Wisconsin Independent Agent | November 2023 Magazine

wisconsin INDEPENDENT AGENT NOVEMBER 2023

thankful WE ARE

FOR OUR MEMBERS!

This issue was brought to you by our Exclusive Supporting Company Member:

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CONTENTS wisconsin INDEPENDENT AGENT

COVER STORY: This season (and every season) we are thankful for all of our members!

Review our member benefits and the upcoming IIAW events listed in this issue to take full advantage of your IIAW membership.

INDUSTRY RELATIONS..........................................................16 AM Best: Downgrades Outnumber Upgrades in 2023

INSURANCE BARTENDER....................................................18-19

Carrier Downgrades and Your SwissRe Agency Errors & Omissions Insurance Policy: What You Need to Know

RISKY BUSINESS.......................................................................20-21

INDEPENDENT INSURANCE AGENTS OF WISCONSIN 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2023-2024 EXECUTIVE COMMITTEE President:

Mike Ansay | Ansay & Associates

President-Elect:

Joanne Lukas Szymaszek | Risk Strategies Company

Secretary-Treasurer:

Dan Lau | Robertson Ryan Insurance

Chairman of the Board:

Nick Arnoldy | Marshfield Insurance Agency, Inc.

State National Director:

Steve Leitch | Leitch Insurance

Licensed v. Non-Licensed Employees: The Importance of Updated Job Descriptions

2023-2024 BOARD OF DIRECTORS

PERSONAL LINES.....................................................................22

Beth DeLaForest | Aspire Insurance Group, Inc.

Juice Jacking, QR Code Scams and Other Emerging Cybercrime Trends

COMMERCIAL LINES.............................................................24-25 ISO Updates to Exclude Coverage For Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS)

TECHNOLOGY............................................................................26 Mastering Outlook: Tips and Tricks to Maximize Efficiency

MARKETING...............................................................................28

Janel Bazan | Avid Risk Solutions/Assured Partners Mike Harrison | R&R Insurance Services, Inc. Jason Knockel | Kunkel & Associates, Inc. Aaron Marsh | Marsh Insurance Services, Inc. Andrea Nelson | Unisource Insurance Associates, LLC Brad Reitzner | M3 Insurance Solutions Justin Staebler | Risk Strategies Company

IIAW Staff Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com

5 Ways Independent Insurance Agencies Can Optimize Their Marketing for Mobile-First Consumers

Mallory Cornell | Vice President 608.210.2975 • mallory@iiaw.com

GOVERNMENT AFFAIRS.......................................................30-31

Kim Kramp | Accounting Supervisor 608.210.2976 • kim@iiaw.com

HUMAN RESOURCES..............................................................32-33

Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com

State Report Marks Highest Surplus and Rainy Day Fund in History The Crucial Role of Goal Setting & Feedback for Independent Insurance Agencies

COMMENTARY FROM COUNSEL......................................34 EEOC Issues Proposed Guidance on Workplace Harassment

MEMBERS IN THE NEWS.......................................................36-37

ADVERTISERS INDEX Berkshire Hathaway GUARD...................29 EMC.....................................................................17 IMT.......................................................................40 JM Wilson.........................................................33 Keystone............................................................9 Penn National..................................................23 Robertson Ryan & Associates.................21 SECURA.............................................................12 Society.................................................................27 UFG......................................................................2 West Bend.........................................................11 Western National...........................................38

Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com Kaylyn Staudt | Marketing and Communications Director 608.210.2977 • kaylyn@iiaw.com Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com Andrea Michelz | Education & Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com Diana Banaszynski | Events Coordinator and HR Business Partner 608.256.4429 • diana@iiaw.com Ali Smeester | Accounting Specialist 608.256.4429 • ali@iiaw.com Freeman Zhang | Data Analytics Intern 608.256.4429 • freeman@iiaw.com

Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256.4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2023 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com. wisconsin INDEPENDENT AGENT

| NOVEMBER 2023 | 3

You & Integrity: Committed.

Connected. Partners.

We’re dedicated to your long-term success. With Integrity, you gain the personal touch of a small business with the tools of a national carrier.

Learn more: integrityinsurance.com

Company Spotlight Integrity Insurance With a long history of supporting independent agents, an “A” rating from A.M. Best and a customizable lineup of home, auto and business insurance, Integrity Insurance offers the stability of a large insurance carrier and the personalized service of a small business. Integrity builds productive, unique relationships with our agents and combines that with a focus on Ease of Doing Business® that gives our agents the best chance to succeed. Integrity is proud to be a Committed, Connected, Partner for its independent agents.

Proud Partners with Grange Insurance Integrity's partnership with Grange Insurance is more than two decades strong. The relationship gives Integrity access to modern insurance products and services that create a better experience for customers and agents.

Commercial Lines Integrity offers our agents a crystal-clear appetite that covers many classes and a wide variety of commercial products including Commercial Package, Worker’s Comp, Commercial Umbrella and Commercial Auto.

Integrity also provides coverages such as Cyber

Committed. Connected. Partners.

and Employment Practices and Liability Insurance and Equipment Breakdown Coverage that’s crucial for your clients in today’s workplace.

Our commitment to providing the best to our agent partners includes services and policies that are true differentiators.

Our 36-Month Package Policy offers rate stability for your clients. Integrity’s Commercial Service Center takes care of the little things so you can grow your business. Our Risk Management Consulting team gives businesses of any size a partner to help identify issues and develop solutions.

Personal Lines Integrity Personal Lines offers a full suite of customizable Home and Auto products that can help agents meet the needs of any client.

Additional coverages such as ID Theft, Cyber, Umbrella and Underground Service Line give your clients the peace of mind and protection they expect from their insurance.

A Digital World Integrity policyholders and agents have access to the latest developments in technology.

Policyholders can access their billing and policy documents from any desktop or mobile device with our Integrity

Insurance app or a MyIntegrity online account. Policyholders can also pay their bills via EFT (Electronic Funds Transfer) and receive claims payments via electronic claims payment.

Integrity also has self-service options for policyholders such as our DIY Home Inspection tool and our Easy Snap for minor auto claims.

For more information about Integrity, visit integrityinsurance.com.

Contact: Cathy Colón Regional Sales Manager (920) 968-9326 ccolon@imico.com About Integrity Insurance Integrity Insurance was established in 1933 and offers auto, home and business insurance protection through a network of independent agents throughout Iowa, Minnesota and Wisconsin. With partner Grange Insurance based in Columbus, Ohio — the 13-state Grange Enterprise has $3.1 billion in assets and $1.4 billion in annual revenue and holds an A.M. Best rating of "A" (Excellent). Learn more by visiting integrityinsurance.com.

wisconsin INDEPENDENT AGENT

| NOVEMBER 2023 | 5

MEMBERSHIP BENEFITS IIAW members get access to our extensive list of membership benefits: IIAW RESOURCES Agency Solutions - Free Evaluations Operational Reviews Workflow Mapping Technology Evaluation Financial Evaluation Strategic Evaluation

Communications

WI Independent Agent Magazine (Monthly Publication) Big I Buzz (Weekly E-Newsletter) Interest Area Newsletters (Monthly) - Personal Lines, Commercial Lines, Employee Benefits and Industry Relations & Operations IIAW Publications (Industry Research, Marketing Guides, Quarterly, Compensation Report & Annual Marketshare Reports, etc.)

Education

Prelicensing Online & Classroom CE Employee Training with MyAgencyCampus

Emerging Leaders

Professional Development Networking Events Opportunity to Attend National Leadership Conferences

Events

Annual Convention (InsurCon) Networking Events

Legal Briefs and Guidance

Free Quarterly Consultation

Services

Agency Accounting Services Agency Operational Consulting Agency Technology Consulting HR Consulting Virtual Operational Improvement Reviews

Task Forces & Councils

3 Virtual Meetings Per Year Free CE Credits Networking Opportunities

Government Affairs

Technology

Diversity Task Force E&O Risk Management Website Government Affairs Guaranteed Income Program Independent Agent Magazine IndependentAgent.com InsurPac Large Agents & Brokers Council Legal Advocacy & Services

Marketing & Branding Media Relations Trusted Choice Disaster Relief Fund Trusted Choice® Virtual University Young Agents

Employee Benefits Insurance ePayPolicy Flood Insurance Program Guide to Agency Perpetuation Home Business Insurance Independent Market Solutions (IMS) InsurBanc

InVEST Retirement Plans Rough Notes Advantage Plus (VRC) TrustedChoice.com Umbrella Insurance

Political Advocacy at the State & National Level News & Updates

Cybersecurity Compliance Bundle Catalyit (Full Access Subscription) WAHVE - Talent Solution

IIABA RESOURCES ACORD Forms Agency Universe Study ACT - Agents Council for Technology Ask an Expert Best Practices Study Big “I” Business Resources Big “I” Hires Big “I” Markets (Market Access)

PRODUCTS Agents E&O Insurance Association Health Plan Carrier Contact Reviews DAIS - Internet of Insurance Data Breach Insurance Eagle Agency Employment Practices Liability Insurance

Take advantage of the IIAW's member benefits www.iiaw.com 6 | NOVEMBER 2023 |

wisconsin INDEPENDENT AGENT

IIAW Members Get Exclusive Access The IIAW is a proud co-founder and investor of Catalyit.

All the agency tech guidance you need...in one place.

The number of ways you can leverage tech to increase profits and serve customers is nearly unlimited. But time, know-how, and fear of risk are getting in the way.

Catalyit solves it for you.

As an added IIAW member benefit, all IIAW agency members receive a free one-year Full Access Subscription to Catalyit. Learn more at

iiaw.com/catalyit

Contact: Matt Banaszynski | IIAW CEO P: 608-256-4429 E: matt@iiaw.com

We’re sure other networks are great.

But do they come with all the extras?

Aggregation? Check. National carrier contracts? Check.

Basic networks can do a lot for an agency.

Keystone does all that and more.

Learn more about how Keystone can sweeten your agency offerings

https://lp.keystoneinsgrp.com/sa-learn-more ©2023 Keystone Insurers Group ®. All rights reserved.

This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.

Thank You!

IIAW SUPPORTING COMPANY MEMBERS EXCLUSIVE:

DIAMOND:

GOLD:

SILVER:

AF Group AMERISAFE Chubb Insurance Company Erie Insurance Group Foremost Insurance Group

BRONZE:

American Risk Management Resources Network LLC Axley Brynelson Attorneys Berkshire Hathaway GUARD Insurance Companies CCF Bank Branch Insurance Cincinnati Insurance Companies Dairyland Auto & Dairyland Cycle Donegal Insurance Group Erickson-Larsen, Inc.

Gleaner Life Insurance The Hanover Insurance Group Honeycomb Insurance MarshBerry Midwest Family Mutual Insurance Company

Redbird Security, LLC Selective Insurance Company of America SERVPRO State Auto

First Onsite Property Restoration Frankenmuth Insurance Germantown Mutual Insurance Company Hastings Mutual Insurance Co. ICW Group Insurance Companies Insuserve-1 J.M. Wilson Keystone Insurers Group Madison Mutual Insurance Company Mt. Morris Mutual Insurance Company Nationwide

North Star Mutual Insurance Company Old Republic Surety Openly!

Pekin Insurance The Peoples Community Bank Pie Insurance Risk Placement Services Sentry Insurance ServiceMaster Recovery Services United Mutual Insurance Company Westfield

When Main Street is the main focus.

Running a successful small business is hard work, but finding the right insurance program for your client is easy with West Bend.

Our business insurance program covers liabilities and expenses specifically designed for small business operations.

• Great pricing and exceptional coverage • Experienced claim representatives • Convenient options for reporting losses – available 24/7 Learn more about the variety of business line coverages available through West Bend by visiting thesilverlining.com.

The worst brings out our best.®

Commercial | Personal | Farm | Agribusiness | Specialty

12 | AUGUST 2023 |

wisconsin INDEPENDENT AGENT

Join Us In Celebrating

This Year’s Special Guests:

Charles Woodson

Matt LaFleur

REGISTER NOW: IIAW.COM/INSURCON

EVENT SCHEDULE INSURCON2024 • MAY 15-16, 2024 • LAMBEAU FIELD, GREEN BAY

WEDNESDAY, MAY 15TH

10:30AM-12:30PM

Champions Club Room

AGENCY APPRECIATION LUNCHEON Celebrate the heart of our industry at the exclusive Aaron Popkey, Green Bay Packers

*This event is open to agency personnel and those receiving a special invite.* Limited space available on a firstcome, first-serve basis.

1PM-4PM

Legends Club Room

4:30PM-9PM

Johnsonville Tailgate Village

E&O RISK MANAGEMENT (ETHICS) Mallory Cornell, IIAW Vice President

MEET GREEN BAY PACKERS HEAD COACH

Matt LaFleur, Packers Head Coach

Agency Appreciation Luncheon, a gathering dedicated to recognizing our valued agency personnel and esteemed invitees. Hear how the Packers prepare for the 2025 Draft, their marketing strategy and how they respond to challenging events from Green Bay Packers Director of Public Affairs, Aaron Popkey. We’ll also feature a fast-paced CEO Q&A.

Earn 3 Ethics CE credits during Mallory’s Less Risk. More Reward. E&O Risk Management course. This course will be full of storytelling, statistics and E&O risk mitigation tips and it is premium credit approved by Swiss Re. Gear up for an exciting tailgate party, featuring an exclusive Meet and Greet with Packers Head Coach, Matt LaFleur, an exhilarating cornhole tournament, tailgate games and dinner!

THURSDAY, MAY 16TH 8AM-9AM

Pre-Function Area

9AM-9:45AM

Legends Club Room

10AM-11:15AM

Legends Club Room

11:30AM-12:30PM

Legends Club Room

12PM-1:30PM

Pre-Function Area

12:30PM-3:30PM

North Balcony and Pre-Function Area

5PM-6PM

Atrium Floor

6PM-9PM

Atrium Floor

CONTINENTAL BREAKFAST

Stop by the registration desk outside of the Legends Club Room to pick up breakfast before the panels begin.

IIAW PAST PRESIDENTS’ PANEL

We’ll engage in insightful discussions with our four esteemed former presidents of the IIAW, delving into their experiences and perspectives on the industry’s evolution.

Mary Hosmer, Paul Leitch, Darrel Zaleski and Marc Petersen

RISK MANAGEMENT PANEL Local Green Bay Leaders of Risk and Crisis Management

To Be Announced

CEO PANEL

Gain valuable insights into the insurance industry’s future trajectory from top CEOs in our CEO Panel, as they discuss emerging trends, challenges and innovative strategies shaping the landscape.

GOURMET LUNCH

Join us for a gourmet lunch prior to our Exhibitor Showcase.

EXHIBITOR SHOWCASE

Network and connect during our Exhibitor Showcase on the North Balcony, overlooking the Lambeau Field Atrium. Agency attendees can win great prizes during Blackout Bingo and exhibitor Super Door Prize giveaways.

COCKTAIL RECEPTION HONORING IIAW PAST PRESIDENTS

Join us for a cocktail hour preceding the evening’s celebration as we set the stage for a spectacular night with a photo opportunity overlooking Lambeau Field.

EVENING CELEBRATION

Prepare for an unforgettable evening of celebration and inspiration, as we commence with an esteemed awards ceremony and a presentation from Charles Symington, IIABA CEO. We’ll enjoy a delicious dinner and journey through the rich history of the IIAW over the last 125 years. Charles Woodson will lead a keynote presentation that promises to leave a lasting impact. Cap off the night with an exclusive Meet & Greet session, offering the chance to connect with Woodson up close and personal.

Open to Everyone

Charles Woodson, Former NFL Defensive MVP, Heisman Trophy Winner and ESPN Analyst

FRIDAY, MAY 17TH 9AM-NOON

Join us as we listen to local leaders in risk management and crisis management and how they mitigate their exposures. Hear how professionals plan for Packer game day events and other potential hazards that face the city and events in Green Bay.

HALL OF FAME/STADIUM TOURS

Enjoy your Guided Lambeau Field Stadium Tours and Hall of Fame Tours (included w/ registration) during this time!

INCLUDED WITH REGISTRATION INSURCON2024 • MAY 15-16, 2024 • LAMBEAU FIELD, GREEN BAY Join us in celebrating our 125-year anniversary at our annual convention, InsurCon, a once-in-a-lifetime event set against the breathtaking backdrop of Lambeau Field. As Lambeau Field opens its doors exclusively for our 125th anniversary, you’ll experience its legendary aura like never before. With cheers of the past, the energy of the present and the promise of the future - all converge in this unforgettable celebration. An extraordinary year like this means you’ll receive more than ever with your event registration! You’ll receive:

An Evening With Charles Woodson

Agency Appreciation Luncheon (Invite Only) Featuring CEO Q&A and Presentation from Packers Director of Public Affairs, Aaron Popkey

Lambeau Field Atrium

Includes access to Past Presidents’ Cocktail Hour, Charles Woodson Keynote Presentation, complimentary bottle of Charles Woodson whiskey or wine and photo opportunity led by a professional photographer.

Meet Green Bay Packers Head Coach Matt LaFleur

Champions Club

Open to agency personnel, Exclusive Supporting Company Members and those who receive a special invitation. Includes access to the Champions Club (the unofficial stadium penthouse), lunch, a presentation featuring Aaron Popkey and a fast-paced CEO Q&A.

Exceptional Dining Experience

Johnsonville Tailgate Village

Includes Meet and Greet with Green Bay Packers Head Coach Matt LaFleur, cornhole tournament and an ultimate tailgate dinner.

E&O Risk Management Course (3 Ethics CE Credits)

Agency Appreciation Luncheon Ultimate Tailgate Cuisine During Tailgate Party Continental Breakfast Gourmet Lunch Overlooking Lambeau Field Evening Celebration Dinner in Lambeau Field Atrium

Guided Lambeau Field Stadium Tour and Hall of Fame Tour

Wisconsin’s Largest Insurance Exhibitor Showcase Ability to network and win BIG prizes (cash, door prizes and Blackout Bingo prizes).

Insightful Panel Discussions Lambeau Field Stadium & Hall of Fame

Legends Club Room

IIAW Past Presidents’ Panel Green Bay Packers Risk Management Panel CEO Panel

Wrapping up our annual convention with a memorable finale, join us on Friday, May 17th to redeem your guided Lambeau Field Stadium Tour and self-led Hall of Fame Tour (included with registration)! Closer to the event you’ll receive a separate registration to select your tour time slot.

INDUSTRY RELATIONS

AM BEST: DOWNGRADES OUTNUMBER UPGRADES IN 2023 AM Best downgraded 32 property & casualty companies' credit ratings in the first half of 2023.

With 21 p&c personal lines insurers receiving downgrades, along with 10 commercial lines insurers and one reinsurer, the downgrades outnumber the 22 ratings upgrades.

under review more than doubled in 2023's first half, making up 6% of total rating actions.

Looking ahead, the percentage of negative carrier rating outlooks has doubled over the past six months to nearly 10% halfway through 2023, up from 5% at the end of 2022.

The first half of 2023's downgrades also outpace last year's first-half downgrades of 18, according to the report. The p&c downgrades accounted for 9% of all AM Best's ratings actions taken during the first half of 2023, compared to 5% in the first half of 2022.

For personal lines, “carriers that are slow to address challenges or do not have the means, expertise, or technological capabilities to keep pace with changes in the environment will likely face ratings pressure," AM Best warned.

Personal lines, and especially personal auto, drove the negativity. Personal auto insurers accounted for 11 of the 21 personal lines downgrades, AM Best noted. The report echoed other industry analysis that a near-term return to underwriting profitability is “unlikely" for personal auto carriers. Weather-driven deterioration in operating performance, rising losses and reinsurance costs were major factors in personal lines carriers' woes.

However, commercial lines upgrades still outpace downgrades in 2023 so far but, thanks to social inflation, commercial casualty insurers accounted for half the downgrades.

Among all downgrades, AM Best said 39% were caused by declining operating results, while weakened balanced accounting caused 23% of the downgrades. All lines were impacted by worsening economic and social inflation.

Additionally, the number of p&c ratings placed 16 | NOVEMBER 2023 |

wisconsin INDEPENDENT AGENT

Commercial carriers still largely face up to challenges, with “conservative investment portfolios, sound reserve positions and enhanced risk management discipline," the report noted.

In a separate report, AM Best noted that U.S. life, health and annuity insurers saw a larger percentage of affirmations, with both upgrades and downgrades decreasing. Life, health and annuities benefited from high levels of riskadjusted capitalization, favorable liquidity profiles and boosted net yields due to higher interest rates. However, those favorable conditions were balanced by market-sensitive lapse rates, asset credit risks, and talent acquisition challenges, AM Best said.

This article was originally published on iamagazine.com in October 2023.

> AnneMarie McPherson Spears, IA News Editor

When it comes to protecting your contractor clients

Let EMC do the heavy lifting.

EMC has the knowledge and expertise to protect every square inch of your clients’ needs. And with over 110 years of experience, we’ve become the jack of all trades — from general contractors to electricians to excavators. No matter your client’s specialty, EMC has the right tools to protect them — and you won’t even break a sweat.

You know the drill: emcins.com/contractors-agents

EMC Insurance Companies | Des Moines, IA | 800-447-2295 ©Copyright Employers Mutual Casualty Company 2023. All rights reserved.

wisconsin INDEPENDENT AGENT |

NOVEMBER 2023 | 17

INSURANCE BARTENDER

CARRIER DOWNGRADES AND YOUR SWISSRE AGENCY ERRORS AND OMISSIONS INSURANCE POLICY: WHAT YOU NEED TO KNOW AM Best has recently downgraded 32 P&C carriers in the first half of 2023, and as a result, now is a good time to revisit SwissRe’s policy language and agency best practices.

Should you have any questions, please don’t hesitate to contact IIAW staff.

SwissRe’s policy language as it pertains to carrier downgrades, insolvency, and the exclusions within the policy: Section V. EXCLUSIONS, E. INSOLVENCY is deleted and replaced with the following: E. INSOLVENCY. The financial inability to pay, insolvency, receivership, bankruptcy or liquidation of any insurance company, any Individual Practice Association, Health Maintenance Organization, Preferred Provider Organization, Dental Service Plan, Risk Retention Group, Risk Provider Group, self-insured plan or any pool, syndicate, association, or other combination formed for the purpose of providing insurance or reinsurance, or any healthcare provider or any reinsurer with which the INSURED directly placed the subject risk.

However, this exclusion does not apply if, at the time the INSURED placed the subject risk with any of the abovedescribed entities, such entity or entities were rated by AM Best as B or higher, or alternatively, such entities were member insurers of the state guaranty fund, guaranty association or the Wisconsin Insurance Security Fund in the state or states of domicile of the subject risk, or such entities were guaranteed by a governmental body or bodies and/or operated by a governmental body or bodies, the INSURED placed the coverage with an insurance carrier through a state established residual market insurance program, or the INSURED placed the coverage with a County Mutual or Town Mutual reinsured by carriers rated B or higher, or the coverage was placed with an insurance carrier admitted in the state or states of domicile of the subject risk and rated A or higher by Demotech.

Guidance as it pertains to carrier downgrades: When an insurer is downgraded below a B, the policy language states, “or alternatively, such entities were member insurers of the state guaranty fund, guaranty association or the 18 | NOVEMBER 2023 |

wisconsin INDEPENDENT AGENT

Wisconsin Insurance Security Fund in the state or states of domicile of the subject risk” would make this exclusion no longer apply. For example, Badger Mutual is covered by the Wisconsin Insurance Security Fund. As a result, agencies can continue to represent Badger Mutual and renew and place business with Badger Mutual so long as they follow the procedures as outlined below.

Best practices for agency procedures when continuing business with a carrier with a rating below a B: so long as the state guaranty association covers the carrier, the insolvency exclusion will not apply.

Agencies should notify ALL affected policyholders of the rating change in writing and electronically. Suppose an agency intends to place new business with a carrier that has been downgraded (such as Badger Mutual). In that case, they should also inform these customers of Badger's rating in writing, what it means, what their options are, and have the customer sign off that they still want their business placed with them despite the low carrier rating.

To help with this, SwissRe has prepared the attached letter for agencies to use. While you are not required to use the letter, we recommend doing so to cover necessary communications with your clients.

There is no right or wrong decision regarding moving coverage, however, the agency SHOULD NOT make that decision for any of their customers. Inform the customers and let them decide what they wish to do. Every E&O claim involving carrier insolvency starts with what the agency knew, when it knew it, and when did it informed its customers. SwissRe’s ability to defend these claims depends on how the client answers these questions, your agency’s ability to follow these procedures for all clients that are impacted and the agency’s thorough documentation in the file.

Visit https://bit.ly/475MJfT for a Sample Carrier Ratings Downgrade Letter. To access both documents mentioned in this article, log in using your IIAW member credentials.

If you need assistance with your login, or if you'd like to become an IIAW member, please email info@iiaw.com.

Guidance as it pertains to carrier receiverships and rehabilitation

Be ready with additional markets to assist your clients.

First and foremost, the agency must keep its clients informed of the situation. In most cases, the carrier will communicate with their policyholders regarding the situation. The agency can provide additional guidance on the client's options at this time, based on the regulatory action taken by the Office of the Commissioner of Insurance. The agency should NOT notify clients if the carrier has not been placed under an order by OCI. A general rule of thumb would be: if the carrier is not sending client notification, the agency likely does not need to either. If a carrier is notifying clients of carrier receivership or rehabilitation and the agency does not contact the policyholder/client, a situation could arise where the policyholder/client is not clear on what they need to do.

Subsequently, a claim by the policyholder/client could be made that is not covered by the client's policy with the rehab/receiver/liquidated carrier. All of which could lead to an E&O claim against an agency. It is recommended that you try and communicate both electronically and by USPS. The recommended course of action for agencies to consider: Run a list from your agency management system to identify potentially impacted clients.

Contact the clients to advise them of the situation. Initial contact can be by telephone (document your file!) with a follow-up using one of the sample letters, tailored to your needs (below).

If there are other documents provided by the DOI/Receiver that can be shared with the client, include them with your letter (example: FAQ).

Any newly quoted policies should be reviewed for coverage differences.

DO NOT offer to pay any outstanding (or new) claims for your clients OR refund unearned premiums!!!

DO NOT rely on the Rehabilitator/Receiver to contact your clients on your behalf.

Consult your E&O policy’s Insolvency Exclusion and report any potential incidents to IIAW and SwissRe’s Claims Department.

It should be the policyholder/client's decision on the course of action.

ALWAYS DOCUMENT THE CLIENTS FILE WITH EVERY COMMUNICATION. Finally, your agency’s communication should be clear and concise, and advise the policyholder/client to contact your office immediately to discuss potential options. The agency must inform their policyholders/clients of the situation, what impact it has on their coverage, and what their coverage options are moving forward, and let them decide what they wish to do. Most policyholders are confused as to what to do and what this means for their insurance coverage. While stressful for your agency’s employees, these essential steps will help your agency guard against E&O claims that might arise against your agency from policyholders/clients of carriers in receivership/ rehabilitation.

Visit https://bit.ly/475MJfT for a Sample Letter for Carriers Placed in Receivership or Rehabilitation by OCI.

Document any communications with the carrier/receiver in your carrier file.

> Matt Banaszynski,

Matt’s Mixology Cranberry Bourbon Cocktail This signature drink (photo & recipe courtesy of acouplecooks.com) is the perfect cocktail for fall and winter entertaining.

Ingredients • • • • • • •

1.5 ounces bourbon whiskey 1 ounce sweet red vermouth 2 ounces orange juice 1 ounce 100% unsweetened cranberry juice .5 ounce simple syrup Ice for serving Fresh or frozen cranberries, rosemary, for garnish

CEO, IIAW

Directions 1. Place the bourbon, sweet vermouth, orange juice, cranberry juice and simple syrup in a cocktail shaker. Fill it with ice and shake until cold.

2. Strain the drink into an ice-filled lowball glass. If desired, garnish with fresh or frozen cranberries and rosemary sprigs.

3. Pitcher variation (8 servings): Add 1.5 cups bourbon, 1 cup sweet vermouth, 2 cups orange juice, 1 cup cranberry juice and .5 cup simple syrup to a pitcher.

Add 2 handfuls of ice and stir until cold. wisconsin INDEPENDENT AGENT |

NOVEMBER 2023 | 19

RISKY BUSINESS

LICENSED V. NON-LICENSED EMPLOYEES: THE IMPORTANCE OF UPDATED JOB DESCRIPTIONS Many agents contact IIAW staff and ask what accountabilities can be given to a non-licensed employee. As it becomes increasingly difficult to find quality new hires, agencies often hire outside the industry, and individuals are not licensed.

If you’re considering whether someone in the agency should become licensed, the answer is ‘yes.’ It is always a best practice to have everyone in the organization licensed.

Please refer to the text boxes for direct guidance on what actions require an insurance license and what accountabilities do not. Furthermore, as you review the roles and responsibilities of your team, take some time to have updated job descriptions for each employee.

Updated job descriptions clarify roles, provide guidance for performance evaluations, help engage with employees through career development, and lead to greater employee satisfaction.

License Required To: » Discuss a client's current coverage or additional coverage options » Discuss property valuation » Discuss deductibles » Discuss risks and exposures » Servicing: taking changes, discussing claims, answering billing questions » Rating coverage: providing quotes on guidance on rates

Updated job descriptions are essential for several reasons: 20 | NOVEMBER 2023 |

wisconsin INDEPENDENT AGENT

Clarity and alignment: Job descriptions help employees and potential candidates understand the responsibilities and expectations of a particular role. When job descriptions are current and accurate, they ensure everyone is on the same page regarding the job. This clarity is essential for effective performance management, as it sets clear expectations.

Recruitment and hiring: Accurate and up-todate job descriptions are crucial when hiring new employees. They are a foundation for crafting job postings, conducting interviews, and assessing candidates. A current job description ensures that candidates who apply for the position are a good fit and clearly understand what the role involves.

Performance evaluation: Job descriptions are used in performance evaluations and setting performance goals. When job descriptions are outdated, employees may be evaluated based on criteria that no longer align with the actual requirements of their roles.

License is Not Required To: » Take/process payments » Send out dec pages upon request » Data entry into the agency management system (attaching documents or setting up new customers or leads) » Answering phones and routing the caller to the correct person » Issuing auto ID cards

This can lead to unfair evaluations and hinder employee development.

Career development and training: Current job descriptions are essential for identifying skill gaps and areas where employees may need further training or development. It helps employees and their managers understand the skills and competencies required for career progression, enabling targeted training and development plans.

Adaptation to changing needs: Organizations are dynamic and constantly evolving. Job roles may change in response to industry trends, technological advancements, or shifting organizational priorities. An updated job description allows for agility in adapting to these changes, ensuring that job roles remain relevant.

Outdated or unclear job descriptions can lead to confusion, frustration, and dissatisfaction among employees.

Strategic alignment: Updated job descriptions ensure that employees' roles and activities align with the organization's strategic goals. They help define how each position contributes to the overall mission and objectives of the company.

Updated job descriptions are not always an exciting part of operations, but they provide clarity to what an employee can and cannot do as well as their primary responsibilities. If you need help reviewing or updating your employee job descriptions, please feel free to reach out to Mallory (mallory@iiaw.com) or Diana (diana@iiaw. com) at the IIAW for help.

Employee engagement and satisfaction: When employees clearly understand their roles and responsibilities, they are more likely to feel engaged and satisfied at work.

> Mallory Cornell, Vice President, IIAW

Voted on by our Employees, Robertson Ryan was recognized as a 2023 Top Workplace by the Journal Senঞnel.

Robertson Ryan Insurance Join our Team - More Markets. Bigger Return. Proven Success Learn More: Chris Illman | cillman@robertsonryan.com | 800-258-0277 | www.robertsonryan.com/agentowner wisconsin INDEPENDENT AGENT |

NOVEMBER 2023 | 21

PERSONAL LINES

JUICE JACKING, QR CODE SCAMS AND OTHER EMERGING CYBERCRIME TRENDS If you've never heard of juice jacking, QR code scams, or formjacking, you're not alone, according to the latest “Agency Forward" survey from Nationwide. Many consumers had never heard of these emerging types of identity theft (ID theft) methods.

Juice jacking is when bad actors load malware onto public USB charging stations, such as those at airports and hotel lobbies, that can access plugged-in electronic devices for nefarious purposes like exporting personal data and passwords, according to the Federal Communications Commission. Forty-five percent of the respondents to Nationwide's survey had never heard of juice jacking.

QR code scams—in which hackers place malignant QR codes where consumers are likely to scan them, such as in a parking lot along with a sign misleading people they can pay for parking by scanning the code, according to Microsoft—are slightly more well-known, with one in three consumers saying they'd never heard of the scam.

Additionally, 32% of consumers were completely unaware of formjacking, which is when cybercriminals inject malicious JavaScript code to hack a website and steal information from a form page, like payment card details and addresses, according to Norton.

Concern about ID theft is high among consumers, with eight in 10 worried about the risk. Specifically, consumers are worried about artificial intelligence (AI) usage for identity theft, with 82% somewhat or very concerned.

And those ID theft fears are grounded: More than one in five consumers have had their identity stolen, according to the survey, with the most common incidents respondents reported as credit card fraud or financial accounts being opened in their names.

Unfortunately, consumers' everyday habits reveal a sloppy approach toward protecting their identities, 22 | NOVEMBER 2023 |

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despite their concerns. More than half—54%—use the same password across multiple sites, with Gen Z respondents being the biggest transgressors at 70%.

Another 39% use QR codes to make purchases, view restaurant bills, and other actions, which is concerning given that many are unaware of the potential risks.

Another 37% share personal information over the phone.

The lackadaisical attitude around personal cybersecurity indicates the big problem: Consumers hold a fatalistic view toward identity theft, according to Nationwide.

Despite the widespread concerns—and even a clear understanding among 82% of respondents that recovering one's identity after it's been stolen is not easy—74% of consumers believe “the risk of identity theft is just part of modern life." In fact, the majority indicated they believed ID theft takes more than two years to recover from, and more than $5,000.

Only 20% of consumers have ID theft insurance, with the primary obstacles being a lack of knowledge about the product (38%) and that they believe the product would be too expensive (35%). At the same time, 78% of respondents said they'd be willing to spend some money on ID theft protection, with 62% saying they'd be willing to spend up to $49 a month on it.

“You can protect your digital identity for a lot less than you think," said Beth Riczko, president of property & casualty personal lines at Nationwide. “Many people don't even realize their home/auto insurer would provide this type of coverage—and the coverage has some really good features."

This article was originally published on iamagazine.com in October 2023.

> AnneMarie McPherson Spears, IA News Editor

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

Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and services of national carriers.

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

Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com

Contact: Clayton Zogata 715-383-5454 czogata@pnat.com

We help people feel secure and make life better when bad things happen

An Equal Employment Opportunity/Affirmative Action Employer ©2021 Penn National Insurance

Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company.

• Strong financial performance and A.M. Best Financial Strength Rating of A• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably • Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans • State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs • Local, experienced underwriting, claims and management staff

COMMERCIAL LINES

ISO UPDATES FORMS TO EXCLUDE COVERAGE FOR PERFLUOROALKYL AND POLYFLUOROALKYL SUBSTANCES (PFAS) What are Perfluoroalkyl Substances (PFAS)?

U.S. population had PFAS in their blood samples.

What's the big deal about PFAS (pronounced “peefas"), anyway? They consist of a group of over nine thousand synthetic chemicals used in coatings and product that resist oil, grease and water. PFAS have been in use in manufacturing since the 1940s, and we find them in products such as Scotchgard®, stain resistant textiles, food handling materials such as tissue paper and in fast food bags, medical devices such as surgical patches, microwave popcorn bags, nail polish, shampoos, cleaners, and automotive components, to name a few products. In short, PFAS are everywhere in manufactured products.

A New Wave of Claims – PFAS

According to Brenda Wells-Dietel, Ph.D. Department Chair, Risk Management and Information program, East Carolina University, “These chemicals are in just about everything."

A recent Insurance Journal Academy webinar presented by Dr. Wells presented the following timeline of PFAS research.

• 1950s, 3M discovered the buildup of PFAS in the bloodstream • 1960s, 3M and Dupont conducted animal testing, which found harmful effects of PFAS • Late 1960s, PFAS began to appear in human blood samples • 1998, the 3M alerted the Environmental Protection Agency about the potential hazards of PFAS based on studies conducted on rats and in 2001, an attorney provided the EPA with documents on Teflon-related studies

Each day, more and more news articles appear on the dangers of PFAS.

The EPA set an internal guideline for setting an enforceable legal limit for PFAS in 2019; however, it was not until 2021 that the EPA released its document providing a strategic roadmap to PFAS, calling PFAS “an urgent public health and environmental issue."

While the concentration of PFAS in our bloodstreams is trending down since 2000, according to Wells, PFAS continue to be a significant concern.

Who is Exposed to PFAS?

Carriers Concerned About Future Claims

Certain occupations are more exposed to PFAS, including firefighters, those who work in chemical manufacturing and those who work with ski wax.

Insurers have increasingly become concerned with PFAS claims, most of which targeted manufacturers.

However, PFAS coverage claims may be the next frontier as insurers rely on the pollution exclusion in most commercial policies. Equating PFAS claims as the new asbestos where coverage cases peaked 40 years ago, Insurance Services Office (ISO) rolled out new exclusions designed to remove coverage for PFAS claim.

The main problem with the chemicals involved is that they don't break down. They run through our systems including our sanitations systems, including our drinking water.

Most exposed are firefighters from firefighting foam and turnout gear, and experts predict due to a rise in cancer claims among firefighters, this will be a major area of litigation.

In a Centers for Disease Control sample, 97% of the 24 | NOVEMBER 2023 |

wisconsin INDEPENDENT AGENT

Asbestos claims cost the industry about $100 billion up to 2022, according to AM Best.

In the auto dealers coverage form, ISO rolled out this form designed to exclude PFAS coverage.

In past cases, state case outcomes have differed in various states. There is currently no coverage on the market to address PFAS coverage.

•

Insurance Services Office Adds Endorsements to Address PFAS

This form has an effective date of 01/24. The form also includes changes to CA 04 – 65, auto hacking expense coverage, to limit covered claims to a discovery period after the policy period and which must occur within the coverage territory.

In the commercial general liability program (GL), ISO rolled out these forms, designed to “broadly exclude bodily injury, property damage and personal and advertising injury related exposures associated with PFAS definition," as follows, according to the filing.

•

• •

CG 34 95 Exclusion – Perfluoroalkyl And Polyfluoroalkyl Substances (PFAS),to use with products/completed operations liability coverage part or Owners and Contractors protective liability coverage part.

CG 34 96 Exclusion – Perfluoroalkyl And Polyfluoroalkyl Substances, to use with the railroad protective liability coverage part CG 40 32 Exclusion – Perfluoroalkyl And Polyfluoroalkyl Substances to use with the commercial liability coverage part.

In the commercial liability umbrella (CU) and the commercial excess liability coverage parts, ISO rolled out these endorsements, designed to “broadly exclude bodily injury, property damage and personal and advertising injury related exposures associated with PFAS definition," according to the filing.

• •

CU 34 54 Exclusion – Perfluoroalkyl And Polyfluoroalkyl Substances (PFAS), to use with the commercial liability umbrella coverage part.

CX 21 97 Exclusion – Perfluoroalkyl And Polyfluoroalkyl Substances (PFAS), to use with the commercial excess liability coverage part.

The GL and umbrella filing have an effective date of 5/1/23.

With the businessowners form, ISO rolled out this form designed to exclude PFAS coverage.

•

BP 15 91, Exclusion – Perfluoroalkyl And Polyfluoroalkyl Substances (PFAS)

There are also significant changes in this filing to include cyber liability, data privacy, electronic data liability, cyber, and other electronic data changes.

CA 27 19, Exclusion – Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS), Exclusion For General Liability Coverages

The endorsements define PFAS that “consists of or contains any such chemical or substance."

The impact of these endorsements is to reduce/ eliminate coverage if the underlying policies do not contain PFAS exclusions.

What Do We Tell Our Insureds?

If we can find coverage, that is the best approach, and coverage may be found in some cases in the surplus lines market. However, we do not currently know any markets offering such coverage.

Be sure to alert your clients and document that alert that they will not find coverage in most cases for PFAS-related claims in their current coverage.

At this time, one Midwest agency reports that carriers are adding these endorsements on renewals. A national carrier announced changes by stating in its marketing material, "Litigation and claims involving PFC/PFAS are increasing exponentially." This carrier's announcement continues by saying, "...PFC/PFAS losses including those that arise from goods or products containing the compounds, are excluded."

Clearly, these issue concern insurers and we anticipate most carriers will follow suit in adding these endorsements. Carriers adding these coverage endorsements midterm will depend on state laws, so follow your state's Big I's state association for updates. Many agents report that carrier are including these endorsements on renewals.

This article was originally published on independentagent.com in July 2023 and updated in October 2023.

> Nancy Germond,

Executive Director, Risk Management & Education, IIABA wisconsin INDEPENDENT AGENT |

NOVEMBER 2023 | 25

TECHNOLOGY

MASTERING OUTLOOK: TIPS AND TRICKS TO MAXIMIZE EFFICIENCY In a world that relies on digital communication and internet so heavily, Microsoft Outlook stands as the most popular email application. It’s a tool that independent agents spend a majority of their day using. Whether it’s emailing the underwriter information needed for a new or renewal policy, communicating with a client or prospect, working with vendors, contacting their Big I Association, the list goes on and on. There are numerous tools, shortcuts, capabilities within Outlook that everyone should take advantage of. Let’s explore!

1. Majority of Day Spent in Meetings? Color Code Your Calendar If you have an extremely busy calendar, 8+ meetings almost daily, color coding your calendar can be helpful.

You may track internal meetings, client meetings and carrier visits in different colors. This way you can see at a glance what your schedule is like, know which meetings are easier to move/reschedule if needed and determine priority or importance.

For more information, a help guide on color coding your calendar can be found here: bit.ly/48lkMBp 2. Use Quick Parts to Quickly Insert Templated Emails Quick Parts allows you to quickly insert bodies of text (or email templates) into a new email just by typing in a phrase and hitting ‘enter’. Maybe you have a template for when you send an Auto ID card to a client and save it as “Auto ID Card”. After adding the template to Quick Parts, all you do is type “Auto ID Card” in a new email, hit ‘enter’ and voila! The text is added. It is similar to using Email Signatures for templates but the difference being that Email Signatures can include added formatting and also only one signature can be added/ used while multiple Quick Parts selections can be added to one email.

3. Delay Delivery of an Email Sometimes after you write an email, you send it write away and forget the attachment. Or maybe you remember a missing point the second after you click send. Instead of wishing there was an edit-undo button, delay the delivery of your email by 1 minute to avoid these “oops”.

(This can be setup by going to File – Manage Rules & Alerts – New Rule – Appl y rule on messages I send – On this computer only – defer delivery by a number of minutes) 4. Take Advantage of the Outlook Task List to Clear Out Messages and Set Reminders While it’s common to your inbox to keep track of messages that need us to do something like sending a document, making a policy change, answering a coverage question, etc. While inboxes can get cluttered and messages may get buried, rely on the built-in to-do list so you don’t lose track of messages in your inbox.

Just drag and drop the email on Outlook’s task list icon (clipboard with a checkmark in the bottom left), set a due date and add a reminder message, save the task.

Friendly reminder – Outlook calendars should never take the place of an Agency Management System reminder/ activity system.

5. Take Advantage of the Rules & Alerts Tool Rules & Alerts can be best used to help organize your incoming emails, receive mobile notifications or special sounds when you receive an email from a specific email address and so much more. Maybe you want to move all messages you receive where you are CC’d or BCC’d to a separate folder to avoid clutter. If the subject contains a certain word or phrase that can trigger a notification to your mobile device. If you want to customize a rule and automate a task based on a variety of conditions, explore Rules & Alerts.

For more information, a help guide for Quick Parts can be found here: bit.ly/3EGKByu

> Evan Leitch, 26 | NOVEMBER 2023 |

wisconsin INDEPENDENT AGENT

Agency Solutions Advisor, IIAW

© 2020 Society Insurance

Filling them up now so they won’t be hungry later.

Small detail. Big difference.

You know as well as anyone that today’s cut corner can easily turn into tomorrow’s missing piece. With our forty years of experience in specialized coverage and policies developed alongside actual restaurant and bar owners, you can rest assured that your policyholders are protected against the unique risks they face every day.

If you agree that details like these make a big difference, give us a call at 1-888-5-SOCIETY or visit societyinsurance.com.

wisconsin INDEPENDENT AGENT |

SEPTEMBER 2023 | 27

MARKETING

5 WAYS INDEPENDENT INSURANCE AGENCIES CAN OPTIMIZE THEIR MARKETING FOR MOBILE-FIRST CONSUMERS Mobile devices have become an integral part of our lives. Whether we're shopping, researching or communicating, it's increasingly done through smartphones and tablets. For insurance agents, understanding and harnessing the power of mobile marketing is crucial to staying competitive and relevant in the ever-evolving industry. Here are five ways that independent insurance agencies can optimize their marketing strategies to engage clients effectively: 1. Mobile-First Customers

Insurance agents can utilize text messaging for appointment reminders, policy updates and even for providing quick answers to client inquiries.

Implementing a text messaging service can significantly improve customer service and convenience, enhancing the overall client experience. Catalyit.com can help you narrow down the best text messaging platform for your agency. Visit bit.ly/3tG5V53 to see their text messaging guide. You can access all content on this page as an IIAW member, because you receive FREE full access to Catalyit.com.

The rise of mobile devices has created a generation of mobile-first consumers. People now turn to their smartphones for quick answers, making it imperative for insurance agents to have a mobile-friendly online presence. Websites must be responsive and easy to navigate on small screens, ensuring a seamless user experience. If your website isn't mobile-friendly, you risk losing potential clients who expect information at their fingertips.

4. Mobile-Friendly Content

2. Mobile Search and Local SEO

5. QR Codes

Mobile devices have changed the way people search for insurance. Local searches, such as "insurance agents near me," have surged as consumers seek immediate solutions. Recently, TrustedChoice.com reached an incredible milestone, celebrating their 40 millionth insurance shopper. That's 40 million customers using TrustedChoice.com to find a local independent insurance agent! Independent insurance agencies can benefit by focusing on local search engine optimization (SEO) to ensure their agency appears in local search results. This requires optimizing your online listings, claiming your Google My Business profile and encouraging reviews from satisfied clients to enhance your local visibility.

QR codes have made their way into the insurance industry, and you've likely seen a few on the IIAW's marketing materials! Agencies can use QR codes on marketing materials to direct potential clients to relevant web pages, such as landing pages or contact forms.

3. Text Messaging and Customer Service Text messaging has become a preferred communication method for many clients.

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wisconsin INDEPENDENT AGENT

Consumers consume content on mobile devices differently. Insurance agents should consider the mobile format when creating content. Short, easily digestible content, such as infographics, videos and concise blog posts are more likely to engage mobile users. Ensure that you content is visually appealing and loads quickly on mobile devices.

With the majority of consumers using mobile devices for their online activities, agencies can adapt their marketing strategies to cater to their mobile-first audience. Mobile marketing is no longer a luxury; it's a necessity for insurance agents looking to thrive in the digital age.

> Kaylyn Staudt Marketing & Communications Director, IIAW

The security you need.

The name you trust.

OUR PRODUCTS Businessowner’s Commercial Auto Commercial Umbrella Homeowners Personal Umbrella Professional Liability/E&O Workers’ Compensation Pay-As-You-Go options with hundreds of payroll partners!

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/ Not all Berkshire Hathaway GUARD Insurance Companies provide the products described herein nor are they available in all states. Visit www.guard.com/states/ to see our current product suite and operating area.

GOVERNMENT AFFAIRS

STATE REPORT MARKS HIGHEST SURPLUS AND RAINY DAY FUND IN HISTORY The state of Wisconsin has recorded the highest state surplus and rainy day fund balance in state history, according to the latest Annual Fiscal Report released this month by the state Department of Administration (DOA). The state ended its 2023 fiscal year (June 30, 2023) with a positive balance of $7.07 billion and a recordhigh rainy day fund (also known as the Budget Stabilization Fund) balance of $1.8 billion. This should be welcome news for Wisconsin taxpayers and means that the state is well-positioned to weather any future economic downturns, while investing in important priorities.

The DOA State Controller's Office publishes the Annual Fiscal Report (AFR) each year as required by state statutes. The AFR is a report of actual financial data for the fiscal year. The rainy day fund is a savings account that the state can use to cover budget shortfalls during economic downturns. This fund is currently at its highest level ever representing more than 10 percent of the state's overall general fund tax collections.

A substantial state surplus and rainy day fund balance has a number of benefits, including: 1) It provides a cushion against economic downturns.

When the economy slows down and tax revenues decline the state can use its reserves to offset budget shortfalls and avoid cuts to essential services; 2) It allows the state to invest in longterm priorities for its citizens.

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wisconsin INDEPENDENT AGENT

When the state has a healthy financial position it can afford to invest in important areas such as education, transportation infrastructure, and other areas that will benefit the state for years to come; and 3) It provides more flexibility in making budget decisions. When the state has a large surplus it can afford to provide tax relief, increase spending on important programs, or pay down debt.

The record-high surplus to date is due to a number of factors, including strong economic growth, federal stimulus funding, and higherthan-expected tax revenues. The state has also been conservative in its spending which has contributed to building up its reserves.

Some of this is due in part to a split state government in the state where the Republicancontrolled Legislature has a different vision from the Evers administration over how to utilize these additional state resources. Legislative Republicans want the bulk of the extra money to be used towards major income tax relief, while Democrats prefer to boost funding in areas such as K-12 education, child care and housing infrastructure, while also providing tax relief for middle to lower income earners.

Needless to say, the state's strong financial position has given both Governor Evers and the Legislature more flexibility in making budget decisions rather than having to make budget cuts.

The most significant challenge facing the state at present is that neither side appears to be able to reach a compromise with the other side on how to best allocate the additional resources. Governor Evers recently proposed a comprehensive workforce plan that would use the state’s surplus to specifically invest in stabilizing the child care industry, expand paid family leave, and support higher education for training, retention and recruiting efforts for the state’s workforce. Republicans subsequently unveiled their own plan that would reduce income tax rates, increase the child and dependent care tax credit, raise the private school tuition deduction, and streamline the regulatory process for obtaining a license for health and business professionals, just to name a few.

•

The current Budget Stabilization Fund balance was maintained at $1.8 billion, the largest in the state’s history and more than five times larger than the balance at the end of FY 2018.

•

State general fund tax collections in FY 2023 increased by 2.1 percent over the prior year and were very close to the most recent estimates projected on May 15, 2023.

For a glance at the 2023 Annual Fiscal Report, visit bit.ly/3Qx0DBL. Overall, Wisconsin's strong financial position is good news for the state's long-term economic health even in the midst of ongoing challenging economic conditions.

Other noteworthy items from the AFR report include: •

The state’s undesignated general fund balance at the end of Fiscal Year (FY) 2023 was $7.1 billion, nearly 65 percent higher than the prior year’s balance of $4.3 billion, and more than 12 times larger than the balance at the end of FY 2018.

>M isha Lee IIAW Lobbyist

wisconsin INDEPENDENT AGENT |

NOVEMBER 2023 | 31

HUMAN RESOURCES

THE CRUCIAL ROLE OF GOAL SETTING & FEEDBACK FOR INDEPENDENT INSURANCE AGENCIES In the competitive realm of insurance, where market dynamics are ever-changing, goal setting and feedback stands as the compass guiding independent insurance agents toward success.

Whether you're an experienced professional or a newcomer to the industry, the importance of setting clear, achievable goals cannot be overstated. Goal setting and providing feedback is paramount for independent insurance agents and how it shapes their path to success.

1. Vision and Direction: Goal setting provides a clear vision and direction. It helps independent insurance agents define what they want to achieve, be it expanding their client base, increasing revenue, or diversifying their product offerings. With well-defined goals, agents can focus their efforts and resources in the right direction, avoiding aimless pursuits and ensuring every action contributes to their ultimate objectives.

2. Motivation and Focus: Goals serve as powerful motivators. When specific and challenging goals are set, they ignite an agents’ drive and determination. The pursuit of these objectives keeps them motivated, even in the face of challenges. Goals create a sense of purpose, instilling a passion for continuous improvement and innovation, which are essential in the ever-evolving landscape of insurance.

3. Measuring Progress: Clear goals offer measurable milestones. Independent agents can track their progress objectively, evaluating their successes and identifying areas that need improvement.

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This tracking mechanism is invaluable; it allows agents to assess their strategies, adapt to market demands, and fine-tune their approaches to achieve their goals more effectively.

4. Enhanced Time Management: Goals help agents prioritize tasks. By knowing what they aim to achieve, they can allocate their time efficiently.

This prevents time wastage on activities that don’t contribute to their goals, ensuring every working hour is dedicated to actions that propel them closer to success. Effective time management leads to increased productivity and, ultimately, greater profitability.

5. Building Client Relationships: Setting goals isn’t only about financial targets. It can also include objectives related to customer satisfaction and relationship-building. Agents can set goals to enhance customer service, increase client engagement, and foster long-term relationships. Satisfied clients are more likely to provide referrals and repeat business, creating a sustainable client base.

6. Adaptability and Innovation: In the insurance industry, staying ahead means embracing innovation and being adaptable. Setting goals that include learning about emerging technologies, understanding market trends, and exploring new insurance products positions agents as industry leaders. Goals encourage agents to step out of their comfort zones, promoting innovation and ensuring they are wellprepared for the future.

7. Financial Stability and Growth: Ultimately, the overarching goal for any independent insurance agent is financial stability and growth.

Whether it’s achieving a specific income target or expanding the business to new markets, financial goals are the backbone of an agent's aspirations.

Setting realistic yet ambitious financial goals motivate agents to work diligently, nurturing their businesses and securing their financial future.

8. Regular Feedback Loop: Feedback is a powerful tool for agent development. It should be timely, specific, and constructive. Regular feedback sessions allow managers to recognize accomplishments, address challenges, and provide guidance for improvement. Constructive criticism, when delivered with empathy, helps an agent understand their weaknesses and motivates them to work on areas needing enhancement.

9. Constructive Criticism and Growth Mindset: All employees should be encouraged to embrace a growth mindset, wherein challenges are

viewed as opportunities to learn and improve.

Constructive criticism should be seen as a steppingstone for growth rather than a setback.

Managers can play a pivotal role by providing feedback that highlights areas for improvement while emphasizing the potential for development and learning.

Goal setting is not just a task; it’s a mindset that shapes the success of independent insurance agents. By setting clear, aligned, and achievable goals coupled with regular, constructive feedback forms the bedrock of a successful and motivated workforce. Goal setting isn’t merely a roadmap; it’s the driving force that propels independent insurance agents toward unparalleled success in the competitive world of insurance. The IIAW has a fantastic list of resources available for members like Performance Appraisal Forms, 360 Degree Feedback Forms and more. Please reach out to diana@iiaw.com for more information. > Diana Banaszynski, HR Business Partner, IIAW

COMMENTARY FROM COUNSEL

EEOC ISSUES PROPOSED GUIDANCE ON WORKPLACE HARASSMENT The time is right to update the anti-harassment policy in your agency’s employee handbook.

On September 29, 2023, the Equal Employment Opportunity Commission (EEOC) released proposed enforcement guidance on harassment in the workplace. This is the first time the Commission issued guidance on harassment by majority vote since 1999. The proposed guidance is open for public comment until November 1, 2023, and then it likely will be finalized.

• The EEOC enforces federal laws that prohibit employment discrimination (including harassment) based on protected characteristics such as sex, religion, race, disability, and age (40 or over). An employee may file a charge of discrimination with the EEOC against its current or former employer, which triggers an investigation by the EEOC. EEOC guidance, such as the proposed harassment guidance, serves as a resource for EEOC staff who investigate claims of discrimination. Such guidance may also be referenced by courts deciding harassment cases, although it does not have the force of law.

Notably, the proposed guidance reflects legal updates and the increase in remote work following the COVID-19 pandemic: •

•

The guidance reminds employers that Bostock, a U.S. Supreme Court case from 2020, held that Title VII’s prohibition on discrimination “because of sex” encompasses discrimination on the basis of sexual orientation and gender identity. Title VII therefore bars harassment based on sexual orientation and gender identity, according to the EEOC guidance. An example of this type of harassment is the intentional and repeated use of a name or pronoun that is inconsistent with an employee’s gender identity.

And with the increase in remote work, the EEOC lists examples of harassment in a virtual work environment: sexual comments

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made during a video meeting; racist imagery that is visible in the employee’s workspace while the employee participates in a video meeting; and sexual comments made during a video meeting about a bed being near an employee in the video image. In addition to video conferencing, harassment can occur via an employer’s email system, instant message system, and other work-related systems or platforms.

An employee’s personal social media use can also contribute to workplace harassment.

The EEOC states that while employers are generally not responsible for conduct that occurs outside of the work context, they can be liable if such conduct impacts the workplace. The guidance provides the following example: if an Arab American employee is the subject of ethnic epithets that a coworker posts on a personal social media page, and either the employee learns about the post directly or other coworkers see the comment and discuss it at work, then the social media posting can contribute to a racially hostile work environment.

So what now? First, the guidance is not the law, nor is it final. That said, it is likely to become final with minimal changes, notwithstanding anticipated voluminous comments. And, once final, it not only guides EEOC’s own enforcement efforts, but also influences judges’ analyses of harassment claims under federal law. You can mitigate the risk of similar harassment occurring at your agency by taking proactive measures, such as by updating your policies and training employees, in accordance with the new EEOC guidance.

>J osh Johanningmeier IIAW General Counsel

HR SOLUTIONS FOR YOUR AGENCY

CUSTOMIZED EMPLOYEE HANDBOOK Establishing policies and procedures is one of the best ways to improve workplace communication, set employee expectations and promote fairness, leading to a more productive workplace. Whether it’s providing policy updates or creating a handbook for the first time, the IIAW will work with you to craft and brand your employee handbook to your agency. You’ll also have to option to add on an annual review to update your custom handbook.

Get Star ted Today: iiaw.com/HRSolutions

Questions?

Contact our HR Business Partner, Diana Banaszynski, diana@iiaw.com for more information.

News Members in the

ACUITY EARNS INDUSTRY LEADERSHIP AWARDS FROM ACORD

Sheboygan, WI (10/19/23) - Acuity earned industry leadership awards from ACORD, which were presented at ACORD Connect 2023. ACORD is a nonprofit organization recognized as the global standard-setting body for the insurance and related financial services industries.

Susan Matzat, Systems Architect and member of Acuity’s Agency Interface Team, was honored with the ACORD Community Leadership Award. The award is presented to individuals demonstrating leadership in the areas of standards development, advocacy, volunteerism, and/or implementation, recognizing those who have gone above and beyond in guiding the insurance industry toward greater clarity in the sharing of insurance data.

"The ACORD Awards celebrate organizations and individuals who have demonstrated outstanding achievement in ACORD standards implementation and advocacy," said Malou Soriano, SVP Business Development, ACORD. “Susan Matzat has demonstrated that in the P&C community. Through her leadership and time dedicated to ACORD’s P&C Data Standards Advisory Group, Susan played a key role in standardizing the representation of enhanced and reduced Uninsured and Underinsured Motorist coverage options across states, which now serves as a valuable asset for our ACORD P&C members.”

“We congratulate Susan on her well-deserved recognition and for being a champion of ACORD standards,” said Acuity President Melissa Winter.

“Through her efforts and the efforts of everyone involved with agency interface, Acuity has established our company as a leader in agency connectivity technology.”

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wisconsin INDEPENDENT AGENT

Acuity also received an ACORD Implementation Excellence Award for policy download modernization. Using ACORD-based standards and services, Acuity supports policy download with over 20 different agency management systems, ensuring this crucial part of the insurance processing workflow is supported in the software solution of choice of the insurer’s agency partners.

“Acuity is honored to again be recognized for our leadership in leveraging ACORD standards,” said Marcus Knuth, Acuity Vice President-Enterprise Technology.

“We are committed to being the easiest company for agents to do business with by supporting the systems and processes they already use in their agencies,” said Acuity CEO Ben Salzmann.

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures nearly 150,000 businesses, including nearly 350,000 commercial vehicles, and more than 550,000 homes and private passenger autos across 31 states. Rated A+ by AM Best and S&P, Acuity employs more than 1,600 people.

SECURA INSURANCE ANNOUNCES EXIT FROM PERSONAL LINES INSURANCE MARKET

Neenah, WI (10/20/23) - SECURA Insurance announced that it is exiting the Personal Lines insurance market over a 26-month process.

“After detailed discussions and evaluation of many long-term scenarios, we made the decision to step away from Personal Lines. This decision is not easy, yet it is one that will position SECURA for long-term profitability so we continue to be a strong, stable company for our associates, agents, and policyholders,” said Garth Wicinsky, SECURA President & CEO. “This change will allow us to focus our efforts on continuing to provide exceptional service and products for Commercial Lines, Specialty Lines, Agribusiness Lines, and Farm Lines.”

Effective Nov. 1, 2023, the carrier will no longer accept any new home and auto insurance clients. Over the next two years, the company will be nonrenewing existing Personal Lines business according to all

applicable state regulations, for a complete exit by Dec. 31, 2025. Current Personal Lines policyholders will receive a notice of nonrenewal 60 days prior to their renewal and can work with their independent insurance agent to find an alternate insurance company.

The company is working with all affected employees to find alternate positions within the company.

SECURA continues to provide a broad range of competitive commercial, agribusiness, farm, nonprofit, and special event insurance through its network of independent insurance agencies across 13 states.

ABOUT SECURA INSURANCE | SECURA Insurance, headquartered in Neenah, Wis., is a regional group of property-casualty insurance companies operating in 13 states. Approximately 550 independent insurance agencies represent the group, which provides a broad range of competitive commercial, agribusiness, farm, nonprofit, and special events products. SECURA Insurance is known for providing exceptional service to its agents and policyholders since 1900, and is rated A (Excellent) by A.M. Best for its excellent ability to meet policyholder obligations. It is a Ward’s Top 50 company for outstanding results in financial performance and consistency over a five-year period, and it is a certified Great Place to Work. Visit www. secura.net to learn more.

AM BEST UPGRADES CREDIT RATINGS OF MEMBERS OF PENN NATIONAL INSURANCE COMPANIES

Oldwick, N.J. (10/26/23) - AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “a” (Excellent) from “a-” (Excellent) of Pennsylvania National Mutual Casualty Insurance Company (Penn Mutual), its subsidiaries, Penn National Security Insurance Company and Founders Insurance Company, and its mutual company affiliate, Partners Mutual Insurance Company (Waukesha, WI), collectively referred to as Penn National Insurance Companies (Penn National). Concurrently, AM Best has upgraded the Long-Term Issue Credit Rating to “bbb+” (Good) from “bbb” (Good) of $29.5 million, 9.5% surplus notes, due 2034, issued by Penn Mutual.

All companies are headquartered in Harrisburg, PA,

unless otherwise specified. The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect Penn National’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating upgrades reflect an enhanced view of Penn National’s overall balance sheet strength, which is supported by its strongest level of riskadjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The improved view of the balance sheet strength also considers the group’s strong capital position, organic surplus growth, prudent investment portfolio and favorable reserve development in recent years.

Penn National’s ratings are supported by the group’s solid operating performance in recent years, driven primarily by investment income. Penn National is a multiline property/casualty writer with a diversified product mix of commercial and personal lines offerings, with personal and commercial auto as its largest lines of business. The group remains geographically concentrated with approximately 40% of its premiums written in its home state of Pennsylvania.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings.

For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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Western National Insurance. The power of nice. www.wnins.com

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PERSONAL | BUSINESS The information presented here is intended for informational purposes only and does not supersede any provisions in your insurance policy and related documents. See applicable terms and conditions or your policy provisions for details.