wisconsin
INDEPENDENT AGENT JANUARY 2019
AGENCY SOLUTIONS
TRUSTED CONSULTING FOR THE INDEPENDENT AGENT OPERATIONS
STRATEGY
TECHNOLOGY
FINANCE
Think you have what it takes to be an insurance agent? ACUITY
Join Acuity CEO Ben Salzmann and Emmy-Winning TV Host John
McGivern for this hour-long game show that will test our three contestants to see if they really have what it takes to be P&C Insurance Agents! But you’ll be the real winner when you take home a shiny new CE credit! Watch now at acuityu.com.
EARN FREE CE CREDITS 24/7!
wisconsin
INDEPENDENT AGENT JANUARY 2019
Insurance Bartender. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 E&O Fore! Avoiding Bogeys on Golf Course Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Don’t Wait to Take Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Policy Checking Solutions and Strategies for P&C Insurance Industry . . . . . . . . . . 10 Beware the Changing World of CGL Exclusionary Endorsements . . . . . . . . . . . . . . . 11
On The Cover…
Technology Best Year Ever: How will you achieve your goals in 2019? . . . . . . . . . . . . . . . . . . . . 12
IIAW continues to fuel growth and embrace change in our industry. Being on the front lines means acting as an advocate and voice for independent agents and also a trusted resource for guidance and support. As we identify ways to continually innovate, we strategically assess where we can bring the most value to our members and what will keep them relevant as we journey on through the 21st century. Using proactive risk management, we look for opportunities to improve and pass those opportunities on to our members. There has never been a more exciting time to be part of the IIAW!
ID Federation for a Multi-Factor Authentication Response . . . . . . . . . . . . . . . . . . . . 13 Commentary from Counsel WI Federal Court Requires Coverage of Gender Realignment Procedures . . . . . . . 14 Government Affairs Republicans End Year with Lame Duck Extraordinary Session. . . . . . . . . . . . . . . . . 15 Agency Operations Big I Employee Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Emerging Leader Spotlight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 14 Ways to Get More Work Done. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Risky Business Sleep Soundly in 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Members in the News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Food for Thought . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2018-2019 Executive Committee President............................................................ Jason Bott Robertson-Ryan & Associates - 330 East Kilbourn Ave., Milwaukee, WI 53202 President-Elect............................................. Chris Costakis Avid Risk Solutions- 2501 Parmenter Street, Ste 200A Middleton, WI 53562 Secretary-Treasurer......................................Darrel Zaleski Spectrum Insurance Group, 4233 Southtowne Drive, Eau Claire, WI 5470 Chairwoman of the Board.................................Lise Meyer Meyer Insurance Agency, Inc., P.O. Box 130, Sauk City, WI 53583 State National Director ................................Steve Leitch Leitch Insurance - P.O. Box 85, River Falls, WI 54022 2018-2019 Board of Directors Mike Ansay, Ansay & Associates, 101 East Grand Ave. #11, Port Washington, WI 53704 Nick Arnoldy Marshfield Insurance Agency, Inc., 208 West 5th Street Marshfield, WI 54449 Mike Harrison R&R Insurance Services, Inc., 1581 East Racine Avenue Waukesha, WI 53146 Dan Lau Robertson Ryan & Associates, Inc., 330 East Kilbourn Avenue Milwaukee, WI 53202 Aaron Marsh Marsh Insurance Services, Inc., 11 East Newton Street Rice Lake, WI 54868 Marc Petersen American Advantage - Petersen & Assoc., Inc. 14785 West National Ave. New Berlin, WI 53151 Joanne Lukas Szymaszek Johnson Insurance Services LLC 555 Main Street Racine, WI 53405 Chad Tisonik HNI Risk Services LLC P.O. Box 510187 New Berlin, WI 53151 Pam Utpadel Universal Insurance Advisors, Inc. 100 West Lawrence Street Appleton, WI 54911 WISCONSIN INDEPENDENT AGENT
> A DVERTISERS & INFORMATION
2018-2019 Committee Chairs
Acuity................................................................ 2
Agency Services............................................ Ruth Vorwald Johnson Insurance Services, 7401 144th Ave, Kenosha wi 53142
Keystone........................................................... 4
Automation/Technology................ Cathleen Christensen Hierl Insurance, Inc., Fond du Lac, WI 53937 Emerging Leaders.................................................. Dan Lau Robertson Ryan & Associates, 330 East Kilbourn Ave, Milwaukee, WI 53202 Employee Benefits........................................... Mike Farrell David Insurance Agency, Inc., 1300 South Green Bay Road, Racine, WI 53406 Government Affairs............................................. Jeff Thiel R&R Insurance Services, Inc., P.O. Box 1610, Waukesha, WI 53187 Industry Relations............................................Janel Bazan Johnson Insurance Services, 525 Junction Road, Madison WI 53517 Membership & Marketing........................ Jamie Durocher Arlington/Roe & Co., 5530 Ryan Road, Houston, MN 55943
CE Classes......................................................... 6 Pre-licensing Schedule...................................... 8 Badger Mutual...................................................11 Robertson Ryan............................................... 15 Western National.............................................. 17 Berkshire Hathaway GUARD............................. 19 AAA................................................................. 20 West Bend....................................................... 25 Erickson Larsen............................................... 26 Secura............................................................. 27 JM Wilson........................................................ 28 JANUARY 2019 | 3
“First impressions are lasting impressions and I want to make a lasting impression with Keystone. Becoming a pioneer partner in Wisconsin was the perfect first step. We, along with our fellow agency partners, will champion the opportunity to grow and strengthen our agencies even more so through Keystone’s abundance of resources.” Greg Walker Walker Agency
Keystone is proud to welcome Walker Agency to Keystone’s growing community of Wisconsin partners! Recommendations from carriers and agency partners across the country placed them on the radar in the early stages of exploring Wisconsin. Partnering your agency with Keystone provides you the resources that generate growth and expand opportunities. In the face of an ever-changing industry, agents need unified stability and strength. Because independence works better together.
CONTACT FOR MORE INFORMATION: Elizabeth Schenk 888.892.5905 | eschenk@keystoneinsgrp.com ©2017 Keystone Insurers Group ® All rights reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.
INSURANCE BARTENDER
2019 WILL REDEFINE THE IIAW In last month’s column, I mentioned how the IIAW has been working to develop solutions for an agency’s technology, financial, workflow and automation challenges, including cyber security compliance. The IIAW has a righteous, principled mission which has established us as a loyal and trusted business partner for independent insurance agencies across Wisconsin, and even other parts of the United States. We have a unique business opportunity to revolutionize our business model while helping the independent agent do the same. These new, strategic areas of focus for our consulting practice will compliment the work we already do to assist agencies in addressing their strategic and operational deficiencies to reduce and mitigate E&O claims. For the last six months, we have been working to develop a new business model to increase our value proposition, fill an industry gap and create new recurring revenue streams for ‘BIG I’ state associations across the United States. Wisconsin has partnered
expertise to successfully improve/discover/adopt/integrate technology solutions and workflows to effectively and efficiently deliver solutions to best serve the modern consumer. Our collective goal is to develop this expertise internally to successfully build and own a collaborative solution to help our members successfully mitigate this pain point. Main Goal — Position BIG I State Associations, including IIAW, as the “go to” resource for all things IA technology, automation and workflow related.
with the BIG I in New York and Louisiana to help financially and strategically establish this new technology and automation-based business model. Traditionally, the ‘Independent Agency System’ can lack the
In order to build this comprehensive solution, we enlisted the services of an industry veteran, skilled in agency workflow, automation and technology. We are pleased to introduce Jerry Fox, who joined the IIAW team in November 2018.
Jerry is tasked with delivering a variety of products and services slated to launch later in 2019. First on the docket, Jerry has been working on reviewing New York’s most recent cyber security law changes slated to go into effect in March 2019. These changes will widely impact independent agencies across the United States (more on that in next Month’s issue), as many of our members will need to comply with this new law. But do not worry, the IIAW - with Jerry’s help - is currently working on researching, compiling and vetting solutions to ensure your agency will be compliant with this new law. Next, Jerry, the team at IIAW and BIG I NY & LA will be working WISCONSIN INDEPENDENT AGENT
on creating a customized consulting practice, focused on workflow/ processing, automation, and technology. If I had to put the concept into a graphic, it would look something like this: CONTINUED ON PAGE 7
> Matt Banaszynski is the CEO of the Independent Insurance Agents of Wisconsin. Contact him at matt@iiaw.com.
JANUARY 2019 | 5
CONTINUING
EDUCATION
IIAW ONLINE AND ON-SITE CE CLASSES JANUARY Date 7 8 10 10 14 14 15 16 17 23 24 28 29 30
FEBRUARY Date 4 5 5 5 6 7 11 11 13 19 19 20 21 25 27
MARCH Date 4 6 7 12 12 13 14 18 18 19 20 21 26 28
Course
Prelicensing Life & Health (onsite, Jan 7-10) Commercial General Liability Coverages E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Prelicensing Property & Casualty (onsite, Jan 14-17) Business Auto Coverages Workers’ Compensation Farm Liability Coverages Ethical Dilemmas ... Making the Right Choices It’s Not My Fault, or Is It? - Liability Issues in Personal Lines Policies Cyber Liability 10 Things Every Commercial Lines Agent Ought to Know When the Child Becomes the Parent - Aging Parents and Insurance Decisions Personal Auto Policy
Course
Prelicensing Life & Health (onsite, Feb 4-7) E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two E&O: Roadmap to Policy Analysis - Part One Condominiums Contractual Liability ... Separating Fact from Fiction Prelicensing Property & Casualty (onsite, Feb 11-14) Insuring Toys and Collectibles Life Insurance ... Benefits for the Living Insuring Trusts - Protecting Your Client’s Wishes Ethics - Walking a Straight Line Additional Insureds and Certificates of Insurance Fiduciary Liability, ERISA Bonding, and Employee Benefits Liabilit Dispelling the Myths of Workers’ Compensation Homeowners Hot Topics - What You Need to Know
Course
Prelicensing Life & Health (onsite, Mar 4-7) Top 10 Countdown of Personal Lines Coverages & Current Issues Protecting Your Most Valuable Asset E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Income After Retirement - Where Does the Money Come From? Business Auto Coverages Prelicensing Property & Casualty (onsite, Mar 18-21) Commercial Property Coverages - Exploring Key Concepts Ethics and Agent Liability It’s Not My Fault, or Is It? - Liability Issues in Personal Lines Policies Farm Vehicle and Equipment Coverages Lying, Stealing, New Types of Fraud: The Importance of Crime Insurance Businessowners Policy (BOP) ... Planning for the Unexpected
*TO REGISTER, PLEASE GO TO IIAW.COM*
Time
8:30AM-4PM 12-3PM 8-11AM 12-3PM 8:30AM-4PM 12-3PM 12-3PM 8-11AM 12-3PM 12-3PM 12-3PM 12-3PM 12-3PM 12-3PM
Time
8:30AM-4PM 8-11AM 12-3PM 4-7PM 8-11AM 12-3PM 8:30AM-4PM 12-3PM 12-3PM 8-11AM 12-3PM 12-3PM 12-3PM 12-3PM 12-3PM
Time
8:30AM-4PM 12-3PM 12-3PM 8-11AM 12-3PM 8-11AM 12-3PM 8:30AM-4PM 12-3PM 12-3PM 12-3PM 8-11AM 12-3PM 12-3PM
INSURANCE BARTENDER CONTINUED FROM PAGE 5
IDENTIFYING AND DELIVERING TECHNOLOGY SOLUTIONS Research Technology and Workflow Solutions: Data, Analytics, AI, Blockchain, Automation, Compliance
Financial Capital Data & Analytics
Incubate & Accelerate Tech: IA Associations, Agents, Brokers, Carriers, Automation Vendors, IT Companies
Agency Implementation: Additional tools and ongoing support
Relationships (Connect the Ecosystem)
Expertise
Operations & Technology Audit: Review Agency Financials, Workflows and Capabilities (tech, people, core values, strategic areas of focus)
Integrate and Train Staff
Present and Select Solutions
MATT ’S MI XO LO GY: Ru mc ha ta Ho t Co co a
These are exciting times for the Independent Agent as new technology seeks to change the way the consumer purchases and utilizes insurance. The IIAW will be here to assist our members to ensure they stay one step ahead. More information on this new and important member benefit will be provided over the course of the next few months with a big roll out at our annual convention in May. Stay tuned!
ON TAP Next in my series on how 2019 will be a year which redefines the IIAW, we will cover our InsurTech partner, DAIS, and how we are working collectively to empower the Independent Agent and arm them with the latest technological advancements and solutions.
WISCONSIN INDEPENDENT AGENT
INGREDIENTS
2 1/2 c. whole milk
1/2 c. Rumchata
1/4 c. granulated sugar
1/3 c. warm caramel
2 tbsp. cocoa powder
Whipped cream, for serving
1 tsp. pure vanilla extrac
t
6 oz. chocolate chips (or chopped bittersweet
chocolate)
Cinnamon sugar, for garnish Cinnamon stick, for garnish
DIRECTIONS Bring milk to a simmer in small saucepan over mediu m heat. Whisk in sugar and cocoa powder and stir until no lumps rem ain. Stir in chocolate chips and vanilla and cook, stirring occasio nally, until the chocolate is completely melted. Stir in Rumchata, then turn off heat. Pour caramel into a sma ll dish. Dip cups in the car amel to coat the rim. Pour hot chocolate into each glass, then top with whipped cream, a sprinkle of cinnamon sug ar, more caramel, and a cinn amon stick.
JANUARY 2019 | 7
FORE!
ERRORS & OMISSIONS
AVOIDING BOGEYS ON GOLF COURSE COVERAGE A golfer shouting “fore!” is a warning to others that trouble could be on its way – usually an errant ball headed in the wrong direction. For an agency looking to procure coverage for a golf course, there are several warning signs and red flags to look “fore” prior to placing these risks
There are roughly 35,000 golf courses in the world, 45% of which are in the U.S., with Florida having more than any other state. E&O experience tells us that both Mother Nature and mankind can wreak havoc on these expensive pieces of real estate, which are often underinsured. For an insurance agent, knowing the various types of exposures that require insurance and to what limit can help minimize or even avoid E&O claims. Damage to golf courses can be caused by flood, hail, ice, wind and even vandalism. Even so, an agent who is experienced in the placement of golf course coverage – something not many can say -- may wonder, ‘How much can it cost to replace a few trees and replant some grass?’ The answer, it turns out, is ‘quite a lot’. Recent hurricanes along the Gulf Coast as well as heavy flooding in the Northeast have caused extensive damage to entire golf courses, properties that average 75 acres, with some up to double that size. On that scale, the loss of trees, shrubs, grasses, sand in sand traps and landscaping can amount to millions of dollars in replacement costs – plus debris removal -- after a severe flood or storm. An agent ought to know the specifics of each WISCONSIN INDEPENDENT AGENT
golf course. Are the trees large and established or young and easily replaceable? What is the value of the shrubbery and landscaping? What grass types are there in the fairways, rough and greens? Is the sand in the traps from a local supplier or is it an expensive, imported ‘high-angular’ product? What type of irrigation system is in place or not in place? Knowing the make-up and value of the course is a must. In addition, knowing the climate, weather patterns and geographic location is essential in properly assessing exposure. Is the course in a coastal area? A flood plain? An earthquake region? Some carriers specialize in coverage for golf courses (private, public and semi-public,) country clubs and resorts. For the course itself, “Tee-to-Green Coverage” insures tee boxes, fairways, greens and other golf course property, including sprinkler systems, ball washers, signage, benches, cart paths, fountains, etc. Structures including clubhouses, golf cart sheds, restaurants, lounges, pro shops, and other amenities present their own set of exposures: Commercial Property, Commercial General Liability, Liquor Liability, Auto,
Crime and Inland Marine (golf carts, mowers, etc.) Golf course insurance packages can include these coverages as well as coverage for Directors & Officers liability, Business Income Loss, Employment Practices Liability Insurance, and Pollution coverage (arising from the runoff, etc., of the use of pesticide and herbicides). The need for stand-alone flood and (where appropriate) wind policies should be evaluated and discussed in detail with the proprietor. Exploring umbrella and excess flood coverages is very important, as well. In fact, special attention should be paid by an agent in the assessment of potential exposure for each of these risks. And yet, it is not uncommon for golf course policies to have just a $1 million limit, which would be woefully inadequate to cover damage sustained as the result of a massive natural event or catastrophic injury to a patron. Good luck finding a club to get you out of that sand trap.
> Julie Carter is an assistant vice president, claims specialist with Swiss Re Corporate Solutions and works out of the office in Kansas City, Missouri.
JANUARY 2019 | 9
ERRORS & OMISSIONS
DON’T WAIT TO TAKE ACTION Did you know that if you are a Swiss Re policyholder and you have a potential E&O incident, you should report it even before it’s a full-fledged claim? A typical agency reaction is that the mere reporting of a claim, or potential claim, could result in adverse underwriting action taken against the agency. Here’s what really happens: 1. Swiss Re will help you mitigate the situation before it becomes a claim. Swiss Re will advise and help you with legal documents if you want to pay a “good will” incident without submitting it as a claim. They can help you formulate a letter for your insured to sign that states your payment releases you from further obligation on the matter. In addition to helping with the payment of claims, Swiss Re will also provide feedback and support on how to best communicate with a client whom you fear may submit a claim. This is especially helpful in maintaining relationships and a positive reputation. 2. By Handling A Potential Claim Yourself, You Could Void Your E&O Coverage If you take action on a potential claim without
notifying Swiss Re, you are in violation of the policy contract. Should the incident escalate, and you then decide to report the claim, you could be denied coverage if you have already admitted liability, participated in settlement discussions, incurred any cost of expense, produced documents, provided a recorded statement, or given any deposition regarding any actual or alleged wrongful act. Remember that it is always to your benefit to report any and all claims/potential claims as soon as you are made aware of them to ensure they are handled quickly and effectively. 3. When Will A Claim Effect My Rates? As a general rule, if no reserves or payments are applied to a claim, no underwriting action will be taken. For the purposes of both the Risk Management Credit and the Claim-free Experience Credit, a claim is defined as “an
Errors and Omissions incident or situation for which any expense payment, any loss payment, or any loss reserve is made or established by or on behalf of the insured.” The credits are not affected until a claim reaches a certain threshold (plus any applicable deductible) based on Gross Annual Premium. The IIAW is here to help! We are here to answer your questions and encourage our agency members to take advantage of the services and resources available to them as a valued member of the Independent Insurance Agents of Wisconsin. Remember to always make us your first call with any questions in regard to your agency!
> Emily Mydlowski, Insurance and Member Services Coordinator at the IIAW. Emily oversees and administers the E&O, Data Breach, and EPLI programs for the valued members of the IIAW. Contact her today at emily@iiaw.com with any questions.
POLICY CHECKING SOLUTIONS AND
STRATEGIES FOR P&C INSURANCE INDUSTRY I recently ran across a situation that maybe borders on ethical issues and definitely makes policy checking a living nightmare. Here is the situation: A carrier issued a personal lines policy. One of the endorsements, an important endorsement, was the shotgun marriage of two different forms. They took page 1 of one form and page 2 of a different form and called it good. Different form numbers, different dates, and so forth. Think about all the issues this creates. I do not know how the carrier can track this. But how can a person catch these situations when policy checking? The differences were not minor. Furthermore, the carrier claimed ISO copyright but they changed the wording. In other words, this was not a standard form. It was a proprietary form hiding behind a fake copyright. I have several suggestions for agencies that come across these situations: You are facing a situation of carrier
incompetence or carrier malfeasance. I suppose it is somewhat better to think of the carrier as being staffed by good but incompetent people versus evil people, but either way, the agency is going to spend more time, more money checking policies and still will have an increased E&O exposure and possibly an unhappy client at claim time. Is the solution to just do business with higher caliber carriers? Depending on the situation, report the problem to the insurance department. I understand the need to avoid sticking your neck out. Maybe get a high-quality carrier to submit it for you or maybe you can do it anonymously or maybe you can get your state association to assist. But these incompetent companies are taking advantage of the good agents and good
carriers. If the issue is an ISO copyright, call ISO. I doubt they appreciate companies claiming an ISO copyright when they are not actually using ISO copyrighted forms. This is an opportunity. One of the great advantages a high-quality independent agent provides is actually policy checking. An insured going direct or buying insurance from an agent that no longer policy checks is getting a raw deal. This is one of the most important services an agency can provide. This is also an opportunity to advertise that you know your coverages and your companies are not doing sloppy cutting and pasting of documents. > Chris Burand is president of Burand & Associates, LLC.
None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.
10 | JANUARY 2019
WISCONSIN INDEPENDENT AGENT
BEWARE THE CHANGING WORLD ERRORS & OMISSIONS OF CGL EXCLUSIONARY ENDORSEMENTS Insurance Services Office (ISO) promulgates and maintains hundreds of Commercial General Liability (CGL) endorsements. Some enhance coverage, some reduce coverage. However, insurance carriers don’t necessarily limit their library of available endorsements to those provided by ISO; many carriers utilize and attach proprietary endorsements to alter even ISO forms. ISO endorsements are reasonably well understood due to their familiarity; but proprietary endorsements aren’t standardized or always familiar. And keep this in mind regarding proprietary endorsements, a product manager once told me that a proprietary endorsement can say just about anything the carrier wants it to say if it is just titled correctly. This means agents must read all endorsements – ISO and especially proprietary endorsements. “Duh!” You say. “Come on, Boggs; we all know this.” While I have little to no doubt most agents know to read endorsements, my question is this – do most agents actually read the endorsement language, especially proprietary endorsements? Or do agents take the easy route and depend on the title and ignore the language?
in the course of:
Randy Maniloff, an insurance attorney and publisher of the newsletter Coverage Opinions, recently wrote an article that ultimately highlighted the dangers that may be found in non-ISO endorsements. In his article, Maniloff cautioned that carriers are taking exclusionary language to extremes. Following is one example of such dangerous exclusionary endorsements:
(3) Any person who is employed by, is leased to or contracted with any organization that:
Bodily Injury to Employees, Workers or Contracted Persons of Insureds or Contracted Organizations
Arising out of an in the course of employment by that organization or performing duties related to the conduct of that organization’s business; or
This insurance does not apply to “bodily injury” to: (1) Any person who is an “employee”, “leased worker”, “temporary worker”, “volunteer worker” of you or any insured arising out of and
Employment by you or any insured; or Performing duties related to the conduct of your or any insured’s business; (2) Any person who contracted with you or with any insured for services arising out of and in the course of performing duties related to the conduct of any insured’s business;
Contracted with you or any insured for services; or Contracted with others on your behalf for services;
(4) The spouse, child, parent, brother or sister of any of those persons as a consequence of the “bodily injury” described in Paragraphs (1), (2) or (3) above. For the purposes of this exclusion, contracted with includes contracting with an oral or written contract. This exclusion applies: Whether the insured may be held liable as an employer or in any other capacity; and Whether the insured may have any obligation to share damages with or repay someone else who must pay damages because of the injury.
to Commercial Insurance that understands the Bar & Tavern Industry At Badger Mutual, we take commercial insurance personally. Visit our website today to learn more about a customized package of protection for your customers.
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Close examination of this endorsement shows this language is the CGL’s employer’s liability exclusion (2.e.) on powerful (and maybe illegal) steroids. Exclusion 2.e. removes coverage for injury to the insured’s employee (except in third-party-over situations). However, this proprietary endorsement excludes injury to the insured’s employees and injury to employees of anyother person or entity in a contractual relationship with the insured. Can such a broad exclusion be managed by any means? According to Maniloff, some carrier endorsements are excluding CGL protection for injury to any person on the job site – whether or not they are in a contractual relationship with the insured. Such an amazingly broad exclusion leaves the insured open to expensive coverage gaps. Apparently, agents are facing a coming new world of unimaginable exclusionary endorsements. If carriers continue to develop broad exclusionary endorsements to protect themselves from risk they perceive to be greater than that for which they are collecting premium, agents must be prepared to address the new gaps with their clients – and maybe complain to the departments of insurance. > Chris Boggs, editorialist for Virtual University
TECHNOLOGY
BEST YEAR EVER: HOW WILL YOU ACHIEVE YOUR PERSONAL AND PROFESSIONAL GOALS IN 2019? 2018 was a great year for me. My net business profit increased by 46%. My first book will be published in September 2019 (with a second book available in the spring of 2020). I have
updated the Best Year Ever content for 2019 and I want to give you an opportunity to check it out. As part of rolling out of the new course, he has created several free resources
well. It’s the perfect way to measure progress in your life. There’s also a quick video tutorial that explains how to use the tool. You will get access once you submit your email address.
spent more fun time with my wife Karen and our 6 (almost 7!) grandkids than ever. And I am having more fun than I deserve! Each of these started as a goal set at the beginning of 2018.
that will help as you begin your 2019 planning process.
Webinar Series
It was my best year ever. What about you? How many of your 2018 goals were you able to see completed? Achieving these goals would not have been possible without a system. For the last few years, I have taken time in early January to review the past year and think about what I want to accomplish by the end of the coming year. It is hard and at the same time a rewarding process.
For the last two years, I took the additional step of participating in the Business Accelerator Workshop (https:// businessaccelerator.com). The members of this group meet in-person four times during the year for an additional full day of in-depth training with Michael. We also take time to review our goals, measure our progress, celebrate our successes with each other, and find encouragement to keep at it when it gets hard. It has been a wonderful experience, and I will be participating again in 2019.
LifeScore™ Assessment Traditional Goal Setting Doesn’t Work
You have no doubt heard the business adage…
Thinking about what I want to achieve in the new year and strategizing on how to get there is deceptively tricky.
“What you don’t measure, you can’t improve.”
Fortunately, help is available. My friend Michael Hyatt is one of the best persons I know at setting, following, tracking, and achieving his personal and business goals. For several years I have enrolled in and actively used Michael’s Best Year Ever book and other online content to guide me through the process. Like many of you, I seemed to struggle to set my goals and then follow through on the daily, weekly, and quarterly steps necessary to achieve my goals. I continue to realize how important it is to not only establish goals but to have a process in place to follow through on achieving those goals. Michael has told me that he has completely
12 | JANUARY 2019
It’s certainly true in business, sports, and science, but what about other areas of your life? How do you measure progress in your life? With work or business, it might be a little more comfortable because we could use our income. But what about our health, or our relationships, or our intellectual and spiritual growth? Michael and his team have created a great tool that will help you measure where you stand in each of these areas. It is called the LifeScore™ Assessment (https://bestyearever.me/), and it allows you to measure progress in your life and work in less than 10 minutes — and you can get it free for a limited time. Once you discover your LifeScore, you can quickly see opportunities for growth and what is working
Michael will also be hosting a webinar: “How to Set Goals that Stick in 2019: 5 Proven Strategies to Overcome Goal Failure” that will be available in the next week. You can sign up to attend the webinar series (they are free) by going to https://bestyearever.me. If you access the LifeScore Assessment listed above, you will also receive an email notification with the dates and times the webinar will be available. At the end of the webinar, you will be provided with an opportunity to sign-up for the full digital course. Michael always has incredible bonuses for webinar attendees, even just for showing up! For that reason alone, it is worth signing up. I also understand that most of you reading will not be interested in paying to enroll in the course. However, I strongly encourage you to take advantage of Michael’s free material (the assessment and Webinar series) as a way to stimulate your thinking as you make your 2019 goals and plans. And, if you do sign up, please let me know so I can help you celebrate your success. Remember, what gets measured gets done. I hope that when you look back on 2019 in a year, you will be able to say it was your Best Year Ever! What process do you use to plan for the new year? > S teve Anderson provides information to the insurance industry on how they can use technology to increase revenue and reduce expenses. He speaks professionally to hundreds of agents and brokers each year at National Alliance events and at many state association conventions and technology forums on the future of technology, social platforms, and how insurance agents and brokers can expand their internet presence. WISCONSIN INDEPENDENT AGENT
TECHNOLOGY
ID FEDERATION FOR A MULTI-FACTOR AUTHENTICATION RESPONSE
Carriers, vendors, agents and industry organizations such as ACT are dedicated to solving a top pain point in user ID/password issues, industry volunteers from ID Federation reported. The nonprofit coalition is addressing the expanded multi-factor authentication, or MFA, cyber regulations that will be adopted in more states. MFA is a method to confirm a user’s identity after entering two or more pieces of evidence to an authentication mechanism. Factors can be something:
has also stepped up. Other states will be following since the National Association of Insurance Commissioners adopted a model act impacting agencies and their customer data. In response, ID Federation committees are working on new features, including requirements for automated provisioning and de-provisioning. ID Federation is also updating its Trust Framework to reference newer technologies, such as replacing SSL with TLS. It also is confirming that SignOn Once meets the MFA requirements.
They know, such as a PIN combined with an ATM bank card
Survey Results They have, such as a key, FOB or USB stick They are, such as biometrics or a fingerprint. “Passwords are intended to enhance security with unique credentials for every site. But they not only drastically slow business processing; they actually may create more risk”, said Mike Foy, independent agency owner and chair of the Network of Vertafore Users. “Credential management is a train wreck that is about to get even worse.”
How SignOn Once Works The founding organizations of ID Federation developed SignOn Once, a solution that allows one password for access to multiple sites. It meets the security needs of all segments of the insurance industry. It consists of a set of business, legal and technical standards. SignOn Once allows single, secure sign-on through federated identity management. Users can log in once and have access to multiple carrier systems. A unique identity token is generated for each user; the token is certified for authenticity and used for access to each participating organization (e.g., carrier). For agents, it’s free, easy and secure. Carriers and agents save time and cost for password resets. When an agency staffer leaves the firm, de-provisioning that user is instant.
The ID Federation recently conducted a survey of independent agents regarding passwords. Agents said that only 53% of carrier logon passwords expire. Some 51% maintain passwords on a spreadsheet, and 5% use sticky notes on their desks or computers to store passwords. This is a huge security risk, the speakers said. Foy said some of his carriers assign one user ID and password for his entire agency staff. And one of his carriers hasn’t changed logon passwords in 12 years. “You’re at risk if you can’t sign on securely,” said ID Federation volunteer Bruce Winterburn, with Vertafore. “When you log on in the morning into your management system, you will be logging in securely via a token. It’s a trusted sign-on. Agents don’t need any more stickynotes or password lists under their keyboards.” One ACT attendee said his agency deals with 75 carriers and brokerages. With 100 employees, that translates to having to manage 7,500 user IDs and passwords—an “onerous task.” Another said she manages passwords for 171 carriers and 215 users. Agents were asked to encourage their technology providers and carriers to join ID Federation. Vertafore and Applied already are certified, and any size vendor can go through the process as well.
“The process is seamless for the user, although there are multiple checkpoints and verifications happening ‘behind the scenes’,” said The Hartford’s Jim Rogers, ID Federation Chair.
The number of carriers getting involved is growing. Others were urged to follow up, especially with MFA concerns. “We think there is going to be a tipping point very soon” with SignOn Once, said Winterburn. “And with MFA, it just got worse if you’re doing nothing.”
MFA is now a regulatory requirement in New York. South Carolina
> IIABA ACT
WISCONSIN INDEPENDENT AGENT
JANUARY 2019 | 13
COMMENTARY FROM COUNSEL
WISCONSIN FEDERAL COURT REQUIRES HEALTH COVERAGE OF MEDICALLY NECESSARY GENDER REALIGNMENT PROCEDURES You likely saw news coverage in September of a case that drew national attention regarding the interplay between health benefits and gender realignment procedures. The case—Boyden v. Conlin—specifically addressed whether excluding medically necessary surgical and hormonal gender realignment treatments from health plans was discriminatory under Title VII of the Civil Rights Act and the Affordable Care Act (ACA). Ultimately, the court concluded that it was, effectively barring exclusion of those coverages. Some background information and the context of the case may be helpful in looking at what it bodes for the future.
Gender Realignment and Insurance Coverage According to a 2016 study, the latest for which data appears to be available, approximately .6% of the U.S. population identifies as transgender. In Wisconsin, that number is about .43%. People who are transgender identify as the opposite gender as their birth—otherwise known as natal—sex. A smaller subset of the transgender population suffers from gender dysphoria, a widely recognized psychiatric condition resulting from the misalignment of physical sex and gender identification. Its symptoms include severe anxiety, depression, self-harm, and suicidal ideation. Organizations such as the American Medical Association (AMA), the America Psychiatric Association (APA), and the American Counseling Association have recognized that surgical/hormonal gender reassignment treatment is often medically necessary to treat gender dysphoria. From a health insurance standpoint, many insurers categorically exclude surgical and hormonal gender realignment treatments—even when deemed medically necessary by an insured’s treating provider.
Boyden Boyden involved two University of Wisconsin – Madison employees (collectively referred to as “Plaintiffs”). Both Plaintiffs’ natal sex was male, but each identified as female. Both were clinically diagnosed with gender dysphoria, and both of their doctors deemed gender realignment surgery medically necessary to treat the dysphoria. This brings us to an important point: Boyden only applies to medically necessary gender realignment surgeries, as determined by a treating physician. In other words, it does not require insurers to cover realignment surgeries for cosmetic reasons. Purely cosmetic surgeries—for gender realignment or otherwise—can continue to be categorically excluded. Plaintiffs, as UW-Madison employees, were covered by the State’s health plan. Each year, the State determines which benefits it will offer. This decision is ultimately made by the Government Insurance Board (GIB), which is a board within the Employee Trust Fund (ETF) executive department. Typically, the ETF makes coverage recommendations to the GIB, which it then accepts or rejects. ETF then implements the benefit decisions of the GIB. In 1994, the GIB voted to exclude surgical and hormonal gender realignment procedures. In June 2016, ETF concluded that the exclusion violated the anti-discrimination provisions of the ACA and recommended to GIB that they remove the exclusion. In July 2016, GIB voted to remove the exclusion. However, in August 2016, GIB was contacted by the Wisconsin DOJ and asked to reconsider removing the exclusion.
14 | JANUARY 2019
Thereafter, GIB caught wind of a pending Texas federal court case in which the court ordered an injunction against enforcing the ACA anti-discrimination regulations. On December 30, 2016, GIB held an emergency meeting and voted to reinstate the exclusion. On February 1, 2017, the reinstated exclusion became effective. The Plaintiffs claimed that categorically excluding medically necessary gender realignment surgical and hormonal treatment was (1) sex-based discrimination in violation of Title VII of the Civil Rights Act of 1964; (2) sex-based discrimination in violation of the ACA; and (3) sexbased discrimination in violation of the Equal Protection Clause of the Fourteenth Amendment. The court agreed with Plaintiffs on all three counts (please note, however, that Fourteenth Amendment claims are unique to state actors). With respect to the Title VII and ACA claims, the court first noted that the discrimination standard was the same—indicating that a violation of one is a violation of the other. It then categorically rejected the Defendants’ arguments that the exclusion was not based on sex, but rather the type of procedure, i.e. cosmetic. According to the court, the exclusion “denie[d] coverage for medically necessary surgical procedures based on the patient’s natal sex” and was therefore a “straightforward case of sex discrimination.” The court concluded: In other words, the Exclusion entrenches the belief that transgender individuals must preserve the genitalia and other physical attributes of their natal sex over not just personal preference, but specific medical and psychological recommendations to the contrary. In this way, defendants’ assertion that the Exclusion does not restrict transgender individuals from living their gender identity is entirely disingenuous, at least for some portion of that population who will suffer from profound and debilitating gender dysphoria without the necessary medical transition.
Impact Long term, this seems like a battle that may be destined for the Supreme Court—through the Boyden case or otherwise. In the interim, Boyden has already been appealed to the Seventh Circuit Court of Appeals. It is important that the Boyden court found that Wisconsin’s exclusions violated both the ACA and Title VII—to be legal, an appeals court would have to find it violated neither. The Seventh Circuit has recent precedent supporting the Boyden decision, on top of the change in GIB policy possibly rendering the issue moot, thus it would be surprising if Boyden is overruled by the Seventh Circuit. If the issue makes its way to the Supreme Court, through the Boyden case or another, given the Court’s current composition, it would not be surprising if it ruled differently.
> Josh Johanningmeier, Godfrey and Kahn, IIAW Legal Counsel WISCONSIN INDEPENDENT AGENT
REPUBLICANS END YEAR GOVERNMENT AFFAIRS WITH LAME DUCK EXTRAORDINARY SESSION Republican leaders in the Wisconsin legislature recently convened a “lame-duck” extraordinary session to end the year with a slew of law changes - some innocuous, some not. Governor Walker signed the measures into law as one of his final official acts before leaving office. Meanwhile, incoming Democratic Governorelect, Tony Evers, will be sworn-in as Wisconsin’s 46th Governor on Monday, January 7, 2019 (visit https://ourwisconsinourvalues.org/ for inauguration events). For the past month, the Evers transition team has been working in overdrive on forming his cabinet and office personnel. Approximately, 350 politically appointed positions will be vacated throughout state government, including several at the Office of the Commissioner of Insurance (OCI). It will be a daunting task for the transition team to identify willing, capable, and qualified individuals to fill these positions as Democrats have been out of power for almost a decade. Evers will need to act swiftly to shape his administration for the next four years and be ready to govern after being sworn into office. As far as the extraordinary lame-duck session goes, these are not unusual events for either party following an election, despite what you may have heard or read. But this particular session admittedly was extensive in content and
some of the issues were not without controversy or public scrutiny. Next year, starting on January 7th, we begin a new two-year legislative session with the continuance of a Republican controlled Legislature and a new Democratic governor. It will be the first time Wisconsin has had divided government in nearly a decade and there will be plenty of debate and disagreement, maybe even possibly some remote bi-partisanship. Most of 2019 will be centered around the passage of the biennial state budget bill that will be introduced by the Governor sometime in the month of February. It remains to be seen if the Legislature takes the traditional path of working off the Governor’s proposed budget or takes a different tact, by developing their own plan. The legislative leadership and Governor will face a true test in the upcoming session in the art of negotiation and whether or not they can find common ground and work together to move the state forward. Some final thoughts from government affairs as we close out 2018...a special thank you to
Governor Scott Walker, his capitol staff, Lt. Governor Rebecca Kleefisch, Commissioner Ted Nickel and his agency staff, and the entire outgoing Walker administration for their public service, professionalism, and commitment to our industry and state. Serving in public office, while a noble profession, can be a hard grind for those that do it and they sacrifice many hours and days away from their families for not much pay. As Governor Walker held his final cabinet meeting recently, it made me reflect on how thankful our industry should be for his leadership and all of the individuals on his team who took the time to serve our great state. We wish them the very best in their future endeavors and hope our paths will cross again. Lastly, thank you to the IIAW membership for the wonderful privilege and trust to represent you at the state capitol and my sincere best wishes to each and every one of you for a joyous holidays. > Misha Lee, IIAW Government Affairs Lobbyist
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Learn More: Chris Illman I cillman@robertsonryan.com I 800.258.0277 I www.RobertsonRyan.com
WISCONSIN INDEPENDENT AGENT
AGENCY OPERATIONS
BIG I EMPLOYEE BENEFITS
If we took a poll, I bet that the majority of people would think that the most common causes of disability are accidents or work injuries. I have news for you, it’s not.
Surprisingly, illnesses like cancer, heart attacks and diabetes are the leading cause of long-term disability - approximately 90% of disabilities are caused by illnesses rather than accidents. Disability is a widespread problem that continues to grow. According to the U.S. Census Bureau more than 30 million Americans between the ages of 21 and 64 are disabled. A few facts for consideration:
>A lmost one-third of Americans entering the work force today (3 in 10) will become disabled before they retire. Social Security Administration, Fact Sheet Jan 2009
>O ver 51 million Americans - 18% of the population - classify themselves as fully or partially disabled. Social Security Administration, Fact Sheet Jan 2009
> I n June of 2010, there were nearly 2.5 million disabled workers in their 20s, 30s, and 40s receiving SSDI benefits. Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov Statistics show that working Americans routinely underestimate their own risk. Most working Americans estimate that their own chance for experiencing a long-term disability are substantially lower than the average workers, according to a research report by the CDA. That same report shows that 64% of wage earners believe they have a 2% or less chance of being disabled for 3 months or more during their working career - the actual odds for a worker entering the workforce today are about 30%. Don’t take the chance that it won’t happen to you. You insure your car, your
home, your valuables - why not your “income”? Aside from health insurance and retirement plans, short and long-term disability insurance is one of the most valuable benefits an employer can offer to their employees. The Big “I” Employee Benefits program can help. Included as a member benefit, we offer access to group short and long-term disability, group life insurance and dental programs. All benefits are provided through The Guardian Life Insurance Company who has a reputation for being a leader in the insurance industry. Visit us on the web at www.iiaba.com or contact Christine Muñoz at christine.munoz@iiaba.net for more information.
> Christine Muñoz, IIABA
EMERGING LEADER SPOTLIGHT Each month, we will be featuring one of the active members of our Emerging Leaders Committee. Our January Emerging Leader is Brandon Leitch from Leitch Insurance Agency in River Falls, WI. Name/Where From/What agency do you work for? Brandon Leitch, River Falls, WI, Leitch Insurance Agency How long have you been on the Emerging Leaders committee? 2019 will start my 5th year as a member How did you hear about the Emerging Leaders Committee? At the IIAW Sales and Leadership Conference several years back, my brother Ryan was helping recruit members for the committee – it sounded like a great opportunity to become more involved in the Big I. Why did you choose to become active with the Emerging Leaders committee? Growing up I remember my dad attending the ‘Young Agents’ convention and being active within the committees at that time – I figured that if I’m following the same path, I’d find the same value in the networking, training, etc. What is your favorite EL event or activity that you’ve done with the EL group? Though every conference has been a good time, I really did enjoy the PriSim event and some of the past Fall Planning events most. PriSim was a great mix of risk, competitiveness, attention to detail, and required you to learn all the while. The Fall Planning event at Milford Hills was also a highlight – planning and networking at a hunting club was a really cool idea.
16 | JANUARY 2019
Why should a new agent join the EL committee? If you’re starting out in this profession, it’s the most beneficial step I can imagine to better your career. And even if you’ve been around a few years, it’s a great way to keep your pulse on the industry and learn how other agents are handling their business. What is your spirit animal? Lion – they use their power for the good of the jungle (e.g. The Lion King) and sleep for most of the day. Where is your favorite vacation spot? My favorite spot so far has been San Diego, but I’m hoping to plan a winter destination next time – maybe skiing in Quebec or out west. Do you have any pets? Yes, a one year old black lab named Rome. It’s been a blast having a dog of my own but also can’t wait for the puppy years to be over with. What is one professional goal for you in the next 3-5 years? Growth and expansion are vital, but the goal I think about most would be upping the efficiency of my workflow and finding new ways to integrate helpful technology into our office to enhance the experience for both the producer and the consumer. WISCONSIN INDEPENDENT AGENT
PLACED
AGENCY OPERATIONS
14 WAYS TO GET MORE WORK DONE
Almost everyone faces the challenge of doing more in less time— and that’s not about to change anytime soon. In the past, those with lots of experience fared well. But not today. Experience holds us back—it only has value in a never-changing environment. Expertise is what prepares us for what we must do next so we can face the future with confidence.
limit” or “I’m not paid to do that.” Everyone feels that way at times. But if we stay in our comfort zone, we can count on dismal days ahead.
The challenge, then, is transitioning from experience to expertise. Here are 14 ways to stop looking to the past for answers—and get more work done while you’re at it:
8) Be present. The average employee spends just under eight hours a week on personal stuff while at work, most of it involving email and social media. For those ages 18-34, add another two hours a week to that average, according to a survey from staffing firm Office Team. That’s a whole day of the week of not being present.
1) Adopt the right mindset. Experience short-circuits the thinking process. We go from zero to 60 in a split second and tear into tasks because we’ve been there before and think we know what to do. When entering uncharted territory, put that experience aside and approach tasks with an analytical mindset.
9) Ask questions. Have you ever started a task only to discover you’re on the wrong track? Most of us have—too many times. It occurs when we’re too sure of ourselves or too embarrassed to ask questions. Asking the right questions is a sign that your thinking about what you’re doing.
2) Give yourself time. It’s easy to deceive ourselves into believing we do our best work in a crisis or at the last minute. But where does that leave us when we run out of time? The answer: in trouble, making excuses and feeling overwhelmed.
10) Look for possibilities. Instead of just doing your work each day, take it to another level by interacting with it to improve it. Ask yourself: Is it clear? Is it complete? Will the recipient understand it? Is it necessary? Will it make the right impression? What have I missed? Should I start over? Is it time for another set of eyes?
3) Work on it, then let it sit. The best solutions rarely, if ever, occur on the first attempt. Whether it’s writing a report or working on a project, the human mind needs noodling time to work in the background without pressure. Remember, everything can be improved.
11) Have clear goals. Ask yourself what you want to accomplish today, then add another target for the coming month, and so on. When you know where you’re going, the tedium fades.
4) Avoid confrontations. This isn’t easy, particularly since we all seem to possess an urge to be right. When you come into contact with an opposing view, consider it a signal to take a closer look at your own views rather than pushing back to regain balance.
12) Eliminate confusion. We may not be in a position to control the confusion around us, but we can avoid adding to it. Make sure your messages are accurate and complete, update address books and other files, and meet deadlines so you don’t leave others waiting.
5) Second-guess yourself. Why are we always surprised when things go wrong? Ask yourself “what if” questions to foresee possible outcomes. Then, when asked about alternatives, you can say you considered various options and explain why you chose this one.
13) Raise your standards. Others respond to us based on how they view us. Do they see you as someone who gets things done, takes quality seriously and demands a lot from yourself? Make a conscious decision about how you want to be perceived.
6) Learn something new. If you can do your job without thinking about it, you’re probably bored and underproductive. The human mind gets moving and stays active by coming up with new ideas, making improvements and solving problems.
14) Take on a challenge. Nose around to see what you can find, drop a few hints, even raise your hand. But be sure it’s something you want to sink your teeth into. If it is, you might have a great time doing it.
7) Go beyond what’s expected of you. It’s easy to say, “I’ve reached my
> John Graham of GrahamComm is a marketing and sales strategy consultant and business writer.
18 | JANUARY 2019
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RISKY BUSINESS
SLEEP SOUNDLY IN 2019
Do you ever wake up in the middle of the night thinking about work? Maybe you have a hard time falling asleep because you left something unfinished, or forgot to do it, or need to remember to take care of it when you get to the office. If you can’t identify with any of these statements, let’s go to lunch so I can learn your secret. If you are nodding your head as you read this, perhaps you can take some comfort in knowing you’re not alone. I am not promising to cure insomnia, but I can offer some suggestions for easing operational concerns. Here are a few quick tips and activities to get you on the path to a better night sleep (hopefully): 1. Be honest with yourself. Whether you are looking at your individual performance or the opportunities that exist within your team or organization, don’t make excuses or minimize your thoughts. If the first thing you thought about was how you have been meaning to offer more training on certificates of insurance, don’t write it off and say you will get to it. Acknowledge the fact that it has not been done and that it needs to be prioritized because it could lead to a significant E&O claim. WISCONSIN INDEPENDENT AGENT
2. Talk to staff. Do you want to know where there are opportunities to improve your operations? Then ask the people who are completing day-to-day tasks. Do you have someone in your office who seems to be negative about things all the time? Listen to them. They might be the only person who will be honest with you about what everyone else is thinking. It shouldn’t come as a surprise to anyone that leadership has an idea of how things work, and the reality is something different. Ask the questions and make the changes in 2019. Listen to what employees have to say. 3. Invest in education. Whether it’s for yourself, a team or the whole office, feeling educated is feeling empowered. One of my favorite quotes is from Virgin Mobile founder Richard Branson: “Train people well enough so they can leave, treat them well enough so they don’t want to” Go ahead. Read it again. It’s no secret that
insurance professionals tend to move around within the industry. You might be one of those people. What would it take to get you to stay? Perhaps if you were given the right tools that would make you feel valued you wouldn’t even put a thought to those recruiters who are stalking your LinkedIn page. 4. Seek out resources. Don’t try to make improvements on your own. There is a good chance you are losing sleep because some part of you recognizes that this is not your area of expertise, or you just don’t have the time to dedicate to it. Whatever change you’ve identified, reach out to the IIAW to find a solution or resource. If it is not something the IIAW can provide, we’ll help you find a trusted partner to work with. You are not alone, and the IIAW wants to be your first call when you have a question or are facing an obstacle. Hey, it’s 2019. Get some sleep. > Mallory Cornell is the Director of Risk Management for the Independent Insurance Agents of Wisconsin.
JANUARY 2019 | 21
News Members in the
KATHY SCHWARZ CALLS ON TRADITION TO CREATE THE FUTURE OF SCHWARZ INSURANCE Schwarz Becomes President and CEO of Nearly Century-Old Local Business An active employee since 1987 and a co-owner of the company since 1993, Kathy Schwarz has been named by the Schwarz Insurance Board of Directors as the President and CEO of the organization. As an owner she will lead the 95-year-old company along with business partner Seeman Holtz Property & Casualty, Inc.. Partnering with agencies across the country, Seeman Holtz is one of the fastest growing agencies in the nation with an expanding presence in the Midwest. Schwarz clients will experience additional opportunities and increased market share in Wisconsin. Schwarz feels the core philosophies and unmatched client appreciation Seeman Holtz has, will enhance the Schwarz Insurance client experience. Based in Prairie du Sac, Schwarz Insurance is a full-service independent insurance agency administering more than $100 million in premiums for business, home, auto, health, life, employee benefits and agribusiness. The agency is also a recognized leader in ACA compliance and education. “I am so grateful that Kathy will be taking over leadership of the company,” shares retired second-generation owner and Kathy’s uncle, Bob Schwarz. “Kathy grew up in the business. She knows the insurance industry from the inside out and is a great salesperson because she truly cares about people and their success. I have absolute confidence in her!” Like her grandfather, father and uncle before her, Schwarz considers everyone who works at Schwarz Insurance part of her extended family. “I’ve always been proud of the fact that both employees and clients stay here forever,” Kathy says. “The incredible loyalty
22 | JANUARY 2019
makes everyone here feel like family. I’ve known these people my whole life. There are people who have worked here since I was a teenager. The Schwarz family is much bigger than the people who share my last name.” As a staple in the local community for nearly a century, Schwarz believes that those relationships are the backbone of what makes Schwarz Insurance successful. As President and CEO of Schwarz Insurance, Kathy joins a small but elite group of women business owners and leaders in this country. According to AmericanProgress.org, women hold only 14.6 percent of executive officer roles and only 4.6 percent of Fortune 500 CEO positions despite earning almost 60 percent of both undergraduate and master’s degrees. “I’m so grateful for this opportunity to lead the family business,” shares Schwarz. “My father used to talk to everyone with the same level of respect. He unknowingly taught me a lot about self-worth and not thinking about the labels that might be placed on me. I prefer to look for what unique gifts and perspective each person brings to the table.” As Schwarz examines new ways to meet the needs of the people and the businesses they serve, she hopes to grow the company and hire additional employees. “My philosophy has always been to hire the smartest, most sincere people I can find,” says Schwarz. “I like to take the best of our corporate values to support adaptations to the business with modern ideas and technologies. I will never give up face-to-face communication, but we’ll look for additional ways to grow and stay relevant with customers of all ages. Like my grandfather, father and uncle, we will continue to evolve and mature as a business, but only in ways that serve our original purpose and tradition of taking care of people.” Founded in Prairie du Sac in 1923, Schwarz Insurance is proud to be in its third generation of family ownership. The agency has grown into one of Wisconsin’s leading independent insurance agencies, administering more than $100 million in premiums. A full service independent insurance WISCONSIN INDEPENDENT AGENT
group, Schwarz Insurance offers solutions for your business, home, auto, agribusiness, life, and health. For additional information, please visit www.schwarzins.com or contact Kathy Schwarz at (608) 644-8556.
Acuity Employees Award $500,000 in Support to Charitable Organizations
Conquer Cancer Foundation: Acuity President and CEO Ben Salzmann (right) presents a check to Dave Wiemer, Philanthropic Officer at Conquer Cancer Foundation. Conquer Cancer Foundation received over $120,000 from Acuity, while five other charities received a total of nearly $380,000.
company’s ongoing support to the community throughout the year. Guided by the Acuity Charitable Foundation, Acuity contributed over $1 million in 2018 to worthy organizations. Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 100,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 27 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,300 people.
Acuity Gift Drive Brightens Holiday for Those in Need
Twelve years ago, Dave Wiemer received news that no husband wants to hear.
“On this exact date, December 12, my wife woke me at 4 in the morning in tears with intense abdominal pain. I rushed her to the emergency room, where ultrasounds revealed she had ovarian cancer. She was just 25,” Dave said, speaking to Acuity employees gathered for a Town Hall Meeting held at the insurer’s headquarters and live-streamed to employees across 27 states. Fortunately, Dave’s wife recovered and has been cancer free for nine years. Unfortunately, he lost his father to brain cancer. However, both of these experiences have fueled Dave’s passion for supporting cancer research. Today, he is Philanthropic officer of Conquer Cancer Foundation, an organization dedicated to funding breakthrough research for patients of all types of cancer. And on December 12, Dave accepted a donation of over $120,000 from Acuity to support the foundation’s mission. “Cancer happens to people at every age every day,” Dave said. “Funding cancer research provides treatment for patients who haven’t even been diagnosed yet. Your support makes sure patients have access to breakthrough treatments.” The $120,000 donation was part of a total $500,000 contributed by Acuity to six different organizations. In addition to the Conquer Cancer Foundation, organizations included Meals on Wheels, Mental Health America, Safe Harbor, The Salvation Army, and Sharon S. Richardson Community Hospice. Distribution of the $500,000 was directly determined by Acuity employees, who made the allocation through their votes at a Town Hall Meeting. This is the sixth consecutive year that Acuity employees have directed a special year-end contribution by the Acuity Charitable Foundation in support of the company’s philanthropic efforts.
From left to right, members of Acuity’s Employee Activity Committee (EAC) who organized the gift drive are Kate Jaehnke, Brittaney Prosser, Corbin Mosher, Sanja Boor, Sarah Horne, and Nick Laurie.
Acuity Insurance’s Employee Activity Committee (EAC) wrapped up its 2018 gift drive in connection with the Sheboygan County Department of Health and Human Services.
Acuity staff members donated over 1,500 toys, clothes, and household items for children and adults throughout the county, as well as over $750 in cash and gift cards. “We are incredibly proud of the way our staff continues to respond to the needs of the community,” said Ben Salzmann, Acuity President and CEO. “We extend our thanks to everyone for their tremendous outpouring of support that is making a difference for individuals and families during this holiday season.” In addition to their support for Acuity’s gift drive, recently the company’s employees were also responsible for distribution of $500,000 to six different charitable organizations, with the allocation made through employee voting at the insurer’s December 12 Town Hall Meeting. This is the sixth consecutive year that Acuity employees have directed a special year-end contribution by the Acuity Charitable Foundation in support of the company’s philanthropic efforts. Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 100,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 27 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,300 people.
We’re pleased to share that Riordan & Scully Insurance Service LLC is joining Robertson Ryan & Associates January 1, 2019.
“One of my favorite expressions is, ‘Be kinder than necessary because everyone you meet is fighting some kind of battle,’” said Ben Salzmann, Acuity President and CEO. “Being kind and supporting our community is a priority for Acuity, particularly at the end of the year when charitable organizations battle with higher need for their services while facing budget constraints.”
Riordan & Scully is a thriving independent insurance agency based in Oak Brook, IL. Owners Thomas Riordan, Bill Riordan, Patrick Scully and John Scully have built successful careers in the insurance industry serving business leaders and personal lines clients for many decades. In 2006, the Riordans and the Scullys merged their long-standing family agencies. The newest addition to their firm,
The Conquer Cancer Foundation received the largest allocation. The other five groups each received donations ranging from $50,000 to $90,000. Acuity’s special $500,000 contribution adds to the
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representing the fourth generation, is Kate Scully Krebsbach. Riordan & Scully will continue to operate under their current name and brand as an affiliate of Robertson Ryan & Associates during this time of transition. They will remain at their present office location in Oak Brook, IL and all 13 of Riordan & Scully team members will be part of Robertson Ryan & Associates in the Riordan & Scully Group. As you already know, at Robertson Ryan our Agent Owners have an entrepreneurial mindset, and as an agency we provide them the bigger structure and added tools to help them remain successful, provide industry leading service to their clients, and of course grow! We are committed to our Agent Owners and have structured Robertson Ryan to be an agency for agents. Watch for more growth in 2019 and feel free to connect us with any interested agents or agencies. We’re elated to have Tom, Bill, Patrick, John, Kate and their entire team join Robertson Ryan.
Badger Mutual Insurance Board appoints Kathy Bubeck as Corporate Secretary MILWAUKEE – Kathy Bubeck has been appointed as the corporate secretary of the Badger Mutual Insurance Company Board effective January 1, 2019. Kathy Bubek
Bubeck is the vice president of claims for Badger Mutual Insurance. She began her career with Badger in 1985. About Badger Mutual Insurance Company Badger Mutual Insurance has been headquartered in Milwaukee since 1887, providing a range of personal and commercial insurance products across 10 states:
24 | JANUARY 2019
Wisconsin, Illinois, Michigan, Iowa, Minnesota, Nevada, Idaho, Utah, Wyoming & Arizona. For more information, go online and visit https:// www.badgermutual.com/.
Badger Mutual Insurance names Dan Nigro as its next President
Dan Nigro
MILWAUKEE – Dan Nigro has been named President of Badger Mutual Insurance Company effective January 1, 2019. Nigro succeeds David Kane, becoming Badger’s 10th President in its 131 years of operation.
“Dan does amazing things for Badger Mutual Insurance that resonate throughout all aspects of the company and its operations,” said Kane, who will retire in 2019 and continue to serve on the board. “He has recognized the importance of balancing what is in the best interest of the company and our agency force. He will continue in all respects to do great things for Badger.” Nigro began his career with Badger Mutual Insurance as a software engineer in 2005. He expanded his role in 2011 with responsibilities in marketing. Nigro worked his way up to the role of executive vice president after serving as the senior vice president and the vice president of information technology and marketing. In addition, Nigro was appointed Corporate Secretary in 2014 and was elected to the Board of Directors in April 2018. “I am honored to have been chosen to lead this company comprised of extremely talented employees and dedicated independent agents,” said Nigro. “Together, we will continue to build upon our strong foundation of superior insurance protection by leveraging cutting-edge technology, compassionate service, and multi-stakeholder initiatives. With our greatest asset - our heart - as the driving force, the future is looking very bright for the Badger Mutual family.” Nigro is a Milwaukee native who has been married for 20 years to his wife, Kris, and is the father of three children. About Badger Mutual Insurance Company Badger Mutual Insurance has been headquartered in Milwaukee since 1887, providing a range of personal and commercial insurance products across 10 states: Wisconsin, Illinois, Michigan, Iowa, Minnesota, Nevada, Idaho, Utah, Wyoming & Arizona. For more information, go online and visit https://www.badgermutual.com/. WISCONSIN INDEPENDENT AGENT
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