Wisconsin Independent Agent Magazine September 2019

wisconsin INDEPENDENT AGENT SEPTEMBER 2019

NEW IIAW WEBSITE COMING SOON!

Medical Tourism: What Is It and Are You Covered? p. 9 Avoiding Turnover In High-Performing Sales People p. 16 A Brief Synopsis of ISO’s 2018 PAP Changes p. 20

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To find out more, talk to your West Bend underwriter.

Celebrating 125 years of valued relationships with our agent partners.

wisconsin INDEPENDENT AGENT CONTENTS

Independent Insurance Agents of Wisconsin

4.............. Sales 3 Types of Content That Will Empower Your Sales Team 6.............. Insurance Bartender Out With The Old, In With The New 9.............. Risky Business Medical Tourism: What Is It And Are You Covered?

10-11....... Virtual University Worldly and Not- So-Worldly Wisdom 12............ Commentary From Counsel DWD Issues Marijuana Guidance for Employers 16............ Agency Operations Avoiding Turnover In High-Performing Sales People 20-23....... Education A Brief Synopsis of ISO’s 2018 PAP Changes 25............ Virtual University Ask An Expert 28, 29......Members In The News 30............Food For Thought

ADVERTISERS & INFORMATION 23...........AAA 17...........Acuity 24...........Arlington/Roe 26...........Badger Mutual 13...........Berkshire Hathaway GUARD 7.............DAIS 19...........IIAW Agency Accounting 8.............IIAW Agency Solutions 15...........IIAW CE Education Calendar 27...........IIAW E&O Premium Discounts 26...........IMT 11...........JM Wilson 18...........Keystone 5.............Partners Mutual 14...........Pre-licensing Schedule 30...........Robertson Ryan & Associates 32...........Secura 2.............West Bend Mutual 31...........Western National Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2019

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

2019-2020 EXECUTIVE COMMITTEE President: Chris Costakis Avid Risk Solutions, Middleton President-Elect: Darrel Zaleski Spectrum Insurance Group, Eau Claire Secretary-Treasurer: Marc Petersen A merican Advantage - Petersen & Assoc., Inc., New Berlin

Chairman of the Board: Jason Bott Robertson-Ryan & Associates, Milwaukee State National Director: Steve Leitch Leitch Insurance, River Falls

2019-2020 BOARD OF DIRECTORS

Mike Ansay Ansay & Associates, Port Washington Nick Arnoldy Marshfield Insurance Agency, Inc., Marshfield Mike Harrison R&R Insurance Services, Inc., Waukesha Ryan Leitch Leitch Insurance, River Falls Aaron Marsh Marsh Insurance Services, Inc., Rice Lake Joanne Lukas Szymaszek Johnson Insurance Services, LLC, Racine Chad Tisonik HNI Risk Services, LLC, New Berlin Andrea Nelson Unisource Insurance Associates, LLC, Wauwatosa

IIAW STAFF

Matt Banaszynski Chief Executive Officer 608.256.4429 | matt@iiaw.com Mallory Cornell Vice President and Director of Risk Management 608.210.2975 | mallory@iiaw.com Kim Kramp Association and Agency Accounting Manager 608.210.2976 | kim@iiaw.com Trisha Ours Director of Insurance Services 608.210.2973 | trisha@iiaw.com Ashley Hale Graphic Designer and Creative Marketing Manager 608.210.2977 | ashley@iiaw.com Evan Leitch Technology and Risk Advisor 608.210.2971 | evan@iiaw.com Diana Banaszynski Education Coordinator 608.256.4429 | diana@iiaw.com

On The Cover...

Take a sneak peak at our newly designed IIAW website. Starting in October when you visit www.iiaw.com you will see an entirely new website. The home page which is featured on the cover has drone footage of popular spots across Wisconsin. To read more about the upcoming new design of our website please see the Insurance Bartender article on page 6.

For information on advertising, contact Ashley Hale, 608.210.2977 or ashley@iiaw.com. wisconsin INDEPENDENT AGENT

SEPTEMBER 2019 3

SALES

3 Types of Content That Will Empower Your Sales Team In a perfect world, marketing provides sales with valuable, relevant content that helps convert an interested prospect into a brand evangelist and lifetime customer. But we know it’s not always that simple.

Sometimes not all the content the marketing department creates is relevant to every prospect at every stage of the sales process.

And some businesses simply don’t have the resources to generate all the different types of content necessary for every point in the sales funnel.

Aside from being a core marketing asset, content helps sales teams build trust with prospects, while also demonstrating authority in a particular field to reduce rejections. But identifying which pieces of content convert can be a time-consuming process.

Fortunately, there are a few tried-and-tested content pieces that can serve as the building blocks to the path to purchase.

Here are three types of content that will empower your sales team with the material they need to convert those all-important leads:

White papers and e-books. These resources are

authoritative and provide an in-depth solution to a common problem within the business sector you’re serving. But they are not an opportunity to simply pitch your business or promote a product. If they’re well-written, they should indirectly position your agency as an expert in the industry without being too salesy.

The benefits of white papers and e-books are twofold: First, they help capture leads. Many businesses use them to collect data about people who have downloaded the content and use their details, such as email addresses, to contact them at a later date with additional marketing material.

Under the General Data Protection Regulation, those that have engaged with these pieces of content will need to opt in to receiving additional marketing correspondence in the future.

But those who do opt in can be added to your sales funnel and nurtured into warm leads through a retargeting campaign.

Second, you can use white papers and e-books as ammunition to warm the top of your sales funnel. Hardly anything in this world is free, but when a piece of informative content is offered with no cost, you can use it to give leads teetering on the edge of conversion the push they need to engage.

Product demo videos. By 2022, online videos will

make up more than 82% of all consumer internet traffic, according to Cisco®. Video enables businesses to say a lot in a short space of time. A two-minute video can offer the same information as a 2,000-word article on the same topic. Plus, it takes audiences a lot less time to digest, so they’re more likely to retain the information.

Almost three-quarters of customers would rather learn about a product or service through video than by written word, according to Hubspot®. This alone should convince more businesses to produce videos that demonstrate their product or service, which would give your sales team compelling content at their disposal.

Case studies. Nothing sells better than evidence of

satisfied customers. This is why case studies are one of the most effective and important pieces of collateral a sales team can have in their arsenal.

Case studies are great at winning over leads at the final hurdle.

Prospects want to see credible results your business has achieved for similar clients in the same sector—it enables them to predict the ROI they will achieve by choosing to do business with you.

Case studies also enable sales teams to set expectations.

Sometimes, potential clients have idealistic goals that may be unrealistic for their budget and timeframe. Giving clients access to case studies before they choose to buy helps them develop an understanding of your product, service and the process and shows an example of the results they can expect, making pitching an easier task for your team.

You can also use case studies as a component of drip campaigns to nurture prospects into a sales-ready state. By sending an engaged lead a case study in the final stages of a drip campaign, you are rounding off the email-only introduction stage by validating the value of your product and centering your business as the solution to their problem.

Adam Little is the CMO at Data Dwell®, a sales enablement software provider that helps marketing and sales teams transform the way they work with digital content.

> Adam Little

CMO at Data Dwell®

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

Partners Mutual Insurance is proud of the rich history we have enjoyed since our founding in 1931. So, when we affiliated with Penn National Insurance, a super regional carrier in 2012, we set out to accomplish even more.

Together we bring the personal attention and local focus of a regional carrier, along with the products and services of national carriers.

We want to partner with the best agents and are appointing select top-performing agencies in Wisconsin.

Interested in partnering with a thriving insurance carrier with superior customer experience?

Contact Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com Or visit our website at partnersmutual.com

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

An Equal Employment Opportunity/Affirmative Action Employer ©2019 Partners Mutual Insurance

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

INSURANCE BARTENDER

OUT WITH THE OLD, IN WITH THE NEW It’s nothing new that the entire insurance industry is undergoing a period of rapid change. The IIAW continues to evolve along with its members to embrace this period of rapid change. In October, when you visit www.IIAW.com, you will see an entirely new website.

Now, don’t worry, we are making the content and resources easier to find and reducing the clutter that existed on the old page while improving the user experience. Between new sections, new services and new tools, IIAW.com will be refreshed with a new design and resources.

On the homepage, as you saw on the cover of this magazine, there is drone footage of popular spots across Wisconsin including Madison, Milwaukee, Lambeau Field, Miller Park, La Crosse bluffs and more.

These recognizable locations showcase Wisconsin and provide an eye-catching background. Next, we included a member benefit section, so you can always be reminded of the value you are receiving by being part of the IIAW. Underneath that, you will notice new services we are providing. We now offer customized graphic design work and agency accounting services.

We also continue to offer our risk management and operational consulting services. In the coming months we will be expanding the technology tools, products and resources we offer to help agencies find, select and integrate the right technology solution for your agency.

You may recognize that we maintain 4 different websites including iiaw.com, ProtectYourAgency.com, iiawconvention.com, and iiawsolutions.com. With the new website, we are consolidating all of those webpages, removing clutter and making iiaw.com the one-stop-shop for all of your needs. When you register for InsurCon 2020, the Events tab will have all the information you need while iiawconvention.com will be retired.

On the top menu, there will be an updated section titled “Member Resources” which will consolidate and contain all the all the tools, products and resources from IIAW, Trusted Choice and IIABA. Within the Member Resources tab, a new section called Agency Solutions will provide new and updated thought leadership and tools for you to use in your agency.

The resources will be organized in five key areas: Technology, Financial, Operational, Strategic and Marketing.

We want to make sure you get the most out of your membership and receive a high Return on your investment (membership dues). This is a change we are very excited to bring to you and in October, don’t be surprised with the entirely new web design. The new website will be more user-friendly and refreshed.

We appreciate your continued support and hope you take advantage of all the new resources, tools and services the new website has to offer.

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wisconsin INDEPENDENT AGENT

> Matt Banaszynski CEO of IIAW

Matt’s Mixology Autumn Fizz Ingredients 2 oz Alibi Gin or your Gin of Choice 0.25 oz lemon juice Agave nectar Sparkling apple cider Garnished with Thyme and apple

Steps to Make It Pour gin in shaker, add lemon juice and agave nectar, shake, and then pour into a high ball glass and top with sparkling cider. Garnish with fresh thyme and an apple slice.

AGENCY SOLUTIONS

TRUSTED CONSULTING FOR THE INDEPENDENT AGENT Because we know how important it is for you to succeed in business, IIAW has created a portfolio of solutions built just for you.

TECHNOLOGY

STRATEGIC

OPERATIONAL

FINANCIAL

MARKETING

We help you navigate and choose the best solutions to fit your needs

Protect your investment by reviewing business goals and strategies

Update and improve agency workflows and operating procedures

Review financial processes for accuracy and efficiency

Review your agency marketing efforts and discover helpful tools and resources

YOUR FIRST CALL

We are a trusted partner for independent agents across the nation and a leader in agency risk management and agency solution

Mallory Cornell, IIAW Vice President mallory@iiaw.com www.iiaw.com

RISKY BUSINESS

MEDICAL TOURISM: WHAT IS IT AND ARE YOU COVERED? According to the Medical Tourism Association, medical tourism is when “people who live in one country travel to another country to receive medical, dental and surgical care while at the same time receiving equal to or greater care than they would have in their own country, and are traveling for medical care because of affordability, better access to care or a higher level of quality of care.” The Association also defines a Medical Tourism Facilitator as one who “helps coordinate a patient’s trip to another country for medical care.”

Understanding these terms is essential as a health insurance professional as the medical tourism industry is growing at an estimated 25% per year. Currently, most medical tourists are Americans and the industry has no less than 20 million people who travel across the world every year to receives healthcare services, spending an average of $3,410 per visit.1 As medical tourism continues to become an attractive – and cost effective – alternative for individuals in the United States, insurance professionals will be faced with the task of determining their role in this growing industry. Is important to understand not only where your client might find value in this option, but also what level of service you will provide. Some agents may already be considered Medical Tourism Facilitators if they are providing services to their health insurance clients to help with travel and finding medical care outside of the United States.

In 2012, when this industry was only beginning to show up on the radar, the IIAW collaborated with agents and our partners at Swiss Re to develop a Medical Travel Facilitator Referral

Coverage Extension endorsement for Westport policyholders.

This endorsement extended the definition of “other related services” to include the solicitation of customers to contract with a Medical Travel Facilitator. If an agent provided a referral to a contracted entity that coordinates travel for medical procedures, they would have $1,000,000 E&O coverage limits for that referral.

This endorsement is still available today for a flat rate of $500 and is only available through Swiss Re for Wisconsin agents.

To understand the current state and future growth of the Medical Tourism industry, consider the following response data from the most recent Global Buyers Report. The Global Buyers Report shows responses from 1110 prequalified global buyers of services. Global buyers are individuals or companies that either refer patients to healthcare destinations or are involved in the selection of healthcare providers for the networks offered to traveling patients. Within this survey, 16.4% of respondents were insurance companies and 13.1% were insurance agents/ consultants/brokers. Included below are some responses that should be particularly interesting to those who provide health insurance products.2 For more information on Medical Tourism or the Westport policy endorsement, please feel free to contact Mallory Cornell, IIAW Vice President at mallory@iiaw.com 1

delheit, J. (2019, February 4). State of the Medical Tourism Industry. Medical Tourism E Magazine. Retrieved from www.medicaltourismmag.com

2

edical Tourism Association. (2017, November 1). 2016-2017 Global Buyers Survey. Retrieved M from www.medicaltourismassociation.com

What is the most common reason that the clients/patients that you work with choose to leave their home country and travel abroad for healthcare?

How do your clients/patients pay for their medical travel?

Do you feel the medical tourism industry is growing?

> Mallory Cornell,

IIAW Vice President and Director of Risk Management wisconsin INDEPENDENT AGENT

SEPTEMBER 2019 9

VIRTUAL UNIVERSITY

WORLDLY AND NOT-SO-WORLDLY WISDOM

Several months ago I published a list of some of the best wisdom I have learned over my career. Since then, I have been adding to the list. I wanted to share all my new nuggets of knowledge with you. Know also, that I’m interested in yours. If you send me deep thoughts, I will add them for a future article; and I will give you credit if you desire.

Following are the most current words of wisdom (no repeats).

•

We cannot pass judgement on past actions based upon today’s ethics.

•

“Adulting” is a fictionalized term for “Accepting Responsibility for Your Own Life and Actions.”

•

Political Correctness is a bully that does not allow the real problem to be discussed or solved.

•

You did things you will never tell your kids about. The same goes for YOUR parents.

•

Hate makes it difficult to listen. Hate makes it difficult to be heard.

•

There are two types of pride. One that makes you think you are better than everyone else; such pride is ultimately fatal.

One that allows you to realize that no one is better than you; this pride gives you the freedom to soar.

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SEPTEMBER 2019

wisconsin INDEPENDENT AGENT

•

Negotiation is two people pushing towards the same goal from opposite directions. Conflict is just two people pushing.

•

The value of the sign is not the sign but what it points to.

•

Everyone is the same height at the foot of the cross.

•

Sometimes avoiding the pothole is more dangerous and damaging than running through it.

•

Sinless and perfect are not synonymous. You can be sinless without being perfect; and you can be perfect without being sinless.

•

The world is too big a place to be in competition with everybody.

•

The only person I am required to be better than is the person I am today.

•

If I could go back and change the choices I made, would I? After all, the choices I made are the choices that made me who and what I am.

•

Disappointment is a function of expectation.

•

The surest way to cripple an able-bodied man is to make it so he doesn’t have to work.

•

When other countries are protesting your leader in times of peace, you have a good leader. When other countries are celebrating your leader in times of peace, that’s bad for your country.

•

If no one is talking about you, you aren’t accomplishing anything.

•

•

Love and patriotism grow from sacrifice. Hate and apathy emerge from being given everything.

I don’t break the rules, but I like to know how in case it becomes necessary.

•

If you give people everything they “want,” you can take away everything they need – particularly freedom.

If you look hard enough for evil, you are sure to find it. If you look hard enough for good, you are sure to find it.

•

Statistics is a powerful tool. Be careful, though, statistical “facts” can be used to prove almost anything. (Refer to the wisdom of looking for evil versus looking for good.) To put it another way, figures don’t lie and liars figure.

•

Age forces a certain amount of wisdom upon you; observation and experience completes the process.

•

Experience is something you don’t have until AFTER you need it.

•

It’s ironic that most wisdom is gained AFTER your wisdom teeth are removed.

•

Memories last; money doesn’t.

• •

The most intolerant people are those who scream for tolerance.

•

If another person must agree with you about everything to be your friend, then you probably have no true friends.

•

I don’t have to agree with you to like you. Neither do I have to like you just because I agree with you.

•

I can fear it, fight against it, take flight to escape it, or have faith to face it.

•

To win in politics, you don’t have to win the majority, you only have to win the margin.

•

Scarcity creates community.

•

Knowledge is powerless until it is applied.

•

There is no reason to lay awake all night worrying about what might happen. What’s going to happen is going to happen and there isn’t a dang thing I can do about it at 2:30 in the morning.

•

Practice doesn’t make perfect unless your practice is perfect.

•

A list of “The 7 Deadly Sins” is not written in the Bible, but they are written in every man.

>C hris Boggs

Big “I” Virtual University Executive Director

2019

PRESENTED BY

A M E R I C A

PROFESSIONAL LIABILITY BROKERAGE PROPERTY & CASUALTY GARAGE LIABILITY TRANSPORTATION SURETY PERSONAL LINES

(800) 666-5692 | JMWILSON.COM 1430-AwarenessCamp-WisconsinIndepenAgent.indd 1

8/28/19 2:41 PM

COMMENTARY FROM COUNSEL

DWD Issues Marijuana Guidance for Employers The shifting landscape of marijuana laws around the country leaves no shortage of questions for businesses and individuals not only in the states where some level of legalization has occurred, but of course in bordering states as well. Though marijuana remains illegal in Wisconsin as a matter of federal and state law, more than ten states now have broadly legalized the use of marijuana for recreational use under state law, including our neighboring states of Michigan and Illinois. Recognizing this, the Wisconsin Department of Workforce Development recently issued guidance to employers on workplace policies that restrict employee use of marijuana and other drugs.

In that guidance, titled “Wisconsin Employers and Marijuana,” the DWD notes at the outset that changes in other states’ laws have little legal effect on Wisconsin employers’ rights. For example, Wisconsin employers can still restrict possession, distribution and use of marijuana in the workplace. Employers also can prohibit employees from working while under the influence.

However, the DWD recommends that such policies be put in writing, clearly communicated and consistently enforced.

The DWD also notes that while Wisconsin law prohibits employment discrimination based on the use of lawful products, marijuana remains illegal throughout the United States as a matter of federal law. Consequently, employment actions based on an employee’s marijuana use would not constitute “lawful products” discrimination.

The DWD cautions, however, that there are a few areas where Wisconsin employers could encounter legal pitfalls.

First, employers may not discriminate based on arrest and conviction records, including marijuana-related arrest and conviction records. So, for example, refusing to hire an individual due to a marijuana-related arrest normally would constitute illegal discrimination. Second, it is important for employers to distinguish between illegal drug use

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SEPTEMBER 2019

wisconsin INDEPENDENT AGENT

and addiction, because addiction is a protected disability under state and federal law. Employers may not refuse to hire or take adverse employment action against an individual based on addiction disability.

Most employers also must reasonably accommodate the disability, for example, by permitting the employee to take time off for treatment. Third, the guidance notes that if an employee uses medical marijuana (which is legal in several surrounding states), a Wisconsin employer may enforce workplace policies, but should at the same time accommodate the underlying disability.

Finally, the guidance emphasizes that it is up to individual employers to determine the scope of policies on marijuana use by employees and how to enforce them. The DWD observes that different employers may wish to take different approaches.

For example, some employers may adopt “zero tolerance” policies for use of marijuana for safetyrelated reasons. Other employers may find that “zero tolerance” is neither practical nor desirable given the increasing normalization of marijuana use. In such cases, employers may be best off focusing on whether the use of marijuana impacts the individual’s ability to fulfill job duties, rather than focus on use alone. As always, if you or a client have a question about the intersection of marijuana and the workplace, you should consult competent counsel before taking action.

> Josh Johanningmeier IIAW General Counsel

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2019 Pre-licensing Class Schedule Conducted at State Association Headquarters, IIAW pre-licensing classes fulfill the study requirements for life, health, property and casualty. Full course materials are included with registration.

The classes are: • • • • •

Designed to help you pass your state licensing examination The quickest way to meet the WI 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 Commissioners of Insurance

REGISTER AT IIAW.COM To register, click the Education tab on IIAW.com.

For WI exam info, visit Prometric.com.

IIAW Member Pricing: $340 Pricing given for full class registration Non-Member Pricing $355 You may also take individual classes Contact Kim@iiaw.com for multi-registration discounts.

For any other questions please contact Diana@iiaw.com.

LIFE & ACCIDENT/HEALTH

PROPERTY & CASUALTY

January 7-10 February 4-7 March 4-7 April 1-4 May 6-9 June 3-6 July 8-11 August 5-8 September 9-12 October 7-10 November 4-7 December 2-5

January 14-17 February 11-14 March 18-21 April 15-18 May 20-23 June 17-20 July 15-18 August 19-22 September 16-19 October 21-24 November 18-21 December 9-12

The course fee includes all class materials. Materials are distributed on the first day of class. You receive: • Life & Accident/Health or Property & Casualty Insurance Study Manual • The Intermediary’s Guide to Wisconsin Insurance Law • The State of Wisconsin Ins. Licensing Candidate Handbook (This provides all the information to obtain a license)

DAILY SCHEDULE

Day 1 (Monday) 8:30 am - 4 pm ($85) Section A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 am - 4 pm ($90) Section B: Life Policies, Terms & Concepts or Section B: Property Policies, Terms & Concepts Day 3 (Wednesday) 8:30 am - 11:30 ($45) Section B: Life Policies, cont. & WI Life Insurance Law or Section B: Property Policies, cont. & WI Property Insurance Law Noon - 4 PM ($45) Section B: Accident & Health Policies, Terms & Concepts or Section B: Casualty Policies, Terms & Concepts Day 4 (Thursday) 8:30 am - 4 pm ($90) Section B: Accident & Health, cont. & WI Health Insurance Law or Section B: Casualty Policies, cont. & WI Casualty Insurance Law

CLASS SITE/DIRECTIONS

The IIAW is located at 725 John Nolen Dr. in Madison, WI. When traveling south on John Nolen, it’s the last driveway before Highway 12/18 (Beltline). Located near the Alliant Energy Center and Sheraton Hotel.

INCLEMENT WEATHER

If weather conditions are questionable, use your own judgment regarding your personal safety. If Madison public schools are closed, the IIAW is closed and pre-licensing is canceled for the day. Canceled classes are made up on Friday.

HOTEL INFORMATION

Student requiring lodging will receive a special rate at the Home2 by Hilton and Clarion Suites.

Home2 by Hilton, 2153 Rimrock Rd. in Madison. Please call the hotel directly at 608.949.9650, and ask for the “Independent Insurance Agents of Wisconsin” discount.

Clarion Suites, 2110 Rimrock Rd. in Madison. Please call the hotel directly at 608.284.1234, and ask for the “Independent Insurance Agents of Wisconsin” discount.

CONTINUING

EDUCATION IIAW ONLINE EDUCATION & CE CLASSES DATE

COURSE

TIME

05 09 10 10 11 12 16 23 24 25 25 26 26

Lying, Stealing, New Types of Fraud: The Importance of Crime Insurance Dispelling the Myths of Workers’ Compensation E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two It’s Not My Fault, or Is It? - Liability Issues in Personal Lines Policies Insuring Technology Exposures - Products, Property and Professional Liability 10 Things Every Commercial Lines Agent Ought to Know Personal Auto Policy Cyber Liability Farm Liability Coverages Ethics - Walking a Straight Line Income After Retirement - Where Does the Money Come From?

E&O Risk Management: How to Manage Changing Risks and Opportunities Onsite at the IIAW Office

12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM 9 AM - 3:30 PM

Workers’ Compensation When the Child Becomes the Parent - Aging Parents and Insurance Decisions Contractors Liability Exposures ... Risk Analysis to Coverage Solutions Business Auto Coverages Protecting Your Most Valuable Asset Ethical Dilemmas ... Making the Right Choices Top 10 Countdown of Personal Lines Coverages & Current Issues Insuring Trusts - Protecting Your Clients Wishes Insuring Toys and Collectibles E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two An Agent’s Guide to Insuring Nonprofits

12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM

Businessowners Policy (BOP) ... Planning for the Unexpected Condominiums Additional Insureds and Certificates of Insurance Life Insurance ... Benefits for the Living Homeowners Hot Topics ... What You Need to Know Unlocking the Secrets of D&O Insurance The Insured, Additional Insured vs. Named Insured Debate E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Commercial Property Coverages Exploring Key Concepts Ethics and Agent Liability The Dirty Dozen Twelve Great Commercial Insurance Mysteries

12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM

SEPTEMBER

OCTOBER

10 14 15 15 16 17 21 24 28 29 29 30

NOVEMBER

04 05 12 12 13 14 18 19 19 20 21 25

12 PM - 3 PM 12 PM - 3 PM

TO REGISTER, PLEASE GO TO IIAW.COM

AGENCY OPERATIONS

AVOIDING TURNOVER IN HIGH-PERFORMING SALESPEOPLE The average annual turnover rate for salespeople is 20%. Many factors account for that number, but a sizeable amount of voluntary turnover occurs from burnout and lack of motivation.

To combat turnover, it’s crucial to put added resources behind your onboarding and development process to ensure your hires maintain the engagement, mental toughness, and willingness to tap into the personality traits that contribute to success in the role.

We’ve previously discussed what the different sales jobs entail and which personality traits are best suited to those jobs, but how do you nurture your employees so that they maintain their performance and resist leaving?

Avoiding a Bad Hire

Just because a candidate exhibits the right personality traits doesn’t mean they will perfectly adapt to the role without additional coaching and development. Unproductive workers reduce revenue potential by 40%, and another 36% of your team can also experience negative performance trends when affected by negativity from a low-performing or unhappy co-worker. As we’ve previously outlined, it doesn’t always come down to experience.

Look for candidates who are adept at navigating the modern sales force.

Sales success today isn’t made from just making calls and making connections. Top salespeople also know how to multitask so as to keep records, build relationships, manage data, document conversations, stay up-to-date on industry trends, and function as a consultant rather than just focusing on closing the deal. 79% of buyers say it’s absolutely critical they interact with a salesperson they trust and who adds value to their business—not just a sales rep who wants to make the sale.

Nurture Over Nature

As such, you can’t treat every salesperson the same. Pay close attention to the types of interactions where your team members thrive, and mold your management style to fit their preferred methods of communication. Trying to fit square pegs into round holes can also contribute to turnover rates.

Watch for Burnout High-performing salespeople will often keep their nose to the grindstone in order to meet their goals, and it’s the responsibility of leadership to catch those at risk of burnout and intervene before it becomes a problem. Here’s how you can avoid burnout and maintain motivation in your sales team: •

Set clear, measurable benchmarks — Having small, achievable goals allows your employees to feel productive and successful, even during long stretches of indecision or lengthy sales cycles. Celebrating small successes along the way boosts morale and keeps spirits high.

•

Extra time off — Many companies offer bonus PTO after the busy season. Whether that’s Fridays off throughout the summer or designated long weekends, allowing your busy team a little time for rest and relaxation can afford them the time they need to recharge without sacrificing their progress.

•

Make time for self-improvement — Give your team opportunities to sharpen their skills, learn new methodologies, and continue their education in order to reach their full potential. Demonstrate that you’re committed to their excellence just as much as they are, and you’ll notice a more engaged, motivated team.

Even the perfect salesperson needs to know their manager is invested in them. You’ve placed them in their perfect role, but they can’t succeed on their own. Your salespeople need help understanding and maintaining their motivations, building out their competencies, and developing their work style. Without these, you might start to see that turnover rate creep up — even in your top performers.

Once you’ve carefully chosen and placed your candidate, it’s important that you develop and implement a coaching plan that allows your employees to thrive in a role in a way that’s suited to their particular personality. For more information on the Caliper Essentials for Coaching and how to build a strategic coaching plan for your team members, reach out to our experts about a subscription today!

Working with Introverts Versus Extroverts

View Original Article https://calipercorp.com/blog/avoiding-turnover-inhigh-performing-salespeople/

You might think salespeople are all naturally extroverts, but that isn’t necessarily the case. Extroverts make great salespeople because they love to talk; introverts because they love to listen.

Each can build equally meaningful client relationships through their strengths, but they will likely each have different work styles.

16

SEPTEMBER 2019

wisconsin INDEPENDENT AGENT

>R icardo Roman

Director of Association Management, Caliper

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EDUCATION

A Brief Synopsis of ISO’s 2018 PAP Changes Insurance Services Office (ISO) filed 30 changes to its personal auto policy (PAP) program effective September 1, 2018. The changes are almost a year old and many if not most carriers have adopted the new language.

If you have not yet reviewed these changes, this article quickly addresses the nine (really 10) changes made to the base PAP form (PP 0 01) and the 21 endorsements that were either revised, removed or created.

Note, as the title states, this is a brief synopsis of the changes.

Links to more detailed information about these changes are found at the end of this article.

Revisions to the Base PAP (PP 00 01) ISO cites nine changes to the PP 00 01; however, what is reported as nine base form changes really amounts to 10 changes. Each change is briefly described in the following paragraphs and a few of my own opinions are expressed.

Newly Acquired Auto Wording Prior personal auto policy forms granted insureds automatic coverage for the remainder of the policy term when a replacement vehicle was purchased (the insured sold or traded in their 2006 Chevy Malibu for a 2019 Jaguar F Pace). Liability (Part A), Medical Payments (Part B) and Uninsured Motorist (Part C) were granted for the remainder of the policy term even if the insured did not tell the carrier about the new vehicle.

Physical damage (Part D) was the only coverage that did not automatically continue for the remainder of the policy term. In the past, if the insured wanted collision and/or other-than-collision (OTC), the insurance carrier had to be notified of the newly acquired vehicle and the desire for the coverage. The amount of time required for such notification depended upon whether the insured’s policy already provided collision and/or OTC coverage or not: • If the PAP extended collision and/or OTC to at least one vehicle, the insured had 14 days to notify the carrier of the newly acquired vehicle and the desire for physical damage coverage. The coverage was backdated to the date of acquisition if this requirement was met; or • If no vehicle on the policy had collision and/or OTC, the insured had only four days to provide notice for coverage to be effective back to the date of acquisition.

(Note: these notification requirements apply separately to OTC and collision. If the car had collision but not OTC, the insured had to notify the insurer within four days to garner OTC back to the date of acquisition. If the inured only wanted collision on the newly acquired vehicle, they had 14 days to notify the carrier.)

ISOs new PAP form wording requires the insured to notify the insurance carrier of any newly acquired vehicle whether it’s an additional vehicle or a replacement vehicle within 14 days to pick up any coverage as of the date of acquisition. There is no longer any automatic coverage granted for the remainder of the policy term.

ISO made this change to give carriers the ability to change the coverage symbol and charge the correct premium when necessary.

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wisconsin INDEPENDENT AGENT

Supplementary Payments ISO increased the amount of available payment for loss of earnings to attend hearings to $250 per day from the prior limit of $200 per day. This makes the payment consistent with other ISO forms.

Public or Livery Conveyance Exclusion Two changes made to this exclusionary wording are: 1) The exclusionary wording previously found in the PP 23 40 Public or Livery Conveyance Exclusion was incorporated into the base coverage form; and 2) an exception for volunteer or charitable use of a vehicle was added to the form.

Previously, when an insurance carrier desired to specifically exclude any activities or exposures arising from the use of a covered vehicle as part of a transportation network platform (Uber, Lyft, etc.), the PP 23 40 was attached. The endorsement stated that coverage ceased when the app was turned on and the vehicle was made available for use. This exclusionary wording is now included in the base PAP language. Two endorsements are available to alter this wording.

ISO also addressed concerns that the public or livery conveyance exclusion might be misapplied when a vehicle is used for volunteer or charitable purposes (Meals on Wheels, volunteer medical transportation or other such activities). The concern obviously being that a carrier might attempt to apply the public or livery exclusion when someone is driving an elderly person to a medical appointment as part of volunteer activities. New exception wording specifically states that the exclusion does not apply when the vehicle is being used for these types of volunteer or charitable purposes.

Personal Vehicle Sharing Program Exclusion Endorsement (PP 23 16) ISO withdrew the endorsement and included the exclusionary wording within the PP 00 01. As the name suggests, this required endorsement specifically excludes coverage for any vehicle that is enrolled in AND being used in a vehicle sharing program. When both requirements of enrollment and active use are met, PAP coverage ceases.

Custom Equipment Exclusion Endorsement (PP 13 06) Wording from this required endorsement was incorporated into the base PAP wording leading to the withdrawal of the PP 13 06 endorsement.

The exclusionary wording removes coverage for custom equipment such as (not a complete list): Special carpeting or insulation; furniture or bars; height-extending roofs; body, engine, exhaust or suspension enhancers; winches, or anti-roll or antisway bars; custom grilles, louvers, side pipes, hood scoops or spoilers; custom wheels, tires or spinners; custom chrome, murals, paintwork, decals or other graphics; or caps, covers or bedliners.

In the prior edition of the PAP, coverage for some custom equipment was already excluded. But in the 05 edition, the policy specifically stated that the exclusion does NOT apply to a cap, cover or bedliner in or upon any “your covered auto” which is a pickup. These items will now be excluded.

The newly incorporated wording allows coverage for the first $1,500 of custom equipment. If more coverage is needed, the

insured must attach the Excess Custom Equipment Coverage (PP 03 18) endorsement.

There is no effect on coverage as a result of this change, only a clarification of intent.

ISO stated that there is no impact on coverage; this statement does not appear to be true. Items that previously were specifically excepted from the exclusion are now excluded; and where there was no coverage for any special equipment previously, there is now up to $1,500. This change creates both a reduction and broadening of coverage.

Transportation Expense Coverage ISO’s increased the base transportation expense limit to $30 per day / $900 maximum provided in Coverage D from the previous $20 per day / $600 maximum. ISO believed the prior limit did not comply with current market conditions.

This change has no effect on coverage, it is simply a limits increase.

Racing Exclusion ISO expanded the racing exclusion to exclude coverage for any vehicle located inside a facility designed for racing for the purpose of participating in any prearranged or organized driver skill training or driver skill event.

Industry desire to exclude racing-related activities related is reasonable; but this is an unreasonable expansion of the exclusion. Now any activities occurring on or at a racing facility in an attempt to improve driver skill is excluded.

I want my 18-year-old daughter to become a better driver (and who doesn’t want their teenagers to be better drivers) leading me to register her for a driver skill training class conducted at Charlotte Motor Speedway (about 30 minutes from my house).

With this new wording in effect, I have no coverage under my PAP for any injury or damage she may cause during this training.

This exclusion is short-sighted and a very bad idea. Why would the industry want to punish their insureds when they are trying to improve their driving skills, doesn’t that ultimately improve results on the road in ultimate claims payouts? I understand excluding race training, but I am at a loss why there would be no coverage when I undertake to improve mine or my kid’s driving skills.

Flying Car Exclusion Currently, there are no viable flying cars (though many are trying to build them) but ISO believes technology and economics will soon or eventually allow for flying cars. I can’t say I disagree with this opinion.

Because of this belief, the new flying car exclusionary wording excludes Injury or damage arising from, related to, or occurring as a result of flying cars. So, even getting hit by a car that can fly is now excluded.

In reality, there is currently no effect on coverage, but eventually this may be a limitation on or reduction of coverage. This is a total exclusion - the vehicle does NOT have to be flying at the time the requirement excludes coverage when the vehicle is designed and able to fly.

Duties After a Loss Part E B.3.b. in the Duties After an Accident or Loss provision historically required the insured to submit as often as reasonably requested” to examination under oath. But there was no specific requirement that the insured provide a recorded statement even if requested by the carrier. Thus, the insured could refuse such a request without violating the duties owned and such refusal would not endanger coverage.

ISO added wording requiring the insured to submit as often as reasonably required to recorded statements. According to ISO, gathering a recorded statement is less expensive and less time consuming than an examination under oath.

An additional duty is being placed upon the insured as a result of this change. This change leads to some questions: How often is reasonable? Might this result in carriers looking for more opportunities to search for misrepresentation or fraud? The answers are unknown at this point.

21 Endorsement Additions/Changes/Etc. Revised Endorsements • Trailer/Camper Body Coverage (Maximum Limit of Liability) PP 03 07: New mold exclusionary wording was added to the endorsement resulting in a reduction of coverage. The New exclusionary wording reads: We will not pay for: Loss due to “fungi”, wet or dry rot, or bacteria meaning the presence, growth, proliferation, spread or any activity of “fungi” wet, or dry rot, or bacteria.”

• Coverage for Damage to Your Auto (Maximum Limit of Liability) PP 03 08. ISO inserted the statement, Coverage is not provided on an agreed value basis.” The Endorsement is intended for use with special value autos such as classic and antique autos allowing these vehicles to be written on a stated value basis. The new wording simply reinforced that coverage is NOT on an agreed value basis in an attempt to allay any belief on the insured’s part that the listed amount is the amount that will be paid. Ultimately, this is simply an attempt to more specifically clarify the intent.

Other Insurance Clarification In Coverage Part A, the old” policy wording read, However, any insurance we provide for a vehicle you do not own, including any vehicle while used as a temporary substitute for “your covered auto”, shall be excess over any other collectible insurance.” The perceived problem with this wording was that personal umbrella polices generally state they are excess over any other insurance.

• The PP 03 10 Change Endorsement was withdrawn. This endorsement was intended for use when the policy was endorsed after the effective date in any way to document the date a policy change became effective. Carriers told ISO they did not use the endorsement, so ISO decided the endorsement needed to be withdrawn from use. One effect of the removal of this endorsement was that the 27 endorsements referencing the PP 03 10 all were revised to remove reference to the PP 03 10.

Because two policies state they are excess over other policies, this lead to confusion in the courts. To solve this confusion, ISO added wording to the Part A Other Insurance provision to recognize the possibility of an umbrella and state that the PAP is not excess over a policy that is intended and is specifically an excess policy.

• Three changes were made to the PP 03 11 Underinsured Motorist Coverage endorsement to dovetail with revisions in this base form: ¶ ¶The volunteer or charitable use exception wording was added to the endorsement; ¶ ¶The personal vehicle sharing exclusionary wording is

Continue on page 22.

Education continue. incorporated into the endorsement wording; and ¶The ¶ flying vehicle exclusionary wording was added.

• PP 03 21 Limited Mexico Coverage endorsement was revised because ISO research showed that contrary to popular industry belief and understanding, not all accidents are considered criminal offenses in Mexico. If bodily injury occurs, the accident is a result of intoxication or the driver left the scene, yes, those may be criminal; otherwise, they are likely civil matters. Further, Mexican federal law is not the only law regulating the use of an auto and insurance, the state in which the accident occurs may also assert authority over the accident. So, insurance requirements may differ from locale to locale. The new warning replaces are” and does” with less definitive language and now reads: AUTO ACCIDENTS IN MEXICO MAY BE SUBJECT TO THE LAWS OF MEXICO, NOT THE LAWS OF THE UNITED STATES. UNDER MEXICAN LAW, AUTO ACCIDENTS ARE CONSIDERED A CRIMINAL OFFENSE AS WELL AS A CIVIL MATTER. THE COVERAGE WE PROVIDE YOU BY THIS ENDORSEMENT MAY NOT MEET MEXICAN AUTO INSURANCE REQUIREMENTS. • ISO made minor alterations to the Miscellaneous Type Vehicle Endorsement PP 03 23 introducing a mold exclusion under coverage Part D and adding a definition of fungi.”

ISO also revised the exception to Exclusion 7 to include an extension of coverage to reinforce that coverage is excluded for any motor home a named insured does not own when used as a temporary substitute for a covered motor home.

• ISO revised the PP 03 28 Miscellaneous Type Vehicle Amendment (Motor Homes) to allow an insured to purchase liability, med pay, comp and/or collision when a motor home that is a your covered auto” is rented to others, but of course, this is provided for an additional premium.

• The PP 03 34 Joint Ownership Coverage endorsement was revised by ISO to address current trends in household makeup. Prior wording allowed resident individuals (other than husband and wife), related or not, and non-resident relatives to have and insure joint ownership. The new endorsement provides for a listing of the joint owners; and If the person is a non-resident relative, space is now available to enter the name and address. Coverage information has been removed from the endorsement (because it’s found in the declarations); and the new wording replaces husband and wife” with spouses” (some state laws necessitated this change). The changes had no effect on coverage, but they do allow the carrier increased flexibility to include relationships such as ownership by a grandparent and a grandchild; parents purchasing cars for children who live part time in the household after a divorce; and a parent/child joint ownership where they live in separate residences.

• The PP 03 35 Auto Loan/Lease Coverage endorsement was altered to address: 1) how interest from deferred payments are to be handled; and 2) primacy of coverage when another source of gap coverage applies to the loss. According to ISO, coverage was reduced by these changes.

• The PP 02 01 Suspension of Insurance, or lay up” coverage endorsement was revised adding Other Than Collision to the schedule of coverages that can be suspended.

• The Named Non-Owner Coverage PP 03 22 endorsement was revised making physical damage coverage an available option.

• ISO revised the PP 13 03 Trust Endorsement provide more flexibility to accommodate various trust structures. Multiple 22

SEPTEMBER 2019

wisconsin INDEPENDENT AGENT

revisions were made regarding the naming of the trust, the grantor and the trustee.

New Endorsements • PP 33 05 Full Safety Glass Coverage endorsement is a new optional endorsement that applies when Other Than Collision (OTC) coverage is in effect and the auto is listed in the endorsement.

• Key Replacement and Related Services Coverage PP 33 27 was introduced to keep up with the market. Many (if not the majority of) newer vehicles utilize keys with highly sophisticated electronics that can cost up to $500 to replace. This endorsement pays, without application of a deductible, for: ¶ ¶Reasonable expenses to get into the car if the fob is lost or stolen; ¶ ¶The cost to replace and program keys or key fobs lost or stolen; and ¶ ¶A maximum limit is found in the schedule for each listed auto.

• Pet Injury Coverage PP 33 31 was introduced because of current trends and the fact that some carriers already offer this coverage. Coverage extends from Part D and the insured chooses a limit with no applicable deductible.

Coverage applies only when: ¶Collision ¶ and OTC applies to at least one vehicle; ¶ ¶The pet (limited to dog or cat) owned by a you” or family member” is in the car at the time of the accident; and ¶ ¶The car qualifies as a your covered auto” or a non-owned auto.”

Covered costs include vet expenses or cost to cremate or dispose of the pet and incurred within one year of the date of loss. The limit is a per loss (per occurrence) limit.

• ISO introduced the PP 33 30 Child Restraint System Coverage optional endorsement to keep up with the market. Carriers using proprietary forms already provide this optional endorsement. The PP 33 30 provides coverage for the value of a child restraint system following an accident.

Coverage extends from Part D and applies only when: ¶Collision ¶ and OTC applies to at least one vehicle; ¶ ¶The child restraint system is owned by the you or a family member;” and ¶ ¶The child restraint system is inside a your covered auto” or a non-owned auto” at the time of the loss.

A maximum limit is shown in the schedule or declarations and provides replacement with like kind and quality without application of a deductible.

• The PP 33 10 Replacement Cost Coverage Endorsement, as its name suggests, replaces ACV loss settlement with replacement cost. To qualify for replacement cost, the covered auto must: ¶ ¶Be added to the policy and the loss must occur within 24 months of purchase (and the insured must be the original owner); and ¶ ¶Have less than 24,000 miles at the time of the loss; and ¶Suffer ¶ a total loss There is no automatic coverage for a newly acquired auto or a leased vehicle. Coverage is subject to a deductible and there are a few other provisions: ¶ ¶The amount of coverage is limited to the amount to

replace with a new vehicle of the same make, model, trim level and equipment (or its equivalent). It does not say model year. ¶ ¶If the same make, model, trim, equipment is not available then the carrier will pay for one similar, but not to exceed 110% of the MSRP of the covered auto.

• Additional Resident of Your Household PP 33 37 was developed to accommodate current living arrangement trends. An additional insured” type endorsement, ISO anticipates this endorsement will be used to extend coverage to individuals such as live-in nannies, roommates, domestic partners (unless law finds otherwise) and significant others who do not own but have access to the named insured’s vehicle(s). The endorsement:

That’s All But You Can Get More Although ISO filed these changes with an effective date of September 1, 2018, not every carrier adopted the changes immediately. And two states did not adopt the changes at all, Hawaii and North Carolina.

Additionally, there are several states where ISO does not establish effective dates, these include California, Colorado, Texas and Virginia.

Regardless, every agent must understand these changes. This article is but a quick review of these changes; for more a deeper dive into these changes, the VU offers an on-demand webinar and a Risk & Reality Report which is a white paper based off the webinar.

¶Allows ¶ the naming of an additional resident; ¶ ¶Amends the definition of family member” to include the named resident; ¶ ¶Specifies that the carrier is depending on the insured to be truthful; and ¶ ¶Requires the insured to notify the carrier if residency changes.

• Personal Property Coverage PP 33 42 is a Millennialbased endorsement designed to extend homeowner-like (not homeowners’ coverage) personal property coverage to personal property anywhere in the world. Coverage is: ¶Provided ¶ on an open peril basis;

>C hris Boggs

Big “I” Virtual University Executive Director

¶Paid ¶ on an ACV basis with a replacement cost option.

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ASK AN EXPERT

?

VIRTUAL UNIVERSITY

Q: Insureds Writing & Submitting Certificates of Insurance What is your experience with insureds writing and submitting a certificate of insurance to obtain a contract that has not been submitted by the producer and that does not reflect the correct policies in force? What should agencies do in this scenario?

A: Sounds like fraud to me. I’d turn them in to the regulator.

---------This practice is quite common. Some contractors deliver COIs to a prospective customer where coverage may - or may not be in place.

Notify any identifiable COI recipients the documents they received were not authorized nor reflective of policies in place. If the contractor is one of your insureds, have a stern conversation about COI requirements. You may also decide to fire the insured.

I guess my best recommendation is that there be some means of clear validation on certificates issued by your office, as well as a disclaimer in case such validation is not evident. In the immediate situation, I would immediately notify the insured, the insurer, and the recipient of the certificate of insurance that it is invalid. Whether to keep the insured on the books will come down to a judgment call on your part.

---------That’s illegal in every state. The COI must be signed by the licensed agent. One word: Fraud!

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----------

Fire the insured. That’s blatant fraud.

I’m confused if this is your insured or another insured you found doing this. Either way more than likely it’s against the law.

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One caveat, if this isn’t your insured make sure what you are saying is correct before accusing someone of something, there are times on new policies when carriers might OK the use of a binder # in place of the policy # until the policy is issued.

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If this is your insured, report this to your carrier (all lines), what you know - your insurance companies should know, that’s in your contract. I assume the carriers will cancel or non-renew and the customer can find another agent.

As far as reporting the insured to authorities that’s beyond the scope of this forum, I would suggest you contact your attorney and ask for legal advice on that matter.

---------End the agency relationship with the client via a letter from your lawyer. What you describe is fraud. If the client did this once... has the client done it before and will the client do it again - all without your knowledge?

---------Dismiss the client as fast as humanly possible. Reach out to the recipients advising them that the documents submitted were under false pretenses. Also contact the carrier advising them of the breach and then followed up with law enforcement.

---------It happens more often than it should. It is a fraud and should be reported to the state DOI Fraud unit.

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That’s a fraudulent certificate. Contact the certificate holder and inform them. You might want to report this to the insurance department too.

Do everything you legally can do to avoid doing business with this client.

---------If the insured is simply issuing his own homemade certificates, you should warn him that only agents and insurance companies can issue them. If he’s signing your name or using the name of your agency without your permission, he’s probably committing a fraud, and the warning should come from your attorney. Short answer: Insured’s shouldn’t issue their own certificates.

---------Insureds creating their own unauthorized certificates is insurance fraud.

---------Missing some information. How did the insured issue a COI? If the agency has made such self service available to the insured, that’s one thing; but if the insured took an old COI and changed it, I would call the holder and tell them and then figure out what, if any, laws have been broken and turn them in. This is fraud and needs to be dealt with as such. This is a client you DO NOT want.

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wisconsin INDEPENDENT AGENT

SEPTEMBER 2019 25

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company’s expansion plans. He joined West Bend in 1999 as state sales manager and was named director of sales in 2001, assistant vice president of sales in 2007, and vice president of sales in 2009.

MT MORRIS MUTUAL EARNS TOP STATE SPECIALIST AWARD FROM DEMOTECH, INC.

WEST BEND MUTUAL INSURANCE ANNOUNCES PROMOTIONS

WEST BEND, WI (August 1, 2019) – Kevin Steiner, president and CEO of West Bend Mutual Insurance Company, recently announced the promotions of five company executives.

Heather Dunn is now senior vice president, as well as chief financial officer, a position she’s held since 2017. Dunn joined West Bend in 2008 as controller and was promoted to assistant vice president - corporate accounting in 2010, and vice president and controller in 2014 before being named vice president – chief financial officer.

David Ertmer has been promoted to senior vice president – claims and is responsible for all claims operations at West Bend, including the company’s specialty lines and mono-line workers’ compensation divisions. Ertmer joined West Bend in 2009 as director of workers’ compensation claims and was promoted to vice president - claims in 2011.

Rob Jacques has been promoted to senior vice president - commercial lines, overseeing all commercial underwriting operations at West Bend, including the company’s specialty lines and mono-line workers’ compensation divisions. Jacques joined West Bend in 2000 as a regional sales manager. He became a regional underwriting manager in 2003, assistant vice president - commercial lines in 2005, and vice president - commercial lines in 2007.

Jim Schwalen has been named senior vice president – personal lines and marketing, continuing in his duties of overseeing the personal lines underwriting division and marketing division, as well as the company’s service center. He’s also responsible for the company’s growth strategy. He joined West Bend in 1997 as assistant vice president – personal lines. He was promoted to vice president -personal lines in 2004, and in 2008, was named vice president personal lines and marketing, a role that included oversight of the company’s service center.

Kelly Tighe is now senior vice president – sales and will continue to lead the company’s sales efforts, including oversight of the company’s distribution system. He’s also responsible for the

28

SEPTEMBER 2019

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Mt. Morris Mutual Insurance Company has earned the 2019 Stakeholder Team Accomplishment Recognition™ (STAR) Award from Demotech, Inc. for its operating results in 2018.

A total of 2,634 Property and Casualty carriers were reviewed and analyzed, with only 27 meeting each of Demotech’s objective operating criteria. Mt. Morris Mutual was one of only ten carriers in the State Specialist Company Classification category to earn a 2019 STAR award.

Demotech developed the Stakeholder Team Accomplishment Recognition™ Award to identify and recognize insurers that were able to satisfy all stakeholders, not just some interested parties.

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Mt. Morris Mutual is honored to be one of the 27 carriers out of the 2,634 reviewed to receive this award from Demotech.

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ANDREW KOEHL JOINS COMPASS INSURANCE SERVICES AS VICE PRESIDENT Andrew Koehl has recently been named Vice President for Compass Insurance Services. Andrew will focus on agency growth and operations.

Prior to joining Compass Insurance, Andrew was the Director of Sales and Business Development for Aspirus Arise Health Plan, a 2015 start-up in North Central Wisconsin.

Andrew holds a B.A.A. from Lakeland University J. Garland Schilcutt School of Business and Entrepreneurship.

Andrew lives in Wausau with his wife Erica and two sons, Bode and Parks.

Compass Insurance Services is a full service independent agency with offices in Kronenwetter, Wausau and Stevens Point. Compass Insurance Services provides Business Insurance, Personal Insurance, Employee Benefits, Life and Health for families and businesses in the Central Wisconsin area.

IMT COMPUTER SERVICES ACQUIRES PDSPECTRUM INSURANCE PROCESSING PLATFORM West Des Moines, IA, August 26, 2019 — IMT Computer Services, a division of IMT Insurance in West Des Moines, Iowa, has acquired Priority Data’s PDSpectrum insurance processing platform. PDSpectrum is a web-based, fully integrated core policy processing platform that provides underwriting and rating tools, billing and claims management systems, accounts payable and general ledger platforms, and more, to insurance carriers and Managing General Agents (MGA).

Modern, web-based systems are one of the greatest needs and requests of Farm Mutual insurance companies as they consolidate and grow. In an industry facing rapid consolidation and fast-changing technology needs, this acquisition will allow IMT Computer Services to better serve nearly 400 mutual insurance companies in 19 states.

“We have always been committed to supporting the Farm Mutual industry, and this acquisition underscores our commitment. Every single one of our customers has been around for more than 100 years. As their partner, we want to help them grow and succeed throughout the next 100 years,” says Aaron Madison, Director, IMT Computer Services.

The IMT Computer Services and PDSpectrum teams will combine and soon begin working to bring products and services together.

IMT Insurance takes pride in providing exceptional products and customer service. The acquisition of PDSpectrum will promote innovative solutions and support for IMT’s Mutuals and Independent Insurance Agents.

SENTRY INSURANCE TO BUILD A BOUTIQUE HOTEL AT GOLF COURSE Sentry Insurance has announced plans to build a boutique hotel within SentryWorld, the company’s 18-hole golf course facility in Wisconsin.

The golf course is located across the street from Sentry Insurance’s headquarters in Stevens Point, WI. A release said that the planned upscale hotel will be built near the golf course’s 18th fairway and will feature “spacious suites and intimate gathering spaces,” which are ideal for events and gatherings.

The hotel, which is scheduled to open in the spring of 2021, will be designed by Swaback Architects, which helped redesign the SentryWorld complex in 2013.

“Sentry thrives on building relationships and delivering exceptional customer service,” said Sentry Insurance president, chairman of the board and CEO Pete McPartland.

McPartland added that owning and operating a boutique hotel within Sentry’s campus will allow the company to provide its business insurance customers, agents, and brokers “a truly distinctive experience.” To regular visitors of the SentryWorld golf course, the chief executive said that the hotel will provide them with “extraordinary comfort and amenities.”

“The Stevens Point area has a wide variety of accommodations for visitors. Adding a luxury hotel to the mix will serve those seeking that one-of-a-kind experience,” commented Stevens Point Area Convention & Visitors Bureau executive director Sara Brish, who also said that the hotel will help attract more weddings, corporate retreats and tradeshows to the area.

wisconsin INDEPENDENT AGENT

SEPTEMBER 2019 29

FOOD FOR THOUGHT

There’s an encrypted monument outside the CIA. A sculpture outside CIA headquarters in Langley, Virginia, fittingly includes so-far-uncracked codes. Created by artist Jim Sanborn, the sculpture features four inscriptions, three of which have been cracked, but the forth which no one else has been able to figure out (though in 2010 the artist offered one clue: the letters NYPVTT are an encryption of the word BERLIN).

Wikimedia Commons/Jim Sanborn

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