July issue of the IIAW's Independent Agent Magazine

wisconsin

INDEPENDENT AGENT JULY 2018

ADVOCATE

BUILD

INSPIRE

RENEW TODAY WITH THE

INDEPENDENT INSURANCE AGENTS OF WISCONSIN

Acuity Loves You! PROU D TO PARTNER WITH THE BEST I N DEPEN DEN T AG ENTS IN THE BUSINESS!

wisconsin

INDEPENDENT AGENT JULY 2018

Leadership Conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Open Door Policy The Many Faces and Features of The Independent Insurance Agents of Wisconsin.6 Agency Operations Why Insurance Agencies Fail to Find and Keep the Best Talent. . . . . . . . . . . . . . . . 16 Earn More Business by Breaking Up with Prospects (Don’t Get Ghosted). . . . . . . . 20 Technology 4 Reasons Car Insurance Has Changed Forever. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Errors & Omissions Avoiding Operation Pitfalls: An ‘Every Day’ Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Emerging Leaders Spotlight Matt Frank, Robertson Ryan & Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Virtual University Murals Revisited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Ask an Expert. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

ATERisky Business

Reality of Texting for Insurance Agencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Members in the News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Food for Thought. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2017-2018 Executive Committee President............................................................ Lise Meyer Meyer Insurance - P.O. Box 633, Sauk City, WI 53583 President-Elect.................................................... Jason Bott Robertson-Ryan & Associates - 330 East Kilbourn Ave., Milwaukee, WI 53202 Secretary-Treasurer......................................Chris Costakis Avid Risk Solutions- 2501 Parmenter Street, Ste 200A Middleton, WI 53562 Chairman of the Board................................. Matt Weimer Diversified Insurance Solutions - 100 North Corporate Dr., #100, Brookfield, WI 53045 State National Director ................................Steve Leitch Leitch Insurance - P.O. Box 85, River Falls, WI 54022 2017-2018 Board of Directors Mike Ansay, Ansay & Associates 101 East Grand Ave. #11, Port Washington, WI 53704 Cindy Burns, Burns Insurance 500 South Central Ave., Marshfield, WI 54449 Marc Petersen, American Advantage-Petersen Group 15171 W. National Ave., New Berlin, WI 53151 Jack Riesch, R&R Insurance Services P.O. Box 1610, Waukesha, WI 53187-1610 Chad Tisonik, HNI 16805 W Cleveland Ave, New Berlin, WI 53151

On The Cover…

You’ve made the choice to build your agency on independence, but that doesn’t mean you’re alone. Membership in the Independent Insurance Agents of Wisconsin and the Independent Insurance Agents and Brokers of American allows you access to an exclusive network of more than a quarter million independent insurance professionals nationwide that receives advocacy, business solutions and technical expertise from the industry thought leaders. As your agency seeks solutions to challenges and opportunities, turn to the IIAW. Our experience combined with our vast network of insurance professionals seeks to provide you with the optimal solutions. We do the work so you don’t have to!

> A DVERTISERS & INFORMATION

2017-2018 Committee Chairs

Acuity................................................................ 2

Agency Services ............................................Kim Dandrea M3 Insurance - N19 W24200 Riverwood Dr. Waukesha, WI 53188

Leadership Conference..................................... 4

Automation/Technology ...............Cathleen Christensen Hierl Insurance - P.O. Box 949, Fond du Lac, WI 54936 Emerging Leaders ..........................................Ryan Waite Neckerman Insurance Services - 6200 Mineral Point Road Madison, WI 53705 Employee Benefits.......................................... Mike Farrell David Insurance - 1300 South Green Bay Rd Racine, WI 53406 Government Affairs .......................................Jeff Thiel R&R Insurance Services - P.O. Box 161 Waukesha, WI 53187 Carrier Relations ......................................... Kevin Murray Johnson Insurance Services - 525 Junction Road, Madison, WI 53717

IIAW CE . .......................................................... 12 Secura.............................................................. 13 Western National..............................................18 Integrity........................................................... 19 Robertson Ryan & Associates........................... 21 Badger Mutual................................................. 25 The IMT Group................................................. 25 Keystone......................................................... 26 JM Wilson........................................................ 27 Berkshire Hathaway/Guard............................. 29 Erickson Larsen Inc.......................................... 31

Marketing/Membership Development....Jamie Durocher Arlington Roe- 2 Carlson Parkway N., Suite 175 Plymouth, MN 55447

IIAW Pre-licensing Classes.............................. 34

Technical...............................................Timothy Kakuska Robertson-Ryan & Associates - P.O. Box 547 La Crosse, WI 54602

AAA Wisconsin................................................. 38

Protect Your Agency....................................... 35

RENEW TODAY WITH THE

Pam Utpadel, Universal Insurance Advisors 100 West Lawrence St. Suite 313, Appleton, WI 54911 Ryan Waite, Neckerman Insurance Services 6200 Mineral Point Road Madison, Wisconsin 53705

West Bend....................................................... 39

INDEPENDENT

Darrel Zaleski, Spectrum Insurance Group 4233 Southtowne Drive, Eau Claire, WI 54701

WISCONSIN INDEPENDENT AGENT

Trusted Choice .................................. back cover JULY 2018 | 3

B

2018

LEADERSHIP C NFERENCE JULY 18-20 WILDERNESS RESORT WISCONSIN DELLS

REGISTER AT IIAW.COM

EMERGING LEADERS

SCHEDULE OF EVENTS WEDNESDAY, JULY 18 3pm -4pm

ow to Prevent Agents E&O: Pollution Coverage Gaps in Commercial H General Liability and Commercial Property Policies (1 CE)

Dustin Helmenstine, American Risk Management Resources Learn the details of the pollution exclusion commonly found in General Liability and Property policies using claim scenarios.

4pm-6pm

Wilderness Escape Room

A Leadership Conference ffiirst, 12 attendees at a time will have 60 minutes to solve clues and puzzles and navigate their way out of either The Basement Room or The Hotel room, located on-site at the Wilderness Resort.

5pm-8pm

Poolside Cabana

Grab some food and a drink and relax! The poolside cabana is back and you don’t want to miss it! Sponsor: SECURA Insurance

THURSDAY, JULY 19

“Excalibur Culture”. Participants will learn what Excalibur does to keep the team motivated to go above and beyond and provide a WOW experience to their clients.

12pm-1pm 1pm-2pm

Lunch Roundtable – Insurance Industry Technology Experts

Moderator: Matt Banaszynski Wilderness Ballroom Hear from the experts on the latest technology trends impacting the insurance industry and how your agency can stay one step ahead. Panel: Greg Kirsch, Ansay & Associates; Bob Van Beek, Secura; Pete Weigel, Midwest IT

2:15pm-4:15pm “ How to Become a Social Media Rockstar” including a special presentation on “Creepy Facebook Ads”

Spencer X Smith, Founder of SpencerXSmith.com Wilderness Ballroom Social media is the best means ever invented to grow both your personal reputation as well as that of your organization. Spencer will share stories and strategies that have worked for him and that you won’t hear anywhere else.

8am-9am Breakfast 9am-9:30am Welcome Presentation: Emerging Leaders Committee Update

5:30pm-9pm

9:30am-11am Building the Digital Customer Experience

FRIDAY, JULY 20

Dan Lau & Ryan Waite Wilderness Ballroom

Jeff Roy, President & CEO Excalibur Insurance Group Wilderness Ballroom There are pivotal moments in every business category where success can be rendered simply by changing your perspective, or angle of approach.

The consistent thread for every company who wants to build a tribe of raving fans is simple.

Stop thinking “Digital Technology” and start creating “Emotional Relevance”.

Join Jeff Roy as he takes you under the hood and shares his team’s path to humanizing the digital experience. You’ll learn why they exist as a brand, and how they implemented a multi-faceted digital strategy to evoke emotional relevance as a fundamental element of their customer journey. Learn how Excalibur generates 450 to 600 quotes every month and has developed a sales process to give their prospects and clients a unique experience.

11:15am-12pm

Insurance Employee Experience

Una Roy, VP Operations Excalibur Insurance Group Wilderness Ballroom During this 45-minute presentation, Una Roy covers what she will explain as the

Backyard Patio Party Wilderness Resort Outdoor Patio After a day full of interesting topics and conversation, it’s time to relax on the patio at the Wilderness Resort. We will have plenty of food and drinks, plus outdoor games for everyone to enjoy.

8am-9am Breakfast 9am-11am Federal and State Data Privacy Laws: Are You Compliant? (2 CE) Bill Larson, NetGen Data Security Consulting Wilderness Ballroom Improve your understanding of the Gramm-Leach-Bliley Act (“GLBA”) with respects to the law and its importance to insurance agents and the impact of non-compliance on a carrier relationship and contracts.

11:10am-12pm Cyber Risk: What Are the Threats and How To Be Protected? (1 CE) Edward Chang, SVP Cyber Risk Management Travelers Wilderness Ballroom He has prosecuted Romanian phishers, Nigerian fraudsters, and other computer hackers and cyber criminals. Eddie Chang discusses the top threats insurance professionals are facing and the steps to take to protect information as well as your reputation.

12pm

Conference Ends

FEATURED SPEAKERS

REGISTRATION INFORMATION

Jeff Roy As the CEO of the Excalibur Insurance Group, Jeff’s

willingness to invest, will challenge you to be better.

As a leader and coach Jeff is fueled by 3 things - technology, people, and big ideas. He also believes that the pinnacle of innovation for an entrepreneur is best measured by the number of times you’ve tried something new - and learned from the adventure when it didn’t go as planned.

What gives Jeff and his Excalibur team their edge? His peers believe it’s because he refuses to wait for someone else to make a difference. In 2016 Roy and Excalibur won Aviva Canada’s ffiirst Broker’s Hackathon. A contest designed to encourage groundbreaking ideas on how technology can enhance the industry.

And you may be surprised to learn that Excalibur Insurance is not in the insurance business; they’re in the experience business.

As evidenced by the way they’ve challenged the status-quo, once you start looking at your business that way, it totally changes your perspective.

Una Roy She faces every obstacle, with Everest-like expectations.

In fact, after more than 22 years in the insurance industry, don’t even think about throwing a challenge in Una’s path unless you’re looking for serious results. Some call it leadership, but those who know her best will simply tell you she always had a knack for creating repeatable success and attracting the right people. The reality?

Regardless of context, Una loves building a game plan that increase the odds of winning.

She’s proven that a well-designed system can attract and empower people to achieve the unexpected. The result? She and her team of volunteers raised an unprecedented $500,000 in a community with only a population of 3200. As Excalibur’s VP of Operations, she’s came to the same conclusion years ago - talent doesn’t fififind you by chance. Una believes that ffiirst you need to know “what you stand against”, and then you need to engineer a system that makes it easier to attract and inspire like-minded people who live to make a difference. As a coach, leader, colleague, wife, mom, volunteer and friend - when it comes to fifinding a better way to help, Una’s always been hardwired for success.

The IIAW Leadership Conference registration options (fififind full descriptions at IIAW.com):

Option 1: Full Registration - $239 Members; $259 Non-Members After June 13 - $259 Members; $269 Non-Members

Option 2: Non-Industry Spouse: $119 Option 3: Children (5 & Older) - $40. Children 4 & Under – FREE

WATERPARK PASSES

Guests receive waterpark wristbands at check-in and have access to all waterparks on the Wilderness Resort property. Guests may obtain wristbands any time after 12PM even if rooms are not ready until check-in at 4 PM.

CANCELLATIONS

Cancellation request received by June 18, 2018, 2018 will receive a complete refund. After the cut-off date, there is a 72-hour cancellation policy per room. Reservations cancelled prior to the 72hour mark will be charged a $30 fee. Cancellations within 72 hours will pay the entire room rate.

HOTEL INFORMATION

Room Rates: July 18 & 19 - $169.99; July 20 - $199.99. For reservations, call (800) 867-WILD and note that you are attending the IIAW Leadership Conference. Refer directly to the Wilderness Resort for full reservation and cancellation policies at the wildernessresort.com. The Wilderness Resort is at 511 E Adams St, Wisconsin Dells. The hotel reservation deadline is June 18, 2018. All conference events are hosted at the Wilderness Resort. Conference dress code is resort casual.

REGISTER AT IIAW.COM

EXCLUSIVE SPONSORS

PARTNER SPONSORS Aflac

Central Insurance Company

Partners Mutual

Wisconsin Mutual

Amerisafe

CNA Insurance

Philadelphia Insurance

WPS Health Insurance

Arlington/Roe & Co.

EMC Insurance

QBE

Zurich Insurance

Auto-Owners Insurance

Madison Mutual

OPEN DOOR POLICY

THE MANY FACES AND FEATURES OF THE

INDEPENDENT INSURANCE AGENTS OF WISCONSIN 2018 has been a transformative year for the Independent Insurance Agents of Wisconsin and we are only half way through it.

We welcome several new staff members (Emily and Emma) and we are gearing up to create a new position, Director of Technology Solutions, to better serve our members and help them adopt and integrate new technology solutions. We also said good bye to a legend in the Big I family, Mary Morrison, as she embarks on the next phase in her journey, retirement.

Some may look at the Big I and see fresh faces and new products and services, but rest assured this organization is steeped in tradition.

All these positive changes can be attributed to one thing, evolution.

We have fresh staff members with an expertise our organization has not previously employed or deployed. The IIAW is constantly reinventing its value proposition to ensure its responsive to the needs of our members. As the industry and the needs of the

independent agent evolve, so do we. Ask any business owner, change can be difficult, but in difficulty lies opportunity. A phrase I have stated many times before.

The Association continues to evolve into offering consultative services to help its members address their most pressing needs. No matter the challenge or opportunity facing your agency, engage with us. The IIAW is committed to advocating for the independent agency channel, helping you build your business and inspire you to become the agency of the future. We will do whatever it takes to help your agency prosper. One Association. Thousands of Resources.

Renew your membership today.

OUR MISSION IS TO HELP INDEPENDENT AGENCIES SUCCEED —AND WE WANT TO HELP YOU. MATT

Banaszynski Chief Exectutive Officer

MALLORY

Cornell Director of Risk Managment

KIM

Kramp Accouting Supervisor

TRISHA

Ours Director of Agency & Member

EMILY

EMMA

Mott Insurance Services Coordinator

Kauffman Marketing & Events

CONTACT THE IIAW OFFICE (608)-256-4429 www.iiaw.com

Independent Insurance Agents of Wisconsin 725 John Nolen Drive Madison, WI 53713

6 | JULY 2018

WISCONSIN INDEPENDENT AGENT

WE UNDERSTAND WHAT MATTERS MOST TO YOU AND WE HAVE THE TOOLS TO HELP —THAT’S OUR JOB. You’ve made the choice to build your agency on independence, but that doesn’t mean you’re alone.

Membership in the Independent Insurance Agents of WISCONSIN and the Independent Insurance Agents & Brokers of AMERICA allows you access to an exclusive network of more than a quarter million independent insurance professionals nationwide that receives advocacy, business solutions and technical expertise from the industry’s thought leader.

As your agency seeks solutions to challenges and opportunities, turn to the IIAW. Our experience combined with our vast network of insurance professionals seeks to provide you with the optimal solutions. We do the work so you don't have to!

ADVOCACY

When independent agents need a voice on Capitol Hill and in the halls of the state capitol, legislators listen to the Big “I”.

Our government affairs teams work around the clock in Washington, D.C. and in Madison, WI. to protect your clients and your livelihood. Combine our expertise with the voice of independent agents—and a million-dollar PAC—and we’ve got the power to protect your independence year-round. We will fight for you on flood insurance, health care, taxes, insurance regulation and more while you run your agency. Recent legislative victories include: certificates of insurance legislation, reforming and closing the LGPIF, decreasing certian motor carrier liabilty limits and defeating numerous adverse legislative proposals.

AGENCY CONSULTING AND RISK MANAGEMENT Our new Agency Risk Management program is a health check for your agency. Engaging in Agency Risk Management services can offer you piece of mind in knowing your agency is operating efficiently and effectively. Our Consulting and Agency Risk Management team works alongside you and your agency as an independent partner to address technological, operational, financial and strategical challenges to become the agency of the future.

Since February 2018, 35 agencies have completed this 5 minute Risk Analysis. Upon completion you will receive a Risk Score and a custom Risk Profile to help you start proactively mitigating risk in your agency. Protecting and investing in your most important asset starts here!

INSPIRATION THROUGH EDUCATION The IIAW is inspiring new and exisitng insurance professionals to become the Agency of the Future. Our Professional Development Program, educational course offerings, and industry leading events are inspiring, educating and positioning our memembers to re-train their brain, re-tool their employees and re-shape their business to be responsive to today’s consumer.

Harness your ability, unleash your potential, and deliver solutions.

> Matt Banaszynski is the CEO of the Independent Insurance Agents of Wisconsin. Contact him at matt@iiaw.com.

WISCONSIN INDEPENDENT AGENT

JULY 2018 | 7

T H A N K YO U, I I AW PA RT N E R S P O N S O R S

Aflac Location of Company: National presence Date Company Was Founded: 1955 Current Officers: Dan Amos; WI – Mat Matarrese, Holly Marita, Mary Stark

being recognized in the Ward’s Top 50 since 2009, we’ve maintained a policyholder retention rate over 90%*. When you only do one thing, you better do it well and workers’ comp is all we’ve ever done. *Policyholder retention rate based on voluntary business that we elected for renewal quote: 93.0% in 2017. © 2018 AMERISAFE, Inc. AMERISAFE and the AMERISAFE Logo are registered trademarks of AMERISAFE, Inc. All rights reserved.

Products Company Specializes In: Enrollment Support with Communication and Education, Supplemental Products, Value Added Services, Platforms and Technology, Revenue Generation in all lines: Work Comp, Health, Cross Selling Strategies Outlook for The Company’s Future: Aflac strives to be the #1 benefit solution provider in the US. We assist brokers and clients to create a better enrollment experience from our people that can communicate and educate at the employee level. Our Platforms can assist with enrollment all the way to benefit administration and become the system of record. Our Products are industry leading as we have an expansive portfolio from Group STD & LTD, Life, Accident, CI, Hospital and more.

Our individual products fulfil the need all the way down the individual or direct consumer.

We will continue to grow our people, products, and platform to adapt to the ever changing health care market.

AMERISAFE® Location of Company: Headquartered in DeRidder, LA while operating in 27 states.

Date Company Was Founded: AMERISAFE was founded in 1986 and began public trading on NADAQ (AMSF) in 2005.

Current Officers: Products Company Specializes In: Workers’ comp insurance for small to mid-sized businesses in industries typically generating low frequency, high severity claims.

Outlook for The Company’s Future: AMERISAFE is a specialty provider of workers’ comp insurance focused on small to mid-sized employers engaged in hazardous industries.

With more than 30 years of underwriting experience, we know the complex exposures that are found in these industries. Because we know the risks, we are proud to provide comprehensive safety services intended to keep workers on the job. Our intensive claims management practices assist us in reducing the overall cost of our claims while keeping the quality of care at its highest. Additionally, our premium audit services ensure that our policyholders pay the appropriate premiums so there are no surprises during final audit.

Along with these services, an “A” (Excellent) rating by A.M. Best and

8 | JULY 2018

Arlington/Roe Location of Company Headquarters: 8900 Keystone Crossing, 8th Floor, Indianapolis, IN 46240 Founded: August, 1964 Officers: James A. Roe, President and Chief Executive Officer Andy Roe, Executive Vice President Janet Phillips, Executive Vice President Jim Eades, Executive Vice President and Chief Brokerage Officer Rick Pitts, Vice President and General Counsel J. Patrick Roe, Vice President, Director of Marketing Vice Presidents: Kevin Leibold, Chad Trainor, Mark Maucere, John Immordino, Mark Garner, Katie Roe Weiper, Caitlyn Jones Products Company Specializes In: Arlington/Roe is a property and casualty managing general agency and wholesale insurance broker specializing in aviation, bonds, commercial binding, commercial brokerage, personal lines, farm, healthcare and human services, professional liability, transportation and workers’ compensation. In addition to specific department expertise, we specialize in finding the right solution for complex risk challenges through cross-department teamwork and access to a broad range of over 200 carriers.

Outlook for Company’s Future: Arlington/Roe’s growth includes significant increases in sales, state offices and markets available to assist our independent agents. In five years, premium volume is expected to grow to $300 million from the current $210 million. For Wisconsin, however, perhaps the most significant future development will be hiring underwriters and brokers and opening a ninth state office in Wisconsin to service continued growth.

President and CEO Jim Roe said, “We are an independent third-generation, family-owned wholesaler . . . and we intend to continue that way. Our business success has been built on trust and based on ‘Doing the Right Thing’ since my father started the company in 1964. We continue to deliver new solutions for emerging risks and look forward to growing our relationships with existing and new agency partners in Wisconsin.”

Company Website: ArlingtonRoe.com

WISCONSIN INDEPENDENT AGENT

T H A N K YO U, I I AW PA RT N E R S P O N S O R S

Auto Owners Location of Company: Lansing, Michigan Date Company Was Founded: July 1, 1916 Current Officers: Jeff Tagsold, chairman & CEO; Dan Thelen, president; Carolyn Muller, executive vice president Products Company Specializes In: A wide range of preferred personal, commercial and farm products. Auto-Owners also specializes in garage risks, contractors, light manufacturing, and commercial auto including trucking as well as main street BOP business. We also offer loss control services within the state of WI. We offer a full range of life, health and annuity products taking care of all our policyholders needs.

Outlook for The Company’s Future: Our company’s goal for the future is to continue to provide a wide array of insurance products and protection at very competitive prices.

We will continue to be committed to the independent agency system in marketing our products. We’ve grown to become the 14th largest property & casualty company in the U.S. despite writing in only 26 states. We look forward to continued growth, in part due to our acquisition of Atlantic Casualty Insurance Company, an excess and surplus lines company, in 2016, and our affiliation with Concord General Mutual Insurance in 2017.

Central Insurance Companies Location of Company: Home Office is located in Van Wert, Ohio Regional Offices in: • Waltham, Massachusetts (Northeast Regional Office) • Alpharetta, Georgia (Southeast Regional Office) • Irving, Texas (Southwest Regional Office) • Van Wert, Ohio (Central Regional Office)

Date Company Was Founded: April 17, 1876

Current Officers: F. W. Purmort, Chairman of the Board and President T. R. Eikenbary, Vice President – Treasurer S. A. Etzler, Vice President – Risk Management B. S. Faurote, Vice President – Human Resources & Facilities T. C. Glenn, Chief Actuary K. A. Goad, Chief Financial Officer M. P. Guth, Senior Vice President – Personal Lines C. M. Hurless, Vice President – Customer Services P. J. Jackson, Vice President – Central Regional Office M. P. Korte, Vice President – Information Technology S. K. Moore, Senior Vice President – Secretary – Southeast Regional WISCONSIN INDEPENDENT AGENT

Office E. P. Purmort, Vice President – Northeast Regional Office T. L. Rauch, Vice President – Southwest Regional Office J. L. Ringwald, Vice President – Commercial Lines T. E. Simpson, Vice President – Claims C. E. Wasson, General Counsel

Products Company Specializes In: Property/casualty carrier specializing in auto, home, and business coverages.

Outlook for The Company’s Future: At Central, we have stayed anchored to fulfilling the promise to provide security, protection and peace of mind to our customers for over 140 years.

The outlook for Central is strong and remains aligned with and in support of the independent agency channel. As has been the company’s recent trend, we plan to maintain the stability of our company and continue to grow Policyholder Surplus beyond the record high level we recorded in 2017. We also look to maintain our consistent growth in premium, which has been at a rate above the industry. And, we will continue to target financial performance that outpaces that of the industry, despite the recent trends in adverse weather activity that has been above historical levels.

CNA Location of Company: CNA Wisconsin 10000 Innovation Drive, Suite 320 Wauwatosa, WI 53226 Date Company Was Founded: 1897 Current Officers: • Dino E. Robusto, Chairman and Chief Executive Officer • Doug Worman, Executive Vice President and Chief Underwriting Officer Local Leadership: • Kristina Talkowski, Branch Manager, CNA Wisconsin • Email: kristina.talkowski@cna.com • Phone: 414-844-2544 Products Company Specializes In: CNA provides a wide range of unique and comprehensive insurance solutions in the areas of: construction, manufacturing, technology, financial institutions, healthcare, professional services, small business, real estate, management liability, inland marine, monoline umbrella and cyber.

Outlook for The Company’s Future: Independent agents expect to

JULY 2018 | 9

T H A N K YO U, I I AW PA RT N E R S P O N S O R S

work with insurance specialists who have the expertise and understanding of their clients’ business needs, and can deliver full and meaningful solutions. That is what CNA brings to the table. With a powerful legacy, an international reach built on a strong local presence, well-known business insurance expertise, and a deep commitment to our agents, brokers and customers, we offer more than just a policy – we deliver distinctive insurance solutions and promise a superior customer experience. It is these core attributes and our relationships with you that provide a strong foundation for continued mutual growth.

Products Company Specializes In: • Commercial (property, liability, auto, workers’ compensation, umbrella, cyber liability, employment practices liability, businessowners, linebacker) • Personal (auto, home, motorcycle) • Life (EMC National Life) • Target markets (manufacturing, wholesaler/distribution, municipalities, schools, breweries and wineries, water well drillers, liquid waste haulers, auto services) Outlook for the Company’s Future: The company enjoys a strong surplus position and is well positioned for growth. We have a strong franchise with our independent agent partners in Wisconsin and are looking to continue our pattern of steady growth into the future. Our goal is to provide a stable market for our independent agents, allowing

EMC Insurance Companies Location of Company: Des Moines, Iowa Date Company Was Founded: 1911 Current Officers: • Bruce Kelley, President and CEO • Mick Lovell, Executive Vice President-Operations • Scott Jean, Executive Vice President-Finance & Strategy Products Company Specializes In: • Commercial (businessowners, property, liability, auto, workers’ compensation, umbrella, cyber liability) • Personal (auto, home, motorcycle) • Life (EMC National Life) Outlook for the Company’s Future: EMC is a financially solid, secure, trusted mutual insurance company that operates with honesty and integrity. Those are key components of our brand and what we represent. But in this competitive market, having the basics isn’t enough, we must continuously develop and deliver new and better products that will make us—and our agents—stand out. Last year, we improved our manufacturing, wholesalers, equipment breakdown, cybersolutions and personal lines coverages. This year, we introduced a new breweries and wineries product. We listen to our agents and work with them to develop what’s needed for the local marketplace.

them to provide suitable solutions to their clients.

We are investing in a steady stream of advanced tools, products, services and resources. We’re seizing opportunities and tackling challenges head on. We are currently involved in incubators, accelerators, wearable devices, telematics, drones, new technology platforms and more. Insights from data and analytics is helping us refine our product development, underwriting, pricing and risk selection, as well as improve our loss control and claims service.

Milwaukee Branch Version Company Name: EMC Insurance Companies Location of Company: Milwaukee, Wis. Date Company Was Founded: 1956 Current Officers: • Dave Young, Resident Vice President and EMC Milwaukee Branch Manager

10 | JULY 2018

About EMC Insurance Companies EMC Insurance Companies is among the top 60 insurance organizations in the country based on net written premium, with more than 2,500 employees. Employers Mutual Casualty Company (EMCC) was organized in 1911 to write workers’ compensation protection in Iowa.

Today, operating under the trade name EMC Insurance Companies, the company provides property and casualty insurance products and services throughout the United States and writes reinsurance contracts worldwide. EMCC and one or more of its subsidiary companies is licensed in all 50 states and the District of Columbia. For more information, visit www.emcins.com and www.CountonEMC.com.

Madison Mutual Insurance Company Location of Company: Edwardsville, IL Date Company Was Founded: January 1920 Current Officers: Michael H. Wenos- CPCU, President; Ann Frank- Vice President and Treasurer; Jaime Wagoner- Director of Sales and Agency Development; Brian Gifford- CPCU, CHFC, CLU, Director of Claims; Dan Navarro- Director of Underwriting; Paul Beckley- Director of IT Products Company Specializes In: Madison Mutual is proud to specialize in Auto, Home, Farm and Personal Umbrella insurance for residents in Illinois, Missouri, Indiana, and Wisconsin.

Outlook for The Company’s Future: Madison Mutual Insurance Company has always believed that to ensure that our policy holders are taken care of, we must provide quality products and assistance. At Madison Mutual, our agents and policy holders are not just clients, they are family. The future of the company is strong. Madison Mutual intends to do the same thing we have done for almost 100 years in business, which is to build and maintain a superior relationship with our policy holders, independent agents, and the local community through our competitive pricing and care of their well- being.

WISCONSIN INDEPENDENT AGENT

T H A N K YO U, I I AW PA RT N E R S P O N S O R S

Partners Mutual Insurance, an affiliate of Penn National Insurance Location of Company: Waukesha, Wisconsin Date Company Was Founded: 1931 Current Officers: Richard Keith, president & CEO Mark Ewert, vice president, COO & secretary Products Company Specializes In: We offer a broad range of personal and commercial insurance products sold exclusively through independent agents throughout Wisconsin and Iowa.

Outlook for The Company’s Future:Partners Mutual Insurance is proud of the rich history we have enjoyed since our founding in 1931.

Through our affiliation with Penn National Insurance in 2012, our premium for Commercial and Personal Lines continues to grow year over year, We hold an excellent, stable financial strength rating from A.M. Best.

Over the last five years, Best cited that the ratings reflect the group’s excellent risk adjusted capitalization, profitable underwriting and improvement in pre-tax operating earnings in recent years.

The company’s strong performance has enabled total policyholders’ surplus to increase significantly, ensuring that we stand ready to fulfil our mission of helping people feel secure and make life better when bad things happen.

For the past few years, we’ve focused on delivering a new system for Commercial Lines. The launch of our Policy Administration System and new quoting system last year will allow us to expand product offerings and meet future market challenges. First introduced for Commercial Lines Businessowners and Workers’ Compensation lines of business, new lines of business continue to be introduced throughout the year.

We introduced many self-service features through our agency portal, PennConnect, giving agents the ability to better integrate Partners quoting into their agency workflows. Daily transaction reports, policy and account information, online first-notice-of-loss reporting and other online tools help agencies access information needed to more efficiently and quickly serve their clients.

Time is of the essences when it comes to claim reporting. We’ve put in place online tools for first notice of loss reporting for agents and policyholders as well as a dedicated 24/7 Workers’ Compensation reporting 800-number. Behind the scenes, we are working to integrate different platforms into one seamless system to offer more reporting information.

WISCONSIN INDEPENDENT AGENT

Wisconsin Mutual Insurance Headquarters: Madison, WI Founded: 1903 Current Executives: Dan Keyes, President/CEO

Holly Casavant, Corporate Secretary/HR Director

Kurt Goetzka, Assistant Treasurer

Kellye Keyes, Director of Operations

Products Company Specializes in: WMI has written personal lines insurance in Wisconsin, and recently Minnesota , through independent agents for over 100 years. Throughout this time we have focused on customer service and the “human touch” that gives our policyholders confidence in the insurance process and our partnership. All calls are answered by a live person who directs them to the WMI specialist that can best service their needs. However, we also appreciate the convenience that technology offers and provide a variety of online tools as well.

Recently we have focused more on how we can evolve and grow with the changing needs of our policyholders and that has led to more coverage options and endorsements. Our personal lines products include auto, home, umbrella and farm.

In addition, Wisconsin mutual is proud to support the small to medium size farms that are so critical to Wisconsin and Minnesota. We continue to grow in this market segment and pride ourselves on the local expertise we can offer farmers in the communities we serve.

We currently concentrate our commercial books of business on small to medium sized residential accounts and small artisan contractors.

Outlook for Future Wisconsin Mutual’s strong performance is a product of the contributions of our dedicated employees and agents providing exceptional customer service to our policyholders through both person-to-person interaction and the effective use of technology.

Finding a balance between maintaining our industry-leading expense ratio and continuing to invest and cultivate the use of technology is a strong focus in our immediate future.

We also strive to meet the developing needs of our policyholders while offering new products that are competitively priced and offer valuable coverages.

Comments: Independent Agents interested in learning more about WMI can contact are Marketing Representative Caleb Fredrickson at 608-8281403 or Director of Operations Kellye Golden at 608-828-1431 Company Website: Learn more and check out our new website at www. wiins.com

JULY 2018 | 11

CONTINUIING EDUCATION IIAW ONLINE AND LOCATION CE CLASSES IIAW Prelicencing School - Life and Health Date: July 9-12, 2018 Location: Madison, WI Time: 8:30 am - 4:00 pm IIAW Webinar: Farm Property Coverages 3 CE Credits Approved Date: July 12, 2018 Location: IIAW Webinar - iiaw.com/events Time: 12:00 pm - 3:00 pm IIAW Webinar: Contractual Liability..Seperation Fact From Fiction 3 CE Credits Approved Date: July 13, 2018 Location: IIAW Webinar - iiaw.com/events Time: 8:00 am - 11:00 am IIAW Webinar: Workers Compensation 3 CE Credits Approved Date: July 16, 2018 Location: IIAW Webinar - iiaw.com/events Time: 12:00 pm - 3:00 pm IIAW Webinar: E&O: Roadmap to Policy Analysis - Part One 3 CE Credits Approved Date: July 17, 2018 Location: IIAW Webinar - iiaw.com/events Time: 8:00 am - 11:00 am IIAW Webinar: E&O: Roadmap to Policy Analysis - Part Two 3 CE Credits Approved Date: July 17, 2018 Location: IIAW Webinar - iiaw.com/events Time: 12:00 pm - 3:00 pm IIAW Webinar: Insuring Toys and Collectibles 3 CE Credits Approved Date: July 18, 2018 Location: IIAW Webinar - iiaw.com/events Time: 12:00 pm - 3:00 pm

IIAW Webinar: It’s Not My Fault, or Is It? - Liability Issues in Personal Lines Policies 3 CE Credits Approved Date: July 19, 2018 Location: IIAW Webinar - iiaw.com/eventsI Time: 8:00 am - 11:00 am IIAW Prelicencing School - Property and Casualty Date: July 23-26, 2018 Location: Madison, WI Time: 8:30 am - 4:00 pm IIAW Webinar: Farm Vehicle and Equiptment Coverages 3 CE Credits Approved Date: July 23, 2018 Location: IIAW Webinar - iiaw.com/events Time: 12:00 am - 3:00 pm IIAW Webinar: Ethical Dilemmas..Making the Right Choices 3 CE Credits Approved Date: July 16, 2018 Location: IIAW Webinar - iiaw.com/events Time: 12:00 pm - 3:00 pm IIAW Webinar: Additional Insureds and Cerficiates of Insurance 3 CE Credits Approved Date: July 25, 2018 Location: IIAW Webinar - iiaw.com/events Time: 8:00 am - 11:00 am IIAW Webinar: Buiness Auto Coverages 3 CE Credits Approved Date: July 26, 2018 Location: IIAW Webinar - iiaw.com/events Time: 12:00 pm - 3:00 pm

FOR MORE CLASSES AND TO REGISTER PLEASE GO TO IIAW.COM

2018

REDEFINING THE CUSTOMER EXPERIENCE Participants engaged with industry leaders during the convention showcase and heard from some of the foremost experts in insurance education and the future of costumer service. InsurCon 2018 provided inspiration improving costumer experience and growing in the modern marketplace. IIAW is proud of the success of this years event and we hope to see you all next year to celebrate 120 years at InsurCon 2019!

Coverra CEO Gary Asher wins 100 dollars from Bruce Prince with the IMT Group.

SECURA Employees along with their CEO, T Dave Gross and Vice President of Sales, Tim Heyroth celebrate with Company Representative of the Year Casey Haen.

Tom and Lynn Helbach, Greg and Mary Morrison, Mike Froh, Linda Nadolske and Skip Hansen celebrate Mary’s storied career with the IIAW.

IIAW AWARD WINNERS:

Casey Haen of SECURA Insurance Companies is awarded Company Representative of the Year.

14 | JULY 2018

Ryan Severson of West Bend Mutual Insurance Company is awarded Company Representative of the Year.

Lynn Raasch of Greater Insurance Services is awarded the Mary Morrison Customer Service Representative of the Year Award.

Dave Burkhart is awarded the Government Affairs Leader of the Year Award.

Jamie Durocher is awarded the Committee Chair of the Year Award.

WISCONSIN INDEPENDENT AGENT

Wisconsin Insurance Commissioner Ted Nickel proclaiming May 9th to be Independent Insurance Agents Day in Wisconsin.

West Bend CEO Kevin Steiner, Progressive’s President of Personal Lines Pat Callahan, Senior Vice President and Managing Director of Burns & Wilcox Daniel Kaufman and IIAW CEO Matt Banaszynski discuss the latest industry topics.

Spectrum Insurance Agency CEO Darell Zaleski and team celebrate winning 100 dollars.

Jill Zauner is awarded the Emerging Leader of the Year Award.

Marc Petersen is awarded the Raymond Terry Murphy is awarded Employee “Skip” Hansen Agent of the Year Benefit Agent of the Year Award.

Award.

WISCONSIN INDEPENDENT AGENT

Mary Morrison is Awarded the E.J Tapping Lifetime Achievement Award.

JULY 2018 | 15

AGENCY OPERATIONS

WHY INSURANCE AGENCIES FAIL

Imagine being in a business where every single person needs your product. Imagine being in a business where 90% of your clients will buy from you again every year…even if you are average.

Imagine being in a business with unlimited opportunity for growth and financial freedom.

Every one of these statements is true for independent insurance agencies today.

Yet, even with the unlimited potential afforded in the insurance industry, when I speak to agency owners, one of the top frustrations is the ability to attract, train, and retain the best talent.

1. T hey don’t know who they are (Lack of Purpose) As an insurance agency leader, how would you answer when I ask, “Why does your agency exist and why should anyone care?” For the typical independent insurance agency, this question results in a long pause followed by some mission statement that no one can remember.

Why? Well, every independent agency is unique, but I believe there are three common areas in which many insurance agencies struggle to bridge the talent gap.

16 | JULY 2018

You must do much more than sell insurance policies. Every agency sells insurance, but only the great ones know why.

Understanding the “why” behind your agency is not only important to your clients and future clients, but it’s important for every member of your team.

Great talent today wants to be a part of something great.

Every insurance agency knows what they do.

Most insurance agencies can clearly explain how they do it.

Yet, very few insurance agencies know

WISCONSIN INDEPENDENT AGENT

AGENCY OPERATIONS

TO FIND AND KEEP THE BEST TALENT why they do it.

Why has nothing to do with revenues or profit. Why is about your purpose, mission, cause, or belief.

Why is your agency in business? As leadership author and speaker Simon Sinek states, “Why do you wake up every morning, and why should anyone else care?”

Answering this basic, but all important, question is a key aspect in finding and keeping the best talent.

2. T hey don’t know what they want (Lack of a Vision) The most successful insurance agencies are always on the lookout for good people. Right now, if I asked you the three top qualities you are looking for in a future leader, sales producer, or service representative, what would you say?

In fact, make a list right now. What are the top qualities you are looking for in your agency team members?

Now, here’s the important part. After you write down these qualities, take a minute to see which of these characteristics you possess.

For example, if you want a high-energy person, are you a high-energy person? If you want a detailed oriented person, are you a detailed oriented person. If you are looking for an up and coming leader, are you a dynamic leader?

As leadership expert John Maxwell states, “Who you attract is not determined by what you want. It’s determined by who you are.”

This principle is the Law of Magnetism.

Naturally, people tend to be attracted to and follow people like themselves. Therefore, as an agency leader, you must be very self-aware of who you are and the qualities you possess.

Likely, these are the people you will attract.

If you don’t possess the qualities you desire in WISCONSIN INDEPENDENT AGENT

future talent, you must begin to work on your own leadership ability immediately. Leadership is a skill that you can improve upon.

If your personal qualities are those you seek in others, great! Now you must begin to seek those who compliment your skills and fill in the gaps. You don’t want a team full of only analytical thinkers or made up of all highenergy entrepreneurs.

A training process doesn’t have to be complicated. How can you place your most valuable asset, your people, in the best position to win?

High achievers want to be encouraged, challenged, and in an environment where they can grow to their full potential. Does your agency maximize the development of your people?

The key is to raise your awareness of what you really want, who you are currently attracting, and how to be intentional about filling gaps in your team where you are deficient.

Takeaway

It’s simple, yet often overlooked. The quality of the talent depends on you. Who you are is who you attract. Become the kind of person you want to attract and be intentional on seeking those who round out your weaknesses.

To find and keep the best agency talent, you must have a clear vision, plan, and execute.

Great talent won’t just show up, train itself, and produce great results.

3. They don’t know what to do with talent when they get there. (Lack of Training) I truly believe that one of the main reasons insurance agency leaders fail to find the best talent is because they realize they have no tangible way to train them.

Even subconsciously, it’s hard to attract the best talent when you doubt your agency’s training program (or lack thereof).

Instead of focusing on finding the best upcoming talent based on attitude and future potential, agencies often settle for someone who is average, but who has had some level of prior training.

This focus causes agencies to go for the “safe” choice instead of the “best” choice.

The best talent is looking for leadership to take them to higher levels. The best talent wants to be developed, encouraged, and challenged.

Without a training process that helps your team grow personally and professionally, the best talent will find another place to grow.

This is an amazing industry filled with tremendous opportunity. However, it needs an influx of new talent.

Finding and keeping the best talent is no different than finding and keeping the best clients for your agency.

You must first know your agency’s why. What is your agency’s value proposition?

Next, you must know what you want. Who are your ideal team members and how are you attracting them?

Finally, you must create an ongoing training program that allows for your team members to grow and thrive. What is your training process?

I believe that every challenge is an opportunity for those agencies willing to invest in their growth.

Finding and keeping the best talent is a process, but it’s a process you can start today.

This will require you to be intentional, be consistent, be open to new ideas. > Brent Kelly is an executive coach and speaker with the Sitkins Group, Inc. At The Sitkins Network, we deliver proven agency results…..simplified. This includes hands-on training and coaching with exclusive agencies in the areas of leadership, sales, service, and finance/administration.

JULY 2018 | 17

We push ourselves for you.

Because you push yourself for them.

For more about how Integrity can help you help your customers contact: Cathy Colรณn at 920-968-8326 or ccolon@imico.com integrityinsurance.com

AGENCY OPERATIONS

EARN MORE BUSINESS BY BREAKING UP WITH PROSPECTS (DON’T GET GHOSTED) Have you ever been ghosted by a prospect? Being ghosted means you have a great meeting, you’re really excited and everyone promises to move forward with next steps, but then the prospect goes dark.

You call, email, hope to bump into them at the local coffee shop,

page or loss run, you’re feeble attempts to court them will seem

but nothing.

more foolish with every un-returned phone call.

It’s like they vanished into thin air. In your heart you are hurt and in your head you are mad at yourself for not earning more

Similar to the way a smoke detector alerts you when there is smoke,

commitment.

a non-responsive prospect should alert you that your sale is in

No one likes to be ghosted, personally or professionally.

jeopardy.

Don’t Get Ghosted

Now we can be peaceful and hope to win it or tell ourselves we

For many of us when this happens we retreat back to all the

rarely win on year one.

manners our mother taught us.

It’s also possible to go in the other direction and become a war time Don’t be too pushy.

producer that is fierce, confident and takes control back of the sale.

Don’t seem to eager.

Neither version wins 100% of the time.

Don’t go running down to their office with cookies trying to find

Being Bold Wins More Then it Loses

out what went wrong.

So we fear that by being bold we jeopardize our sale, but the truth is that by being bold we hit more long shots than we miss.

Instead we do much worse, we wait and we provide soft gentle follow ups.

We win more business that we would have lost.

If your follow up call sounds like: “Hi, its Kelly again. I’m sure you

The question is are you willing to be bold, let go of the fear of the

have been really busy. We just need to finalize a few things to get

few people who will get turned off to take back control of your

started. I’m here when you are ready. Call me, maybe?.”

sale?

You are in trouble with a capital T.

There are two items we like to practice with our clients on regaining control of the sale.

What is your follow up to that?

• Break Up Email Pretty please with cherries and sprinkles will you call me?

• Break Up Voicemail Your follow up email may be even wimpier.

Remember, you were ghosted, so it’s up to you to put the final nail

You Can’t Accommodate Your Way to the Sale

in the coffin, not them.

The problem is we were all taught that in order to earn business we need to be too accommodating.

The break up email can go something like this:

Yes, I said it, too accommodating.

Hi PROSPECT NAME,

Leaving voicemails like that won’t get you very far.

I just tried calling you again. I’m coming down to your area and thought if we were going to move forward, this would be a good

When the prospect has to go to their current agent for a declaration

20 | JULY 2018

opportunity for us to finalize what we need.

WISCONSIN INDEPENDENT AGENT

At this point I’ve tried to reach you a few times with no luck. Typically

If you can let me know either way I would sincerely appreciate the

when I don’t hear back from someone it is one of two things.

professional courtesy.

1) You aren’t interested.

If I don’t hear back from you by Friday, I’m going to close your file however I am happy to be of service when the time is right for you.

2) You are interested but have not had a chance to reach back out to me.

See professional, easy and classy. Plus you take back control of the sale

I’m going to close my file on you today. If you are in the first category,

you know you have worked hard for!

please continue to stay engaged with us online and reach back out at any

No One Wins in the Middle

time if you want to learn more about our products.

You have to be willing to stand your ground with prospects that aren’t

If you are in the second category, just shoot me a quick email and I will try

giving you the time of day.

to reach you next week. Or book a time on my calendar now which will also send you a meeting request to block off the time on your calendar here:

If you do nothing, you’ll get nothing. It’s unlikely that person will magically wake up one morning, after what they consider a successful

It’s polite but still firm and professionally asks for the courtesy of a

ghosting, and decide to call you.

response.

Put all your cards on the table and see if they’re interested in playing one Now the break up voicemail can go something like this.

more hand.

Hi Prospect Name.

At the very least, go ahead and try it. Don’t be worried if the first few are a little choppy!

This is NAME from AGENCY NAME. I wanted to reach out to you since I’ll be in your area on DATE. I have left several emails and voicemails for you.

Typically when I don’t hear back it’s either because you are no longer interested or you haven’t had a moment to return my calls.

Keep practicing and see what happens. > Kelly Donahue-Piro has helped hundreds of small businesses manage their organizations and market their products and services better. In 2014, Kelly created Agency Performance Partners to deliver growth and cutting-edge management strategies to insurance agencies around the country.

JOIN a Top 100 Agency

How we grew from 28 Producers to 95 Producers.

Q: What markets do you have?

A. As the largest independent agency in Wisconsin, RRA has strong carrier relationships. We offer over 50 CL, 30 PL and 45 EB carrier partners.

Q: Will I make more money?

A. Yes, we offer one of the strongest returns to Producers. We pay all office costs including staff salaries. You continue to own your business/book but enjoy all the advantages of being with a larger agency, including profit sharing.

Q: How can I maximize my time?

A. We handle staff management, HR, accounting, IT, rating, office management and other administrative details. This allows Producers to spend more time with their families or growing their book on their terms.

Q: How does carrier contingency work?

A. Producers can share in ALL contingencies. Because of our size, our contingent return is more predictable and stable to our Producers.

Q: Do you have a solid perpetuation plan?

A. Scaling back hours, retiring or planning for the unexpected should be a priority. We help connect Producers with similar interests and backgrounds to develop a buy/sell plan where they are comfortable.

Q: What technology resources do you offer?

A. A dedicated IT department ensures technology resources are performing and the latest tools are being reviewed. We operate on Applied Epic and offer Zywave, AcuComp and HR Workplace Services.

Q: Who owns the book?

A. Simple, the Producer maintains 100% ownership without a non-compete.

Learn More: Chris Illman I cillman@robertsonryan.com I 800.258.0277 I www.RobertsonRyan.com

WISCONSIN INDEPENDENT AGENT

JULY 2018 | 21

TECHNOLOGY

4 REASONS CAR INSURANCE HAS CHANGED FOREVER Time flies when you are having fun, or in the insurance innovation business.

It’s only been three months since we’ve talked about what is going on in the automotive industry and what it means for insurance, but plenty of changes have taken place on the Long and Winding Road.

Leadership provides some interesting commentary on the technological and societal impacts of autonomous cars here. (Registration Required)

The Race is On Incidents and Accidents

• Regulators and governments respond to optics more than logic.

Waymo seems to have a clear lead in the technology space. In addition to their on-road miles, they have built a test track and simulation software that allow rapid iterations of their driver software.

Unlike many of the other industry players, Waymo doesn’t think that they are in the car business. They are in the driver business.

Waymo CEO John Krafcik says “Our role in the world is to build the most experienced driver and deploy that driver in as many places as we can”.

In a recent announcement, Waymo and Jaguar announced a partnership to build up to 20,000 electric cars for Waymo’s autonomous taxi service. The intent is to provide a million rides per day by 2020!

Uber and Lyft aren’t content to sit on the sidelines. Both are actively working on the technology as a way to improve their core businesses.

Using autonomous vehicles for their service businesses improves their bottom line and enables for better matching rider volume to vehicles available for hire.

While Tesla’s success in the field is well publicized, most automakers are hard at work too. While they may not be ‘tech’ companies per se, they have always been highly focused on engineering. The automotive business is at an inflection point, and none of the companies want to be left behind.

State of the art automotive design is moving fast in four complimentary directions.

• Competitive pressures can lead to corners cut.

On the CASE

We’d be remiss to start anywhere but with a mention of the recent fatal accidents involving both a SUV used in Uber’s testing program and a private party using a Tesla in autonomous mode.

In addition, a driver was killed in Florida in May of 2016 when he ignored repeated requests from his car(!!) to place his hands on the steering wheel of his Tesla Model S. Over the course of 40+ miles and 34 minutes, he had his hands on the steering wheel for less than two minutes.

At least three deaths from autonomous operation of vehicles in the US. Although one is too many, what have we learned?

It is too early to assess fault or liability in the most recent accidents, but there are a couple of takeaways: • Smart machines can’t undo the laws of physics.

• Humans are unpredictable and regularly make mistakes.

• The blame game will always be played.

• Nay-sayers use problems to justify their positions.

A new acronym is taking the automotive world by storm: C.A.S.E. Although accurate industry statistics on total autonomous driving miles are hard to come by, we have two hard data points from Waymo and Uber.

• Waymo announced March 1, 2018, that they had completed 5 million miles of fully autonomous driving on public roads, with the pace accelerating. They completed the last million miles in 3 months.

• In late 2017, Uber announce that they had completed a million miles and 30,000 trips.

Both California and Arizona have recently passed laws that allow fully automated (no drivers behind the wheel) testing of cars on their public roads. These two states openly admit that by being pioneers in supporting the industry, they believe they will attract desirable employers and jobs for their residents.

Other states are taking a wait and see attitude, but as the benefits of autonomous vehicles become evident, more DOTs will liberalize their views and legislation.

Guy Fraker, Chief Innovation Officer from Insurance Thought

22 | JULY 2018

Connected. Automated. Shared/Subscribed. Electrified Connected: As cars get smarter, they are creating more and more data.

Estimates are that a current model year car has 40 sensors and can generate upwards of 25 gigs of data every hour of operation. Most of that is being streamed to the cloud via OnStar-like connectivity solutions.

And that is a drip compared to the river of data that autonomous vehicles are going to be generating. And it is about more than just data.

McKinsey estimates that the market value of vehicle data in 2030 will be $ 1.5 trillion!

As Guy mentions in the webinar linked above, we’re now going to have a much better understanding of ALL of the variables involved in accidents.

Automated: If you’re this far, you get the point.

Shared/Subscribed: The cost of car ownership is high, particularly when you take into account the fact that 90% of the time the vehicle WISCONSIN INDEPENDENT AGENT

TECHNOLOGY

is parked. A number of different models for reducing these expenses by sharing car ownership are in the works.

One of the most popular is a fleet of vehicles that is available for use by subscribers. You pay a monthly or per-use fee which allows you to use one of the cars in the fleet.

Tesla has plans for a system that would allow individual owners to ‘share’ their cars with other drivers.

Electrified: Electric cars have gone from an impractical experiment to usable tools. Range continues to increase as the cost of evermore powerful batteries continues to decrease. The national network of recharging stations is growing, with over 16,000 reported in the U.S. as of November,2017.

One additional risk that comes with high power batteries is that some will burn if damaged.

Each of these four trends has implications for auto insurance. We’ve discussed how autonomous vehicles could reduce accident frequency.

Connected vehicles could facilitate new insights into behavior and usage, potentially allowing significant refinement in pricing.

Electrification may change exposures and could increase loss costs if battery replacement expenses are regularly incurred.

Car sharing and subscriptions may have the second biggest impact on the insurance industry behind loss reduction.

and Liberty Mutual in the US to bundle usage based insurance in with their ‘Insure My Car’ initiative. Their intent is to have a single monthly payment that bundles the car, insurance and maintenance payments into a single bill.

Cadillac, Ford, Mercedes Benz and Porsche have each announced support for a programs for subscription cars.

Volvo has announce Care By Volvo, an offering which bundles lease payments, usage based insurance, maintenance and new car upgrades into a single payment. It is slated to launch later this spring in all 50 states.

There are a number of initiatives being brought to market by the insurance industry as well.

State Farm has just announced they have formed a new insurance company called HiRoad that will provide a mileage based insurance product that they are piloting in Rhode Island.

AAA, Assurant, Chubb (via ESIS), Hamilton and Liberty Mutual have all announced support for insuring car sharing programs.

A couple more IA channel companies are providing coverage for TNC drivers, but frankly there are too few, and the national coverage is spotty at best.

Long Story Short The challenges in the auto line are just beginning.

• Additional information from connected cars will enable new underwriting and assessment of fault.

Share and Save Robin Chase, the founder of ZipCar, the longest lived and most successful car sharing company has some enlightening statistics. One shared car takes 15 cars off the road. And drivers of subscribed vehicles reduce their road miles by 80% because each trip now has a hard cost.

But you say, ‘I’m never going to give up my car and neither are my friends’, so shared cars will continue to have a minor impact.

Not so fast.

Perhaps many Americans won’t completely give up owned vehicles.

Ponder this: In the age of autonomous and shared vehicles, does a household really need two (or more) owned cars?

With some planning, a family could get both adults to work on time with one car. Today, they ride together. With an autonomous car, mom could go first and the car drives itself back to pick up dad, parking itself in the driveway at home after dad has been dropped off at work.

Ready to take the kids to their after-school activities.

When there is a genuine need to have two cars on the road at once, the second car could be provided by a subscription service. The potential is that an average household might be able to cut the costs of auto ownership by almost half. To the tune of $500 or more per month.

• Autonomous cars will create risk that incumbent insurers may not be willing to underwrite. Automakers and new entrants will step in.

• Car sharing in many forms will decrease the total number of exposure units insured in the traditional market.

• Electrification will increase costs of vehicles and impact the service costs. Potential exists for increased severity of loss due to battery replacement or fires.

There doesn’t appear to be an near term end for both premium erosion and new risks and opportunities. The risks associated with auto insurance are changing quickly, and the old days are never coming back.

Both agencies and companies need to step up to take advantage in this fluid environment. What steps is your organization taking to address the changes taking place in the auto lines? Are you: • Decreasing your reliance on auto?

• Finding new carriers that are more flexible and supportive?

Insurance Trends In addition to the impacts that CASE are sure to bring to the auto insurance line, there are a number of challenges coming from inside and outside our industry.

Automakers are changing the insurance game.

Tesla has partnerships with AXA in Hong Kong, QBE in Australia WISCONSIN INDEPENDENT AGENT

• Driving product innovation to address the new opportunities? >M arty Agather is a leading author and speaker on insurance technology. Marty’s position as an insurance technology thought leader has been developed through a career of leading change in industry organizations and processes.

JULY 2018 | 23

ERRORS & OMMISSIONS

AVOIDING OPERATIONAL PITFALLS:

AN ‘EVERY DAY’ PLAN

Running a successful insurance agency is akin to putting together a winning sports team. You want to get the best athletes available and ensure that those players perform at a high level by implementing a well-conceived regime of skill development.

But athletic prowess, by itself, is not enough.

Nothing is more frustrating than seeing an

the policy is bound. Several months later a fire occurs and the agency cannot locate the

producer lists “John Doe” as a covered person.

Subsequently, the principal’s son and former

undisciplined player get penalized during a game for failing to follow an established rule.

In the sports world, these errors routinely end up changing the outcome of the game.

Likewise, in the insurance arena an agency can have great producers and a solid marketing plan in place, but if key agency processes aren’t being followed, the resulting E&O claim can be quite painful.

Consider the following:

application. The carrier pays the claim but then sues the agency on the theory that the agency failed to follow its own guidelines by not getting an application, insisting that it never would have written the policy had the correct information been relayed. At deposition, the producer has no choice but to admit that the procedure was to get the completed application before binding coverage and has no explanation as to the whereabouts of the missing application. Total Cost: $500,000

• An agency has specific procedures in place for the issuance of Certificate of Insurances (“COI”). Its manual provides that, if a COI is given for an additional insured, the agency must make sure the carrier is notified and that an endorsement is issued for the certificate holder. A well respected CSR is faced with multiple COI requests and, due to a heavy workload, delays notifying the carrier of one of the issued COIs, then forgets to follow up.

A lawsuit is filed against the certificate holder after an accident on a job site. The certificate holder demands a defense from the insured’s GL carrier, but the carrier declines to defend or indemnify because the certificate holder was not an insured. A claim is then made against the agency. Total Cost: $180,000

• A producer procures coverage on multiple commercial properties for a longtime client.

Subsequently, at the client’s request, the producer asks the carrier to remove property coverage for one of the properties as it was to be leased to a tenant. The agency has a “best practices manual” which states there should be a deletion/reduction request in writing, but the producer did not get one (in fact, very rarely did this producer get anything in writing). A subsequent vandalism claim occurs on the property, which the carrier denies due to the lack of coverage. The client then brings suit against the agency for the uncovered vandalism loss and maintains that the property was supposed to have coverage. Total Cost: $470,000

employee, John Doe, Jr., is involved in a car accident. He seeks coverage under the policy on the theory that he was covered as “John Doe,” The court ultimately agrees that, due to the “ambiguity” as to who the intended insured was, the carrier must cover John Doe, Jr. The carrier pays its limits and then seeks this sum from the agency for causing the ambiguity. The carrier asserts that the agency violated its own guidelines in not using the legal name of the insured. Total Cost: More Than $1 Million While mistakes happen (after all that is what insurance is for), there are simple ways an agency can reduce claims arising from procedural errors.

• An agency is contacted by a customer for homeowners coverage. The agency’s manual requires that all files must have a completed application. The producer inputs information into the carrier’s web portal for a quote with a plan to update the inputted information as needed upon receipt of the application and

• An agency procures commercial auto coverage for a client whose principal is “John Doe, Sr.” The agency manual specifies that an insured’s complete legal name must be entered on all applications. The application has a list of individuals who would be covered by a Broad Form Drive Other Car Endorsement. The

• The “Four eye” approach. Before any policy is issued, have another staff member do a review to make sure nothing was missed. Yes, this can be time consuming but the payoff can be substantial.

• Random audits. Select a number of files to review on a periodic basis. Do not limit this audit to new or junior employees. We often see that the more senior staff members are the ones who forget to follow the rules.

• Periodic refresher sessions for all staff members. While these can be dry and boring, try to make them more appealing. Try a “game show” type of approach in which “contestants” get prizes for answering questions correctly.

This can be a great team building exercise as well. > E llen McCarthy is a vice president and claim expert at Swiss Re Corporate Solutions and teleworks out of the Overland Park, Kansas office.

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders.

24 | JULY 2018

WISCONSIN INDEPENDENT AGENT

• Checklists. Have a checklist that is used every time, by every staff member – NO EXCEPTIONS. There is nothing more demoralizing for a staff member to find out that the rules only apply to certain people.

• Workload management.Make sure that staff members are not overloaded. It is much harder to follow expected procedures when overburdened. That’s when all of us start cutting corners.

• Audits. Retain an outside auditor to come and review the agency from top to bottom. While these do come with a price tag, pull out the Declarations Page of your E&O policy and compare the cost of an audit to having to pay your deductible on even a single E&O claim, not to mention the premium increase that could result from a serious claim and the loss of customer confidence.

Procedural errors have proven to be just as costly as substantive mistakes, particularly when the plaintiff is able to highlight the agency’s failure to follow its own rules. In each of the examples above the agency had good procedures in place and the agency principals were confident that those processes were being followed. It was only when a penalty flag was thrown, i.e., an E&O claim came to light, that the agency realized its rule book was being ignored.

Legendary wrestling coach and Olympic gold medalist Dan Gable once offered a simple path to success: “If it’s important, do it every day.” He’s right. The ramifications of failure underscore the importance of having your team in full compliance with established agency procedures. Every day.

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imtins.com | west des moines, iowa WISCONSIN INDEPENDENT AGENT

JULY 2018 | 25

Independence isn’t easy You could have sold the agency, but you didn’t.

Success rests squarely on your shoulders and the path forward isn’t always clear.

Independence means freedom, but it also means responsibility. It is about staying true to the commitments you’ve made - to your clients, your colleagues, your community, and your family.

Keystone is for people who believe that powerful partnerships generate prosperity. Our mission remains unchanged: to provide access to the expertise, resources, and relationships that sustain independent insurance agencies over the long haul.

Keystone. Independence works better together.

©2016 Keystone Insurers Group ®. All rights reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.

Contact Elizabeth Schenk for more information: 888.892.5905 eschenk@keystoneinsgrp.com keystoneinsgrp.com

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EMERGING LEADER SPOTLIGHT Each month we will be featuring one of the active members of our Emerging Leaders Committee. Our July Emerging Leader is Matt Frank from Robertson Ryan & Associates in Milwaukee.

Tell us your name and a little more about you: My name is Matt Frank and I’m from Milwaukee, WI. I work for Robertson Ryan & Associates.

How long have you been on the Emerging Leaders committee? I have been part of the Emerging Leaders Committee for one year.

How did you hear about the Emerging Leaders Committee? I was introduced to the committee through some of my friends and colleagues.

is an outstanding opportunity to meet others within the industry. As an agent, I am able to become friends with many of my counter parts at other agencies while developing solid relationships with those on the carrier side.

The same could be said for those working on the carrier side.

What is your spirit animal? A cardinal.

Why did you choose to become active with the Emerging Leaders committee? The Emerging Leaders Committee is a great opportunity to meet other insurance nerds and develop those relationships.

What is your favorite EL event or activity that you’ve done with the EL group? Last year I participated in the PriSim event.

Why should a new agent join the EL committee? As we all know, the Wisconsin insurance industry is a small network of people so this group WISCONSIN INDEPENDENT AGENT

Where is your favorite vacation spot? Any national park.

Do you have any pets? I have two red English shepherds (mother and daughter).

What is one professional goal for you in the next 3-5 years? To successfully position myself for the future of insurance.

JULY 2018 | 27

VIRTUAL UNIVERSITY

MURALS REVISITED

Recently the VU released a video discussing the property exposure created by interior and exterior murals

As was discussed in the video, murals may be considered art that can and should be covered under a fine arts coverage form. In the video we discussed the need to purchase this protection from a specialty market; however, shortly after the recording session, we discovered some proprietary property forms provide specific fine arts protection within the policy wording. This changes the landscape a bit.

While Insurance Services Office’s (ISO) commercial property policy does not exclude coverage for fine arts, the policy does contain a limitation on valuation. ISO’s commercial property policy and its businessowners policy (BOP) both limit loss settlement to actual cash value (ACV) for works of art. Proprietary forms may not contain this same limitation. For example, one carrier values works of art at the least of: The price at which the property could likely be sold prior lo loss or damage if offered for sale in a fair market on the date the loss or damage occurred; The cost of reasonably restoring that property; or The cost of replacing that property with substantially the same property.

Murals, if the carrier considers them a fine art, probably couldn’t be sold (short of selling the building), so the appraised/market value in the first option probably would not be a viable consideration. This leaves only the last two valuation options. When applying these valuation procedures to a mural, do these values substantially differ from the mural’s ACV? (The VU penned an article on the applied meaning of ACV and how it differs by state. To review this information, click here.)

Taken at face value, these proprietary valuation options do appear to offer higher payouts than the amount paid using ACV. If the mural is only partially damaged, the carrier agrees to pay the cost to restore the mural. And if it is destroyed completely, this

sample wording states it pays the cost of replacing the property. If it cannot be replaced (the artist is dead or for some other reason), the settlement would probably be a negotiated value.

If such proprietary wording is available, the insured may have better protection that that offered by ISO forms. The valuation methods in stand-alone specialty fine arts forms may be similar to the proprietary wording above, but it will likely be subject to negotiation and manuscripting based on the specifics of the mural.

Forget Everything Just Discussed Forget value and valuation methods, the first and most important question that must be answered is, does the mural qualify as a work of art or fine art? If the answer is no, then the only value any carrier is going to pay is the cost of the paint – regardless if it’s an ISO or proprietary form; and further, no specialty carrier is going to (or should) offer protection for a mural that does not qualify as fine art.

What is the basis for deciding if a mural qualifies as a work of art or fine art? Although ISO property forms do not address the concept of fine arts, some proprietary forms do clarify the meaning. One form defines “fine art” in part as: paintings, etchings. pictures, tapestries, art glass windows… and similar property of rarity, historical value, or artistic merit.

Presumably, any specialty market willing to provide coverage for a mural would apply a similar definition.

If a mural does not qualify as anything more than a painting on a wall, the insured shouldn’t expect any more from the carrier

than the value of the paint. However, if a mural has historical value or artistic merit based on the subject, location, artist, historical significance or other factors, it may qualify as a piece of fine art and require specific protection.

Coverage for the Mural What are the insured’s options when a mural is valuable and considered a work of art or a fine art. If the property coverage is written by a carrier using ISO forms, the only way to garner the necessary protection is by purchasing a stand-alone fine arts policy.

However, if the carrier extends property coverage via a proprietary form, the form itself may provide the necessary protection if it specifically extends coverage to fine arts.

Anytime you encounter a mural: Gather the necessary details to decide if the mural qualifies as a work of art needing coverage; Explain the possible coverage gaps to the insured; and Recommend the insured have an appraisal done. This is necessary regardless the source of protection. If coverage is written on a separate form, the underwriter will need the appraisal; if the coverage is extended from the policy form you must remember to include this value in the application.

More recommendations on insuring murals are contained in the video.

The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent. com/Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information.

28 | JULY 2018

WISCONSIN INDEPENDENT AGENT

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VIRTUAL UNIVERSITY

ASK AN EXPERT

Q:

Coverage Under an Unendorsed ISO Crime Policy

A:

You need the CR04171115 endorsement to cover this.

My insured was spoofed through a series of fake emails that resulted in $114,000+ being transferred from his company’s bank account. Is this covered by an unendorsed ISO Crime policy?

is not defined in the policy. The standard definition of the word is: 1) a piece of legislation enacted by a municipal authority 2) an authoritative order; a decree

-----The insurance carrier has age old exclusions to stand on for their coverage denial. Money and Securities coverage was never designed to cover this type of social engineering loss. There is no coverage for voluntarily parting with your money by deception or any other method.

Theft of Money & Securities was intended as follows:

Calling an HOA a municipal authority may be a stretch, but stating that this is letter is “an authoritative order” seems to be pretty accurate.

We forwarded the HOA letter to the adjustor and cited “Additional Coverages,” 12a(3), which gives 10% of Coverage A for the “remodeling, removal, or replacement of the portion of the undamaged part of a covered building or other structure necessary to complete the remodeling, repair or replacement of that part of the covered building or other structure damaged by a Perils Insured Against.”

• Inside the Premises protects the insured in case of burglary, robbery or destruction at the insured’s premises or their bank.

The insured could be standing in line at their bank to make a deposit and this would protect those funds.

• Outside the Premises is used to protect money, securities or the insured’s tangible property against theft when it’s off premises and in the care of the insured.

The adjustor responded simply, “In regards to the Ordinance or Law coverage: it applies to local ordinances and laws created by a local municipality for the town or city. A direction from a HOA would not constitute an ordinance or law.”

Coverage for this type of scenario can be found under the newest coverages for social engineering or something similar to ISO’s version of Fraudulent Impersonation CR04171115.

I know I’m going deep into what is probably a legal question, but I was just curious if our thinking held any weight. Has anyone had claims scenarios similar to this?

-----You need the new ISO form or a carrier equivalent one. This should be automatically added to every crime policy.

Q:

Hail Damage and the HO-3 10-06 We have an insured who suffered hail damage to their home.

They have a HO-3 10-06.

The carrier has agreed to replace siding to about 2/3 of the house, but of course, will not “match”/replace any undamaged siding. Now “neighboritis” has set in as many of the neighbors’ insurance carriers are apparently replacing all of their insured’s siding. We obviously do not know the details of all of that, but regardless, our insured is not happy.

Today our insured forwarded us an interesting letter from their HOA that was sent to all neighborhood residents. I’ll trim it down to the main points: “Due to the fading of vinyl siding, the HOA will NOT approve the replacement of siding on one side of a house for most vinyl siding colors. The new siding may match the old today, but in a couple years will not. Please use this letter as the official communication of the Association’s policy to insurance companies as well.”

It continues...

“Due to the extent of damages in our neighborhood and some non-compliance through the years, the HOA will take a hard line on compliance with this process.”

Obviously, the implication that the HOA can just send out a form to the residents demanding that their insurance cover something is laughable. But it did get us thinking, “Ordinance”

A:

Only governmental authorities have ordinances or laws. HOA rules are not ordinances or laws. That said, if 2/3 of the siding is damaged and the replacement siding will not match the existing siding, the carrier will be liable for replacing the siding on the entire house – depending on the state. Just like shingles on a roof or carpet in on the floor, if the replacement causes disparity between the existing, undamaged property and the replacement of the damaged property, then the insured is no made “whole” unless the entire property is replaced; again, depending on the state.

-----In order to have an opinion on the coverage provided we’d need a copy of the policy in question. The coverage most often called on to meet HOA requirements would be the Loss Assessment coverage. The HOA’s decree doesn’t appear to be an assessment at this point, but could become one.

-----Good try but the work of a homeowner’s association is not a governmental authority issuing an ordinance.

-----The adjuster is correct that law and ordinance coverage was not intended to cover decrees made by HOA boards that might, in some instances, send out whimsical orders that they believe are authoritative. That being said, a court of law might determine that HOA directives are valid and require an insurer to adjust the loss to comply.

The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent. com/Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information.

30 | JULY 2018

WISCONSIN INDEPENDENT AGENT

Here is a link to a Rutgers University 2016 white paper on HO policies and “matching” and line of sight rules. It comments on states with regulations and some case law. Perhaps you could find something to help support your client’s claim. http://www.uphelp.org/sites/default/files/publications/matching_memo_42016_to_post.pdf -----This is one of the most difficult areas to decide right or wrong. Companies differ on what is “damaged property.” The “line of sight” argument doesn’t clarify matters. “Is the roof damaged” or “are the shingles damaged” is not clearly defined in any policy that I have read. I have discussed this in many classes with students and adjusters and have found no solid agreement. A Minnesota case seemed to lean in favor of broader coverage, but even that case doesn’t give a definitive rule. My feelings are that replacing only the damaged shingles or siding after a loss reduces the value of the dwelling, but not the functionality. The Homeowners policy doesn’t cover market value, actual cash value or sales price; it covers “replacement cost” without a true definition of “replacement cost”.

-----ISO has no 10-06 edition date of the homeowners’ policy so read yours to see the wording.

See this VU article: http://www.independentagent.com/Education/ VU/Insurance/Personal-Lines/Homeowners/Property-Coverages/ FacultyConsequential.aspx This is not an O&L claim, plus the association letter means nothing.

-----Since the Homeowners’ Association has the authority to regulate such

WISCONSIN INDEPENDENT AGENT

repairs, I’d view their ruling as being an ordinance. An undefined word in the policy is construed as the word is normally used.

This is not legal advice. I’m not aware of any court decisions on this matter.

------aditional “regulatory” authority, it does or may have the statutory authority to regulate construction, reconstruction or repair of structures within the association. Most state statutes and/or local ordinances confer upon HOAs the ability to manage the appearance of the houses in the neighborhood.

Further, the HOA has the ability to levy liens against any property owner failing to comply with the associational guidelines. And if the liens are not paid, the HOA can institute foreclosure procedures upon the home. This fact places them in a highly authoritative place.

The grant of statutory authority to regulate construction (including repair) combined with the ability to take a person’s home for failure to abide by the bylaws of the HOA make the association a very power authority in the homeowner’s world.

While the extension of Ordinance or Law coverage may sound like a stretch, it seems reasonable to expect it to respond to such great authority.

A sticking point in all this, did the HOA have this level of authority before the loss, have they decided differently in the past, and other key questions that may disallow this level of assertion due to the concept of estoppel. The HOA cannot take a new position in contrary to a previous position without undertaking the necessary legal steps. A lawyer would need to respond.

JULY 2018 | 31

RISKY BUSINESS

REALITY OF TEXTING FOR INSURANCE AGENCIES During every meeting I have attended in the last few months, there have been questions and discussions on “should an agency allow texting by its clients and staff and if so, how do we control Errors & Omissions and documentation in our agency management system?”

Empowered clients are going to communicate with agents in the manner most convenient to them, so the real issue becomes how is the agency going to manage texting if the client prefers to use it? In this article, I discuss several concerns agencies have with texting, current “best practices” for managing these communications, and the technology options for managing texts and importing them into your systems as I understand them. There may be other options and not everyone

an activity or note since we couldn’t attach anything to our agency management systems.

uses Microsoft Outlook. Your technology professional should be able to assist you with the details.

apps. The initial attachment functions were “clunky”, but as time and technology have progressed, this function has become more streamlined.

Through communication with the various agency management vendors from their user groups, the vendors enhanced their systems to handle email attachments. From this grew the ability to easily attach various other attachments and we hope vendors will create streamlined workflows for capturing texts as well, possibly as a part of their mobile

Agency Concerns If clients are texting staff members on their personal phone, a number of issues come to my mind: •What if your staff member is on vacation where their phone is not functioning or they are just too busy to take care of the issue?

•What if your staff member is ill and not able to pay attention to incoming messages on a real-time basis?

•What if the individual is actually no longer a staff member?

•What if the individual says they will take care of the request and does, but doesn’t document in the system and something is not correct?

I have heard more than one agency principal flatly state that they weren’t going to allow any texting. Others don’t see any way to stop people from texting but don’t know what to do with it and how to set parameters.

A number of people commented that it was seamless to attach an email, voicemail or other documentation in their agency management system, but not so texts. Since it is difficult to manage the capture of the text information, they want to ban receiving texts. We need to remember that capturing email information in an agency management system was not always easy. Once upon a time we copied the emails and pasted them into

32 | JULY 2018

In today’s world, texting is a reality. It is not only your young clients that are engaging in this act. Texting eliminates telephone tag, and results in an almost instant response. This is what many of us are programmed to want.

Current “Best Practices” I recommend you consider taking the following approach with regard to texting: •Do you want to be relevant to your client base? If so, then you must embrace this technology.

•Set standards and best practices. These really are no different than handling face-to-face conversations, phone calls, emails, etc. Your standard should be that all conversations with the client or with others about the client’s account are to be documented in the agency management system or the system which you are using to collect client data.

•Be pro-active and determine how to best receive texts at the agency level and educate your staff and clients.

•If your client and someone in your agency are friends, inevitably there will be a text on a person phone. Define, train and implement the process to get this moved to an agency level as quickly as possible.

I don’t see that there is any more of an errors & omissions exposure in receiving and

responding to texts than there are in phone calls, emails or face-to-face conversations.

The biggest issue I believe agencies have at this time is how to make this format work for them as seamlessly as possible.

Forwarding Texts to Email Here are some thoughts I have on this process that I have picked up from users who have already addressed this issue: •As soon as the initial text is received on a personal phone, forward it to your business email address. Text a response back to the client from your business Outlook account.

The client’s text response will come back into the email which will let you accumulate the stream of the conversation which can then be attached to the agency management system.

•Some phones will allow you to capture an entire text conversation. In this case it could be acceptable that the conversation continue on that phone and then be captured and sent to the business email address for attachment into the agency management system. This would be the best approach when the conversation is just a question and answer session.

•It is important for everyone in the agency to learn how their specific phone works for text forwarding: a. iPhone - Another approach is to take a picture of your iPhone screen when the text is showing, by pressing the on/off button on the top of the phone simultaneously with the application change button on the bottom front of the phone. This approach creates an image of the entire text message and the picture can then be emailed to your Outlook account. b. Android Phones - Each manufacturer handles this in a different way and I find even some differences within a manufacturer between their phones. It is best to check the operating information for your specific phone for this function.

WISCONSIN INDEPENDENT AGENT

RISKY BUSINESS Sending Texts from Email Microsoft Outlook can be used as a tool to manage text messaging with your client. There are several steps to setting up and implementing the use of Microsoft Outlook. However, like anything else that you do, if you invest the time to research, implement and train a process, the rewards will be great.

The best place to start the research is on the web at Set Up text messaging (SMS) in Outlook.

Instruction for setting up text messages can be located online. Microsoft has done a really good job of explaining the options available for using Outlook and providing lots of screen shots.

Implementing an Agency Text Address I also recommend that the agency implement a way to receive text messages directly. I understand from my tech friends that many VoiP phone systems can have a number set up for receipt of text messages. I am also advised that this works differently with every system and that you will need to work with your phone system provider to get this set up and implemented. Once set up, someone in your agency will need to monitor this number during business hours so that the expected immediate response can be managed.

If your agency does not have a VoiP system, another option available for receiving texts at a number that you control is to set up a Google Voice number at https://www.google.com/ voice. In the Settings section of your Google Voice account, you will find a place to show the email address for Text Forwarding.

When you receive these text messages, they should then be forwarded to the Outlook email address of the individual in your agency who will be handling this client. Once the number is set up, you should promote it to your clients, so that those who want to communicate in this manner can do so. When agency employees receive text messages on their phones, they should let that individual also know there is a number that is attended during business hours and would get attention even when the employee is not available.

Finally, some important points about texting to keep in mind: •If the client texted you, that is how they would like to communicate, so at least your initial response should be in a text.

•If the client texted you, they expect an immediate response as that is what the common expectation is with texting.

•Your employees should know the agency’s procedures for documenting text messages in the agency’s system, just as they would other communications from clients and business partners.

WISCONSIN INDEPENDENT AGENT

ACT Releases Texting Resources Text messaging gives independent agents a quick and simple way to communicate with clients, on an individual or aggregate basis, regarding policy reminders, new product offerings and risk management tips. But the Federal Communications Commission (FCC) has broadly interpreted the federal Telephone Consumer Protection Act (TCPA) to regulate nearly all commercial text messaging, even if a text is sent to one person rather than multiple recipients.

To help our members meet the requirements of the TCPA, the Agents Council for Technology (ACT), in conjunction with the Big “I” Office of the General Counsel, released a sample text messaging opt-in form and sample terms and conditions.

“Consumers want to choose how they communicate with their independent agent, and for many, texting is at the top of the list,” says Ron Berg, ACT executive director. “We are giving agents the guidance and tools necessary to ensure they comply with the legal requirements for text messaging.”

Unlike the rules for some other commercial communications, the FCC has ordered that an existing business relationship does not provide an exemption to the TCPA requirements of obtaining prior express written consent before sending commercial text messages.

Therefore, agents should ask clients to opt in to text messaging and provide messaging terms and conditions, even if the agency communicates via text only with existing or prospective clients or when the client or prospect initiates the texts. Agents also need to understand the capabilities of their agency management system for text messaging.

Members must log in to IIABA”s website to access the sample resources or contact Mallory (Mallory@iiaw.com) at the IIAW office and ask for the resources.

> Patricia Alexander, CIC is a consultant, coach and mentor with experience in retail agency and MGA settings. Alexander developed this article for the Agents Council for Technology (ACT), part of the Independent Insurance Agents & Brokers of America. ACT’s Web site is www.independentagent.com/act.

This article reflects the views of the author and should not be construed as an official statement by ACT.

JULY 2018 | 33

2018 PRE-LICENSING CLASS SCHEDULE Conducted at State Association Headquarters, IIAW pre-licensing classes fulfill the study requirements for life, health, property and casualty. Full course materials — not just an outline — are included with registration. The classes are:

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LIFE & ACCIDENT/HEALTH January 8-11 February 5-8 March 5-8 April 9-12 May 14-17 June 4-7 July 9-12

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IIAW MEMBER PRICING: $340 - Pricing given for full class registrations.

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DAILY SCHEDULE

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Day 1 (Monday) 8:30 a.m. - 4:00 p.m. ($85) SECTION A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Life Policies, Terms & Concepts Day 3 (Wednesday a.m.) 8:30 - 11:30 a.m. ($45) SECTION B: Life Policies, cont. & WI Life Insurance Law Day 3 (Wednesday p.m.) Noon - 4:00 p.m. ($45) SECTION B: Accident & Health Policies, Terms & Concepts Day 4 (Thursday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Accident & Health, cont. & WI Health Insurance Law

Property & Casualty

Day 1 (Monday) 8:30 a.m. - 4:00 p.m. ($85) SECTION A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Property Policies, Terms & Concepts CLASS SITE/DIRECTIONS The IIAW is located at 725 John Nolen Dr. in Madison, WI. Day 3 (Wednesday a.m.) 8:30 - 11:30 a.m. ($45) When traveling south on John Nolen, it’s the last driveway SECTION B: Property Policies, cont. & WI Property Insurance Law Day 3 (Wednesday p.m.) Noon - 4:00 p.m. ($45) before Highway 12/18 (Beltline). Located near the Alliant SECTION B: Casualty Policies, Terms & Concepts Energy Center and Sheraton Hotel.

Day 4 (Thursday) 8:30 a.m. - 4:00 p.m. ($90) INCLEMENT WEATHER SECTION B: Casualty Policies, cont. & WI Casualty Insurance Law If weather conditions are questionable, use your own judgment regarding your personal safety. If Madison public  Please contact Emma@IIAW.com for information schools are closed, the IIAW is closed and pre-licensing is about multiple registration discounts. canceled for the day. Canceled classes are made up on The course fee includes all class materials. Materials are Friday. distributed on the first day of class. You receive: HOTEL INFORMATION • The Life & Accident/Health or Prop. & Casualty Insurance Students requiring lodging will receive a special rate at the Study Manual.

Clarion Suites, 2110 Rimrock Rd. in Madison. Please call • The Intermediary’s Guide to Wisconsin Insurance Law. the hotel directly at 608.284.1234, and ask for the • The State of Wisconsin Ins. Licensing Candidate Handbook. independent insurance agent’s discount.

This provides all the necessary information to obtain a license.

To register, click the Education tab on IIAW.com. For Wisconsin exam info, visit prometric.com.

News Members in the

SECURA Insurance awards 27 donations to local fire departments in honor of agency partners SECURA Insurance presented 27 fire departments with donations earned by its local independent agents in eight states. The donations ranged from $500 to $1,500, with some agencies choosing to split the donation among multiple fire departments. Some agencies choose to match the gifts, increasing the impact of the donations.

The donations recognize the achievements of independent insurance agents who met or exceeded benchmarks in a sales contest focused on the company’s farm-ag products, which are designed to protect the unique needs of a variety of farms and agricultural businesses.

“Fire departments play such an important part in protecting our policyholders when disaster strikes, especially in rural communities,” said Dave Schlichting, vice president of farm-ag underwriting. “Our independent agents also play a role, and we’re proud to reward our agents’ risk management efforts with local donations in their communities.”

The winning agencies and the fire departments that will benefit include: • Mountain West of Colorado benefitting the Ute Mountain Fire Department • PFS Insurance Group, LLC of Colorado benefitting the Sterling and Yuma Fire Departments • ONI Risk Partners of Indiana benefitting the Honey Creek Department of Fire & Rescue • United Insurance Services of Ind. benefitting the Montgomery Volunteer Fire Department • Town and Country Insurance of Iowa benefitting the Stratford and Kamrar Fire Departments • CFG of Iowa benefitting the Wesley, Britt, and Kanawha Fire Departments • Insurance Station of Iowa benefitting the Wayland Fire Department • Emil Rummel Agency of Michigan benefitting the Village of Akron Fire Department

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• New Lothrop Insurance Service of Michigan benefitting the Hazelton Township Fire Department • Stevenson Insurance of Minnesota benefitting the Wykoff and Mantorville Fire Departments • Farmers Union Insurance (Jay Swanson Agency and Paul Johannes Agency) of Minnesota benefitting the Hallock and Lake Lillian Fire Departments • Bickett Insurance Agency, Inc. of North Dakota benefitting the Carrington and Bowdon Volunteer Fire Departments • Ansay and Associates of Wisconsin benefitting the West Bend, St. Francis, and Slinger Fire Departments • Endres Insurance Agency of Wisconsin benefitting the Sauk Fire District, Cross Plains Berry Fire District, and Lone Rock Fire District Departments Water Street Solutions and Thorncreek Insurance Services, both of Illinois, will also have the opportunity to choose local fire departments to receive donations from SECURA.

Acuity to Match Support for Children’s Cancer Family Foundation Acuity Insurance announced that the Acuity Charitable Foundation is supporting the efforts of Olivia Harlan and Sam Dekker to raise money for the Children’s Cancer Family Foundation (CCFF). The Acuity Charitable Foundation will match donations up to $25,000.

Dekker is a Sheboygan native and professional basketball player for the Los Angeles Clippers. Harlan’s family resides in Door County, and she is an ESPN sideline reporter. They are set to be married in July.

Instead of wedding gifts, the couple asked guests and fans to donate money to the CCFF, which helps families in Northeast Wisconsin who have been affected by WISCONSIN INDEPENDENT AGENT

childhood cancer. Originally, the couple targeted a goal of $15,000. Having surpassed that due to an incredible outpouring of support, they increased the goal to $50,000.

“We are incredibly moved by the support of Acuity and their generous donation to the Children’s Cancer Family Foundation,” said Sam Dekker. “We hope it spurs more donations and pushes us past our goal.” Olivia Harlan added.

“We believe in supporting organizations that are working to make a difference in the fight against childhood cancer,” said Ben Salzmann, Acuity President and CEO. “We are honored to help Olivia and Sam raise funds to help the CCFF in its vital mission.”

To donate, visit https://www.ccffnew.org/harlan-dekkerwedding. Everyone who donates $50 or more will receive a personal thank-you note from Harlan and Dekker.

Acuity is a longstanding supporter of charitable and community nonprofit groups. Guided by the Acuity Charitable Foundation, Acuity contributed nearly $1.3 million in 2017 to worthy organizations. Acuity’s community support throughout the year also includes in-kind donations and use of the company’s corporate headquarters for charitable events. In addition, Acuity employees contribute to charitable causes each year through donations of time, money, and much-needed supplies.

PROTECTING WHAT MATTERS MOST

Strong and steady, constantly raising the bar. All great accomplishments have a certain level of hazard involved, but AMERISAFE has workers’ comp down to the detail. It’s a large part of why we retain 90% of our policyholders. The best protection is being proactive.

Integrity Names Sarah Krause, Avp – Talent Management & Operations In her new role, Krause leads the design, implementation and management of all strategies and initiatives to enhance leadership capability at all levels, deepen bench strength and drive associate engagement and retention. She also serves on the Integrity Leadership Team and oversees Human Resources, Support Services and Information Technology Services.

President Jill Wagner Kelly stated, “Sarah’s leadership experience and proven track record of building effective teams will be a strong asset to Integrity as we continue to grow in this fiercely competitive market. Attracting and developing top talent goes together with our commitment in delivering excellence to customers and agency partners.

Integrity continues to be an employer of choice and I’m confident Sarah will make a tremendous impact on our recruiting, training and development programs.”

Krause is an insurance veteran with 20 years of industry and leadership experience. She has a Bachelor of Business Administration - Risk Management and Insurance from the University of Wisconsin - Madison and holds several insurance designations — CPCU, ARM, AU and ARe.

PLACED

*Policyholder retention rate based on voluntary business that we elected for renewal quote: 97.2% in 2016.

amerisafe.com - 800.897.9719

WISCONSIN INDEPENDENT AGENT

JULY 2018 | 37

FOOD FOR THOUGHT

Serving AAA Members, even on two wheels.

While you’re out enjoying this year’s ride, here’s a refreshing tip for AAA Members: AAA now offers roadside assistance for bicycles.

AAA Bicycle Service is a new benefit with every membership that provides transportation for you and your bicycle if it breaks down on your ride.

It’s one more way AAA helps members relax and enjoy the ride!

Learn more today!

Contact Leo Plese (630) 328-7076 or lmplese@aaahicago.com AAA Bicycle Service is available in Florida, Georgia, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Tennessee, Wisconsin and portions of Illinois and Indiana. 17-IA-2064A

38 | JULY 2018

7.5x6.5 4c

WISCONSIN INDEPENDENT AGENT

We know what it took to build this business.

And we know what it takes to protect it.

Underwriters who know and understand what coverages are necessary to protect the business.

Loss prevention professionals who use a hands-on approach to help develop programs tailored to the individual business.

Claim reps with the expertise and technology to process claims quickly and efficiently.

As an Official Supplier of the Silver LiningÂŽ, you and West Bend will find the right insurance plan for your valued customers.

To find out more, talk to your West Bend underwriter.

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