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vol. 21 No. 3

may-june 2012

Agent

leading across the divide Carville, Matalin headline conference

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contents

missouriagent Volume 21, No. 3

Officers of the MAIA

President Byron Robison, Springfield President-Elect Doug Clift, CIC, St. Louis Vice President Brian Harrison, CIC, Columbia Sec’y-Treasurer Louis Landwehr, CIC, CRM, Jeff City IIABA National Director Mitchell C. Mills, Clinton PIA National Director Richard Minor, CIC, Hannibal Past President Scott Brothers, CIC, Joplin

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 Shane Davolt, Kansas City Rick Naught, CIC, CPCU, Jefferson City Jim Baxendale, CPCU, St. Louis Jeff Mentel, J.D., St. Louis Jane Dobrinic, CIC, CPCU, St. Louis Randy Smart, Marionville Tom Montileone, Bolivar Steve Rackley, CIC, CISR, Gainesville Randy Baker, Kennett Wil Turner, CIC, Belton Ted Schroeder, Union John Patterson, Chesterfield Diane Marshall, Columbia Dennis Putthoff, Murfreesboro, Tenn.

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, AIP Membership Services Representative Kelli Kloeppel, AIP Education Director Emily Koenigsfeld Administrative Assistant Dawn Patterson 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. 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 Missouri Agent if you change your address, change your agency name, or drop or change producers (who are voting members of the association). Write to Missouri Agent, P.O. Box 1785, Jefferson City, MO 651021785 or e-mail maia@moagent.org.

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

Get Out Your Platinum China 7 Support Yourself 11 2012 Small Agency Conference Scrapbook 16 New Trusted Choice Mobile App 31

Departments Letters to the Editor 4 From the President 5 The Legal Side 9 Technology 12 Technicalities 20 From the DIFP 29

News and Know-how 32 Errors and Omissions 37 Regulatory Actions 41 Agency News 44 Company Partner News 46 Classifieds 46

Advertisers Accident Insurance Co. 12 Allied Insurance 47 America First Insurance 20 American Mining Insurance Co. 44 AmTrust North America 8 Big “I” Umbrella Program 14 Bohrer-Croxdale & McAdoo 10 Burns & Wilcox 6 Couri Insurance Associates 36 EMC Insurance Cos. 28 FCCI 22 Gateway Underwriters Agency 32 IPMG 23 On the Cover: James Carville and Mary Matalin bring the 2012 Leadership Conference to life with an insider’s look at politics.

JM Wilson 4 MAIA Events and Education 34 MAIA Partners 48 MEM 2 Meramec Valley Mutual 45 Missouri Rural Services 40 M.J. Kelly Co. 38 Prime Insurance Co. 13 Ringwalt & Liesche 39 Secura Insurance Co. 19 Surplus Lines Association of Mo. 21 Swiss Re E&O 42 United Healthcare 13 West Bend 30 Winerypak Insurance Programs 33

vol. 21 No. 3

Larry Case Amy J. Hoffman, AIP Amy J. Hoffman, AIP

Excerpt; All’s Fair: Love, War and Running for President 24 2012 Leadership Conference Education 26 2012 Leadership Conference Events 27

may-june 2012

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

leading across the divide Carville, Matalin headline conference

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© 2012 Missouri Association of Insurance Agents

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may-june 2012

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letterstotheeditor Dear Editor: In the March-April 2012 issue of Missouri Agent, there was a piece from the National Flood Insurance Program regarding the Standard Flood Insurance Policy. As an independent agent, I wrote the occasional policy, but it was not a primary market for the agency I worked for. Now, for the past 12 years, I have worked daily with the NFIP as a flood adjuster certified to adjust all flood policies. Approximately 70 percent of the claims I work in a given year have to be inspected un-

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der a non-waiver due to some basic errors by the agent who wrote the policy. About 10% of the claims I work end up with an actual errors and omissions suit against the agent. In the wind, hail and fire claims I work, I rarely have to use a nonwaiver, and few of the claims have resulted in an E&O issue. Looking back on these 12 years of claims and the previous 15 years as an insurance broker, there are some common problems in agencies that do not specialize in the coverage, which come up repeatedly. • Mortgage changes to the insured’s homeowners or commercial policy are not followed through to the flood policy. • Underwriting guidelines for flood zone, type of construction, elevation and substantial improvement are often misunderstood or not followed. (Yes, a crawlspace is an elevation.) • Coverage for contents is either not suggested to the insured, or the agency has no proof in the file that it was offered and declined at the sale or renewal. • The agent fails to understand and communicate policy coverage and limitations to the insured. Agents also need to understand that in reality, the flood policy is underwritten at the time of loss, and correction of agency errors for rate are made before the claim payment can be processed. I have had many claims significantly affected by this in the past. The NFIP has a large number of free brochures available to agencies. The order form is available at www.fema.gov/library/viewRecord/ do?id-1400. I strongly suggest that every insured receive a copy of “F-676 NFIP Summary of Coverage,” with particular attention given to the limitations of coverage in a basement if applicable. Agency staff members who handle flood sales, renewals and claims should also have this at hand for quick reference. Sincerely, Mr. Kim Smallwood, CIC Midwest Regional Processing Center

may-june 2012


fromthepresident How things have changed I can remember how growing up I could tell you the names of all the players on my favorite team. Most of them would stay with the team for years and years, but there would be a few changes in the lineup. Today, it seems I have to learn the team all over each year. The extreme rate of change seems to permeate nearly everything these days, and I find myself nostalgic all too often. After Day at the Capitol, there was a group of us sitting around talking about old times. It reminded me of when I first started in insurance and the older group would share stories of time gone by. Stories like how three or four reps from different companies would meet at the agent’s office or home to divide up coverage for the city or the school district. The company people would all know each other and socialize together. There was no real rate competition. It was service and personal relationships that made the difference. This was a world I didn’t get to experience. By the time I started, companies had filed for debits and credits. They had filed their own rates, and they were not interested in dividing up accounts. If they were going to write an account, they wanted to write all of it. I have seen companies come and go just like people come and go. I am not sure if the younger agents in the group at Day at the Capitol were bored hearing about the past, but our stories are the ones they will never get to experience. I hope you had a chance to attend the Small Agency Conference, but if you didn’t, I would like to share with you some of the changes I picked up on. I attended the personal lines session taught by Chuck Hembree, and all through my career, I have been taught that insurance will follow the car. Did you know that is not true for all companies? Hembree indicated that some companies are now writing policies that follow the driver. I have to admit I was shocked.

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I have not had a phone call asking for policy information of my insured because they were involved in an accident while operating another person’s car as a permissive driver. If I had received such a call, I would have sent them back to the coverage of the car. Now, it appears I may need to turn in the claim under the driver’s insurance. I guess if it were easy, then everyone would be selling insurance. I also attended the electronic communication class taught by Lisa Burnside. Keep in mind I am from the era of writing things on a napkin. I can’t help but feel a little lost when topics like social networks come up, and you get asked if you are on Facebook or MySpace, and if not those then LinkedIn. You know there is always Twitter or Flickr and who knows what else. What happened to the good ol’ phone? I appreciate Burnside’s reminder of the 10 things to do and not to do with e-mail. I need to keep up with the changing world to do the best for my customer and keep in touch, but there are so many choices. I always learn something no matter what class I take, and it is probably good that continuing education is required just to keep up with all the changes. I hope you will make plans to attend the Young Agents Conference in June and the Leadership Conference in July. By the way, have you made a donation to InsurPac for 2012? I really don’t care how much you give as long as you give something. Laws are being changed all the time, and we need to support our friends in Congress.

Byron Robison president, MAIA

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myturn Get out your platinum china Happy anniversary! According to listings I have seen, a 20th anniversary is categorized as “china” in tradition or as “platinum” in modern descriptions. Maybe because I wasn’t too good at the anniversary game and my marital anniversaries stopped short of reaching 20, I really don’t know what that means. However, for anyone who does and wants to commemorate the occasion, start the celebration. So what is the occasion? Well, it is the 20th anniversary of the formation of MAIA. Twenty years ago, the Independent Insurance Agents and PIA of Missouri merged and created the Professional Insurance Agents of Missouri (with a later name change to the Missouri Association of Insurance Agents). A joint membership meeting between the two associations held Jan. 28, 1992, resulted in unanimous member approval of the consolidation of the two agent associations. The staffs of the two associations combined and moved into a single office March 1 of that year. The combined membership elected a new board to govern the association May 1, and the new legal entity became official July 1. Today, we remain as one of only five consolidated state agent associations, which have relationships with both IIABA and PIA. Two decades have passed quickly. But that doesn’t mean there haven’t been challenges and changes. Consider that 10 of our 13 employees only know of working in a dually affiliated association. The first interim board, which operated the association in the transition, included Don Brain Jr., Chuck Hembree, Carrol Hess, Dan Howe, Burl Jarvis, Bill Carleton, Bob Collins, Phil Garvin and Paul Dobinsky. Only Chuck Hembree remains active today. Sponsors and exhibitors at the first annual convention of the combined association included such companies as American States, Gulf Insurance, Silvey Insurance Co., Symons International Group, USF&G, Reliance Insurance Co., Commercial Union, Dodson Insurance, Ohio Casualty, National Insurance Association, Midwest Vision Insurance, Leader National Insurance, Redland Insurance, Agena Central States of Omaha and others that have disappeared. How many of those companies have you had to replace since then? In 1992, the director of the Department of Insurance was Lew Melahn. The worker’s compen-

may-june 2012

sation system was an absolute mess with NCCI proposing a rate increase of 23.8 percent. May 1992 marked the establishment of the Missouri Underground Storage Tank Insurance Fund, and the Missouri General Assembly passed Senate Bill 796, which created the Small Employer Health Insurance Act. On the federal level, President George Bush was seeking re-election against Arkansas Governor Bill Clinton. Insurance issues being debated in Congress included health insurance, tort reform and federal regulation of insurance. Well, okay, maybe some things don’t change that much after all. With any major action such as the consolidation of Missouri’s two associations, the question that can always be asked in hindsight is, “How did it work out?” The answer is that it has been an unequivocal success and may well have surpassed the expectations of even the most optimistic supporters. Absent consolidation, I can emphatically say that we would not have the influence or resources we have today to protect and represent your interests, nor would we be able to offer anywhere close to the level and quality of benefits and services that we do. Of course with any success comes disappointments. In this case, the biggest disappointment was the failure of the national associations to merge. Egos were simply too big and hidden agendas too strong to allow it to happen. As Les Bushman stated following the ending of national negotiations in September 1992, “Truth is, a very small group of officers from both associations have shown their inability to respond to the wants and needs of their members … This small group was still maneuvering for some advantage, never getting beyond the us versus them mentality.” That disappointment carries through yet today. Despite having even more reasons to consolidate, leaders of both organizations continue to mimic their D.C. beltway friends and seem more concerned with talking about the other organization than talking to them. We have provided the national associations a 20-year roadmap. Teaching them how to use it and making them put the members first remains the challenge. In the end, that would be cause for a real celebration.

Larry Case

executive vice president, MAIA

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thelegalside Forewarned is forearmed: agency noncompetes While it is generally true that a noncompete agreement, if reasonable, can be enforceable, the reality in the world of practice is that if a business cannot establish that it has what the law refers to as “protectable interests,” the noncompete covenant will not be worth anything more than the paper on which it is written. Noncompete agreements must be narrowly drawn and specifically targeted to protect your agency’s actual interests, not a speculative interest or an interest that you or the agency have not earned. The two interests an employer can protect with a noncompete agreement, subject to the specifics of a particular state law, are trade secrets and customer contacts and relationships. If, for example, your agency intends to hire a producer with a book, and you want to protect the agency in the event the producer leaves, there are several practical challenges you should consider before and at the moment you engage the producer. If you are about to hire someone with a book of business, you should not assume that simply because you hire the person and he or she signs a noncompete, you are home free. One of two central questions for purposes of crafting a noncompete will be whose customers are going to be the subject of what the noncompete will protect? The other question is what is it you, the employer or agency, will provide to the producer or sales person that will give him or her an edge in influencing those clients who are a part of your business or who could be? Ask yourself a couple of other basic questions. First, if the producer is bringing a book of business and you want him or her to sign a noncompete, is your intention to buy the book or pay the producer or what? The questions are important, since, if you simply bring on a producer with a book and he or she leaves and wants to take the book, the argument will be that you, the agency, did not pay or train him or her to establish relationships and customer contacts, since those relationships already were established. In that event, if the employer or agency tried to argue that the pro-

may-june 2012

ducer was taking their customers, the producer might be able to establish that it was not the agency that allowed the formation of the relationships in the first place. A customer is one who repeatedly has business dealings with a particular person or business. The rationale in the law for protecting an employer’s customers is that the employer or agency helped to create the good will and relationships or paid someone to create it. It is this special influence that courts will use to justify the enforcement of a noncompete. During the employment relationship, the producer or employee almost certainly will strengthen and continue to develop relationships, while at the same time becoming privy to the agency’s sales practices, pricing strategies and marketing mechanisms. This is part of what puts the agency in a better position to enforce a noncompete. Part of the consideration at the front end of hiring should be what you or your agency is willing to pay to hire or engage someone with a book of business. Relationships can be structured through agreements that do not simply begin and end with a noncompete but that anticipate a buy out over a period of time (for example) or a salary or commission that reflects a premium for the book. The other significant tool for an agency is to include a confidentiality agreement, which expressly protects the kinds of business strategies that make your company successful and are not known publicly. In this market of unemployment and employee upheaval, courts are less inclined to shut an employee out from work. What you want to do is target your understandings and agreements with employees to protect what you cannot afford to lose. But, you should be able to identify what these interests in fact are in the first place.

Mary Jo Shaney, Esq.

partner, White Goss Bowers March Schulte & Weisenfels

Mary Jo Shaney is a guest writer for “The Legal Side.”

Mary Jo is a partner with the White Goss Bowers March Schulte & Weisenfels law firm in Kansas City, Mo., with a practice focus in business, employment matters and land use matters. She can be reached at 816-502-4731.

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yourself As the PAC Fundraising Committee chairperson sential? The reasons are clear. Attention and the last several years, my motto has been, “It’s access. Contributions do not buy solutions to not politics – It’s your livelihood.” Well, it’s time legislative debates, but instead they afford us to update that motto to, “It is politics, and it is the opportunity to present our side of the issue still your livelihood!” and educate legislators on our positions. Four years ago, I wrote in Missouri Agent, At the federal level, the IIABA government “2008 is a huge election year. As independent affairs team fights for us by getting in front of agents, we certainly want to support candidates legislators and their staff on a daily basis and with ethical qualifications who show support educating them about legislation that is either for a strong economy and a fair, competitive detrimental or beneficial to our livelihoods. insurance marketplace and who are consistent However, they can’t do it alone. with the interests of the buying public.” The It is vital that we, as small business owners whole insurance world has changed since I and agents, play an active role in shaping the wrote that statement and not for the good, in public policy debate and ultimately the laws my humble opinion! that come out of Washington, D.C. Lobbying With that being said, 2012 is a much more im- and a well-funded PAC go hand in hand. Insurportant election year, especially Pac is non-partisan and for the independent agent. We makes contributions to To make a donation are under a constant attack Republicans and Demoto InsurPac, visit www. from legislators and bureaucrats crats alike. missouriagent.org and who do not feel we add value The 2012 Missouri goal to the insurance buying transacfor InsurPac has been set fill out the contribution tion. This is just as true in propat $17,200. State goals are form, available under erty and casualty lines as it is in determined by dividing the “Advocacy” tab. health insurance. However, we the total of $1 million by are the only true advocates the the total number of ageninsurance buying public has in this process. We cies (21,545) and then multiplying that dollar must drive that fact home to our elected and amount ($47) by the number of agencies in a appointed officials. given state. This number is then rounded to the While agents and brokers want to maintain nearest $50 increment. If a state fell more than the current system of state regulation for the 20 percent short of its 2011 goal, the new goal is insurance industry, it is the U.S. Congress that set at 20% more than it raised last year. will make that decision, as well as many other InsurPac is important to us as independent practical decisions that affect our industry. Fedagents because it allows us to speak with one eral regulation of insurance, tort issues, medical strong voice, enforcing our presence. If you malpractice reform, asbestos reform, tax issues, agree that our legislative involvement is importerrorism insurance, the crop program, flood tant to our profession, the independent agency insurance, agency licensing, new privacy prosystem and our livelihoods, then please contribposals and regulations for companies and agen- ute today! Remember, the updated motto is, “It cies, expanding risk retention groups to include is politics, and it is still your livelihood!” property, natural disaster reform, corporateThank you and may God bless us all. owned life insurance, the tax treatment of life insurance products, health insurance reform, Jo Ann Evans, CIC, LTCIS, CWIS, CDHC, is agency and much more are all issues that are being dismanager at Beimdiek Insurance Agency, Carcussed in Congress. thage, Mo. She is the chairman of the MAIA The future of our industry becomes greatly PAC Fundraising Committee, a position she has dependent upon our ability to become enheld since 2006. Evans served as the 2001-02 gaged in the federal political process. president of MAIA. InsurPac raises funds by asking for voluntary personal contributions. Why is InsurPac so es-

may-june 2012

Jo Ann Evans

Beimdiek Insurance Agency PAC Fundraising Committee

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technology A Millennial’s take on social media Lauren Foy

Independent agent Mike Foy asked his daughter Lauren, currently in college, to comment on a recent Independent Agent article, “Marketing to Millennials,” by Michael Fleischner. (Search “Marketing to Millenials” in the December issue of IA at www.iamagazine.com.) “Marketing to Millennials” is a good article discussing the way my generation would look at media and commercials for the insurance industry. As I discuss below, most of the article’s points are on target. Some, however, are more important than others.

Have a social media presence and make it genuine One of the better points Fleischner makes is: Make sure your company has a space among social media outlets. Keep in mind though not to be overly commercial. Millennials can

see right through it. Rather, be genuine and let your prospective market understand what you’re really about and what you stand for. While I am not sure how you can be insincere regarding matters of insurance, Fleischner makes a good point to be sure your target really understands what you are marketing. One example would be to not make a company look like a friendly, personal environment when chances are customers would have to get through many automated messages or new employees each time they try to contact the company. This just makes people angry. If you are trying to attract people through social media, it is much easier when the message and the reality are matching.

Engage on a personal level Another point Fleischner makes is to “communicate on a personal level.” This is an easy thing to do with blogs or Facebook, etc. I have become

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a “fan” of or “liked” a few companies that I never see again. Others now seem to haunt my Facebook wall. I think a medium level of posts is good. If you are on someone’s Facebook home screen too often with uninteresting comments, you are more likely to get hidden. However, I can think of two companies I see on Facebook a lot, and I am more likely to consider them when I am in the market. They do this by posting relevant comments and doing it on a consistent, reasonable basis. One company usually posts a fact, story or comment relevant to its product and ends the post in a question. This gets a lot of feedback and then is likely to show up on more people’s home screens. My generation feeds on being heard and finds it so appealing that we give more attention to the social media sites that try to engage us. I learned in my persuasive writing class that the best way to be effective in a blog setting is to use a question at the end so readers will feel like they have a say in your opinion and the topics covered. A good way to use this technique is by making a point with your question or crafting one that will get a lot of response from both sides. This will help get positive feedback as well as some insight into the opposing side.

Be consistent and creative

faster, providing answers to everything at our fingertips. With the invention of online radio, DVR, TiVo, live rewinding and pausing features, and smart phones, my generation grew up having everything we wanted whenever we wanted it. continued on page 15

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Two additional points in the article are also good ones: be consistent and be creative. These qualities help capture the attention of an otherwise preoccupied generation. While we are always multitasking, it is hard to pay complete attention to the radio or the TV while trying to do homework or another activity, so consistency and repetition are good tools to use. Creativity will always help a website when dealing with users from my generation. Also, I am always drawn to the website that looks more professional and attractive. For a generation that has grown up dealing with the Internet, a functional and appealing website shows that the business is viable.

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Information and contacts must be easy to find One point missing from Fleischner’s article, which is very important to understand when dealing with my generation, is that for the most part, we expect instant gratification. Everyone grew up with the Internet getting faster and

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technology

continued from page 13

Since we are so technologically literate, we have access to hundreds of websites selling the same thing. We have the knowledge to navigate our way through a website, but I doubt most of us have the time or the patience. We gravitate toward information, forms and products we can find now. This is an important aspect to marketing, because you can draw all the attention you want to your website, but if it is not easy to navigate or to find a way to contact someone, a good many prospective customers will drift to their second choice.

A functional and appealing website shows that the business is viable.

How I use the Internet to shop I use the Internet for almost all of my shopping. If I am at a shopping center and I need something, I will buy it there, but most other times, I rely on the Internet. I have always found it more convenient to go to a website than to find a store. Websites usually are easier to navigate, have more options and are more convenient. Generally, I will start with a website I have used before and have had a good experience with. If I have a longstanding relationship with a company, I usually trust that they have the best price. However, if it is a new website or one I have not used a lot, I tend to look around for a better deal before I commit to a purchase. My generation would rather not take a day to travel around and price shop when we can get the same amount accomplished in a much shorter period of time on the Internet. Many in my generation would rather do something on the Internet than pick up the phone and call. For the most part, I have found the Internet to be a reliable buying outlet, so there has been no reason to use another means of shopping. A few unappealing encounters can teach an Internet buyer to look into the company before buying from them. It is easier for a company to lie about their product when it is being presented on a webpage. This is where the relationship with a company comes into play. If you have bought a product with them that wasn’t as advertised, a bad relationship is created.

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Personal relationships are still important Personal relationships are still important for some things. I look at these relationships in a similar way to a website, in the sense that if I had a positive relationship with a store or service, I am more likely to return again. If the experience was negative, I will not return. There are a few things that I will never buy online, one of them being a cell phone. I got my first cell phone from a sales representative, Stan, and I have returned every time I needed a new phone or anything else cellular. On the other hand, there are companies I will never return to based on bad experiences. I am currently in the process of cancelling one of my debit card accounts because of such bad customer service. Customer service is where people establish relationships, and if the goal is to attract Internet users to come into an office or even pick up the phone to speak with a person, relationships play a huge role. Going back to the example of Stan, I have many opportunities and online resources to buy a cell phone or accessories on a website, but due to my strong relationship with one representative, I am always drawn to return to that store. These personal relationships give the customer a respect for the opinions and suggestions that one cannot get from a website or a representative in a call center. In a perfect situation, there would be a strong relationship with the personnel of the business, coupled with the support of a functional website or mobile app. Providing that personal relationship enhanced by these online tools is the best way to get my generation off the Internet and into the office. Lauren Foy is a sophomore at University of Rhode Island and can be reached at lauren_ foy@yahoo.com. Foy wrote this article for ACT. The Agents Council for Technology is part of the Independent Insurance Agents & Brokers of America. ACT’s website is www.independentagent.com/act. This article reflects the views of the author and should not be construed as an official statement by ACT.

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2012 Small Agency Conference Our 2012 Small Agency Conference featured keynote speaker Dr. Jason Selk. There were nearly 300 agents in attendance and once again, the trade show was an incredible success. Sessions with DIFP Director John Huff and MAIA legal representative Dale Doerhoff were especially well attended as agents sought answers to recent industry developments. For more pictures, visit us on Facebook.

Above: Mike Doak gives Stacey Eickhorst a prize. Left: An enthusiastic audience at the keynote speech

Right: CIC Conferees: back row: Darin Banner, Vance Allison, Eric Andrews, Aaron Loomis, John Higdon; front row: Constance McClellan, Darren Gabriel, Elizabeth Tomlin Right below: Jennifer Sprague awards Duke Churchill a Kindle.

Keynote speaker Dr. Jason Selk

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Above: MAIA attorney Dale Doerhoff at Friday’s special session. Top Left: Scott Minor and Gordon Weathers talk at the trade show. Middle Left: Bryan Brown visits with Sam Bennett.

CRM Conferee Eustacia Myers-Robinson

Bottom Left: Tony Becker talks business with Vance Allison.

Above: Josh Stafford and Jason Comfort share a laugh.

r at the to Jim Joyne s lk ta n o is b o ent Byron R MAIA Presid le. InsurPac tab Kevin Krueger discusses technology with Cliff Addison in the Idea Lab. may-june 2012

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Small Agency Conference continued from page 17

Gary Haney questions DIFP Director John Huff.

Above: CISR Conferees: back row: Vanessa Roberts, Katherine Rutsch, Curtis Kirchner, Kyle Tjeerdsma, Edward Cudak; front row: Sherry Neal, Diane Miller, Amy Fei, Marcetta Gustin Right: Jim Hagler and Brenda Link at an education session.

Crawfish Feast (below): Matt Alexander and Tim Wahl help themselves (left), and a group of MAIA members enjoy conversation (right).

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Š 2011 SECURA Insurance

Success is finding an advantage. Intensity can set one apart from all others. Agents know this. That’s why so many choose SECURA to help their business grow. Call 1-800-558-3405. Write your own success story.SM

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Commercial Personal

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technicalities Summertime blues Mike Edwards

faculty, Big “I” Virtual University updated by

Jack Chapman

Bowersox Insurance Agency Co. MAIA Technical Committee

Summertime brings new activities and situations and with those, new exposures and coverage needs or gaps. Here are some of the more common summertime activities and the insurance issues that they bring. This article references ISO forms.

Personal property Of an insured Under the standard ISO Homeowners Policy, personal property owned or used by an insured (Coverage C) is covered worldwide. There is an exception for personal property

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that usually stays in another residence of the insured (second home, etc.), for which only 10 percent of Coverage C applies. However, there is no theft coverage for watercraft and equipment, trailers, or campers away from the residence premises, nor is there theft coverage for personal property at any other residence except while an insured is temporarily living there. Of an insured who is a student There is a theft limitation for personal property at any other residence except while an insured is temporarily living there; however, property of an insured who is a student is covered while at the residence the student occupies to attend school as long as the student has been there at any time during the 90 days immediately before the loss. Of guests Under circumstances in which the insured wishes to make a claim for personal property of guests, there is coverage under Coverage C for: (1) property of others while the property is at the insured’s residence premises; or (2) property of guests while the property is in any residence occupied by an insured. In self-storage facilities Under the HO-2011, the limit of liability for personal property owned or used by an insured and located in a self-storage facility is 10% of the limit for Coverage C or $1,000, whichever is greater. However, this limitation does not apply to personal property usually located in an insured’s residence other than the residence premises. (Think about how this applies to personal property of a student that is put into a self storage unit during the summer.)

Vacation rentals Landlord’s personal property Under Coverage C, the eligible property includes personal property owned or used by an insured. This would include the household contents in a rented hotel room, condo, cottage, etc., for the perils covered by Coverage C.

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Landlord’s building items There is no Section I building coverage from the insured’s Homeowners Policy that extends to non-owned buildings off premises. Under Section II, property damage liability is excluded for property in the care, custody or control of an insured. However, the exclusion provides an exception for damage caused by fire, smoke or explosion. There is a small amount of coverage available under Section II’s Additional Coverage for Damage to Property of Others, which provides some modest relief for the “ccc exclusion” under property damage liability. Under the Damage to Property of Others provision, there is an exclusion for a premises owned, rented or controlled by an insured, other than an insured location. However, since one of the definitions of an insured location includes a premises occasionally rented an in-1 6052_Surplus Lines:Layout 1 5/25/11 12:39 PM toPage sured for other than business, in all likelihood, a

vacation rental would be within that definition.

Get more help covering those personal lines gaps at our June Risk Specialist Series course, Insuring Personal Lines Coverage Gaps. More information at www. missouriagent.org.

Loss of use In the event a fire or other peril damages the vacation rental and the insured has to make other arrangements, there is no Coverage D, Loss of Use. Coverage D only applies for damage to the residence premises.

Personal Auto Policy territory The defined territory in the PAP is the USA, its territories and possessions, Puerto Rico, and Canada. There is no ISO endorsement to broaden that territory. However, many personal umbrella policies provide worldwide auto coverage. It would certainly seem prudent to purchase liability coverage (and the collision damage waiver and loss damage waiver) from the rental car agency for rentals outside the PAP’s territory. continued on page 22

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 Breckenridge Insurance Services, LLC Burns & Wilcox - St. Louis Burns & Willcox - Kansas City 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 S.A. Freerks & Associates Swett & Crawford Westrope Westrope General Agency

314-436-3318 913-888-8400 417-869-2550 314-725-8394 314-819-0400 913-451-3135 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 314-436-2682 314-821-2699 816-842-8222 816-246-1200

877-642-2752 800-779-2550 800-999-4774 800-331-4128 866-476-0439 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 800-255-6503 800-725-7211 800-342-2601 800-788-4347

Fax 314-436-4309 Fax 866-936-0400 Fax 417-869-5102 Fax 314-725-4317 Fax 314-819-0440 Fax 913-451-3156 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 314-436-1532 Fax 314-822-2135 Fax 816-842-3081 Fax 816-246-1290

www.3dstarinsurance.com www.ASLAINC.net www.bcmins.com www.breckis.com www.burns-wilcox.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.safains.com www.swett.com www.westrope.com www.westrope.com

Association of Missouri P P. O. Box 67 • Jefferson City, MO 65102-0067 (573) 635-0736

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technicalities continued from page 21 Rental watercraft Liability Section II of the Homeowners Policy responds for bodily injury and property damage for the use of all rented watercraft, with two exceptions: rented inboards (and inboard/outdrives) over 50 horsepower and rented sailboats over 26 feet. By far the most common vacation rental watercraft is a Jet-Ski type personal watercraft. Unfortunately for insureds, nearly all are propelled by inboard engines over 50 horsepower. Even for insureds who own watercraft

at home and have added the Watercraft Liability Endorsement HO 24 75, there is no coverage for rented Jet Skis. The endorsement only provides coverage for scheduled watercraft. Pontoon boat rentals have become more popular. Most are propelled by outboard motors, and these are covered for liability regardless of horsepower. Many PUPs provide broad, nonowned watercraft liability coverage, including Jet Skis. Physical damage (hull) Under Coverage C of the Homeowners Policy, there is coverage for “personal property owned or used by an insured while it is anywhere in the world.” There are three issues. One, Coverage C in the HO-3 is subject to named perils. Two, there is a limitation for watercraft under the Special Limits of Liability provision. Three, there is no theft coverage for a watercraft away from the residence premises. Under Section II, there is a property damage liability exclusion for property in the care, custody or control of the insured. There is no coverage for watercraft under the Additional Coverage for Damage to Property of Others. Many personal umbrellas provide broad coverage for property in the insured’s care, custody and control, and coverage could be found there for hull damage to rented watercraft, but some PUPs specifically exclude coverage for damage to rented watercraft.

Rented go-carts, ATVs, etc. The Homeowners Policy provides Section II bodily injury and property damage liability coverage for non-owned, off-road recreational vehicles not subject to registration. Under Coverage C in the Homeowners Policy, the only types of motorized land conveyances eligible for physical damage coverage are those which are service vehicles or assist the handicapped.

Owned go-carts, ATVs, etc: offpremises liability Some insureds take their go-carts and ATVs along on vacation. Liability for use of such owned vehicles off the residence premises is extremely limited. In the context of a vacation trip,

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coverage would apply to accidents which occur at: (1) a secondary residence declared or newly acquired; (2) any part of a premises where an insured is temporarily residing; (3) vacant land owned by or rented to an insured; and (4) any part of a premises occasionally rented to an insured for non-business use.

newsletter or see other features offered. If you want to read current or past articles as a Big “I” member, you can access them using your MAIA member name and ID. If you are unsure what your user name or ID are, contact Dawn at the MAIA office at 800-617-3658 or dpatterson@ moagent.org.

Trip cancellation and travel insurance

Mike Edwards, CPCU, AAI, heads an insurance training firm in Atlanta, Ga. He has previously served as the director of education for the Independent Insurance Agents of Louisiana and as a senior instructor with the Florida Association of Insurance Agents.

Veteran travelers know all too well that many unpleasant surprises often await the unsuspecting traveler. Trip cancellation and travel insurance can provide many needed coverages for the traveling public, especially where extensive reservations and plans have been made. Note: If you have not already discovered the valuable resources at the Big “I” Virtual University, we highly recommend that you go to http:// www.iiaba.net/vu. You can subscribe to the

may-june 2012

Jack Chapman is a producer at Bowersox Insurance Agency Co., St. Louis. He is a past president of MAIA. Chapman has been a member of the MAIA Technical Committee since 1991 and has served as its chairman since 1999. Chapman updated this article to reflect the latest ISO forms.

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Book Excerpt

All’s Fair: Love, War, and James Carville and Mary Matalin are the featured keynote speakers for the 2012 MAIA Leadership Conference. See their bios on the wrap that came with this magazine, and use the form to register by mail. Online registration is available at www. missouriagent.org.

It was another day, another disaster. We I was driving on a highway with George and my had a message to get out, to tell the good partner, Paul Begala, and we got beeped. people of the state of New Hampshire who Our van was cruising in a major-league hurry Governor Bill Clinton was, what he stood for a telephone. We passed the Hillbrook Motel for, and why they should vote for him in this in Bedford, New Hampshire, but it didn’t have a leadoff primary. But were we doing it? No. pay phone. We needed privacy. “Look, just give We’d spent almost a month dogged by Gen- us a phone. How much is a room? Ninety bucks? nifer Flowers and the press hounds on the Here’s the money, here’s the credit card, just give trail of the smoking bimbo. The Republican us the room, I don’t care what it costs.” This was party had played no small part in that paa phone call worth the price of a motel room. rade of trash and now, when we had almost Ted Koppel had gotten the letter from another put it to rest, all of a sudden ABC News source and was talking about going with it on shows up with this twenty-two-year-old Nightline. letter from Bill Clinton to the head of the The governor called Koppel the next morning University of Arkansas ROTC program. Now and they had a discussion about the letter. Nothhow the hell did they get that? ing got resolved. We weren’t sure what Koppel Mark Halperin of ABC said, “We have this was going to do. letter that Clinton wrote to Colonel Eugene But each of us knew what the results would Holmes in 1969. We want to show the letbe. Very soon that letter would get out and all ter to the governor, do hell was going to break loose. an interview, and get his Was the media going to tell Now we had some comments.” the voters about Bill Clinton’s evidence that they It was the Thank-youposition on health care or what for-saving-me-from-thehe could do to strengthen the were monkeying with draft letter. When George economy? Of course not. All the election here. Stephanopoulos read it the networks and local stations he said, “That’s it, we’re would lead with another take out of the race, we’ll never on “Slick Willie.” That was all survive.” But that’s George, he has a strong you’d be reading about in the papers or hearing streak of pessimism that he’s got to run on talk radio. It would be another day, couple through before he kicks into gear. of days, or a week off message. If things kept I read it and said, “Partner, this is a hell on the way they were going we’d never get our of a letter. This letter is our friend, this message out; we’d never talk about anything imletter will save us. This is a torn man. portant or anything that could help Bill Clinton People will understand this. get elected president. “We have to want questions on this Governor Clinton asked, of course, but Koppel letter,” I said. “We’re going to publish wouldn’t say where he’d gotten the letter. He this letter. We are going to be very agwasn’t going to reveal his sources. But Koppel gressive about it—“ did tell the governor that he was under the im“Oh, man …” pression the letter had come from somebody at “Look, I’m telling you, if you let them the Pentagon. take excerpts out of this thing, it’ll kill us. All right. Now we had some evidence that they If you read this letter in its totality, you say, were monkeying with the election here. Now I ‘Geez, I want a president who could write had an enemy. Something out of his files? They’d a letter like that when he was twenty-one taken something out of Bill Clinton’s files? Those years old.’” are confidential. I called Koppel and said, “We’ve ABC didn’t go with the story on Monday, got to blow this damn thing up about the Rewhich was fine with us. We had spent the publicans using the Pentagon.” night in western New Hampshire, away Nightline didn’t go with the letter on Tuesday, from our headquarters in Manchester. which was a big break for us. We wanted to be Tuesday morning on our way back there with the news first. continued on page 39

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Running for President In various corners and offices of campaign Now, Teeter and Carney and Torie and Charheadquarters, campaign manager Bob Teeter, lie and Tell had never met James. It was early chief strategist Charlie Black, director of reFebruary 1992; he was just some political consearch David Tell, field director David Carney, sultant I was consorting with that they’d heard and press secretary Torie Clark had all been about. My assistants, who had come with me watching CNN. The TVs were on pretty much to the campaign from the Republican National all day. Not mine, I was on the phone, preoccu- Committee and who had just run into my ofpied with endless catastrophes. The campaign fice to see what all the shouting was about, hierarchy stampeded through my office door knew him better. He was the guy who was like wild elephants. in and out of the RNC every day bringing me “Mary, Mary hang up, get off the phone. tuna sandwiches, doting on me, keeping my Look, you have to see this!” office stocked with a fresh supply of flowers. “What? What’s going on?” Everybody was standing there huddled “Your boyfriend has lost his mind! He’s havaround my little TV and I just had to laugh. ing a nuclear meltdown! Turn on CNN!” They It had never occurred to me that he could be flicked on the television that was perched on perceived as a crazy person. top of the little icebox I moved from campaign “Look at that face,” said the new guys. to campaign. “He’s a madman. He’s demonic. He’s a Of course by the time they got in there we’d serpenthead!” missed it, so we had to wait Okay, as media guru for the replay, which, on CNN, Roger Ailes put it, someHe was going to wasn’t very long in coming. times Carville does look charge the Republicans All the while they were trying like a fish who’s swum too to describe this bizarre scene and the entire governclose to a nuclear reactor. to me. Finally it reappeared. But he was my man. ment with dirty tricks. They were screaming, I had seen it all before. “There it is! There it is!” I had seen James fake a That was James, all right, heart attack to get a good in the middle of a ferocious media feeding table at a chichi restaurant. He can be a little frenzy. Unshaven. Hair, such as it was, askew. theatrical. Standing in this ripped-up ratty old Burberry The three women who worked with me with the torn collar and Frankenstein stitchat the RNC kept waiting for what it was ing. Wearing some goofy T-shirt. There were these guys were seeing as unusual huge dark circles under his eyes and he had behavior. the hollow-eyed look he gets when he’s in full “Yeah,” they said. “So?” rant. His long arms flailing, he was screaming “That’s how he always is,” I said. “But demonically into their faces. forget how he’s acting, listen to what he’s The reporters were all yelling questions at saying.” the same time and his head was snapping We weren’t paying much attention from side to side like he was getting smacked. to the Democrats at this point; we had David Gergen was leading the inquisition. enough trouble dealing with Pat BuNBC’s Andrea Mitchell asked him a question chanan and figured we’d just let Clinton and he screamed at her. Syndicated columnist and Kerrey and Harken and Tsongas and Ben Wattenberg and all these big-time netBrown beat each other up for a while. work and political reporters were after him. We’d get involved when the time came. “If you let the Pentagon dictate the course But I could see where Carville was goof a presidential election,” he told them, “you ing with this outburst. This was a preemptive are missing something big.” strike. He was going to charge the Republicans And from all sides of me my GOP sisters and the entire government with dirty tricks. and brothers were laughing. “See him? Oh, Ever since Nixon it’s been a charge my God.” “This man has lost his mind. He’s in meltdown.” “Mary, we love you but your boyfriend’s imploding!” continued on page 39

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2012 Leadership

education Best Practices: Business Continuity Planning

Jon Persky, 9 a.m. - 12 p.m., Wednesday, July 18 Are you planning to retire someday? When? Who are you going to sell your agency to? Or are you thinking about buying or merging with another agency? This three-hour seminar will discuss the perpetuation of your agency and what your options are when you get ready to retire. It will also address share-holder agreements, methods of transferring ownership and the associated tax implications.

Best Practices: Motivating and Compensating Producers and Staff Jon Persky, 1 - 3 p.m., Thursday, July 19 Are your producers and staff receiving fair compensation for their efforts? How does your compensation plan stack up against other agencies? What can you do to motivate your producers and staff to work more efficiently and profitably? This seminar will focus on using different methods of compensation for producers and staff while maintaining an appropriate agency profitability level.

Eggs and Issues Larry Case and invited guests Gov. Jay Nixon and DIFP Director John Huff, 8 - 9 a.m., Friday, July 20 Eggs and Issues is your chance to get information right from the source. This question-and-answer session gives you access to MAIA executive vice president Larry Case plus special invited guests Missouri Governor Jay Nixon and the director of the Department of Insurance, Financial Institutions and Professional Registration, John Huff. They will address audience questions over regulatory and legislative issues affecting the insurance industry, including implementation of health care reform, workers’ compensation issues and national licensing reform. Bring your questions, or just come to learn from others. Either way, this unscripted session is a unique opportunity to put your officials to work for you.

Crisis Management Planning Featuring an Agent Panel: Lessons Learned in Joplin David Holt, 9 - 11 a.m., Friday, July 20 It is no surprise to any insurance agent that fires, floods, tornados, hurricanes and earthquakes change normal circumstances and disrupt business. It is also no surprise that errors and omissions claims against insurance agents are often made as a result of a lack of insurance coverage for an event like a fire or flood. In this session, we will talk about possible disruptions to an agent’s business from disasters, some things to consider in planning ahead and ways to reduce the risks of E&O claims arising out of an interruption to your business from a disaster. A panel of agents from Joplin will discuss their experiences.

The beautiful Lodge of Four Seasons

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Conference

events

Opening Night After-Party

Mega Trade Show

When you leave the exhibit hall, continue the fun and excitement at our After-Party. Sit back, sip your cocktail and snap your fingers. Our completely casual night-club environment is the perfect way to cap off your opening night at the conference.

More than 65 insurers, technology vendors, MGAs and others will proudly display their wares in MAIA’s trade show. Learn all about new markets, products and services available to you and your agency. The exhibit hall will be open Wednesday evening for our Block Party and Strolling Dinner. It will open again Thursday morning starting with a book signing session with James Carville and Mary Matalin and ending with lunch and prizes. On Thursday, bring the entire staff! Fully registered member agents can bring additional staff to the Exhibit Hall Thursday only for just $25 each. This includes lunch and the company prize drawings!

Banquet and Dance It’s the Missouri Association of Insurance Agents’ most important night of the year. Join us for a sumptuous meal and the installation of our new board officers. This is also when we bestow the association’s highest honors: Insurance Person of the Year and the E. Ellwood Willard Outstanding Service Award. Dress at this prestigious event is black tie optional. Following the banquet, you can once again enjoy the music of Scott Laytham and Karl Holmes.

Golf Tournament & Pool Party Our optional golf tournament will be held at The Cove, The Lodge’s newly renovated signature course designed by the legendary Robert Trent Jones. This par-71 championship course challenges guests with its rolling greens, 65 bunkers and signature Hole 4. Panoramic views of the scenic hills complement the golfing experience. For those who don’t want to golf, MAIA will host a pool party Thursday afternoon at The Lodge of Four Seasons’ beautiful pool overlooking the lake.

Block Party and Strolling Dinner Join us for our annual (adults-only) Block Party and Strolling Dinner. On Wednesday night, the exhibit hall will be transformed into a theme party extravaganza, with each of our four “blocks” (and their occupants) transforming into one of four television show genres. Don’t worry, our company partners will do all the work. Just come and enjoy the sights, sounds, food and drinks. And don’t forget to vote for your favorites.

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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


fromtheDIFP The 2011 annual report I had the privilege of attending your Small Agency Conference in Columbia in March, which gave me the chance to meet with many of you in person and solicit your feedback and concerns. During my remarks to a large audience of agents and vendors, I mentioned that our 2011 DIFP Annual Report would soon be released. For the second year in a row, our report is not being published and instead is designed exclusively for online viewers. Beginning in 1870, Missouri’s insurance regulators produced some form of published report, many of which were more than 200 pages. But this is one of the many ways we have responded to Governor Jay Nixon’s direction to all state agencies to improve efficiencies and maximize technology wherever possible. The new report, released in March, shows a year of records for many divisions of our department, including insurance, banking and credit unions. We are all too familiar with the unprecedented natural disasters of 2011, which started with historic flooding in southeast and northeast Missouri and included tornadoes in St. Louis, Sedalia and Joplin. That led to just a few of the records we reflect in the report.

Joplin tornado The May 22, 2011, EF-5 tornado is the largest insurance event in Missouri history, with paid claims at $1.3 billion at the end of 2011. Insurers had paid $1 billion in just the first 100 days after the event. I expect claims to top out at around $2 billion by the time it’s all said and done. One priority for me has been the ratio of paid to incurred claims on personal lines, and I’m pleased to report excellent progress there. Paid to incurred was 92 percent for both homeowners and private auto. Commercial claims still have a way to go, but that’s not uncommon in a large event where there can be negotiations related to business interruption or other complex types of coverage.

Premium volume Missouri’s insurers hit the $30 billion milestone for the first time in 2011. This number includes licensed carriers, as well as surplus lines writers,

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risk retention groups and captives. The number of licensed insurers has stayed consistent over the past three years at about 1,900. Captives wrote $1.7 billion in premium in 2011 and should contribute $1 million in premium tax to general revenue for the first time.

Consumer complaints and recoveries Consumers who filed complaints received an extra $19.2 billion in insurance claims payments, the highest number in DIFP history. When you add recoveries from market conduct exams and investigations, the number is $21 million. That far exceeds the previous record of $14.6 million set in 2009.

Licensed agents The number of agents licensed by DIFP is also at an all-time high, at more than 143,000. This includes insurance agents and agencies, as well as bail bond agents and public adjusters. Our annual report shows the number of carriers offering coverage in various lines. For the most part there’s good news to report, with more than 300 carriers writing workers’ compensation and more than 130 writing homeowners. The health lines are less competitive, however, with a limited number of carriers offering coverage in the individual, small group and large group markets. The bottom line is that Missouri has a healthy, competitive insurance market for consumers, who have hundreds – or in the case of agents, thousands – of choices. As always, please contact me, our licensing section or any part of our leadership team any time you need assistance. Thank you for all you do on behalf of Missouri consumers, who look to you as their trusted resource for protecting their property, their families and their businesses.

John M. Huff

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

This article expresses the official views and opinion of the Mo. Department of Insurance, Financial Institutions and Professional Registration, which may not necessarily be those reflected by the Missouri Association of Insurance Agents.

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New Trusted Choice

mobile app With last year’s wave of tornados in the Midwest and this spring shaping up to be equally active, we’ve all gotten an unfortunate reminder of what’s often missing when a client files a major homeowners claim: an accurate and up-to-date home inventory. Having a home inventory can be the difference between a relatively smooth claims process for your client and a nightmare of going back and forth with a company to make sure that your client’s possessions are replaced. Fortunately, technology has become a tremendous resource for putting together a comprehensive home inventory, which can be invaluable to your clients if they have a major loss. The Trusted Choice Mobile Insurance Tools app, available at www.trustedchoice.com/ Content/Articles/get-our-app.aspx, includes this capability, so a home inventory for each of your clients is now just a few taps on a smart-phone screen away from becoming a reality. Your clients can create multiple inventories, giving them the option to sort their possessions by room or by item (electronics, jewelry, furniture, etc.). The advantage of doing an inventory this way is that because the information is stored electronically, managing and keeping separate paper files or video cassettes in a fire-proof cabinet or safety deposit box is not necessary. The mobile app was developed in partnership with the team at Project CAP as a means to help digitally connect agents and consumers with one another and to leverage technology to make the overall insurance experience better for both parties. When a consumer downloads the free app from either iTunes or Google Play (formerly the Android Marketplace), they’ll not only have the home inventory application, but if they don’t already have a Trusted Choice agent, they can find one using the Trusted Choice Agency Locator. If you’d like to get your own customized version of the application for your clients, you can purchase it for as little as $20 per month at projectcapmarketing.com/insurance-marketingpackages/, and the custom version will incorporate your agency logo and color scheme and will not include the “Find an Agent” locator. You can make this version of the app available

may-june 2012

to your clients, and clients who have already downloaded the generic version can easily switch to your agency’s customized version. Other tools on the app include a form to document an auto accident. When your clients are in an accident, whether it’s their fault or another driver’s, one of the first questions they ask after determining if everyone is OK is, “What do I do now?” The accident reporting tool helps them answer that by allowing them to record the date and time of the accident, take on-the-spot photos using their smartphone’s camera and gather the critical information from the other drivers involved, as well as from anyone who may have witnessed the accident. Finally, they can add any notes to the report. (Example: “It was raining heavily and visibility was low.”) Being able to gather all of this information at the time of the accident will help the claims process move efficiently, and all the information is saved on the phone to access later. The Trusted Choice app is a great tool for you to be able to provide to your clients and demonstrate that your agency understands the changing needs and habits of consumers. Encourage them to use it to create a home inventory and let them know it’s a convenient reference to be able to use if they have an accident. It will help them feel taken care of, and the information they enter into the app will help you provide a higher level of service during the claims process if they do face a loss. Sign up for the customized version today, and encourage your clients to download the app to their iPhones, Androids and other mobile devices.

Paul Banuski

communications manager, Trusted Choice

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&

news know-how

EXT R

A!

CAP: What it is and why you care Katie Butler editor, IIABA

32

missouriagent

34.5 percent and falling That’s the share of the personal lines market independent agents currently claim. And with 75% of consumers starting their search for insurance online, how do independent agents fit into the new buying dynamic? Below are key perspectives on Project CAP (www.projectcap.info) from three leaders of the movement. Project CAP is an initiative led by the Big “I” and six independent agency carriers – Central Insurance, Main Street America, Safeco, Selective, State Auto and Westfield – to help member agents regain their personal lines market share online.

The following questions are answered by IIABA Chairman of the Board Tom Minkler, CIC.

When did you notice that traditional marketing methods weren’t working in your agency? Why? We have always measured where business is coming from. Historically, we would lose 10% of the personal lines business each year and backfill with 10% new business (like referrals). We didn’t really work it very hard. Around four years ago, that started to change, and it was around the same time as the national direct writers started spending millions of dollars a year in advertising. We just weren’t getting the opportunities anymore. That 10% new business went to 8% then to 6%. The downward progression was steady. We still had 10% attrition, but we weren’t getting 10% average replacement. We knew we had to think more digitally.

may-june 2012


I knew if it was happening to me, it was happening to other agents. I thought [IIABA] was the best entity to help resolve it. I couldn’t imagine any way to resolve it on my own.

CAP can help take you to the next level. If you’re not in the digital world, CAP will be able to help agents get started.

How will Project CAP help?

What’s your answer when agents ask you, “What’s in it for me?”

I describe Project CAP not as a technology solution but more of a marketing initiative to let us have the conversations we’ve been missing out on with consumers. How do we take what we already do well and get the message out in a different forum? Project CAP will give agents new opportunities to talk with the 70% of the market that doesn’t do business with us today in personal lines.

How will CAP fold into an agency’s existing marketing strategy? There are two equal halves. One is the Consumer Portal: a physical website for consumers [to find independent agents and get quotes]. The other half gives agents digital marketing tools, education and support so that they can play and win in the digital space. If your agency is already marketing in the digital space, Project

There are two equal halves. One is the Consumer Portal: a physical website for consumers [to find independent agents and get quotes]. The other half gives agents digital marketing tools, education and support so that they can play and win in the digital space.

I let agents know that Project CAP offers many choices, ranging from a basic package that is free to Trusted Choice agencies to self-directed packages to done-for-you professional services. By virtue of being an independent agent and in Trusted Choice, agents will have new, exclusive, qualified prospects sent to them at a nominal cost. Beyond that, when 70% of the market doesn’t know how to find you, Project CAP can help position you immediately to get many more opportunities for consumers to talk to you, from filing blog content to what do you do with your Facebook page and much more.

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continued on page 35

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missouriagent

33


MAIA SuMMer eventS Young Agents Conference

Mo. Trusted Choice Golf

Leadership Conference

June 3-5, 2012 Hilton Promenade, Branson

June 27-28, 2012 Whitmoor Country Club, St. Charles

July 18-20, 2012 The Lodge of Four Seasons, Lake Ozark

About the Conference

What is it?

About the Conference

This family friendly event is designed to help new

The Missouri Trusted Choice Big “I” Championship

This conference is especially for agency

insurance producers succeed through motivation,

is the junior golf state tournament from which

principals, owners, managers and any-

credit

education designed specifically for the young

two boys and one girl will qualify to play in the

one else who guides the insurance

pending

agent and networking opportunities, such as the

44th annual Trusted Choice Big “I” National Cham-

career of another. We pair relevant

optional golf tournament and the annual awards

pionship in August. The national tournament is

education sessions with networking that

banquet. Participation provides a firm foundation

the third oldest junior golf event in the U.S..

is second to none for an event that will make you

for a leadership role in the industry. Up to 5 Credits CE

Featuring

ce

more committed and enthusiastic than ever.

How Can I Help? MAIA needs both individual volunteers for the

Featuring

Our motivational featured presentation

days of play and agency sponsors to help fund the

One of America’s best-loved political couples,

will be given by speaker and corporate ma-

tournament. We have three levels of sponsorship

Democrat James Carville and Republican Mary Ma-

gician Jon Petz. Petz has a history in sales and has

at $100 (general), $250 (mid-level) and $500 (up-

talin, will give audience members an entertaining

worked with such clients as the U.S. Air Force and

per-level), with signs to recognize each sponsor at

look at today’s most important political issues,

AT&T. He has appeared on all the major TV net-

their chosen event. This is a great opportunity to

how a presidential campaign is put together and

works and has opened for Rascal Flatts and the

get public relations exposure for your agency to

behind-the-scenes insight at politics inside Wash-

American Idol Tour.

Missouri families from around the state.

ington, D.C.

regISter onlIne At www.MISSourIAgent.org.

Educ

tion

Upcoming Designation Courses from MAIA Register online at www.missouriagent.org.

for insurance professionals

Programs that Give You “Response-Ability” CIC Institutes for • Agents and brokers • Insurance company personnel CISR Seminars for • Account reps and managers • New producers • All others on the front line

CISR Seminars Commercial Property Seminar May 16, 2012, Independence May 30, 2012, Chesterfield June 7, 2012, Jefferson City

Agency Operations Seminar June 26, 2012, Springfield July 31, 2012, Independence Aug. 21, 2012, Chesterfield Aug. 23, 2012, Cape Girardeau

CIC Institutes Commercial Casualty Institute June 13-16, 2012, St. Charles

Life & Health Institute Aug. 8-11, 2012, St. Charles

Don’t forget our online CE opportunities at www.missouriagent.org! 34

missouriagent

may-june 2012


news&know-how The following questions are answered by IIABA President and CEO Bob Rusbuldt.

Why is the Big “I” behind Project CAP? The Big “I” is well known for our legislative, regulatory and legal advocacy, and our errors and omissions program, but what many agents do not realize is the important work we do to position independent agencies for the future. We study consumer behavior, technology trends and more in order to fulfill the mission statement of the IIABA: “Provide members with a sustainable competitive advantage.” The Big “I” understands that the status quo in personal lines is not acceptable for independent agencies. We must do business the way consumers want to do business, not the way we want to do business or the way our company partners want to do business. Agencies need to participate in digital marketing and understand current and emerging consumer behavior if we want to truly compete in personal lines with the direct writers.

The following questions are answered by Scott Deetz, Project CAP CEO.

How will you generate traffic to the Consumer Portal? We will leverage paid media, but earned or organic media will be our most important resource for generating traffic, and it comes at a far smaller cost. Direct writers and captive agent carriers have had an advantage historically with heavy spending on paid media. With over 22,000 IIABA members, our strength in numbers can help us generate unsurpassed organic media opportunities. Especially with the rapid expansion of mobile devices, techniques such as search engine optimization and social media communication can generate tremendous traffic to a website.

What will the user experience be when consumers access the Consumer Portal?

continued from page 33

Why the sense of urgency? We have seen the trends in personal lines, and we know consumer behavior has changed and will continue to change rapidly. Independent agents and independent agency companies need to operate in “Internet time” in order to effectively compete in the personal lines marketplace of today and tomorrow.

What is the role for independent agency carriers? Consumer Agent Portal is a separate corporation that exists for one primary purpose: to push business to independent insurance agencies and independent agency companies. While the investor companies are helping to shape Project CAP and will have some financial benefits other companies don’t have, Project CAP will serve all independent agency companies. Many companies have already informed us that they plan to participate on the Consumer Portal and will purchase digital marketing packages form Project CAP for their VIP agencies.

CAP will access the appropriate carriers in real time to get quotes. Consumers can select the agency they want to work with based on personal preferences: geography, areas of specialty, hours of operation, etc. Only agencies that match the specified consumer preferences will be displayed, and then consumers will select an agency. Once the agency is selected, the Consumer Portal profile page is displayed so that consumers can contact the agency via chat, phone or email. The agency can specify hours of operation and contact method preference. CAP will have after-hours call center services to facilitate calls or online chats with consumers if an agent isn’t available. The benefit is that, for the first time, agencies can get sales leads 24/7 as opposed to only during business hours. The Consumer Portal is not an aggregator. It generates exclusive, inbound prospects for agents. These consumers are calling you specifically.

Bob Rusbuldt

Scott Deetz

When consumers request an initial quote, they only enter partial information. Then Project

may-june 2012

missouriagent

35


&

errors omissions Some do’s and don’ts of being a producer For insurance agencies, the degree to which its insurance producers perform their jobs professionally and ethically can greatly determine not only the agency’s success but its errors and omissions risk as well. Producers must have a strong technical knowledge of the industry, and there is definitely plenty to learn. As they interact with prospects and customers, producers will be looked upon to impart degrees of this knowledge to assist the public in protecting their customers’ assets. To ensure they are properly educating the public, producers must make a strong commitment to not only knowing the various classes and lines of businesses but also what differentiates one from the other. While a pre-licensing class addresses this to a degree, an ongoing commitment to learning and knowledge is vital.

Know your client Once a producer has the knowledge, is he or she ready to sell? Having knowledge with no sales skills – or sales skills without knowledge – is a glass-half-full scenario. It also can be dangerous for the agency from an E&O perspective. Learning the sales process is critical, yet the sales process doesn’t end when the sale is made. Many organizations that provide solid training for sales and marketing break sessions down to pre-sale, sale and post-sale. How producers conduct themselves during the complete sales process will likely determine whether they are successful and to what degree they may be an E&O risk. Before that first appointment, the producer should get to know his or her client. One approach is by using the various exposure analysis checklists, which provide tremendous detail by line of business for more than 650 classes. For example, before visiting a prospect who is a dry cleaner, the producer must educate him- or

herself on the exposures a dry cleaner faces. In addition, using available resources such as websites to understand your clients can be beneficial. When interacting with the client, it is extremely important that producers realize that in many, if not all states, an insurance producer has a common-law duty to obtain the coverage the client specifically requests within a reasonable time or inform the client of the inability to do so. Accordingly, producers must do a fair share of listening to what their customers and prospects are asking for.

Curtis M. Pearsall special consultant, Utica National E&O Program

Use the right words While producers want and need to sell to be successful, there is also tremendous pressure and competition. There are times where marketing “puff” may enhance producers’ ability to be successful, yet the words and phrases they use in promoting themselves and their agencies should be chosen carefully. Telling customers and prospects you are an “expert” in insuring restaurants or that “At XYZ agency, we make sure you are properly covered” may sound impressive, but it can also lead to the producer and the agency being held to a greater degree of liability should a problem develop due to a “special relationship.” Moreover, avoid using the word “recommend.” It might sound harmless, but if you recommend that the client secures a $1 million umbrella and they ultimately have a loss well in excess of the $1 million, you could face an E&O claim for “recommending” a limit that was insufficient for the loss suffered. Inherent in all of the interactions, whether with the prospect or the markets you are using, is the need for prompt and professional documentation. This is a key ingredient but one that many producers struggle with. It’s as if the words “documentation” and “producer” just continued on page 38

may-june 2012

missouriagent

37


errors&omissions

continued from page 37

don’t go together. If a problem develops, this promptly. In all but a few states, clients have documentation – or lack of – will heavily dea duty to read their policies. Strongly encourtermine the direction of the E&O claim. Docuage them to do so, and advise them to contact mentation is not an option; it is mandatory. It the agency as soon as possible if they have any Contractors businesses from the groundquestions. up. Nail must also build be prompt and professional. There will situations where documenting the es-coverage. It willWe be necessary over time for the accounts down a be major risk factor with our liability can sence of the conversation back to the prospect to be remarketed to other carriers in your ofprovide Commercial General Liability onthe an occurrence or customer, whether face-to-face or over fice. When moving an account from Company phone, is a must. A to Company B, advise the customer of any basis for small residential and commercial general coverages they are “giving up” with Company B. contractors through an A.M. Best Rated A+ (Superior), Documentation of these discussions is vital. It’s your choice Being a producer requires tremendous knowlDoes the customer always buy all of the covFinancial Size Category Class VIII carrier. edge, professionalism and attention to detail. erages noted in the proposal? No. Producers This will go a long way to ensuring success. Withshould get the customer’sgeneral sign-off on the cov-surplus We’re one of the nation’s leading managing agents, lines out these attributes, you are an E&O nightmare erages and limits they will not be securing. brokers. M. J. Kelly’s steady growth over three decades is founded on the waiting to happen. It’s your choice – and the Let’s say the producer received the order consistent delivery of quality markets superior service. right choice should be easy to make. and requested theand policies. Once they are received, it is crucial that the policies be reviewed to ensure they reflect what was Curtis Pearsall, CPCU, AIAF, CPIA is president of ordered. The producer should have a hand Pearsall Associates. He is a special consultant to REMEMBER TO FINANCE WITH M. J. KELLY COMPANY. in this process. Look to deliver the policies the Utica National E&O Program.

Contractors build businesses from the ground up. Nail down a major risk factor with our liability coverage. We can provide Commercial General Liability on an occurrence basis for small residential and commercial general contractors through an A.M. Best Rated A+ (Superior), Financial Size Category Class VIII carrier. We’re one of the nation’s leading managing general agents, surplus lines brokers. M. J. Kelly’s steady growth over three decades is founded on the consistent delivery of quality markets and superior service.

REMEMBER TO FINANCE WITH M. J. KELLY COMPANY.

38

missouriagent

may-june 2012


All’s Fair

continued from pages 24 and 25

So Wednesday at noon we held a press event in an airport hangar in Manchester and released the letter ourselves. After it was over there was a spin session and the media just went crazy. So did I. “What is the Pentagon doing leaking something – Lemme finish! The larger question here is, What in the world business does the Pentagon have in the middle of a political campaign?” “Why did the Pentagon release the letter?” a reporter asked. “Let’s try a case of rocket science,” I told him. “Here’s an article in The Wall Street Journal on Friday and here’s a story that looks like it might be going away. And somebody says, ‘Aha! Look, we have something that can kick this story an extra day. Because if Clinton is talking about the draft, he’s not talking about the fact that we’ve had the lowest GNP growth under this administration than we’ve had under any administration in the history of this country; he is not talking about the fact that George Bush has had four different positions on the civil rights bill in two months; he is not talking about the fact that taxes have gone up for the middle class while services have gone down … So, what we will do is we will leak this to the press and we will get the microphone in Bill Clinton’s face talking about something that is not particularly advantageous to him … and we will block him out from talking about the things that made him the leading candidate.’ You understand? That’s what’s going on here. And if nobody can see that, I can’t explain it to you.” Of course, as it turned out, I was wrong; the letter came from somewhere else. But, hell, I was angry. And it made the evening news. In fact, as disruptive as that letter was, it kind of turned a corner for us in New Hampshire. It lit a fire, raised the bloodlust, gave us something to fight.

a joke. People would make fun of me because James was so crazy. They kept creating names for him and trashing him when he showed up on TV. “Serpenthead” stuck. Torie Clark, who was my good friend, would always talk to her mother about characters on the campaign. Her mom called up one day and said, “I’m very concerned about your little friend Mary. Every time I see that man on TV he just … sweetheart, he looks like he eats small children.” From then on, in Republican campaign lore James was the Man Who Eats Small Children.

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that’s worked against Republicans. We had taken a lot of heat for our paid media in the 1988 presidential campaign, and now here was my boyfriend trying to create another smokescreen and cut into our ability to hit Bill Clinton hard. It was a winner’s tactic. For all of his seeming lunacy, you had to admire his technique. But the campaign was so freaked out over his appearance, they missed the content. They thought he was a total nut case and dismissed the possibility that he could do anything sane or productive. Inside the campaign, it became

may-june 2012

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regulatoryactions Enforcement actions

Market conduct exams

• Lester L. Dills, St. Charles, Mo., insurance producer license issued under probationary terms.

• American Guaranty Title Insurance Co., Minneapolis, Minn., stipulation of settlement filed and voluntary forfeiture of $15,000.

• Matthew L. Foster, Unionville, Mo., insurance producer license revoked.

• Central United Life Insurance Co., Houston, Texas, examination dated July 10, 2009, is accepted as filed.

• Randal Greenwalt Jr., Florissant, Mo., motor vehicle extended service contract producer license refused. • Dana C. Hutchison, Gilbert, Ariz. (last known), nonresident insurance producer license refused. • Daniel W. Kemper, Hallsville, Mo., insurance producer license renewal refused. • Raymond W. Lord II, St. Peters, Mo., motor vehicle extended service contract producer license refused. • Cesar Mendivil, Dallas, Texas, non-resident insurance producer license refused. • William L. Moir, St. Louis, Mo., insurance producer license issued under probationary terms including an $825 payment for renewals and late fees and a $200 forfeiture. • Edward L. Moskop, Littleton, Colo., insurance producer license revoked. • Germaine M. Pang, Lexington, Ky., insurance producer license revoked. • Hugh D. Ritchey, Harrison, Tenn., nonresident insurance producer license refused. • Tommy O. Roberts II, Sallisaw, Okla., insurance producer license revoked. • Steve Rogers, Wheeling, Ill., forfeiture of $1,500 for failing to report an administrative action in another jurisdiction. • Philip A. Schmidt, Shelbina, Mo., insurance producer license refused. • Deana A. Stewart, Lebanon, Mo., insurance producer license revoked. • Harry Taylay, Independence, Mo., insurance producer license revoked until service of Complaint in Case No. 11-2294 or a future complaint may be obtained. • Ray L. Vincent, Joplin, Mo., bail bond agent license refused. • Financial Services Moskop & Associates, Belleville, Ill., business entity producer license revoked. • Sequoyah County Abstract and Title, Sallisaw, Okla., business entity producer license revoked.

• Federated Mutual Insurance Co., Owatonna, Minn., stipulation of settlement filed and voluntary forfeiture of $30,000. • National General Assurance Co., Winston-Salem, N.C., stipulation of settlement filed and voluntary forfeiture of $2,000. • National General Insurance Co., Winston-Salem, N.C., stipulation of settlement filed and voluntary forfeiture of $5,000. • New South Insurance Co., Winston-Salem, N.C., stipulation of settlement filed. • Old Republic National Title Insurance Co., Minneapolis, Minn., stipulation of settlement filed and voluntary forfeiture of $74,000.

Company changes • Accountants Risk Purchasing Group, Peoria Heights, Ill., effective Feb. 16, 2012, was registered as a risk purchasing group. • AGA Service Co., Richmond, Va., effective Jan. 13, 2012, changed its name from World Access Corp. • Alliance of Nonprofits, Studio City, Calif., effective Feb. 14, 2012, was registered as a purchasing group. • American Contractors Indemnity Co., Los Angeles, Calif., effective Dec. 31, 2011, Pioneer General Insurance Co. merged with and into the aforementioned company. • Athene Annuity & Life Assurance Co., Greensville, S.C., effective Feb. 1, 2012, changed its name from Liberty Insurance Co. and redomesticated to Delaware. • Autoxcel Corp., Wilmington, N.C., effective Jan. 1, 2012, was registered as a motor vehicle extended service contract provider. • Barton Mutual Insurance Co., Liberal, Mo., effective Jan. 1, 2012, Gateway Mutual Insurance Co. and Cape Mutual Insurance Co. merged with and into the aforementioned company. • Big “I” Risk Purchasing Group, Alexandria, Va., effective Feb. 3, 2012, was registered as a purchasing group. continued on page 43

may-june 2012

missouriagent

41


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regulatoryactions • Boeuf & Berger Mutual Insurance Co., New Haven, Mo., effective Feb. 28, 2012, deleted extended Missouri mutual other authority. • CMFG Life Insurance Co., Madison, Wis., effective Jan. 31, 2012, changed its name from CUNA Mutual Insurance Co. • Choice Administrators Insurance Services, Orange, Calif., effective Feb. 5, 2012, was admitted as a third party administrator. • CNL/Insurance America, Macon, Ga., effective Jan. 8, 2012, redomesticated to Minnesota. • Design Professionals Risk Control Group, Exton, Pa., effective Jan. 27, 2012, withdrew as a purchasing group. • EBS-RMSCO, Liverpool, N.Y., effective Jan. 5, 2012, was admitted as a third party administrator. • Fair American Insurance and Reinsurance Co., New York, N.Y., effective Jan. 15, 2012, changed its name from Putnam Reinsurance Co. in the state of domicile. • General Star Indemnity Co., Stamford, Conn., effective Dec. 31, 2011, General Indemnity Insurance Co. merged with and into the aforementioned company. • Global Travel and Hospitality Network, Stevens Point, Wis., effective Jan. 4, 2012, was registered as a purchasing group. • Greenwich Insurance Co., Stamford, Conn., effective Jan. 20, 2012, added accident and health authority. • Harp, Mahwah, N.J., effective Jan. 24, 2012, was registered as a purchasing group. • Heritage Union Life Insurance Co., Richmond, Va., effective Jan. 22, 2012, redomesticated to Minnesota. • Lexington Insurance Co., Boston, Maine, effective Jan. 1, 2012, Chartis Select Insurance Company merged with and into the aforementioned company. • Lone Star TPA, Tyler, Texas, effective Jan. 5, 2012, was admitted as a third party administrator. • Management Research Service, Brookfield, Wis., effective Jan. 5, 2012, was admitted as a third party administrator. • MESA Underwriters Specialty Insurance Co., Branchville, N.J., effective Jan. 1, 2012, changed its name from Montpelier U.S. Insurance Co. and redomesticated to New Jersey. • Midwest Holding, Lincoln, Neb., effective Jan. 5, 2012, was admitted as a third party administrator.

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• Missouri Automobile Dealers Associations Third Party Administrator, Jefferson City, Mo., effective Feb. 1, 2012, was admitted as a third party administrator. • NAHGA, Bridgton, Maine, effective Jan. 5, 2012, was admitted as a third party administrator. • National Union Fire Insurance Company of Pittsburg, effective Jan. 1, 2012, Landmark Insurance Co. merged with and into the aforementioned company. • ProAssurance Casualty Co., Okemos, Mich., effective Dec. 13, 2011, ProAssurance Company of Wisconsin merged with and into the aforementioned company. • Professional Data Management Again, New York, N.Y., effective Jan. 5, 2012, was admitted as a third party administrator. • Safety National Casualty Corp., St. Louis, Mo., effective Feb. 28, 2012, Form A, proposed acquisition of control of Safety National Casualty Corp., ordered. • The Shuey Agency, Staunton, Va., effective Jan. 26, 2012, was admitted as a third party administrator. • Simplifi Health Benefit Management, effective Jan. 5, 2012, was admitted as a third party administrator. • Sirius America Insurance Co., effective Jan. 5, 2012, changed its name from White Mountains Reinsurance Company of America. • State National Insurance Co., Fort worth, Texas, effective Feb. 17, 2012, added fidelity and surety authority. • Starr Protection Solutions, New York, N.Y., effective Jan. 11, 2012, registered as a product service provider. • Synergy Insurance Co., Charlotte, N.C., effective Feb. 3, 2012, was admitted with accident and health authority. • Universal Casualty Co., Elk Grove Village, Ill., effective Jan. 13, 2012, withdrew its certificate of authority. • Worldwide Insurance Services, Radnora, Pa., effective Jan. 18, 2012, converted from a corporation to an LLC. • XL Insurance Company of New York, Stamford, Conn., effective Jan. 12, 2012, was admitted with property, liability, fidelity and surety, accident and health, and miscellaneous authorities. • Zenith American Solutions, Tampa, Fla., effective Feb. 28, 2012, changed its name from Zenith Administrators.

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agencynews Agent joins BPJ board Justin French, a commercial lines producer for Barker-Phillips-Jackson, Springfield, was elected to the company’s board of directors. French has been with the agency since 2005. He earned his bachelor’s degree from Drury University.

Members recognized by Company Partners Four MAIA member agencies have been awarded Electric Insurance Co.’s new Blue Chip Partner designation. The designation is for exceptional agencies whose business success is predicated by a customer-focused approach and superior business practices. The new Blue Chip agencies are: Charles L. Crane Agency Co., St. Louis; The Daniel and Henry Co., St. Louis; Insurance Source, St. Louis; and Seibert Insurance Agency, Fenton. Three other member agencies were named to Grinnell Mutual’s President’s Club for 2012. Agencies and farm mutuals in the club have

achieved outstanding production and profitability over five years. The President’s Club agencies are: Dysart Insurance Agency, Marshall; Emmendorfer Insurance Agency, Perryville; and NaughtNaught Insurance Agency, Jefferson City.

Springfield agent makes 40 Under 40 Nick Burlison, a commercial lines agent with PJC Insurance, Springfield, was named to the 2012 class of “40 Under 40” by the Springfield Business Journal. Honorees were chosen by an independent panel of judges. A ceremony will be held May 17 in Springfield to celebrate the 2012 class and to raise money for the Ozarks Food Harvest.

Gammill joins HR association board Randall Gammill, Connell Insurance, Branson, was named to the position of 2012 legislative director for the Missouri State Council of Society for Human Resources Management. In this position, he works with state and federal elected officials and regulators to advocate on behalf of human resources professionals and employers.

“insurance from people who know mining” We Offer Workers’ Compensation and Liability Coverages For: Silver & Coal mines: c Copper, surface and underground truckmen c coal (workers’ Comp only)

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For more information, contact Bryant Brown, V.P. Marketing • 1.800.448.5621, x 249. 3490 Independence Drive • Birmingham, Alabama 35209 WWW.AMERICANMINING.COM 44

missouriagent

may-june 2012


At Connell, Gammill specializes in workers’ compensation, self-insurance and human resources consulting.

In memoriam Mr. Bobby Joe Holland, Caruthersville, passed away Wednesday, Feb. 22, 2012, at his home at the age of 62. A lifelong resident of the Bootheel area, Holland owned and operated Bob Holland Insurance and Real Estate in Caruthersville. He was active with MAIA, participating in a variety of association events and helping with the technology panels at recent Small Agency Conferences. In addition to his work with the association, Holland was a member of the local Rotary Club and sat on the board of directors of Focus Bank. He is survived by two sons, Adam and Clay, and their families. Bro. David Powell, Hornersville, passed away Sunday, Dec. 18, 2011, at NEA Baptist Hospital in Jonesboro, Ark., at the age of 67. Powell was a Baptist minister and owner of Powell Insurance Agency in Hornersville. He was a member of the Hornersville Baptist Church, Hornersville Masonic Lodge 215 AF&AM and Hornersville Chapter 523 Order of the Eastern Star. Powell is survived by his wife, Sabrina; two sons, Tyler and David; and their families.

New faces, new places Bryan Cossiboom was named group benefits consultant with Connell Insurance, Hollister. Deborah Coulter was named agency manger of Great American Insurance Services, Springfield.

New members Addison Insurance Services, Cliff Addison, Bethany Anselm Insurance Solutions, Richard Anselm, Columbia ATRA Insurance Agency, Allan Fowler, Sedalia Cannon Insurance Agency, Brittnee Byerley, Mountain Grove Crown Insurance Agency, Ronald Taylor, Florissant Inman Insurance, Keith Inman, Salem Osborn and Associates, John Osborn, Springfield Senior Health Solutions, Thomas Paull, St. Charles Smith Insurance and Financial Services, Julie Hobart, Neosho Smith McGehee, William Rowe III, St. Louis Statewide Insurance Group, Mickey Perkins, Willow Springs Stroad Insurance Agency, Dwight Stroad, Eldon Sumner Insurance Services, Keith Sumner, Sedalia

Established 1887 Automated Property Insurance Solutions

with the personal touch

www.meramecvalley.com may-june 2012

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companypartnernews Prime names new president

CFM recognized by Grinnell

Fowler named EVP of Cameron

Fireman’s Fund passes $1M in donations

Mark Fisher has been promoted to president and general counsel of Prime Insurance Co.’s parent company. Fisher is a 15-year veteran of Prime. He is also a licensed attorney in California, Utah and Washington, D.C.

Brad Fowler

Brad Fowler, CPCU, ARe, AIC, has been appointed executive vice president of the Cameron Insurance Cos. board of directors. Fowler has been a member of the executive management team since 2010, when he was named senior vice president. He began his career with Cameron in 1985 as an adjuster.

United Fire Group announces new leadership

Michael W. Phillips has been appointed to the board of directors for United Fire Group. Phillips is the founder and president of Investors’ Actuarial Services, a consulting firm that provides actuarial services to institutional investors. Ed Sullivan has been named the new vice president of the company. Sullivan has over 25 years of experience in the industry. He has been with United Fire Group since February of this year.

The Hartford named top ethical company

The Hartford has been recognized by The Ethisphere as one of the “2012 World’s Most Ethical Companies.” This award reflects The Hartford’s commitment to ethical practices, environmental stewardship and community involvement. This is The Hartford’s fifth consecutive year to receive the award.

CFM Insurance, Concordia, is one of 15 farm mutuals named to Grinnell Mutual’s President’s Club for 2012. Agencies and farm mutuals in the club have achieved outstanding production and profitability over a five-year period.

Fireman’s Fund passed the $1 million mark in grants awarded to community fire departments March 20, 2012, when it made its 66th grant to a Missouri department. The St. Louis Fire Department was selected for the grant, which will fund state-of-the art EZ Scape Integrated Self Rescue Belts, which allow firefighters to safely exit upper floors of a building through a window if they become trapped by the fire.

Walli recognized as influential St. Louisan

Steve Walli, president and CEO of United Healthcare was named one of the “Most Influential St. Louisans” by the St. Louis Business Journal. Walli chairs the Metro St. Louis Board of the American Heart Association and sits on the board of the National Multiple Sclerosis Society, Gateway Area Chapter.

New associate members

Assurance America Insurance Co., Robert Ogden, Peculiar, Mo. Assurant Health, Joe Brining, Tulsa, Okla. CSM Construction, Mike Sellenschuetter, St. Charles, Mo. TOPA Insurance Group, Bryan Parks, Lincoln, Neb.

Classifieds SW MO agency seeking experienced licensed Commercial Lines Marketing person. Salary based on experience and qualifications. Good benefits including Group Health, Life, Dental, 401K with employer percentage, and Cafeteria Plan. Blind ad. See below to reply. When responding to blind confidential ads, reply to: Classifieds P.O. Box 1785, Jefferson City, MO 65102-1785 or ahoffman@moagent.org. Reference the ad to which you are replying.

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The basic classified ad contains a maximum of 35 words (including head). Cost: $26.00 for up to 35 words. Blind ads: $40.00 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 or ahoffman@moagent.org. Ads will be invoiced. Deadline for classified ads: first of month preceding publication.

may-june 2012


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PROGRAM 2012 ARTNERS 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

EMC Insurance Co. Accident Fund and United Heartland Cameron Insurance Cos. Columbia Insurance Group ACUITY Anthem Workers’ Compensation America First Insurance Co.

Safeco Insurance West Bend Mutual Insurance Co. Travelers United Fire Group Anthem Blue Cross and Blue Shield BankDirect Capital Finance The Hartford

SILVER

Electric Insurance SECURA Insurance Selective Insurance Co. of America

Foremost Insurance Continental Western Group CNA

BRONZE

Illinois Casualty Co. AAA Missouri Imperial PFS CFM Insurance State Auto Grinnell Mutual Reinsurance Co. Bituminous Insurance Cos. Valley Insurance Agency Alliance LLC QBE M J Kelly Co. TAS Insurance Group JM Wilson Philadelphia Insurance cos. Gateway Underwriters Agency Prime Insurance Co. Cornerstone National Insurance Co. Westrope SAMBA Safety

United Healthcare Auto-Owners Insurance Patriot National Insurance Group Commercial Insurance Underwriters American Mining Insurance Co. BMI Cos. Aetna Capital Premium Financing Amerisure Insurance Co. FCCI Fireman’s Fund Missouri One Call System Med James EMPLOYERS The Cincinnati Insurance Co. Gumtree Wholesale Insurance Brokers Midwestern Insurance Alliance

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

Missouri Agent May-June 2012  

Missouri Agent is a bimonthly magazine published by the Missouri Association of Insurance Agents. Its target audience is the independent ins...