July 2014 Wisconsin Independent Agent

wisconsin

INDEPENDENT AGENT JULY 2014

RENEW YOUR MEMBERSHIP ONLINE >>WWW.IIAW.COM

The things people care about the most are the things they just

can’t afford to lose.

Like their identities.

That’s why West Bend’s Home and Highway® policy makes sense. Not only does it protect just about everything your customers own, it can also protect them from the devastating financial effects of identity theft.

And as an Official Supplier of The Silver Lining, it’s backed by your knowledge and experience.

West Bend. Insurance your customers buy when they can’t afford anything less.

wisconsin

INDEPENDENT AGENT JULY 2014 Eric Schwartz, Editor

Open Door Policy Now Is The Time For TrustedChoice.com. . . . . . . . . . . . . . . . . . 5 Commentary From Counsel Review Client Contracts With Caution. . . . . . . . . . . . . . . . . . . . 6

On The Cover…

You will be receiving new membership packets in the mail in the near future

News From ACT So Long, Passwords. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

that highlight the many resources

Government Affairs Making Wisconsin A Better Place To Do Business. . . . . . . . . . 11

Independent Insurance Agents of

Focus On Content This Just Needs To Stop. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

services that are valuable to you and

Virtual University Lawn Mowers & Commercial Property. . . . . . . . . . . . . . . . . . . . 19 Marketing Minute A Case For Producers Having Their Own Website. . . . . . . . . 20 Errors & Omissions Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

available to you as members of the Wisconsin. We work hard to provide your business but our biggest asset is You. You sit on Association committees, volunteer your time and talents, and generate ideas that keep pushing this Association forward. This can’t be said enough – Thank You. Online membership renewal is available now at iiaw.com.

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 2013-2014 Executive Committee

2013-2014 Committee Chairs

President........................................................ Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443

Agency Operations........................................ Kim Dandrea 1300 South Green Bay Rd. #100, Racine, WI 53406

President-elect............................................ John Wickhem P.O. Box 1500, Janesville, WI 53547-1500

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

Secretary-Treasurer.......................................... Steve Leitch P.O. Box 85, River Falls, WI 54022

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

Chairman of the Board...................................... Mike Froh P.O. Box 1320, Sheboygan, WI 53082-1320

Finance & Compensation............................... Steve Leitch P.O. Box 85, River Falls, WI 54022

State National Director................................. Linda Steiner 555 Main Street #320, Racine, WI 53403

Government Affairs........................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

2013-2014 Board of Directors

Industry Relations.............................................. Tom Sitter P.O. Box 2424, Oshkosh, WI 54903-2424

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Jason Bott 330 East Kilbourn Avenue, Milwaukee, WI 53202 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 Brian McClone 505 North Westfield Street, Oshkosh, WI 54902 Jeff Rasmussen 525 Junction Road, Madison, WI 53717 Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045

WISCONSIN INDEPENDENT AGENT

Membership Development.................................. Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610 Smaller Agencies..................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Technical.......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320 Young Agents............................................. Janelle Higgins 6200 Mineral Point Road, Madison, WI 53705-4504

> OUR ADVERTISERS AAA................................................................. 30 ACUITY Insurance............................................. 31 Agency For Sale.............................................. 29 Amerisafe........................................................18 Applied Underwriters.........................Back Cover Badger Mutual................................................. 29 Burns & Wilcox.................................................10 Capital Remediation........................................ 23 Erickson-Larsen.............................................. 20 Guard Insurance.............................................. 24 IIAW Continuing Education.............................. 25 Insurance Associates of America.................... 27 InVEST.............................................................. 13 JM Wilson........................................................ 28 Northern Underwriting Managers.................... 15 Pekin Insurance............................................... 28 Robertson Ryan............................................... 17 SECURA Insurance............................................ 16 SFM Insurance................................................... 7 Swiss Re E&O.................................................... 14 The IMT Group.................................................. 21 West Bend......................................................... 2 Western National Insurance.............................. 4 Wilson Mutual.................................................. 29 JULY 2014 | 3

4 | JULY 2014

WISCONSIN INDEPENDENT AGENT

OPEN DOOR POLICY

AN OPEN LETTER TO IIAW MEMBERS

NOW IS THE TIME FOR TRUSTEDCHOICE.COM For more than 200 years, Independent Insurance Agencies have succeeded largely due to their ability to adapt to changes in consumer behavior and technology. Today, independent agents and the carriers they represent are once again challenged by the rapidly evolving commoditization of insurance and the increasing number of buyers who prefer to shop online for their insurance.

This is certainly not news to agencies that rely heavily on personal lines revenue. They have suffered through a significant decline in market share during the digital era. The challenge is a broader one for the independent agency system and it must be overcome to effectively compete with direct writers and other online insurance providers that have made early gains on the Internet.

As the marketplace continues to evolve and these companies get more aggressive with taking their “personal lines” strategy to the

As the marketplace continues to evolve and these companies get more aggressive with taking their “personal lines” strategy to the small commercial market, we must act in both a proactive and defensive manner. The solution is TrustedChoice.com. small commercial market, we must act in both a proactive and defensive manner. The solution is TrustedChoice.com.

Let’s be clear about the facts. First, TrustedChoice.com is not targeting the shopby-price buyer; second, there’s a big difference between shopping and buying. When you want to buy a TV, what’s the first thing you do? Compare prices online. You want to know about the different models, the options, and yes, the price — the benchmark price.

We should have no problem with insurance consumers doing the same thing.

Comparative rating is about helping customers understand their insurance choices and the pricing that comes with those choices. These two benefits embody the value proposition independent agents bring to the table: advocacy, expertise and choice. Pricing information is just part of the equation (TrustedChoice.com does not offer quote to WISCONSIN INDEPENDENT AGENT

bind); the ultimate goal is to provide information and connect customers with agents for all of their insurance needs with the opportunity for the agent to upsell. It’s what we do best.

Many traditional agency carriers are already experimenting online and investing in new digital distribution channels. Many recent news stories announced that Walmart and Overstock.com, to name just two, are entering the online insurance business. TrustedChoice. com is your answer to this increasing threat.

Project CAP and the IIAW are excited to offer the TrustedChoice.com Advantage Subscription at a significantly discounted rate to the first 100 Wisconsin Big “I” members to register. The 24-month package provides your agency with an enhanced profile, visibility and unlimited exclusive leads through TrustedChoice.com for $420, an average cost of $17.50 per month or $.58 cents per day (far less than a cup of coffee).

Your first year is FREE (paid for by the IIAW) and your second year is significantly reduced. Signing up is easy, fast and will never be less expensive. Visit us today at www. projectcapmarketing.com/iiaw and complete the registration form. Space is limited - don’t wait!

Broad agent participation is essential to the success of TrustedChoice.com. Already there are more than 1,700 independent agencies and 35 insurance companies participating nationwide with more signing up each week.

But too often, agents want to know if their carriers are participating before they will subscribe and vice versa. This “chicken-egg” approach is not viable today as consumerbuying preferences are moving on. Both companies and agents can’t afford to be late adopters! The agency system needs to work

together to realize the enormous potential of TrustedChoice.com.

The momentum of this online insurance platform is unmistakable as over 152,000 (4,000 from Wisconsin) consumers visited TrustedChoice.com in May. The ongoing Freedom of Choice digital ad campaign continues to drive strong traffic so that record-setting pace will continue. In addition, the IIAW is investing more than $200,000 in traditional and digital advertising in 2014 to drive consumers to TrustedChoice.com. The Association and its Board of Directors are committed to this approach for the long-term and believe this comprehensive strategy will put money directly into the pocketbooks of our members.

Ultimately, the best reason for agencies to participate is to increase market share in personal lines, defend against the threat of erosion in the small commercial lines market, and create a better online presence by equipping themselves with the tools to successfully compete in the digital era.

The ongoing viability of the independent agency system depends on it, and I strongly encourage you to take advantage of this incredible offer. Sign up today at www. projectcapmarketing. com/iiaw.

> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin.

Contact him at matt@ iiaw.com.

JULY 2014 | 5

COMMENTARY FROM COUNSEL

REVIEW CLIENT CONTRACTS WITH CAUTION Your agency has likely been asked (more than once) to review client contracts for insurance requirements. This is no surprise — you are the client’s trusted insurance advisor, you are already familiar with the client’s insurance program and, frankly, you are also a less expensive option for the client than hiring an attorney.

Yet you are being asked for legal advice (set aside concerns over the unauthorized practice of law, at least for this article), and the most conservative response would be to

identifies the scope and limitations associated with the agency’s contract review. Before discussing the issue and what the IIAW is doing about it, allow me to preemptively

One way to limit your agency’s E&O claim exposure is to have your clients sign a disclaimer that clearly identifies the scope and limitations associated with the agency’s contract review.

decline to review client contracts. But that is not a realistic response in a crowded and competitive marketplace. As a result, your agency probably reviews the insurance provisions of contracts and advises your clients on whether their existing insurance program meets the contractual requirements, or if additional coverages are needed.

answer the question asked by clients in every industry: Will the disclaimer keep me from being sued? No. But it may keep you from losing if you are sued.

As a threshold matter, contract review can be complex.

Many contracts, particularly construction contracts, are extremely long and complicated.

Limiting agency review of contracts to what appear to be insurance Enter the disclaimer; never bulletproof, but a step in the right direction These provisions when it comes to educating your client and managing your risk. contractual may seem safe, review scenarios but numerous frequently dovetail with thorny issues other contractual provisions may also associated with certificates of insurance, affect the insurance provisions. Thus, it making the entire process a virtual E&O is prudent to obtain and read the entire minefield. One way to limit your agency’s contract if you are going to review it at all.

E&O claim exposure — as well as to make Next, many contracts include insurance your clients aware of the risk they are taking provisions written without an understanding by seeking professional advice outside the of how insurance actually works. Sweeping scope of pure insurance services — is to have language regarding the status of coverage as your clients sign a disclaimer that clearly “primary and noncontributory,” cancellation

6 | JULY 2014

notice provisions inconsistent with policy requirements, demands for certificates of insurance and waivers of subrogation are all potential problems if the contract is drafted in a vacuum.

Once your agency has committed to reviewing a contract for a client and providing advice on its insurance requirements, you have taken on some level of responsibility for the accuracy of your interpretation and the resulting insurance program’s compliance with the contract.

Hence, the risk of an E&O claim against your agency if the insurance program does not, ultimately, satisfy the client’s contractual obligations.

Enter the disclaimer; never bulletproof, but a step in the right direction when it comes to educating your client and managing your risk. The core component of the disclaimer must be a clear identification of the scope of the services being provided and, of course, what is not being provided. Your agency is reviewing insurance terms, but not providing legal advice, and the client should be informed of that by a written notice that you have them sign. Greater detail regarding the specific contract being reviewed is also a plus, although an annual disclaimer form for a client may also be appropriate. The IIAW has created a template disclaimer form for agency contract review. It is available through the member portal on the association website and can be revised to meet your agency’s specific needs.

Any questions > Josh Johanningmeier about the form are is the IIAW’s General welcome through Counsel. Call the Legal the Legal Services Services Hotline at (877) 236-1669.

Hotline as well.

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JULY 2014 | 7

NEWS FROM ACT

SO LONG, PASSWORDS:

NEW IDENTITY MANAGEMENT SOLUTION FOR INSURANCE INDUSTRY SignOn Once Aims to Boost Security, Ease of Doing Business “If you want a new tomorrow, then make new choices today.”

— Tim Fargo, blogger The independent agent channel of the insurance business indeed has a new choice: a streamlined, common system for identity management that allows business partners to stop spending so much time and money on passwords.

Unveiled in May 2014, a new standard called “SignOn Once” (www.signononce.

the SignOn Once approach can free up agencies to redirect precious staff time to the productive work of sales and service of insurance consumers.

Agents want this type of system: “Improved password management” was cited as a need by more than 40 percent of respondents to the 2013 Real Time/Download Campaign survey.

SignOn Once can end inefficient and insecure practices like: > Posting sticky notes on computers with passwords.

SignOn Once allows agency staff to use one sign on to securely access systems of multiple carrier business partners.

org) from industry coalition ID Federation allows agency staff to use one sign on to securely access systems of multiple carrier business partners.

Given the millions of transactions for quoting, submission and account management each year in the U.S. insurance industry, SignOn Once can shave minutes every day off of the administrative and technology time and resources spent managing passwords.

The new system uses token technology to authenticate each user’s identity. SignOn Once offers greater security protection than the longstanding process of using a different password for each agency user to enter each carrier system.

> Putting a list of passwords in plain sight on a cubicle wall or under a keyboard. > Sharing one carrier login and password for the entire agency.

> Spending weeks of (nonproductive) time removing a terminated employee from the system or adding a new one.

SignOn Once takes on those problems head on by consolidating (or “federating”) the user’s identity among multiple logins, with a single password.

The ID Federation is inviting insurance carriers to participate in SignOn Once by:

The SignOn Once Trust Framework spells out the working agreements among the carriers, vendors and agencies; limits liability; and outlines technical specifications.

The framework serves to “replace passwords with federated identities by and between parties with existing trusted relationships within the financial services and insurance industry.” In effect, the framework is every party’s way of agreeing to use one secure identity for a user in lieu of a plethora of individual passwords for multiple systems.

SignOn Once provides for each user to receive a unique identity token based on their distinct credentials. This token is certified for authenticity and is used to facilitate ongoing access to each participating and certified SignOn Once carrier site or solution provider. While the process is streamlined and seamless for the agency user, there would be multiple checkpoints and verifications behind the scenes as users move from site-to-site.

Typically, the SignOn Once standard can be implemented through the agency’s management system. Industry firms Vertafore and Applied Systems have been enthusiastic participants in developing the new approach.

Carriers stand to benefit because SignOn Once implementation can: > Eliminate password reset calls

1) Joining ID Federation via SignOnOnce. com.

> Increase agent ease-of-use satisfaction

2) Adopting the SignOn Once Trust Framework.

> Make a carrier more attractive to work with as a market

3) Implementing (and obtaining third-party certification for their implementation) of SignOn Once.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” ― — Warren Buffett

Once implemented by carriers and vendors,

8 | JULY 2014

WISCONSIN INDEPENDENT AGENT

NEWS FROM ACT Legal and Technical Aspects Both Important A “federated” approach means “we all need to agree we are going to be playing by the same set of rules,” explained Doug Johnston, vice president of Applied Systems/IVANS and an ID Federation board member. “Part of a federation is that you all agree within documents to work together. You all have roles and responsibilities. The legal side is as important as the technical side. The whole point of a federation is we have legal agreements that all agree to play by.”

> Teresa Addy is business co-chair and Jim Rogers is a board member and treasurer of ID Federation Inc., a 501(c)6 nonprofit organization that developed SignOn Once to promote information security and identity management for trusted transactions across the financial services and insurance industries.

Addy is a business technology analyst for EMC Insurance Companies and Rogers is assistant vice president, distribution technology strategy, of The Hartford. This article reflects the views of the author and should not be construed as an official statement by ACT.

Given the millions of transactions for quoting, submission and account management each year in the U.S. insurance industry, SignOn Once can shave minutes every day off of the administrative and technology time and resources spent managing passwords.

SignOn Once grew out of collaboration by insurance professionals within the Independent Insurance Agents & Brokers of America’s ACT (Agents Council for Technology), the Real Time/Download Campaign, ACORD, technology user groups and leaders with carriers and agents/ brokers.

“This is a game changer for the industry - agents really want this,” commented Nellie Massoni, senior product manager with agency management system provider Vertafore. “What is also very encouraging since the launch of SignOn Once is the interest and queries from carriers who want to help resolve this problem.”

These professionals aimed to create a safe and standard way to secure technology authentication for as many parties as possible in the insurance industry. It’s now here — and we invite our industry business partners, especially carriers, to consider it for mutual gain.

10 WAYS TO DISCONNECT FROM WORK In today’s hectic business world we are all connected at the hip to electronic devices: Smartphones, laptops, tablets, Bluetooth, e-mails, IMs, Tweets, and voice mails. We have become the equivalent of a human LoJack; no matter where we go, no matter where we try to hide, we can be found electronically.

I have been thinking seriously about how you can “unplug” from work while on summer vacation, to avoid that almost Pavlovian need to check your e-mail, voice mail and stay “caught up” while out of the office on vacation. Our client Sue Williamson of the 3D Leadership Group, an executive coaching firm in Wellesley, MA passed along to us tips that might help you “untether” while on vacation:

2. Leave your laptop at home.

1. Put someone else in charge while you are away and let everyone know that they are the go-to person.

6. Read a book. A real book, with real pages. Because if you read a book on your tablet you will be unconsciously drawn to checking your emails, Facebook, Twitter, etc.

WISCONSIN INDEPENDENT AGENT

3. Make sure the only tweets you hear are the ones in the tree outside your window.

4. Leave your cell phone in a desk drawer for six waking hours every day (lock it if necessary and give someone else the key).

5. Tell the “go-to” person at work to call you only in an emergency. Determine what could possibly require your immediate attention so they know in what cases you must be contacted, and enjoy it when no call is made.

7. Clean out your e-mail inbox before you go on vacations. Set up filters to leave in your inbox so you will be greeted only by critical e-mails when you return.

8. Don’t worry about Facebook withdrawal. Life will go on quite nicely for a week even if you don’t know what your neighbor cooked for dinner last night.

9. Tell your family what you are trying to do and ask them to gently remind you if you get off track, short of throwing your Smartphone off the Sagamore Bridge.

Commit to doing the same kind of vacation in another four months or so, as a reward for doing so well the first time.

But don’t send yourself a calendar alert on Outlook until you return to the office.

Source: Steve White

JULY 2014 | 9

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Just call Burns & Wilcox.

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WISCONSIN INDEPENDENT AGENT

GOVERNMENT AFFAIRS

MAKING WISCONSIN A BETTER PLACE TO DO BUSINESS

Various research and studies have shown that small businesses continue to bear a disproportionate share of the regulatory burden when compared with their larger counterparts. Independent insurance agency owners and operators know full well the extent of compliance costs to the bottom line.

Several years ago, to help alleviate some of the regulatory burdens in Wisconsin, Governor Scott Walker and the state Legislature instituted a few measures worth highlighting and reminding you about.

of private employers, assists state agencies in implementing rules that are realistic and necessary, and helps with creating a climate of encouraging private sector growth in our state.

Specifically, the Small Business Regulatory Review Board seeks to: a Reduce the regulatory burdens on small businesses by advocating for small business in the legislative and regulatory process. a Encourage a partnership between small businesses and state agencies during administrative rule promulgation. a Enforce state agency’s compliance with the Regulatory Flexibility Act.

In 2012, the Office of Business Development was created to work directly with Wisconsin business owners to help The purpose of the Small Business Regulatory Review Board is to cut through the bureaucratic red tape of give small business owners (like these in downtown Evansville) a state government and remove antiquated voice at the table when discussing state regulations. and unnecessary regulations. The office In 2011, Governor Walker issued an executive assists with connecting businesses and state order that reformed the Small Business agencies to help with reducing time and cost Regulatory Review Board. Prior to the compliance burdens on small businesses. The governor’s executive order, few rules ever went Office of Business Development also works to the Board for feedback and a majority of its closely with the Small Business Regulatory members were state agency staff. The reformed Review Board to identify laws and rules that Board now consists of seven small business need to be changed or eliminated because representatives that serve staggered 3-year of the negative impact on business and terms. This reorganization allows for direct industry. Last year, business owners brought small business input on the impact of state more than 200 issues to the Office of Business government regulations.

Development asking for assistance and

The Board helps examine regulations from the perspective of private employers,

project will be ongoing for the next several legislative sessions.

If you are familiar with a burdensome state regulation and would like to recommend a rule change, don’t hesitate to let your state Association in Madison know about it. We will follow up for you. You can also directly contact by email the Office of Business Development at DOAOBD@wisconsin.gov or Right the Rules at righttherules@legis.wi.gov. Also, if you are interested in seeking an appointment to the Small Business Regulatory Review Board to serve as an industry representative, please let us know and we can assist you with the appointment process.

As your state Association lobbyist in Madison, I strongly encourage you to take advantage of these tools to help make Wisconsin a better place for you to do business.

Statistics On The 2013-14 Regular Session of the Legislature Senate Bills > 699 bills have been introduced in the Senate > 179 have been enacted into law > 2 have been partially vetoed > 1 has been vetoed in its entirety > 504 have failed passage > 15 have failed concurrence

Assembly Bills > 928 bills have been introduced in the Assembly

assists state agencies in implementing rules that are realistic and necessary, and helps with creating a climate of encouraging private sector growth in our state.

The purpose of the Small Business Regulatory Review Board is to give small business owners and operators like you a voice at the table when discussing state regulations. In the past, many state governmental agencies didn’t do a good job of anticipating the heavy burden that certain rules and regulations can place on small businesses. The Board helps examine regulations from the perspective WISCONSIN INDEPENDENT AGENT

identified 50 regulatory reform ideas.

This past session, the Legislature also unveiled its “Right the Rules” initiative to conduct a thorough top to bottom review of all 1,768 chapters and 11,764 pages of the Wisconsin Administrative Code. Lawmakers reviewed more than 300 chapters and held 100 public meetings and hearings from 24 Assembly committees and 7 Senate committees. This

> 194 have been enacted into law > 2 have been partially vetoed > 682 have failed passage > 52 have failed concurrence

> Misha Lee is Owner/ Founder of Lee Government Relations, LLC and lobbyist for IIAW. Follow Lee Government Relations on Twitter @mishavlee.

JULY 2014 | 11

B Y K O W S K I H O N O R E D AT PA S T P R E S I D E N T S R E C E P T I O N The Past Presidents Reception is a convention tradition where the previous leaders of the IIA of Wisconsin assemble and are recognized for their contributions. This year at Biaggi’s Ristorante, another industry leader was recognized for his accomplishments. John Bykowski received a Citation by the Assembly for his great work in the industry throughout his career. John has been President, Chairman and CEO of SECURA for more than a decade and is retiring this July. He will remain as SECURA’s chairman. Rep. John Nygren presented the award. The plaque read in part: ”... John Bykowski has served the insurance industry

throughout the state of Wisconsin for over 40 years and has been an innovator and leader on issues affecting the property and casualty insurance sector.”

Thank you to SECURA for their support of the Association and their sponsorship of the Past Presidents Reception. Congratulations to John on his Assembly recognition and fantastic career. Thanks also goes out to all of our past presidents for their hard work and dedication to the Independent Insurance Agents of Wisconsin.

John Bykowski addresses the Past Presidents Reception after accepting a lifetime achievement plaque from the State of Wisconsin.

Rep. John Nygren (left) presented the Assembly citation to John Bykowski.

This table was having a good time. From left: Sue Hierl, Judy Rowland, Lynne Bush, William Bush (‘74-’75), David Rowland (‘75-’76) and Tom Hierl (‘72-’73).

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WISCONSIN INDEPENDENT AGENT

Connect with Talented Future Employees

InVEST in new employees.

Industry perpetuation is more than a buzz term, it’s a process—and InVEST gets it. InVEST knows insurance and understands the 100 million people in the U.S. that make-up the millennial generation.

With an age range of 31-10, millennials want a career that helps them give back to their community, is flexible, offers continuing education and recognizes them for their efforts. Agents, carriers and service providers all have career opportunities that meet these requirements and InVEST is the brand that reaches students and young professionals—leaving them with a lasting impression of an insurance career.

The Future is Now The need for you to replace skilled workers will happen sooner than you may think. Over the next 15 years, 70 million baby boomers will retire and there will only be 15 million skilled workers to replace them. However, the insurance industry is having a hard time attracting this bright, young talent to the industry.

In a recent study by Deloitte, young people perceive the insurance industry as “old in general” (63%) and not innovative (53%). InVEST is dispelling the misconception in classrooms across the nation—and we can do this because of your support.

InVEST Attracts Millennials to Insurance InVEST has found the right mix for growth. In the last year the number of InVEST programs grew by 47%. With your support, we can continue to reach more students, educate them on insurance and breakdown the stereotypes of the insurance industry. Interactive lessons and classroom activities change millennial’s perspective of the insurance industry and open students’ eyes to the lucrative career opportunities within the industry. This classroom instruction, paired with the assistance of volunteer insurance guest speakers, is proving to be the avenue to attract the millennial generation to insurance careers.

Student Scholarships It doesn’t stop there—in 2012, InVEST presented more than $60,000 in scholarships to students who want to pursue a career in insurance. These funds don’t only go toward university tuition; they can also be used to take state licensing courses.

To attract the best talent and secure the future of the insurance industry, support InVEST now.

WISCONSIN INDEPENDENT AGENT

www.investprogram.org

JULY 2014 | 13

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FOCUS ON CONTENT

THIS JUST NEEDS TO STOP Perhaps it doesn’t.

After all, the mistakes of so many are the good fortunes of a few. There it was, starring me in the face for the second time this year. For the fifth time in 17 months. For the ninth time in the last two and a half years.

It wasn’t just another bad website someone developed for a prospective client of ours, those we see almost every week now. It was another bad website that was only a few months old and the client, who happened to be a Wisconsin insurance agency, was upset, miffed, put out and betrayed. Money down the drain, time well wasted, an opportunity squandered.

There are so many reasons why website design and development goes haywire. And for websites in the independent insurance agency business, particularly for small- to medium-sized agencies, haywire is fairly prevalent. Certainly, people want things on the cheap, only to learn a short time later they need a do-over. Ouch. But more frequently it’s because the communications industry is filled with ambitious communicators. There are a whole lot of talkers, but not many listeners. A whole lot of chest thumping, but not much brain pumping. And most of all, a whole lot of, “we can do that” and not enough, “we just can’t do that.”

Redesigning an insurance agency’s website when they just had their website redesigned

is a painful and sad experience. For almost everyone. The client has been taken, you feel awful for them, while the “takee” lives another day. But if you’re seeing red now, chances are there were red flags and red herrings at the outset. Believe me, it’s okay to walk away and save some time and money in the process.

Here are a few questions to ask that separate the men from the boys in the world of website design and development. The first three are obvious, the others not so much. Sure, there are plenty of other questions to be asked, but this is a start: 1. How many websites have you designed?

Personally, nothing less than 100 would be a suitable answer to me.

2. How long have you been doing it? We’ve been doing it for nearly 12 years, granted that’s an incredibly long time in this business, but you’ll need be the judge.

3. Show me a handful of sites that you’ve designed in our industry or a related business.

This is a critical difference maker.

Those are the basics. If satisfied, move on to these: 1. At what point will we see the initial designs?

The correct answer is after we’re provided with the content – you always design websites based on content so be wise to web companies that design first.

2. Tell us everything you can about the person

Don’t get burned by bad website design

who will manage this project. There are so many moving parts and pieces to a successful website project, that you must have a Project Manager with deep experience; for instance, advertising agencies tend to assign an account executive to manage a web project and that can be a huge mistake. Make sure the person on the case is a website project manager.

3. What percentage of your business is website design and development? If it’s not more than 50% be careful.

4. Tell us how Google’s new algorithm has impacted the Internet? You should get an eyeball popping, jaw dropping response to this.

And that will do it. That will save you the agony and deliver on the ecstasy. Oh, and don’t be fooled by price – 85% of decision makers pass judgment about you based on your website and other online attributes.

Don’t get passed over, passed up or passed by because of a few dollars. You’ll > Tom Marks is a prolific producer of content make it up in no and one of Wisconsin’s time at all.

P.S. Here’s one bonus observation.

Listening speaks volumes.

leading website writers.

He founded TMA+Peritus in 1983 and was one of the first in Wisconsin to promote content marketing back around the turn of the century.

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JULY 2014 | 17

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VIRTUAL UNIVERSITY

VIRTUAL UNIVERSITY TWO-PACK: LAWN MOWERS & month let’s take a look at two different COMMERCIAL PROPERTY This questions that came in through the Ask An Expert feature.

Lawn Mower HO Claims…and Why ISO Edition Dates Are Important What if my child was mowing my yard, drove down the street to another lot to empty the bagger, lost control of the lawn mower, and crashed into my neighbor’s car? I see that there is $1,000 of coverage under Section II, Property Damage to Others. Is there possible coverage anywhere else in the policy?”

If we’re talking about an ISO HO policy, the Section II Additional Coverage you cite would not cover this because it has a motor vehicle exclusion whose exceptions do not apply in the described situation. For regular Section II liability coverage, based on the vehicle’s use off the “residence premises,” there would likely

be no coverage under the 2000 (not solely used on your residence premises) and 2011 (not solely used on your or another residence premises) editions of the ISO HO forms, but there quite possibly would be coverage under the 1991 forms.

If it’s not an ISO form, all bets are off and

coverage is contingent on the precise wording of that policy. This illustrates the immutable principle that you CANNOT make a coverage determination without knowing what policy is involved. In fact, since ISO and insurers revise their policy forms over time, the edition date is just as material.

Resolving Commercial Property - “Is It Building or Personal Property?” Questions If manufacturing machinery (such as shears or presses) is bolted or fixed to the floor or building, can it be considered part of the Building under the CP 00 10 10 12?

I insure a tool and die shop on policy forms CP 00 10 06 07 and CP 10 30 06 07. The form reads that the Building coverage includes permanently installed machinery and equipment, but ‘permanently installed’ is not defined. Can you help me with a definition?

Since the term is not defined in the policy, you would have to look to dictionary definitions or case law, the latter probably being very fact dependent. The solution where there is no definition is to remove the ambiguity if at all possible, as outlined below. The important thing is to reach a meeting of the minds between the insured and underwriter so that the limit of insurance that applies to this equipment is adequate (no coinsurance penalty) and

described/covered and rated properly.

If the insured were to move, would they unbolt this equipment and take it with them? If so, it’s probably business personal property and should be covered that way. Otherwise, it’s building property and can be covered under the (usually lower) building rate and by the same perils that apply to the building (which are sometimes superior to broad named perils personal property coverage).

If the intent is to cover this as part of the building, one way to remove all doubt is to use the ISO CP 14 15 - Additional Building Property endorsement and schedule the equipment. This endorsement, governed by CLM Division 5, Rule 30.C., can be used to cover machinery, fixtures and equipment that are affixed to the building but the permanency of the installation is debatable. Again, make sure all parties are on the same page.

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.

WISCONSIN INDEPENDENT AGENT

JULY 2014 | 19

MARKETING MINUTE

WHY EVERY PRODUCER NEEDS THEIR OWN WEBSITE Consumer buying habits are changing dramatically — both for individual consumers and business consumers.

Everyday, more people are starting their purchasing research online. And if you’re not found online you are invisible to a growing segment of the buying public.

agency to market the products and services they offer. Producers need to work on their own personal brand in their own personal marketing so they are visible to the prospects and clients they want to do business with.

This is why I believe that every producer in an insurance agency needs to have their own branded website.

People buy from people they know, like and trust.

I understand that most producers have relied on the agency to create the agency website and enhance the agency’s Internet presence.

And that’s worked fine for the last 10 years.

But consumers continue to change and if producers want to continue to be successful

The best way to help people know who you are, begin to like you, and learn to trust you with their financial resources and future, is to demonstrate your expertise online. And one of the primary ways to do that is by creating a personal website.

Everyday, more people are starting their purchasing research online. And if you’re not found online you are invisible to a growing segment of the buying public.

Your website may be the most personal way you reach your reader or sales prospect. It is also the platform best suited to educate prospects on why you are the authority on insurance protection and the person they should work with.

they need to begin working on mastering their own Internet presence.

Producers can no longer rely solely on the

20 | JULY 2014

In a recent presentation I was talking about the advantages of creating a virtual agency.

I gave a couple of examples of successful agencies that have no physical office. During the break, a participant approached me and asked if I would be willing to share contact

information for these agents. I did give him the contact information.

I found out later that the participant did try to contact one of the agents. The agent in my example sent me an email asking me about this particular person and where I had seen him. He could not find any information online about this particular agent. It caused him to question whether he should respond to the email or not.

This is one simple example of the negative consequences of not showing up online. I am absolutely convinced that prospects search for information about you online before they ever agree to allow you to take up their time by setting an appointment.

Creating your own personal branded website is easier than you think.

Begin now to take those steps to create the website and then add articles and information that show your expertise.

> Steve Anderson was recently named as one of the top 150 LinkedIn Top Influencers. He has appeared in virtually every insurance trade publication. He knows technology. Go to steveanderson.com.

WISCONSIN INDEPENDENT AGENT

FROM THE ARCHIVES

The photographer, a Norwegian immigrant named Andreas Larsen Dahl, took 1,200 photos primarily in Dane County during the 1870s. He captured the growth of Madison, Mazomanie and Middleton as well as rural farm life in the county. This image shows a Greek Revival frame house built in the 1840s. The small dark rectangular plaque above the door is a Madison Mutual Insurance Co. sign (later Madison Fire

Insurance Co.) that informed volunteer firefighters that their services would be fully compensated in the event of a fire. This company was founded in 1851. Its main competitor, as represented in Dahl’s pictures, was the Hekla Fire Insurance Company of Madison..

Source: Wisconsin Historical Society

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WISCONSIN INDEPENDENT AGENT

JULY 2014 | 21

ERRORS & OMISSIONS

MISREPRESENTATION

Claims arising from misrepresentation can result from a misunderstanding by the policyholder concerning coverage, reporting requirements, perception issues, or their misinterpretation about what is written in a proposal or letter or verbally communicated to them.

Common claim causes are: > “You told me something different than what actually happened”

agent when the prospect of financial loss threatens the future of their business or personal well-being.

Consider the following:

> Customer alleges that what they asked you to cover was not covered when the loss occurred > Customer surprised that their policy is auditable or has the potential for an additional premium from the audit or reporting form

a Don’t oversell your agency or services on your website, in your proposals or in your marketing materials. Avoid vague or all-encompassing promises. Do not lead the customer to expect a level of expertise that holds the agency to a higher standard that an agent normally would be held.

Do not lead the customer to expect a level of expertise that holds the agency to a higher standard that an agent normally would be held.

a Use standardized language in proposals and quotes. If you provide highlights of coverage and exclusions include a statement to clarify your intent such as something similar to the following: This proposal contains a brief outline of coverages to be included in the policy that may be issued in the future. This is only a summary, and the terms and conditions of any policy will take precedence over the proposal. You must read your policy. a Insist the customer read their policy if you do not review it with them.

> Customer alleges that they were not properly instructed on what is covered by the policy or endorsement > Customer alleges that the agent erroneously told them what is required in the event of certain occurrences such as claims, payroll reporting, audits, and other procedural issues.

a Use checklists and applications to bring coverage needs to a customer’s attention. a Use form letters to document all phases of the insurance process from instructions in handling to documentation of both positive and negative topics.

a Utilize carrier provided coverage summaries and explanations of coverage or procedures rather than developing your own if such are available. a Spend the time needed to explain complicated coverage forms or reporting procedures.

Therefore, what can an agency do to assist in the prevention of policyholder misunderstandings and allegations after the fact that do not fit the facts as the agency sees them?

procedures so as to ensure consistency in the handling of work items..

DOCUMENT, DOCUMENT, DOCUMENT!!!

If more is needed we can address this in the next round of revisions.

Can you as an agent PROVE what was said, done or proposed to a customer months or even years after the fact when a customer suffers a financial loss and alleges it was due to an agency error or omission or misrepresentation? Memories grow hazy over time combined with the temptation by a customer to make allegations against an

22 | JULY 2014

Implement a procedures manual that addresses at least all basic

a Use written proposals and quotes to clearly document and describe the transaction.

a Document all phone conversations immediately, keeping a phone log of all business calls received INCLUDING all offsite cell phone conversations.

WISCONSIN INDEPENDENT AGENT

ERRORS & OMISSIONS Can you as an agent PROVE what was said, done or proposed to a customer months or even years after the fact? It’s important to maintain accurate documentation.

a Retain fax transmission verifications with original documents AND maintain records of fax transmissions.

a Respond in writing to customer queries whenever possible to confirm what is said verbally.

a Audit files on a regular schedule to confirm that all staff are following proper procedures.

a Time and date stamp all incoming mail and have it reviewed by senior staff immediately.

a Do not represent yourself to be capable of giving legal, engineering, human resources, tax, accounting or other professional advice.

a Conduct regular training sessions with your staff.

a Train staff on phone contacts, what to say and how to say it including after hours voicemail. Use language similar to: “Please be aware that coverage cannot be bound or altered via this voicemail.”

a Save all business related emails and correspondence in the customer file.

a If a message is taken for another, ensure the caller does not assume the request or issue has been resolved.

a Implement a procedures manual that addresses at least all basic procedures so as to ensure consistency in the handling of work items. Update it at least annually with your staff.

Finally, BE CONSISTENT in the use of any or all of the above procedures. If you do it for one customer do it for all of them!

> Lee Hunt is a Senior Vice President with Swiss Re Corp. He has been with Swiss Re since 1994. He has written several articles on insurance agents E&O risk management and loss control including a loss control seminar on workers’ compensation insurance placement.

This article is intended only for educational or illustrative purposes and should not be construed to communicate legal or professional advice. You should consult legal or other professionals with respect to any specific questions you may have. The above tips cannot guarantee the prevention of errors and omissions claims against your agency, but they may minimize your risk against these types of claims and increase the defensibility of those claims that may be presented.

CONTINUED ON NEXT PAGE

WISCONSIN INDEPENDENT AGENT

JULY 2014 | 23

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WS E N E H T N I S R E B M ME Company Is Top Workplace West Bend Mutual Insurance Company led this year’s list of the Milwaukee Journal Sentinel Top Workplaces, which recognizes the best places to work in Southeast Wisconsin. West Bend was ranked number one in the large company category in 2014, up from second place in 2013 and third place in 2012.

The evaluation for the Top Workplaces program is based on feedback from an employee survey.

“At West Bend, we always strive to be a winning organization and we’ve made tremendous strides in accomplishing this,” said Kevin Steiner, West Bend president and CEO. “We went from the third-best company in 2012 to the second-best in 2013. Our number-one ranking this year is evidence of the great work our 1,100 associates are doing to be that winning organization. I’m very proud of every one of our associates and their commitment to excellence.”

A total of 150 companies were named to the Top Workplaces list in 2014.

Competitors in West Bend’s large company category include Shorewest Realtors at #2, Kwik Trip Inc. at #3, Children’s Hospital of Wisconsin at #11, and Allen Edmunds Shoe Corporation at #17.

Company Increases Surplus to $800 Million West Bend Mutual recently issued $70 million of surplus notes in a private transaction. After issuance, West Bend’s surplus stands at approximately $800 million, an all-time high and three times the level at which it stood just ten years ago. West Bend issued the surplus notes to increase writing capacity for its independent agency distribution force.

President and CEO Kevin Steiner stated, “We just came off two doubledigit growth years, and we’re currently rolling out a new technology platform which will allow even greater expansion in the ensuing years.

With long-term rates as low as they are, we felt we couldn’t pass up this opportunity to help fuel our agency partners’ growth and aggressively execute our expansion plans.”

With this added capacity, West Bend should pass the billion-dollar mark in premiums written in 2015.

For more information, visit thesilverlining.com.

Maffuccio Elected Partners President & CEO Partners Mutual announced that Richard Maffuccio has been elected president and CEO of Partners Mutual Insurance. Since February, Dick has been overseeing the day-to-day operations of the company. With this election, Dick moves to full-time, permanent leadership at Partners. The announcement is effective June 30, 2014.

Richard Maffuccio

Dick joined Penn National Insurance in 2006, as regional vice president of the Pittsburgh Office. He has gained deep and diverse experience during his career in the property-casualty insurance industry.

In addition to his experience with Penn National Insurance, Dick worked for Aetna, Travelers and Crum & Forster. He also worked for 11 years as an independent agent, an experience that will influence his leadership at Partners Mutual Insurance.

Dick graduated from University of Bridgeport, and he earned an MBA from the University of Connecticut. He is an active member of the Society of Chartered Casualty Property Underwriters, and is a past president of the Allegheny Chapter. He has taught risk management, as an adjunct, for Robert Morris University and LaRoche College.

Dick’s strong relationships within Penn National Insurance will help him build on the synergy with Partners Mutual Insurance.

Executive management looks to him to continue the enhancements and performance improvements in personal lines that Partners has achieved, and to lead the development of competitive, attractive commercial lines markets for Partners’ agents.

In discussing this news with fellow employees, Dick said: “I am excited by this opportunity to serve Partners agents and employees. I have been so impressed with the dedication of the Partners staff, the loyalty of the agency plant and the prospects for the future. I look forward to the opportunities that we have ahead of us for profitable growth.”

For more information about Partners Mutual, visit partnersmutual. com.

Baldwin Named Director of Marketing & Communication J.M. Wilson announced the promotion of Cathy Baldwin to Director of Marketing and Communication. In addition to her role as Marketing Team Manager, Cathy will work closely with all department managers to assist them in reaching their marketing goals.

She will also work directly with all associates in the company for purposes relating to branding, communications and the culture of the organization. Cathy received her Cathy Baldwin Masters of Science Management (MSM) from Cornerstone University and has been employed with J.M. Wilson for 24 years.

Fritz Promoted to Director of Transportation Underwriting J.M. Wilson announced the promotion of Vice President, Sandi Fritz,

26 | JULY 2014

WISCONSIN INDEPENDENT AGENT

WS E N E H T N I S R E B M ME

Sandi Fritz

to Director of Transportation Underwriting. In addition to her role as Vice President, Sandi is in charge of the professional development for all the Transportation Underwriters throughout the organization and serves as a direct liaison to Transportation Companies for the purposes of maintaining excellence in underwriting. Sandi has been with J.M. Wilson for 33 years and holds a Certified Insurance Counselor (CIC) and Transportation Risk Specialist (TRS) designations.

For more information about J.M. Wilson, visit jmwilson.com.

Vermeulen Joins Integrity as Personal Lines Product Manager Integrity Insurance announced that Tim Vermeulen has accepted the position of personal lines product manager. In his new role, Vermeulen is responsible for monitoring the overall performance of the personal lines insurance products, partnering with all of the departments at Integrity to identify initiatives to help maximize policyholder satisfaction and achieve company goals.

Tim Vermeulen

1,000-employee mark for the first time in the company’s nearly 90year history. In the past 12 months alone, ACUITY has hired over 100 new employees.

“Because of ACUITY’s continued expansion, we have been able to provide rewarding jobs for more and more people across our 22-state operating territory,” said Joan Ravanelli Miller, General Counsel/Vice President - Human Resources. “From high school or college graduates seeking entry-level opportunity to experienced professionals looking to take on new challenges, ACUITY is an employer of choice in the insurance industry.”

ACUITY has grown to become the 65th-largest property-casualty insurance company in the nation. In 2013, the insurer reported a record-setting gain of more than $140 million in written premium revenue, amounting to a growth of 14.4 percent over the prior year.

The company also passed the $1 billion revenue and $3 billion assets marks. ACUITY’s revenue growth is also fueling the company’s expansion. In December, ACUITY broke ground on a $130 million, 240,000-square-foot addition to its corporate headquarters.

“We are increasing our staff and expanding our headquarters not just to respond to our strong growth, but as an investment in our future,” said Ben Salzmann, ACUITY President and CEO. “We need to have all the resources in place to serve a growing customer base and to fulfill our mission of helping people rebuild shattered lives.”

Vermeulen brings over 20 years of insurance experience to his new role. Prior to joining the company, Vermeulen ACUITY continues to hire staff across all areas of its operations. The played key roles with national insurance carriers, implementing many company will be adding processors, underwriters, programmers, product initiatives and introducing new coverage features. Originally technical support staff, analysts, claims professionals, loss control from Fond du Lac, Vermeulen earned Bachelor of Business degree in representatives, field1:35 staff, andPage more.

AIAaTired PC BACK 11_9_11:AIA 02.10.10 PC BACK 11/16/11 PM 1 Finance at UW-Oshkosh.

For more information, visit acuity.com.

“We are excited to have Tim join our team. His background in pricing, product and technology will complement our current efforts and enhance the service we provide,” said Steve Klingemann, vice president of personal lines for Integrity Insurance.

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ACUITY’s Growth Propels Company’s Employment Past 1,000 ACUITY announced that as a result of strong business growth, its staff has expanded to surpass the WISCONSIN INDEPENDENT AGENT

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JULY 2014 | 27

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KNOWLEDGE COMES FROM EXPERIENCE “I get calls from agents just to ‘bounce’ things off me. I’m flattered they consider me a source of information and can rely on my recommendations. In turn, they trust me to write their business.”

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WISCONSIN INDEPENDENT AGENT

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JULY 2014 | 29

FOOD FOR THOUGHT

PATRIOTIC PYROTECHNIC PARTICULARS Fireworks are a mainstay of 4th of July celebrations. Did you know:

• 57% of Americans will go to a live fireworks show.

• There are an estimated 14,000 fireworks shows in the United States.

• In 2013, there were at least six military bases that did not have fireworks due to budget cuts.

• 99% of consumer fireworks are made in China.

Source: New York Times

MONOPOLY MONEY

John D. Rockefeller is one of the richest men in American history with an adjusted fortune estimated at $253 billion at the time of his death in 1937. Before his time, lamp oil was unpredictable.

But he figured out a way to standardize the quality, and Standard Oil was born. Rockefeller’s shrewd business sense led to the rise of one of the biggest companies in the world. By 1880, Standard controlled 90% of the oil produced in the United States. The government broke it up in 1911 amid allegations of price fixing and other underhanded business dealings, but not before Rockefeller became the country’s first billionaire. He spent the last part of his life giving away much of his fortune, including money to found the University of Chicago and the Rockefeller Foundation. The companies that sprung from Standard Oil’s breakup — including ExxonMobil, Chevron, ConocoPhillips, and a big chunk of what are now BP’s U.S. operations — remain among the world’s largest.

Source: CNN Money

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