Wisconsin Independent Agent January 2020 Magazine

wisconsin INDEPENDENT AGENT JANUARY 2020

Your

Small Commercial Solution Is Ready for You

wisconsin INDEPENDENT AGENT CONTENTS 3............. Insurance Bartender Partnership with DAIS- Fee Small Commercial Portal 5............. InsurCon2020 Schedule of Events and Details 8............. Errors & Omissions E&O Considerations when your business undergoes a transition 11........... Virtual University Understanding Liquor Liability Coverage 14........... Risky Business The Best Coverage from Insurance Experts: Digital Marketing E&O Exposures 15........... Virtual University Insurance Premiums Versus the Total Cost of Risk…

17........... Virtual University Ask an Expert 21........... Virtual University How Many Different Values Can Property Have?

23........... Agency Operations How to Write Impactful Job Descriptions 24........... Government Affairs State Lawmakers Push to Overhaul Laws for Unlicensed and Uninsured Drivers 25........... Agency Operations 3 Tips to Inspire and Motivate Employees During Performance Reviews 29........... Members in the News 31........... Food for Thought

ADVERTISERS & INFORMATION 32......... AAA Wisconsin 4........... ACUITY 26......... Badger Mutual 10......... Berkshire Hathaway/Guard 13......... Keystone 19......... IIAW Prelicensing Classes 20......... IIAW CE 16......... Iroquois Group 26......... JM Wilson 28......... Penn National Insurance 12......... Robertson Ryan & Associates 27......... Secura Insurance 16......... The IMT Group 7........... West Bend 9........... Western National Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2019 For information on advertising, contact Ashley Hale, 608.210.2977 or ashley@iiaw.com.

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wisconsin INDEPENDENT AGENT

Independent Insurance Agents of Wisconsin 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2019-2020 EXECUTIVE COMMITTEE President: Chris Costakis Midwest Insurance Group, Delafield President-Elect: Darrel Zaleski Spectrum Insurance Group, Eau Claire Secretary-Treasurer: Marc Petersen A merican Advantage - Petersen & Assoc., Inc., New Berlin

Chairman of the Board: Jason Bott Robertson-Ryan & Associates, Milwaukee State National Director: Steve Leitch Leitch Insurance, River Falls

2019-2020 BOARD OF DIRECTORS Mike Ansay Ansay & Associates, Port Washington Nick Arnoldy Marshfield Insurance Agency, Inc., Marshfield Mike Harrison R&R Insurance Services, Inc., Waukesha Ryan Leitch Leitch Insurance, River Falls Aaron Marsh Marsh Insurance Services, Inc., Rice Lake Joanne Lukas Szymaszek Johnson Insurance Services, LLC, Racine Chad Tisonik HNI Risk Services, LLC, New Berlin Andrea Nelson Unisource Insurance Associates, LLC, Wauwatosa

IIAW STAFF Matt Banaszynski Chief Executive Officer 608.256.4429 | matt@iiaw.com Mallory Cornell Vice President and Director of Risk Management 608.210.2975 | mallory@iiaw.com Kim Kramp Association and Agency Accounting Manager 608.210.2976 | kim@iiaw.com Trisha Ours Director of Insurance Services 608.210.2973 | trisha@iiaw.com Ashley Hale Graphic Designer and Creative Marketing Manager 608.210.2977 | ashley@iiaw.com Evan Leitch Technology and Risk Advisor 608.210.2971 | evan@iiaw.com Jennifer Petersen Membership Engagement and Events Coordinator 608.210.2972 | jennifer@iiaw.com Diana Banaszynski Education Coordinator 608.256.4429 | diana@iiaw.com

On The Cover...

For the last few years, the IIAW has been working closely with insurance technology company DAIS (“DAY-es”). In December, the Independent Insurance Agents of Wisconsin (IIAW) and the Minnesota Independent Insurance Agents & Brokers (MIIAB), announced a partnership to provide their member agencies with their own free customized portal that they can use to write small commercial business more efficiently and profitably online.

Members of the IIAW that are interested in learning more or signing up to set up their free small commercial portal should visit www.IIAW.com/DAIS or call the IIAW office at 608-256-4429 and talk with Matt or Evan.

INSURANCE BARTENDER

PARTNERSHIP WITH DAIS TO OFFER MEMBERS NEW, FREE SMALL COMMERCIAL PORTAL For the last few years, the IIAW has been working closely with insurance technology company DAIS (“DAY-es”). In the June edition of the Wisconsin Independent Agent, we featured DAIS and how they are working to empower agents to win in a bricks and clicks marketplace. In December, the Independent Insurance Agents of Wisconsin (IIAW) and the Minnesota Independent Insurance Agents & Brokers (MIIAB), announced a partnership to provide their member agencies with their own free customized portal that they can use to write small commercial business more efficiently online.

Membership in the IIAW has never been more important. This new member benefit will directly increase an agencies efficiency and the profitability of their small commercial book of business.

“This technology to connect agencies, companies and insureds is unprecedented, something that simply wasn’t possible before,” said Jason Kolb, DAIS founder and CEO. “This partnership gives independent agents capabilities that have previously only been available to the largest digital agencies and insuretechs.” Kolb said that as of December, DAIS has the ability to scale this technology to agents of all sizes, which in effect lets any agent compete with the likes of Insureon. “We’re excited to be able to bring that same level of technology--and better-- to Big I members,” said Kolb.

These portals will allow agents to remain relevant and competitive in the small commercial insurance market. This partnership is exciting because we’re opening up a market that has been out of reach for many agencies because of the tremendous expense involved.

This will provide a great competitive advantage and its free for our members to use.

Over the past several years national carriers have been connecting to digital agencies at a rapid pace, while the more traditional agencies have been falling farther and farther behind. We are leveling the playing field for independent agents. Not only that, but we are helping the smaller carriers who rely on our agents to stay relevant and compete through this time of technological innovation.

According to Kolb, “the portals allow member agents to connect directly to their best carriers in multiple ways to improve efficiency and give policyholders instant access to the best markets. The partnership helps carriers by giving them one way to connect to their entire agency force. Rather than time-consuming one-off integrations which take months, carriers can now integrate with most of their agents in one easy motion. "It's like a universal remote for all of your agents," said Kolb. "It's wildly more cost effective than doing hundreds of one-off integrations and it’s the kind of innovation that the insurance industry badly needs."

According to Aaron Larson, DAIS’ Chief Revenue Officer, “the most sophisticated carriers have been able to connect to anywhere between 10 and 50 digital agencies over the last several years and it

takes months to do each one. We’re deploying for two entire states over the next 90 days which includes over 1,350 agencies,” said Larson. Larson also noted that DAIS is already transacting business with hundreds of agents and over 80 carriers. “We appreciate the partnership we have with the Big I associations and we wanted to do something extraordinary for the Big I and its members, and we now have the ability.”

We expect the new agency portals to help our agency members grow, attract new employees that demand modern technology, and substantially reduce E&O exposure. Our partnership with DAIS allows us to democratize technology to our agency members and help their carrier partners to achieve efficiency gains and grow more rapidly. This is a seismic shift in the industry where everybody wins.

“The small commercial solution has been a collective effort including input from hundreds of agencies and 15 carriers who participate on an Underwriter Innovation Council which meets monthly. We are grateful to the MIIAB and IIAW associations for coordinating this massive effort between the broad number of carriers and agencies and are excited about the growth and efficiency gains we can help bring to their members,” said Larson.

Members of the IIAW that are interested in learning more or signing up to set up their free small commercial portal should visit www.

IIAW.com/DAIS or call the IIAW office and talk with Matt or Evan.

Matt’s Mixology on page 31.

> Matt Banaszynski CEO of IIAW

wisconsin INDEPENDENT AGENT

JANUARY 2020

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2:10PM-5:00PM Africa 10/20

3:00PM-3:50PM Africa 30/40

4:00PM-5:00PM Africa 30/40

REGISTER NOW AT WWW.IIAW.COM/INSURCON

AWARDS LUNCHEON AND BUSINESS MEETING

Join us as we honor our 2020 Award Winners and conduct our annual business meeting. A plated lunch will be served.

“MAKING THE DATA IN YOUR AGENCY MANAGEMENT SYSTEM WORK FOR YOU” Automation/Technology Committee

Join the IIAW Auto./Tech. Committee for a presentation on what data to collect from your AMS, how to extract it and how to use it.

“HARASSMENT IN THE WORKPLACE, EPLI AND THE IMPACT OF THE #METOO ERA” (1 CE) Laura Lapidus, Management Liability Risk Control Director, CNA

This session will examine the #MeToo movement’s effect on the workplace, harassment claim trends, litigation trends, and antiharassment legislation.

“ETHICS AND TRUST” (3CE) Jeff Bykowski, SECURA Academy

Agents will be able to walk away from this class with a better understanding of how trust plays an integral role in ethics.

“EXPLORING PRIVATE AND PUBLIC FLOOD MARKETS” (1CE)

Two industry experts will discuss the private flood insurance market as well as the National Flood Insurance Program and other emerging flood issues and concerns.

Marc Treacy, Managing Director of Flood Insurance, ISO and James Sink, Regional Flood Insurance Liaison, DHS

“EVERYTHING SPEAKS: ALIGNING YOUR MARKETING EFFORTS TO UNEARTH YOUR TRUE VALUE”

You will learn how to effectively align your company image and brand both internally and externally via digital and social media.

Spencer Smith, Founder of AmpliPhi Social Media Strategies

6:00PM-9:00PM 9:00PM-12:00AM

COMPANY HOSPITALITY HOURS INSURCON2020 ENTERTAINMENT

Africa East

Its time cut loose and enjoy some great entertainment and music from Granny Shot. This is a great time to network, enjoy company hospitality booths and just have fun!

T UESDAY, M AY 1 2 TH 7:45AM-8:45AM

GRAB & GO BREAKFAST

Africa Ballroom Foyer

9:00AM-10:15AM Africa East

10:30AM-11:15AM Africa East

11:30AM-12:00PM Africa East

12:15PM-2:00PM Africa East

2:00PM-5:00PM

“THE EVOLVING CYBER RISK LANDSCAPE”

Hear an industry expert explain cyber risks that businesses need to be aware of and how businesses can protect against those risks.

“INSURTECH MEETS INNOVATION”

Learn about some new “insurtech” startups participating in gener8tor’s OnRamp Insurance Accelerator and recommendations for identifying/partnering with technology firms.

“FIRESIDE CHAT WITH MATT”

Join Matt as he shares industry knowledge and insight on emerging trends.

LUNCH & KEYNOTE SPEAKER: JOE THEISMANN

Listen to former star quarterback and NFL analyst Joe Theismann discuss managing unforeseen change with adversity. His high energy presentation is one you won’t want to miss!

EXHIBITOR SHOWCASE

Don’t miss the opportunity to win cash or to meet your next great partner for success. InsurCon2020 will feature the first ever Blackout Bingo game for agency owners and employees.

PRIZES & GIVEAWAYS

All prizes will be awarded. Must be present to win.

Edward Chang, VP of Cyber Risk Management at Travelers Insurance

Troy Voseller, Co-Founder of gener8tor

Matt Banaszynski, IIAW CEO

Africa West

5:00PM

wisconsin INDEPENDENT AGENT

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KKEEYYNOT NOTEESSPPEEAKE AKERS RS JOE JOETTHHEIS EISMAN MANNN Former Former NFL NFL Quarterback Quarterback && NFL NFL Network Network Analyst Analyst

Joe Joe Theismann Theismann is is anan entrepreneur entrepreneur and and the the former former star star quarterback quarterback forfor the the Washington Washington Redskins.

Redskins.

Most Most recently, recently, hehe spent spent the the last last 2 decades 2 decades working working forfor ESPN ESPN and and the the NFL NFL Network Network asas anan NFL NFL analyst. analyst.

AA 12-year 12-year NFL NFL veteran, veteran, Joe Joe played played in in 163 163 consecutive consecutive games games from from 1974-1985 1974-1985 forfor the the Washington Washington Redskins Redskins and and holds holds Redskin Redskin records records forfor passing passing yardage, yardage, completions completions and and attempts. attempts.

HeHe was was a two-time a two-time Pro Pro Bowl Bowl selection selection and and Pro Pro Bowl Bowl MVP. MVP. Joe Joe Theismann’s Theismann’s career career ended ended abruptly abruptly in in 1985 1985 after after sustaining sustaining a badly a badly broken broken leg leg during during a Monday a Monday Night Night Football Football game game against against the the New New York York Giants Giants onon national national television. television.

In In 2003, 2003, hehe was was inducted inducted into into the the College College Football Football Hall Hall ofof Fame.

Fame.

With With every every chapter chapter ofof hishis life, life, Mr. Mr. Theismann Theismann evolved evolved from from athlete athlete toto the the ultimate ultimate businessman. businessman.

AnAn Emmy Emmy award award winning winning analyst, analyst, business business man man and and athlete, athlete, hehe utilizes utilizes hishis gifts, gifts, talent talent and and high high energy energy toto share share hishis strategies strategies forfor handling handling unforeseen unforeseen change. change.

TR TR OY OYVV OS OSS SEE LLE LE RR Co-Founder Co-Founder of of gener8tor gener8tor

Troy Troy is is a Co-Founder a Co-Founder ofof gener8tor. gener8tor. gener8tor gener8tor is is a turnkey a turnkey platform platform forfor the the creative creative economy economy that that connects connects startups, startups, entrepreneurs, entrepreneurs, investors, investors, universities universities and and corporations. corporations.

The The gener8tor gener8tor platform platform includes includes pre-accelerators, pre-accelerators, accelerators, accelerators, corporate corporate programming, programming, conferences conferences and and fellowships. fellowships. gener8tor gener8tor operates operates more more than than 2525 accelerators accelerators annually annually across across North North America, America, working working with with more more than than 100 100 startups startups per per year. year.

ED ED WA WA RR DDCC HH AN AN GG VPVP of of Cyber Cyber Risk Risk Management Management at at Travelers Travelers Insurance Insurance

Edward Edward Chang Chang leads leads the the Travelers Travelers cyber cyber risk risk control control practice. practice.

In In that that capacity, capacity, hehe is is involved involved in in underwriting, underwriting, risk risk control, control, and and catastrophe catastrophe analysis analysis forfor the the company’s company’s cyber cyber insurance insurance products. products.

Prior Prior toto Travelers, Travelers, Eddie Eddie was was a federal a federal prosecutor prosecutor where where hehe focused focused onon prosecuting prosecuting Romanian Romanian phishers, phishers, Nigerian Nigerian fraudsters fraudsters and and other other cyber cyber criminals. criminals.

6 JANUARY 2020

wisconsin INDEPENDENT AGENT

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ERRORS & OMISSIONS

Line It Up

E&O considerations when your business undergoes a transition

Without a doubt, purchasing or selling an insurance agency triggers additional errors & omissions exposure. What processes can successful agencies employ during a transition in order to help reduce their exposure to E&O claims?

First, the acquiring agency should perform due diligence before making the decision to acquire the new book. Make sure the new business is within your comfort zone or area of expertise.

You might want to consider forming a dedicated quality management team trained in this process.

usually include an invitation to discuss the clients’ policies and review their coverages, contact the agency with questions or request additional coverages or limits.

You should also conduct an audit during the transition process, based on written procedures. The audit will help identify potential E&O exposures and will reveal cross-sell opportunities.

The transition plan should be detailed and should identify specific responsibilities for specific people, including timing. Then, it must be closely monitored to ensure proper implementation.

For example, an agency that handles primarily property-casualty business might not be a good fit to acquire an agency that Line It Up handles certain specialized lines of business, such as marine Documentation is also crucial. It is especially important that E&O considerations yournotbusiness undergoes a transition liability or equine insurance. The when agency may want to the agency ensures the applicant signs all policy and renewal assume certain accounts or risks—in particular, E&O exposures.

By Brian Butcher applications. This practice goes a long way in proving intent.

Consult with your attorney to make sure the purchase Note that these steps are critical even when the perpetuation agreement is satisfactory and covers who assumes responsibility is taking place within the family. Prior to when the new family for E&O exposures.

Often, the purchasing agency requires Without a doubt, purchasing or selling anthe insurance agency additional errors member takestriggers over the agency, the owner and & successor should seller to maintain tail E&O coverage for a while. omissions exposure. What processes can successful a so that the successor adoptagencies a systematicemploy review of during the accounts become familiar with them.

Aftertransition the purchasein agreement executed, conduct a exposure tocan order tois help reduce their E&O claims? systematic review of the newly acquired business as soon as First, the acquiring agency should perform due diligence before making the decision Brian Butcher is a vice president, claims expert with Swiss Re possible, checking details suchbook. as coverage types and the amounts. to acquire the new Make sure new business is within your zone oroffice in Overland Corporate Solutions and comfort teleworks out of the Involve consultants and experts in this review process if area of expertise. You might want to consider forming a dedicated Park, Kansas.

Insurancequality productsmanagement underwritten by Westport necessary.

Insurance Corporation, Overland Park, Kansas, a member of team trained in this process.

Swiss Re. Most successful agencies have procedures andhandles practices inprimarily property-casualty For example, an agency that business might not place during the acquisition process. They often send letters be a good fit to acquire an agency that handles certain specialized of business, This article is intended lines to be used for general informational to all their new clients to introduce themselves. These letters such as marine liability or equine insurance.

Thefor any purposes only and is not to be relied upon or used particular purpose.

Swiss Re shall not be held responsible in agency may not want to assume certain anyrisks—in way for, andparticular, specifically disclaims accounts or E&O any liability arising out exposures.of or in any way connected to, reliance on or use of any of the information contained or referenced in this article.

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wisconsin INDEPENDENT AGENT

Consult with your attorney to make sure the The informationiscontained or referenced in this article is not purchase agreement satisfactory and covers intended to constitute and should not be considered legal, who assumes responsibility for E&O exposures. accounting or professional advice, nor shall it serve as a Often, the purchasing agency requires the seller substitute for the recipient obtaining such advice. to maintain tail E&O coverage for a while.

After the purchase agreement is executed, conduct a systematic review of the newly >B RIAN BUTCHER acquired business as soon as possible, Vice President, claims expert Swiss Re as Corporate Solutions checking details such coverage types and amounts. Involve consultants and experts in this review process if necessary.

Most successful agencies have procedures

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Thank YOU! HAPPY NEW YEAR to our agents, policyholders, employees, and

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APPLY TO BE AN AGENT AT:

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VIRTUAL UNIVERSITY

UNDERSTANDING LIQUOR LIABILITY COVERAGE Liquor liability insurance is designed to defend the insured against charges of negligent conduct related to the service of alcohol; and to indemnify or pay on behalf of the insured if they are ultimately found legally liable for the injury or damage.

Operations serving or supplying alcohol can be subject to charges of negligent conduct when, for example, a patron or third party is injured as a result of the negligent service of alcohol or negligence in not preventing an individual from injuring a third party. Legal liability can also arise out of other negligent actions or inactions. Charges of assault and battery account for a high percentage of liquor liability claims so any liquor liability policy should include coverage for this exposure.

Attorneys typically seek a connection to as many pockets as possible. Lawsuits often name the establishment, the liquor manufacturer, the distributor and any others that seem to make sense (or even those that do not make sense). Any entity making, selling or serving alcoholic beverages needs this protection because the unendorsed commercial general liability (CGL) policy excludes coverage for liability arising out of one of these activities. Here is helpful advice, if you can smell the alcohol, write the coverage.

Controlling Costs If price is truly the concern, the owner can take many actions to reduce the cost of liquor liability coverage. Like most forms of insurance, liquor liability premiums are based on exposure and the historical losses of the insured operation.

Insurance Services Office (ISO) assigns liquor liability hazard grades.” Grades range from 0 to 10 and are based on the liquor (dram shop) laws and liquor-related court decisions of that state. A 0,” the best possible grade, indicates there is no cause of action against an alcohol vendor. A grade of 10,” the worst possible grade, indicates that strict liability is imposed on the vendor. The higher the grade, the higher the rates. Liquor liability grades are found in each state’s State Exception page of Rule 45 of the CGL’s commercial lines manual (CLM). States breakdown as follows:

The cost defense and the ultimate claim cost is based on the individual jurisdiction’s definition of legally liable. Forty-three states and the District of Columbia apply a codified or judicially interpreted liquor or dram shop law.

• Some states allow every bar in which the intoxicated person drank to be pulled into the lawsuit; the establishment has to prove that the patron was not or did not appear intoxicated while there. Each bar or restaurant in these states can be held jointly and severally liable.

• At least one state holds the establishment liable if the patron appears intoxicated even if they came in that way and didn’t imbibe there.

• Other states require proof that: 1) the establishment sold alcohol to the or that intoxicated the individual; 2) injuries were sustained; and 3) the intoxication was the proximate cause of the injury(ies).

In essence, coverage provided by the liquor liability policy is partially based on statute rather than strictly policy language.

Liquor liability insurance typically covers the cost of damages and all legal fees and related expenses up to the policy limits.

Rates are especially high for establishments with a poor claims history and those having unique exposures such as pool tables, live music, exotic dancers or other forms of live entertainment.

Owners of operations with these histories or exposures typically pay a premium surcharge.”

Training your staff Closing earlier, removing pool tables or other diversions and/ or getting rid of live entertainment may not be practical; but the insured may consider alcohol-awareness training as an option.

Many liquor liability carriers offer discounts for such training.

Alcohol awareness training is a good starting point and should be required for all management and staff who serve alcohol.

Servers learn to identify patrons who have had too much to drink, wisconsin INDEPENDENT AGENT

JANUARY 2020

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how to avoid serving under-aged customers and when to make and keep notes. Servers also learn the consequences of failing to take responsibility for their patrons. Many servers assume that they will not be held personally responsible for serving an intoxicated customer, but this may not be the case in certain states.

Security personnel should also be trained. Unfortunately, security staff may be overzealous in their duty, using stun guns, mace and physical force to restrain patrons. Such attacks, ironically, endanger rather than protect a business.

Training is essential but only if managers and owners take the training seriously. Staff should be continuously monitored to make certain everyone is consistently applying the lessons they’ve learned. Several training programs exist to aid alcoholserving entities in their quest to become better at protecting their clients and staff while at the same time potentially lowering their liquor liability premium. These include: • Training for Intervention Procedures by Servers of Alcohol (TIPS): A live training class with nine different programs are available depending on the type of operation and situation; • ServSafe Alcohol: Sponsored by the National Restaurant Association Educational Foundation (can be done online); • Serving Alcohol, Inc.;

• Techniques of Alcohol Management (TAM): Endorsed by the National Hospitality Institute offering in-person and online training; • Techniques for Effective Alcohol Management (TEAM): A non-profit alcohol awareness program geared towards sports venues and sporting events; and • Alcohol Safety Institute of America: An online training program.

Availability of Liquor Liability Coverage Depending on who you ask, liquor liability is now freely available unlike in decades past. However, availability may vary depending on the jurisdiction. Many standard carriers willingly extend liquor liability protection to any insured who meets their basic underwriting guidelines regarding the amount of liquor served (as a percentage of sales) and other exposure factors.

If the insured is unable to secure liquor liability protection from the carrier providing the general liability protection, many excess and surplus lines carriers stand ready to prove the necessary coverage on a stand-alone basis.

>C hris Boggs

Big “I” Virtual University Executive Director

JOIN US, a WI Based Top 100 Agency

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Robertson Ryan has been offering innovation through our unique Agent Owner structure since inception in 1960. Time and time again after an agent or agency joins us they say, “We wish we did this years ago.” Our team recognizes the strength and power behind the agent and insured relationships so we’ve built, and continue to fine-tune, a support network rewarding those affiliated with RRA. Find more at, www.RobertsonRyan.com/AgentOwner ...and let’s connect. Call or email me 414.221.0363 or cillman@robertsonryan.com. I look forward to answering your questions!

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Recruiting new talent.

Recruiting new talent.

Target marketing.

Target marketing.

Competing for new business.

Competing for new business.

Perpetuation planning.

Perpetuation planning.

As As an an independent independent agent, agent, the the path path forward forward isn’t isn’t always always clear. clear.

With Keystone, the best resources are at your fingertips to With Keystone, the best resources are at your fingertips to help you carve out clarity from our industry’s complexities. help you carve out clarity from our industry’s complexities.

We connect you to a community of like-minded independent We connect you to a community of like-minded independent agents, provide access to relationships that extend beyond agents, provide access to relationships that extend beyond your geographic reach, and employ the expertise that expands your geographic reach, and employ the expertise that expands opportunities for you and your clients. opportunities for you and your clients.

Success is a journey. Let us be your guide.

Success is a journey. Let us be your guide.

Because independence works better together.

Because independence works better together. ©2018 Keystone Insurers a franchise in any state in ©2018 Keystone Insurers a franchise in any state in

Group ®. All rights reserved. This does not constitute an offer to sell which the Keystone Insurers Group franchise is not registered.

Group ®. All rights reserved. This does not constitute an offer to sell which the Keystone Insurers Group franchise is not registered.

Contact JoAnn Hartung: Contact JoAnn Hartung: 570-473-4340 570-473-4340 jhartung@keystoneinsgrp.com jhartung@keystoneinsgrp.com keystoneinsgrp.com keystoneinsgrp.com

RISKY BUSINESS

THE “BEST COVERAGE” FROM “INSURANCE EXPERTS”: DIGITAL MARKETING E&O EXPOSURES At the IIAW, we continue to look for technology tools and resources that will help our agents increase their digital presence. Oftentimes, we hear agents discussing how they are using social media and marketing videos to reach target audiences or how they would like to be. This is a great idea and one that we encourage everyone to explore. Videos do not need to be professional in nature, but they do need to be clear, concise and, most importantly, free from E&O exposures.

are many excellent carrier options out there that help make independent agents so valuable. However, few (if any) of your staff are able to point out the meaningful differences between carriers’ forms across individual lines of coverage.

The exposures on social media and in digital marketing are not necessarily new exposures, but rather new platforms for the exposures to exist. For those of us who are always looking for language that increases our standard of care or duty to advise, it is much easier to review in when it is in writing than it is to think about while we’re talking to a customer or recording a marketing video.

iving advice: Some agents and industry professionals G are providing helpful tips in their videos. This is a great way to showcase your knowledge base, professionalism and confidence. It should go without saying that it is critical to ensure this information is factual, but sometimes the desire to differentiate trumps the need to be truthful or double check the facts. Whether you are discussing insurance requirements or simply describing the services of the agency, the information being shared needs to be 100% factual and clear for the listener.

In the past few months, I’ve been paying close attention to some of the videos agents are creating and posting in places like LinkedIn and Facebook. Here is what I am seeing: Going for the sale: Many of the videos I am seeing from agents (particularly those that are new to the digital marketing space) contain the agency owner, principal or a producer talking about what the agency can offer. This is great… until the individual begins using terms like “our agents will find you the BEST coverage” or “talk to one of our insurance EXPERTS today”. This type of language increases your standard of care and can easily be used against you in an E&O claim.

What to say instead?

“Our friendly staff here at ABC Agency listens to your needs and provides strong coverage recommendations to match those needs”

What to say instead?

“We represent many quality insurance carriers which allows us to find the appropriate coverage for your family or business.”

What to say instead?

Plan out concisely what you would like to say in your video and ask someone else to review the content before publishing (once it is out there for the world to see, you cannot erase it!). While it is great to seem relaxed and approachable in your videos, it is best to not speak ‘off the cuff’ and to have all the facts before recording.

There is plenty of information available through the IIAW and other online sources for tips on how to be successful using digital marketing and videos. We encourage everyone to look at this option for reaching new prospects and expanding your online presence. Always feel free to reach out to your partners at the IIAW for additional information or for a video or website review.

“Our professional and licensed agents would be happy to speak with you regarding your specific coverage needs” Choice of carriers: I often hear agents telling customers and prospects how they “represent many carriers and can help you decide which one is best for you”. It is true, there

14 JANUARY 2020

wisconsin INDEPENDENT AGENT

> Mallory Cornell, IIAW Vice President and Director of Risk Management

Insurance Premiums Versus the Total Cost of Risk When was the last time your client said, “That premium seems fair; the insurance company is getting adequate premium to cover its exposure and I'm getting the protection I need"?

I doubt ever. More than likely you have heard them say – maybe even today - “I can't believe I have to pay out all this money. The insurance company is killing me. Can't we get this premium down?"

Carriers advertising low, low auto rates on TV are play to the belief that insurance is all the same and all about the visible premium – the “price." But is it the price or the cost of protection the insured needs to calculate?

Insureds must understand – or be taught by us – that premium (the price) is only part (sometimes a small part) of their “Total Cost of Risk."

Six “costs" in addition to the premium combine to develop the insured's true total cost of risk: 1) Deductibles or Self-Insured Retentions; 2) The cost of uninsured or self-insured losses (intentional or unintentional); 3) Legal costs; 4) Loss control and safety costs; 5) Claims management costs; and 6) Opportunity costs.

Let's talk first about Deductibles and Self-Insured Retentions.

Premium savings is often accomplished by increasing a deductible or using a self-insured retention (SIR). But any visible premium savings must be weighed against the initially invisible “out-of-pocket" cost directly related to the deductible or SIR. The Price:Cost comparison is easy with smaller clients that have relatively few losses. A small commercial client, for example, may enjoy a premium savings of $2,000 by increasing its property deductible to $5,000 from $1,000; but one loss could “cost" the insured $2,000 more than staying with the lower deductible.

$1,000 Deductible $5,000 Deductible Premium:

$20,000

$18,000

Property Loss:

$65,000

$65,000

Amount Paid by carrier: (Loss – Deductible)

$64,000

$60,000

Total Cost of Risk following loss: (Premium + Deductible)

$21,000

$23,000

VIRTUAL UNIVERSITY

Any out-of-pocket expense related to self-insurance is part of the insured's total cost of risk. Like the use of deductibles or SIR's, these may push the cost of risk beyond the pre-change price of insurance. Two prime examples of these expenses are claims management costs and legal costs.

Internal Claims Management Costs are most often associated with self-insured losses or uninsured losses. These losses and claims must be managed by someone. This “someone" may be an internal employee designated as the claims administrator or it may be an outside thirdparty administrator (TPA).

Although the expense of the internal employee may be captured under a separate line item – payroll expense – the cost is still a part of the total cost of risk. Any TPA expense is also a part of the cost of claims management and the total cost of risk.

Legal Costs flow out of the claims management of uninsured and selfinsured losses. Defending uninsured or self-insured events or losses can be expensive. The cost of defense counsel will devour any premium savings enjoyed by self-insuring.

However, there are legal costs that may be required – regardless of the program. These are legal costs incurred to avoid a financial loss, such as the costs to develop proper contractual risk transfer mechanisms or employee manuals (just two examples). These are necessary to properly run any business operation and are costs that occur regardless of the insurance protection purchased.

Loss Control and Safety cost, like unavoidable legal costs, apply almost regardless of the underlying protection. In an effort to avoid or reduce loss, insureds may invest in loss control and safety. This includes sprinkler systems and safety equipment like safety glasses and fall protection. Granted, some of these are required by regulation, but such costs arise out of the inherent risk of the operation and are thus part of the “total cost of risk."

Opportunity Costs are the last piece of the total cost of risk picture.

This is a somewhat subjective factor in the total cost of risk, but to manage a non-traditional (or even traditional) insurance program requires resources be taken from other areas of the operation. These are monetary and time resources.

The insured can choose to pay a higher premium and allow the insurance company's personnel to do the work; or they can choose to do some parts of it themselves. This comes back to a price:cost analysis.

And this is if there is only one loss during the year; what if there are multiple losses during the year?

Payroll and time costs are a factor in the total cost of the insured's risk.

Larger corporations are major proponents of high deductible programs because there is the immediate premium savings (as seen on the balance sheet). But when compared to the actual cost of loss experience such a plan may ultimately be more expensive.

To ask the question again, is it the Price or the Cost? Insureds can ALWAYS find a lower PRICE, but at what COST? Understanding the Total Cost of Risk concept is important to both insureds and agents. Being able to distinguish between the two can save insureds in the long run.

Basically, visible premium savings are eaten away by the “invisible" costs of deductibles and self-insured retentions following a loss.

Don't misunderstand, there is a place for alternative protection programs and even some price comparison among the less sophisticated coverages; but don't ever let the insured, or yourself, be fooled into believing that insurance is all about the price.

Now let's add in the costs associated with uninsured and selfinsured Losses. In an effort to cut insurance costs, insureds may intentionally or, worse, unintentionally self-insure certain risks. Before implementing intentional self-insurance there must be careful study of loss frequency and, more importantly, loss severity. (Frequency is how often the loss occurs; severity is how expensive the loss is.)

Unintentional self- insurance is generally the result of coverages being cut from a program in an effort to lower the premium.

>C hris Boggs

Big “I” Virtual University Executive Director

wisconsin INDEPENDENT AGENT

JANUARY 2020

15

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ASK AN EXPERT BRIEFS

?

Q: Late-Payment Follow-Up Advice Following up with late-paying clients wastes large amounts of time at our agency. Is there a recommended follow-up policy that preserves workflow? If we have been following up with clients for late payments, are we stuck in that precedent forever?

A: If a client causes a wreck with lapsed coverage and you didn’t remind them to pay their premium like you always do, you will get sued. Start a new policy, inform clients of the new policy and stop following up on late pays.

Your first call should be to your errors and omissions insurer.

They’ll tell you not to follow up because it creates an expectation that you can’t and shouldn’t live up to. That’s been the advice from E&O and agency management experts for years.

However, it’s easier said than done. Very few agents follow this best practice 100% of the time. If you get a late notice on your biggest commercial client’s homeowners’ policy, you’re a rare breed of agent if you don’t give them a call. Worse yet, once you’ve done this deed, you’re probably stuck with it as a precedent forever.

Follow the advice of your E&O insurer, who will probably tell you to stop sending reminders and never do it again. If you’re not prepared to do that, set up a workflow you can live with and follow it consistently. Also, make sure you have adequate limits on your agency’s E&O policy.

The agency should never follow up on late-paying clients or cancellations. The insurance companies send out cancellation notices, which will legally suffice.

Since you’ve been reminding clients, you should notify all direct billed clients that you will no longer be sending reminders. The tone of that letter should be positive, courteous and explanatory.

Next, you should contact your E&O carrier to request a full E&O audit.

If you’re going to continue following up, you must do so for all customers. In this instance, invariable practice doing the same thing for every client all the time is the key defense. Most states have evidentiary statutes that force the plaintiff to prove you didn’t follow your practice if you have one.

I call my clients. I only have about five habitual abusers of the cancellation follow-up. They are the same clients each month, so I may have created a monster. It’s much easier to send a simple email reminder and they usually remit that day. These clients are contractors who are just very busy during the construction season.

Q: HO3 Coverage for Resident Relative of Deceased Named Insured The named insured on an HO3 policy dies but has an adult child who had been living with them for over a year. How does the named insured’s passing affect coverage for the resident relative?

A: The coverage stays the same until the next renewal date when you should change named insured to the estate of the deceased or the inheritor of the estate once it’s settled. Some carriers will require a fire policy until the residence is occupied by the eventual owner.

The ISO HO3 form states:

If any person named in the Declarations or the spouse, if a resident of the same household, dies, the following apply: 1. We insure the legal representative of the deceased but only with respect to the premises and property of the deceased covered under the policy at the time of death; and

G. Death

wisconsin INDEPENDENT AGENT

JANUARY 2020

17

2. “Insured” includes: a. An “insured” who is a member of your household at the time of your death, but only while a resident of the “residence premises”; and b. With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal representative.

As a resident, the adult child was already an insured. Under section two, they will remain an insured, but only while they continue to live there. If an adult child had moved into the home after the named insured’s death, they would not be considered an insured”.

If the named insured is deceased, a resident of the household at the time of the named insured’s death continues to be an insured as long as they remain a resident.

You should talk with the carrier to see how they want to handle this. They might want to change coverage to a dwelling policy. In that case, the adult child needs a HO4 policy.

The policy language addresses this. It defines an insured as either a resident of the ‘resident premises’” or the person having proper temporary custody of the property until appointment and qualification of a legal representative.”

I’ve not seen any case law that addresses the question of whether the estate of a deceased person can still have a “household” that would qualify related residents to still be insureds. The safest solution may be to arrange for renters insurance to insure members of the household.

Q: Equipment Breakdown Coverage An insured has a HVAC chiller. The insulation on one of the water pipes failed and caused the pipe to rust. A hole eventually developed, and water spilled out causing damage to the HVAC. The insured submitted a claim on their equipment breakdown policy, but it was denied.

Bursting, cracking or splitting” is a covered peril, but any damage that is caused as a result of depletion, deterioration, rust, corrosion, erosion, settling or wear and tear” is excluded. Is the carrier correct to deny the insured’s claim?

A: Equipment breakdown is defined as a sudden and accidental mechanical or electrical breakdown. I agree with the adjuster.

Sorry but the rust was the cause of the loss.

It sounds like your loss was caused by a gradually developing condition” from wear and tear.” Even if you could meet the definition of accident, it is still excluded by this clause: None of the following is an accident,” however caused and without regard to whether such condition or event is normal and expected or unusual and unexpected. However, if an event as defined under 1.a. above results from any of the following, it will be considered an accident.”

1. Depletion, deterioration, rust, corrosion, erosion, settling or wear and tear; 2. Any gradually developing condition; Unless the insulation failed due to an event included in the form’s definition of an accident,” I agree with the denial. It sounds like depletion or deterioration with rust developing in the chiller. It’s too bad the damage wasn’t spotted earlier.

18 JANUARY 2020

wisconsin INDEPENDENT AGENT

Bursting, cracking or splitting does not include a hole caused by corrosion over time. It is not an accident either. Also, bursting, cracking or splitting suggests an event that happened quickly, while rust is an event that happens over a period of time. The policy expressly states an accident does not include any gradually developing condition.”

I agree with the insurer. Neither “rust” or “any gradually developing condition” qualifies as an “accident.” In addition, for an event to be covered as an “accident,” the policy requires the event to be fortuitous. For example, bursting, cracking or splitting are fortuitous events, while rust gradually developing to the point where a hole develops is not.

2020 Prelicensing Class Schedule Conducted at State Association Headquarters, IIAW prelicensing classes fulfill the study requirements for life, health, property and casualty. Full course materials are included with registration. The classes are: • • • • •

Designed to help you pass your state licensing examination The quickest way to meet the WI education hours requirement Taught by experienced insurance professionals who know the business Conducted in a comfortable classroom with free parking Approved by the Office of the Commissioners of Insurance

REGISTER AT IIAW.COM To register, click the Education tab on IIAW.com.

For WI exam info, visit Prometric.com.

IIAW Member Pricing: $340 Pricing given for full class registration Non-Member Pricing $355 You may also take individual classes Contact Kim@iiaw.com for multi-registration discounts.

For any other questions please contact Diana@iiaw.com.

DAILY SCHEDULE Day 1 (Monday)

8:30 am - 4 pm ($85) Section A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 am - 4 pm ($90) Section B: Life Policies, Terms & Concepts or Section B: Property Policies, Terms & Concepts Day 3 (Wednesday) 8:30 am - 11:30 ($45) Section B: Life Policies, cont. & WI Life Insurance Law or Section B: Property Policies, cont. & WI Property Insurance Law Noon - 4 PM ($45) Section B: Accident & Health Policies, Terms & Concepts or Section B: Casualty Policies, Terms & Concepts Day 4 (Thursday) 8:30 am - 4 pm ($90) Section B: Accident & Health, cont. & WI Health Insurance Law or Section B: Casualty Policies, cont. & WI Casualty Insurance Law

The course fee includes all class materials. Materials are distributed on the first day of class. You receive: • Life & Accident/Health or Property & Casualty Insurance Study Manual • The Intermediary’s Guide to Wisconsin Insurance Law • The State of Wisconsin Ins. Licensing Candidate Handbook (This provides all the information to obtain a license)

LIFE & ACCIDENT/HEALTH

PROPERTY & CASUALTY

January 6-9 February 10-13 March 9-12 April 6-9 May 4-7 June 8-11 July August September October November December

January 13-16 February 17-20 March 23-26 April 20-23 May 18-21 June 22-25 July August September October November December

CLASS SITE/DIRECTIONS

The IIAW is located at 725 John Nolen Dr. in Madison, WI. When traveling south on John Nolen, it’s the last driveway before Highway 12/18 (Beltline). Located near the Alliant Energy Center and Sheraton Hotel.

INCLEMENT WEATHER

If weather conditions are questionable, use your own judgment regarding your personal safety. If Madison public schools are closed, the IIAW is closed and pre-licensing is canceled for the day. Canceled classes are made up on Friday.

HOTEL INFORMATION

Student requiring lodging will receive a special rate at the Home2 by Hilton and Clarion Suites.

Home2 by Hilton, 2153 Rimrock Rd. in Madison. Please call the hotel directly at 608.949.9650, and ask for the “Independent Insurance Agents of Wisconsin” discount.

Clarion Suites, 2110 Rimrock Rd. in Madison. Please call the hotel directly at 608.284.1234, and ask for the “Independent Insurance Agents of Wisconsin” discount.

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JANUARY JANUARY 08 08 Personal Personal Auto Auto Hot Hot Topics...

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What What You You Need Need to to Know Know JANUARY JANUARY 08 08 Personal Personal Auto Auto Hot Hot Topics...

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What What You You to to Know Know 0909 When When thethe Child Child Becomes Becomes the the Parent Parent - Need Aging - Need Aging Parents Parents and and Insurance Insurance Decisions Decisions

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What What You You to to Know Know When When the the Child Child Becomes Becomes the the Parent Parent - Need Aging - Need Aging Parents Parents and and Insurance Insurance Decisions Decisions NEW! NEW! E&O: E&O: Commercial Commercial Liability Liability Coverage Coverage Gaps Gaps and and How How to to FillFill Them Them When When the the Child Child Becomes Becomes the the Parent Parent Aging Aging Parents Parents and and Insurance Insurance Decisions Decisions Commercial Commercial Liability Liability Coverage Coverage Gaps Gaps and and How How to to FillFill Them Them NEW! NEW! E&O: E&O: Roadmap Roadmap to to Homeowners Homeowners Insurance Insurance Commercial Commercial Liability Liability Coverage Coverage Gaps Gaps and and How How to to Fill Fill Them Them NEW! NEW! E&O: E&O: Roadmap Roadmap to to Homeowners Homeowners Insurance Insurance Lying, Lying, Stealing, Stealing, New New Types Types of of Fraud: Fraud: The The Importance Importance of of Crime Crime Insurance Insurance NEW! NEW! Roadmap Roadmap to to Homeowners Homeowners Insurance Insurance Lying, Lying, Stealing, Stealing, New Types Types of of Fraud: Fraud: The The Importance Importance of of Crime Crime Insurance Insurance Ethics Ethics -E&O: Walking -E&O: Walking a New Straight a Straight Line Line Lying, Lying, Stealing, Stealing, New Types Types ofLine of Fraud: Fraud: The The Importance Importance of of Crime Crime Insurance Insurance Ethics Ethics - Walking - Walking a New Straight a Straight Line 10 10 Things Things Every Every Commercial Commercial Lines Lines Agent Agent Ought Ought to to Know Know Ethics Ethics Walking Walking a Straight a Straight Line Line 10 10 Things Things Every Every Commercial Commercial Lines Lines Agent Agent Ought Ought to to Know Know Protecting Protecting Your Your Most Most Valuable Valuable Asset Asset 10Insuring 10 Things Things Every Every Commercial Commercial Lines Lines Agent Agent Ought Ought to to Know Know Protecting Protecting Your Your Valuable Valuable Asset Asset Insuring Trusts Trusts - Most Protecting - Most Protecting Your Your Client’s Client’s Wishes Wishes Protecting Protecting Your Your Valuable Valuable Asset Asset Insuring Insuring Trusts Trusts - Most Protecting - Most Protecting Your Your Client’s Client’s Wishes Wishes Dispelling Dispelling the the Myths Myths of of Workers’ Workers’ Compensation Compensation Insuring Insuring Trusts Trusts - Protecting - Protecting Your Your Client’s Client’s Wishes Wishes& & Dispelling Dispelling the the Myths Myths of Workers’ Workers’ Compensation Compensation Top Top 1010 Countdown Countdown ofof of Personal Personal Lines Lines Coverages Coverages Current Current Issues Issues Dispelling Dispelling the the Myths Myths of of Workers’ Workers’ Compensation Compensation Top Top 10 10 Countdown Countdown of of Personal Personal Lines Lines Coverages Coverages && Current Current Issues Issues Liability Insuring Insuring Technology Technology Exposures Exposures - Products, - Products, Property Property and and Professional Professional Liability Top Top 1010 Countdown Countdown of of Personal Personal Coverages Coverages && Current Current Issues Issues Liability Insuring Insuring Technology Technology Exposures Exposures -Lines Products, -Lines Products, Property Property and and Professional Professional Liability Insuring Insuring Technology Technology Exposures Exposures - Products, - Products, Property Property and and Professional Professional Liability Liability

FEBRUARY FEBRUARY FEBRUARY FEBRUARY 04 04 Personal Personal Auto Auto Policy Policy FEBRUARY FEBRUARY 04 04 Personal Personal Auto Auto Policy Policy 05 05 Additional Insureds and Certificates of Insurance Additional Insureds and Certificates of Insurance

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Tiny Tiny Houses, Houses, Home Home Sharing, Sharing, E-Scooters, E-Scooters, Events, Events, and and Kids Kids Insurance Business Business Auto Auto Coverages Coverages Home Home Sharing, Sharing, E-Scooters, E-Scooters, Events, Events, and and Kids Kids Business Business Auto Auto Coverages Coverages Life Insurance... Benefits for the Living Life Insurance... Benefits for the Living Business Business Auto Auto Coverages Coverages Life Insurance... Benefits for the Living Life Insurance... Benefits for the Living Personal Personal Lines Lines Checkup Checkup - What’s - What’s New New and and What’s What’s Changed...

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Commercial Commercial Property Property Coverages Coverages - Exploring - Exploring Key Key Concepts Concepts Commercial Commercial Property Property Coverages Coverages - Exploring - Exploring Key Key Concepts Concepts Condominiums Condominiums Commercial Commercial Property Property Coverages Coverages - Exploring - Exploring Key Key Concepts Concepts Condominiums Condominiums E&O: E&O: Commercial Commercial Liability Liability Coverage Coverage Gaps Gaps and and How How to to FillFill Them Them Condominiums Condominiums E&O: E&O: Commercial Commercial Liability Liability Coverage Coverage Gaps Gaps and and How How to to FillFill Them Them E&O: E&O: Roadmap Roadmap to to Homeowners Homeowners Insurance Insurance E&O: E&O: Commercial Commercial Liability Liability Coverage Coverage Gaps Gaps and and How How to to Fill Fill Them Them E&O: E&O: Roadmap Roadmap to to Homeowners Homeowners Insurance Insurance Farm Farm Liability Liability Coverages Coverages E&O: E&O: Roadmap Roadmap to to Homeowners Homeowners Insurance Insurance Farm Farm Liability Liability Coverages Coverages Cyber Cyber Liability Liability Farm Farm Liability Liability Coverages Coverages Cyber Cyber Liability Liability The The Insured, Insured, Additional Additional Insured Insured vs.vs.

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Planning Planning for for the the Unexpected Unexpected Ethics Ethics and and Agent Agent Liability Liability Insuring Insuring Hobby Hobby and and Small Small Farms Farms Ethics Ethics and and Agent Agent Liability Liability Insuring Insuring Hobby Hobby and and Small Small Income Income After After Retirement Retirement - Farms Where - Farms Where Does Does thethe Money Money Come Come From From Insuring Insuring Hobby Hobby and and Small Small Income Income After After Retirement Retirement - Farms Where - Farms Where Does Does thethe Money Money Come Come From From Commercial Commercial General General Liability Liability Coverages Coverages Income Income After After Retirement Retirement - Where - Where Does Does thethe Money Money Come Come From From Commercial Commercial General General Liability Liability Coverages Coverages Commercial Commercial General General Liability Liability Coverages Coverages

1212 PMPM - 3- PM 3 PM 1212 12 PM PM 3-- PM 3 12 PM PM -- 3 PM 3 PM PM 12AM 12 PM PM PM 3 12 12 PM PM 3--11 PM 3 PM PM 8 8 AM - --11 -3 AM AM 12AM 12 PM PM 3--11 PM 3 PM PM 8 8 AM - --11 -3 AM AM 12 12 PM PM PM 3 8 AM 8 AM 11 11 AM AM 12 12 PM PM 3 PM 3 PM 8 AM 8 AM - 11 - 11 AM AM 12AM 12 PM PM PM 3 PM AM 8 8 AM - -11 -3-11 AM 8 AM 8PM AM - -11 -3-11 AM AM 12 12 PM PM 3 PM 8 AM 8 AM 11 11 AM AM 12 12 PM PM 3 PM 3 PM 1212 PMPM - 3- PM 3 PM 1212 12 PM PM 3--- PM PM 3 PM PM 12 12 PM PM 3 12 PM PM --- 3 3 PM 3 PM 12 12 PM PM 3 PM 3 PM 1212 PMPM - 3- PM 3 PM 12AM 12 PM PM PM 3 PM 8 8 AM - -11 -3-11 AM AM 12AM 12 PM PM 3--11 PM 3 PM PM 8 8 AM - --11 -3 AM AM 12 12 PM PM PM 3 8 AM 8PM AM - -11 -3-11 AM AM 12 12 PM PM 3 PM 1212 PMPM - 3- PM 3 PM

MARCH MARCH MARCH MARCH 04 04 MARCH MARCH 0405 04 05

TO TOREGISTER, REGISTER,PLEASE PLEASEGO GOTO TOIIAW.COM IIAW.COM TO TOREGISTER, REGISTER,PLEASE PLEASEGO GOTO TOIIAW.COM IIAW.COM TO TOREGISTER, REGISTER,PLEASE PLEASEGO GOTO TOIIAW.COM IIAW.COM

VIRTUAL UNIVERSITY

How Many Different ‘Values’ Can Property Have?

Property can be assigned many “values" depending on the purpose of the valuation and who is valuing it. Some examples include: • The amount for which the property could be sold; known as “market value." Market value is what a willing buyer will pay a willing seller.

• What an expert thinks it's worth. In simple terms, this is “appraised value." A property or business appraiser evaluates the subject property based on local market conditions, estimated income, cost to build from the ground up and other comparison calculations.

• The value to the individual who owns the property. This is intrinsic value, what a certain piece of property means to you or me in terms of memories and significance.

• The cost to replace the property with new property just like or similar to the property. In insurance terms, this is often called replacement cost.

• Depreciated value. Depreciation has a dual function as it relates to property values. Accountants use depreciation as a business “expense" that lowers taxable income. But depreciation plays a part in insurance as well; it is generally applied within the concept of Actual Cash Value.

• The cost to replace the property with something functionally equivalent. Can the owner replace a hardwood floor with subfloor and linoleum and be just as happy or accomplish the same goal?

Actual Cash Value Actual cash value has historically been defined as the cost new, on the date of the loss, minus physical depreciation. "Physical" is highlighted because there are many different types of depreciation that don't relate to insurance: depreciation due to obsolescence, accounting depreciation and economic depreciation. Physical depreciation results from use and ultimate wear and tear - meaning that the insured does not get paid for the "used up" value of the property.

Pay attention to the beginning point in the calculation of ACV, the cost new on the date of the loss. ACV is not based on the value when it was purchased or at any point between that date and the date of the loss. Only the cost new on the date of the loss matters.

However, ACV is not always calculated in this method. In fact, ACV can be developed in one of four ways: 1. A pplying the Broad Evidence Rule; 2. E quating ACV to a property's Fair Market Value; 3. A pplying the historical definition of replacement cost minus physical depreciation; or 4. E quating ACV with replacement cost.

Each of these is discussed in the VU article, Why Defining Actual Cash Value is Amazingly Difficult. This article also links to a state-bystate breakdown of which method applies in each state. The most common is the Broad Evidence Rule.

• The value assigned for tax purposes. This is a jurisdictional value municipalities use or assign to calculate or create taxrelated income.

ACV is the common basis of valuation for:

Although not necessarily a complete list of possible property values, these seven cover the majority of “values" assignable to any particular property. But we, as insurance professionals, are primarily concerned about only four of these:

• Non-building other structures under Coverage B of the HO forms (but can be endorsed to replacement cost)

• Actual cash value • Replacement cost; • Functional replacement cost; and • Market value.

• The unaltered commercial property policy • Coverage C in all unendorsed Homeowners' (HO) coverage forms

• Auto physical damage

Replacement Cost Replacement cost is often described as “new stuff for old junk." This is really an oversimplification of the replacement cost concept. Yes, wisconsin INDEPENDENT AGENT

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the insured does get paid to replace something old with something new due to the purpose of insurance – indemnification.

Indemnification is the contractual obligation of one party (the indemnitor) to return another party (the indemnitee) to essentially the same condition (financial or otherwise) enjoyed before the loss, with no improvement or betterment. Within property policies (which are called first-party policies) the insurer is the "indemnitor" and the "indemnitee" is the insured.

• I f the insured does not need all the functions available on a particular piece of machinery or equipment (they found a great bargain on a top-of-the-line model, but don't need or use all the functions available and the insured does not want to pay the premium to insure it for the cost new).

Functional replacement cost is found: •A s the valuation method applicable to Coverage A in the HO-8 •B y endorsement to the commercial property policy

Replacement cost may be the truest form of property indemnification when considered this way: the insured's machinery is destroyed by fire, now they have no means to conduct business and generate revenue; the insurance proceeds don't necessarily do any good, they need the equipment. Same with the building, the insured needs a building in which to operate, not the money.

Replacement cost is the best mechanism for returning the building and contents to the insured so they can resume operations, regardless of the type of operation (manufacturer or office). This is the best demonstration of the goal, purpose and representation of indemnification.

Still, how can replacement cost embody the principle of indemnification? Isn't the insured better off than before the loss?

Valid questions.

Indemnification principles are not violated by replacement cost and, in fact, are upheld because the amount of insurance purchased equals the cost new of all eligible insured property on the day of the loss. Basically, the insured is valuing as if it were new and paying a premium based on that value.

Replacement cost generally applies to: • Coverage A in the HO policy forms (except HO-8) • Building structures in Coverage B of the HO policy • By endorsement for Coverage C in the HO forms (except HO-8) • As an optional valuation method for commercial property

Functional Replacement Cost Functional replacement cost values property at the cost necessary to replace damaged or destroyed property with new property of unlike kind and generally lower quality which perform the same general function yet allow the insured to accomplish its objectives.

Property replaced using functionally equivalent materials and products are less expensive and often require a shorter replacement schedule. This valuation option may be appropriate: • When the insured cannot rebuild the same square footage, usually due to the application of building codes, and a smaller building will be built in its place; • When the insured does not want to rebuild the same square footage; • When lower cost building materials can or should be used (i.e. masonry/non-combustible vs. fire resistive); or

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Market Value There is one more “value" you will have to deal with, especially when dealing with NFIP's flood insurance coverage and ordinance or law coverage – “Market Value." Market value is what a willing buyer will pay a willing seller, which is generally not related to insurance. But, NFIP's manual rules applies market value as the basis for many of its rules.

Likewise, many jurisdictions apply market value as the basis to decide at what point a damaged building must be brought into compliance with local building codes.

Lastly, in some states, market value is considered equivalent to actual cash value. And in the states that apply the broad evidence rule, the structure's market value is one piece of “evidence" used to develop the actual cash value.

So, although we don't think of market value as an insurance value, this valuation method can play a role. Market value is part of and plays a role in: • NFIP conditions • The ACV calculation in some states

Let's End This Even though a specific piece of property can have multiple values assigned to it, from an insurance perspective, only four matter.

Property can be valued at its: • Replacement cost; • Actual cash value; • Functional replacement cost; or • Market value.

The value that applies following a loss is a function of the needs of the insured, the form and endorsements applied and the state. Our job is to meld all this information to develop the correct amount of coverage. And what we discover, this can be difficult.

>C hris Boggs

Big “I” Virtual University Executive Director

AGENCY OPERATIONS

HOW TO WRITE IMPACTFUL JOB DESCRIPTIONS

Did you know that 64% of job applicants don’t respond to bad Job Descriptions? Learn how Caliper says to write job descriptions that work: 64% of applicants wouldn’t respond to a job posting with a poorly written or confusing job title. And 60% find jargon to be annoying. Writing effective job descriptions is a challenging task, but it has a major impact on the quality of applicants your business receives. Small businesses can be especially susceptible to poorly written job descriptions — with a smaller staff and more at stake per individual performance. So, attracting the right talent is critical to business success.

Often, job descriptions are written based on a template or use a framework that’s a one-size-fits-all, generalized version of a role written from a company viewpoint. For experienced workers who aren’t in a hurry or are more passive about finding work, this approach isn’t going to grab the attention of highly skilled individuals looking for an exciting new challenge. Using a checklist of responsibilities and the skills and qualifications necessary to accomplish them doesn’t work. And for small businesses or start-ups who don’t have a brand identity to leverage, making your description something meaningful, interesting, and informative is critical.

It’s important to remember that your hiring process begins with your job description. It’s a key moment when initial expectations are set for your candidates. Creating descriptive, thorough job descriptions that are highly relevant to your specific positions is worth the time and investment.

WHAT MAKES AN EFFECTIVE JOB DESCRIPTION? You want to write job descriptions that effectively: • Encourage unqualified job seekers to self-select out • Give you a complete picture of what a candidate needs to possess to be successful in the role • Help you find candidates quickly when the role needs to be filled urgently • Cover the business in any legal issues that should arise during the interview process So how do you go about writing a description that’s effective?

Consider this process: • Purpose: Why does the role exist? How does it serve the organization?

• Primary Duties: What tasks are people in this role expected to complete?

• Requirements: What requisites are needed in order to succeed?

• Competencies: Which competencies are needed in this position to excel and thrive?

• Culture: What is the company’s culture and work environment like?

• Values: What are the company’s mission, vision, and values?

HOW TO ACCURATELY REPRESENT THE ROLE Creating the most thorough and complete job description for your role starts with an in-depth job analysis. To do this, you or a third-party consultant, like Caliper, could hold conversations with stakeholders, supervisors, and high performers to determine business needs, understand the impact the role has on the organization, determine performance expectations and competencies for the role, and understand the day-to-day needs.

Here are some questions to answer when thinking about how to craft your description: • What are the day-to-day needs of the position?

• What are the core competencies necessary to perform the role?

• What are the outcomes that denote success, and how will they be measured?

• What does the organization need from the role, both today and in the future?

When you frame the role within these questions, you can use the information gleaned from these conversations to create relevant job descriptions to help you hire the right people for the right job.

Comprehensive answers to these questions aids both hiring managers and applicants to thoroughly understand the needs of the business, how the role should be performed, and what’s needed to so.

RE-EVALUATE OFTEN But the process doesn’t stop there. Once the job description has been written, that doesn’t mean the task is completed. It’s important to remember to revisit your job descriptions often. Once a year, re-examine your expectations and needs. With the world of work changing rapidly, it’s important to understand the dynamic needs of each position and update them accordingly. In doing so, you ensure that the requirements you need for today and the future are accurate, up-to-date, and consistent with organizational culture and expectations.

To learn more about the ways Caliper can help you understand and examine your job descriptions and craft outstanding job listings that attract the caliber of talent you’re looking for, download our whitepaper on the topic. For other ways that Caliper can help get the best out of your people, reach out to our experts today.

View original article at https://calipercorp.com/blog/how-to-writeimpactful-job-descriptions/

>A ggie Alvarez Caliper

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GOVERNMENT AFFAIRS

State Lawmakers Push To Overhaul Laws For Unlicensed And Uninsured Drivers A bill being sponsored by State Representative Joe Sanfelippo (R-New Berlin) and State Senator Dave Craig (R-Big Bend) would overhaul how the state of Wisconsin addresses the problem of unlicensed and uninsured drivers. Sanfelippo and Craig say they are pushing for stronger penalties and enforcement in the law to better protect the safety of state motorists by keeping dangerous and irresponsible drivers off of Wisconsin’s roadways.

Current law prohibits a person from operating a motor vehicle unless the vehicle owner or operator has a motor vehicle liability insurance policy in force. Any person who violates this requirement may be required to forfeit not more than $500. Some lawmakers, including Sanfelippo and Craig, have argued that current state law needs tougher enforcement if it’s going to effect reducing the number of uninsured motorists on state roadways. Opponents of stricter penalties say the change would adversely impact lower income people.

The bill draft, LRB-4175, which has not been formally introduced yet, would require the impoundment of vehicles involved in offenses of operating without a valid license, operating after revocation or operating while suspended. The legislation also would require that the Wisconsin Department of Transportation (WisDOT) automatically suspend the driver’s license and registration of any individual convicted of driving without liability insurance, unless that individual provides proof of financial responsibility and maintains it for a period of three years. Under the bill, any resident applying to register a vehicle with the WisDOT would have to show a valid operator’s license and the DMV would be required to refuse registration if a license is not provided. The bill would eliminate the current law requirement that a person have in his or her immediate possession proof of insurance.

Other provisions of the bill also propose changing the current penalties for operating without insurance. Under the bill, a person who violates the requirement that the owner or operator of a motor vehicle be insured would be subject to the following penalties: 1. A forfeiture of $100 for a first offense.

2. A forfeiture of not less than $250 nor more than $750 for a second or subsequent offense occurring within three years.

3. If the person, in the course of a second or subsequent violation, causes great bodily harm to another, a forfeiture of not less than $250 nor more than $2,500.

4. If the person, in the course of a violation, causes the death of another, a forfeiture of not less than $500 nor more than $7,500.

The bill also provides that, for a first offense, if a person obtains sufficient motor vehicle liability insurance before the person’s appearance in court, the court may not impose a penalty. The bill also eliminates the exemption of operating without insurance offenses from certain surcharges and fees that generally must be paid by persons who violate traffic laws. Currently, if the WisDOT receives a certified copy of a judgment for damages of $500 or

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more arising out of a motor vehicle accident, WisDOT must, with certain exceptions, immediately suspend the operating privilege and all registrations of the person against whom the judgment was rendered unless the person can provide proof of financial responsibility. Proof of financial responsibility may be given by filing certification of coverage under a motor vehicle liability insurance policy with minimum limits for any single accident of $25,000 for bodily injury to or death of one person, $50,000 for bodily injury to or death of more than one person, and $10,000 for property damage. Alternatively, proof of financial responsibility may be furnished by depositing with WisDOT $60,000 in cash or certain securities with a market value of $60,000. WisDOT must then hold the deposit of cash or securities to satisfy any judgment against the person making the deposit for damages resulting from the ownership, maintenance, use, operation of a motor vehicle, including damages for bodily injury, death, or property damage.

Under the bill, if WisDOT receives a record of conviction for operating a motor vehicle on a highway without having in effect a motor vehicle liability insurance policy with respect to the vehicle, the agency must suspend the person’s operating privilege and all registrations of the person unless the person can provide proof of financial responsibility. The proof of financial responsibility requirement remains in effect for three years from the date of conviction.

Wisconsin’s rate of uninsured drivers is estimated at approximately 14.3 percent and ranks 15th worst in the country, according to most recent statistics from the Insurance Research Council (IRC).

The national average of uninsured motorists is approximately 13.0 percent. Sanfelippo and Craig also cite nationally that 19 percent of fatal car accidents involve at least one invalidly licensed driver.

State law currently treats driving without a license, with a suspended license, or without car insurance as civil offenses and in turn ties the hands of law enforcement making it virtually impossible to go after individuals who repeatedly break the law.

Sanfelippo and Craig are hoping their legislation will help keep dangerous drivers off the road and better protect law-abiding citizens from financial harm with tougher penalties and enforcement in state law. IIAW’s Government Affairs Committee is currently reviewing the specifics of the proposal, but your Association shares the same goal of getting dangerous, irresponsible drivers off our roadways.

The bill is expected to be formally introduced before the end of the year with public hearings likely sometime in early 2020.

> Misha Lee IIAW Lobbyist

AGENCY OPERATIONS 3 TIPS TO INSPIRE AND MOTIVATE EMPLOYEES DURING PERFORMANCE REVIEWS Are you still relying on annual reviews to manage Employee Development?

Caliper shows you why coaching is the way to go.

Annual performance reviews are difficult for all involved. For the employee, they’re scrambling to remember what their goals were for the year and if they were able to meet those goals. For the manager, they’re trying to sum up a year’s worth of work and feedback into one review. There’s a lot to cover, and little time to do so.

While organizations put a great deal of effort into the review process, the traditional method of reviewing employee performance doesn’t produce a quality conversation that’s well suited for today’s work environment. In fact, a majority of employees believe traditional reviews have no impact on their performance, and only 5% of managers are satisfied with performance reviews. Something has to change, and that’s why more and more organizations are throwing them out and rethinking their review process.

As you begin to transform your performance management strategies, questions will arise. How often should managers and employees meet? How will employees be rated and how does pay align with those ratings? How simple or complex should they be? Should data be involved? If so, how does data play its part?

These questions can divert you from the most important aspect of reviews: employees need to be held accountable for their performance in a more inspiring, helpful way. By doing so, you’ll see more productive, engaged, and happy employees (and managers).

FREQUENT REVIEWS MAKE ACCURATE REVIEWS Fair and accurate feedback is critical to the performance of an employee. In fact, 85% would consider quitting after an unfair review. And the more infrequent they are, the more difficult it will be to recall all the details properly, which means that delivering a truly fair and accurate review is unlikely.

There’s a lot of potential for change in one year, or even a few months, due to changes in leadership, personal and professional priorities, or business objectives. Having oneon-one conversations once a year doesn’t allow for changing priorities and expectations to occur naturally and in real-time.

Consistent discussions better equip both managers and employees to keep their goals and development aligned with the right aspects of their greater goals as they pertain to the organization’s direction.

Continuous conversations also ensure that feedback happens in real-time, and provides an opportunity for regular documentation to refer back to in future conversations. This allows employees

and managers to properly recall details within the right context and timeframe, letting nothing fall through the cracks.

Taking it a step further, accurate reviews leverage technology and data to see how an individual’s performance stacks up against the expectations that have been laid out for them. Having key metrics available to perform such an analysis makes a big difference in the efficiency and overall development of the employee.

MAKE THEM ACTION-ORIENTED Don’t hold reviews just for the sake of review. While it’s an important conversation for employee development, they should also aim to accomplish something tangible and set up future expectations. Creating action-oriented goals and using frequent conversations to track an individual’s progress can dramatically increase motivation to accomplish their goals. Here are a few guidelines to making that happen: • Give both recognition and feedback. Call out what they’re doing well and encourage attention to areas of opportunity.

• Revisit your old conversations. Acknowledge when things from previous conversations are moving in the right direction, and when they could use more focus.

• Coach and support them. Offer them the guidance, resources, or tools they need to succeed.

Instead of simply reporting back to your employees everything they’ve done since your last conversation, make sure there is a clear outcome. Set a task, deliverable, or short-term goal to complete. These conversations should not only discuss performance, but drive it, too. You want employees to feel empowered and excited about where they’re heading, and giving them small, achievable outcomes helps them feel like they’re making real progress.

WORK TOGETHER Performance reviews shouldn’t be a one-sided conversation.

Managers and employees are a team and need to work together to achieve their goals. Viewing these one-on-one conversations as an opportunity for a coaching session is a more effective way to frame the matter at hand, more so than a performance review.

Coaching is a form of training and development that fosters a meaningful relationship between a manager and an employee, allowing the employee to leverage the knowledge and expertise of their manager to get the tools they need to carry out their own development. By allowing individuals to contribute their own input, feedback, wants, and needs, managers provide them with an environment where they feel supported and encouraged to find success. wisconsin INDEPENDENT AGENT

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To facilitate a forthcoming conversation with individuals you should: • Ask them about their vision for themselves • Listen with curiosity • Be accurate in your reflection by showing you understand their needs • Be supportive • Provide constructive, honest feedback • Communicate clearly These conversations should be a mutual discussion of what the individual wants and how the manager can help them get there. Conversations where the employees are being talked at, rather than listened to, can contribute to feelings of lowered morale, decreased autonomy, and less confidence. By working together, individuals gain a sense of contribution to and control over their own development, and are more likely to work towards accomplishing goals they’ve set for themselves.

With Caliper’s Essentials for Coaching, you’ll be able to motivate and engage your employees so they feel passionate about the work they’re doing. Want to take a look at how our products can help your company? Get in touch with our experts, and we can get you on the right path to developing more successful employees.

>A ggie Alvarez Caliper

JM Wilson 100th-WI-Indep-Agent Outlines.indd 1

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Penn National Insurance In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance.

Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and services of national carriers.

Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial lines-oriented agencies in Wisconsin.

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BRUCE KELLEY TO RETIRE AS PRESIDENT AND CEO OF EMC INSURANCE COMPANIES — Scott Jean Named as Successor —

Bruce Kelley has informed the Employers Mutual Casualty Company (EMC) Board of Directors that he is retiring from EMC Insurance Companies in March 2020. In anticipation that Kelley may be retiring at some point in the future, the board has been working over the last several years on a succession plan to assure a smooth transition for the leadership of EMC when the time came.

As part of that transition process now that Kelley has announced a retirement date, Kelley will resign as President and Treasurer of EMC Insurance Companies on Jan. 3, 2020. As of that date, Scott Jean will be named President and Treasurer of EMC reporting directly to the EMCC Board of Directors. On March 11, 2020 Kelley will retire as Chief Executive Officer, and Jean will become President, Treasurer and CEO for EMC Insurance Companies.

The Board of Directors conducted a thorough succession planning process to select Kelley’s replacement and is fortunate to find an excellent candidate in Jean to assume leadership of the organization. Jean is an outstanding leader with wide experience across the insurance industry, both in finance and strategy. The Board is confident he is the right person to lead EMC into the future.

“We thank Bruce for his years of dedication to the success of EMC,” said David Proctor, Chairman of the EMCC Board of Directors. “His legacy of unwavering leadership will live on, and I wish him the best in his retirement. And congratulations to Scott Jean as he takes on the leadership of EMC.”

INTEGRITY INSURANCE WINS 2019 NEW NORTH WORKPLACE EXCELLENCE AWARD Integrity Insurance, a property and casualty insurance company based in Appleton, has been named as the recipient of the 2019 New North Workplace Excellence Award. Chosen as the winner among companies nominated in the 18-county region, Integrity representatives accepted the honor at the Dec. 5 New North Summit in Green Bay. Now in its 11th year, the award recognizes organizations within the New North who are improving their competitive advantage through people practices that lead to successful business results.

A collaboration between New North Inc. and Right Management, businesses are evaluated for the award based on employee engagement, business outcomes and overall success.

“There are many great companies in the New North region.

We are pleased to honor one of them, Integrity Insurance, with this year’s New North Workplace Excellence Award,” says Barb LaMue, Executive Director of New North Inc. “Integrity has demonstrated tremendous business success, achieved through innovative practices and a focus on inspiring its employees.”

Integrity has had seven straight years of profitable growth. The company grew its personal and commercial lines direct written premiums from $100M to $200M two years ahead of plan.

Integrity aided its business success through creation of a culture of innovation which empowers and inspires its associates to solve creatively. Company leaders have put high importance on change management to improve performance.

Investments also are made by the company in innovation, along with Integrity associates through career development opportunities and team collaboration environments. Integrity celebrates its core values to shape its culture, and is committed to diversity and inclusion to create and support its workforce.

“We’re ecstatic to receive this award as it speaks volumes about our company, culture and associates,” says Integrity Insurance President Jill Wagner Kelly. “Integrity’s culture is fueled by innovation and empowerment. We inspire everyone, at all levels, to bring their best ideas forward and we give them the tools to succeed. We know the power of our company ultimately comes from our associates. Investing in them is an investment in our success.”

Founded in 1933, Integrity Insurance has 92 employees in the New North region. Through its network of independent insurance agents, Integrity offers business, auto, home and life insurance protection in the states of Iowa, Minnesota and Wisconsin.

Integrity and its partner, Grange Insurance, serve policyholders in 13 states under parent company Grange Enterprise, which has nearly $3 billion in assets and $1.2 billion in annual revenue.

Organizations located within the New North were qualified for the award. Companies did not need to be headquartered in New North for eligibility, but were required to have a division or location within the region.

WEST BEND MUTUAL INSURANCE HONORED WITH NATIONAL WORKPLACE AWARD FOR TENTH STRAIGHT YEAR WEST BEND, WI (December 5, 2019) – For the tenth year in a row and for the seventh overall in the insurers/providers category, Business Insurance magazine and the Best Companies Group have named West Bend Mutual Insurance Company one of the nation’s top places to work in the large property/casualty insurer category. West Bend, one of 100 companies nationally recognized in the 2019 Best Places to Work in Insurance program, ranked fourth in the large company category.

The national awards program is designed to identify, recognize, and honor the best places of employment in the commercial insurance industry, benefiting the industry’s economy, its workforce, and businesses. Companies participating in the program include property/casualty insurers, group life/health insurers, reinsurers, third-party administrators, and agents/ brokers.

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“At West Bend, our vision is to be the company of choice for our policyholders, agents, and associates,” said Kevin Steiner, president and CEO. “This top workplace award is strong evidence that our associates see West Bend as their company of choice. We believe our positive and motivating work environment helps our 1,300 associates deliver outstanding service to our agents and policyholders, which helps make West Bend their company of choice, too.”

West Bend offers their associates many amenities, including continuing education courses held in a state-of-the-art training facility; an on-site bank and medical clinic; a 7,100-square-foot fitness center; a variety of fitness classes; three miles of walking trails; on-site massage therapist; and wellness programs that include health risk assessments.

West Bend associates say they like being part of a company with community and environmental priorities. West Bend actively supports dozens of not-for-profit organizations, including Habitat for Humanity, United Way, and The MACC Fund. Care for the environment is promoted with gardens for associates to grow their own organic produce, reduction of paper use, elimination of plastic wear and Styrofoam in the on-site cafeteria, and the preservation of 160 acres of prairie on their campus. These are just a few of the company’s sustainability initiatives.

SECURA INSURANCE DONATES $25,000 TO NONPROFITS IN HONOR OF ITS AGENCY PARTNERS SECURA Insurance will donate $25,000 to five nonprofit organizations through a #GivingTuesday contest designed to help independent insurance agencies support organizations in their local communities.

Five participating agencies were selected at random to receive a $5,000 donation to a nonprofit of their choice.

“We are proud to continue the #SECURAgivesback campaign for the third year,” said Kevin Klestinski, Vice President-Specialty Lines Underwriting. “SECURA not only supports nonprofits, we also provide insurance coverage designed for the risks they face. #SECURAgivesback is our way of saying thank you to our agents for the work they do to protect nonprofits. We’re honored to give back to the organizations that make our communities a great place to live, work, and play.”

The winning agencies and the nonprofits that will benefit include: • North Risk Partners of Minnesota benefiting United Way of Central Minnesota • CIA Insurance and Risk Management of Shelby Township, Michigan benefiting Turning Point, Inc. • Maki Insurance Group of Anthem, Arizona benefiting One Step Beyond, Inc. • Shine Insurance Agency of Bloomington, Indiana benefiting Monroe County Humane Association • Dallman Insurance Agency of Wisconsin benefiting Changing Winds Equine Therapy, Inc. For additional information about SECURA’s charitable giving and community support visit secura.net/community. SECURA’s Specialty Lines office is located in Middleton, Wis.

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ACUITY ASSETS REACH $5 BILLION FOR FIRST TIME IN HISTORY Acuity announced that for the first time in its history, it has surpassed $5 billion in assets. The insurer has increased its assets nearly five-fold in 16 years, including adding $1 billion in under three years.

“Thank you to all our employees and independent agents,” said Ben Salzmann, Acuity President and CEO. The only way we could have achieved this milestone was through a combination of everyone’s dedicated efforts.”

The amount of assets Acuity manages is an important indicator of the insurer’s continued ability to meet obligations to policyholders.

“Strength in assets assures policyholders and agents that Acuity is based on a solid, secure capital foundation. That gives them added trust in Acuity to place their business with us, which generates additional revenue,” said Wendy Schuler, Acuity Vice President - Finance.

Acuity’s growth is also a validation of its business strategy, which has produced strong gains over the past 20 years in written premium, policy count, net income, and policyholders’ surplus.

Acuity has doubled its top-line revenue in the past eight years and is ranked as the 60th largest of 2,600 property-casualty insurance companies in the nation.

“We have the agents, employees, and strategic plan in place to sustain our momentum,” Salzmann said. “Our continued strong growth shows we are pricing both fairly and competitively, which helps independent agents write more business and allows us to serve as a source of financial security for more customers.”

EMPLOYERS MUTUAL CASUALTY COMPANY (EMC) ANNOUNCES PROMOTIONS AT THEIR MILWAUKEE BRANCH OFFICE Mark Neubauer is promoted to Branch Manager at EMC’s Milwaukee Branch. Mark began his career at EMC in 2012 as a Senior Underwriter, was promoted to Underwriting Supervisor shortly after and, in 2017, Mark was promoted to Underwriting Manager.

Gail Ostaszewski is promoted to Underwriting Manager at EMC’s Milwaukee Branch. Gail is an experienced insurance professional and has her CPCU and more than 30 years of experience in the industry, all in the Wisconsin marketplace. Gail has been with the EMC Milwaukee Branch for seven years, with the last six as the Underwriting Supervisor.

Matt’s Mixology Mulled Cider with Cloved Oranges

An oldie but a goodie and the perfect canvas for spice and citrus, this mulled apple cider will make you feel all warm and cozy on the inside. As an extra bonus it will also make your house smell wonderful.

Ingredients

Steps to Make It

2 liters apple cider

1. Pour the cider into a large pan on a low heat.

2. W hile the cider is heating up, poke the cloves into the orange.

3. A dd the orange, sugar and all the spices to the cider and turn the heat up to a boil.

4. O nce it is brought to a boil, reduce to a simmer for about eight minutes.

5. Ladle into mugs while warm and toast to the season!

whole cloves 1 orange 3 star anise 1/2 teaspoon grated nutmeg 1 cinnamon stick 1 vanilla bean, halved 4 tablespoons sugar

FOOD FOR THOUGHT

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And the potential for success for you.

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Leo Plese (630) 328-7076 lmplese@autoclubgroup.aaa.com Insurance • Membership • Travel • Banking AAA Independent Agents are not employees of AAA The Auto Club Group; but, rather are independent contractors. Insurance underwritten by one of the following companies: Auto Club Insurance Association, MemberSelect Insurance Company, Auto Club Group Insurance Company, Auto Club Property-Casualty Insurance Company, Auto Club South Insurance Company, Auto Club Insurance Company of Florida, or non-affiliated insurance companies. ©2019 The Auto Club Group.

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