the premium was do. The best thing to Sharon, will always call him to remind him to pay his do would be to send a letter certified mail return receipt bill. (Remember, this is a direct bill policy.) Sharon, who requested so that there would be documentation in has always called Marc to remind him to pay his bill their file that Marc had received the letter. Yes, there is a week before it is due, is on an extended vacation to a cost involved with sending these letters, but the cost Hawaii celebrating her 25 years in the insurance business is significantly less than most deductibles on an E&O and will not return until May 10. On May 5, Marc has policy, not to mention the time, stress, and all the other a loss and calls Sharron’s office to let her know about unpleasant things associated with an errors and omissions the claim so she can report it to the carrier. Sharon’s claim.

CSR, Erik, tells Marc that Sharon is out of town and won’t be back until May 10, but he will report it to the carrier. Erik then looks for the file on the agency management system and discovers that the policy canceled on May 1 due to nonpayment of premium. Erik was going to call Sharon to tell her what happened, but when she was leaving for 800-226-3224 her trip, she left strict orders that she was not to www.fcci-group.com be contacted for any reason other than for death of a family member or pet. Erik then called Marc and said he reported the claim to the carrier, but it would probably be denied because the policy had canceled before the loss, and of course it was.

In this situation Sharon had created a duty for herself that was completely unnecessary: the duty to notify her customer that a premium was due on a direct bill policy. Although Sharon thought she was being a good agent and providing a good service to her customer, all she had done was create an expectation that until she called to remind him to pay the premium, that the policy would always been in force. Due to that expectation, she was now responsible if he did not make the payment on time. Had she not created the expectation, she would not be responsible.

So what should Sharon have done? Assuming that once she took on this obligation to call her customer, she also had a duty to let Marc know that she would not be doing it any longer. She would let him know that the premium notice from the carrier was the only notice he would receive and if he failed to make the payment, the policy would be canceled. So how should 10 | www.iiak.org | July/August 2016

“Local presence is the key to FCCI’s claims resolution. I’m able to meet with our agents, policyholders and injured workers and help them through the claims process. Each claim is different, but in each one I listen to the customer’s or claimant’s issue and offer resolution that considers the entire scenario.

FCCI empowers me with decision making authority, and that allows me to build trusting relationships and to resolve issues fairly.”

Lisa Dalton, AIC Claim Specialist FCCI Insurance Group Midwest Region St. Louis, Missouri Now, let’s talk about your business.

General liability • Auto • Property • Crime Workers’ compensation • Umbrella Inland marine • Agribusiness • Surety Coverage available in 18 states. © 2016 FCCI

Sometimes the simplest thing to do to protect yourself from an E&O exposure is to simply do nothing. Don’t create an obligation for yourself where no obligation is necessary. “Duty? We don’t have no stinkin’ duty.”

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders. *Richard F. Lund, JD, is a Vice President and Senior Underwriter of Swiss Re/Westport, underwriting insurance agents errors and omissions coverage.

He has also been an insurance agents E&O claims counsel and has written and presented numerous E&O risk management/ loss control seminars, mock trials and articles nationwide since 1992. Copyright 2012 Swiss Re

See Richard Lund at IIAK’s 120th Annual Convention & Trade Show during our Mock Trial presentation on November 10.

Veterans Licensing Program Help a veteran start a career in insurance.

You can hire them too!

Sponsor a Vet Full - $600 Half - $300

It’s tax deductible!

Contact IIAK for details

.®

.

There can be no doubt that all our knowledge begins with experience. – Immanuel Kant

www.summitholdings.com

Policies are underwritten by Bridgefield Casualty Insurance Company and Bridgefield Employers Insurance Company, authorized insurers in AL, AR, FL, GA, IN, KY, LA, MS, NC, SC, TN and TX; BusinessFirst Insurance Company, authorized in FL, GA, KY, NC, SC and TN. ©2016 Summit Consulting LLC | 2310 Commerce Point Drive, Lakeland, FL 33801

www.iiak.org | July/August 2016 | 11

IIAK would like to welcome our newest members: Agency Members ALH Insurance

Peoples Exchange Insurance

Cornerstone Insurance, LLC.

Service 1st Insurance, LLC

Lexington Insurance Agency, Inc.

WD Insurance

Richmond

Mt Washington

Independence

Mt Washington

Mt Washington

Owensboro

Associate Members Associated Risk Managers of Kentucky, Inc. United Fire Group For information regarding IIAK membership, contact Tara Purvis, Marketing Director 502-245-5432 • tpurvis@iiak.org

One-Stop Shopping We’re the quote you could come up against, so why not join us?

Workers’ Compensation insurance nationwide for a company’s employees.

Businessowner’s Policy for Total Insured Property Values up to $12.5 million (up to $25 million upon request) – now available in over half the U.S. Commercial Umbrella for added protection.

A newly enhanced Commercial Auto product (gradually being introduced in our BizGUARD states).

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Visit www.guard.com for product availability in specific states.

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Go to www.guard.com/apply

12 | www.iiak.org | July/August 2016

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‘Pretirement’ Brings Benefits to Both Sides of the Hiring Table By: Sharon Emek, Ph.D. In old-school retirement, you got the gold watch and were shown the door. Unfortunately, not only did you carry your office belongings out in a cardboard box, you also carried out a career’s worth of knowledge and know-how. That’s a tough loss for any industry, but particularly for the insurance industry, which has been struggling to attract and keep talent for years.

Yet boomers have refused to accept that there is only one way to retire, and now they’re considering “pretirement,” which allows them to leave the regular workforce to transition to a work-at-home position. It’s the very premise on which Work At Home Vintage Experts (WAHVE) has thrived. Of course, the insurance industry competes for many of the same workers as other business segments, so offering creative work solutions is no longer a luxury, but more of an expectation. In fact, Justin Bariso, founder of Insight, a global consulting firm, says freelancers compose nearly 34% of today’s workforce. By 2020, he anticipates that number to hit 50%. In addition, he reports that 89% of organizations will offer “mobile workstyles” by 2020.

Fortunately, remote work isn’t a “compromise” solution; it’s a work option that offers benefits to both insurance agencies and employees alike.

Technology makes the process nearly seamless.

Personal or commercial lines processing, policy checking, new business and renewal preparation

and quoting to certificates of insurance, underwriting, rating, claims, customer service, and full account management/CSR work — all of these can be performed remotely by experts who know what they’re doing. Older insurance workers who aren’t quite ready to hang it up can hang on longer, reaping benefits like flexibility, engagement and financial security. Agencies gain access to a rich talent pool, regardless of geography.

Even beyond the obvious benefits, there are some other benefits that come with continued work.

Here’s a few you may not have considered: • Mental Stimulation. Publishing magnate Malcolm Forbes said, “Retirement kills more people than hard work ever did.” Of course, retirement might not directly kill people, but it could possibly be implicated in the death of brain cells. With aging comes nearly universal fear of losing memory and mental sharpness. While some people have turned to “Brain Games,” special activities or even daily apps to stimulate their minds, according to an Everyday Health article, experts actually recommend “sticking to brain training that involves real-world activities.”

• Improved Productivity. One study recently published in The Quarterly Journal of Economics examined the habits of 16,000 call center employees who were randomly assigned to work in either an office or at home. The result? Those working from home were 13% more productive. Following that, all employees were given the option to work from home if they desired. Productivity for home workers then improved even more to 22%.

• Better Sleep. According to a study included in Sleep Health, people with scheduling flexibility slept better than those who had to report to an office at specific times. Why’s this so important? Because inadequate sleep has www.iiak.org | July/August 2016 | 13

been linked to increased risk of automobile crashes, chronic disease and early mortality, and it also impairs our decision-making skills and ability to read social and emotional cues.

Need more reasons to consider remote work for either yourself or your agency? How about the fact that employees who have an ideal life-work fit typically bring tremendous enthusiasm to their work, making them an asset to the agencies that hire them? “We’re kind of addicted to the idea,” says John O’Brien, president of R.J. O’Brien Insurance Agency in Glens Falls, New York.

“WAHVE has completely changed our view of outsourcing because we’ve had such a positive experience... Not only has our arrangement been a great one for our on-site staff, but it’s also been very well received by clients.”

If you’re ready to learn more about our insurancespecific remote solution for either yourself or your agency, I hope you’ll visit wahve.com for more information and perspective.

Sharon Emek is founder and CEO of Work At Home Vintage Experts

14 | www.iiak.org | July/August 2016

Experience Matters WAHVE bridges the gap between insurance firms’ staffing needs and seasoned professionals’ “work‐life” balance preferences as they phase into retirement.

Learn more at: WAHVE.com

2016 Big “I” Sales & Leadership Conference Exceeds Expectations

By: Nikki Robins

Bowling Green opened its arms to welcome a record number 113 attendees on June 8 and 9 for the this year’s Big “I” Sales & Leadership Conference.

Chair David Houk welcomed attendees and introduced John Petrucci, who taught listeners how to “Close the Gap” in order to meet the needs of both current and prospective clients.

After lunch and lively roundtable discussions on industry-related issues, the group reconvened for Joe Bonura’s presentation “Throw the Rabbit - The Ultimate Approach to Three Dimensional Selling”.

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Wednesday evening brought the inaugural Pitchin’ for PAC Corn Hole Tournament. This friendly competition quickly turned into a crowd favorite.

Over $9,000 was raised from registrations, mulligans and donations made during and after the event. Drew LaMaster and Eric Harden a.k.a. team Hole In One were this year’s champions.

Thursday morning commenced with breakfast and a visit from Commissioner Brian Maynard who talked about the current happenings at the Department of Insurance.

Next on the docket was “Trends in the Industry” panel discussion of high-level industry professionals.

The panel consisted of Bob Fehrenbach (Liberty Mutual Insurance), Michael Winner (Grange Insurance), Michael Prandi (Westfield Insurance) and Keith Jones (Seneca Insurance). Former IIAK President, Allen Rudd of Rudd Insurance, served as moderator.

The conference concluded with a golf scramble at the Crosswinds Golf Course. The gorgeous summer weather brought out 41 players, but the local team of David Wiseman, Phillip Schardein, Neal Cleary and Tom Hart with Van Meter Insurance walked away the winners. We look forward to seeing everyone June 14 & 15, 2017 in Lexington.

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1. John Petrucci 2. Neel Ford, Susie Kinkade, Michelle Love, Melinda Houk & David Houk 3. Kyle Cunningham & Nick Rolf 4. Joe Bonura 5. Drew LaMaster & Eric Harden 6. Industry Panel 7. Jared Purley, Diana Norwood, Logan Edelen, Daniel Green www.iiak.org | July/August 2016 | 15

Upcoming Education Classes Affordable Care Act: Update 2015 & Beyond* - NEW 3 hours C.E. September 20 @ 1 pm

Agency Management Based E&O and Ethics* - NEW 3 hours C.E. September 21 @ 10 am October 18 @ 1 pm

Annuity Basics and Where They Fit* 1 hour C.E. September 21 @ 12:30 pm October 28 @ 11 am

Business Fraud Protection* - NEW 1 hour C.E. September 7 @ 2 pm October 13 @ 11 am

Business Auto Claims That Cause Problems* - NEW 2 hours C.E. September 28 @ 10 am

Certificates of Insurance - Emerging Issues and Other Stuff that May Scare You!* - NEW 3 hours C.E. September 14 @ 11 am October 21 @ 11 am

Directors and Officers Liability Insurance* 2 hours C.E. September 22 @ 3 pm October 26 @ 12 pm

Double Trouble - Certificates of Insurance & Business Auto Endorsements* - NEW 2 hours C.E. September 12 @ 1 pm October 21 @ 1 pm

Dueling Additional Insured Endorsements* - NEW 1 hour C.E. September 22 @ 11 am October 21 @ 12 pm

E&O Risk Management - Meeting the Challenge of Change* 6 hours C.E. September 6 @ 10 am September 15 @ 11 am October 4 @ 9 am

E&O Risk Management - Meeting the Challenge of Change - Onsite Course at IIAK Education Center 6 hours C.E. October 4 @ 9 am

Commercial Lines Claims That Cause Problems*

Ethics and Business* - NEW

Commercial Property Endorsements That Can Make You Money!*

Estate Planning Basics*

COPE - Property Underwriting and Effective Loss Control* - NEW

Home Based Business Exposures*

2 hours C.E. October 20 @ 2 pm

2 hours C.E. September 22 @ 2 pm

2 hours C.E. September 7 @ 10 am September 14 @ 2 pm

Data Privacy Insurance*

2 hours C.E. September 27 @ 11:30 am October 25 @ 2 pm

16 | www.iiak.org | July/August 2016

3 hours C.E. September 15 @ 1 pm

2 hours C.E. September 15 @ 3 pm October 13 @ 11:30 am 2 hours C.E. October 27 @ 2 pm

Hot Topics in Personal Lines* - NEW 2 hours C.E. September 27 @ 3 pm October 20 @ 1:30 pm

* - Provided by

Liability Issues to Worry About - Indemnity Agreements and Additional Insureds* - NEW 2 hours C.E. October 11 @ 2 pm

Long Term Care Insurance* - NEW 2 hours C.E. October 27 @ 2 pm

National Flood Insurance Program Basic Course - 2016 (includes 2015 updates)* - NEW 3 hours C.E. September 22 @ 3 pm October 13 @ 12 pm

Personal Fraud Protection* - NEW 1 hour C.E. September 20 @ 11:30 am October 25 @ 1:30 pm

Professional Ethics in the Insurance Industry* 3 hours C.E. September 8 @ 12 pm October 6 @ 3 pm

Property & Liability Concepts* - NEW 2 hours C.E. October 19 @ 2 pm

Rental Cars – More Than Meets The Eye* - NEW 2 hours C.E. September 22 @ 1 pm October 20 @ 10 am

Shake, Rattle & Roll With It – Earthquake Basics* - NEW 1 hour C.E. September 7 @ 11:30 am October 6 @ 12:30 pm

Those Kids and Their Cars!* - NEW 2 hours C.E. October 24 @ 9 am

Top 5 Life Insurance Uses* - NEW 2 hours C.E. September 8 @ 10 am

What You Need to Know About Employment Law & Coverage* - NEW 2 hour C.E. September 21 @ 12 pm October 20 @ 2:30 pm

Workers Compensation Beyond the Basics* - NEW 3 hour C.E. October 6 @ 9 am

New Business Skills eLearning Bundles Available Have employees strengthen general skills at their own pace and timeline IIAK has just added new, flexible eLearning bundles to strengthen common business skills of employees in both an agency or a carrier setting.

These self-paced interactive web modules take anywhere from 30-45 minutes to complete. Once a user has completed a module, they’ll have an enhanced understanding of a variety of skills needed for any business-savvy employee. eLearning modules are a great way to fill new hire or intern training schedules, or provide activities to leave with more seasoned employees while management may be on summer vacation. They also offer an excellent avenue to teach employees valuable communication skills that may be difficult to teach on your own.

These three new bundles include: Business Communication Essentials (five modules): • Verbal Communication Skills – Effective Communication • Verbal Communication Skills – Building Rapport • Business Writing 101 • Business Writing 201 • Personal Time Management Negotiation and Advanced Communication (four modules): • Introduction to Negotiation Skills • Negotiation Steps and Building Credibility • Powerful & Persuasive Communication Skills • Fine Tune Your Elevator Pitch Customer Management Skills (six modules): • Introduction to Errors and Omissions • Errors and Omissions – What Can You Do? • Customer Management – Anticipating Needs • Customer Management – Balancing Priorities • Introduction to Relationship Management • Building Trust and Managing Conflict

To learn more about these bundles, visit our online store (https://iiakstore.mycoursecenter.com/ ) where you can find descriptions on each course as well as browse the library of other courses available on our site.

www.iiak.org | July/August 2016 | 17

IIAK has teamed up with ABEN to bring you a unique webcast platform that lets you learn from the comfort of your office.

You will be able to view the presentation via live streaming video, follow along with the presenter’s PowerPoint, submit questions, take notes, and get full access to written material. All without taking a test.

18 | www.iiak.org | July/August 2016

SAMPLE OF ABEN CURRENT OFFERINGS:      

E&O Risk Management Professional Ethics Life & Health Property & Casualty CSR Training Professional Development

For more information contact Katie Freshley kfreshley@iiak.org | 502-245-5432 For complete course options go to: https://iiak.aben.tv/

www.iiak.org | July/August 2016 | 19 Visit UFGsolutions.com or call 800-877-5002.

Jr. Golf Tournament attract many despite Mother Nature’s efforts By: Nikki Robins The 48th Trusted Choice Big “I” State Qualifier once again brought fierce competition and many rain delays on July 5 & 6 at the Oxmoor Country Club in Louisville where Mason Lenhart of Prospect and Mary Joiner of Franklin were winners in their respective divisions.

Lenhart, a senior at North Oldham High School, overcame a three-shot deficit in the final round to shoot 72 for a 143 total (1-under par) to win by three shots over first round leader CJ Jones and Will Molen, both from Frankfort and teamates at Franklin Co. High School. Jones shot a final round 76 while Molen fired an even par 72 as both players finished at 146.

Joiner had the low round in the Girls Division, shooting a 2-over par 74 to finish at 151, four shots ahead of runner-up Sarah Boden of Dry Ridge.

Joiner, who will be attending Western Kentucky University this fall, held the first round lead by one shot. Boden’s 78-77=155 total was two shots better than Sarah Fite of Maysville. The Mason Co. High School senior shot 7879=157.

These top finishers advanced to the Trusted Choice Big “I” National Championship that was held August 1-4, 2016, at the Del Paso Country Club in Sacramento, California.

Kentucky Employers’ Mutual Insurance (KEMI) once again hosted a long drive competition.

Lexington’s Joe Muschong won the Boys Division with a 288-yard drive while Lilly Young of Shelbyville won the Girls Division with a distance of 245 yards. An addition to this year’s competition was a 15 & under boys division, with Clay Lewis winning wiht with a 278 yard drive.

20 | www.iiak.org | July/August 2016

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Online Registration We’ve made it easier than ever to Plug into the Power of Big “I” Markets! Register online today and discover a fresh new way to do business. All products are only accessible online and coverage is subject to licensing compliance and underwriting approval. To register online you will need your login ID and password, your agency tax ID number, your agency E&O policy, and your state agency/agent license information (where applicable). Log on to www.bigimarkets.com today to begin the registration process and start quoting in minutes!

www.iiak.org | July/August 2016 | 21

Protecting Yourself from Internet Crime By: Michael Bazzell The following is a special preview from Michael Bazzell, a member of the FBI’s Cyber Crimes Task Force. You can hear the rest of Mr. Bazzell’s presentation at the 120th Annual Convention & Trade Show on November 10, 2016.

Online fraud changes every day. Cyber criminals adapt their techniques constantly in order to always stay one step ahead of victims. Lately, many hacking groups focus on stealing a large amount of data from a company. This may be credit card numbers, login credentials, or private personal information such as SSN’s. The groups find it much more lucrative to put the time into stealing large databases of information instead of targeting individuals. Recent attacks such as those against Target and Home Depot are typical of these cases.

In these attacks, criminals stole the credit card details of millions of people, causing great financial loss.

However, these attack are less common than smaller personal attacks.

I believe the most probable attack against smaller organizations is spear-phishing. Standard phishing has been around for many years. When you receive an email that appears to be from your bank, it is likely a phishing attack. These messages use a scare tactic to make you think that your account has been compromised, and provides an internet link that will allow you access to your account to protect your money. Of course, the link forwards to a cloned website that is visually similar to the real bank website, and the criminals hope that you provide your user name and password to gain access. As soon as you do, they access your real account and do as much damage as possible in a short amount of time. Spear-phishing takes things to a different level. The following is a scenario that I would use if I were going to target a specific entity as a hacker.

I would do my homework and research the entity. I would look up current and previous hiring opportunities for a position such as computer technician or network administrator. These posts probably include a reference to the type of systems 22 | www.iiak.org | July/August 2016

that are present, such as the operating system of your network or the type of database that is used.

It is common for a recruitment post to mention required skills such as “SQL Server Administration” or “Microsoft Exchange Administration”.

Both of these tell me enough about your environment to start an attack.

I would then create a list of employee names that I want to target. I would do this through Facebook, Twitter, and LinkedIn. In my presentations, I show how a hacker can create a list of over 75% of a business’ employees by scraping these social networks in less than five minutes. I would then locate a few official email addresses from the company’s website in order to identify the format of all email addresses for the employees.

For example, if I find Bob Wilson’s email address is b.wilson@company.com, I know that Mary Johnson is m.johnson@company.com, and Tom Williams is t. Williams@ company.com. I would use Excel to generate the list for me.

Now that I have the email addresses of my targets, I would generate a custom bulk message similar to the following.

Dear employee, As you may know, our Microsoft Exchange Server was partially compromised in an early morning attack. Fortunately, all of your information is safe; however, we need you to reset your password immediately. Any accounts that have not been converted by the end of the day will be disabled.

Please click the following link to update your account. www.secure-email-server-company.com

This email would be sent from a free program that will “spoof” an email address and name to be anything desired. I would search on LinkedIn to find the name of your computer network administrator and make the email appear to be from him or her. The shady link in the message would forward to a server that I have full access to. As soon as you log in, I have your current credentials to your email account. I would use these to access your real account and look for bank statements, company accounts, etc. I might even send a quick note to everyone in your contact list telling them that I (you) are stuck in the U.K. and need $1,000 to get a new passport. I only need one person to respond and wire me money to make it worth my effort.

Ultimately, I will use your user name and password combination on any business networks that you may have access to such as online email or private VPN’s. Every day, several employees fall for these scams.

Be extremely cautious of unsolicited email messages. If anything seems out of place, challenge the message. If it appears to be from a coworker, call that person and verify the details. If it appears to be from a business partner, contact that entity through known valid channels and verify the information. While challenging others is often considered rude, it may save you from becoming the next victim.

Also, be careful about the content that you post online. If your Twitter account mentions your upcoming vacation to Hawaii, you are helping a burglar. If your LinkedIn account summarizes your duties at your workplace, you are helping a potential cyber attacker. If your Facebook page has photos of your child with a nickname of “Mikey”, and your security question on your

bank account is “What is my son’s nick-name?”, you are really asking for trouble. Surprisingly, hackers have all of the time in the world to identify the smallest of vulnerabilities in your life.

Overall, I know that we cannot stop all computer crime. However, I truly believe that you can prevent it from happening to you. Following some general rules will prevent you from being the easiest target for the criminal. Keeping a close eye on your online activity will help you avoid becoming the next victim on my incident list.

Michael Bazzell spent 18 years as a government computer crime investigator. During the majority of that time, he was assigned to the FBI’s Cyber Crimes Task Force where he focused on “Hackers” and various computer crime investigations. As an active investigator for multiple organizations, he has been involved in numerous high-tech criminal investigations including online child solicitation, child abduction, kidnapping, cold-case homicide, terrorist threats, and high-level computer intrusions. He has trained thousands of individuals in the use of his investigative techniques. Michael currently works and resides in Washington, D.C. He also serves as the technical advisor for the television hacker drama “Mr. Robot” on the USA network. His books “Open Source Intelligence Techniques” and “Hiding from the Internet” have been best sellers in both the United States and Europe. They are used by several government agencies as training manuals for intelligence gathering and securing personal information.

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www.iiak.org | July/August 2016 | 23

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What the new DOL regulations mean for you New United States Department of Labor regulations will impact our agencies. How? Beginning December, 2016, the “floor” for being eligible to be considered a salaried or “exempt” employee rises from $455 per week ($23,660/ year) to $913 per week ($47,476/year). Essentially, after December 1, any employee making less than $47,476 per year must be treated as an hourly or “nonexempt” employee.

There are numerous other technical changes in the new Department of Labor regulations, but the moving of the eligibility requirement to approximately double its present threshold is definitely the headline at this time. Why jump the bottom line so much? According to the Department of Labor, “[The] outdated salary threshold provides overtime protections to just 7 percent of full-time salaried workers today based on their pay, compared with 62 percent in 1975.”

By: Rick Pitts

employee’s hourly rate of compensation, but then provide the newly “nonexempt” or hourly employee with the opportunity to earn more via overtime compensation. Of course, this approach may be necessary if an employee’s ability to fit within one of the available exemptions is in doubt.

This second option comes with significant human resources risks, especially in the insurance industry.

The reason is because of our employees’ perceptions of being classified as hourly versus salaried. If an employee goes from being classified as salaried to being classified as hourly, that person may very well view the change as a demotion.

That same individual may also have concerns about the potential lack of opportunities to advance.

While we know that it is in fact not a demotion, often perception is reality. In reality, an individual that is reclassified from salaried to hourly So the big jump means that many agencies could may be looking at a substantial increase in their have a significant number of employees who could overall compensation by virtue of being eligible be below or near the new threshold. How do we for overtime. Nevertheless, many people view – from a psychological perspective – moving from a handle it from a human resources perspective? salaried to hourly employee as being a substantial For agencies who have employees at or near this negative statement about their relative worth to the organization and/or within their department. amount of compensation, there appears to be two main, practical ways to solve the problem.

Our sensitivity to the issue is important for two First, the employer could increase the employee’s compensation above the $47,476 per year amount. reasons. First, it’s well known in the insurance industry that our workforce is aging. Dr. Robert This could be a viable approach if the employee Hartwig of the Insurance Information Institute otherwise qualifies for treatment as an “exempt” or “salaried” employee. Usually, this means they fit recently reported that the number of workers aged 55 and above in the insurance industry has within certain parameters of the administrative or increased by 74% in the last 10 years. The profile managerial exemption of the regulations. of the agency workforce is one of more seasoned Second, an employer could actually lower the www.iiak.org | July/August 2016 | 25

workers, many of whom have chosen to stay in their community or with their current employer for many years. Those are the hallmarks of someone who has invested in a “career.” To tell a career employee that they must go from having been treated as a salaried to an hourly employee requires all the delicacy and diplomacy a human resources person or agency leader can muster.

Second, our industry is complex. Many of the employees at our member agencies are also licensed insurance professionals and are frequent attendees at educational and industry events. From a human resources perspective, employees who have invested in their careers over a period of time by devoting themselves to continued education and networking opportunities through training classes, seminars and conventions will not take kindly to the type of psychological “demotion” that the new rules may cause.

And that’s not all. Once we’ve recognized that there are employees in the danger area, or there are employees who simply must be reclassified according to these new regulations, we will be forced to begin asking other questions such as, “what are we going to do about flex time?”

It is important to acknowledge that many of our agencies are smaller and have established a culture of entrepreneurial spirit. Simply put, they have a disdain for rules and regulations. Practically speaking, this means that they are prone to say things such as, “If you worked late on the project this week, just take some extra time off next week.”

at closely and may need to change completely especially if the person in question is a worker that may be eligible for overtime.

There are other risk management techniques available, too. These include prohibiting overtime unless prior authorization is obtained, along with requiring that any overtime actually worked must be reported within the same pay period. Consultation with counsel and with human resources professionals may be necessary to put in place the full array of risk management tools.

The broad impact of this rule for agencies and for their insureds cannot be doubted. According to the Department of Labor: “4.2 million salaried workers will be affected by this rule based on their salaries. These workers are currently ineligible for overtime.

The Department estimates that most of them (4.1 million) will become eligible for overtime when they work more than 40 hours (i.e., they will be converted to overtime-eligible status), while others (100,000) will receive a raise so that their salary is above the new threshold.”

Richard S. Pitts, IIAK’s General Counsel is also part of our newest member benefit, First Call Free Legal. Members receive up to a 30minute phone consultation on an insurance or agency-related matter once a year at no charge. Contact IIAK for more information.

From a risk management point of view, this may no longer be an acceptable practice, especially if the employee in question is in the gray area either as to compensation or actual responsibilities.

Also a problem, is how to control overtime once employees have been identified as being eligible for it. That same cultural, entrepreneurial spirit that drives many of our agencies, leads to a desire for the proverbial “24/7” responsiveness. Agencies may be happy to send their workers home with company provided cell phones where they can work all evening by accessing the company’s document imaging system, accounting records and/or email account remotely. These practices should be looked 26 | www.iiak.org | July/August 2016

Receive one 30-minute phone consultation with an attorney at NO COST. Contact IIAK to take advantage.

www.iiak.org | July/August 2016 | 27

We’re here for you! If you have questions,

Peggy P. Porter President & CEO pporter@iiak.org

Crystal Brown

Administrative Assistant cbrown@iiak.org

Katie M. Freshley

Education & Events Director kfreshley@iiak.org

Coverage for your Agency

Membership

Coverage for your Clients

News & Resources

Education & Training

Networking & Events

Professional Liability Insurance – Kristie Weyer Anthem Group Health Plan – Kristie Weyer Cyber Liability Insurance – Kristie Weyer EPLI Coverage – Kristie Weyer Agency Umbrella – Kristie Weyer Big I Markets – Kristie Weyer RLI: Stand Alone Personal Umbrella – Kristie Weyer RLI: At Home Business – Kristie Weyer Eagle Agency – Kristie Weyer Flood – Kristie Weyer

Address Change – Crystal Brown Agency Personnel Change - Crystal Brown Benefits – Tara Purvis Payments – Crystal Brown Student Membership – Tara Purvis

Website Content – Nikki Robins Toolkits – Tara Purvis Kentucky IA Magazine - Nikki Robins IIAK Insider eNewsletter - Nikki Robins Legislative Bulletin – Peggy Porter Virtual University – Research Library - IIABA.net Staffing Solutions Virtual University – Ask An Expert – IIABA.net Work At Home Vintage Experts (WAHVE) – Tara Purvis Social Media – Tara Purvis Career Center – Access through www.iiak.org Agent’s Council on Technology (ACT) – IIABA.net Agent’s Guide to Interns – Download @ www.iiak.org Marketing Reimbursement Program (MRP) – Nikki Robins Classroom – Katie Freshley Agent’s & Brokers Education Network (ABEN) – Katie Freshley CRM Designation – Katie Freshley Compliance – Katie Freshley New Level Partners (New Hire Training) – Katie Freshley Veterans Licensing Program – Tara Purvis 28 | www.iiak.org | July/August 2016

Sales & Leadership Conference – Katie Freshley Road Shows– Katie Freshley Annual Convention & Trade Show – Katie Freshley Young Agent’s Day at Keeneland – Katie Freshley Young Agents – Katie Freshley Legislative Day – Katie Freshley

here’s who will know the answers.

Tara Purvis

Marketing Director tpurvis@iiak.org

Nikki S. Robins

Communications Director nrobins@iiak.org

Government Affairs

Legislative Issues – Peggy Porter Lobbying – Peggy Porter Insurance Laws – Peggy Porter Kentucky DOI Liaison – Peggy Porter Political Action Committees InsurPac - Peggy Porter KAPAC - Tara Purvis

Agency Operations and Services

Trusted Choice – Nikki Robins TrustedChoice.com – Nikki Robins First Call Free Legal – Peggy Porter/Tara Purvis Caliper - Access through www.iiak.org Agency Audit (The Moberg Group) – Kristie Weyer UPS Shipping Discounts - Access through www.iiak.org Telecom Services – Tara Purvis Insurbanc – Tara Purvis Docusign - Access through www.iiak.org Best Practices – IIABA.net Retirement Programs – IIABA.net

Kristie Weyer, CISR

Insurance Services Director kweyer@iiak.org

Administrative

Accounting – Tara Purvis Agency Visits – Tara Purvis Association Governance – Peggy Porter Board Functions – Peggy Porter Convention Exhibitors – Crystal Brown All Education & Event Registration – Crystal Brown Industry Partner Program – Tara Purvis Insurance Technical Questions – Kristie Weyer/Peggy Porter Kentucky Premium Finance – Kristie Weyer Leadership Opportunities – Peggy Porter Public Relations – Nikki Robins Website ID & Password Inquiry – Crystal Brown Local Boards – Katie Freshley The colors used in this list correspond with the colors of the headers of where they can be found on our website, www.iiak.org • Membership • Products & Services • Education & Events • Government Affairs • News & Resources

120th Annual Convention & Trade Show November 9 - 11, 2016 • The Brown Hotel • Louisville

Registration Opens 7 am

Afternoon at Churchill Downs 11:45 am

CRM Conferment Lunch 12:30 pm

Welcome Breakfast & General Session 8 - 9:45 am

Registration Opens 4 pm

Swiss Re Mock Trial 2 - 5 pm Auction

Cocktail Reception & YAC Silent Auction 5:30 pm Protecting Your Organization from Computer Crime 10 am

Trade Show & Opening Reception 5 - 7:30 pm

Spouse/Guest Outing Cooking at the Cottage 11 am

Bowling @ Sports & Social Club 9:30 pm

Dinner - on your own 7:30 pm

Insurance Ethics 9:30 am

YAC Breakfast 8:30 am

Liberty Mutual Reception 9 - 11 pm 2016 30 | www.iiak.org | July/August

Leadership Dinner 7 pm

The E. Starling Holloway Award is given to honor an individual who has made a significant industry contribution, enhanced the ideals and reputation of the insurance industry, or made a significant contribution to his or her community, state or country. This award is open to all felt worthy of the honor and does not have to be a member of the IIAK and/or does not have to be working in the insurance industry.

The award will be presented at the 120th IIAK Annual Convention in Louisville on November 10, 2016.

Nominations must be received by IIAK by end of work day, September 1, 2016. Please be as thorough as possible and please use additional sheets of paper if necessary in any category below.

Candidate Information Nominee Name: ____________________________________________________________________________________ Full Address: _______________________________________________________________________________________ Phone: _____________________________ Email: ________________________________________________________ Education: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Organizations involved in/offices held: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Significant achievements in Business/Career: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Significant achievements in Community/State/Country: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ I believe this person should receive the E. Starling Holloway Award because: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Nominator Name: __________________________________________________________________________________ Full Address: _______________________________________________________________________________________ Phone: ____________________________ Email: _________________________________________________________ Please submit this form by: Fax: (502) 245-5750 Email: iiak@iiak.org Mail: 13265 O’Bannon Station Way, Louisville, KY 40253-6689

www.iiak.org | July/August 2016 | 31

The CSR of the Year Award is given to an individual working in an IIAK member agency as a customer service representative, who typifies the ideals of service. This person’s experience, education, community service and attitude may be taken into consideration in the judging for this award. A person may be licensed or not to be considered for this award.

The award will be presented at the 120th IIAK Annual Convention in Louisville on November 10, 2016.

Nominations must be received by IIAK by end of work day, September 1, 2016. Please be as thorough as possible and please use additional sheets of paper if necessary in any category below.

Candidate Information Nominee Name: _____________________________ Agency Name: _________________________________________ Agency Address: ____________________________________________________________________________________ Phone: _____________________________ Email: ________________________________________________________ Education/Work Experience: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Organizations involved in/offices held: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Significant achievements in Business/Career: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Significant achievements in Community/State/Country: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ I believe this person should receive the CSR of the Year Award because: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Nominator Name: __________________________________________________________________________________ Full Address: _______________________________________________________________________________________ Phone: ____________________________ Email: _________________________________________________________ Please submit this form by: Fax: (502) 245-5750 Email: iiak@iiak.org Mail: 13265 O’Bannon Station Way, Louisville, KY 40253-6689

32 | www.iiak.org | July/August 2016

Slips, Trips and Falls, Oh MY! Slips and trips on the same level are the second leading cause for workplace injuries resulting in workers’ compensation claims. Falling from a different level is in the top ten.

As the workers’ compensation self-insured fund for The Kentucky Retail Federation, KFRSIF is familiar with and understands the potential dangers associated with slips, trips and falls. We offer our members on-site loss control evaluations, training and other prevention services for FREE!!

Our Members are Fully Supported Kentucky Retail Federation Self Insurers fund (KRFSIF) is specifically designed for Kentucky retailers, by Kentucky retailers.

4 Third party administrator, CCMSI, is SAS 70 accredited in both Type 1 and Type 2 categories.

4 CCMSI services 60+ funds across the U.S. (www.ccmsi.com).

4 We have extensive experience in servicing grocery stores, convenience stores, restaurants, auto body shops and physicians’ offices.

4 With KFRSIF there are no hidden surprises – IBNR reserves are developed for those claims that have not yet been reported and for claims with unforeseen development.

It’s All About Stability

| Traditional insurance companies come and go – We are here to stay! We have over 20 years of servicing your clients workers’ compensation needs. | Get the best of both worlds: the benefits management services provided by CCMSI, the country’s largest independent TPA while enjoying personalized local claims management services. | Our claims adjusters and loss control consultant are Kentucky based and dedicated to servicing our members. | KFRSIF is governed by a Board that is elected by our members, not appointed – ensuring that decision-making is to the best benefit of our members. | Our members receive the benefits associated with membership in the Kentucky Retail Federation. Log onto www.kyretail.com for more information.

To join KRF visit www.krfsif.org or email krfsif@ccmsi.com.

These reserves meet all state and actuarial requirements for future loss development.

New Partnership

KFRSIF has partnered with the Kentucky Grocers Association.

Call us at 502-394-3018 www.iiak.org | July/August 2016 | 33

Gambling

Your Agency’s Data Won’t Get Hit? Only 35% of companies invest in cyber-liability insurance, even though studies show that more than 72% of data breaches occur in small-to-medium-sized businesses.

Coverage Benefits

Failure to notify the affected individuals “without unreasonable delay” could cost your agency up to $1.5 million in fines from the federal government. Add this to the $200,000 average cost to comply with notification laws, the legal liability, and the reputational harm caused by the breach, and you can quickly see how this exposure could devastate your agency.

• Up to 50% off premium

We have partnered with Arlington/Roe to offer members an exclusive program to help protect their agencies from information security breaches. The holistic risk management program helps train staff on privacy compliance in addition to handling data breach notification and third party results.

• Members pre-qualify for enrollment* • No encryption requirement • Online compliance materials and support • Step-by-step procedures for compliance • Staff training programs and newsletters • Data breach coach to help with notification

For more information, go to www.iiak.org

• Forensic investigator, public relations expertise, and privacy counsel

Take action today by contacting: John Immordino jimmordino@arlingtonroe.com or Kristie Weyer kweyer@iiak.org

• Notification costs outside limit of liability

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We’ve got your back! We advocate for you in the Kentucky Legislature, US Congress and with insurance regulators on issues which affect policies, risks and business operations for you and your clients.

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E&O - We have relationships with the premier writers of agent’s E&O. We can be your trusted advisor in the placement of your coverage. We offer enhancements not available on the open market and premium discounts for claims-free experience, attending loss prevention seminars and use of our agency consultant. See page 8

Nowhere else is there a single source to inform you of marketplace, legislative and regulatory changes that impact your agency and clients.

Anthem Group Health – We offer a great group health plan that is risk rated vs community rated. Our program has been matched with government programs and is a better and more cost-effective option. See page 23 Cyber Liability – This program protects your agency from data breaches. You don’t have to be an expert or compliant to qualify for this insurance. IIAK has special pricing that can save you up to 50%. See page 34 We offer in-depth education from recognized experts like ABEN and New Level Partners as well as on site E&O classes and the CRM designation. This translates to better educated and committed staff, increased sales and superior service and expertise for your clients. See page 16 IIAK offers you market access to 80 plus niche markets with no fees, no volume commitments and competitive commissions through Big “I” Markets. Some highlights of these markets include Flood coverage with Selective, General coverage through the Eagle Agency and RLI offers great products with a personal umbrella and at-home business coverage. See page 21 36 | www.iiak.org | July/August 2016

Where else can you attend Kentucky’s largest industry trade show, learn emerging industry information from quality speakers, network with your peers and experts from all facets of the industry? See page 30 Easily pay for your membership using money-saving discounts on business products and services. Specifically, FREE CE during statewide Road Shows, a telecom services evaluation, WAHVE, First Call Free Legal, new hire training, and the Trusted Choice Marketing Reimbursement program.

Our experienced, professional and knowledgeable staff is here to assist you with whatever business challenges or needs that may arise. Whatever the question we will help you find the answer or solution. See page 28

The entire reason we exist is for your benefit, to serve your needs and help perpetuate your agency.

Upcoming road shows

Thank You 2016 Industry Partners (as of 7/29/16) Premier

August 16 Owensboro

September 21 Lexington

August 23 - SOLD OUT Louisville

October 5 Northern Kentucky

1976 The year our longestserving associate began working at J.M. Wilson

Platinum

100%

Dedicated to the independent insurance agent

COMMITMENT 68

Diamond

UNDERWRITING SINCE 1920

Gold Acuity Bolton & Company Grange Insurance Company KEMI MAPFRE Insurance Risk Placement Services, Inc. Silver AFCO Amerisafe, Inc. Kentucky National Insurance Co Keystone Insurers Group Motorists Insurers Group Secura Insurance State Auto Insurance Company

The number of years we’ve been working with our longest-standing agency

Bronze

MGA and E&S Broker since 1920

(800) 666-5692 | JMWILSON.COM

SURETY TRANSPORTATION PROPERTY & CASUALTY PERSONAL LINES BROKERAGE / PROFESSIONAL

Alexander J. Wayne & Associates Anthem Blue Cross & Blue Shield Auto-Owners Insurance Company BITCO Insurance Companies Columbia Insurance Group Countryway Insurance Company FCCI Insurance Group FFVA Mutual Insurance Company InsurBanc

J.M. Wilson KESA KY Associated General Contractors Market Finders Insurance Corporation Midwestern Insurance Alliance Prime Insurance Companies Summit Swiss Re Corporate Solutions Westfield Insurance

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We make it our business to

KNOW YOUR CLIENT’S

BUSINESS West Bend’s insurance professionals know a lot about business.

And childcare is one of our specialties.

As an Official Supplier of the Silver Lining®, our products are backed by your knowledge and expertise.

Let’s work together to provide the best coverages for your client’s operations.

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Classifieds Acquisitions

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. Call R. Alex Rankin, CPCU or Steve B. Thompson, CPCU, at Sterling G. Thompson, Co. at 502585-3277

Looking for Producers

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

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

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Twitter

linkedin.com/in/iiakentucky

twitter.com/iiakentucky

Ad Index Amerisafe Anthem Blue Cross & Blue Shield Big “I” Markets Bolton & Company EMC Insurance FCCI Guard Insurance J.M. Wilson Kentucky Retail Federation KEMI KESA RLI Personal Umbrella Secura Summit Consulting Swiss Re Professional Liability United Fire Group West Bend Mutual Insurance

14 23 21 OBC 24 10 12 37 33 27 IFC 7 35 11 8 19 38

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

MailTracker

Cost: Free Rating: ««««« Learn more: http://mailtrackerapp.com/

The biggest obstacles for projects getting completed can be people refusing to read email, which is why Mailtracker comes in handy. This helpful iOS app syncs with the iPhone’s mailbox and can send you a detailed notification of when the other person reads a message, where they read it from, etc. Now you’ll know if someone is telling you the truth when it comes to a memo. - Business Insider www.iiak.org | July/August 2016 | 43

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.

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

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

Don’t put your clients at risk. Vacant homes are a specialty at Bolton & Company. We have a program especially designed for this market.

Call us today and let your clients rest easy.

• 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