Kentucky IA - Summer 2020

Summer 2020

DEPARTMENT OF INSURANCE

ILLEGAL INDUCEMENTS Q&A

P. 6

DO’S AND DON’TS

OF COVID-19 E&O LAWSUITS

P. 16

WILL THE CUSTOMERS COME BACK? P. 20

Our Future is Bright AM Best Rating “A-“ (Excellent) with a Stable Outlook Highly Competitive Rates Precision Underwriting Expert Claims Handling Comprehensive Loss Prevention Services

200 Executive Park, Louisville, KY 40207 | t 502.894.8484 | 800.367.5372 | clearpathmutual.com 2 | Kentucky IA - Summer 2020

What's

Page 6

Inside

Contents

6 Kentucky Department of Insurance Illegal Inducements Q&A

12 Paycheck Protection Program Updates: What you should Know about the Forgiveness Guidelines

Page 20

16 Do’s and Don’ts of COVID-19 E&O Suits 20 Will the Customers Come Back?

24 Re-Tooling in the Midst of Chaos 29 It’s Time to be Intentional about your Agency’s Culture

Page 24

In

Every Issue

Office Address 13265 O’Bannon Station Way, Louisville, Kentucky 40223.

Telephone: (502) 245-5432 Email: info@bigiky.org Fax: (502) 245-5750 All advertising and editorial submissions are welcome.

4 From the Chair

27 Upcoming Events

5 From the Commissioner’s 34 Advertiser Index Desk 34 Classified Ads 10 Education Offerings 34 Social Media Links 15 Industry Partners

Our

The Kentucky IA is the official magazine of Big I Kentucky, and is published quarterly.

Mission

Create value for our members through innovative resources and legislative advocacy while fostering industry relationships.

3 | Kentucky IA - Summer 2020

OFFICERS Ray A. Robertson, CIC Chair, Mt. Sterling 859.498.3410

Kevin T. Desmond

Chair-Elect, Bellevue 859.491.5100

Whitney L. Floyd, CIC

Vice-Chair, Henderson 270.827.3543

Allen J. Crawford, CIC, CSRM Treasurer, Somerset 606.679.6311

Stephen R. Kinkade, CPCU, AAI National Director, Leitchfield 270.259.5465

Aaron LaRue

Immediate Past Chair, Bardstown 502.348.0050

DIRECTORS Philip Anderton

Lousiville, 502.585.3277

Mark Linkous, CIC

Edmonton, 270.432.3491

John Purdom

Murray, 270.753.4751

Carolyn Reynolds

Richmond, 859.623.8485

Eric Schumacher

Maysville, 606.759.5663

Adam Sheridan

Emerging Leader Chair, Somerset 606.679.6311

Chris J. Wiseman, CIC

Bowling Green, 270.781.2020

Laura Yount, CIC, CISR

London, 606.878.0100

STAFF Tara T. Purvis

President & CEO

Amy Good

Financial Services Director

Chair From the

Pandemic, social distancing and contact tracing are all new words and phrases introduced to our vocabulary this year. When I was elected Chair of Big I Kentucky, I would have never believed you if you told me some crazy virus would shut down the United States. Currently, our lives and businesses are getting back to the “new normal,” but I never thought I would have to wear a mask to do everyday things like go to the bank. When the Governor announced insurance agents were essential, it was not news to me. The service we provide to our clients is not only necessary, but vastly important as insurance agents keep the wheels turning in all of our communities.

During these crazy times, I can attest to the fact that the staff at Big I KY has been hard at work keeping our association relevant as a trusted resource for our membership. Tara has played a crucial role in working with the staff to update protocols, stay involved legislatively and help agents adhere to all the state’s guidelines. I hope you were able to listen in on our forum with Commissioner Sharon Clark and Kentucky DOI staff regarding the changing landscape for agents. In the coming months, I hope to visit agencies and spread Big I Kentucky’s message around the state.

How many benefits of Big I Kentucky are you using? E&O coverage, group health insurance, ePayPolicy, telecom services and many more highlight how your agency can get more bang for your buck. To our agency, the network of independent agents and the impact of getting involved are the most valuable benefits of being a Big I KY member. Meeting new folks from around the state, spending time at events with field representatives from sought after companies and learning who to call at the association to get answers to your questions are a few of the perks when getting involved. In my comments, as I was handed the gavel at the 2019 convention, I talked about the importance of involvement in legislative advocacy on a state and national level. Big I Kentucky and IIABA nationally are fighting for what is best for your agency and all the independent agencies across the nation. On a state level, Big I members have an insurance agent at the table in both chambers of Kentucky legislature.

Nationally, IIABA worked hard to ensure the inclusion of agency owners in the 2018 Trump tax legislation.

KAPAC and InsurPac donations are essential to extend the reach of our advocacy. Our agency had 100% participation by all agency personnel in 2019, and I would like to challenge everyone reading this to do the same in 2020.

Big I Kentucky is making a difference in our industry and your industry every single day.

Katie Hines

Membership Services Director

Taylor A. Lee

Communications Director

Kristie Weyer, CISR

Insurance Services Director

Cassie Young

Workforce Development Director

4 | Kentucky IA - Summer 2020

Ray Robertson

From the

Commissioner’s Desk The mission of the Department of Insurance is to have a “balanced industry throughout our state to protect consumers and to uphold the financial solvency of the insurance industry. This balance can sometimes be challenging to maintain, but when an extraordinary event, such as the COVID-19 pandemic, the challenges become even more significant.

Governor Beshear had his first press conference regarding COVID-19 on March 9 and called the Kentucky Department of Insurance to attend. I am incredibly grateful the Governor had trust in the Department and signed an Executive Order to give the Department the ability to set aside statutes and regulations of our insurance code to address the issues caused by COVID. We took their trust seriously and judiciously guided the industry, consumers and healthcare providers with the principle of maintaining a “normal” Kentucky marketplace. The myriad of issues varied greatly -- from assisting with insurance coverage on private vehicles used for business delivery services to preparing for overcrowded healthcare facilities. I remember sitting in my office and listening to DJ Wasson, Executive Advisor, talk to medical malpractice insurers to determine how to obtain insurance coverage for volunteer medical students. We are dealing with issues we have never addressed before.

The most critical issue was to remain open and recognize insurance as an essential industry. This dedication and recognition enables agents to work diligently for Kentucky citizens. Give yourselves a pat on the back -- you deserve it.

I am incredibly proud of the Department of Insurance staff. They packed up their codebooks, laptops and other technology and settled in at home to continue to do their jobs. The telework has not been easy because the DOI enjoys collaborating in a face-toface environment. We continue to serve the Commonwealth and you each day.

We love our agents!

Best wishes, Sharon Clark

CHECK OUT OUR NEW WEBSITE!

DOI NEWS CONTACT Phone: 502-564-3630 Toll Free: 800-595-6053 Kentucky Department of Insurance 500 Mero Street 2 SE 11 Frankfort, KY 40601

5 | Kentucky IA - Summer 2020

Kentucky Department of Insurance

ILLEGAL INDUCEMENTS

Illegal inducement and anti-rebating laws have been in place in Kentucky since before 1950 as a way to provide market stability and prevent unfair discrimination. The laws are intended to focus the sale of insurance on the quality of the insurance product rather than the size of the rebate. The Department of Insurance strives to balance its interpretation of these laws in a way that provides strong consumer protection but also allows flexibility for agents to grow their business.

In general, Kentucky’s laws: • Prohibit an insurance producer from offering any prizes, goods, wares, merchandise, or property of an aggregate value in excess of twenty-five dollars ($25) in connection with an insurance transaction. The Department interprets the dollar limitation to be imposed per policy year.

(KRS 304.12-110) • Allow a referral fee to be paid to an unlicensed person as long the fee is paid regardless of whether insurance is sold. Please note that the statute does not place a dollar limit or a frequency limitation on the referral fee. However, the Department would look closely at the intent of the arrangement to verify a good faith compliance with the requirement that consideration is paid regardless of whether insurance is sold. To that end, the Department would encourage an agency to have written policies and procedures in place to demonstrate compliance with the statute. (KRS 304.9-425) • Prohibit an agent from giving any rebate, discount, abatement, credit, or reduction of premium.

(KRS 304.12-090) There are stated exceptions to these laws. For example, programs or services can be provided that are intended to reduce the future cost of insurance or the severity of the loss. The exceptions are generally listed in KRS 304.12-100.

Below are examples of commonly asked questions and answers. Please note that the Department does not provide legal advice and the answers to these questions are dependent on underlying facts.

The responses below are general responses to the questions presented. Licensees are encouraged to consult the statutes regarding rebating, illegal inducements, and referral fees when examining their specific situations.

6 | Kentucky IA - Summer 2020

Questions & Answers ABC Agency wants to give away two tickets to a UK Basketball game (valued at $250) in a raffle. There is no purchase necessary and is not contingent on quoting their business. Is this allowed?

• No, this would not be allowed as the value is greater than $25.

DEF Agency offers a $25 referral gift card every time an existing/possible customer refers a piece of business to an agency. Customers may refer as many clients as they like. Is this allowed?

• This may be allowed, provided the referral fee is not based on the sale of insurance.

GHIJ Agency donates a $50 Amazon Gift Card to a local school/church picnic for a raffle. The agency will only receive recognition that they donated the gift card. Is this allowed?

• Yes, this is allowed as it is a charitable gift and is not being made in connection with an insurance transaction.

KLM Agency is partnering with a local apartment complex. For every person that gets a Renters Policy from KLM Agency will receive $50 off their deposit. Is this allowed?

• No, this is not allowed as the value exceeds $25.

NOP Agency is doing a contest to win a flatscreen TV; to qualify, you must submit a ‘good’ lead that results in new business for the agency.

Is this allowed?

• No, this is not allowed. We must assume that the flat-screen TV’s value is greater than $25.

Additionally, with the statement “to qualify, you must submit a ‘good’ lead that results in new business for the agency,” this could be considered a referral fee based on the sale of insurance, which is not allowed.

QRS Agency is offering $20 cash for each referral with no limit to the amount you may receive. i.e., if I give you 30 referrals, I would pay you $600.00.

• This may be allowed, provided the referral fee is not based on the sale of insurance.

TUV Agency provides a floral arrangement for the funeral services of the spouse of his/her insured.

This is her/his practice whenever an insured’s spouse or other close family member dies where the insured had insurance through him/her with an annual premium totaling $5,000 or more. Is this allowed?

• This is allowed as long as the arrangement does not exceed $25.

WXYZ Agency offers to give the 100th person who comes in for a quote on insurance coverage a free iPad. Is this allowed?

• No, this is not allowed. We must assume that the iPad is worth more than $25.

Joe Agent gives back a portion of the commission he received to his insured client. Is this allowed?

• In general, this would not be allowed.

Commission is a portion of the premium filed with the Department, and giving back a portion of the commission is considered a rebate. However, there is a specific exemption for certain clients outlined in KRS 304.11-042.

Janet Agent takes their insured client, along with the client’s family—spouse and two children—to dinner and picks up their part of the tab totaling $350. Is this allowed?

• No, this is not allowed. Based on the question, we can assume that this dinner and the insurance transaction are connected. As the value exceeds $25, this would not be allowed.

More Questions?

Call 800-595-6053

7 | Kentucky IA - Summer 2020

NEW MEMBER BENEFIT

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VISIT WWW.IMSACCESS.COM TO LEARN MORE. 8 | Kentucky IA - Summer 2020

New “Stronger Together” Advertising Campaign In a time of uncertainty, one thing is still certain: Good advice… is always valuable.

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NEW ON-DEMAND CE COURSES USE CODE KYVOD20 FOR 20% OFF ON-DEMAND COURSES ONLY Agency Based E&O and Ethics 3 hours

Business Auto Claims That Cause Problems 2 hours

Certificates of Insurance Emerging Issues & Other Stuff That May Scare you 2 hours

Commercial Lines Claims that Cause Problems 2 hours

Commercial Property Endorsements That Can Make You Money 2 hours

Data Privacy Insurance 2 hours

Directors and Officers Liability Insurance

E&O Roadmap to Personal Auto & Umbrella Part 1 3 hours

E&O Roadmap to Personal Auto & Umbrella Part 2 3 hours

E&O Roadmap to Policy Analysis Part 1 3 hours

Hot Topics in Personal Lines 2 hours

Professional Ethics in the Insurance Industry 3 hours

Rental Cars: More than Meets the Eye 2 hours

E&O Roadmap to Policy Analysis Part 2

Shake, Rattle & Roll With itEarthquake Basics

Ethical Issues- Personal and Organizational

Those Kids and Their Cars!

Ethics and Business

What You Need to Know About Employment Law & Cover

Flood Program Overview- NFIP Then & Now

Workers Compensation Beyond the Basics

3 hours

3 hours 3 hours

3 hours

1 hour

2 hours

2 hours

3 hours

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40 40

Want to be featured in our next issue?

We want to honor our seasoned professionals and give them the credit they so appropriately deserve. The only criteria is the person must work at a Kentucky Member Agency to be featured and have worked more than 40 years in the insurance industry. To apply for this wonderful tribute, please submit the following to Taylor Lee, Communications Director, at tlee@bigiky.org: • Name • Agency • Years in the Industry • Photo

• Favorite memory of your career • Favorite part of being an insurance professional

11 | Kentucky IA - Summer 2020

Paycheck Protection Program Updates: what you should know about the forgiveness guidelines By: Lisa DeVaughn Foley, CPA, CGMA Notice: The guidelines in the CARES Act: Paycheck Protection Program are continuously undergoing refinements and modifications, creating a fluid situation. Therefore, the timelines, dates, and other key elements may have material changes. For the latest updates, please visit the Baldwin CPAs website: https://baldwincpas.com/covid_news.

On March 27, 2020, the federal government enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses and individuals during the major economic downturn caused by the COVID-19 pandemic. A key program of the CARES Act is the Paycheck Protection Program (PPP), a $350-billion loan program intended to provide American small businesses with eight weeks of cash-flow assistance for payroll and other key expenses. In late April, after the first round of PPP money was depleted, the federal government announced a second wave of funding.

To date, approximately 4.8 million small businesses and nonprofits received funds from the $519 billion Paycheck Protection Program.

One key element that made the PPP loans so attractive is the loan forgiveness provisions. PPP loans may be forgiven if borrowers meet specific

12 | Kentucky IA - Summer 2020

criteria and comply with the program’s reporting requirements. To make the process of loan forgiveness easier for small businesses, the Senate passed the PPP Flexibility Act of 2020.

Key elements of the PPP Flexibility Act include: • PPP borrowers will have the option to extend the original eight-week period to 24 weeks.

• The requirement stating how much the borrower must spend on payroll decreased from 75% to 60%. Note: Borrowers must spend a minimum of 60% on payroll to qualify for full forgiveness; however, borrowers may still be eligible for partial forgiveness if the 60% criteria is not met.

• Within the 24-week period, borrowers are required to restore their workforce levels and wages to the pre-pandemic levels required to be eligible for full forgiveness.

• The Bill included two new exemptions based on employee availability. Borrowers can determine a proportion reduction, if in good faith, they are able to document the inability to rehire those who were employees of the borrower on February 15, 2020 or the inability to hire similarly qualified employees for the unfilled positions.

• If part or all of the loan is not forgiven, borrowers now have five years to repay the loan instead of two and the interest rate remains at 1% for any unforgiven amount.

Early PPP applicants with two year loan agreements can work with their lender to extend to the five year terms.

The next step in the process is for small businesses to begin to apply for PPP loan forgiveness. On May 15th, the SBA released the original forgiveness application. Most recently, a two-page PPP Loan EZ Forgiveness Application was released on June 17th that requires fewer calculations and less documentation than the full application. Borrowers must meet the following criteria to utilize the EZ Application: • Are self-employed and have no employees; OR • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The SBA, U.S. Department of Treasury and Congress continue to address the needs of small businesses impacted by the COVID-19 pandemic.

As the Leader of Client Accounting Services (CAS) for Baldwin CPAs, Member Lisa DeVaughn Foley brings more than 25 years of accounting and tax experience to client engagements.

Ms. Foley oversees the Firm’s outsourced CFO services, compilations, cloud accounting and client payroll services for a variety of industries including construction, healthcare, real estate, restaurants, retail and service businesses.

JM Wilson 100th KY Indep Agent CMKY outlines.indd 1

4/3/20 8:23 AM

For additional information about program criteria or for assistance with a PPP loan forgiveness application, contact Lisa DeVaughn Foley at lisa.foley@baldwincpas.com or by phone at 859.626.4960.

baldwin CPAs

13 | Kentucky IA - Summer 2020

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14 | Kentucky IA - Summer 2020

Thank You

2020 Industry Partners

BRONZE

SILVER

GOLD

PLATINUM

DIAMOND

(as of 07/01/20)

Associated General Contractors of Kentucky Bolton and Company Kentucky Growers Insurance Co., Inc. State Auto Insurance Company Amerisafe AMWins Anthem Blue Cross & Blue Shield Country Financial EMC Insurance Companies Encova FCCI Insurance Group

Frankenmuth Insurance Grange Insurance Company ICW Group Insurance Companies J.M. Wilson Kentucky National Insurance Co. Kentucky Retail Federation Self Insurers Fund Market Finders Insurance

MetLife Auto & Home Midwestern Insurance Alliance Prime Insurance Companies Selective Insurance Company of America SwissRe Corporate Solutions United Home Insurance Company Westfield Insurance

Big I Kentucky gratefully acknowledges these fine companies, our 2020 Industry Partners. Without their assistance, fees for the events and programs throughout the year would be significantly higher and/or the quality of the program would be restricted.

15 | Kentucky IA - Summer 2020

DO’S AND DON’TS OF COVID-19 E&O LAWSUITS By: Chris Boggs COVID-19 has changed the agent’s errors and omissions (E&O) landscape for the next several months. While we can’t predict the number of agents who may have E&O claims at this point, the odds are high that if you don’t get sued, an agent you know will.

Proper actions and reactions when threatened or served with an E&O suit arising out of this pandemic are of utmost importance. Once a threat is made, a lawsuit is filed, or the alleged improper act or omission has already occurred, don’t worsen the situation by making bad decisions. Remember these “dos” and “don’ts” if you find yourself in an E&O situation.

Let’s start with the first MAJOR don’t: Do not overreact to the claim. Understand that there is no shame in being accused of an error or omission, especially given the unusual circumstances of COVID-19. Even the best practices and procedures may not protect your agency right now. Anger, either toward yourself or others, is counterproductive and serves only to increase the weight of the situation.

Do not Do not, under any circumstances, alter the client’s file. What’s done is done. Making changes creates the appearance that there is something to hide. Accept what is there and prepare for what comes next.

Do not discuss the claim with anyone other than the claims representative, defense attorney or any other member of the office directly involved in the claim. The only individuals who need to be involved in any discussion related to an E&O claim are those personnel directly related to the care of the plaintiff’s account and those defending the agency.

Do not make any admission of liability or wrongdoing, and do not offer or make payment.

Do not provide any written or recorded statement to the plaintiff without your E&O carrier’s claim representative present.

16 | Kentucky IA - Summer 2020

Do not allow inspecting, copying or removing client files and records without consulting with your E&O claim representative.

Do not try to manage the claim on your own. The E&O carrier has more experience and is better able to handle the process. Allow those with more experience and resources to manage the suit.

Do Notify the E&O carrier of a “claim” or potential claim immediately. Provisions in the E&O policy require the insured to notify the insurance carrier immediately following the receipt of a “claim” or any indication of a potential claim.

Listen for “trigger” words or questions. Some words, phrases or questions just do not seem normal. It sounds like something a lawyer would say. If your client uses terms like “duty,” “breach” or “breach of duty,” assume they have been talking with a lawyer. Also, pay attention to the questions they ask. Does it seem like they are trying to trap you into admitting something?

Notify the carrier of a potential claim if words or phrases seem to indicate a lawyer is already involved.

Assume every conversation is being recorded.

Regardless of the legalities associated with recording a conversation, assume your answers are being recorded. Pick responses carefully.

Gather and organize all pertinent records related to the insured and the situation. However, remember the second “don’t” - don’t alter them.

The claim representative needs all the information to conduct an investigation and prepare and provide a proper defense.

Write down all the information known about the incident surrounding the claim. Each member of the team directly related to the client and the event giving rise to the E&O claim should record all they can remember about the incident or incidents on which the claim is based. This

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information should be a factual narrative statement in chronological order. Leave out opinions and emotions. You should act like you are speaking with Joe Friday from Dragnet – just the facts. You should only include who, what, where, when and why in these accounts.

Assign one person as the claim leader. One person should be assigned the duty to report, track and manage all COVID-19 E&O claims within the agency.

Cooperate with the E&O carrier. Cooperation includes providing information and facts that look bad for the agency. Hiding or hedging certain aspects of the facts surrounding the situation on which the claim is based creates distrust between you and your insurer; it also makes the agency look guilty. The insurer is on your side.

Make sure you comply with all policy conditions and requirements. If the agency fails to comply with all E&O policy conditions, coverage may be jeopardized.

Chris Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, is a veteran insurance educator.

He is Executive Director, Big I Virtual University of the Independent Insurance Agents and Brokers of America. He can be reached at chris.boggs@iiaba. net.

How is your E&O policy?

Call Kristie for a free quote!

502-245-5432 ext 102 (or option 1) kweyer@bigiky.org

Find all of the above and more at https:// www.independentagent.com/vu 17 | Kentucky IA - Spring 2020

More is more.

At EMC, we take a “more is more” approach when it comes to ensuring workplace safety, which is why EMC offers more loss control services than ever before. A safe work environment often leads to a more profitable business. And offering our loss control services at no additional cost to your clients often leads to a more profitable business for you, too.

www.emcins.com/losscontrol

©Copyright Employers Mutual Casualty Company 2020.

All rights reserved.

MORE ABOUT CURT • Knows a skid steer from a black angus • Solid Midwest work ethic • Two decades of insurance experience

An original farm boy Meet Curt, one of our Farm-Ag experts. He and others on his team were farm kids themselves, so they’ve got first-hand, practical knowledge about a farmer’s insurance needs. It’s the born-andraised kind of expertise we look for in a team. And they’re supported by our caring claims group so your clients can get back to the work at hand, just like they’ve done for generations.

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19 | Kentucky IA - Summer 2020

Will the Customers Come Back?

By: John Graham When we narrow down the current COVID-19 economic situation, we’re all in the same boat. No matter who we are or what we do, getting back to doing business hinges on having customers. Whether we like it or not, there’s no guarantee they will be there. Although it may be disconcerting, here’s why: • Some customers will decide they don’t need us. Their situation will have changed, and they will have moved on.

• Others will have found new solutions. Competition will be fierce, with appealing options popping up everywhere.

• More customers than we dare imagine will have simply disappeared, whether individuals or companies. For one reason or another, they aren’t around anymore.

• Many will be far less accepting and far more demanding than they were in the past. They’ve had time to rethink what’s important to them and established new priorities.

• Others are so stressed and preoccupied with their situation, and they’re unable to make decisions, let alone move forward. They can’t shake it off.

This may not be where we would like customers to be, but it’s where they are. As frightening as it may appear, we can’t expect them to dust themselves off and pick up where they left off. Just saying these words sounds, dare I say it, pessimistic. This isn’t the way we see ourselves. We’re optimists down to our DNA. We face danger squarely and we welcome challenges. To even suggest that a virus, of all things, could possibly disrupt our lives goes against the grain. It’s more than a mere a slap in the face; it’s the ultimate humiliation.

20 | Kentucky IA - Summer 2020

So, what are we to do? How will we deal with the cards we’re left holding? Hope for the best? Keep our fingers crossed? Turn on the optimism and bring back a pop tune from the 1940’s:

You’ve got to accentuate the positive Eliminate the negative Latch on to the affirmative Don’t mess with Mister in Between

That’s us—or is it? The words seem weak and out of place today. Here’s the point: rather than trying to pick up where we left off or hoping for the best, we will be better served by recognizing that we’ve all been through a lot and a lot has changed.

Here’s a checklist for reaffirming relationships with existing customers and building new ones with prospects. This is anything but easy. But it can happen!

⃝ Customers perceive us as being authentic. Pointing to Growth from Knowledge’s Coronavirus Consumer Pulse findings, Marketing Insider’s Stacy Bereck says that “85% of U.S. consumers feel the way brands behave during the COVID-19 crisis will affect their desire to do business with those companies in the future.” ⃝ We let them know we want to understand their situation. Call it empathy or whatever you would like. Consumers want to feel they are doing business with those who are interested in them and not just making a sale. ⃝ We introduce ways for customers to stretch their money. It’s more important than ever. Here’s how the Betty Crocker folks are responding to this obvious challenge. “Impossibly easy dinners for $2.50/serving. Dinner doesn’t have to be expensive to be delicious. These fuss-free recipes are big on flavor and easy on your wallet.” Right upfront, they make it clear why their recipes are a good fit. They use the right key words: easy, inexpensive and delicious. A winning combination. ⃝ We help them avoid making purchasing mistakes. I can hear someone say, “That’s not a salesperson’s job. I’m there to make a sale.” That was then. Now, it’s the smart salesperson who takes time so customers can arrive at an informed buying decision who will get the business–and be remembered. ⃝ We focus on helping customers. Explore options with them. Not good, better and best; not low, medium and high prices, but options you and your customer develop together such as poor fit, good fit and best fit. In other words, options that make sense to them. ⃝ We try to pull customers rather than pushing them.

This will take a lot more listening than talking, a lot more patience than persuasion and a lot more understanding than ever before. ⃝ We don’t think we can pick up where we left off. Let’s face it, there’s not much worse than being unwillingly slowed down, sidelined and told to stay home. We may be charged up and chomping at the bit to get going. Even so, it’s not like coming back from vacation.

21 | Kentucky IA - Summer 2020

All of which is to say we need to give both ourselves and our customers time to adjust to a new and different situation. ⃝ And, finally, our customers will stay with us if we let them know we’re depending on them. Some will see this as a sign of weakness and take advantage of us.

But if we believe in building relationships, it’s a chance worth taking.

In the past months, we have learned there is much that’s out of our control.

Even so, that’s not the last word. What we do next when it comes to our customers and prospects is up to us.

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

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RE-TOOLING IN THE MIDST OF CHAOS Don’t Forget the Not-So Obvious By: Sara Bradshaw Ray, CIC In the midst of the COVID-19 pandemic, we’ve all been working double-time to make sure we are meeting the needs of our teams, our families and our neighbors. In an environment of chaos, no one thinks clearly. Yet, in chaos, it’s easy to dial into the obvious “must haves” of the moment and lose sight of the necessary “must haves” to keeping our teams healthy and happy.

Believe it or not, “The Science of Happiness” is a real thing and the lion’s share on which the Greater Good Science Center at Berkley focuses their research. They study psychology, sociology and the neuroscience of well-being, so they can teach skills for fostering a thriving, resilient and compassionate society.

Through their research, they’ve discovered the four keys to happiness at work: purpose, engagement, resilience and kindness. This seems logical, but in the upside down world we live in right now, all of this looks completely different, or it should, in order to keep our teams healthy and effective in the work from home bubble.

“Trust me, the old “normal” will likely never exist again.”

PURPOSE

Our purpose is what gets us up in the morning and out to do what we do best. We’re not “out” anywhere right now, and when we get “out” again, it will likely look drastically different. Being able to define and see the results of being engaged in our purpose EVERYDAY is the fuel that drives what we do, yet in our current situation, can we still see if what we’re really doing is what we want to do? And what we’re doing is really meaningful to us and aligns with our core values? Are we really making a difference?

Our teams need to be able to see this every day in order to maintain their purpose for life and their work – which boils down to happiness. The lack of direct contact with the impact of our efforts can deprive us of our purpose – so make sure you and your teams can see the daily impact of your purpose to keep the fires of our passion burning.

ENGAGEMENT

Zoom, Teams, Google Hangout and even FaceBook Live chats are becoming well-known household names. If we’re not using these amazing tools to truly connect with our teams in a very genuine, authentic way, we’ve missed the magic of the face-to-face interaction that’s critical to engagement. Even more than before, our contacts with our teams have to be at a more personal, vulnerable level because of the socially distanced microcosm we’re working and living in right now. As leaders we might have never extended ourselves before. This isn’t a put on your suit jacket, synch up your tie and sit at your laptop in gym shorts kind of gimmick though. This is truly leaning into our teams to work harder, maybe longer and certainly more personally than we’ve ever worked to inspire and authentically engage our people.

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RESILIENCE

Resilience seems to be the biggest challenge many of us are facing right now. The ambiguous news and varied return to work timelines are exhausting and take its toll on all of us. When we’re able to ground our awareness of the present we’re able to shift our attention away from worry and fear, which takes us back to our purpose. When we know what we’re doing and what our goal is, we can ground our emotions in the super-present and maintain a healthy stance on the shifting sands on which we’re standing. We may need to take more frequent walks outside, a slightly longer lunch break to include a little bit of yoga, a better chair to sit in or a make-shift standing desk platform to help fuel our resilience. Our teams might need more encouragement from us, as colleagues.

KINDNESS

In terms of kindness, there are so many incredible stories of people going out of their way to do random acts of kindness for others. This is another one of those silver linings of COVID-19 that might never surfaced otherwise. Celebrate them, encourage them and do them yourself for your teams, your friends, family and especially strangers. It’s GREAT medicine for what ails us all. Birthday parades, bears in windows for the little ones out in the neighborhood on a “Bear Hunt” and a small rainbow on the mailbox shows that we have hope for a bright future and a more positive and uplifting attitude toward this temporary craziness.

Remember, as leaders, our teams follow our lead – from the front! In the midst of chaos, it’s easy to focus on the immediacy of hyper-productivity and miss the importance of effectiveness. We can’t forget to ground ourselves and our teams in the necessary “must haves” of healthy teamwork and moving forward to achieve our collective vision of the future. Take a couple of good deep breaths, then focus on what might need to be re-tooled a bit so you don’t miss the not-so-obvious things that form the foundation of our team’s trust – your heart. Trust me, your team depends on it!

Sara Bradshaw Ray is an Executive Coach and founder of MyNetwork and Synerdynamics. She is a former independent agency owner with more than 30 years of insurance experience. She now helps leaders capitalize on the power of synergies through mastermind groups and coaching. Contact her at info@synerdynamics.com or (405) 880-2920.

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You’re in the business of protecting others.

So, who’s watching out for you?

We are. At Arlington/Roe, we put the needs of our customers first. What does that look like? Well, it looks like experience you can trust, integrity you can count on, promises we stand behind and an independent and family-owned industry partner who understands your specific needs. Located in nine states and licensed in all 50, we’ve got your back.

Get to know the people of Arlington/Roe. We’ve been doing the right thing since 1964.

Let us help you find the right solutions.

Managing General Agents | Wholesale Insurance Brokers

800.878.9891 | ArlingtonRoe.com

Aviation | Bonds | Brokerage | Commercial Lines | Healthcare & Human Services | Farm Personal Lines | Professional Liability | Transportation | Workers’ Compensation

UPCOMING EVENTS KEENELAND

ROAD SHOWS (VIRTUAL)

October TBD

August 13 August 18

124th ANNUAL CONVENTION & TRADESHOW

EMERGING LEADER SUMMIT

November 18-20, 2020 Hyatt Regency Louisville

September 22-24 University of Kentucky Gatton College of Business 550 S Limestone Lexington, KY 40506

BIG I NEWS CONGRATS KATLIN! KATLIN ELDERSMAN is the first General Insurance Associate Apprentice to pass the KY DOI Licensing Exam!

IN MEMORIAM DANNY HOUSE 1952-2020

CRM

February 17-19, 2021 Hilton Garden Inn Louisville Northeast

NEW MEMBER WELCOME AGENCY

ASSOCIATE

Bratcher Insurance Services

Agents for Hope

AWARD-WINNING MEMBERS RUSS WARDLAW, INSURAMAX

Russ Wardlaw, President of Insuramax was named a Top Producer 2020 by Insurance Business America. The individuals highlighted are the best-performing insurance professionals across the country.

Have any GOOD NEWS to share from your agency or your participation in your community? We would love to hear! We can promote your success in our magazine and on our social media. Contact Taylor Lee at tlee@bigiky.org or give us a call at 502-245-5432.

Danny Russell House, 68, passed away on Tuesday, June 23, 2020.

Danny’s professional career in insurance started with Commonwealth Life Insurance Company. He was the longtime owner of House Insurance Services in Hancock County and a partner of House-Hoffman Insurance Services in Owensboro. Danny was a past president of the Hancock County Chamber of Commerce, served on the President’s Advisory Council for Motorists Mutual Insurance Company, and served on the board of Hospice of Western Kentucky and United Way. In 2011, Danny was named the Citizen of the Year in Hancock County by the Chamber of Commerce. Surviving are his wife of 47 years, Marsha Reynolds House; son, Brandon House and his wife Johnna; 3 grandchildren, Halley Stewart, Ella House and Ansley House.

MATT STEPHENS 1992-2020

Matthew Ryan Stephens, 27, passed away Monday, June 22, 2020, at his residence. graduate of Eastern Kentucky University with a bachelor’s degree in Risk Management and Insurance. He was a Real Estate Certified Insurance Professional currently employed with Risk Placement Services, Inc. in Lexington. Matt is survived by his parents, both sets of grandparents, many aunts and uncles and his two best friends, Chadwick Dale and Bradley Tussey.

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While they are caring for you, we are caring for them.

When a global pandemic ushered in a wave of fear and uncertainty, healthcare workers courageously stepped forward to educate, lead, and serve our communities in an effort to save lives and reduce the spread of COVID-19.

While these heroes continue working hard to protect and care for us, KEMI is committed to doing the same for them by providing important safety resources and extending workers’ compensation insurance benefits to policyholders on the front lines.

We will get through this together, and KEMI is here to help. Learn more at kemi.com/COVID-19.

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It's time to be Intentional About your Agency's Culture BY: DANI KIMBLE, CHIEF MARKETING OFFICER AT O’NEILL INSURANCE Now more than ever, organizations with a strong company culture are thriving. Why? Because if you can unite your team around a shared purpose and a set of core behaviors you become unstoppable, regardless of what is happening in the world around us.

at O’Neill Insurance - and it has a direct correlation with my high level of engagement, job satisfaction and desire and momentum to move the agency forward.

As you read this, a pandemic has transformed the way your employees are working, while taking care of their personal lives.

My story is one of many examples of the daily personal challenges your team members are facing. Whether they are caring for an elderly family member, grieving the loss of a loved one, struggling with a relationship, balancing the life of a working parent, facing health issues, etc. - life can be challenging and stressful at times. When your employer is there for you, it helps.

My story is one of many.

For over 75 days, I worked full-time from home while homeschooling my 1st grader, pre-kindergartner and preschooler. While the day-to-day activities were busy, my most challenging moments revolved around educating my children on what was happening as their school and extracurricular activities all came to a screeching halt.

They desperately missed their friends. Their spring sports were cancelled. They feared seeing masks in public. There was no formal goodbye from teachers and classmates. Though we made many beautiful moments during quarantine, there were still times where they felt sad. They felt scared. They were overwhelmed. They struggled to understand. They felt frustrated.

While my children and family have always come first, these particular moments required a significant amount of focus, time and intentionality on my part.

I have shifted the weight of my priorities to ensure a nurturing environment where my children feel safe and are socially and emotionally healthy.

How did I achieve peace through all of this? By working for an organization who consistently prioritizes my role as a mother and wife over and above my role as their employee. They led with empathy, offered flexibility and respected my need for stronger work/ life balance. Simply put, it’s a reflection of our culture

Culture speaks volumes.

The average American spends one-third of their life working. That is equivalent to an estimated 90,000 hours in a lifetime! Your organization has the power to make a significant impact on your team members’ quality of life. It starts with a very intentional and clearly defined workplace culture.

What is Workplace Culture?

Oftentimes, when people think about workplace culture they immediately jump to the “fun” elements of the work environment. Foosball tables in the break room, unlimited PTO, happy hours with the team, dogs in the workplace, yoga balls for desk chairs, etc.

The list goes on and on! The problem is, however, that when we define our culture in this format, workplace culture becomes “fluffy.”

Rightly so. While all of these elements listed above can certainly play a role in the overall culture of an organization, they do not give substance to the foundation of your company culture. Deloitte defines culture as a system of values, beliefs and behaviors that shape how “real work” gets done in an organization.

I’m not the first to refer to workplace culture as the heartbeat of your organization. When you put your people and your culture at the core of your business 29 | Kentucky IA - Summer 2020

strategy and you become intentional about nurturing, coaching, teaching and leading with the behaviors that lead to high performance on both, personal and professional levels, you position your people and your organization to thrive.

The next-gen leaders are putting culture at the forefront of their career decisions.

As the next generation enters and leads the workforce, they’re paying close attention to career aspects that go beyond the paycheck. Candidates and employees are looking at culture as one of the greatest determining factors for accepting and maintaining a role with your company.

Key findings in a report on Millennials at Work: Reshaping the Workplace indicate that career development and work/life balance are more important than financial reward. Additionally, your people thrive with clearly defined behaviors and expectations, which result in higher workplace productivity, job satisfaction, employee engagement and a stronger sense of meaning and purpose in their work.

It’s time to be intentional about your culture.

It is common for companies to have a vision/mission statement and/or core values - and use this to define their culture. What is not common, however, is to take the vision/mission and core values off the walls or website and operationalize them into the organization.

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This is where we can make progress in building a high performing culture.

There are several resources to help you get started on defining your culture. I recommend starting with the book, Fundamentally Different by David Friedman. Friedman’s system helped our team at O’Neill Insurance identify and define the behaviors that will lead our people and our organization to personal and professional success. It is essentially become our culture plan, operating on an 8-step framework which provides the foundation for the design, implementation and continual practice of a high performing culture.

Culture is the key. It is the key to attracting and retaining talent, increasing employee engagement and job satisfaction, and building a more cohesive, caring and empathetic team, which directly correlates with organizational growth and future-proofs your business for success.

GOOD COMPANIES HAVE GOOD CULTURES

BY CHANCE. WORLD CLASS COMPANIES HAVE WORLD CLASS CULTURES BY DESIGN. - DAVID FRIEDMAN

Risk Management Premium Credit

PROFESSIONAL L I A B I L I T Y.

A 10% credit on your Westport E&O premium may be earned by attending an approved 3 hour risk management seminar prior to your policy anniversary (or within 30 days after your policy inception/renewal date). The number of agency staff required to attend is based on agency size. The credit is applicable for two consecutive policy terms.

To determine your speci�ic requirement, refer to the chart below:

Agency Staff Size

Total Required Attendees

1–4 5 – 11 12+

1 3 25% of staff

(Max of 15 attendees)

The following additional credits are available, up to a maximum total risk management credit of 20 percent:  50% or more of staff attendance = 5% credit available  Agency use of a coverage checklist = 5% credit available  Voluntary website review by an approved reviewer with findings implemented = 5% credit available Please contact your state association for more information.

Additional agency risk management information is available 24/7 via the E&O Happens web site. Visit: www.iiaba.net/EOHappens

PERSONAL UMBRELLA

Did you know?

As a Big “I” member, you have acecss to stand-alone personal umbrella coverage for your clients from RLI. Limits up to $5 million available Excess UM/UIM available in all states.

The insured can keep their 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.        

32 | Kentucky IA - Summer Contact Jennifer Hopper2020 at 800-878-9891 or jhopper@arlingtonroe.com to learn more, or visit www.iiaba.net/RLI.

in case you missed it...

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Social Media Are we friends?

Follow us on your favorite social media sites.

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 Philip Anderton, CIC, at Sterling G. Thompson, Co. at 502-585-3277

Facebook

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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.

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

This publication would not be possible without you!

Arlington/Roe Bolton & Company Big “I” Professional Liability Big “I” Markets ClearPath Mutual EMC Guard IMS

26 BC 31 23 IFC 18 22 8

J.M. Wilson KEMI RLI Personal Umbrella Secura Summit Trusted Choice West Bend

For classified ads or to advertise in the Kentucky IA visit bigiky.org/magazine or call 502-245-5432.

13 28 32 19 14 9 IBC

Why Choose West Bend?

People

Insurance is a people business, and at West Bend, we pride ourselves on approachability and accessibility at every level of our company.

Relationships

We consider the relationships with our agents to be partnerships. Agents are our primary customers, and we support, and wholeheartedly endorse, a strong independent agency system.

Stability

Since 1894, West Bend has come to stand for excellence through the use of innovative products, steady growth, and financial stability. Since 1971, we’ve maintained an A (Excellent) or better rating from AM Best.

Regional Mutual Insurer

As a regional mutual insurer, West Bend decides what to do, and our decisions are always based on what’s best for our agents, insureds, and associates for the long term. As a regional insurer, we understand the local and regional markets.

Products

Our product offerings are well rounded, innovative, and diverse. West Bend is an industry leader in writing a wide range of businesses, including most found on your town’s Main Street. Through our specialty division, we specialize in writing risks many other companies turn away. Our bond department makes contract and commercial bonding easy to quote and issue. And our monoline workers’ compensation division provides a high-touch, results-oriented approach to help customers control the cost of insurance.

Service

Our dedication to service is what sets us apart from our competitors. Our knowledgeable and skilled teams of professionals provide unmatched service and dedication to our agents and their customers.

It doesn’t end there

Put all of these together – and more – and you’ll find West Bend offers distinct value through superior agency relationships, strong financial performance, stability, commitment to outstanding products and services, and knowledge and experience.

That’s why agents choose West Bend.

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2400 Waterfront Plaza • 325 West Main Street • Louisville, Kentucky 40202 Telephone 502 583.8361 • 800 292.6597 • Fax 502 584.6131 • www.boltonmga.com