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THE TENNESSEE

INSUROR September/October '19 Volume 30 | Number 5

Welcome to Chattanooga And the Insurors 126th Annual Convention

10 12 46

The 2019 INSBY Awards Recap

Five Reasons Texting Clients is the Next Big Thing Even Monkeys Can't Explain...


Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com.

2©2019 Applied Underwriters, Inc. Rated A (Excellent) by AM Best. Insurance plans protected U.S. Patent No. 7,908,157.

The Tennessee Insuror


contents

THE TENNESSEE

INSUROR Vol. XXX, Number 5 September/October 2019

features

Phone (615) 385-1898 Toll Free: 1-800-264-1898 Email: info@insurors.org Editor: Ashley Gold, J.D. Publisher: Daniel D. Smith Jr., CAE

4 Welcome to Chattanooga INSURORS OFFICERS

President ........................................................................... Joe Hunt Immediate Past President ............................... Chris Allison, CIC IIABA National Director ......................................... Lou Moran III VP, Region III and President Elect ........................ Bob McIntire Vice President, Region I ................................... Norfleet Anthony Vice President, Region III .................................... Chip Fridrich Jr. Treasurer ..................................................................... Tim Roberts Secretary ................................................................. Chip Hoover Director, Region I .................................................. Tommy Allmon Director, Region I .................................. S. Keith Phelps, CIC, CRM Director, Region I ......................................... Richard Whitley, CIC Director, Region II ............................... Christy Jones, CISR, CAPI Director, Region II ............................................ John McCord, CIC Director, Region II ..................................................... Taylor Porch Director, Region III ............................................................ Tim Witt Director, Region III ................................................. Mark Slater Jr. Director, Region III ...................................... Brandon Clarke, CIC Young Agents Chair ........................................................ Cy Young

ADVERTISING

And the Insurors 126th Annual Convention

6

Convention Sponsors

8

Convention Speakers

10 The 2019 INSBY Awards Recap 12 Five Reasons Texting Clients is the Next Big Thing 14

Daniel Talks Agency Marketing: Selling to Your Target...

46

Even Monkeys Can't Explain Why Companies Insist...

departments

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

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The Tennessee Insuror is provided to all Insurors of Tennessee members and associate members as a member service.

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

From Your President

Engagement: A Great Measuring Tool

23

From Your IIABA National Director

25

From Your CEO

29

Education Calendar

31

Layman's Terms

37

Program Spotlight

39

Broker Spotlight

A Fond Farewell and A New Beginning

THREE: The Commoditization of Insurance

Advocacy Update: New Commissioner; New Committees; InsurPACTN Donors ePayPolicy

R-T Specialty

51 Meetings 53

Member Tips

Use RLI Declination Forms to Document and Sell

3


Welcome to Chattanooga And the Insurors 126th Annual Convention Our 126th Annual Convention marks our return to Chattanooga for the first time in 25 years. Take advantage of this beautiful city as you enjoy these activities:

Saturday, October 19 2:00 - 5:00 pm 5:00 - 8:00 pm

Local Tours of Chattanooga Attractions Football Viewing Party presented by INSBANK

At Your Leisure Westin Dorato Terrace

COLLEGE FOOTBALL VIEWING PARTY PRESENTED BY INSBANK

LOCAL TOURS OF THE CHATTANOOGA AREA SEE ROCK CITY, RUBY FALLS, COOLIDGE PARK, HUNTER ART MUSEUM, THE INCLINE, CHOO CHOO & MORE

Sunday, October 20 9:00 - 11:00 am Board of Directors Meeting (Board members only) Westin Valley Room 11:00 am - noon Past Presidents’ & Board Luncheon presented by Swiss Re Westin River Room 11:30 am - 12:30 pm Partners Program Luncheon: "What Producers Need from their Carriers & Brokers to Generate Sales" w/The Insurance Guys Westin Roy McDonald Junior Ballroom Noon - 6:00 pm Registration Open presented by Openly Westin Prefunction 2:00 - 6:00 pm Exhibit Hall and Trade Show Westin Portman Ballroom 2:00 - 3:00 pm Breakout Session: "Trends That will Impact the Future of Insurance" w/ George Robertson (approved for 1 ce) Westin Mountain Room 3:00 - 4:00 pm Young Agents breakout: "How to Brand Yourself Online and Build it into Long Term Success" w/The Insurance Guys Westin Roy McDonald Junior Ballroom BREAKOUT SESSION ON INDUSTRY TECHNOLOGY FEATURING GEORGE ROBERTSON (approved for 1 ce)

YOUNG AGENTS BREAKOUT SESSION FEATURING THE INSURANCE GUYS

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The Tennessee Insuror


Sunday, October 20 (continued) 4:00 - 6:00 pm 6:30 - 9:00 pm 8:30 - 10:00 pm

“Meet the Vendors” Exhibit Hall Reception Opening Night Celebration & Dine Around shuttles 6-9:30 Young Agents After Party presented by Berkley Southeast

Westin Portman Ballroom The Tennessee Aquarium Citron et Sel

OPENING NIGHT CELEBRATION & DINNER HOSTED AT THE TENNESSEE AQUARIUM AND FEATURING MICHAEL PARRISH DuDELL PRES. BY HIPPO INSURANCE

YOUNG AGENTS AFTER PARTY PRESENTED BY BERKLEY SOUTHEAST

Monday, October 21 8:00 - 10:00 am 8:00 - 10:00 am 8:00 - 10:00 am 10:00 - 11:30 am Noon - 5:30 pm

Registration Open presented by Openly Westin Prefunction Exhibit Hall and Trade Show Westin Portman Ballroom Exhibit Hall Breakfast presented by Titan Web Marketing Westin Portman Ballroom Agent General Session: "Swim Like a Shark: How to Build, Lead & Grow Future-Focused Organizations" w/Michael Parrish DuDell Westin Roy McDonald Junior Ballroom Annual Convention Golf Tourney presented by Travelers Signal Mountain Golf and Country Club AGENTS ONLY GENERAL SESSION FEATURING MICHAEL PARRISH DuDELL

ANNUAL CONVENTION GOLF TOURNAMENT PRESENTED BY TRAVELERS

Noon - 3:00 pm 12:30 - 4:00 pm 6:00 - 8:00 pm 8:00 - 10:00 pm

Yacht & Boat Seminar presented by Martin & Zerfoss + Chubb Clay Shooting Outing presented by Markel Company Night All-Attendee Reception presented by Arlington/Roe

Scottie’s on the River Dead Zero Shooting Park By invitation West Village/Westin

YACHT & BOAT SEMINAR PRESENTED BY MARTIN & ZERFOSS + CHUBB

CLAY SHOOTING OUTING PRESENTED BY MARKEL SPECIALTY

Tuesday, October 22 8:00 - 11:00 am 11:00 - 11:30 am 11:30 am - 12:30 pm

Association Day Breakfast and Insurors Annual Meeting* Westin Portman Ballroom Board of Directors photos Westin TBD Executive Committee Meeting (Exec. Comm. members only) Westin Terry Lee Presidential Boardroom

*Agents: As announced in the Bulletin on 9/22, this year's Association Day breakfast will also include a vote on bylaws changes so please attend.

Convention Mobile App This year we have expanded our mobile Annual Convention app. Just search for the Insurors 126th Annual Convention in your phone or device's app store. Once you add the event you can view mobile schedules, the exhibit hall layout, trade show game and more. After the event, keep your Insurors app as we will be using it for updates year-round!

Trade Show Game We have updated our Trade Show game for 2019. Agents who complete the game will be entered in a drawing for $1,000 to be awarded at our Tuesday Association Day Breakfast. To participate, download the mobile app and complete the "scavenger hunt." u The Tennessee Insuror

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Convention Sponsors GOLD



SILVER

BRONZE Berkshire Hathaway

Insurance Companies

tA den gents

J

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Serving I

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The Tennessee Insuror


You’re in the business of protecting others. So, who’s watching out for you? We are. At Arlington/Roe, we put the needs of our customers first. What does that look like? Well, it looks like experience you can trust, integrity you can count on, promises we stand behind and an independent and family-owned industry partner who understands your specific needs. Located in nine states and licensed in all 50, we’ve got your back. Get to know the people of Arlington/Roe. We’ve been doing the right thing since 1964.

Let us help you find the right solutions. Managing General Agents | Wholesale Insurance Brokers

800.878.9891 | ArlingtonRoe.com

Aviation | Bonds | Brokerage | Commercial Lines | Healthcare & Human Services | Farm Personal Lines | Professional Liability | Transportation | Workers’ Compensation The Tennessee Insuror

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Convention Speakers We are pleased to present the speakers for this year's event:

Bradley Flowers Flowers and Scott Howell are the duo behind The Insurance Guys podcast. They discuss all aspects of becoming a more successful insurance agent and give real life examples of their experiences in all aspects of hiring, sales and the day-to-day reality of running your own successful insurance agency. Flowers runs the day to day operations at Portal Insurance in Saraland, Alabama, and has been named the named the #1 Insurance Personality on Snapchat by the Wall Street Journal.

Scott Howell Howell has built his agency in Alabama into a 3 location, online and in-person service shop called iProtect Insurance and Financial. He and Flowers will lead a session for our Young Agents on, "How to Brand Yourself Online and Build it into Long Term Success," and discuss driving sales and growth from social and digital marketing.

Michael Parrish DuDell Parrish DuDell is an entrepreneur, keynote speaker, and the bestselling author of Shark Tank Jump Start Your Business and Shark Tank Secrets to Success – the official business books from ABC’s hit show Shark Tank. He will sign copies of his book and talk with registered attendees at our opening night celebration on Sunday, October 20 at the Tennessee Aquarium. His Monday session, "Swim Like a Shark: How to Build, Lead and Grow Future-Focused Organizations," will be for retail agents only.

In Tennessee, it’s AmTrust for Workers’ Comp… and much more. FSC “XV,” Stable Outlook

George Robertson Robertson has more than 25 years of experience in the insurance and technology industry, and brings an interesting perspective to growing an independent insurance agency and creating better efficiencies. Having been an agency owner for ten of those years, he knows the challenges agents face trying to increase profits and better use resources. He will lead a session for agents on, "Trends that will Impact the Future of Insurance." u 8

Get to Know AmTrust.

Visit www.amtrustfinancial.com/tnq1 or call 844.608.1613

AmTrust is AmTrust Financial Services, Inc., located at 59 Maiden Lane, New York, NY 10038. Coverages are provided by its property and casualty insurance company affiliates. Consult the applicable policy for specific terms, conditions, limits and exclusions to coverage.

The Tennessee Insuror


We know what it took to build this unique business.

And we know what it takes to protect it. Underwriters who know and understand what coverages are necessary for each unique business. Loss prevention professionals who use a hands-on approach to help develop programs tailored to each specialty business. Claim reps with the expertise and technology to process claims quickly and efficiently. As an Official Supplier of the Silver LiningÂŽ, you and West Bend will find a specialized insurance plan for your valued customers. To find out more, talk to your West Bend underwriter.

Celebrating 125 years of valued relationships with our agent partners. The Tennessee Insuror

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The 2019 INSBY Awards Recap INSBANK Holds Annual Entrepreneur Awards Reception

INSBANK recently held their 5th Annual Entrepreneur Bash & INSBY Awards on September 3 at The Entrepreneur Center in downtown Nashville. The awards honor local businesses and raise funds for the Nashville Entrepreneur Center, a non-profit organization whose mission is to connect entrepreneurs with critical resources to create, launch and grow businesses. Guests purchased tickets to the event and 100% of the proceeds were donated to the Entrepreneur Center. Guests had dinner and drinks while enjoying the music of band Sweetwater Road. INSBANK extends its appreciation to the sponsors who helped make the INSBY Awards a success: Novatech, who provided the 3-D printed trophies, Tennessee Brew Works that provided beer, Drunken Donuts that provided desserts as well as Saltmarsh, Cleaveland & Gund and Woodmont Financial Counsel that both made monetary donations. This year there were three INSBY award winners recognized for the innovative approaches to their respective industries – Icon Entertainment, Think Data Insights and Mid-South Logistics.

Icon Entertainment In true entrepreneurial spirit, Bill and Shannon Miller opened a curious museum near the heart of “Nashville honky tonk” and created a multi-million dollar entertainment business. Bill had a long and close friendship with Johnny Cash, and he knew people wanted an up close and personal experience with Cash’s legacy. ICON Entertainment grew from Bill and Shannon’s determined desire to honor the "Man in Black" in the town he helped make famous and knew he was much more than Country Music. The Johnny Cash Museum opened in early 2013 and is now the 4th largest tourist attraction in Nashville. Entrepreneur Magazine lists 5 qualities of successful entrepreneurs; Self-Discipline, Integrity, Persistence, Clear Sense of Direction and Decisiveness - Bill and Shannon check all the boxes. They have parlayed the Johnny Cash Museum into the most influential brand in Downtown Nashville by honoring past Icons Patsy Cline and Nudie Cohn, breathing life into Nashville iconic Skulls Rainbow Room on world famous Printers Alley and creating new iconic venues House of Cards and soon to open Sinatra’s in the historic Southern Turf Building.

Think Data Insights Think Data Insights (TDI), led by principal Ken Raetz, provides data platform and business intelligence solutions, essentially serving as a data consultant for its clients in helping them turn their data into an asset. TDI helps its clients build an 10

written by our partners at INSBANK

Enterprise Data Platform strategy in addition to applying analytics and data modeling to provide actionable reporting, insight and direction for the company. TDI works across many industries including manufacturing, retail, media, finance & healthcare. They’ve moved offices four times due to rapid growth, expanded internationally in both clientele and workforce, were named a Microsoft Gold Partner, grew revenues at a staggering 571% in their tenure with the Bank (an average of 78% per year) – and as announced just last month – sold to LBMC, a top 50 professional service solutions firm and the largest based in Tennessee. With the sale, TDI expands their footprint and resources while gaining access to complimentary service lines to better serve clients.

Mid-South Logistics Kevin Handley and his wife, Jeanne began their careers in the trucking industry then founded their own firm, MidSouth Logistics, a specialized trucking firm primarily serving the cardboard and paper industries. Their clients include International Paper, Wal-Mart, and Dupont, and since they began their banking relationship with INSBANK, Mid-South has increased revenues 65%. Notably, their company has a high employee retention rate, which is rare in the trucking industry and speaks volumes to the leadership of the company. Along the way, Kevin also embarked on getting his contractors’ license to develop an industrial real estate site. That worked out well, so he methodically built others over the years. Today, their holdings include roughly ½ million square feet of warehouse and distribution space in Humphreys County. The Handley’s are great people who support a variety of charities, in particular, a big supporter of Shoot for the Heart.

Committed to Help Local Business INSBANK is committed to helping businesses grow by being a trusted financial partner and staying true to our motto, that INSBANK is “Where Genuine Matters.” u The Tennessee Insuror


DREAMS not dollars. PEOPLE not line items.

FRIENDSHIPS not relationships.

THAT’S

WHAT WE’RE AIMING FOR.

Because we’re a different kind of local bank. One that’s been proudly helping Tennessee businesses –people we consider friends – for more than 16 years.

5614 Franklin Pike Circle, Brentwood, TN 37027 I 2106 Crestmoor Road, Nashville, TN 37215 615.515.2265 I 866.866.2265 I www.insbanktn.com I Open Mon. - Fri., from 8:30 AM – 4 PM. The Tennessee Insuror

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Five Reasons Texting Clients is the Next Big Thing written by Kenneth Burke, Text Request

Many agents already text with some of their clients, but have you considered all the ways texting can benefit your agency? Chattanooga-based Text Request has been helping businesses nationwide with these strategies as their director of marketing, Kenneth Burke, discusses in this article.

1. Lead Generation

As many as 94% of companies think their customer communications are good, while 96% of consumers disagree, according to a study released by Twilio.1

Chat functions enable potential clients to text you through your website with the click of a button. Messages can be forwarded to a phone number of your choosing and your replies can be set up to be sent to a prospect’s cell phone. Clients love this experience and it’s a great lay-up for sales.

Most agents aren’t giving their clients what they want on the communications front, which is making their sales, marketing, and efforts to increase customer satisfaction ineffective. It’s also frustrating to their clients. The solution: Texting. Phone call answer rates are as low as 5%, according to Text Request, and only 13% of insurance emails are opened, according to Constant Contact. Meanwhile, an overwhelming, 89% of people want to text your agency with their sales and service queries, according to Twilio’s 2016 Global Mobile Messaging Consumer Report.1 Text messaging is the most requested communication channel by both employees and consumers, according to a 2017 survey by Smarsh,2 which showed that 42% of financial services employees requested to use text messaging for business purposes, while text messaging was also the most requested channel for business use.

People are searching for your services online and they’d rather text their questions than call or email. Therefore, you should let prospects text your agency from your website.

2. Sales Prospects come to your agency for quotes all the time. But once you have the quote they requested, you struggle to reconnect with them. Sound familiar? Texting solves that. When you get a quote request, you can immediately followup via text saying that you received their request. Then, once you have their quote ready, you can text them to ask for a moment to talk through the details.

3. Scheduling You thrive on scheduling appointments, but find it difficult to continued on page 30

To get started on texting clients, your agency will need to invest in a professional texting tool. Here are a few functions a good tool should provide: •

A secure multi-user dashboard that provides access to different people in your office

Cloud access that enables you to text from any computer or smartphone

Auto responses, out-of-office replies, appointment scheduling, individual and group messaging options, and picture messaging

Ability to text office phone numbers

But how do you apply text messaging to your agency operations? Here are five easy ways to text professionally and make clients happier:

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The Tennessee Insuror


[ EXPERIENCE. ] The Summit Advantage.®

www.summitholdings.com Policies are underwritten by Bridgefield Casualty Insurance Company and Bridgefield Employers Insurance Company, authorized insurers in AL, AR, FL, GA, IN, KY, LA, MS, NC, SC, TN and TX;

The Tennessee Insuror BusinessFirst Insurance Company, authorized in FL, GA, IN, KY, NC, SC and TN. ©2019 Summit Consulting LLC, PO Box 988, Lakeland, FL 33802

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Daniel Talks Agency Marketing: Selling to Your Target Market Give Them the Right Reason and You'll Get a Response Why should agencies market themselves? How should they market themselves? In this series I am looking into agency marketing techniques and strategies and how you can implement them at your agency. So far in this series, we have discussed how to "Define Your Target Market" how to "Find Your Target Market" and most recently, "Reaching Your Target Market," focusing on Facebook and LinkedIn tools. Now that we have established who you're looking for and how to find and reach them, how do you convert those contacts into sales for your agency? There are many strategies you could utilize, but here are a few suggestions.

Mutual Contact/Friend Introductions The audience you have built online likely looks like some of your current contacts and insureds. Because of that, they are likely to be connected to someone you already know. Lean on your network to help promote you and your agency. Instead of passive referrals, ask for a specific referral to a contact you have identified as a strong prospect. But be thoughtful in asking for a referral, because you want to protect your current relationship as well. Give them an opportunity to help you by making an offer like, "We've really appreciated your business, and since you're well respected in this (industry, segment, etc.) I wondered if you could help me make some additional contacts."

written by Daniel Smith, CAE

say you have info that needs to be provided to (the person) and ask for their email address. Whatever way you decide to reach out, make sure you identify a competitive advantage in your message. Whether it is knowledge of their industry, the service your agency provides, a carrier partner that is better suited for their risk, or something else you identify, make sure you give them a compelling reason to call or email you back.

Using Social Media for Selling There are circumstances where social media can be the conduit not only for identifying prospects, but for completing the sale. I cringe every time I get a LinkedIn message with some off-target ask like – "Can I help you rent space for your company?" A simple viewing of my profile would have told them that I am not the contact for that. Be on target with your message and remember the earlier suggestion – give them a compelling reason to message you back. Want to integrate some marketing automation on social media to the mix? Don't automate your initial contact with the prospect, automate the process they go through to quote or provide info. For example, Facebook Messenger has chatbot

If they are not willing to refer you (and they are a current insured), discuss what you can do to strengthen your relationship with them. This may also serve as an opportunity to improve your service for their account.

Reach Out Directly If you don't have a mutual contact or someone that can/will refer you, consider reaching out directly. I would caution you from using "automated" or template messages on social media. Try to find their contact info if possible. If you're comfortable with a phone call, reach out to them and identify why you think you can help them with their specific industry, risk or service. If phone calls aren't your thing for initial introductions, try them by email. A Google search can usually identify it, or you can sometimes determine it based on the email pattern of their company. If not, simply contact the company and 14

Make sure your "digital" introduction is as meaningful as a real world one would be

The Tennessee Insuror


Acuity loves you!

We are proud of the relationships we have built with the best independent agents in the world!

www.acuity.com

The Tennessee Insuror

15


Are you making the Right Choice for their Business?

options that you can build out to respond to messages and request specific info. Let's say a potential customer messages your agency at 9:30 pm on a Friday looking for a renter's insurance quote. It is unlikely someone from your agency is going to follow up on that until Monday morning. However, your Messenger chatbot could understand that request and ask them for the initial info that is needed. Once the details have been provided, the chatbot could tell them something along the lines of, "Thank you for your info, we're working on your quote now. A licensed agent will contact you with more details." You'd then get another message that the info has been provided, and someone from the agency can follow up. I wouldn't recommend this for commercial risks yet, but maybe there are some simpler chatbot commands that could be built that give a commercial prospect some initial responses and make them feel like they received immediate feedback. That being said, some direct writers and brokers are already trying it for commercial risks. For example, online broker Next Insurance has built the below chatbot for their Messenger:

BSIG Makes It Easy With Choice Classes For Middle Market Risks

Middle Market Choice Classes* Below is just a broad listing. If you don’t see what you’re looking for, please contact us.

• General Contractors • Building Trade Contractors • Utility Contractors • Land Improvement Contractors • Pavement Maintenance-Non DOT

• Services Contractors • Building Cleaning & Maintenance Contractors • Construction Material Suppliers • Manufacturing • Wholesale and Distributing

* All classes may not be available in all states.

Our Claim Commitment • 24/7/365 loss reporting-including online • • Accelerated auto and property estimating and repair options • • “Fast Track” medical only claims handling program • • Tele-emergent medicine program-connects injured workers to medical care, not “triage” •

Want to know more? Is it a good idea? J.D. Power thinks so, and they reported back in 2016 that, "Insurers that lead in digital shopping channels also lead in premium growth."1 I'm not sure yet, but I am sure that you need to be able to sell where you clients want to buy. Find the way they prefer to be contacted and the message that resonates with them and watch the sales start rolling in. 1 - per "Digital Leaders Setting the Pace for Premium Growth" via https://www. jdpower.com/business/press-releases/2016-us-insurance-shopping-study

About the Author Daniel Smith serves as the Chief Marketing Officer for Insurors of Tennessee. He has a Bachelors degree in Marketing with a minor in Graphic Design from the University of Tennessee at Chattanooga, and earned his Certified Association Executive (CAE) designation in 2017. He may be contacted at dsmith@insurors.org. u 16

Bill Vanderslice, Regional Vice-President 615-932-5508 | bvanderslice@berkleysig.com or your Middle Market Underwriter

Your Back-in-Business Insurance Company®

berkleysig.com

Follow us on

Berkley Southeast Insurance Group is a member company of W. R. Berkley Corporation, whose insurance company subsidiaries are rated A+ (Superior) by A.M.Best. Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. A M

BEST

©2019 Berkley Southeast Insurance Group. All rights reserved.

0719-38

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In 2016 we partnered with American Union Risk Underwriters (AURA) located in Florida. With our new partner we can now also offer our comprehensive Umbrella, with unsurpassed service and for the following types of risks: Hotels ● Motels ● Timeshares ● Lessor’s Risk Enclosed Malls Shopping Centers Retail ● Office Buildings ● Warehouses ● Light Industrial Apartments Limit options ranging from $5 million to $100 million For information on our AURA program, contact our experienced underwriter Tom Clementi at 877-506-1430 or visit our website, www.aurains.com A subsidiary of

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Professional Liability • Management Liability • Data Privacy & Security Liability The Tennessee Insuror

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Future Leaders Spotlight

presented by

Evan Morris • V.R. Williams & Company - Winchester

Evan Morris of V.R. Williams & Company

I was born in Chattanooga, and my father was working for a title agency there at the time. A few years later we moved to Winchester where my dad started his own title company. Most of my parents’ family was in Winchester so it made sense to move back. I’ve lived in every town in Franklin County, but Winchester is my home.

When I’m not working you’ll probably find me enjoying the outdoors. I love to hunt and stay active with sports. If you enjoy outdoor recreation, like me, Franklin County is a great place. Between off-roading the Cumberland Plateau or cruising on Tims Ford Lake there are plenty of activities that my wife, Ashley, and I enjoy with family and friends. Ashley and I have been together since high school and we are very excited to be expecting our first child, Asher Matthew, in October. On just about any Sunday you’ll find us at the same place – attending service with our friends and neighbors at our small country church.

The Insuror: Can you tell us a little about your current job title and responsibilities? Evan: My current role at V.R. Williams is a commercial producer where I develop relationships with business owners and determine if our agency's specializations fit the needs for them as potential clients.

The Insuror: What can you tell us about your educational background? Evan: I graduated from St. Andrew’s Sewanee School in 2012 and attended University of Tennessee at Chattanooga. Ultimately, I transferred and graduated from Trevecca Nazarene University with a Bachelor's degree in Business Management and Human Relations.

The Insuror: How and why did you get your career in the insurance industry started? Evan: As I started my professional career – timing was everything. I worked at a local bank through college and stumbled into the industry by word of mouth. My dad has 18

been a client of V.R. Williams for many years and through conversation with a few of the employees at V. R. Williams it turned out that they were looking to hire a new agent, and I was looking for a long-term career. I was able to take advantage of the opportunity and like I said – timing was everything.

The Insuror: Do you have any influences/role models in the industry? Evan: There’s no question I’m very fortunate to be in an agency where I have multiple influences. Our president – my mentor – Joe Hunt has undoubtedly impacted my career. He’s taught me the true value of what it means to be an independent agent and developing a process to create success. Joe’s knowledge of the industry is deep and that takes time to learn. Chris Rose and Kevin Lockmiller have each been influential in my role as a producer. I knew nothing about insurance when I came into the industry, and to have influential people like Chris and Kevin take the time to help me grow is incredibly helpful. Another great thing about the insurance field is the information that is created and shared for the betterment of the industry. I listen to a lot of podcasts and webinars – there's a lot of them out there! A few of my favorites are hosted by Roger Sitkins, Brent Kelly and Randy Schwantz, and I really appreciate all the insight they provide on business, sales and our industry.

The Insuror: Is there any advice you could offer Young Agents or others in the industry to achieve success in their careers? Evan: Understand "why." Why are you an independent agent? When something goes wrong, and clients are having a bad day they call us to help them through it. Have compassion and be an advisor. If you take care of people then people will take care of you.

The Insuror: Thank you for giving us your time, Evan, we appreciate it and wish you continued success. Evan: I appreciate Penn National Insurance and Insurors providing me with the opportunity to be involved in this article and the Young Agents program, and I look forward to continuing to work with them. u The Tennessee Insuror


Young Agents '19 Upcoming Events and Information

Our Young Agents Committee strives to offer young insurance professionals with opportunities to network and develop in the industry. Over 500 Insurors members participate in the Young Agents program in some fashion. So far in 2019, we have held education, government relations and networking events throughout the state with a total of over 200 young agents attending these events.

KNK REALLY SAVED ME! LICENSING COMPLIANCE CAN BE SO STRESSFUL!!

We still have one event remaining in 2019, and we will soon begin planning for our 2020 calendar. If you have thoughts or suggestions on an event topic, location or venue, please let us know. In the meantime, we hope you'll join us at our Young Agents event at the Annual Convention or contact us for information: Insurors Convention Young Agents After Party • October 20 Citron Et Sel • Chattanooga • 8:30-10 pm ET

Young Agents Committee Cy Young - Chair President Young-Hughes Insurance Alamo cy@younghughesinsurance.com David Allen, CIC, CRM - Immediate Past Chair Principal Agent RSS Insurance Chattanooga dallen@rssins.com

THAT’S AWESOME!! MAYBE I SHOULD

OUTSOURCE MY LICENSING TOO!

MAKE SURE YOU STOP BY OUR BOOTH TO SEE WHAT EVERYONE’S BEEN TALKING ABOUT!!

Matt Felgendreher - Region II Executive Vice President W.C. Dillon Company & Insight Risk Management Nashville mfelgendreher@irmllc.com Derek Wright - Region III Agent/Principal Graham & Cook Insurance Knoxville derek@grahamandcook.com For more info, or for any questions on the Young Agents Committee and its programs, please contact Daniel Smith at dsmith@insurors.org or call 615.515.2601. u The Tennessee Insuror

MORE TIME, LESS STRESS (615) 375-7419 | www.knkcompliance.com 19


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The Tennessee Insuror


From Your President Engagement – A Great Measuring Tool Your Board and Insurors staff have been very busy for the first 9 months of the year. The entire Board went through some professional leadership development work earlier in the year. The time spent together fostered some valuable and forward-thinking ideas. Our new Association Value Statement – “We Educate, Protect and Support Independent Agents” came from these Board development sessions. It complements our Mission Statement. To viably achieve that Value Statement, we need member agents that are active or "engaged" in the Association's activities. Engagement is a major emphasis that the Board and Staff have embraced. It will be a central theme as the Board plans annually and for our 3-5 year rolling plan. Just as we are all “engaged” in our business and personal lives; so must the Insurors stay “engaged” with its members at all levels and throughout the state. To that end, we have established and implemented several new programs. Our Women in Insurance (WINS) program and our Legislative Town Halls are recent engagement and networking programs founded under Ashley Gold’s leadership.

Women in Insurance WINS began in late 2018 with the first meeting in Nashville, and we have since seen a consistent response of 40+ women attending each of the 4 events we've held in 2019. At the time I write this, we are planning our first event in Knoxville and we expect a great crowd for it as well. If you're a woman in this industry I'd highly encourage you to check out one of these events.

Legislative Town Halls Our Legislative Town Halls started the middle of 2019 under the direction of Ashley and Jim Layman, our Director of Government Relations. We held 5 meeting across the state and had over 150 attendees at these events. We also had multiple State Legislators attend and be The Tennessee Insuror

involved, as well as the former Interim Commissioner of the Tennessee Department of Commerce and Insurance. I feel these events were a great compliment to our new Government Relations Committee, and I believe we have seen some strong results. As Jim discusses further in his article on page 31, we have raised over $62,000 for InsurPACTN this year, one of the highest totals we have ever recorded. This will continue to give us great leverage as we work to promote the interests of our members and the insured public in Tennessee.

Other Local Events In addition to these programs, we have continued our growing Young Agents events across the state, and also hosted a tailgate at the UT vs. BYU game to try and have as many chances as possible to meet and talk with our agent community. In 2020, we'll be looking for additional events and opportunities to connect across the state.

Annual Convention Our largest annual "engagement" event – our Insurors Annual Convention – is almost upon us as well. We expect well over 150 agents to attend, and over 400 total industry professionals and guests. And by returning to Chattanooga for the convention, we will have held 2-3 events this year in every one of our state's major metro areas.

"T o v i a b l y a c h i e v e that Value Statement, we need m e m b e r agents that are active or 'engaged' i n t h e Association's ac ti v ities .”

As we continue to build and expand Insurors programs and products for our members, if we all “Stay Engaged,” we will all be better Independent Insurance Agents of Tennessee. I hope to see you at our Convention in Chattanooga, and I'd love to hear your input on how we can get more agents engaged and also offer more engagement opportunities as an Association. Feel free to stop me at Convention and share your thoughts on it. See you all in Chattanooga and WDE. u

Joe Hunt 21


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Technology

The Tennessee Insuror


From Your IIABA National Director A Fond Farewell and A New Beginning What an exciting, eventful and rewarding year this has been. As we head into the 4th Quarter of 2019, I’d like to use this space for a bit of personal privilege.

in great hands with our Board, Ashley and her team.

As many of you may already know, I was elected to serve on the Executive Committee of the Independent Insurance Agents & Brokers of America (Big “I”). The election was in September at the Association's Leadership Conference in Savannah, Georgia. While this is an amazing honor, it leads me down a different path within the insurance industry.

However sad I am to step away from Insurors in a leadership role, I am extremely excited to serve on the Big “I” EC. I am the first member of the EC to hail from the great state of Tennessee – and that makes me feel even more honored to assume this role.

A Long History I have been in this industry since I was 19 years old, when I joined my father in his agency while I was still at UT. Early on, I was charged with attending insurance schools held by Safeco, Travelers, CNA, etc. I also was sent to Nashville for an intensive education class being taught by a new instructor, Charles T. Bidek. Chuck and I formed a friendship immediately, and he took me under his wing. And I still credit him to this day for my success and continued involvement in the insurance industry and the Insurors of Tennessee. I now fulfill a cycle of involvement that has included service to the Association on every level. I was privileged to serve as President of the Insurors of Knoxville local board, as President of this State Association, as your IIABA National Director, and now as a member of the Big "I" Executive Committee (EC). To say I love this Association would be an understatement. I want to thank you for allowing me to be a part of Insurors for over half of my career. The knowledge that I have gained, the contacts I have made, and the friendships I have formed are forever a part of me. And they have shaped me to the agent that I am. As a result of my election, I will be stepping down from my duties with the Insurors of Tennessee. I feel a little sad in that regard, but I know this remains one of the strongest state Associations in the Big “I”. I believe Insurors is The Tennessee Insuror

The Next Step

I plan to carry the lessons that I learned on the state level to the national stage. I am excited to continue being in touch with independent agents, but now ALL agents, not just Tennessee agents! I am also excited to learn more how agents from across the U.S. work to help our industry and keep our business moving forward in our ever-changing world. I also plan to work to keep our interests as agents at the forefront, even though it will be on a greater scale. I believe the Big "I" does a lot of great work for us, and I want to see that continue. I look forward to still being involved in Insurors of Tennessee, just in a different role and now with some added perspective. I look forward to continuing to see you all at the events across the state and continuing to hear from you as well. If you have thoughts on what the National Association can do to better serve you, please don't hesitate to contact me or tell me in person.

“To s a y I love this Association would be an understatement.”

My Sincere Thanks Thank you again for your support, friendship, encouragement, and commitment to me, personally, and to our industry. I am proud to represent Tennessee on a national insurance stage, and will do my best to continue to support and grow the industry we all love in the years to come. And although this is my "farewell" article as your National Director, you haven't seen the last of me! u

Lou Moran III 23


Olympia Insurance

Olympia Insurance

24

The Tennessee Insuror


From Your CEO THREE: The Commoditization of Insurance "15 minutes will save you 15% on car insurance"

So, What's New?

"Name your price"

The newest disrupter in the market – who thinks he knows more than the agents and carriers who have spent years in this business – is Warren Buffett. In a 2004 shareholder letter Buffett wrote, "Insurers have generally earned poor returns for a single reason: They sell a commodity-like product. Policy forms are standard, and the product is available from many suppliers, some of whom are mutual companies ('owned' by their policyholders rather than stockholders) with profit goals that are limited. Moreover, most insureds don't care from whom they buy. Customers by the millions say, "I need some Gillette blades" or "I'll have a Coke," but we wait in vain for "I'd like a National Indemnity policy, please." Consequently, price competition in insurance is usually fierce."

"Only pay for what you need" "$29 Full Coverage" As any of the above advertising slogans will illustrate, today's insurance agents are facing a common enemy, the commoditization of insurance.

What is the Issue? One definition of a commodity is, "a good or service that is widely available and is not differentiated by factors other than price." Things like brand name become unimportant because the item is essentially indistinguishable from other alternatives. So in our industry, the commoditization of insurance is the idea that insurance has become widely available to consumers and consumers in turn place the emphasis on price over coverage and service. In other words, if someone is looking for car insurance and can find the same coverage in multiple locations, the cheapest price will be the deciding factor. Every agent is aware of insurance disrupters and the multitude of new companies on the market offering to “make your own policy”, “pick the coverages”, comparing policies and aggregating the ability to get quotes from multiple carriers in one place. It’s the Trivago.com of insurance. These tools often force carriers to compete on price while trivializing or forgoing altogether quality and support. And although we know that insurance policies are not, "indistinguishable from other alternatives," we still face that battle. With that in mind, as independent agents it is not only important, but it is vital that we distinguish ourselves and continue to reinforce the importance of quality and service. These things are what give independent agents an advantage over their online and direct competition. The Tennessee Insuror

This summer, Tennessee joins many other states where Berkshire Hathaway has filed it new policy, titled THREE. In my opinion, THREE is a dangerous attempt to simplify and combine multiple insurance contracts for small business owners. Buffett introduced THREE stating, "…with THREE a small business can be confident in the protection it is getting, because the whole policy can be read in a few moments.” THREE, as its name foreshadows, is a three-page small-business policy Berkshire Hathaway insists is easy to read, understand and apply. Buffett's intent is to replace multiple policies and endorsements with one, three-page policy.

“In my opinion, THREE is a dangerous attempt to simplify and combine multiple insurance contracts for small business owners. ”

The seven coverages included in this policy are: • • • • • • •

Property coverage; General liability coverage; Auto coverage; Errors and omissions coverage; Directors and officer’s liability coverage; Cyber coverage; and Workers' compensation coverage.

In order to condense business coverage into 3 pages, the policy is general in nature and lacks specificity (You can view the "FAQs" of the pol-

Ashley Gold, J.D. 25


icy at https://threeinsurance.com/faqs and the whole policy filing for Tennessee at https://www.insurors.org/pdf/berkshire3bop.pdf). Lack of specificity generally results in court dates to decide how the coverage responds. Chris Boggs, Executive Director of IIABA’s Virtual University, wrote an article earlier this year for The Insurance Journal detailing in depth all of the issues and concerns with THREE. View his full article now at https://www.insurancejournal.com/news/national/2019/03/25/521584.htm Beyond the overt issues and gaps addressed, the greatest "unseen" problem presented by this policy is the inability to customize it to meet the insured's specific needs. All insurance policies, including this one, are written for the "average" insured; the problem is, there is no such thing as an average insured. Endorsements exist to allow the insured to customize a policy to meet its unique exposures. Without the ability to customize, the insured is stuck with an inadequate option - especially if this policy is the chosen option.

What Can We Do About It? Berkshire Hathaway’s introduction of THREE in Tennessee is just another step closer to complete commoditization of insurance, and as independent agents we must work together to show our clients that coverage, quality and service do matter. u

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26

The Tennessee Insuror


REACH YOUR GOALS

2019 EDUCATION SCHEDULE NASHVILLE

Feb. 12 - CISR: Elements of Risk Management April 10-12 - CIC: Agency Management May 7 - CISR: Personal Auto June 19-20 - JK: Ruble Sept. 11-13 - CIC: Commercial Multiline Sept. 24-26 - CRM Nov. 6-8 - CIC: Personal Lines Dec. 3 - CISR: Commercial Casualty I

MEMPHIS

Feb. 13 - CISR: Agency Operations Feb. 27-March 1 - CIC: Commercial Casualty May 8 - CISR: Personal Auto Dec. 4 - CISR: Commercial Casualty I

CHATTANOOGA April 4 - CISR: Commercial Casualty I Oct. 3 - CISR: Personal Lines - Miscellaneous

2019 EDUCATION SCHEDULE KNOXVILLE

April 3 - CISR: Commercial Casualty I Aug. 14-16 - CIC: Commercial Property Oct. 2 - CISR: Elements of Risk Management

JOHNSON CITY

April 2 - CISR: Commercial Casualty I Oct. 1 - CISR: Elements of Risk Management

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

WWW.INSURORS.ORG Register online or Contact our Membership Specialist Ellie Small at esmall@insurors.org or 615.515.2607

CISR 12/3 12/4 2/11 2/12

Fee: $186

Commercial Casualty I Commercial Casualty I Personal Residential Personal Residential

CIC

CE: 7

Nashville Memphis Nashville Memphis

10/17 10/17 10/17

Dynamics 10/17

Fee: $430

11/6-8 Personal Lines Institute 2/5-7 Commercial Casualty Institute 3/4-6 Commercial Property Institute

CE: 16

Nashville Nashville Memphis

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.

Insurance and Property Lease CE: 2 $48 Retirement Planning and Annuities CE: 2 $48 COI: Emerging Issues and Scary Stuff CE: 3 $72

Fee: $495

Dynamics of Selling

10/9 10/14 10/15 10/15 10/15 10/15 10/15 10/16 10/16 10/16 10/16 10/16 10/16 10/16 10/17

E&O: Comm. Prop. Coverage Gaps CE: 3 $72 Double Trouble - COI and Biz Auto CE: 2 $48 Are You More Ethical Than Politician? CE: 1 $24 E&O: Roadmap to Policy Analysis I CE: 3 $72 Commercial Prop. Endorsements CE: 2 $48 E&O: Meet the Challenge of Change CE: 2 $48 E&O: Roadmap to Homeowners End. CE: 3 $72 Premium Auditing: Agents Must Know CE: 2 $52 The Basics of COPE CE: 3 $79 The Law of Insurance Contracts CE: 3 $79 Torts, Negligence & Liability CE: 3 $79 Business Auto Claims Problems CE: 2 $48 Ethical Issues: Personal & Org. CE: 3 $72 Business Income and Extra Expense CE: 2 $48 NFIP Then and Now CE: 3 $72

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



ABEN Webcasts (insurors.aben.tv)

CE: 16

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


Partners

000

FOR TENNESSEE

Endorsed

PARTNERS

000

Leading

PARTNERS

Thank You!

Supporting PARTNERS

FOR YOUR SUPPORT OF INDEPENDENT AGENTS IN TENNESSEE

Sustaining PARTNERS

Contributing PARTNERS

28

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FLOOD INSURANCE

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• BERKSHIRE HATHAWAY GUARD INSURANCE • COLUMBIA INSURANCE GROUP • FCCI INSURANCE GROUP • FFVA MUTUAL • • METLIFE AUTO & HOME • NORTH POINT UNDERWRITERS • PHILADELPHIA INSURANCE COS. • SAFEWAY INSURANCE • • STRATEGIC INSURANCE SOFTWARE - PARTNER PLATFORM • STONEWOOD INSURANCE


Five Reasons Texting...

...continued from page 12

nail down a time to see or talk to clients. Even when a meeting or call is scheduled, you still have to confirm and remind clients about them. The average response time for a text message is only 90 seconds, according to CTIA,3 which means you will have a much easier time scheduling and confirming appointments when you text. With a good teaxting system in place at your agency, confirmations and reminder texts can be scheduled in advance.

4. Renewals Renewal time is a great time to remind clients to update their information and make sure you're up-to-date on any changes in their risk(s). Send renewal "check-ups" to one client at a time, a specific group, or all your clients in the same renewal window at once. If they can update their information online, include a link to your client portal.

More than an account. A relationship.

More than a policy. A promise. At FCCI, we’ve been working with select independent agents to insure businesses for

5. Reviews People need to trust you before they work with you, and most consumers turn to online reviews to help them make that decision. As a result, the agent with the most positive reviews normally wins the most business. So, text your clients to ask for them to review your agency on Google, Yelp and Facebook.

more than 60 years. Your clients are more than an account to us. We’ll work with you so they can face the future with confidence.

1-per "How Consumers Use Messaging Today" via https://www.twilio.com/ learn/commerce-communications/how-consumers-use-messaging 2-per "2017 Electronic Communications Compliance Survey Report" via https://www.smarsh.com/report/2017-electronic-communications-compliance-survey-report/ 3-per "107 Texting Statistics That Answer All Your Questions" via https:// www.textrequest.com/blog/texting-statistics-answer-questions/

About the Author Kenneth is the marketing director for Text Request, an online business texting service. He’s been awarded for his work in sales and psychological research. He’s also worked with many businesses, from pre-launch startups to billion-dollar companies, to help them achieve their goals. u 30

www.fcci-group.com

800-226-3224

PROPERTY I CASUALTY I SURETY I RISK MANAGEMENT I SECTOR EXPERTISE

The Tennessee Insuror


Layman's Terms

Advocacy Update: New Commissioner at TDCI; New Committee Makeup; InsurPACTN Donors Insurors Director of Government Relations, Jim Layman, J.D., breaks down the legal and legislative issues facing our industry. On Thursday, September 5, Governor Bill Lee appointed Hodgen Mainda as Commissioner of the Department of Commerce and Insurance (TDCI), replacing Interim Commissioner Carter Lawrence. Mainda most recently served as the vice president for community development at the Electric Power Board (EPB) in Chattanooga. Mainda also serves on several non-profit boards including his local Chamber of Commerce, Rotary Club, United Way, the University of Tennessee at Chattanooga Chancellor’s Roundtable and he is a member of the Leadership Tennessee Class of 2019. Commissioner Mainda will start with the Department on October 1. In other Department news, Rachel Jrade-Rice has been named Assistant Commissioner of the Insurance Division. Rachel is an attorney who started working for the Department in February 2017, following over five years with the Attorney General’s Office. I had the chance to work closely with Rachel last session and cannot speak more highly of her; very excited to have her in this role. I also had a chance recently to speak to Commissioner Mainda by phone. I’m quite impressed already and I look forward to sitting down in person with him soon. Congratulations to both Hodgen and Rachel, and we look forward to working with you! On August 23, the General Assembly met in a special session to elect a new speaker of the House. Rep. Cameron Sexton (RCrossville) was nearly unanimously elected and despite some rabble-rousing from House Democrats, very little other business was conducted. Most significantly, Speaker Sexton announced new committee chairs and committee assignments. While most committee chairmen stayed in place, there were a few important changes. Rep. Ron Travis, a former Nationwide agent from Dayton, was removed as chair of Insurance Committee and replaced by Rep. Robin Smith (R-Hixson), a former state GOP chairman and freshman Rep. who had served as Life & Health Subcommittee chair last year. Rep. Ryan Williams (R-Cookeville) replaced Smith as Life & Health chair, while Rep. David Hawk (R-Greeneville) replaced Rep. Matthew Hill (R-Jonesborough) as chairman of TennCare Subcommittee. Rep. Darren Jernigan (D-Old Hickory) was kept as chairman of Property & Casualty Subcommittee. New members on P&C Sub are Reps. Jeremy Faison (R-Cosby), [who also was recently elected House Republican Caucus Chair]), Dennis Powers (RJacksboro), Dwayne Thompson (D-Cordova) and chairman Smith. Other new members of the Insurance Full Committee include Rep. Martin Daniel (R-Knoxville), Bo Mitchell (D-Nashville), Rep. Sabi Kumar (R-Springfield) and Micah Van Huss The Tennessee Insuror

(R-Jonesborough). I look forward to working with new and previous members of the Committee as we work to ensure a profitable and equitable environment for our members. Finally, I just want to say a huge thank you to all the members that attended our Legislative Town Halls this summer. It was great meeting so many of you and seeing members interact with their legislators. In all, we had over 150 attendees, and had 20 legislators and Department staff attend and address our group. I hope that you participated and found it beneficial. It was great getting to recap the 2019 session at our Town Halls, but we must now turn our attention to 2020. Next year is already shaping up to be a very important year for Insurors advocacy efforts with a new Speaker of the House, new Insurance Commissioner, and already a number of veteran legislators announcing that they don’t plan to seek re-election. It is incredibly important that we stay vigilant in raising contributions to InsurPACTN to ensure that independent agents have a voice in the insurance policy conversations that will be happening in 2020. I hope that you have had a chance to see some our recent materials we’ve put out about InsurPACTN including our PAC Resume and the 2019 Legislative Update. We’ll be continuing fundraising efforts in full force through the end of the year. Thank You to Our InsurPACTN Contributors! Due to your generous contributions, we have been able to raise over $62,000 this year for InsurPACTN. On the next page, you can view our top contributors so far for the 2019 cycle. These PAC funds are used to support candidates that value the independent agent’s perspective, and to ensure Tennessee continues to foster a favorable insurance climate. If you didn’t get a chance to give this year, please consider giving now so that you can be recognized. You can give using one of our contribution forms, at insurors.org, or by PayPal to aarnold@ insurors.org. For any questions on InsurPACTN or our advocacy efforts, please reach out to me at jlayman@insurors.org. About the Author Jim Layman, J.D. is the Director of Gov. Relations for Insurors. He previously worked for the Tennessee Dept. of Mental Health as legislative liaison and rules coordinator. Prior to that, he worked for the Dept. of Health as a legislative liaison and the Dept. of Labor and Workforce Dev. as director of unemployment insurance appeals. Jim graduated from the Univ. of Memphis Cecil C. Humphreys School of Law and received his undergraduate degree from the Univ. of Tennessee. He may be contacted at jlayman@insurors.org. u 31


InsurPACTN Contributors Recognizing our Top 2019 Supporters Champion's Club ($1,000 or higher) Chris Allison • Norfleet Anthony III • Commercial Insurance Associates, LLC • The Crichton Group • Frank E. Neal & Company, Inc. • Chip Fridrich • Joe Hunt Jr. • Lipscomb & Pitts Insurance • Martin & Zerfoss, Inc. • Brooks McDonald • Bob McIntire Jr. • Lou Moran III • Miller Loughry Beach Insurance Services, Inc. • Kevin Ownby • Price & Ramey, Inc. • SecureRisk Tennessee • SouthPointRisk - Nashville • Brad V. Smith • Swallows Insurance Agency • Westan Insurance Group, Inc. • White & Associates Insurance Agency, Inc. • Tim Witt

Capitol Club ($500-$999) Tommy Allmon • Anderson Benson Insurance • The Assurance Center • Barnes Insurance Agency • Boyle Insurance Agency, Inc. • Bradshaw & Company Insurors • Burke Powers & Harty, Inc. • Busch Thoma • Crye-Leike Insurance • Edwards, Tipton, Witt Agency • Farris Evans Insurance Agency, Inc. • Scott Ferguson • Fridrich & Associates Insurance Agency, Inc. • Hardin County Bank Insurance Agency • Inter-Agency Insurance Service, Inc. • Christy Jones • Joe Lester • John McCord • Maddox Insurance Agency • Steve Oseman • Mike Ownby • Keith Phelps • Porch-Stribling-Webb, Inc. • Taylor Porch • Tim Roberts • RSS Insurance • Shafer Insurance Agency • Mark Slater Jr. • Strate Insurance Group, Inc. • Tigrett & Pennington, Inc. • Richard Whitley

Campaign Club ($50-$499) Abbott Insurance Agency • Jimmy Alsup • Alsup & Associates Insurance, Inc. • Bagley & Bagley • Bailey Insurance Services • Battle Page Insurance Agency, Inc. • Benefits, Inc. • Burchfiel-Overbay & Associates • Bible Insurance Agency • Carnal-Roberts Agency, Inc. • Casey Agency • Chambers Insurance Agency • Coker, Wolfe Associates, Inc. • Coley Insurance Agency • Joseph Coomer • Dixie Smith Insurance Agency • Chelsy Dochety • Elite Insurance Solutions • Flegal Insurance • Fred L. Davis Insurance • Gallagher • Gary Cooper Insurance • Noland Gomez • Michael Greene • Johnny Griffin • Guess Insurance Agency • Hale Insurance, LLC • Handley Insurance Resources, Inc. • Hatchett Insurance Agency • H.B. Cowan & Company • Herron-Connell Insurance • Higgins Insurance, Inc. • Hyde & Associates, Inc. • Insurance Group of America, LLC • Insurefit RM • Ivy Insurance, Inc. • John Bailey Company • J. Paul Richardson & Son Ins Agency • Keisling Insurance Agency • Kellon Insurance Agency • Mathis, Tibbetts & Massey, Inc. • Davis McCord • McInturff, Milligan & Brooks • John W. McInturff Jr. • Ownby Insurance Service, Inc. • OccuSure Workers' Comp Specialists • Oldham and Cox Insurance, LLC • Kenneth Pack • Parker and Watts Insurance Agency • Public Risk Insurors • Raborn Insurance Agency, Inc. • Tim Roberts • Roger H. Smith • S. N. Anthony, Inc. • Southern Dutchman Corp • Swafford Insurance • Taylor Insurance, Inc. • Jack Thoma • Townsend-Evans Insurance • Tri State Claims • Hunter Trimble • Tucker Agency, LLC • Veritas Risk Management, Inc. • Volunteer Insurance Agency, Inc. • Wall-Modrall Insurance Agency, Inc. • Watauga Insurance, Inc. • Williams Insurance Group, Inc. • Cy Young

Advocate The Agent

32

The Tennessee Insuror


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800-825-5742 The Tennessee Insuror


Association Update Insurors Adds Weber for Member Engagement Insurors of Tennessee has announced the hiring of Nick Weber to fill the position of Member Engagement Specialist. The new position became effective October 1. Weber was most recently a talent acquisition specialist for Farmers Insurance in Middle Tennessee. He previously worked for the company as a senior claims adjuster, and is currently finalizing his Tennessee P&C license. He is a Kansas native and has a Bachelor's degree from Kansas State University. “We're excited about the value Nick can bring to our members,” adds Ashley Gold, CEO of Insurors of Tennessee, “Between his experience and the many product and program offerings he can share with members, we feel he brings a lot of potential to this new role.”

Moran Elected to Big "I" Exec. Committee Insurors current IIABA National Director and Past President Lou Moran III of InterAgency Insurance in Knoxville has been elected to the Big "I" Executive Committee as an at-large member. Moran was elected in September at the Big "I" Leadership Conference in Savannah, Georgia, and immediately sworn into office. Moran becomes the first Insurors member to ever serve on the national executive committee, and is now in the line of succession to serve as Big "I" Chairman for the 2022-23 term. He currently serves on the Big "I” Governmental Affairs Committee and he previously served on the InsurPac National Board of Directors. Through his career, he has served on multiple Insurors committees, was a Board member in 1996, 2002-2004 and served as President in 2014. In addition, he served as President of the Insurors of Knoxville local board in 1996. He was named Young Insuror of the Year in 1994 and Insuror of the Year in 2006.

Best Practices Agencies for TN Announced Eleven Insurors members were recently named as Big "I" Best Practices Agencies for 2019. To achieve this status each agency was nominated by either a state association or a carrier partner for their operational excellence, the agency then submitted extensive data and information to Reagan Consulting to be scored in the six different revenue categories. Only the top percentage qualified and the annual study is being written based on these high performing agencies. The Tennessee Insuror

The Insurors members that were recognized include: Athens Insurance - Athens, BFS Insurance - Clarksville, Collier Insurance - Memphis, The Crichton Group (HUB Southeast) - Nashville, Hatchett Insurance Agency - Winchester, Insurance Group of America - Franklin, Insurefit RM - Knoxville, Lipscomb & Pitts Insurance - Memphis, McDaniel-Whitley, Inc. - Memphis, Powell & Meadows Insurance - Carthage and TIS Insurance Services - Knoxville.

Johnson Receives "Excellence" Award Former Insurors Board Member J. Alan Johnson, CPCU, ARM-P, AIS, AINS of Johnson Risk Management in Madisonville recently received the "Excellence in Risk Management Award" by Public Entity Partners at their Risk Management Symposium. Johnson has over 45 years of industry experience and was one of only two East Tennessee winners.

RSS Named as Keystone TN Partner of the Year Keystone Insurers Group recently announced that they have named RSS Insurance of Chattanooga as the 2019 State Partner of the Year for Tennessee. Agency principal and former Insurors Board member David Allen said of the honor, “We will be using this honor to promote our hard work and dedication to our clients. Our number one piece of advice we would give to another Keystone partner to improve their agency in the industry is to take care of your clients. If we are not taking care of them, our competitors will!”

IGA Expanding; Adding to Team Franklin-based Insurance Group of America (IGA) recently announced that it has expanded across the state with offices in Memphis and Chattanooga. The Memphis office will be led by new partner Bo Midgett, CIC, CRM, AAI, CWCA, a longtime industry executive in the city. Midgett was formely a senior VP for Lipscomb & Pitts. IGA also announced the addition of loss control expert Kelsey Unland as director of risk management for the agency. Unland was formerly a director of client relations for Fortier Loss Control. continued on page 41... 35


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

Swiss Re Corporate Solutions is proud to be the exclusively endorsed Lawyer’s Professional Liability provider for the Insurors of Tennessee. For more information or to access the program, please visit www.bigimarkets.com and select the Lawyers Professional Liability Program.

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

The Tennessee Insuror

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


Program Spotlight ePayPolicy The Simplest Way to Collect Insurance Payments The insurance industry is quickly becoming an epicenter for technology advancements. From underwriting software to management systems to digital payment processing, InsurTech is transforming the way we do business. Take for example paper checks. Insurance professionals everywhere have been accepting paper checks since the dawn of the modern insurance industry. The practice reigned supreme for a long while, and for some agencies, it is still the preferred way to accept payments from insureds. However, paper checks, and its cousins wire transfers and cash payments, come with a slew of caveats and complications for both the agency and the insured.

A New Payment Era Fortunately paying premiums by ACH or credit card is becoming the preferred payment method of insureds as it’s the most convenient option. Unfortunately, too many agents and brokers don’t have a way to collect electronic payments because in the past it’s either been too costly to offer or too complicated to setup. However, that is not the case anymore. Austin-based ePayPolicy simplifies payment collection by offering insurance professionals the ability to accept ACH and credit card payments through a custom, company-branded web page. This platform will allow your agency to: • • • •

Track and reconcile payments Realize receivables faster Brand buttons and payment areas for your agency Promote ease of doing business for your insureds

“The platform is designed around simplicity,” said co-founder Milan Malkani. “We built a web-based The Tennessee Insuror

solution usable by anyone, anywhere, on any device.” With a background in premium finance, co-founder Todd Sorrel emphasized the need for full transparency. “We don’t force our customers into long-term contracts or surprise them with hidden fees,” Sorrel said. ePayPolicy was recently endorsed by Insurors of Tennessee as their preferred payment processor. Chief Executive Officer Ashley Gold, J.D., announced the news by saying: “Our members know my plan as CEO is to foster growth in the evolving insurance industry. InsurTech is a major driver of that evolution. And ePayPolicy is a perfect example of an innovative solution that offers benefits to both member agencies and their clients.”

Full Integration and Low Cost Recently, ePayPolicy became fullyintegrated with Vertafore’s AMS360, QQCatalyst, FinancePro, AIM and Sagitta, as well as Applied CSR24 and a handful of other popular management systems across the industry. In addition, one of the best parts of ePayPolicy may be the processing fees you will save for you and your customer. The processing fee is 3.25% for all credit card transactions including VISA, Mastercard, Discover and American Express. ACH transactions of any size are processed at a flat $3 fee.

Tennessee Contact Ruben Arce Product Specialist Ruben@epay3.com

About ePayPolicy ePayPolicy provides the simplest solution for independent insurance agents to collect digital payments. Developed exclusively for the insurance industry the company’s innovative electronic payment processing portal enables clients to accept credit card or ACH without messy merchant accounts or hidden fees. ePayPolicy sets up quickly, integrates seamlessly with leading management systems, and is endorsed by independent insurance associations nationwide including Insurors of Tennessee. For only $20 a month agencies can start collecting digital payments and put a stop to chasing paper checks. Schedule a demo today by visiting epaypolicy.com/demo

Get Started with ePayPolicy If you’re ready to speed up you receivables, bind business faster, and offer a seamless payment experience to your clients it’s time to reach out to ePayPolicy. Please visit https://epaypolicy.com/ insurorstn/ for more information or to get started at your agency. u 37


TOGETHER WORKING “Exclusive member agencies, collaborating to bring the best insurance solutions to their clients.� 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 Frank E. Neal & Company, Inc. - Nashville Goss Insurance - Hixson Inter-Agency Insurance Services - Knoxville 38

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

Get more information now at www.securerisk.com

The Tennessee Insuror


Broker Spotlight R-T Specialty Service That Goes Beyond the Policy R-T Specialty, LLC (RT) is an independent wholesale brokerage focusing on tough, high-hazard property and casualty risks. Founded in 2010, RT has developed a reputation for excellent service and preforming above and beyond for their clients. When you do business with RT Specialty, you work with professionals who are committed to establishing a mutually beneficial long-term partnership.

Expertise and Understanding RT brokers have the technical expertise, exceptional underwriting relationships and market presence required to provide consistent, exceptional, and cutting-edge risk solutions to your clients. RT Specialty drives the insurance marketplace in premium volume placement across all lines of business, including Agribusiness, Aviation, Casualty, Construction, Energy, Environmental, Healthcare, Life Sciences, Marine, Personal Lines, Professional Liability, Property, Real Estate, Transportation, Workers’ Compensation and Binding Authority. This translates into significant market clout and access. RT thrives on tough risks that demand deep capabilities, an understanding of their clients’ needs, and specific industry experience.

RT’s service does not end with the issuance of the policy. RT employs a team of talented and motivated claims professionals to assist clients on all claims issues. This unique approach within the wholesale industry is one that has proven to be a valuable asset to broker partners and their clients. RT Binding Authority is RT Specialty’s small-to-medium-market-focused group. RT Binding Authority provides binding authority programs across the country and for nearly all lines of business. RT Binding Authority utilizes insurance underwriting professionals local to the agent and business while maintaining centralized controls for quality and consistency of practice. RT Binding Authority is privileged to represent over 100+ carriers, many providing RT Binding Authority with 50-state authority. Average account size may vary by class. To complement their Brokerage operations, lines of coverage are broad, allowing Binding and Brokerage to work as a unified solution provider to your customer. For more info, please contact Allison Flores at allison.flores@ rtspecialty.com/615.538.4070, Sandra Breedlove at sbreedlove@rtspecialty.com/615.329.1068 or your local RT broker. u

BINDING AUTHORITY FOR DIFFERENT SIZES OF E&S RISK

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For risks big and small, RT Specialty is the solution. Our RT Binding underwriting professionals deliver swift, expert E&S coverage for small- and mid-sized accounts. Retail brokers and agents, contact your local RT Binding Underwriter today in one of our 40+ offices at rtbinding.com.

GENERAL LIABILIT Y PROPERT Y UMBRELL A LIQUOR LIABILIT Y INL AND MARINE EVENT W O R K ER S’ C O MP EN S AT I O N PERSONAL LINES

The Tennessee Insuror

39


Recruiting new talent. Target marketing. Competing for new business. Perpetuation planning.

As an independent agent, the path forward isn’t always clear. With Keystone, the best resources are at your fingertips to help you carve out clarity from our industry’s complexities. We connect you to a community of like-minded independent agents, provide access to relationships that extend beyond your geographic reach, and employ the expertise that expands opportunities for you and your clients.

Success is a journey. Let us be your guide.

Contact Michele Bicknell: 570.473.2148 mbicknell@keystoneinsgrp.com keystoneinsgrp.com

Because independence works better together. ©2018 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.

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The Tennessee Insuror


Association Update (cont.) Allmon Receives Safeco Insurance Award Insurors Board member Tommy Allmon, President of White & Associates Insurance in Dyersburg, has been selected by Safeco Insurance for an Award of Excellence. Fewer than 5% of insurance agents across the country who sell Safeco Insurance personal lines policies receive this prestigious honor. To receive a Safeco Award of Excellence, an insurance agent must have a strong relationship with Safeco and superior underwriting skills. Tommy has earned Safeco’s Award of Excellence six times.

Layman Named as "Rising Star" by TNSAE Insurors Director of Government Relations was recently named as the 2019 Association "Rising Star" by the Tennessee Society of Association Executives (TNSAE). The award goes to a new association professional who is already making an impact on their industry and within the association profession.

CIA Adds Avery and Campbell as Producers

Griffin Insurance Recognized by Chamber

Brentwood-based Commercial Insurance Associates has announced the hirings of Andrea Avery and David Campbell as the agency's two newest producers. Avery is based in Knoxville and Campbell works out of the Chattanooga office.

Griffin Insurance Agency of Kingston was recently recognized as the "Business of the Month" for September by the Roane County Chamber of Commerce. The agency has been in business in the community for almost 40 years.

Avery has been in the industry for 15 years and will focus on auto liability driven accounts, distribution, trucking and rail. Campbell will focus on transportation but also has experience in the fields of workers' comp, wholesale and retail. u

The Tennessee Insuror

41


A DENTAL PLAN WITH 20/20 VISION Offer your clients the best in dental and vision benefits. Delta Dental of Tennessee now offers DeltaVision® administered by VSP®. Learn more at DeltaDentalTN.com.

DeltaDentalTN.com 42

The Tennessee Insuror


Company Briefs Mainda Named New TDCI Commissioner

Watson Joins Berkley Southeast

Governor Bill Lee recently swore-in Hodgen Mainda as the new Commissioner for the Tennessee Department of Commerce and Insurance. Mainda formerly served as the VP for community development at the Electric Power Board (EPB) in Chattanooga. In his role with the EPB, Mainda built partnerships across the state and federal level and increased EPB’s role in regional economic development.

Industry veteran Scott Watson has joined Berkley Southeast Insurance Group as the company's new Territory Manager. Watson brings a diverse background to the position, including over 19 years of experience working with Tennessee agents. He previously worked at United Fire and EMC in similar marketing roles, and will be responsible for all sales, marketing and agency initiatives throughout the state. He may be contacted at swatson@berkleysig.com.

In addition to his work with EPB, Mainda has served on several non-profit boards in Chattanooga, including the Chamber of Commerce, the Rotary Club, the United Way, the UTC Chancellor’s Roundtable and the College of Business Advisory Board. Mainda is also a member of the Leadership Tennessee Class of 2019 and a 2018 graduate of the Harvard Business School Young American Leaders Program. A native of Nairobi, Kenya, Mainda moved to Tennessee in 1997 to study at MTSU. He is a graduate of the University of Eastern Africa and is married with two children.

West Bend Announces Promotions West Bend Mutual Insurance Company recently announced the promotions of five of its employees. Heather Dunn is now senior VP, and CFO, a position she’s held since 2017. Dunn joined West Bend in 2008 as controller and was promoted to AVP - corporate accounting in 2010, and VP and controller in 2014. David Ertmer has been promoted to senior VP – claims and is responsible for all claims operations at West Bend, includ-

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ing the company’s specialty lines and mono-line workers’ compensation divisions. Ertmer joined West Bend in 2009 as director of workers’ comp claims and was promoted to VP claims in 2011. Rob Jacques has been promoted to senior VP - commercial lines, overseeing all commercial underwriting operations at West Bend, including the company’s specialty lines and mono-line workers’ compensation divisions. Jacques joined West Bend in 2000 as a regional sales manager. He became a regional underwriting manager in 2003, assistant VP - commercial lines in 2005, and VP - commercial lines in 2007. Jim Schwalen has been named senior VP – personal lines and marketing, continuing in his duties of overseeing the personal lines underwriting division and marketing division, as well as the company’s service center. He’s also responsible for the company’s growth strategy. He joined West Bend in 1997 as assistant VP – personal lines. He was promoted to VP - personal lines in 2004, and in 2008, was named VP - personal lines and marketing, a role that included oversight of the company’s service center.

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Kelly Tighe is now senior VP– sales and will continue to lead the company’s sales efforts, including oversight of the company’s distribution system. He’s also responsible for the company’s expansion plans. He joined West Bend in 1999 as state sales manager and was named director of sales in 2001, assistant VP of sales in 2007, and VP of sales in 2009.

Snavely Earns AIS & ASLI Designations Kimberly Snavely, president and CEO of Insurors-endorsed partner KnK Compliance Services, has earned her Associate in Insurance Services (AIS) and Associate in Surplus Lines Insurance (ASLI) designations. Administered by The Institutes, earning these designations demonstrates a command of the principles and practices essential to the service and surplus lines fields.

Builders Mutual Named a "Top Workplace" Builders Mutual Insurance Company has announced that the company has been selected as one of the "Top Insurance Workplaces" by Insurance Business America for the second consecutive year. The comprehensive report provides a snapshot of the U.S. insurance sector and Builders Mutual is proud to be listed as one of the top 16 companies in the medium sized (100-999 employees) category.

PLEASE VISIT BOOTH #18 Insurors of Tennessee 126th Annual Convention October 19 - 22 2019 Chattanooga, TN

StoneTrust Adds Aucoin and Day StoneTrust Insurance has announced the hirings of Kenny Aucoin as VP of underwriting and marketing and Trey Day as director of marketing. Aucoin is a native of Baton Rouge and has more than 31 years of P&C and work comp underwriting and marketing experience. Day is a Louisiana native and has extensive sales, business development, agency, and marketing experience. u 44

IPFS’s down payment processing services are provided as a convenience only and are subject to prior agreement to IPFS’s terms and conditions. Fees may apply where allowed by state law. Imperial PFS® is a trade name affiliated with IPFS Corporation® (IPFS™), a premium finance company. Access to products and services described herein may be subject to change and are subject to IPFS’s standard terms and conditions in all respects, including the terms and conditions specifically applicable to use of IPFS’s website and mobile application, as applicable, and IPFS’s eForms Disclosure and Consent Agreement. Copyright 2019 © IPFS Corporation. All rights reserved

The Tennessee Insuror


INSURING OPPORTUNITY THROUGH MUTUAL SUCCESS. ™ Harford Mutual Insurance partners with independent agents in Tennessee.

We insure restaurants, contractors, mercantile, and other commercial entities. We’re committed to protecting your client’s business and building yours.

HarfordMutual.com 800.638.3669 The Tennessee Insuror

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Even Monkeys Can't Explain Why Companies Insist on These Waivers Are Waivers of Subrogaton Endorsements a Relic of the Past? This article originally appeared on the Matthiesen, Wickert & Lehrer Legal Blog and is reprinted with the author's permission. Most state workers' compensation laws, or cases construing them, allow the employer and its carrier to waive its right to subrogate against a third party that caused or contributed to an employee's injury. The purpose of a subrogation waiver is not well understood and is a subject of some confusion in the marketplace. Most frequently, contracting parties agree to contractually require the inclusion of a waiver of subrogation endorsement in a workers' compensation policy simply because the requirement is contained in the form contract, and has been for many years. On other occasions, the requirement is included in the belief that such a waiver will provide some protection or immunity from lawsuits filed by employees of other subcontractors. Unfortunately, an effective waiver of subrogation does not prevent a subcontractor's employee from suing the contractor. It only prevents the subcontractor's workers' compensation carrier from initiating a third-party subrogation action, seeking reimbursement out of a third-party recovery obtained by the employee, and/or taking advantage of a future credit. This deprives the small subcontractor of a subrogation recovery and the positive effect such a recovery would have on its risk modifier and future workers' compensation premiums. In addition, the subcontractor pays an additional premium to have the endorsement appended to the insurance policy. This premium is often 5% to 10% of the manual premium developed with the project/contract for which the waiver is provided, or more. Frequently, the only ones who benefit from a waiver is the employee and the personal injury attorney he or she has hired, who are then allowed to receive a double recovery if the worker's compensation lien does not have to be repaid to the employer or its compensation insurer. The contractor against whom subrogation is waived doesn't benefit since the employee can still sue for personal injuries. For all the harm the misunderstood waiver causes, employers and/or workers' compensation carriers continue to pay unlimited medical expenses and/or indemnity benefits for the life of the employee, rather than receiving a statutory future credit which would positively affect the employer's experience modifier. It increases the cost of doing business in every state in which waivers are allowed. 46

written by Gary L. Wickert, J.D.

Why waivers of subrogation are requested is a question that results in blank stares and shoulder shrugs. Risk managers want them because they were in the previous contract their company entered into. Subcontractors further down the food chain request them because somebody else required it as a condition to being awarded the contract. Owners and general contractors insist on them because they feel they are buying protection at some level, perhaps believing it will prevent the employees of subcontractors from suing them for injuries received on the project. Nobody knows why they are required—it's just the way things have always been done. As is true for so many aspects of human nature, when asked why something is done, one of the more surprising things to hear from educated, highly competent people is, “We've always done it that way." They simply cannot explain the rationale— they only know that it would be worrisome at some unknown level to deviate from that norm. This phenomenon is reminiscent of a 1967 learned response experiment by researcher G.R. Stephenson involving rhesus monkeys. Five monkeys are placed in a large cage. Inside the cage, a banana is hung on a string and a set of stairs is placed under the banana. Soon, a monkey will go to the stairs and climb toward the banana. As soon as he touches the stairs, researchers spray all the other monkeys with cold water. After a while, another monkey makes an attempt with the same result… all the other monkeys are sprayed with cold water. Pretty soon, when another monkey tries to climb the stairs, the other monkeys will try to prevent it. Now, the cold water is put away. One monkey is removed from the cage and replaced with The Tennessee Insuror


Underway with peace of mind. More than a watercraft, it’s your client’s free spirit. You need to make sure that it’s properly covered. Martin & Zerfoss gives you access to the coverages and experts your agency needs to protect your affluent clients and the things they love. From mega yachts and exotic vehicles to high-end collections like wine and art – let M&Z help you protect your clients and grow your agency.

Invitation Join Martin & Zerfoss and CHUBB for a watercraft insurance seminar, 70’ motor yacht tour and special food and drink offerings. Scottie’s on the River Monday, October 21 Insurors 126th Annual Convention register online now at insurors.org

The Tennessee Insuror

chubb.com/expectmore martinzerfoss.com

47


a new one. The new monkey sees the banana and attempts to climb the stairs. To his shock, all the other monkeys assault him. After another attempt and attack, he learns that if he tries to climb the stairs he will be assaulted. Another of the original five monkeys is replaced with a new one. The newcomer goes to the stairs and is attacked. The previous newcomer participates in the punishment with enthusiasm, because he is now part of the “team” and has learned the rule but has no idea why it is the rule. Soon all five monkeys don’t know why they aren’t permitted to climb the stairs and they don’t know why they are participating in the assault on the new monkey who tries to do so. Like the monkeys in the experiment, companies who insist on waivers of subrogation in their contracts do not know why they do so, and companies forced to ask their workers’ compensation carrier for a waiver endorsement do not understand the effect such a waiver will have on their workers’ compensation insurance premiums just a few years later. The devasting future cost of the waiver that benefits only the employee and a trial lawyer is not fully appreciated until it is much too late. We can attempt to answer the question that has no satisfactory answer. With such questionable value, why are subrogation waivers routinely required in contracts? There are many culprits. General liability insurers look favorably on companies that obtain waivers from their subcontractors. It is a fairly standard question on general liability applications and the right answer can affect the insurer’s appetite for the risk and the premium charged. Requesting waivers has also become a “best practice” for brokers, insurance advisers, and risk managers. Few are willing to have their competence questioned because they failed to follow an industry norm – even if the norm is largely pointless and about as well understood as why the monkeys attack one another when they approach the ladder. Whether or not a waiver of subrogation is valid depends on many variables, including the existence of a valid waiver of subrogation endorsement in the worker’s compensation insurance policy. If the waiver is valid, the question which naturally arises is precisely what is being waived: 1. Workers’ compensation statutory right of subrogation (e., the right of the carrier to sue the tortfeasor to recover its past lien)? 2. Right to reimbursement of its statutory lien from any recovery made via settlement or verdict by the employee? 3. Right to a future credit for any amounts recovered by the employee? Waivers of subrogation are like onions, with many layers which must be peeled back before an employer or its subrogated workers’ compensation carrier can definitively write off any subrogation and/or reimbursement rights. An article on the subject can be viewed at https://bit.ly/2m4UGzY A typical waiver endorsement found in a Texas workers’ compensation policy looks like this: 48

Other states have other waiver forms, like Form WC 00 03 13 above. The very terms of the above endorsement refer to waiving “the right to recover our payments from anyone liable for an injury covered by this policy.” It indicates that the carrier will not enforce this right “against the person or organization named in the Schedule.” This language suggests that the workers’ compensation carrier is agreeing to waive the first of the three above-referenced rights granted by a state’s workers’ compensation subrogation statute – viz., the right to sue the tortfeasor – but not the other two rights, including the right to be reimbursed out of any recovery the employee eventually receives from a settlement or verdict with the tortfeasor. Not all states agree with this interpretation, and the actual effect of a valid waiver of subrogation varies from state to state, with most states still not having decided one way or the other. Because most states have not developed a rule regarding the full effect of a valid waiver of subrogation endorsement in a policy, an argument should be made that the right of subrogation is waived, but not the right to reimbursement or the right to a future credit. To see a chart by MWL on the laws in all 50 states regarding whether a state allows such waivers and the effect such a waiver has if it is enforceable (Tennessee does per T.C.A. § 506-112) visit https://bit.ly/2msOJgH About the Author Gary L. Wickert is an insurance trial lawyer and partner with the firm of Matthiesen, Wickert & Lehrer, S.C. He has 35 years of litigation experience and is regarded as one of the world’s leading experts on insurance subrogation. He is also the author of several subrogation books and legal treatises and is a national and international speaker and lecturer. u The Tennessee Insuror


Workers' compensation insurance for contractors, construction companies, home healthcare, restaurants and additional select business segments.

Doing business in: AL, AR, GA, IN, KY, MI, MO, NE, NC, OK, SC, TN and VA

Learn more at www.midsouthmutual.com The Tennessee Insuror

49


For light manufacturing, you’ve got it made

with EMC.

EMC offers comprehensive coverage tailored to the needs of 98 different types of light manufacturers producing everything from buttons to bread to electronic components. This line offers optional coverage for manufacturers and delivery errors or omissions, plus employment practices liability. Certain coverages are even bundled automatically — meaning whatever your clients make, EMC makes insuring their businesses easier.

Count on EMC ® to make light work of light manufacturing coverage.

www.emcins.com ©Copyright Employers Mutual Casualty Company 2018. All rights reserved.

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The Tennessee Insuror


Meetings Fall (and Meetings) Are in the Air Insurors 126th Annual Convention For the first time in 25 years, Insurors will return its host location for the convention to Chattanooga. Our 126th Annual Convention will take place October 19-22 at the beautiful new Westin downtown. We are excited to return to the city as many changes have taken place and a vibrant downtown community has been developed. We have many great events planned to take advantage of the city. Register online or get more information now at https:// w w w.insurors.org/IOT/Convention/IOT/Convention/ ConventionHome.aspx We will also have a special room rate at the Westin, and those details will be released soon so that you may make your reservations. For questions or any additional information, please contact Daniel Smith at dsmith@insurors.org or 615.515.2601.

Level Up Agent Summit January 14-15 Big "I" is hosting their inaugural business and inclusion event taking place on January 14-15 in New Orleans. The Summit will bring independent agents, association leaders, carriers and other industry representatives together to learn key business strategies to enhance agency growth, innovation and sustainability through diversity and inclusion. Featured topics include sales, agency operations, leadership, marketing and technology. Find out more information or register now by visiting https:// www.independentagent.com/events/pages/diversity/ default.aspx

Agency Nation Elevate 2020 in Nashville Agency Nation, the agent marketing and branding program of TrustedChoice.com, will hold their annual "unconference" at the Renaissance Hotel in downtown Nashville on May 31 June 2. What is it? Elevate 2020 is 800 agents, agency owners, carriers and the most indie-friendly insurtechs, all coming together to fuel the future of insurance. Featuring top keynote speakers and revolutionary breakout sessions, this will be "can't miss" event for future-facing agents. Please visit www.elevateconference.com for more information. u The Tennessee Insuror

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

1. Privacy Rights Clearinghouse: Chronology of Data Breaches

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

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Your customers deserve the best PROTECTION. RLI Personal Umbrella Policies are DIFFERENT.

Member Tips Use RLI Declination Forms to Document and Sell Utilize These Custom Forms at Your Agency The Big "I" Umbrella program RLI declination forms can provide an avenue for documentation and a way to generate new sales for your agency. The forms are a great tool as part of your conversation about the importance of personal umbrella and home business insurance. If your client takes the coverage, you win! You've secured important protection for them, and a sale for your agency. If your client declines the coverage, and you document this in your file, you still win! Your agency has important protection in the event of an agency E&O claim. Download the customizable PUP declination form to document that you've offered umbrella coverage in your client files, which offers: • • • • • • • • • •

Limits up to $5 million available ($1M in NM) Excess UM/UIM available in all states The insured can keep their current homeowner/auto insurer New drivers accepted - no age limit on drivers Up to one DWI/DUI per household allowed Auto limits as low as 100/300/50 in certain cases Competitive, low premiums for increased limits of liability Simple, self-underwriting application that lets you know immediately if the insured is accepted E-signature and credit card payment options Immediate coverage available in all 50 states plus D.C.

Download the customizable Home Business declination form when discussing potential home business risks with your clients. Top business classes for this market include:

They stand alone. RLI, A+ rated by A.M. Best, has over 30 years of experience providing affordable personal umbrella coverage - so your customers can protect their hard earned assets. CONTACT Stephen Holmes sholmes@insurors.org 615.515.2609

• • • • • • • • • •

Residential Inspection Services Teacher/Tutors Photographers Accounting Services Bakers Computer Consultants Interior Decorating Jewelry (Costume) Art Gallery/Art Studio Crafts

Visit www.independentagent.com/RLI and www.independentagent.com/homebusiness to download the forms from the right hand menu. Simply add your agency name to the bottom of each form using the PDF form field. u


Directory of Advertisers Advertiser

Phone

Website

Page

ACUITY (920) 458 - 9131 www.acuity.com 15 AmTrust North America (877) 528 - 7878 www.amtrustfinancial.com/tnq1 8 Applied Underwriters (877) 234 - 4450 www.auw.com/us 2 Arlington/Roe (800) 878 - 9891 www.arlingtonroe.com 7 Bailey Special Risks, Inc. (800) 768 - 7475 www.bsrins.com 17 Beazley Cyber (615) 515 - 2609 www.insurors.org 51 Berkley Southeast Insurance Group (615) 932 - 5508 www.berkleysig.com 16 Berkshire Hathaway Guard Insurance Cos. (800) 673 - 2465 x4567 www.guard.com/apply 34 Builders Mutual (800) 809 - 4859 www.buildersmutual.com 33 Delta Dental of Tennessee (888) 281 - 9396 deltadentaltn.com 42 Donegal Insurance Group (888) 640-5840 www.donegalgroup.com 22 EMC Insurance (800) 447-2295 www.emcins.com 50 ePayPolicy (844) 372-9300 www.epaypolicy.com 52 FCCI Insurance Group (800) 226 - 3224 www.fcci-group.com 30 Genesee General (800) 282 - 8755 www.geneseeins.com 41 Harford Mutual (800) 638 - 3669 www.harfordmutual.com 45 Imperial PFS (859) 630 - 7369 www.ipfs.com 44 INSBANK (866) 866 - 4268 www.insbanktn.com 11 J.M. Wilson (800) 595 - 0063 www.jmwilson.com 43 Keystone Insurers Group (800) 416 - 5498 www.keystoneinsgrp.com 40 KNK Compliance Services (615) 375 - 7419 www.knkcompliance.com 19 Markel Specialty (800) 431 - 1270 www.markelcorp.com 26 Martin & Zerfoss + Chubb (615) 297 - 8500 www.martinzerfoss.com 47 MidSouth Mutual Insurance Co. (844) 438 - 6642 www.midsouthmutual.com 49 The National Alliance (800) 633 - 2165 www.scic.com 55 National Security Group (800) 239 - 2358 x213 www.nationalsecuritygroup.com 33 Nationwide Insurance (423) 927 -2060 www.nationwide.com 20 Penn National Insurance (800) 395 - 0518 www.pennnationalinsurance.com 56 Preferred Property Programs (888) 549 - 2465 www.umbrellaprogram.com 17 RLI PUP (615) 515 - 2609 www.insurors.org 53 RT Binding Authority (615) 538 - 4070 www.rtbinding.com 39 Securerisk (770) 723 - 8096 www.securerisk.com 38 Stonetrust Commerial Insurance Co. (800) 311 - 0997 www.stonetrustinsurance.com 26 Strickland General Agency (800) 825 - 5742 www.sgainga.com 34 Summit Holdings (800) 971 - 2667 www.summitholdings.com 13 Swiss Re Lawyer's Professional Liability (630) 213 - 9952 www.bigimarkets.com 36 Titan Web Marketing Solutions (615) 890 - 3600 www.titanwms.com 24 United Home Insurance (800) 476 - 0723 www.unitedhomeins.com 49 West Bend Mutual Insurance Co. (800) 236 - 5010 www.thesilverlining.com 9 Work at Home Vintage Experts (646) 807 - 4372 www.wahve.com 52

ARE YOU THE BIG

FISH

?

OCTOBER 19-22 • WESTIN CHATTANOOGA VISIT INSURORS.ORG FOR REGISTRATION AND MORE INFORMATION


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

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

Rubles CIC

2

CISR Introductory Series

3

4

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

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

Rubles CIC

CISR Introductory Series

CRM

Dynamic Series

WTH Seminars

CSRM CPRM

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

1

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

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

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

2

Dynamic Series

CRM

WTH Seminars

3

1 CSRM

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

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

CPRM

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

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

2

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


Helping people feel secure.

Since 1919. A group of Pennsylvania farmers founded our company in 1919 to provide affordable workers’ compensation insurance.

Helping Today, Penn National Insurance sells property-casualty insurance in 11 states. Just like those farmers who envisioned an insurance company that could meet their needs better than any existing insurance carrier, we look to the future of our company and make decisions that center around:

people feel secure.

All with one focus in mind: to help people feel secure and make life better when bad things happen.

• Providing superior customer experience • Responsive product offerings to fit the changing market needs • Staying financially strong

PennNationalInsurance.com

Profile for Insurors of Tennessee

The Tennessee Insuror Sep/Oct '19