November 2013 Wisconsin Independent Agent

wisconsin

INDEPENDENT AGENT NOVEMBER 2013

CYBER LIABILITY: PROTECT YOURSELF

Your customers deserve a

wisconsin

Silver Lining.

®

INDEPENDENT AGENT NOVEMBER 2013 Eric Schwartz, Editor

Open Door Policy Don’t Get Bit By A Costly Data Breach . . . . . . . . . . . . . . . . . . . 5 Government Affairs State Legislative And Political Briefs . . . . . . . . . . . . . . . . . . . . . 9 Commentary From Counsel Castle Doctrine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 News From ACT What Does Your Future Look Like? . . . . . . . . . . . . . . . . . . . . . 16 Marketing Minute Marketing To Generation Y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Errors & Omissions Navigating The Pitfalls Of Insuring Homeowners Associations . . . . . . . . . . . . . . . . . . . . . 27

On The Cover…

Protecting your agency’s private data stored on your computer network is an important task. Your clients and employees personal information could be at risk. It could also be costly to your bottom line. According to the Ponemon Institute, a research firm that specializes in data protection, each data breach costs about $250 per breach. For more information about cyber liability and how you can protect yourself, please go to page 6.

Novalie’s Rock Star Pictorial . . . . . . . . . . . . . . . . . . . . . . . . . 28 When something happens to your customer’s home, car, or business, it may not be a disaster. But no matter what it is, your customers always deserve fast and fair service from their insurance company.

West Bend provides a Silver Lining, no matter what the claim may be.

When a strong wind damaged the pens at Golden Meadow Hunt Club and the birds were lost, it was important to fix the damage and replace the birds in time for the fall season. So that’s just what we did.

Sometimes little things mean a lot. And every day, when something bad happens to someone, West Bend makes sure your customers experience the Silver Lining. Because the worst brings out our best.®

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

> OUR ADVERTISERS AAA ................................................................ 30 ACUITY Insurance ............................................ 31

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

Axley Brynelson ............................................... 7

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

2013-2014 Committee Chairs

Badger Mutual ................................................ 25

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

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

Burns & Wilcox ................................................. 8

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

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

Erickson-Larsen .............................................. 19

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

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

Guard Insurance .............................................. 13

2013-2014 Board of Directors

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

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

Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045 Industry Relations ............................................. Tom Sitter P.O. Box 2424, Oshkosh, WI 54903-2424 Membership Development ................................. Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610

IIAW Continuing Education ..........................11, 18 InVEST ...............................................Back Cover JM Wilson ........................................................ 15 Northern Underwriting Managers ................... 17 Pekin Insurance.............................................. 20

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

Robertson Ryan............................................... 15

Technical ......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320

Swiss Re E&O ...................................................10

Young Agents ............................................ Janelle Higgins 6200 Mineral Point Road, Madison, WI 53705-4504

The IMT Group ................................................ 20 West Bend ........................................................ 2

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

Western National Insurance ............................. 4

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

Wilson Mutual ................................................. 26

WISCONSIN INDEPENDENT AGENT

NOVEMBER 2013 | 3

OPEN DOOR POLICY

PROTECT YOURSELF FROM

CYBER ATTACKS

Breaches of electronic data are among the most common and costly security failures in companies of any size. According to IBM, the average cost of a single, successful cyber attack is $300,000.

Studies show that companies are attacked an average of 2 million times a week, and that many of those attacks result

staff understands the risks and threats of performing simple day-to-day duties. The training is approved for three continuing

Your insurance agency is a rich target for identity thieves, enabling a criminal to steal personal identification data for hundreds of customers at once. in a data breach. And with today’s data moving freely between agency, carrier and consumer networks, mobile devices, and the cloud, data breach statistics show this disturbing trend is rapidly accelerating.

Building a case for an investment begins with understanding the threat. Your insurance agency is a rich target for identity thieves, enabling a criminal to steal personal identification data for hundreds of customers at once. Are you in compliance with federal and state regulations on data security and privacy?

The IIAW, in partnership with Data Risk Consultants, have built a comprehensive program designed to provide your agency with the safeguards and protection you need for your agency from cyber threats.

We can help with both.

With friendly underwriters who listen, and a full complement of products to serve your small-to-mid-size commercial insurance needs (including enhanced BOP, surety, and packaged coverages), Western National is your one-stop shop for getting business done. The proof is in the partnership.

Train, protect and insure your agency today. Our program, much like our industry-leading E&O program, focuses on three parts and can be accomplished online, start to finish, at a time and location that best fits your schedule. The program includes: 1. Training and Policy Management.

Employee training is key to ensuring your WISCONSIN INDEPENDENT AGENT

education credits and upon completion you will receive a written information security program that can be customized to your agency.

2. Technology.

Most agencies have some level of firewall and anti-virus protection in place. As part of the program a new technology is now available to our members that can protect attacks from known hostile servers around the world by IP (Internet Protocol) address. The AutoShun® can protect an agency from communicating with over 3,000,000 known global hostile addresses with no intervention from any staff at an agency. The list is constantly updated and defends against both inbound and outbound communications with these known malicious sites.

3. Cyber Liability Coverage.

The third part of the program is the comprehensive

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

Contact him at matt@ iiaw.com.

NetGuard Plus insurance policy by NAS Insurance Services. Competitive pricing and broad coverage makes it one if not the best cyber liability insurance policy on the market today.

The IIAW cyber security program provides a valuable additional layer to the most powerful first line of defense against cyber threats – a company’s own IT system. For maximum protection, we’re combining the insurance coverage with additional loss control services (i.e., training modules) and the AutoShun®.

Companies like AIG are already selling this combination of risk transfer (insurance), technology-based protections, and a set of Web-based tools to help insureds learn about and manage the risk of data loss. We would encourage all of our members to explore this for their own agencies.

If you like the comprehensive product perhaps you could sell it to your clients much like AIG.

Autumn Retreat The first-ever Autumn Retreat in Minocqua was a huge success! A big thank you goes out to our fantastic attendees (more than 70 agency and company staff!) and our great company sponsors. We will be able to build on this success for next year’s event. Feel free to contact me with feedback or ideas for the 2014 Autumn Retreat.

IIAW Day on the Hill An active and vital government affairs program is crucial to our Association. Save the date!

The IIAW’s Day on the Hill is set February 11 and 12, 2014. Join us for a unique opportunity to meet your legislators, earn CE credits and lobby for your business. More details will be coming in the near future.

NOVEMBER 2013 | 5

CYBER LIABILITY: PROTECT YOURSELF Nothing should create a more urgent concern to us in the insurance industry than the thought that our private data could be breached either intentionally or unintentionally.

“It’s terrifying that the majority of U.S. small businesses believe their information is protected, yet so many do not have the required policies or protection in place to remain safe,” said Brian Burch, VP of Americas Marketing for SMB at Symantec, a Fortune 500 computer security company.

According to the Ponemon Institute, here are the types of information and breaches that occur (breaches can fall into more than one of these categories simultaneously): > 49% due to a lost or stolen computing device > 46% 3rd party business associate error or loss > 41% unintentional employee actions > 33% technical systems glitch > 30% criminal attack > 14% malicious insider > 9% intentional non-malicious employee actions

affected so they can take appropriate action.

Your agency will more than likely have to pay for one year of free credit reporting for every person in the database that is affected.

Ex-Post Response. Ex-Post response includes reporting to the authorities [i.e., Federal Trade Commission (FTC)] that you have taken the appropriate corrective steps.

Lost Business. Lost business is a foregone conclusion as some customers will seek another agency due to the loss of their personal information.

Legal Impact On Insurance Industry Data security enforcement is the #1 priority at the FTC. The FTC enforces data security practices through the FTC Safeguards Rule and Section 5 of the FTC Act (collectively the “FTC Data Security Rules”). The FTC Data Security Rules apply to “financial institutions.” This includes, but is not limited to: auto dealers, insurance brokers, check-cashing businesses, payday lenders, mortgage brokers, non-bank lenders, personal property or real estate appraisers, professional tax preparers, and courier services.

Breaches Can Burn You

With very few exceptions, under the FTC Data Security Rules, any person who handles a customer’s personal information must establish, implement and maintain a comprehensive The per capita cost information security of a data breach is program that is reasonably designed as much as $249 to protect the security, per record in the confidentiality, and financial sector, integrity of personal information collected which includes from or about insurance agencies. consumers.

Breaches can be extremely costly. The per capita cost of a data breach is as much as

$249 per record in the financial sector, which includes insurance agencies (Ponemon, 2010).

These costs cover several exposures, including: Detection and Escalation. Detection and Escalation refers to finding out that you have had the problem and getting the resources to help fix the problem.

Notification. Notification includes contacting all of the people in the database that were

6 | NOVEMBER 2013

The program must be documented in writing and cover a range of topics, including administrative security and policies. The agency must be able to demonstrate that employees were trained and tested on these materials. Further, it is incumbent upon the agency to demonstrate that they have taken all necessary steps to safeguard private data. Failure to comply with the FTC Data Security Rules can have significant consequences. The FTC can bring a suit against an agency that does not comply;

lawsuits typically end with a consent order.

The consent order allows them to inspect your agency for compliance for up to 20 years!

There is also a provision for a financial penalty of up to $11,000 per day for failure to comply.

Safeguard Your Agency Agencies do not generally possess the understanding of how Federal and other laws apply to our business and there is generally not a good way for agencies to easily comply with these laws and regulations.

In response to the growing threat faced by agencies, there is a three-part program designed for agencies to reduce the risk associated with conducting business online.

Three Components The three-part program includes: 1) Training and Policy Management.

Employee training is key not only to complying with the Safeguards Rule, but as stated above, employee mistakes cause well over half of the breaches suffered today.

As part of the program, agencies can now use InteProIQ from Data Risk Consultants, LLC to train their employees on all facets of data risk management as well as select and maintain a set of policies applicable to that size organization. The training consists of 12 modules covering a broad range of topics ensuring a baseline level of knowledge for all employees that will dramatically reduce the risk of a data breach. The entire training including outcome based testing can be accomplished in 3 hours.

protect an agency from communicating with over 3,000,000 known global hostile addresses with no intervention from any staff at an agency. The list is constantly updated and defends against both inbound and outbound communications with these known malicious sites. When combined with the traditional defenses your agency has in place to protect your data, this combination greatly reduces the risk of a criminal attack. In fact, your network will become less visible to the hostile servers when the AutoShun® is installed.

3) Cyber Liability Coverage. No matter how secure our networks are, or how well our employees take precautions with the data, there is always a chance that a determined criminal could still steal private data. The IIA of Wisconsin is pleased to round out the

program with the Netguard Plus program from NAS. The program’s highlights include: > Insurer: Lloyds A: XV (A.M. Best Co.) underwritten on behalf of Lloyds by NAS Insurance Services. > Limits of Coverage available up to $1,000,000 without separate submission.

Higher limits available by request. > Streamlined and simple Web-based application, quoting and binding of insurance. > Coverage is triggered by a breach versus wrongful act minimizing adjudication of coverage issues. > Competitive pricing – including substantial

discounts for purchase with the training and technology portions of the program. > Broad Coverage, including: Worldwide Coverage; Property Damage exclusion does not include electronic data; Commercial and Corporate confidential information is covered; Coverage for rogue employees; Network Asset Protection covers sums from lost data, business interruption, and income loss not only from computer crime, but also accidental damage. > It is the intent of the carrier to broaden this program beyond coverage for insurance agent coverage to allow insurance agents to offer this program to their customers.

“It’s terrifying that the majority of U.S. small businesses believe their information is protected, yet so many do not have the required policies or protection in place to remain safe.”

Online sign up All aspects of the program will be available when launched via our Website for convenient signup and use.

2) Technology. Thirty percent or more of the breaches are caused by criminal attacks that can originate from hostile computers around the world. Most agencies have some level of firewall and antivirus protection in place. As part of the program a new technology is now available to our members that can protect attacks from known > John Bristol is the hostile servers Managing Director of around the world Sales & Marketing of Data

by IP (Internet Risk Consultants. Find Protocol) address. them on the Web at www.

The AutoShun® can datariskconsultants.com.

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

NOVEMBER 2013 | 7

GOVERNMENT AFFAIRS

IIAW STATE LEGISLATIVE & POLITICAL BRIEFS

IIAW Formally Responds To Self Insured Risk Sharing Pool Proposal

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This issue defines the value and importance of belonging to a state trade organization. The issue surrounds a recent legislative initiative that would allow two or more school districts to self insure and form a risk sharing pool for property and casualty insurance coverage. At first blush it seems like a sensible idea, but upon further review (as they do in football), it’s one that could dramatically undermine the existing private insurance market and regulatory landscape in Wisconsin.

When we learned of the proposal, your IIAW government affairs team was quick to respond and organize. A copy of the proposed plan was forwarded to the Association’s Government Affairs Committee for comment. A subsequent teleconference call to discuss the matter and formulate a strategy followed. After careful review of the bill and gathering critical input from both large and smaller agencies and interested carriers, it became quickly apparent that the membership was unified in opposition to the bill.

You told us that the plan fails to address the simple fact that Wisconsin’s private insurance marketplace for school districts is already competitive in cost and availability when compared with other states. You told us that many insurance carriers and independent agents are already servicing this business today. You told us that the measure would undoubtedly shift business from the private market and into the self-insured world where history from other states has proven to be a risky undertaking. And most importantly, you told us that the proposal fails to provide any statutory financial safety net to policyholders in the event that the self-insured school districts were unable to meet its financial obligations. The private market protects the policyholders and guarantees obligations are fulfilled through excess insurance and our state guaranty fund.

We have since forwarded to the Legislature your concerns and opposition to the bill in a joint trade letter along with our industry partners of the Wisconsin Insurance Alliance. As a result of many of those concerns and lack of legislative support, the bill’s authors have agreed to pull back and cease moving forward this session.

Credit goes to those lawmakers who allowed us an opportunity to weigh in on this important subject. The issue highlights the effectiveness that can come from having a strong, unified industry voice in Madison and the need for your involvement in government affairs at all levels.

Insurance Committees Consider E-Delivery Insurance Bill An industry proposal modernizing how insurers WISCONSIN INDEPENDENT AGENT

and agents interact with their policyholders is steadily moving through the Legislature. The Senate and Assembly Insurance Committees held hearings and received public testimony from stakeholders on the legislation. Senate Bill 292/Assembly Bill 373 would clarify existing state statutes to allow consumers the option to receive their insurance notices and documents electronically if such an option is made available.

Special recognition goes out to Skip Hansen, IIAW Government Affairs Committee chair, who took time away from his busy schedule to travel to the state Capitol and testify in support of the bill on behalf of the IIAW. Thank you Skip for your continued leadership and support of your state trade association.

Attorney General J.B. Hollen Will Not Seek Third Term Wisconsin Republican Attorney General J.B. Van Hollen surprised the political establishment with his announcement that he would not seek a third term for the statewide post. Van Hollen was first elected in 2006 with just over 50% of the vote and subsequently in 2010 with 58% percent. His departure from the ticket in 2014 automatically creates a highly competitive, partisan race that will be overshadowed by the race for governor.

More Changes Coming To The Legislature More changes are coming at the state Capitol.

Longtime State Senator Bob Jauch of Poplar in northern Wisconsin announced that he would not seek re-election in 2014. Jauch is one of the longest serving members of the Senate, having served since 1983. That’s a lot of institutional knowledge being lost for the Democrats.

Republicans currently control the State Senate with a comfortable 18-15 margin. The election next year for the 25th Senate District is expected to be highly competitive and expensive.

Greendale Republican State Representative Jeff Stone recently resigned from the State Assembly to accept a position in the Walker Administration.

Stone was appointed to lead the Division of Water Compliance and Consumer Affairs at the state Public Service Commission. Stone served honorably in the Assembly for 15 years and he has been a strong advocate for our industry throughout his tenure.

Governor Walker Calls Special Session On Property Tax Relief More tax relief is on the way. The Legislature was called into a special session by Gov. Walker to take swift action on a $100 million property tax relief plan. When signed into law, the tax relief will be reflected on this December’s property tax bills. The plan increases state aid to locals

schools by $100 million over the next two years, but school district spending would remain unchanged under the state imposed revenue caps thereby forcing school officials to lower property taxes. The governor’s plan had been met with some skepticism by certain Democratic lawmakers, but the tax relief plan received strong bipartisan support in both houses at the end of the day.

Burke Announces Candidacy For Governor Let the race begin. Former Madison School Board member and Trek Bicycle Corporation executive, Mary Burke, has officially announced her candidacy seeking the Democratic nomination for governor. Burke also served a brief stint in 2005 as the state Commerce Secretary under then Gov. Jim Doyle. With her announcement, she becomes the instant Democratic primary favorite to challenge Republican Gov. Scott Walker.

Walker has the early edge in this race as the incumbent with high statewide name recognition and a strong organization. But the campaigns leading up to the November 2014 election are just starting to gear up and this top-of-the-ticket race is sure to be a hotly contested one.

Speed Limit Increase Advances A bill proposing to increase the maximum allowable speed limit on Wisconsin freeways and expressways to 70 mph is quickly making its way through the legislative process. Assembly Bill 389 (AB 389) was introduced in late September by State Representative Paul Tittl of Manitowoc. The bill passed the State Assembly and expects to be considered by the State Senate during its fall floor period.

State Ends Fiscal Year With A $760 Million Surplus The state’s nonpartisan Legislative Fiscal Bureau reported a nearly $760 million surplus to close out the state fiscal year. That’s $89 million higher than had been originally anticipated and positive news for Wisconsinites.

The surplus will allow state lawmakers to return some of those dollars back to taxpayers in the form of property tax relief at the end of this year and into 2014. In addition, $153.2 million of that will be deposited > Misha Lee is Owner/ Founder of Lee into the state’s rainy Government Relations, day fund honoring the LLC and lobbyist governor’s pledge “to for IIAW. Follow Lee be good stewards of the Government Relations taxpayers’ money.” on Twitter @mishavlee.

NOVEMBER 2013 | 9

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WHAT YOU SHOULD EXPECT

FROM YOUR CARRIER

Rated A+ (”Superior”) by A.M. Best Company

Carriers expect a lot out of their independent agency partners, often pulling them in a number of different directions all at once. But the agency-carrier relationship is a true partnership; neither agents nor carriers can exist without the other doing its part. blogs, white papers, case studies or social media postings, they should be easily shareable in a way that can position you, the independent agent, as a thought leader with your customers. Topical, powerful material that you can share with your customers on a year-round basis not only keeps you on their radar — it builds a sense of loyalty and appreciation. Finally, services such as premium audit and risk control add even more substance to the value package an insurance carrier can offer to your clients.

Since carriers expect a lot out of you, here are some things you should expect from your carrier:

They’re There When You Need Them…And Even When You Don’t When bad things happen to your policyholders, every insurance company will respond in some fashion — that’s the base expectation you surely have of any carrier. Of course, you should always expect the highest level of claim service and expertise in the business niche the company is serving.

But the best carriers make an effort to be present when things are going well, too.

These companies utilizing cutting-edge technology to provide services that are both informative and selling tools to teach your customer why the company you’re trying to sell is the carrier of choice.

Whether the materials are in the form of

The Details Matter To Them With so many carriers and so many messages, it’s difficult for customers to isolate what’s best for their business. Partner with carriers willing to go the extra mile to make it easier for you to identify the details in coverage that make the biggest difference to your customers.

Dig in and learn carrier differences — coverage varies from carrier to carrier in sometimes small but impactful ways. For instance, while two carriers may offer business interruption insurance, one may kick in immediately when business is interrupted while the other doesn’t begin until 72 hours later.

This can mean the difference between no loss and a loss of thousands of dollars for a business that simply can’t afford it. And nobody wants to have to tell someone that they don’t have coverage for an event that

As an independent agent, you play an integral role in connecting your customers with the right carriers, acting as the ambassador for these companies and their products. It’s incumbent upon carriers to be responsive to your needs and provide you with the resources you need to be that ambassador and build those relationships.

could significantly impact their livelihood.

They’re Responsive And Help You Build Great Relationships Above all else, relationships still rule in the commercial insurance world. As an independent agent, you play an integral role in connecting your customers with the right carriers, acting as the ambassador for these companies and their products. It’s incumbent upon carriers to be responsive to your needs and provide you with the resources you need to be that ambassador and build those relationships.

While price will always be a factor in any purchase, it should never be the overriding factor in any decision, particularly when it comes to insurance — and especially when it comes to commercial insurance.

Customers rely on the expertise of their independent agent to help them decipher complicated coverages and identify what will best protect their businesses and livelihoods.

By solidifying your relationship with carriers, you will be even more equipped to provide your customers with the guidance they need, which in turn will help you to build stronger long-term relationships and retain more business.

GUARD is now part of Berkshire Hathaway – giving us an immense base upon which to grow.

We feature the same products, services, and personalized attention that marked our first three decades of success as a specialist in writing small- to mid-sized Workers’ Compensation risks (under the name of GUARD Insurance Group) . . . but with one very important difference. We now have a new ultimate parent – Berkshire Hathaway – and BILLIONS of dollars of capital and invaluable expertise to support us.

New to Wisconsin!

We are expanding and looking to appoint quality independent agents to grow with us in the state.

You’re On The Same Wavelength Policyholders are the ultimate reason we’re all in business — without them there literally is no business for any of us — and no reason to exist. That’s why we’ve made it our mission at Society Insurance to protect our policyholder’s livelihoods, and we do our best to partner with agents who have the same core goal. Sharing the same beliefs with a carrier goes a long way in ensuring a solid and smooth relationship between the > Dina Schultz is the vice president of sales and carrier, yourself marketing at Society and your client.

Insurance.

12 | NOVEMBER 2013

A Strong Company Just Got Stronger!

WISCONSIN INDEPENDENT AGENT

(Not yet a Berkshire Hathaway GUARD Agent but anxious to get started as soon as possible? Visit www.guard.com/apply.)

FARROW EARNS FIRST ANNUAL MARGARET THATCHER AWARD

COMMENTARY FROM COUNSEL

WISCONSIN’S CASTLE DOCTRINE In 2011, in the shadow of higher profile new laws like Act 10 (curtailing public union bargaining rights), Concealed Carry, and Tort Reform, Wisconsin also modified its existing statutory regime on self-defense and the defense of others by passing what is generally known as the “Castle Doctrine.”

Wisconsin was the 30th state to enact a Castle Doctrine (details vary from state to state, and since Wisconsin’s, at least two more states have passed such laws). The nickname, obviously derived from the adage that your home is your castle, is something of a misnomer, because the law applies not only to the defense of yourself and others in your home, but also in your motor vehicle and place of business.

Nonetheless, like its counterparts in other states, it has drawn public attention and there have been some high profile incidents where Wisconsin’s Castle Doctrine has come into play. The Castle Doctrine should not be confused with so-called “Stand Your Ground” laws, like the law at the center of the Zimmerman case in Florida, which provide similar rights (and no duty to retreat) that move with you wherever you happen to (lawfully) be.

Wisconsin’s Castle Doctrine was passed via 2011 Act 94, and is codified in Sections 895.62 (civil) and 939.48(1m) (criminal) of the Wisconsin Statutes. It took effect nearly two years ago, on December 11, 2011, and it impacts both the criminal and civil justice systems, with a presumption of civil immunity and criminal privilege for people

The Castle Doctrine applies not only to the defense of yourself and others in your home, but also in your motor vehicle and place of business. who use deadly force against intruders who are unlawfully or forcibly entering their dwelling, motor vehicle or place of business. In addition, the law prohibits a court from considering whether there was an opportunity to flee or retreat — a codification of long-standing Wisconsin principle of self-defense law that no retreat is required in a defensive scenario.

This latter proscription, incorporated into the

14 | NOVEMBER 2013

presumptive immunity law, creates a powerful shield for people involved in self-defense situations. To put this presumption in context, prior to the Castle Doctrine amendment, the self-defense statute already afforded a privilege to use intentional force, likely to cause death or great bodily harm, where it was reasonable to believe such force was necessary to prevent imminent death or great bodily harm to yourself or others. A person using such force would be required to prove those elements. Now, those elements are presumed to be satisfied if the use of force is in a dwelling, motor vehicle or place of business, and none of the exceptions apply.

What constitutes a dwelling under the Castle Doctrine? The Legislature pulled the definition from another statute, and it is broad, including any premises (or portion thereof) used as a home or place of residence, and the lot where it is situated, extending as well to other structures on the premises, such as driveways, sidewalks, pools, terraces, patios, fences, porches, garages and basements. A place of business under the Castle Doctrine is defined simply as “ a business that the actor owns or operates.” This extends the doctrine’s protection not just to the owner, but also to other employees.

What kind of conduct must occur for the Castle Doctrine to apply? The intruder (“person against whom force was used” under the statute) must be in the process of unlawfully and forcibly entering — or already be inside after so doing — the dwelling, motor vehicle or place of business, and the defender

Margaret Farrow, a member of ACUITY’s Board of Directors, is the winner of the first annual Margaret Thatcher Award. Presented by RightWisconsin. com, the award is named after the late British Prime Minister and honors Farrow’s contributions, courage and leadership in Wisconsin.

Farrow is a former Lt. Governor of the state of Wisconsin, who served from 2001 through 2003.

In her service she led many boards and councils, including being chair of the Governor’s WorkBased Learning Board and governor’s designee on the Council on Workforce Investment.

Prior to Farrow’s appointment as Lt. Governor, she had a long history of involvement in public service that included being elected State Senator of Wisconsin’s 33rd District and State Representative of the 99th District, as well as being appointed to more than 20 statewide and

regional commissions, committees and boards.

She is chairman of the board of directors of WisconsinEye and was recently named by Gov. Scott Walker to sit on the UW Board of Regents.

“I offer my deepest congratulations to the award nominees and to my friend and predecessor, Margaret Farrow, a most deserving recipient of our first ever Margaret Thatcher Award,” said Lt. Governor Rebecca Kleefisch, who chaired the award selection committee. “She is a role model, a trailblazer, and pillar of dignified public service.”

Margaret Farrow

ENTHUSIASM IT’S CONTAGIOUS

“I love skiing, but I avoid dangers. As a Personal Lines Underwriter, I’m just as diligent in knowing ways to protect against risk. Your clients count on you—I appreciate the opportunity to help you maintain that trust.”

Nicole Bielat

(“actor” under the statute) must be present and must know or reasonably believe that an unlawful and forcible entry is occurring or has occurred.

Personal Lines Underwriter—and bunny hill graduate Connect with Nicole on LinkedIn!

The immunity is not without limits, and is forfeited if you provoke the attack, or are engaged in criminal activity, or using the dwelling, motor vehicle or place of business to further criminal activity at the time the deadly force is used. In addition, immunity is forfeited if force is used against public safety workers (EMTs, firefighters, peace offices and ambulance staff) where their identity and lawful purpose is known.

Hopefully, you never find yourself in a defensive situation, at home, on the road or at work, but if you do, Wisconsin’s Castle Doctrine has enhanced your rights where deadly force is legitimately needed.

Managing General Agency Since 1920 Property/Casualty t Professional Liability t Surety Commercial Transportation t Personal Lines t Premium Finance

800.666.5692

jmwilson.com

!

! "#!$#%&! '! '! '! '! '!

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

WISCONSIN INDEPENDENT AGENT

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ROBERTSON RYAN & ASSOCIATES, INC.

NEWS FROM ACT

WHAT DOES YOUR FUTURE LOOK LIKE?

When Martin Luther King, Jr. stood on the steps of the Lincoln Memorial fifty years ago and spoke to a great people about their greater future, he didn’t say, “I have a plan.”

Instead, he shared a dream that provided a vision of equality and hope for a struggling nation. His dream was not to get elected and not to become rich; it was a dream that was to and for everyone.

When I think of the “I Have A Dream” speech, I can’t help but think of another great speech that shared a dream that shaped our nation.

President Kennedy’s 1961 “Special Message to Congress on Urgent Needs” speech painted an insanely bold picture of our future in the language of a dare: “We’ll put a man on the moon and get him back safely — within the decade.”

The truly crazy thing, of course, is that we did.

What Martin Luther King, Jr. and John F. Kennedy employed was what I call Futureview, and right now it may be our most pressing national challenge.

Futureview is your ability to project yourself into the future and then look back at your present position from that future point of view. Futureview is not the same thing as a

shapes your future. Your Futureview determines the future you.

My concern is that for many Americans today, the Futureview is bleak.

In India and China, the prevailing Futureview is positive. Young and old alike are actually excited about their future. The atmosphere crackles with an optimistic, can-do energy. They see a bright tomorrow so they’re creating it.

And here in the U.S.? The American Futureview is mostly negative, filled with apprehension and fear. This is the first generation of parents since World War II who do not believe their children will have a better, richer life than they did.

Making the Impossible Possible A few years ago, I had the opportunity to converse with Neil Armstrong, the first man to set foot on the moon. He said that in the years following Kennedy’s articulation of that goal, NASA engineers would periodically hit a major roadblock and declare the goal impossible.

Each and every time, the response from those

We are in a time of massive, technology-driven, transformational change, packed with opportunity. Realize it or not, we have an unprecedented ability to create new products, new services, new markets, and new careers.

goal, plan, ambition, or aspiration. It is not something you hope for or try for. Futureview is the picture you hold, for better or for worse, of what you expect and believe about your future.

How you view the future shapes how you act in the present; how you act in the present

16 | NOVEMBER 2013

in charge was the same: “We’re going to the moon.” So the engineers would go back to their benches with a renewed determination to do the impossible. Every time they hit a snag, that unshakable Futureview held them to their task.

“They kept solving those unsolvable problems,” Armstrong added, “until one day,

there I was — walking the lunar surface.”

And here we are, fifty years later. Who is standing up to paint us an insanely bold picture of our future? Who is calling out that impossible dare, naming it so we can all go about the great work of achieving it?

So far, the answer is, “nobody.” Everyone seems too busy casting blame and keeping their eyes glued to the problems.

Here’s the good news: the potential for real innovation, growth, and new prosperity in the United States is vastly greater than the prevailing Futureview suggests. We are in a time of massive, technology-driven, transformational change, packed with opportunity. Realize it or not, we have an unprecedented ability to create new products, new services, new markets, and new careers — provided we exercise the Futureview it takes to see them.

If we don’t, they will remain invisible. And you can’t build what you can’t see.

The problems we face today are not economic or technical in nature. They are largely in our minds. We need to take a fresh, close look at what it is we’re looking at.

What is your Futureview? What is the Futureview of your organization? What is the Futureview of the leaders you report to?

From a national perspective, the sooner we start looking at the extraordinary opportunities before us and seeing a picture so insanely bold that we feel compelled to reach for it, the sooner we can get about the business of seizing > Daniel Burrus is the CEO of Burrus Research. Daniel is those opportunities considered one of the world’s and transforming leading futurists on global our society — for trends and innovation. Find generations to come. out more at www.burrus.com.

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

NOVEMBER 2013 | 17

THE INDEPENDENT INSURANCE AGENTS

!

W hen The

An Ethics Session

OF WISCONSIN PRESENTS… 4 CE Credits Approved!

Happens

LOCATION: Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, WI | Phone: 608.256.4429

DATE:

Dec. 10, 2013 | TIME: 9:00 a.m. - 1:00 p.m.

REGISTER: www.IIAW.com — SIGN UP NOW! SPACE IS LIMITED! In this fresh approach to Ethics CE, participants will learn about various ethical theories. These theories will then be applied to their ramifications in the insurance industry. Gabrielle O’Brien will lead the class through authentic case studies on how situations that we thought were impossibilities actually occurred and how the ethical insurance intermediary might deal with them.

Program highlights include: • Discussion of the ethical theories.

• Developing awareness of situational ethics and its potential for unethical behavior.

• Warning signs of unethical behavior and developing strategies to deal with it in our business and for the insurance industry in general.

REGISTRATION INFORMATION & INSTRUCTIONS

REGISTRATION FORM: WHEN THE IMPOSSIBLE HAPPENS!

The IIAW member registration fee is $75. Nonmember registration is $85. The fee includes session materials. This class is approved for four continuing education credits. If you have questions, please call 608.256.4429.

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COURSE SCHEDULE Coffee available at 8:30 a.m. The session runs 9:00 a.m. through 1:00 p.m.

CANCELLATIONS Cancellations received five or more business days in advance: full refund minus $5 processing fee. Cancellations received less than five business days before the session: no refunds will be given. However, replacements are welcome.

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THE AFFORDABLE CARE ACT: OBJECTIVE ADVICE NEEDED On March 23, 2010, many of us looked on as President Obama signed into law the largest piece of legislation likely to be passed in our lifetime – The Affordable Care Act. It was an exciting time. We were making history. And yet a little more than three years later most Americans, including employers, continue to struggle with understanding what is required of this law, how it will work, and if it will achieve its objectives.

Since its passage, the ACA has been fraught with uncertainly. Many states brought legal challenges claiming it was unconstitutional.

Others hoped that Mitt Romney would win the Presidential election and repeal the ACA. Despite its uncertain future, regulators continued to work tirelessly drafting much-

entire year because employers didn’t have the guidance needed to report all the information required to support the Exchanges. These delays and lack of regulation have made it difficult, if not impossible, for employers to prepare for the impact the ACA will have on their organizations. As a result, many employers have taken a wait-and-see approach.

What we do know is that the Affordable Care Act is changing everything! Employers need to rethink their employee benefit strategies in light of how the ACA will impact their organizations. Strategies that may have worked well in the past may very cause employers to be subject to substantial fines on top of the expenses associated with providing health insurance to their employers.

Employers that remain competitive will be those that create effective strategies to control cost and comply with the ACA.

Employers need to rethink their employee benefit strategies in light of how the ACA will impact their organizations. needed regulations needed to implement this law. Regulatory guidance provides the details or “instructional manual” for entities that are required to comply with this law While it is apparent that the ACA is here to stay, the implementation process has been less than smooth. Many implementation dates have been delayed because regulations have not yet been written. The Employer Shared Responsibility Provision was postponed by an

The Affordable Care Act is more than just an employer deciding whether or not to “Pay” or “Play.” The employer’s next renewal is much more complicated than increasing employer contributions or changing the deductible. Well thought out decisions need to be made at the executive level with an eye toward the longterm impact on the business.

At Mueller QAAS, we focus on Affordable Care Act compliance and strategies. We guide employers through the ever-changing compliance requirements. While an employer may work with an insurance broker, legal counsel, and tax advisor, our team provides an objective evaluation of how the ACA will impact an organization. We work with the employer to complement strategies it receives from these other experts. Because of the many changes taking place in this area and the substantial penalties associated with not complying, employers should consider the need for an objective Affordable Care Act resource such as Mueller QAAS.

> Renee Hemby Kuhs is an employee benefit attorney with Mueller QAAS, LLC. For more information, go to www. myqaaas.com. This article reflects the views of the author. The Independent Insurance Agents of Wisconsin does not endorse Mueller QAAS.

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WISCONSIN INDEPENDENT AGENT

NOVEMBER 2013 | 19

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EVERYTHING YOU NEED TO KNOW ABOUT GOOGLE’S NEW SEARCH ALGORITHM

totally

Well, not really everything, but enough to make it work in your favor. Let’s see, algorithms have been around since 1600 B.C. when the Babylonians were conjuring up factorization for square roots. Why they were interested in square roots might be fodder for another post, especially since the Babylonians were consistently being attacked and had to defend what proved to be indefensible borders. But that was then and this is now, and that means we’re going to attack the sacred Google algorithm and defend ourselves from the indefensible penalties of noncompliance.

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WEST DES MOINES, IOWA • 800.274.3531 • WWW.IMTINS.COM

But I can’t wage this battle alone; therefore, I’m enlisting the support of the wonderful Jessica Jones, our company’s search engine optimization specialist, who is also studying for her master’s degree in human computer relations. I know, I’m not sure what that

of the biggest changes to the algorithm in May of this year. These changes specifically target what Google considers “Web spam”: low-quality Web content created not for users, but in an attempt to gain high ranking in the Google search engine results.

Content has always been

Essentially, all you short-cutters out there are going to be outed. Gone are the days when you thought writing your company name five times in a 20-word sentence was actually going to improve your rank. Do it now and you’re going to be demoted. Jess went on to say:

important for the strength of any site’s search engine rankings, but

GOING

Google’s focus is now on high-quality content.

THE EXPECTED.®

AUTO HOME BUSINESS LIFE HEALTH Write for a company that continually searches for ways to become the easiest company for your agency to communicate and do business with.

• • • • • • • • • • • • • • • • •

Competitive Rates Competitive Commissions with Unique Commission Earning Opportunities Broad Portfolio of Products (Personal Lines, Commercial Lines, Life, Health, and Annuity) Profit Sharing (1-Year Agreement with Lock-In Option) Company Trips Every Year Co-op Advertising Program Social Media Campaign Easy-to-Use Raters for All Lines of Business Upload and Download Capabilities Qualified Field Representation Training Department with CEC Classes Life, Annuity, and Health Specialists Unique Coverage Enhancements Available like Pet Insurance, Water & Sewer Line Breakage, Equipment Breakdown, and many more!

Agent-Friendly Intranet Site 24-Hour Claim Call Center with 4-business-hour call-back Guarantee Catastrophe Team with Mobile Claim Office And, there’s much more!

means, and perhaps I don’t want to know.

Here’s what Jessica has told me:

Dear Tom, There are more than 200 factors in Google’s top-secret search algorithm that determine your Website’s page rank. A whole industry has been built around trying to gauge what those factors are and which carry the most weight. The algorithm has evolved many times over the years, and Google implemented some

Pekin Insurance • Beyond the expected. ® 2505 Court Street • Pekin, IL 61558 • 800-322-0160 • Extension 2394 • pekininsurance.com beyondtheexpected.com 20 | NOVEMBER 2013

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

Content has always been important for the strength of any site’s search engine rankings, but Google’s focus is now on high-quality content. Recent post-mortem studies show that in the aftermath of May’s updates, the sites with authentic, fresh content are already seeing improved search engine rankings.

Hello. As a content marketer, this is what I’ve been preaching for the last eight years. Any business, large or small, that has a Website must now produce relevant content at a high rate of frequency. For me, I think relevancy trumps frequency, but you should be aware of both. If you don’t have the resources to DIY, have someone do it for you. And remember, content is by no means a written word.

Content is video, infographics, SlideShare (which you better be doing anyway), podcasts and the beat goes on. In its narrative form, content is a press release, articles, a quiz, blogs,

polls, e-newsletters, whitepapers (don’t call them white papers anymore, be a little more creative and call them POVs or How We See It), and case studies.

Look at it this way: If you subscribed to The New York Times and the front page was the same each day, how long would you keep paying for it? The same holds true for your website, but now you don’t have a choice.

Google has made the choice for you, and it will reward your business for producing consistently unique and relevant content and penalize you if you’re not in the “content game.” And here’s where it really can turn sideways. If you’re using a canned newsletter, canned articles, maybe a template site that a company develops just for optometrists, associations, realtors or even dentists, you’re in for some major decay. Why? This from Google itself:

Duplicate content generally refers to substantive blocks of content within or across domains that either completely match other content or are appreciably similar.

Yes, they know that, too. It’s not just spamming, it’s also “canning” and that shortcut won’t cut it either.

So there’s really no great mystery to Google’s new algorithm. You either need to create content, and plenty of it, or go back to the days of yore and write some letters, stick some brochures in the mail, make a phone call, and repeat.

> Thomas Marks is president and managing partner of TMA+Peritus.

Prior to starting the agency in 1983, Tom was the VP of marketing and advertising for Bally Corporation in Chicago.

He was also president of Bally’s multi-million dollar in-house ad agency FFC Advertising.

NOVEMBER 2013 | 21

S W E N E H T N I S R E B MEM Meyer Insurance Receives Award From Trusted Choice Trusted Choice® has awarded a Dan Fulwider Award for Community Involvement to Meyer Insurance in Sauk City, Wisconsin. To honor Dan Fulwider who passed away after a valiant fight with cancer, the award recognizes Trusted Choice® member agents for going above and beyond in volunteering time and enthusiasm to causes close to their heart.

SECURA promotes Miller to VP – Commercial Underwriting SECURA Insurance promoted Steve Miller to vice president–commercial lines underwriting, effective Oct. 1, 2013.

As a runner up recipient of the Dan Fulwider Award, Meyer Insurance received a $250 contribution for the 6:8 charity.

In this role, Miller will drive for the continued profitable growth of the company’s largest business unit, provide best-in-class service to agency partners, develop outstanding commercial talent, and help select future products and services, all while providing the vision for the future of its Commercial Lines operations.

“Dan Fulwider was the government affairs coordinator and membership liaison for the Independent Insurance Agents of Iowa, and a huge supporter of Trusted Choice®,” said Tom Minkler, Big “I” chairman. “His dedication to his community and the causes he believed in inspired all who knew him.”

“Steve is widely recognized as one of the best when it comes to Commercial Lines profitability,” said Dave Gross, SECURA President & Chief Operations Officer. “The successes he’s helped us achieve with workers’ compensation and predictive modeling are great indications of where he’ll take our commercial business in the future.”

Find Meyer Insurance on the Web at www.meyeragency.com.

Miller joined SECURA in 1998 but his track record includes 26 successful years in the industry. Most recently as director–commercial lines underwriting for SECURA’s Wisconsin market, he achieved continued growth and the strongest profitability compared to the company’s other 11 states of operation.

SECURA Insurance NAMIC Honors Bykowski With Chairman’s Award On Sept. 23, the National Association of Mutual Insurance Companies (NAMIC) named John Bykowski, president and CEO of SECURA Insurance in Appleton, Wis., as the recipient of its 2013 Chairman’s Award during its 118th Annual Convention in Seattle.

Miller also has been a market manager in Illinois and Wisconsin, and he held other leadership roles in the Commercial Lines Department. Prior to SECURA, he worked at USF&G and Kemper Insurance in sales and underwriting capacities.

He earned a Bachelor of Business Administration in finance from UW-Whitewater and holds the Certified Insurance Counselor (CIC) designation. Additionally, he is a licensed agent for Property & Casualty Insurance.

Find SECURA on the Web at www.secura.net.

“The Chairman’s Award was established 50 years ago to recognize leadership, accomplishment, and outstanding service,” said Charles M. Chamness, president and CEO of NAMIC. “It would be difficult to find a more accurate description for the work John Bykowski has done, not only for NAMIC, but the property/casualty insurance industry. He’s set the example as an executive, as an active NAMIC member, and as an advocate for the property/casualty insurance industry in Wisconsin and on Capitol Hill.”

Bykowski is a former NAMIC chairman who, in addition to focusing on the issues affecting the property/casualty insurance industry, sought to build on the sense of collegiality and mutuality among NAMIC members. He has also served as the head of the Board of Trustees for NAMIC PAC and on several NAMIC committees.

Bykowski joined SECURA as president and CEO in 1997. A Marquette University graduate, he has worked in the property/casualty insurance industry for 40 years, and is also active in the community as a member of the Board of Directors for the Fox Cities Performing Arts Center and the Community Foundation.

22 | NOVEMBER 2013

Big “I” Presents Company Partners Best Practices Awards On Oct. 1, the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) presented insurance carriers CNA, EMC and Travelers with the prestigious Best Practices Award of Excellence at the recent education convocation held in conjunction with the Big “I” Leadership Conference in San Antonio, Texas.

The awards recognize those companies that have made imaginative, outstanding and unique contributions in advocating Best Practices philosophies that enhance the independent agency system. The Big “I” Best Practices program, which was launched in 1993, provides performance benchmarks and business strategies that serve as a guide to improving agency performance.

CNA has promoted Best Practices by using numerous avenues including: continuing to be actively involved in the Council for Best Practices, training their field forces on the value of Best Practices, and using Best Practices as a metric for choosing which agencies to work with and their WISCONSIN INDEPENDENT AGENT

S W E N E H T N I S R E B MEM doubt that we have built incredible momentum on our journey to become a consistently high-performing company.” overall strategy with their agency force. CNA also includes Best Practices information in their agent communications and in their workshops for their agents and field force.

Visit Grange on the Web at www.grangeinsurance.com. Grange Insurance includes Integrity Insurance based in Appleton, WI.

EMC Insurance Companies (EMC) is recognized for promoting Best Practices by nominating many of their agents for the study, using the Best Practices materials at their meeting and conferences, using the materials in their agency/company joint planning, using the Best Practices materials to aid in agency retention and perpetuation, promoting the Best Practices materials to their field and marketing departments as a tool to better work with their agents, and providing their agents with copies of the Best Practices materials.

ACUITY Insurance

Since the Best Practices Awards of Excellence were launched in 2001, Travelers has been recognized each year for their support of the program. Travelers continues to be committed to making a difference by communicating the value of the resources and working with agents to help them grow their agencies.

Find the IIABA on the Web at www.iiaba.net.

Grange Insurance Announces Promotions for Executives On. Sept. 23, Grange Insurance announced the promotion of two of its senior leaders, effective immediately. John Ammendola, president of personal lines for Grange Insurance, assumes responsibility for Grange’s Commercial Lines business under the new title of chief property & casualty officer. In addition, Peter McMurtrie, chief sales & marketing officer for Grange Insurance, adds profit and loss responsibilities for its affiliate, Integrity Mutual, to his duties under the new title of chief sales, marketing and affiliate officer.

“I am excited for John’s and Peter’s expanded roles and the opportunity these changes create for Grange and Integrity Mutual,” said Tom Welch, Grange president and CEO. “This new structure follows strong financial results and positions both organizations and the independent agents who represent us for continued success.”

John Ammendola joined Grange in 2010 as the president of Personal Lines and has guided the organization to profitable growth. “Bringing Grange Personal and Commercial Lines together under one leader will enable us to execute our property and casualty strategies seamlessly and speak with one voice to our independent agents and policyholders,” said Welch.

McMurtrie joined Grange in 2006 as chief claims officer. He will oversee Integrity Mutual while continuing his work in sales and marketing for Grange Insurance. He will also be joining Integrity’s Board of Directors.

“In his seven years at Grange, Peter consistently raised the performance of the organizations he led,” said Welch. “There is no WISCONSIN INDEPENDENT AGENT

ACUITY Named the Best Workplace in America ACUITY is named the best workplace in America among mid-sized employers by Great Place to Work®, as published in Fortune magazine. This marks ACUITY’s fourth consecutive year as the top-ranked employer and the fifth time the company has claimed the #1 spot.

ACUITY has been on the list every year since its inception and has been in the top five for 10 consecutive years. No other company in the country, of any size, can make these claims.

“Being named the best mid-sized employer is important to everyone who counts on ACUITY,” said Ben Salzmann, ACUITY President and CEO. “To our nearly 1,000 employees, it means ACUITY continues to provide a positive, rewarding workplace. Because we take care of our people, they take care of our customers and agents, who are being served by staff who enjoy working here and take pride in what they do.”

In selecting a best company, Great Place to Work® evaluates the relationships between employees and management, between employees and their work, and between employees and other coworkers. Great workplaces have lower turnover, higher levels of customer satisfaction and loyalty, higher productivity and profitability, more qualified staff, and better financial performance than other companies.

“It’s the big picture that matters,” said Lynn Coady, vice president – human resources. “We have purpose in our jobs, and we work with great people. We have a tremendous sense of community, and everybody believes in the vision we have for this company. ACUITY isn’t just about being a great workplace, it’s about a day in and day out commitment to excellence in everything we do.”

ACUITY Named a Top Technology Innovator For the tenth consecutive year, ACUITY is ranked in the InformationWeek 500, a list of the top technology innovators in the U.S. The 2013 list focused on innovators in digital business, recognizing that mobile computing, social networking, and other customer-focused technologies are revolutionizing companies and industries.

“Every enterprise is now a digital business — or needs to become one fast,” said Rob Preston, InformationWeek VP and Editor in Chief. “The organizations in our ranking are leading the way.”

InformationWeek recognized ACUITY for its innovative ACUITY FLEX (FiLe EXchange) solution. FLEX allows a mobile ACUITY employee to create digital content of a loss or risk, tag it with a policy or claim number, and automatically upload it to the insurer’s content management system.

CONTINUED ON PAGE 25

NOVEMBER 2013 | 23

MARKETING MINUTE

MEMBERS IN THE NEWS

MARKETING TO GENERATION Y

Twenty five percent of Americans — or over 70 million young people — make up today’s “Generation Y”…the children of that population segment known as the “Baby Boomers.”

Members of this group, born roughly between 1980 and the year 2000, are also known as “Echo Boomers” or “Millenials.”

And with more spending power than any generation previously, these teens and young adults shell out more than $150 billion every year in consumer purchases — a staggering amount.

!"Culturally diverse - minorities represent one-third of this group; many are openly gay; one in four teens comes from a single-parent household.

!"Peer-centered - seeking their peers’ opinions and recommendations.

!"Technologically sophisticated - 9 out of 10 have a home computer; more than half of teens 12 to 17 own a cell phone.

Millenials are very peerfocused, and highly value the opinions of others their own age. However, their values tend toward the traditional, and parental approval is an important step in their quest for significance.

If you want to grab your share of this upand-coming market — which presents an unbelievable average of $100 per week in disposable income — read on!

What Sets Them Apart To market your products and services effectively to this age group, you must first understand its life perspective.

More than any generation preceding it, Generation Y views honesty, integrity and generosity as the foundations for good relationships, whether business or personal.

These intelligent, giving kids expect the very best…as well as giving it. Millenials are very peer-focused, and highly value the opinions of others their own age. However, their values tend toward the traditional, and parental approval is an important step in their quest for significance.

Many other characteristics also set these youngsters apart. They are:

CONTINUED FROM PAGE 23

> Meet them where they are — literally. Go where they spend time, whether online or at your local mall. Advertise. Set up kiosks.

Anything to grab their attention. > Market to their uniqueness. Become familiar with their purchasing process and reliance on peer recommendations; then use them to convince these consumers to buy.

Some tips to help you reel in these big spenders include:

!"Perceptive and easily disillusioned dishonesty sends them running and causes distrust that’s not easily forgotten.

How to Reach Them Reaching Generation Y — and its pocketbook — isn’t as difficult as you might think.

To market your products to this trendy generation, follow these four major plans of action: > Appeal to both young people and their parents. Offer products that meet their needs practically — at a price they can afford. > Use giveaways and promotions. Young people get excited about the possibility of winning free tickets to sporting events or concerts.

!Speaking to them as intelligent adults. !Acknowledging their individual differences.

!Conducting business transactions with honesty and integrity.

!Delivering outstanding service.

Keep in mind that, since Generation Y kids look to their parents for approval and their friends for advice, your marketing efforts must reach both parties in order to be truly successful.

Taking Your Piece of the Pie If you want to take your piece of Generation Y’s insurance pie, get to know its life perspective; set a plan to reach them as individuals, and treat them with honor and respect.

They’ll reward you with referrals — the most valuable payment of all. > This information was provided by InsureMe.

!"Philanthropic - giving their time, service and money freely.

“We rely on our mobile staff to gather information, such as pictures and multimedia, during loss control surveys, claims investigations, and other processes,” said Neal Ruffalo, vice President - enterprise technology. “FLEX allows us to reduce the time it takes to gather and transmit information in those processes from hours to minutes, which puts information in the hands of decision-makers faster and enhances our service to policyholders and agents.”

ACUITY’s Growth Creates 75 Job Openings ACUITY announced that strong, sustained business growth has created employment opportunities for 75 new team members at its corporate headquarters and throughout its 22-state operating region.

ACUITY has achieved double-digit revenue growth over the past two years and sustained growth for over a decade. In 2012, the insurer reported a $143 million gain in written premium revenue, which is a 17.1 percent increase over the previous year. ACUITY’s growth is creating employment opportunity as the company responds to current needs and prepares for continued expansion.

“We are looking to fill 75 professional positions in the coming months, which is one of the largest groups we have recruited,” said Lynn Coady, ACUITY Vice President - Human Resources. ACUITY’s needs include processors and underwriters, programmers and technical support staff, claims professionals, and more.

Hanover Names Leffard President Of Hanover Professional Portfolio On Oct. 7, The Hanover Insurance Group, Inc. named Greg Leffard president of Hanover Professional Portfolio. He is responsible for the company’s E&O businesses. Hanover Professional provides industry leading professional liability and errors and omissions solutions for small and mid-sized firms, with customized offerings for lawyers, architects and engineers, accountants, and a broad range of other professional, technical, and business service industries.

“We are very pleased to welcome Greg to The Hanover,” said Andrew Robinson, president of specialty insurance at The Hanover. “Greg is a talented and committed leader who has earned an outstanding reputation for building and leading professional liability businesses over the past 25 years. We look forward to working with him as we further strengthen our competitive position and enhance the value we deliver to our partner agents and brokers.”

Leffard comes to The Hanover from The Hartford, where he served in a range of leadership roles over the past nine years. Most recently, he was vice president in the company’s financial products division with responsibility for professional liability. Previously, he held a number of underwriting, claims, and business management positions at Travelers and was also in private practice as an insurance defense attorney.

Find The Hanover on the Web at www.hanover.com.

ACUITY is seeking experienced professionals from within the insurance industry, as well as other sectors. The company has also stepped up its college recruiting to bring new talent into the industry.

“We are seeking — and finding — the best of the best at college campuses throughout Wisconsin and neighboring states,” said Coady. “We also have an unprecedented number of managerial opportunities within ACUITY as a result of our continued growth.”

ACUITY Open for Business in Wyoming and Montana ACUITY announced that it is now open for business in Wyoming and Montana and has begun appointing agents in those states. This is welcome news for independent agents looking for a competitive, viable, and stable market in both personal and commercial lines.

“Agents need the resources of carriers that have the proven strength to meet their commitments,” said ACUITY President and CEO Ben Salzmann. “ACUITY brings to Wyoming and Montana a nearly 90-year history of doing business with independent agents and a commitment to protecting and enhancing the well-being of the individuals, families, and businesses who are their customers.”

“We have the financial strength, national reputation, and technological leadership that have helped make us the carrier of choice for independent agents,” Salzmann said. “We have been there through good market times and bad in our current states, and now we will be there for our new Montana and Wyoming agents and customers as well.”

!"Socially conscious - believe in giving and helping others.

24 | NOVEMBER 2013

Find ACUITY on the Web at www.acuity.com.

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NOVEMBER 2013 | 25

â&#x20AC;&#x2DC;COHESIVE MESSAGEâ&#x20AC;&#x2122; LED TO IIAW-WEBA MERGER

ERRORS & OMISSIONS

WRAPPING UP WRAP-UP INSURANCE

The genesis of a partnership begins with common ground. â&#x20AC;&#x153;During 2013, the Wisconsin Employee Benefit Advisors (WEBA) committed to conducting joint meetings and working on legislative initiatives with the Big â&#x20AC;&#x2DC;Iâ&#x20AC;&#x2122;,â&#x20AC;? said Mike Farrell, president of WEBA since its founding in December 2010. â&#x20AC;&#x153;We discovered there was a cohesive message between our organizations on almost every issue.â&#x20AC;?

â&#x20AC;&#x153;There is no question about the importance of our future industry advocacy efforts. Clearly, we all expect a busy finish to 2013 as open enrollment in the health care exchange began October 1.â&#x20AC;?

The alliance was realized on Oct. 1, 2013, when WEBA merged with the Independent Insurance Agents of Wisconsin (IIAW). The IIAW welcomed WEBAâ&#x20AC;&#x2122;s 140 broker members from around the state, a group that sought to advance and protect the role of the insurance agent/broker.

Farrell said that many people predict that the federal Website will never be functional.

Nationally, many users experienced technical glitches and crashes when the Website went live. If the problems persist, agents and brokers will have a decision to make.

â&#x20AC;&#x153;Joining forces made sense,â&#x20AC;? said Farrell, â&#x20AC;&#x153;Together we have a stronger and more consistent voice.â&#x20AC;?

As part of the merger, WEBAâ&#x20AC;&#x2122;s board members joined the Employee Benefits Committee to bolster an already strong committee. â&#x20AC;&#x153;Going forward, we are excited about joining the Big â&#x20AC;&#x153;Iâ&#x20AC;? and this committee,â&#x20AC;? said Mike.

Wrap-up policies seem to be gaining in popularity.

Even if you never place such a policy, you may have to deal with customers who are involved in construction projects that are covered by them.

Therefore, every insurance agent may want to become familiar with the basics of wrap-up coverage.

Coverage through the exchange begins January 1, 2014.

â&#x20AC;&#x153;Agents and brokers will need to consider their level of involvement in placing individuals in exchange coverage,â&#x20AC;? he said.

Gov. Scott Walker appointed Mike to the Wisconsin Group Insurance Board (GIB) in March 2012. The GIB sets policy and oversees administration of the group health, life insurance, and Income Continuation Insurance plans for state employees and retirees and the group health and life insurance plans for local employers who choose to offer them. He is also the village president of Bristol, Wisconsin, a position heâ&#x20AC;&#x2122;s held since 2010.

construction managers, design builders, trade groups and associations.

liability coverage meant to protect the owner, general contractor and subcontractors of specific construction projects â&#x20AC;&#x201D; generally ones greater than $10 million. General liability is the most common coverage included in a wrap-up policy. These policies, however, often include coverage for excess or umbrella liability, workers compensation and employers liability, and can be tailored to include other coverage types, such as builders risk, professional liability, environmental liability, pollution liability and railroad protective liability.

To understand the advantages of wrap-up insurance, consider the use of traditional insurance on a large construction project. First, the owner of the project and the general contractor enter into a contract where the general contractor agrees to defend and indemnify the owner for any loss arising out of the construction project.

The owner will also require the general contractor to obtain commercial general liability, workers compensation and employers liability coverage, and to include the owner as an additional named insured on each of these policies. The general contractor then works with various subcontractors, also requiring each of them to obtain these coverages and to include both the general contractor and the owner as additional named insureds on each policy. Between contracts and insurance policies, there are many opportunities for an error to occur in the procurement of coverage on a large construction project.

Wrap-up policies can streamline claimhandling procedures. When the owner, design professional, general contractor and each subcontractor have separate insurance policies, the parties must first allocate responsibility between themselves before the claim can be negotiated. While wrap-up policies can offer advantages over traditional insurance, they present unique opportunities for insurance agents to commit errors. Some construction projects use a hybrid wrap-up/ traditional coverage design. For example, on a project requiring $100 million in commercial liability coverage, there may be wrap-up coverage purchased to cover the first $50 million in exposure. The remaining $50 million would be supplied by the owner, general contractor and three subcontractors.

By contract, each of these parties agrees to carry $10 million in general liability coverage written over the wrap-up coverage.

As the agent of one of the parties placing the $10 million in coverage, verify there is no exclusion for wrap-up coverage, which is a common ISO exclusion. Be aware that some carriers may draft their own manuscript exclusion or include wrap-up in a broad, catch-all exclusion.

Wrap-up policies are most often used with government infrastructure projects, transportation construction and residential construction. At least three states require the use of wrap-up policies exclusively for condominium construction. Wrap-up policies are usually identified by the sponsor of the program. The two most common sponsors are the owner and the general contractor of the project. Thus, the two most common forms of wrap-up coverage are the owner-controlled insurance program and the contractorcontrolled insurance program. However, wrap-up policies can also be sponsored by

With wrap-up insurance, one policy replaces several policies held by the owner, general contractor, design professional and every subcontractor on the project. Not only does the sponsor control the coverages, but they also control who is included under the coverages. Wrap-up policies include broader coverage with higher limits than traditional insurance. A typical wrap-up policy may also include completed operations liability coverage for 10 years after the completion of the project. Furthermore, choosing a wrap-up policy frees the general contractor to hire any subcontractor it chooses without

Agents dealing with customers involved in large construction projects may need to consider whether a wrap-up policy might be required or appropriate. Then they need to be careful in navigating through potentially dangerous waters.

> Mike Farrell has more than 20 years of experience as an employee benefits consultant and currently works in that capacity for David Insurance, an independent agency with offices in Kenosha and Racine.

> A wrap-up policy is all-encompassing

!"#$%&'%(!$%)&*$. Rely on Wilson.

Rely on!

Quality . Stability . Teamwork . Service . Integrity

Our people make the difference. Contact us today to see how you can become part of the Wilson Mutual family.

4UBIM 3PBE t 4IFCPZHBO 8*

XXX XJMTPONVUVBM DPN

+'%&(,"-#&.!/&0(1&!2%&*2(34-$!(54.46$% 26 | NOVEMBER 2013

WISCONSIN INDEPENDENT AGENT

consideration of whether the subcontractor can obtain the requisite insurance.

WISCONSIN INDEPENDENT AGENT

> Jim Redeker is vice president, claims and liability, with Swiss Re Corporate Solutions. He handles claims against insurance professionals out of the companyâ&#x20AC;&#x2122;s Overland Park, Kan., office.

NOVEMBER 2013 | 27

NOVA’S ROCK STAR WISH CAME TRUE Novalie’s rock star wish came true on Sun., Oct. 6 at the Sheraton Hotel. From the moment she was greeted by the “paparazzi” on the red carpet until her video debuted during the party, Nova was the star of the show. The Make-A-Wish Wisconsin team shared this about Novalie’s big day:

On behalf of Novalie, her family, and all of us at Make-A-Wish Wisconsin, please accept our profound appreciation for the important role you played in her amazing and unique wish! Not only did Nova’s world premiere celebration at the Sheraton exceed

all expectations, so did every step along her memorable journey to stardom. We couldn’t ask for a more talented and generous team of sponsors, musicians and technicians, creative producers, photographers and videographers, in-kind contributors, caterers, volunteers, designers and artists, cheering fans and supporters — and the list goes on. Each and every one of you was extremely important in making Nova’s wish experience as magical as possible, and we can’t thank you enough for your very special contribution. You rock!!

I’ve spoken to Nova’s family several times since her premiere, and they’re still flying high. Nova has become quite the little “celebrity” at school and in her neighborhood, and her fans continue to flock around her! Her time in the spotlight continued, as she walked the runway at a fashion show fundraiser at the Concourse Hotel.

Novalie and friends dance to her video.

Thank you again for your generous contribution to Novalie’s memorable, magical wish to be a rock star!

The Make-A-Wish Wisconsin team surrounds Novalie and lets their inner rock star come out!

After arriving by limo, Novalie and her friends greet her fans and paparazzi at the Sheraton.

In true star fashion, Nova signed autographs all day.

We are proud to be one of the sponsors of this great event.

Signing autographs on the red carpet.

The most sought after ticket in the city!

Novalie’s song and video, “Someday”.

Adoring fans on the red carpet.

The IIA of Wisconsin staff at the party.

Greeting her throng of fans and the media at the Sheraton.

28 | NOVEMBER 2013

Bobby Bramlett (right), IIABA past chairman, attended Novalie’s premiere party all the way from Oklahoma. With Bobby is IIAW President Dave Dunker.

WISCONSIN INDEPENDENT AGENT

Cupcakes displayed on vinyl platters.

Forrest Doolen, Make-A-Wish Wisconsin’s PR Manager, introduced Novalie to the crowd.

WISCONSIN INDEPENDENT AGENT

NOVEMBER 2013 | 29

FOOD FOR THOUGHT THEY ARE STILL HEROES On Tues., Oct. 1, wheelchair-bound elderly veterans pushed aside barricades to tour the World War II Memorial in defiance of the government shutdown which closed all of the memorials in the nation’s capital. The four bus loads of veterans — visiting from Mississippi as part of a oncein-a-lifetime Honor Flight tour — ignored National Park Police instructions not to enter the site as lawmakers and tourists cheered them on.

Have u heard the latest about ACUITY?

“We didn’t come this far not to get in,” one veteran proclaimed.

The scene was both emotional and comical at once. After it was clear they had lost control of the situation, Park Police officials stood aside, telling press that they had “asked for guidance on how to respond” to the breach of security. As 80-something veterans slowly walked around the massive war memorial, Park Police stood quietly to the side, advising other tourists that the site was technically still closed. But they made no moves to stop the wishes of the war heroes.

YES! Every1 is talking about them : )

Source: starsandstripes.com

HEY HOSER, YOUR WEBSITE IS BROKEN, EH? CGI Federal is the Canadian IT company that the U.S. government hired to build the massive healthcare.gov Website, the conduit to which Americans are supposed to register and buy affordable health insurance. Glitches and technical failures with the Website have been widely reported leading to frustrated users and even more uptight politicians. So, how much have U.S. taxpayers paid to this foreign company?

According to a report in New York magazine, a senior official at the Department of Health and Human Services (speaking on condition of anonymity) said the value of the contracts totaled $515 million so far. This is for all contracts between CGI and the Center for Medicare and Medicaid Services, the arm of HHS that is charged with implementing the Affordable Care Act, inked since mid-2010.

PLACED

Source: New York Magazine

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See what they’re saying at: www.acuity.com

>*#1#%)#*$",%4+%?@ABACABC?DE% "-%FG$#*$",H&&&I#(5"$(#$=5";%+"149J Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

30 | NOVEMBER 2013

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