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INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA

January 2014


You’re an independent agent.

Don’t forget your helmet.

The Big “I” Professional Liability Program Prevent.

Our risk management resources keep your agency from making common preventable mistakes.

Protect.

Our superior coverage and expert claims teams are in your corner in the event of a claim.

Prosper.

When you know you have the best E&O protection, you can focus on growing your most important asset–your business.

The Big “I” and Swiss Re are jointly committed to providing IIABA members with leading edge agency E&O products and services. The IIABA and its federation of 51 state associations endorse Swiss Re’s comprehensive professional liability program.

www.independentagent.com/EO

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas. Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. ©2008 Swiss Re

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INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA 2014 OFFICERS

PRESIDENT Gerrit Juffer Juffer Inc. Wagner SD

PRESIDENT-ELECT Steve Walker First Madison Insurance Madison SD

VICE PRESIDENT

SECRETARY-TREASURER

PAST PRESIDENT

IIABA STATE NAT’L DIRECTOR

Pat Tollefson Insurance Plus Aberdeen SD

Kathy Johnson First Western Insurance Rapid City SD

DISTRICT # 1

Annette Conway Western Dakota Insurors Rapid City, SD

2014 DIRECTORS

Jesse Konold Key Insurance Inc. Mobridge, SD

Dan Maguire Black Hills Agency Inc Rapid City SD

DISTRICT # 5

Janet Noteboom The Insurance Center Winner, SD

DISTRICT # 2

DISTRICT # 6

DISTRICT # 3

DISTRICT # 7

Pat Tollefson Insurance Plus Aberdeen SD

Mindy Huntington Fischer Rounds & Assoc. Watertown SD Rich Job BW Insurance Agency Vermillion, SD

Derrick Linn Western Dakota Insurors Sturgis, SD

DISTRICT # 8

DISTRICT # 4

Annette Conway Western Dakota Insurors Rapid City, SD

Amy Olson-Miller McKinneyOlson Insurance Sioux Falls SD

EXECUTIVE VICE PRESIDENT Jerry Diamond IIASD Pierre SD


The Executive Corner Jerry Diamond, Exec VP

The Results Are In . . . . . Maybe?? A little over 2 million Americans signed up for the Government private insurance program as of the end of December. The Administration cannot tell us how many enrollees were previously uninsured or if some are part of the 4.7 million insured people whose previous policies were cancelled because they did not meet the new Federal standards. This does not appear to be a very successful rollout; especially when you break down the facts. Young adults from Age 18 to 34 only represent 24% of the total enrollment which experts say should be closer to 40% to keep premiums down and have a successful program. Adults in the 55-64 age bracket represent 33% of the enrollment. This may prove to be troublesome since this group’s premiums usually do not cover their medical costs. Many of the people are choosing the cheapest package, not understanding what it means in expense to them at the time of a health care claim. Many will be shocked to find how much they will have to pay out of pocket on a claim. The question still remains in my mind, why didn’t they contact an expert (independent insurance agent) who could help them make an educated decision? It is my opinion, the rollout was doomed from the beginning by lack of insurance knowledge, in-house fighting by both parties, bad news coverage, and lack of interest by the younger healthier Americans.

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E&O EDGE – Carolyn Hofer, E&O Administrator The Pros and Cons of Brokerage Agreements with other Agencies Yes, we love living in a state that has wide open spaces, clean air and room to enjoy the great outdoors. However, there are some definite disadvantages we all put up with to enjoy the benefits listed above. We travel long distances to get anywhere for shopping, sports events and professional services. From an insurance carrier’s perspective, South Dakota may not produce enough volume to take on the risk of severe weather patterns we often endure. Hail, wind, tornados and even blizzards play havoc with company loss ratios….and all for only slightly over 800,000 people. Many of the carriers who do write in SD have increased volume requirements to maintain agency contracts, cancelling contracts with agencies that have been in place for over 40 years. That is a hard lump to swallow, especially if the small rural agent does not have other markets for the risks insured with the lost carrier. What are your options?? Many of you are seeking out larger agencies who still have contracts with these carriers and are willing to place the business for you and work out a commission split. It is great to see agencies work together but there are some areas of concern you need to consider when working out these agreements. 1) Notify the carrier of your arrangement. They may require the contracted agency to license the producer under their contract. 2) Whose E&O coverage will be primary in the event of an error or omission? Remember, the agency holding the contract (Agent of Record) will most often be first in line line to be named in a law suit. After all, your name is listed on the insurance policy.Most likely, both the Agent of Record and the producer will be named in any legal action bringing in two E&O policies. 3)Who will be responsible for completing and processing applications, updating underwriting information and handling of claims? Do both agencies have the same procedures in place to make sure the processes are consistent? 4)Who owns the renewal rights to these policies if there is a falling out between the two agencies or a change of ownership? As you can see, there are several details that need to be addressed prior to entering into an agreement when brokering business through another retail agency.

PARTNERING AGENCIES NEED A WRITTEN CONTRACT – NOT A VERBAL AGREEMENT. A recent email conversation with one of our Westport E&O Claims Reps, Crystal Ivy, staff attorney stated: “both the retail agent and the agent of record can be held liable for E&O incidents when these informal procurementsharing agreements are established. It would be a good idea to develop a written indemnity agreement with the procuring partner that addresses which party is responsible for liability stemming from accounts serviced through the shared procurement arrangement.” With the variety of arrangements that seem to be in place, Crystal Ivy suggests that the two agencies seek out the assistance of an attorney when developing the agreement. Call Carolyn Hofer, E&O Administrator, if you have additional questions on brokering business through a retail agency. 605-224-6234 or chofer@iiasd.org

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Division of Insurance News and Views Big I – Consumer Protection Bills During the 2014 Legislative Session, the Department of Labor & Regulation, Division of Insurance, will introduce a set of consumer protection standards for insurance claims. HB 1054 will adopt the NAIC Unfair Claims Settlement practices model, which has been adopted in 46 states/territories. HB 1054 creates a minimum set of claims standards that all consumers can rely on when dealing with their insurance company. If enacted, consumers would be protected from acts in which their insurance claims fail to be promptly handled, investigated, settled or denied in a reasonable manner. Contrary to most beliefs by South Dakota consumers these laws do not exist today. Insurance companies are already following a set of minimum standards in a majority of others states and their consumers enjoy the benefits of such laws, South Dakota consumers should also enjoy these same benefits. HB 1050 allows the Division of Insurance to seek a fine when a regulated person or entity violates state law. Currently, the Division can only set a fine if the offender agrees to the fine or seek suspension or revocation of a license, even in cases where this penalty may be too severe. HB 1050 allows the Division to enforce the laws of South Dakota without having to suspend or revoke someone’s livelihood. HB 1050 also protects the due process rights of regulated entities by requiring a hearing before any penalty can be imposed.

SB 52 will allow the Division to share a draft examination report with the licensee that was examined and clarifies the timeframes for review of the report. SB 25 also makes it clear that the draft examination report is confidential during the resolution process. These bills create necessary standards beneficial to South Dakota consumers along with greater uniformity and consistency with other states, a positive regulatory impact for the insurance industry.

Division of Insurance Contact Information: Merle Scheiber, Director South Dakota Division of Insurance 445 East Capitol Avenue Pierre, SD 57501 Phone: 605.773.3563 Fax: 605.773.5369 Whether your customers drive it, ride it, or boat it. We can insure it. HELPING YOUR CUSTOMERS FIND THE RIGHT POLICY HAS NEVER BEEN EASIER. Partner with a leader. It’s no secret why drivers use independent agents. You offer quality service, and a convenience second to none. But Progressive can help too. Because Progressive is not only a leader in auto insurance, but also truck, boat, motorcycle and RV. Plus, drivers who switch to Progressive save an average of $550 on their auto insurance. So no matter what you’re helping your customers insure, together — we can help them insure it for less.

HB 1052 allows the Division of Insurance to share certain information about investigations, examinations and remedial actions with South Dakota consumers who have filed a complaint or report with the Division or who contact the Division regarding remedial action affecting them. /

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Progressive Casualty Ins. Co. and its affiliates, Mayfield Village, OH. Auto insurance prices and products are different when purchased directly from Progressive or through independent agents/brokers. Not available in all states. Market positions from Highline Data’s 2007 written premium data, NAIC 2008 market share data, and 2008 Millward Brown & Harris Interactive survey data. 10A00065.A11 (08/10)

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Kayla’s Technology Advice Driving in Snow? Go Nice and Slow!

Article By:Trusted Choice Staff Writer

When staying home is not an option and you must brave winter roads, your Trusted Choice® independent insurance agent advises you to remember the ageless moral of the tortoise and hare: Slow and easy wins the race. From snow blizzards and white-outs to the dreaded black ice, the hazards of winter roadways must be negotiated carefully if you and your vehicle are to arrive at your destination safely. Even with the use of de-icing agents and sand, your chances of slip, sliding away into a ditch, barrier or other car are great. Beyond keeping your vehicle in top winterized condition, caution is the rule of the winter road.

•Don’t stop if you can avoid it. On slippery roads, it’s much easier to accelerate while the car is still rolling than to start moving from a full stop. If you can slow down enough to keep rolling until a traffic light changes, do it. •Don’t power up hills. Applying extra gas on a slippery hill will cause your wheels to spin. Increase speed before you reach the hill, and let that energy carry you to the top. If possible, allow the car in front of you to crest a steep incline before attempting it yourself. •Never stop while going up a hill. Starting from a full stop on a hill can be impossible. As you reach the crest of the hill, reduce your speed and proceed downhill as slowly as possible. If you can, stay home and watch the snow from indoors. Even if you drive well in the snow, others on the road may not.

Here are a few helpful winter safe driving tips direct from the experts at AAA: •Accelerate and decelerate slowly. To regain traction and avoid skids, apply the gas slowly. And remember that it takes longer to slow down on icy roads, so allow extra time to brake before a stop. •Drive slowly. Everything takes longer on snow-covered roads, including accelerating, stopping, and turning. Allow extra driving time. Driving slowly also gives you time to maneuver. •The safest following distance on normal dry pavement is three to four seconds. On ice or snow, allow eight to 10 seconds of following time. You need the increased margin of safety in order to provide the longer stopping distances required on ice and snow. •Know your brakes. Threshold braking is the best way to stop, regardless of the type of brakes on your vehicle. Keep the heel of your foot on the floor and use the ball of your foot to apply firm, steady pressure on the brake pedal. If a wheel locks, release the brake and reapply.

Other insurance companies can’t touch our iPAD app! GreatAmerican Crop.com

Our Crop agents can write, sign and submit coverage from the field. Can you? Great American Insurance Group is an equal opportunity provider. 301 E. Fourth Street, Cincinnati, OH 45202

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Steve Tripp of McKinneyOlson Insurance Named Vice President of Safeco Insurance National Agent Advisory Council SIOUX FALLS, S.D. (January 10th, 2014) — Steve Tripp of McKinneyOlson Insurance in Sioux Falls has been elected vice president of the Safeco Insurance National Agent Advisory Council, effective Jan. 1, 2014. Tripp, vice president and treasurer at McKinney Olson, will help lead the council as it gathers feedback from across the country to improve the experience of Safeco customers and the company’s independent agent partners. Safeco has been using advisory councils for more than 10 years to collaborate with agents on solutions for improving service, products and performance. Approximately 140 agents sit on eight regional councils, all managed by agents. The national council is comprised of officers from the regional councils. “Serving my peers and customers as president of the National Advisory Council is truly an honor — one of the highlights of my insurance career,” said Tripp, an industry veteran of nearly 20 years who became vice president and partner at McKinney Olson in 2008. “I’ve always appreciated the partnership of Safeco, because the company shares my commitment to doing what’s right.”National Advisory Council officers serve one-year terms. Tripp has previously served as president of the Midwest Region Agent Advisory Council. “I look forward to the leadership of Steve Tripp as vice president of the National Advisory Council,” said Matthew Nickerson, president of Safeco Insurance. “The Safeco Agent Advisory Council process plays a vital role in helping us enhance the customer experience and build stronger partnerships with our independent agents, and Steve will be a strong voice for all.”

Acquisition Strategy

#11

LOSS CONTROL SERVICES

“ Reducing losses adds value for your clients.” Chad Veach, Engineering Services Supervisor Provide more than protection to your clients. Provide the added value of EMC’s no-fee loss control services, which could help reduce the cost of their insurance. It’s just one of the many reasons policyholders Count on EMC®.

Omaha Branch: 800.338.9735

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Home Office: Des Moines, IA

www.emcins.com © Copyright Employers Mutual Casualty Company 2013 All rights reserved

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Nationwide Strength. Midwest Values.

1 NO.

WORK COMP

Writer in SD

www.rascompanies.com 800.732.1486

We partner with our agents to help employers control the rising costs of managing a workforce while protecting profitability. We have a proven history of solid performance throughout South Dakota and continually develop new ways to overcome the difficult issues inherent to workers’ compensation. We have a team approach to deliver exceptional service. n Stay at WORK/RetuRn tO WORK PROGRaM DeVeLOPMent n LOSS PReVentiOn anD tRaininG n COSt COntainMent PROGRaMS n MyRaSSM OnLine eMPLOyeR ReSOuRCe ManaGeR n LOCaL CLaiMS ManaGeMent anD CaSe ManaGeMent

IIASD DUES DEDUCTIBILITY Please note that dues are not deductible as a charitable contribution but may be deductible as an ordinary and necessary business expense. The portion of the dues related to lobbying expense is NOT DEDUCTIBLE as an ordinary and necessary business expense. The non-deductible portion of dues for 2013 are as follows: IIABA - 23.14% IIASD - 25% For tax purposes, add the two percentages together for a total of 48.1% of non-deductible dues. This is the first year we have shown a non-deductible dues amount for IIASD. Legislative activity affecting the Independent Insurance Agents of South Dakota has required us to take a more active role in lobbying resulting in additional expense. We continue to do our best to protect the role of the independent insurance agent. Be sure to take an active role when we send out email blasts requesting your assistance with your legislators. See Page 20 of this newsletter for the article on “Get to Know Your Legislator” to complete and return the legislative form to our office. The future of the independent insurance agency system and our industry in hinging on how we react and work together on the issues that affect how we do business.

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2014 IIASD EVENT SCHEDULE

January 29-30th Board Meeting & Legislative Day in Pierre March 5-6th Farm & Small Town/Spring Crop Seminar in Oacoma April 9th-12th Legislative Conference in Washington, D.C. June 2-5th E&O Seminars in Rapid City, Pierre, Aberdeen, and Sioux Falls

Insuring the Midlands Since 1891

June 17-19th Board Meeting River Days/Walleye Classic in Pierre

Les Hileman, CPCU, AIC Vice President of Agencies 800-742-7433 lhileman@fmne.com

October 5-7th Board Planning Meeting/ Annual Convention-Deadwood

December 4-6th Board Planning Meeting

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WE SHOT FOR THE STARS AND LOOK WHAT WE HIT

IN COMPANY ASSETS!

ACUITY ’s assets are skyrocketing to new heights! Just 10 years after reaching the $1 billion mark, ACUITY ’s assets have tripled to $3 billion. We owe our thanks to loyal independent agents in 22 states and our staff of nearly 1,000 insurance professionals for helping ACUITY achieve results that are truly out of this world!

www.acuity.com

For All That Matters

facebook.com/acuitywow

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Take a Winter Break – Join us for Farm & Small Town – March 5th & 6th – Cedar Shores, Oacoma, SD It has been a long, cold winter and it is time to break away and get together with fellow insurance agents, company partners and get an update on Crop Insurance initiatives for 2014 and learn a little more about the Agribusiness policy and changes in the Business Owners policy. As you look at the agenda, you can see we have some great speakers coming on a variety of topics. We are excited to have Bob Ford back with us from Devils Lake, ND to review the Business Owners policy and go over the ISO changes in coverage. We are welcoming Sherry Paczosa and Adam Olson from Nationwide to address identifying risks and coverage needs for today’s growing and changing farm operations. Doug Hagel is returning to South Dakota with his crew from RMA to go over the changes in the Crop Program for 2014. We missed him last October when he was unable to attend our Crop seminar at Convention in Sioux Falls due to the government shutdown. They are getting paid again and we are looking forward to having them back. The Division of Insurance will be joining us at the banquet to let us know what is going on for insurance in the Legislative Session. As always, we save time for fun and socializing. The cost is minimal; rooms are only $79. Registration form can be found on Page 30 of this newsletter or register online at www.iiasd.org. Hope to see you there!

We are known for transportation, BUT… Did you know we have a FULL HOUSE? Northern States Agency, a Managing General Agency & Wholesale Broker for over 55 years, providing a wide range of commercial insurance:      

 General Liability  Property  Garage  Commercial Auto  Excess Auto Workers Compensation

Inland Marine & Cargo Umbrella & Excess Professional Liability Miscellaneous E & O Directors & Officers

Our underwriters average over 10 years experience with NSA Same day or next day response on submissions Great Service, Great Products, Great People 2145 Ford Parkway, Suite 202 St. Paul, MN 55116 P: 800-328-0828 • F: 651-646-1971 www.nsa-mga.com

Your TOTAL Solutions Provider

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Featured Diamond Partner of the Month

SIMPLE SOLUTIONS TO ATTRACT AND RETAIN CUSTOMERS. Karen Bailo GM, Agency Sales and Distribution

Learn how Progressive leads the independent agent market in awareness, consideration, savings, and customer service*. To view our product offerings and to become a Progressive appointed agent, visit ProgressiveAgent.com.

Progressive Casualty Ins. Co. & affiliates. *Source: Millward Brown monthly brand tracking study, Q4 2012. 13A00200.B (03/13)


For all your commercial property needs, the path is clear.

COMMERCIAL PROPERTY

From skyscrapers to main street businesses, lessor’s risk to vacant property, Burns & Wilcox does it all. With unlimited access to the broadest range of markets, we can place coverages for every one of your commercial property clients. Whether their needs are traditional or complex, the expertise of Burns & Wilcox means you are always on the right road. Minneapolis, Minnesota | 612.564.1880 | toll free 800.328.1693 fax 612.564.1881 | minneapolis.burnsandwilcox.com Commercial | Personal | Professional | Brokerage | Binding | Risk Management Services

33487_BURNS_CommercialProperty_IIAofSD_MN1_APPROVED.indd 1

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IIASD HASN’T MOVED WE ARE JUST CHANGING OUR MAIL DELIVERY TO: 305 Island Drive Fort Pierre, SD 57532

“A Personable Company Keeping You on Course’’ Rated “A+ Superior”

“Insuring Homes, Farms, Businesses and Autos” Offered Exclusively Through Independent Agents

www.nstarco.com 1-800-622-5230 Box 48 Cottonwood, Minnesota 56229

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Sentry Knows Trucking Sentry understands trucking is your number one priority. That’s why we constantly review and enhance our coverages to provide you with the insurance protection you need. Some of the important coverages we offer include: • Unlimited towing coverage • Pollution liability

• Blanket additional insured endorsement

• Unladen liability

• Cargo pollution cleanup

• Enhanced deductible options

• Accident travel coverage

• Non-trucking liability

• Workers’ compensation coverage

Learn more about the products and services Sentry provides. Call today.

Scobie Group 1501 42nd St, Suite 100 West Des Moines, IA

Scobie Group 14748 West Center Rd, Suite 202 Omaha, NE

1-800-475-1000 www.fwins.com

1-800-825-4855 www.fwins.com

Property and casualty coverages are underwritten by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. 688225 05/26/11

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UPS PROGRAM REPLACES FEDEX DISCOUNT The Big “I” has announced a new UPS Savings Program for members. Take advantage of some of the most competitive rates available on shipping services. Whether you need your documents or packages to arrive the next day or you’re simply looking for the most affordable shipping option, UPS understands the importance of reliability, speed and savings. UPS discounts can help your bottom line by saving you: • Up to 34% on UPS Air letters including UPS Next Day Air* • Up to 30% on UPS Air packages weighing more than one pound* • Up to 32% on UPS International imports and exports • Up to 16% on UPS Ground shipments • 70% or more on UPS Freight shipments over 150 pounds *Excludes UPS Express Critical and UPS Next Day Air Early A.M. These discounts are available even if you already have a UPS account. To enroll, click below or call 800-636-2377. http://savewithups.com/iiaba/

Tired of waiting for the market to change? At Ringwalt & Liesche, we’re not waiting around. We’re proud to be an agency that can offer stability regardless of market conditions. Check out our website at Ringwalt.com to learn more, or just give us a call - we’d love to hear from you! • Commercial Auto • Garage Liability • General Liability • Commercial Property • Workers’ Comp • Motor Truck Cargo • Prize Indemnification

Ringwalt & Liesche Send your submissions to: RL@nationalindemnity.com P: 800-708-7448 • F: 402-916-3333 • www.Ringwalt.com

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NEW MEMBERS CORNER: Meet new members of our Association We look forward to providing services to:

Associate Member Agencies: Harvest Insurance Agency, LLC Freeman, SD Principal- Karl Schlak Groton Ag Partners Groton, SD Principal- Darcie Moody June Thompson Carl Schwab

Join us in welcoming them to IIASD!

Not sure where to turn for Commercial Auto insurance? Let the insurance experts at E&L show you the way.

www.ericksonlarseninc.com Maple Grove, MN 800-442-3168 Fargo, ND 800-284-0965 Madison, WI 888-249-6050

www.nwgf.com INSURANCE FOR: Homeowners Farmowners Modular Homeowners Personal Auto Farm Property Dwelling Property Mobile Homes Excess Liability Farm and Personal Liability Classic Vehicle Semi-Truck

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2014 Dan Fulwider Award-Apply by March 1st DAN FULWIDER AWARD

Dan Fulwider was the government affairs coordinator and membership liaison for IIA of Iowa and was a huge supporter of Trusted Choice速. Dan was also a warm and caring young man whose dedication to his community and the causes he believed in inspired all who knew him. Fulwider passed away on Jan. 6, 2009 at the age of 34 after a valiant fight with cancer. In recognition of his community involvement, Trusted Choice has established an annual award of $2,500 for the selected agency to donate to a charity of its choice. More information and guidelines, including an application, are available online. The completed application and any supporting materials must be submitted to: Trusted Choice Inc. Attn: Melissa Carmichael 127 South Peyton St. Alexandria, VA 22314 The completed form and any supporting materials can also be faxed to (703) 683-7556 by March 1. In addition to applying for the award, agents may also nominate another agency and share this information with others. The award recipient will be recognized during the 2014 Big "I" Legislative Conference, scheduled April 9 through April 11, in Washington, D.C. For more information, e-mail Melissa Carmichael.


Legislative Open House and Capitol Hill Day- January 29th-30th $100 Scholarships Available to the first 10 applicants Come and join us in Pierre on Wednesday, January 29th – 5:00 – 7:00 PM for our annual Legislative Open House. Meet and talk issues with YOUR legislators. This is a great opportunity for your to visit with your district legislators on issues that they will be deciding. Last year we had 70 legislators attend this event. Thursday, January 30th, we will be hosting a visit to the Division of Insurance where you will learn about their operation.We will then cross the street to the Capitol where we will attend Committee Hearings on pertinent issues, attend a Legislative Caucus meet for a photo op with Governor Daugaard. Room block is available at AmericInn in Ft. Pierre – 605-223-2358. This is your opportunity to learn about your South Dakota Government and how IIASD works to better our industry.

At United Fire Group...

Service is no accident United Fire Group is committed to our independent insurance agents, providing the innovative products and superior service they want and deserve. We don’t take this commitment lightly. At United Fire Group, our underwriters, marketing and claims personnel are recognized for their: • Reliability, • Honesty, • Responsiveness, • Compassion, and • Fairness. These are qualities we practice every business day, because at United Fire Group, service is no accident.

United Fire Group Cedar Rapids, Iowa www.UnitedFireGroup.com

Sangeena Sharma Project Manager United Fire Group

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Pre-Licensing Class Announcement IIASD and A.D. Banker of the Dakotas Have Partnered

We are excited to announce that IIASD and A.D. Banker of the Dakota have partnered to provide insurance and securities licensing preparation classes and materials at a 15% IIASD Member Discount. A.D. Banker offers Exam Prep classes each month in Sioux Falls and quarterly classes in Rapid City. Class schedules are listed at: www.adbanker.com/dakotas Self-study and online study options for Exam Prep are also available. Materials and classroom instruction have been very successful with an average of 95% of students taking their license exam passing on the first try! Sandy Kost is the Owner/Managing Director of A.D. Bankers of the Dakotas and has worked in the insurance and financial services industry since 1988. She has worked with insurance agents, investment reps, agencies and banks in SD, ND, NE, IA, MN and WI. She has provided training on various products and topics. To register for a class or to order materials, go to: www.adbanker.com/dakotas Call: 605-271-4440 or 877-317-3087. Be sure to use the IIASD Promo/Discount Code to receive your 15% Member Discount. Promo Code: 1594626

The

Right Mix Austin Mutual Insurance Company’s rich tradition and strong South Dakota presence set us apart from other property/casualty carriers. As the newest affiliate of super regional The Main Street America Group, our two companies are committed to providing you with commercial and personal lines, as well as fidelity and surety bond, products that are competitive in the marketplace.

Need More information? Call (800) 328-4628 or Visit www.msagroup.com

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www.msagroup.com

Contractors

WHOLESALE ACCESS to First Dakota Indemnity and Dakota Truck Underwriters,

Healthcare

known as the Dakota Group. The Dakota Group is the largest writers of workers’ compenation business in South Dakota and a leading writer in the Midwest.

Manufacturing

providing workers’ compensation solutions

Hospitality

Retail

PO Box 89846 Sioux Falls, SD 57109-9846 P. 605.361.5705 or 866.440.1840 E. beth.dobbs@insurancealt.com

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We commit ourselves to providing you with the highest quality claims and case management services available in our industry. We appreciate your continued support and look forward to serving your needs. Please visit our website for a directory of our staff, services, and coverage area. Jeff Jares, AIC AIM President Adjusters – Sioux Falls Nancy Almendinger SCLA SDWCS Jennifer Andrisen Selzler, Mgr. SCLA AIC CSRP SDWCS Tim Wieker SCLA AIC HCRI-R, C Christopher W. Madsen J.D. General Counsel Bill Blackman AIC Lynn Bren SCLA AIC Ron Burmood MBA AIC Kay Greve AIC, INS Dave Johnston SCLA Jerry Matthiesen AIC Dave Sendelbach CPCU AIC Chad Moore Wendi Peterson AIC Amy Kvernmo Kimberly Rausch SDWCS Adjusters – Rapid City John Keffeler, AIC Bruce Eleeson Case Managers Donna Passick RN CCM Kelly Rud RN BA LNCC Deb Whipple RN BA CCM Lori Schaefbauer RN BSN CCM

driven STeAdY ANd True No company understands the insurance needs of truckers more than Truckers Insurance Associates — created by truckers for truckers. And for 60 years, Truckers Insurance has remained solely focused on transportation industry insurance. So whether your clients include a single owner-operator or a full-fledged fleet, Truckers Insurance will deliver the right coverage at the right price. Even more, as trucking specialists, we’re ready to respond rapidly when needs arise. That’s service you can count on. That’s putting know-how to work. That’s Truckers Insurance. Call your Truckers Insurance account manager at 800.652.9515 for a quote today.

WE DELIVER MORE

www.truckers-insurance.com 800.652.9515

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FRAUD Charges Hole-In-Won just lost. The supposed insurer of golf tournaments with hole-in-one contests cheated a golfer by refusing to pay up when he struck paydirt. Troy Peissig thought he had won $18,000 for swatting a holein-one at a tourney in Missoula, Montana but Hole-inWon stiffed him. The distance from the hole’s tee box to the pin was 130 yards, well short of the policy criteria of at least 165 yards, the firm contended. Yet a satellite photo confirmed the distance was at least 165 yards, Montana’s insurance department discovered. Owner Kevin Kolenda also was sanctioned for cheating in Alabama, Connecticut, Massachusetts, Nevada, North Carolina, Oregon, Texas, Virginia, and Washington. Kolenda took the offensive after the Montana bust. Politicians, regulators and journalists “sensationalized” the story and made “outlandish claims” about the company, he said. The other claims involved dishonest golfers who cheated and lied about their holes-in-one, Kolenda said. Unmoved, a judge handed Kolenda six months in Missoula County jail, all suspended. A heart doc’s heartless tests fleeced Medicare and Medicaid out of $15.6 million while he claimed he selflessly served low-income Hispanics in New York and New Jersey. Patients of Dr. Jose Katz came to his offices for basic checkups and consults. Most left with false diagnoses of coronary artery disease and debilitating angina, plus orders to undergo useless tests. They were “herded in like cattle and subjected to an astonishing number of diagnostic tests, regardless of why they came to the doctor. It was a mill,” said the federal prosecutor. It was the largest health scheme ever by a practitioner in either state, officials say. Katz had an unlicensed crony with a medical degree diagnose patients, forge Katz’s signature and use his billing codes. Katz argued he was simply in over his head with complex billing. He taught at Columbia University before setting up his three clinics. Katz received 6 ½ years in federal prison.

The $700,000 life-insurance murder was literally crushing. Karl Karlsen hoisted his 5,000-pound pickup truck onto a wobbly jack and persuaded his son Levi to work on repairs underneath the vehicle. Karlsen then knocked the pickup onto Levi’s chest and walked away, leaving his son to suffocate. A pair of broken glasses and baseball cap lay on the garage floor. Karlsen had taken out the life policy making him the sole beneficiary just 17 days before Levi died. An informant later recorded Karlsen admitting he removed his truck’s front tires and raised it onto a single jack before asking Levi to repair the brake and transmission lines. His wife Cindy recorded him saying he did not plan Levi’s death but “took advantage of the situation.” He also signed a statement acknowledging knocking the truck off its jack and walked away. He also did nott disclose to New York Life that Levi suffered from achalasia, a throat disorder that makes swallowing difficult. Levi died the day before his scheduled physical, when the achalasia might have been discovered and the policy voided. Karl earlier told reporters that his ex-wife’s death, Levi’s death, and a 2002 fire at his farm that killed his Belgian draft horses, for which he collected $80,000 in insurance money, were all coincidences. Dentist Owen Rogal did delicate brain surgery on patients and billed health insurers $5 million. Why is a dentist billing for brain surgery? He merely did low-risk procedures involving inserting a needle into an afflicted muscle to alleviate chronic pain. Rogal received seven years in prison.


New Trusted Choice® MRP Guidelines Now Available Agents using the Trusted Choice® brand can now apply for reimbursement of funds. The Trusted Choice® 2014 Marketing Reimbursement Program (MRP) Guidelines are now available online. Please review the guidelines carefully, as Trusted Choice has revised the MRP in an effort to encourage more agent participation and involvement. The updated MRP includes a portion encouraging the use of the new Trusted Choice advertising materials (including print, radio and digital) that will be revealed this week at the Big “I” winter board meeting. Trusted Choice is excited to roll out those new materials to everyone immediately following the meeting, so be on the lookout for a related announcement next week.

If you have any questions concerning the MRP or the updates that have been made to the program, contact Kiescha Cherry at 703-706-5443.

DON’T GET BITTEN BY AN E&O CLAIM YOU COULD HAVE AVOIDED.

Why American West Insurance? • Local company with over 60 years agriculture insurance experience • Quality products • Competitive pricing • Expert claims and underwriting services

Be Protected. Be Sure®. yourawi.com To learn more about AWI contact Bruce Meyer at bmeyer@yourawi.com or call 605-929-2782.

Big “I” Risk Management Website

www.independentagent.com/EOHappens Big “I” members whose agency E&O insurance is written by Swiss Re through the Big “I” Professional Liability Program have access to an exclusive risk management web site.

DON’T BE ON THE HOOK FOR: Failing to procure coverage requested by the client Not adequately identifying client exposures Failing to provide timely notice of a claim to the carrier

Agribusiness • Farm & Ranch • Farm & Ranch Auto • Personal Auto Excess Liability • Watercraft • Crop-Hail • Multi-Peril

Log on today to fish for E&O claims frequency data, real-life case studies and analysis, sample client letters, sample agency procedures, agency E&O self assessments, podcasts on important E&O topics, and much more.

Misrepresenting or not explaining policy provisions Providing inaccurate information to carriers Failing to properly add additional insureds or loss payees

23


EXPERIENCED COMMERCIAL LINES PRODUCER: United Fire Group

McKinneyOlson in Sioux Falls is looking for an experienced Commercial Lines Producer.

Ad Here:

If interested in this position please send resume to: McKinneyOlson PO Box 89727 Sioux Falls, SD 57109

COMMERCIAL UNDERWRITER POSITION: NORTH STAR MUTUAL INSURANCE COMPANY of Cottonwood, Minnesota is looking to hire an experienced COMMERCIAL UNDERWRITER for our Home Office. See our Careers tab at www.nstarco.com for more information.

ADJUSTER POSITION: Missouri Valley Mutual Insurance Company; a South Dakota Property/Casualty Insurance Company, has an opening for a full time adjuster. Qualifications include Personal Lines Adjusting experience and the ability to communicate and associate well with our agency force and insureds. Preference will be given to candidates with business education. We offer a competitive benefits package. Job responsibilities include claims adjusting for Auto, Farm and Home business throughout South Dakota. If interested and qualified for this position please send resume and education history to: Missouri Valley Mutual Insurance Company Ronald Dockendorf, President P. O. Box 357 Burke, South Dakota 57523 For Questions Call 1-800-456-0714


How to Have Your Best Year Ever by:John Chapin

By the time you read this we’re more than a month into 2014, one twelfth of the year is already gone. How’s it going so far? How are you doing with your New Year’s Resolutions if you made any? Are you on track to achieve your personal and professional goals this year? If you’re not on track, these ideas will get you on track and caught up. If you are on track, these ideas can help you achieve your goals even faster and go even further.

Five Keys to a Highly Successful 2014 1) Why do you want to have your best year ever?

Before you take on any endeavor, you have to know why you’re doing it. This one factor will determine whether or not you are successful. What are you capable of if you set your mind to it? Pretty much anything, right? So in order to wake up every day driven and motivated to do what must be done in order to achieve your goals and dreams, you must have powerful reasons for doing so. Find your WHY in positive reasons for achieving your goals and negative consequences if you don’t. The start of all great achievement is a burning desire in your heart and soul that simply must be fulfilled.

2) Have goals and a plan.

You’ve heard it a million times but this is still the biggest factor that the most successful people on the planet attribute their success to, so, if you haven’t done this yet, DO IT! The top 3% of people on the planet have goals, a plan for their achievement, and they work on those goals every day. They are worth more in financial terms than the other 97% combined. You don’t need a huge list of goals in each area of life with elaborate plans for their achievement, in fact, the simpler you can make it, the better. At a minimum, pick one major professional goal and one major personal goal, put a simple, straight-forward plan together, and take action on both goals daily.

3) Do what you must do.

Now that you know why you want to have your best year ever and you have goals and a plan, it’s time to get to work. Not tomorrow, not later today… NOW! The most successful people are people of action. They don’t put things off and they rarely hesitate once they have decided upon a goal. You must work on your goals every day whether you feel like it or not. You must work on your goals when you’re tired, sick, and beaten down. Should you rest occasionally? Yes. Should you take a vacation and have balance in your life? Yes. But assuming you have the burning desire necessary to achieve your goals and dreams, you will pick yourself up in the most tiring and difficult times and press on. Anything worth acquiring in life usually requires that we work hard, get uncomfortable, and face some fears. Also, contrary to popular belief, WILL POWER DOES WORK. It’s simple, you’re either going to eat that donut or you’re not based upon a simple decision that your parents, the economy, or your relationships have nothing to do with. Speaking of that, I give you point #4…


4) Stop making excuses and giving up control of your life. Over the years I’ve heard every excuse as to why people don’t achieve their goals. I’ve heard reasons related to health, emotions, past traumas and negative events. People blame the economy, other people, and bad breaks growing up. I have two words of advice: Stop it! Assuming you are reading this right now and comprehend it, you have no excuses. Once you hit the age of 25 you are responsible for where you are in life. While a 13 year old can blame his or her parents, and a couple other outside factors for their present position in life, anyone 25 or older can go no further than the mirror. The faster you “get” that you determine your outcome, not the economy, your parents, or your boss, the quicker you will grab control of your life and live it on your terms. If you continue to blame others and outside circumstances, you will be a victim and the things you don’t want will continue to show up. You are responsible, you are in control, and you decide where you end up. 5) Follow Winston Churchill’s advice. You remember his advice, right? “Never, never, never give up.” Another saying is, “Quitters never win and winners never quit.” If you hang in there long enough, you’ll make it. Life is simply a game of deciding what you want, developing a plan to get it, taking daily action on that plan, seeing what works and what doesn’t, and adjusting your approach until you get to your destination. Even a ship is of course 99.9% of the trip. The captain simply continues to get feedback and course corrects until the ship lands safely in harbor. You can do, be, and have anything you want, but it’s going to take hard work and sacrifice. The question isn’t can you have your best year ever, the questions are: Are you willing to put in the time, effort, energy and money that’s necessary? Are you willing to give up the excuses and other crutches and pay the price for success?


Concorde General Agency’s Spirit of Giving Challenge Awards Over $4,200 in Donations

(Fargo, ND) Concorde General Agency has created a tradition of local holiday giving by organizing an annual Day of Service with their team of nearly 40 insurance professionals and gathering monetary donations which are matched by owners Robert Hanna and Scott Anderson. With a service area spanning over 12 states, Concorde wanted this year to reach out and give beyond their local community and inspire clients across the upper Midwest to get involved. Concorde’s relationship with Great Plains Food Bank, the beneficiary of their annual Day of Service and donations over the past few years, inspired the launch of the “Spirit of Giving Challenge.” This social media photo contest asked Concorde’s clients to nominate their local food bank or food pantry to receive a $500 donation from Concorde on their behalf. Participation was so great that Concorde honored twenty nominated food banks/pantries across Iowa, Idaho, Minnesota, Montana, North Dakota and South Dakota with donations. Some insurance agencies who nominated food banks even chose to match Concorde’s donation. Overall, Concorde General Agency’s local and regional giving provided more than $4,200 to food banks this holiday season. A full list of recipients can be found here: http://ow.ly/rXOpj. The Spirit of Giving Photo Gallery can be viewed here: http://ow.ly/sbb5H For more information, contact Kristan Bullinger at kbullinger@concorde-ga.com or 701-373-8942.


12 Months & 1 Day

By: Kathy Johnson- IIASD Past President Where did the time go? As I write my last article, that is exactly what I am thinking. They say all good things must come to an end, and this has definitely been one of the good things in my life. I have learned so much and it has been an experience I will never forget. Working together with your board of directors has been an education in leadership that I will always remember and I am proud to have worked with all board members, past and present. My time as your President was eye opening and having had eight years of training as a board member was a huge benefit. I will say that having been a part of your board of directors during the many changes we have had in the past years was a bit unnerving at times; however, because the board has always worked to the “best interest” of its members, the changes and issues were easily handled. This past year with Health Care Reform, it was a “whole new game” and I, along with your board of directors, suited up to handle the issues of the South Dakota Independent Agent. I think of how grateful I am to have our amazing staff: Jerry, Carolyn and Kayla, who have made our jobs easy, and are always a resource for all of us when we have questions, concerns and need assistance in any way. Our staff have singlehandedly grown the Association, brought value to the events, and expanded our ability to bring value to you, the agency owners, like never before. But that was 2013, and now we are off to a great start in 2014 and I know they will do it again, bringing even more value and resources in the coming year. I can honestly say my time on the board was time well spent and I am grateful for it. The board completed its annual planning session, led by President Elect Gerrit Juffer, where your incoming board learned the inner workings of the association. Looking back, one of the most important changes for the association this past year is something I had little to do with, but it will bring positive growth to your association for years to come. What I am referring to is our Young Agents program. Many thanks to Jesse Konold with Key Insurance in Mobridge. Due to his dedication, South Dakota again has a growing young agent following. Through his continued leadership there will be even more for the young South Dakota agent in the future.

As I end my term, I would like to recognize some special talent leaving the board this year: Dale Heesch, Past President from Dakota Insurance in Baltic Chad Dubisar, Past Board Seat District 4 from Boen & Associates in Sioux Falls Gary Joyce, State National Director from Howalt McDowell in Sioux Falls It has also been a pleasure serving with the Executive Committee, which is full of talented and dedicated folks. Finally I want to give a special thank you to the entire Association staff. As I said, Jerry, Carolyn, and Kayla work diligently for us, the membership, every day. This fine team not only made me look good but has done so for every president before me. They are the engine of this association, and Jerry is truly the best state executive in the country and has always been an advocate for the independent agent. I’m proud to be a part of the insurance industry and I am honored to have been this association’s president. Thank you for allowing me to serve.


IIASD Fire Department Grant Program In our April Newsletter, we highlighted the 2013 Fire Department Grant Program which involved partnering with the State Fire Marshall’s Office to match their grants of $750 each to 14 Fire Departments across the state who hosted the Firefighter Essentials education program.. Fourteen of these matching grants have been awarded and delivery is being handled by local agents. Recipients are: Belle Fouche FD; Rapid Valley FD; Spearfish FD; Miller FD; Worthing FD; Town & Country FD (Woonsocket); Parker FD; Faulkton FD; Lake Andes FD; Menno FD; Brookings FD; Minnehaha County Fire Chief ’s Assn.; Corsica FD; and Canton FD Pictured Below: From left to right: David Anderson (Canton Insurance Agency), Brian Severson (Canton Fire Chief), Peggy VanDeKieft (State Line Insurance) and Drew Anderson (Elmer H. Anderson Agency)


FARM & SMALL TOWN AGENTS CONFERENCE 2014 SPRING CROP INSURANCE UPDATE CEDAR SHORES RESORT- OACOMA/CHAMBERLAIN March 5-6, 2014 3 Seminars Offering Continuing Education Credits

Call 605-234-6376 for reservations and let them know you are with the IIASD. BOP Coverage & ISO Changes for Small Markets Instructor: Robert Ford, P&C Division, American Ins Center, Devils Lake, ND Spring Crop Insurance Update Instructors: Doug Hagel, Cindy Cruea, Laura Estes- Risk Management Agency South Dakota Legislative Update Speaker: Merle Scheiber, Director- SD Division of Insurance Agribusiness Farm Coverage Instructors: Sherry Paczosa, Adam Olson- Nationwide Agribusiness

WEDNESDAY MARCH 5

Registration

(PLEASE CIRCLE WHICH CLASS YOU ARE ATTENDING)

BOP

4 hrs P&C CE (pending) Spring Crop Update 4 hrs Crop CE (pending) Fun & Fellowship Banquet

Breakfast Farm Coverage 4 hrs P&C CE (pending) Luncheon

11:30 a.m. – 1:00 p.m. 1:00 p.m. – 5:00 p.m. BOP Coverage & ISO Changes for Small Markets

1:00 p.m. – 5:00 p.m. Overview of Crop Insurance Changes and RMA Initiatives 5:00 p.m. – 7:00 p.m. Hospitality Room 7:00 p.m. Legislative Update- Merle Scheiber, DOI

THURSDAY MARCH 6

7:00 a.m. – 7:45 a.m. Breakfast Buffet 8:00 a.m. – 12:00 p.m. Agribusiness Farm Coverage 12:00 p.m. Noon Luncheon

Payment must be received with registration. Send form in with payment or you can also go to www.iiasd.org and register online.

Payment must be sent with this form. (Checks payable to IIASD)

Payment: �Check Enclosed; or �VISA

�MasterCard

�American Express

Card No. ______________________________________________Card Verication No.______ Exp. Date _______ Billing Address ________________________________________________________________________________ Cardholder Name_____________________________ Signature __________________________________________ Independent Insurance Agents of South Dakota, 305 Island Drive Fort Pierre, SD 57532 Phone 605-224-6234; Fax 605-224-6235

2014 FARM & SMALL TOWN AGENTS CONFERENCE NAME/NAMES: __________________________________________________________________________________

AGENCY/CO (if any): ______________________________________PHONE # _____________________________ ADDRESS:____________________________________________CITY & ZIP: _______________________________ Choose one of the following:

_____$75 IIASD Member/Company Registration _____$150 Non-member Registration

_____$50 Crop Seminar Only _____$50 Crop Seminar with Banquet


POWER IN PARTNERS

DIAMOND Progressive Insurance Co. Great Plains Brokerage Graber & Associates PLATINUM Farmers Mutual of Nebraska Risk Administration Services Great American Insurance Company QBE NAU GOLD Austin Mutual Insurance Compnay Dakota Claims Service The IMT Group Le Mars Insurance Company North Star Mutual Insurance Company Rain & Hail, LLC United Fire Group SFM Mutual Insurance Company State Auto Insurance Companies CGB Diversified Services, Inc. Columbia Insurance Group Allied Insurance Western National Insurance Continental Western Group Liberty Mutual Insurance Avera Health Plans EMC Insurance Companies SILVER Acuity Doss & Associates Farmers Alliance Mutual Midwest Family Mutual Safeco Swiss Re Risk Placement Services NCMIC Finance Corporation Farmers Mutual Hail of Iowa Rurual Community Insurance Services BRONZE Auto-Owners Insurance American West Insurance Bjornson/Sentinel E & L Buckeye Insurance Group Center Mutual Insurance Co. Insurance Alternatives, LLC Missouri Valley Mutual Insurance Co. Northwest GF Mutual Insurance Patriot National Insurance Group ReliaMax Home Warranty, Inc. Berkley Assigned Risks Services

January 2014

January 2014 newsletter  
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