Vol. 21 No. 6
treat yourself to all of the products and services MAIA brings you
: us d c o l f s an a i ec uct ices p s od rv pr se
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missouriagent Volume 21, No. 6
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: firstname.lastname@example.org Internet: www.missouriagent.org Publisher Editor Advertising Manager
Larry Case Amy J. Hoffman, AIP Amy J. Hoffman, AIP
Officers of the MAIA
President Doug Clift, CIC, St. Louis President-Elect Brian Harrison, CIC, Columbia Vice President Louis Landwehr, CIC, CRM, Jeff City Sec’y-Treasurer Randy Baker, Kennett IIABA National Director Mitchell C. Mills, CWCC, Clinton PIA National Director Richard Minor, CIC, Hannibal Past President Byron Robison, Springfield
Board of Directors
Region 1 Ricky Baker, CIC, Chillicothe Region 2 Darren Smiley, Mexico Region 3 Chris Rupp, LUTCF, CIC, Liberty Region 4 Shane Davolt, Liberty Region 5 Lee Wilbers Jr., LUTCF, CLU, CFP, Jefferson City Region 6 Jim Baxendale, CPCU, St. Louis Region 7 Jeff Mentel, J.D., St. Louis Region 8 Jane Dobrinic, CIC, CPCU, St. Louis Region 9 Randy Smart, Marionville Region 10 Tom Montileone, CIC, CISR, AIS, Springfield Region 11 Steve Rackley, CIC, CISR, Gainesville Region 12 Mark Gibbins, Portageville At-Large #1 Wil Turner, CIC, Belton At-Large #2 Vickie Winkler, CISR, CIC, Ste. Genevieve At-Large #3 John Patterson, Chesterfield Co. Rep. Ben Finan, Maryland Heights Co. Rep Jim Lay, CIC, CPCU, Springfield
Staff of the MAIA
Executive Vice President Larry Case Vice President of Operations Sheryl Van Leer Vice President of Marketing Lindsay Griffin, 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 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.
Special Focus: Products and Services
5 Tips for a Successful Agency 24 Products and Services 26 Big “I” Markets 27 Strategize, Evaluate, Contemplate Don’t Take Your Telephone for Granted MAIA staff profile: Monica Mize CISR Program Expands to 9 Choices MAIA Committees MAIA Staff Microinsurance Makes Big Social Impact
7 21 22 23 29 33 38
Departments From the President 5 The Legal Side 9 Technicalities 10 From the DIFP 13 Technology 15 News & Know-How 19
Errors & Omissions 34 Regulatory Actions 43 Agency News 45 Company Partner News 46 Classifieds 46
Advertisers ACUITY 8 AmTrust North America 16 BC&M 20 Swiss Re 32 Burns & Wilcox 4 Couri Insurance Associates 14 EMC Insurance Companies 47 FCCI Insurance Group 37 Gateway Underwriters Agency 36 IPMG 31
JM Wilson 12 MAIA Partners 48 MEM Insurance 2 Missouri Rural Services 40 M.J. Kelly 38 Ringwalt & Liesche 10 SECURA 42 Surplus Lines Association of Mo. 45 The Hartford 18 West Bend 6
POSTMASTER: Send address changes to Missouri Agent, P.O. Box 1785, Jefferson City, MO 651021785.
Vol. 21 No. 6
On the Cover: Tis the season to partake of all that MAIA offers its members — during the holidays and all year long. Story on page 26.
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 email@example.com.
Address & Other Changes
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© 2012 Missouri Association of Insurance Agents
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fromthepresident What I didn’t know I didn’t know After a long, hot summer of record temperatures in Missouri, we can finally get outside and enjoy the cooler weather. I love fall; it’s always a season of change: changes in the weather, changes in the wardrobe (just ask my wife), changes in family routines as kids head back to school — which means that it’s also a time for learning new things. I’ve had a lot of changes recently and also realize I’ve become a learner. From my first national IIABA meeting, I’ve learned what I didn’t know I didn’t know. (Follow that?) I’d like to share my education with you. I’ve put some of MAIA’s best practices into place, and perhaps you will too when I share a little of what I’ve learned: How MAIA can help your agency be even more successful. My first IIABA board meeting, which I attended with Larry Case and Mitchell Mills, was an eye-opening experience and something I wish all independent agents could experience firsthand. The IIABA is a very large and powerful organization with more than 22,000 members nationwide, but it is experiencing the same problems many other national associations have: loss of membership and, more importantly, the challenge to stay relevant. As I sat in a planning session with other state presidents, we learned that IIABA currently has 52 different “businesses” or programs. As we went around the table, we were hard pressed as a group to even name five of the 52! We asked each other how all of these programs can be relevant to our membership and whether they really create value. Easy questions to ask, but hard to answer since two-thirds of IIABA’s budget comes from revenue generated by members’ services and products. My education continued as I brought these thoughts to MAIA’s board meeting in September. As I was explaining my observations from the national meeting, I got a very good question from Wil Turner, who is our At-Large 1 representative: How many of our own members
in Missouri know the programs and services that MAIA provides, let alone the 52 national programs? I thought I understood our programs and services pretty well but decided to dig a little deeper and was surprised with what I didn’t know. MAIA member services and products can easily be reviewed on our website. Some are national programs offered by IIABA. In order to better understand the features and benefits of these programs to our membership, I “interviewed” Larry Case. I was very surprised by some of the things I learned. Below are some highlights of the programs administered and run on the state level, which are relevant and bring value to our membership in Missouri.
E&O insurance One of the biggest programs we run is the sale of agent errors and omissions coverage with Utica Mutual and Westport. Of course, there are many competing programs, but I learned that both of these programs were designed by agents for agents. Did you know that Larry and our staff meet with both companies every year? They review their forms and make recommendations on improving coverage to better protect our membership. For those who have their E&O with other carriers, can you truly feel comfortable you have the best coverage for the best price? I certainly feel better knowing MAIA is staying on top of this very important coverage for our agency. If you haven’t gotten a quote from MAIA recently, I strongly suggest you give them a try.
Agents umbrella coverage Another program, which I knew MAIA offered but I had never taken advantage of, is the agents umbrella program offered through Penn National and Swiss Re. This is another program designed by agents for agents. I found out that the Penn National umbrella provides excess coverage over your E&O policy and as continued on page 41
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SI, ionals at N s s fe o r p an ance The insur division, c y lt ia c e p r d’s s West Ben program fo e c n a r u s e right in e have th W . create the s e s s e d busin to protect e c specialize n ie r e p e and ex , from knowledg usinesses b f o s d in many k childcare to s A C M lons to Y n and beauty sa preventio s s lo r u o nd ning centers. A ts at desig r e p x e e r a laims claim reps handling c d n a s m gra sses. safety pro lty busine ia c e p s r fo
NSI sionals at s fe o r p e th ur So talk to an help yo c e w w o th s. to find ou customer
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myturn Strategize, Evaluate, Contemplate The arrival of the 2012 college football season marked the beginning of a major transition for the University of Missouri Tigers as they began play in the prestigious Southeastern Conference. While numerous factors impacted the decision to make the move, in the end, it brought an opportunity to be a part of what is widely recognized as the best athletic conference in the country. As Mizzou is making its move, MAIA is also making ours. In conjunction with MU’s transition, MAIA continues its Trusted Choice advertising campaign with Mizzou Sports Properties, expanding a partnership we began in 2006. You will now hear both in-game and post-game ads, as well as the featured “Trusted Choice of the Game,” a play chosen by Mike Kelly and presented in the post-game football and basketball shows. We also have added brand exposure with a Trusted Choice banner, which will periodically appear on the Mizzou athletics website. Not to be outdone by MU’s effort to be the best, your MAIA board of directors is focused on ensuring that this association is functioning as one of the best in the nation. The strategic planning session held earlier this year has led to some out-of-the-box thinking and energized your leadership and staff to focus on our vision for the future. Their goal is to provide exceptional value to members and make sure we are well positioned in an ever-evolving insurance marketplace. At the September board meeting, each member of the board received a copy of the book Race for Relevance, written by association guru Harrison Coerver. Board members will be considering the concepts and ideas presented in this book and how they might intertwine Coerver’s visions with priorities and goals they have for MAIA over the next few years. We often speak about insurance not being a commodity. It is peace of mind and a promise to provide assistance and service in the event of specific events and to minimize the impact of unfortunate circumstances by rebuilding or replacing property or defending policyholders against potentially disastrous litigation. Association membership is much the same. While
we do have some tangible benefits we can offer, the real benefits of membership are the intangibles. In every survey, members identify networking opportunities, service, information, advocacy and legislative representation as some of the top reasons you feel membership is important to your business. In other words, you recognize and value the importance of the intangible benefits we provide and expect us to be relevant in representing your interests, whether it is with industry partners or in political or regulatory arenas. Thus, it is appropriate that we periodically perform a Self Examination and Critique of our priorities and processes. We must make sure we are on top of our game and are Seeing Evolutionary Changes so that we can keep you informed about what pitfalls may lay ahead. And we must make sure that we are considering appropriate Strategies, Efficiencies and Collaborations in order to best serve you, our members. MAIA has always been blessed with very dedicated leaders who give selflessly of their time in order to help perpetuate the independent agency system and ensure that we have the ability to deliver the services you expect from us. This example of their forward thinking should assure you that you will be able to depend on us in the future. In the end, our goal and our pledge to you is that we will continue to Skillfully Evaluate Challenges you face and provide you with real value for your membership with benefits, such as these:
executive vice president, MAIA
• Structured Educational Curriculum; • Sensible Expert Consultation; • Stimulating and Enlightened Communications; and • Sensational Events and Conferences. Of course, we will expect you to do your part and participate and take advantage of what we provide for you. SEC you soon. Go Mizzou!
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thelegalside More perspectives on producer duties In my last article, I discussed potential issues contingent commissions or in other ways had with a producer’s duty to an insurance carrier. failed to carry out an expected duty with reaThere are also issues evolving regarding the sonable care, skill and diligence. duties a producer owes in the relationship with As to whether a producer has breached a policyholders, especially in situations where the duty of loyalty to a customer, the Court afproducer acts as a broker for the policyholder. firmed several prior court decisions stating that Earlier this year, the Missouri Supreme Court the scope of a producer’s agency is to procure gave some guidance on the recognized duty the insurance requested by the insured and of producers, while leaving that a producer has no duty some questions open to deto advise insureds on their The Court’s findings terminations based on coninsurance needs or on the are all beneficial to tract or custom. availability of a particular In the case of Emerson coverage unless specifically producers because Electric Company v. Marsh agreeing to do so. the decision declines and McLennan Companies, With regard to the fact that Emerson sued, alleging Marsh Marsh & McLennan collected to expand the duties & McLennan had violated a interest on monies held in owed by producers in fiduciary duty of loyalty by trust between the time of accepting contingent comcollecting the premiums from their relationship with missions without notice to Emerson and paying the prepolicyholders. Emerson, by keeping interest miums to the insurance comearned on premiums colpany, the Court ruled that lected before payment to the insurance carrier while the Missouri statutes clearly note that a and by failing to provide Emerson with the lowproducer holds such funds in a trust and fiduciest cost coverage possible. ary capacity, nothing in the statute gives the While the court examined the difference bepolicyholder the right to monies other than the tween an agent, who represents the company, premiums agreed to in the insurance policy. and a broker, who represents the policyholder, Because the Missouri statutes impose no duty generally it held that in either situation, the with regard to interest, the Court refused to producer’s primary duty to the policyholder is impose such a duty because of the producer’s limited to procuring the insurance requested by limited role in procuring insurance. Finally, the the policyholder. Court likewise refused to expand the producer’s In either capacity, the producer has a duty to duty to include finding coverage of the lowest perform his or her duties with reasonable care, possible cost. Since the producer has no duty to skill and diligence. However, that duty does not advise insureds about what insurance they need extend to advising insureds about what insuror what insurance to buy, the Court would not ance they need or what insurance to buy, unless expand the producer’s duty to include deterthe producer specifically undertakes to do so. mining the cost of insurance to be paid by the The Supreme Court determined that Secpolicyholder. tion 375.116 of the Missouri statutes authorizes The Court’s findings are all beneficial to a broker to receive commissions and makes producers because the decision declines to no distinctions as to the type of commissions; expand the duties owed by producers in their therefore, the receipt of a contingent commisrelationship with policyholders. However, in all sion is not of itself a breach of a duty. However, its determinations, the Court holds open the the Court did not throw out the suit, saying that potential that a producer could in fact owe any the trial court could still determine whether one of the duties discussed if the producer speMarsh & McLennan had specifically undertaken cifically undertakes to accept it by contract or by additional duties of disclosure with regard to a course of conduct.
Lewis E. Melahn, J.D.
Lewis E. Melahn is a practicing attorney in Jefferson City. He provides free legal consultation to MAIA members on a limited basis. He served as the director for the Missouri Department of Insurance from 1989-1993. You can contact Lew Melahn at 573-636-5057.
continued on page 12
technicalities Pitfalls of personal insurance Before I go into some of the pitfalls of personal insurance, I thought it best to discuss the fact that personal insurance should not be treated as a commodity. The definition of commodities from InvestorGuide.com is, “goods that are supplied to the market without differentiation based on brand, source or other factors.” As independent agents, this is our sales tool. We can sell differentiation. We have the prod-
Jane Dobrinic Charles L. Crane Agency Co. MAIA Technical Committee
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ucts to offer our clients and a variety of companies, each of which may have a different underwriting appetite and pricing structure. We also have additional options, which may not be available from the direct market or 1-800 channels. We do not want to sell on price, as we all know the old saying, “Win on price, lose on price.” We want to offer our clients a product that is not just a commodity but something designed specifically for them. Our goal is to offer our clients a program with features and benefits designed for their specific needs. The information gathering process is the most critical part of designing this program. During this process, keep in mind the pitfalls that lurk around all the corners. Pitfalls are gaps in coverage. Some of these gaps can be closed; others cannot. We just need to be sure that our client understands the issues involved with the ones that cannot be closed. It is a good idea to work with a coverage checklist to help determine the needs of a client. While there are more than I can cover in this article, I will review some gaps, which I think are important and are frequently encountered.
• Always name both spouses on all policies. Spouses who aren’t named on the policy may lose coverage during a separation or divorce. Coverage can cease when one spouse moves out of the household. Read your policy. • In a divorce situation, don’t remove either spouse or any vehicle without the permission of both in writing. Don’t reduce coverage without permission of both insureds in writing. • Domestic partners: Name partners as named insureds. Being added as a driver doesn’t add any coverage. Both signatures should be required. • Be sure all liability limits are the same.
• Children who move out of the household with a vehicle owned and insured by their parents do not have proper coverage. They will lose coverage for driving or being hurt in nonowned vehicles under their parents’ policy. In the event of an accident with an uninsured or
underinsured driver, there would be no coverage for this family member if he or she does not have his or her own auto policy. Moving out of the household negates some of the extensions of coverage under the auto policy. Solution: Transfer the title to the family member and write a policy in the new owner’s own name. Many personal auto policies are introducing step-down coverage or drop-down provisions, which limit coverage for some drivers to state minimums ($25,000/$50,000/$10,000 in Missouri). Other policies will reduce coverage for anyone in the household who is not rated on the policy. Solution: Read your policy carefully. College students who have roommates have an additional exposure. Often, car keys are thrown on the counter and the students will frequently use someone else’s car in the household. There is a liability exclusion in the personal auto policy for an auto that is furnished or available for an insured’s regular use. If a student borrows a car in this scenario and is involved in an accident with a car that has no insurance or insufficient limits, the policy will not respond. This same situation applies when there is a company car in the household. Cars owned by other members of the household, such as roommates or domestic partners, may also be excluded. Solution: Add the Extended Non Owned Endorsement, naming the individual for whom coverage is provided. This is PP 03 06. Solution: Get college students and adult children their own policy as soon as is practical. Only vehicles acquired by the policyholder are automatically covered when you purchase them. Cars purchased by a family member may not automatically be covered. Solution: Make arrangements ahead of time with your agent. Once you purchase a new vehicle, it immediately begins depreciating in value. That rate of depreciation may be faster than you are paying off the loan. In the event of a total loss, the settlement may be less than what is
owed on the vehicle. This situation can occur whether you buy the car or lease it. Solution: Anytime a client buys or leases a new car, offer auto loan lease coverage. This coverage prevents you from having to pay this difference out of pocket.
• College students may lose coverage under their parents’ homeowners policy if they turn 24 or become part-time students. Review your coverage. Their college may not be an insured location. Solution: Write a renter’s policy for the student. • The 2011 revision of the ISO Homeowners Policy has broadened coverage for kids’ battery powered toy cars, provided they are designed for kids under the age of seven and can’t exceed 5 mph. (This was excluded in the prior edition of the policy). • The Incidental Low Power Recreational Motor Vehicle (HO 24 13) can be used to add liability coverage for owned off-road recreational motor vehicles, but the top speed must be 15 mph or less. • Motor vehicle exclusions in the 2011 revision of the ISO Homeowners Policy exclude coverage for motor vehicles unless they are used “solely to service a residence.” This broadens coverage, as the prior version read, “used solely to service the insured’s residence.” The 2011 version allows servicing of other residences but not any commercial property, such as helping your local church. Solution: Be sure to read your policy, as we see significant variations on this exclusion in other policy forms, and advise your client accordingly in writing. • Property in storage is now covered for 10 percent of the personal property coverage as opposed to the full personal property limit in prior versions of the ISO HO policy. Solution: This may be increased by adding HO 06-14, Increased Amount of Insurance for continued on page 12
continued from page 11
Personal Property Located in a Self-Storage Facility. However, this endorsement may not be available with all companies. • Be aware of the exclusion for theft, which reads, “The peril of theft does not include loss caused by theft for property while at any other residence owned by, rented to, or occupied by an ‘insured,’ except while an ‘insured’ is temporarily living there.” Solution: Write an HO5 policy on the primary or a tenant homeowners policy on the temporary location
Excess liability Always offer excess liability coverage. Determining the amount of coverage to purchase should be left up to the insureds. Suggest that they buy as much as they can afford.
Flood insurance Always offer flood insurance. You don’t have to be in a special flood hazard area to need this coverage. The homeowners policy does not cover surface water. Jane Dobrinic, CPCU, CIC, is a manager at Charles L. Crane Agency Co., St. Louis. She is in her third year as a member of the MAIA Technical Committee.
KNOWLEDGE COMES FROM EXPERIENCE
legalside continued from page 9 “I go the distance on my bike—just like my 30-year journey with J.M. Wilson. I lead a great team of managers and underwriters that work hard to help our agents be successful.”
Sandi Fritz, CIC Vice President, Underwriting and Branches—and fixture on the bike trail Connect with Sandi on LinkedIn!
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What course of conduct might indicate a producer has accepted such a duty remains subject to speculation; however, the Court did reference a prior court decision in Zeff Distributing Company v. Aetna, where the court found the relationship between the producer and policyholder was such that when the policyholder’s coverage was cancelled, the policyholder could reasonably expect that the producer was going to replace such coverage or advise the policyholder such coverage could not be obtained. By failing to do so, the producer had breached a duty upon which the policyholder had relied, based upon a prior course of conduct. This case serves as a reminder that producers should not create expectancies by their policyholders for anything other than the exercise of reasonable diligence to procure the insurance the policyholder desires. Indicating that a producer can do anything more than that for a policyholder may raise an expectancy and create a duty for the producer that otherwise would not exist.
fromtheDIFP Ramifications of Senate Bill 749 We have a new health insurance law in Missouri, as of the recent veto session of the Missouri General Assembly. Senate Bill 749 is now law. It lays out several new requirements for all providers of health insurance coverage, covering contraception, elective abortion and sterilization. The bill was vetoed by Gov. Jay Nixon in July on the grounds that it was unnecessary and duplicative of the existing contraception statute. The old law, on the books since 2001, gave employers the right to refuse contraceptive coverage for their group health plans, in effect opting out of providing contraception coverage for employees. In such situations, the law also gave employees the right to opt back in to that coverage. In his veto message, the governor said nothing in S.B. 749 “would enhance these substantive religious protections that have been in place and afforded to employees and employers and will remain part of Missouri law after my veto today.” Nevertheless, the legislature overturned the governor’s veto, and S.B. 749 is now law. For the department, that means our legal obligation is strong enforcement of all provisions of the law for which we have authority, namely the new provisions in Chapter 376 RSMo. That chapter applies to insurance companies and fully insured health plans. And we are committed to that. But I want to bring to your attention several provisions that fall outside the insurance chapters. For the first time, there are now requirements related to coverage of contraception, abortion and sterilization in Chapter 191, the general public health statutes. These requirements, according to the new law, now apply to “health plan providers” and “health plan sponsors.” Since these are undefined terms, there is a question about whether they extend to all health plans, including self-insured plans. Also in Chapter 191, sterilization is mentioned. This is a subject that does not appear in Chapter 376. You are aware that our department has no jurisdiction over self-insured health plans or to enforce Chapter 191. So we cannot provide guidance to these plans regarding the new re-
quirements. But I encourage you to consider the ramifications of this new language for all your clients with group health plans. Those clients who have purchased fully insured group plans will certainly need to comply with the new law. But those who are self-insured may be affected as well. They may need to consult with their legal counsel on whether the new state requirements apply to their health benefit offerings.
Join us for the Director’s Regulatory Summit I want to invite you to a first of its kind conference our department is hosting in December. The Director’s Regulatory Summit will be a oneday event in Columbia, December 6. It will be an opportunity to learn more about department operations, including licensing and our handling of agent investigations and market conduct reviews. Please spread the word to agents and carrier representatives alike. There will be valuable content for all involved in our industry, and we will offer continuing education credit. Visit insurance.mo.gov/summit for more details.
John M. Huff
director, Mo. DIFP
This article expresses the official views and opinion of the Missouri 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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technology Agency strategies to send and receive personal data securely Due to growing use of the Internet and mobile technologies in business, errors and omissions underwriters are increasingly asking their applicants whether they encrypt or use other protective measures to safeguard client personal data when it is being transmitted. Below are several approaches agencies can take to protect personal data in transit.
Encryption When you think of encryption, consider those codes the military employs to keep conversations unintelligible to the enemy. You can find many definitions of encryption on the Internet, but I like this simple one from Microsoft: Encryption is a way to enhance the security of a message or file by scrambling the contents so that it can be read only by someone who has the right encryption key to unscramble it. For example, if you purchase something from a website, the information for the transaction (such as your address, phone number, and credit card number) is usually encrypted to help keep it safe. Use encryption when you want a strong level of protection for your information.
incumbent upon the agency to be familiar with not only the specific laws but also the coverage definitions that apply to the agency. Note also that the applicable state law is based upon the residency of the individual whose personal data is being protected, not the location of the agency. This is an important consideration for agencies writing business in multiple states and agencies writing policies that cover individuals who reside in multiple states. With all of the above caveats, the most commonly mentioned types of non-public, individually identifiable personal data covered in the laws are those such as social security numbers, driverâ€™s license numbers and other government issued IDs, debit and credit card numbers and PINs, bank and financial account numbers, and protected health information. While often not mentioned in state laws, other particularly sensitive personal data, which should be protected, includes information commonly used for security verification (motherâ€™s
executive director, ACT
continued on page 17
Requiring a strong password to gain access to your system is an important security procedure, but it is not the same as encrypting the data within the system.
Personal data Which types of personal data are the most sensitive and need to be encrypted when transmitted? The definition of personal data can vary by state and is contained in the state data breach notification and privacy laws (www.ncsl.org/ issues-research/telecom/security-breach-notification-laws.aspx), as well as in various federal laws, such as the Health Insurance Portability and Accountability Act of 1996 (www.hhs.gov/ ocr/privacy/hipaa/understanding/summary/privacysummary.pdf). Insurers, too, might employ various definitions of personal data in their policies, so it is
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maiden name, date and place of birth, etc.) or sensitive insurance information (such as jewelry schedules). It is important for agencies to know what types of personal information they collect, where it is retained and who has access to it. They then need to decide whether they really need to keep this sensitive information. For example, many agencies no longer retain copies of bank checks and are careful only to pass along credit card numbers to carriers but not to retain them so they do not become subject to the comprehensive payment card industry compliance requirements. These agencies are also extremely careful to shred this personal data as soon as it is no longer needed. Further, if the agency decides it must keep particular sensitive personal data, it should limit access to only those employees who need to see it, to the maximum extent possible. This is particularly true for protected health information. Finally, the agency should be careful to make sure that this personal data is kept off PCs, mobile devices, thumb drives and other devices where there is a significant risk of loss or theft.
PCs and mobile devices Users of PCs and mobile devices should be trained to remove any e-mails with personal data received on these devices as soon as they are read. In addition, the agency should audit to make sure any PCs and mobile devices that can access agency applications are password protected. Further, the agency should implement software that can wipe all of the data off of these devices if they are lost or stolen, restoring them to the original manufacturer’s state.
Secure e-mail E-mail is the first major area where agencies need to begin to encrypt their communications to carriers and clients when personal data is included. Some examples of e-mails likely to include personal data include insurance applications sent to carriers for a quote or to clients to complete and sign, and insurance policies sent to clients. With respect to e-mails between agencies and carriers (and general agents), ACT recommends that transport layer security be implemented wherever possible. TLS is an open
standard, which, once implemented between an agency and a carrier (both parties must have it implemented), renders all of the e-mails between the partners transparent to the end users. In other words, the agent or carrier underwriter does not have to go to a proprietary website to pick up each e-mail. TLS is a great solution for business partners with frequent e-mail communications going back and forth. Agencies can implement TLS if they have email servers or hosted solutions that offer it. We recommend that the initial TLS set up be handled by the agency’s technology person, who should also verify that it is working properly with each carrier and general agent. You will find a number of resources explaining TLS on the ACT website (www.iiaba.net/act), including a list of carriers, which have advised us that they have TLS available. Unfortunately, most agency clients will not have TLS capability. This will require the agency to implement a proprietary e-mail solution as well for these clients. When the agent sends a secure e-mail to the client using one of these proprietary solutions, the client accesses it on the e-mail vendor’s secure website. The secure e-mail tool also enables the client to send a secure e-mail back to the agent, which is helpful when the client is being asked to complete an application, for example. Fortunately, there are a number of vendors that can help agencies with both TLS hosted e-mails and proprietary e-mails. (Two examples of such vendors are AppRiver and RPost.)
Agency websites It is also critical that agencies provide secure website connections for consumers when they ask the consumer to provide personal data on the website, such as to receive a quote. The website should create a secure “https” tunnel before the consumer can fill out any form that asks for personal data, just as you would see when purchasing something or banking online. continued on page 18
continued from page 17
If the agency provides a “non-https” freeform text field, which the consumer can use to contact the agency and make requests, there is some risk the consumer will enter private, personal data. Therefore, it is a best practice to take one of the following steps with regard to this free-form text field: (1) secure it; (2) change it to specified fields, which ask only for basic contact information, such as name, phone number, e-mail and address; or (3) include a note warning that the free-form text field is not secure and should not be used to provide any private personal data.
If the agency provides clients with the capability to access their insurance information or documents online, the website should create an https connection before any information can be accessed. Once again, agents should work with their website provider to help them with the technical aspects of creating this secure website capability. Some agency E&O providers also require the agency to post a privacy statement on its website if there is an option for the consumer to submit personal data through the website. It is important that the agency customize its privacy statement to track the agency’s particular data collection, usage, sharing and protection practices with regard to data collected. Honda’s financial services website privacy statement (www.hondafinancialservices.com/help/privacypolicy) provides a good example of the types of information that are typically included in such statements.
CELEBRATING INDEPENDENTS’ DAY – EVERY DAY At The Hartford, we happily applaud the independent agents who help us achieve. We believe trust and support are the foundation to building lasting relationships – and enduring success.
ACT has developed several resources for agencies to review as they establish and implement their agency’s comprehensive information security program. All of these resources are included on the “Security and Privacy” page of the ACT website (www.iiaba.net/act) under the “Quick Links” heading. These resources include a prototype agency information security policy, which agencies can use as a template to build their own customized policy or as a checklist of security issues they should address. Jeff Yates is executive director of the Agents Council for Technology, which is part of the IIABA. He can be reached at firstname.lastname@example.org. ACT’s website is www.iiaba.net/act. This article reflects the views of the author and should not be construed as an official statement by ACT.
thehartford.com “The Hartford” is The Hartford Financial Services Group Inc. and all of its subsidiaries. © 2012 The Hartford Financial Services Group, Inc. All rights reserved.
november-december 2012 8/13/12 10:43 AM
Research provides insight into agency performance Obtain your 2012 Best Practices Study update The 2012 Best Practices Study marks the 20th edition of the annual benchmarks research for agencies. Over the past 20 years, agencies have endured both hard and soft markets and one of the worst economies since the Great Depression. The 2012 results, which are based primarily on agency data as of Dec. 31, 2011, show that the study’s participating agencies began to face the unusual combination of a hardening market and a continuing soft economy. As a result, their performance, while improving, remained somewhat suppressed. Overall, the Best Practices agencies confidently held their ground but did not make huge strides in improving agency performance, the 2012 results show. Most agencies appeared to have completed the year with resources and systems in place to move cautiously into an environment that could present new opportunities — or new challenges. The 2012 Best Practices Study provides critical performance benchmarks in six agency revenue categories ranging from less than $1.25 million to more than $25 million. Agencies can measure, evaluate and compare results for agency operations, including income and expense distribution, revenue and profitability growth, sales and service staff compensation and productivity, technology expenses, propertycasualty and life-health carrier representation, and more. In addition, the study measures results from its “Rule of 20,” a simple growth and profitability balancing equation, which determines if a firm is creating value for shareholders. Small and large firms improved their scores but fell well short of the desired score of 20: Small firms averaged 15.9, and large firms averaged just 14.9. The low but improved scores highlight the struggle of agencies to maintain their value, even as they grow their revenues.
Become a Best Practices agency Over the past 19 years, the Best Practices Study has examined top performing agencies across the country. For these agencies, inclusion provides the prestigious status of “Best Practices Agency” and opens the doors to many benefits. The next cycle begins January 2013 and is your agency’s chance to be involved.
The process at a glance:
Once every three years, the Big “I” requests agency nominations from state associations and company partners. Nominated agencies are invited to participate. If you would like to be considered for nomination, you can fill out the “Self Nomination Form” available online by clicking the “Uncover Industry Best Practices” link on the IIABA home page (www.iiaba.net). Agencies that choose to participate submit detailed financial and operational information, which is scored and ranked objectively. The top agencies in six revenue categories are included and deemed “Best Practices Agencies.” To retain this status, each agency must submit year-end results each year. There is no other commitment.
The Best Practices program is a partnership of the Big “I” and Reagan Consulting and is recognized as some of the most thoughtful, effective and valuable resources made available to the industry. You can learn more about the Best Practices resources and order online, or for questions, email email@example.com.
We’re On Target
Bohrer-Croxdale & McAdoo aims for the bull’s-eye in meeting your coverage needs. See how effective and extensive our coverage can be. Call one of our Underwriters at 800-779-2550
BC&M offers a variety of coverages including: Commercial Liability Security Guards Exterminators Pawn Shop Resorts/Campgrounds Contractors - all kinds Day Care Umbrella
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Surplus and Specialty Lines Insurance Managers Post Office Box 2760, Springfield MO 65801-2760
WWW.BC M IN S.CO M
Don’t take your
telephone granted Ask your customers to talk about a critical component — any critical component — of their commercial general liability package, and they probably won’t be able to answer you. Why is that? Isn’t the product important? Sure it is. But it’s not the most important “brand touch-point” for your agency. Ask your customers to talk about what they perceive to be a critical component of your agency, and they’ll mention your people. And if you were to probe further, they’ll probably start with your receptionist. The receptionist? You bet! This individual is on the phone all day with your customers — your very best customers as well as your not-sobest customers. Don’t take that key position, the phone warrior, for granted. In his excellent book, The 33 Ruthless Rules of Local Advertising, author Michael Corbett says, “Too many companies never put themselves in the consumer’s shoes. If they did, they wouldn’t allow their phone receptionist to make it so difficult for consumers to do business with them.” It’s about a commitment to the customer. All employees need to share that vision. Corbett discusses what must happen around your advertising for your firm to be successful. Before you cut a check to the local cable TV operator or direct-mail printer to drum up new business, Corbett offers some questions that are appropriate for agency owners to ask themselves: • Can the person answering your phone make a compelling response to the caller’s requests? • Have you told your phone receptionist, or anyone who answers your phone, that 83 percent of effective phone communications occurs in the tone of voice? • Does your receptionist answer your phone no later than the third ring? • How much training has the person answering your phone had in taking care of people who call your business? • Does your receptionist like talking to people? Is he or she smiling while talking on the phone? • Does your receptionist consider people who phone with questions or complaints a bother, an interruption or a pain?
• How is your receptionist perceived by your customers? Don’t take for granted that you already know the answer to these questions, Corbett advises. Investigate. If you find that you have people who can’t be superb on the phone, don’t let them answer it. They’re doing serious damage to your business and your brand image, and you may not even be aware of it. Harry Beckwith, author of Selling the Invisible, says, “Every employee should know that every act is a marketing act upon which your success depends. Review every step, from how your receptionists answer to the message on the bottom of your invoices, and ask what you could do differently to attract and keep customers. Make every employee a marketing person.” Maybe it’s time for your agency ownership to assess the receptionist position. This doesn’t mean buying an automated voice system. In fact, that’s often a bad move from the customer’s point of view. But it could mean raising the salary and perks of the receptionist job (How about offering the best parking spot?) so you attract high-level people. In some agencies, it might mean hiring a second receptionist. And it could mean that you stop using that position as a “safe haven” for people who can’t cut it as a customer service representative. If they don’t like to deal with the public, don’t put them at the front desk. Trusted Choice agencies know that in branding, every brand touch-point matters.
Go to www.TrustedChoice.com/agents for more branding tips.
How is recep your ti perce onist iv your ed by custo mers ?
MAIA staff profile:
Monica Mize Joined MAIA: October 2007 Title: Customer Service Representative Monica in Brief Favorites
Food: Anything I don’t have to cook Color: Blue Music: My iPod has everything from Michael Jackson to Demon Hunter to ‘80s hair bands. TV Show: Pretty Little Liars and The Big Bang Theory Movie: The Lost Boys, Silver Bullet, The Never Ending Story and Lord of the Rings
What is your educational background? Last year, I obtained my certificate in theological counseling. I’m now trying to save money to go back and finish my bachelor’s degree. Tell us about a typical work day for you. There is never a typical day in insurance. Every day is a new adventure. What do you enjoy most about your job? No day seems to ever repeat itself. I like doing different things and meeting new people. What was your first job? The summer I turned 14, I cleaned the school. It wasn’t much fun scraping gum off the chairs and tables.
Below Left: Monica’s husband Chris and sons, Logan (l) and Damian. Below Right: The MAIA insurance department
What has been your most significant accomplishment as a professional? Obtaining my insurance license. Most of you know how hard that test is! Who has had the biggest influence on your career? My family has always encouraged me, even when I was not sure I could do it. They were right there cheering me on. Tell us about your family. I have two awesome and handsome boys with my husband Chris. Damian is 18 and
a freshman in college, and Logan is 16 and a junior in high school. I look forward to having grandchildren someday. Do you have any pets? No, I have a petting zoo filled with my furry family. We have four dogs: Goliath, a Lab mix; Wicket, a pomeranian-sheltie mix; Banshee, half malamute and half husky; and Titan, half Lab and half bull mastiff. We have three cats, Angel, Murphy and Opie. We have a fish, a bird (Tweety) and a chinchilla (Fred Flinstone). All but two of our animals are rescue pets. What is a goal you’re still trying to accomplish? Finishing college is my personal goal. Whose biggest fan are you? Chris, who is an awesome husband to me and a wonderful father, and my kids. I am so proud of the men my children have become. If you were reborn as an animal, what would you want to be? A wolf. They are free, majestic creatures, loyal and protective, and they will do anything for their pack. What are some qualities you value in a person? Honesty, intelligence, kindness, God fearing, funny and loving.
CISR program expands to 9 The Certified Insurance Service Representatives Program announced the expansion of course offerings for the prestigious designation. This expansion allows participants to select from a variety of courses, based on their personal preference, to earn the CISR designation. The new options give participants the opportunity to choose five of the nine courses to specialize in a certain area or mix and match courses to diversify their learning. The new expansion includes:
Commercial lines Commercial Casualty I: commercial general liability; additional insureds Commercial Casualty II: business auto policy; workersâ€™ compensation; excess liability Insuring Commercial Property: commercial property; time element; commercial inland marine
Personal lines Insuring Personal Auto Exposures: personal automobile exposures and coverages Insuring Personal Residential Property: homeowners coverage forms and dwelling fire Personal Lines Miscellaneous: watercraft; recreational vehicles; business activities; and personal umbrella and excess
Related professional topics
MAIA CISR Schedule 2012-2013 Personal Residential Nov. 7, 2012, Springfield Nov. 14, 2012, Independence Dec. 4, 2012, Chesterfield Dec. 6, 2012, Cape Girardeau Commercial Casualty I Feb. 6, 2013, Springfield March 7, 2013, Cape Girardeau July 30, 2013, Chesterfield Commercial Casualty II Feb. 20, 2013, Blue Springs June 11, 2013, Springfield Aug. 8, 2013, Cape Girardeau Commercial Property March 5, 2013, Chesterfield June 25, 2013, Blue Springs William T. Hold Seminar April 2, 2013, Chesterfield Oct. 1, 2013, Blue Springs
Personal Residential April 23, 2013, Springfield May 9, 2013, Blue Springs May 29, 2013, Chesterfield Personal Lines Miscellaneous June 4, 2013, Jefferson City Oct. 30, 2013, Springfield Agency Operations Aug. 7, 2013, Springfield Sept. 12, 2013, Blue Springs Sept. 17, 2013, Chesterfield Sept. 19, 2013, Jefferson City Elements of Risk Management Aug. 21, 2013, Chesterfield Personal Auto Exposures Nov. 14, 2013, Blue Springs Dec. 3, 2013, Chesterfield Dec. 5, 2013, Jefferson City
MAIA CIC Schedule 2012-2013
Agency Operations: major revision 2012 Elements of Risk Management: the five steps of the risk management process Life & Health Essentials: life and health insurance concepts
Commercial Casualty Nov. 28-Dec. 1, 2012, Independence Feb. 27-March 1, 2013, Blue Springs
To earn the CISR designation, a participant will need to complete the course and pass the final exam for any five of the nine courses. Eight of the nine courses will be available during MAIAâ€™s 2013 schedule. Visit us online at www.missouriagent.org and click the master calendar link to register for any class. The new courses provide current CISRs excellent update options and are being filed for state CE credit.
Agency Management Jan. 30-Feb. 1, 2013, St. Charles Commercial Property April 17-19, 2013, St. Charles Nov. 6-8, 2013, Blue Springs
James K. Ruble Graduate Seminar May 15-16, 2013, Osage Beach Sept. 25-26, 2013, St. Charles Personal Lines June 19-21, 2013, Springfield Life & Health Aug. 14-16, 2013, Jefferson City
Register online at www.missouriagent.org. november-december 2012
Amy J. Hoffman editor, MAIA
5 tips for a productsandservices
Know your product
In this fast-paced, self-serve world, your best asset is your expertise. Clients come to you because you can translate the jargon and assess their needs. MAIA can help you back that promise with a well-rounded approach to education. Three designation programs are available for every agency employee, from the CSR to the experienced producer. The Certified Insurance Services Representative designation is aimed at CSRs and newer producers. With new classes available in 2013, the CISR program has more to offer than ever. The Certified Insurance Counselor designation is intended for more experienced producers and managers. The three-day classes in this program present in-depth analyses of advanced coverages. The CIC designation is a promise to your clients that you can handle their complex risks. Both programs offer continuing education credit with each course. Finally, the Associate in Insurance Production designation, awarded through completion of the Elite Force Sales Training School, is for producers who are relatively new to both sales and the insurance industry. This program, offered biennially at MAIA Headquarters, gives students a comprehensive overview of insurance sales. The Risk Specialist Series is a program that offers niche-based product information to help you grow your book of business and expand your expertise. Examples include “Insuring Public Entities,” “Insuring Contractors,” and our next class to be held in January 2013, “Technology Trends for Insurance Agencies.” Expert instructors lead these two-day seminars, which are usually approved for CE credit. Live classes are the heart of insurance education, but the best agencies have resources at their fingertips every day. The Big “I” Virtual Risk Consultant allows producers to explore specific coverage markets. Among the resources it offers are checklists, marketing tools and minimum recommended coverages for more than 650 different industries. The Virtual University is another Big “I” tool. On it, you’ll find articles authored by industry experts, addressing everything from
coverage gaps to sales management. The “Ask an Expert” feature allows you to submit a specific question to the experts on the VU faculty.
Be active in the industry
You can operate a mom-and-pop on Main Street, but your business will suffer if you don’t have a foot in the broader industry. MAIA’s annual conferences combine networking opportunities with education and other benefits. The Small Agency Conference, held each March in Columbia, is a gathering of agency personnel from small to mid-sized Missouri agencies where all employees are welcome. A huge trade show is one of the highlights of this conference, and the Idea Lab is a popular arena to exchange thoughts on agency automation and technology topics. The Young Agents Conference is a favorite way for young and new producers to kick off the summer enjoying fellowship and education in a relaxed, family friendly atmosphere. The Leadership Conference is the cream of the crop for networking among the state’s most successful and experienced leaders throughout the industry. This conference is aimed at managers, owners and principals, and regulatory and government officials are often in attendance. As a conscientious agent, you should take an active role in government affairs. On both state and federal levels, industry-related proposals are constantly developed and discussed. MAIA and your national associations lead the way in political advocacy by maintaining strong presences in the Missouri General Assembly and the U.S. Congress. You can support these efforts by making contributions to MAPAC, InsurPac and PIAPAC, the associations’ political action committees. We also sponsor Day at the Capitol in Missouri and take a delegation of agents to the national political summits each spring.
successful agency 3 Cover your assets
You know it. You preach it. But do you practice it? Your agency is teetering on the edge of failure if you don’t have errors and omissions insurance from a respected and proven carrier, as well as good risk management practices. MAIA offers E&O coverage through the two best choices in the business*: Westport Insurance Co. and Utica Mutual Insurance Group. Both companies offer policies tailored to meet your agency’s specific needs. They are recognized throughout the industry for their financial strength and stability. To help you keep premiums low and manage risk in your agency at the same time, MAIA presents E&O seminars three times a year. These seminars are approved for ethics CE credit and loss-control credit with Westport and Utica. Westport clients have access to the E&O Happens website, which offers claims prevention tools, coverage checklists, sample agency procedure manuals, educational articles and other resources. Finally, MAIA can help you make sure that nothing slips through the cracks by writing an insurance agency umbrella policy through Swiss Re or Penn National with limits up to $10 million over the primary E&O policy.
The face of communication is changing so fast you may have a hard time recognizing it, but as a businessperson, you must keep up with industry news and developments. Whether it’s implementation of the new health care law or the latest best practices for Real Time transactions, MAIA has the information you need to know and the format you want. Missouri Agent is a hard-copy magazine, which mails six times per year to every voting member. It is a valuable combination of educational articles, commentary and industry news. The monthly electronic newsletter, the Agents NewsLine, is e-mailed each
month. Short and timely articles with links to more detailed information keep you up-to-date but require minimal time. If you’d rather get your information on demand, check out the MAIA website, Facebook page and live chat feature. The website has all the information you need about news, association services, and upcoming events and classes. If you have a question while you’re there, just hit the “Live Chat” button on the bottom of the page. MAIA’s Facebook page is where you’ll get reminders about MAIA registration deadlines, links to industry news and other tidbits to keep you in touch.
If you know your product, are active in the industry, have strong E&O coverage and are in touch with the business world, your agency has a great backbone. Now’s the time to focus on boosting your agency’s sales. MAIA member agencies are automatically enrolled in the Trusted Choice branding program, created by IIABA to give independent agents a strong voice and increase consumer awareness of the independent system. With Trusted Choice, it doesn’t matter how many employees you have or where you hang your shingle: You can be part of a national brand. Most of the resources available through Trusted Choice are completely free. The Marketing Reimbursement Program will even pay you back for agency supplies and website redesign, which incorporate the Trusted Choice logo. A new tool available through IIABA, Project CAP, works hand-in-hand with Trusted Choice to offer bundled marketing programs, which help agencies build consumer friendly websites and create public relations plans. A second phase of Project CAP, still in development, is a consumer website, which will connect shoppers with independent agencies in their areas and offer online quotes. More information on this tool will be available soon. *Alternate markets also available.
Products and Services Insurance Coverage for Agencies Contact MAIA’s Leona Loethen or Theresa Flippin.
Errors and Omissions Insurance: property-casualty and life-health Life Insurance Accidental Death and Dismemberment Dental and Vision Insurance Long-Term Disability Short-Term Disability Employment Practices Liability Agents Umbrella Program
Insurance Coverage for Clients
Contact MAIA’s Monica Mize or Kelli Kloeppel. Personal Umbrella Coverage In-Home Business Policy Flood Insurance: write-your-own program Big “I” Markets
ct conta A I A : M ation m r o f in
01 93-43 3658. 8 3 7 17e: 5 Phon Mo: 800-6 8 n 3-370 ree i Toll F ax: 573-89 nt.org F e moag t.org maia@ souriagen .mis www
Non-Insurance Products and Services Contact MAIA’s Kelli Kloeppel.
BankDirect and Capital Finance Premium Financing Programs Motor Vehicle Reports and Driver Monitoring Products Employee Testing Service Career Center Retirement Services InsurBanc
Educational Opportunities Contact MAIA’s Emily Koenigsfeld.
CIC: Certified Insurance Counselor Program CISR: Certified Insurance Services Representative Program Risk Specialist Series Continuing Education and Specialized Seminars E&O Loss Control Seminars Elite Force Sales Training School: new class begins May 2013 CIC Scholarships
Conferences and Special Events Contact MAIA’s Jeanne Blomberg.
Leadership Conference (annual state convention), July 17-19, 2013 Small Agency Conference, March 21-22, 2013 Young Agents Conference, June 2-4, 2013 Day at the Capitol, March 6, 2013
IIABA and PIA Federal Legislative Conferences, Spring 2013 CSR Development Conference, Nov. 8-9, 2012 Mid-America Technical Conference, Nov. 4-6, 2012 Agency Compliance Luncheons, Fall 2013 Crawfish Feast, March 20, 2013 Missouri Trusted Choice Big “I” Championship, Summer 2013
Contact MAIA’s Lindsay Griffin. Trusted Choice Branding Program TC Mizzou Tiger Sports Ad Campaign TC Marketing Reimbursement Program TC Tag-Ready Ads for Radio, TV and Print TC Consumer Articles TC Mobile App Information-on-Hold Network Project CAP Logos (Trusted Choice, IIABA and PIA) Member Marketing Activity Center
Agency Information and Resources Contact MAIA’s Amy Hoffman.
Missouri Agent (bimonthly magazine) www.missouriagent.org (MAIA website) Agents NewsLine (electronic newsletter) Membership Directory (online) Education Bulletin Free Legal Consultation Personal Assistance from MAIA Staff Legislative and Special Updates on Timely Issues Virtual University (with the “Ask an Expert” feature) E&O Happens Loss Control Website Big “I” Advantage Virtual Risk Consultant Best Practices Research and Publications Agents Council for Technology
Big “I” Markets Commercial Lines
ACEC Business Insurance Bonds Bid Contractor Performance Surety Other Child Care Commercial Auto Commercial Builders’ Risk Community Banks Business Insurance Program Employers’ Practices Liability Environment Impairment-Pollution Coverage Event Cancellation (EXPO Plus) Event Liability Fidelity/Crime (Wrap+) Financial Advisors’ E&O Fine Art and Valuable Articles (stand-alone) Flood and Excess Flood Insurance Habitational Markets Apartments Condo and Homeowner Associations Hartford Markets Alarm Contractors Arborists Insurance Program Excavation Contractors Insurance Program Orthodics and Prosthetics Insurance Program Septic Contractors Insurance Program Specialized Truck Equipment Program Specialty Pool and Spa Highly Protected Risks Insurance Company Professional and Business Insurance Program Miscellaneous Professional Liability Mobile Food Vendors Motor Truck Cargo Non-Profit Directors and Officers Liability Outdoor Markets Guides and Outfitters Rod and Gun Clubs Fishing and Hunting Lodges, and Plantations Proliability Program Real Estate E&O Recreational Vehicles Restaurant Fine Dining and More (Fireman’s Fund) Travelers Select Accounts Apartment Pac Building Pac Business Pac
Condominium Pac Contractors Pac Garage Pac Office Pac Religious Pac Restaurant Pac Store Pac Technology Office Pac Technology Consultants Professional Liability Vacant Commercial Property Program (admitted) Workers’ Compensation Wrap+ Executive Liability for Private Companies
Personal Lines Affluent 4:1 Package (four carriers) ACE Chartis Chubb Fireman’s Fund At-Home Business Collector Car Policy Event Liability Fine Art and Valuable Articles (stand-alone) Flood Insurance Excess NPC CBRA Marine Insurance Charter Boat Mega-Yacht Performance Boat Personal Watercraft Small Boat Under 27 Feet Yacht Non-Standard Homeowners Affluent Non-Standard Homeowners Coastal Homeowners Non-Standard Condos Non-Standard Homeowners Non-Standard Rental Dwellings Non-Standard Renters Personal Builders’ Risk Seasonal Homeowners Unprotected Homeowners Unsupported Secondary Homeowners Vacant Dwelling Personal Builders’ Risk Personal Excess Policy Personal Umbrella Policy Recreational Vehicles Supplemental Natural Disaster Protection Travel Insurance Vacant Property Program (admitted)
e been v ’ u o y ining ! The tra g for is here waitin
es i R e s t need. s s t i n e i l l c a i r your o c s i v e d psted Choice a s k Risecome the Tru Technology Trends for B
CE Filed Pending Approval
Jan. 23-24, 2013 (Day One: 10 a.m. - 5 p.m., Day Two: 8 a.m. - 3 p.m.) MAIA Headquarters, 3315 Emerald Lane, Jefferson City, MO
How can insurance agents make the most of technology while focusing on running a successful insurance business? This class is made up of mini courses focused on where specific technologies are and where they are going in the next two to three years. These are the things your instructors, Duke Williams and guest Steve Anderson, are working on now. Join them for two days of time travel and re-imagine how you and your business will look in the next few years.
Topics Covered Include: • Identifying technology trends • The future of techonology in the next two to three years • and much more! This list will be updated and a specific agenda listed on back as the class gets closer. With technology changing so frequently, we want to be sure to bring you the most current topics.
Each course in the Risk Specialist Series offers an intermediate to advanced look into different niche markets. Offered quarterly in Jefferson City to members only, the courses are designed to help you become the insurance advisor your important clients need.
Upcoming Risk Specialist Series Classes:
Instructor: Duke Williams with guest Steve Anderson Duke Williams has been a leader in insurance automation since 1981, when he founded Accu-Rater, the first comparison rater. His companies have pioneered many other technologies, including upload and download, and real-time policy issuance in the field. He has also created several of the most used websites in the property-casualty insurance space. A confessed technology junkie, Williams brings a unique ability to see the practical intersection of technology and the insurance business. Steve Anderson is a nationally recognized insurance agency technology authority. He is a prolific writer, who is known for his knack for translating “geek speak” into easily understood language. His newsletter, The Anderson Agency Report, is one of the best and most influential in the industry. Because he fine-tunes his ideas in the real world agents are faced with, Anderson is one of the industry’s top technology consultants.
“All in all – best insurance training I’ve attended.” — Survey Response (Insuring Garage Exposures 2011 attendee)
Disaster Preparedness for Agents & Clients: April 24-25, 2013 Speakers: Don Donaldson, CIC, CRM, RPA, CHS-III and Angie Heavener, CIC, CPIA This two-part seminar is aimed at helping agents prepare their agencies for disaster from a risk management perspective and helping them lead their clients in crisis preparation.
Life & Health Options for the Business Owner: June 26-27, 2013 Speaker: Jerry Rhinehart, CIC, CLU, ChFC, RHU This seminar will include an update on the national health care reform and discussions on estate planning techniques, money in retirement accounts and worksite marketing.
Technology Trends for Insurance Agencies Registration Form Register online at www.missouriagent.org. Name ____________________________________________________ Agency/Company ____________________________________________ E-mail____________________________________________________ City/State/Zip _______________________________________________ Which best describes your role? Owner/Principal Agency Mgr. Producer Account Mgr. Customer Service IT Company Rep PRICING (Circle Selection) Early-bird Fee Regular Fee MAIA Members Only $199 (by Jan. 9) $250 (after Jan. 9) Fee includes materials, CE filing fee and two lunches. PAYMENT METHOD: Check enclosed or MC Visa AmEx Billing Address______________________________________________ Card No: _______________________________ Ex. Date: ______Verification Code: _____ Cardholder Signature: _________________________ Make checks payable to: Missouri Association of Insurance Agents, P. O. Box 1785, Jefferson City, MO 65102-1785. HOTEL: Contact the Best Western at 573-635-4175 by Jan. 8, 2013, and ask to receive the MAIA nightly rate of $86.40 plus tax. You will not receive a refund or transfer credit if you do not notify us before the start of the event. All cancels and transfers must be received in writing. Refunds: a 90 percent refund applies if cancelling more than two weeks prior to start of event; 75% refund if cancelling fewer than two weeks before the event. Transfers: A $30 transfer fee will be assessed on any CIC or two-day seminar transfer made within two weeks of the program. Transfers may only be made to another MAIA course. Student must indicate a transfer course within two weeks of cancellation, or appropriate percentage of tuition will be refunded. We work hard to make our programs accessible to all. If you need special accommodations, simply phone MAIA at 800-617-3658. Please notify us if you have any special dietary requirements.
Questions? Phone: 800-617-3658 (in Mo.), 573-893-4301; www.missouriagent.org; e-mail: firstname.lastname@example.org
committees Budget and Finance Committee This committee works with the executive vice president on all financial matters and monitors the budget and financial policies of the association. Each year, it presents an annual budget to the board of directors. Chairman Randy Baker, T.R. Baker Insurance Agency, Kennett Doug Clift, Bowersox Insurance Agency Co., St. Louis Staff Liaison Larry Case, MAIA
Communications and Technology Committee This is a newly formed committee, the result of a merger of the Public Relations Committee and the Technology Committee. It utilizes print and electronic media to enhance the image and profile of independent agents while simultaneously working to help agents develop their own communications and technology platforms with the goal of increased profits through branding and workflows. The committee focuses on social networking, website optimization, and various forms of on- and offline advertising, as well as office protocols such as Real Time, download and working with an agency management system. Chairman Kevin Krueger, Capstone Insurors, Bolivar Pauli Clariday, Cameron Insurance Cos., Cameron Chad Connell, Connell Insurance, Branson Shane Davolt, G M Peters Agency, Liberty Ross Ingersoll, Ingersoll Insurance Agency, Savannah Mitchell Mills, Mills & Sons, Clinton Dawn Oney, The Insurancenter, Joplin Steve Rackley, Rackley Insurance Agency, Gainesville Staff Liaison Amy Hoffman, MAIA
CSR Development Conference Committee This committee organizes, plans and implements an annual conference for customer service representatives and other front-lines employees in the insurance agency. The conference offers education specifically designed to bolster the CSRsâ€™ skills for their unique tasks and workflows. Chairman Belinda Brenizer, Hawkins Insurance Group, Edina Maureen Conroy, Charles L. Crane Agency Co., St. Louis Teri Jannett, Electric Insurance Co., Ballwin Toni McClish, T.R. Baker Insurance Agency, Kennett Jennifer Taylor, Mike Keith Insurance, Clinton Tammy Wickham, Naught-Naught Insurance Agency, Fulton
Crystal York, Winter-Dent & Co., Jefferson City Staff Liaison Emily Koenigsfeld, MAIA
Education Committee The Education Committee provides professional development opportunities for members to assist them in acquiring the necessary knowledge and skills they need to provide the highest possible level of service to the insurance consumer. The committee also monitors continuing education requirements; oversees the operation of professional designation programs adopted or endorsed by MAIA; and makes recommendations to other committees regarding educational programming to be offered at conferences and other events. Chairman Vickie Winkler, Lakenan Insurance, Ste. Genevieve Dawn Berry, Provident Insurance Agency, Florissant Tami Brown, Mills & Sons, Clinton Christian DeLozier, Mike Keith Insurance, Clinton Chuck Hembree Jr., Clark-Lami-Hembree, Manchester Laura Laramore, First State Insurance Agency, Farmington Darrin Stafford, Stafford & Stafford Insurance, Harrisonville Staff Liaison Emily Koenigsfeld, MAIA
Government and Industry Relations Committee This committee monitors the marketplace, the government and the regulatory environment for issues impacting members and their clients, working with interested parties to develop strategies and solutions to deal with conflicts or changes within the industry. The committee also works closely with the Missouri legislature to achieve the goals of the independent agency system. Chairman Chris Rupp, J.C. Rupp Agency, Liberty Brad Greer, Missouri General Insurance Agency, St. Louis Ron Harrison, Whitney-Harrison Insurance, Kirksville Kyane Marble, Hawkins Insurance Group, Edina Jeff Mentel, AHM Financial Group, St. Louis Tom Montileone, Barker-Phillips-Jackson, Springfield Darren Smiley, Hillebrand Insurance, Mexico Jeannine Stuart, Missouri General Insurance Agency, St. Louis Lee Wilbers Jr., Wallstreet Group, Jefferson City Lobbyist Gary Burton, Burton-Liese & Associates, Joplin Lobbyist Chris Liese, Burton-Liese & Associates, Jefferson City Staff Liaison Larry Case, MAIA
Leadership Conference Committee This committee organizes, plans and implements MAIAâ€™s premier event, formerly known as the Annual Convention. The Leadership Conference joins quality education with excellent continued on page 30
MAIA 2012-13 committees networking opportunities. It is also the stage for the annual Awards and Installation Banquet. Chairman Randy Smart, Smart Insurance Agency, Marionville Brian Harrison, Harrison Agency, Columbia Alan Hedrick, County Wide Insurance, Dexter Butch James, Charles L. Crane Agency Co., Chesterfield Jon Stahly, W.E. Walker-Lakenan, Cape Girardeau Gary Thompson, Columbia Insurance Group, Columbia Staff Liaison Jeanne Blomberg, MAIA
Membership Retention and Solicitation Committee The Membership Retention and Solicitation Committee reviews all membership dues categories, making recommendations for changes to the board of directors. It solicits new members from a continually updated prospect list and follows up with members who have not renewed their membership. Chairman Patrick Clarkin, Charles L. Crane Agency Co., St. Louis Ricky Baker, Robertson Insurance Services, Chillicothe Mike Broghammer, United Fire Group, Cedar Rapids, Iowa Mark Gibbins, Ellington Insurance Agency, Portageville Paul Long, The Paul Long Agency, Bolivar Jared Self, Self Insurance Agency, Sikeston Jake Taylor III, Beckett Taylor Insurance, Columbia Staff Liaison Kelli Kloeppel, MAIA
Missouri Trusted Choice Big “I” Championship This committee coordinates a state tournament to send the allotted number of players to the Trusted Choice Big “I” National Championship. The committee is responsible for promoting the tournament and encouraging support from agency sponsors and producer volunteers. Chairman Darin Banner, Capstone Insurors, Bolivar Mike Boone, Heffernan Insurance Brokers, Chesterfield Nick Brenizer, Golden Rule Insurance Agency, Osage Beach Jason Comfort, County Wide Insurance, Dexter Marty Hensley, G M Peters Agency, Liberty James Neuner, Winter-Dent & Co., Jefferson City Matt Speight, Scott Agency, Montgomery City Consultant Molly Hudgins, Future College Golf Association, St. Louis Staff Liaison Jeanne Blomberg, MAIA
continued from page 29
Nominations and Awards Committee This committee seeks out and recommends to the board of directors qualified candidates for MAIA’s officers, directors and annual awards in accordance with the guidelines of the association’s by-laws and policies, allowing for additional nominees from the membership and from the board. Chairman Byron Robison, Great Southern Agency, Ozark Staff Liaison Larry Case, MAIA
Planning Committee The Planning Committee develops the association’s longrange plan, as well as key goals for the coming year, and presents its recommendations to the board of directors. Chairman Brian Harrison, Harrison Agency, Columbia Staff Liaison Larry Case, MAIA
Political Action Fundraising Committee This committee raises funds for the Missouri Agents Political Action Committee, necessary to maintain the association’s presence in the Missouri political arena. It consults with the association’s lobbyists for proper dispersal of these funds. The committee also encourages MAIA members to support the IIABA and PIA political action committees. Chairman Brent Speight, Scott Agency, Montgomery City J.L. Brenizer, Hawkins Insurance Group, Edina Byron Robison, Great Southern Agency, Ozark Mollie Wells, AHM Financial Group, St. Louis Staff Liaison Lindsay Griffin, MAIA
Small Agency Committee The Small Agency Committee produces an annual conference designed especially for small to mid-sized agencies to provide continuing education, information to help the small agent and expanded markets through a trade show. This conference is designed to accommodate the small agency with affordable prices and minimum time away from the office. Chairman Steve Rackley, Rackley Insurance Agency, Gainesville Devona Allen, Nimmo Insurance Agency, Buffalo Nathan Brown, W.E. Walker-Lakenan, Jackson Jason Comfort, County Wide Insurance, Dexter JC Crow, Three B’s Insurance, Monroe City Jim Joyner, Insurance Associates of Johnson County, Warrensburg Andrea Powell, United Fire Group, St. Louis
David Tripp, Don Tripp Agency, Mansfield Staff Liaison Jeanne Blomberg, MAIA
Technical Committee The Technical Committee researches and responds to MAIA membersâ€™ and their insuredsâ€™ questions and concerns regarding insurance policy coverages, terminology and interpretations. Where appropriate, it communicates with industry and regulatory officials and recommends changes in regulations, endorsements, policy forms, etc., in order to clarify intent or improve coverages. The committee participates in the MidAmerica Technical Conference and other forums relating to technical and coverage issues. Chairman Jack Chapman, Bowersox Insurance Agency Co., Webster Groves Jane Dobrinic, Charles L. Crane Agency Co., St. Louis Carol Teasley, Westrope, Leawood, Kan. Tim Wahl, Gallaher Insurance Group, Columbia David Walker, Mills & Sons, Clinton Staff Liaison Larry Case, MAIA
Young Agents Committee This committee promotes the local, state and national activities intended to attract young people into the insurance business and the agency system. It holds an annual conference and creates opportunities for leadership development within the association. Chairman Tricia Jackson, Melahn Insurance Agency, Mexico Jon Stahly, W.E. Walker-Lakenan, Cape Girardeau Summer Cole, Beimdiek Insurance Agency, Carthage Stephen Major, America First Insurance, St. Peters Chris Meckem, United Insurors, Lebanon Parker Mills, Mills & Sons, Clinton Tina Reed, Insurisk Excess & Surplus Lines, Ozark Jared Self, Self Insurance Agency, Sikeston Josh Stafford, Stafford & Stafford Insurance, Harrisonville Staff Liaison Jeanne Blomberg, MAIA
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MAIAstaff Larry Case executive vice president email@example.com
Lindsay Griffin, AIP vice president of marketing firstname.lastname@example.org
Sheryl Van Leer vice president of operations email@example.com
Leona Loethen insurance services manager firstname.lastname@example.org
Jeanne Blomberg, AIP events manager email@example.com
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from your friends at
errors omissions Don’t let an earthquake shake your agency Annette Hollingsworth
vice president, Swiss Re Corporate Solutions
According to the U.S. Geological Survey, there is a 100 percent chance of an earthquake today. Most earthquakes are so slight that they are not felt by humans. But hundreds of earthquakes each year are strong enough to cause property damage and injury.1 In North America, quakes along the Pacific seaboard are frequent and often significant. In fact, the USGS says that within the next 30 years, the probabilities of an earthquake measuring a magnitude of 6.7 on the Richter scale in the San Francisco Bay area and Southern California are 62% and 60% respectively.2 Some of the strongest quakes in the United States occurred along the New Madrid fault in 1811 and 1812. Contrary to popular belief, the New Madrid earthquake was not just one quake but a series of three major quakes over the course of three months. All three quakes measured in excess of 7.4 on the Richter scale. During the quakes, waves on the Mississippi River caused boats to capsize and resulted in a number of deaths. River banks caved and collapsed into the river. Whole islands disappeared. The region most seriously affected was sparsely populated at the time,3 but today, the effects of another severe earthquake would constitute a major disaster, and the USGS says there is a 40% likelihood of a severe quake within the next 50 years.4 The New Madrid Fault Zone is now densely populated, with Memphis, Little Rock, Birmingham, Nashville and St. Louis all less than 250 miles from the most seismically active part of the area. The East Coast is not normally considered a seismic area, yet in August 2011, a 5.8 quake hit Virginia and Washington, D.C., resulting in the closure of the Washington Monument for many months. Another strong earthquake on the East Coast occurred in Charleston, S.C., in the late 1800s, when more than 50 people died and most buildings in the city were damaged or destroyed.5 Earthquake damage and destruction is typically excluded from homeowners and commercial property policies; however, earthquake coverage can be obtained from a number of insurance companies for an additional premium amount.
Still, only 12% of homeowners in California buy earthquake coverage.6 In Oregon, only 20% of homeowners buy earthquake insurance.7 In Missouri counties located near the New Madrid fault, the number of residences with earthquake insurance has decreased to less than 50% in recent years.8 This lack of insurance raises the question: What is the insurance agent’s duty to advise customers regarding the need for earthquake coverage?
Duty to advise There is no set standard regarding an agent’s duty to advise insureds that they need to obtain earthquake coverage. The extent of advice an agent must provide to clients varies from state to state. (Editor’s note: See “The Legal Side,” page 9, for a discussion on duty to advise from MAIA legal counsel Lew Melahn, J.D.) Some states will find that, absent a special relationship, an agent has no duty to advise the client of optimum limits or insurance available or to tell the client when coverage is too low. This view was set forth in Blevins v. State Farm Fire & Cas. Co., 961 S.W. 2d 946 (Mo. Ct. App. 1998) where the court wrote in its opinion: Missouri does not recognize a duty on the part of an insurance agent to advise customers as to their particular insurance needs or as to the availability of optional coverage. Farmers Ins. Co., Inc. v. McCarthy, 871 S.W. 2d 82, 85 (Mo. App. 1994). In McCarthy, the plaintiff argued that her insurance agent had an affirmative duty to advise her concerning underinsured motorist coverage. In rejecting this argument, the court identified several policy reasons for refusing to hold the agent liable. Holding the agent or company liable: (1) would remove the responsibility from the insured to look after his own financial needs; (2) would change insurance companies into financial counselors or guardians of the insured; (3) would open companies to liability for failing to advise of every conceivable option, even those suffered by competitors; and (4) would allow insureds to circumvent risk by allowing the opportunity for coverage after a loss by an allegation that insureds would have sought additional coverage if it were offered. Id. at 85-86. The court
also noted that insureds know more about their personal assets and ability to pay than does their insurance agent. Id. at 85. It follows, therefore, that it is the responsibility of those seeking insurance to advise an agent as to what they want. Id. Other states require there to be a special relationship between the agent and the insured if the court imposes an affirmative duty to advise customers about available coverage. The establishment of a special relationship is usually based on one or several of the following factors: extra compensation beyond premium; long-term relationship where the agent is aware the customer is relying upon and dependent upon the agent’s advice; or the agent’s self-promotion as an expert. In Durham v. McFarland, Gay & Clay, Inc., 527 So. 2d 403 (La. Ct. App. 1988), the Court of Appeals of Louisiana found an agent breached his duty to advise the insured of the need for residential flood protection when the agent had handled the insured’s insurance needs for 10 to 15 years and the agent knew the insured had no flood insurance on the residence. Also see, Free v. Republic Ins. Co., 11 Cal. Rptr. 2d 296, 297 (Cal. Ct. App. 1992), where the court found a longterm relationship or special agreement with an insurance agent might create a “special duty to use reasonable care.” A few states find the agent responsible to advise clients about available insurance coverage, even absent a special relationship. New Jersey courts have stated that the agent has a duty to: (1) have the degree of skill and knowledge requisite to his or her employment responsibilities; (2) exercise good faith and reasonable skill, care and diligence in the execution of his or her employment responsibilities; (3) possess reasonable knowledge of available policies and terms of coverage in the area in which the insured seeks protection; and (4) either procure the coverage necessary for the client’s exposures or advise the client of his or her inability to do so. Rider v. Lynch, 42 N.J. 465 (1964) at 467-477. With regard to coverage for individuals, California has avoided the whole issue of whether or not agents have the responsibility to advise their clients about the need or the availability
of earthquake coverage by passing legislation referred to as the “Earthquake Insurance Act.”9 This law requires carriers to advise their insureds of the availability of coverage.
Documentation The agent should reduce all recommendations and advice to writing and take clear notes of client instructions. Confirm discussions by way of letters sent to your client. If you discuss earthquake coverage with your client, make sure you document your file to show that you have advised your client of its availability, even if your client rejects the coverage. If your client rejects coverage, send a confirming letter that you offered it. Ask clients to sign and return a form acknowledging that they were offered coverage and choose to reject such. Retain a copy of the letter in the policy file indicating how it was sent with proof of delivery where possible. Documentation is extremely important when disputes arise. Memories may fade, but proper documentation lives on.
Explanation of coverage provisions As an agent, you are more likely to be drawn into litigation when your client is disappointed with the amount of payment for a claim or has misunderstandings regarding provisions found in the policy. Because earthquake insurance is somewhat unique in its terms and provisions, the agent should explain unique provisions, which may not be understood by the client, such as deductible provisions, exclusions and sublimits. Earthquake insurance is structured as a catastrophic coverage, thus requiring the insured to have greater participation in the payment of loss than a typical property policy. Typically, the deductible for earthquake insurance is struccontinued on page 36
errors&omissions tured as a percentage of the limits of insurance rather than a set amount per occurrence. For example, a 5% deductible on a $200,000 dwelling would mean a deductible of $10,000 whether the loss was $50,000 or $200,000. Additionally, the deductible percentage applies to each coverage separately, so if the insuredâ€™s dwelling limits were $200,000 and the insuredâ€™s personal property limits were $100,000 and the insured carried a 5% deductible, the insured would be responsible for a deductible of $10,000 for the dwelling and another $5,000 for the personal property. Every policy has certain exclusions, and that is also true with earthquake policies. For instance, the earthquake policy may exclude or have a limitation on the amount payable for damage to swimming pools, fences, or china and glassware. Unreinforced masonry siding or chimneys and brick walls may also be excluded or limited, and this is not an exhaustive list. Additionally, there may be underwriting restrictions, such as waiting periods during which an agent is unable to secure earthquake
continued from page 35
coverage for clients. When there has been recent seismic activity, individuals become eager to add earthquake coverage, yet additional aftershocks creating damage to property may still occur. Thus insurers will place a moratorium on writing new earthquake coverage, which typically lasts from 30 to 60 days. The agent should clearly communicate to clients that no coverage can be bound until the moratorium has elapsed. If the agent has an answering machine or service, it is always advisable to leave an outgoing message emphasizing that coverage cannot be bound or altered by leaving a message on the answering machine.
Conclusion Despite recent quakes and an increasing awareness of the devastation earthquakes can cause, few consumers are choosing to purchase insurance protection for the inevitable event. Lack of insurance and poor understanding about the coverage options available will increase the potential for errors and omissions claims to be brought against insurance agents. Understand-
ing your duty to advise your clients, documenting your files and carefully educating your customers about the terms of earthquake coverage will keep you on steady ground even with the earth quivers. Annette Hollingsworth, J.D., CPCU, CLU, ARC, serves Swiss Re’s products unit.
8 “Missouri Department of Insurance. News. Web. 17 June 2012. http://insurance.mo.gov/ news/2011/Department_of_Insurance_Missouri_ consumers_not_being_protected_with_earthquake_insurance. 9 “Earthquake Insurance” Earthquake Insurance. Web. 17 June 2012. http://www.insurance. ca.gov/0100-consumers/0060-informationguides/0040-residential/earthquake-insurance. cfm.
This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/ or its subsidiaries and/or management and/or shareholders. (Endnotes)
1 “100% Chance of an Earthquake.” 100% Chance of an Earthquake. Web 17 June 2012. http://earthquake.usgs.gov/learn/ topics/100_chance/php. 2 FAQs – Probabilities, Seismic Hazard & Earthquake Engineering.” FAQs – Probabilities, Seismic Hazard & Earthquake Engineering. Web. 15 June 2012. http://earthquake.usgs.gov/learn/ faq/?categoryID=9. 3 “Historic Earthquakes.” Historic Earthquakes. Web. 15 June 2012. http://earthquake.usgs.gov/ earthquakes/states/events/1811-1812.php. 4 “Memphis Earthquake Hazard Mapping Project.” Memphis Earthquake Hazard Mapping Project. Web. 17 June 2012. http://earthquake.usgs. gov/regional/ceus/urban_map/Memphis/. 5 “Historic Earthquakes.” Historic Earthquakes. Web. 15 June 2012. http://earthquake.usgs.gov/ earthquakes/states/events/1886_09_01.php. 6 Kovacs, Paul. Reducing the Risk of Earthquake Damage in Canada: Lessons Learned from Haiti and Chile. Publication. Institute for Catastrophic Loss Reduction. Print. Nov. 2010. 7 “Few Oregonians Have Earthquake Insurance.” Portland Business Journal. 18 Jan. 2010. Web. 15 June 2012. http://www.bizjournals.com/Portland/ stories/2010/01/18/daily8.html.
big social impact Amy J. Hoffman editor, MAIA
Mandla, like so many others in South Africa, struggled for the basics of a comfortable life. He and his family spent most of their time on the hand-to-mouth side of poor. When an opportunity arose for Mandla to open a gas station, it looked like he might finally secure the steady stream of income he needed to bring his family into the middle class and become a producing member of society. That’s when he was diagnosed with HIV. With a fatal disease and no insurance, he was not a good financial risk for the loan of 2 million rand he needed to open the gas station. Mandla’s situation is familiar throughout the developing world. World Bank statistics reported that 4 billion people were living on less than $4 per day in 2010 (reported in 2005 international dollars based on purchasing power parity). Many of these individuals are actually poised to move into a higher earning bracket but cannot take the financial risks that would put them there. Because they have so little to begin with, their risk of losing everything is enormous. This is the sector of the world’s population that is the target of a developing insurance
market known as microinsurance. Microinsurance products are designed for individuals who can only afford the meagerest of premiums but who need a safety net in order deal with risks in a proactive rather than reactive manner. “Microinsurance can serve as a tool to actively manage these risks, and therefore, it provides them the means to have a more sustainable livelihood,” explains Paula Pagniez, New York, senior microinsurance expert for Swiss Re Insurance. Just as traditional insurance does in current developed markets, microinsurance gives consumers in poor but developing areas the confidence to invest – often in a small, family business like Mandla’s – without fear. This in turn allows them to make decisions for health and happiness rather than just for survival. For instance, a crop policy for a family farm might give the farmer the peace of mind to plant another field and still send his daughter to school where before, that tuition money would have been necessary to live on if the new crop failed. Providers also benefit from the sale of microinsurance, according to a Lloyd’s report, “Insurance in Developing Countries.” A larger, more diversified risk pool allows companies to move into new
markets, where the population is underserved, helping to balance the stagnation that has occurred in many developed areas, where the insurance market is saturated. The social investment can also be a resource to improve the company’s reputation, as well as the reputation of the entire industry. “What we see is that by helping these sectors of society climb the financial ladder, we are in turn helping the insurance market,” explains Pagniez. “It’s truly the potential of creating new markets, helping with the dynamic growth of society,” she adds. Putting microinsurance to work, however, requires a different approach than traditional insurance. The most noticeable difference is the premium structure. LeapFrog, an international microinsurance investment company, estimates that most policy premiums range from $1-10 per month depending on the product and the geographical area. Prices are often group rates, even for property-casualty policies, rather than individual or risk-adjusted rates. Claims may also be adjusted on a group basis, rather than individual losses, and exclusions are relatively few. Perhaps the most unique feature of microinsurance is its distribution system. Traditional agent or direct carrier sales are almost useless in places where consumers may be spread throughout huge rural areas and are often completely unfamiliar with the concept of insurance. To deal with these challenges, providers work with another organization, sometimes several, to reach the client. These organizations might be local government sectors, non-profit organizations, banks or microfinance institutions, hospitals and doctors, or area co-ops. Reinsurance also plays a huge role in the microinsurance industry by providing carriers the financial security they need to work within the developing market. And companies such as Swiss Re serve as experts in the field, helping to initiate programs in new areas. Since insurance regulations vary throughout the industry, Swiss Re has to approach each new program and distribution scheme as an entirely new project. “We work with each market and actually contribute to the development of each market according to its characteristics,” says Pagniez. “Each scheme is going to be different. It’s bottom-up development.” The predominant consideration when creating a new program is the need of the consumers in a given area. Health and life programs currently dominate the market, but the demand for property policies, especially crop coverage, is growing across the globe. In keeping with the
flexible and need-based nature of microinsurance, policies sometimes combine different types of coverage. Catastrophe insurance is another growing product, and indexed policies, which automatically pay out when a certain threshold (such as amount of rainfall in a given period) is reached. The index provides a simple approach to claims adjustment and is easy to understand for policyholders who have a limited financial education. Microinsurance has given birth to some unique products, such as funeral insurance in India, where certain religious criteria can bring the cost of funerals to more than 15 times the average monthly household income. Takaful is a specific type of mutual policy designed to adhere to Islamic laws. In South Africa, the greatest demand is Mandla’s: health insurance that does not exclude HIV and AIDS. AllLife, a company that partners with LeapFrog, is currently the only insurer for these patients. The program requires clients to follow an “adherence management program,” through which they manage their health with regular testing, medication and lifestyle choices. After being turned down for the loan he needed to open his gas station, Mandla was directed to AllLife. Not only did the company issue an affordable health policy, but it worked with the bank to ensure that Mandla received the loan. The microinsurance market is making changes like this one every day across the globe. “Microinsurance is truly protecting the income levels of the populations we are working with,” says Pagniez, adding, “It’s fostering development in health, education and microentrepreneurship opportunities.”
fromthepresident an option can provide excess limits over your employment practices liability policy if you have one. My current umbrella policy doesn’t provide these coverages, but my new one will.
Insurance for our clients There are also a number of insurance products offered by MAIA for our clients. I would suggest you take a look at the personal umbrella and in-home business policies by RLI. These are handled by MAIA and provide excellent coverage when your own insurance carrier won’t provide an umbrella over another company’s underlying policy. RLI is an A+ rated carrier with a broad appetite, competitive pricing and streamlined processing for hard-to-place, stand-alone umbrella policies. Our agency has had excellent success with both these products.
Agency financing Finally, I would like to highlight the Bank Direct Capital Finance and Capital Premium Financing programs. These are also endorsed on a state level by MAIA. There are a number of other premium financing programs out there, but we have found Bank Direct and Capital Premium Financing provide excellent service and rates and are MAIA Partners. And this is just to name a few! For a full list of products and services, simply go to the MAIA website and click on “Member Services and Products,” or see page 26. MAIA is continually reviewing its programs to make sure they are relevant and provide value to the membership. Plus, please don’t forget that using the services and products offered by our association helps fund other important activities like our legislative efforts and agent advocacy. If there are any services or programs you think MAIA should consider offering, please don’t hesitate to let me know. You can e-mail me at email@example.com. I would be remiss if I didn’t mention our final big push for InsurPac contributions in 2012. Byron Robison did an excellent job getting us off to a good start, but we still need $3,628 in donations to hit our goal of $17,200. Our legislative efforts in Missouri and on a national level are not party based. The support has nothing to do with who is a Democrat or Republican. Both InsurPac and MAPAC work to
continued from page 5
protect the rights and best interests of independent agents and small businesses. In order for this to happen, we must have a strong voice and an active role in the legislative process, and that takes money. Please help support the independent agent and small business communities by helping us hit our goal for 2012. Any and all donations are important. One of my favorite holidays, Thanksgiving, is just around the corner. It is a time to spend with family and be thankful for the many things we are blessed with. Some of us have lost family members or close friends this past year, and it is a wonderful time to remember them. We’ve also learned the importance of cherishing those family and friends we still have. Please take a moment with me to remember the four past presidents we lost this past year: my father, Richard Clift; Dick Jackson; Wayne Morgan; and Charlie Foster. It is a reminder of the great leadership we have been lucky to have at MAIA over the years. We are thankful for your membership.
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regulatoryactions Enforcement actions • Cortez Brown, St. Louis, Mo., resident insurance producer license refused. • Darrin M. Bumpus, St. Louis, motor vehicle extended service contract producer license refused. • Jonas A. Caffey, O’Fallon, Mo., motor vehicle extended service contract producer license granted subject to special conditions. • Antonio L. Campbell, St. Louis, Mo., resident insurance producer license refused. • Judith Carrillo, Brighton, Colo., voluntary forfeiture of $250 for failure to report an administrative action in another jurisdiction. • LaChelle Cutts, St. Louis, Mo., motor vehicle extended service contract producer license granted subject to special conditions. • Jay R. Gottman, Lee’s Summit, Mo., insurance producer license revoked. • Faisal Hamdan, Florissant, Mo., voluntary forfeiture of $1,000 for conducting public adjuster business without a valid license. • Robert Haenisch, Overland Park, Kan., voluntary forfeiture of $500 for failing to report a felony conviction. • James W. Hodge, Belding, Mich., motor vehicle extended service contract producer license application refused. • Rebecca L. Hoskins, Hollister, Mo., voluntary forfeiture of $1,000 for conducting title insurance business without a proper license. • Pamela Huston, Gallatin, Mo., voluntary forfeiture of $600 for failure to submit monthly affidavit. • Alen Ighedosa, Kansas City, Mo., voluntary forfeiture of $250 for failing to file mandated paperwork. • Phillip L. Joyce, Marshfield, Mo., bail bond agent license granted subject to special conditions. • Leslie H. Kent, Nixa, Mo., bail bond agent license renewal refused. • Derek Kemp, Linn, Mo., insurance producer license granted subject to special conditions. • Bobb A. Meckenstock, Hays, Kan., voluntary forfeiture of $250 for failing to report a FINRA suspension. • Roger Metzger Jr., voluntary forfeiture of $1,000 for failing to file mandated paperwork. • Kristine Moss, St. Peters, Mo., voluntary forfeiture of $1,000 for violations of insurance regulations. • Robert J. Peters Jr., Florissant, Mo., motor vehicle extended service producer license refused.
• Mary S. Pillock, Margate, Fla., insurance producer license revoked. • William J. Porath, Green Bay, Wis. (last known), insurance producer license revoked until complaint filed June 13, 2012 or a future complaint may be served. • Steven C. Presson, St. Peters, Mo., motor vehicle extended service contract producer license refused. • LaShawna Purifie, Phoenix, Ariz., voluntary forfeiture of $250 for failing to report a criminal charge. • Michael L. Reed, Olivette, Mo., motor vehicle extended service producer license application refused. • Corey Ryan, Forissant, Mo., voluntary forfeiture of $250 for failing to report misdemeanor convictions. • Samuel L. Sadler, O’Fallon, Mo., motor vehicle extended service contract producer license granted subject to special conditions. • Tamela Sanders, Doniphan, Mo., voluntary forfeiture of $200 for failing to report misdemeanor convictions. • Jason S. Spore, St. Charles, Mo., permission to maintain current insurance producer license subject to special conditions. • Morton Insurance of Colorado, Denver, Colo., voluntary forfeiture of $250 for failure to report an administrative action by another jurisdiction. • Starr Insurance Holdings, New York, N.Y., voluntary forfeiture of $1,000 for failing to file mandated paperwork.
Market conduct exams • Aetna Health Insurance Co. and Aetna Life Insurance Co., Hartford, Conn., stipulation of settlement filed and voluntary forfeiture of $1.5 million. • Agents National Title Insurance Co., Columbia, Mo., stipulation of settlement filed and voluntary forfeiture of $12,000. • American Family Life Assurance Company of Columbus, Columbus, Ga., regulatory settlement agreement filed. • Chubb National Insurance Co., Warren, N.J., stipulation of settlement filed and voluntary forfeiture of $68,000. • Dakota Homestead Title Insurance Co., Sioux Falls, S.D., stipulation of settlement filed and voluntary surrender of certificate of authority to transact business in the state of Missouri. • Dakota Truck Underwriters, Sioux Falls, S.D., stipulation of settlement filed and voluntary forfeiture of $17,2500. continued on page 44
regulatoryactions • Dallas National Insurance Co., Dallas, Texas, stipulation of settlement filed and voluntary forfeiture of $13,500.
continued from page 43
Reinsurance Corp. merged with and into the aforementioned company.
• First American Title Insurance Co., Scottsdale, Ariz., voluntary forfeiture of $2,000.
• Housing Enterprise Insurance Co., Cheshire, Conn., effective Aug. 2, 2012, added fidelity and surety authority.
• Great Northern Insurance Co., Warren, N.J., stipulation of settlement filed and voluntary forfeiture of $2,000.
• HumanaDental Insurance Co., Depere, Wis., effective July 18, 2012, registered as a discount medical provider.
• Pacific Indemnity Insurance Co., Warren, N.J., stipulation of settlement filed and voluntary forfeiture of $7,000.
• Merchants National Bonding, Des Moines, Iowa, effective July 13, 2012, was admitted with property and liability authorities.
• Stewart Title Guarantee Co., Houston, Texas, stipulation of settlement filed and voluntary forfeiture of $128,000.
• Midwest Family Mutual Insurance Co., Minneapolis, Minn., effective July 19, 2012, redomesticated from Minnesota to Iowa.
• Vigilant Insurance Co., Warren, N.J., stipulation of settlement filed and voluntary forfeiture of $4,000.
• National Insurance Marketing Brokers, Kansas City, Mo., effective Aug. 6, 2012, was admitted as a third party administrator.
• XL Specialty Insurance Co., Stamford, Conn., stipulation of settlement filed and voluntary forfeiture of $21,000.
• Patriot Claim Services, Fort Lauderdale, Fla., effective Aug. 6, 2012, was admitted as a third party administrator.
• Zenith Insurance Co., Woodland Hills, Calif., stipulation of settlement filed and voluntary forfeiture of $21,500.
• Phoenix Physicians Insurance Risk Purchasing Group, Payallup, Wash., effective July 1, 2012, withdrew as a purchasing group.
• Plico Risk Retention Group, Oklahoma City, Okla., effective Aug. 6, 2012, was registered as a risk retention group.
• American Feed Industry Insurance Company Risk Retention Group, Des Moines, Iowa, effective June 30, 2012, withdrew as a purchasing group. • Arthur J. Gallagher School Risk Purchasing Group, Aliso Viejo, Calif., effective July 13, 2012, registered as a purchasing group. • Billings Mutual Insurance Co., Billings, Mo., effective July 1, 2012, Scott County Farmers Mutual Insurance merged with and into the aforementioned company. • Carl Warren & Co., Placentia, Calif., effective Aug. 6, 2012, was admitted as a third party administrator. • Cooperating School Districts of Greater Kansas City Self-Insurance Pool, Kansas City, Mo., effective Aug. 15, 2012, was admitted as a political subdivision assessable. • Distinguished Star Contractors RPG, Wilmington, Del., effective July 19, 2012, registered as a purchasing group. • Euler Hermes North America Insurance Co., Owings Mills, Md., effective Aug. 2, 2012, changed its name from Euler Hermes American Credit Indemnity Co. • Generation Life Insurance Co., Scottsdale, Ariz., effective Aug. 2, 2012, changed its name from Congress Life Insurance Co.
• Protective Life Insurance Co., Birmingham, Ala., effective July 1, 2012, United Life Insurance Co. merged with and into the aforementioned company. • Smith Auto Group Bella Vista, Pineville, Mo., effective Aug. 15, 2012, was registered as a motor vehicle service contract provider. • Smith Auto Group Bella Vista 2, Pineville, Mo., effective Aug. 28, 2012, was registered as a motor vehicle service contract provider. • Smith Auto Group Bella Vista 3, Pineville, Mo., effective Aug. 15, 2012, was registered as a motor vehicle service contract provider. • Tokio Marine America Insurance Co., New York, N.Y., effective Aug. 31, 2012, was admitted with property, liability, fidelity and surety, accident and health, and miscellaneous authorities. • Wellnesspro Purchasing Group, American Fork, Utah, effective July 9, 2012, registered as a purchasing group. • Western Insurance Co., Reno, Nev., effective July 18, 2012, certificate of authority revoked. • Youth Organizations Safety Association, Garden City, N.Y., effective July 24, 2012, registered as a purchasing group.
• Global Reinsurance Corporation of America, New York, N.Y., effective July 1, 2012, Global
agencynews Lockton honors announced
Lockton Cos., Kansas City, has been named to InformationWeek magazine’s “InformationWeek 500,” which recognizes the country’s most innovative users of business technology. The insurance agency has also been selected as one of the “Best Places to Work in Insurance” for 2012 by Business Insurance.
Members named Best Practices agencies
Four MAIA members agencies have been included in the list of 2012 Best Practices agencies from IIABA and Reagan Consulting. The Missouri agencies are: AHM Financial Group, St. Louis; BancorpSouth Insurance Services, Springfield; Ollis & Co., Springfield; and The Insurancenter, Joplin. See page 19 for information about becoming a Best Practices agency.
Richard (Dick) Jackson, Springfield, passed away Sept. 21, 2012, at the age of 65. Jackson served 6052_Surplus Lines_Layout 1 7/13/2012 9:11 of AMBarker-PhillipsPage 1 as the president and CEO Jackson until he retired in 2002. He continued as chairman of the board for two more years.
He was president of MAIA in 1981 and was active with the association for many years. Jackson was the chair of the Government Relations Committee from 1982-89, and he twice received the Committee Chairman of the Year award for his work. Jackson was named MAIA’s Young Agent of the Year in 1977 and Insurance Person of the Year in 1985. He received the E. Ellwood Willard Outstanding Service Award in 2007. Jackson was also named the Insurance Professional of the Year for the Springfield Independent Insurance Agents. In addition to his work with the association, Jackson was active in his community as a member of the Springfield Area Chamber of Commerce. He supported many non-profit agencies and programs, including the Springfield Business and Development Corp.’s Partnership of Prosperity, the United Way of the Ozarks and Ozarks Public Television. Jackson is survived by his wife, Gail, and his step children Tabitha Klessens and Joe Mills. Memorials are suggested to the Wounded Warriors Project, P.O. Box 758517, Topeka, KS 66675 or www.woundedwarriorproject.org.
SUPPORT YOUR MISSOURI WHOLESALERS For all hard-to-place, Excess and Surplus Lines and specialty accounts. Call the people that support your organization.
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 Med James, Inc. - Kansas City Med James, Inc. - Springfield Med James, Inc. - St. Louis M.J. Kelly Company Swett & Crawford Westrope Westrope General Agency Worldwide Facilities, Inc.
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 913-663-5500 417-886-3535 636-524-0080 417-883-2688 314-821-2699 816-842-8222 816-246-1200 314-436-3318
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 800-255-6503 800-255-6503 800-255-6503 800-725-7211 800-788-4347
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 888-216-2014 Fax 417-886-2295 Fax 636-524-0088 Fax 800-678-7211 Fax 314-822-2135 Fax 816-842-3081 Fax 816-246-1290 Fax 314-436-4309
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.medjames.com www.medjames.com www.medjames.com www.mjkelly.com www.swett.com www.westrope.com www.westrope.com www.wwfi.com
Association of Missouri
P. O. Box 1496 • Jefferson City, MO 65102 (573) 635-0736 november-december 2012
companypartnernews Hartford to sell retirement business The Hartford announced that it has signed a definitive agreement to sell its Retirement Plans business to Massachusetts Mutual Life Insurance Co. for a cash ceding commission of $400 million, subject to adjustment at closing. The sale, which is structured as a reinsurance transaction, is expected to close by the end of the year.
Cameron names new VP The Cameron Mutual Insurance Co. board of directors announced the appointment of Phil Barnard to vice president of information systems. Barnard has served in the capacity of manager of the department since August 2011.
FirstComp rebranded Markel and FirstComp have announced a new brand, Markel FirstComp, and a new independent agent portal. Markel acquired FirstComp in October 2010, and it will now be known as Markel FirstComp. The rebranding effort is part of the unveiling of the newly enhanced FirstQuote rating portal for independent agents.
Progressive earns IIABA award Progressive was presented with the IIABA’s prestigious Best Practices Award of Excellence, which recognizes companies that have made imaginative, outstanding and unique contributions in advocating Best Practices philosophies to enhance the independent agency system.
Partners net tech awards Accident Fund, ACUITY, Auto-Owners Insurance Co., CNA, Fireman’s Fund, Progressive, Secura Insurance, Selective Insurance Com-
pany of America, State Auto, United Fire Group, and West Bend Mutual Insurance Co. each received the 2012 Interface Partnership Award from Applied Systems, which recognizes accomplishments in agency interface over the past year, including download, real-time inquiry and realtime policy rating. Allied Insurance, EMC Insurance Co., Grinnell Mutual Reinsurance Co., Travelers and The Hartford received the Interface Leadership Award from Applied Systems in recognition of their leadership in the advancement and innovation of company interface. ACUITY, Aetna, Employers, FCCI, Grinnell Mutual Reinsurance Group and Progressive have been named to InformationWeek magazine’s “InformationWeek 500,” which recognizes the country’s most innovative users of business technology.
Amerisure celebrates 100 years Amerisure Mutual Insurance Co. celebrated its 100th anniversary Sept. 12, 2012. The company was founded in 1912 as the Michigan Workmen’s Compensation Mutual Insurance Co. It now has more than 670 employees and 11 Core Service Centers throughout the United States.
Grozdanich honored in KC Patti Grozdanich, Kansas City, vice president of network management for United Healthcare, was honored as one of the Kansas City Business Journal’s “Women Who Mean Business.” Grozdanich oversees United Healthcare’s network of contracted healthcare providers in Kansas, Northwest Missouri, Nebraska and Western Iowa. She also participates in the health plan leadership team.
Classified Ads The basic classified ad contains a maximum of 35 words (including head). Cost: $27.00 for up to 35 words. Blind ads: $41.00 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 firstname.lastname@example.org. Ads will be invoiced. Deadline for classified ads: first of month preceding publication.
Weâ€™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 ÂŠ Copyright Employers Mutual Casualty Company 2011 All rights reserved
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.
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
Electric Insurance SECURA Insurance Selective Insurance Co. of America
Foremost Insurance Continental Western Group CNA
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