The Tennessee Insuror August 21 by Insurors of Tennessee

THE TENNESSEE

INSUROR August 2021 Volume 32 | Number 4

Coming in with a Bang T YOU ADMI

The Insurors 128th Annual Convention is Almost Here

T E K C TI E! R U YO S HER I

tion n e v n al Co oals

Annu | Marriott Sh h t 8 2 1 9 r 16-1 e Octob

6 10 12

What do Customers Expect from Salespeople? Capital Gains Tax Increases...

Bad & Unethical Public Adjusters

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contents

THE TENNESSEE

INSUROR Vol. XXXII, Number 4 August 2021

features

Phone (615) 385-1898 Toll Free: 1-800-264-1898 Email: info@insurors.org Editor: Ron Travis Publisher: Market Retrievers LLC

4 Coming in with a Bang! INSURORS OFFICERS

President .................................................................... Bob McIntire IIABA National Director .............................. Cindi Gresham, CIC VP, Region I and President Elect ................... Norfleet Anthony Vice President, Region II .................... Matt Swallows, CIC, CRM Vice President, Region III ........... Kym Clevenger, CPCU, CACW Treasurer/Secretary ............................. John McInturff III, ARM Director, Region I ......................................... Richard Whitley, CIC Director, Region I ........................................... Jamie Williams, CIC Director, Region I ...................................................... Eric Collison Director, Region II ..................................................... Taylor Porch Director, Region II .................................................... Reno Benson Director, Region II ...................................... Paul Steele, CIC, CRM Director, Region III ...................................... Brandon Clarke, CIC Director, Region III ........ Cindy Widener Winn, CPA, CIC, CBIA Director, Region III .......................................... Bill Oldham III, CIC Director, At-Large .............................. S. Keith Phelps, CIC, CRM Director,. Young Agents ...................................... Derek Wright

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INSURORS OF TENNESSEE 2500 21st Avenue South, Suite 200 Nashville, TN 37212-0539 www.insurors.org

The Insurors 128th Annual Convention is Almost Here

Young Agents Leadership Conference

What Do Customers Expect From Salespeople?

Capital Gains Tax Increases Will Accelerate M&A Activity

Bad & Unethical Public Adjusters

Fair Owner's Compensation

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From Your President

A Bright Future Ahead

From Your IIABA National Director

From Your CEO

Education Calendar

Government & Legal Update

Company Spotlight

Vendor Spotlight

Agents for the Community

The Future Matters

I Want to See You There!

Government Update: With Delta Variant, C-19 has Political Staying Power Delta Dental Engage PEO

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Member Tips

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Coming in with a Bang The Insurors 128th Annual Convention is Almost Here

We're less than two months away from the Insurors 128th Annual Convention, taking place October 16-19 at the Marriott Shoals Resort & Spa in Florence, Alabama. We have a great lineup planned for you, and we'd love to have you involved in this year's event! Check out our schedule below, register online now, or get more information at www.insurors.org.

Monday, October 18 8:00 - 10:00 am 8:00 - 10:00 am 8:00 - 10:00 am 10:00 - 11:30 am Noon - 5:30 pm 12:00 - 3:00 pm 12:30 - 4:00 pm 1:00 - 2:30 pm 6:00 - 8:00 pm 6:00 - 7:00 pm 8:00 - 10:00 pm

Registration Open Exhibit Hall and Trade Show Exhibit Hall Breakfast Agent General Session Annual Convention Golf Tournament Specialty Insurance Seminar Clay Shooting Outing Spouses Event Company Night InsurPACTN Donors/Past Presidents Reception All-attendee Reception

Tuesday, October 19 Saturday, October 16 (all times CT; subject to change)

8:00 - 11:00 am Association Day Breakfast & Annual Meeting

6:00 - 7:00 pm "First Timers" Welcome Reception 7:00 - 9:00 pm Football Viewing Party

Our special guests performing and speaking at the event will include Grammy award-winning singer/songwriter Paul Overstreet, motivational and sales coach Manley Feinberg, co-host of The Insurance Guys podcast Scott Howell, and Big "I" National Executive Committee member Mike McBride.

Sunday, October 17 9:30 - 10:30 am Past Presidents’ & Board Breakfast 11:00 am - 12:30 Partners Program Luncheon 11:30 am - 12:30 Board Spouse Luncheon 1:00 - 6:00 pm Registration Open 2:00 - 3:00 pm Breakout Sessions 3:00 - 6:00 pm Exhibit Hall and Trade Show 4:00 - 6:00 pm “Meet the Vendors” Exhibit Hall Reception 6:30 - 9:00 pm Opening Night Celebration & Dinner 9:00 - 11:00 pm Young Agents After Party 4

Our functions will include our trade show, annual golf outing at the Robert Trent Jones Schoolmaster Course, clay shoot at Muscle Shoals Trap & Skeet, specialty event at the Frank Lloyd Wright-designed Rosenbaum House and more. We'll also have some special events and surprises that are sure to make you glad you came. We can't wait to see you there! u The Tennessee Insuror

Young Agents Leadership Conf. Relaunched Event a Success for Our Industry's Future When Insurors President Bob McIntire said he wanted to "bring back" the Young Agents Conference that so many of our Association leaders have talked about for years – our Young Agents Committee got to work. With the vision of creating both a place to network and learn as well as an environment of getting to know each other and our Insurors Board, it wasn't an easy task. But the Committee, led by Derek Wright of Graham & Cook in Knoxville, was up for it.

our industry Partners, the Insurors Board of Directors, and other Association leaders. We've had some great feedback on the event so far, but even if you missed this year's conference don't worry, we're planning to make this one an annual affair! u

The group put together an outstanding lineup of speakers, featuring some of the most well known "influencers" in the insurance industry: David Carothers, Ashley Fitzsimmons, Bradley Flowers, Scott Howell, Sydney Roe and Olivia Schmitt led workshops and recorded content for their podcasts and social media. The topics for the event included sales, marketing, data, and culture, and there was plenty of great discussion and interaction with the group. Hosted at the Dollywood DreamMore resort, there were 37 Young Agents in attendance, representatives from some of

Bradley Flowers sharing some knowledge with the group

Our Young Agents attendees gather at the close of the event

Guest speaker David Carothers addresses the crowd

YA Committee members Derek Wright, Matt Felgendreher, and Cy Young

The group enjoying some leisure time during the evening event

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What Do Customers Expect From Salespeople? written by John Graham, GrahamComm

We all know what we expect from customers – or at least we think we do. We want them to give us their attention, give us a fair hearing, and be open to our recommendations and pay what they owe us. Some customers live up to this standard and some don’t make the cut. Just about everyone in sales also works at making sure customers like them, the cornerstone of a good relationship. That’s not all. They also expect customers to be frank and open, even though some have an agenda they keep well hidden, leaving us guessing and suspicious. Whether accurate or not, most sales reps expect buyers to believe their representations are in the customer’s best interest. All this shouldn’t be surprising to anyone in sales, since this is how most reps like to think of themselves.

What Customers Expect from Sales Reps Even so, all this is only half the story. What’s missing is at least equally or more important today when it comes to success in sales. In other words, it’s time to ask, “In the current state of the economy and what consumers have been going through the past year of the pandemic, what do customers expect from salespeople?”

1. Customers want to do business with someone who understands them. Working with a salesperson is like dating, except for one major difference. The conversation goes from “Hi, I’m Bob. Should we get married now, or see how things go in the next seven minutes?” If customers are going to spend time with you, they expect some indication of “instant friendship” or compatibility that tells them it’s going to be OK. They’re going to be comfortable. This is what people mean when they say, “That’s a great salesperson.” If this message isn’t clear, they’re gone. 2. Customers expect a salesperson to be responsive to their situation. Or, to put it another way many customers want to tell you their “story” as the way for you to understand and help them. Don’t cut them short and plow ahead with your own spiel. If you do, they will be offended and feel rejected. Most customers know what they want to say, but they may not know how to express it. They are hoping that you will figure it out. If you do, they will reward you by giving you the sale. 3. Patience sends the message to customers that you want the sale. It’s not what you say, but how you act that demonstrates you get it. If you do, then it’s time to slow down, both in terms of your manner and how fast you are speaking.

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It takes time for information to sink in. That’s why consumers don’t want to be rushed or pushed. While they may have tolerated some nudging or even a little push in the past, but not now. “This is a great price, but the inventory is tight,” says the rep. That was a year ago, but not now. No matter what it is, consumers will find what they want at a price they want to pay sitting in their sweats in front of a screen. 4. Customers expect salespeople to be reliable. Or, to put it more accurately, there are no second chances; customers don’t come crawling back. They know their options; they’re not alone. Social networking is empowering. They trust their friends, relatives and neighbors, which just happens to be an interesting description of small communities, places where people watch out for each other. When a salesperson gets a bad reputation, the news spreads like a virus. 5. Customers expect salespeople to be a resource. But there is only one reason Jeff Bezos is one of the largest retailers in the world: consumers are suckers for convenience (read: immediate gratification). Something happens in the human brain when we see the words, “You’ll have it tomorrow.” But there’s another part of the brain that pulls toward “due diligence,” taking responsibility for making good decisions. Finding a salesperson who fuels that desire by sharing their knowledge and expertise, along with a give-and-take, is immensely rewarding. 6. They expect you to be candid with them. Some in sales think it takes painting a perfect picture of what they’re selling to make the sale. It isn’t. Everyone knows nothing is perfect. What’s refreshing is when a salesperson says, “This is a terrific product. My customers are more than satisfied with it, but it’s important that you follow the periodic service instructions. If you like, we’ll send you reminders.” Customers equate candor with honesty and transparency.

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7. Customers expect follow-through. It’s a useful way to judge a salesperson’s performance before signing the order. “I’ll get back to you late this afternoon with answers to your questions,” says a smiling rep, who gets busy and forgets about it and then blames on someone else. Whatever picture the customer had of the salesperson changed, and not for the better. All of this may come across as unnecessarily obvious to both customers and sales reps. Perhaps. But even physicians can turn their backs on the Hippocratic Oath to “do no harm” and some salespeople play by their own rules, which may not be life threatening, but do harm, nevertheless, both to them and their customers. About the Author John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com or johnrgraham.com. u 8

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Capital Gains Tax Increases Will Accelerate M&A Activity written by Brian McNeely, Reagan Consulting sponsored by our partners at 2020 was another record year for insurance agent and broker merger & acquisition activity. In total, 728 transactions were completed and the prices related to those transactions were also at record-high levels. Imagine telling someone just five years ago that even a premier asset would be trading at guaranteed multiples of more than 14 times earnings before interest, taxes, depreciation and amortization (EBITDA) – you would have been accused of being under the influence of a narcotic. However, the robust activity of 2020, specifically in the fourth quarter, appears to have created a hangover in early 2021. In the first quarter of 2021, 152 transactions were completed, versus 177 in the same period in 2020, a 14% decrease. This slowdown is largely the result of transactions that would have otherwise closed in the first quarter of 2021 being accelerated into the fourth quarter of 2020 to protect against a retroactive capital gains tax rate increase.

inflation concerns have presented additional challenges to already ambitious plans. As a result, many experts believe capital gains rates will only increase to 28%-30%, which is still a massive jump, and go into effect on January 1, 2022. Nevertheless, a capital gains increase remains almost certain and may cause agency owners interested in selling their business in the next three to five years to accelerate their timeline to 2021. By doing so, sellers can take advantage of the current market where transaction multiples are at all-time highs and capital gains rates are still at 20%. The chart below illustrates how the change in capital gains tax rates affects sellers' net proceeds.

That slowdown is about to end, and we will see an acceleration in the remainder of 2021. The reason: Uncle Sam.

The Government's Impact on M&A The Biden administration has put forth a widely publicized plan to increase capital gains rates from 20% to 39.6% for the highest wage earners, which likely includes agents and brokers selling their business. And these increases could be made retroactive to a date in 2021. Both January and October are possible options. However, the recent job report and

History is a good indicator of the impact of a capital gains increase on M&A in the insurance agent and broker market. To evaluate, we looked back to 2012, when capital gains rates increased from 15% to 20% on January 1, 2013. In 2012, the number of transactions increased 35% in the last three quarters versus 2011, including a 69% increase in the fourth quarter. If the same rush to beat Uncle Sam occurs this year, we might expect to see the same number of transactions in the last three quarters of 2021 as were done in all of 2020 – 728 transactions. This does raise some capacity issues. Can buyers handle this type of increase in volume both from a resource perspective and a capital perspective? The typical process from beginning to end for a seller is four to six months. So, can sellers meet the required timelines that may need to be accelerated? Many assume that transactions can and will get done. That said, a capital gains tax rate increase appears inevitable and those sellers that have decided to sell may serve themselves well to act sooner rather than later. About the Author Brian McNeely is a partner at Reagan Consulting. u

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Bad & Unethical Public Adjusters 11 Key Questions to Help Your Clients Avoid Hiring a Bad One written by Chris Boggs, Big I VU Hurricanes and other natural disasters draw public adjusters to the affected areas like sharks are drawn to the smell of blood. Another public adjuster likened the influx to a pack of wolves hunting prey. Don't misunderstand, public adjusters can be beneficial in certain circumstances because of their property loss experience. A good, ethical public adjuster can be a valuable advocate for the insured because most insureds have never suffered a loss and don't know all the requirements. But not every public adjuster is good and even fewer are ethical. In the wake of Hurricane Florence, count on at least some of your insureds being contacted by a public adjuster. Also, be prepared for the few who will contract with a public adjusting firm. As the agent, you are still the primary contact following a loss, be ready to prepare your clients for the sales pitch coming from these public adjusters. Teach your clients to ask these 11 key questions BEFORE hiring a public adjuster:

1. Does the adjuster have a state-issued public adjuster license? Public adjusters are generally required to be licensed in the state in which the property is located. Make sure the insured gets or sees a copy of the license. 2. Where is the public adjuster based? Even if the public adjuster has a license issued by the state in which the property is located, is the adjuster domiciled in the state? There are state-to-state variations in coverage, if the adjuster does not commonly work in the state in which the property is located, he/she may not know all the laws and requirements. 3. Is the adjuster a member of the National Association of Public Insurance Adjuster (NAPIA)? Although being a member of NAPIA does not guarantee the ethics of the public adjuster, members of the association are required to follow a strict code of ethics. continued on page 48...

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Fair Owner's Compensation

written by Al Diamond, Agency Consulting Group

Here's a story – once upon a time there were two friends that wanted to start an agency. Since they are friends, they figured the best way of avoiding any animosity over compensation, production and management issues each would agree to equal compensation through the duration of the partnership. So they opened the agency; both are key contributors to the agency, both are vibrant, talented and skilled, therefore the agency would comfortably grow. Now, 33 years later, one of the partners needs to retire. The other partner can't wait. Why? Back in 1997 the first partner had a heart attack. Since the heart attach, he hasn't pulled his weight in the agency. The healthy partner continued to support the weaken partner because they are friends and because both fully expected the partner to recover and regain his position with the agency. But more importantly, when they decided to open the agency they agreed to equally be compensated – and both were honorable men.

Things – and Financials – Change During the ensuing period, the agency grew from nothing to $2.3 Million of revenue, primarily on the back of the second owner (it was about $700k in 1997). In many ways he considered his partner to be an obligation and a part of life and he didn't begrudge paying his partner an ever-growing compensation because of the agency's success, but in the recesses of his mind, the fact that the intention of both to equally cause the business to thrive continued to fester. Only when the partner suffered his second heart attack recently and decided that it was time to depart did the full ramifications of their original decision hit home for the surviving partner. The value of the agency was over $3.8 million (it continued to grow its client base even through the soft market and generated a consistent strong profit because of the conservative way the agency was operated by the working partner). The partner who was retiring was “responsible" for the L&H production of the agency (about $150,000) and managed one person (nominally). For that he received over

$300k/yr. and was now going to get an additional $1,900,000 over five years, draining the agency's profits until 2022 one year AFTER the working partner himself wanted to retire. These are two fine people. The second owner offered to cut his compensation a number of times but, recognizing his partner's financial situation, the healthy partner declined. He figured he was making a good living and should honor their agreement. He never thought about the situation that would ensue when the partnership ended. Now, the second owner is no longer responsible for his own affairs. His attorney is not interested in doing “the right thing" for the surviving partner, only in maximizing the return to his client and/or his estate (from which his fee is derived).

What Could Have – or Should Have – Been Done We all feel badly for the partner whose health was affected. BUT A PRODUCTIVITY BASED COMPENSATION PROGRAM WOULD HAVE RESOLVED THIS ISSUE FROM THE START AND WOULD HAVE BEEN FAIR TO BOTH. Here's how it works. If the owners are going to be producers, they should pay themselves the same percentage of revenue that they would pay any other producer of the agency. If they take management roles, they should be paid the equivalent of what they would pay any manager to do the same job in the agency –multiplied by the ration of time they've had the position. And you don't have to guess how much time is used. It can be judged AFTER THE FACT (once the year is over) and adjustments made to future compensation accordingly if the role is to continue. We strongly urge productivity-based compensation for owners because of situations as cited in the example, above. Productive Compensation defines what you EARN for doing what you do productively in the agency. Owners Compensation, through any form of dividend distribution or bonus payments you wish to make, is a second source of income that is usually derived from ownership percentage.

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So the agency owners who take some or all of their profits each year can continue to do so (although we don't recommend taking all profits out of the agency each year and leaving nothing to sponsor the agency's growth), but it is treated as a second source of income beyond their productive efforts.

that each owner will take a compensation level that equates to his/her contribution to the success of the agency every year. Many owners will boast about how much they did historically for the agency, but unless that historical performance continues to benefit the business, that is truly past history.

Doing this in the situation, above, would have eliminated the excess compensation that derived from a perfectly honorable agreement (that lacked the forethought of the results of that action).

In one recent case, a retiring owner was responsible for a multimillion dollar (commission) book of specialty business that the agency wrote many years ago. However, most of it was gone by the time the valuation was being done but the owner still felt his importance was derived from that historical performance.

Proper Planning Prevents Problems What disturbs most agents is the need to pay out the ownership interest to an owner who has not been as valuable as their ownership indicates. But what they fail to understand is that if there is ANY obligation it is a contractual obligation to an investor, whether that investor is active, productive, or passive. If someone owns a percentage of your business and you have specified how that person will be bought out, you risk litigation if you try to change the price or the terms simply because the reality of the situation was not as you expected. The savings to an agency of a proper compensation agreement is in not paying for lack of productivity, whether in a producer (see our Producer Compensation Programs), and employee (see our Incentive Compensation Programs) or in an owner. The truly fairest way to come together in ownership is to agree

The annual profit sharing in an agency may still be equated to ownership interest (although we have aided many agencies with multiple owners to alter annual profit sharing to equate to percentage of profit contribution (not revenue contribution) of each owner. On the other hand, the issue that should remain sacrosanct is the distribution of the agency's value at the point of sale of an ownership interest. That should always be sensitive to the percentage ownership of the departing owner. About the Author Al Diamond is a 32+ year veteran of the insurance industry with agency, stock company and direct writing experience. He founded Agency Consulting Group, Inc. in 1980 and is dedicated to the needs of independent agents throughout the U.S. u

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Future Leaders Spotlight

presented by

Chad Richardson, CIC, CISR, CLCS • Swallows Ins. - Cookeville Chad Richardson is a Cookeville native that was raised in Livingston. He attended Livingston Academy where he played basketball. His wife, Darla, also works in the agency, and she is in the personal lines department. They have a six year old son, Silas Lee, and the family is active in the community and at their church, Life Church. Chad also enjoys running and has completed marathons and half marathons. One lesser known fact is that he is a twin, and his sister is a teacher. Chad Richardson of Swallows Insurance

The Insuror: Can you tell us a little about your current job title and responsibilities? Chad: My current job title is Director of New BusinessCommercial Lines. All of the agency’s new business opportunities flow through me and I work with our multitude of carriers to find the right fit for both our clients and our carriers. I will also help out our Account Managers in remarketing our current customers as the need arises and, as the marketing keeps changing, it is happening more frequently these days.

The Insuror: What can you tell us about your educational background? Chad: I earned my Undergraduate and Graduate Degrees from The University of Tennessee at Knoxville. I worked in the athletic department for all my time on campus as well. Go Vols!

The Insuror: How and why did you get your career in the insurance industry started? Chad: It is quite funny actually. I had not even thought about insurance as a career. I moved back home after college and got a job with a local insurance agent I had known for a while. However, when my uncle – who has been manager of our Cookeville location for a very long time – told our owner that I was going to work for a local competitor, I got call from him and he lured me to Swallows a little after four hours of working with the competition. It was quite surreal actually. Luckily, the agent knew me and my relationship with Swallows, so he thought it might be a possibility for them to come calling once they found out I was working for him. 18

The Insuror: Do you have any influences/role models in the industry? Chad: Yes, our owner and principal Mike Swallows. I have learned so much from him over the years, literally all the ins and outs of the industry. He has allowed me to grow and position myself to grow even more in the years to come. He has given me the freedom to do what I feel necessary to take care of our clients and producers. He doesn’t micromanage, he just allows me the freedom to perform my job the best way possible.

The Insuror: Is there any advice you could offer Young Agents or others in the industry to achieve success in their careers? Chad: Absolutely! First, soak up all the knowledge and information that you can get. I thought after college that I was done with classes, exams, etc., but it couldn’t be farther from the truth. Second, pick out a few mentors that you can follow and “mirror,” learn from them from their experiences and use them as tools as you grow. Third, don’t be afraid to mess up, and if you mess up, learn from that experience and use it as an opportunity for personal growth. Lastly, always be impeccable with your word. I am not perfect in this area by any stretch, but develop relationships based on truth and transparency. Make your word your bond!

The Insuror: As an independent agent, you have many partners in this industry, including carriers, MGAs and many more. How do you determine which ones are the right relationships? Chad: Well, for me, it is all about relationships in this industry. The best relationships for me are the ones where I can just pick up the phone and have a conversation with someone and discuss accounts and see if we can get on the same page and secure a win. I feel like empathy needs to be a trait that is kept at a premium. I feel it is important to put myself in the underwriter’s shoes to make sure I have a better understanding of where they are coming from and why they are thinking the way they do. Also, I am not afraid of a quick "no." I'd much rather have a quick no than be let down alter only to have the rug pulled out on me at the last minute. Right now, it seems like everyone is busy and grinding. I just want to be as efficient as possible with my time and I certainly want to respect the time of my underwriters as well. The best ones I work with know how to have a conversation and know which opportunities are right and which opportunities may be ok to pass on. The best relationships are also the ones where the The Tennessee Insuror

Are you making the Right Choice for their Business?

company knows what it is like to sit on the other side of the table as an agent and have to be the one to explain things to the customer in a way they can understand and appreciate.

The Insuror: Thank you for giving us your time, Chad, we appreciate it and wish you continued success. Chad: It has been an honor and privilege to share some of my time and thoughts. I can’t think of a better industry to be in than the one we are in. The ability to help clients protect their assets and give them peace of mind are the biggest reasons I do what I do. It is an exciting time to be in the insurance industry! u

Young Agents '21 Upcoming Events and Information 2021 Insurors Young Agents Convention After Party Sunday night, October 17 • Florence, Alabama Visit insurors.org for more details

2021 Young Agents Committee

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From Your President A Bright Future Ahead I have just returned from the DreamMore Resort at Dollywood and am happy to report that our Association has a great future ahead. This year your Board of Directors made the decision to bring back the Young Agent’s Leadership Conference and to hold it in conjunction with our third quarter Board meeting. Our Board took the opportunity to get to know many of the young agents now in our Association. Young Agent Chair Derek Wright and his committee consisting of Matt Felgendreher, Forbes Harris, John Brock, and Cy Young did a fabulous job putting the program together and setting a high bar for future conferences. There were 37 young agents and some of their families. We were also joined by our Board members and several company representatives. I had the opportunity to meet and talk with most of the young agents and I am extremely impressed with the whole group. Their commitment to this industry and this Association was obvious and it was great to see their enthusiasm. They are the future of our Association and I believe we are in very good hands.

Building Our Staff Ron has been working hard to get a staff in place that will move us forward and make us the best Association in the nation. Jake Smith has joined us and brings a wealth of knowledge in marketing and communications. Jake has some great thoughts on how we can better communicate to you our members so look for new things coming soon. Ron has also hired Teresa Durham, CPCU, AIC, AU, CIC who brings with her a wealth of insurance knowledge and a desire to share that knowledge with others. Teresa will assume the role of Insurance and Education Specialist. She will not only oversee our current offerings, but she will work with the education committee on new programs and classes that keep us up to date with what today’s agent needs. She has almost 40 years of experience in this industry, and we are excited about the value she can add to our organization. The Tennessee Insuror

Annual Convention is Almost Here It’s hard to believe our 128th Annual Convention is less than 2 months away, set for October 16-19 at the Marriott Shoals Resort and Spa in Muscle Shoals, Alabama. If you have not already done so, please register and make plans to attend, after taking a year off it will be a great opportunity to catch up with friends we haven’t seen in some time. Saturday night kicks things off with a first-time attendee reception followed by the football viewing party. Registration opens at 1 pm CT on Sunday with breakout sessions will begining at 2 pm. The trade show opens at 3 pm and will be a great opportunity to speak with our Association Partners that are such a vital part of our organization. Sunday nights opening celebration will feature Grammy award winning singer/songwriter Paul Overstreet and as always, the Young Agents will host an after party that you won’t want to miss. We also have a few surprises set for Sunday night! Monday we will start the day with an exhibit hall breakfast and time to see the Partners you missed Sunday. Our agent general session will begin at 10 am and feature guest speaker Manley Feinberg. Monday afternoon will bring optional activities for agents and spouses so be sure to sign up for those. Monday night there will be an InsurPACTN/Past Presidents reception for PAC donors contributing more than $500. Our PAC dollars are more critical now than ever so please consider making a contribution.

“ T h e i r commitment t o t h i s industry and this A ssociation was obvious...”

Tuesday morning will be our annual Association Day business meeting where we will conduct the business of our Association and honor those that have gone above and beyond in their service to Insurors. Please check out more information, the full schedule, and register now on our website at insurors.org. I look forward to seeing everyone there! u

Bob McIntire 21

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From Your IIABA National Director The Future Matters What a successful Young Agent Leadership Conference we just completed at the Dollywood DreamMore Resort for our Young Agents and their families! We had 37 Young Agents from across the State attend this event that included our Board meeting, breakout sessions, socializing, and family time. I was honored to participate as one of the industry experts on a panel discussion that included agents, guests, and company representatives. One of the questions was “What makes Independent Agents different from Captive or Direct writers?” Bradley Flowers, of The Insurance Guys podcast, also participated in the discussion. Bradley owns a very successful and high tech agency, Portal Insurance, in Mobile, Alabama. The technology and procedures that he has implemented in his agency far exceeds how most agencies operate. It was fascinating to hear what is on the horizon for our industry in the future.

Choices and Relationships Matter Technology is already such an important tool in our industry, and it will only expand on how we will transact business in the future, but the difference between Independent Agent and Captive/Direct writer is not only technology. Technology is the tool to help our agencies operate more efficiently. The difference is in our core values, choices and relationships. We provide our insureds and prospects with choice. They have the choice of agents and carriers that will best fit their needs. They have the choice of coverages, deductibles, payment options, and those same choices are available again at their renewal. There is no "one size fits all" in the Independent Insurance world. As an agent you can write insurance across state lines, you can cover all of their insurance needs and offer choices to your clients that will best protect their assets. Through our work, we develop a relationship with each customer. They depend on our expertise to counsel them on the best choices for their insurance needs. We become their “Trusted Advisor.” That young person obtaining their The Tennessee Insuror

first personal or business policy depends on their agent to direct them as to the insurance needed. As their needs change their agent will know if they purchase a new home or building. They know if their client marries, has children or hires an employee. Will they need life insurance, key man, health, or an annuity? Your relationship with your client strengthens will each milestone in their life and the insurance that they will need on this journey. We also develop relationships with our insurance carriers. We know the managers, underwriters and marketing representatives. We know the guidelines, preference and target market of each of those companies and by doing so can place our customers with the best carrier for their individual needs. The relationships that we develop with our current customers, prospects, carriers, friends, and vendors become a pipeline for referral business. What better way to establish your agency than by a recommendation? What makes Independent agencies different from Captives and Direct writers? It is the choices that our insured’s have. It is the relationships that we develop with our customers and insurance carriers and it is the technology that we will be using to transact business in order to continue to be successful in this wonderful industry.

“ T h e difference is in our core values, choices and relationships. "

A career in insurance provides endless possibilities. What I took away from our 2021 Young Agent Leadership Conference is that our industry is in great hands. I am so impressed with the creativity and passion from our Young Agents. They are hungry for knowledge, they have amazing, creative ideas. They will thrive not only in their insurance careers but in life. Thank you to all our Young Agents in attendance. Thank you to our speakers for sharing your ideas and thank you to our insurance carriers and brokers for their support. We hope to see you all at the 128th Insurors of Tennessee Annual Convention in Muscle Shoals, Alabama, October 16-19. u

Cindi Gresham 23

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From Your CEO I Want to See You There! Cooler weather is coming! And that means it's time to start talking about our Annual Convention. It is scheduled for October 16-19 in Florence, Alabama where Autumn will be turning its head and showing its colors. I can’t wait to see our members and get acquainted with them. This will be my first convention with Insurors of Tennessee and my wife Laura and I are looking forward to it!

Network and Learn Over the last year, we have navigated circumstances that have never been seen before in our industry. I know that it is important to break out carefully so we can meet and greet each other and have great conversation. Our goal is to get together, share fellowship and talk about the changes we have seen in the past year and what changes we anticipate in the future. This is a great opportunity for you to share ideas and get feedback from other agency principals and staff as well as our carrier and vendor partners. One of the greatest values of our Association is the ability to network and learn from each other – don't miss your chance to capitalize on it at the Annual Convention!

Your Help for Your Association This Association has been strong for 128 years and we want to see it continue for 128 more! It is time to strengthen old bonds and meet new friends. Our industry is built upon the relationships that we foster throughout our state and beyond. Your vendors will be taking time to hear from each of us and talk about the exciting new developments that they have to offer. I see great value in coming together and discussing your vision for this Association and where you see us over the next couple of years. We will see changes like never before and I want to make the right decisions to keep us moving forward in a steady direction for the betterment of this organization. With your input and knowledge, we can be stronger and better than ever! I want to encourThe Tennessee Insuror

age everyone to contribute to this great Association and leave their legacy for future generations that will come after us. What we do today affects the future of this Association and it is up to us to build on the continued success we have enjoyed over the years. Your commitment to Insurors of Tennessee will help us stand the test of time.

A Safe and Fun Environment In July I attended two conferences, the Independent Agents Association Executives (IAAE) Conference and the Insurors Young Agents Leadership Conference. Both were well attended, and the hospitality from the venues was exemplary. The Marriott Shoals Resort and Spa will be the same. Two years have passed since our last in-person convention, and we are committed to hosting a great event! I did an on-site inspection of the Marriott, and they assured me that they will follow all rules and regulations to keep us safe. They have a great venue and we will plenty of space for our guests and functions. We will have exciting things for all who attend! I hope to see everyone there that is able to join us. Keep up with all the updates and our schedule as we announce some special guests and speakers in the next few weeks leading up to the event.

“I can’t wait to see our members and get acquainted with them.”

Worth Your Time Now is the time to expand your insights, capabilities, and connections with other professionals in our industry. An infusion of ideas, resources and confidence will enable us to navigate beyond the pandemic and into an astoundingly successful future. I am very excited about the opportunity to be together in-person with so many of you, and I promise it will be worth your time to attend. Get more information on the event on our website at insurors.org, and I look forward to seeing you in Alabama in October! u

Ron Travis 25

Insuring the life you live and the home you live in for over 60 years. National Security has provided competitive, affordable insurance to policyholders for over 60 years. We also provide our agents with competitive commissions, excellent customer service and experienced company adjusters. As a Southeastern based regional company, National Security prides itself on fast, efficient service from a friendly small town company. Our agent website provides fast quotes, online policy issuance, and real-time policy information. Find out more about our products by calling 1-800-239-2358 or visiting nationalsecuritygroup.com.

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EDUCATION SCHEDULE

20 21

SEP

9/15-17 CIC Commercial Casualty • NASHVILLE 9/28 CISR Commercial Property • JOHNSON CITY

FEB

2/2 CISR Agency Operations • NASHVILLE

9/29 CISR Commercial Property • KNOXVILLE

2/3 CISR Agency Operations • MEMPHIS 2/17-19 CIC Commercial Property • NASHVILLE

9/30 CISR Commercial Property • CHATTANOOGA

MARCH

11/3-5 CIC Personal Lines • NASHVILLE

3/10-12 CIC Commercial Multiline • MEMPHIS

APRIL

NOV DEC

12/7 CISR Commercial Casualty II • NASHVILLE

4/6 CISR Personal Residential • JOHNSON CITY

12/8 CISR Commercial Casualty II • MEMPHIS

4/7 CISR Personal Residential • KNOXVILLE 4/8 CISR Personal Residential • CHATTANOOGA

ONLINE EDUCATION

4/21-22 Ruble Graduate Seminar • NASHVILLE

MAY 5/11 CISR Elements of Risk Management • NASHVILLE 5/12 CISR Elements of Risk Management • MEMPHIS

AUGUST

Use code FALL2020 to get 20% off all ABEN online CE courses.

Education Calendar The Insurors of Tennessee offers education opportunities to member agents across a wide range of insurance specialties that satisfy individuals at many different experience levels. If you are looking to further your career, seeking a professional designation, or need to satisfy continuing education requirements, check out the variety of courses available. Registration is fast and easy at www.insurors.org. More info about each class can also be found online or by contacting Teresa Durham at tdurham@insurors.org or 615.515.2607.

Use code INSTN to get 20% off on Pre-Licensing and CE courses through Kaplan Financial.

8/4-6 CIC Agency Management • KNOXVILLE

Online training for new hires. Use code Upskill20 to get 20% any bundle.

CISR 9/28 9/29 9/30 12/7 12/7

Fee: $186

Commercial Property Commercial Property Commercial Property Commercial Casualty II Commercial Casualty II

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Fee: $430

8/4-6 Agency Management Institute 9/15-17 Commercial Casualty Institute 11/3-5 Personal Lines Institute

CE: 7

Johnson City Knoxville Chattanooga Nashville Memphis

CE: 16

Knoxville Nashville Nashville

The National Alliance for Insurance Education & Research is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org. Advanced Curriculum Rating = 20 CPE Credits. For more information regarding administrative policies such as complaint and refund, please contact our offices at 800-633-2165.

Commercial Prop. Endorsements CE: 2 $48 E&O: Meet the Challenge of Change CE: 2 $48 Business Auto Claims Problems CE: 2 $48 Ethical Issues: Personal & Org. CE: 3 $72 Business Income and Extra Expense CE: 2 $48 Are You More Ethical Than Politician? CE: 1 $24 Insuring Condominiums CE: 2 $48 Personal Lines Myths: Part 1 CE: 1 $24 Street Level Ethics CE: 3 $72

Addl' Courses (www.iiaba.net/vu) Available from IIABA Virtual University. Member pricing shown.

Ethics for Insurance Professionals How to Calc. Business Income in 5 Min. National Flood Insurance Program New Employee Training Course

Cyber Security and Insurance Risk CE: 2 $48 Double Trouble - COI and Biz Auto CE: 2 $48 Are You More Ethical Than Politician? CE: 1 $24 E&O: Roadmap to PAP and PUP CE: 3 $72 E&O: Roadmap to HO Endorse. Pt. 1 CE: 3 $72 E&O: Roadmap to HO Endorse. Pt. 2 CE: 3 $72 Flood Program Overview: NFIP CE: 3 $72 Premium Auditing: Agents Must Know CE: 2 $52 The Basics of COPE CE: 3 $79 The Law of Insurance Contracts CE: 3 $79 Torts, Negligence & Liability CE: 3 $79 NFIP Then and Now CE: 3 $72 E&O: Comm. Prop. Coverage Gaps CE: 3 $72 E&O: Roadmap to Policy Analysis I CE: 3 $72

CE: 3 CE: 3 CE: 6 CE: 9

$75 $50 $80 $100

*check VU site for current information on CE and pricing

Available from The National Alliance

ABEN Webcasts (insurors.aben.tv) 9/8 9/8 9/8 9/9 9/9 9/9 9/9 9/10 9/10 9/10 9/10 9/10 9/10 9/11

9/11 9/18 9/18 9/18 9/18 9/18 9/21 9/21 9/27

(www.scic.com)

Legal & Ethical Requirements of Insurance CE: 4 Insuring Flood Exposures - NFIP Review CE: 4 Available from The Institutes

$75 $75

(insurors.ceu.com)

Insurance Principles and Policies CE: 7 Long Term Care CE: 24 Workers’ Compensation CE: 10 Employee Benefits for Small Companies CE: 4 Healthcare Reform and Affordable Care CE: 5 eCoverage CE: 15 Fundamentals of Personal Auto Insurance CE: 3 Management Process for Ins. Professionals CE: 21 Intro to Flexible Spending Accounts CE: 4 Terrorism and Its Impact on Insurance CE: 4 Toxic Mold and Homeowners Insurance CE: 15 Understanding the Industry of Insurance CE: 5

$49 $99 $59 $39 $49 $79 $29 $89 $39 $39 $79 $39

Indicates course is presented by The National Alliance. Register for these courses at www.thenationalalliance.com The Tennessee Insuror

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Government & Legal Update

Government Update: With Delta Variant, COVID-19 has Political Staying Power As the Tennessee General Assembly wrapped up its legislative session for the year in early May, COVID-19 cases in Tennessee were around their lowest levels since the onset of the pandemic. With vaccines widely available, and much of the state’s most vulnerable citizens already fully vaccinated, it seemed the worst of the coronavirus was surely behind us. While hopefully that’s still the case, a recent spike in infections across the country and in Tennessee due to the “Delta” variant has kept COVID-19 in the headlines and on the desks of state policymakers. Despite these recent developments, Tennessee’s economic recovery appears to remain in full swing, seemingly held back by vaccine skepticism or a shortage of workers, depending who you ask. In July, a majority of Tennessee Senate Republicans signed onto a public letter urging Tennesseans to get vaccinated. Among the signees included Lt. Gov. Randy McNally (R-Oak Ridge), Majority Leader Jack Johnson (R-Franklin), and the GOP Caucus Chairman Ken Yager (R-Kingston). A short excerpt: “Unfortunately, efforts to get more people vaccinated have been hampered by politicization of COVID-19. This should not be political. Tennesseans need factual information to make educated decisions regarding their health. … Every life lost to this virus is tragic. The COVID-19 vaccines save lives. Again, we strongly urge all Tennesseans to study the facts, talk to your doctor and get vaccinated.” Unemployment Data and Changes to Tennessee’s Unemployment Benefits In June, Tennessee’s unemployment rate had receded almost back to pre-pandemic levels, a full point lower than the national average. Tennessee’s 4.9% unemployment rate was down from a high of 15% last spring. Jobs in the leisure and hospitality sectors and low wage jobs, hit the hardest during the pandemic, appeared to be recovering. But a new problem emerged in media reports across the state: employers have had trouble finding help. A May 23rd U.S. News & World Report headline proclaimed, “A Stifling Worker Shortage Threatens Nashville’s Recovery.” The article cited a somewhat surprising statistic: there were 166,706 unemployed Tennesseans and more than 250,000 advertised vacant jobs in April according to a state report. The data, both empirical and anecdotal, would seem to support Governor Bill Lee’s decision that, beginning July 3, Tennessee would forego additional unemployment insurance The Tennessee Insuror

payments to workers financed by the federal government. Indeed, the Governor cited the same statistic when pressed on the decision. “We have a quarter million jobs in this state that are unfilled, and we do have employers all across the state who desperately need workers,” said Lee. “We know that people want to work, and we want to make that pathway for them. We’re working on a number of initiatives through our Department of Labor and Workforce, but we analyze the data and we think this is the right move for the state.” Business groups largely praised the policy change in Tennessee and other “red” states. With the 2022 gubernatorial election around the corner, it also may have been the right political move. A May 2021 poll by Vanderbilt University indicated that most Tennesseans support removing incentives that might discourage people from reentering the workforce. Legislation to reduce the duration a person can be eligible to draw unemployment benefits from 26 weeks to somewhere between 12 and 20 weeks (indexed to the unemployment rate) was supported by 68 percent of Republicans and 59 percent of Independents participating in the poll. The bill, codified as Pub. Ch. 560, was a major priority for House Speaker Cameron Sexton (R-Crossville) last session. That’s not to say everyone is happy with the changes made to the state’s unemployment benefits by the GOP-controlled legislature and the governor. Democrats in Nashville and Washington have uniformly panned the decision to forego millions in federal aid as misguided. A paper by analysts at JPMorgan Chase & Co. Institute suggested that, although almost half (48 percent) of workers make as much or more money on unemployment benefits than at their previous job with the $300 federal supplement, such funds “were not holding back the labor market recovery in a very significant way.” In late July, seven individuals sued the Governor in federal court seeking a reinstatement of the $300 federal supplement. The program, authorized by Congress under President Biden’s American Rescue Plan, are scheduled to end on September 6. What Pandemic? Revenue Collections Outpace Projections Tax revenue collections by the Tennessee Department of Revenue have significantly exceeded budgeted projections through 11 months of the fiscal year. (June is the eleventh month of the fiscal year 2020-21.) Collections for the months of April, May, and June alone were $1.4 billion more than projected. Below are a few fiscal stats courtesy of the Tennessee 31

Department of Finance and Administration in its press release announcing June collections: •

•

General fund revenues were more than the budgeted estimates in the amount of $357.1 million and the four other funds that share in state tax revenues were $15.2 million more than the estimates. Sales tax revenues were $173.2 million more than the estimate for June and were 22.64 percent more than June 2020. For eleven months, revenues are $1,656.9 million higher than estimated. The year-to-date growth rate is 14.86 percent. Remote sales and marketplace facilitator laws contributed $50.2 million to sales tax receipts for the month and for the year, online sales tax revenues represent 35.27 percent of all sales tax growth to the state. Franchise and excise tax revenues combined were $193.4 million greater than the budgeted estimate in June, and the growth rate compared to June 2020 was 45.06 percent. For eleven months, revenues are $1,044.4 million more than the estimate and the year-to-date growth rate is 49.01 percent. Gasoline and motor fuel revenues for June increased by 18.38 percent compared to June 2020, and they were $5 million more than the budgeted estimate of $104.8 million. For eleven months, revenues are less than estimates by $6.1 million. Motor vehicle registration revenues were $0.9 million more than the June estimate, and on a year-to-date basis, revenues are $16.4 million more than the estimate.

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As mentioned above, Governor Lee will be on the ballot next year, along with all nine U.S. House seats, all 99 Tennessee House seats, and 17 of 33 Tennessee Senate seats (oddnumbered districts). The legislature continues to await necessary data from the 2020 U.S. Census in order to begin the once-a-decade redistricting process. Census data necessary for apportionment decisions have been delayed because of COVID-19. Tennessee is among 22 states that are explicitly required to utilize decennial census data for legislative and/or congressional redistricting. We will take a more detailed look at redistricting process and upcoming races in future issues, but let me take this opportunity to thank you for your continued and future support of InsurPACTN. Your generous support is critical to our efforts in Nashville to protect independent agents and the communities they serve. Thank you! About the Author Trey Moore is the Government & Legal Consultant for Insurors. Moore operates Trey Moore Consulting in Nashville and was formerly senior public policy counsel for Bass, Berry & Sims. Prior to that role, he had nine years of experience in government relations with Acadia Healthcare, BlueCross BlueShield of Tennessee and others He is a native of Gallatin and a graduate of Sewanee and Nashville School of Law. u

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Association Update Evans and Gresham Named to Big "I" National Committees Insurors National Director Cindi Gresham, CIC, CISR and member Mel Evans, CIC have been appointed to the Big I Finance Committee and Big I Diversity Council respectively. Gresham is the president of Boyle Insurance Agency in Memphis and is an Insurors Past President and former Insuror of the Year award winner. She has previously served on multiple Big I National Committees. Evans is the president of InsureFitRM in Knoxville. He is entering his third term on the Diversity Committee and has previously served on Insurors state committees as well.

Maddox Insurance Adds Parish Huntingdon-based Maddox Insurance has announced that Tim Parish has joined the agency as a producer. He has a Bachelor's degree in agribusiness and a Master of Arts degree from Freed-Hardeman University, and will graduate from John A. Gupton College in December. He is licensed in property, casualty, life, and health.

Reliance Partners Adds Paluzzi as CTO Chattanooga-based co m m e r c i a l transportation and logistics insurance agency Reliance Partners has announced that Mario Paluzzi has joined the agency as Chief Technology Officer. Paluzzi will oversee the development of Reliance Partners' proprietary technology initiatives and spearhead the agency’s innovation strategy to drive solutions in the trucking and freight insurance industry. Prior to joining Reliance Partners, Paluzzi established, led, and deployed industry-leading technology teams and transformative innovations across high-growth startup environments as well as multi-billion dollar enterprises. Paluzzi spent 10 years at Coyote Logistics overseeing technology, strategy and delivery. In October 2020, he joined Logistics Dynamics as Chief Information Officer. The Tennessee Insuror

Insurors Adds Durham for Education Insurors is excited to announce that Teresa Durham, CPCU, AIC, AU, CIC has joined the Association staff as the Insurance and Education Specialist. She will be working to assist members with various insurance industry questions as well as coordinating CE efforts. Durham is a Nashville native where she earned her Bachelor's degree from Trevecca Nazarene University in Management and Human Relations. She most recently worked as the Commercial Lines Account Manager and Licensing Coordinator for James A. Rothberg & Associates in Nashville. She has 39 years of experience in the insurance industry serving in various roles as an underwriter and account manager. She may be reached at tdurham@insurors.org or 615.515.2607.

Cutchin Named as an Agent of the Year Brett Cutchin of Lipscomb & Pitts - a Higginbotham Company - in Memphis was recently named as a 2020 Agent of the Year by Insurance Journal magazine. With real estate accounts of all types across the country, real estate is the largest segment in Cutchin’s book of business. Habitational risks represent about half of his real estate book. He also handles construction related accounts. A third area of his concentration is tough to place accounts. Cutchin graduated from Florida State University with a degree in risk management and insurance. While at FSU, he was president of the insurance society and also won the George Nordhaus scholarship. He began working at Lipscomb & Pitts in January 1994. Cutchin is currently the agency’s commercial lines president, as well as its largest producer.

Insurors Members Named in Top 100 Agencies The 2021 Insurance Journal list of Top 100 agencies included multiple Insurors members. Ranked by 2020 total P&C revenue, the members listed included: AssuredPartners, BroadStreet Partners, Commercial Insurance Associates, Fisher Brown Bottrell, Higginbotham, HUB, Patriot Growth Insurance Services, Scott Insurance, and Sunstar Insurance Group. Congratulations to all these high performing agencies on their recognition! u 35

Your insights

Our

strengths and expertise

Top-class

protection around the world

Your attorney clients know their firm inside and out. You know your markets and your competitors. At Swiss Re Corporate Solutions, we have the capabilities and the financial strength to meet the risk needs of insureds for Lawyer’s Professional Liability. Whether the risk is basic or complex, we believe there’s only one way to arrive at the right solution. And that’s to work together and combine your experience with our expertise and your strengths with our skills. Long-term relationships bring long-term benefits. We’re smarter together.

Swiss Re Corporate Solutions is proud to be the exclusively endorsed Lawyer’s Professional Liability provider for the Insurors of Tennessee. For more information or to access the program, please contact administrator Jeff Severino of Lockton Affinity at JSeverino@locktonaffinity.com or 913.652.7520.

Insurors of Tennessee Ph 1 800 264 1898 E info@insurors.org

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Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, United States, a member of Swiss Re Corporate Solutions.

Company Spotlight Delta Dental of Tennessee For brokers, one key benefit of Delta Dental is that they can rely on the overall retention rate, including group and individual subscribers. In 2020, 98 out of 100 members renewed their dental policies, which is a valuable indicator of strong customer loyalty. Unlike healthcare companies that sometimes include supplemental dental coverage, Delta Dental’s commitment to your clients’ dental care is 100 percent. It is focused on good oral hygiene and benefits, and its best-in-class experts provide valuable knowledge and leadership to both businesses and brokers. That led the company to a new partnership with VSP in 2019 and the introduction of DeltaVision. The mission at Delta Dental of Tennessee is simple: “Ensuring healthy smiles.” As the largest dental benefits provider in the state, insuring more than 1.4 million smiles, the company accomplishes this mission through the products it provides, the advocacy it promotes, the education it offers, and the philanthropy it participates in. While ensuring a healthy smile might start with your teeth, overall health has a major impact as well. And it starts with preventive care. With most dental plans covering two annual preventive visits at 100 percent, dental insurance was designed with an incentive for preventive care. DeltaVision is preventive in nature as well with annual allowances for checkups. Both dental and vision professionals can help their patients understand their systemic health by detecting signs and symptoms of other diseases, like diabetes and heart conditions. It’s estimated that 60-70% of dental plan members use their dental preventive benefits. Considering most preventive care is covered at 100% and the advantages it provides, like keeping The Tennessee Insuror

Ensuring Healthy Smiles

out-of-pocket costs to a minimum and alleviating potential physical pain, utilization of preventive benefits is relatively low.

Preventive Advantage Preventive Advantage® group benefit plan features were developed as an incentive for subscribers to use their preventive benefits. With Preventive Advantage, they can increase their annual maximum simply by going to the dentist at least once per year for preventive care – a simple cleaning and oral exam meets the requirements. This plan is easy for clients – and their employees – to understand. “At Delta Dental, we understand that the majority of costs, and therefore benefits focus, is on health and pharmacy,” said Jay Reavis, vice president of Business Development. “We wanted to keep it simple so that employers could explain the benefits and employees utilize these plan features to get the most out of their benefits.” Something else the company is making simple for enrollees is finding a dentist that is the right fit for them. Delta Dental of Tennessee has the state’s largest network of practicing, licensed dentists with more than 92% participating in the Delta Dental Premier network and more than 73% participating in Delta Dental PPO. Chances are good that any client’s employees already visit one of those dentists, meaning less disruption for workers.

DeltaVision That preventive focus and access to care was top of mind when partnering with VSP for DeltaVision, as well as a commitment to customer satisfaction.

and focus on customer service align perfectly with the values we know our subscribers appreciate about Delta Dental,” said Phil Wenk, DDS, president and CEO of Delta Dental. DeltaVision subscribers have access to one of the nation’s largest networks of independent doctors who carry a wide selection of name-brand eyewear for any style and budget. DeltaVision plans are available for individuals and families purchasing benefit plans on their own, as well as group plans for businesses. If you haven’t quoted them in a while, take a look at what Delta Dental has to offer. There are materials you can share with your clients to help them better understand the advantages of dental insurance, as well as the differences in the special features they have available. Email fastquotes@deltadentaltn.com for more information on any of their plans.

About Delta Dental of Tennessee Delta Dental's vision is to improve the overall wellness of the people in the communities they serve through products, advocacy, education, and philanthropy. Since 1965, Delta Dental of Tennessee has grown to become the largest independent dental insurance provider in the state, with more than 2,100 employer groups representing over 1.4 million total smiles. They also have the state’s largest network of practicing, licensed dentists with more than 91% participating in the Delta Dental Premier network and more than 74% participating in Delta Dental PPO.

“We partnered with VSP for DeltaVision because their expansive doctor network 37

TOGETHER WORKING

“Exclusive member agencies, collaborating to bring the best insurance solutions to their clients.” The Allison Insurance Group - Jackson Assured Insurance Consultants, LLC - Morristown Bagley & Bagley Insurance - Fayetteville Boyle Insurance Agency, Inc. - Memphis Burke, Powers & Harty - Bristol Carnal-Roberts Agency, Inc. - Lexington Cate-Russell Insurance, Inc. - Maryville Goss Insurance - Hixson Higgins Insurance - Clarksville/Hopkinsville, KY Inter-Agency Insurance Services - Knoxville 38

Martin & Zerfoss, Inc. - Nashville McInturff, Milligan & Brooks - Greeneville Miller | Loughry | Beach Insurance Services - Murfreesboro Ownby Insurance Service, Inc. - Sevierville Powell & Meadows Insurance Agency - Carthage Smith-Berclair Insurance, Inc. - Memphis Sunbelt Insurance Group - Chattanooga Tigrett & Pennington Inc. - Dyersburg V.R. Williams & Company - Winchester Watauga Insurance, Inc. - Johnson City

Get more information now at www.securerisk.com

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Vendor Spotlight Engage PEO

An HR Partner Like No Other

Engage is a leading national professional employer organization (PEO) that provides flexible HR outsourcing solutions to businesses with 15 - 1500+ employees, including HR compliance, affordable Fortune 500 benefits, risk management, and advanced technology that integrates payroll, benefits admin, HRIS, employee self-service tools, and strategic solutions such as Applicant Tracking, Time & Attendance, and more.

In an industry where clients are typically directed to a website to find answers, Engage clients receive high-touch service through a dedicated team including the broker and an Engage Account Manager, an HR Consultant with a law degree, and an experienced group of subject-matter experts in payroll, tax, benefits, training, safety, and technology.

Among the most highly credentialed PEOs in the industry, Engage is an INC. 5000 Honor Roll company certified by the IRS (CPEO) and the Employer Services Assurance Corporation (ESAC). Less than 3% of all PEOs in the country are IRS and ESAC accredited.

Founded in 2011, Engage has been dedicated to brokers since day one. They partner with agents who earn generous residual commissions for as long as their client is with Engage, receiving full client referral protection with no trespassing, no competition, flexible carve-outs, and expert sales support.

Expect More Service

Attract more clients by expanding your service offering to include the high caliber HR expertise provided by Engage PEO. This referral partnership will instantly differentiate your agency and protect your book from PEOs that sell direct, making partnering with Engage a Win-Win for you and your clients. Contact Cindy Edwards at 201.694.0067 or cedwards@engagepeo.com. u

Founded upon an “expect more” service philosophy. Engage’s HR delivery team – all licensed attorneys – is also unique in the industry and a key differentiator for companies facing an increasingly challenging regulatory environment.

Why Trusted Advisors Partner with Engage PEO

Partnering with people in business. At FCCI, we’ve been working with businesses for more than 60 years, now in 20 states and D.C. Our financial strength, expertise and claim handling help businesses thrive and face the future with confidence.

More than an account. A relationship.

PROPERTY

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C A S U A LT Y

SURETY

RISK MANAGEMENT

SECTOR EXPERTISE

More than a network

We’re a community.

There are many reasons why independent agencies turn to Keystone, but you might ask what makes them stay? Keystone is more than just a network, we’re a community. Our goal is to strengthen independent agencies by bringing them together for peer-to-peer collaboration, industry expertise and access to national resources. Together, we’re making each other stronger and keeping clients better protected. That’s how independence works better together!

FOR MORE INFORMATION: Michele Bicknell 570.473.2148 | mbicknell@keystoneinsgrp.com 40 keystoneinsgrp.com

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Company Briefs RiskSmart Acquires Endorsed Partner Securibly

www.youtube.com/watch?v=uLNzZsrgmYk for the full brand release video!

RiskSmart Advisors announced that it has completed its acquisition of Insurors Endorsed Partner Securibly – bringing together two leaders in Information Security Compliance solutions.

Emerick Wins Associate of the Year Award

Securibly gives independent insurance companies peace of mind by making it easy for them to comply with complex data security laws and regulations. This adds to the RiskSmart robust solution portfolio including security training and vendor assessments and creates an even stronger player for small to medium businesses. As the Information Security Compliance landscape continues to change, companies struggle to keep pace. The proliferation of data breaches is accelerating at a staggering rate, and losses are happening at companies of all sizes. In response to this risk, regulatory oversight also continues to grow. As a result, small and mid-sized companies may feel particularly squeezed as they are on the hook for implementing and maintaining internal cybersecurity programs.

18 Insurors Associates Listed in Ward's 50 Eighteen Insurors Associate Member companies have been listed in the Ward's 50 Property-Casualty Company list for 2021. Annually, Ward's analyzes the financial performance of nearly 2,900 property-casualty insurance companies domiciled in the United States and identify the top performers. Each Ward’s 50 company has passed all safety and consistency screens and achieved superior performance over the five years analyzed. The Associate Members included were Acuity, AF Group, Amerisafe, Auto-Owners, Builders Mutual, Chubb, Cincinnati Insurance, Grange Insurance, Harford Mutual Insurance, ICW Group, Markel Corporation, Philadelphia Insurance, Progressive, RLI, Selective Insurance, Travelers, W.R. Berkley, and West Bend Mutual.

Central Announces Branding Update

Bill Emerick, CPCU, CIC, ARM, the Regional Vice President for Penn National Insurance, was recently awarded as the 2021 Associate Member of the Year by the Alabama Young Agents at their annual conference. The group is the young professionals program for the Alabama Independent Insurance Agents association.

Endorsed Partner Now Titan Digital Insurors Endorsed Partners Titan Web Marketing Solutions have announced their new brand of Titan Digital. The company celebrated with a ribbon cutting on Friday, June 30 at their headquarters in Murfreesboro. The firm has grown substantially in its 10+ year history, and has developed additional services in addition to its website offerings. Working with dozens of insurance agencies in Tennessee and across the country, they have developed a specialty in helping independent agencies market on digital platforms.

Liberty Mutual Adds Ganis Liberty Mutual announced the hiring of Stuart Ganis as executive vice president. Ganis brings over 30 years of relevant industry experience to his new role with Liberty Mutual. He brings vast knowledge from working as an independent agent as well as in consulting and training, which includes experience in consulting over 700 insurance agencies. He has also been instrumental in completing over 70 acquisitions in which he represented buyers and sellers.

In 2019, Central Insurance began the exciting process of evaluating and refreshing their brand identity. The goal of this project was never change just for the sake of change, rather to prepare for the next phase of growth with a brand that honors the company's legacy and matches their energy and excitement about the future.

Harford Mutual Re-Elects Board Members

After months of working diligently behind the scenes, Central is excited to announce their refreshed brand. Visit https://

Reid has been a board member since 2019, and currently sits on the Board’s Audit and Investment Committees. He is a

The Tennessee Insuror

Harford Mutual Insurance Group’s Board of Directors approved the re-elections of Vernon A. Reid Jr. and Spencer M. Roman at the annual policyholder meeting held in May 2021. Both were re-elected for three-year terms.

2021 JM Wilson CF TN Insuror.indd 2

4/1/21 4:37 PM

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retired investment professional, serving as Vice President at T. Rowe Price and as a principal partner of V.A. Reid & Associates, a fixed income asset management firm. Reid attended the United States Naval Academy, holds a bachelor’s degree in business administration from Towson University, and an MBA from Indiana University.

and development of new product offerings, as well as accelerate Hippo’s plans to expand geographically and create the first-of-its-kind vertically integrated, end-to-end home protection and insurance platform.

Roman has been a board member since 2012, and currently sits on the Board’s Audit Committee and serves as Chair of the Compensation Committee. He is the former senior vice president at Harleysville Insurance. Roman is a Drexel University graduate, an Associate of the Casualty Actuarial Society, and a member of the American Academy of Actuaries.

J.M. Wilson is pleased to announce the promotion of Adam Mandwee to Assistant Fleet Manager and Executive Fleet Underwriter in their Portage, Michigan office and Jamie Yohn to Transportation Renewal Underwriter in their Charleston, South Carolina office.

Hippo Now Trading on NYSE Hippo Insurance has announced that the company's stock is now live and trading on the New York Stock Exchange (NYSE). Now traded under the ticker HIPO, the listing comes after Hippo completed its previously announced business combination with Reinvent Technology Partners Z. In connection with the transaction, Hippo expects to receive more than $550 million in cash proceeds, net of fees and expenses funded in conjunction with the closing of the business combination, which includes the proceeds from a previously announced private placement of common stock. The proceeds will be used to fuel growth, market expansion

J.M. Wilson Promotes Mandwee and Yohn

Mandwee is responsible for strengthening new and existing relationships with independent insurance agents and company underwriters, as well as underwriting new and renewal transportation fleet submissions (11 plus units). With an increased level of product knowledge in the Fleet department, Mandwee is a leader and resource to other underwriters. Mandwee has been with JM Wilson for 5 years where he has held various positions in our Transportation department. Most recently he held the position of Senior Fleet Underwriter. A Western Michigan University alumnus, he earned a bachelor’s degree in Business Management. Yohn is responsible for underwriting a wide variety of renewal

At Stonetrust, we know a little something about showing up when it matters most, and we strive to always be there for the independent insurance agents and policyholders that trust us with their business. Along with offering workers’ compensation and employers’ liability insurance, Stonetrust works to help companies prevent accidents and remain Stonetrust Safe - an entire system of in-house processes

and services designed to achieve safety goals and keep premiums and claim costs down.

800.311.0997

STONETRUSTINSURANCE.COM The Tennessee Insuror

transportation risks, corresponding with carrier underwriters, and assisting independent agents in Tennessee, Georgia, North Carolina, and South Carolina. Jamie joined JM Wilson in 2020, where she began as an Assistant Transportation Underwriter. A Clemson University graduate, Jamie earned a bachelor's degree in History and a minor in Chemistry.

Acuity Announces Staff Promotions Acuity has announced the promotion of multiple members of its Sheboygan, Wisconsin-based staff. David Dolfin is promoted to Manager – Personal Lines Actuarial. David started his career at Acuity in 2014 as an Actuarial Analyst. He was later named Associate Actuary and was promoted to Actuary in June 2019. David is a Fellow of the Casualty Actuarial Society (FCAS) and earned a bachelor’s degree in mathematics from Hope College. Shawn Chrisman is promoted to Senior Actuary – Personal Lines. Shawn joined Acuity in August 2002 as an Actuarial Analyst. He was later named Associate Actuary and was promoted to Actuary in 2007. Shawn earned his bachelor’s degree from Northern Michigan University and his master’s degree in secondary education with an emphasis in math from Western Michigan University. He is a Fellow of the Casualty Actuarial Society (FCAS) and a Member of the American Academy of Actuaries (MAAA). Shawn is a native of Menominee, Michigan, and resides in the town of Wilson, Wisconsin. Matthew Iseler is promoted to Senior Actuary – Commercial Lines. Matthew started his career at Acuity in 2008 as an Actuarial Analyst. He was later named Associate Actuary and was promoted to Actuary in July 2015. Matthew earned a bachelor’s degree in mechanical engineering from Michigan Technological University and is a Fellow of the Casualty Actuarial Society (FCAS). He resides in Plymouth, Wisconsin. Cathy Staats is promoted to Senior Actuary – Corporate/ Workers’ Compensation. Cathy started her career with Acuity in 2003. She is a Fellow of the Casualty Actuarial Society (FCAS) and earned her bachelor’s degree in economics from the University of Illinois. Cathy resides in Sheboygan, Wisconsin. Alex Denfeld is promoted to Associate Actuary. Alex joined Acuity in May 2018 as an Actuarial Analyst. He is a 2018 graduate of the University of Wisconsin–Madison with a bachelor’s degree in actuarial science and risk management. Alex is an Associate of the Casualty Actuarial Society (ACAS). He resides in Sheboygan, Wisconsin.

Aon and Willis Cancel Merger Aon and Willis Towers Watson announced in July that the 44

firms have agreed to terminate their business combination agreement and end litigation with the U.S. Department of Justice. In connection with the termination of the business combination agreement, Aon will pay a $1 billion termination fee to Willis Towers Watson. The $30 billion deal was first announced in March 2020 but faced numerous roadblocks to satisfy regulatory requirements. Despite the deal gaining EU regulatory approval based on a series of divestures, the DOJ filed a lawsuit in June aimed at stopping the mega merger because it would reduce competition and could lead to higher prices.

Cowbell Cyber's Thompson Recognized Cowbell Cyber's Head of Underwriting, Caroline Thompson, has been recognized as 2021 Breakout Award winner by Business Insurance magazine. The subject of her senior thesis at Providence College was micro insurance, and her internships included time at Lloyd’s of London. She started her insurance career at Beazley PLC, where she developed an interest in cyber underwriting. In 2019, she joined Cowbell, where she recently wrote a policy form for a new product launch.

Jencap Promotes Smith and Orlando Jencap is pleased to announce two strategic promotions to the company's management team. Kathryn Smith has been promoted to Managing Director of Marketing and Paul Orlando has been promoted to Managing Director of Sales. In their new roles, Smith and Orlando will oversee Jencap’s brand strategy and execution, corporate communications, digital strategy, sales initiatives, and all associated sales and marketing efforts. Most recently, Smith was the Director of Sales and Marketing for affiliate company Risk Innovations. Orlando was the Vice President of Sales and Marketing for affiliate company NIF Group.

Arrowhead General Launches E&S Program Arrowhead General Insurance Agency Inc. (Arrowhead) has launched a new Excess & Surplus Lines program and named Bill Murray as its president. The new E&S program operates as part of the National Programs division of Brown & Brown Inc., and initially will focus on excess casualty risks. The Arrowhead E&S program is partnered with Obsidian, a program-fronting carrier whose platform exclusively supports the expanding market needs of MGAs, MGUs and program administrators. u The Tennessee Insuror

The Tennessee Insuror

Agents for the Community

presented by

RSS Insurance • Chattanooga In this series, Penn National Insurance and Insurors are recognizing some of the work our members do for their communities. During Convention, the new "Penn National Agents for the Community" Award will be presented to one of the featured agencies.

The Insuror: Why is community service such an important part of your agency?

members. We recognize and honor that having healthy relationships with our families, coworkers, and clients is imperative to communication and progress. We are beyond appreciative of their efforts and are happy to do our part to support their cause.

RSS Insurance: We are committed to delivering on our promise of exceptional customer service for our clients, which includes supporting the community in which they live and work. During our 45 years plus in business, we have supported many non-profit charitable organizations and sponsored local events within our community. We take pride in giving back to our community and helping our client’s grow within that community.

The Insuror: What are some of the main causes/ groups you support? How and why did you get started with them? RSS: There are many, but here are a few of the main causes we support: Warrior Freedom Inc. RSS supports our veterans! We are proud to be a part of this all-volunteer non-profit organization. Warrior Freedom Inc connects combat veterans to trained service dogs, rescued from local shelters. This program is committed to helping veterans with post-traumatic stress transition after returning home.

First Things First supports families and community

Love’s Arm Outreach Ministries The success of our community begins with helping those most vulnerable. Love’s Arm is an outreach program devoted to engaging and empowering women in need within the Chattanooga and North Georgia area.

One of the thank you messages for RSS from Love's Arm

Other non-profits include the American Heart Association, Chattanooga Women’s Leadership, Farm 58, CHI Memorial Foundation and Young Life.

One of the service dogs provided by Warrior Freedom's work

First Things First We value relationships. First Things First is a Chattanooga non-profit dedicated to providing valuable and affordable resources to enhance relationships for all community 46

The Insuror: What do you think it means to clients to see their insurance agent involved in their community? RSS: “Giving is not just about making a donation, it’s about making a difference.” We want our clients to know we care about them as not only our clients, but as our friends and The Tennessee Insuror

neighbors. When we do our part to become more involved, give patronage to our local businesses, and advocate for resources for our community members, we know we are investing in our community’s growth.

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IPFS TOTALPAY

RSS producer David Clark talks with children at a local school

The Insuror: Do you feel this service work adds to the "staff culture" of your agency? RSS: Absolutely! Teamwork is an important part of our success as an agency. We encourage our team members to extend their customer service excellence and various skillsets to the community by volunteering and being involved. In turn, our team develops a sense of pride and ownership within the community they live and service.

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PAYMENT IN FULL Some of the RSS Insurance team at a recent staff outing

The Insuror: How could our industry as a whole do a better job of supporting the communities they insure? RSS: Our industry should continue to build relationships with our clients and other community members to gain an understanding of their needs. Once we take that extra step of really getting to know our clients, we can strive to meet their needs, and work towards a common goal of community excellence.

The Insuror: Thank you for giving us your time, and we appreciate the work you're doing. RSS: It is our pleasure to serve, and we appreciate your continued support, Insurors! u The Tennessee Insuror

Eliminate time spent on premium payment collections Provides opportunity for reduced accounting expenses Expedites the premium payment process ACH or credit card payment* *Our credit card payment processing partners, FIS and Plug & Pay Technologies, charge $12.50 for payments under $400 or 2.99% for payments of $400 or more.

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HANK KNIGHT

Bad & Unethical Public Adjusters

...continued from page 12

4. Were references and qualifications provided? Yes, the insured's life is in chaos following a loss, but it's still important to check references if they are considering a public adjuster. The insured's agent may want to check references on the insured's behalf; in fact, this may be preferable because the same public adjusting firm may contact many of the agency's clients. If the agency checks the firm's references, every insured contacted by that firm must only call the agency for information. Again, make this about the services the agency provides. 5. Did the public adjuster attempt to pressure the insured into signing the contract? Statements such as, “Just sign this and we will take care of the whole thing for you," sound innocuous, but it is actually a type of “hard-sell." Remember, even though a public adjuster is involved, the insured must still participate in developing the proof of loss. 6. Did the adjuster fully explain the contract to the insured? Remember, public adjusters charge a fee for their service, often between 10 percent and 15 percent of total claim payment. If this and other provisions of the contract were not clearly explained, this is a red flag. One public adjuster interviewed said that fees over 10 percent are unacceptable. Some states have a limit of adjustment fees. 7. Did the adjuster ask for money up front? This is not proper in any way. If the public adjuster asks for money up front, do not contract with them.

certain amount of money. An ethical public adjuster wants to assure the insured gets everything they are owed, and no more. They are not in the business to increase the loss for sake of a little greater payout. Once a public adjuster is hired, the agent must still provide guidance to the insured, not necessarily through the claims process (as that becomes the public adjuster's role), but through the relationship with the public adjuster. Get to know the adjuster, if possible, and keep track of what they do. An ethical public adjuster will welcome the relationship and happily converse with the agent as time allows, an unethical one will avoid agent involvement and any conversation with another insurance professional working for/with the insured. If the public adjuster appears to be harming the insured, inflating the loss or otherwise acting in an unethical or illegal manner, contact the department of insurance. The agent's job is to protect the client and the insurance carrier from unethical public adjusters. About the Author Chris J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, is the Executive Director of the Big "I" Virtual University. His current duties involve researching, writing, and teaching property and casualty insurance coverages and concepts to Big "I" members and others in the insurance industry.

Recruit. Assess. Train. Retain.

8. Did the adjuster make any guarantees about the amount the insured will get paid? There is no way a public adjuster can guarantee anything, warn insureds against contracting with any public adjuster who guarantees a specific outcome. 9. Is the same person who “sold" the service the same person who will adjust the loss? This is not an ethical consideration, but the actual adjuster and the sales person may have very different personalities. Also, is the sales person just a sales person or do they understand coverage? The insured needs to know the qualifications of the assigned adjuster. 10. Does the contract address monies received prior to the hiring of the public adjuster? If the insurance carrier pays the insured “emergency money" or some other payment before the public adjuster was hired, that amount should not be a part of the calculation for payment.

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11. Does the public adjuster seem honest? This could be and likely is very hard to judge, but some public adjusters may give themselves away by telling the insured things they can or will do to “make sure" the insured gets a 48

Does the thought of hiring a new employee leaveInsuror you The Tennessee overwhelmed? Are you seeing turnover, or posting a job, but just aren’t finding the “right” person?

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Meetings Fall, Football & Functions Are Almost Here Big "I" Leadership Conference 9/29-10/3 The Big "I" Fall Leadership Conference will return as an inperson event on September 29 - October 3 at the Kansas City Marriott Downtown in Kansas City, Missouri. The event will feature the Education Convocation, National Board and Committee meetings, the Young Agents Leadership Institute and more. For further details, please visit www.iiaba.net and watch for more information soon on registration and hotel reservations.

Insurors 128th Annual Convention 10/16-19 The Insurors 128th Annual Convention returns to its inperson meeting tradition on October 16-19 at the Marriott Shoals Resort & Spa, located just outside of Florence, Alabama on the beautiful Tennessee River. We look forward to seeing everyone again as we host our opening celebration, tradeshow, sessions, golf outing, clay shoot, special events and more. We'll also have special guest entertainer Paul Overstreet performing at our Sunday night Opening Celebration and keynote speaker Manley Feinberg speaking at our Agents' General Session. Registration for the event is now open online! Please visit our Convention page at https://www.insurors.org/IOT/ Convention/2021ConventionHome.aspx for more info or to register now.

Could your agency weather a data security breach? A full 80 percent of businesses that experience one don’t.1 The right insurance can keep your agency from becoming part of this startling statistic. Data breaches are common among smaller businesses, and responding to a breach is both costly and complex. You are obligated to protect the data you collect, and package policies are often not enough. Make sure your agency has the right coverage in place to protect you and your insureds. Contact your Insurors E&O Specialist, Stephen Holmes, CIC, CISR, for information on Data Breach coverage.

ACT Tech Summit October 13-14 The Big "I" Agents Council for Technology will host their biannual meeting on October 13-14, 2021 in hybrid and inperson formats. The meetings allow agents, carriers, and tech vendors a forum to discuss how to effectively and efficiently implement technologies to help your agency thrive. Learn how to scale your agency's tech stack. Hear the latest on what carriers are doing with application programming interfaces (APIs). Find out what's ahead in our postpandemic industry. Demystify blockchain and understand the advancements it's propelling in the independent agency distribution channel. And SO MUCH MORE!

1. Privacy Rights Clearinghouse: Chronology of Data Breaches

Stephen Holmes, CIC, CISR sholmes@insurors.org 615.515.2609

See more info now at www.independentagent.com/Events u The Tennessee Insuror

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Member Tips Do Agencies Need Consent to Text with Clients? from the Big "I" Ask An Expert Service Question: Do agencies need to ask for consent before texting with a prospect or client? Is a verbal response acceptable or is there a formal way to document proof of consent prior to texting? Virtual University Team: The National Big “I" Office of the General Counsel published a memo on texting with clients that advised getting written consent from clients before sending them texts. To quote: As background, the Federal Communications Commission (“FCC") has broadly interpreted the Telephone Consumer Protection Act (“TCPA") to prohibit nearly all commercial text messaging (aka, short message service or SMS) on any device that qualifies as an “automatic telephone dialing system" (ATDS) or autodialer. Unlike the rules for some commercial communications, the TCPA does not provide an exemption for an existing business relationship. Moreover, the FCC has found a consumer may generally revoke consent to texting using “any reasonable manner that clearly expresses his or her desire." The memo continues: Expressing concern that the TCPA could be “read to render every smartphone an ATDS," the D.C. Circuit struck down broad guidance issued by the FCC in a 2015 decision … In April 2021, the Supreme Court brought some clarity to the issue in the case of Facebook v. Duguid. The Court ruled that a device must have the capacity to either store or produce a telephone number using a random or sequential number generator, as opposed to merely having the capacity to store and dial numbers automatically. While this is an important and helpful decision that should significantly curb TCPA litigation in the future, there are some caveats. Whether consent is expressly required by the TCPA is an open question that turns on how texting is implemented. For example, what device and software is used and whether it could constitute an autodialer or uses a prerecorded voice. It is best practice to obtain written opt-in consent regardless to be on the safe side in an area that has generated a lot of litigation and as good business practice to help ensure you are not annoying clients Contact your attorney to formalize your approach and be prepared to update as the laws evolve. They will provide the legal format of all applicable warnings. u

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ACUITY (920) 458 - 9131 www.acuity.com 9 Alliance Interstate Risk (334) 834 - 7911 www.allianceinterstaterisk.com 42 Arlington/Roe (800) 878 - 9891 www.arlingtonroe.com 7 Bailey Special Risks, Inc. (800) 768 - 7475 www.bsrins.com 12 Berkley Southeast Insurance Group (615) 932 - 5508 www.berkleysig.com 19 Berkshire Hathaway Guard Insurance Cos. (800) 673 - 2465 x4567 www.guard.com/apply 22 Big "I" Hires (800) 221 - 7917 www.bigihires.com 48 Builders Mutual (800) 809 - 4859 www.buildersmutual.com 33 ePayPolicy (844) 372 - 9300 www.epaypolicy.com 52 FCCI Insurance Group (800) 226 - 3224 www.fcci-group.com 39 Foremost Insurance (800) 527 - 3905 foremostagent.com/get-appointed 49 Genesee General/Jencap (800) 282 - 8755 www.geneseeins.com 33 Governmental Risk Insurance Plans (GRIP) (270) 282 - 8020 www.governmentalriskinsuranceplans.com 16 Harford Mutual (800) 638 - 3669 www.harfordmutual.com 45 Imperial PFS (443) 613 - 4820 www.ipfs.com 47 INSBANK (866) 866 - 4268 www.insbanktn.com 11 J.M. Wilson (800) 595 - 0063 www.jmwilson.com 42 Keystone Insurers Group (800) 416 - 5498 www.keystoneinsgrp.com 40 Liberty Mutual/Safeco (800) 837 - 5254 libertymutual.com | safeco.com 30 Lipscomb & Pitts | A Higginbotham Partner (901) 335 - 0951 www.lpinsurance.com 20 LUBA Workers' Comp (888) 884 - 5822 www.lubawc.com 15 Markel Specialty (800) 431 - 1270 www.markelcorp.com 22 MidSouth Mutual Insurance Company (844) 438 - 6642 www.midsouthmutual.com 26 Mountain Empire Agency Alliance (423) 560 - 6077 www.meaa4u.com/insurors 2 National Alliance (800) 633 - 2165 www.scic.com 55 National Security Group (800) 239 - 2358 x213 www.nationalsecuritygroup.com 26 Nationwide Insurance (423) 927 -2060 www.nationwide.com 17 Penn National Insurance (800) 395 - 0518 www.pennnationalinsurance.com 56 RLI PUP (615) 515 - 2609 www.insurors.org 8 SecureRisk (770) 723 - 8096 www.securerisk.com 38 Stonetrust Insurance (800) 311 - 0997 www.stonetrustinsurance.com 43 Summit Holdings (800) 971 - 2667 www.summitholdings.com 13 Swiss Re Lawyer's Professional Liability (630) 213 - 9952 www.swissre.com 36 Titan Digital (615) 890 - 3600 www.titanwms.com 24,32 West Bend Mutual Insurance Co. (800) 236 - 5010 www.thesilverlining.com 34 WAHVE (646) 807 - 4372 www.wahve.com 50

INSURORS 128th ANNUAL CONVENTION

& PAUL OVERSTREET

T H E N A T I O NA L A L L I A N C E I N F O M A P

Map your career track and customize your learning experience by selecting the designations and course offerings that fit your needs.

Rubles CIC

CISR Introductory Series

T H E NA T I O NA L A LLI A NC E I NF O MA P

Map your career track and customize your learning experience by selecting the designations and course offerings that fit your needs.

Rubles CIC

CISR Introductory Series

CRM

Dynamic Series

WTH Seminars

CSRM CPRM

The Introductory Series is a good choice for those interested in finding out more about the industry and industry fundamentals. The Dynamics Series, offers career-changing sales training. Providing a variety of pertinent topics, the William T. Hold Seminars are invaluable for expanding your insurance knowledge. The Dynamics Series can be used to meet update requirements across the designations. WTH Seminars satisfy update requirements for CISRs and CSRMs.

The Certified Insurance Service Representative (CISR) designation provides quality insurance education geared toward customer service representatives, account executives, servicing agents, new producers, and other professionals. The Certified School Risk Manager (CSRM) designation fills a need for quality risk management education for those associated with schools.

The Certified Insurance Counselor (CIC) provides an in-depth, practical approach to education for agents and other insurance practitioners. The Certified Risk Manager (CRM) designation is recognized as being the foremost education available in the field of risk management. The Certified Personal Risk Manager (CPRM) designation yields the best training for meeting the needs of an affluent clientele.

The James K. Ruble Seminars are advanced programs that offer a variety of specialty topics. CICs, CRMs, and CPRMs can meet their annual updates with a Ruble seminar.

Dynamic Series

CRM

WTH Seminars

1 CSRM

2 The Introductory Series is a good choice for those interested in finding out more about the industry and industry fundamentals. The Dynamics Series, offers career-changing sales training. Providing a variety of pertinent topics, the William T. Hold Seminars are invaluable for expanding your insurance knowledge. The Dynamics Series can be used to meet update requirements across the designations. WTH Seminars satisfy update requirements for CISRs and CSRMs.

CPRM

3 The Certified Insurance Counselor (CIC) provides an in-depth, practical approach to education for agents and other insurance practitioners. The Certified Risk Manager (CRM) designation is recognized as being the foremost education available in the field of risk management. The Certified Personal Risk Manager (CPRM) designation yields the best training for meeting the needs of an affluent clientele.

The James K. Ruble Seminars are advanced programs that offer a variety of specialty topics. CICs, CRMs, and CPRMs can meet their annual updates with a Ruble seminar.

VISIT SCIC.COM FOR MORE INFORMATION OR INSURORS.ORG TO REGISTER FOR CLASSES NOW

We answer to main street, not Wall Street. As a mutual company, we are owned by our policyholders. We focus our

For more information about our products, please contact one of our territory managers at 615-889-2740. Andy Wilder 7528 Brent Pottsext. ext 7514 Brent Potts ext. 7614 Jane Kinard ext 7518

Jane Kinard ext. 7618 Bob Reeder ext 7545

time, attention, and resources on delivering superior financial strength and stability, a comprehensive product portfolio, and most of all, on doing what’s right for policyholders. To us, policyholders are much more than insurance consumers. And because of that, all of our business decisions are made with a policyholder-first focus.

The Tennessee Insuror August 21

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