The Texas Connection October 2014

the

TEXAS CONNECTION TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

PROFESSIONAL INSURANCE AGENTS OCTOBER 2014

In This Issue •

Why Customers Leave

•

Retiring Baby Boomers?

•

Meet the Member

•

Becoming Paperless

•

Young Insurance Professionals

•

Insuring College Students So long Big Tex… We’ll see you next year!

Tony Harper

In This Issue Presidents Corner ……………………………………… Page 3 Meet The Member …….……………………………… Page 5 Re*ring Baby Boomers

…....…..……………………. Page 6

Insuring College Students

…………………………… Page 8

Young Insurance Professionals

……………………… Page 8

Why Customers Leave ……………………………...... Page 9 Become a Paperless Producer …...…………….……. Page 10 Think About It …………………..……………………… Page 12 TDI Enforcement Ac*ons Current Events Our Partners

…….……..……………….. Page 13

……………………………...………… Page 14

……..………………..………………….. Page 16

Crossword Madness Texas Trading Post The Last Word

…….……………………..…….. Page 20

……………………………….…… Page 21

…………………………………....…… Page 26

Keep your kids & yourselves SAFE Halloween night… here’s my ps: 1. Take the kids to the Mall and let them go to the stores that par*cipate.

2. Some grocery stores par*cipate in handing out treats.

3. Go before it gets dark.

If you’ve made the decision to a=er go out a=er dark, here are a few safety points: Remember that kids get too excited to watch for danger so you have to be the one on alert!!

Be sure that costumes are designed so that kids can move around without tripping over them.

Hold hands if possible and stay on the sidewalk.

Keep all costumes as light and bright colored as possible. If a dark color is chosen be sure to use light colored tape to ensure that you and your child are easily seen.

(Con*nued on Page 26)

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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AGENTS WANTED! Aspera Insurance Services, Inc. is seeking Coastal Texas agencies to market our Manufactured Home product.

Homes will be wriDen through a non admiDed insurer assigned the financial Strength of A-(Excellent) by A. M. Best Company.

TARGET COUNTIES INCLUDE: Aransas, Calhoun, Cameron, Chambers, Orange, Jackson, Jefferson, Kenedy, Kleberg, Nueces, Refugio, Willacy and Southern Matagorda.

CONTACT: Marke ng Aspera Insurance Services, Inc. Phone: 804-289-1318 E: marke ng@asperains.com Aspera Insurance Services, Inc. is a licensed Surplus Lines Agency in Texas.

Doug Hill Hill Insurance Agency Ingram, Texas Doug Hill owns and operates his true ‘mom & pop’ insurance agency, just a stone’s throw from the Guadalupe River in Ingram, Texas. Doug is a mul*-faceted guy… he knows insurance, but he can tell you about gold mining in Venezuela, how to snap a chalk-line, or how to raise prize pigs… and much, much more.

When he’s not in the office, you will find him carrying on a long standing family tradi*on of passing out candy canes to most everyone he runs into.

His wife Shaleah is probably the finest sausage maker in the western world. Dinner at the Hill home is a las*ng memory.

There’s a famous landmark in the Kerrville area, that you may have seen or heard of… it’s a ¾ scale replica of ‘Stonehenge’ the ancient druid construc*on just outside of Oxford. Well, Doug built this model as well as replicas of Easter Island statues. Before he became an insurance agent, he was a stone mason… and the model is truly something to see. Next *me you’re in Kerrville, there are three things you have to do. See LiDle Stonehenge, stop by Bernhardt’s and pick up some dry sausage s*cks, and then stop by Hill Insurance and say hello to your fellow member, Doug. All three will make you smile!

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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IS RETIREMENT A REQUIREMENT? When FDR linked social security with re*rement in the U.S. he adopted the re*rement age used by Germany, 65 years old.

The average length of life in the U.S. at that *me was 63 (When Germany adopted the 65 year old re*rement age, their average life span was 46). Today our average life span is more than a decade longer than it was in FDR’s *me and is s*ll going up.

The ques*on before us is, “How will our business lives change due to the extension of produc*ve lives of our insurance agency owners, most of whom are baby boomers?”

First, we must cover the crass truth. For those of us who come from gene*c stock that tend to die in their six*es and seven*es, the ques*on of re*rement is actually easier. If we have done well in our business and wish to spend quality *me with family and doing other things, re*rement is s*ll a viable op*on. Inter-genera*onal transfer of agencies, mergers and sales is s*ll an op*on that will be exercised by many agents.

However, we encounter a larger and larger number of agents each year who very reluctantly enter the re*rement pool.

They may have promised children, employees, and others that they would turn their companies over to new owners. Agency Consul*ng Group, Inc. is called in to value the agency and structure the change of management along with ownership.

But a growing number of agents express reluctance and resistance when the transi*on is about to occur. They have planned for re*rement but when re*rement faces them, they don’t really want to leave.

It’s Really Not the Money!

If you are an agent of re*rement age and find that you don’t have the assets to support yourself in re*rement – even with the value of the agency earning you interest in an investment -- then you may not be financially able to re*re.

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This is a simple analysis of assets vs. long term living expenses and we all should do this exercise. Call us (800-779-2430) if such an analysis is needed in your Perpetual Plan.

Most agents are aware that Agency Consul*ng Group, Inc. is a primary valuer of insurance agencies in the U.S. What you may not realize is that we actually counsel agents away from agency sales and transi*ons when their financial condi*ons prohibit their re*rement.

Most independent agents in the U.S. fall into two categories, those whose agencies provide them basic support for their families (it’s a job and a working income) and those whose agencies provide sufficient income to both support their lifestyle and sponsor investments for re*rement plans. You don’t have to be a liberal spender to fall into the basic support category. A large number of insurance agents earn substan*ally less than a six figure income during their produc*ve careers. Although their annual compensa*on may provide them sufficient income to support a family, few agents in this category can invest sufficient income in re*rement vehicles to con*nue their lifestyles past their produc*ve agency careers. If their agencies, themselves, cannot provide sufficient value to provide equivalent income streams a=er their re*rement, they may find that re*rement is simply not available to them.

These agents can s*ll perpetuate, sell or merge their businesses, but they have to con*nue to work simply to maintain their lifestyle. On the other hand, many agents have done an excellent job in their money management and, as a result, are certain that they can support themselves as long as their agency’s value provides sufficient addi*onal investment returns in the future. But what happens if you CAN re*re, but don’t want to?

If you are fi=y or fi=y-five, sixty or sixty-five or even 70 and s*ll have the energy and stamina to pursue the insurance business, you should have the op*on to sell and leave the business, but you should not be forced to leave it.

If we look at the number and quality of the people entering the insurance business in the last twenty years (our agency successors) we find that we haven’t enrolled the same quality or quan*ty of insurance professionals into the insurance industry than we did in the 1960’s through the 1980’s (the Baby Boomers).

That is not an accusa*on. That is a reality because those subsequent genera*ons simply had fewer members and those people had many more op*ons in career development than we did when we went to college.

How can we enjoy the benefits of our agency’s value but not leave it?

The answer is a mindset change that will permit senior agents to sell down their interest in their agencies but s*ll stay ac*ve in the business. Most buyers (except, in some cases, long term par*cipants in the agencies) desire the old owner to stay for some period to transi*on the customer and carrier rela*onships to the new owners. Many new owners would even welcome the con*nuing par*cipa*on of the old owners in service and rela*onship maintenance roles to maximize reten*on and earnings capacity. However, the keys to the reten*on of the old owners are the transi*on of decisionmaking roles, the level of ac*vity of the old owners and the compensa*on expecta*ons of the selling owners.

Make no mistake about this -- The main block for having old owners stay with their agencies a=er a sale is EGO. The old owner has been in control for decades. If his ego cannot stand the transi*on of decision-making to a new owner, he must either con*nue in an ownership role or he must leave the agency. And this means that those high-ego owners may never personally realize the value of their agencies. Selling the agency and s*ll retaining decision-making authority in the old owner is a recipe for disaster.

If, on the other hand, you can assume an “emeritus” posi*on and con*nue maintaining rela*onships with your clients while the new owner makes the decisions and operates the agency then you may have an on-going role in the agency that is both produc*ve and rewarding. Iden*fy a specific book of business that needs your par*cipa*on and the value of that role to the agency. The agency’s new owner will probably enjoy your ac*ve par*cipa*on in reten*on (and in growth) of the agency’s book of business. Iden*fy the appropriate value to the role and don’t expect a compensa*on level (and perks) equivalent to that earned while you were an owner. Your value should be equivalent to what you would pay to hire an experienced person to fulfill the role assigned to the selling owner—no more, no less. (con*nued on page 19)

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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YIPs Names New President

Covering a College Student’s Belongings If you are sending your child off to college this fall, you probably realize that your life is about to change. You might not realize that your insurance needs change as well. Here’s what you need to know about college students and insurance.

Take a peek inside a typical college student’s room: you’ll probably find a laptop, a smart phone, a television, a bike, clothing, jewelry and furniture. Altogether, most students bring thousands of dollars worth of property to school.

If your student is living on campus, her property is probably covered by your home owners insurance policy. However, most policies do not cover the property of students living off campus. In either case, you will want to make sure your child’s valuables are insured.

David Gorman, owner of Dallas based agency AmericoDirect Insurance has been elected to serve as President of The Young Insurance Professionals initiative of the Texas PIA. He brings with him the energy and commitment that won him the “David Almany - Volunteer of the Year Award” in 2014.

With many years experience running a multistore operation, David is equipped to offer young people interested in our business a unique perspective of the agency business and help YIPs achieve their objectives during the coming year.

The YIP’s incentive is to introduce young people to our industry with access to successful professionals to help them consider a career in the insurance business. In addition, YIPs will help smaller agencies achieve success by offering whatever practical help they need.

Their first project, the “Meaningful Education Series” will offer both continuing education and sessions with practical training for the day-to-day operation of a successful agency in today’s environment.

Student property insurance College students can buy insurance designed specifically to protect their personal property. This insurance has several aDrac*ve features: Low deduc bles: While homeowners deduc*bles generally range from $500$2,000, student policy deduc*bles can be (con*nued on page 17) THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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WHY CUSTOMERS LEAVE

1% Die 3% Move Away 5% Buy from Friends 9% Prefer our Compe tor 14% Judge all like business by one bad experience Congratula ons to Tony Marquez, the winner of the Kindle Fire HD tablet door prize at the DFW EZ CE & BBQ on October 1st.

68% Leave because of ONE employee’s in difference, rudeness or lack of service.

Check out the rates for the most cost effec ve method of keeping your message in front of your customers… professional insurance agents.

Ad Size

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Full Page

$200.00

$1,000.00

Half Page

$150.00

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Third Page

$100.00

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Quarter Page

$50.00

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Ques ons? Contact Joe Tipton at joe@piatx.org or (972) 862-3333.

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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What To Look For In A Tablet

By Steve Anderson, CIC Tablet devices like the Apple iPad and Motorola Xoom change how insurance producers interact with client and prospect informa*on; present insurance coverage proposals; and consume and share informa*on drama*cally. This trend will con*nue to accelerate and it is likely that many producers will see tablet devices as a “musthave” sales tool.

My first tablet device was a Motorola Xoom, purchased as soon as it became available. I began to see an increasing number of insurance agency personnel who brought tablets (mostly Apple iPads) to presenta*ons. And, my personal experience with the Motorola Xoom showed the tablet could be a great device for consuming informa*on. I le= my laptop at the office more and began to bring my tablet home with me.

One key to the success of tablets is the form factor and the ability to consume electronic content easily and have rapid access to key informa*on when you need it. The latest iPad is about the size and weight of a small magazine, yet it can hold hundreds of thousands of books. Unlike a bulky notebook computer, which typically weighs three-to-five *mes as much, it is easy to carry with you.

Many different types of businesses u*lize the iPad effec*vely. Yale Medical School has its en*re curriculum available on the iPad. Many, if not most, airlines are in the process of conver*ng their 40 pounds of paper flight manuals carried by each pilot to iPad equivalents. There is no ques*on that many schools will switch to tablets and away from textbooks.

and away from textbooks.

A tablet computer is designed primarily as a consump*on device to read and consume informa*on. Currently, it is not well-suited to write large amounts of text. For wri*ng, I con*nue to use a laptop with a standard keyboard. If you plan to subs*tute a tablet for a notebook computer you likely will be disappointed, since it is not easy to enter long streams of text unless you have an external keyboard.

Even though keyboards are available, most people don’t use them frequently. It certainly is easier than typing on a smartphone, but, in my opinion, anything beyond a sentence or two can be cumbersome and inefficient. For extended wri*ng, I think most people con*nue to use their notebook.

CHOOSE AN IPAD Last month, Apple announced the availability of “The new iPad,” the latest third-genera*on iPad. Several improvements in this version include a new high-resolu*on screen called Re*na, a faster processing chip called A5X, an updated camera and the availability of the faster 4G LTE cellular Internet network. At the same *me, Apple dropped the price of the iPad 2 by $100.

There is no ques*on that for the foreseeable future the iPad will dominate the tablet market. Hopefully, Android tablets will provide (con*nued on page 23)

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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Assertiveness Training A mild-mannered man was tired of being bossed around by his wife, so he went to a psychiatrist. The psychiatrist said he needed to build his self-esteem, and so gave him a book on assertiveness, which he read on the way home. He had finished the book by the time he reached his house.

The man stormed into the house and walked up to his wife. Pointing a finger in her face, he said, "From now on, I want you to know that “I” am the man of this house, and my word is law! I want you to prepare me a gourmet meal tonight, and when I'm finished eating my meal, I expect a sumptuous dessert afterward.

Then, after dinner, you're going to draw me my bath so I can relax. And when I'm finished with my bath, guess who's going to dress me and comb my hair?"

Texas PIA Offers Members Satisfying E&O Solutions “Fifteen minutes could save you 15%....

Everyone knows that1 but did you know that not all E&O policies are the same?

E&O is like other types of insurance1 you buy it hoping you’ll never need it1 but if you do1 E&O can be the difference in whether you stay in business or not.

How about it? Do you know what your policy covers1. And more importantly, what it doesn’t?

Texas PIA offers members, quality E&O markets and coverage. And members say they have saved as much as 40% when they switch to exclusive PIA programs.

Call today and get an analysis of your coverage and a competitive quote from multiple markets.

Call Texas Insurance Professional Services: Ray Reyes (214) 618-2365 ray@piatx.org

or

Bob Dixon (832) 375-0787 bdixon@piatx.org

Think about it: A father calls back to his son’s bedroom: Father: “Jimmy did you say your prayers?”

"The funeral director," said his wife.

Jimmy: “I’m saying them now.”

Father: “I can’t hear you…”

Jimmy: “I’m not talking to you.”

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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TDI ACTIONS

Contact Us

Recent TDI Disciplinary Ac ons: Byers, William Marlin of El Paso Order Number: 3325 Date of Order: 6/5/2014 Ac on Taken: Must cease and desist from performing acts of an insurance agent and engaging in acts that cons*tute business of insurance Viola on: Unauthorized insurance Comprehensive Behavioral Care, Inc. of Tampa, FL Order Number: 3348 Date of Order: 6/17/2014 Ac on Taken: (SOAH Docket No. 454-14-3633.C) Third party administrator cer*ďŹ cate of authority and u*liza*on review agent cer*ďŹ cate of registra*on revoked Viola on: Failed to *mely adjudicate claims and report a change of ownership and control Cypress Texas Lloyds of Jacksonville, FL Order Number: 3363 Date of Order: 6/20/2014 Ac on Taken: Fined $75,000 Viola on: Failed to conduct annual examina*on of Managing General Agent; Conducted business with unlicensed MGA

Give us a call for more information about member services and products.

Texas PIA and Young Insurance Professionals 3632 Frankford Rd 200B Dallas, Texas 75287 (972) 862.3333 joe@piatx.org www.piatx.org

Gallemore, Larry W. of Azle Order Number: 3366 Date of Order: 6/24/2014 Ac on Taken: SOAH Docket No. 454-14-3460.C) General lines life, accident, and health license; general lines property and casualty license; and adjuster license revoked Viola on: Incarcera*on for felony convic*on Garcia, Adrianna M. of Pugerville Order Number: 3324 Date of Order: 6/5/2014 Ac on Taken: Fined $2,000 Viola on: Engaged in fraudulent or dishonest acts or prac*ces Hart, Wesley of San Antonio Order Number: 3347 Date of Order: 6/17/2014 Ac on Taken: (SOAH Docket No. 454-14-3081.C) Fined $5,000; General lines property and casualty license revoked Viola on: Engaged in fraudulent or dishonest acts or prac*ces Penta, Jerey Douglas of Waltham, MA Order Number: 3335 Date of Order: 6/9/2014 Ac on Taken: (SOAH Docket No. 454-14-3081.C) Nonresident general lines property and casualty license revoked Viola on: Engaged in fraudulent or dishonest acts or prac*ces; Failed to *mely report order of another state regulator Rodriguez, Guadalupe of Harlingen Order Number: 3361 Date of Order: 6/20/2014 Ac on Taken: (SOAH Docket No. 454-14-3635.C) Fined $5,000; General lines life, accident, and health license and general lines property and casualty license revoked Viola on: Misappropriated or converted money belonging to an insurer or insured

“Assuming the customer is always right can lead you straight to E&O exposure and lose you a company....�

- The Insurance Sage

: https://wwwapps.tdi.state.tx.us/inter/asproot/commish/da/clips2014.asp

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Extremely informative as always! Thanks Keith Moon!

DFW EZ CE & BBQ

The meeting in early October was a big success!

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WE APPRECIATE OUR PARTNERS 21st Century Managing General Agency

iMGA

Affirmative Insurance

Louis A. Williams & Associates, Inc.

Aggressive Insurance

Lane and Associates Mendota / American Bankers Insurance

Alpha Insurance American Southwest Insurance Managers

Mercury Insurance

Ashley General Agency

Midlands Management

Berwick Insurance Group

National Lloyds

Celestite Group

Nations Safe Drivers

Columbia Lloyds Insurance Company

Personable Insurance General Agency

Direct General

Premium Funding Associates, Inc.

Dovetail Insurance

Progressive

Empower Insurance Group

Ramsgate Managing Insurance

FloodSmart

Safeway Insurance

Frank Crum

Select Insurance Markets Inc.

Great American Insurance

Southeast Surplus

Hallmark Personal Lines

Superior Access

Hagerty Classic Insurance

US E&O Brokers

Imperial Fire and Casualty

United Auto Insurance Group

Imperial PFS

Varsity Insurance Group

Insurance by Design

Western General Insurance Company

Integra Premium Finance

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

Page 16

(con*nued from page 8)

as low as $25. If your student’s $1,000 computer is stolen, he could receive $975 to replace it.

First dollar payment: Even if your student’s possessions are covered by your homeowners policy, the student policy pays the claim. Your own claims history is not blemished by your child’s loss.

Worldwide coverage: This is important for students who plan to study or travel over seas.

Student property policies have limita*ons. Unlike most homeowners policies, they do not cover lost items — only stolen property, confirmed with a police report. Addi*onally, the policies do not have liability protec*on, which is standard in homeowners policies. This coverage costs about $125 per year for $5,000 in coverage with a $25 deduc*ble.

Renters insurance Renters insurance is worth considering if your child is living off campus. It covers personal property that is lost or stolen and also provides liability protec*on if someone is injured while in your student’s residence. According to the Na*onal Associa*on of Insurance Commissioners, policies generally cost between $15 and $30 per month, depending on the loca*on and size of the rental unit and the value of the possessions insured.

As with homeowners insurance, you pay a larger premium for a lower deduc*ble. Some*mes, roommates can buy one policy that covers everyone in the rental property.

You need to know whether you are buying

“actual cash value” or “replacement cost” coverage. With cash value coverage, the insurer will seDle a claim for a lost laptop for a depreciated amount. With replacement cost coverage, your seDlement pays to actually replace the computer.

You pay only the deduc*ble. Replacement cost coverage costs more, but will provide a higher seDlement for property claims.

Please note that some policies have separate, lower limits for valuable items such as jewelry, an*ques and electronics. If your child’s renters policy doesn’t provide adequate coverage for his or her electronics, you can buy addi*onal coverage by “scheduling,” or itemizing, this property separately.

Auto insurance If your student is taking a car to school, call us to discuss the best way to handle your auto insurance. Auto rates may be significantly different in the city or state where the school is. We can run the numbers and let you know whether it makes sense to keep the car on your policy or buy a new policy.

Iden ty theR Iden*ty the= costs vic*ms more than $5 billion each year. College students are especially vulnerable because they are more open to requests for personal informa*on. (Think Facebook.) Your homeowners policy may already cover you and your family for the costs of reclaiming your iden*ty. Give us a call and we’ll confirm your coverage or give you informa*on about adding it.

Protec ng your property The Insurance Informa*on Ins*tute recommends (con*nued on page 25)

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(con*nued from page 7)

Be Wary of the R.I.P. Many agency principals feel that they have “paid their dues” and have earned more *me off, addi*onal perks, and leeway in their business dealings. While they are business owners, they are right. A=er they sell their businesses, they are described as R. I. P., Re*red In Place. In the armed services we described short-*mers who no longer adhered to the rigid rules of behavior as R.O.A.D., Re*re on Ac*ve Duty.

Neither the armed forces, nor the independent businesses in the U.S. can afford par*cipants who are R.I.P. or R.O.A.D. If your desire to remain in the business stems from the desire to remain ac*ve, to con*nue to serve your clients and to support the next genera*on of agency owners, it is commendable and should be pursued. Financial issues should be considered because value received is equivalent to value paid. But if you seek a con*nua*on of your compensa*on (or its equivalent) without your ac*ve commitment of *me and effort to the company, please reconsider your posi*on.

No, Re*rement is not a Requirement. It remains an op*on for agents who are *red of the “grind” or can no longer abide with the clients, the carriers, the employees or the vagaries of the industry. If they are s*ll energe*c enough to be ac*ve in the community, they should sell, re*re and seek other avenues for their con*nued ac*vity and mental well-being. A new career and community service are examples of fulfilling direc*ons that take agents out of the insurance industry but doesn’t put them in a rocking chair.

If you feel that you’ve just “hit your stride” and are finally at the point that you no longer worry about the next sale, you may be beDer served (and live longer) by remaining ac*ve in the insurance agency – as long as you don’t get in the way of the new owner’s direc*on for the agency.

If you can neither afford to re*re or have no poten*al successors, you MUST con*nue working through your later years, but you don’t have to concentrate on growth. Many agents have taken the decade a=er they should have re*red to reduce expenses and *me in the agency and wean the agency down, enjoying greater returns during those years than when they were forced to fund personnel, systems and business growth. It can easily take ten to fi=een years to wear an agency down to a pure service level for the exis*ng client base. This may be considered for agents in circumstances in which the sale of their agencies would not return sufficient funds to sponsor their lifestyles for their expected life*me.

Texas PIA Names New Executive Director October 1, 2014 – The Texas PIA has appointed Joe Tipton, of Dallas, Texas as Executive Director. With more than three decades of experience in the Texas insurance market, Joe offers an in-depth understanding of all facets of our industry. For the past year, he served as Membership Director, increasing membership 42%.

Earlier this year, PIA National awarded Texas PIA the “2014 Growth Achievement Award” for outstanding growth in members.

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You might feel like you are playing a game. But it’s more likely you’ll feel like you’re taking your insurance license exam.

Either way, be the first person to either fax or email your completed puzzle with all of the correct answers and you will win a fabulous prize!

Feel free to call Joe if you’re stuck.

9 10

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972.965.2025

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Email to: Joe@piatx.org or fax to 972. 307.7888

32

ACROSS 1.

R. Templeton using ailerons.

2.

Agreement by insurer to make periodic payments that con*nue during the survival of the party for a specified period.

5.

Condi*ons not covered by the general insurance contract.

6.

Broadly, any legally enforceable obliga*on.

8.

The price of insurance for a specified risk for a specified period of *me.

11. Life insurance which might be kept in force for a person’s en*re life and which pays a benefit upon the persons death.

13. A pre-determined flat fee an individual pays for health care services, in addi*on to the insurance coverage.

15. The ra*o of incurred losses and loss adjustment expenses to the net premiums earned.

17.

What Joe Tipton drove before 1940?

DOWN 18. A specialist in the mathema*cs of insurance.

1.

22. Companies with no capital stock and owned by policyholders.

25. The current president of the Texas PIA. 26. A representa*ve of the insurer who seeks to determine the extent of the Insurer’s liability for loss when a claim is submiDed. 27. Amount of loss that the insured pays before the insurance pays.

28. Fee paid to an agent or insurance salesperson as a percentage of the policy premium.

29. Insurance salesperson that searches the market in the interest of the client, not the insurance companies.

31. The automa*c re-establishment of in-force status effected by the payment of another premium.

32. The cause of a possible loss.

The wriDen contract effec*ng insurance, or cer*ficate thereof, by whatever name called, and including all clause, riders, endorsements, and papers aDached thereto and made a part thereof.

3.

A loss of significant size that it can be said that there is no value le=.

4.

Individual who sells and services insurance policies.

5.

A leading Managing General Agency headquartered in Ft. Worth, Texas.

7.

Restora*on to the vic*m of a loss by payment, repair or replacement.

9.

The right of an insurer who has taken over another’s loss also to take over the other person’s right to pursue remedies against a third party.

10. Auto insurance for average drivers with rela*vely few accidents during life*me.

12. Tom Sorrels alter ego

THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

14. Circumstance increasing likelihood or probable severity of loss.

16.

The part of the premium applicable to the unexpired part of the policy period.

19. In effect, insurance that other insurance companies buy for their own protec*on.

20. The process of selec*ng risks for insurance and classifying them according to their degrees of insureability so that the appropriate rates can be assigned.

21.

The scope of protec*on provided under an insurance policy.

23. The amount represen*ng the actual or poten*al liabili*es kept by an insurer to cover debts to policy holders.

24. Purchasing bond investments that mature at different *me intervals.

30.

A demand made by an insured, or by the insured beneficiary, for payment of the benefits as provide end by the policy.

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Looking to sell? Looking to buy or trade? Just want to haggle? More fun than EBay, safer than Craigslist. It’s Free, Give it a try! Email your ad to TradingPost@piatx.org

Mark your calendars for the November 12th CE Meeting!

“Agency Management” Series 2 hours of FREE CE, door prizes ... plus great Mexican food!

6:00 to 9:00 p.m.

415 W. 12th Street Dallas, TX 75208 (214) 941-4304 THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL

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Texas Insurance Professional Services Ray Reyes (214) 618-2365

or

Bob Dixon (832) 375-0787

This new feature of The Texas Connec*on is a column dedicated to Marke*ng Reps. You have the opportunity to pass on compliments and cri*cisms, helpful hints and pet peeves… We know there are things that Agents might do beDer… and this will give you a larger plaZorm to spread your message. The objec*ve is communica*on for beDer company/agency rela*ons. It can be anonymous… or we can publish your contact info… your call… Try it! It will be construc*ve… it might even be fun!

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(con*nued from page 10)

some compe**on in the future, but for now the iPad rules. If you haven’t purchased one, here are some sugges*ons for which model to buy.

Wireless Internet. One key to make the iPad a great tool is the speed of your connec*on, as many of the useful apps may be slow for some people to use at typical 3G speeds. You will have the op*on of Wi-Fi only or Wi-Fi and Cellular 3G (iPad 2) or 4G on the new iPad. I suggest you consider not purchasing the cellular model. It will cost $100 more and you also will need to pay a monthly access fees to Verizon, AT&T or Sprint for a wireless Internet connec*on that will work only on the tablet. I purchased the Wi-Fi only version.

I also purchased a MiFi 4G wireless data card to allow me to connect up to five devices through its Wi-Fi hotspot capability. My cost is $50 per month, the same price as the iPad-only wireless data plan.

This device provides the flexibility of connec*ng other devices like my iPhone and laptop to the same wireless connec*on. By the way, the 4G wireless network is significantly faster than the current 3G network.

A poten*al downside of not purchasing the 3G op*on is the lack of GPS. Several naviga*on applica*ons use the GPS signal contained in the iPad to allow you to have turn-by-turn direc*ons. These applica*ons will not work on a Wi-Fi only model. For me this was a reasonable trade-off because my iPhone is my GPS naviga*on tool.

Storage space. The op*ons for the amount of storage you are able to put on the device is 16 GB, 32 GB and 64 GB. Each step up adds $100 to the total cost of the tablet. How much space you need will depend on what kind of informa*on you plan to put on the device.

Text and photos typically take up a smaller amount of storage space. Music and videos eat up space rapidly. If you’re using the tablet primarily as a sales tool then you may be able to get by with the 16 GB model. If you can afford it, the 32 GB model would likely meet your needs.

While the iPad device is nice, it really is the applica*ons that you can download that make it effec*ve sales tool. There are more than 400,000 different applica*ons in the iTunes App store that you can install. The applica*ons that will work best for you o=en are based on personal preference. Following are some apps that I think should be installed on your device to help you sell insurance.

I have scanned thousands of ar*cles and downloaded different applica*ons, and these are some of my favorites. This is not meant to be an exhaus*ve list, since each independent agency has its own interests or specific needs, but this is a good place to start.

Evernote. This service allows you to store all kinds of random informa*on on different plaZorms. Evernote is intended for all the random (unstructured) data in your life. And, “data” means “informa*on,” not necessarily just “words.” For example, you can store whole websites; a photo of a prospect building; an audio recording of your ini*al interview; as well as handwriDen notes.

Evernote allows you to quickly store and retrieve informa*on and includes full-text searching (meaning it is fully indexed).

Notetaking and PDF annota on. Several popular notetaking apps include: Penul*mate, Ghostwriter Notes, iAnnotate and GoodNotes.

In addi*on to taking notes Ghostwriter Notes allows you to annotate PDF files. This allows you to write on a PDF document (including signatures) and have the notes become part of the document.

DropBox. Another free app that allows you to transfer and share files between your computers and your iPad easily. Two gigabytes of storage is available for free, which is more than enough for most users, but if you need more you always can purchase addi*onal space.

Google Maps. Google Maps is an amazing tool that doesn’t cost anything and is a great way to navigate to a loca*on while not only driving, but walking.

Instapaper. Instapaper allows you to maximize the use of your iPad as a reading tool. You can use this to transfer ar*cles you find on your computer to your iPad easily. You install the web version on your desktop or notebook by dragging the icon to your toolbar.

When you find an ar*cle you want to read later, you click the icon in your toolbar and like magic the ar*cle appears on your iPad ready to read with all the ads stripped out, which makes it easy to read.

AppStart for iPad. For those who are just learning how to use the iPad, AppStart is one of the best apps. It is a tutorial inside of a guide inside of an ... iPad! It has a great user interface that simplifies the process of learning about Apple’s iPad. These are a few of the applica*ons I suggest you explore to see how they might work for you.

Anderson is a na onally recognized expert on agency-company technology. A prolific writer, his knack is transla ng between “geek speak” and the language of agency managers. Anderson’s ability to fine-tune his ideas for the real world has made him one of the industry’s top technology consultants and speakers. For more informa on, visit www.steveanderson.com.

—Reprinted with permission from PIA Management Services Inc.—

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AGENCY FOR SALE Dallas area, 2 years old, high traffic store.

Send inquiries to: classifieds@piatx.org

LOOKING FOR EXPERIENCED CSR North Houston Agency needs personal lines CSR. Flexible hours... pay scale based on experience.

Send Resume to: classifieds@piatx.org

COMMERCIAL LINES CSR LICENSED SOLICITOR OPENING Agency in South Dallas increasing marke*ng staff. Good compensa*on and working condi*ons.

Temple/Belton area. License required.

Excellent salary & benefits.

Send Resume to: classifieds@piatx.org

Send Resume to: classifieds@piatx.org

(con*nued from page 17)

several things students can do to help recover lost items and lower the odds of a the=. ♦

Leave valuables at home. Do not take unnecessary items such as expensive jewelry.

♦

Create a dorm inventory. See www.knowyourstuff.org for a free online inventory program sponsored by the Insurance Informa*on Ins*tute.

♦

Engrave electronics with the student’s name.

♦

Lock the door. Insist that roommates also lock the door to a dorm room or rental unit.

♦

Use a laptop security cable.

♦

Beware of scams. Encourage your child to talk to you before buying anything that requires advance purchase or providing a Social Security number.

Whatever major changes occur in your family, it makes sense to see if your insurance matches your lifestyle.

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the

Last word

As unscien fic as this observa on may be… It appears from member email addresses in our database that many of you members do not have an agency web page. If you’re wri ng all the business you want, then no reason to read on... If you’d like to see your business increase by up to 18% or more... then consider this: Texas PIA has made arrangements for you to get a FREE website design (a $350 value) and help your agency move into a new age of marke ng. This is not a joke... it’s not a sales gimmick... And it is available only to Texas PIA members.

If you’d like to know more, contact me: Email: joe@piatx.org or call 972.862.3333

Being

a

promulgated

policy

form, you’ll notice if you look closely enough, Subsection C of Article 8 where it clearly denotes the terms of permissive use.

Insurance can be complex!

(con*nued from page 3)

Steer your liDle ones toward costumes that don’t have extras like swords, guns or knives that they can fall on or accidently hit someone with. If there’s just no talking them out of them be sure that they’re short and so=.

Comfy shoes are the rule – no one wants to contend with a blister because of new or illfi[ng shoes.

If going house-to-house stay within a couple of blocks of your own house.

Plan to eat all candy a=er you arrive safely back home. That way you can check to be sure that each piece is individually wrapped and has not been tampered with. (NO one wants tears to interrupt what children have been looking forward to.

One solu*on to ea*ng the candy that’s collected could be to agree to have a piece at your own house before you start out – it will make it easier to save the rest.)

Never hesitate to ask us. We have collectively hundreds of years of insurance experience between our members.

(972) 862-3333

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