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Volume 20, No. 3

may-june 2011

Agent

America’s Reckoning Patrick Buchanan comes to the Leadership Conference

missouri

: us c fo ip l a h i ec ers nce p d re s lea nfe co


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contents missouriagent Volume 20, No. 3

President President-Elect Vice President Secretary-Treasurer IIABA National Director PIA National Director Past President

Scott Brothers, CIC, Joplin Byron Robison, Springfield Doug Clift, CIC, St. Louis Brian Harrison, CIC, Columbia Mitchell C. Mills, Clinton Richard Minor, CIC, Hannibal Belinda Brenizer, CIC, Edina

Board of Directors Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 Region 11 Region 12 At-Large #1 At-Large #2 At-Large #3 Co. Rep. Co. Rep

Ricky Baker, CIC, Chillicothe Steve Heying, CIC, St. Peters Chris Rupp, LUTCF, CIC, Liberty Wil Turner, CIC, Belton Rick Naught, CIC, CPCU, Jefferson City Jim Baxendale, CPCU, St. Louis Greg Rebman, CIC, St. Louis Jane Dobrinic, CIC, CPCU, St. Louis Randy Smart, Marionville Kevin Krueger, LUTCF, Bolivar Steve Rackley, CIC, CISR, Gainesville Randy Baker, Kennett Shane Davolt, Kansas City Ted Schroeder, Union Dean Mandis, Wildwood Matt Hartigan, Overland Park, Kan. Tony Weishaar, Maryland Heights

Staff of the MAIA

Executive Vice President Larry Case Vice President of Operations Sheryl Van Leer Vice President of Marketing Lindsay Schmidt, AIP Insurance Services Manager Leona Loethen Events Manager Jeanne Blomberg, AIP Database Administrator Laura Berendzen Customer Service Representative Theresa Flippin, AIP Customer Service Representative Monica Mize, AIP Editor Amy J. Hoffman Membership Services Representative Kelli Findley, AIP Education Director Emily Koenigsfeld Administrative Assistant Dawn Christian Education Coordinator Julie Case MISSOURI AGENT (USPS 709-210) is published bimonthly by the Missouri Association of Insurance Agents, 3315 Emerald Lane, Jefferson City, MO 65109, phone 573-8934301. Periodical postage paid at Jefferson City, Mo. The MAIA does not necessarily endorse any of the companies advertising in this publication. Subscription rate for members is $25 per year, which is included in dues. Address & Other Changes Notify the MAIA if you change your address, change your agency name, or drop or change producers (who are voting members of the association). Write to MAIA, P.O. Box 1785, Jefferson City, MO 65102-1785 or e-mail maia@ moagent.org.

POSTMASTER: Send address changes to Missouri Agent, P.O. Box 1785, Jefferson City, MO 651021785.

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The Many Faces of Insurance Issues What Is Trusted Choice? Small Agency Conference Scrapbook

7 12 24

Departments From the President The Legal Side From the DIFP Technicalities Technology

5 9 10 15 17

Errors & Omissions Missouri News Agency News Company Partner News Classifieds

29 33 35 37 38

10 28 14 8 17 29 6 30 34 33 36 19 40

MEM Insurance Meramec Valley Mutual Insurance M.J. Kelly Missouri Rural Services Ringwalt & Liesche RLI SECURA State Auto Group Surplus Lines Association of Mo. United Fire Group West Bend WineryPak Insurance Programs

2 16 35 32 13 27 39 18 12 11 4 37

Advertisers Amerisafe BankDirect Capital Finance BC&M Big “I” Professional Liability Capital Premium Financing CFM Insurance Couri Insurance Associates EMC Insurance Cos. FCCI Insurance Co. Illinois Casualty Co. JM Wilson MAIA Education MAIA Partners

On the Cover: Keynote speaker Patrick Buchanan brings his take on politics and history when he headlines the 2011 MAIA Leadership Conference.

Volume 20, No. 3

Officers of the MAIA

Larry Case Amy J. Hoffman Amy J. Hoffman

Excerpt: Day of Reckoning by Patrick Buchanan The Quality Journey from Best Practices

may-june 2011

Publisher Editor Advertising Manager

Special Focus: Leadership Conference

Agent

3315 Emerald Lane, P.O. Box 1785, Jefferson City, MO 65102-1785 • 800-617-3658 in Mo. Phone 573-893-4301 • FAX 573-893-3708 E-mail: maia@moagent.org Internet: www.missouriagent.org

America’s Reckoning Patrick Buchanan comes to the Leadership Conference

missouri

© 2011 Missouri Association of Insurance Agents

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The best relationships make it easy. That’s what our agents say. In a nationwide ease-of-doingbusiness survey, West Bend scored first or second every year for the past five years. And when it comes to making it easy to do business, agents point to the relationships they share with West Bend.

But don’t take our word for it. Here’s what our agents have to say ... “West Bend has been great to work with and the ease of doing business has been one of the reasons we look to you as number one.” “I really enjoy the relationship I have with all the associates at West Bend!” “I feel West Bend goes above and beyond with their underwriting staff already. Everyone is accessible and their field marketing reps also act as a sounding board and valuable resource to our agency.” “Never change the fact that management is accessible to the agency if needed and allowed to discuss an underwriting decision with a graceful out for all, thereby keeping our mutual client the main focus and all of our business relations intact.” “West Bend is a great company and easy to do business with ... flexible and a good team partner.” “I think West Bend is doing an excellent job already, the quoting online is great, the new customer service department is awesome. I love working with them!!!”

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fromthepresident Just what is good leadership? Lead, follow or get out of the way: Ironic though it may sound, a good leader knows when and how to do each of these seemingly divergent tasks. He or she usually leads by example, or at least tries to, and “example” sometimes involves showing other people how to do their jobs but sometimes simply means allowing people to do what they know how to do – to turn ‘em loose and get out of the way. Therefore, leadership requires a confident and decisive person, who not only has vision but who also has the ability to inspire others. And a true leader knows that success is an ongoing process and not a single destination. Since we in the association fill a good many leadership roles, reciting this litany of qualities may sound like patting oneself on the back, but that is not my intention. Recognition of qualifications is merely a key component to trying to live up to them. And we all face risks in tackling the responsibilities of leadership positions. Leadership cannot be about dithering or doubletalk; it embraces decisiveness and directness. It is about steering and navigating with as much forethought, insight and wisdom as possible. A leader identifies and nurtures potential. He or she gives rein to those who have ideas, talent and focus – and reins in those who veer off course. A leader helps bring out the best in individuals and helps individuals to work together, to blend into effective and positive teams.

Optimism, enthusiasm and positive energy are essentials. Leaders necessarily must root out negativity. In other words, leaders must pave the way (and clear the way) for progress and productivity. As I noted, we in the agency business are leaders. We run small businesses; we are involved with our communities; and we are active in various other organizations, including this one. And we always need to prepare and help those growing in our industry. The 2011 MAIA Leadership Conference is scheduled for July 20-22 this year. Support and participate in this event. Let the developing leaders in your agency, as well as your current leaders, benefit from these seminars. They will hear industry-recognized experts present our continuing Best Practices series and will benefit from well-known conservative Patrick Buchanan’s insightful keynote persentation. They will also have the opportunity to meet with insurance company representatives and important vendors, and, perhaps most importantly, they will have the chance to network with their peers from around the state. Just what is good leadership? It is not only leading but caring about participants, processes and outcomes. Leaders give guidance, direction and encouragement. They know when to say, “No” – and when to say, “Go for it.”

Scott Brothers MAIA president

A true leader knows that

success is an ongoing

process and not a single destination.

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myturn The many faces of insurance issues Representing the interests of our members and your clients is one of the primary functions of our association and one on which we expend a lot of time, energy and resources. Never dull, never boring, it puts us in many different settings and situations. We have the opportunity to meet a lot of people from many different professions and all walks of life. I personally have the great privilege of encountering the many different faces of the insurance industry. Even though this aspect of my job many times requires long hours, includes unique challenges and presents obvious conflicts, successful conclusions are perhaps the most rewarding part of my job. However, it can also be one of the most distasteful and un-enjoyable aspects when one is surrounded by the uncaring, the uninformed, the unethical or the unscrupulous, and some of those multiple faces happen to be worn by the same person. Recently, there seems to have been more than the usual share of controversy and challenge. As an example, a usual ally, the National Association of Insurance Commissioners, has publically expressed the importance of keeping producers involved in the counsel, sale and delivery of health insurance. However, when presented with two specific opportunities to back up their statements, they chose instead to live up to their reputation and history of inaction. Abandoning the producer community on this issue cut producers off at the knees and made it clear that their earlier pronouncements were nothing more than hollow rhetoric. Apparently, the commissioners were accepting marching orders from Health and Human Services Secretary Kathleen Sebelius and some of the self-anointed consumer groups. It’s likely they collectively plotted their strategy over drinks and a jukebox playing old O’Jays tunes. There is really no reason to address any specific comments toward Secretary Sebelius, as her record clearly speaks for itself. Besides, we all have years of validation that nothing positive ever comes out of Kansas anyway. With regard to some of the so-called consumer advocates, there are few more transparent in their hypocrisy and doublespeak than these folks. They proclaim to want consumers to have choices and have access to information and resources in order to make informed decisions. It would seem that they would want consumers to

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have the advice and counsel of educated, regulated and professional independent insurance producers, who represent multiple insurers, provide professional risk assessment, customize coverage and help guide consumers through the claims process. Nevertheless, some of these groups continue to support legislation to eliminate producers from the process and cut any potential for providing compensation for producer services. Some apparently take such position because they simply have no clue about how insurance works and view it as a commodity with all policies being the same. However, the federal health reform has exposed others as simply being self-serving. Their ultimate goal is to line their pockets with federal grant money as insurance “navigators,” an entity which has been created under the act. Of course, when any insurance issue comes up, we are always communicating with our company “partners.” Many times, they emphatically indicate that they want to work with us to meet market, regulatory or logistical challenges only to suddenly turn to silent partners when we ask them to discuss workable solutions and then transcend to opponents when viable proposals are introduced to address the issues. (Can you say earthquake?) In other instances, some will express their loyalty to their producer distribution channel yet turn around and reduce or eliminate adequate compensation for you. (Can you say health insurance?) They even go so far as to align with some of the consumer groups and support bypassing your involvement in the process altogether. What great business partners! So, as you can see, the faces of insurance issues hold some smiles, some frowns and some nasty scowls. It’s often difficult to imagine that there could be any worse combination to deal with than insurance and politics. We prefer and will continue to face the issues head-on. Other dealings are merely a waste of time. And, I am way too old to change my style. Besides, it just doesn’t fit me. To quote Abraham Lincoln, “If I were two-faced, would I be wearing this one?”

Larry Case

MAIA executive vice president

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thelegalside Noncompete agreements for insurance agencies: a primer If you or your agency is considering using a cononly to the extent that they protect “legititract to restrict an employee or contractor’s abil- mate” interests. Legitimate interests include ity to take what you view as your business, cross customer contacts, trade secrets and confidenyour t’s and dot your i’s: You can protect your tial information. customer base and confidential information, Trade secrets, defined in RSMo. 417.453, but crafting an appropriate agreement will deinclude formulas, patterns, compilations and pend on multiple factors. programs (among other things) that provide Most covenants not to compete involve an an employer economic value and are subject to employer-employee relationship. If the person efforts to maintain their secrecy. is an independent contractor or consultant, the Confidential information may be broader agency should consider having a contract that than trade secrets and can include customer sets forth the terms of the business arrangelists and contacts, assuming this information ment with the independent contractor or conotherwise is not public in the form used by the sultant, and in which a noncompete and conemployer. fidentiality agreeIn order to have an enment are ancillary. forceable noncompete The most effective time to This is the kind that prevents someone consider requiring a noncom- from absconding with of circumstance reflected in a case pete or confidentiality agree- business, you or your of first impression agency will want to be ment is at the front end of in Missouri, Renal in a position to show Treatment Centersthat the person had your business relationship. Missouri, Inc. v. contacts of the kind Braxton, 945 S.W.2d enabling him or her to 557 (Mo. App. 1997), in which otherwise valid influence customers, which typically means the covenants not to compete were recognized as person was with your agency long enough to being applicable to independent contractors. have developed relationships with your customAs general background, in Missouri, coveers. One would also want to include a confidennants not to compete – that is, agreements that tiality agreement as part of the covenant not to restrict someone’s ability to take business or compete, and in some cases using a confidenticustomers – are enforceable subject to “reasonality agreement alone can result in protecting ableness” restrictions: Are you trying to protect business contacts and customers. your customers and the good will you have built As obvious as it might sound, the most effecwith them, and are the restrictions you intend tive time to consider requiring a noncompete or to impose limited in time (for example, one confidentiality agreement is at the front end of year) and geographic area (for example, the ter- your business relationship, whether it is with an ritory within which your producer or principal employee or an independent contractor. actually worked)? Certain professions and categories of persons Mary Jo Shaney is stepping in as a guest writer cannot be bound by noncompetition agreefor Lewis E. Melahn, J.D. Shaney is a partner at ments, and these include the legal profession White Goss Bowers March Schulte & Weisenfels, and employees who provide secretarial or cleriKansas City. She handles business and employcal services. ment litigation and advice. Shaney can be Covenants not to compete are considered to reached at 816-502-4731. be restraints on trade, and they are enforceable

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Mary Jo Shaney, Esq. partner, White Goss Bowers Schulte & Weisenfels

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fromtheDIFP NAIC spring meeting: Missouri’s leadership grows

John M. Huff

director, Missouri Department of Insurance, Financial Institutions and Professional Registration

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I’m pleased to report on the significant role that Missouri is playing at the National Association of Insurance Commissioners, a role that was enhanced during the spring meeting in Austin, Texas. You may be aware that the NAIC released A Consumer’s Guide to Earthquake Insurance during the meeting. This 14-page brochure walks consumers through the factors they should consider in deciding whether earthquake insurance is right for them. As always, the NAIC encourages consumers to work closely with their insurance agents. Special recognition goes to Angela Nelson, director of our Consumer Affairs Division, who led the national working group that wrote the guide. The guide’s release is well timed, given the earthquakes in Japan and New Zealand, as well as the concerns I shared with you about

Missouri’s earthquake insurance market in the last issue of Missouri Agent. In the past month, I have been interviewed by the St. Louis Post-Dispatch, A.M. Best and Reuters on this issue, and I told them we are in the midst of a perfect storm with earthquakes: there is public awareness; our market continues to contract in Missouri; and the Federal Emergency Management Agency and the State Emergency Management Agency just held a multi-state earthquake preparedness exercise in late April, the largest ever of its kind. On top of all that, Gov. Jay Nixon proclaimed February to be Earthquake Awareness Month, and Feb. 11, 2011, marked the 200th anniversary of the great New Madrid quake. In late April, my team and I had a productive meeting with Glenn Pomeroy, CEO of the California Earthquake Authority, who came to Jefferson

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City to share his state’s experiences. We will continue to be heavily engaged on this issue, raising awareness and working with the industry. I’m committed to ongoing dialogue with insurance commissioners in some of our neighboring states, including Arkansas, Illinois and Tennessee, since this affects our entire region. In other business from the spring meeting, Angela Nelson accepted another prominent assignment. She will chair the newly created Transparency and Readability Working Group. This panel will examine whether standard, plain language can be applied to the policies sold by property and casualty insurers nationwide. The early hearings on this issue have been heated. Consumer groups want standardized policy forms with increased consumer readability. The industry is resisting such changes, saying standardized forms and consumer disclosures

will open insurers up to increased litigation. They also argue against public transparency of policy forms due to the cost and proprietary nature of some companies’ forms. Instead, many parts of the industry are advocating increased consumer education. At the spring meeting, we also heard testimony on marked differences in levels of coverage in homeowners insurance policies between companies. As agents, you are often the first line of defense for consumers who want to learn more about their insurance needs. But I believe we can and should do more as regulators to increase consumer literacy of insurance. This working group is a great opportunity for an open discussion to identify the ways that insurers, agents, regulators and consumer groups can work collaboratively to achieve that goal.

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may-june2011

UNITED FIRE AGENT RON HAMMERBERG

PRESIDENT, FIRST IOWA INSURANCE AGENCY INC. CEDAR RAPIDS, IOWA

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What is

Trusted Choice?

from TrustedChoice.com

32972_Surplus Lines:Layout 1

Marketing wiz Michael Dell’s last name is placed on everything connected with the company: office signs, ads, websites, bills, computer boxes and, of course, the computers themselves. But you’ll also see something else connected with the Dell brand: “Intel Inside.” As an “ingredient brand,” Intel Inside provides value to the “host brand,” Dell. To be successful as a recognizable consumer brand, Intel relies not only on national advertising (Maybe you’ve seen the Blue Man Group spots.) but also on getting computer makers, distributors and retailers to use Intel Inside wherever they can. A similar strategy is being employed to build the Trusted Choice consumer brand. Trusted Choice is an ingredient that adds value to your agency. It does not replace your agency’s brand. It enhances your agency’s brand because it delivers to consumers and businesses

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exactly what they say they want from an insurance provider. Still, we continue to see confusion among agents and brokers over what Trusted Choice offers. This isn’t a market-access program or an online managing general agency. It’s not simply a logo. It’s not just a national advertising or public relations program. Nor is it an association name. Instead, Trusted Choice is a long-term branding strategy to position participating agents and brokers as the preferred consumer choice for insurance and financial services. Just as Intel Inside reminds us of smarter, better and faster computers, Trusted Choice represents advocacy, customization and choice. Like Intel Inside, the key to the Trusted Choice strategy is participation: We depend on an integrated team of participating agents, brokers, local boards, state affiliates and carriers to consistently remind consumers of the value of the Trusted Choice way of doing business.

SUPPORT YOUR MISSOURI WHOLESALERS For all hard-to-place, Excess and Surplus Lines and specialty accounts. Call the people that support your organization.

3D Star Insurance Services American Surplus Lines Agency, Inc. Bohrer, Croxdale & McAdoo Burns & Wilcox - St. Louis Chris-Leef General Agency, Inc. Continental American Agency, Inc. Davidson-Babcock, Inc. Gateway Underwriters Agency, Inc. Graham-Rogers, Inc. Gresham & Associates J.M. Wilson Med James, Inc. - Kansas City Med James, Inc. - Springfield Med James, Inc. - St. Louis Midwestern General M.J. Kelly Company M.J. Kelly of St. Louis LLC S.A. Freerks & Associates Swett & Crawford Westrope

314-436-3318 913-888-8400 417-869-2550 314-819-0400 913-631-1232 314-241-7969 913-469-1188 314-238-0070 918-336-2800 417-823-3924 816-561-6700 913-663-5500 417-886-3535 636-524-0080 816-246-1200 417-883-2688 314-416-4343 314-436-2682 314-821-2699 816-842-8222

877-642-2752 800-779-2550 800-331-4128 800-548-0491 866-764-8451 800-203-3223 800-325-7652 800-456-8123 866-251-9646 800-507-8656 800-255-6503 800-255-6503 866-255-6503 800-725-7211 877-416-4343 800-342-2601

Fax 314-436-4309 Fax 866-936-0400 Fax 417-869-5102 Fax 314-819-0440 Fax 913-631-1128 Fax 314-241-1474 Fax 913-469-1177 Fax 314-238-0065 Fax 918-336-7196 Fax 417-823-3979 Fax 816-561-3331 Fax 888-216-2014 Fax 417-886-2295 Fax 636-524-0088 Fax 816-246-1290 Fax 800-678-7211 Fax 314-416-4344 Fax 314-436-1532 Fax 314-822-2135 Fax 816-842-3081

www.3dstarinsurance.com www.ASLAINC.net www.bcmins.com www.burns-wilcox.com www.chris-leef.com www.caains.com www.davidson-babcock.com www.gua-stl.com www.graham-rogers.com www.gresham-inc.com www.jmwilson.com www.medjames.com www.medjames.com www.medjames.com www.mgakcmo.com www.mjkelly.com www.mjkstlouis.com www.safains.com www.swett.com www.westrope.com

Association of Missouri

P. O. BoxP 67 • Jefferson City, MO 65102-0067 (573) 635-0736 12

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We urge member agents and brokers to get involved by taking the following steps*: • Fully integrate Trusted Choice into your firm’s culture, operations, workflows and marketing. • Use the Pledge of Performance to educate consumers and prospects about what you deliver to them. It will help you close sales. • Be visible in the community with the Trusted Choice logo on your advertising, signage, business cards and letterhead. • Leverage the logo and Pledge of Performance on your website. • Use the tag-able ads for your local print, radio and TV campaigns (information available at www.TrustedChoice.com/agents). • Run local print, TV or radio ads that are timed with nationwide Trusted Choice advertising flights. Check www.TrustedChoice. com/agents for dates of upcoming ad flights. • Make sure your information is updated at the Agency Locator on www.TrustedChoice. com because all leads from national advertising and public relations campaigns are driving consumers there. Be smart like Michael Dell. Burnish your agency’s brand by actively participating in Trusted Choice, your ingredient brand. *Agencies that have submitted their signed license agreements are encouraged to take advantage of the wide array of Trusted Choice advertising and marketing tools, and only those agencies will be included on the Agency Locator. If you have not signed your license agreement, you may contact the MAIA office at 800-617-3658 for assistance or visit www. TrustedChoice.com/licenseagreement to download the form.

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We’re On Target

Bohrer-Croxdale & McAdoo aims for the bull’s-eye in meeting your coverage needs. See how effective and extensive our coverage can be. Call one of our Underwriters at 800-779-2550

BC&M offers a variety of coverages including: Commercial Liability Security Guards Exterminators Pawn Shop Resorts/Campgrounds Contractors - all kinds Day Care Umbrella

Commercial Property Builder’s Risk Apartments/Condos Restaurants/Taverns Monoline Earthquake

Commercial Auto Local, Intermediate Auto Public Auto including:

Taxi, Limo, & Social Service

Wreckers Ready Mix Repossessions Refuse Haulers

Miscellaneous Professional • Directors & Officers • Errors & Omissions Contractors Pollution • Environmental Risks Employment Practices Liability • Law Enforcement Professionals

Surplus and Specialty Lines Insurance Managers Post Office Box 2760, Springfield MO 65801-2760

Phone: 417.869.2550

Fax: 417.869.5102

800.779.2550

888.869.2550

W W W. BCM IN S. C O M


technicalities Does insurance always follow the vehicle? Insurance follows the vehicle. For 25 years in the insurance business, I have always been taught that insurance follows the vehicle. In other words, if I lend my car to you, my insurance policy becomes the primary coverage, and your policy is secondary. Recent experiences have shown that not all companies’ policies respond this way. A few years ago, I had a family insured that had young children. I also had their parents’ auto insurance coverage with another carrier. The family decided that they were going to take the kids on vacation, and they decided to borrow the parents’ conversion van for the trip. On the way to the destination, they were involved in an accident, and they were at fault. We initially turned the claim in to the parents’ carrier, which had the conversion van insured. They promptly notified us that their policy was secondary to the driver’s policy. Really? That is not what we have been telling the insurance public. We turned the claim into the driver’s insurance carrier. They responded that their coverage was secondary. This was consistent with everything we have always been taught. The claim was ultimately resolved by both companies agreeing to pay half. This was a small claim with minor property damage. Would it have been resolved the same way if it had been a large bodily injury claim? I was surprised and agitated by the way the parents’ company’s policy responded. I spoke to my marketing representative with the company. She had her own vehicle insured with the company and didn’t realize this is how the policy would respond. I spoke to a person who was the head of claims for the area. She responded that the company had notified all policyholders when they made the change. The change was contained in their “Amendatory Endorsement Other Insurance Provision.” It reads, “Any insurance we provide for use of your ‘covered auto’ by any person other than ‘you’ will be excess over any other collectible insurance, self-insurance or bond.” I told her we as agents – or at least I personally – weren’t notified about the change. In

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fact, our company marketing representative didn’t know that the policy responded in this manner. The claims person also told me that they changed their policy because another large carrier had changed its policy form. I also found out that at least one other state would not allow a carrier to have this type of policy. Our company’s auto policy still responds in this manner in Missouri, but it has made a change in how the claim is handled. It now will pay the entire claim and subrogate against the driver’s carrier. Recently, I was informed that another carrier has lowered its coverage to the state’s minimum liability limits if a permissive driver (who is not a named insured) is involved in accident. I received a copy of the company’s “Amendments of Policy Provisions – Missouri.” Under “Part A Liability Coverage,” it reads:

Greg Rebman

MAIA Technical Committee O’Connor Insurance Group

Under Insuring Agreement, Item 2 under the definition of “Covered Person” is deleted and replaced by the following: 2. Any person other than those identified in paragraph 1 using your covered auto with your permission. The limits of liability for this person shall be equal to minimum limits of liability required by Section 303.190 of the Revised Statutes of Missouri, which are $25,000 per person, $50,000 per occurrence, and $10,000 for property damage. Insurance follows the vehicle. For most carriers, this is correct, but it certainly is not true with every carrier in every state. And with others, the regular policy limits may not apply. How do your carriers respond to permissive drivers? As agents, we need to know how to properly advise our insureds. Greg Rebman, CIC, is the agency manager of O’Connor Insurance Group, St. Louis. He has been a member of the MAIA Technical Committee since 2005. You can reach Rebman at 314-576-7080.

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A Note from MATC nce a ucers r d u o s r n i p i f r o u using an To: Misso wners certificates certificate a e su is r e homeithe o e agents to use with th s r m e fo rc o d fo e t n H a Th special t desig Re: that is no ices ir client a e rv e rm th S r fo ce fo D n R sura r the ACO rchase

vided fo d to the In nce y or to pu can be pro s presente ners polic al Confere e m w ic g e o n ra it e e ch e v e T th co l insured. clients where One of -America additiona onal lines n nt policy, a rs e 2010 Mid v e an d e e p d a th m t d o a of where ith lity, an ents fr Office examples sinesses w ests to ag e of the faci u u b id q se questv u te re re ro a h p v g it ri in ed us to dealt w at is be es and p sk h ti r. a w n e s u n d a n h w co a o O s, e IS citie quest hom blem. Any to provide ce for the ceived a re d the pro of prin l n re ra s ta ta a n su rs h e in re t d y n e n them to age er u abilit om th to provide proof of li s result fr public might bett d f st it e o e t u sk a se a q u th re re e a so ese ed ples ou may ce, or th Usually, th Agents. Y have exam family eting spa ce o s, e n h n m o ra w c ti li su ts p b n In ce u age n of or p y Case at ing re vate halls Associatio sident Larr ies, wedd ies that ri it rt re u v a P ti so p e c is y a ic a M ll V d a the are birth questions cutive parks for ction of him with les to Exe ities. These p ll se v ti y m ca c a it y a x il a r e b e a m d li sen nal r you or oth the perso reunions ent.org, o ess use. red under not busin se@moag e a v is lc it co s e a b g n would 7-3658. olicy as lo nicate this at 800-61 owners p to commu rm d a fo n the home D a R s ne a ot an ACO add anyo There is n request to a with the is so re o e d If th eans to m o n evidence. is re sured, the ditional in m. ra g ro p ers homeown

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technology Social media time-savers As a marketing process manager for Progressive, I speak with independent agents across the country about the importance of social media. For most, finding time in their busy schedule is one of the biggest concerns. But you don’t have to dedicate hundreds of hours to see a return from social media. A welldefined strategy (and a few time-saving tools) can help you strike a balance between the time you invest and the value your investment adds. When it comes to social media planning, there’s no right or wrong level of involvement. The most important factor is consistency. Start by setting goals for your agency’s participation. Whether it’s regular interaction with customers on Facebook, a tweet every few days, or a weekly blog post, you can strengthen your social media presence by having clear goals in sight. Here are three levels of social media involvement to consider based on the time you want to commit and the goals you set.

Listen (1-2 hours a week) This should be the first step of any social media strategy. After you’ve set up your agency’s accounts on sites like Facebook (www.facebook. com), Twitter (twitter.com) and LinkedIn (www. linkedin.com), study what people are saying on the platform. Check sites like Google Places (www.google.com/places) or Yelp! (www.yelp. com) for customer reviews of your agency. Friend your customers and follow their updates, track your competitors’ tweets, and watch how people respond. Note what’s working, record the questions and topics that dominate the conversation, and think through how you’d respond. By first using social media as a listening tool, you’ll learn best practices for status updates, tweets and blog posts before creating your own. Plus, you can apply what you’re learning from online chatter to shape quoting and inperson conversations with your customers. Time-savers • Clearly outline actions and responsibilities within your agency to prevent redundancy, maintain focus and meet your social media goals. For example, you could assign a single person in your agency to review Facebook,

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Twitter and LinkedIn for one hour, twice a week. • “Like” competitor Facebook pages from your personal profile to more easily follow their updates when you’re online. • Search Twitter and third-party directories like WeFollow (wefollow.com) and Twellow (www.twellow.com) to identify popular profiles associated with insurance. Create Twitter lists to organize the people you follow by category (customers, competitors, etc.), and use programs like Hootsuite (hootsuite.com) or Tweetdeck (www.tweetdeck.com) to monitor your Twitter lists at a glance. • Use a reputation management tool to monitor what people are saying about your agency. Consider using free services like SocialMention (www.socialmention.com) and Google Alerts (www.google. com/alerts), or more robust paid services like ChatMeter (www.chatmeter.com), LocationMonitor (locationmonitor.com) or Trackur (www.trackur.com).

Matt Marko

marketing process manager, Progressive

continued on page 18

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technology • Create a Google Reader (www. google.com/reader) account for one-stop monitoring of key insurance blogs and publications. Content hubs can save you hours each week by better organizing content for quick review. Matthew Marko is a marketing process manager for Progressive Insurance. He works to provide local marketing strategies, tools and co-branded collateral to help independent agencies grow their businesses. E-mail him at matthew_marko@progressive. com. Marko prepared this article for ACT.

Respond (2-5 hours a week)

After taking some time to listen, join the conversation by responding to questions, posts and comments with a helpful link or thoughtful answer. Note that while answering questions or directing people to another online resource builds goodwill and trust, “hijacking” an online conversation to explicitly promote your agency can undermine your efforts. Provide helpful advice over time and associate comments with your agency through hyperlinks or a simple signature with contact information. Remember, showing your value For more information doesn’t require you to give “pro bono” adabout ACT, contact Jeff vice. Asking the right questions and outlining Yates, ACT executive direc- relevant points customers should consider can tor, at jeff.yates@iiaba.net. demonstrate the value of an independent This article reflects the agent and lead to a follow-up phone call. views of the author and should not be construed Time-savers as an official statement by • Focus on a few active online communities ACT. rather than jumping around looking for every opportunity to respond. You’ll get to

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know the members better, and your participation will build credibility that can lead to references across the social network. • Develop a list of frequently asked questions for common topics, along with your responses and online resources you can share. Using these responses as a starting point can save time when responding to similar questions or comments.

Publish (5+ hours a week) The final level of social media engagement is proactively communicating to your audience. Although most businesses prefer to jump right into engagement, by listening and responding first, you’ll be more comfortable with the medium and your audience. By starting slow, you’ll also have a better understanding of the time you have for social media, and you’ll be more likely to provide the consistent presence necessary to build trust. Time-savers • Put a process in place to keep your involvement consistent and efficient. Assign a producer, a CSR or a marketing intern from a local college as your social media manager to ensure a single point of contact. Make sure they work alongside everyone in your agency to get questions answered and develop content without bottlenecks. Remember that effective social media engagement is timely and human. Delayed responses and overlycorporate language limit your effectiveness. • Share any quality information you think followers may be interested in. It doesn’t always need to be about insurance. Not only can this save you time developing your own content, it provides value to fans, followers and readers, and increases the chance that others will share your content with their communities. • Distribute the work among a few employees to keep it manageable. This adds variety to your posts and prevents disruption due to vacation, job changes or illness. • Mix up your content. A thought-provoking question can be as effective as a blog post and takes a fraction of the time to compose. Discussing community events or commenting on your favorite sports team can also engage your audience without the research and writing time longer posts may require. Plus, consumers will appreciate seeing the personality of your agency and its employees.

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Professional Development Title E&O — A Practical Guide to Agency E&O Risk Management Approved for 6 ethics CE credits in Mo. Tuition: $120

CISR — Personal Auto

Approved for 8 p-c CE credits in Mo. Tuition: $181 ($163 Early Bird Discount*)

Education

Description/Date/Location

This errors and omissions seminar focuses on providing practical guidelines and tools for effective loss control. The session incorporates real-life scenarios agency employees probably have already encountered. Open to members only. Date and Location: May 11, MAIA Headquarters, Jefferson City

Students will analyze the personal auto policy and its major endorsements; learn how the PAP responds to owned, rented or borrowed vehicles; examine the personal umbrella policy and how it benefits insureds; and define who qualifies as an insured. Dates and Locations: May 18, DoubleTree Hotel, Chesterfield May 24, MAIA Headquarters, Jefferson City June 28, DoubleTree Hotel, Springfield

CISR — Dynamics of Service

Approved for 8 general CE credits in Mo. Tuition: $181 ($163 Early Bird Discount*)

Dynamics of Service is all about building proven techniques for effective customer service, and it is designed for anyone who values clients and customers. The course is open to all agency personnel, regardless of affiliation or professional designation. Date and Location: June 1, DoubleTree Hotel, Chesterfield

Young Agents Conference

Approved for up to 5 p-c CE credits in Mo. Tuition: $205 first agent, $105 additional agents from same agency

CIC — Commercial Property

Approved for 16 p-c CE credits in Mo. Tuition: $413 ($396 Early Bird Discount*)

Risk Specialist Series — Insuring Small Commercial Risks

Approved for 12 p-c credits in Mo. Tuition: $250 ($199 Early Bird Discount by June 10)

This conference is designed for new insurance producers. It offers three educational sessions, which examine life in the insurance industry and “Maximizing Your Internet Presence,” as featured in The Anderson Agency Report. Dates and Location: June 5-7, The Landing, Van Buren

Participants will cover the essential elements of the commercial property policy, time element coverages, recommended endorsements and various inland marine forms. Dates and Location: June 15-18, Hilton Garden Inn, Independence

This Risk Specialist course will address lease issues, certificates of insurance, coverage gaps, businessowners policy comparisons, commercial casualty exposures and more. Open to members only. Dates and Location: June 22-23, MAIA Headquarters, Jefferson City

*Early Bird Discount price applies to registrations received at least two weeks prior to class date.


specialfocus

leadershipconference

DAY OF RECKONING Excerpt:

Patrick J. Buchanan

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What caused the GOP to abandon the economic nationalism that had made America the greatest industrial power in history and the Republican Party America’s party for seventy years? First, in the postwar era, the economics departments of universities and colleges were dominated by New Deal Democrats, socialists, and Marxists. Like isolationism, protectionism was now a dirty word. Republicans of the Harding-Coolidge era, who had slashed income taxes, raised tariffs and created the Roaring Twenties, were demonized and, with Smoot-Hawley, indicted for the Great Depression. The Keynesian economics of the New Deal, it was said, had cured the Depression. Both myths are gospel today. After World War II, the economic philosophy summed up in the GOP motto “Prosper America First!” came to be regarded as capitalistic, nationalistic, crude, and selfish. Protecting American industry was unfair to foreign competitors. Second, at the end of the Cold War, China abandoned Maoism, India dumped socialism, Eastern Europe broke free, and the Soviet Union collapsed. These epochal events freed up hundreds of millions of workers and put them into a world labor pool with the American working and middle classes, whose wages were ten and twenty times their own. Third, then came the Internet, enabling companies to acquire intellectual property instantly from anywhere on earth. Fourth, there was a sea change in the mind-set of the Fortune 500. Protecting the home market became less important than assuring access to foreign markets. The National Association of Manufacturers converted to free trade – to be free of its American workers, free to move its factories abroad, free to export back to the United States, free of charge. To hold their American consumers and be rid of their American workers become a corporate obsession.

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specialfocus

leadershipconference

Patrick Buchanan is the featured keynote speaker for the 2011 Leadership Conference. See the brochure inserted in this magazine for more information. Finally, the trade deals of the late twentieth century were enabling acts for companies to shed national identities and loyalties and reinvent themselves as global companies, the new masters of the universe. Hamilton’s vision was history. Patriotism yielded to globalism. Our old cherished independence was to be set aside for a new and higher “interdependence.” All nations must now engage in the mutual sacrifice of sovereignty to create the New World Economic Order. Rich nations must annually transfer a slice of their wealth to poor nations. First World workers must compete fairly with Third World workers. There will be pain, but these are the birth pangs of the brave new world we are about to enter. Behind this vision lies a dirty little secret. The designated beneficiary of the global economy is the global company. The hidden agenda of the global economy is the empowerment of the global company. In the global economy, the Middle American worker politicians once courted with promises of “a chicken in every pot” and a “full dinner pail” has become the unwanted American – except as a consumer. U.S. workers must now compete for jobs in their own country with tens of millions of immigrants, legal and illegal. Meanwhile, their factories are shut down and moved to Mexico and China. Knowledge-industry jobs are outsourced to South Asia. Corporate America has been empowered to go abroad and hire bright young men and women to come and take the jobs of middle-aged Americans at half their salaries. Mexican trucks now roll on American roads, and in India, long-haul truck drivers are being trained to come to America and take the jobs of American truckers. There was a time when an American could, on a single income, support a wife and half a dozen kids and look forward to a secure retirement. In the new America, where the commands of globalism trump the call of patriotism, the American dream is receding. For many, it has already died. may-june2011

The hidden agenda of the global economy is the empowerment of the global company. missouriagent

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leadershipconference

Use these lists to audit your agency’s or company’s quality performance. The full “Quality Journey” quiz is available for free download in the Tool Kit at the Best Practices website, bp.reaganconsulting.com/toolkit, under the “Customer Service” link.

What matters most to your organization in terms of quality customer service? Here’s a list of 20 things that quality organizations do for their customers. Rank them in order of importance from 1 (most important) to 20 (least important) for your organization. Distribute blank copies of this list to your employees and have them rank the items. Do your employees prioritize the same items you do?

You

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Employees

We provide prompt courteous, quality service.

We have regular customer contact.

We tell our customers exactly when services will be performed.

We ask clients exactly what they expect from our agency.

Our management is available to all customers.

We return telephone calls promptly.

We always follow up.

We always ask, “How can we do it better?”

We contact our customers more than annually.

When a customer has a problem, we show sincere interest in solving it.

We are never too busy to respond to our customer requests.

We maintain error-free records.

Our physical facilities are visually appealing.

Our operating hours are convenient for our customers.

We employ technically knowledgeable staff.

We review our customers’ insurance needs annually.

We hire people with a service attitude.

We cultivate a positive office environment.

We practice honesty and integrity in all our dealings.

We perform service right the first time.

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specialfocus

leadershipconference Customer service is one of the topics that will be covered in Best Practices education sessions at the 2011 Leadership Conference. See the brochure for more information, or register now online at www. missouriagent.org.

How do you stack up against the competition? Here’s the same list. This time, give your organization 2 points for each thing you always do and 1 point for things you sometimes do; then grade your closest competitor. Total the scores to see how you stack up against the competition. After you’ve completed this part of the assessment, it might be enlightening to ask your employees to do this competitive analysis separately.

Scoring: 2 – We always do this. 1 – We sometimes do this. 0 – We don’t do this. You Competition We provide prompt courteous, quality service. We have regular customer contact. We tell our customers exactly when services will be performed. We ask clients exactly what they expect from our agency. Our management is available to all customers. We return telephone calls promptly. We always follow up. We always ask, “How can we do it better?” We contact our customers more than annually. When a customer has a problem, we show sincere interest in solving it. We are never too busy to respond to our customer requests. We maintain error-free records. Our physical facilities are visually appealing. Our operating hours are convenient for our customers. We employ technically knowledgeable staff. We review our customers’ insurance needs annually. We hire people with a service attitude. We cultivate a positive office environment. We practice honesty and integrity in all our dealings. We perform service right the first time. Scoring: You can be assured that anything less than a perfect 40 is going to have a negative impact on your market share, customer retention, profitability and growth. Look closely at the items you ranked as most important. If you scored less than 2 on any of them, you may be facing potentially severe customer retention issues. Use these findings as your priority action list for improvement in the coming year. may-june2011

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2011 small agency conference

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2011 conferment ceremony CIC Conferees (back row): Jon Rittman, Jeffrey Murphy, Tim Wahl, Janet Wilson, Caleb Walker; (front row): Gayle Popkey, Barbara Grubb, Ryan Sanders, Sandra Bell, Elizabeth Jegel CISR Conferees L-R: Ryan Smarr, Chris Meckem, Tina Goss, Brooke Thomason, Theresa Leech, Margaret Lowder, Denise Probst, Stephanie House, Kyle McGirl Tenured CICs L-R: Rick Naught, Mike Keith, Belinda Brenizer, Dan Baker, Scott Brothers

Ron Mattli and Matt Kujath (left and middle), CRM conferees 26

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Relax...

You’ve offered each of your clients a personal umbrella policy.

Right? It might not be quite as relaxing as a day at the beach, but knowing you’ve done everything in your power to protect the customers who trust you to help them will go a long way towards easing your mind. Offering each and every client an umbrella not only protects those who choose to purchase the coverage. It protects your agency from liability. And it protects your book of business, since studies show that customers who have multiple policies are less likely to move their business elsewhere. As a Big “I” member, you have access to a stand alone personal umbrella program from A+ rated carrier RLI, featuring:         

Limits up to $5 million available You can keep your 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.

So cover your clients... protect your agency... and profit from umbrella sales!

To access log onto www.bigimarkets.com or visit www.iiaba.net/Umbrella.

®


We Aspire to Achieve

Mutually Prosperous

relationships

Through flexible terms and competitive pricing, BankDirect has helped a number of agents accomplish what they needed to succeed. We ASPIRE to do that for you as well. Unparalleled customer service • 24/7 accessibility • Web-based quoting and account status • Flexible payment options

I have worked with a number of premium finance companies over the years and none of them have been as creative and committed to the relationship with the agency as BankDirect – AGENCY PRINCIPAL

Mark rein

Vice President, sAles cell: 847-331-6705 • email: mrein@bankdirectcapital.com www.bankdirectcapital.com


&

errors omissions Homeowners: the new No. 1 For many years, commercial casualty (general liability and umbrella) was the No. 1 underlying loss type for errors and omissions. However, according to the final 2010 results, there is a new No. 1 in town: homeowners. Just short of 20 percent of all E&O claims allege issues dealing with the homeowners line of business. Drilling down further, there are several issues to look at. Valuation is one of the major issues; dogs are not exactly E&O’s best friend; and carrier binding guidelines rounds out the top 3 problems areas. In addition, Utica is experiencing claim activity dealing with issues surrounding personal property that would be better covered under an inland marine policy or floater. Let’s examine each of these in more detail.

Valuation For many years, carriers have been providing their agents with various tools to determine the appropriate homeowners limit. These are designed to provide, when given the proper, accurate inputs, a respectable, somewhat accurate estimated value for the home. The key is “proper, accurate inputs,” as without these, the output may not be a valid representation of an appropriate homeowners limit and definitely should not be relied upon. Many would contend that even with the proper inputs, the calculated value may not be accurate due to significant fluctuations in the price of home building products. When calculating the amount, advise the customer in writing that this is not a guarantee the home can be replaced for this amount. For homes with a degree of uniqueness, it is questionable whether the estimators should be relied upon at all. In many of these situations, calling in a licensed appraiser may be the best course of action. Based on the economy in your area, it may be possible for customers to buy a home for much less than it would cost to actually replace it. Communicate to your customers that there is no correlation between market value and re-

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placement cost. Some individuals contend the customer should advise you, as the agent, the amount for which they want the home insured. This does have some merit, provided, again, that the customer thinks of what it would cost to replace the home as opposed to its market value.

Curtis M. Pearsall

special consultant, Utica National Agents E&O Program

Dogs Dogs are becoming much more of an issue, largely due to the unknown breed of many dogs. If your cusCommon dog breed tomers contact Akita your agency to Alaskan Malamute state they are getChow Chow ting a dog, they Doberman Pinscher German Shepherd Dog might not know Pit Bull the actual breed

restrictions Presa Canario Rottweiler Siberian Husky Staffordshire Bull Terrier Wolf Hybrids

combination given the cross-breeding that takes place. With carriers experiencing losses involving dog bites, they are trying to find ways to address this issue. continued on page 31

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We’re celebrating our 100th year by planning for our next 100 years. Tanya Wentzel, Des Moines Branch Marketing Manager Troy Boysen, Minneapolis Branch Commercial Underwriter Connie Jarzynka, Omaha Branch Claims Adjuster Emails and teleconferencing may be time-savers, but there is no substitute for the one-to-one relationships with insurance professionals who know you and your community. Early on, EMC Insurance Companies realized the value of being close to agents and policyholders. That value continues to pay off in products and services tailored to individual market needs. Whatever the future holds, insurance will always be a relationship business and EMC will continue to keep those relationships as close to your office as possible.

Kansas City Branch: 800.821.4702 | Home Office: Des Moines, IA

www.emcins.com Š Copyright Employers Mutual Casualty Company 2011 All rights reserved


errors&omissions When you receive that call, advise your customers verbally and in writing that there are certain breeds insurance companies have put on their “prohibited” lists. To avoid any problems down the road, customers should try to ascertain the breed of the dog they are considering. Posting this information on your website would be beneficial for those customers who might not contact you verbally. It wouldn’t be surprising at some point for carriers to include in their policy form a list of excluded dog breeds.

Carrier guidelines Each of your carriers has specific guidelines detailing the circumstances that allow you to bind without first securing their blessing. They do this for a reason. It provides your agency with the ability to bind coverage for those risks that meet the guidelines. It also provides your carriers with recourse against your agency if a risk you bound without their blessing that does not meet their guidelines suffers a loss. As evidenced in the claim example below, carriers take these guidelines seriously (and so should your agency). The agency wrote coverage for a log cabin for an insured through a carrier it represented. The client had been with another carrier and had a history of late premium payments and reinstatements. The new carrier claimed it would not have written the risk had it known of the prior risk history and also stated it does not write coverage for log homes. The insured knew it was log home but did not disclose that to the carrier. After paying a loss of $532,117, the carrier filed suit, alleging the credit history and distance from a firehouse (which was understated) were not disclosed and that had they been, it would not have written the risk. The carrier did not bring up the aspect of the house being a log cabin. There was also a question of fact regarding a discussion between the agent and the carrier before the risk was written. The agent said she disclosed the credit history over the phone and

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was given a green light to write the risk. The underwriter denies this. The case was settled by paying the carrier the full amount, $532,117. Some lessons to be learned from this example include the following: 1. Provide your carrier with a full and accurate description of the risk. 2. If you discuss the risk with the underwriter and he or she gives you the go-ahead, document the conversation back to the underwriter and put a copy of this documentation in the file. 3. Stay on top of the guidelines, and don’t bind a risk you don’t have authority to bind. There is no upside to misleading your carriers.

Homeowners coverage or inland marine floater? There are many scenarios where there are coverage differences between insuring an item under a homeowners policy as part of the contents limit rather than insuring those items on an inland marine floater. While there may be some coverage for jewelry under an HO policy, most forms do not provide mysterious disappearance as a covered peril. This peril is typically covered under a jewelry floater. Plus, items that are breakable would probably not have breakage coverage unless insured under a floater. In addition to these peril issues, establishing the proper value is more common with a floater, and thus at claims time, the customer is more apt to get a fair settlement. It is definitely recommended that you advise your clients verbally and in writing that when they receive their policies, they must review them to ensure everything is in order. The agency should also review policies to make sure they match what was requested. Take the time to educate your staff on these issues. With homeowners now the leading underlying line of business in E&O claims, this education may just save you from such a claim.

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EXTRA!

missourinews Agent shaves to save If you met Mara Raglin, St. Charles, for the first time before March 5, 2011, you would probably have said that her hair was among her most striking features. Long, auburn and wound in cork-screw curls, it was the sort of hair that many women long for. And if you met Mara Raglin shortly after that Saturday, you would certainly have said that her hair was among her most striking features – actually her lack of it. That was the day that Mara, her husband, Rand, and other members of her St. Baldrick’s Foundation team stepped up in front of scores of observers to have their heads shaved in an effort to raise money to research cures for children’s cancers. A producer for JBJ Insurance, St. Charles, Raglin was drawn into the St. Baldrick’s Foundation activities through friends, but her participation seems providential given that the foundation has grown out of a single event in the reinsurance industry in 2000. That year, three reinsurance executives, John Bender, Tim Kenny and Edna McDonnell, held a head-shaving party on St. Patrick’s Day hoping to raise $17,000 for kids with cancer. The executives and their colleagues instead raised more than $104,000, shattering their own expectations and giving rise to an annual event that has now become the world’s largest volunteer-driven fundraising program for childhood cancer research in the world. Raglin became familiar with the St. Baldrick’s Foundation when non-industry friends, who have been participating for years, invited her to watch a head-shaving event in 2010. “You see the sick children and your heart breaks, so you almost have no choice but to get involved,” Raglins says. She, herself, had a friend in grade school named Charles who struggled with liver cancer throughout his childhood, eventually passing away when he was 15 years old. Raglin currently has several other friends and family members continued on page 34

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Mara Raglin goes bald to raise money for children’s cancer research.

Food and Beverage Insurance Specialists

Restaurants Fine Dining Fast Food Delivery Taverns Wineries Nightclubs Banquet Facilities Convenience Stores Fraternal Organizations www.ilcasco.com missouriagent

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fighting various types of cancer, so the need for research funding is something that she has seen up close. As March 2011 approached, Raglin, with her husband and a team of friends, committed as a shavee and signed up to join a headshaving event at Helen Fitzgerald’s Irish Grill in St. Louis. The St. Baldrick’s Foundation coordinates such events around the world each year in March. Raglin’s team prepared for the event with intense fundraising efforts. Donors included friends, family

Mara and Rand Raglin with their children. members, strangers and corporate sponsors, such as Pepsi Max, Timber Creek Bar and Grill, JBJ Insurance Group, and Mike Shanahan Jr. Together, they raised more than $20,000, with Raglin herself responsible for more than $2,700. The next step was simply to show up on the morning of March 5, 2011, and take the place of honor in the “barber’s” chair. With her (previously) shoulder-plus length hair, Raglin was able to go an extra step by donating her shaved hair to Locks of Love to be made into a wig for a child with cancer. “I am now bald for two reasons,” states Raglin in a note to her donors, “to stand in solidarity with kids with cancer, and most important, to raise money for childhood cancer research.” Adding the funds raised by every team, the event at Helen Fitzgerald’s raised more than $250,000, which the St. Baldrick’s Foundation will donate to research projects through the process of grant awards. The foundation also supports the education of young physicians who commit to childhood cancer research as a specialty. St. Baldrick’s donated more than $14 million in funding in 2010 alone, and the foundation has raised more than $103 million since the first event in 2000. Only the U.S. Government funds more childhood cancer research grants. Find out more about the St. Baldrick’s Foundation and keep track of updates for events in 2012 at www.stbaldricks.org.

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agencynews Rackley Insurance acquires Arkansas agency

Rackley Insurance Agency, Gainesville, owned by Steve Rackley, has acquired Thompson Insurance, Mountain Home, Ark. Thompson Insurance will retain its name and its current business operations, and its previous owners, Mike Thompson and Max Freeman, will serve in an advisory capacity for three years. With the acquisition, Rackley Insurance has become a member of the Bainswest Insurance Group, a consortium of 12 agencies in Arkansas and eastern Oklahoma that ranks No. 53 in the nation’s top 100 independent insurers.

Burns & Wilcox acquires Cleveland brokerage

Burns & Wilcox, Farmington Hills, Mich., has acquired NorthCoast Excess & Surplus Agency, a wholesale brokerage and underwriting manager based in Cleveland. Jeff Burke, president of NorthCoast, has joined Burns & Wilcox as a senior producer.

Clark-Lami-Hembree celebrates 50 years

Established in 1961, Clark-Lami-Hembree Insurance is celebrating its 50th year of helping

clients make informed insurance decisions. The agency attributes its success to its company partners and the foundation laid by John T. Clark, the agency’s founder, and Arno Lami, his partner, as well as staff members both past and present. “We are very thankful to our customers for allowing us to be their insurance connection. These relationships built over time between our associates and customers are key to our success,” says Chuck Hembree, agency president.

2010 Best Practices agencies announced

IIABA and Reagan Consulting have announced the 2010 Best Practices Agencies. Earning the distinction in Missouri are: AHM Financial Group, St. Louis; BancorpSouth Insurance Services, Springfield; Ollis and Co., Springfield; and The Insurancenter, Joplin.

MAIA members earn company recognition

CBIZ Insurance Services, St. Joseph, has been included in the 23 agencies that were named to the 2010 President’s Club by MAIA Company Partner Accident Fund. The annual award is precontinued on page 36

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agencynews

continued from page 35

sented to select independent insurance agencies, which meet specific criteria for written premium and sustained profitability. Dysart Insurance Agency, Marshall, and Naught-Naught Insurance Agency, Eldon, have both been named to the 2010 President’s Club by MAIA Company Partner Grinnell Mutual Reinsurance Co. Each year, Grinnell honors its top 50 agencies achieving outstanding production and profitability over a five-year period. Several member agencies have been recognized as 2011 Pinnacle Agencies by MAIA Company Partner Columbia Insurance Group. The following agencies have met the production guidelines to qualify: Barker-Philips-Jackson,

Springfield; DeWitt Insurance, Manchester; Gene E. Wills Insurance Agency, Jackson; Insurance Consultants, Chesterfield; Naught-Naught Insurance Agency, Jefferson City; Plaza Insurance Center, Columbia; Scott Agency, Montgomery City; Smart Insurance Agency, Marionville; and Weiss Insurance Agency, Chesterfield.

Connell producer featured in SBJ

Jay Hickman, Springfield, a producer with Connell Insurance, Hollister, was featured in the March 28-April 3, 2011, issue of Springfield Business Journal. The “5Q” column outlined Hickman’s entrepreneurial endeavors and his recent introduction into the insurance industry.

In memoriam

KNOWLEDGE COMES FROM EXPERIENCE

Jim Tate, Dexter, passed away March 16, 2011, at the age of 76. Tate began his career in insurance in 1958 as an underwriter. Eleven years later, he joined the Ben Cowan Insurance Agency, Dexter. When Mr. Cowan retired, Tate took ownership of the agency and merged with Countywide Insurance Agency, Dexter. He retired in 1999. Tate was a member of the First Presbyterian Church, Dexter, a veteran of the United States Air Force, and a former Alderman for Dexter Ward 3. He leaves behind his wife, Shirley; two sons, Kevin and Keith; and one daughter, Kathy.

New faces, new places “I go the distance on my bike—just like my 30-year journey with J.M. Wilson. I lead a great team of managers and underwriters that work hard to help our agents be successful.”

New members

Sandi Fritz, CIC Vice President, Underwriting and Branches—and fixture on the bike trail Connect with Sandi on LinkedIn!

Managing General Agency Since 1920 Property/Casualty • Professional Liability • Surety Commercial Transportation • Personal Lines • Premium Finance

800.666.5692

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Doug Anderson, Kansas City, has joined Lockton Cos., Kansas City, as a senior vice president and producer. Ryan Brown and Scott Schulte, St. Louis, have joined Lockton Cos., St. Louis, as producers. Jay Hickman, Springfield, has joined Connell Insurance, Hollister, as a producer. Tracy Musolf and Mark Seely, Kansas City, have been promoted at Lockton Cos., Kansas City, to practice leaders.

jmwilson.com

Advisor Assurance, Troy Hendee, Rogersville The Blue Chip Consortium, David Miller, Webster Groves Castillo Insurance Agency, Rob Castillo, Gladstone Insurance directConnect, Marc Majnerich, Chesterfield Littlejohn and Associates, Randy Littlejohn, St. Louis M&T Insurance Agency, Mark Tomlin, St. Peters North Missouri Insurance, Karen Lawson, Cameron Ron Graham Insurance Agency, Cindy Politte, Park Hills

may-june 2011


companypartnernews Berkshire Hathaway to acquire Lubrizol

Berkshire Hathaway and The Lubrizol Corp. have announced a definitive agreement for Berkshire Hathaway to acquire 100 percent of outstanding Lubrizol shares for $135 per share in an all-cash transaction. It will be one of the biggest acquisitions in Berkshire Hathaway history. After the close of the transaction, which is expected to be completed during third quarter 2011, Lubrizol will operate as a subsidiary of Berkshire Hathaway.

QBE acquires Renaissance Re

QBE has announced that it has completed its acquisition of the U.S. admitted insurance businesses of Renaissance Re, which include a U.S. crop and small specialist program insurance business. The acquisition supports QBE’s commitment to growing the business through product diversification and new distribution channels.

FCCI names new president, CEO

The board of directors for FCCI Insurance Group has announced that Craig Johnson, Sarasota, Fla., will become the new president and CEO of the company. Johnson will succeed G.W. Jacobs, who retires May 31. Johnson joined FCCI in 2003 and has since served in several leadership positions. Jacobs is retiring after 12 years as president and 22 years of total service.

Columbia welcomes new VP

The board of directors for Columbia Insurance Group has appointed Bryon Smith, Austin, Texas, as vice president of the company. Smith will retain his position as branch manager in Austin, where he has accumulated 25 years of experience on all sides of the commercial property and casualty business.

The Hartford makes Most Ethical list, donates $100,000 to Japan

The Hartford is one of just five insurers to make the list of 112 companies deemed the “World’s continued on page 38

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companypartnernews continued from page 37 Most Ethical” by Ethisphere. Companies in all industries were chosen for their high standards at every level of operation. The company has also announced that it will make a $100,000 donation to the American Red Cross’ disaster relief efforts for Japan following the earthquake and tsunami.

United Healthcare tops list of admired cos.

United Healthcare earned the top overall ranking among insurance and managed care companies in FORTUNE’s 2011 “World’s Most Admired Companies” list, featured in the magazine’s March 21, 2011, issue. The company also ranked highest among the sector for the following individual categories: quality of products and services, innovation, people management, use of corporate assets, social responsibility, quality management, financial soundness, and long-term investment.

Anthem announces grant to Mo. Boys & Girls Clubs

As part of its ongoing work to address childhood obesity and promote healthy lifestyles, Anthem Blue Cross and Blue Shield in Missouri has announced a three-year $269,392 grant from its corporate foundation to Boys & Girls Clubs of America, which will support the organization’s proven health and wellness program, Triple Play, at local clubs throughout the state.

PHLY pledges $100,000 to Japan

Foundation have pledged $100,000 to the American Red Cross for aid to Japan. Philadelphia, whose parent company, Tokio Marine Group, is based out of Japan, will also match donations made by its employees through the American Red Cross to help the Japanese people.

Accident Fund CEO receives Distinguished Citizen award

Elizabeth R. Haar, president and CEO of Accident Fund Holdings, was recently honored by the Chief Okemos Council, Boy Scouts of America, with one of its annual “Distinguished Citizen Awards.” First presented in 1977, the award honors outstanding individuals who have dedicated themselves to their professions, the community and the support of youth programs.

Anthem president influential St. Louisan

Dennis Matheis, St. Louis, president of Anthem Blue Cross Blue Shield, has been named as one of St. Louis’ most influential people by the St. Louis Business Journal. Matheis tied for the rank of No. 55 in a list that included the leaders and decision makers of the city’s most financially and culturally influential businesses and organizations.

New associate members

Keystone Mutual Insurance Co., James Bowlin, Chesterfield AmFed Cos., Jerry Horner, Ridgeland, Miss. National Interstate Insurance Co., Mark Morgan, Richfield, Ohio

Philadelphia Insurance Cos., its chairman and CEO Jamie Maguire, and The Maguire

Classifieds Insurance agency for sale. Located in north central Missouri. Producer wanted Established western Missouri full-line agency looking for motivated producer. Experience a plus but will train the right individual. Agency represents several A-rated carriers. Candidate would have possibility for future management and perpetuation. Excellent benefit package. St. Louis, West County agency has opening for experienced Commercial Customer Service Agent/Account Manager to handle existing and new clients, market, prepare proposals and letters. Coverage knowledge and communication skills are essential. Will train to handle specialty non-profit book of business and present coverage to non-profit boards. Salary commensurate with experience

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and knowledge. Flex hours, health, 401k. Send resume: cheryl@oconnor-ins.com or call 314-3365890 The basic classified ad contains a maximum of 35 words (including head). Cost: $25.00 for up to 35 words. Blind ads: $39.00 for maximum of 35 words. MAIA agency members are entitled to a 50 percent discount on classified ads. Ads must be submitted in writing to Advertising Manager, Missouri Agent, P.O. Box 1785, Jefferson City, MO 65102-1785. Payment (to AMC) should accompany request. Deadline for classified ads: first of month preceding publication. When responding to confidential ads, reply to: Classifieds P.O. Box 1785, Jefferson City, MO 65102-1785. Reference the ad to which you are replying.

may-june 2011


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PROGRAM 2011 ART NERS P Missouri Association of Insurance Agents

Listed below are the companies who strongly support the independent agency system and the Missouri Association of Insurance Agents.

DIAMOND PLATINUM

GOLD

SILVER BRONZE

ACUITY Accident Fund and United Heartland Columbia Insurance Group Anthem Workers’ Compensation Cameron Insurance Cos. United Fire Group

BankDirect Capital Finance Travelers America First Insurance Co. Safeco Insurance West Bend Mutual Insurance Co. The Hartford

EMC Insurance Electric Insurance The Barton Group SECURA Insurance Patriot Underwriters

Berkshire Hathaway Homestate Cos. Anthem Blue Cross Blue Shield CNA Foremost Insurance Group Continental Western Group

Premium Financing Specialists Selective Insurance Co. of America CFM Insurance Old Missouri Mutual Insurance American Mining Insurance Co. State Auto Haulers Insurance Co. QBE Agri Insurance AAA Missouri Illinois Casualty Co. General Casualty Insurance Co. MJ Kelly Co. Bituminous Insurance Cos. MOPERM United Healthcare Select Imaging Capital Premium Financing TAS Insurance Group Philadelphia Insurance Co. Commercial Insurance Underwriters Westrope

Cornerstone National Insurance Co. Valley Insurance Agency Alliance BMI Cos. J.M. Wilson S.A. Freerks & Associates Gateway Underwriters Agency Grinnell Mutual Reinsurance Co. AmTrust North America Encompass Insurance Dairyland Auto & Cycle Insurance Amerisure Mutual Insurance Co. Fireman’s Fund Lamm Technical Resources Auto Owners Insurance Co. Zenith Insurance Co. Midwestern Insurance Alliance FCCI Insurance Group Insurance directConnect Med James Samba

Missouri Association of Insurance Agents • 800-617-3658 • www.missouriagent.org


Missouri Agent May-June 2011