October 2016 Wisconsin Independent Agent Magazine

wisconsin

INDEPENDENT AGENT OCTOBER 2016

OUR 2016-17 IIAW EXCLUSIVE COMPANY SPONSORS SEE PAGE 4

West Bend knows Preferred Risk Types: – Wood product manufacturers that primarily specialize in manufacturing finished wood products or components – Secondary woodworking operations that machine, cut, shape, turn, glue, finish, or otherwise work with dimensional lumber to manufacture a finished or component product

Woodworking.

At West Bend, we’re proud of our broad base of knowledge when it comes to commercial risks. Over the years, however, we’ve developed extensive expertise of certain risks and the skills needed to underwrite them.

That’s why we’re more competitive in writing these classes.

Like woodworking.

If you have a woodworking risk, contact your West Bend underwriter. We look forward to sharing our expertise with you, and providing the best coverages necessary to protect your valued customers.

wisconsin

INDEPENDENT AGENT OCTOBER 2016 Eric Schwartz, Editor

2016-17 IIAW Exclusive Company Sponsors! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Open Door Policy NAIC Drafting ‘Unreasonable’ Model Act on Cyber Security . . . . . . . . . . . . . . . . . . . 21 Commentary From Counsel Restrictive Covenants Revisited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Sales Simplify Your Message to Connect With Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Government Affairs Toll Roads Coming to Wisconsin? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Virtual University Amazing Customer Engagement Ideas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Industry Service Arvid R. ‘Dick’ Tillmar Retires . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Technology New Technology: A Double-Edged Sword for Insurance Companies . . . . . . . . . . . . 30 Agency Management Confessions of a CSR Who Can Sell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Members in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Errors & Omissions E&O Happens: Simple Tips to Prevent Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 In Memoriam James A. Mangold Jr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 Community Service West Bend Mutual Raises More Than $644K for MACC Fund . . . . . . . . . . . . . . . . . 42 Marketing Your Logo Is Your Brand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 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 2016-2017 Executive Committee President....................................................... Matt Weimer 100 North Corporate Dr., #100, Brookfield, WI 53045 President-Elect................................. Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Secretary-Treasurer ............................................ Jason Bott 330 East Kilbourn Ave., Milwaukee, WI 53202 Chairman of the Board .................................. Steve Leitch P.O. Box 85, River Falls, WI 54022 State National Director ................................ Linda Steiner 555 Main Street #320, Racine, WI 53403 2016-2017 Board of Directors Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Cindy Burns 500 South Central Ave., Marshfield, WI 54449 Gerald Couri 379 West Main Street, Waukesha, WI 53186 Jack Demski 101 East Grand Ave. #11, Port Washington, WI 53074

Jack Riesch P.O. Box 1610, Waukesha, WI 53187-1610

On The Cover…

Made in Wisconsin is much more than a physical place. Not every Exclusive Company Sponsor was founded in Wisconsin but they have certainly made a huge, lasting impact on the Badger State by supporting the IIAW and the independent agency system. Our great independent agents, in turn, make these bedrock companies even stronger by helping to insure and protect their customers. Twice a year we recognize our company sponsors in this magazine for their financial backing and for being our strategic partners, but our gratitude extends year-round. Learn more about our Exclusive Company Sponsors starting on page 4.

> ADVERTISERS & INFORMATION AAA Wisconsin ................................................ 46 Acuity Insurance ............................................ 47

Pam Utpadel 100 West Lawrence St. Suite 313, Appleton, WI 54911

Amerisafe Insurance ...................................... 44

Darrel Zaleski 4233 Southtowne Drive, Eau Claire, WI 54701

Axley Brynelson ............................................. 39 Badger Mutual ................................................ 27

2016-2017 Committee Chairs Agency Services ............................................ Kim Dandrea N19 W24200 Riverwood Dr., Waukesha, WI 53188 Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949 Emerging Leaders ...........................................Jack Demski 101 East Grand Ave. #11, Port Washington, WI 53074 Employee Benefits.......................................... Mike Farrell 1300 South Green Bay Rd., Racine, WI 53406 Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045 Carrier Relations ......................................... Kevin Murray 525 Junction Road, Madison, WI 53717

Ryan McClone 150 Main St. Suite 102, Menasha, WI 54952

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

Marc Petersen 15171 W. National Ave., New Berlin, WI 53151

Technical ...............................................Timothy Kakuska P.O. Box 547, La Crosse, WI 54602-0547

Berkshire Hathaway/Guard ............................ 20 EMC Insurance................................................ 36 IIAW Continuing Education ............................. 28 IIAW Prelicensing............................................ 43 Partners Mutual ............................................. 37 Pekin Insurance............................................... 31 Robertson Ryan & Associates......................... 35 Save The Date: David Spade ..............Back Cover SECURA Insurance .......................................... 22 The IMT Group ................................................ 44 West Bend ........................................................ 2 Western National............................................ 40

WISCONSIN INDEPENDENT AGENT

OCTOBER 2016 | 3

INTRODUCING OUR

2016-17 IIAW EXCLUSIVE COMPANY SPONSORS

Your membership in the palm of your hand.

AAA Mobile puts all the perks of your AAA Membership at your fingertips. Find discounts at nearby shops and restaurants, or search for hotels in far away places.

Your journey begins with a simple download.

Download the AAA Mobile App for iPhone or Android today to bring your membership to life.

AAA Mobile Key Features: Membership info on your phone Push-button roadside assistance Access to 50,000 AAA Approved restaurants and hotels

To learn more contact: Heidi Nienow Regional Sales Director 608-828-2614 hqnienow@aaawisconsin.com

Discounts at over 164,000 locations Find AAA Approved Auto Repair, AAA branch locations and cheap gas

15-MS-2027 WISCONSIN INDEPENDENT AGENT

OCTOBER 2016 | 5

THE NEWEST FREE ACUITY U CE COURSE. NOW PLAYING!

WWW.ACUITYU.COM

ACUITY

CE VIDEO

CHOOSE A CHAMPION Jimmy Walker

2016 PGA Champion Burns & Wilcox Brand Ambassador

Expertise, perseverance and hard work separates the contenders from the pretenders. Access industry experts that have the widest variety of commercial, professional and personal solutions. Whatever the challenge, you can perform like a champion with Burns & Wilcox.

Burns & Wilcox, the leader in specialty insurance.

burnsandwilcox.com

Brokerage | Binding | Commercial | Professional | Personal | Risk Management Services

Wisconsin’s Independent Agents We Appreciate All The Value You Deliver

• Bringing valued expertise • Local support of customers • Contributing to your communities

THE HANOVER INSURANCE GROUP Exclusively distributing through independent agents since 1852

hanover.com

K R O W R R U U O O Y T U O B A IS S E I R R O W e Insuranc s s e in s u nd B , Home a o t u A e e Fr Best · Worry t) by AM n e ll e c x st ‘A’ (E e Midwe h t · Rated in s r yea ted 130+ n la p s t ine years n · Roo s u io v e ts or pr ent Agen growth f d e n e iv p it e s d o · P WI In hips with s r e n t r rce a p gency fo a · Strong r u o r o pp f mobile a k in L T · IM with business o d o t ! y · Eas ee future r F y r r o W itted to a · Comm

Local Independent Agents interested in learning more about The IMT Group’s products can contact Matt Casey at (800) 274-3531, ext. 897.

WWW.IMTINS.COM

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

Be Independent, not alone.

With unwavering support and outstanding service, Integrity is fiercely dedicated to independent agents like you. Our comprehensive products and services make it easy for you to be an effective entrepreneur, an accomplished leader, a successful salesperson. All so you can be at your best whenever your customers need you. We’re behind you, beside you, with you all the way, each and every day. The way it should be.® For more information, connect with Cathy Colòn at 920.968.8326 or ccolon@imico.com integrityinsurance.com

John Murphy Customer Relationship Management President

Tricia Griffith Chief Executive Officer

Pat Callahan Personal Lines President

OUR AGENTS ARE LEADERS

BY DESIGN PROGRESSIVE IS PAVING THE WAY From our full suite of products and marketing tools to our top-rated claims and accurate pricing, it’s no wonder why, for more than 75 years, we’ve earned customers’ trust as one of the top insurance carriers in the nation.

Connect.ForAgentsOnly.com Progressive Casualty Ins. Co. & affiliates.

16A00496.V03_IIA_of_WI_8.5x11_4C.indd 1

9/8/16 3:27 PM

2016-17 IIAW EXCLUSIVE COMPANY SPONSORS

Positioned for Growth enuine people – Known for employing the best in the business and G offering top-notch service Highly rated – A (Excellent) by A.M. Best and earned Ward’s Top 50 Performers list Easy to do business with – Ranked among leading peers by agents for making business easier for 10 years Exceptional claims service – Earn a “Perfect 10” most often when asking claimants about their experience Partner with top agencies – Work with 475 independent agencies, only the finest in their respective markets Broad product portfolio – Offer broad-ranging solutions for Commercial, Personal, Farm-Ag, and Specialty clients Serving 12 states – Founded in 1900

Dave Gross

Genuine People If you’ve been in the insurance business any length of time, you likely know SECURA. Its people are among the best in the industry, knowledgeable, and making it easy to write and retain business is their top goal. To that end, they are responsive, flexible, and build real relationships. If you don’t know that firsthand, ask someone who works with the company. You’ll be happy you did.

Strong and Highly Rated The company aims to outperform the industry overall on top- and bottom-line growth and typically does. Its strength is further evident as A.M. Best rates it A (Excellent) for the past 12 years. Ward includes SECURA in its Top 50 list, recognizing outstanding financial performance.

Plus, agents rank the company among leading competitors for making business easier.

Exceptional Service SECURA’s people are committed to taking care of policyholders when offering relevant insurance solutions, sharing safety resources, and especially when handling claims fairly and promptly. Policyholders appreciate the personal and compassionate service they receive.

Most often, the company’s claimants rate it a “Perfect 10” when asked about their claims experience. Perhaps it’s because of the personal phone call they receive within one hour of reporting an accident or loss, or maybe it’s because of the lengths someone goes to restore life to normal. This refreshing approach earns the trust of customers every day.

professional development opportunities for agents to increase sales and profits, with follow up to help put what they learned into practice.

Broad Product Portfolio SECURA offers Commercial, Personal, Farm-Ag, and Specialty insurance products and services. The company is geared to grow in all lines of business in Wisconsin.

Commercial Lines is the carrier’s cornerstone and largest business unit serving contractors, retail, light manufacturers, service providers such as restaurants and dry cleaners, and numerous other markets. Its consultative approach to Risk Management and its Work Comp Nurse Hotline set it apart from others, giving agents a unique offering as well.

Personal Lines is SECURA’s second-largest segment, with its MILESTONE® home and auto package. This convenient single policy features lifestyle solutions for travel, toys, jewelry, art, and more. This premium package, ideal for Middle America, gives agents an edge in attracting and retaining customers.

Farm-Ag Lines, grown from the company’s farm heritage, serves a wide range of dairy, crop, hog, and hobby farms, plus seed dealers, ag transport, custom farming, and dairy products manufacturing. Its Specialty Lines covers a variety of unique risks such as nonprofits, sports and recreation, food pantries, campgrounds, fitness centers, food trucks, and security systems, as well as employment practices liability insurance and professional liability coverage for directors and officers.

Momentum is Strength Partner only with Top Agencies Committed to the independent agency model, the company does business with more than 475 agents in 12 states. Agents value their SECURA contract because of the company’s relationship focus and service. The carrier’s extensive agent training programs also provide WISCONSIN INDEPENDENT AGENT

Agents know SECURA is a stable, long-term market for them. Its growth trend is a result of a history of investing in people, whether building successful relationships with agents or employing the very best. In the future, you will see the company continue devoting resources to people, products, and technology to stay in step with the dynamic market.

OCTOBER 2016 | 13

2016-17 IIAW EXCLUSIVE COMPANY SPONSORS

SENTRY INSURANCE Chief Exectutive Officer: Pete McPartland, Chairman of the Board, President and CEO Company Headquarters: Stevens Point, WI A.M. Best Rating: “A+” (Superior) Company Website: www.Sentry.com

Peter McPartland

Company Information Sentry Insurance, a Mutual Company, was founded in 1904 by members of the Wisconsin Retail Hardware Association to provide quality insurance for its members. Throughout our more than 100-year history, we have made Wisconsin our home. Sentry is one of the largest and strongest mutual insurance companies in the United States. With assets of $14 billion and a policyholder surplus of more than $4.2 billion, Sentry Insurance is rated A+ by A.M. Best, the industry’s leading rating authority.

For the 24th consecutive year, we maintained our A.M. Best rating of A+ and remain one of the most strongly capitalized companies in the insurance industry. At the same time, we continued to invest heavily in our business and honor our commitment to the community.

Sentry Insurance Benefits and Services Wisconsin Values You have grown your agency in Wisconsin. Just like you, Sentry Insurance is proud of our Wisconsin heritage. Sentry employs nearly 4,000 associates in 44 states, with more than half in Wisconsin. Our associates are dedicated to Sentry Insurance. In central Wisconsin, more than 400 of our associates have 25 years or more of service at Sentry.

14 | OCTOBER 2016

Your Customers Will Benefit Sentry Insurance offers the expertise to help you develop an insurance program designed to fit your customers’ needs.

Whether their exposures apply to property, general liability, auto, workers’ compensation, we will work with you to design a plan that works for them.

Claims Processing You will have access to our industry-leading claims and technology systems. Sentry Insurance has made a powerful promise to you and your customers to be there when needed.

Safety Programs Help your customers save lives, time, and money with Sentry’s safety experts. Our team of professional safety consultants guides your customers through risk scenarios, regulatory demands, and training or program gaps.

WISCONSIN INDEPENDENT AGENT

SFM WI Indep. Insurance ad-agn-0116-outline fonts.indd 1

1/29/2016 10:07:06 AM

2016-17 IIAW EXCLUSIVE COMPANY SPONSORS

SOCIETY INSURANCE Location Of Company Headquarters: Fond du Lac, WI Founded: 1915 Senior Managers: Rick Parks, President and CEO William Reeves, Executive Vice President and COO Heather Boyer, Vice President – CFO and Treasurer Mike Zajicek, Vice President – Workers Compensation Claims Bill Bunzel, Vice President – Property, Auto and Liability Claims Amy Collett, Vice President – Human Resources & Administration Thomas Konop, Vice President – Information Systems D. Holly Lifke, Vice President – Commercial Lines Underwriting Dina S. Schultz, Vice President – Sales and Marketing Dominic Weber, Vice President – Actuary Products Company Specializes In: Society Insurance writes only commercial lines. As a niche market leader, the company has developed in-depth expertise in its core classes of business. Supported by long-term trade association endorsements from the Wisconsin Restaurant Association and the Tavern League of Wisconsin, Society writes policies for more than 25 percent of the food and beverage establishments in Wisconsin. Society’s strong tradition of association partnerships and niche expertise also extends into hotels and motels, grocery and convenience stores, artesian contractors and food processors, auto repair garages and health care clinics. The protection Society offers for its core classes of business is consistently some of the most comprehensive on the market.

Workers compensation insurance was the first coverage Society wrote when it was founded in 1915, and the company maintains a strong presence in this complicated and specialized line of business. Society’s claim management process keeps costs low for policyholders by stressing early intervention, advocating a quick return to work and obtaining the best medical provider discounts.

Loss control services are customer-focused and tailored to the needs of both small and large businesses. Society also offers a number of internet-based safety tools for customers of all sizes.

This combination of strong claim management and tailored loss control is a true competitive advantage that eliminates many problems business owners and agents may otherwise experience with workers compensation insurance.

Outlook for the Company’s Future Society Insurance continues to build on its strength as a regional carrier committed to service and value for its customers. In 2016, this focus helped Society Insurance continue to grow at a steady, sustainable pace. Since 2010, the company has increased direct

16 | OCTOBER 2016

Rick Parks

written premium by more than 21 percent and policyholder surplus by nearly 40 percent. As a niche market leader, Society does not try to be all things to all businesses. Rather, the company concentrates on doing what it does better than anyone else—insuring its core niches—and will continue to do so going forward. Because of this focus on niche markets, the company better understands the lines of business it writes and has exceptional knowledge and experience with issues that are likely to arise.

Society looks forward to new opportunities and growth in 2017, as the company expands into the state of Tennessee. A select group of agents have been appointed to attract and service niche customers.

Employees are already in place to provide local service, before the first policy is written. It is the company’s mantra to exceed expectations for all involved in this new venture. As Society explores new and innovative approaches to writing business and servicing customers in Tennessee, successful ideas and strategies will be applied in existing states as well.

Other Comments In an industry not known for its creativity, Society isn’t afraid to be different. And it’s the small details at Society—they’re in each policy, and they’re in the way the company underwrites and handles claims—that set the company apart. Society knows that agents and policyholders have unique needs that don’t always fit neatly within a strictly defined category, so Society offers insurance uniquely tailored to the businesses they write. Sharing core values and a commitment to service with agency and association partners defines Society Insurance as a company where the small details make a big difference to agents and policyholders.

Company Website: societyinsurance.com

WISCONSIN INDEPENDENT AGENT

2016-17 IIAW EXCLUSIVE COMPANY SPONSORS

THE TRAVELERS COMPANIES INC. Location Of Company Headquarters: Hartford, CT Founded: 1853 Officers: Lorie Kates, Regional President George Hogan, Regional Director Paul Kyrilis, Regional Vice President - Commercial, Technology, Construction, Public Sector Lorie Kates Linda Petrillo, Regional Vice President - Personal Insurance Lisa Pechan, Regional Vice President - Select James Gallagher, Regional Vice President - National Accounts Casualty Mike Powers, Regional Vice President - National Property John Tsourmas, Zonal Vice President - Excess Casualty Allen Warner, Regional Vice President - Inland Marine Brendan Dunican, Regional Vice President - Ocean Marine Paul Andriscin, Regional Vice President - Boiler & Machinery Beth Printz, Regional Vice President - Claims Gail Schroeder, Regional Vice President - Bond & Specialty Insurance Steve Ringler, Regional Risk Control Director Outlook for the Company’s Future Travelers is an insurance leader, committed to keeping pace with the ever-changing needs of our customers, and anticipating their needs for the future. There is no stronger testament to our dedication to protecting customers from loss than our continued innovation and ability to transform our industry. Travelers is also committed to helping agents grow and be successful. Our people are professionals focused on delivering timely and professional service to you and our customers.

We are local. With over 200 employees in Wisconsin, Travelers delivers the many attributes of a large national carrier through one of the best-staffed field offices in the state. Our staff understands the Wisconsin marketplace and is committed to developing productive relationships with you and our insureds while delivering products and services your customers are looking for. For example: 1. Travelers is the #1 writer of Commercial Lines & Workers Comp in WI.* 2. Travelers has received two “Buyers Choice Awards” from Business Insurance magazine, taking home the top honors among insurers in both the Workers Compensation and Commercial Auto categories.

4. Travelers recently opened a new ConciergeClaim Nurse® location in Milwaukee. ConciergeClaim Nurse® is a comprehensive workers compensation claim program designed to simplify the claim process for injured employees, enabling them to get back to work quickly and safely.

5. Travelers Claim is continually developing innovative tools and resources designed to help you and your customers stay safe, including our Prepare and Prevent site on Travelers.com, and our new Weather Alerts. Offered through Weather Services International (WSI), a professional division of The Weather Company, the weather alerts are sent to subscribers of the service in advance of an approaching storm reaching a particular location.

Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance that behaves the same way — evolving to keep in step with life and business as they change. Protect your clients under the red umbrella!

Company Website: www.Travelers.com * 2015 AM Best Data

3. In September 2016, the Travelers Institute is launching a new cybersecurity guide to help businesses and organizations prepare for and respond to evolving cyber incidents. Cyber: Prepare, Prevent, Mitigate, Restore is a multiyear, educational initiative launched by the Travelers Institute in April 2016 to raise awareness about cybersecurity and cyber insurance solutions.

WISCONSIN INDEPENDENT AGENT

OCTOBER 2016 | 17

2016-17 IIAW EXCLUSIVE COMPANY SPONSORS

WEST BEND MUTUAL INSURANCE COMPANY Location of Company Headquarters: 1900 South 18th Avenue, West Bend, WI 53095 Founded: April 1894 Officers: Kevin Steiner, President and Chief Executive Officer Dale Kent, Executive Vice President and Chief Financial Officer Tracey Berg, Senior Vice President and Chief Information Officer Gary Alexander, Vice President - NSI® Bonds Heather Dunn, Vice President and Controller David Ertmer, Vice President - Claims Kevin Steiner Rick Fox, Vice President and Chief Actuary Paul Hingtgen, Vice President - Argent® Rob Jacques, Vice President - Commercial Lines Christopher Zwygart, Vice President and Chief Risk Officer Jim Keal, Vice President - Argent Debra Cahoon, Assistant Vice President - Human Resources Gary Klein, Vice President - NSI Mike DeLaney, Assistant Vice President - Argent Loss Control Jim Pauly, General Counsel and Secretary Scott Grinna, Assistant Vice President – PAS Program Management John Reyzer, Vice President – NSI Finance Mike Kapfer, Assistant Vice President – NSI Underwriting Jim Schwalen, Vice President - Personal Lines & Marketing Jason Moore, Assistant Vice President – IT Kelly Tighe, Vice President – Sales Laura Morrow – Assistant Vice President – NSI Claims Derek Tyus, Vice President - Chief Investment Officer Dave Nettum, Assistant Vice President – Argent Claims

Products Company Specializes In: West Bend offers a broad-coverage personal lines package with multiple rating tiers for home and auto. Many innovative enhancements and features are also available. The company also offers a full range of commercial products and services, as well as specialty lines, such as social services, sports and leisure, special events, childcare, and bonds through NSI, its specialty division. Its monoline workers’ compensation division, Argent, works closely with agents and policyholders to determine their most critical workers’ compensation needs and improve results through loss control, medical cost containment, and education.

Outlook for the Company’s Future West Bend is well positioned to capitalize on the current market conditions. In 2016, the company maintained its A (Excellent) rating

by A.M. Best. A.M. Best also recognizes West Bend as one of the 100 largest property/casualty insurers in the country. West Bend was again named to Ward Group’s list of the 50 top-performing property/ casualty insurers, and is listed as a top company in a nationwide easeof-doing-business survey. The company will strive to maintain these rankings by advancing its technology, products, and services, while retaining its small-company, relationship-driven culture.

18 | OCTOBER 2016

Company Philanthropy The West Bend Independent Agents’ Fund was established in 2006 for nonprofit organizations served by the independent insurance agents who represent the company. Grants from the fund are aimed at improving these organizations and the lives of those served by them. In 2016, West Bend awarded more than $92,000 to nonprofit organizations supported by its independent agents. Grants awarded from the Independent Agents’ Fund now total more than $1 million.

In August 2016, West Bend, along with independent insurance agents who represent the company and key business partners, came together to raise more than $644,000 for the MACC Fund, Midwest Athletes Against Childhood Cancer. Since 2006, West Bend and the company’s independent agent partners have helped raise $1.7 million for the MACC Fund.

Company Website: thesilverlining.com

WISCONSIN INDEPENDENT AGENT

YOU

2016-17 IIAW EXCLUSIVE KNOW OUR COMPANY SPONSORS

SERVICE-CENTERED WAY OF DOING BUSINESS

We form trusting relationships built on loyalty and integrity. What sets us apart is far more than what we do — it’s how we do it.

Join Us MEGAN WETLI MEGAN.WETLI@MOTORISTSGROUP.COM | 614-225-8389 CHRISTOPHER SNYDER CHRISTOPHER.SNYDER@MOTORISTSGROUP.COM | 513-490-5816

®

One-Stop InsuranceShopping

GUARD Plus

Comp • Businessowner’s • Auto • Umbrella

We’re the quote you could come up against, so why not join us? !

Workers’ Compensation insurance nationwide for a company’s employees.

!

Businessowner’s Policy for Total Insured Property Values up to $12.5 million (up to $25 million upon request) – now available in over half the U.S.

!

Commercial Umbrella for added protection.

!

A newly enhanced Commercial Auto product (gradually being introduced in our BizGUARD states).

Competitive Pricing • Coverage Extensions • Excellent Commission • Easy Submission Process • Superior Customer Service • New Complementary Lines in Select Jurisdictions!

Visit www.guard.com for product availability in specific states.

Berkshire Hathaway

GUARD

Insurance Companies

Go to www.guard.com/apply

OPEN DOOR POLICY

NAIC DRAFTING ‘UNREASONABLE’ MODEL ACT ON CYBER SECURITY

The National Association of Insurance Commissioners (NAIC) is moving rapidly toward adopting a new “model act” that, if approved by state legislatures, would impose massive new responsibilities, expenses and liabilities upon the entire insurance industry—including every insurance agent and broker.

A task force comprised of state regulators, including Wisconsin Insurance Commissioner Ted Nickel, has been working on a model act that would apply only to the insurance industry, and would not replace or eliminate any of the requirements under numerous federal and state laws already on the books, including other NAIC Model Acts.

insurance industry. The industry would be treated differently than any other sector or type of business.

a The draft would impose considerable data security burdens on all insurance agents. Many of the provisions may be appropriate for large and sophisticated insurance companies and

The NAIC moving rapidly toward adopting a new “model act” that, if approved by state legislatures, would impose massive new responsibilities, expenses and liabilities upon the entire insurance industry—including every insurance agent and broker.

The Independent Insurance Agents & Brokers of America (IIABA)—the national affiliate of IIAW —has led industry efforts to dissuade commissioners from adopting a new model, as well as encourage significant changes to the most recent model as drafted.

Proponents of the bill argue consumers have a right and expectation to have their personal financial and health information secure in light of recent high profile data breaches such as Anthem Blue Cross Blue Shield.

The latest draft of the model act applies to every insurance licensee, in admitted and non-admitted lines, and appears to make agents and brokers “strictly liable” for any data breach—occurring in their offices, or occurring with any third-party with whom an agent have shared records. No requirement of actual consumer harm is required; any breach triggers massive new investigation, notification and remediation efforts.

The IIABA and IIAW have been actively engaged with the NAIC and here in Wisconsin with Commissioner Ted Nickel on this issue.

The IIABA’s and IIAW’s criticism of the draft is centered on the following points:

a The model would impose new data security, breach investigation, and breach notification requirements exclusively on the WISCONSIN INDEPENDENT AGENT

critical infrastructure, but countless main street insurance agencies will be unable to comply.

a The proposal imposes a one-size-fitsall requirement on all licensees. The same requirements that would apply to global insurers would apply to small insurance agencies.

a Reasonable protections should apply to data and information that is truly sensitive in nature, but the draft would apply broadly to data that is not sensitive.

a The draft would impose unrealistic requirements in the event that an insurance agency is the victim of a breach. It would force agents to provide so-called “identity theft protection services” that have been criticized by consumer groups and other experts, even though better options (like free credit freezes) exist.

a Under the draft, insurance agencies that comply with data security requirements and take all reasonable measures to prevent a breach are still subject to sanctions. The draft gives regulators the ability to unilaterally determine (without proper advance notice) the sanctions that would apply.

a Although it was not the intent of the drafters, the draft can be interpreted as requiring independent insurance agents to be responsible for investigating breaches suffered by insurers and providing consumer and regulator notifications in such instances. Agents should be responsible for implementing their own safeguards, but they should not be responsible when personal information is shared with an insurer and that insurer subsequently suffers a breach.

a The draft would establish a series of requirements concerning licensee relationships with third party service providers, and it would require licensees to impose demands on large and sophisticated third parties that are unrealistic. Many small agents simply lack the market clout to compel third parties to acquiesce to such demands.

Finally, proponents are advocating that the model should become an NAIC financial accreditation standard. If that happens, the state would be forced to adopt this model or risk losing its accreditation certification, putting the entire Wisconsin insurance industry and our regulatory system at risk. This action would be inappropriate and unwarranted, as many pieces of this legislation are not tied to financial regulatory standards.

It is doubtful that, if the NAIC adopts this model legislation, state lawmakers will want to establish new insurance industry-specific requirements of this nature. After meeting with OCI it is evident they share some of our concerns regarding the draft model legislation.

The IIAW and IIABA Government Affairs teams will continue to advocate against the egregious policy changes contained in the model legislation > Matt Banaszynski is and will continue to the Executive Vice President of the keep our membership Independent Insurance informed as it continues Agents of Wisconsin. to make its way through Contact him at matt@ iiaw.com. the process.

OCTOBER 2016 | 21

© SECURA Insurance

Let’s make sure they can spend time tending their roots.

Strong, steady growth since 1900 Commercial • Personal • Farm-Ag • Specialty

When you partner with SECURA, you’re family.

Watch: secura.net/partners

COMMENTARY FROM COUNSEL

RESTRICTIVE COVENANTS REVISITED: COURT ADDRESSES EMPLOYEE NON-SOLICITATION PROVISIONS

Restrictive covenant law in Wisconsin—the gift that keeps on giving. In an increasingly competitive insurance marketplace, developments surrounding the enforceability of restrictive covenants—non-competes, confidentiality agreements and nonsolicitation agreements—is something that we keep a close eye on.

On August 17, the Wisconsin Court of Appeals issued a decision in Manitowoc Company, Inc. v. Lanning that has potentially drastic implications for employee non-solicitation agreements subject to Wisconsin law. This decision is the first major case in which a Wisconsin appellate court has weighed in on the enforceability of restrictions on the ability of a former employee to solicit current employees of his or her former employer to leave their current employment. As of this writing, the Lanning decision was subject to a petition for review to the Wisconsin Supreme Court; in the meantime, it is the last word on the scope of non-solicitation restrictive covenants and your agency should be familiar with it and consider its impact on your restrictive covenants.

inducement or encouragement of any employee to terminate his or her employment, or to accept employment with any competitor, supplier or customer of the company. After joining the competitor, the engineer sought to recruit his former co-workers to work with him at his new employer.

Manitowoc Company sued the engineer for breach of his employment agreement. The engineer argued that the non-solicitation provision was overbroad and unenforceable under Wisconsin law. The Wisconsin statute governing the enforceability of covenants not to compete, Wisconsin Statute § 103.465, provides as follows: A covenant by an assistant, servant or agent not to compete with his or her employer or principal during the term of the employment or agency, or after the termination of that employment or agency, within a specified territory and during a specified time is lawful and enforceable only if the restrictions imposed are reasonably necessary for the protection of the employer or principal. Any covenant, described in this section, imposing an unreasonable restraint is illegal, void and unenforceable even as to any part of the covenant or performance that would be a reasonable restraint.

On August 17, the Wisconsin Court of Appeals issued a decision in Manitowoc Company, Inc. v. Lanning that has wide-reaching implications for employee non-solicitation agreements subject to Wisconsin law. In summary, an engineer at The Manitowoc Company signed a restrictive covenant agreement two years before leaving to work for a competitor. After joining the competitor, the engineer sought to recruit his former co-workers to work with him at his new employer. Manitowoc sued the engineer for breach of his employment agreement.

Non-Solicitation Restrictions Employment agreements often include non-solicitation provisions— language that restricts an employee’s post-termination ability to solicit customers and/or employees of their former employer for a specific duration—usually one or two years. Employee nonsolicitation provisions, barring the recruitment of employees from the former employer, are often enforced less rigorously than customer non-solicitation restrictions. Nonetheless, these provisions can be an important tool to curtail the risk of key employee departures.

The Wisconsin Supreme Court previously set forth a framework to guide the analysis of whether an employment agreement is reasonable in scope and duration with its decision in Star Direct, Inc. v. Dal Pra, which has been discussed in several past columns. In Star Direct, the Court ruled that a restrictive covenant is only enforceable under Wisconsin Statute § 103.465 when the provision is: (1) necessary for the protection of the employer; (2) reasonable in duration; (3) reasonable in geographic scope; (4) not harsh or oppressive to the employee; and (5) not contrary to public policy.

The trial court in Lanning determined that the non-solicitation provision was enforceable under Wisconsin law and the case proceeded to trial.

Manitowoc was awarded nearly $100,000 in damages, $1 million in attorneys’ fees and $37,246.82 in costs. Of course, the engineer appealed.

Lanning With its Lanning decision, the Court of Appeals ruled that employee non-solicitation restrictions are invalid and unenforceable unless they are “reasonably” drafted. In Lanning, an engineer signed a restrictive covenant agreement two years before he left the company to work for one of its competitors. The agreement included a provision prohibiting the engineer’s direct or indirect solicitation, WISCONSIN INDEPENDENT AGENT

The Court of Appeals reversed the trial court’s decision—ruling that the employee non-solicitation provision was overbroad and, thus, unenforceable against the engineer, focusing its analysis on its CONTINUED ON PAGE 41

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

OCTOBER 2016 | 23

SALES

SIMPLIFY YOUR MESSAGE TO CONNECT WITH CLIENTS We live in a complex and noisy world. If you ask 10

people how their week is going, I venture to guess that at least half will answer, “Busy.”

It’s often said that knowledge is power. I firmly believe in the power of knowledge and education, but is knowledge really power? When it comes to effective communication, your knowledge can actually be a hindrance when expressed outwardly. Let me explain why.

Early in my insurance sales career, I had little knowledge. I often joke that I could barely spell the word insurance let alone try to explain it. While that certainly is an exaggeration, the bottom line was that I was very uncomfortable sharing technical knowledge.

I started doing what my first sales trainer told me not to do. He told me never to “technobarf” on your prospects or clients.

Guess what? I became a technobarfer!

Let me be clear: I’m not saying that acquiring knowledge isn’t important because it certainly is. What I’m saying is that using this knowledge to impress your prospects is not effective and often makes their lives more complex.

Regardless of the product or service you’re selling, you must use phrases and concepts that your listener can fully understand and relate with.

Building positive relationships

Your challenge

To offset this inexperience, I focused on building relationships and getting to know the business owner I was speaking with. After all, I didn’t want to ask questions or start a discussion I was uncomfortable with, but I could certainly discuss their business goals, needs and frustrations, as well as connect with them.

Although I was less experienced than almost all of my competition, I still was able to achieve some small wins because I was building positive relationships. Many of the business owners assumed I knew something about insurance, but more importantly, they were impressed that I wanted to know more about them. By connecting, I was increasing my influence in every situation.

In the next few years, I attended various training classes and programs. I achieved my CIC designation and learned much more about specific coverages and lines of insurance. This information was powerful and helped to make me a better agent.

Focus on simplifying anything in your business that’s complicated by using stories, examples and analogies. (Editor’s note: Go to brentmkelly.com/the-most-underutilizedsales-skill-for-insurance-agents for examples.)

Instead of describing how an insurance coverage works, use a personal story to explain how it’s used.

Let me offer an example. Let’s pretend there are two agents. Agent A is smart and sophisticated — and talks like it. Agent B is also smart but understands how to connect using simplicity.

Both of them are meeting with a business owner to discuss business interruption.

Don’t lose sight of the client’s needs This knowledge also caused me to sometimes lose sight of the client’s needs and focus on my newfound expertise. If I learned a new coverage or product, I would often try to dazzle them with big words and impressive phrases.

24 | OCTOBER 2016

Agent A: “There are many important coverages to consider and it’s my job to walk you through your options. One of those important coverages is business interruption insurance. This quote is for ALS, which means actual loss sustained, but there other options including co-insurance and monthly indemnity. If you have a large claim it will protect your business from continued incurred expenses you will face such as payroll and utilities. Is this something you would want?”

Agent B: “Last year, one of our clients suffered a fire at their restaurant. It was

Life is hard, deliver easy.

John C. Maxwell

terrible, can you even imagine? His policy covered the building and contents inside, but there was another key aspect he had never considered. After the fire, he came to our office noticeably upset. He thanked us for our quick response, but asked us how he was going to survive the next year due to the fact that he wouldn’t be able to pay to keep his key employees, or afford ongoing monthly expenses while they were rebuilding and not operating. See, what he didn’t understand was that our policy included business interruption coverage, which covered these overlooked expenses. Would this type of coverage be important for you and your business?”

Agent B used a powerful story to tell the same fact about this particular coverage.

Even though the coverage amount and type of coverage may have been the same, agent B painted an emotional picture that was simple to understand. Agent B connected, while Agent A focused on his own knowledge.

Bottom line Knowledge will only take you so far. If you want to be successful in transferring this knowledge to those you want to influence, you must learn to simplify your message.

> Brent Kelly is the founder and CEO of BizzGrizz.

WISCONSIN INDEPENDENT AGENT

GOVERNMENT AFFAIRS

TOLL ROADS IN WISCONSIN? TRANSPORTATION FINANCING WOES DOMINATE UPCOMING STATE BUDGET With preparations underway in Madison for a new state budget season, state agencies formally submitted their 2017-19 biennial budget requests to the Governor earlier this month. In his budget directive to agency heads, Governor Walker instructed most state agencies to maintain zero growth.

There are some exceptions including budgeting for K-12 education, entitlement assistance programs such as Medicaid, and basic cost-tocontinue needs for various state institutions, but generally Wisconsin state government is being held to a zero growth budget.

Also, 2015 Wisconsin Act 201 was enacted into law last session, which requires state agencies to submit additional plans for a five percent reduction to their budgets. Gov. Walker will then consider both zero growth and five percent reduction options as he formulates his proposed budget and sends it to the Legislature for modifications in early 2017.

Similarly, as was the case in the last state budget with few new revenues, it is anticipated that the most controversial budget items will be those with the largest price tags such as K-12 public education, university and technical colleges, Medicaid, and transportation. The final outcome of the state budget bill when enacted into law next summer is certain to have an impact on all types of Wisconsin taxpayers.

Meanwhile, Republican leaders who control the State Assembly (63-36) are laying out their own plans for the upcoming legislative session and have made the issue of transportation financing and paying for roads a top priority. Why should the Insurance Industry care about this? Because our state transportation infrastructure and the cost of maintaining our roads, bridges and rail systems affects all of us in some way or another.

Paying for fixing our state roads has increasingly become a significant budgetary issue over the last several budget bills. And Wisconsin’s bloated transportation deficit will dominate the upcoming state budget. 2017 is a new budget year and state lawmakers are facing a nearly $1 billion shortfall in the transportation fund. The non-partisan Legislative Fiscal Bureau (LFB) provided a legislative summary several months ago indicating that WISCONSIN INDEPENDENT AGENT

With a transportation fund budget shortfall of nearly $1 billion, Wisconsin’s legislators are looking at many ways to increase revenues, including the addition of toll roads on our highways (like the interstate in Illinois pictured above). Other options include raising the gas tax, increasing registration fees, cutting or delaying road projects, additional bonding, and looking at new ways to build roads more efficiently. the DOT will need an additional $939 million in new revenue to maintain current transportation funding levels in the next state budget.

When rolling out their legislative agenda earlier this month, Assembly Republican leaders emphasized that all options to resolve the transportation budget deficit should be on the table. And there is no shortage of opinions in and around the State Capitol on what to do or where the state could get more money to pay for roads and other transportation projects. Some options being considered are: raising the gas tax, increasing registration fees, cutting or delaying road projects, additional bonding, toll roads, and looking at new ways to build roads more efficiently and at less cost.

One major challenge going forward is that Gov. Walker and Republicans who control the State Senate (19-14) are not necessarily on the same page with their peers in the State Assembly. In fact, as of late, tensions between the Walker administration and Assembly Republicans continue to mount over how to deal with the problem. Everyone is > Misha Lee is Owner/ in agreement that fixing roads and improving our Founder of Lee state’s transportation infrastructure should be a top Government Relations, LLC and lobbyist priority. Lawmakers also agree that instituting more for IIAW. Follow Lee reforms that reduce unnecessary wasteful spending Government Relations CONTINUED ON PAGE 27

on Twitter@mishavlee.

OCTOBER 2016 | 25

VIRTUAL UNIVERSITY

Engagement is the interaction with intention that goes beyond concern for the transaction.

- Chris Heuer

AMAZING CUSTOMER ENGAGEMENT IDEAS

I recently attended the IBM Amplify conference in San Diego where the focus was on customer engagement.

IBM invited a select group of people they referred to as influencers. I was fortunate to be in this group, which included a dozen authors, bloggers, and thought leaders. The speakers at the general and breakout sessions filled my head with information, and it was especially refreshing and thought provoking to debrief with this group of influencers, so I thought it would be fun to summarize my top five takeaways from the conference.

Now remember, I’m a customer service guy. The high level technical concepts, while interesting, didn’t get me as excited as some of the customer focused and engagement ideas.

1. In this first session, I met Chris Heuer. He gave the perfect definition of the new standard of customer engagement: Engagement is the interaction with intention that goes beyond concern for the transaction.

In other words, you are focused on the customer and not the sale.

When that fast food restaurant tries to upsell you an order of fries with that sandwich and drink, they are interested in an incremental sales increase. It’s all about the money. While there’s nothing wrong with that, the alternative is to focus on the customer and not the sale. If you focus on the customer and his or her needs, the sale will follow. You may not get the small incremental sale of that particular transaction, but the customer-focused engagement wins you a long-term, loyal customer.

2. In the first general session, Deepak Advani, the General Manager of IBM Commerce, mentioned Starbucks as the perfect example of a customer-focused company. He referenced Howard Schultz’s philosophy that Starbucks believes they are not in the coffee business serving people. They are in the people business serving coffee. Once again, the focus is on the customer over anything else.

3. Jonah Berger, a professor at Wharton School of Business and an amazing speaker, talked about customer engagement that leads to

customer loyalty. He showed the stats and facts that made the case for the importance and the power of word-of-mouth marketing. The opinions of friends, family members, and even strangers are more influential than some of the advertising that a company might pay for.

In addition, he talked about the power of being top-of mind. If you can get a customer to think about you, they will also talk about you. His comment was spot on: If something is to be top of mind, it is likely to be tip-of-tongue.

4. IBM arranged for me to spend some one-on-one time with Senior Product Strategist David Haucke. We talked about the technology they have created to track the customer’s journey and manage their experience. In the new era of how we market to our customers, you’ll be intrigued with this takeaway. It’s not what we want to tell our customers. It’s what our customers want to us to tell them.

Let’s wrap up this list with one of my favorite comments from the conference.

5. Alex Banayan was the host of the morning general session. His statement really sums up what the convention was all about. The 4P’s of Marketing are dead. There is just one C (not P) – the customer! With all of the cool technology and the discussions about IT, analytics, automation, data and much more, in the end, the focus was on customer engagement. It’s all about the customer.

For more of Shep’s insights and tweets, go to Forbes.com and enter “Amazing Customer Engagement Ideas From IBM Amplify Conference” into the Search bar.

> Shep Hyken, CSP, CPAE is a customer service expert, hallof-fame speaker and New York Times and Wall Street Journal bestselling author.

Visit Hyken.com.

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

26 | OCTOBER 2016

WISCONSIN INDEPENDENT AGENT

TRAVELERS CEO: ‘NO ALGORITHM FOR TRUST’ IIAW Executive VP Matt Banaszynski recently met Travelers CEO Alan Schnitzer.

Banaszynski received insight into Alan’s vision for the future and was inspired by his support of the independent agency system/model. Schnitzer commented on technology and how it is changing our industry for the better but said: “There is no algorithm for trust. You can’t automate it. It’s the most important aspect of our business and the core principle of independent agents.”

TOLL ROADS IN WISCONSIN? CONTINUED FROM PAGE 25

by the DOT should come first and foremost. But those savings alone would not come close to addressing the large budget shortfall. Another legislative service agency, the non-partisan Legislative Audit Bureau (LAB), is currently conducting a full audit of the DOT and is expected to report back to the Legislature sometime in late 2016 or early 2017. The audit is likely to help shed light on how the Administration and policymakers can eliminate waste and improve the overall efficiency of the DOT. But there are also stark differences over how to fund transportation with certain GOP lawmakers and the Governor publicly exchanging opposing positions. Speaker Robin Vos (R-Rochester) and State Rep. John Nygren (R-Marinette), who co-chairs the influential Joint Committee on Finance, called on lawmakers to commit themselves to finding a sustainable solution to the Transportation financing woes without relying on more borrowing.

Gov. Walker has reiterated his position opposing raising the gas tax or registration fees unless any increase can be offset by an equal or greater cut in other taxes. Other legislators have weighed in on both sides of the debate with some conservatives who agree with the Governor’s no tax pledge, while others in both political parties say that it’s time to act responsibly and raise revenues to address the state’s infrastructure problems. A gas tax increase is the best option because everybody pays it.

The issue of toll roads has emerged more aggressively as of late as a funding alternative. Toll roads may be a viable option that some are considering, but this also requires federal approval first and no one knows WISCONSIN INDEPENDENT AGENT

how long that would take. Recent public opinion polls have supported the option of toll roads in Wisconsin as a funding source. It would take some time to implement toll roads due to federal approval and construction and this is not an immediate fix to the transportation deficit, but more of a longterm option that may or may not garner enough legislative support.

Gas tax and registration fees are always funding options. Proponents argue that the gas tax hasn’t been increased in 10 years and sits at $0.31 cents a gallon.

Registration fees are still some of the lowest in the Midwest. But in the current climate, the gas tax is not politically popular and some do not think it is as reliable a revenue source as it once was due to more fuel-efficient vehicles on our roadways. The last state budget also didn’t have enough money for all of the DOT road projects, despite $850 million in borrowing, and it also rejected recommendations for increasing the gas tax by $0.05 cents per gallon, raising other transportation fees, and using a mileage-based vehicle registration system.

As a result, many road construction and other transportation plans were delayed.

The November 3rd general election is approaching fast and soon enough the Legislature will be back in session making hefty decisions that will affect your pocketbook and bottom lines. Remember to take the time to express your views to the candidates running for public office about what you think the state of Wisconsin should do to tackle the ongoing issue of the transportation budget deficit. Paying for state transportation will be one of the biggest battles during state budget deliberations and your views will be important to your local legislators’ decision making.

OCTOBER 2016 | 27

CONTINUING EDUCATION

ABEN ONLINE CLASSES

IIAW WEBINARS

Commercial Lines Claims That Cause Problems 2 CE Credit Approved Date: October 20, 2016 Location: ABEN Online – iiaw.aben.tv Time: 1:00 – 3:00 PM

When the Child Becomes the Parent: Aging Parents and Insurance Decisions 3 CE Credits Approved Date: October 20, 2016 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM

Data Privacy Insurance 2 CE Credits Approved Date: October 25, 2016 Location: ABEN Online – iiaw.aben.tv Time: 1:00 – 3:00 PM

Long Term Care Insurance 2 CE Credits Approved Date: October 27, 2016 Location: ABEN Online – iiaw.aben.tv Time: 1:00 – 3:00 PM

E&O Risk Management: Meeting the Challenge of Change 6 CE Credits Approved Date: November 1, 2016 Location: ABEN Online – iiaw.aben.tv Time: 10:00 AM – 4:45 PM

The Dirty Dozen 3 CE Credits Approved Date: October 20, 2016 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM

Commercial General Liability Coverages 3 CE Credits Approved Date: October 21, 2016 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM

Ethics and the Law 3 CE Credits Approved Date: October 24, 2016 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM

Affordable Care Act: Update 2016 and Beyond 3 CE Credits Approved Date: November 8, 2016 Location: ABEN Online – iiaw.aben.tv Time: 9:00 AM – 12:00 PM

Risk Assessment for Manufacturing Operators: What Can Go Wrong?

3 CE Credits Approved Date: October 28, 2016 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM

Commercial Property Endorsements That Can Make You Money!

2 CE Credits Approved Date: November 8, 2016 Location: ABEN Online – iiaw.aben.tv Time: 9:00 – 11:00 AM

E&O Risk Management: Meeting the Challenge of Change, Part 1 3 CE Credits Approved Date: November 3, 2016 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM

Data Privacy Insurance 2 CE Credits Approved Date: November 18, 2016 Location: ABEN Online – iiaw.aben.tv Time: 10:30 AM – 12:30 PM

E&O Risk Management: Meeting the Challenge of Change, Part 2 3 CE Credits Approved Date: November 3, 2016 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM

F OR MORE CLASSES AND TO REGISTER, P LEASE G O TO IIAW.COM

INDUSTRY SERVICE

INSURANCE EXECUTIVE ARVID R. “DICK” TILLMAR RETIRES Arvid R. “Dick” Tillmar announced his retirement on September 12, bringing to a close a remarkable career of 50 years of service to the insurance industry, including 11 years as chairman/CEO/owner of T.E. Brennan Company. He sold the company in 2004.

Tillmar’s career began with Connecticut General/CIGNA. Along the way, Tillmar was regional director covering the territory from Honolulu to Denver and Seattle to San Diego for, what was then, Frank B. Hall & Company, the Irvine, California-based firm with 1100 employees. He ended his career as health advocate for Diversified Insurance Solutions and principal of Tillmar Connect, LLC. Scott M. Dettmann, partner at Carlson Dettmann Consulting, LLC, has this to say about Tillmar: “I’ve been fortunate to have several wonderful mentors throughout the years, and Dick continues to be one of the most important and longest serving (34 plus years and counting). He has many positive attributes, of which the following come to mind:

a He is an Activator – he causes things to happen.

aHe is Charismatic. aHe is the most Connected person I know. a He is Confident – Dick is sometimes wrong, but seldom in doubt!

aHe is Devoted to his family and friends. a He is Eloquent and Talkative - Dick can make conversation with anyone.

aHe is Fun to be with. aHe is Intuitive. aHe is Persuasive. aHe is Responsible.

WISCONSIN INDEPENDENT AGENT

Tillmar possesses superb intellect. His ability to assimilate information quickly, and make something of it, in short order, is simply amazing. Most of all, Dick is a man of great integrity. It is my great fortune that our paths crossed so many years ago, and I am able to call him my friend.”

Distinct acknowledgements along Tillmar’s career include participation in winning litigation for clients versus the state of Wisconsin in upholding the ERISA preemption, writing the Independent Insurance Agents of Wisconsin (IIAW) benefits program, being awarded Agent of the Year, and, in a subsequent year, Employee Benefit Agent of the Year by the IIAW. Tillmar also participated on the Executive Committee of the Well City initiative to have the city of Milwaukee named a Well City three years in a row by the Wellness Council of America. He received the Well City Milwaukee Inspiration Award in 2015. Serving on many boards and involvement in community activities were part of his everyday life. “‘Tillmar, you will never make it in the insurance business,’” Tillmar recalled about what his first regional director said about him.

“However, I’ve had the privilege of proving him incorrect for 50 years, and, in the process, met some of the best in the business. I’ve had the opportunity to be a successful group insurance representative, form a benefits brokerage, manage a third-party administrator (TPA), manage a property and casualty brokerage in southern California, manage the western regional operations of a national insurance broker, purchase and operate a pure risk management consulting firm, and then return to the brokerage world.”

Arvid R. “Dick” Tillmar

Tillmar says his retirement can be described as an extended sabbatical.

“Who knows what the future holds,” he says. “I hope to enjoy more personal accomplishments with my family and check off key items from my bucket list. In the meantime, thanks for the wonderful memories.”

About Tillmar Connect Arvid R. “Dick” Tillmar launched Tillmar Connect in January 2010. In his 45-year career, Tillmar engendered solid contacts with key decision makers in the business, civic and community sectors. Tillmar Connect’s mission is to build trust, advertise honestly, tell the truth, remain transparent and honor promises, in the manner promoted by the Better Business Bureau. For more information about Arvid Tillmar, call, email or visit 414.690.2232, arvidtillmar@yahoo. com, linkedin.com/in/dicktillmar, or view his tribute video at tributeslides.com/tributes/ show/F75FWXBXMX68H5QQ.

OCTOBER 2016 | 29

TECHNOLOGY

NEW ECHNOLOGY:

A DOUBLE-EDGED SWORD FOR INSURANCE COMPANIES

The insurance industry is on the horns of a dilemma: how to use new technologies to improve their operations and how to insure the risks these new technologies present to their customers.

Situation The pace of technology is changing at faster rates than ever before and continues unabated despite the associated risks. New technology startups constantly enter the field, using technologies that impact multiple industries and user groups. Additionally, new technologies are developed virtually every day and are released almost immediately.

This means that rapid adoption and use of new technologies is happening ahead of the ability of insurers to understand and respond to them, both as a user and as an insurer.

For insurers, new technology is a doubleedged sword. While new technology means new tools insurers can use to improve their operations and the services they provide to their customers, it also presents two new risks.

The first is the risk of using a new technology that, due to its newness, proves to be a source of unforeseen liability because of an innate flaw in the technology; a failure of the new technology to live up to its promise; the new technology’s susceptibility to misuse; or the development of lagging regulation that creates potential liability for “impermissible” use of the technology. The second risk is insuring new technologies. Without sufficient experience and data to properly understand the risks of emerging technologies, it can become very costly for insurers to accept new risks.

An example is the use of drones. While this technology offers an improved method for insurers to inspect many cases of property damage, regulations restricting the use of drones make them much more costly to deploy in insurer operations, and because regulations on drones continue to evolve on a regular basis, it creates even more

30 | OCTOBER 2016

challenges. Additionally, the rise of smart home technologies has proven challenging and is creating new exposures for insurers.

Smart home apps (i.e., remote control of temperature/lights) are susceptible to power surges and storms, which could lead to a whole house electricity failure.

Traditional home coverages may not include this coverage, which could create a more costly and complicated claim. Smart home apps also lead the way to concerns of cybersecurity and privacy threats to the insured. In the “J.D. Power 2015 Household Insurance Study,” 31 percent of homeowners indicated their home used at least one smart technology product.

In a 2016 August Home and Xfinity Home survey, nearly 18 percent of survey respondents indicated they would likely purchase a new smart home product in the next 12 months. (Study commissioned by August Home and Xfinity Home, produced by research firm NextMarket Insights and conducted as an online survey among a total of 1,293 U.S. consumers.)

Insurers traditionally are not on the leading edge of new technology and, as a risk-averse group, they have historically been slow adopters of new tools and technologies.

Likewise, insurers are also slow to terminate old technology, preferring instead not to create needless disruption in their operations. This lack of technological agility has now become more of an existential risk for insurers than it has historically been.

Complication New technology risks are by definition immature and have not yet been fully evaluated as insurable risks. By virtue of the structure of insurance risk evaluation, a significant history of experience with any given risk is needed to properly and confidently evaluate it, which is true not only for risks that insurers want to underwrite but also for those they want to leverage to make their operations more efficient and effective. Think of artificial intelligence technology and the promise it has to improve insurer decision-making in the underwriting of risk and managing of claims, as well as being a new area of insurance need. The power of such a technology can also potentially become the source of the next mass tort to hit the insurance industry in ways yet unknown.

Regulatory development appears to be too slow to match the pace of new technologies. As a heavily regulated industry, insurers are reluctant to incorporate technologies into their operations that might later incur a heavy regulatory burden such as heightened reporting, fees, additional compliance activity or other costly impacts.

Similarly, insuring new technology risks ahead of full regulatory development can lock an insurer into a class of risk that may prove to be unattractive due to subsequent regulatory developments designed to address originally unrecognized risk characteristics.

WISCONSIN INDEPENDENT AGENT

TECHNOLOGY Insurers need to move fast to leverage and insure new technology risks. Despite the potential complications that guide insurers to move slowly in adopting or insuring new technology, the rapid rate of change of technologies demands that insurers embrace them quickly in order to benefit. To be seen as less than leading edge in leveraging technology creates a poor image for any company today, including insurance companies. Insureds are becoming just as likely to compare an insurer’s service responsiveness to that of companies such as Amazon as they are to another insurer.

Further, being slow to provide coverage for emerging technology risks means forfeiting new profitable business to competitors.

Resolution Insurers need to leverage new technologies to better evaluate and manage the risks they present. The irony is that new technologies may be part of the solution in evaluating new technology risks. The increased access to data and tools to manage and analyze that data may make it easier for insurers to create models of similar or surrogate risk for the new technology a carrier wants to insure. It is not that this approach to evaluating risk is new, but the speed at which it can now be done is

well beyond what has traditionally existed.

Insurers need to be better at sourcing, managing (organizing and cleaning) and evaluating data to model and understand new technology risks.

Insurers also need to lead in the development of new technology risk regulation. To foster the development of new technologies, insurers need to be available to those who are developing and adopting the new technologies. John Drzik, president of global risks and specialties at Marsh & McLennan Cos., addressed this in his article titled “The Genie Of Emerging Technology,” which was first published on the World Economic Forum’s blog. “National legal and regulatory frameworks are underdeveloped, so certain topics and techniques escape scrutiny by not being specified. Institutions that are meant to provide oversight struggle to cope with advances that cross departmental jurisdictions and, short on resources, they are often unable to assess the risks with the rigor that they might wish,” he wrote.

Insurers have the opportunity to lead in the development of appropriate regulations to govern the use and risk management of emerging technologies.

EVERY DAY. EVERY HOUR. ALWAYS.

To accept the risks presented by new technologies, carriers need to have regulations in place that are supportive of them, individually and as an industry, accepting such risks based on limited experience history.

The nightmare scenario that carriers need to be protected from most is accepting risks that could turn into the next mass tort. Carriers also need regulations in place that will allow them to more readily use new technologies to improve their ability to provide service and products to their insureds and claimants.

Moreover, these regulations need to provide reasonable freedom to foster and support technology development while also ensuring reasonably needed limitations are established.

In addition, insurers need to establish contingency strategies to hedge new technology risks, which counterbalance the risks new technologies represent as a part of their overall risk portfolio and as a part of their operational structure.

> Gregory Hoeg is Vice President of Insurance Operations at J.D. Power. This article first appeared on carriermanagement. com on Sept. 2, 2016.

Beyond the expected.

®

YOUR PARTNER IN BUSINESS Your business clients make hard decisions every day, but now you can make selecting the right insurance coverage easy with a Pekin Insurance® Commercial policy that is specifically designed for preferred property risks.

CHECK OUT SOME OF THE PREFERRED PROPERTY RISKS THAT WE HAVE INSURED: • $24,760,000 total property value for a Public Library • $15,181,800 total property value for a Farm and Home Store • $21,267,000 total property value for a Lessor’s Risk Shopping Center We go Beyond the expected® with valuable services like Loss Control, a Return to Work program, a Special Investigations Claim Unit, and much more.

Partner with a company that offers some of the most innovative products available in the industry today and is continually searching for ways to become the easiest company for you to do business with.

2505 COURT STREET • PEKIN, ILLINOIS • 61558 • 800-322-0160, EXTENSION 2394 • WWW.PEKININSURANCE.COM

AUTO WISCONSIN INDEPENDENT AGENT

•

HOME

•

LIFE

•

HEALTH

•

BUSINESS OCTOBER 2016 | 31

AGENCY MANAGEMENT

OF A CSR WHO CAN SELL

FIVE SECRETS TO HELP YOUR CSRS SUCCEED Twenty years ago, I started in insurance as a personal lines customer service rep because I knew I didn’t want to sell. I’m not a salesperson. I like customer service, however, because I like people. So I was really happy to just be an agent who serviced personal insurance clients.

But one day, the personal lines producer I worked with was out on vacation and a new prospect called in. Instead of taking a message as I normally did, I started talking to the person, and after some quoting and more talking, I had sold an account. I’d like to say that I instantly became a salesperson by handling that one prospect but I still am not a salesperson. I am a CSR who can sell.

If a CSR is overwhelmed with processing paperwork or outdated technology, they are much less likely to feel they have time to sell. I am still amazed at the number of agencies not utilizing dual monitors, agency management system upgrades like single entry and download, or the worst CSR time culprit of all – paper files. Give them the time they need to build trust and rapport, which will lead to sales.

Can Your CSRs Succeed in Sales?

I’m not alone. I am not a unicorn. The problem is that most CSRs are afraid to sell because they think that means they have to be a salesperson. They also are probably unaware that if they want to give the best service to their clients or potential clients, it requires selling some coverage.

To get CSRs to sell, there are barriers that have to be removed and ways to help them that differ from what you do to manage producers. From my own experience as a CSR and from what I observed and what I observed in the 35 plus agencies I visited when I traveled the country as a consultant, there are five basic needs that must be met to help a CSR succeed with sales.

1) They need time to build relationships.

CSRs are great with people, but they prefer a slower pace and aren’t comfortable rushing the prospect or client through a barrage of questions. To a CSR, that equates to high pressure sales. However, CSRs are busy servicing, and to create that extra time, it is very important to provide them with the most efficient technology for their servicing duties.

32 | OCTOBER 2016

2) They need more knowledge.

A basic understanding of the sales process is great, but it’s not the key. They need more knowledge of coverage and more knowledge of your markets. Often, CSRs get left out of meetings when company market reps come in the office to discuss their company’s offerings.

You can include CSRs. Some agencies only send producers to advanced continuing education, like designation programs. Instead, send everyone you can. Start the CSRs out with CISR or ACSR, then encourage them along to CIC and CPCU. The more they know, the better they can sell because for CSRs, it’s all about offering choices and educating clients/prospects. “Helping a customer understand their choices and make an informed decision” sounds better than “selling something.” Fundamentally, it’s the same thing, right? Yes, but to a CSR with the knowledge to advise a client on what is available and how it can benefit them is more like customer service, which they already enjoy doing.

3) They need more guidance.

It’s a big jump to go from order taker to adviser. Order takers WISCONSIN INDEPENDENT AGENT

AGENCY MANAGEMENT

The reality in insurance agencies today is that everyone in the agency, from receptionist to CSR to producer, should be selling customers and prospects on why to stay with or buy from them. producer getting commission for sales who most certainly is motivated by that money. Your budget may not be ready to start paying out commission to CSRs for smaller policies or upselling additional endorsements. are never wrong as long as they take in the correct information.

Advisers? They can flub stuff. Maybe say the wrong thing. CSRs don’t like being wrong – it goes against all that conscientiousness you hired them to exhibit. Coaching a CSR on how to talk to their clients so that it results in more sales can make a huge difference. Please don’t call it a script if you can help it, because the connotation there is that this is an act. CSRs want to be genuine, so instead call it optimal wording or something that helps them understand they are going to be serving their client better.

In addition to coaching and scripts (that aren’t called scripts), they also can use extra direction. If you set up a schedule where each week they should focus on discussing a different coverage, then they don’t have to think it up themselves. Or, if they are supposed to be doing renewal reviews that hopefully generate cross-selling or upselling, make sure to give them a worksheet to follow. CSRs will be more effective at selling if they don’t have to decide what to sell when, but can follow a flow chart or procedure.

4) They need to get used to the word NO. This one is probably the toughest. Once you get a CSR to start selling, they will eventually and repeatedly be turned down just like a regular salesperson. Producers aren’t daunted by the word NO, and either figures a way around it or moves on without a second thought. A CSR takes rejection a lot harder. The word NO is a wall they will avoid hitting at almost all costs. Training a CSR to keep asking questions even after a NO is helpful.

It’s important to the sale process for the CSR to understand when price is really the issue or when value is the issue. Obviously, if it is value, then they still have an opening to provide more detail on the coverage. It’s easy to accept “I can’t afford it” as a NO and more challenging to ask additional questions to determine if NO means NO. The more they hear NO, the better they will become at questioning why.

5) They need incentive to sell, and it may not be commission.

The good news is a CSR may not be motivated by money, because they are already getting paid to take car changes and answer billing questions. Why is that good news? You probably already have a WISCONSIN INDEPENDENT AGENT

How do you offer an incentive then, for a CSR that sells? Instead, create a point system where once they meet a goal or achieve a certain number of additions to policies, they can “cash” their points in for a day off or maybe a gift certificate. You may be able to negotiate gift certificates from one of your commercial clients at a reduced rate – especially from restaurants that normally offer discounts in their regular marketing. Another idea is to mark off a prime parking spot near the entrance for “CSR of the Month” and use your social media to spotlight the winner of that month’s award.

Competition amongst CSRs can be motivating and keeping a dry erase board in an area of high visibility for employees where tallies or points are recorded can keep everyone engaged. Small prizes like coffee mugs, tote bags, and recognition pins are just a few things that could also serve as incentives. When in doubt, ask the CSRs what they’d like to see as incentives, and be prepared to offer more than one option depending on the number of employees involved.

Today, I am a commercial account executive. Those are fancy words to indicate I’m a CSR who sells. Consider changing titles and job descriptions if you are expecting your CSRs to sell, as it may help them to readily embrace their role.

Taking Your Agency to the Next Level The reality in insurance agencies today is that everyone in the agency, from receptionist to CSR to producer, should be selling customers and prospects on why to stay with or buy from them. Not everyone is a salesperson but CSRs have the jump on selling because they want to help people. Insurance is meant to help people and businesses through the unfortunate circumstances in life. Once they understand how they can help people by selling them what they need, the seeds are planted.

You can grow your CSRs into selling roles by helping them with their needs. If you can meet those five needs, you’ll have CSRs who are successful at selling.

> Tracy Cotton is a commercial account executive (a CSR who sells) at Morrow Insurance in Marion, North Carolina.

OCTOBER 2016 | 33

WS E N E H T N I S R E B M ME Robertson Ryan Continues to Grow Robertson Ryan & Associates (RRA) has a long-standing reputation for attracting the most qualified and recognized insurance professionals. As a Top 100 U.S. insurance agency we are among the largest agencies in Wisconsin and are continuing to grow.

Garrett Maloney

Robert Flath

Garrett Maloney joined RRA as a vice president and is based in the Waukesha office. He is an insurance agent for personal lines, commercial lines P&C, health & life, and employee benefits. Before joining RRA, Garrett graduated from the University of St. Thomas and worked in underwriting for Travelers Insurance in the Greater Minneapolis–St. Paul area. His father Terry Maloney and brother Ryan Maloney are also agents with RRA. Their family connection and working partnership align well with the values at Robertson Ryan. The Maloney’s have a long legacy of making a big impact in the Wisconsin insurance community and RRA is excited to have Garrett join the team.

Brittany Swinton

Robert Flath joined RRA as VP of Bonds in July and is based in the Waukesha office. Bob is a graduate of the University of Milwaukee and earned his MBA from Whitewater. Furthering his industry experience, he has his Chartered Property Casualty (CPCU) and is an Associate in Fidelity and Surety Bonding (AFSB). He brings more than 30 years insurance and bond experience to RRA. Flath stated, “I am excited to work for such a respected agency and look forward to having the resources of Robertson Ryan’s large bond form library, one of the largest in Wisconsin, at my fingertips.”

Brittany Swinton joined RRA in August as a CSR. She is a graduate of Northern Illinois University and brings 10 plus years of commercial lines insurance experience to her role. Brittany is a highly knowledgeable insurance professional who enjoys working with customers on their commercial risks and is based out of the downtown Milwaukee office.

Allan Degner, Robertson Ryan’s Director of Marketing said, “We have an incredible team and are fortunate that we have the opportunity to continue growing. RRA has a professional, yet fun, culture and our growth allows us to provide the best talent to help our clients, who are our top priority.”

For more about Robertson Ryan & Associates, please visit robertsonryan.com.

34 | OCTOBER 2016

Forbes: SECURA a Top Workplace for Women Fortune’s second annual list of the 100 Best Workplaces for Women highlights companies with generous benefits, flexible schedules, and an emphasis on balancing work and life. Rankings are determined by employee surveys and the representation of women within the organizations.

In 2016, SECURA Insurance ranked 69th on the list. Women make up 63% of the workforce and hold 46% of executive/ managerial positions.

Employees say: “SECURA is referred to as ‘home away from home’ by many. The family-friendly atmosphere, amenities (i.e. cafe, fitness center, wellness center), leadership, career development opportunities, recognition programs and wellness initiatives are just a few items that make for an enjoyable work experience. On top of that, the community outreach is impressive. The level of compassion extended toward associates, clients and local communities is hard to beat.”

“This is a company with a heart. I have only been with the company two months, but feel very much part of the team already. So many co-workers have reached out to me and shown they accept me as part of the team through words and actions. In my opinion, this happens because our leadership is so open and caring. Dave Gross is a unique and talented president—he has a great blend of empathy and drive which makes him a strong and respected leader.”

For more about SECURA, please visit secura.net. See the full list at fortune.com/best-workplaces-for-women.

ACUITY INSURANCE

Company Rises on List of Large P&C Insurers Acuity is the 57th-largest insurer in the nation, according to Conning’s latest Market Share Rankings report. Acuity’s current ranking is a four-point jump from the previous year and reflects the insurer’s continued rise in the industry.

“Acuity is proud of our sustained growth and momentum,” said Ben Salzmann, Acuity President and CEO. “Our continually increasing market share shows we are a strong force for independent agencies and a source of protection for a growing number of individuals, families, and businesses.”

In 2015, Acuity again achieved significant growth across all WISCONSIN INDEPENDENT AGENT

WS E N E H T N I S R E B M ME lines of business and throughout the company’s operating territory, writing over $200 million in new business for the fourth straight year. Over the past 16 years, Acuity has grown 250 percent faster than the insurance industry. In the past 48 months alone, the company added nearly $500 million to its top-line revenue.

Acuity has also hired 700 employees over just a five-year span. As a result of the insurer’s continued strong growth, Acuity is building a 240,000-square-foot addition to its corporate headquarters to accommodate its more than 1,200 current employees and prepare for further regional expansion.

Company Ranks as a Top Workplace for Women Fortune’s second annual list of the 100 Best Workplaces for Women features Acuity Insurance at number 44. Women make up 53% of the workforce and hold 44% of executive/managerial positions.

Employees say: “Acuity goes above and beyond to make all their employees feel they are special and responsible for the success of the company. They provide many company functions: lunches, happy hours, a chocolate fair, a fantastic company picnic, Christmas baskets, etc. This list goes on and on.”

Deb started at Acuity in January 1991 as a Personal Lines Underwriter. She was promoted in 2002 to Senior Personal Lines Underwriter.

Deb Vrubley

She graduated from the University of WisconsinOshkosh with a bachelor of science degree in education. She lives in Cedar Grove, Wisconsin.

For more about Acuity Insurance, please visit acuity.com.

West Bend Makes Forbes’ List as Top Workplace for Women Fortune’s second annual list of the 100 Best Workplaces for Women features Acuity Insurance at number 44. Women make up 62% of the workforce and hold 42% of executive/managerial positions.

Employees say: “The open door policy is taken to new heights.

You truly feel welcome to approach management. There is also a willingness to take the time to train people and an overall fostering of the growth of knowledge.”

Company Promotes Vrubley

“Just about everything about this company is amazing. The culture is one of hard work and accountability balanced perfectly with fun and recognition. Members of senior leadership are visible, involved, approachable, and down to earth. They understand the value of recognition and make sure associates are acknowledged and rewarded (in many different ways) for their contributions.

They treat everyone with respect and drive that throughout the organization. Work/life balance is also important and encouraged.”

Deb Vrubley is promoted to Manager – Personal Lines Underwriting at Acuity’s corporate headquarters.

For more about West Bend, please visit thesilverlining.com.

“The management of the company is beyond generous to their employees and makes us feel valued as employees.”

WISCONSIN INDEPENDENT AGENT

OCTOBER 2016 | 35

Your customers like working with a local agent to handle their insurance. We think you deserve the same kind of attention. That’s why EMC has a fully staffed branch office in your area — to respond quicker and with a greater understanding of your area’s needs. It’s just one of the many reasons you and your policyholders Count on EMC ®.

MICHAEL LESTER, CPA Premium Audit Manager EMC Milwaukee Branch

LOCAL SERVICE FOR YOU

AND YOUR CLIENTS. MILWAUKEE BRANCH OFFICE

www.emcins.com

Phone: 855-495-1800 | milwaukee@emcins.com

©Copyright Employers Mutual Casualty Company 2016. All rights reserved.

ERRORS & OMISSIONS

SIMPLE TIPS TO PREVENT CLAIMS Ever feel like you’re reinventing the wheel regarding agency management? Chances are, if you have a great idea, somebody else has had a similar idea and created a template for it.

As a Swiss Re policyholder and a member of the Independent Insurance Agents of Wisconsin, you have access to E&O Happens, our national Association’s website which is dedicated to E&O risk management and loaded with useful templates and helpful agency operations tools.

E&O risk management is all about awareness and the culture created in the agency. The E&O Happens’ Staff Tips to Share section covers the ALWAYS and NEVERS of risk management. It features PDFs of a variety of loss prevention tips that you can download to email, print, or use in a

PowerPoint presentation. The tips are short, to the point, explain why the tips are important, and act as reminders to staff to keep claim prevention top of mind.

Access Staff Tips to Share by going to the E&O Happens homepage (rms.iiaba.net), hovering over Claim Prevention and clicking Staff Tips to Share. Or you can cut and paste rms.iiaba.net/Prevention/ Pages/Tips/Staff/default.aspx into your browser.

Below are some examples of topics you can access: - Never sign a document on behalf of an insured.

- Never change carriers without first advising the client.

- Never rely on memory.

Wisconsin STRONG For 85 years Partners Mutual Insurance Company has built lasting relationships with independent agents across the state. We are committed to the independent agency system as the only means to deliver our products and work hand-in-hand to help our agencies grow profitably.

For information about becoming a Partners Mutual Insurance Agent please contact Brian Martin at 262.432.3439; Martin.Brian@PartnersMutual.com or Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com

+ Always advise your clients of the inherent risks of coverage through a non-admitted carrier. + Always document when a client declines to purchase coverage. + Always advise your insured in writing when faced with no market for a particular risk.

Don’t forget, E&O Happens also has resources for agency procedures like checklists, disclaimers, file documentation, sample customer letters and procedures manuals, and records retention recommendations.

You can also find additional information, checklists, etc., on IIAW.com. Cut and paste iiaw.com/ errorsandomissions into your browser ad scroll down to Additional Resources.

As always, I’m only a phone call or email away if you have any questions, or you can’t find what you are looking for.

OCTOBER 2016 | 37

WISCONSIN INDEPENDENT AGENT

PMIC_3-75x4-875_WIA.indd 1

> Meggen Gagas (meggen@iiaw.com) is the IIAW’s Director of Agency Services.

6/30/2016 9:30:19 AM

TEAM IIAW WALKS FOR WISHES

On Sunday, September 18, IIAW staff, family members and friends put on their walking shoes for wishes! In partnership with Trusted Choice, Team IIAW donated nearly $3,000 to Make-A-Wish Wisconsin during the Walk For Wishes event at McKee Farms Park in Fitchburg. Check out our Facebook page (Facebook.com/

iiaofwi - login required) for pics from the event. We extend a big thank you to everyone who participated and donated! Team IIAW, from left: Kim Kramp, Mary Morrison, Greg Morrison, Meggen Gagas, Jeff Gagas, Dylan Banaszynski, Matt Banaszynski, Diana Banaszynski, Clay Vanderleest, and Katie Goswitz.

Matt Banaszynski and his son, Ben, at Walk for Wishes in Fitchburg. The IIAW is proud to sponsor this event again this year.

38 | OCTOBER 2016

WISCONSIN INDEPENDENT AGENT

IIAW EARNS INSURANCE EDUCATION AWARD The IIA of Wisconsin was recognized by the IIABA with a Diamond Excellence in Insurance Education (EIE) Award at the Education Convocation in Chicago on September 8, 2016. The Education Convocation was part of the 2016 Fall Leadership Conference.

“The Big ‘I’ Excellence in Insurance Education awards recognize the outstanding contributions by Big ‘I’ state associations through extraordinary efforts to promote quality insurance education,” says Sue Knobeloch, past chair of the Big “I” Virtual University committee and executive director of Association of Risk Mangers Northwest in Seattle, Washington. “Through a variety of traditional and cutting edge educational programs, recipients of this award have proven their dedication, passion and commitment to education. We are honored to recognize 29 state associations that have taken on the challenge of providing quality education programs to our member agents.”

The EIE awards celebrate and recognize state associations and staff who have made significant contributions to education for their members and the industry in the key area of class offerings, continuing education, professionalism, designation offerings, industry collaboration, planning goals, marketing, resources and more. Each entrant is scored based on a state’s overall educational offerings in a variety of areas and a short essay detailing its overall education programs.

The Diamond level distinction is the top award given to associations.

“The Big ‘I’ greatly appreciates the hard work by our state associations to develop, promote and implement so many outstanding professional education programs,” says Madelyn Flannagan, Big “I” vice president of agent development, education and research. “These continuing education programs are critical to our independent agents, brokers and the thousands of customers they serve.”

Attorney ROBERT PROCTER

Attorney TIM FENNER

Attorney MICHEAL HAHN

Independent Insurance Agents of Wisconsin staff members Haley Clark (Administrative & Marketing Assistant) and Katie Goswitz (Events & Education Coordinator) accepted the Diamond Excellence in Insurance Education Award in Chicago.

AXLEY INSURANCE

ATTORNEYS Providing timely & cost-effective legal services for all types of insurance industry issues.

MADISON, WI 53703 | WAU KESHA , W I 53 18 6 WISCONSIN INDEPENDENT AGENT

80 0 -36 8- 56 61 | L AW @ AX L E Y.CO M | AXLEY.CO M

OCTOBER 2016 | 39

40 | OCTOBER 2016

WISCONSIN INDEPENDENT AGENT

IN MEMORIAM

IN MEMORIAM: JAMES A. MANGOLD JR.

James Allen Mangold Jr., 77, Burlington, died peacefully Aug. 28, 2016, at home surrounded by his loving family. He was born Nov. 17, 1938, in Burlington, to the late James and Marna Mangold.

He spent his childhood in Burlington, but the course of his life changed forever when he moved to Boulder Junction, Wisconsin for work. It was here he would meet Barbara Kaye Alt. He was married to Barb on May 21, 1960, in Boulder Junction at St. Anne’s Catholic Church. They would relocate back to Burlington shortly thereafter, where they would raise their family and spend the next 54 years together.

Jim was a hardworking, loyal and entrepreneurial man, who enjoyed spending time with his family and friends. Jim was an active member of the community and volunteered for many years for the Town of Burlington Fire Department. He was also a pilot and a founding member and past president of the Burlington Flying Club and a member of the Burlington Airport Development Committee. Throughout his life he enjoyed fishing, hunting, snowmobiling and spending time at his vacation home in Manitowish Waters, and was rarely seen without one of his beloved labs.

For many years Jim and his son Jamie raised bison at Buffalo Creek Ranch, growing the herd to over 75 head. He was a founding member of the Wisconsin Bison

Association and an active member of the National Bison Association.

Jim owned the family insurance business, Mangold Insurance, for years, and is truly the one responsible for growing it into the agency it is today. He was a past director of the Independent Insurance Agents of Wisconsin and past president of the Burlington Board of Independent Insurance Agents.

Jim will be deeply missed by his children; Roberta (David) Quist, Davenport, IA, Laurie (Robert) Weinhammer, Krista (Perry) Hintz, and James (Angela) Mangold III, all of Burlington, WI and grandchildren Stephen (Cassandra) Quist, Tori (Joe) Wagner and Jonathan Quist, Nicholas and Aubrey Weinhammer, Cecilia, Jordan, and Olivia Hintz, Addison, Delaney, and Caden Mangold.

He was preceded in death by his wife and parents.

A Mass celebrating Jim’s life was held on Thursday, Sept. 1, at 6 p.m., at the Cotton Exchange Plantation Room, 345 Hickory Hollow Road, Waterford. Relatives and friends visited with the family from 3:30 to 6 p.m. The Burial Service was held at

Cemetery of the Pines, 10731 Hwy. K West, Boulder Junction, on Saturday, Sept. 3, at 10:30 a.m.

Memorials honoring Jim can be made to the Burlington Rescue Squad.

A very heartfelt thank you goes out to family and friends for their love and continued support. The family wishes to extend a special thank you to his caregiver, Vadym Lyubenko, and to all the doctors and staff from Aurora Health Care and Hospice who cared for Jim, including Drs. Melanie Smith, Stephen Welka, and Syed Haider.

Well-wishers can visit www. integrityfunerals.net.

RESTRICTIVE COVENANTS REVISITED:

COURT ADDRESSES EMPLOYEE NON-SOLICITATION PROVISIONS CONTINUED FROM PAGE 23

perception that the issue of whether the restriction went beyond what was reasonable and necessary for the protection of an employer’s legitimate interest. In its decision, the Court noted that the restriction was written broadly enough so that it could prevent former employees from serving as a job reference or even “encouraging a former colleague and friend to retire to spend more time with his family.”

The Court further ruled that the provision was overbroad (and unenforceable) because it went beyond what was necessary to protect the company’s legitimate business interests. The non-solicitation provision was invalidated even though the specific engineer at the center of the case was a “big fish” who was, in fact, helping a competitor to poach Manitowoc employees.

The Lanning decision represents the first significant decision to rule specifically on the enforceability of employee non-solicitation provisions under Wisconsin law. While the decision upheld the right WISCONSIN INDEPENDENT AGENT

of employers to enter into such agreements with their employees, the ruling also means that those restrictions must be carefully crafted to avoid restricting activities that do not pose a legitimate competitive threat.

Due to the wide-reaching implications of the Lanning decision, there is a strong possibility that the Wisconsin Supreme Court will grant the petition for review and hear the case. For the time being, however, employers with employees in the State of Wisconsin will need to carefully consider whether (and how) to amend their pre-existing nonsolicitation agreements. For additional guidance on the recent Lanning decision (or your agency’s employment agreements generally), be sure to consult with competent counsel.

Keep an eye on this column for updates on the status of the Lanning case, as well as any other developments affecting your agency’s restrictive covenants.

OCTOBER 2016 | 41

COMMUNITY SERIVCE

Accepting the check from Bailey (front left), Maddie, and Lily Dove are: Jon McGlocklin (back left), co-founder and president of the MACC Fund and former Milwaukee Buck; Kevin Steiner, West Bend Mutual Insurance president and CEO; and Andy North, a member of the MACC Fund’s Honorary Athletic Board and a two-time winner of the U.S. Open golf championship.

WEST BEND MUTUAL INSURANCE COMPANY

RAISES $644,000 FOR MACC FUND West Bend Mutual Insurance Company, along with independent insurance agents who represent the company and key business partners, raised $644,398 for the Midwest Athletes Against Childhood Cancer (MACC) Fund.

On August 15, donations were raised at a company-sponsored event at West Bend Country Club and at the Prairie Center at West Bend’s corporate headquarters. This is the seventh time West Bend has hosted this biennial event which, to date, has generated nearly $1.7 million for the MACC Fund.

agents and business partners was overwhelming. All who contributed and participated showed how much they care about children who are affected by cancer and other blood disorders. They truly helped the MACC Fund realize its goal of providing hope for these children and their families.”

The check was presented by Lily, Bailey and Maddie Dove. Lily and Bailey are identical twins who were both diagnosed with lymphoblastic leukemia. Their father, Ryan Dove, is director of information security at West Bend Mutual Insurance.

The MACC Fund is a charitable organization founded in 1976 by Jon McGlocklin, former Milwaukee Buck’s player, and former Buck’s announcer Eddie Doucette to support pediatric cancer and related blood disorder research in Wisconsin. Since its inception, the MACC Fund has contributed more than $57 million to this cause. This MACC Fund-supported research in Wisconsin impacts the treatment and cure for children throughout this state, the U.S., and all over the world.

“It truly was an amazing day,” said Kevin Steiner, West Bend Mutual Insurance president and CEO. “The response from our independent

42 | OCTOBER 2016

WISCONSIN INDEPENDENT AGENT

INDEPENDENT INSURANCE AGENTS OF WISCONSIN

2016 PRELICENSING CLASS SCHEDULE Conducted at the State Association Headquarters, IIAW prelicensing classes fulfill the study requirements for life, health, property and casualty. Full course materials — not just an outline — are included with registration. The classes are: ! Designed to help you pass your state licensing examination. ! The quickest way to meet the Wisconsin education hours requirement. ! Taught by experienced insurance professionals who know the business. ! Conducted in a comfortable classroom with free parking. !

Approved by the Office of the Commissioner of Insurance.

2016 CLASS DATES

PRICING & CLASS D E S C R I P T I O N S

Life & Acc./Health

Property & Casualty

Oct. 3-6

Oct. 17-20

Oct. 31-Nov. 3

Nov. 14-17

Dec. 5-8

Dec. 12-15

To register, click the Education tab on IIAW.com.

For Wisconsin exam info, visit prometric.com.

NON-MEMBER PRICING: $335 You may also take individual classes. Class descriptions and prices are below.

Life & Accident/Health Day One (Monday) 8:30 a.m. - 4:00 p.m. ($80) SECTION A: Principles of Insurance & General WI Insurance Law Ethics Day Two (Tuesday) 8:30 a.m. - 4:00 p.m. ($85) SECTION B: Life Policies, Terms & Concepts Day Three (Wednesday a.m.) 8:30 - 11:30 a.m. ($42.50) SECTION B: Life Policies, cont. & WI Life Insurance Law

CLASS SITE/DIRECTIONS The IIAW is located at 725 John Nolen Dr. in Madison, WI. Take the Rimrock Rd. exit (north) off of Highway 12/18 (Beltline), turn right on to John Nolen Dr., then turn right immediately into the driveway. Located near the Alliant Energy Center.

Day Three (Wednesday p.m.) Noon - 4:00 p.m. ($42.50) SECTION B: Accident & Health Policies, Terms & Concepts Day Four (Thursday) 8:30 a.m. - 4:00 p.m. ($85) SECTION B: Accident & Health, cont. & WI Health Insurance Law

Property & Casualty Day One (Monday) 8:30 a.m. - 4:00 p.m. ($80) SECTION A: Principles of Insurance & General WI Insurance Law Ethics Day Two (Tuesday) 8:30 a.m. - 4:00 p.m. ($85) SECTION B: Property Policies, Terms & Concepts

INCLEMENT WEATHER If weather conditions are questionable, use your own judgment regarding your personal safety.

However, any missed class time will have to be made up.

HOTEL INFORMATION Students requiring lodging will receive a special rate at the Clarion Suites, 2110 Rimrock Rd. in Madison. Please call the hotel directly at 608.284.1234 and ask for the independent insurance agent’s discount.

R EGISTER

IIAW MEMBER PRICING: $320 Member pricing given for full class registrations.

FOR

Day Three (Wednesday a.m.) 8:30 - 11:30 a.m. ($42.50) SECTION B: Property Policies, cont. & WI Property Insurance Law Day Three (Wednesday p.m.) Noon - 4:00 p.m. ($42.50) SECTION B: Casualty Policies, Terms & Concepts Day Four (Thursday) 8:30 a.m. - 4:00 p.m. ($85) SECTION B: Casualty Policies, cont. & WI Casualty Insurance Law ! Please contact Katie at Katie@IIAW.com for information about multiple registration discounts.

The course fee includes all class materials. Materials are distributed on the first day of class. You receive: • The Life & Accident/Health or Prop. & Casualty Insurance Study Manual.

• The Intermediary’s Guide to Wisconsin Insurance Law. • The State of Wisconsin Insurance Licensing Candidate Handbook. This provides all the necessary information to obtain a license.

C LASSES

AT

IIAW. COM

®

®

WWW.IMTINS.COM

44 | OCTOBER 2016

WISCONSIN INDEPENDENT AGENT

MARKETING

YOUR LOGO IS YOUR BRAND:

WHAT DOES IT SAY ABOUT YOU? Your logo is the first thing that a consumer sees when they come across your agency; it’s the ultimate first impression. And in looking at your logo for just a second or two, a consumer creates an instant impression of the attitude, standing and style of your agency.

Having a great logo has many benefits in any industry, including insurance. A bad one can turn consumers off permanently.

Your logo can say many things about you and your agency. But does your logo convey the six qualities listed below?

1. I’m a professional.

2. I take my business seriously.

3. I have a clear idea of who I am and what my brand is.

These logos are almost as famous as the brands they represent and for good reason. The consistency and simplicity of the designs make them stand out in a cluttered marketplace.

4. I have extensive knowledge of the audience I’m trying to reach.

5. I’m on top of current trends.

6. I’m different from other insurance options.

If you look at your logo and feel that you’re not achieving these six essentials, consider following these simple tricks and tips.

Simplicity “A simple logo is easy to remember,” explains Laird Rixford, President of Insurance Technologies Corporation (ITC). “Complex logos are often muddled and require expansion of the image when you’re doing marketing, which can cause issues when you’re creating merchandise like embroidered t-shirts.”

“Companies like McDonalds, Nike and Coca-Cola use very basic, simple colors because those are the ones that stand out. Being simple and standing out from the medium is perfect.”

Consistent Branding Using an effective logo gives your agency the opportunity to become recognizable. But in order to create strong brand awareness, that logo needs to be consistent; it needs to be exactly the same everywhere it’s used.

WISCONSIN INDEPENDENT AGENT

“Take the McDonalds logo or the Apple logo: you don’t even need to see their name, you see the logo and you know what organization it is.

The same thing happens in the insurance world,” Rixford says. “These brands have very simple yet distinctive logos that set them apart.”

Creating a style guide so that your logo is never reproduced incorrectly is also extremely important. “We have a set of rules that make sure our logo stands out; a big part of consistent branding is ensuring that you always follow the style guide,” Rixford says.

Get a Second Opinion Rixford says: “A lot of people get passionate about designing their own logo but their visions may not be liked by consumers.”

Rixford points to organizations that have recently changed their logos – Uber, Instagram – and faced outcry from the public.

“These companies were seeing the new logos from their own point of view, but it’s so important to put your ego aside and get a second opinion,” Rixford says. “But, don’t be afraid to change your logo, to let it evolve. Look at Pepsi. They change their logo > Joe Rosengarten writes with the times but it’s always recognizable to for Insurance Business their brand.”

America.

OCTOBER 2016 | 45

FOOD FOR THOUGHT

HOLY COW: SCIENCE DISCOVERS ANOTHER HUGE MYSTERY THE HUNT FOR RED HYDREF

Since it’s October, here are five quick tidbits about this great month: 1. The Welsh word for October is Hydref (originally Hyddfref), a word signifying the lowing of cattle.

2. The Hunt For Red October, with Sean Connery, is the only film with ‘October’ in its title ever to win an Oscar (for best sound editing).

3. More U.S. presidents have been born in October than in any other month.

4. In the U.S., October is National Pizza Month, Popcorn Month, Pork Month and Sausage Month. Not surprisingly, it also National Cholesterol Month.

5. October is not mentioned in any Shakespeare play or sonnet.

Source: express.co.uk

Most people don’t give much thought to grazing cows, but when a team of scientists went through thousands of Google Earth’s satellite images of cows, they stumbled upon a detail that we have missed for millennia: Cows will stand along the Earth’s magnetic poles—facing north and south— whenever they’re grazing or resting. The pattern remained consistent regardless of wind or other factors, and nobody’s quite sure why.

While some animals are known to contain an internal compass, this is the first time it’s been found in a large mammal. Another weird thing is that the nearer they are to the poles, the less accurate they get with the orientation. Scientists don’t know if the phenomenon is related to navigation or some miscalculated attempt at warding off predators, though it appears that it may have a purpose because of the consistency with which it was observed among cows across six continents.

The phenomenon may have an effect on agricultural production, as cows made to stay in an eastwest orientation must be affected in some way, though nobody can say how. (See for yourself: Go to nationalgeographic.com and enter Cattle, Deer Graze Along Earth’s Magnetic Field in the Search bar.) Source: listverse.com & nationalgeographic.com

Crash course in service excellence.

®

Help clients through the stress of an accident with AAA Accident Assist .

One call brings AAA roadside assistance to their crash site, sets the stage for hassle-free repairs, and reserves a rental car for their immediate use.

And you made it happen.

Contact Heidi Nienow today to learn more.

(608) 828-2614

hqnienow@AAAwisconsin.com

It’s just one of the powerful tools AAA Independent Insurance Agents enjoy.

IE-0011

46 | OCTOBER 2016

Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

WISCONSIN INDEPENDENT AGENT

FREE AND EASY

CE Acuity U films are available 24/7.

With a multitude of course titles, we cover all your CE needs! Visit acuityu.com!

Trusted Choice

PRSRT STD US POSTAGE

PAID

®

MADISON WI PERMIT NO. 2506

Independent Insurance Agents of Wisconsin

725 JOHN NOLEN DRIVE MADISON, WI 53713

SAVE THE DATE

DAVID SPADE LIVE! 2017 IIAW ANNUAL CONVENTION MAY 3, 2017 MADISON MARRIOTT WEST MADISON, WI