THE TENNESSEE
INSUROR July/August 2014
Vol. 25 No. 4
www.insurors.org
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Looking Back on 25 Years
Cheryl Edwards Named As OCSR of the Year in TN Does No App Present Agent Trap?
It’s Not Comp-licated Tennessee Work Comp Administrator Abbie Hudgens Gives Us Insight on the New Division
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- 2014 1989 years THE TENNESSEE
INSUROR
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The Tennessee Insuror
contents
THE TENNESSEE
INSUROR Vol. XXV, Number 4 July/August 2014
features
Phone (615) 385-1898 Toll Free: 1-800-264-1898 Email: info@insurors.org Editor: Charles T. Bidek, CPCU Publisher: Daniel D. Smith, Jr.
4 It’s Not That Comp-licated INSURORS OFFICERS
President ................................................................. Lou Moran III Immediate Past President .................................. Eddie Miller III State National Director .................................................. Brad Smith Vice President, Region II ...... Christie Reeves, CIC, CPCU, CPIW Vice President, Region I and Pres. Elect ....... Cindi Gresham, CIC Vice President, Region III ................................. John McInturff III Treasurer .............................................. Battle Bagley III, CIC, CPA Secretary ...................................................................... Rush Powers Director, Region I .............................. Sharon Simmons, CIC, CISR Director, Region I ...................................................... Edward Kaiser Director, Region I ........................................................... Tim Roberts Director, Region II ............................................. George Anderson Director, Region II ................................................... Joe Lester, CIC Director, Region II ................................................. Steve Copeland Director, Region III ..................................................... Kevin Ownby Director, Region III ............................................ Josh Gibbons, AAI Director, Region III ............................................. Mike Langley, CIC Young Agents Chairperson ....................... Paul Steele, CIC, CRM
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Display advertising rates, deadlines and specifications may be obtained by writing to Insurors of Tennessee, 2500 21st Avenue South, Suite 200, Nashville, TN 37212, calling 615.515.2601, e-mailing dsmith@insurors.org or online at www.insurors.org The Tennessee Insuror is provided to all Insurors of Tennessee members and associate members as a member service.
Tennessee Work Comp Administrator Abbie Hudgens Gives Us Insight...
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Looking Back on 25 Years
10
Regionalism: The New Economy
12
Cheryl Edwards Named as OCSR of the Year for TN
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Daniel Learns About Insurance: Droning On and On...
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Does No App Present Agent Trap?
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- 2014 1989 years THE TENNESSEE
INSUROR
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From Your President
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From Your State National Director
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From Your CEO
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Education Calendar
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Government and Legal Affairs
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Broker Spotlight
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Company Spotlight
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Company Briefs
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Meetings
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Member Tips
INSURORS OF TENNESSEE 2500 21st Avenue South, Suite 200 Nashville, TN 37212-0539 www.insurors.org
Magazine Hits Silver Anniversary Milestone
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It’s Not That Comp-licated
Tennessee Work Comp Administrator Abbie Hudgens Gives Us Insight on The New Division
In July of last year, Abigail Hudgens began her appointment as the Administrator for the State’s new Workers’ Compensation Division. In this position, she now oversees the state’s Workers’ Compensation system, which provides benefits to employees who are injured during the course of employment. Per her appointment by Governor Haslam, she will serve a six year term that runs into 2019. The Workers’ Compensation Division was created as part of a law passed in 2013 to remove work comp claims from court trials to an administrated panel system for claims and appeals. The Workers’ Compensation Division includes a Court of Workers’ Compensation Claims, a Workers’ Compensation Appeals Board, an Ombudsman program, a mandatory mediation program for disputed claims, a compliance program to identify and fine noncompliance with workers’ compensation statutes and development of medical treatment guidelines. The division administers the workers’ compensation medical fee schedule, a utilization review appeal program, and a program to monitor and resolve issues in case management for workers’ compensation. The division also provides an information awareness/education program on workers’ compensation. The division manages the Second Injury Fund, the Uninsured 4
Employers’ Fund, The Employee Misclassification Education and Enforcement Fund, The Medical Impairment Rating Registry and the Drug-Free Workplace Program. Prior to joining with the department, Hudgens was a consultant in private practice and had been a risk manager for Nashville and Davidson County Metro Government and the risk and benefits manager for the City of Knoxville. She has a Bachelor of Arts degree from the University of Memphis and an M.P.A. from the University of Tennessee. She has also earned an Associate in Claims and Associate in Risk Management from the Insurance Institute of America and is a past president of the national Public Risk Management Association. She is on the Executive Committee of the IAIABC and vice president of the Southern Association of Workers’ Compensation Administrators. The Insuror sat down with Hudgens to discuss her views on the new system and what challenges she sees moving forward.
You have certainly had a lot of experience in risk management, but what would you say “led you” to this role? During the time I was the risk/benefits manager for Knoxville, Tennessee (about 17 years), our workers’ compensation The Tennessee Insuror
program was self-insured and largely self-administered. We devoted a lot of effort to making workers’ compensation less adversarial and more effective for both the city and the employees. I was on the Workers’ Compensation Advisory Council for a number of years leading up to the 2004 reforms and again the focus was on making the system better. Tennessee’s workers’ compensation system is complex and there are many areas that have the potential to be improved so it was a natural lure for someone who likes to “make it better.”
It’s been a little over a year for you “on the job,” what challenges have you faced so far? The biggest challenge has been time. We don’t do our work in a vacuum so everything takes longer than you had hoped and, of course, we had to accomplish the implementation while the normal work of the workers’ compensation program had to be done.
should not hesitate to let us know. The law sets the parameters for what we can do, but we will do all we can to make workers’ compensation work for its citizens within those parameters.
What do you hope to have accomplished before the end of your term? My list of hopes is long and includes: shorter time period from the date of injury to conclusion of a claim, more employees back to their former life after an injury, a lower cost per $100 of payroll, a workers’ compensation system that is less burdensome administratively for employers, employees, and medical providers, lower incidence of opioid use in workers’ compensation claims, a system that is easier to navigate for unrepresented workers, better medical outcomes for injured workers. That is an ambitious list for the next five years, but it is what I hope for and I am happy to say that the Workers’ Compensation Division shares these hopes.
Do you feel that your role, and the role of your Division, make Tennessee a better State for doing business?
Hudgens accolades and achievements speak for themselves
Are you happy with the progress that has been made? Yes. I am pleased that all the rules are in place. I am very pleased with the selection process for the first judges of the court. We had a dedicated and thoughtful group that took time out of their busy schedules to interview candidates and make recommendations. Now we have eight fine judges who have had wonderful training and are off to a good start. The National Association of Workers’ Compensation Judges very graciously provided judges from around the southeast to come to Nashville for training to help the new judges make the transition from “advocate to adjudicator.” Our ombudsmen are in place. They have been trained and are already responding to questions. The first treatment guideline will be completed soon and we expect the other guidelines to be ready before the “due date” in the legislation. We still have a lot to do, but the progress has been very good.
What do agents need to know, and need to tell their insureds, about your Division? The Division believes strongly in providing the best service possible to the people of Tennessee. If a problem arises, they The Tennessee Insuror
Yes, that is part of the Division’s mission. The 2013 reforms are a good step in that direction, but building a workers’ compensation system that makes Tennessee a better place for doing business involves more than legislation. It requires a court and an appeals board that is knowledgeable, fair, timely, and who exercises good judgment. It requires mediators and ombudsmen who excel at what they do. It also involves good service from all the other programs the Division provides to the citizens of Tennessee. When businesses consider whether to come to Tennessee, I want the workers’ compensation system to be a positive factor in their decision to bring new jobs.
One of the changes in the new law is how courts are to construe the cases. For years courts were directed to liberally construe workers’ compensation cases, but under the new law cases are to be construed fairly, impartially and not to favor one party over the other. Do you see this as a significant change, and how is it being implemented? It is a significant change. The new language was intended to ensure fairness to both employees and employers in the new court system, which is a different approach from the admonition to liberally construe the law in favor of the injured worker. The court has not heard its first case yet, so it is too soon to evaluate how much change the new language will bring. I do know that there has been an emphasis on the concepts of fairness and impartiality as the court has made its preparations to hear cases.
Thank you for your time. Thank you for having me. I hope if your agents have questions 5
they will contact our office at 1.800.332.2667 or wc.info@ tn.gov.
More Information on the Work Comp Division The Division of Workers’ Compensation works to promote a better understanding of the benefits and requirements of the Tennessee Workers’ Compensation Act by informing all parties of their rights and responsibilities. To assist in reaching this goal, they administer a proven system of programs designed to assist both employers and injured workers resolve disputes that occur after a workplace accident or injury. Much more information can be found on the Division of Workers’ Compensation website at http://www.tn.gov/labor-wfd/ wcomp.shtml. View required forms, rules, contact info and a very extensive Frequently Asked Questions (FAQs) section, as well as information you can use to educate your clients on Work Comp. You can also read through the practices and procedures of the new Court of Workers’ Compensation Claims and the Public Chapter that put it in place. Still need more information? Visit one of the Work Comp Division’s eight regional office locations: Chattanooga 540 McCallie Avenue, Suite W600 Phone: 423.634.6422 Cookeville 444-A Neal Street Phone: 931-520-4290 Jackson 225 Dr. MLK Drive, 1st Floor Phone: 731.423.5646 Kingsport 1908 Bowater Drive Phone: 423.224.2057 Knoxville 520 Summit Hill, Suite 103 Phone: 865.594.5177 Memphis One Commerce Square 40 South Main Street Suite 500 Phone: 901.543.6077 Murfreesboro 845 Esther Lane Phone: 615.848.6743 Nashville MetroCenter 220 French Landing Drive Phone: 615.741.1383
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Download the territory map for the offices at http://www. tn.gov/labor-wfd/wcomp/wc_map.pdf. u 6 TI14_Fowler_3.625x10.indd 1
The Tennessee Insuror
6/9/14 10:57 AM
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The Tennessee Insuror
there when it matters most
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14 0 2 1989 years THE TENNESSEE
INSUROR Looking Back on 25 Years Magazine Hits a Silver Anniversary Milestone
Insurors of Tennessee has been around for over 120 years, and in that time we have seen a lot of “firsts” in the industry. We have also been a part of some ideas that changed the insurance business in Tennessee, and hopefully for the better. In 1989, Chuck Bidek had an idea for the Association to launch its own magazine. Now, twenty-five years later, we feel our trade publication is one of the best in the industry. But how did we get there? In the early days, the magazine was only twenty pages, and was almost completely printed in black & white. The cost for color printing was prohibitive at the time compared to the ad revenue generated by the magazine. Advertisers could pay for a color ad however, and Fireman’s Fund was the first one to do so in November of 1989.
Some Things Never Change From the very first issue, the magazine featured an article from the Association President and the CEO (then known as the Executive Director). With technical columns, industry updates, government affairs and an article on insurance regulation, that first issue had a lot in common with the issues of today. But it also included a few things we don’t see anymore, like a new member list and letters to the editor. One of the annual features of our magazine is an issue that spotlights the upcoming convention. In 1990, that tradition 8
started by showcasing country music singer/songwriter and comedian Ray Stevens. The magazine grew quickly that year, and by the end of 1990 it was up to 44 pages in length. More advertisers were coming on board as well, with technology ads for the Rackley Rater and even cellular phones!
And Some Things Do Change The modern day version of the magazine features a lot more content than those early issues, including legal articles, banking & finance topics, member stories and more. But a lot of the same themes can still be found. Insurance agents are interesting people, and our industry is an ever-changing one. The magazine now spans 56 pages, and there are a lot more ads and articles. In fact, the March/April issue this year contained the most ads ever sold in the magazine’s history! And while we appreciate all of our advertisers, it is the stories about our members and partners that really make some of the most memorable issues. Over the years we’ve featured Presidents, Governors, singers, athletes and even a tiger on the cover of The Tennessee Insuror. And in the next 25 years, we hope to feature even more items of interest to insurance agents in Tennessee. So if you know of a story that we should be including in a future issue, be sure to let us know about it. And as always, thanks for reading! u The Tennessee Insuror
The building that would become the Insurors headquarters was featured on the last issue of 1992
Charlie Williamson was the first Insurors Board President to be featured in the magazine
THE TENNESSEE
INSUROR TIMELINE
The first issue with a cover printed in color was published in March of 1990
The magazine premiered in July of 1989 with member and State Senator Lou Patten on the cover
THE TENNESSEE
INSUROR September/October 2010
Vol. 21 No. 5
www.insurors.org
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Welcome to Nashville Meet Your Flood Manager
Your 2010 Conferees
Association Awards Insurors Takes Home Two Prestigious Honors from Peers
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George W. Bush became the first U.S. President to appear on the Insuror cover in 2005
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INSUROR May/June 2014
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CSR of the Year Call for Entries
INSUROR January/February 2010
Vol. 21 No. 1
Survivor 2010: Insurance Agency Edition
www.insurors.org
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Location, Location, Location: New Venues Titans 2014: A Season of Change
Portraits of Success of Directors
The magazine now goes out to over 4,000 subscribers and receives around 15,000 impressions per issue
Music City Meet-up
Singer, Songwriter and Nashville Show
Contributor Jaida Dreyer Will Headline Insurors 121st Annual Convention
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The Real Time 21 Day Challenge
www.insurors.org
Meet Your 2010 Board
Vol. 25 No. 3
That Bicycle Costs How Much?!
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The magazine has been the recipient of several awards, including two from ASAE in 2002 and 2009
2014 1989 -years THE TENNESSEE
INSUROR
The magazine debuted a digital edition in January of 2010, adding over 3,000 new readers
Penn National Insurance ran the below advertisement on the back cover of the first issue of The Tennessee Insuror, in the space they still hold today
The Tennessee Insuror
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Regionalism: The New Economy New Challenges Facing Monetary Policy
Every few weeks we get a barrage of various economic data points out of Washington, D.C. These are aggregated and analyzed by policymakers and Fed-governors to arrive at decisions on monetary policy - Should the money supply expand or contract? Is there evidence of inflation? Are jobs being created? Will housing starts continue? Since I happen to be located in Nashville, when I read about economic matters I tend to use my local market as my reference point. In recent quarters, when many middle-Tennesseans heard that the U.S. economy was ebbing and flowing in a very slow recovery, they probably found themselves thinking that their local market was quite different - it has been thriving. Conversely, I also have heard from other bankers in other regions that their economies are not seeing job growth, demand for new construction, nor are property values steadily increasing. Well-documented are the fiscal challenges that face municipalities such as Detroit or Stockton, California. It is possible that the national economy is now more of an aggregation of municipal “haves” and “have-nots” than it has ever been. What has driven this bi-polarity in our economy? On the negative side, local economies in the rust-belt region that were once dominated by union-driven industries are now faltering. So are states with large defined-benefit obligations to public sector employees such as Illinois and California. Conversely, there are states such as Texas, Louisiana, South Dakota and Pennsylvania that are seeing healthy growth as a result of a growing oil and natural gas industry. Additionally, there are states such as Tennessee and North Carolina that are seen as good for business due to a composite of factors
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by Jim Rieniets, President & CEO of INSBANK
such as; state tax policy, pro-business state government, cost of living and wages, and climate. Even within individual states the relative economic health can vary widely by region. In Tennessee, for example, the statewide unemployment rate stands at 6.4%. Contrast that with the 5.1% unemployment rate in the city of Nashville and it becomes clear that economic experiences vary. From a policy-making standpoint, our nation works off of averages. I recently had the opportunity to ask St. Louis Fed President James Bullard about the Fed’s concerns on the growing disparity between regional economies, and he admitted that the Fed has limited ability to address the issue. Only when the aggregate/average data demonstrate growth at or above the Fed’s targets for GDP and inflation will the Fed be compelled to raise interest rates. Recognizing this, consumers and businesses borrowing money in areas of the country experiencing prosperity have a “double-dip” opportunity to see growth in values leveraged with cheap money. Conversely, bond-investors and depositors should not get too optimistic about a yield increase in the very near future. About the Author Jim Rieniets serves as President and CEO of INSBANK, which requires him to manage the day to day activities of the bank. He also serves as a director of INSBANK and on the Loan and Investment Committees, as well as being the Chief Manager of the bank’s subsidiary, Finworth Mortgage, LLC. Jim has an extensive banking career and leadership background and formerly served on the Credit Committee of the Tennessee Bankers Association. u
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Cheryl Edwards Named as OCSR of the Year for Tennessee
National Alliance Award 2014 Goes to Clarksville Agency CSR Cheryl R. Edwards, CIC of BFS Insurance Group in Clarksville has been named as the 2014 National Alliance Outstanding Customer Service Representative of the Year for Tennessee. Cheryl has been in the insurance industry for over thirty years, starting her career just after graduation from South Gwinnett High School in Snellville, Georgia in June of 1983.
In June of 1988 she changed to the agency side of the business working as a Commercial Lines Customer Service Representative for Weathers Insurance Agency in Doraville, Georgia. She moved to Tennessee and began working for Security Insurance Agency in Nashville in 1995. Cheryl would go on to work as a Customer Service and Account Representative for Parish Motorsports; Crichton, Perry, Brandon, Jackson & Ward Insurance Agency; AC Insurance Agency and AAA Insurance Agency. In October of 2010, she rejoined the company side of the business to work with Sentry Insurance Company as a Consumer Products Specialist working from home. In September of 2011, she return to an agency, working at BFS Insurance Group in Clarksville as a Personal Lines Account Manager. Cheryl says the agency is where she hopes to spend the rest of her career. Cheryl earned her CIC designation in October of 2006, which she feels has benefitted her career, “I feel that the education earned while obtaining my CIC designation has broadened my knowledge of the insurance industry and the coverages available in the marketplace and feel that it has made me a better sales person and customer service representative, better able to understand my client’s needs.” How has Cheryl remained as such a successful veteran of the industry? She feels it has a lot to do with the people she surrounds herself with. “I feel that my success is due in large part to the people that I work with and the companies that we represent. I have been armed with great products and great education for the products and a fabulous support system within the agency that I work for. The owners’ of the agency are dedicated to providing continuing education to all of its employees and providing products and product education so that we are in the best position to work with our clients’ to 12
provide them the best possible service available,” she continues, “We have the best staff here and all work well together and we have a common goal of meeting our clients’ needs while making them feel at home. I love my job and I love helping people to protect the assets that they have worked so hard for all of their lives.”
Recognition and National Award Cheryl will be recognized at the 2014 Conferement Ceremony, taking place November 11th at Richland Country Club in Nashville. As a state winner, she is now in the running for the National OCSR of the Year Award which carries a $2,000 cash prize, a gold and diamond pin, $1,000 cash award for the nominator, and a scholarship for the recipient’s employer to any program offered by National Alliance. Insurors congratulates Cheryl on this achievement. u
CONGRATULATIONS!
Cheryl Edwards, CIC Personal Lines CSR BFS Insurance Group
The 2014 Tennessee Outstanding CSR of the Year
The Tennessee Insuror
(YHQ WKH RIÀFH FRIIHH WDVWHV EHWWHU ZLWK %XUQV & :LOFR[ PERSONAL INSURANCE
Your traditional insurance markets can handle most of your clients’ personal insurance needs, but not all. Even wholesalers have their limits, unless your wholesaler is Burns & Wilcox. As the largest personal insurance wholesaler, our unequaled access to markets means quick solutions for all your hard-to-place risks. Don’t call just any wholesaler. Just call Burns & Wilcox. Nashville, Tennessee | 615.251.1297 fax 615.248.4348 nashville.burnsandwilcox.com continued on page 48 Commercial | Personal | Professional | Brokerage | Binding | Risk Management Services The Tennessee Insuror
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Daniel Learns About Insurance: Droning On and On and On... Is This New Market Segment Going to Fly?
Insurors Director of Communications Daniel Smith is far from an insurance expert, but he is trying to learn! In this new series he will look into insurance and coverage questions he has about popular trends and day-to-day life. The 4th of July in Nashville has become quite a spectacle. The city’s fireworks display over the Cumberland River in Downtown can be seen for miles, and has been named as the second best such display in the country. During this year’s fireworks, a friend of mine’s husband flew his GoPro camera into the exploding lightshow attached to a remote controlled drone. The video became a big hit on social media and has garnered almost 80,000 views on YouTube (watch it at http://www.youtube.com/watch?v=KJ9KLLCCwqs if you’re interested). But the acclaim from the video also brought some unwanted attention, as the Federal Aviation Administration (FAA) investigated the flight after some complaints were sent into the Nashville office. Was it a danger to the public? I really don’t see how, but I could see it being a danger to the $1,300 drone itself. A direct hit from a firework probably would not be good for the drone’s wellbeing. The FAA has already been under the gun to regulate commercial drone (technically known as unmanned aerial systems) use, as inspectors, claims adjusters, surveyors and even corporations like Amazon, FedEx and Dominos have discussed incorporating drones for their services. In fact, the FAA estimates that by 2020, as many as 30,000 drones1 will be used for business purposes. They also forecast that over $94 billion will be spent on these drones in the next ten years.
written by Daniel Smith
Interestingly enough, commercial drones are technically illegal. In a 2007 policy statement, the Federal Aviation Administration essentially declared a ban on operating drones for commercial purposes. But many companies are ignoring the FAA regulations, and moving forward with drone-based programs. Congress has now mandated that the FAA release regulatory guidelines for incorporating drones by September of 2015. In the meantime, the FAA is considering developing a quick permit-approval process for drone operators. Tired of waiting on the potential changes, many commercial drone operators have taken action of their own. Commercial drone enthusiast and lawyer Peter Sachs recently launched the Drone Pilots Association, which is meant to represent the groups interest against any “overreach” by the FAA. In a statement on the group’s website, Sachs says that, “We all want the ability to operate commercially, and we all want to operate safely and responsibly while doing so.” The group had over 900 members2 sign up in the first week.
Will Regulation Include Insurance? Since drones will be operating in public airspaces, they’ll undoubtedly require insurance. In an article for IA magazine, Jim Roe, president of Arlington/Roe stated that he feels agents will begin seeing opportunities for drone business, whether they deal in aviation insurance or not. “It’s going to be a huge area of opportunity,” Roe says. “We’re getting more and more calls about drones. Underwriting criteria and pricing models
There could be over 30,000 commercial drones in the air by 2020
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The Tennessee Insuror
IT’S THE RIGHT THING TO DO. Arlington/Roe. You have our word on it. “Whether you choose Arlington/Roe for our breadth of knowledge, product line diversity, market access or industry know-how, you may be assured we are in business primarily to serve you. We will do our best to earn and keep your trust. You have our word on it.” – James A. Roe, CPCU, ASLI, President
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The Tennessee Insuror
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for drone risks will continue to evolve within the changing marketplace.� Arlington/Roe has a market for drones within aviation department, and has already written some business in Tennessee. So what types of coverage do drone operators need? Obviously there is physical damage coverage needed, as many drones cost thousands of dollars and often carry similarly expensive equipment. Legal liability coverage is also needed, as flying these drones can create risks of damage to person and/or property. There also may be special liability coverage depending on the specific use of the drone. Some companies are adapting current CGL policies to cover drones, but these may leave gaps. Be sure you consult your client and potential underwriter and thoroughly discuss the uses and possible risks.
THE BRITISH ARE
COMING HERE
1-Based on article http://www.faa.gov/about/office_org/headquarters_offices/apl/aviation_forecasts/aerospace_forecasts/2012-2032/media/Unmanned%20Aircraft%20Systems.pdf 2-All statistics per www.dronepilotsassociation.com
About the Author Daniel Smith serves as the Director of Communications for Insurors of Tennessee. He has a Bachelors degree in Marketing with a minor in Graphic Design from the University of Tennessee at Chattanooga. He may be contacted at dsmith@insurors.org. u
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Tennessee Underwriters is a family-owned surplus lines broker committed to providing the best personal service and support to insurance agencies.
The Tennessee Insuror
Franklin, TN 37064 Phone: 615.791.1400 800.365.0646 Fax:
615.794.7115
Email:
quotes@tnund.com
www.tnund.com
17
we have a new name along with a new look, and all the same great solutions you’ve come to expect
Effective January 1st Union Standard Insurance Group in Tennessee is now Berkley Southeast Insurance Group Berkley Southeast Insurance Group (BSIG) is a member company of W. R. Berkley Corporation, a Fortune 500 Company, whose insurance company subsidiaries are rated A+ (Superior) by A. M. Best Company. A M
BEST
Our independent agents and policyholders can expect to continue to receive the same outstanding products, services and solutions, as our staff remains unchanged. Bill Emerick, Regional Vice President, continues to lead our staff at the local branch office at 5301 Virginia Way, Suite 250, Brentwood, TN. BSIG takes a broad approach to underwriting for ‘best in class’ business primarily in the construction, light manufacturing, hospitality, real estate, mercantile, wholesale and business service industries.
introducing exceptional Berkley Southeast Insurance Group is committed to working with young independent agents of Tennessee. They are the future of our business. BSIG recognizes the need to mentor the growth of new talent and to perpetuate the Independent Agency System as well as provide young agents a competitive advantage. That’s why we are working together for success with Tennessee’s Young Agents.
congratulations exceptional agents Aaron Jensen Leslie Frazier Justin Baxter Adam Reeves Brandon Patterson Chad Snider David Evans Emory Martin Garrett Flannery Hank Coppedge Jamie Williams Jared Smith John Fritts Josh Witt Kevin Ownby Matt Spellings Melissa Wilder Mike Thomas Robert Harris Tyler King Will Dodson Michael Novarese Jeremy Stiltner Jason Stiltner Stacy Woodard Jared Garrett Will Webb
Shafer Insurance Agency, Knoxville Shafer Insurance Agency, Knoxville Shafer Insurance Agency, Knoxville Union City Insurance Agency, Union City Ownby Insurance Services, Sevierville Westan Insurance Group, Martin The Insurance, Group, Inc., Knoxville King & Associates, Brentwood Carroll Insurance Agency McKenzie Miller Loughry Beach Ins. Svc., Murfreesboro Hardin County Bank Ins. Agcy., Savannah TIS Insurance Services, Knoxville TIS Insurance Services, Knoxville The Insurance Group, Inc., Knoxville Ownby Insurance Services, Sevierville Consolidated Insurance Agency, Paris Insurance, Inc., Nashville Insurance, Inc., Nashville Tigrett & Pennington, Nashville King & Associates, Brentwood Arthur J Gallagher Risk Mgmt Svc., Nashville McDaniel-Whitley, Inc, Memphis Bennett & Edwards Insurance, Kingsport Bennett & Edwards Insurance, Kingsport Inter-Agency Insurance Service, Inc., Knoxville Gary Maxwell Insurance Agency, Inc., Livingston Battle Page Insurance, Franklin
At Berkley Southeast Insurance Group we have local people finding practical solutions…. for our agents and policyholders. For additional information please contact: Bill Emerick at bemerick@berkleysig.com or 615.932.5508
berkleysig.com local people finding practical solutions 18
commercial lines property and casualty insurance
berkleysig.com local people finding practical solutions The Tennessee Insuror
Future Leaders Spotlight
presented by
Tommy Allmon • White & Associates Insurance Agency - Dyersburg Tommy Allmon of White & Associates
Tommy Allmon grew up in a small town in Gibson County. He now lives in Dyersburg and works with White & Associates, LLC, where he has been employed for the last ten years. His wife Whitney also works for White & Associates, which has twelve locations across West Tennessee and Missouri. The two have been married for nine years and have three children together; Edie (3), Woods (1) and Bennett (6 months).
The Insuror: Can you tell us a little about your current job title and responsibilities? Tommy: My current job title is Producer/President of White & Associates, LLC. I manage the Personal Lines division but write business in all lines.
The Insuror: What can you tell us about your educational background? Tommy: I graduated from the University of Tennessee at Martin in 2003 with a Bachelor of Science degree in Business Administration and another Bachelor of Science degree in Health and Human Performance. In 2005, I attended The Hartford School of Insurance Commercial Lines Producer Development Program. I have also attended many of the Insurors Young Agents Conferences and programs.
The Insuror: How and why did you get started in insurance? Tommy: During my last semester of college I did an internship with the Memphis Riverkings, a minor league hockey team, but decided I might want to work in an industry that is a little more rewarding and lucrative, both professionally and financially. I had a couple of interviews and one was with another insurance company. Whitney and I had just gotten engaged at the time, and her father and agency owner, Larry White, offered me an opportunity to come on board at his agency The Tennessee Insuror
instead of possibly going to work for a competitor. I started working here that summer and I am still here ten years later.
The Insuror: Do you have any influences/role models in the industry? Tommy: Larry White, my boss and father in law, has obviously had a major influence on me since I’ve been in insurance. He is a great leader and he’s continuously looking for opportunities for us to improve as an agency and as individual producers. I’ve had several other people in the agency that have had an influence on me with Bubba Hendren being one of those individuals. He managed our Personal Lines division for years and I learned a lot from him.
The Insuror: Is there any advice you could offer Young Agents or others in the industry to achieve success? Tommy: I think the main ingredient in being successful in this industry, and in anything in life, is simply hard work. You’ll pick up some accounts that are family, friends, etc. but you have to be willing to put forth the extra effort to be successful. Building relationships with clients and companies is vital for you to succeed in this business!
The Insuror: As an independent agent, you have many partners in this industry, including carriers, MGAs and many more. How do determine which ones are the right relationships? Tommy: The things that stand out to me are relationships, reputation, and consistency. The market is pretty vulnerable right now and I see us placing more business with the companies that have invested time in our agency, provided resources for their agents, are easy to do business with and have a good reputation. If you were to look at our production, as well as what companies we are growing with, you’d see some consistent names at the top. Those are the companies that we’ve established relationships with, done business with for several years, and that will hopefully be here for years to come.
The Insuror: Thank you for giving us your time Tommy, we appreciate it and wish you continued success in your career. Tommy: Thanks to the Insuror for including me in the series. u 19
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20
The Tennessee Insuror
From Your President
Our 121st Annual Convention: Don’t Miss It!
Nashville… is it a hit TV show or a city in the state of Tennessee? In this case it’s neither Nashville is the home to The Insurors of Tennessee 121st Annual Convention! So go ahead and click over to the Insurors of Tennessee website at www.insurors.org and register now! It is going to be a great one! The dates are October 11th-14th in downtown Nashville at the new Omni Hotel. We have a great schedule of events and speakers in place for this year, just check out some of the schedule: On Saturday, October 11th we will kick off the convention with the chance to attend a Nashville Predators Hockey game at Bridgestone Arena. This will also include a reception at the DEX All-Inclusive Zone. Sunday, October 12th put on your Titans Blue and help the home team send the Jacksonville Jaguars home with a big loss. Kickoff is scheduled for high noon on Sunday at LP Field, and we have game tickets available for you to purchase. After the Titans’ victory, head on back to the Omni to meet and mingle with your fellow agents and your favorite company representatives in the Exhibit Hall and Trade Show. We will also have a special “Meet the Vendors” reception that evening which will include a few tasty cocktails and appetizers before the night really gets rolling. Remember we are in Nashville - so let’s do Nashville proud for our Sunday Opening Night Celebration - put on your best Black Tie and Blue Jeans as we head over the Country Music Hall of Fame’s new Event Hall. That will be the venue for our dinner and live concert featuring Jaida Dreyer, a rising country music star who also has written a number of songs for the hit TV show Nashville! Make sure to have on your best Nashville duds, because you never know, we might just have a little something in store for the folks wearing the best Black Tie and Blue Jeans attire! The Tennessee Insuror
On Monday, October 13th we start the morning off with breakfast in the Exhibit Hall. Come and see your companies or meet your next one. We will also have several great breakout sessions which might allow you to take a nugget of information back to your agency. Monday afternoon, we have all our fun optional events from golf, to sporting clays, to sips n’ strokes (for those who would rather have a glass of wine or three and try to create your own masterpiece) to just hanging out in the Omni. Maybe that is the time you renew or make some new friends and swap insurance war stories. On Monday evening, the Young Agents are gathering at Pinewood Social Club. Daniel and Ashley had the pleasure of taking me over to see this place, and guess what Toto, we are no longer in Kansas. It is a cool and trendy place, and I sure stuck out like a fish out of water. The morning of Tuesday, October 14th is our Association Day Breakfast followed by the Annual Meeting. Now I know this does not sound exciting, but this is really a great day. We will have some great industry specific speakers plus the election and installation of next year’s Board of Directors. I am confident we will have another outstanding group of leaders which will be led by two people I am proud to call my friends. Cindi Gresham, the 2015 Insurors of Tennessee President and Christie Reeves, your 2016 President Elect.
“W e h a v e a great schedule of events and speakers in place for this year...”
Okay, I may be biased... but I think the staff of the Insurors of Tennessee has really stepped up their game with the events and schedule for the 121st Insurors of Tennessee Annual convention. So what are you waiting for? Go jump on the Insurors website now at www.insurors.org and register. And if you’re an insurance company or industry partner don’t wait, go register as a vendor today or risk being left out. The exhibit hall is filling up fast (Only 10 spots left). This concludes episode 4, so go ahead and cue the Nashville TV show theme music now. I’ll see you in Nashville! u
Lou Moran III 21
22
The Tennessee Insuror
From Your State National Director Are Our Associations Relevant to Our Business? Each year in August, our state Association nominating committee meets. Seeing that on the calendar gives me a chance to reflect on how blessed I have been over the past 36 years to be associated with the Insurors of Memphis, the Insurors of Tennessee and the Big “I” (IIABA) in my various roles. In 1981, I was first elected to the board of the Insurors of Memphis. I could not have known then how that would affect not just my career but my family’s life. It baffles me how some folks in our industry have become so reluctant to serve organizations that benefit all insurance agents (members or not many times). My question that surfaces from this reflection is, “What relevance does our Association hold as we go forward in a changing industry?” Social media has been a buzz word now for the last five years or more. I have used this space to encourage you to add this to your arsenal of weapons to help grow your bottom line. We have seen the effects on our industry as agencies and companies compete for the client who lives in the digital world. I am so encouraged when I learn that TrustedChoice.com is now seeing over 175,000 visits and over 3,000 leads a month with a 50% close ratio – and growing. That is positive change for our channel. Your Association at both the State and national levels have been and will continue to be leading this effort. That is certainly relevant to our business. Our state and national government affairs efforts are for many the most relevant part of our Associations. The fact is, at both the state and national levels our lobbyists are considered the experts and their counsel on any legislation regarding insurance is sought after. No other insurance industry association has larger PAC funds or more opportunity to affect races and legislation than ours. That is certainly relevant to our business. Education has always been a mainstay for our Associations, and while it looks quite different today, that does not mean it is less relevant. Mandatory CE certainly changed the education efforts and also opened up opportunities. Education is still extremely relevant to our business. Providing markets for our agency members has The Tennessee Insuror
always been important. While today we have many more clusters, co-ops and aggregators, there are still agencies in need of markets. Big “I” Markets continues to grow and that is certainly evidence of the need. So market access is still relevant to our business. I remember back in the early 80s when I began attending Insurors of Memphis luncheons. On the third Thursday of each month at Anderton’s Seafood Restaurant about 120 of us would pack in the banquet room. The noise of socializing that took place during those meetings was magical. That was where the news was shared, contacts were made and ideas were exchanged. While much of that now occurs online, it can never completely replace eye to eye conversation. Our State convention has been taking place for 120 years and number 121 is coming up in October in Nashville. With exception of maybe our State President Lou Moran, no other agent spends more time on Association business than I do. But the State convention is still relevant for me and I would not think of missing it – and you shouldn’t either. The atmosphere and opportunity provided at the event is relevant to our business. Back to my question, “Are Insurors and the Big “I” relevant to my business?” My answer based on just the brief comments above is HECK YEA! And I didn’t include the personal friendships formed by Cathy and I over the last 33 years. Can other entities become more relevant to us in some situations? Possibly some efforts by agent aggregators can be more effective in small pieces but I don’t think they can replace the whole pie. Insurors has been around for over 121 years and the Big “I” for over 118. I would be shocked to see our clusters, co-ops and aggregators still in existence in 100 years – and I belong to one as well. Our Associations have adjusted as the world and our industry has changed. I believe we will continue to do. If you do not see the relevance of our Associations I’d love to hear your thoughts on how the industry would look without them, both today and in the future. Will the future be different – certainly – but Insurors and the Big “I” will change to be as relevant in the future as they have been in the past. u
“T h a t is positive change for our channel.”
Brad V. Smith 23
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The Tennessee Insuror
From Your CEO
Join the VTF (Volunteerism Task Force)?
You likely have noticed that many businesses and organizations are taking on volunteer projects and supporting non-profits as corporate sponsors. Various titles identify these actions such as corporate citizenship, giving back, community assistance or cause marketing. Some companies give back by allowing their employees time off to work on community projects. The Big “I” (IIABA) is no exception, as they include a half-day social project as a regular part of their winter board meeting. In the last two years, our national brand - Trusted Choice - has developed a partnership to work with the well-known Make-A-Wish Foundation. Make-A-Wish raises funds to allow for children with life-threatening medical conditions to have their individual wish granted. Examples include sending a child and family to Walt Disney World Resort, letting them share a football outing with their favorite pro, or decorating a child’s bedroom to look like a space ship. Through Tennessee’s partnership with Trusted Choice, over $40K has been contributed to Make-A-Wish in the last two years. This is substantially more than the average state grant. Grants are provided to the chapters of Make-AWish. Tennessee is home to three chapters, one in each grand division of the State. The State Association coordinates the event(s) with the individual Make-A-Wish chapters in East, Middle and West (Mid-South). Although substantial, that amount is a mere pittance of the amount given by agencies and their employees each year through their “good works.” I am always impressed when I learn about the many things that our members are doing in their communities. From serving on school boards to working on church projects and mission trips, serving on boards of non-profits to coaching little league, our members work in the community year after year with little to no fanfare or special recognition. Recently, our Board of Directors approved a research project to measure your collective The Tennessee Insuror
efforts performed for the good of your community. You will soon be receiving some communication asking you to complete a short questionnaire online about your individual efforts. We have almost 500 agency members as part of Insurors. That represents nearly 5,000 Tennesseans contributing in their home towns. Therefore we ask that you make sure every employee in your agency answers our simple questionnaire which can be completed in about three minutes. The survey will measure the breadth of projects that you are involved in and the depth (amount) of time volunteered over a year’s time. We know some will have many listings, and some may have just one, but we are interested in all the data so we may compile the aggregate numbers.
Help Us Change the Perception Insurance agents are often vilified in the media, and sometimes even in our own General Assembly, for what you do for a living. I call the process “agent bashing.” Some of the wildest stuff I have heard over the past few years includes a theory that agents created the Nashville flood problem and a belief that healthcare problems are somehow a direct result of what some agent did or didn’t do. That’s why we are asking you to join the Volunteerism Task Force (VTF) by completing the survey. Your response will demonstrate the impact that our combined group of small businesses have every day in our State. And with this information, we can also show the naysayers, who question your worth, that agents care about people and the way of life of our citizens. Let’s prove them wrong and change the perception of the insurance agent in Tennessee. So, when you see the survey come in, please respond quickly and encourage others in your agency to do the same. Thanks for all you do for Insurors, our industry and your community. u
“Through Tenn ess e e ’s p ar tn e r ship with Trusted Choice, over $40K has been contributed to Make-A-Wish...”
Chuck Bidek, CPCU 25
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The Tennessee Insuror
Education Calendar
TAKE YOUR INSURANCE CAREER TO
THE NEXT LEVEL ::::INSURORS 2014 CE::::
TRI-CITIES/JOHNSON CITY
MEMPHIS
4/22 : CISR : AGENCY OPERATIONS 9/17 : CISR : PERSONAL AUTO
3/5-7 : CIC : COMMERCIAL CASUALTY* 3/20 : CISR : COMMERCIAL CASUALTY I 6/18 : CISR : PERSONAL RESIDENTIAL 11/13 : CISR : PERSONAL LINES
NASHVILLE KNOXVILLE
4/9-11 : CIC : LIFE & HEALTH 5/7-9 : CIC : AGENCY MANAGEMENT 7/24-25 : RUBLE : GRADUATE SEMINARS 8/13 : CISR : COMMERCIAL CASUALTY II 8/20-22 : CIC : COMMERCIAL CASUALTY 9/15 : CISR : ELEMENTS OF RISK MANAGEMENT 9/16-19 : CRM : CONTROL OF RISK* 11/12-14 : CIC : COMMERCIAL PROPERTY 11/12 : CISR : PERSONAL LINES 12/3-4 : CYBER RISK SEMINAR
4/23 : CISR : AGENCY OPERATIONS 6/11-13 : CIC : PERSONAL LINES* 9/18 : CISR : PERSONAL AUTO
ONLINE WEBCASTS (REGISTER AND VIEW DATES AT INSURORS.ABEN.TV)
: DATA PRIVACY INSURANCE : : ETHICS & BUSINESS : : WILLIAM T. HOLD - D&O LIABILITY : : NFIP FLOOD BASICS : : E&O RISK MANAGEMENT SERIES : : COMMERCIAL PROPERTY ENDORSEMENTS : : PROFESSIONAL ETHICS IN THE INS. INDUSTRY : : HOT TOPICS IN PERSONAL LINES : AND MANY MORE!
CHATTANOOGA 8/14 : CISR : COMMERCIAL CASUALTY II
CONTACT
The Insurors of Tennessee offers education opportunities to member agents across a wide range of insurance specialities 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 information about each class can also be found online.
WEBINARS
REGISTER AT WWW.INSURORS.ORG OR *WWW.SCIC.COM
(REGISTER ANYTIME AT INSURORS.CEU.COM)
: INSURANCE PRINCIPLES AND POLICIES : : LONG TERM CARE : : EMPLOYEE BENEFITS FOR SMALL COMPANIES : AND MANY MORE!
CALL LAURA THROWER AT 615.515.2607 FOR MORE INFORMATION OR E-MAIL HER AT LTHROWER@INSURORS.ORG ������������ ��� ���������� �� ��������� ���������:
CISR 8/13 8/14 9/15 9/17 9/18 11/12 11/13
Fee: $173
Commercial Casualty II Commercial Casualty II Elements of Risk Management Personal Auto Personal Auto Personal Lines Miscellaneous Personal Lines Miscellaneous
CIC
Fee: $385 (Ruble $420)
8/20-22 Commercial Casualty 11/12-14 Commercial Property
CE: 8
Nashville Chattanooga Nashville Johnson City Knoxville Nashville Memphis CE: 24
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.
ABEN Webcasts (insurors.aben.tv) 7/30 7/31 8/7 8/12 8/13 8/14 8/16 8/19 8/19 8/22 8/22 8/26 8/26
E&O - An E&O Claim 360 View CE: 2 $30 E&O - Agency Defenses/Procedures CE: 2 $48 Data Privacy Insurance CE: 2 $48 E&O - Considerations of Agent Ops CE: 2 $48 NFIP: Basic Flood Course + Updates CE: 3 $72 Ethics & Business Webcast CE: 3 $60 The E-World for Insurance Pros CE:3 $72 Those Kids and Their Cars CE: 2 $48 E&O - Agency Carrier Relationships CE: 2 $48 Hot Topics in Personal Lines CE: 2 $48 E&O - Understanding Agent Duties CE: 2 $48 Commercial Property Endorsements CE:2 $48 D&O Liability Insurance CE: 2 $48
Cyber Risk
Fee: $420
12/3-4 Cyber Risk Seminar
CRM
Nashville
Fee: $430
9/16-19 Control of Risk
Nashville
Online 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
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
(www.scic.com)
Legal & Ethical Requirments 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 e-Coverage 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
Register Online at www.insurors.org
Indicates course is presented by The National Alliance. Register for these courses at www.thenationalalliance.com The Tennessee Insuror
27
Let us ĮģĜĭĠ Īİĭ ıĤĠIJ ŌľʼnĽ ŎńŊ
Marine & Recreation
2 ĮłĶŁŁ ĝńĶʼnň ĝĶňň ĭŊŃĶķńŊʼn ĥĺʼnňŀľ
2 ĴĶĸĽʼnň ĮŅńŇʼnňĻľňĽ ĞŇŊľňĺŇň ģńŊňĺķńĶʼnň
2 ĨŊŁʼnľŅŁĺ İŃľʼnň ńŃ ńŃĺ īńŁľĸŎ 2 ĞĽĶŇʼnĺŇ ĪĸĸĶňľńŃĶŁ ĞĽĶŇʼnĺŇ 2 ıĶŇľńŊň īĶŎłĺŃʼn ĪŅʼnľńŃň
Habitation & Dwelling
2 įĺŃĶŃʼn ıĶĸĶŃʼn ĝŊľŁĹĺŇ/ň ĭľňŀ 2 īŇľłĶŇŎ ĮĺĸńŃĹĶŇŎ ĭĺŃʼnĶŁň 2 ģĪ ĶŃĹ ğī 2 īĞ 2 ĪŃŁľŃĺ ĝľŃĹľŃļ ĜŋĶľŁĶķŁĺ
Proud to be a member and partner with the AAMGA 28
The Tennessee Insuror
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The Tennessee Insuror
Government and Legal Affairs “Upon” Further Review
a. Anyone “occupying” a covered “auto” ...
Written by Ashley Arnold, Insurors General Counsel Recently the Tennessee Court of Appeals went to great lengths to look at what the term “upon” means in the Commercial Auto Endorsement of an uninsured motorist policy. The policy language at issue reads: B. WHO IS AN INSURED If the Named Insured is designated in the Declarations as:... 2. A ...limited liability company..., then the following are “insureds”:
The policy further provided that as used in the Commercial Auto Extension Endorsement for uninsured motorist coverage purposes, “‘Occupying’ means in, upon, getting in, on, out or off.” In the case on appeal, an over the road truck driver was struck by an unidentified car and injured while he was walking across a five-lane highway. After retrieving the tractor trailer truck for a job, he drove to a convenience store and parked the company owned tractor trailer on the far side of the highway. He walked across the highway to purchase a drink and some
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The Tennessee Insuror
31
chewing tobacco, and was walking back across the highway when struck by another car. The driver sought coverage under the uninsured motorist coverage on the tractor trailer. The court applied the definition and had to determine whether or not the driver was “occupying” the tractor trailer for the purpose of UM coverage. The only question was whether the driver was “upon” the tractor trailer under the definition. The court recognized that the term “upon” was sufficiently ambiguous to require an additional definition. The meaning of “upon” has been more clearly defined by the Tennessee Supreme Court using the following four criteria: 1. There is a causal relation or connection between the injury and use of the insured vehicle; 2. The person asserting coverage must be in a reasonably close geographic proximity to the insured vehicle, although the person need not be actually touching it; 3. The person must be vehicle oriented rather than highway or sidewalk oriented at the time; and 4. The person must also be engaged in a transaction essential to the use of the vehicle at the time. The court reviewed several cases that applied the “upon” criteria. In one case cited by the court, the plaintiff drove his company bucket truck to the site of a downed power line. He
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left the truck with his tools and walked some distance to perform work on the lines. Another vehicle ran off the highway and hit the plaintiff in the field. The court determined that at the time of the accident, he was not engaged in any transaction essential to the use of the vehicle. Because of this, the court determined that he was not “upon” the truck. Applying the above facts and facts of other cases which have applied this criteria to the driver of the tractor trailer, the Court determined that the driver was not “occupying” the tractor trailer by being “upon” it because the truck had simply transported the driver to the site where the injury later occurred. The driver was not operating the vehicle at the time of injury and its use did not bring about his injuries. The court found no causal relation or connection between the injury and the use of the insured vehicle. In fact, the court noted that the driver’s activities were not essential to the use or operation of the vehicle, and therefore, denied coverage under the uninsured portion of the Commercial Auto policy. About the Author Ashley Arnold has served as the General Counsel of Insurors of Tennessee since 2007, and previously consulted for the Association on legal and government affairs matters. She received her undergraduate degree from the University of Kentucky and her Juris Doctor from Samford University. She may be contacted at aarnold@insurors.org. u
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â&#x20AC;&#x153;Exclusive member agencies, collaborating to bring the best insurance solutions to their clients.â&#x20AC;? The Allison Insurance Group - Jackson 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 Inter-Agency Insurance Services - Knoxville
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Martin & Zerfoss, Inc. - Nashville McInturff, Milligan & Brooks - Greeneville Ownby Insurance Service, Inc. - Sevierville Smith-Berclair Insurance, Inc. - Memphis S.N. Anthony, Inc. - Ripley Tigrett & Pennington Inc. - Dyersburg Watauga Insurance, Inc. - Johnson City
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The Tennessee Insuror
Association Update
Jackson to Chair Agents Roundtable; Smith Named to Trusted Choice National Board
Former Insurors Board member Clay Jackson of BB&T Insurance in Nashville has been reappointed as Chair of the Big “I” Agents & Brokers Roundtable. The new term will begin September 1, 2014 and extend through August 31, 2015. Clay has served on this committee for several years, providing input to the national Association on a number of issues. Insurors Past President and current State National Director Brad Smith of SmithBerclair Insurance in Memphis has been appointed to another term on the Trusted Choice, Inc. Board of Directors. The new term will begin September 1, 2014 and extend through August 31, 2015. Brad has been an unrelenting advocate of the national branding program and a key member of the national committee.
Chattanooga Chamber Announces Brock & White as Part of 2014-15 Leadership Class The Chattanooga Area Chamber of Commerce announced this morning the members of their 2014-2015 Leadership Chattanooga class. Leadership Chattanooga is a 10-month program that brings together area professionals to cultivate leadership and community growth. The class is sponsored by the Chattanooga Chamber Foundation. Participants are provided with comprehensive leadership training through interaction with community leaders; experiential learning opportunities, such as a police ride along and a trip to Nashville to meet state leaders; and service projects at local schools. Included in this year’s class are members Ramsey Brock, Director of Marketing at Brock Insurance in Chattanooga and Janda White, a Producer at Athens Insurance in Athens.
Batson to Head Nashville Marsh Office Former Insurors of Nashville local board president Todd Batson, CIC, CRM has left Arthur J. Gallagher Risk Management The Tennessee Insuror
Services to head the Nashville office of Marsh. Batson has been in the industry for over 18 years, working with The Hartford, Royal & SunAlliance, Gale Smith + Company and Gallagher. He began his career by interning at the Marsh Nashville office, where he will now return as a Senior Vice President.
Stewart Joins IIABA as Director of Federal Government Affairs
Party of Virginia.
Wyatt Stewart has joined the Big “I” Capitol Hill team as director of federal government affairs. Stewart previously served as advisor for policy and coalitions for House Majority Leader Eric Cantor (R-Va.). He worked for Leader Cantor in various capacities since January 2009. Prior to his work on Capitol Hill, Stewart worked for the Republican
“Wyatt brings a wealth of congressional and political experience to the Big ‘I’,” says Charles E. Symington, Jr., Big “I” senior vice president for external and government affairs. “The Big ‘I’ is pleased to welcome him to our federal government affairs team.” Stewart, a native of Washington, D.C., earned a Bachelor of Arts degree in political science from the University of Richmond where he was a four year letterman on the varsity baseball team. He joins a bipartisan lobbying team primarily as a liaison to Republican congressional offices.
Lockton Adds Dickson in Nashville Lockton has announced that James R. Dickson III, has joined its Nashville office as a vice president, client advisor, and business development executive in risk management and commercial insurance. Dickson comes to Lockton from Willis of Tennessee Inc., where he worked as a senior vice president. Previously, he served as president and board member at Direct General Insurance Co. in Nashville. Dickson specializes in risk management strategy and business development for large and middle market companies in the healthcare, manufacturing, financial services, and restaurant industries. He brings 26 years of experience in the financial services industry with a focus on the placement of directors and officers liability insurance and E&O coverage. u 35
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A.M. Best rating of “A” (Excellent) FSC “XI”
The Tennessee Insuror
Broker Spotlight
Bailey Special Risks
Three decades ago, on July 11, 1989 Bailey Special Risks, Inc. (BSR) got its start in Hendersonville. Since that time, the specialty insurance wholesaler has had a mission to provide its customers with world class service. In 2014, as they celebrate their 25th anniversary, that mission continues as they strive to provide knowledge and service to customers in Tennessee and across the country. BSR’s friendly, client-centered staff shares over 125 years’ of combined experience in the insurance industry. They bring those acquired skills to use in the placement of professional liability for all classes of business. Over the last quarter-century, BSR has refined their business to the focus they hold today. By specializing in professional and network security liability exposures, they are able to concentrate on the intricacies as well as major concerns of that niche. As a result, they provide their customers with the nextlevel of product knowledge that they need from a specialty wholesaler. As BSR moves on into their next 25 years, they want to thank everyone who has partnered with them and helped contribute to their success. Those partnerships with BSR as both retailers and carriers are vital to their success and make it possible for them to confidently endeavor to reach their goal of being your professional liability wholesaler of choice. BSR always strives to provide excellent service through friendly, timely and professional communication regarding your risks and concerns. They place all of their business with licensed and contracted retail agencies throughout the United States. In fact, they are currently licensed to place business and file surplus lines taxes in 48 states. Their coverage offerings include Errors & Omissions, Management Liability & Media Liability among others. Recent years have seen an increased focus on Privacy & Network Security Liability. In addition to helping their retail partners place coverage for their professional risks, they also offers educational opportunities. BSR President, Janet Smith, periodically hosts classes for groups and associations to explain exposures faced by those parties and how coverage can be obtained to transfer some of their risks. Additionally, BSR is a certified continuing education provider in Janet Smith, president of Tennessee and several other states. Bailey Special Risks Their retail partners frequently ask that they provide CE sessions within their office and BSR uses this opportunity to expand the understanding of professional The Tennessee Insuror
"32 liability within our insurance community. To date, BSR offers CE classes in Employment Practices, Cyber/ Network Security Liability, and Errors & Omissions. Their repertoire of classes continues to expand as they add new classes each year to meet the growing need for information of liability insurance.
Working With Bailey Special Risks BSR wants to be your Broker of Choice. They hope to achieve this by offering: • • • • •
World Class Service Superior Product Knowledge Strong Relationships with our Retailers and Companies A Courteous, Friendly, Fun-Loving atmosphere A User-Friendly Business Environment
Contact them today by calling 1.800.768.7475 or visiting them online at www.bsrins.com. u
"32 25
CELEBRATING YEARS 1989 - 2014
Bailey Special Risks, Inc. Your professional liability partners for 25 years. We specialize so you don’t have to. 1.800.768.7475 www.bsrins.com questions@bsrins.com Professional Liability-Management Liability Data Privacy & Security Liability 37
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Company Spotlight
The Hanover Insurance Group The Hanover Insurance Group has unveiled its Platinum Experience, a robust package of bundled auto and home insurance products and services for select Tennessee independent insurance agents to offer their account-oriented customers. In an increasingly competitive and dynamic personal insurance environment, Platinum addresses a growing market opportunity for independent agents to offer enhanced auto and home insurance services and coverage to their customers. With one policy, one coverage effective date, and one bill, agents can leverage their expertise to guide customers through a comprehensive portfolio of features and coverage levels that provide greater value. The Hanover has selected approximately 50 independent agents in Tennessee who will be offering The Platinum Experience in major markets throughout the state. “We are very selective in the appointment of independent agents. Our agents in Tennessee and their staffs provide outstanding advice, counsel and value to their customers,” said Mark R. Desrochers, president Personal Lines at The Hanover. A local team based in Nashville supports agent partners in Tennessee. A 2013 Accenture study called “Playing to Win” indicated that most insurance products have some level of complexity that requires industry expertise. The study concluded that the insurer of the future will need to package and deliver coverage in a way that customers find easy to understand and use, without downplaying the complex nature of the solution. More than 40% of insurance customers in the Accenture study said they are willing to pay more for personalized advice or assistance when purchasing insurance, a number that has increased by 6 percentage points since 2010. The Tennessee Insuror
The Hanover spent a good deal of time highlighting its strong partnership with its agency force as well as the enormous opportunity it perceives within the independent agency channel to grow its personal lines account-based customer base. The Hanover designed its comprehensive product with the independent agent in mind, targeting those individuals who want value and quality rather than just shopping around for the lowest price. This is a highly desirable customer segment which Hanover believes will provide a longer term return than the price-sensitive monoline customer. Even within the comparative rater environment, Hanover is seeing strong current and potential gains in selling its packaged offering through advisors.
A Whole New Experience The Hanover began offering Platinum in early 2013 and it has quickly become the most popular Hanover personal lines product. In addition to single bill and common effective dates, Platinum customers receive a waiver of deductible for a multi-property loss; enhanced car rental coverage; OEM mechanical parts replacement; as well as personal property replacement at full cost. Online services address the growing customer interest in a total account view online to pay bills, print ID cards and file a claim. Complimentary access to auto and home maintenance and inventory websites is also provided, with customization based on the user’s property and cars. All of these tools are easily available through MyHanoverPolicy.com.
Get Started With Platinum If you are interested in offering The Hanover’s Platinum Experience to your clients, contact the Tennessee office for more information. u
Tennessee Contacts Kendra Schenkel Regional Distribution Leader kschenkel@hanover.com 615.517.1681 Ethan McEntire Assistant Regional VP emcentire@hanover.com 615.957.7058 About The Hanover The Hanover Insurance Group, Inc., based in Worcester, Massachusets, is one of the top 25 property and casualty insurers in the United States and is publicly traded on the NYSE (THG). The Hanover Insurance Group is an “A” rated international company with a reputation forged through solid underwriting results and superior service. The Hanover delivers incomparable value, innovative insurance products, and world class capabilities. For more than 160 years, The Hanover has provided a wide range of property and casualty products and services to businesses, individuals, and families. The Hanover distributes its products through a select group of agents and brokers. Through its international member company, Chaucer, The Hanover also underwrites business at Lloyd’s of London in several major insurance and reinsurance classes including political risk, marine, aviation and energy. For more information, please visit www.hanover.com
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Dave Porch Porch-Stribling-Webb Waverly, TN
Tom Strate Strate Insurance Group Morristown, TN
Busch Thoma E.B. Thoma & Son Agency Tullahoma, TN
Jack Spann Spann Insurance Nashville, TN
Richard Hollis Hollis & Burns Memphis, TN
Roger Smith Thompson & Smith Insurance Jackson, TN
Presidents of Insurors of Tennessee
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Or visit www.keystoneinsgrp.com The Tennessee Insuror
©2013 Keystone Insurers Group®. All Rights Reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.
Looking Back
a past president spotlight presented by
Jack Thoma • E. B. Thoma & Son Agency • Insurors President in 1983 The late Jack Thoma of E.B. Thoma & Son
Eldon Bracton “Jack” Thoma, II, CPCU, former Insurors President and inductee into the MTSU Robert E. Musto Tennessee Insurance Hall of Fame, is our spotlight for this issue. Thoma, who passed away in 2004, was a partner in the E.B. Thoma & Son Insurance Agency in Tullahoma.
E.B. Thoma & Son Agency was founded by Eldon Bracton Thoma in 1910 and has been operated by the family ever since. In 1947, after attending Georgia Tech and returning home from service in World War II, Jack became a partner with his father in the family business. The younger Thoma then expanded the agency to include real estate and loans in the early 1960s. Busch H. Thoma, son of Jack and later another Insurors President, joined the Agency in 1974 and became a partner in 1976. During his insurance career, Thoma was very active in Insurors, as well as the Independent Insurance Agents of America and the Southern Agents Conference. In 1987, he was recognized as state Insuror of the Year by the Association. In presenting the award, Don Jordan stated that Jack, “symbolizes the real backbone and strength of our organization.” He was also active in his community, and was elected president of the Tullahoma Rotary Club in 1962. He also served as chairman, president or director of various organizations including the Tullahoma School Board, The Tullahoma Educational Foundation for Excellence, The Tullahoma Industrial Board, The Tullahoma Chapter of the Red Cross, the Middle Tennessee Council of the Girl Scouts of America, the Tullahoma Chapter of the American Red Cross, the Tullahoma Chamber of Commerce, John Holland Scholarship Foundation, the Board of Directors of Arnold’s Furniture and the Board of Directors of First National Bank of Tullahoma. Jack was one of the early supporters of the computer rating system that the Association developed with Joe Rackley. He purchased a Model I Radio Shack computer in the early 1980s and continued to update his agency on the technology. He was also a strong supporter of InsurPACTN and the national PAC, and could always be found on their lists of contributors. In 1983, Thoma was serving as a lieutenant colonel in the U.S. Army Reserves and continued to serve in the Reserves until The Tennessee Insuror
1999. He completed more than 30 years of military service and founded the 30th Quartermaster Company in Tullahoma. Thoma continued to work in the agency until he passed away at age 82. He was inducted posthumously into the Tennessee Insurance Hall of Fame in 2013, and his son Busch was on hand to accept the honor. We talked to Busch about his father, and the impact he had on Busch and the industry.
The Insuror: It’s been over thirty years since your father was President of Insurors, do you have any memories of his time in office that stand out? Busch: I remember when Dad was on the Board that they were considering Chuck to take over Jim Alexander’s job. John Pitts, my father and the rest of the group had a lot of confidence in Chuck but were concerned how he perform as a lobbyist. Obviously that worked out for the best. I also remember that, though a mutual friend, he got an audience with Gov. Alexander and was able to have an important discussion on banks entering into the insurance business.
The Insuror: What do you think your father would be most surprised by about the way the industry has changed? Busch: My Dad stayed pretty current on insurance matters. I think he would be intrigued with the automation and communication means we have today. I think he would be a little disappointed, but probably not surprised, at the lack of true relationships between companies and agencies.
The Insuror: How important is it to you to carry on the legacy of your father and grandfather as an independent agent? Busch: From day one, he told me that I would hear the experts predicting the demise of the independent agencies. I am not so sure it is as important to carry on the legacy as it is to adapt to what is necessary to perpetuate the independent agency system. I celebrated my 40th year on July 15th with one of those bottles of wines you can only drink on a special occasion. I have been blessed to be in a business that pays the bills, lets you work with some special people, have friendships across this State and most importantly to have worked with my partner and father who made this all possible. If one of my sons enters the agency business, they will continue the legacy, but most of all would they will have an opportunity to perpetuate the independent agency system. u 41
We get you. We understand what agents want and we’re committed to giving you the tools you need to grow your agency. Look into a partnership with us by calling today. Amy Mayes 352-384-4186 mayesa8@nationwide.com
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Company Briefs
Cecil Booher Appointed to New National Role at Safeco Safeco Insurance President Matt Nickerson announced recently that there would be a new internal organizational structure for Safeco that included seven core functions. As part of the change, Safeco Insurance Vice President and Southeast Region General Manager Cecil Booher will assume a new role as manager, National Agency and Strategic Partnerships. There will be no change to the region structure, and Booher will continue to work closely with the Southeast team while a new Southeast Region General Manager is appointed.
Central Names Rauch VP of Marketing The Central Insurance Companies has announced the promotion of Timothy L. Rauch, CPCU, AIM, ARM to Vice President of Marketing for both Central Mutual and All America Insurance Companies. Rauch will replace current Senior Vice President of Marketing Edd Buhl when he retires in December of this year. Rauch previously held the position of Regional Vice President for Centralâ&#x20AC;&#x2122;s Southwest Regional Office in Dallas, Texas. As Vice President of Marketing, Rauch will be responsible for developing and implementing marketing strategies as well as furthering the strength of agency partnerships and strategic alliances. A graduate of the University of Colorado, Rauch has been employed with Central since 2009. He has over 25 yearsâ&#x20AC;&#x2122; experience in the industry, managing commercial underwriting, marketing, and regional operations for the Hartford Insurance Company, and on the independent agency side as a Regional Sales Manager for USI and as a producing Vice President for Insurance Alliance.
State Auto Announces Partnership With MTSU The State Auto Insurance Companies recently became sponsors of the Middle Tennessee State University (MTSU) Chair of Insurance Program. The program empowers students to learn about the industry and interact with insurance professionals, helping them prepare for a career in the insurance industry. Students in the program are also eligible for scholarships. State Auto Regional President George Furlong is an active The Tennessee Insuror
43
supporter of MTSU’s Martin Chair of Insurance and currently serves on the MTSU Insurance Liaison Committee. He became aware of the need for additional scholarship funding for MTSU insurance students through this affiliation.
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“Our sponsorship of the Insurance Program shows our deep commitment to the Middle Tennessee community and allows us to address the mission critical goal of preparing next-generation talent to meet future insurance industry personnel needs,” Furlong said.
Johnson & Johnson Names Parmley as VP Johnson & Johnson, Inc. has announced that Cathy Parmley has been named Vice President of Operations. Cathy has over 20 years of industry experience with Johnson & Johnson, most recently serving as Vice President of Personal Lines, overseeing both production and operations of the company’s habitation, high valued homes, manufactured housing and marine/recreational vehicles business lines. She brings not only her vast Johnson & Johnson experience to this new role, but also formal training in operational processes and efficiency. As Vice President of Operations, Cathy will supervise the company’s internal policy workflows and allocation of resources for both commercial and personal lines of business. Cathy’s expertise and vision will further enhance the quality service you have come to expect from Johnson & Johnson.
Travelers Exec. Presented With Dach Award The InVEST program awarded Tom Davis, CPCU, Travelers underwriting officer, with the Dach Award which honors an insurance industry volunteer who has made tremendous contributions in fostering the growth and development of InVEST. The InVEST program is a key driver to attract new talent to the insurance industry. Davis joined Travelers in 2004, and is currently located in the company’s Alpharetta, Ga., office. In addition to his roles at Travelers, he has also assisted in numerous capacities with InVEST leadership at the national and state level. Additionally, he has participated in InVEST’s recruitment and retention efforts at several Atlanta-area schools including Booker T. Washington High School, B.E.S.T. Academy, Frank McClarin High School, North Atlanta High School and Georgia State University. Davis has also served as a board member and held multiple leadership roles, including chairman and treasurer, 44
The Atlas General Difference Atlas is a National Full Service Program Manager offering a wide range of insurance solutions including workers' compensation, contractors' general liability and BOP, with many other coverages available. Now writing trucking-local (no new ventures, $5,000 minimum), new venture contractors, healthcare, assisted living and allowing experience mod's up to 2.00. Atlas has expertise in developing and underwriting specialty programs with a variety of insurance carrier partners. We are committed to providing exceptional services and unique options for our clients. For marketing information, please contact: Lowrey Young, Marketing Rep Garland Byrd, VP Marketing 901-308-3387 865-588-1986 lowrey@atlas.us.com garland@atlas.us.com To learn more about our products, call (877) 66-ATLAS or visit www.atlas.us.com
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with the Georgia Insurance Education Association.
J.M. Wilson Promotes Four to Directors
In Barry’s new role, she lead the professional development of all Property and Casualty underwriters throughout the organization and serves as a direct liaison to P&C Companies for the purposes of maintaining excellence in underwriting.
J.M. Wilson recently announced the promotions of four Associates; Sandi Fritz, Vice President – Director of Transportation Underwriting; Roxanne Barry, Director of Property & Casualty Underwriting; Cathy Baldwin, Director of Marketing & Communication and Erin Dey, Director of Sales and Agency Relations. These Directors work closely together to maintain focus on J.M. Wilson’s corporate initiatives with a concentrated effort on sales, underwriting expertise, marketing, and customer service. Their goal is to remain consistent in providing exceptional customer experiences and to continue the professional development of their associates though ongoing training and the use of sales and marketing tools. In Baldwin’s new role, she will lead the marketing team and will work closely with all department managers to assist them in reaching their marketing goals.
In Dey’s new role, she will develop a Sales Training program for underwriters, to enhance their skills and understanding of the importance of sales to the underwriting process. Furthermore, Erin will create a Sales Team who will be responsible for being a resource for independent agents.
Southern Insurance Und. Celebrates 50 Years In the 1920’s, Kurt Hitke started insuring Taxicabs in the City of Chicago and shortly thereafter started Kurt Hitke and Company, as well as Midland National Insurance Company. Eventually many offices sprang up around the country and it was after World War II that W.C. Duesenberg Sr. started working for Kurt Hitke and Company, first in Chicago, then Springfield, Illinois. In 1950, W.C. Duesenberg Sr. was transferred to Atlanta, Georgia to open a new office. Mr. Duesenberg worked for 14 years in Atlanta, before the opportunity arose to buy the Atlanta office. On July 1, 1964 Duesenberg purchased the office and changed the name to Southern Insurance Underwriters, Inc. In 1976, with a staff of ten people, Duesenberg, Sr. recruited
For Comprehensive Mobile Homeowners Insurance, put your trust in a company that has been insuring homes for over 50 years. National Security Can Provide You With: • • • • • • • •
$100,000 Maximum Policy Limits AAIS Special Form 3 Policy 15% New & Renewal Commission Partnership Profit Sharing Fast Online Policy Issuance Direct Contract with National Security Replacement Cost Option Discounts for New Home and 50+ Age of Insured • Easy Payment Options National Security has provided competitive, affordable insurance to policyholders for over 50 years, but we also provide a lot for our agents, with competitive commissions, excellent customer service and experienced company adjusters. As an admitted Southeastern based regional company, National Security prides itself on fast, efficient service from a friendly small town company, and online access for all agents, providing fast quotes, online policy issuance, online dec page printing, and real-time policy information.
We are now accepting new appointments. Find out more by calling Sharon at 1-800-239-2358 x213 or visit nationalsecuritygroup.com.
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Elba, Alabama
The Tennessee Insuror
his son, Wes Duesenberg, Jr. to join the firm. Together over the next 27 years, both W.C. Duesenberg, Sr. and Wes Duesenberg, Jr. grew SIU into a group of companies employing 200 people and writing various personal and commercial lines. In 2002, Tripp Duesenberg, III joined the family business and he plans to continue the commitment to service and innovation his grandfather started 50 years ago in his role as president. View a video history of SIU at https://www.youtube.com/ watch?v=xASHEDYpWL4#t=86
Ryan Specialty Announces Landmark Healthcare Partnership with Lloyd’s Ryan Specialty Group, LLC (RSG) announces the formation of RSGUM Healthcare, a new healthcare and life science underwriting facility, in partnership with some of the strongest and most experienced healthcare and life science Underwriters at Lloyd’s of London. Lloyd’s support for this comes from Amlin, Chaucer, Catlin, Hiscox, Atrium, Ren Re and Dale, resulting in the largest, single healthcare coverholder arrangement in Lloyd’s. The facility was developed in partnership with RKH Insurance Brokers in London. The landmark underwriting facility brings together the wellrespected RSGUM businesses of Sapphire Blue and LifeScienceRisk under a single underwriting facility. It will target a broad array of healthcare and life science business. Targeted
healthcare classes include long-term care, allied healthcare, specialty and rehabilitation hospitals, and standalone extended reported period products.
ACUITY Growth Exceeds 1,000 Employees ACUITY announced that as a result of strong business growth, its staff has expanded to surpass the 1,000-employee mark for the first time in the company’s nearly 90-year history. In the past 12 months alone, ACUITY has hired over 100 new employees. ACUITY has grown to become the 65th-largest property-casualty insurance company in the nation.
Motorists Insurance Group Joins ACT The Motorists Insurance Group is the newest company partner of the IIABA’s Agents Council for Technology (ACT). “ACT is pleased to welcome The Motorists Insurance Group and applauds its commitment to advancing technology for independent insurance agents and brokers to better serve their customers,” says Ron Berg, ACT executive director. Motorists, headquartered in Columbus, Ohio, sells its products only through independent agents. Its dedication to the independent agency channel is reflected in its partnership with the Big “I,” and that commitment has been further strengthened with Motorists’ partnership with ACT. u
RELATIONSHIPS IT’S WHY WE STAND OUT FROM THE CROWD “I go the extra mile to make myself as available as possible to our customers every day, by phone, email or in person. I love helping people, whether it’s getting that quote out in the 11th hour or placing that ‘impossible risk’. ”
Roxanne Barry, CISR, CIC Property & Casualty Manager
800.666.5692
jmwilson.com
Managing General Agency Since 1920 Property/Casualty • Professional Liability • Commercial Transportation • Surety • Personal Lines • Premium Finance
The Tennessee Insuror
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Does No App Present Agent Trap? Carrier Underwriting Systems - Without Apps, Do Misrepresentations of Customer Fall on Agents?
Another E&O claim that is becoming more frequent is where an underwriting question is entered into the carrier system as a placeholder because it was not responded to by the customer. Agency staff has every intention of going back to the customer and gathering the appropriate information but wants to proceed with getting an indication to the customer as quickly as possible. Unfortunately, no reminder is set and the indication is bound and policy issued with inaccurate information that was input by agency staff and not verified by the customer. This leaves the agency wide-open to future E&O claims.
So why the trend in CSRs being more frequently involved in application errors? With the integration of carrier underwriting systems into agency workflows, the more intensive data entry requirements likely transitioned more of the application process from the producer to the CSR. Application Errors
% of Total Claims
The E&O exposure of not having signed customer verification of the information used to procure coverage is that the misrepresentations of the customer can become that of the agent should a carrier deny coverage. E&O attorneys agree that the actual insured signed application is a critical piece of evidence in defending the agency. So even if carrier underwriting systems allow the agency to deliver quotes without getting a formal application, it is a good idea to get customer signatures verifying the information used to create the proposal. In addition, you should also review your agency/carrier agreement as there may be provisions requiring the agency to maintain signed applications. The Big “I” recently introduced a program to offer exclusive, discounted pricing to members for an e-signature solution called DocuSign. Using DocuSign can enhance the process of getting signed applications or verifying information used for proposal. Visit www.docusign. com/iiaba to learn more.
There is a clear trend of CSRs more frequently being the target of application-related errors. The graph titled “Application Errors: CSRs vs. Producers” clearly shows a divergence of claims with application related claims involving CSRs nearly doubling from 2009 to 2013. Conversely, producers are less frequently involved in application related claims.
16% 14% 12% 10% 8% 6% 4% 2% 0%
14.86%
14.09%
13.01%
8.41%
9.84%
10.04%
Errors
2008
2009
2010
2011
2012
2013
Application Errors: CSRs vs. Producers
% of Total Claims
The way agencies interact with their carriers for providing underwriting information, getting quotes, binding coverage and issuing policies has changed tremendously in the past 5 to 10 years. Use of carrier underwriter systems has largely influenced the way business is transacted. While they have increased agent response time to the customer, there are potential E&O issues that the agency needs to beware of including the potential for there to be no formal application signed by the customer and for agency personnel to use “placeholder” information to generate customer indications.
80% 70% 60% 50% 40% 30% 20% 10% 0%
CSRs Producers 2008
2009
2010
2011
2012
2013
E&O Claims Data Insights Over the past five years, claims data reveals that application errors have been on the rise. From 2008 to 2013 application related claims have increased by about 60%. Claims being made relating to applications include: failure to procure coverage, incorrect or incomplete information provided to the carrier, failure to add additional insureds or loss payees, and negligent misrepresentation. 48
Admiral Ackbar’s likeness is property of The Walt Disney Co. and The in no way does this representation constitute their approval
Tennessee Insuror
E&O Recommendations Review all carrier contracts to determine the agency’s responsibilities when it comes to completing and storing customer applications, along with customer signature requirements. Even when a formal application is not required by the carrier, the agency should consider implementing procedures to obtain signed applications from all customers. At a minimum establish a process for documenting the information provided by the customer that was used to procure coverage and get a customer signature. Be precise when entering information into carrier systems to avoid data entry errors. Agency staff should double check the accuracy of the entries. Discourage agency staff from inputting “placeholder responses” on behalf of the customer in an effort to more quickly deliver indications. If they don’t know the answer, contact the customer at the time of entry, but don’t proceed with the indication. At a minimum if agency staff continues the practice of using “placeholder responses”, make sure diaries are being set in the agency management system to follow-up with customers for the correct information and changes are made prior to quotes being bound and policies being issued. This article was included in the Claims Advisor presented by Swiss Re and is not statement of legal advice. u
NAI SPECIALIZES IN, BUT IS NOT LIMITED TO: • Garage • Transportation • General Liability • Premium Finance • Property • Liquor Liability
Our primary goal has been to provide the best service to the specialty lines insurance marketplace. Understanding the needs and providing rapid response to the independent agent has been and remains our number one priority. For quick quotes call or visit us on the web 800-824-1740 or www.nai1982.com
Acquisition Strategy
#4
LIGHT MANUFACTURERS
“ Light manufacturers
like our heavy-duty insurance program.” Paula Hutchinson, Kansas City Branch Senior Marketing Representative
With a range of insurance coverages including errors or omissions, extensive loss control resources, expert claims knowledge and local service from an independent agent like you, EMC offers an insurance program designed specifically for light manufacturers. It’s just one of the many reasons why you and your commercial clients Count on EMC ®.
Birmingham Branch: 800.239.2005
|
Home Office: Des Moines, IA
www.emcins.com © Copyright Employers Mutual Casualty Company 2014. All rights reserved.
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49
We push ourselves for you. Because you push yourself for them. For more about how Grange can help you help your customers contact: Donya Wilson at 800-422-0550 ext. 3137 or wilsond@grangeinsurance.com.
grangeinsurance.com 50
The Tennessee Insuror
Meetings
Fall is Almost Here, And So Are These Events Insurors of Knoxville Golf Fun Day on 9/8 The Insurors of Knoxville local board has set the date for their 24th annual golf tournament & Fun Day to be Monday, September 8th at their new venue of Gettysvue Polo, Golf & Country Club. The event will begin with an 11 am EST lunch and driving range time, followed by a shotgun start at 12:30 pm EST. The cocktail hour will begin at 5 pm with a casual dinner to follow at 6 pm. For more information, contact Susan Schleicher at susan.schleicher@travelers.com or David Humphreys at dhumphreys@shaferinsurance.com. You may also download a registration form at www.insurors.org
Big “I” Fall Leadership Conference 9/10-14 The Big “I” Fall Leadership Conference, home to the Young Agents Leadership Institute, Fall Board Meeting, Education Convocation and numerous association board and committee meetings, will take place in Grand Rapids, Michigan this year. Voted the No. 1 “Cool City” by Lonely Planet, Grand Rapids will welcome the Big “I” leadership, bright young agents, state association staff and company partners on September 10-14. Highlights of the event include the installation of David Walker, president of Hartland Insurance Agency in Hartland, Mich. as the new chairman of the Big “I,” as well as the acclaimed Presidents’ Panel, where top carrier executives share their perspective on current trends and the future of the industry.
YOUR FIT FOR WORKERS’ COMP AND MORE! Preferred Comp of Tennessee is endorsed by the Insurors of Tennessee (IOT) to provide member agencies competitive workers’ compensation options. Meadowbrook Insurance Group, Inc. Low to Moderate Hazard Workers’ Compensation
Z Z Z Z Z Z Z Z Z Z
Artisan Contractors Auto Repair & Service Goods & Services Hospitality Light Contracting Light Manufacturing Office/Clerical Physicians Restaurants Wholesale/Retail
Visit http://www.independentagent.com/events for more information or to register online.
Insurors 121st Annual Convention 10/11-14 The Insurors of Tennessee 121st Annual Convention will feature exhibits, education, guest speakers, entertainment and events geared to enhancing the experience and success of Tennessee’s Independent Insurance Agent & Broker community. This year’s event will take place at the magnificent new Omni Hotel in downtown Nashville on October 11th-14th, 2014. We will also host our opening night celebration at the new Event Hall in the Country Music Hall of Fame. Get more information, see the schedule, get hotel registration information or register online now at www.insurors.org/ convention/. u The Tennessee Insuror
For more information or to get started, please contact: HeidiZdanis Langella at (800) 755-8090Ext. x4363 Laurie at (800) 755-8090 4362 or email a submission to: preferred@meadowbrook.com
www.preferredcomp.com
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NEW LOOK! Same dedication to our TENNESSEE agents!
Our mission is to provide you with excellent SERVICE from EXPERIENCED staff you can TRUST in your time of need. Bruce Hunzicker 615.417.6377 â&#x20AC;˘ bhunzicker@ciusa.com
Visit us on the web @ WWW.CIUSA.COM
Reduce the device shape to the required size, then make a new clipping mask
ycling means different things to different people. That is why, Markel
icycle Insurance offers bicycle coverage customized for each individual
ycle, and doesnâ&#x20AC;&#x2122;t provide one-size-ďŹ ts-all coverage.
We know bicycles.
olicies are as low as $100 per year.
overage Highlights:
Bicycle Physical Damage: primary coverage for the cost to repair or replace the cycle (including ďŹ xed accessories and components) up to the policy limit, due to sudden, accidental direct physical loss or damage to the cycle. This coverage would apply if insured bicycle were to be involved in a collision, ďŹ re, theft, vandalism, or in the hitting of another object.
Coverage also includes protection while the bicycle is in transit (land or air) to & from any location in the United States or Canada, and protection when competing in triathlon or bicycle races.
INCLUDED COVERAGES AT NO EXTRA COST: Â&#x2026; 3FOUBM 3FJNCVSTFNFOU Â&#x2026; $PNQFUJUJWF &WFOU 'FF 3FJNCVSTFNFOU Â&#x2026; 4QBSF 1BSUT Â&#x2026; $ZDMF "QQBSFM Bicycle Liability: primary coverage for the injuries or property damage
(caused by the insured bicycle) for which the insured is held legally responsible. Coverage is offered at combined single limits of: $25,000, $50,000 and $100,000.
Specialty insurance Medical Payments: covers medical expenses of the insured cyclist if they for bicycles are injured while on the insured bicycle, regardless of fault. The following
per person limits are available: $1,000, $2,500, $5,000, $7,500, $10,000.
Vehicle Contact Protection: covers injuries if, while on the insured bicycle, UIF JOTVSFE JT TUSVDL CZ BO VOJOTVSFE PS VOEFSJOTVSFE NPUPSJTU "WBJMBCMF JO combined single limits of $10,000 or $25,000.
Roadside Assistance: GPS POMZ QFS ZFBS QFS CJDZDMF IPVS &NFSHFODZ Service will be provided (up to 35 miles per tow, 5 tows per year). See how an average Homeownerâ&#x20AC;&#x2122;s Policy measures up to Markel
*OTVSFE BU 'VMM 7BMVF Crash Damage Theft Coverage 5IFGU "XBZ GSPN )PNF 7FIJDMF $POUBDU 1SPUFDUJPO
Average Homeownerâ&#x20AC;&#x2122;s Policy Not Likely No Limited Limited No
Markel Bicycle Policy Yes Yes Yes Yes Yes
1FSTPOBM -JBCJMJUZ 3FQMBDFNFOU #JLF 3FOUBM &WFOU 'FF 3FJNCVSTFNFOU
Yes No No
Yes Yes Yes
Policy Coverage
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Member Tips
Cycling means different things to different people. That is why, Markel Bicycle Insurance offers bicycle coverage customized for each individual cycle, and doesnâ&#x20AC;&#x2122;t provide one-size-ďŹ ts-all coverage. Policies are as low as $100 per year.
Mobile Apps for Agents
Coverage Highlights:
Â&#x2026; Bicycle Physical Damage: primary coverage for the cost to repair or replace the cycle (including ďŹ xed accessories and components) up to the By Daniel Smith, Director of Communications policy limit, due to sudden, accidental direct physical loss or damage to the YouThis canâ&#x20AC;&#x2122;t alwayswould be in the office, so here are were a fewtomore ways toin a cycle. coverage apply if insured bicycle be involved stay connected the infoor you need through mobile devices. collision, ďŹ re, theft, to vandalism, in the hitting of another object. Coverage also includes while access the bicycle is in transit (land or air) ACORDprotection 1 lets you forms, answer form to & from any location in the United States or Canada, and protection questions and save partially completed forms in when a competing in triathlon or bicycle races. mobile-friendly platform. INCLUDED COVERAGES AT NO EXTRA COST: Adobe Reader gives you access to documents in Â&#x2026; 3FOUBM 3FJNCVSTFNFOU PDF format on the go. Â&#x2026; $PNQFUJUJWF &WFOU 'FF 3FJNCVSTFNFOU Â&#x2026; 4QBSF 1BSUT Â&#x2026; $ZDMF "QQBSFM DocuSign allows you to sign documents, send Â&#x2026; Bicycle Liability: primary coverage the injuries or property damage documents out forfor signature, gather signatures in(caused by the insured fordocument which the insured held legally person,bicycle) monitor status isand much more. responsible. Coverage is offered at combined single limits of: $25,000, DropBox and Box are two great apps $50,000 and $100,000.
for file sharing and accessing large files
Â&#x2026; Medical Payments: covers medical expenses from the cloud. of the insured cyclist if they are injured while on the insured bicycle, regardless of fault. The following per person limitsIA are available: $1,000, $2,500, $5,000,the $7,500, Magazine allows you to browse latest$10,000. issue
of the publication on your iPad in a reader-friendly
Â&#x2026; Vehicle Contact Protection: covers injuries if, while on the insured bicycle, mobile format. UIF JOTVSFE JT TUSVDL CZ BO VOJOTVSFE PS VOEFSJOTVSFE NPUPSJTU "WBJMBCMF JO combined singleINSBANK limits of $10,000 or $25,000. lets you access your account balances,
transfer funds, pay bills, and more. Â&#x2026; Roadside Assistance: GPS POMZ QFS ZFBS QFS CJDZDMF IPVS &NFSHFODZ Service will be provided (up to 35 miles per tow, 5 tows per year). See how an Insurance average Homeownerâ&#x20AC;&#x2122;s Policy measures Markel Journal gives you access up to to insurance
news and content onAverage the go.
Markel Homeownerâ&#x20AC;&#x2122;s Policy Bicycle Policy *OTVSFE BU 'VMM 7BMVF Not Likely Yes LinkedIn Connected gives you the latest on Crash Damage No Yes your connections, recommended contacts, information Theft Coverage Limited Yes for meetings and more. 5IFGU "XBZ GSPN )PNF Limited Yes 7FIJDMF $POUBDU 1SPUFDUJPO No lets you access, view Yes and Microsoft Office Mobile Policy Coverage
1FSTPOBM -JBCJMJUZ Yes edit your Word, Excel Yes and PowerPoint documents 3FQMBDFNFOU #JLF 3FOUBM No Yes with support for charts, graphs, etc. &WFOU 'FF 3FJNCVSTFNFOU No Yes
Vertafore, $ZDMJOH "QQBSFM Not QQ, LikelyApplied & Partner Yes XE all haveNot mobile agency .FEJDBM 1BZNFOUT Likelyapps for their Yes management systems. The 3BDJOH $PWFSBHF No Yesapps have varying levels of content and 4QBSF 1BSUT *OTVSFE Not Likely Yes usability, but will allow you to access Covered in Transit Not Likely Yes your contacts and customer files from 8PSMEXJEF 1IZTJDBM %BNBHFalmost anywhere. Not Likely Yes Date of the event** Date of purchase thru event date 3PBETJEF "TTJTUBODF Not Likely Yes policy limit, due to sudden, accidental direct physical loss or damage to the cycle. This coverage would apply if insured bicycle were to be involved in a * Homeownerâ&#x20AC;&#x2122;s coverage is typically limited Actual Cash Value (ACV) of the bike, not replacement value. vandalism, or in the hitting of another object. collision, ďŹ re, theft,
Coverage also includes protection while the bicycle is in transit (land or air) to & from any location in the United States or Canada, and protection when competing in triathlon or bicycle races.
No app for that? Chances are there may be a mobile website for what you need, like insurors.org and ipfs.com. u
Directory of Advertisers Advertiser
ACUITY Allied Insurance/Harleysville Amerisafe AmTrust North America Applied Underwriters Arlington/Roe & Co. Atlas General Insurance Services Auto-Owners Insurance Bailey Special Risks, Inc. Berkley Southeast Insurance Group Brentwood Services Administrators Builders Mutual Burns & Wilcox Central insurance CNA Insurance Consumers Insurance DocuSign Donegal Insurance Group EMC Insurance FCCI Insurance Group Grange Insurance Companies Guard Insurance Group Heartland Ovation Payroll INSBANK J.M. Wilson Johnson & Johnson Keystone Insurers Group MetLife Auto & Home Millennium Brokerage Group National Security Group North Alabama Insurance Penn National Insurance Preferred Comp/Meadowbrook Preferred Property Programs Risk Innovations Securerisk South & Western Southern Cross Underwriters Summit Holdings Tennessee Underwriters, Inc.
Phone
(800) 242 - 7666 (352) 384 - 4186 (866) 719 - 0267 (877) 528 - 7878 (877) 234 - 4450 (800) 878 - 9891 (877) 662 - 8527 (615) 373 - 5200 (800) 768 - 7475 (615) 932 - 5508 (800) 524 - 0604 (800) 809 - 4859 (800) 341 - 4844 (770) 740 - 8000 (800) 251 - 5852 (615) 896 - 6133 (866) 219 - 4318 (770) 232 - 2272 x1370 (800) 239 - 2005 (800) 226 - 3224 (800) 422 â&#x20AC;&#x201C; 0550 (800) 673 - 2465 x4567 (901) 598 - 4829 (866) 866 - 4268 (800) 595 - 0063 (931) 704 - 0810 (800) 416 - 5498 (615) 812 - 4811 (800) 434 - 1992 (800) 239 - 2358 x267 (800) 824 - 1740 (800) 395 - 0518 (800) 755 - 8090 (888) 549 - 2465 (800) 913 - 6696 (770) 723 - 8096 (800) 492 - 5351 (800) 682 - 5263 (800) 971 - 2667 (615) 791 - 1400
Website
www.acuity.com alliedinsurance.com harleysvillegroup.com www.amerisafe.com www.amtrustnorthamerica.com www.auw.com/us www.arlingtonroe.com www.atlas.us.com www.auto-owners.com www.bsrins.com www.berkleysig.com www.bwood.com www.buildersmutual.com www.burnsandwilcox.com www.central-insurance.com www.cna.com www.ciusa.com www.docusign.com/iiaba www.donegalgroup.com www.emcins.com www.fcci-group.com www.grangeinsurance.com www.guard.com/apply www.ovationpayroll.com www.insbanktn.com www.jmwilson.com www.jjins.com www.keystoneinsgrp.com www.metlife.com www.mbgnow.com www.nationalsecuritygroup.com www.nai1982.com www.pennnationalinsurance.com www.meadowbrook.com www.umbrellaprogram.com www.riskinnovations.com/tni www.securerisk.com www.southandwestern.com www.scui.com www.summitholdings.com www.tnund.com
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THE STAGE IS SET insurors.org/convention
Thank you, agents. Auto-Owners has always been dedicated to the independent agency system and proudly standing behind the agents who represent us. We would like to thank you for your continued loyalty, which has helped us achieve tremendous growth and accomplishments over the years.
2500 21st Avenue South Suite 200 Nashville, TN 37212
PRSRT STD U.S. Postage PAID Nashville, TN Permit No. 380
We look for the best independent agents and build relationships that last the duration. We are committed to the independent agency system as the only means to deliver our products. Because of that, we work hand-in-hand to help our agencies grow profitably.
Our agents set us apart. Business t Surety t Auto t Home
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