July 2012 WIA Magazine

wisconsin

independent agent JULY 2012

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independent agent Open Door Policy A Mission, A Vision And A Strategic Plan . . . . . . . . . . . . . . . . . 4 Kalahari Exhibit Hall Great For Business . . . . . . . . . . . . . . . . . . 6 Member Profile Couri Insurance: Enthusiasm On Main Street . . . . . . . . . . . . . 12

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News From ACT BYOD Opportunities & Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

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Errors & Omissions Duty? We Don’t Have No Stinkin’ Duty! . . . . . . . . . . . . . . . . . . 22

SI ionals at N s s fe o r p the '0# So talk to ,%#(*-.#/" #+ * #) ) " !#( s. !"#$%&#"' customer

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Commentary From Counsel There’s A New Sheriff In Town . . . . . . . . . . . . . . . . . . . . . . . . . 18

Marketing Minute Gain A Sales Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Government Affairs Election Déjà Vu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 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

JULY 2012 Eric Schwartz, Editor On The Cover…

The IIA of Wisconsin is the largest and most influential insurance association in the state. This allows us to offer you cutting edge information, resources and advocacy that will help you compete in today’s market and succeed. Membership in the IIAW includes every owner, producer, and service employee of an agency. Every member has unlimited access to services and information from both the IIAW and the Independent Insurance Agents and Brokers of America. This includes the Trusted Choice® independent agency brand. Included with this magazine are membership materials that explain the services that are available to you. Join or renew with the IIAW today! Become one of the more than 4,200 agents across the state banding together to advocate for the future of our industry.

> OUR ADVERTISERS AAA ................................................................ 28

2011-2012 Executive Committee

2011-2012 Committee Chairs

President............................................................Mike Hierl P.O. Box 949, Fond du Lac, WI 54936-0949

Agency Operations................................. Sandra Hardrath P.O. Box 1030, Manitowoc, WI 54221-1030

President-elect .............................................. Michael Froh P.O. Box 1320, Sheboygan, WI 53082-1320

Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949

Arthur J. Gallagher......................................... 33

Secretary-Treasurer ......................................David Dunker P.O. Box 443, Brookfield, WI 53008-0443

Employee Benefits............................................. Tim Bever 555 Main St. #320, Racine, WI 53403

Badger Mutual ................................................ 30

Chairwoman of the Board ........................... Linda Steiner 555 Main St. #320, Racine, WI 53403

Finance & Compensation ............................ Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443

State National Director ..................................Skip Hansen 100 North Corporate Drive #100, Brookfield, WI 53045

Government Affairs .....................................Tom Helbach P.O. Box 40, Mosinee, WI 54455-0040

2011-2012 Board of Directors

Industry Relations ..............................................Ted Haase P.O Box 6, Seymour, WI 54165

Chris Costakis 251 Progress Way #300, Waunakee, WI 53597-2520 Thomas Holter P.O. Box 938, Beloit, WI 53512-0938 Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Bruce Kommers P.O. Box 66, Antigo, WI 54409-0066 Jeff Rasmussen 525 Junction Road, Madison, WI 53717

ACUITY Insurance ........................................... 35 AmTrust North America ....................................11

Burns & Wilcox ............................................... 20 Erickson-Larsen ............................................. 34 IMT Insurance ................................................... 5 Insurance Associates of America .................... 13

Membership Development ................................. Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610

JM Wilson ....................................................... 30

Smaller Agencies .................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236

Office Scheduler............................................. 32

Technical ......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320 Young Agents .......................................... Derek Wickhem P.O. Box 1500, Janesville, WI 53547-1500

Pekin Insurance.............................................. 32 Project CAP .................................................... 25 SECURA Insurance ........................................... 31 SFM ................................................................. 14

Frederick Thomas 330 East Kilbourn Avenue, Milwaukee, WI 53202

Society Insurance............................................10

Cap Wallrich P.O. Box 90, Shawano, WI 54166-0090

The Hanover .................................................... 21

Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045

West Bend ........................................................ 2 Wilson Mutual ................................................. 27

Donald Williams P.O. Box 595, Beaver Dam, WI 53916

JULY 2012

WISCONSIN INDEPENDENT AGENT

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OPEN DOOR POLICY

OPEN DOOR POLICY

A MISSION, A VISION AND A STRATEGIC PLAN The fundamental purpose and objective of the Independent Insurance Agents of Wisconsin (IIAW) is to promote and represent the common business interests of independent insurance agents within the insurance industry in the state of Wisconsin, before the Wisconsin State Legislature and other public bodies, and before the public.

To this end, the IIAW shall promote insurance education among its members and encourage a greater public understanding of the working of the insurance business and the American Agency Systems; produce publications and programs of the highest quality designed to enhance the professional development of its membership; communicate with and explain to federal, state and local governing bodies, insurance companies, and the public the ramifications of matter of direct interest to its members and their conduct of the business of insurance; and generally to promote and encourage friendly relationships among its members, with insurance companies, and the public.

Sound familiar? It’s your Association’s mission statement. Some of you may be familiar with it but most of you, I bet, are not. And that’s OK. Now is as good of a time as any to bring it to your attention. As I read it, several key terms popped out at me such as enhancing professional development, encouraging greater public understanding, and promoting and representing common business interests.

These terms and this long-standing mission statement go hand in hand with the short and long-term vision that I am working on with members of your Executive Committee, board of directors, committee members and company partners.

innovative and industry-leading ways to provide independent insurance agents with the resources they need to be successful. I feel we do a good job at meeting the needs of our members and executing the intent of our mission statement, but there is always room for improvement.

Right now most people in the independent insurance agency workforce are not strategically planning for the next 5, 10 or 20 years. The same could be said for a multitude of state associations. According to recent statistics, there are two million people in our business and over the next 10 years, 30 to 50 percent of our members will retire. Beginning January 1, 2011, every single day, more than 10,000 Baby Boomers will reach the age of

We need to be forward thinkers and innovators to ensure your agency has the tools and resources to exist 100 years from now because, without your agency, there is no IIAW. The IIAW is only part of an equation that we hope equals long-term sustainability and growth for your agency.

Life as we know it is changing quickly.

It’s hard for me, a 28 year old, who is preconditioned to technology, to keep up with all the trends and innovations currently taking place today. But our ignorance and complacency will certainly be our downfall. We can’t allow that to happen.

Keeping our mission in mind, our constantly evolving vision is to create new member services while improving on existing ones.

We have some incredible talent involved in our Association, but there are many talented individuals out there that are not involved in the Association at all. If I may borrow a line from Uncle Sam, “WE WANT YOU”.

The Association’s mission should include enhancing the business climate for Wisconsin’s insurance industry and developing

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65. That is going to keep happening every single day for the next 19 years. What are you doing today to ensure your agency and its legacy continues well into the future?

How about our Association, the Independent Insurance Agents of Wisconsin?

What resources do you use? What is it that we are missing? We have the talent and resources to bring ideas to reality, but we need new talented members to help us as we redefine our Association. We are already taking this Association to a new level by improving current services and offering new resources.

Together with the IIABA, this Association has continued to introduce industry leading services such as Trusted Choice® and Project CAP to complement the wide array of services we currently offer.

JULY 2012

Did you know that one small business fails every 60 seconds? Yet, only 20 percent of small business owners practice any type of business planning regularly despite mounting evidence of the link between strategic planning and business success/failure.

Our vision is to build a strategic framework for our Association through strategic

We need to be forward thinkers and innovators to ensure your agency has the tools and resources to exist 100 years from now.

It’s vital that we collaborate with our industry partners (carriers) and the consumers to produce effective results that create a positive experience for all interested parties.

We are actively seeking out leading companies throughout the country to bring innovation and ingenuity into your agency so you can focus on what you do best. You will see our Association introduce new products

planning to ensure we meet your needs and provide value to give you the advantage for another 100 years. As we build for the future, I would like to extend an invitation to you to join us as we construct the strategic framework to reinvent our Association.

Create the mission, share in the vision and join the revolution. (NO, I am not talking about the one that some tried to wage in Madison.)

Let’s build upon our success, learn from our mistakes and become the Association of the future. I have said it before and I will > Matt Banaszynski is the say it again, we Executive Vice President are only as strong of the Independent as our members.

Insurance Agents of Wisconsin. Contact him Your success is our at matt@iiaw.com. success.

We are seeking quality agency appointments to become part of our “Worry Free” family.

Simply bundle your customer’s auto, home and business insurance into IMT’s “Worry Free” bucket, and you will be worry free too.

Let’s be honest, most of you don’t utilize our services and you are missing out. I want to change that.

WISCONSIN INDEPENDENT AGENT

and services that we hope will revolutionize our Association and allow us to meet your needs at an incredible value.

West Des Moines, IA

JULY 2012

800.274.3531

www.imtins.com

WISCONSIN INDEPENDENT AGENT

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KALAHARI EXHIBIT HALL GREAT FOR BUSINESS The annual convention exhibit hall at the Kalahari on May 9 and 10 was a beehive of activity and a great place to network and take home a door prize. The two-day event was a resounding success for both exhibitors and attendees. “Excellent job with the convention. Very fun,” said one exhibitor post-convention. Next year, the 114th annual convention is May 8 and 9, 2013, at the Marriott Madison West in Middleton, Wisconsin. !"Amy Jo Brice, DeRidder, LA, and Mark Burger, Lake Mills, work the Amerisafe booth. Amerisafe is a specialty provider of workers' comp insurance focused on employers in hazardous industries.

!"Tara Junkans, Lela Brody and Kim Gahagan represent Indiana Insurance.

%"The smiling contingent from the Chubb Group of Insurance Companies. !"Heidi Nienow, Jeff Natzke and Wayne Kiefer worked the AAA booth and gave attendees a chance to play some blackjack.

# Dick Biel snagged a wine set from Premium Finance Corp. and a Kindle Touch from Swiss Re.

!"Keith Krenke, Brent Dingel and Steve Hammerstan of AmTrust North America. AmTrust is a national company that offers workers' compensation, commercial package and employment liability insurance.

$"“Come to the booth and claim your prize!”

Derek Wickhem, chairman of the Young Agents Committee, did a fantastic job traveling from booth to booth and emceeing the raffle prize giveaways. Derek’s father, John Wickhem, took home a $500 cash prize from Germantown Mutual.

!"Julie EricksonRojas, Naomi Sezler, Sheree Olson and Donnel Bartlett-Snell in the Erickson-Larsen booth. EricksonLarsen has offices in Minnesota, Montana, North Dakota, South Dakota and Wisconsin.

#"Cari Lee (right), IIAW Membership and Marketing Director, talks about Trusted Choice and the new Field Agent app in the Independent Insurance Agents of Wisconsin booth. With Cari is Trisha Ours, CSR at The Horton Group and a member of the Young Agents Committee.

!"Christy Engel and Dennis Richards worked the Anthem Blue Cross and Blue Shield booth.

Anthem Blue Cross and Blue Shield in Wisconsin is based in Pewaukee and has seven locations throughout Wisconsin. #"Tom Gast (left) and David Froh in the ACUITY Insurance booth. ACUITY is a regional insurance company based in Sheboygan.

!"Jeremy Cordova, Murphy Insurance Group, Howard Tekler, Capitol, and David Johnson, Capitol, in the Capitol Insurance Cos. booth.

!"Bruce Kommers (left) won $100 courtesy of The IMT Group. IMT gave away $100 every five minutes in the exhibit hall for one hour.

#"Lise Bower snagged a wellness bag from the fine folks at WPS.

!"The delegation from QBE Insurance.

QBE Regional Insurance is based in Sun Prairie.

%"Nick Marino and Janelle Krainz of SFM. SFM is a workers’ compensation insurance company based in Bloomington, Minnesota.

!"Michelle Roedl (left) and Wanda Amo of Safeco Insurance. Under the umbrella of Liberty Mutual, Safeco has over 3,000 employees across the country.

#"Sue Loughan (right) won a luxurious lawn chair from Sheboygan Falls Insurance. Amy Kromke of Sheboygan Falls presented the prize to Sue.

!"Sharon Wetzel (left), Kris Fox and Cathy Beaudin of Integrity Insurance. Integrity is a regional insurance company based in Appleton. %"The party from Society Insurance in the exhibit hall. Rick Parks, president and CEO, is to the left. Society is a regional insurance company based in Fond du Lac.

$"Dave Ganschow, Thomas Buss, Ryan Harrison, Terry Pluemer and Mike Tietz work the Pekin Insurance booth.

Pekin is based in Pekin, Illinois.

%"West Bend Mutual’s representatives at their booth. West Bend is a regional insurance company based in West Bend.

$"The Travelers group in the exhibit hall. Travelers is based in Hartford, Connecticut.

$"Paul Stewart, Eric Duren and Drew Ferguson of Progressive Insurance. Progressive is based in Mayfield Village, Ohio.

%"Brian Christ and Connie Meyer of Wilson Mutual. Wilson is a regional insurance company based in Sheboygan.

What does it take to join The Society Team?

TM

AGENT

TM

While other insurance teams recruit by size, at Society® Insurance we focus on the intangibles. Our playbook revolves primarily around niche and workers comp insurance. And our philosophy is to find agents that are the best fit for our team.

So rather than recruit by the size of the agent or agency, we prefer to find teammates that can execute our game plan to perfection.

AmTrust has the perfect recipe for small businesses

Complementary workers’ comp and BOP coverage By offering a competitive businessowners policy (BOP) a’ la carte or as an accompaniment to our workers’ compensation insurance or commercial auto products, AmTrust has a menu that serves small businesses well.

®

Better yet, we offer a 10% discount on BOP for our existing workers’ compensation policyholders. An umbrella policy is also available, with limits ranging from $1 million to $10 million to fit over our BOP and commercial auto products. rive elot D m a 6 150 C x 1029 5493 o I B .

W O , c P. du La Fond SOCIETY ) 5888- 76-2438 com -5 e.

(888 insuranc y t socie 10

WISCONSIN INDEPENDENT AGENT

JULY 2012

For more information about how you can write business with AmTrust, please call 877.528.7878 or visit www.amtrustnorthamerica.com.

A.M. Best rating of “A” (Excellent) FSC IX

Your Success is Our Policy.®

MEMBER PROFILE

Couri Insurance:

By Eric Schwartz

Judie and Jerry Couri, principals of Couri Insurance Agency. The Couris are the owners of 235 insurance agencies in 11 states.

Enthusiasm On Main Street

A college student looking for vocational guidance should chat with Jerry Couri for five minutes — there’s a good chance they would choose insurance as a career. His enthusiasm for the insurance industry and life is contagious.

“I absolutely love what I do,” said Jerry from his office on West Main St. in Waukesha, the home of Couri Insurance Agency. He has a plan for a youth movement in his agency and it’s one that the industry should pay attention to.

“We’re on a campaign to get as much youth as possible in our agency,” he said. “We go into colleges when students are sophomores, before they have decided what they’re going to do.” Recruiters who go on campus and talk to college seniors could be missing out on the best and brightest. By this time, many of the smart and motivated candidates have already been snapped up.

This method has produced dividends.

Jerry said that 75 percent of the students he has talked to stay in the industry. This is promising considering that within the next decade, many of the industry’s mainstays will be retiring. There will be opportunities for many young professionals to gain a foothold. Some have already seized the opportunity.

Mike Hanley, a recent graduate of Marquette University, started at Couri Insurance when he was an undergrad. This talented finance and marketing major is now a full-time personal lines placement specialist at the agency.

“When it’s my time to retire, I want him to sit in this chair,” said Jerry. “He’s a great guy.”

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“It’s a rewarding business but we as leaders and innovators have to make it fun,” said Jerry. “You have to have fun and that’s why I’m here. Work can be tedious so you have to find ways to energize it. We have tried to do that here and our turnover is low.

Everybody here (at the agency) has been here for 10 plus years, except for some of our younger staff.”

Couri Insurance currently has Couri Insurance Agency at 370 West Main Street in Waukesha.

But don’t plan his retirement party just yet.

Jerry’s passion for the job has not wavered after 40 years in the business. His office is on the ground floor so he can see Main Street.

“I want customers to know I’m around,” he said. “I want to shake hands with them and let them know I’m here. I still sell. I have an appointment with an accounting firm later today. I want to stay active in the business so I know what the emotion is of a given situation.”

Jerry’s energy and experience in the business makes him an excellent ambassador for the industry. He knows that most people currently in the business did not plan on getting into insurance and that’s says something about the industry’s appeal. It’s up to agency owners and leaders to get the word out that the insurance industry is a gratifying career choice full of great people.

WISCONSIN INDEPENDENT AGENT

JERRY’S INSURANCE CAREER

started in Chicago. In 1972, he joined Kemper Insurance as an adjuster, and went on to work as an underwriter, actuary and a recruiter in the field. It was a great foundation for what would become his life’s work.

With Kemper, Jerry had the idea to combine coverages into one policy but Kemper’s decision makers weren’t sold on the idea at first.

“It took some time to develop but they found it enhanced their sales and retention,” said Jerry. “Now, West Bend, SECURA, ACUITY and others have similar products.”

In February 1977, Jerry accepted a position as a producer with Schlosser Insurance in Waukesha with the intent to eventually buy the agency from Tony Schlosser.

“Tony was a good man with a big heart,” said Jerry of his former boss. “He was an easygoing, super guy. He trusted me and would ask my advice on how to sell a particular insurance. We always got it done.”

Tony led an interesting life and had the chance to interview an SS officer who was commandant of the brutal Dachau concentration camp during World War II. The commandant was on his deathbed when Tony interviewed him.

“He had shot himself in the stomach in such a way to die slowly,” said Jerry remembering Tony’s story. It was a grisly but fitting way for the former Nazi to atone for his inhuman treatment of the people in the camp.

In 1980, Jerry formed an association that helped captive insurance agents become independents. At the time, the independent agency system was contracting.

“Judie (Jerry’s wife) said, ‘We need to take this outside of Waukesha,’” said Jerry. Today, the Couris are the owners of 235

42 employees at the Waukesha home office.

The insurance industry can certainly provide financial rewards but there is another type of enrichment that people outside the industry may not readily see.

“I want to help people,” said Jerry. “This business can do that. When something goes wrong, I want to be there to make it whole again.”

“We’re more than partners and it works for us,” said Jerry of his wife. “She is a dynamic lady and works very hard. She has been a huge part of the agency’s success.” In January, the couple celebrated their 40th wedding anniversary by taking a trip to the Caribbean.

With five decades of experience to fall back on, Jerry has some solid opinions of what works.

“Coverage is more important than price,” said Jerry. “Customers want combo policies with coverages all in one. They want great customer service and don’t want to be herded. The independent agency allows me to do that.”

Please turn to page 24 for more about the Couris.

Tired of Walking Away from Business?

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Couri Insurance Agency is an independent insurance agency headquartered at 379 West Main Street in Waukesha. The agency offers individual and commercial insurance products.

Couri Insurance has agencies in Wisconsin, Minnesota, Iowa, Illinois, Michigan, Indiana, Missouri, Kansas, Arizona, Colorado and Nevada, and is working on California and Texas. Find them on Web at www.couri.com, or call them at (800) 571-0248.

JULY 2012

additional insurance agencies in 11 states with more than 600 licensed independent agents selling the product lines. Couri has licenses to sell insurance in 48 states.

Check out our website at www.iaanetwork.com For more information call Mike Sabourin 866-789-9712

JULY 2012

WISCONSIN INDEPENDENT AGENT

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NETWORK EFFECTIVELY & GET LEADS: SEVEN TIPS TO SUPERCHARGE YOUR SALES We all know that networking is a great way to grow our businesses, yet many people either don’t do much of it or they aren’t very good at it. This article will give you seven keys to supercharge your networking so you can grow your business.

experts.

Ready, Set, NETWORK!

Trust the

1) Do it often. You can’t hope to have much success networking if you only do it once every month or two. To have any sort of networking success, you have to do it at least once a week.

Of course, the more you do it the better. Like anything else, in order to get good at networking, you have to practice. The more you network, the better you’ll become at connecting and communicating with people. Also, networking, like sales and business, is a numbers game — the more of it you do, the more people you will meet and the more business you will do.

SFM–The Work Comp Experts Claims, legal and medical expertise. Optimal results in preventing injuries

2) Do it in-person. While social media and other networking mediums are nice, you can accomplish more in thirty seconds of a face-toface meeting than you can in a year on LinkedIn, Facebook, or other social networking sites. When you meet someone in-person and shake their hand, you become a “real” person. After meeting in person, you can then ask to connect with them on social media. Nothing builds relationships and business faster than meeting people face-to-face.

Note: Get to events early and leave late. Many people do the opposite.

and controlling costs. Highest levels of customer satisfaction and retention.

A leading regional insurer, specializing in workers’ compensation.

Let SFM quote your workers’ compensation business. Call (800) 937-1181 or visit www.sfmic.com

3) Network in the right groups. Make sure you’re networking where there are people who can either give you business or refer you to people who can give you business. If the networking

group does not contain people from your target market, or the people there do not have the authorization to give you the go-ahead on what you have, you should look for another group.

Also, a networking group populated with hordes of your competition may not be the best group for you.

4) Talk to strangers. It amazes me how many people at networking events simply talk to people they already know. That happens, of course, because that’s where people are most comfortable.

While you want to be nice and greet the people you know, your objective at networking events is to expand your network and meet new people.

Don’t hang out in the corner with your coworkers; step out of your comfort zone and meet new friends and business contacts.

5) Make it about the other person. The more you focus on the other person, the more success you will have. Start by asking what they do. Next, ask who their ideal client is. If you can, give them a lead. If you can’t, let them know that you will try to think of someone for them. The more you focus on the other person and giving to them, the more they will want to help you.

6) Have something meaningful to say. When the other person naturally reciprocates and asks what you do, make sure you say something significant.

You need to clearly articulate who your target

market is and the benefits they receive. For example, you could say, “I help (target market) to (primary benefit).” Be concise. If you are asked for more information, tell a story about how you were able to help a client. Keep in mind that everyone is thinking, “What’s in it for me?” Speak in benefits and results for your target market.

7) Follow up. After

Your objective at networking events is to expand your network and meet new people.

you meet someone at a networking event, you need to follow up ASAP. Ideally, you should send a personal note out the same day. You can also follow up with a phone call and e-mail the following day. Also, if you made a commitment to do something, make sure you do it. You don’t have follow up with a card, call, and e-mail to everyone, but your brightest prospects should hear from you. Obviously, be courteous and accommodating to everyone you meet whether they can help you or not. It’s fine to reach out to someone who may not be a good match for you, but realize there are only so many contacts you can manage and only so much time in the day.

In conclusion, most of us don’t have enough leads via people we know, referrals, and other lead sources.

Without a doubt networking is one of the fastest and direct methods for growing a business.

Also, the better you get at communicating with people you don’t already know, the more successful you will be in business.

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WISCONSIN INDEPENDENT AGENT

JULY 2012

JULY 2012

WISCONSIN INDEPENDENT AGENT

> John Chapin has more than 21 years of sales experience and is the co-founder of Complete Selling Inc. For free access to John’s whitepaper on what it takes to be successful in sales, visit completeselling.com.

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NEWS FROM ACT

NEWS FROM ACT

BYOD OPPORTUNITIES & RISKS:

EMPLOYEES EXPECT IT BUT EMPLOYERS NEED TO MANAGE THE RISKS

‘‘

The consumerization of IT revolution — sparked by the iPhone — has shifted the IT culture so that the users are the ones getting the latest, cutting edge technologies first, and they want to bring those devices to work.”

— PC World Magazine, Dec. 20, 2011, Tom Bradley “Pros and Cons of Bringing Your Own Device to Work”

What Is BYOD?

What Are The Security Risks?

Many workers today expect the companies they work for to allow them to use their personal mobile devices and personal computers at the office, and/or to provide remote connectivity to the office via personal devices. Technologists dub this trend “BYOD” (Bring Your Own Device).

Bring your own device mobility offers access to enterprise data, systems and corporate e-mail.

Employees can store and process data and connect to networks.

devices at work as placing no extra burden on technical support. But dealing with any data or system security issue requires know-how and technical resources.

While BYOD may be considered necessary and convenient, this type of connectivity can raise significant data security and privacy concerns which lead to potential legal and liability risks.

! Executives perceive the risk, but aren’t fully ready. In August 2011, a Deloitte Webcast

Why Is BYOD Important?

Mobile devices — along with their applications and on-the-go Internet access — provide attractive options for speed, connectivity and productivity. Many people wouldn’t think of spending their workday without a Blackberry, iPhone, Android, iPad or other device to access company systems and data. Most important, senior managers want to use these devices and are using their organization’s technology more because of them.

Many employees see their own personal devices as superior to those provided by their employers. Employees also tend to believe they are more productive if allowed to use their own devices for work and data syncing between office and home.

Thus, BYOD is significant because employeeowned devices are now accessing company systems and being used for work purposes presenting security and privacy concerns to the employer.

Employers see the inherent value in a more mobile, more connected and more productive workforce. Many employees and managers have no problem connecting and addressing work issues after hours and/or on the weekends. It can be considered a motivational strategy.

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Consider the following: > The device gets lost or stolen with access to company data and systems. > The device contracts a virus or has malware installed that can obtain company logins and data from that device. > The personal device user — however good his/her intentions are — can in effect be circumventing company security standards. > The company cannot control the use of the personal device should the employee allow children or friends to use the device.

poll of more than 1,000 U.S. information technology and business executives found that 28 percent of respondents believe there are unauthorized personal digital assistants (PDAs) and/or tablets connecting to company systems, especially to e-mail servers. About 87 percent of respondents think their systems are at risk for a cyber attack originating from a mobile security lapse, the poll reported.

The same poll found 40 percent of respondents are unaware of whether their organizations have strategies or controls to enforce mobile security. Further, it found that only 24 percent of respondents believe that “all devices connecting to my intranet are authorized.” Only 17 percent reported that they monitor for rogue connections.

that iPhone/Android-based smartphones and tablet computers be provided access to these same services.

Security Solutions

How Do You Proceed Once BYOD Is Determined Necessary?

If an enterprise is allowing employees to use their own mobile devices, the following security measures should be implemented.

Since there are risks to the mingling of personal devices and work systems, companies must take the lead in assessing and managing the risks so as to safeguard their systems and data. Some simple steps include:

1 Require strong phone startup PIN which is at least 6 to 8 characters long. If not supported, use the maximum allowed. Reduce the PIN required timeout setting to no longer than 10 minutes.

1 Institute a strong written BYOD policy that is consistent with the organization’s employee handbook policies such as the IT policy and acceptable use policy.

2 Require specified encryption and antimalware software on each device.

2 Determine which data to protect.

3 Define what devices will be supported.

4 Determine which employees need remote access via personal devices.

Do not open BYOD participation beyond those employees that have a strong business reason for mobile access.

> The employee plugs a mobile device into the USB port of his or her office computer thereby transmitting a virus to the office desktop.

mobile devices is increasing, reported IBM Security Solutions researchers in a fall 2011 whitepaper. Citing an IBM security research report, the whitepaper presented statistics showing that mobile operating systems vulnerabilities tripled from 60 to a projected 180+ from 2009 to 2011.

Here are some facts to consider when trying to balance personal device access with security:

! Enterprise systems and mobile systems are catching up with each other. While many

! Employees don’t perceive the risk. Many employees perceive the use of their own

corporations have for years allowed Blackberry-based access to email and other company systems, users are now demanding

WISCONSIN INDEPENDENT AGENT

JULY 2012

5 Define security requirements.

6 Train and educate employees concerning policy and BYOD use.

7 Monitor employee mobile devices for compliance with your organization’s policy.

8 Secure employee’s authorization to “wipe” the employee’s mobile device remotely (restore to the original factory state), as a condition of giving access to any of the business’s systems.

9 Place controls over access to and use of the company’s wireless Internet. For example: do not broadcast your wireless SSID, restrict access to employees only using MAC

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devices and platforms should consider Mobile Device Management (MDM) software. This MDM software centrally controls and protects the data and configuration settings for all mobile devices in the network. The software can also provide a secure document delivery platform and end-to-end data transmission encryption.

The opportunities of BYOD are present — and here to stay. As an analogy, home security is more complex for a bigger house with more entrances and windows. So too is systems security more complicated as smartphones and other remote devices present new entry points to be analyzed and protected.

While BYOD may be considered necessary and convenient, this type of connectivity can raise !"#$"%&'$()*'(')!+&,-"(.) and privacy concerns which lead to potential legal and liability risks.

! Malware is on the move. Malware that targets > The employee may use the device to place files in personal applications in the cloud which may not be secure.

address filtering in the router and invoke WPA 2 on the router.

3 Require and install mobile tracking software/ applications which allow online access to track the location of a lost/stolen phone and the ability to perform a lock/scream and/or remote data wipe. Secure employee’s authorization to take these actions on the device if the device is misplaced, lost or stolen, as a condition to giving the employee access to the business’s systems and data.

4 Do not allow “broken”/”rooted”/“jailbroken” devices on your network. These phones have removed limitations installed on the phone by the carrier allowing the user to run apps and files not approved by carriers. This process opens the device up to security risks.

5 Large enterprises monitoring multiple

WISCONSIN INDEPENDENT AGENT

All of the security tips presented here are simply guidelines to aid agencies in diminishing security and privacy risks and managing them. However, none can be guaranteed 100 percent effective.

> Danielle Johnson is the VP, director of information technology at InsurBanc, which IIABA and the W.R. Berkley Corp. established to assist independent agencies with their specific banking needs. This article reflects the views of the author and should not be construed as an official statement by ACT.

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CONNOR NAMED PRESIDENT OF CONTINENTAL WESTERN

COMMENTARY FROM COUNSEL

THERE’S A NEW SHERIFF IN TOWN: THE EEOC’S EFFORTS TO REGULATE ARREST AND CONVICTION RECORD DISCRIMINATION IN WISCONSIN For nearly 35 years, the Wisconsin Fair Employment Act (WFEA) has prohibited discrimination against applicants or employees based on an individual’s arrest or conviction record. The federal equivalent of the WFEA, Title VII of the Civil Rights Act (Title VII), does not expressly prohibit discrimination on the basis of an arrest or conviction record.

The federal Equal Employment Opportunity Commission (EEOC), however, has recently reinvigorated decades-old policy guidance on the issue. In a high-profile exercise of its regulatory power, the EEOC has inserted itself into this area of law.

Wisconsin Law on Arrest and Conviction Records in Employment With respect to arrest records under Wisconsin law, it is unlawful discrimination to request an applicant, employee, member, licensee or any other individual, on an application form or otherwise, to supply information regarding any arrest other than pending charges. It is not unlawful discrimination to refuse to employ or

It is unlawful discrimination to refuse to employ or terminate a person because of his or her conviction record unless the circumstances of the offense “substantially relate” to the circumstances of the particular job or licensed activity.

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license, or to suspend from employment or licensing, any individual who is subject to a pending criminal charge if the circumstances of the charge “substantially relate” to the circumstances of the particular job or licensed activity. The most severe action an employer can take with a current employee is unpaid suspension; an employer cannot terminate an employee for a pending criminal charge.

With respect to convictions in Wisconsin, it is unlawful discrimination to refuse to employ or terminate a person because of his or her conviction record unless the circumstances of the offense “substantially relate” to the circumstances of the particular job or licensed activity. The statute explicitly authorizes employers to refuse to employ or terminate employees who have a conviction record the circumstances of which “substantially relate” to the job.

Unlike pending criminal charges, when an employee has been convicted of a crime that substantially relates to the position, the employer can take action up to and including termination.

So what does “substantially relate” mean, and why? The gist of the “substantially related” test is to strike a balance between society’s interest in rehabilitating those who have been convicted of a crime and its interest in protecting citizens. The Wisconsin Supreme Court has indicated that the purpose of the “substantially related” test is to keep employees out of jobs where the employee may be likely to recommit a crime. The Court said, in the seminal description of the “substantially related” test:

“[W]hat is relevant to the determination of substantial relationship is whether the job

WISCONSIN INDEPENDENT AGENT

provides a context within which a convicted person, being placed in an employment situation offering temptations or opportunities for criminal activity similar to those for which he had previously been convicted, will commit another similar crime.”

Wisconsin agencies and courts have provided decisions and guidance regarding the “substantially related” test for decades, which has been useful in making subjective determinations. The EEOC offered limited guidance in the 1980s and 1990s, principally revolving around the disparate impact on minority groups arising from the use of arrest and conviction records in employment decisions.

New EEOC Initiatives In July 2011, however, the EEOC indicated its intent to get back in the game of more closely regulating arrest and conviction record discrimination. The EEOC held an informational hearing to examine arrest and conviction records as a hiring barrier in July 2011 and, on April 25, 2012, the EEOC issued updated enforcement guidance on the consideration of arrest and conviction records in employment decisions under federal law.

One of the first items of note in the enforcement guidance is the EEOC’s express statement that federal law, and the EEOC’s interpretation of federal law, preempts any state law. Thus, even if an employer complies with Wisconsin law regarding arrests and convictions, the employer must still comply with federal law as interpreted by the EEOC. This has practical implications in two specific ways in Wisconsin.

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First, the EEOC has indicated that consideration of the time that has elapsed since a conviction or conduct leading to an arrest is a significant factor in determining whether there is discrimination on the part of the employer. This is in stark contrast to Wisconsin law, where the period of time that has elapsed since an offense is not relevant to deciding whether a conviction is “substantially related” to the job.

A second contrast — if not outright conflict — between the EEOC’s new enforcement guidance and Wisconsin law is the apparent requirement, under the federal enforcement guidance, to conduct an “individualized assessment” of the individual and his/her arrest or conviction. Under Wisconsin law, there has been no particular need to offer the individual who has a disqualifying arrest or conviction from arguing reasons why that arrest or conviction should be ignored. In fact, Wisconsin courts have indicated that the facts underlying the conduct or offense that led to the conviction are irrelevant to the substantial relationship test. The EEOC, however, is apparently requiring employers to provide an opportunity for the individual applicant or employee to be heard.

What has not changed is the need for the “substantially related” analysis. The EEOC’s enforcement guidance uses terms like “job related” and “consistent with business necessity.” As long as arrest and conviction records are job related and consistent with

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business necessity, those records may be used as a determining factor under federal law. This analysis encouraged by the EEOC is no different that the “substantially related” test under state law. If the arrest or conviction record is substantially related to the job, the arrest or conviction record may be properly considered.

At the end of the day, having another layer of enforcement and somewhat inconsistent guidance is not terribly helpful. Nonetheless, Wisconsin employers must be cognizant of the need to be careful in considering arrest and conviction records in employment decisions. Given the updated federal guidance, employers must be careful to ensure they do not run afoul of the limitations on the use of arrest and conviction records in hiring and retention of employees. It is always a good idea to consult legal counsel upfront when considering arrests and convictions.

> Josh Johanningmeier is the IIAW’s General Counsel. Call the Legal Services Hotline at (877) 236-1669.

WISCONSIN INDEPENDENT AGENT

Michael Connor has been named president of Continental Western Group, LLC (CWG). Mike succeeds Brad Kuster who is taking on other activities within the W. R. Berkley Corp. group of companies.

“I want to thank all of you for your past support and have enjoyed working with you,” said Kuster. “I am confident you will continue to see success with CWG through Mike’s leadership.”

Michael Connor Mike has over 25 years of experience in the property casualty insurance industry and was most recently senior vice president, commercial marketsNortheast division, at another leading property and casualty insurer. He graduated with a B.A. from Colgate University and holds the CPCU and Associate in Underwriting professional designations.

“I am excited about my new role and will be out visiting regional offices and getting better acquainted with other WRBC companies,” said Connor. “I am eager to meet with CWG agents and believe strongly that solid agency/carrier relationships build long lasting profitability.”

Mike and his wife, Meredith, have two sons. Jason is a sophomore at Brown University and Max is a junior in high school.

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EFT Bi

ERRORS & OMISSIONS

ERRORS & OMISSIONS

“DUTY? WE DON’T HAVE NO STINKIN’ DUTY!” “Badges, we don’t need no stinkin’ badges,” is one of the most famous, and most often misquoted, lines from the 1927 novel (and later a movie starring Humphrey Bogart) by B. Traven, “The Treasure of the Sierra Madre.”

When Gold Hat, the bandit leader is asked

by Bogart’s character Fred C. Dobbs, “If you’re the police where are your badges,” his response is,

insurance laws or regulations. They are relatively innocuous and little more than a perfunctory duty of the insurance carrier pursuant to the terms of the policy. However, there are other times that the notice is more than a just a reminder and in fact is necessary due to non-payment of premium.

“Badges? We ain’t got no badges. We don’t need no badges! I don’t have to show you any stinkin’ badges!”

This is the instance when the customer may utter the words, “Notice? We don’t need no stinkin’ notice!”

With my apologies to the author and the filmmakers, a similar sentiment can sometimes be heard when an insurance agent’s customer receives a notice of cancellation. Many times the notice comes at the end of the policy period and is simply

Previously, independent agents acting on behalf of their carriers were responsible for collecting, accounting for, and transmitting premium payments to the insurance companies on a daily basis. At many points during these transactions, due to various factors including the crush of everyday business, errors would be made at every step:

Sometimes the simplest thing to do to protect yourself from

Collection. The amount paid would not be the correct amount owed, if paid by check it could be post dated or from a closed account.

an E&O exposure is to do nothing. Don’t create an obligation for yourself where no obligation is necessary.

a reminder to the policy holder by the insurance company that their policy may cancel at the end of the policy term unless it is renewed prior to that date. Many times these notices are required under state

22

Accounting. The amounts may not be entered correctly between what was billed and what was collected, the premium calculation could be misquoted resulting in insufficient payment amount.

Transmitting. The amount sent to the carrier would be net of the agent’s commission and the calculation would be incorrect, or, heaven forbid, the payment would not be sent to the carrier in a timely basis.

At any point in this timeline, an error might be made that would result in the

WISCONSIN INDEPENDENT AGENT

carrier notifying the agent that the policy had been cancelled due to non-payment of the premium and to issue the notice of cancellation.

The agency might then issue the notice of cancellation without checking their records to determine if in fact the notice was appropriate.

Thankfully for the agents, insurance companies then began the process known as “direct bill.” This effectively took the agency out of the money handling business and reduced the risk of exposure when dealing with monetary transactions. No longer does an agency have to worry when a customer is late with a premium payment and the carrier issues a notice of cancellation. Should the customer come running into the agency late on Friday afternoon with their premium payment, it is no longer the agent’s duty to collect the premium and transmit it to the carrier. Now, the customer is responsible for making sure that timely payment is made directly to the carrier. The agent can leave the office on Friday evening with a clear conscience that all is right with the world.

However, there are some agents who create an obligation and an E&O exposure that direct bill had eliminated.

Consider if you will the following situation: On March 1, Marc, a long-time customer of the All Is Right With The World Insurance Agency, receives a premium notice on his direct bill policy from the FiddleDeeDee Insurance Company.

The notice states that if premium is not received by the company by May 1, his policy will be cancelled. Marc places it on his desk and it is promptly covered up by other papers he receives and just as promptly forgotten.

The fact that it was forgotten by Marc is not important to him because he knows that his agent, Sharon, will always call him to remind him to pay his bill. (Remember, this is a direct

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bill policy.) Sharon, who has always called Marc to remind him to pay his bill a week before it is due, is on an extended vacation to Hawaii celebrating her 25 years in the insurance business and will not return until May 10. On May 5, Marc has a loss and calls Sharron’s office to let her know about the claim so she can report it to the carrier.

Sharon’s CSR, Erik, tells Marc that Sharon is out of town and won’t be back until May 10, but he will report it to the carrier. Erik then looks for the file on the agency management system and discovers that the policy cancelled on May 1 due to nonpayment of premium. Erik was going to call Sharon to tell her what happened, but when she was leaving for her trip, she left strict orders that she was not to be contacted for any reason other than for death of a family member or pet. Erik then called Marc and said he reported the claim to the carrier, but it would probably be denied because the policy had cancelled before the loss, and of course it was.

In this situation Sharon had created a duty for herself that was completely unnecessary — the duty to notify her customer that a premium was due on a direct bill policy.

Although Sharon thought she was being a good agent and providing a good service to her customer, all she had done was create an expectation that until she called to remind him to pay the premium, that the policy would always been in force. Due to that expectation, she was now responsible if he did not make the payment on time. Had she not created the expectation, she would not be responsible.

So what should Sharon have done?

Assuming that once she took on this obligation to call her customer, she also had a duty to let Marc know that she would not be doing it any longer. She would let him know that the premium notice from the carrier was

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the only notice he would receive and if he failed to make the payment, the policy would be cancelled.

do nothing. Don’t create an obligation for yourself where no obligation is necessary.

“Duty? We don’t have no stinkin’ duty.”

So how should she notify him (and any other customer that she did this for that also had a direct bill policy)?

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 > Richard F. Lund, management and/or JD, is a VP and senior shareholders.

A good thing to do would be to send him (and all others like him) a letter advising him that she would no longer be notifying him by any means, phone call, letter, e-mail or any other method, when the premium was due. The best thing to do would be to send a certified letter return receipt requested so that there would be documentation in their file that Marc had received the letter. Yes, there is a cost involved with sending these letters, but the cost is significantly less than most deductibles on an E&O policy, not to mention the time, stress, and all the other unpleasant things associated with an E&O claim.

Sometimes the simplest thing to do to protect yourself from an E&O exposure is to simply

WISCONSIN INDEPENDENT AGENT

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FO R M E R G OV E R N O R V I S I TS CO U R I I N S U RA N C E

The Difference Between Marketing and

Dominating.

Jerry and Judie Couri hosted a visit at their agency that included Tommy Thompson and IIA of Wisconsin members and staff. From left: Skip Hansen, Diversified Insurance Services; Jerry Couri, Couri Insurance Agency; Tommy Thompson, U.S. Senate candidate; Judie Couri, Couri Insurance Agency; Caryn Papenthien, Couri Insurance Agency; and Matt Banaszynski, IIAW Executive Vice President.

$SFBUFE UISPVHI B QBSUOFSTIJQ PG UIF **"#" 5SVTUFE $IPJDFÂĽ TUBUF BTTPDJBUJPOT BOE LFZ JOTVSBODF DBSSJFST 1SPKFDU $"1 JT B QPXFSGVM JOEVTUSZ XJEF NBSLFUJOH JOJUJBUJWF UP IFMQ JOEFQFOEFOU BHFOUT BUUSBDU BOE DPOOFDU XJUI UPEBZ T POMJOF JOTVSBODF DPOTVNFST #FTU PG BMM NBOZ PG UIFTF QSPHSBNT BSF OPX BWBJMBCMF UP **"#" NFNCFS BHFODJFT BU OP BEEJUJPOBM DIBSHF

Get the scoop. Join the cause. Win the game.

On June 5, Tommy Thompson, former governor of Wisconsin and current U.S. Senate candidate, visited Couri Insurance Agency in Waukesha to discuss important issues affecting the insurance industry and independent agents and to learn more about the independent agency system. Thompson is vying for the Senate seat that is being vacated by Sen. Herb Kohl. From left: Jerry Couri, Judie Couri, Tommy Thompson and Candee Arndt. The guitar sculpture, an oversized Les Paul replica, was created by Racine artist Bill Reid and is one of 10 sculptures being installed in downtown Waukesha. The sculptures are part of the Waukesha GuitarTown Project's effort to combine a public art with fundraising for Waukesha County Museum's planned Les Paul exhibit, school art projects and the Waukesha Community Health Clinic.

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WISCONSIN INDEPENDENT AGENT

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GAIN A SALES EDGE: A BAKER’S DOZEN OF IDEAS Every salesperson knows the job is tougher than ever. It’s not for the fainthearted or those who feel the world owes them a living. At the same time, salespeople recognize the importance of standing out from the crowd.

Yet, even those with winning qualities can have other attributes that keep them from getting to the top. To help tip the sales scale, here are 13 ideas that can make a difference:

1. Start exciting customers and stop trying to entice them.

5. Be there at the right time.

7. Doubt yourself.

A printing sales executive locks the competition out with his electronic tickler system that tells him when jobs are coming up. His customers and prospects are impressed that he makes contact with them at just the right moment.

Salespeople often take pride in their ability to “read” people and situations, relying on their “gut instincts” or intuition. They view it as “built-in” radar, guiding their decisions. Although experience can play a significant role, famed psychologist, Dr. Daniel Kahneman, points out the danger on depending on intuition. It can lead to what he calls “automatic thinking” that ignores relevant information, which can spell trouble in sales.

Spending time figuring out a customer’s hot buttons is out of sync with the times. Excite them with your knowledge, helpful ideas and your willingness to be there after they sign the order.

2. Make the customer experience interactive.

8. Stay with the facts.

The primary sales task is to get customers talking. Most already have information and expect to participate and they’re turned off when they don’t have a chance to do so. Ask questions that engage the customer, that create a dialogue. There’s nothing a salesperson can say that’s more important than that.

Using exaggerated claims and inaccurate information are “the kiss of death” for today’s salesperson.

With better-informed customers, uncovering such information only takes a few seconds, thus damaging credibility. In today’s totally transparent world, “messing with the facts” can be fatal, whether business (oversized claims) or personal (doctored resumes).

3. Every sale involves a relationship.

9. Think for a change.

One salesperson couldn’t figure out why a prospect didn’t want to buy, until he said, “Frankly, I just don’t understand why we can’t seem to move forward.” It turned out that the customer was afraid the salesperson would disappear.

“I like picking your brain,” he commented.

4. Use the “big question” to build a relationship with prospects.

“What would you like to accomplish that you haven’t already?” This is the question that opens the windows wide so you can understand what’s hidden away in customers’ minds that dominates their thinking and what they care about passionately.

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6. Using “Big data” for better results.

There no reason for wasting time bird-dogging dead-end leads; yet, that’s what salespeople assume to be part of the job. Not any longer.

And that’s the value of “big data,” information that exists outside your company, but is now available. Intuit (QuickBooks, Quicken and Turbo Tax) has transactional, behavioral, usergenerated data (from its products) and social data drawn from social networks. And it’s easily accessible for large or small companies.

xD, xB, tC and iQ on a dealer’s lot is identical: no accessories. Customers choose the color and then decide on the accessories, which are dealer installed. The process gets customers involved in making choices. In the end, it’s their car.

11. Present the proposal last.

Too many salespeople rush to get a proposal in front of buyers. It’s a bad move because it detracts from getting the customer involved in a dialogue and halts a salesperson’s learning process. Make your proposal an extension of your conversation so that it becomes the result

of your conversations. That way your proposal is really coming from the customer.

12. Embrace social media.

View social media as a way to engage and cultivate customers, not as advertising or a way to make sales. Ask relevant questions, share ideas and offer helpful information. Be consistent: it’s the key for pulling customers closer to you. Twitter and LinkedIn can be good places to start.

13. If the story fits, use it. If it doesn’t, don’t.

Make your proposal an extension of your conversation so that it becomes the result of your conversations. That way your proposal is really coming from the customer.

No one enjoys telling stories more than a salesperson. Those who are good at it know when to use a story, and when to keep quiet.

Before telling any story, remember that customers are interested in themselves, not you. A sales team was invited by the president of a regional restaurant franchise to meet with him regarding a project for the company’s 600 employees, but were cautioned that they had 45 minutes and no longer.

When the meeting began, the president started talking and didn’t stop for 40 minutes, much to the sale team’s dismay. At that point, the team leader asked the president if he would like to know more about their firm.

“No,” came the reply. “I’ve been getting your materials for a year. I have everything I need to know. Let’s get to work.”

There they are, 13 ideas for getting that extra edge in sales that make a difference.

Over time, it’s so easy to develop habits that kill sales without even knowing it.

While awareness of what we’re doing may not be everything, it’s a good way to make changes that will tip the scale in your favor.

> John Graham of GrahamComm is a marketing and sales consultant and business writer. He publishes a monthly eNewsletter, “No Nonsense Marketing & Sales.” Contact him at johnrg31@me.com, 617.774.9759 or johnrgraham.com.

Those in sales tend to be “doers, not thinkers.” And most are burdened with too much activity that’s less than productive. Thinking makes the difference. That’s what middle school students have discovered in the poorest area of Brooklyn. Their school is a chess powerhouse, “a legend in the chess world,” states the New York Times. “You do a lot of thinking about how you think, especially about how you make decisions,” says Elizabeth Spiegel, the full-time chess teacher. Making good decisions is the backbone of sales and that takes thinking as well as doing.

10. Offer options.

Scion gets it right with the way it sells its quirky cars. The colors are different but every

WISCONSIN INDEPENDENT AGENT

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WISCONSIN INDEPENDENT AGENT

27

FROM THE ARCHIVES

GOVERNMENT AFFAIRS

ELECTION DÉJÀ VU: WALKER-BARRETT REMATCH PRODUCES SAME RESULTS The build-up to Wisconsin’s historic gubernatorial recall election on June 5 was incredibly intense, but on Election Day, the contest turned out to be somewhat anti-climactic.

“Bratwurst musta done it!” Andy Burkhart, aka Sheboygan Andy, admires the artist’s rendition of his face at the 1970 IIAW state convention at the Pfister Hotel in Milwaukee. Andy went on to become the president of the IIAW in 1980. At the 1970 convention, the Association’s president was Robert Grady of Neckerman Insurance.

!

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GOVERNOR’S RACE Scott Walker - 53% (1,331,076) Tom Barrett - 46% (1,158,337) LT. GOV’S RACE Rebecca Kleefisch - 53% (1,296,916) Mahlon Mitchell - 47% (1,150,991)

The gubernatorial recall election garnered national attention. CNN set up shop on the Capitol Square for live reports.

Interesting election highlights: > Walker won 60 counties, while Barrett won 12 counties – compared to 13 in 2010.

governor in U.S. history to

> Exit polling found that a majority of voters were opposed to the recalls. Sixty percent of those surveyed said recalls should be used only for misconduct. > Men overwhelmingly voted for Walker, while Barrett won the women’s vote. > Exit polling found 38 percent of voters from union households supported Walker.

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In addition to the Walker-Barrett recall race, Lt. Gov. Rebecca Kleefisch also had a challenger on Election Day – Democrat Mahlon Mitchell. As one might expect, her numbers mirrored Walker’s, which easily carried her to victory.

Wisconsin’s gubernatorial recall election will be discussed and studied for years to come, but for now, here’s a quick look at the recall numbers:

Scott Walker is the first survive a recall election.

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Despite being the target of a highly energized recall effort for nearly 18 months, Scott Walker became the first governor in U.S. history to survive a recall election.

Walker made quick work of his Democratic opponent, Milwaukee Mayor Tom Barrett. In fact, several national media outlets called the race for Walker less than an hour after the polls closed.

More surprising than the speed in which the election was called, was the size of Walker’s victory. The governor captured 53 percent of the vote, compared to Barrett’s 46 percent. In the 2010 general election, Walker beat Barrett with 52% of the vote.

In the weeks and days leading up to the recall contest, Walker led Barrett in nearly every poll, but the race was still expected to be close. Even exit polling on Election Day indicated the race would go down to the wire.

Yet, Walker won by over 172,000 votes, up from his 2010 margin of nearly 125,000 votes.

The governor also collected roughly 205,000 more overall votes in the recall election than he did against Barrett 18 months ago.

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In large part, those numbers can be explained by historic voter turnout. Although turnout fell shy of the 65 percent predicted by state election officials, more voters participated in this election that any governor’s race in Wisconsin history. Over 2.5 million voters – or 57 percent of the state’s voting age population – cast a ballot in the race.

However, Barrett also benefited from high voter turnout, as he improved his 2010 performance by over 158,000 votes.

So the most likely explanation for Walker’s strong showing and relatively easy win was his campaign’s ability to drive supporters to polls in large numbers. Simply put, pro-Walker voters were more energized than pro-Barrett voters.

JULY 2012

> According to the Wisconsin Democracy Campaign, which tracks campaign spending, the Walker and Barrett campaigns, together with independent advocacy groups, spent over $80 million on the recall. By comparison, $37.4 million was spent in the 2010 gubernatorial election.

STATE SENATE RECALLS Lost in the media surge covering Walker's historic win, was the fact that Democrats successfully recalled a Republican state senator and won control of the Senate.

Heading into June 5 recall election, the Wisconsin Senate was equally split 16-16

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between Republicans and Democrats - with one vacancy.

Four Republican senate seats were targeted for recall. While the GOP won three out of the four races on Election Night, incumbent Republican Sen. Van Wanggaard was defeated by Democratic challenger John Lehman 51% to 49%. It was the lone bright spot for Democrats on Election Night.

Senate Democrats now hold a 17-16 majority, but will have little opportunity to exercise their newfound power, as the Legislature has adjourned for the remainder of the year.

While capturing control of the Senate was a nice consolation prize for Democrats, conventional political wisdom suggests the GOP is in a strong position to win it back in November's general elections.

Outside of > Tim Hoven is the the Wanggaardfounder of Hoven Lehman race, Consulting in Madison, Republicans routed Wisconsin. Tim also their Democratic served in the Legislature from 1994 to 2002. opponents in the Hoven Consulting is the senate recalls: CONTINUED ON NEXT PAGE

Government Affairs team for the IIA of Wisconsin.

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ELECTION DÉJÀ VU © 2011 SECURA Insurance

CONTINUED FROM PREVIOUS PAGE

13TH SEN. DISTRICT (DODGE COUNTY) Sen. Scott Fitzgerald (R) - 58% Lori Compas (D) - 41% 21ST SENATE DISTRICT (RACINE) Sen. Van Wanggaard (R) - 49% John Lehman (D) - 51% 23RD SEN. DISTRICT (CHIPPEWA FALLS) Sen. Terry Moulton (R) - 57% Kristen Moulton (D) - 43% 29TH SEN. DISTRICT (WAUSAU) Jerry Petrowski (R) - 61% Donna Seidel (D) - 39%

POST-RECALL WISCONSIN Following the recall, both Walker and Barrett said it was time for the state to reunite and urged lawmakers from both sides of the aisle to work together.

While bipartisan cooperation is possible, it will take time for the hyper-political environment in Wisconsin to subside. In fact, the upcoming November elections are sure to increase political tension between Democrats and Republicans.

Regardless of the political climate and the outcome of the fall elections, the IIAW Government Affairs Team will be prepared to advocate on behalf of members in the 2013-14 legislative session.

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Food for Thought

GREAT IDEA In the July 1, 1899, edition of the The New York Times, it was reported that the Wisconsin Association of Local Fire Insurance Agents organized in Milwaukee.

Just three years earlier, the Independent Insurance Agents & Brokers of America was founded as the National Local Association of Fire Insurance Agents.

DETROIT, FRENCH FOR ‘STRAITS’ – AS IN DIRE Detroit, whose 139 square miles contain 60 percent fewer residents than in 1950, will try to nudge them into a smaller living space by eliminating nearly half its streetlights.

As it is, 40 percent of the 88,000 streetlights are broken and the city, whose finances are to be overseen by an appointed board, can't afford to fix them.

Mayor Dave Bing's plan would create an authority to borrow $160 million to upgrade and reduce the number of streetlights to 46,000. Maintenance would be contracted out, saving the city $10 million a year.

Source: bloomberg.net

‘‘

I have only one yardstick by which I test every major problem - and that yardstick is: Is it good for America?

- Dwight D. Eisenhower

The following officers were elected: E.J. Tapping, president (Milwaukee); E.E. The first logo of the Wisconsin Association of Baker, first vice president (Portage); P.P Local Fire Insurance Agents.

McDermott, second vice president (Fond du Lac); W.H. Hardy, Jr., third vice president (Waukesha); James Jenkins, fourth vice president (Oshkosh); and F.C. Hazelton, secretary/treasurer (Janesville). At this time, about 100 members had enrolled.

One hundred thirteen years later, this association is known as the Independent Insurance Agents of Wisconsin, the largest independent insurance agents association in the state.

Sources: New York Times and iiaba.net

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