Insight Magazine - May 2019 - Member

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

Editor, Advertising & Graphic Design - Rachel Romines

CONTENTS May 2019

14

17

24

30

14 17

Building a Successful Culture

21

19 Ways to Mess Up On the Job Without Even Knowing It

24 26 28 30

The Beneficial Role of the Insurance Industry in Illinois

By John Chapin

Fewer E&O Claims? Checklists Check All The Boxes

By SwissRe

By John Graham

By Phil Lackman

2019 Economic Impact Study EDGE Conference Wrap-Up

By Rachel Romines

We Rise by Lifting Others

By Rachel Romines

In This Issue

The Independent Insurance Agents of Illinois (IIA of IL) has been providing members with a sustainable competitive advantage since 1899.

5 7 9 23 31

President’s Message Trusted Choice Industry

e-Insight Young Agents

32 33 37 38 40 42

Associate News IIA of IL News Farm Agents Council News People in the News Industry News Classifieds

info@iiaofil.org | www.iiaofil.org | (800) 628-6436 or (217) 793-6660 | Fax: (217) 793-6744

2009 • 2010 • 2011 • 2012 2013 • 2014 • 2015 • 2016 • 2017

Insight is the official publication of the Independent Insurance Agents of Illinois (IIA of IL). The magazine is published monthly for the members of the IIA of IL, with the office located at 4360 Wabash Avenue, Springfield, Illinois 62711-7009; Consumer Website: www.ChooseIndependent.com. The IIA of IL welcomes letters discussing concerns of the insurance industry, articles, editorials, other matters of interest to the membership.

The editor reserves the right to edit and select submissions for publication. Address submissions for review to Rachel Romines at rromines@iiaofil.org.

ADVERTISERS

Board of Directors Executive Committee

41

ABRC

Chairman of the Board | Ryan Hite (309) 688-7316 | ryan.hite@eaglerockins.com

37

AMERISAFE

President | Patrick Muldowney (312) 595-7192 | patrick.muldowney@alliant.com

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APPLIED UNDERWRITERS

President-Elect | Bill Wirth (618) 939-6368 | billw@wirthagency.com Vice President | George Daly (708) 845-3311 | george.daly@thehortongroup.com Secretary/Treasurer | Bennie Jones (312) 960-6206 | bjones@rmsoa.com

2 38 8

ARLINGTON/ROE BERKSHIRE HATHAWAY GUARD INS. GROUP DONEGAL

IIABA National Director Gregory A. Sandrock, CIC, AFIS (815) 438-3923 | gregsandrock@2cornerstone.com

16

EBRM

18

EMC INSURANCE

Regional Directors

40

FCCI INSURANCE GROUP

Region 1 | Lisa Lukens (618) 942-2556 | salibainsurance@gmail.com

20

GRINNELL MUTUAL

Region 2 | Joseph Heneghan (618) 639-2244 | joe.heneghan@hwcrins.com

13

IMT INSURANCE

Region 3 | Jay Peterson, AFIS, LUTCF (217) 935-6605 | jay@peterson.insurance

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IPMG

Region 4 | Michael Gonet (815) 339-2411 | mike_gonet@hotmail.com

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JM WILSON

Region 5 | Patrick Taphorn, CIC, CSRM (309) 347-2177 | ptaphorn@unland.com

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OPENLY

Region 6 | Teresa Fleming (815) 849-5219 | tess@leffelmanassoc.com

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SECURA

Region 7 | Neidra Crosby (708) 597-8731 | ncrosby@insxchg.com

22

SOCIETY

Region 8 | Corbin Adams (312) 938-0900 | corbin@irsichicago.com

6

WEST BEND MUTUAL

Region 9 | Ed Boltz, JD (630) 443-7300 | eboltz@crumhalsted.com Region 10 | Kevin Lesch (630) 830-3232 | klesch@arachasgroup.com At-Large Director | William Durkin (312) 629-0725 | durkinb@danielandhenry.com At-Large Director | Michael-Charles Hilson (708) 333-3378 | mhilson@gbgins.com At-Large Director | Ken Samson, CIC (847) 291-0660 | kens@dascoins.com

Committee Chairs Budget & Finance | Bennie Jones (312) 960-6200 | bjones@rmsoa.com Education | Lindsey Polzin, CIC (630) 655-9112 | lindseyp@winesergi.com Farm Agents Council | Randy Jacobs (309) 365-3231 | rjacobs@mtco.com Government Relations | William Lawrence, CIC (309) 827-0007 | blawrence@plrinsurance.com Planning & Coordination | Cindy K. Jackman, CIC, CISR (800) 878-9891 x8745 | cjackman@arlingtonroe.com

IIA of Illinois Staff Education Director, CRM Manager Shannon Churchill - (217) 321-3004 - schurchill@iiaofil.org

Vice President, Agents Insurance Services Brian McSherry, CIC - (217) 321-3018 - bmcsherry@iiaofil.org

Accounting & Admin Services, Tradeshow Admin Tami Hubbell - (217) 321-3016 - thubbell@iiaofil.org

Office Administrator Kristi Osmond - (217) 321-3007 - kosmond@iiaofil.org

Director of Human Resources/Board Admin Jennifer Jacobs - (217) 321-3013 - jjacobs@iiaofil.org

Director of Communications Rachel Romines - (217) 321-3024 - rromines@iiaofil.org

Sr. Vice President/Chief Financial Officer Mark Kuchar - (217) 321-3015 - mkuchar@iiaofil.org

Director of Membership Services Tom Ross, CRIS, CPIA - (217) 321-3003 - tross@iiaofil.org

Chief Executive Officer Phil Lackman - (217) 321-3005 - plackman@iiaofil.org

Products & Services Administrator Janet White, CISR - (217) 321-3010 - jwhite.indep12@insuremail.net

Central/Southern Marketing Representative Lori Mahorney - (217) 415-7550 - lmahorney@iiaofil.org

Sr. Products & Services Administrator Carol Wilson, CPIA - (217) 321-3011 - cwilson.indep12@insuremail.net

Government Relations Manager Evan Manning - (217) 321-3002 - emanning@iiaofil.org

Trusted Choice | Keith Verisario (847) 699-4040 | kmv@allsecurity.com Young Agents | Allyson Padilla (618) 393-2195 | allyson@blanksinsurance.com

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INSIGHT | president's message

Partnerships to Help IIA of IL Members The IIA of IL has long worked hand in hand with the Katie School of Insurance and Risk Management at Illinois State University and its Executive Director Jim Jones to support and advocate on behalf of the insurance industry in the State of Illinois. The Katie School, which does an outstanding job of developing future talent for the insurance and risk management industry, is a true asset to our industry and our state. If you are not familiar with the Katie School and its mission I suggest that you please take a moment and check them out.

One of the ways that IIA of IL partners with the Katie School is our co-sponsorship of the Economic Impact Study it conducts periodically to assess the extent to which the Illinois insurance industry influences the overall economy.

The recently released 2019 study, which is discussed in greater depth in this issue of Insight, clearly demonstrates that Illinois insurance companies, agents and brokers continue to add quality jobs, revenue and investment to the economy. We can all take great pride in the fact that our industry is one of the leading sectors fueling economic growth in Illinois.

When you see the facts and figures contained in the study it is easy to see how the Illinois insurance industry continues to significantly influence both our regional economy and the economy of the United States. While I was aware that Illinois is home to a number of the nation’s top insurers, I was still surprised to learn that one out of every five dollars of Property & Casualty insurance premium in the United States is underwritten by an insurance company located in our state. That is an amazing figure. In short, the Katie School’s 2019 Economic Impact Study is very well done and a must read for anyone who participates in the insurance industry in Illinois.

The first step in the process is the creation of a compensation survey that is specially crafted for independent agents. The report resulting from the survey will provide an accurate representation of the salary and benefits standards for similarly situated agencies in your local area. In order to gather the necessary data, however, we need your assistance.

I ask that you please participate in the compensation survey at your earliest convenience. The sooner we gather the necessary information, the sooner we can start sharing the results with you. As an incentive, we will provide a free copy of the compensation report to every agency that completes the survey. Please go to www.iiaofil.org, where the survey link is prominently displayed. Please rest assured that the information you share with us will be kept safe and will not be shared with any third-party.

Thank you in advance for your collaboration on this important new initiative for the Illinois independent agent community.

As always, should you have any questions or comments please feel free to contact me or the association staff. The staff directory for the IIA of IL is located on the association’s website at www.iiaofil.org/About-Us. If you ever want to drop me a line please do not hesitate to send me an email at patick.muldowney@alliant.com. I look forward to hearing from you.

Thank you.

The IIA of IL understands that in today’s ever-changing industry competition is fierce, making it difficult for member agencies to rise above the competition. That is why the IIA of IL is continuing to invest in you, its members. Earlier this year, IIA of IL joined forces with six other Big “I” State Associations to launch IntellAgents, an analytics-driven organization that specializes in harnessing data in order to help independent agents make better, more strategic business decisions for their agencies.

IC

Patrick Muldowney - IIA of IL President - (312) 595-7192 - patrick.muldowney@alliant.com may 2019

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The Trusted Choice Brand: Part II ®

Trusted Choice® is the brand of members of the Independent Insurance Agents and Brokers of America.

Over the course of a few articles we explore how the Trusted Choice brand came to be, what it means and how it helps member agencies. This installment covers the concept of brand at the highest level, and how the Trusted Choice brand came to be.

The IIABA has provided a very useful tool to explain to a consumer why a Trusted Choice agency is the best option, the Trusted Choice Pledge of Performance.

Brand Promise

Key Points of the Pledge

In order for a brand to successfully differentiate the business that it represents, it must have a number of qualities. One of the most important of these is a brand promise that is delivered without fail.

Trusted Choice agents commitment to their customers include:

A brand promise is an extension of the brand itself, and it distinguishes what makes the brand tangible and distinguishable from other competitive offers. But to be effective, it can’t be an untruth or inconsistently delivered.

If each Starbucks offered a different menu, and the customer service of each shop was highly variable and they were often dirty, chances are that Starbucks wouldn’t be an easy first choice. The reason they are is because they consistently deliver on their brand promise of an excellent customer experience.

Or, think about a Volvo, a well known auto brand. Almost everyone you ask will be able to tell you that Volvo’s brand promise is safety.

Make no mistake, their brand promise dictates choices for the manufacturer. But it also allows the company to distinguish its vehicles from those from other auto companies.

The pledge offers some concrete guidelines to agency personnel on how they can deliver on the brand promise every day to customers and prospects.

• Identifying appropriate insurance products and companies • Thoroughly explaining coverages and options • Developing staff expertise to provide the best advice and counsel Each of these points makes the promise of a Trusted Choice real to insurance consumers, and helps differentiate all members of the IIABA. As insurance offerings morph, and new competitors try to muscle in to the industry, it is vital that we continue to differentiate why Trusted Choice agents are the best option.

When member agents deliver on the brand promise, we make the brand real to consumers and we gain new advocates who spread our message.

In the final portion of this series, we’ll explore the concept of brand awareness and how Trusted Choice increases the visibility of the Trusted Choice brand.

That position of ‘Volvo equals safety’ in the consumer’s mind is a differentiator that they own and a position from which it is very difficult to unseat them.

Delivering the Trusted Choice® Brand Promise One of the powerful attributes of the Trusted Choice brand is that one of the key brand promises of members of the IIABA is stated clearly in the brand itself. We are the Trusted Choice. But what does that mean, and how does a member make that brand promise real to their customers?

may 2019

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Technology april 2019

industry | INSIGHT

First Quarter 2019 Commercial Insurance Rates Up 2% Auto Continues to Lead Rate Increases The results from in person surveys and mathematical computations have been compiled for the first quarter of 2019. The composite rate increase for commercial lines is up 2 percent as compared to the same time period one year ago.

By MarketScout

By Account Size

Richard Kerr, CEO of MarketScout, outlined the first quarter rating environment by noting, “Transportation risks were up 4 percent. Auto continues to be assessed the most aggressive rate increase by line of coverage at plus 7 percent. Also, energy exposures are now starting to see more rate increases. Otherwise, the commercial market is stable.”

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.

Small Accounts Up to $25,000

Up 2.5%

Medium Accounts $25,001 – $250,000

Up 2%

Large Accounts $250,001 – $1 million

Up 1%

Jumbo Accounts Over $1 million

Up 1%

Premium Trends by Account Size First Quarter 2019

Source: MarketScout Corporation

2.5%

2%

1%

1%

A summary of the first quarter 2019 rates by coverage, industry class and account size is set forth below.

Small

By Coverage Class

Medium

Large

Jumbo

Commercial Property

Up 2.5%

Business Interruption

Up 2%

By Industry Class

BOP

Up 2%

Manufacturing

Up 2.5%

Inland Marine

Up 2%

Contracting

Up 2%

General Liability

Up 2%

Service

Up 2%

Umbrella/Excess

Up 2%

Habitational

Up 3%

Commercial Auto

Up 7%

Public Entity

Up 2%

Workers’ Compensation

Down 1%

Transportation

Up 4%

Professional Liability

Up 2%

Energy

Up 2.5%

D&O Liability

Up 1%

EPLI

Up 1%

Fiduciary

Up 1%

Crime

Up 1%

Surety

Flat %

Premium Trends by Industry Class First Quarter 2019

Source: MarketScout Corporation 4%

3% 2.5%

Premium Trends by Coverage Class

2.5% 2%

2%

Contracting

Service

2%

First Quarter 2019

Source: MarketScout Corporation 7%

Mfg 2.5% 2%

2%

2%

2%

2%

2% 1%

1%

1%

1% 0%

-1%

Property

Business Interruption

may 2019

BOP

Inland Marine

GL

Umb/ Excess

Auto

WC

PL

D&O

EPLI

Fiduciary

Crime

Surety

Habitational

Public Entity

Transporation

Energy

MarketScout, an insurance distribution and underwriting company headquartered in Dallas, compiles the Commercial and Personal Lines Market Barometers. For more information, please visit MarketScout.com. insight

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INSIGHT | industry

Illinois Supreme Court Rules Annuities Are Not Sec

By Beth Black On March 21, 2019, in Van Dyke v. Jesse White, the Illinois Supreme Court issued a long-awaited opinion relating to Illinois Securities Department (Securities Department) authority to regulate annuities under the Illinois Securities Law of 1953 (Act). The top Illinois court held that annuities do not fall under the Act’s definition of “security,” which judgment will shield insurance producers and financial advisors who sell annuities from the Security Department’s jurisdiction. However, it held those who “act as investment advisors” in connection with the sale of annuities still fall under the Securities Department’s purview.

Below is an examination of the Illinois Supreme Court’s analysis and holding that annuities do not fall under the Securities Department’s jurisdiction.

Background The Securities Department audited Richard Lee Van Dyke following complaints from the adult children of one of his deceased clients. Van Dyke was registered with the Securities Department as an investment advisor and licensed by the Illinois Department of Insurance as an insurance producer. The auditors reviewed Van Dyke’s insurance files, as opposed to his investment files, and subsequently alleged that he had defrauded 21 clients.

Specifically, the Securities Department claimed Van Dyke liquidated the clients’ indexed annuities and replaced them with other annuities, from which Van Dyke purportedly earned $312,278 in commissions while his clients paid $263,822 in surrender charges, penalties, and other fees.

The Securities Department initiated administrative proceedings alleging Van Dyke violated Section 130.853 of its administrative regulations, which prohibits investment advisors from effectuating “any transactions of purchase or sale that are excessive in size or frequency or unsuitable.”

The Securities Department also charged Van Dyke with violating Sections 12(A), (F), (G), (I), and (J) of the Act. These sections, other than 12(J), expressly implicate transactions involving “securities.” Section 12(J) makes it unlawful, generally, to employ any device, scheme, or artifice to defraud any client while acting as an investment advisor.

Van Dyke moved to dismiss, arguing the Securities Department had no jurisdiction over him because the Act expressly excludes annuities from the definition of a security and because he was not acting as an investment advisor at the time of the transactions. Moreover, during the Securities Department’s administrative action, the Department of Insurance filed a separate action based on the same annuity transactions. Without an admission of fault, Van Dyke settled the insurance action for $6,000.

Following an administrative hearing with the Securities Department, the secretary of state issued a final order finding Van Dyke committed fraud by offering unsuitable annuities. The secretary revoked Van Dyke’s investment

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advisory registration, permanently prohibited him from selling securities in Illinois, and fined him $300,000 plus costs of the investigation. The circuit court affirmed the administrative order, and Van Dyke appealed. On appeal, Van Dyke argued the Securities Department had no jurisdiction over the sale of indexed annuities because they are not “securities” under the Act and fall under the authority of the Department of Insurance, not the Securities Department.

The appellate court agreed but held that Van Dyke was nevertheless acting as an investment advisor and thus subject to the Securities Department’s jurisdiction under Section 12(J). At the same time, the appellate court found the Securities Department did not prove Van Dyke violated Section 12(J) in the sale of replacement annuities or perpetrated a fraud on his clients. Accordingly, it reversed the secretary of state’s final order.

The secretary of state appealed to the Illinois Supreme Court, arguing the sale of indexed annuities falls under the definition of a security under the Act, and that it put forth sufficient evidence Van Dyke committed violations of the Act. Van Dyke sought cross-relief, maintaining section 12(J) of the Act did not apply because he was acting as an insurance producer, not an investment advisor.

Annuities Are Not Considered “Securities” Under the Act The Illinois Supreme Court began its review by examining the language of the Act. Section 2.1 sets forth the definition of a “security” and provides, in relevant part: ‘Security’ means any note, treasury stock … investment contract, … face-amount certificate, … or, in general, any interest or instrument commonly known as a ‘security’.

Moreover, Section 2.14 defines “face amount certificate” to include “any form of annuity contract (other than an annuity contract issued by a life insurance company authorized to transact business in this State).” Thus, Sections 2.1 and 2.14 plainly establish that any form of an annuity contract issued by an authorized insurer is not included within the classification of “face-amount certificate” set forth in the definition of a “security.”

The Securities Department did not dispute this point but argued the appellate court erred in failing to consider whether the indexed annuities were securities because they constitute “investment contracts.” The Securities Department contended that “investment contracts” have been construed by federal courts interpreting the Securities Act of 1933 (Federal Securities Act) to include a contract whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or third party. According to the Securities Department, the indexed annuities at issue in the case were investment contacts.

may 2019

ecurities Under Illinois Securities Act The Illinois Supreme Court disagreed. It noted that while the statutory regime at issue is similar to the Federal Securities Act, it is “fundamentally different in several key respects.” In particular, unlike the Federal Securities Act, the Act includes “face-amount certificates” in the definition of a security. The Supreme Court found this to be significant because the definition of a “face-amount certificate” specifically excludes annuities issued by a life insurance company. Therefore, the Supreme Court held that the Securities Department’s reliance on the “catch-all” phrase of “investment contact” was improper because of the specific exclusion of annuities issued by a life insurance company. The express provisions excluding insurance annuities takes precedence over the generally descriptive term “investment contract.”

Section 12(J) provides that it is a violation for a person:

Additionally, the Illinois Supreme Court cited to the Illinois Insurance Code, which provides:

In response, Van Dyke argued that at the time of the transactions he was not acting as an investment advisor but rather as an insurance producer. The Illinois Supreme Court disagreed, finding that the manifest weight of the evidence established that Van Dyke provided investment advice when he recommended the purchase of various financial products, including securities and indexed annuities. Moreover, the record indicated Van Dyke identified himself as an investment adviser, and there was no evidence he informed his clients he was acting as an insurance producer under the Insurance Code when he sold the indexed annuities. Because Van Dyke was acting as an investment adviser, his conduct fell within the purview of section 12(J).

Notwithstanding any other provision of law, the Director [of Insurance] has sole authority to regulate the issuance and sale of variable contracts, and to promulgate such reasonable rules and regulations as may be appropriate to carry out the purposes and provisions of this Article.

(Emphasis in opinion). The Illinois Supreme Court found this provision applies to the regulation of companies that issue variable contracts as well as sales to individual buyers. Because regulation of the insurance industry falls under control of the states, there is no corollary to the Federal Securities Act. Furthermore, because “the Department of Insurance regulates both traditional and variable annuities as insurance products, it would be incongruous for indexed annuities - a hybrid of the two - to be subject to regulation under the Act.” The Illinois Supreme Court ultimately held that “our statutory regime demonstrates the legislature’s intent that annuity contracts issued by authorized insurers are insurance products and not securities because they fall within the exclusion from face amount certificates and are not investment contracts under section 2.1.” As a result, the purchase of the indexed annuities at issue could not form the basis of a violation of Sections 12(A), (F), (G), or (I) of the Act, which expressly require transactions of securities.

When acting as an investment adviser, … by any means or instrumentality, directly or indirectly: (1) To employ any device, scheme or artifice to defraud any client or prospective client.

Section 12(J) contains no reference to or requirement for a sale of a security in connection with the prohibited conduct. Moreover, this section is “virtually identical” to the antifraud provisions found in Section 206 of the federal Investment Advisers Act of 1940. Federal courts have also found Section 206 does not require that the challenged transaction involve a security to prove a violation. As such, the Supreme Court held all that is required under the Act is that Van Dyke was “acting as an investment advisor.”

The Illinois Supreme Court then engaged in a case-specific analysis to determine whether Van Dyke engaged in a device, scheme, or artifice to defraud his clients. The court found that the Securities Department’s evidence and expert testimony failed to establish Van Dyke actually violated the Act or perpetrated a fraud on his clients. Accordingly, the Supreme Court held the appellate court properly reversed the secretary of state’s final order against Van Dyke.

Beth Black is a shareholder at Greenberg Traurig, LLP and focuses her practice on a variety of financial services industry litigation and regulatory matters, as well as general commercial litigation. She can be reached at blackb@gtlaw.com.

Section 12(J) Applies to Investment Advisors Who Sell Annuities Although the Illinois Supreme Court found indexed annuities do not qualify as securities, it did find that the Securities Department has the authority to bring an administrative action under Section 12(J) of the Act when annuities are sold by investment advisors.

may 2019

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INSIGHT | industry

Illinois Senate Bill 1596 - Employers’ Civil Liability

By Ali A. Ayanaw On November 4, 2015, the Illinois Supreme Court reversed the decision of the Illinois Appellate Court First District in Folta v. Ferro Engineering. The supreme court held that the Workers’ Compensation Act and the Workers’ Occupational Diseases Act (Acts) together provide the exclusive remedy for an employee’s injury arising out of and in the course of his or her employment, even when the employee first learns of the injury after the expiration of the applicable statutes of repose. Folta v. Ferro Eng’g, 2015 IL 118070, ¶ 52.

In Folta, the plaintiff’s decedent was allegedly exposed to asbestos while working at a plant owned by the defendant, Ferro Engineering, from 1966 to 1970. Forty-one years after his last date of employment at Ferro, Mr. Folta was diagnosed with peritoneal mesothelioma. The supreme court explained, “the fact that through no fault of the employee’s own, the right to seek recovery under the acts was extinguished before the claim accrued because of the statute of repose does not mean that the acts have no application or that Folta was then free to bring a wrongful death action in circuit court.” The supreme court acknowledged that although the exclusive remedy provisions of the Acts may render harsh results in asbestos exposure cases, “[i]t is the province of the legislature to draw the appropriate balance. It is not [the courts’] role to inject a compromise but, rather, to interpret the acts as written.” Id. at ¶ 43. More than three years after the Folta decision, the Illinois General Assembly took steps to overturn this decision.

On March 14, 2019, the Illinois House of Representatives passed Senate Bill 1596, which was passed by the Illinois Senate on March 6, 2019. The bill now awaits Governor Pritzker’s signature.

Senate Bill 1596 amends both the Illinois Workers’ Compensation Act and the Workers’ Occupational Diseases Act to allow an employee or an employee’s heirs to bring a civil action for claims that would have been barred by the applicable statute of repose. Specifically, Senate Bill 1596, in pertinent part, states: Subsection (a) of Section 5 and Section 11 do not apply to any injury or death sustained by an employee as to which the recovery of compensation benefits under this Act would be precluded due to the operation of any period of repose or repose provision. As to any such injury or death, the employee, the employee’s heirs, and any person having standing under the law to bring a civil action at law, including an action for wrongful death and an action pursuant to Section 27-6 of the Probate Act of 1975, has the nonwaivable right to bring such an action against any employer or employers.

Subsection (a) of Section 5 of the Workers’ Compensation Act and Section 11 of the Workers’ Occupational Diseases Act limit the remedies available to an employee to those specifically prescribed by the Acts. To contravene limitations imposed by Subsection (a) of Section 5 and 12

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Section 11, Senate Bill 1596 gives employees and their heirs a nonwaivable right to bring a civil action for claims that would otherwise be precluded by the Acts’ respective statutes of repose. Thus, under these new provisions it is possible that latent disease claims, including those related to asbestos exposure, against Illinois employers, now have perpetual existence, with only limited exceptions.

Understandably, the possible future interpretation of Senate Bill 1596, which takes effect immediately if signed

by Governor Pritzker, has caused a great deal of anxiety for Illinois employers, their insurers, and their attorneys.

Employers should be concerned about an array of issues, including, but not limited to, the potential for the courts to retroactively apply Senate Bill 1596 and the impact it could have on claims that are not time barred. Fortunately for employers, Illinois precedent may offer some guidance and limit the scope of the “unknown.”

Can Senate Bill 1596 be applied retroactively to revive claims that were time barred before its effective date?

Perhaps the greatest concern arising out of Senate Bill 1596 for employers is the uncertainty as to how the courts will apply these provisions if they become law. Specifically, would employees with claims that were time barred before the law’s effective date now be allowed to bring these claims in civil court? Fortunately for employers, it appears that Illinois law answers this question in the negative.

To decide whether a new statutory amendment applies retroactively, the Illinois Supreme Court determines whether the legislature has prescribed the temporal reach of the new amendment. Commonwealth Edison Co. v. Will Cnty. Collector, 196 Ill. 2d 27, 38 (2001). Senate Bill 1596 does not indicate whether it is to be applied retroactively.

In such cases, the Statute on Statutes is the default guide for the temporal reach of a new statute. Allegis Realty Investors v. Novak, 223 Ill. 2d 318, 331-332 (2006). In pertinent part, section 4 of the Statute on Statutes provides: No new law shall be construed to repeal a former law, whether such former law is expressly repealed or not, as to any . . . right accrued, or claim arising under the former law, or in any way whatever to affect any such offense or act so committed or done, or any penalty, forfeiture or punishment so incurred, or any right accrued, or claim arising before the new law takes effect, save only that the proceedings thereafter shall conform, so far as practicable, to the laws in force at the time of such proceeding.

5 ILCS 70/4.

Section 4 of the Statute on Statutes permits the retroactive application of “procedural or remedial provisions,” but explicitly “prohibits retroactive application of statutory changes that affect substantive provisions or vested rights.”

People v. Glisson, 202 Ill. 2d 499, 509 (2002) (emphasis added). It is well established in Illinois that the “legislature may 2019

ty to Employees lacks the power to reach back and breathe life into a timebarred claim.” Sepmeyer v. Holman, 162 Ill. 2d 249, 254 (1994). This long standing principle is centered upon the belief that a defendant has a constitutionally protected right not to be sued after a plaintiff’s claim becomes barred by the applicable statute. See Bd. of Educ. of Normal Sch. Dist. v. Blodgett, 155 Ill. 441, 446 (1895) (holding “when the bar of a statute of limitations has become complete by the running of the full statutory period, the right to plead the statute as a defense is a vested right, which cannot be destroyed by legislation . . . .”) See also M.E.H. v. L.H., 177 Ill. 2d 207, 218 (1997) (finding “a defense based on the expiration of a limitations period is a vested right protected by the constitution and beyond legislative interference.”)

In applying the parameters established by section 4 of the Statute on Statutes to an employer impacted by Senate Bill 1956, the date the employer accrued a “vested right” must be determined.

Pursuant to Illinois law, the expiration of a prescribed statutory period for a cause of action creates a vested right protected by the State’s constitution. See M.E.H., 177 Ill. 2d at 218; Sepmeyer, 162 Ill. 2d at 255; and Blodgett, 155 Ill. at 446.

Therefore, in Illinois, any claim brought under either the Workers’ Compensation Act or Workers’ Occupational Diseases Act that was time barred before Senate Bill 1596’s effective date will continue to be time barred, because the employer has accrued a vested right to assert this statute of repose defense.

Does Senate Bill 1596 impact Workers’ Compensation Act and Occupational Diseases Act claims that are not time barred?

From a plain reading of Senate Bill 1596, it is intended to affect only time-barred claims. Senate Bill 1596 directs that “Subsection (a) of Section 5 and Section 11 do not apply to any injury or death sustained by an employee as to which the recovery of compensation benefits under this Act would be precluded due to the operation of any period of repose or repose provision.” It does not contain any language that would alter any other provision of the either act.

Further, during the final House debate of the bill on March 14, 2019, one of the sponsors of Senate Bill 1596, Rep. Jay Hoffman, clarified that this bill would only apply to employees diagnosed with an occupational injury or disease after the 25-year statute of repose and does not otherwise impact the limitations may 2019

prescribed in the Workers’ Compensation Act or the Workers’ Occupational Diseases Act. Alemayehu (Ali) Ayanaw is an associate in the Edwardsville office of HeplerBroom LLC. Ayanaw focuses his practice on trials involving complex business litigation matters, including asbestos, toxic torts, premises liability, and product liability. He is a 2012 graduate of Washington University School of Law. Ayanaw can be reached at AlemayehuA.Ayanaw@heplerbroom.com.

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insight

13

Building a

SUCCESSFUL CULTUR

By John Chapin

You just hired the perfect person: great work ethic, positive and upbeat, they show up early, leave late, take ten minutes of a fifteen-minute break, and do more than expected and more than you ask for. Now let’s take that person and put them into an environment where people are negative, aren’t held accountable, take three days off for a hang-nail, show up at 8:05 then spend 45 minutes “getting ready” for their day, start preparing to leave at 3:30 and leave at 5:00 like there’s a fire drill. What happens to that perfect hire? One of two things: they either become just like everyone else after about a month, or they leave.

Whatever your culture is, it has a substantial impact on performance. There is significant peer pressure to conform to the culture, be it good or bad. This peer pressure is one of the four main motivators for people who belong to any group. Positive peer pressure is what took my grades from Cs in the public high school to As and Bs in the private high school. It’s also what ensured that I made over 200 phone calls per day in my first job as a stock broker. If you’re a great team or organization with a great culture, fantastic. Unfortunately, most organizations have negative cultures, or at least elements of them.

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Features of Great Cultures Feature #1: Great Leadership

Culture is top down; it begins at the top and flows down through the entire organization. Whatever the leadership team eats, breathes, walks and talks related to culture, will become the culture. As a leader, you don’t get what you want, you get what you tolerate and allow. And what you tolerate and allow you tacitly condone and get more of. If you allow people to miss their numbers year after year, when it’s evident they aren’t making the calls and doing the necessary work, you’ll get more of that.

If you allow negativity in the workplace and don’t hold people accountable, you’ll get more negativity and more people not doing their job. On the flip side, if you lead by example, walk your talk, believe in people more than they believe in themselves, empower them, listen to them, give them all necessary tools and resources, and hold them to a higher standard, you’ll get more of that.

may 2019

Feature #2: Rules and Decrees

The culture in an organization is how people treat other people, how they treat work, and how they treat the work environment. Great cultures have rules and decrees regarding these three items.

Written rules and decrees. Here are a few examples: • Everyone is expected to show up on time, work until the end of the day, finish what they start, be honest, have integrity, and put in a full day’s work for a full day’s pay.

• Everyone will be held to the highest professional and ethical standards.

There is no place in the workplace for negativity or unprofessionalism. You will be respectful to all employees and clients. Gossip, talking, and otherwise communicating, behind someone’s back won’t be tolerated.

• We are a great organization with a great product. We take better care of our clients than the competition because we care more.

RE

Your rules and decrees, totaling about eight to fifteen in number, should be framed and prominently posted in several highly-visible areas in the workplace on a document titled: Rules and Decrees of the Workplace. Prospective employees should also receive a copy of these during the interview process and you should have a conversation with them about how they feel about these. By the way, full acceptance of the rules and decrees is a non-negotiable prerequisite to being hired.

Feature #3: Everyone On-Board, All-In Commitment

When Malcolm Butler was limited to a few special teams plays in Super Bowl 52, many people said that move cost the Patriots the Super Bowl. Maybe, and my contention is that, had they let him play and won Super Bowl 52, the Patriots would not have been back to play in Super Bowl 53. No one who breaks the rules gets a pass. If this is allowed even once, people inside the organization start to question the integrity of the culture, and the culture starts to crumble. When you’re more interested in winning, or making a sale, than living by your values, it’s the beginning of the end. Again, no one gets a pass on the rules, not even your top agent. This doesn’t mean people don’t get a mulligan. You can allow a mistake or two, but address it immediately, and keep the leash short. No chronic offenders who are making blatant and/or repetitive mistakes. While an occasional mistake may be inevitable, carelessness, ignorance, and apathy aren’t.

may 2019

Feature #4: Culture is a Living, Breathing Organism

A great culture can’t simply be written out, placed on the wall, and left to die. It needs to be kept alive and well by visiting it often, talking about it, and reviewing it. Repetition is important, because like any new habit, it will take time to imbed the culture into the consciousness and subconsciousness of everyone in the organization.

Once it’s locked in and habitually followed, discussing the culture keeps it on everyone’s radar screens and ensures it is remembered and adhered to. Also, it may be necessary to tweak some rules or decrees from time to time. Though many rules and decrees, like the examples I gave, aren’t likely to change, there may be times when changes in people, technology, and other unforeseen future events, make an edit necessary.

Finally, you build a great sales culture by building a great overall company culture. As part of the organization, the sales department is included in all rules and decrees.

Everyone, from leadership to the mailroom, must be on the same page when it comes to culture. So, while the sales department may have some additional rules and decrees related to activity, quotas, and other items, building an all-in, solid organizational culture is what will ensure the success of the sales culture.

John Chapin is a motivational sales speaker and trainer with over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: “Sales Encyclopedia.” He can be reached at johnchapin@completeselling.com.

Whatever your culture is, it has a substantial impact on performance. There is significant peer pressure to conform to the culture, be it good or bad. This peer pressure is one of the four main motivators for people who belong to any group.

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15

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Fewer E&O Claims?

Consistent Agency Processes?

Sell More Insurance?

Checklists check all the boxes!

In most states, the duty of a typical independent insurance agent or broker – one who has no ‘special relationship’ with the client - is simply to use reasonable care in procuring the insurance coverage requested by the customer, or if such coverage cannot be obtained, to so advise the customer promptly. The problem is, your customer may be unaware that certain coverages are not included in a standard policy, but instead must be added by endorsement or a separate policy. State law may not require you to recommend those additional coverages, but it may make sense to at least offer them to your customer.

One proven way to ensure that available coverages and higher limits are offered is to use a checklist. A good checklist will include coverage choices as well as optional coverages a customer might want to accept or reject. Does the commercial property customer want basic, broad or special form coverage? ACV or replacement cost? Do they want business income coverage? Does the general liability customer have any additional insureds to include?

Do they want employment practices coverage? Workers compensation? An umbrella?

For example, many homeowner’s insurance customers may not know that flood coverage is not included in a typical homeowner’s policy. While a flood policy may not be appropriate for many such customers, a checklist that ensures that every customer learns that flood coverage is not included in a homeowner’s policy and can be purchased separately gives the customer an opportunity to request or reject such a policy.

Experienced agents or brokers ask these questions and more when working with new customers, but what if your employee forgets one or more of these topics? Do you and your employees ask each of these questions again at renewal since customers’ needs change over time? And even if you do, is there documentation of the discussion?

A checklist documents that the agent asked each of these questions (and others), particularly when it includes a signature line at the bottom for the customer to confirm they have accepted and rejected the coverages as noted on the checklist.

As with so many other recommended agency procedures, consistency is essential. Agency checklists are a great loss prevention tool – for you and your client -- when used consistently. Conversely, failing to use one as a routine part of an agency’s procedures could be a problem when defending an E&O claim. Checklists probably do not create a higher duty than the general duty to procure the coverage requested, but failing to use the agency’s standard checklist allows an argument to be made that the agency failed to follow its own procedures. So long as checklists are used consistently, it is likely that they will be very helpful in defending a claim.

may 2019

Should agencies develop their own checklists or purchase them? Purchasing industry standard checklists is advisable to ensure they are comprehensive and up-to-date. In fact, many agency management systems offer checklists as part of their system. That’s helpful, but their value is limited unless each agency employee is using the same checklist and doing so consistently.

In addition to reducing E&O claims (and helping to defend claims that do arise), checklists are a great way to sell more insurance, providing additional revenue for the agency while enhancing your customer’s protection! Granted, a few customers are only concerned with minimizing premium and will never even consider additional coverages or limits. (As you read this, several names and faces are popping into your head.) So, should you forego the checklist with them? On the contrary: it is with those customers more than any other that you should go through the checklist every time, because those clients are the most likely to suffer an un(der)insured loss and blame it on you.

And you may be surprised: once in a while common sense prevails and even the most miserly of clients chooses to buy additional coverage.

If an agency does have an E&O claim and is insured under a Swiss Re Corporate Solutions policy, using checklists may provide another financial benefit. Under the Deductible Reduction feature of the policy, if an insured agency generates and maintains contemporaneous written documentation in the agency file of a customer’s refusal to accept any type of coverage or limit offered by the agency, and there is subsequently a claim alleging the failure to secure such, 100% of the agency’s deductible for that claim will be waived up to a maximum of $25,000, or until dismissal of the allegations, whichever is first.

Agencies that consistently use coverage checklists reduce their E&O exposure by ensuring that at least a brief discussion occurs about available coverages and higher limits, and by providing highly credible documentation of the discussion if a dispute occurs later. Checklists also increase cross selling opportunities and lead to additional sales of policies or endorsements the customers may not have thought about.

When considering procedures that can benefit an agency in a variety of ways, checklists check all the boxes!

This article was provided by SwissRe and 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. insight

17

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19 Ways to

Mess Up On the Job Without Even Knowing It

By John Graham There’s everything right about looking out for yourself and your career. Right now, with more jobs than people to fill them, it’s easier than ever.

One month in mid-2018, job postings exceeded the number of unemployed by an eye-popping 659,000. With this happening, it’s no surprise that 3.6 million workers voluntarily quit their jobs in the first seven months of 2018.

This 2.4% quit rate was the highest since April 2001.

No one can miss the message: more vacancies and not enough takers to fill them equals better opportunities and higher pay.

But not so fast. All this may be true in some situations but not everywhere - and not forever. If you believe jobs are “temporary” and the best is yet to be, you can create an easy-to-spot trail of behaviors that can put a cap on your career. In this environment, here are some of the ways to mess up on the job without even knowing it: 1. Take advantage of your team. To do this, make it clear from the get-go that you’re a “team player.” This is what everyone wants to hear today, so keep repeating it. Now that you’ve set the stage, make sure everyone knows you have too much on your plate to support the team.

2. Cover up your mistakes. To make this work, act totally innocent. Rehearse your story so you can act shocked if someone calls you on an error. Never crack; never confess.

Once you get it down pat, you’re ready for the next time— and the next.

3. Always agree but don’t perform. When asked to do something, act interested and even excited, but never get around to it. After you’ve done this several times, the word will get around and you’ll be left alone.

4. Position yourself as the exception. You’ve figured it out and thought it through. There are good reasons why what applies to everyone in your group doesn’t apply to you.

Don’t bother telling others about it. They’ve figured it out on their own. may 2019

5. Do only so much and nothing more. You’re not going to be around long; you’re already looking for your next gig.

So, why knock yourself out? Just ignore the pressure to do more. Act busy, but take it easy on yourself.

6. Make it known that you’re meant for better things. Sure, you do your work, but you also talk about how great it was at your last job or how good your friends have it where they work.

7. Disappear when there’s a crisis. Coming in early or staying late when it’s needed doesn’t work for you. Always have a reason ready why you can’t alter your regular schedule time or, better yet, even come in late or leave early.

8. Pass the blame around. The directions were incorrect.

Someone gave you inaccurate information, misled you, waited to the last minute to notify you, or had it in for you on and on it goes. There’s plenty of blame to go around.

9. See yourself as a silo of one. You’re an island, entire of yourself, to paraphrase John Donne. “It’s blindness, which causes people to do stupid things,” states Gillian Tett in The Silo Effect.

10. Behave inconsistently. This is the most useful on-thejob strategy for hiding in plain sight. One time you’re up and the next time you’re down. Friendly, and then aloof.

You’re unpredictable; no one knows how you’re going to react. It doesn’t take long before they stop counting on you.

11. They can’t do without you. You’ve been in the job for a while and you know the ropes, so you’re feeling good about yourself. You talk more openly about coworkers and play a little loose with the rules. While you believe your job is secure, others see a train wreck coming. continued...

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21

12. Get upset if you’re not getting a regular dose of praise.

In fact, you’ve come to expect it. It’s almost an addiction.

When you don’t it, you’re quick to complain that you’re not appreciated.

17. Always be ready to come up with a complaint. It’s one thing after another. We can count on you to make a big deal out of almost anything. Then, when something comes along that may be worthy of a complaint, we ignore you.

13. Ask for help but never offer it. You can’t understand why your coworkers are reluctant to help you. It isn’t because they don’t like you. With you, helping is a oneway street.

18. Don’t learn new skills or expand your knowledge base.

You don’t seem to recognize that no one arrives on a job perfectly prepared. It takes time to learn the ropes and then continue learning to become and remain highly productive.

14. Make it a point to play it safe. Whether it’s because you want to avoid criticism or you just can’t be bothered, never take a chance and step outside of your comfort zone. Everyone can see what you do, but not what you’re capable of doing.

19. Bluff your way. If you haven’t found a way to successfully mess up on the job, there’s always the other option: faking it. Claim to know something, you don’t.

Make up a story about an accomplishment or even awards or commendations. In other words, bluff your way. It will work - until it doesn’t.

15. The rules don’t apply to you. When the rules benefit you, you make sure everyone knows about it. When they don’t, you come up with way to make it clear that you are the exception.

16. Overestimate your capabilities. Hey, you’re not alone on this one. Most of us tend to exaggerate our skills, capabilities, and our performance, but some do it more than others and they’re surprised when they’re no longer needed.

There may be other ways to mess up on the job that will jeopardize your future, but these are a good start.

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 or johnrgraham.com.

© 2019 Society Insurance

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Our TopChoice insurance program for restaurants was developed with restaurant owners more than 40 years ago to be the most comprehensive and reliable protection available. We’ve stayed on top of industry trends ever since and tailor our coverage to the unique business needs of each establishment we insure. With Society, your restaurant customers get protection they can count on, delivered exactly as expected. And as you know, that makes all the difference.

If you specialize in restaurants and are interested in an agency appointment, give us a call at 1-888-5-SOCIETY or visit societyinsurance.com.

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1/16/19 3:59 PM

e INSIGHT -

online journal at www.iiaofil.org/Resources/Insight

M AY 20 19

INSIGH T

Insuran

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2019 e Industry ImpacEt conomic Study

A Green Shift

2019 Ec o

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U.S. life insurers’ attitudes toward marijuana are evolving, with some carriers reevaluating their underwriting protocols. But the majority remain conservative and charge smoker rates.

- AM Best

Read more in this month’s e-Insight. may 2019

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ce Indu Impact str Stud

Insurance Industry

2019 Economic Impact Study Employment - Revenue - Investment

The Beneficial Role of the Insurance Industry in Illinois

By Phil Lackman

The debate over Illinois’ economy, tax burden and fiscal outlook has been going on since the great recession.

Population loss, outmigration, unfunded pension liabilities, too many units of local government and the correlating property taxes to fund them and now, Governor Pritzker’s proposal for a graduated or progressive state income tax structure are all central to the debate. Illinois’ economic fabric has changed as manufacturing jobs have migrated to other states, agriculture has witnessed a significant reduction in the number of family farms, and financial institutions and service employers continue to merge and consolidate. Some of the causes for these changes can be directly attributable to poor decisions and lack of foresight by state and local elected officials, others are the normal evolution of a capitalist economy.

Fortunately, the insurance industry has and continues to remain one of the few constants in Illinois’ economic equation. For the past 15 years IIA of IL, in collaboration with the Illinois Insurance Association, the National

Association of Insurance & Financial Advisors, the Illinois State Association of Health Underwriters and the Illinois Association of Mutual Insurance Companies have published our Economic Impact Study detailing the enormous contributions the insurance industry provides to Illinois, our government and our citizens. Despite Illinois’ challenges, insurance companies, agents and brokers and the hundreds of ancillary businesses continue to be a foundation which Illinois can count on.

We continually use this data to remind political leaders at the state capitol of our contributions and of the negative consequences of ill-conceived regulatory schemes.

Please take a moment to read the study, be proud of your contributions and remind your local officials of our collective impact!

Phil Lackman is the Chief Executive Officer for the IIA of IL. He can be reached at plackman@iiaofil.org or (217) 321-3005.

The insurance industry favorably affects the local economy through both direct and indirect economic activity. Typical direct contributions expected by any business include contribution to the local economy’s GDP, employment of workers, and payment of corporate taxes.

Insurance also has some unique direct economic impacts both through its role as protector of economic loss, and through its role as institutional investor in government and business.

Individuals and businesses who are insured against a variety of potential losses are then enabled to engage in activities that produce or preserve wealth, create jobs, and foster investment, innovation and entrepreneurship. As individuals and businesses have greater security to protect themselves from loss they need to hold less capital which means people and businesses have more to consume and invest in things like human capital and technology, making state economies more competitive and robust.

About this Study: This study was conducted by the Katie School of Insurance at Illinois State University and was sponsored by the Independent Insurance Agents of Illinois, the Illinois Insurance Association and the National Association of Insurance and Financial Advisors Illinois. Copies of this study, along with all supporting documentation can be found at www.katieschoolstudies.org. may 2019

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2019 Economic Impact Study The insurance industry in the U.S. employs over 3 million people. In

2017, 155,757 people were employed directly by the insurance industry in Illinois. This is

more than any of the surrounding states and in fact is more than twice the employment of Missouri, Indiana, or Iowa. These people work in various occupations in the insurance industry, in organizations ranging in size from large insurance companies to single person insurance agencies.

IL GROSS DOMESTIC PRODUCT

BY INDUSTRY IN 2016

Real Estate

Misc.

Admin Services

90382.7

63200.6

38822.0

11.25%

4.82%

26

insight

63408.1

39545.2

Insurance Carriers

Monetary Authorities

4.83%

3.41%

IL 2

Illinois Insurers

Investment Bonds 2017

Illinois insurers made $15.9 nearly $463 billion in investments including Billion billion in municipal $178.4 $93.8 bonds used to finance wide array of public Billion aprojects such as schools, roads, bridges, mass $268.6 transit initiatives and Billion health care facilities. $462.8 Billion

Health Life P&C Total

The Illinois insurance industry is exceptionally robust and competitive.

As of 2017, there were 191 property and casualty insurers, 38 life insurers, and 43 health insurers domiciled in Illinois.

In fact, one out of every five dollars of property and casualty insurance premium in the U.S. is underwritten

by Illinois insurance companies.

3.00%

IL NY CT OH TX

Overall

P&C

Life

Health

2

7

2

3

3

3

1

32

4

2

8

7

5

6

9

6

1

1

14

2

RANKING OF STATES INSURANCE PREMIUMS WRITTEN This graph illustrates the extent to which the Illinois insurance industry dominates the property and casualty (P&C) industry writing $113 billion of the total $558.4 billion national P&C sector. This represents a remarkable 20.8 percent of the entire P&C insurance sector! may 2019

8.38%

Percent Projected 2026

22.55%

1.97%

14.49%

28.39%

20% 10% 0%

IL Employment 2016

14,220 Insurance Sales Agent

1,090 Actuaries

11,930 Customer Service Representatives

3,390 Management Analysts

1,300 Software Developers

The industry is a major contributor to charitable causes. The Insurance Industry Charitable Foundation (IICF) and McKinsey and Co. have said that the insurance industry increased charitable giving by an average of 15 percent per year since 2011 for a total of $575 million in 2015.

As of November, 2017, the insurance industry contributed over $28.7 million in local community grants.

What is perhaps most striking is that the U.S. economy as a whole is a beneficiary of insurers in Illinois, which are significantly non-life property and casualty losses. In 2017, HALF A BILLION IN STATE REVENUE The Illinois insurance industry contributes to the state of Illinois revenues in several areas. This chart shows the breakdown of sources of revenue for the state of Illinois in 2018.

Privilege Tax - Insurance Retaliatory Tax Surplus Line Tax Insurance Insurance Producer Licenses Fire Marshal Tax Ind Comm Oper Fund Surcharge Miscellaneous 1/2% Comp Pd Employer Independent Procurement Tax Insurance User Fees Interest on Late Filing Fees

may 2019

Illinois property and casualty insurance paid out over $69 billion to policyholders in the U.S for losses to homes, autos, and businesses. That

represents 21 percent of all property and casualty claims made in the entire country.

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The Most Unique Conference of the Year

By Rachel Romines

The IIA of IL Young Agents Committee hosted a very successful EDGE Conference April 3-4 at the Par-A-Dice Hotel in East Peoria. This marked the sixth year for the Conference.

We would not be able to hold this event without the generosity of our advertisers, sponsors, and exhibitors.

This conference is unlike any other in the industry. With the focus on professional development gained through unique programming, it was easy to see why the EDGE Conference is still one of the most highly regarded professional development programs for insurance professionals in the Midwest.

Advertisers Central Illinois Association of Health Underwriters Larry Gordon Agency, Inc.

The Young Agents Committee packed a punch this year with speakers coming in from all over the country. Traci Brown kicked off the first day with teaching attendees how to read body language with “Body Language Confidential.”

After spending time with 17 exhibitors over lunch, the group came back together to listen to Matt O’Neill speak on leveraging LinkedIn. Traci came back to the stage to finish the first day with “Liar, Liar, Pants on Fire.” The day broke with a reception with the exhibitors, and then, back by popular demand, Familiar Feud. Our take on this popular tv game show gave all attendees a chance to qualify to play, making this a great ice-breaker for the evening.

Day two started with “The Buffalo Mindset.” Pete Honsberger got the group up and going first thing in the morning, showing them how to run head-on into storms, face challenges directly, solve issues and attack opportunities. Sydney Roe, Director of Brand Engagement for TrustedChoice.com ended the conference with showing attendees just how powerful Facebook marketing can be.

the l l a t u Check o rom the f photos nference o EDGE C ebook! on Fac 28

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Thank you to:

Sponsors 1-800-Water Damage/A BELFOR Company Arlington/Roe Donald Gaddis Co IMT Insurance Mercury Insurance Group Universal Property & Casualty Insurance Company W.A. Schickedanz/Interstate Risk Placement Exhibitors Berkshire Hathaway GUARD Insurance Companies Bliss McKnight Executive & Global Hemphill Financial Services/LegalShield Illinois Mutual Larry Gordon Agency, Inc. Markel Specialty Commercial Mercury Insurance Group MeridianCare/Caidan Management Co. Openly Penn Mutual - Great Lakes Region PURE Insurance Risk Placement Services Safelite AutoGlass TAPCO Underwriters, Inc Universal Property & Casualty Insurance Company Wright Flood Insurance Planning for the 2020 EDGE Conference will start soon.

If you have any suggestions for next year’s conference, contact Rachel Romines at rromines@iiaofil.org.

Stay up to date on all Illinois Young Agents hosted events & activities at www.ILYoungAgents.com.

Rachel Romines is the Digital Communications Coordinator/Web Administrator and Young Agents Liaison for the IIA of IL. She can be reached at rromines@iiaofil.org or (217) 321-3024.

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Statewide

Days of Gi ing Hosted by Illinois Young Agents

June 1 -8 , 2019

What are you doing June 1-8?

Before you answer this question, I challenge you to address the following six: 1. Could you do a better job of defining your corporate identity?

2. Would you benefit from better public relations?

3. What would help enhance your employee relations?

4. Do you need to work on your team building?

5. How is your employee retention?

6. Do you need to increase your networking opportunities?

And, if you are now pondering how these seven questions tie into each other, the answer is simple, planning to participate in the IIA Days of Giving on June 1-8 can have a huge impact on and be beneficial for not only your agency, but for your community as well. Studies show that philanthropic efforts undertaken by businesses help reach a whole new audience, foster a positive public image and boost employee morale.

Community service has long been a concept which independent agents have embraced. We have always

1

By Rachel Romines known that our members represent some of the most charitable individuals in their respective communities.

We knew even before we commissioned the 2019 Economic Impact Study which unearthed the following impressive fact: “The insurance industry increased charitable giving by an average of 15 perfect per year since 2011 for a total of $575 million in 2015. As of November, 2017, the insurance industry contributed over $28.7 million in local community grants.”

This is the premise on which #IIADaysofGiving was built.

The goal of Statewide Days of Giving is to encourage as many individuals throughout the state as possible to devote June 1-8 to donating time, talent and treasures for the betterment of their communities. We thought about how cool it would be to have our members come together to collectively harness our charitable efforts and show how we can make a difference.

We have made it as easy as possible. There is no project too small to be included in our overall Days of Giving totals. Check out all the information on the Day of Giving website. You will find a variety of event ideas, a tool kit complete with press releases and social media messaging, logos and more.

Join us as we make an impact in Illinois.

HOW IT WORKS

DECIDE ON YOUR EVENT OR FUNDRAISER

First decide how you will participate. Are you hosting an event? Holding an inner-office fundraiser? Donating your time or talent? Or making a donation?

US KNOW WHAT YOU 2 LET ARE DOING

Once you decide how you are giving, let us know!

We will post your event on the website so that others in your area can participate with you, if you’d like. Use the form on the website to tell us your plans.

3 DURING EVENT

Take lots of pictures! Post them on Facebook, Twitter, & Instagram.

You can also send pictures directly to rromines@iiaofil.org.

4 AFTER EVENT

The Statewide Days of Giving team will be compiling all the results from the day. We want to know every detail of your event or fundraiser!

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may 2019

What Are Your Summer Plans?

Make this BRAND NEW FAMILY-FRIENDLY CONFERENCE a part of your summer.

July 14-16 • Delavan, WI Discounted Room Rate

Enjoy Resort Amenities

Family Meals

Continuing Education

(save up to $130 per night)

(reception, breakfast, social event)

(golf, spa, boat/sport rentals, pools & more)

(receive up to six hours)

Get all the details at

ILYoungAgents.com may 2019

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INSIGHT | associate news Thank you to our Associate Members.

Diamond Level Members

Platinum Level Progressive

Gold Level AAA Insurance Arlington/Roe Blue Cross/Blue Shield of IL Surplus Line Association of Illinois

Silver Level Grinnell Mutual Reinsurance Company Imperial PFS IMT Insurance

Nationwide West Bend Mutual Insurance Co.

Bronze Level A. J. Wayne & Associates AMERISAFE Aon Programs Atlantic Specialty Lines Auto-Owners Insurance Co. Berkshire Hathaway Guard Insurance Companies Burns & Wilcox, Ltd. Chicagoland Carstar Columbia Insurance Group Continental Western Group Donald Gaddis Company, Inc. Donegal Insurance Group Encompass Insurance Erie Insurance Group Foremost Insurance Group Forreston Mutual Insurance Company Frankenmuth Insurance Grange Insurance Illinois Public Risk Fund Indiana Farmers Insurance Insurance Program Managers Group J C Restoration J M Wilson Kemper Keystone Insurance Group, Inc.

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KPA, LLC dba Succeed/KPA Larry Gordon Agency Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company Maximum Independent Brokerage, LLC Mercury Insurance Group MetLife Auto & Home Midwest Insurance Company Motorists Insurance Group Nat Gen Premier NHRMA Mutual Workers’ Compensation Previsor Insurance ProAg Management Inc PuroClean ServiceMaster DSI Society Insurance Transcom General Agency Travelers UIG - The Agent Agency United Fire Group Universal Property & Casualty Utica National Insurance Group W. A. Schickedanz Agency, Inc./Interstate Risk Placement Western National Insurance Westfield

may 2019

iia of il news | INSIGHT

Education Classes may

1 1 7 8 14 15 21 21 22 22 23 28

CISR - Commercial Casualty 2 Springfield CISR - Commercial Property Orland Park CISR - Life & Health Rolling Meadows CIC - Life & Health Rolling Meadows E&O: Roadmap to Policy Analysis Webinar CISR - Risk Management Bloomington CISR - Agency Operations Edwardsville Ethical Dilemmas Webinar CISR - Risk Management Lake Bluff E&O Risk Management Webinar Ethics: Data, Dilemmas & Knuckleheads Webinar E&O Risk Management Webinar

Online Education

june

6 6 10 11 12 18 18 20 25 25 26 27

Ethics & E&O: Synergy, Not Rivalry Webinar Farm Agents Council Annual Meeting Bloomington Ethics Rolling Meadows E&O: Roapmap to Policy Analysis Webinar CIC - Commercial Property Chicago CISR - Commercial Property Edwardsville CISR - Commercial Casualty 1 Rolling Meadows Ethics & Agent Liability Webinar CISR - Commercial Property Springfield E&O Risk Management Webinar CISR - Agency Operations Champaign E&O Risk Management Webinar

www.iiaofil.org May & June Featured Online Classes General Homeowners | General PAP Property & Liability Concepts | Ethics & E&O When the Child Becomes the Parent- Aging Parents Business Income | Commercial General Liability E&O Roadmap to Policy Analysis | Ethics & the Law National Flood Insurance Program Basic Course Who is an Insured? | Workers Comp Insuring Trusts | Homeowners Hot Topics And More!

may 2019

New Members member agency Service Insurance Agency Acquisition, LLC Arlington Heights, IL Susan Moore & Assoc., Inc. Buffalo Grove, IL For information regarding IIA of Illinois membership or company sponsorship, contact Tom Ross, Director of Membership Services, at (217) 321-3003, tross@iiaofil.org. insight

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We Need

You!

Yes, You! The IIA of IL is looking for elite people who believe CE is more than just earning hours to keep a license up to date. We want people who really want to learn and further their careers in the insurance industry.

If this sounds like you, then please take a couple of hours out of your day to join us at a Mastermind Focus Group near you.

Don’t stand for regular old CE programs anymore. Help us provide you the education you need to be the best at what you do each day.

May 23 - Chicago June 11 - Bloomington June 13 - Tinley Park June 20 - Springfield June 20 - Fairview Heights

June June June June

25 26 26 27

-

LaSalle Schaumburg/Rolling Meadows Naperville Effingham

Go to iiaofil.org/Mastermind-Groups for details.

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may 2019

Reach. Rise. Shine. Attend CONVO 2019.

By Shannon Churchill

Spring has finally sprung, and I know it sounds crazy to already be talking about Fall, but it will be here before we know it. The IIA of Illinois team is hard at work in preparing for the Midwest’s largest industry event. Make sure to mark your calendar for October 1-3, 2019 back at the Crowne Plaza in Springfield, IL. After an overwhelming response to last year’s event, the leaders of the IIA of Illinois made the decision to bring the annual event back to the capital city. Check out some of the preliminary details below, and we look forward to seeing you there!

CONVO is the Association’s premier event, designed for our member agents to come together for connections, networking, education, industry trends, the largest industry tradeshow in the Midwest with over 150 vendors and of course fun. Offering 12 hours of CE (pending DOI approval) this year’s education sessions are lining up to feature a CEO Panel with some of the top executives in the industry discussing the future of the independent channel and what it means for you and your business. The other general session will include key agents from across the country sharing insights on to what makes them stand out and how you can take home some of these best practices for your agency. Other breakout sessions include the E&O Risk Management for your necessary credit (including Ethics); Cyber Updates, and how your agency can/needs to be protected; active shooter training (unfortunate our world has come to this), and much more still in the works. Check out www.ilconvention.com and watch your emails for updates on a regular basis.

With two key panel presentations we want to hear from you…what is the biggest challenge your agency is currently facing?

Another feature brought back is the IIA of Illinois Awards recognizing the amazing talent within our membership.

We know we are lucky to have such incredible agents representing the independent channel in Illinois. To honor our members for their talent, professionalism and dedication to our industry we have created a series of awards. We are looking for candidates for Agency of the Year; Agent of the Year; and Young Agent of the Year.

Think you have what it takes? Check out www.iiaofil.org/IIA-of-IL-Awards for details and to make a nomination.

The premier part of the CONVO is the largest industry tradeshow in the Midwest. Exhibitors from all over the country come to our sold-out event each year. To guarantee you don’t end up on the waitlist, make sure you register your company today. www.ilconvention.com.

We haven’t even touched up on the fun stuff yet, like the music, live band, and dancing which takes place on Wednesday evening. Also, we are working on something fun and different than in year’s past. We are looking for people who love to dance and would want to be featured as part of the IIA of IL Dancing with the Agents event. If this sounds like you or someone you know, reach out to me.

As you can see, we have a lot in store for this year’s CONVO. Watch your mail and email for more details. You will want to save the date now, October 1-3, to come to Springfield. I look forward to seeing you there!

2019 CONVO Preliminary Agenda

Tuesday, October 1 10:00 - 4:00 p.m. Golf Outing Noon - 5:00 p.m. Registration 1:00 - 4:00 p.m. Education Sessions (CE) 5:00 - 6:00 p.m. Welcome Reception 6:00 - 8:00 p.m. Dutch Dine Arounds/Company Dinners 8:00 - 11:00 p.m. Young Agents Casino Night Wednesday, October 2 7:00 - 8:00 a.m. Continental Breakfast & Registration 8:00 a.m. - Noon General Session (CE) Noon - 1:00 p.m. Lunch and Networking 1:00 - 4:00 p.m. Education Session Breakouts (CE) 3:00 - 6:30 p.m. Tradeshow 6:30 - 11:00 p.m. Dinner & Party Thursday, October 3 7:00 - 8:30 a.m. Hot Breakfast 8:30 - 11:30 a.m. State of the Association Address

& CEO Panel (CE) Shannon Churchill is the IIA of IL CONVO Coordinator and can be reached at schurchill@iiaofil.org.

Beautifully Simple Insurance, Sold Through Trusted Advisors

35% of insurance is sold through independent agents, so why has this group not experienced the innovation and technology investment needed to simplify the homeowner quoting experience?

Introducing Openly.

What is Openly?

How Does Openly Do It?

• InsureTech for Independent Agents

• Data…leveraging hundreds of data elements from third parties

• Up-Market Homeowner Insurance for Independent Agents by Insurance People • Simple, Fast & Accurate!

3 data points & 20 seconds gets you an accurate, bindable rate • Straightforward & intuitive technology without all the insurance jargon

• Advanced Modeling & Machine Learning with next gen modeling techniques for rating and underwriting decisions • Data & modeling allow for lower expenses which means a more competitively priced product!

How Does Openly Enhance the Customer Experience?

• A high end, superior product featuring guaranteed replacement cost coverage, one click private flood and umbrella coverages • White glove claims and service operations that leverage state of the art technology to enhance the overall experience • Single click eSign process that simplifies the policy issuance process

Interested in becoming an agent partner with Openly?

Visit openlyinsured.com/for-agents or email marketing@openlyinsured.com

Available for sale exclusively through licensed independent agents and only where approved by state regulators

farm agents council news | INSIGHT

Farm Agents Council Hits the Ground Running

By Devin Conkright and Shannon Churchill The Farm Agents Council (FAC), formerly known as the Independent Farm Insurance Agents of Illinois (IFIAI) has hit the ground running with their events in 2019. Beginning with the Mid-Winter Meeting in January, the upcoming Annual Meeting in June, add in all the crop deadlines, meeting with clients, and getting the fields ready for planting, there is so much to do and so little time.

The 2019 Illinois Farm Agents Council Mid Winter meeting was a great success with 119 agents and 68 company personnel in attendance. This was the first time the FAC has held a meeting since the merger with the IIA of IL. The Polar Vortex did everything in its power to disrupt our conference, but the amazing staff of the IIA of IL and the FAC was able to pull off a wonderful event. Highlights of the event included the annual company appreciation dinner, six hours of education sessions, as well as the reception and crop-related tradeshow. Education sessions included Greg Martinelli of Martinelli Ag Sales filling in on short notice due to the winter storms, keeping our original conference speaker landlocked in California. Martinelli discussed new ways to engage with farmers based on their personality traits using the DISC method. Casey Roberts of Laurus Insurance Consulting informed the group about the various technologies being used today to improve the efficiencies in agriculture. Roberts has spoken for the FAC

in the past and, as always, he was very entertaining and informative. Next year’s Farm Agents Mid-Winter meeting will take place January 30-31, 2020. Mark your calendars.

Coming up next for the Farm Agents Council is the Annual Meeting & Golf Outing, taking place June 6-7, 2019 in Bloomington, IL. The event kicks off on Thursday with the Golf Outing held at Prairie Vista Golf Course.

Following a day of fun in the sun, everyone will return to the Doubletree Hotel for a cocktail reception and croprelated tradeshow with our company partners. On Friday morning, following the Annual Business meeting and election of officers, attendees will have the opportunity to earn their required 3 hours of IL Ethics credit. Make plans to join us in Bloomington. Registration is available at www.ilfarmagents.com. A limited number of sponsorship opportunities are available as well. Contact farmagents@ iiaofil.org for details.

Stay up to date with all Farm Agent Council items, through our Facebook page, facebook.com/FarmAgentsCouncil , and our newly redesigned website, www.ilfarmagents.com.

Devin Conkright is Vice-Chair of the Farm Agents Council and can be reached at devin@gullyhechler.com. Shannon Churchill is IIA of IL Education Director and can be reached at schurchill@iiaofil.org.

SAFE ABOVE ALL Strong and steady, constantly raising the bar. All great accomplishments have a certain level of hazard involved, but AMERISAFE has workers’ comp down to the detail. It’s a large part of why we retain 90%* of our policyholders.

The best protection is being proactive.

amerisafe.com - 800.897.9719 *Policyholder retention rate based on voluntary business that we elected for renewal quote: 93.0% in 2017. © 2019 AMERISAFE, Inc. AMERISAFE is a registered trademark of AMERISAFE, Inc. SAFE ABOVE ALL and the AMERISAFE LOGO are trademarks of AMERISAFE, Inc. All rights reserved.

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INSIGHT | people in the news Rodenfels Appointed Senior Field Representative for Berkshire Hathaway GUARD Berkshire Hathaway GUARD Insurance Companies recently added Dan Rodenfels as a Senior Field Representative to promote targeted growth in territories encompassing parts of Illinois and Missouri. In his new capacity, he is responsible for identifying prospects for appointments while providing information about available resources and new developments to existing members of the distribution network. He also functions as agents’ field liaison with Berkshire Hathaway GUARD’s underwriting, loss control, and claims staff.

Rodenfels has been part of the insurance community for over a decade. He has extensive experience with sales, agency, and underwriting activities. According to Berkshire Hathaway GUARD’s Senior Vice President of Sales Dave Simmons, “We believe Dan Rodenfels will assist us in growing our market share in the territory. We have agency appointments available; as a long-term, experienced insurance professional in the area, Dan is the right person to help us fill those openings.”

GUARD offers a national footprint with a growing list of insurance products, including: workers’ compensation, property/liability via a businessowner’s policy, commercial auto, commercial umbrella, professional liability, disability, homeowners, and personal umbrella. Each of the organization’s insurance companies (AmGUARD,

EastGUARD, NorGUARD, and WestGUARD) is rated A+ (“Superior”) by A.M. Best – a leading source of independent rating information on the insurance industry.

Agents interested in learning more should visit www.guard. com/apply.

Rockford Mutual Insurance Company Welcomes Several New Associates Rockford Mutual Insurance Company, a regional property and casualty insurer, has announced the following new hires at their corporate office in Rockford, IL. Gregg Hansen has been hired as Assistant Manager – IT Infrastructure and Support. In his new position, Gregg will be responsible for guiding Rockford Mutuals technical support group while enhancing the quality and effectiveness of technical solutions.

Lisa Olsen, CPCU, was hired as Commercial Lines Underwriter to support Independent Agency Partners in WI by evaluating new applications and existing business to provide insureds’ policies and renewals in a timely manner.

Joseph Tassone and Peter Fassbender joined the Rockford Mutual team as Marketing Representatives. They will be responsible for prospecting and contracting agents in addition to advising agents on quotations and sales of Rockford Mutual products.

Powered by Agents for Over 35 Years and we plan to keep it that way.

Businessowner's Policy | Commercial Auto Commercial Umbrella | Workers' Compensation Homeowners | Personal Umbrella

Berkshire Hathaway

GUARD

Insurance Companies

AmGUARD EastGUARD NorGUARD WestGUARD

The Security You Need. The Name You Trust.

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See full product list & state availability at www.guard.com

may 2019

people in the news | INSIGHT Lynette Duncan was added to The Rockford Mutual staff as Claims Representative to investigate and resolve claims as assigned, providing fair and timely service to policyholders.

French Leaves Association, Romines to Fill Role

Tracey Parker has been hired as Casualty Specialist.

Her primary duties include reviewing, investigating and negotiating claims with attorneys, primarily in the Workers’ Compensation and casualty lines of business.

Deann French, Vice President of Communications and 14year employee of the IIA of IL, recently stepped away from the Association to pursue other opportunities. The IIA of IL staff and Board of Directors would like to thank French for her hard work and dedication to the Association, especially with Trusted Choice and Philanthropy and wish her the best in her future endeavors.

Markel Names Lankerd And Hans Of J.m. Wilson Ascending Stars Of 2019 J.M. Wilson is proud to announce that Travis Lankerd, Brokerage Underwriter, and Jenna Hans, Senior Property & Casualty Underwriter, have been selected for the 2019 class of the Markel Ascending Stars Program that recognizes young talented insurance professionals as future leaders in the insurance industry.

These young leaders will be invited to take part in a special council, with the goal of strengthening their professional relationship for the duration of their career.

Rachel Romines, Digital Communications Coordinator/ Web Administrator and 18-year employee of the IIA of IL, will step into that role.

Lankerd joined J.M. Wilson in 2017 as a Brokerage Underwriter and has earned cyRM (Cyber Insurance and Risk Manager) and RCLS (Registered Cyber Liability Specialist) designations. He is an Olivet College graduate with a Bachelor’s degree in Risk Management.

Lankerd’s favorite part of the job is the opportunity to be challenged on a daily basis to find solutions to complex problems. He also enjoys knowing that his work provides value to the financial security and risk management of the insureds’ businesses.

Jenna Hans joined J.M. Wilson in 2013 as an Assistant Underwriter, before her promotions in 2015 as P&C Underwriter and 2018 as Senior P&C Underwriter.

Hans enjoys the relationships she’s developed with her carriers and agents and her favorite part of the job is facing new and different challenges every day.

J.M. Wilson is a Managing General Agency and Surplus Lines Broker providing independent insurance agents access to specialty markets for both personal and commercial lines. With offices in eight states, J.M. Wilson is able to provide coverage for standard and hard-to-place commercial, transportation, property & casualty, brokerage, professional liability and errors and omissions, personal lines and surety classes in thirty-six states.

For more information about J.M. Wilson, call (800) 666-5692 or visit www. jmwilson.com.

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

(800) 666-5692 | JMWILSON.COM may 2019

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INSIGHT | industry news FCCI Insurance Group Marks 60th Anniversary FCCI Insurance Group, a company dedicated to delivering commercial insurance products to agency partners and policyholders in 19 states, kicked off its 60th anniversary celebration on April 3 from its Sarasota headquarters with a live feed to 850 teammates and partners in its regional footprint, featuring keynote speaker, author and leadership coach John C. Maxwell.

In his remarks opening the celebration, Chairman of the Board, President and CEO, Craig Johnson recognized FCCI’s devoted teammates and agents throughout the six regions where FCCI does business. “You are responsible for our six-decade landmark success and tremendous growth

and the reason we are able to celebrate 60 successful years in the industry,” he said. “Our culture of keeping promises also translates into the focus our teammates have in giving back to the communities we serve.” In 2018 alone, 2,700 volunteer hours have benefited communities across all of the company’s regions.

A career-long dream, Johnson welcomed his admired leadership guru, John C. Maxwell, to share his insights and inspiration with FCCI’s team. According to Johnson, one of his favorite books is Maxwell’s 21 Irrefutable Laws of Leadership, noting it has fueled his own personal and business growth. Maxwell’s hour-long conversation at the celebration addressed key points from his latest book, Leadershift: The 11 Essential Changes Every Leader Must Embrace, highlighting that the future will be faster and shorter and being agile, flexible leaders in this fast environment will determine our success. He applauded FCCI’s legacy of keeping promises and building a unique culture, even including Johnson in his Minute with Maxwell series on the topic of culture.

In celebration, Johnson reaffirmed his excitement about where the company is headed. “We are fortunate to be viewed with great respect in the industry. From being the first to integrate risk control and nurse case managers into services offered to agents and policyholders, to developing Risk Management & Insurance curriculum at the university level to ensure a vibrant recruitment pipeline, along with FCCI’s in-house School of Excellence program, we will continue to advance innovative approaches to our business model while staying true to our history of keeping promises, and doing what we say we will do.”

The Hanover Named Top Mid-Sized Employer The Hanover Insurance Group has been named one of “America’s Best Mid-Size Employers” by Forbes magazine. This is the fifth consecutive year that The Hanover has been recognized.

“This distinction speaks volumes about our unique culture and reflects the energy and enthusiasm our employees bring to their work every day,” said Kathy deCastro, executive vice president and chief human resources officer. “Our team is the foundation for our success, and

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industry news | INSIGHT we are committed to fostering an environment where our employees can build exciting and rewarding careers.�

To compile its list of top employers, Forbes partnered with Statista to survey 50,000 US workers employed by companies with at least 1,000 employees. Participants were asked a variety of questions about their companies, including how likely they would be to recommend their employers to others.

Respondents were also questioned about development opportunities, working conditions, compensation and company reputation.

Liberty Mutual Insurance to Acquire AmTrust Financial Services, Inc.

Applied Systems Acquires TechCanary Insurance software provider Applied Systems has acquired TechCanary, an insurance CRM system built on the Salesforce platform. The acquisition expands Applied’s sales and marketing services and will drive greater sales and marketing automation for insurers, agencies and MGAs. TechCanary’s insurance CRM will be integrated with Applied Epic, the world’s most widely used agency management system. The integration will allow insurers, agencies and MGAs to use the Salesforce.com platform to manage their sales and marketing activities to prospects and clients. The platform will also provide access to thousands of applications available on the Salesforce AppExchange.

Liberty Mutual Insurance has signed a definitive agreement to acquire the global surety and credit reinsurance operations of AmTrust Financial Services, Inc. (AmTrust), a multi-national property & casualty insurer specializing in coverage for small to mid-sized businesses. Upon closing, Liberty Mutual will acquire four AmTrust businesses: AmTrust Surety, AmTrust Insurance Spain, Nationale Borg, and Nationale Borg Reinsurance (NBRe). The AmTrust Surety portion of the acquisition is expected to close in Q2 of 2019, and the AmTrust Insurance Spain, Nationale Borg, and NBRe portion is expected to close in the second half of 2019, subject to regulatory approvals and customary closing conditions. Terms of the deal were not disclosed.

 � � �

 � � � �  ­ € � � ‚ �  ƒ „ … ƒ

Agent/Broker Review Company Toll Free (800) 654-ABRC (2272) or visit us at www.abrc.com

may 2019

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INSIGHT | classifieds for the insurance professional by the insurance professional

AGENCY FOR SALE.

56. Start up Insurance Agency for sale. Right size for someone to get started. Contact:

Rachel Romines rromines@iiaofil.org Reference #AFS56

AGENCY/AGENTS/PRODUCERS WANTED.

02. Forest Park/Oak Park agency for over 60 years, will meet your needs by providing space, markets, marketing & sales support, automation, merging with or purchasing your agency. Perpetuation/ Succession Plans, BuySell Agreements also available. We have experienced, educated and dedicated staff for you and your clients.

Have access to our numerous companies, office services and many other resources. Retain ownership in your book with contingency. Please look closely at us- we are an agency you want to do business with! We’ve done it before, we know how- we make it easy! Visit our website at forestagency.com/agents.html, or call for a confidential discussion and a list of Agency benefits.

Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:

Dan Browne or Cathy Hall Forest Agency (708) 383-9000 dbrowne@forestagency.com

OPPORTUNITIES/SPACE AVAILABLE/RETAIN OWNERSHIP

13. We are a 100 year old Northbrook agency looking to discuss any mutually beneficial opportunity. Our producers, mergers, clusters and agency purchases receive 50% commissions on new and renewal business without any expenses. We can provide: office space, phones, agency management system, service renewals and changes. The companies we represent are: Badger Mutual, Employers Mutual, General Casualty, Guide One, Hartford, Kemper, Progressive, Rockford Mutual, Safeco, State Auto, Travelers and Met Life. Contact:

SHARED SPACE FOR RENT

99. 6400 SF office located at 127 N. Walnut St., Itasca, has availability for startups, insurance agents, salespeople, consultants, professionals, etc.; who are in need of class A space without the cost. Monthly fees range from $375 and include: Receptionist/Clerical, internet, conference rooms, kitchen, classroom/break room. Printing and clerical services are also available.

Short term or long-term rentals are available. Wed are in downtown Itasca across from the Metra station. Close to expressways. For information contact:

Dino Gavanes 630-779-0566 or dino_gavanes@advisersinc.com

AGENCY WANTED.

20. Since 2004, Central Illinois Agents Group LLC has been providing independent agents with a variety of markets with contingency opportunities. Agents have availability to several markets that they may not be able to sustain or maintain on their own. We have markets for personal, commercial, agricultural and crop insurance lines. Let us help you get to the next level.

Visit www.ciagonline.com for contact information.

GET DIRECT APPOINTMENTS.

64. At IPA we have been helping agents start their very own independent insurance agencies for over 13 years.

We’ve developed a unique system to help you get direct appointments with the nation’s top carriers. Visit our website for a quick overview video to see how it all works. Plus, find out how existing independent agents are INSTANTLY earning more by moving to IPA!

Visit www.insuranceproagencies.com/iia for details.

Nancy Solomon Martini, Miller & Schloss, Inc. (847) 291-1313 Ron@martini-miller.com

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Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com.

©2019 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best.

Insurance plans protected U.S. Patent No. 7,908,157.