Suffolk Big Eye Nov/Dec 2011

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SUFFOLK Big Eye INDEPENDENT INSURANCE AGENTS & BROKERS OF SUFFOLK COUNTY

It Is About Time Editor

Don Hester nnn

by Don J. Hester

Years ago, when the modeling companies began terrorizing our carriers with tales of catastrophe from Hurricanes on Long Island, as a County Association we surveyed our members for ways to alleviate the potential windstorm losses. That was back in the 1990’s One solution that was mentioned and has been suggested a few more times as an alternative to the massive percentage deductibles on the main house dwelling centered on doing away with coverage from windstorm damages to “outbuildings” from our own loss experience we know that fences sheds etc are prone to wind storm total loss far more often than the main dwelling.

A recent release from the Florida carrier came up with this brilliant idea too, . Quoting from a recent Insurance Journal article 11/14/11 “Florida’s Citizens Cutting Back on Coverage which said ”Citizens Property Insurance Corp., in a message to agents, said it will no longer provide coverage for most structures beyond the main residence. Excluded from the coverage will be screen porches, carports, pool enclosures, and patios that are not built out of the same material as the main residence.

Also on the list are tiki huts, gazebos or other similar buildings that are designed to be open to the weather. Any structures that have a roof or wall made of thatch, lattice or similar materials are likewise excluded.”

It Is About Time cont’d How many of your clients would be willing to drop coverage’s for similar items in return for a reasonable 1000 or 2500 hurricane deductible?

The last time we suggested this the suggestion came from a bunch of Suffolk agents.

What do we know about underwriting?? Now the same idea is coming from a Carrier that really writes windstorm in a REAL hurricane susceptible area. Perhaps we need to resurrect our suggestion to the people who write coverage’s and regulators .While offering a deductible buy back is one existing way to solve the high percentage deductible, perhaps we need to push this too?

The Members of the IIAB Suffolk Board of Directors Wish all our Readers a very healthy and Happy New Year!

Board of Directors VICE PRESIDENT

TREASURER

SECRETARY

DAVID M. BORG, CPCU, CIC, ARA, CRM dmborg@borgborg.co

PAULETTE KATZ,

John V. Stype, CIC

insurance@cunningh

m

amagency.com

IMMEDIATE PAST PRESIDENT RUSS VOLLMER

CIC jstype@nsainsure.com Russ.Vollmer@vollme radairagency.com

Directors JOANNE BENTIVEGNA, CIC, CRM joanne.bentivegna@peoples.com

ERIC KEIFFERT, CPCU ekeiffert@hometowninsurance.com

DAVID H. BORG, CISR dhborg@borgborg.com

Michael J. Romeo ll, CIC mjromeo@industrialcoverage.com

RICHARD DE LA SOTA, CPCU rdelasota@mrwgroup.com

AARON STEIN, CPCU, CFP aaron@nortonsiegel.com

JOSEPH A. GUNDERMANN, AAI jgundermann@gundermann.com

Publication Staff EDITOR: Don Hester PRODUCER: Aaron Stein NEWSLETTER COMMITTEE: Aaron Stein, Joanne Bentivegna, David H. Borg, Pat Calvert Eric Keiffert and Jeanne Abatelli.

AD SALES/SPONSORSHIPS: Jeanne Abatelli - injeanious1@verizon.net

IIABSC Calendar

FOR A COMPLETE SCHEDULE Log on to www.iiabny.org Highlight the ‘Education’ link and select ‘Education Calendar’.

Registration forms are also available on line, or call IIABNY’s Education Dept. at 1-800-962-7950.

Please mark your calendars for L Day 2012 which will be held in Albany on January 30th & 31st.

Key topics for discussion will include: Producer Compensation Disclosure, Coastal Market Availability & Affordability, Labor Law Reform, Health Insurance and Licensing Issues, just to name a few.

Hopefully you will be able to join us. Please use the link below to go to IIABNY’s website to sign up.

CLICK HERE FOR MORE INFORMATION

Joe Gundermann

the Editor’s Feedback Editor

by Don J. Hester

“TOO many Workers on the payroll and Not enough to do” That was my proposed editorial headline. I had a day off due to the Christmas Blizzard It led to my putting down some notes that I felt deserve comment: Federal EPA is proposing to regulate dust. Not dust from some inside a manufacturing,facility but farm dust from farmers planting and harvesting. The US Circuit Court of Appeals for Washington DC refused to exempt farmers for farm dust emissions . Do smoke and mirror emissions count?

Don Hester nnn

Here on the local scene some have noted that State Officials want agents to comment on who pays them and how much. If asked the agents must go into great detail .

Judging by some recent criminal charges that might be an interesting area of concern to some taxpayers if the legislators themselves were considered subject to the same requirements! But it isnt fair to paint all of them with the same brush.

Another topic: Just why don’t the legislators who represent us and supposedly understand our needs feel they should not operate under the same rules and regulations? Would they

the Editor’s Feedback con’t

by Don J. Hester be more sensitive to our problems if they faced the same daily concerns. What about health care costs , co pays ,donut holes and availability?

What is a lulu? Instead of finding new and ingenious ways to add to our tax burden perhaps it is time to reduce it. I do not plan on taking my cell phone with me when I travel out of country next month . As a matter of fact , it will not be used at all. I will not be using the MTA ..but the phone bill will still charge for the MTA usage. . What is wrong with this picture?

What does the State of New York expend on legislator benefits for these part time officials ? Could they or should they be paying for it from their own funds, not ours?

Someone sent me an e mail proposing that all elected officials pay their own health costs and not be given a free ride. I was an elected State Official for over thirty years . As a Fire Commissioner I served without pay.. although on the books I was allocated 100 a year so I would be eligible for compensation if I was injured on the job. Carried my own health insurance too.

Registration Now Open!

Join your fellow agents and favorite carriers at IIABNY’s Capital Event – January 30 & 31, 2012 in Albany, NY. Here are three reasons you can't miss it: 1.

Face time with your company reps and peers at the company meet & greet, cocktail party and dinner,

2.

An exclusive preview of the cutting-edge industry initiative focused on digital marketing (Project CAP), and,

3.

The chance to go face to face with your representatives in Albany at L Day to discuss the issues critical to independent agents and brokers.

Visit www.iiabny.org/capitalevent to learn more, or check out Paul Banuski’s Video Diary series for a unique look at why you should attend Capital Event.

Important Links: • • • • •

Hotel & Travel Info.(Hotel deadline is DECEMBER 30) Legislative Briefing Webinar with Barrett & Associates, January 10, 2012 ASCR of the Year Online Nomination Form Trusted Choice Agency of the Year Online Nomination Form Joel S. Pollack Young Agent of the Year Award Nomination Form

IIABSC COMMITTEES 2011 – 2012

WE INVITE MEMBERS TO JOIN A COMMITTEE! Please Contact the committee chair or Pat Calvert for further information.

Audit Committee Budget & Finance Communications Committee

David H. Borg and John Stype.

Paulette Katz (Chair), Earl Eaton and Russ Vollmer.

Aaron Stein (Chair), Joanne Bentivegna, David H. Borg, Eric Keiffert and Jeanne Abatelli.

Sub-Committees

Downstate Representatives Scholarship

Public Relations Speakers Bureau Suffolk Big Eye Technology & Web site

Earl Eaton and Rich de la Sota.

Rich de la Sota (Chair)

Legislation/InsurPac

Joe Gundermann (Chair), John Stype, Tom Crowley, Don Hester and Jeff Rehm Coastal Task Force Legislative committee and Jim Sutton Meetings & Programs David M. Borg (Chair) + Communications Committee Meeting Reservations NextGen Disaster Preparedness Task Force Advertising & Sponsor Sales 2012 Golf Outing 2012 Installation

plus Jim Karras and Pat Calvert.

Jeanne Abatelli David H. Borg and Mickey Romeo (co-chairs) John Mulvey and Mike Romeo.

Jeanne Abatelli.

David M. Borg and Joe Gundermann (Co-chairs) Earl Eaton, David M. Borg, Jeanne Abatelli and Pat Calvert.

Product Index Call 800-962-7950 for more information Insurance for Your Clients - ext. 225 for RLI • ext. 232 for all other Unsupported Work Comp RLI Home Business Insurance Policy RLI Personal Umbrella Policy The following products are available via Big “I” Markets

Affluent Personal Lines Bonds Claims Adjuster E&O Commercial Builder’s Risk Commercial Package Policy Community Banks Event Liability Financial Services E&O Fine Dining Restaurant Package

Insurance for Your Agency - ext. 233

Flood and Excess Flood Insurance Program Habitational Markets Non Physicians Medical Malpractice Non-Standard Homeowners Outdoors Markets Personal Watercraft Private Company D&O & Crime Real Estate E&O Recreational Vehicles Restaurant Package (24-hour, bar/tavern family and fine dining) Stand Alone Boats and Yachts Technology Consultant E&O Travelers Wrap + Package

E&O TLC - ext. 247

Employee Benefits: AD&D, Group Life, Health, LTD Dental (Contributory and voluntary) Vision (Contributory and voluntary) Employment Practices Liability Insurance (EPLI) Errors & Omissions – Westport, Fireman’s Fund, Other Retirement Services

Audit Options • E&O TLC Agency Audit (all insureds) • Agency Shield Program (Swiss Re insureds only) Customized Training / Consulting E&O Loss Control Seminars Forms Reference Material

Business Resource Directory - ext. 232 ACORD Advantage

InsurBanc

Subscription for up-to-date, print-on-demand ACORD forms

A bank that specializes in servicing the insurance industry

AgentQuote.com

Leo Eisner Promotional Products

Web site development program

Promotional products

Agility Recovery Solutions

Ovation Payroll

Disaster recovery and business continuity solution

“Agent Friendly” Payroll provider solution

Big "I" Best Practices

StaplesLink

Benchmarking tools and data

Discounted office supply program

Caliper Profiles

Third Eye Technologies

Personality assessment and job matching tool

Provides back up and business continuity services

docStar

Trusted Premium Funding

Document management and paperless processing

Premium finance provider

Exam Simulator

Virtual Risk Consultant

P/C or Life/Accident & Health state exam simulations

Online sales and service resource

FedEx

WAHVE A cost-saving remote staffing solution for agents & brokers

Shipping savings program for Big “I” members

Hertz Car Rental Special savings and upgrades on car rentals from Hertz

Education - ext. 228 Approved Testing Center Designations: AAI, ACSR, AINS Ed Calendar Essentials for CSRs Tailored Training Virtual University Webinars & Web CE

News - ext. 226 “Ask Tim” vidcast E-newsletters: IIABNY Insider, in the Classroom, Member Benefits Update, Capitol Report, E&O Report IIABNY LIVE! weekly online show Social media (Facebook • LinkedIn • Twitter) The Situation Room

w w w.iiabny.org

Wrong Again!!

by Jim Karras, AAI, Past President Several years ago one of our associations meeting topics was to present a consultant to us. He was going to advise us on the trends and what we can expect our business to look like on the agency side in the future.Our meeting was well attended with about 80 of our members present.

After a few minutes I immediately began to see what this guys advice was going to be.He was sounding the alarm that if your agencies revenues were less than one million dollars you should immediately sell or merge your agency as the chances of you surviving was slim.l was absolutely astounded and judging on some of the faces around me they were

too. My astonishment soon turned to anger. Just who was this "expert' who just told with the exception of a few agents in the room that we were all going to go out of business?

He probably was a former salaried employee who never had to pay the bills or make payroll as an independent business person.He just showed up everyday and collected a paycheck every week.

Now he was getting big fees and had become an "expert" Weff, Mr. "expert" according to Feb 2011 lA Magazine, four thousand new independent insurance agencies in two years, New agency account for 11% of all independent agencies today. Just another example of how some high paid, lacking in real knowledge person can not only be wrong but VERY wrong. Sound familiar??

IIABNY Update 4th Quarter 2011

By Jim Sutton, Regional Director

A few weeks ago IIABNY had its quarterly meeting in Syracuse at the Hotel Genesee. This one day meeting discussed a variety of important and ongoing issues for New York Independent Agents and Brokers.

Discussions included the after effects of tropical storms Irene & Lee and the impact to our area. While problems were few on Long Island, upstate areas were badly damaged.

Mostly flooding claims but some wind related damaged was encountered all over the state. We looked at claims service for both wind and flood related claims. There were some concerns about the handling of flood claims.

On Long Island, we dodged a bullet, but should consider this a “dress rehearsal” for future storms.

We spoke about the fallout from Workers Compensation Self Insured Trusts and the problems associated with these trusts as they wind down claims. Many members of defunct trusts will continue to have ongoing obligations to the system.

We will be making a push for increased attendance at L-Day which will be on January 30th & 31st, 2012. We want to pursue a number of legislative issues with our representatives. This year’s event will include a 2012 Industry forecast by Dr. Robert Hartwig PH.D, CPCU, and President of the Insurance Information Institute and also a presentation about a new industry initiative to increase digital marketing and online sales called CAP (Consumer Agent Portal). This is a public facing online gateway that allows consumers to compare quotes from multiple independent carriers and then connect with a local independent agent to service their insurance needs.

We need the support of all members to attend this important event. Please do not rely on someone else to speak to your legislative representative. The other competing groups will only speak for their side of the issues and never mention concerns we have.

Issues such Health Insurance reform, Producer Compensation Disclosure, Property

coverage availability, standardization of hurricane triggers and more need our support so our voices can be heard in Albany.

Other issues discussed included Certificates of Insurance wording problems, State Insurance Fund practices, windstorm triggers, sales inducements and tie in sales, commercial lines modernization, subrogation on uninsured motorists claims, the transition for the Department of Financial Services, the health insurance exchange, Trusted Choice, diversity programs for attracting minority owned agencies and InsurPAC (National) and IAPAC (State) political action committees.

As independent Insurance Agents and Brokers, we face many challenges in running our businesses. IIABNY is here to help you with any agency related issue. If you are experiencing any problems and need a resource for information on how to resolve them IIABNY has the information to help you. Please consider that for most of us our agencies are our biggest asset. Why not protect your future by becoming more involved? Best wishes for a successful and prosperous 2012!

Affiliated with IIABA Young Agents The IIABNY Next Generation Insurance Professionals (Next Gen) sponsors training, seminars, and conferences across the state.

Our members also have the opportunity to participate in national Big “I� Young Agents events.

Exciting & innovative sales and marketing training

Management skills that allow your career to grow

Valuable leadership development

Networking & social events with other professionals

Next Gen is open to individuals under 40 years old or new to the insurance industry who are interested in becoming more innovative and effective salespeople, creating lasting business relationships, and joining the ranks of insurance industry leaders.

Membership is open to all individuals working in or supporting the Independent Agency System and actively developing a career in the insurance industry. It is not limited to agents only; it is open to any one involved in or supporting the insurance industry including all agency and company personnel.

Membership is Free! Join today by filling out the following form and returning it to: Kathy Lawler klawler@iiabny.org Fax: 888-432-0510

Monica Rayder mrayder@iiabny.org Fax: 888-432-0510

Name: _____________________________________________________ Agency: _________________________________________ Address: _____________________________________________________________________________________________________ Position: ___________________________________________________ Year Born: ________________________________________ E-mail: _____________________________________ Phone: ____________________________ Fax: __________________________

NY Comp and the Employer

The first thirty days after an accident report.

by Theodore J. Ronca, Esq. Aquebogue, NY (631) 722-2100 The role of the employer after an accident is vital. Unfortunately, it is a misconception that it consists solely of filing a report (C-2) with the carrier and Workers Compensation Board within 10 days. That might be the barest minimum legally possible, but it is rarely adequate for anyone involved in a claim – and certainly not for the employer and employee.

An employer trying to complete the Board’s prescribed form for reporting an injury is immediately confronted by puzzling requirements. Many of the questions are for small detailes which are never part of a comp adjudication (the employers industrial code) while others allow a woefully small amount of line space for what might require a lengthy explanation (how did the accident occur). Other parts of the form seem to assume that an accident muyst have occurred, even though many an employer is equally certain that it did not.

(Attach additional documents to the C-2, where necessary to explain fully what happened.)

The employer should realize that it’s role is much larger than a single C-2 form. To assist in the proper resolution of a claim (even though that someimes means a dismissal) the employer should be aware that they frequently have far more information than is requested.

The information may be forwarded to a carrier and the Board, taking care that confidential medical information may require special handling.

An employer should make the carrier aware of relevant information which it posses about the employee’s physical limitations at time of hire, so that these are not autromatically assumed to be a consequence of a new injury.

The employer can also list for the carrier known prior injuries, especially those resulting in a lawsuit or compensation claim. The employer can also list prior employers, with dates of work and name address and phone number of the employer.

The employer may have periods of absence due to illness or injury. These should be made known to the carrier.

Since a claim is being filed for medical disability, such information must be available to treating doctors and independent examiners.

The employer’s role also extends to maintaining a relationship with the employee. The law imposes upon the employer (not the carrier) the obligation to see that appropriate medical treatment is provided. Calling the employee to make sure that they are under care is entirely appropriate and much appreciated by the worker’s family.

The employer can also begin return to work measures. Asking the worker about the treating doctor’s opinion about possible return to work is not intrusive. In fact, it is essential.

Being involved means a lot more than the completion of a single form. Remaining an active presence results in faster adjudication, quicker return to work, less wage loss and fewer contested issues. not like to be treated to pizza for a job well done?

Of course, there is no guarantee of success with any plan of action. However, why not roll up your sleeves and give it your best the old fashioned way? In my humble opinion, there is much to gain and nothing to lose by giving your best effort. Consider it a blessing when one of your Agents calls you at night during the ballgame to discuss a problem with their commission pay. And don’t forget to smile – a little hard work never hurt anyone.

Anyway, got to go – One of my agents is texting me about a problem and I need to deal with this right now. Happy marketing (LOL)!

Around the Room at Our Holiday Party!

November 30, 2011

Season’s Greetings

Happy Holidays

Tom Crowley presented The Camilla G. Belser Memorial Insurance Company Person of the Year Award to Robert Zak, President & CEO, Merchants Insurance Group.

Don Hester thanked Sgt. Michael Umbreit (center) and Staff Sgt. Gilbert Nevarez for their service to our country on behalf of us all.

Trisha Dean of Morstan General Agency was the lucky winner of $380 from the 50/50 Scholarship fund drawing.

the Advertisers INSURANCE COMPANIES & MARKETS Excise Bond Underwriters John L. Comeau 15 Maiden Lane, Suite 800 New York, NY 10038 Tel: 212-363-2950 Fax: 212-425-2539 Magna Carta Companies Wanda Napolitano 1 Park Avenue New York, NY 10016 Toll Free: 1-888-ONE PARK Phone: 212-591-9500 Fax: 212-591-9621 NIF Group Michael Orlando, Nancy Williams 30 Park Avenue Manhasset, NY 11030 Phone: 516-365-7440 Fax: 516-496-7356 Email: nwilliams@nifgroup.com www.nifgroup.com Quaker Special Risk Camille Windler 226 5th Avenue, 4th Flr. New York, NY 10001 Phone: 516 428 0716.

Fax: 732-223-9072 Email: cquinones@qsr-insurance.com Brian Botwinick Eatontown, NJ Toll Free: 800-447-4180 Email: bbotwinick@qsr-insurance.com

INSURANCE SERVICES Pryor Personnel Agency Patricia Pryor Bonica 147 Old Country Road Hicksville, NY 11801 Phone: 516-935-0100 Fax: 516-931-7842 Email: ppryor1578@aol.com

RESTORATION SERVICES Belfor Property Restoration Gary J. Alexander 60 Raynor Ave. Ronkonkoma, NY 11779 Phones: 631-471-3131 x121 Fax: 631-471-2905

the Sponsors Holiday Meeting Sponsor Adirondack Insurance Exchange/Tower Group Companies D.C. White Agency Interboro Insurance Company Kingstone Insurance Company Merchants Insurance Group MetLife Auto & Home Morstan General Agency Narragansett Bay Ins. Company Progressive Servpro of Port Jefferson Total Restoration Zurich Small Business Please remember these companies support our association, please help support them whenever possible!

Adirondack Insurance/Tower Group Companies Michele Russo 3 Huntington Quadrangle, Suite 201S Melville NY 11747 Phone: 631-793-4909 Fax: 646-514-5852 Email: mrusso2@twrgrp.com

Interboro Insurance Peter Resnick 155 Mineola Blvd Mineola NY 11501 Phone: 516-248-1100 x 315 Fax: 516-746-1884 Email: PResnick@InterboroInsurance.com

D.C. White Agency Steven Shapiro 370 West Park Avenue Long Beach, NY 11561-3245 Phone: 516-431-9191 Fax: 516-889-1727

Kingstone Insurance Company John Reiersen, CPCU 15 Joys Lane Kingston, NY 12401 Phone: 845-340-8366 Fax: 845-340-8393 Email: jreiersen@kingstoneic.com

the Sponsors con’t Morstan General Agency, Inc. Al Eskanazy, Bob Birner 600 Community Drive PO Box 4500 Manhasset, NY 11030-4500 Phone: 516-488-4747 Fax: 516-437-5050 Progressive Francine Gabreluk Phone: 1-800-274-4055 x54445 Fax: 1-888-316-0107 Email: francine_gabreluk@progressive.com Merchants Insurance Group Eric Feit 1393 Vets Memorial Hwy Hauppauge Ny 11788 Phone: 631-366-3355 Fax: 631-366-6727 Email: efeit@merchantsgroup.com MetLife Auto & Home Mary Mondrick Marketing Manager 30 Cheryl Drive Shoreham NY 11786 Phone: 631-821-7206 Fax: 631-821-7258 Toll Free: 866-257-9377 Email: mmondrick@metlife.com

Narragansett Bay Insurance Company Donna Doyle Phone: 516-352-2764 Fax: 516-352-2793 Email: ddoyle@nbic.com Servpro of Port Jefferson Risa Kluger 525 Route 112 Port Jefferson Station NY 11776 Phone: 631-476-5300 Fax: 631-473-5302 Email: rkluger24@aol.com Total Restoration Dennis Lombardi 285 Post Avenue Westbury NY 11590 Phone: 516-333-5333 Fax: 516-333-5489 Email: dennis@totalrestorationinc.com Zurich Small Business Lorraine Bohn 46 Canterbury Drive Hauppauge NY 11788 Tel: 631-584-5293 Fax: 631-584-5167 Email: lorraine.bohn@zurichna.com

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SUFFOLK Big Eye INDEPENDENT INSURANCE AGENTS & BROKERS OF SUFFOLK COUNTY

IIABSC 150 Dartmouth Dr. Hicksville, NY 11801

Contact Us: info@suffolkagents.com