MoAgentMayJun24

3315 Emerald Lane, Jefferson City, Mo. 65109

Phone: 573-893-4301 • Fax: 573-893-3708

Email: maia@moagent.org Internet: www.moagent.org

Publisher Matt Barton

Advertising Coordinator Sherri Mistretta

Officers of MAIA

President Darin Banner, CIC, Bolivar

President-Elect Dennis Luebbering, LUTCF, Jeff. City

Vice President Matt Speight, AIC, AIP, Montgomery City

Secretary-Treasurer Deena James, CIC, Manchester

IIABA National Director Brad Greer, Creve Ceour

PIA National Director Randy Smart, Marionville

Imm. Past President Cansada Stark, CISR, CLCS, Rolla

Board of Directors

Region 1 Ross Ingersoll, CIC, Savannah

Region 2 Clare Zanger, PPACA, CCHC, Hannibal

Region 3 Holly Stark, Harrisonville

Region 4 Mark Baker, Platte City

Region 5 Rick Prather, Jefferson City

Region 6 Tony Becker, CIC, CRM , Crystal City

Region 7 Paul Carcagno, Arnold

Region 8 Heath Greer, Creve Coeur

Region 9 Parker Mills, CIC, Clinton

Region 10 Richard Ollis, Springfield

Region 11 David Hall, West Plains

Region 12 Jeremy Anderson, Sikeston

At-Large #1 Andy Reavis, Billings

At-Large #2 Nick Brenizer, AIP, RWCS , Osage Beach

At-Large #3 Jim Neuner, LUTCF, HIA, CBWA, Jefferson City

Co. Rep. Dave Barrett, CPCU, CIC, Liberal

MAIA Staff

Chief Executive Officer Matt Barton

Chief Operating Officer Sheryl Van Leer

Director of Insurance Services Theresa Flippin, AIP, CISR

Director of Education & Events April Underwood

Database Administrator Laura Berendzen

Accounting Specialist Paula Wolken

Customer Service Representative Hannah Wall

Customer Service Representative Sarah Wright

Marketing Coordinator Sherri Mistretta

Marketing Coordinator Lauryn Caldwell

`Administrative Assitant Leslie Powell

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. and additional mailing offices.

MAIA does not necessarily endorse any of the companies advertising in this publication. Additional subscriptions are $30 per year.

Address & Other Changes

Notify Missouri Agent if you change your address, change your agency name, or drop or change producers (who are voting members of the association). Write to: Missouri Agent, 3315 Emerald Lane, Jefferson City, Mo. 65109 or email: maia@moagent.org.

POSTMASTER: Send address changes to Missouri Agent, 3315 Emerald Lane, Jefferson City, Mo. 65109.

d fromthepresident

MAIA is a resource for you and your clients

uring my involvement in MAIA, I’ve come to realize that many of our members are unaware of the products, services and benefits offered by MAIA as a resource to them. “The Missouri Association of Insurance Agents (MAIA) educates, informs, promotes, and advocates for independent agents and their clients, encourages networking and high standards, and works to perpetuate the independent agency system.” It seems most members are aware of the advocacy and networking portion of the mission statement, but there’s so much more in the statement that I would like to highlight.

Education and training:

MAIA provides education opportunities to obtain several designations, including Certified Insurance Counselor (CIC), Certified Insurance Service Representative (CISR) and Associate in Insurance Account Management (AIAM). They also provide E&O seminars to help your agency staff prevent claims and also earn credits on your E&O insurance coverage, Risk Specialist Series classes that offer an advanced look into various coverages and a wide range of webinar classes.

MAIA offers new hire and upskill training as well through MyAgencyCampus; these courses can help train those new to the industry, and provide additional training for veterans in areas such as leadership, communication, negotiation and more. These opportunities are designed to keep insurance professionals updated on industry trends, regulations and best practices.

Products and services:

Most agencies are probably aware that MAIA provides professional liability (errors & omissions) insurance for your agency, but may not be aware that they also offer a Beazley cyber liability policy to members that provides excellent coverage at low rates, as well as employment practices liability (EPLI) and agency umbrella/excess insurance.

There are also products available for your clients, like stand-alone personal umbrella and home business policies through RLI. PIA members have access to write flood insurance and earn higher commissions through The Hartford, and all

members have access to Selective flood insurance. As a member of MAIA, you also have access to the Independent Insurance Agents & Brokers of America, Inc. (IIABA), also known as the Big “I". IIABA is “a national trade association that strives to provide independent insurance agents and brokers with a sustainable competitive advantage in the insurance marketplace by equipping members with tools and resources, and advocacy and support, to maintain excellence in business and customer service.” Their website, https:// www.independentagent.com, is full of additional products and services, including:

• Hard Market Toolkit – Provides strategies and advice for surviving the current market.

• Virtual University – Includes a wealth of articles, white papers and webinars on a variety of insurance topics.

• Ask An Expert service – Allows you to ask questions and get responses from a panel of experts.

• Agents Council for Technology – Provides information on disaster planning, cyber security, customer experience and other emerging trends to help your agency.

• Agency-company contract review – The reviews of over 100 agency-company contracts are provided, as well as guidance on what to look for when reviewing contracts for your agency.

• 401(k) program – Access to a high quality 401(k) program and other retirement solutions.

MAIA members are also members of Trusted Choice, which is the brand of independent insurance agents. Trusted Choice offers a host of benefits, including:

• Marketing Reimbursement Program – Agencies are eligible for up to a $1,000 reimbursement per year for co-branded marketing and certain digital improvements.

• TrustedChoice.com – Agencies can show as a recommended agency on TrustedChoice.com by completing their free Member Plus profile.

continued on page 36

Darin Banner, CIC president, MAIA

celebrating125years

"Stock" agents and "mutual" agents

The article below appeared in the 100th anniversary edition of the Missouri Agent magazine in 1999. Our previous issue of the Missouri Agent discussed the various names the Missouri Association of Insurance Agents has had, and below is evidence of some of the name changes of the two national associations; for instance, you may notice what in 1999 was the Independent Insurance Agents of America (IIAA) is now the Independent Insurance Agents and Brokers of America (IIABA).

Today, both the IIABA and National Association of Professional Insurance Agents (PIA) advocate for independent insurance agents and provide many of the same types of services to their members. In Missouri, the two local associations merged in 1992, eliminating any duplicative effort on the state level and allowing agencies who wanted to be a member of both national associations to join just one state association.

or many years, there were two types of agents: agents who represented “stock” insurance companies, and agents who represented “mutual” insurance companies.

fAlthough the distinction is not important today, it was a highly-charged issue for many years.

Until the mid-20th century, the National Association of Insurance Agents (as the Independent Insurance Agents of America was then known) did not allow agents representing mutual insurance companies to be members. This provision gave rise to the formation in 1931 of the National Association of Mutual Insurance Agents, now the PIA. But why was the distinction between “stock” agents and “mutual” agents so important?

Nick Matthews, former vice president of PIA’s Communications Division, attributes the stock vs. mutual agents battle to the stock insurance companies. “In the good old days stock companies waged a relentless war

against mutual insurance companies because they claimed mutual insurance violated the great American principle of free enterprise.”

He explained: “In a stock company, the stock is owned by the public. In a mutual company, the people who buy policies in that company own the company and what they pay for insurance rises and falls with the fortunes of the company.”

“Stock companies thought it was very unAmerican not to be able to buy stock in a company so there was a battle waged putting down mutual insurance. Any insurance agent who came along – primarily after WWII – who got in the business by representing mutual companies, was really black-balled by the stock companies. Stock companies simply wouldn’t allow an agent who represented a mutual company to represent them.”

Matthews explained that mutual companies originally sold farm insurance, grain dealers and the like – no personal lines. But little by little the barriers were lowered because mutual companies got stronger and started selling more than just farm insurance. “They became more attractive and eventually stock companies started appointing mutual agents because they had access to a lot of business that stock agents didn’t, and vice versa. And mutual companies started appointing stock agents as well,” he said.

The situation started to break down by the late ‘60s. “At PIA’s 1965 national convention, someone from the stock agents association came to our national convention and asked us to cooperate on some piece of legislation,” Matthews recalls. “It was a landmark occasion because at no time before then had the National Association of Insurance Agents (now IIAA) acknowledged that mutual agents even existed.”

What finally broke down the barriers, according to Matthews, was the fear of discrimination and anti-trust lawsuits. “They faced up to the possibility that if they didn’t open their membership, they would be facing some hefty legal battles.”

Sheryl Van Leer chief operating officer, MAIA

my

turn

If you complain about the problem, you have to be part of the solution

i've lamented too many times to count of my frustration that more members do not take a more active role in the political advocacy that the association provides. To be candid, whether at the state level or the federal level, it’s one of the most successful and beneficial areas of the association. Further, it benefits you probably more than you realize. Now, to be sure, the vast majority of that advocacy that the association provides benefits agents whether they are members of MAIA or not; it also usually benefits direct writer agents as well (I can’t control that last part, but believe me, if I could, I would limit the benefit to only independent agents). Many of the statutory provisions that benefit you and/or your clients find their genesis in the work that our local association and national associations do in meeting with legislative and Congressional leaders. While I always invite you to get involved at the state level, including by attending MAIA’s annual Day at the Capitol in March or by reaching out to your respective legislators on your own, you also have a tremendous opportunity to advocate at the federal level as well. Each year a delegation of MAIA members travels to Washington, D.C. to meet with members of Congress to discuss issues that are of incredible importance to independent agents or their clients. What makes this opportunity even better is that MAIA provides the bulk of expenses for members to do this! That’s right – MAIA makes available on a limited basis reimbursement for the expenses members incur during their travel and stay in

our nation’s capital.

" While I always invite you to get involved at the state level, including by attending MAIA’s annual Day at the Capitol in March or by reaching out to your respective legislators on your own, you also have a tremendous opportunity to advocate at the federal level as well ."

Matt Barton

During the IIABA Legislative Conference, I lead MAIA members in navigating Capitol Hill and meeting with members of the U.S. Senate and House of Representatives. Don’t worry – you will know what to discuss, as we brief you on the issues you should chat about with your members of Congress. Whether it’s permanency of the 20% tax deduction for pass-through income, long-term extension of the National Flood Insurance Program or protecting agent commissions in the sale of crop insurance, these are issues that independent agents can get on board with. Candidly, I will tell you that I am somewhat disappointed that we did not have more MAIA members attend this year. I mean, these issues are important, MAIA reimburses you and the occasional trip to Washington, D.C. is rarely a bad experience. So, allow this to serve as my strong urging (read: shaming) for you to attend the legislative conference next year, the year after, whenever. Just attend! Whether you plan to attend next year or not, contact me now to discuss the opportunity, and I can almost promise you that I will convince you to attend. Don’t be one of those people – you know, the ones who complain about Congress but aren’t willing to actually put action where their mouths are.

continued on page 37

Matt Barton chief executive officer, MAIA

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thelegalside

Potpourri of issues

ccasionally in this article I like to review a variety of the issues that have been raised by various agencies in their contacts with our office. Some of these issues have been the subject of prior articles in this space which would offer more explanations of the potential actions an agency should take. This article will not give that level of detail but is meant to raise the matters an agency should consider in looking for the best path of activity. With that caveat, the following represent some issues that have been raised recently.

o"

Valuation of an agency for sale or purchase:

In my youth, long ago, most agencies for sale or agencies looking to make a purchase generally tried to set a price for an agency based on a multiple of the total commissions the agency earned in the past year. Those days are mostly past. While a multiple may still be a rough yardstick for the value of an agency, today purchasers are likely to consider many more factors after reviewing the business an agency writes. Generally, a solid personal lines business is valued highly, and a book of small commercial business is as well. But larger accounts are reviewed more closely for the likelihood of renewal and any factor indicating some potential difficulty in retaining that account will result in discounting the value of the agency by that amount of commission. The same factors apply to surplus and excess lines because of their volatility. In addition, many advanced purchasers may look at the expenses of production, including commission rates of producers and office costs, to determine the profitability potential of the agency, which may make their valuation based more on a factor of profits. So ultimately, an agency today should not expect only one method of valuation to be used in valuing an agency. In

some cases, it may be wise to consult with one of the entities offering to value an agency for a fee, but at any rate, an agency needs to consider many factors in determining valuation.

Settlement of claims against the agency:

Agencies, like all of us, are not perfect, so there is always a possibility of an error in managing a customer’s account. Thankfully, most are small errors like misquoting premium, or errors in covering small items, that when raised by the customer, present a legitimate claim by the customer for liability by the agency."

Lew Melahn

Agencies, like all of us, are not perfect, so there is always a possibility of an error in managing a customer’s account. Thankfully, most are small errors like misquoting premium, or errors in covering small items, that when raised by the customer, present a legitimate claim by the customer for liability by the agency. Because these claims are less than the agency’s E&O deductible the agency is looking for a way to resolve the issue in a way that satisfies the customer. Some agencies have worried if payments to customers in such cases are considered rebating, but settlement of a legitimate claim of liability by the customer does not meet the definition of rebating as the purpose is settlement of a claim, not an unwarranted inducement to purchase coverage. However, such settlements should be confirmed in writing by a release from the customer. It may be uncomfortable to ask the customer to sign one, but it is best to confirm the purpose of the payment and to release the agency and its insurer from any further liability.

Protection of agency information and customers:

A frequent question is how an agency can protect its confidential information and customer lists when employees and/or producers leave the agency. There are multiple issues to consider and legal advice is advisable. First, all employees should understand and acknowledge that agency information is confidential and should

Lewis E. Melahn, J.D.

Lewis E. Melahn is a practicing attorney who 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 573-230-7200.

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Prosper.

When you know you have the right agency E&O protection, you can focus on growing your most important asset–your business.

Big “I” Professional Liability and Swiss Re Corporate Solutions are jointly committed to providing Big “I” members with leading edge agency E&O products and services. IIABA endorses Swiss Re Corporate Solutions’ comprehensive professional liability program.

technicalities

All eyes on Missouri, but we do not want this spotlight

there’s a new catchphrase synonymous with Missouri: severe convective storm state. Severe convective storms cause the most common and most damaging catastrophes in the United States. These include torrential rains, lightning, hail, straight-line winds and tornados. This is the stuff that causes the insurance companies to open their eyes and take a second look at Missouri. Clearly, insurance pricing is going up across the nation. Let’s narrow down what is causing our Missouri price increases, policy nonrenewals, insurance company withdrawals from Missouri and insolvency. We can start with some brief global fun facts, then United States statistics, followed by how this hits home in Missouri.

Globally:

In 2023, insured losses by natural disasters hit $100 billion for the sixth consecutive year and severe convective storms contributed $60 billion. An astonishing 29 natural disaster losses breached $1 billion.

United States:

"Beyond

the catastrophic

weather, we would be remiss not to mention the

exaggerated claim costs

and their impact on the

availability and cost of insurance. Over the last five years, the United States average single-family reconstruction cost increased 38.5% as reported by CoreLogic."

According to Gallagher Re, 74% of those natural disaster losses were in the United States due to its geographical positioning being prone to weather events. In 2023, the number of single and multifamily residential properties hit by one inch or more hail amplified when it fell on more than 10 million homes. Further, severe thunderstorm risk has evolved with increases of hailstones two inches or greater in the Northeast and Midwest, as well as statistically significant increases in tornados from 1950 to 2018 in most states, per Verisk.

Missouri:

Who knew Missouri made the TOP FIVE? Unfortunately, it’s in the top five states with major hail events of hailstones one inch in

diameter or greater, according to the U.S. Department of Commerce’s Storm Prediction Center and National Weather Service. In addition, from 1980-2024, there have been 110 confirmed weather losses exceeding $1 billion per the National Centers for Environmental Information. The Missouri disasters include 15 drought events, nine floods, two freezes, 75 severe storm events, one tropical cyclone event and eight winter storm disasters, all exceeding $1 billion. So, what has changed? The 1980-2023 average was 2.5 events annually, yet from 2019-2023, we averaged seven of these events each year, as reported by the National Oceanic and Atmospheric Administration (NOAA). And Missouri can also claim first place with our New Madrid fault line, which is seen as the highest level of hazard risk by the United States Geological Survey. They predict a 25% to 40% chance of the fault producing a magnitude 6.0 or higher earthquake in the next 50 years.

Not the spotlight of choice.

Now what? Insurance companies are tagging Missouri as a “CAT” state (catastrophic loss).

The March 2024 “gorilla” hail did not help our reputation. Rates are up all over the U.S., but no doubt yet another stain on Missouri will flag us as an unprofitable state. On April 1, 2024, the Insurance Journal reported, “U.S. home insurance rates are expected to reach a record high this year, with the biggest increases occurring in states prone to severe weather events, according to a new analysis.” Uncertainty can cause insurers to take pricing hikes, or even pull out of troubled states. One of the main causes for the uncertainty is that modeling technology for severe convective storms is not fully developed. Beyond the catastrophic weather, we would be remiss not to mention the exaggerated claim costs and their impact on the availability and cost of insurance. Over the last five years, the United States average single-family reconstruction cost

continued on page 38

Karen O'Connor Corrigan, CIC, CIRMS

MAIA coverage advisory committee, O'Connor Insurance Agency

If you encounter any issues with policy forms, coverage gaps or problematic language, please report them to MAIA’s Coverage Advisory Committee so they can work on getting them corrected through their discussions with ISO, NCCI and ACORD.

Karen O'Connor Corrigan, CIC, CIRMS

errors omissions&

Is staff training one of your top issues?

if it isn't, it should be. Fast forward your agency five years and ask yourself how many of your current staff will have retired. How many positions will you need to fill? For many agencies, this is a significant number. Every day, it seems that agencies are struggling to find "tomorrow's staff." When you find them, how will your agency train them to handle their respective responsibilities and duties?

Due to the challenges of finding staff with the desired insurance experience, there has been a shift in the approach. Many agencies are now focusing on hiring individuals with the proper skill set and then teaching them insurance. This may appear to be a significant undertaking, but with a solid focus on training, agencies using this approach are having tremendous success.

Many agencies look to handle training by having staff members perform some training in addition to all of their other responsibilities. This clearly has its drawbacks and has often resulted in a less-than-thorough outcome. The best approach is to have a dedicated person that "owns" the issue. This should result in a more comprehensive approach to staff training.

It would be worthwhile for agencies to evaluate the technical knowledge of their sales staff. Some have done this using either a test or a mock sales presentation where the staff are asked coverage questions. This approach should determine what coverages the staff needs additional training on. The training could then be done via a number of approaches:

"Let's not presume that today's employees have received all of the training they need."

Curtis

M. Pearsall CPCU, AIAF, CPIA

In addition, let's not presume that today's employees have received all of the training they need. In some cases, the scenario "here's your desk, these are your files, any questions?" may be more the norm than the exception. Most employees would welcome the opportunity to receive additional training.

Training definitely covers a lot of areas including, but not limited to, technical knowledge, sales training, customer service, automation and the proper use of the agency systems. While all of these are important, let's focus on technical proficiency.

Over the years, exposure analysis coupled with product knowledge has ranked No. 1 among the most common cause of E&O claims. It is important to realize that agency staff can be held liable for what they say and what they put in writing. Therefore, if they were to provide a client with incorrect information and the client suffers an uninsured loss due to this incorrect information, the agency could find themselves facing an E&O matter. Factor in how many times clients are asking your agency staff questions on coverages, and this correlates to a significant issue for most agencies.

Ensuring that your sales staff are knowledgeable on the products they are selling is obviously important. A number of years ago, a study revealed that cyber insurance was not being properly discussed with clients. The general feeling was that producers were not addressing cyber coverage was because they didn't fully understand it and were hesitant to bring up the issue for fear of being asked questions they did not know the answer to.

•A classroom environment where a specific type of coverage/ type of business is discussed and the exposures dissected. Use of an agency "expert" is one approach. Another option is look to carriers/ wholesalers for this training;

•Your state agents' association. Many have education departments that hold training sessions on various topics;

• Industry training organizations; or

• Exposure analysis software products available in the industry.

Many agencies have found success through establishing divisions based on specific industries such as real estate, construction, not-for-profit, etc. This type of structure results in a staff that's totally knowledgeable on the issues of those industries as well as the coverage needs of those clients.

Another approach is to focus on specific lines of business such as D&O, EPL, E&O, cyber, etc. These coverages are more complex. They are often on a claims-made basis which, when not properly handled, cause a fair amount of E&O claims.

Various prognosticators are stating that the need to educate clients is going to grow in importance. To ensure clients are properly educated requires staff who are knowledgeable in the subject matter. Bottom line, staff training could very well be the key to determining the future success of your agency. It should also greatly minimize the potential for your agency to face an E&O claim.

Curtis M. Pearsall, CPCU, AIAF, CPIA president, Pearsall Associates, Inc. and consultant to the Utica National E&O program

Your voice in Washington, D.C.

the annual Big “I" Legislative Conference took place April 10-12 in Washington, D.C. During the conference, independent insurance agents and brokers from across the country shared their perspectives with legislators on issues important to the independent agency system.

This year's conference focused on issues that have the potential to have a real impact on every agency's bottom line. Here are four issues that we focused on at this year's conference:

1) Oppose tax increases on Main Street America. The Big “I" supports the Main Street Tax Certainty Act, which would make permanent the 20% small business deduction— Section 199A of the U.S. tax code—that was passed as part of the 2017 Tax Cuts and Jobs Act. The deduction, which is scheduled to expire at the end of 2025, is heavily relied upon by many Big “I" members to keep their agencies operating, meet payroll and better serve consumers and their communities. Pass-through entities have factored this deduction into their operations and its expiration would result in a tax increase for many small businesses.

2) Address the insurance market crisis by cracking down on lawsuit abuse and encouraging risk mitigation.

The property and casualty insurance market is cyclical and fluctuates between hard and soft markets. However, insurance is currently amid an unprecedented property insurance crisis.

The pressure is particularly challenging for independent agents as they attempt to secure coverage for their clients and explain significant rate fluctuations while keeping their own businesses operational. Congress can do several things to help alleviate pressure on the insurance market, including taking action to reduce lawsuit abuse and promote risk mitigation.

Abuse of the legal system is a significant problem and adds considerable costs to the insurance industry that are then passed along in the prices that consumers pay. An especially troubling trend is the unchecked way foreign entities and governments are financing and

subsidizing litigation in American courts. To address the problems posed by foreign interference, the Big “I" supports the Protecting Our Courts from Foreign Manipulation Act.

This bill would require disclosure from any foreign person or entity participating in civil litigation as a third-party litigation funder in U.S. federal courts and would prohibit sovereign wealth funds and foreign governments from participating in litigation financing.

Also, catastrophic natural disasters are increasing in frequency and severity at an alarming rate and efforts to mitigate risks and reduce exposure to these events are not keeping pace. Risk mitigation makes homes more resilient, protects families from natural disasters and reduces the post-event costs that would otherwise be borne by taxpayers.

According to the Federal Emergency Management Agency (FEMA), every dollar spent on preventative mitigation measures saves approximately $6 in future losses. State governments are increasingly establishing mitigation grant programs that enable homeowners to prepare in advance for earthquakes, windstorms and wildfires, but these grants are currently subject to federal taxation.

The Big “I" supports the Disaster Mitigation and Tax Parity Act of 2023, which would eliminate this federal taxation and encourage the implementation of much-needed mitigation measures.

3) Protect the Federal Crop Insurance Program (FCIP)

As Congress negotiates a new five-year Farm Bill it is critical to support policies that strengthen the stability and effectiveness of the FCIP. Crop insurance is an important risk management tool that helps farmers navigate the challenges posed by weather, supply chain disruptions and uncertain markets. The Big “I" supports a strong and robust FCIP that provides certainty for farmers and communities and is strongly opposed to any legislative or regulatory efforts to reduce FCIP funding in the new Farm Bill or otherwise weaken the efficient and effective private sector delivery of crop insurance.

continued on page 37

Molly Abboud director of political affairs for the Independent Insurance Agents & Brokers of America

fromtheDCI

Missouri DCI takes on earthquake education

on March 21, hundreds of attendees from multiple states gathered in Cape Girardeau, Missouri, to learn about earthquakes in the Midwest. They explored the risk, preparedness strategies and recovery planning, and heard sessions focused on the latest geology, transportation technologies, hospital and health services response, communications strategies and more.

The event, sponsored by the Missouri State Emergency Management Agency and partners, has grown significantly since the Earthquake Summit began in 2019.

still a significant reason respondents provided for not purchasing.

Scan to take the survey!

Dr. Brenda Rourke, communication research scientist from the National Association of Insurance Commissioners (NAIC), and Lori Croy, communications director from the Missouri Department of Commerce and Insurance (DCI), updated the audience about their ongoing earthquake insurance consumer research study.

The most recent information from the survey indicates that the cost of insurance uptake matters, as expected. Still, the role of insurance agents, having sufficient information, and talking with friends and family is also a significant part of the education and preparedness process.

Earthquake insurance coverage confusion persists, with 35% of homeowners still reporting they did not know that the typical homeowners insurance policy does not cover earthquakes.

For those who DID NOT purchase earthquake insurance, not knowing it is a separate coverage is

Each year, DCI runs an earthquake education and awareness campaign to bring information about earthquake risk and insurance to Missourians in the highest-risk areas of the state. The 2024 campaign will also include other states in the New Madrid region for the first time. The survey findings help DCI refine the messages for the campaign to help consumers learn about information they may not know about or still find confusing. As a part of the Earthquake Summit, the audience of emergency management professionals and earthquake experts participated in the research by responding to the proposed messaging for the 2024 earthquake education and awareness campaign. They also were allowed to take part in a focus group conducted on-site.

The researchers would like to offer MAIA members the opportunity to participate in the communications study. According to consumers, your role is vital to a consumer’s understanding of insurance. As we develop the messages for the upcoming earthquake education and awareness campaign, we invite you to use this QR code to access a survey providing your feedback. Thank you in advance for your help educating Missourians about earthquakes and preparedness!

director of communications, Mo. Department of Commerce & Insurance

Dr. Brenda Rourke communication research scientist, National Association of Insurance Commissioners, Center for Insurance Policy and Research

Lori Croy, APR

member a interest Is it time to review your 401(k)?

re you confident that you are meeting all the fiduciary responsibilities with your current 401(k) plan? Do you find meeting those fiduciary duties takes up valuable time that could be better spent on your clients? Or are you thinking about adding a 401(k) plan for your employees, but need guidance?

The Big “I” MEP 401(k) Plan is a great way to offer a valuable benefit to your employees at a reasonable cost to your agency. In today’s competitive job market, it is essential to offer not only a competitive salary, but also an attractive benefits package, and a 401(k) is an important piece of that. The plan offered to Big “I” members is a multiple employer plan (MEP), which is a great way to lower your overall retirement plan costs while receiving consulting, helpful educational tools and low-cost investment options. Big “I" Retirement Services, LLC has partnered with national firms to provide a unique member-only plan that simplifies plan sponsors’ administrative responsibilities while limiting an agency’s fiduciary exposure.

In today’s retirement plan environment, 401(k) plan sponsors have a long list of fiduciary responsibilities, and must periodically review their plan to ensure changes don’t need to be made in the best interests of the participants. Penalties for breaching these fiduciary duties can be stiff.

If your agency is like most other agencies today, you are understaffed and overworked trying to keep up with servicing your clients in the current hard market, and taking time to review your 401(k) plan on a regular basis is probably not at the top of your priority list.

The MEP will perform many of those fiduciary duties for you, and will provide clear guidance to help you understand the agency’s duties and applicable deadlines.

If you think you can’t afford a 401(k) plan, you may be surprised. And if it attracts new talent or helps retain good employees, it will likely pay for itself many times over. The total plan expenses, which include investment, custodial, plan administration/recordkeeping and advisor fees are significantly below benchmark costs. Plan participants receive broad investment options, comprehensive online capabilities and great online resources.

For larger plans that currently require a costly audit each year, that cost will be eliminated with the MEP, as one audit is done for the entire plan.

If you have questions regarding either starting a 401(k) plan or moving your current plan, contact Christine Muñoz at christine. munoz@iiaba.net or 800-848-4401 for more information. The Big “I” also offers a SIMPLE IRA, and Christine can help you decide whether a SIMPLE IRA or a 401(k) is a better option for your agency.

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Fail better - thoughts on fearlessness

I was groomed for a life in insurance from a very young age. My uncle was David Schoenfeld, who was a multi-year member of the Million Dollar Round Table for the New York Life Insurance Company. And when I say “multi-year,” it was many, many, many multis. The guy was a machine. He lived and breathed insurance.

I once went to a Mets game with him when I was 14 or so, and without having any prospects at the game, Uncle Dave sold a policy to the guy in the row ahead of us by the seventh inning. This, having never met the guy before. I watched it happen in awe. My uncle was fearless. He would talk to anyone and they liked him immediately and wanted to give him their money. He could have talked to your cat and sold it an insurance policy.

He and his newly insured client worked out a time the next morning to meet in person to seal the deal at the office. Then, before the next inning started, my uncle stood up and told me it was time to leave the game, before it was even over! For him, the outcome of the game didn’t matter. He’d accomplished a personal goal that I didn’t remember appearing in the official Major League Baseball rulebook.

Rule 37-c, subsection 2, clause xviii: The game shall end the moment any insurance agent signs a policy in the 300 level seats before the end of the seventh inning.

Like I said: He was fearless. I remember asking him how he did it. How the local barber was a client. And the entire school board. And the garbage man. How did he get so many people to connect with him and buy policies from him? I argued that life insurance isn’t the happiest thing on people’s minds 24/7. If he had been selling pizzas or freshly baked cookies, I could get why people loved him and wanted to give him their money. But life insurance? Who, I thought, wakes up thinking, “Ahhh…I will die. Let’s make sure my grieving family has money from my demise so that they can buy pizzas and cookies”?

He told me that it wasn’t about what he was selling but rather the approach he took to make the sale. He told me that he had a fourstep process which he used with every client interaction if they happened to raise objections:

1. Listen and agree.

2. Answer briefly.

3. Show them something new.

4. Close the deal.

When he started a meeting, if the client objected (“I can’t afford it” or “I need to talk

to my wife/husband first”) he would listen and agree that he understood that this was a concern. Then he would answer briefly (“I understand that money can be tight” or “If I don’t answer to my wife, I never hear the end of it!” etc.). Then he would show them something new (“What you’re buying is a new level of confidence for your family” or “Your wife/husband is the one we most care about here with this kind of planning”). Then he would close the deal and ask for a meeting or a signature on the proverbial dotted line.

If the client raised another objection, the cycle of four steps would start all over again. He said he would just keep doing it again and again until he signed the deal. Thus, making the Million Dollar Round Table dozens of times.

How does that apply to you and the work that you do? I will be discussing this in my keynote at MAC Summit, but it comes down to not being afraid to drop the ball. We are so conscious of perfection, especially amidst a social mediadriven world, that we often forget that the basics of determination and confidence are enough to get us through. We don’t need tricks and hype and flash to make sales. We just need to go into meetings with confidence and a plan.

When we connect and are confident about why what we are selling benefits the client or potential client, we position ourselves perfectly to make sales that matter, or deals that mean something to the client, not just to our bottom line.

I just finished a book called “Reclaim the Moment: 7 Strategies to Build a Better Now” (available as a pre-order now with a global release August 20) and in the book I talk about focus, and about making strides towards genuine connection with others as being fundamental to building the now and the future we want. The next book might just be called “Make Sales that Matter.” I like the ring of that.

Let’s commit to some core values: connection, confidence, communication and service. When we do, we will gain a confidence boost that will drive our sales and our interactions. Your goal: Sell a client a policy or an insurance platform by the end of the sixth inning at a major league baseball game.

Uncle Dave’s seventh inning deal is a high bar to beat, but if there’s anyone who can do it, I believe that you can. See you at MAC Summit 2024!

NEW BOOK: tinyurl.com/ reclaimthemoment FOR MORE ABOUT GREG: gregbennick.com

Greg Bennick

SUMMIT - JULY 16-19

MACSummitApp

Be sure to download MAC Summit’s event app (BigIEvents) from the App Store or Google Play Store then search in the app for “MAC Summit 2024” to stay up to date!

MAC Summit 2024 will be held at Chateau on the Lake in Branson, Mo.

MAIA has contracted room rates starting at $185/night. After June 17, 2024, the hotel will release all unreserved rooms.

DID YOU KNOW?

In 1981, the Annual Convention was to be held at the Hyatt Regency Hotel in Kansas City Aug. 9-11, but on July 17, two overhead walkways collapsed in the hotel, killing 114 and injuring 216. While this left staff scrambling to find a new location in a short period of time, it undoubtedly left many feeling relieved that they weren’t in the hotel when the disaster occurred.

Tuesday, July 16

SUMMIT - JULY 16-19

Young Agents Family Movie Night, 6 - 10 p.m.

The Young Agents Committee is hosting a family movie night. There will be yard games, food, drinks and a movie for the family to enjoy! Only for fully registered Young Agents and their families. (RSVP requested during registration; casual)

Wednesday, July 17

Optional Golf Tournament, 8 a.m. - 1 p.m.

Held at Ledgestone Country Club.

WEWIN Breakfast, 8 - 9 a.m.

Women Empowering Women in Insurance Breakfast, with Brandi Anderson, is dedicated to uplifting and empowering the women of the industry through shared experiences and tips. Open to all fully registered attendees.

Shuttle to/from Branson Landing, 11 a.m. - 3 p.m.

A complimentary shuttle will be running attendees to and from Branson Landing.

Welcome Reception, 3:30 - 4:30 p.m.

All attendees are invited to this reception. (casual)

Optional Cornhole Tournament, 4:30 - 6:30 p.m.

Held at The Chateau on the Lake and presented by the Young Agents Committee (includes beer).

Dinner on your own

Thursday, July 18

Breakfast Buffet, 7:30 - 8:30 a.m.

IIABA Activities & Initiatives, 8:30 - 9 a.m. Mike McBride

Join us before the keynote as Big “I” Chairman Mike McBride discusses the importance of IIABA and what they do for MAIA members.

Keynote: FAIL BETTER: Don’t Be Afraid to Drop the Ball! 9 - 10 a.m. Greg Bennick

Greg is fascinated by gravity as a metaphor: By dropping objects he learns constantly to FAIL BETTER. What do we learn about success from our failures? What do you learn about success from a path where the journey is filled with mistakes and failure? You learn focus and courage. Greg shows you the way.

Trade Show (with Mimosa Bar), 10 a.m. - 12:30 p.m.

Join us for one of the most anticipated company/vendor trade shows of the year. Company prize drawing at 12 p.m.; you must be present to win.

Lunch, 12:30 - 1:30 p.m.

Buffet lunch will be available at 12:30 p.m. in the Preconvene area outside the Great Hall.

Afternoon Education Sessions, 1:30 - 2:30 p.m.

Mastering Business Auto Symbols – Their Importance and How They ‘‘Work’’

The Insurance Services Office (ISO) Business Auto Coverage Form is an incredibly important risk finance tool for many of our clients. Agents MUST understand this policy’s coverage symbols and how they are essential to the process of ‘‘constructing’’ coverage.Samuel T. Bennett, CIC, AFIS, CPRM, CRIS, CPIA (Approvedfor1p-cCEcreditinMo.&Kan.)

Disaster Planning

What will you do when the worst happens? Join us for Disaster Planning, where attendees will go over some of the leading disasters we see in the insurance industry today. - Brandi Anderson, CIC, CPIA, EIS (Approvedfor1p-cCEcreditinMo.&Kan.)

Business Planning to Improve Your Agency Valuation

The first step in business planning is knowing where you are and identifying the risks in your business. During this session, agency owners will learn how to effectively business plan with the goal of improving their agency’s value. The session will identify the most important risk factors in an agency valuation and review the strategy to address each of these concerns to grow agency value. - Jodie Shaw, CLCS, CPIA, TRA (Approvedfor1generalCEcreditinMo.&Kan.)

Repeat Education Sessions, 2:30 - 3:30 p.m.

President’s Cocktail Reception, 6 - 7 p.m.

Join us in celebrating outgoing MAIA President Darin Banner by enjoying a cocktail and hors d’oeuvres. (semiformal)

Awards and Installation Banquet, 7 - 9 p.m. (semiformal)

Dueling Pianos, 9 - 11 p.m.

Join us after dinner as Fun Pianos entertains us with their exciting dueling pianos.

Friday, July 19

Eggs & Issues Breakfast: 8:30 - 10 a.m.

MAIA CEO Matt Barton and Missouri legislators This is your chance to get information right from the source. This Q&A session gives you access to MAIA CEO Matt Barton and a panel of Missouri legislators. They will address questions on regulatory and legislative issues affecting the insurance industry today. (Filed/Pendingfor1ethicsCEcreditinMo.&Kan.)

"Great conference as usual. Matt and the staff always do an excellent job. Keep up the good work."

"Overall, it was a good experience. The hotel is very nice and the food was exceptionally good this year."

"As a first-time attendee of the conference, I was very impressed and pleased with how everything was run. It was very beneficial."

"I thought this was a very good conference. The hotel is nice, and it certainly has all of the space that is needed."

SMALL AGENCY

agencymanagement

Vendor relationship red flags: what agents should avoid

erhaps you’ve seen the recent red flags trend online. It’s simple. People list their top three relationship red flags; some of them are funny, others are more serious. While these postings usually refer to peoples’ personal relationships, the exercise can be a good one for any type of relationship, including the ones agents have with technology vendors.

In the insurance industry, agent and vendor relationships are often complex. Agencies are seeking digital capabilities and need to partner with solution providers to acquire them. But there are a lot of options, and it seems as if new providers pop up every day.

The right vendor partnerships can take the agency operation to the next level. But the wrong vendor relationships are very detrimental, requiring workarounds, long learning curves and lack of use.

Finding the right vendor match can be a big task. The influx of solutions entering the market every day means that agencies have so many choices. And with pressing client workloads, they usually don’t have the time to research and demo them all.

Always check references and listen to your team about any concerns they have. Address questions with the vendor and listen to their answers. Look for those that are transparent about the solutions’ capabilities.

Red flag #2: resisting feedback.

Good vendors are open to all kinds of input and have systems for addressing comments and updating the solution accordingly. It should be a dialogue—one in which the tech vendor honestly explain what it can and can’t deliver.

"In the insurance industry, agent and vendor relationships are often complex. Agencies are seeking digital capabilities and need to partner with solution providers to acquire them. But there are a lot of options, and it seems as if new providers pop up every day."

We talked to a variety of agencies about their red flags and compiled the top five things to watch for here:

Red flag #1: exaggerating competence.

This may seem obvious. But some solutions are just too good to be true. Greg Aldridge, founder and president of Aldridge Insurance based in South Bend, Indiana, said, “Bold statements, like ‘we can solve all your problems,’ raise an alert for me. I have to wonder: Maybe the solution is trying to do too much and can’t deliver on its promises.”

Brent Sheppard

Red flag #3: locking agent into long-term contracts. Does the vendor have a trial period? Can you test the solution before committing? With software-as-aservice (SaaS) formats and subscription pricing becoming more common, it is easier than ever for vendors to allow customers to test a solution and pay as they go. Steve Holley, founder and owner of Holley Insurance in Rocky Mount, Virginia, shared, “Requiring longterm contracts is an immediate red flag for me. If your product is as good as you say, we will want to buy it. You won’t have to force us by locking us up in a contract.”

Red flag #4: no plan for postimplementation support.

A good vendor relationship doesn’t end with the onboarding call. There should be regular check-ins to make sure the solution is meeting your needs and to provide updates on any new features or improvements the provider is making.

continued on page 32

Brent Sheppard catalyit.com

Red flag #5: retention of ownership and easy access to data.

Some terms of service give the vendor ownership of customer information in the cloud and make it difficult or expensive for the agent to move that data to a new solution. Before signing a contract, make sure you completely understand the rights to your data and how it’s being used by the vendor.

A partnership that’s a win-win

Agents want a product that will deliver on its promises, isn’t too complex to use and will continue to evolve. Just as agents adapt for their customers, they expect the same from their service providers. Holley noted, “I want technical support in whatever form I prefer, whether that is phone, online chat or email.” And with AI and ChatGPT gaining more and more prominence, agents don’t want to be talking to bots when they have questions about a solution or need to get help. Aldridge noted, “I want my vendors to have a phone

number that connects me with a human that I can talk to and get answers. If I am trying to navigate an automated menu or chat assistant, I am spending a considerable amount of time to get an answer to a technical question. This is time that could be spent serving my clients.”

Being aware of vendor red flags can save agencies valuable time as they sort through the options. But knowing is only the first step; agents have to make sure the technology is solving real issues. Holley explained, “As basic as it sounds, I ask myself if the product that I am evaluating solves a problem that my agency has. There are a lot of great, elegant solutions available. It can be easy to get caught up in ‘shiny object syndrome’ where a product looks cool but ultimately it addresses an issue we don’t have. Often, just asking the question, ‘does this solve a problem that we have?’ helps me avoid mistakes.”

Missouri Insurance Solution.

Help! I'm 65 and want to sell my insurance agency

the highly anticipated day has finally come: You are getting ready to retire. After spending 40-plus years working in your insurance agency, you have made the difficult decision that it is time to sell the agency and step down.

Hopefully, you have been running your business over the years as if you were going to sell it tomorrow. If that’s the case, this article will likely touch on all the things you have already done to prepare for the sale of your agency. If that’s not the way you’ve been operating all these years, this article will be a roadmap of how you should prepare for what you are going to experience over the next two to three years.

There are four parts to the selling process at the age of 65: emotional, planning, financial and transition.

Emotional: In this first part of the process, the agency owner needs to make peace with selling something that they have invested their life’s work in. They need to become comfortable with no longer leading the agency and being the ultimate decision maker.

The owner should prepare for life after the agency. Leading an agency is much different than working in an agency with a two to three year commitment to support the transition. You will have more time to fill your day and you do not want to spend that time driving your spouse, kids, the new buyer and others crazy because you did not prepare for this transition.

This is likely the most challenging part of the selling process. So many successful owners are Type A personalities that are confident, entrepreneurial, controlling and independent. This makes for a great owner, but it means it’s a difficult process to prepare for. Many of those character traits are contrary to being an employee in a business you used to own for 40 years.

Get prepared mentally and emotionally for the transition from owner to supporter. If you are able to make this part of the process a success, it will make everything else so much smoother, help cement your legacy, and lead to a rich and rewarding experience after the sale.

Planning: Once you make the decision that you're going to sell, now you've got to plan to

make it happen. The average agency takes 240 days to sell. You are selling intangible assets – it takes time to prospect buyers, consider options, negotiate terms and complete the due diligence process and legal agreements.

In preparation for this part of the process, the first thing you need to do is get your financial house in order. We would strongly encourage you to complete an independent fair market valuation of your insurance agency for three reasons.

First, the act of getting an agency valuation requires you to gather all the data that you will need in the selling process. The due diligence process is extensive and can be exhausting if you have not assembled the necessary documentation on the agency’s financial performance.

Second, it will give you an independent fair market value of what your agency is worth. If you’re going to have to obtain and review data and documents for the sake of the sale, you would be doing yourself a favor to get a fair market valuation to know a number going into a sale. This will be a calculation of value based

continued on page 34

CAE chief executive officer at Ohio Insurance Agents Association and

IA Valuations

Jeff Smith, JD, CIC,

will determine what steps to take, but either way you must prepare to transition.

Someone just paid you a lot of money to purchase your insurance agency, and for that you owe them a commitment for a successful transition. You also owe your clients, legacy, staff and carrier relationships a commitment to a successful transition.

This will require you to be an active partner with the new buyer on transitioning the leadership responsibilities in the agency, identifying all the key account relationships that you have and beginning an extensive process to transition those relationships to the new buyer. Regardless of how you feel about some of the decisions they are making, it’s in their hands now. They paid you good money for the business, which is going to help support your retirement; now you owe them a sincere effort to transition as much of the business as possible to the new agency.

The agency owner has to learn to be comfortable with decisions that the buyer makes that they don’t agree with. They have to be supportive of any of those decisions regardless of how they feel about them. This includes

Take Your Agency to New Heights

The Iroquois Group specializes in helping strong, professional agencies increase their revenue, profits and agency value. For 47 years, we have been helping agencies grow without sacrificing their independence. Gain a competitive edge with Iroquois.

staffing decisions, agency name, location, carrier relationships and clients that they serve.

As the owner and likely lead producer, much of the success of the transition relies on your willingness and ability to be an active partner in transitioning the accounts. You can provide your opinion but know that the decisions now rest with the new owners, and you must support them and whatever decisions they make. The vetting and second guessing are over now; you've got to be 100% committed to making the transition successful.

In conclusion, selling your agency at 65 is a significant undertaking. You have less time to maximize the value and transition the agency than you would have had you started at 58. This means you must be hyper-focused and committed to getting it done in a timely and efficient manner. Any delay in the transition will only erode value, alter your retirement plans and require you to be more engaged for a longer period of time.

If you find yourself in this situation, we encourage you to reach out to IA Valuations CEO, Jeff Smith, JD, CIC, CAE at jeff@iavaluations.com to help you prepare for this process.

About IA Valuations and Agency Link – Founded in 2017, the IA Valuations team has performed over 250 valuations to independent insurance agencies across the U.S. Our advisors have 25+ years of experience guiding agency owners on maximizing their agency value, planning, and legal needs for ownership transition. In addition, IA Valuations has provided perpetuation planning, financial modeling and business planning for independent insurance agencies. Finally, IA Valuations has advised dozens of agency owners on selling their agencies through our Agency Link process. Agency Link is a platform that connects buyers and sellers together to further the growth and strength of the IA system. To learn more about IA Valuations, please visit IAValuations.com or contact@ iavaluations.com.

The information provided is general in nature and shall not be construed as personal legal, tax or financial advice for your situation. Please email contact@iavaluations.com to discuss your personal situation.

• Choose your own markets, resources and strategies to grow your business how you want.

• We reward growth and profitability at levels you could not achieve on your own.

• Our team of experts is committed to helping you achieve your goals.

• You won’t pay initiation fees or monthly dues.

Josh Crocker Regional Manager | KS,

MO

jcrocker@iroquoisgroup.com (573) 970-0400 roquoisGroup.com

fromthepresident

• Marketing materials – Access print and digital ads you can use for your agency, as well as a social media calendar with pre-made graphics.

• Digital review – Receive a free analysis of your website and social media channels with recommendations for improvements.

MAIA also offers access to other valuable products and services, including:

• ACORD forms – Members receive a free end user license (EUL) to access ACORD forms through their agency management system.

• Free legal service – Members are eligible for 15 minutes of free legal consultation per quarter with attorney Lew Melahn.

• IA Valuations – Members have access to this organization that prepares valuations exclusively for independent agency owners.

continued from page 5

MAIA strives to be a resource for you by providing the items mentioned above as well as many other items, so please go to https://www. moagent.org for additional information.

Workers’ Compensation

We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim.

Upfront loss control measures

Responsive claims handling

Facilitation of quality medical care

(when an accident does occur)

We’ve been successfully protecting our policyholders and their employees since 1983.

Our Workers’ Compensation policy is available nationwide except in monopolistic states: ND, OH, WA, and WY.

my turn

continued from page 9

Remembering Chris Redick

I want to take a moment to address an occurrence that I had never even considered as a possibility at one of our events. On Thursday evening during this year's Small Agency Conference, Chris Redick, a company representative with Travelers, collapsed and passed away during an after-hours event. Chris was administered first aid by both those in attendance at the event as well as paramedics who responded to the call that was made immediately upon Chris’s collapse. Ultimately, his condition was of a nature that such procedures were not enough to prevent his passing. This was a tragic event and a conference first for the association that we never imagined taking place. That evening, as I was present in the gathering of conference attendees that had congregated near the area where Chris collapsed,

thelegalside

not be disclosed. In addition, for producers, an agency should consider how to restrict the use of customer information when a producer leaves. Limitations on contact and use of the information are often enforceable, but courts do often impose limitations on agreements not to compete if they restrain competition too much. Much of an agency’s information may be protected as a

insurpac

there was a look of shock and sadness upon the faces of everybody who was present and was informed of his passing. We continue to mourn his passing and grieve for his family and friends. I want to express appreciation for those who were with Chris at that time and immediately sprang into action in order to provide care to him, whether that was administering CPR, locating the hotel defibrillator or contacting emergency personnel. Many of our attendees inquired as to how they can provide assistance or express regards for Chris, and his family has asked that donations be directed to Faith Baptist Church, 15285 US-169, Olathe, KS 66062. This is the church and school that two of Chris’s children currently attend. We ask you to keep Chris’s family and friends in your thoughts.

continued from page 11

trade secret under state law. Overall legal review of any limitation an agency desires for use of its information is advisable.

An agency can encounter many areas where legal issues arise. These are some often discussed and hopefully this review will offer an agency some matters to consider when addressing these issues.

continued from page 17

4) Extend and reform the National Flood Insurance Program (NFIP).

The Big “I" strongly supports reauthorization of the NFIP before its expiration and recognizes the importance of a modernized program to increase take-up rates in both the NFIP and the private market. Specifically, the Big “I" supports H.R. 900, which would allow private flood insurance to satisfy continuous coverage requirements and

ensure that consumers who leave the NFIP for the private market, but are later forced to return, can do so without penalty.

With a busy year ahead, it is critical that our independent insurance agents and brokers nationwide engage in these pivotal discussions with legislators. If you were not able to join this year, we hope we can count on you to attend next year’s annual conference in Washington, D.C.

technicalities

continued from page 13

increased 38.5% as reported by CoreLogic. And as we know, hail damages roofs, which have increased 40% for materials alone over the last five years. This drives claim payments to exceed what the insurance companies anticipated.

The fallout of this difficult market has wreaked havoc on some of the commercial insurance segments, especially those with high property insurance limits or multiple buildings exposed to Missouri’s tornado, wind, hail and earthquake exposures. Beyond pricing, often the capacity to insure millions is not available in the standard markets.

The personal home and auto insurance world has not yet felt the full wrath of the insurance companies’ reaction to Missouri’s climate. Some of the personal insurance repercussions have been insurance companies declining to insure homes with roofs over ten years old, or older roofs having a depreciation schedule or a percentage deductible. Some carriers have pulled out of personal insurance altogether, while others are not renewing personal insurance in Missouri. Insurance companies that remain in the game will continue to apply substantial renewal increases. We all know the insurance market is cyclical

and it will rebound and become competitive again. But, when? The pricing will never be as it was because it simply was not sustainable with more catastrophic weather damaging more densely populated areas that cost increasingly more to reconstruct. Nobody sheds tears for insurance companies; however, we want them profitable and solvent for reliable recovery. The new spotlight is evident according to NOAA:

• In 1980, the United States experienced about three disasters a year of at least $1 billion each.

• In the 2010s, about 13 per year reached $1 billion.

• In 2023, 28 weather and climate disasters caused at least $1 billion in damages each. All eyes will continue to monitor Missouri until the insurance companies’ pricing is commensurate with the cost of claims.

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missourinews

Recap of the 2024 Day at the Capitol

The 2024 Day at the Capitol brought together agents, legislators and the Missouri governor for a day of informative discussions and meaningful engagement with our elected leaders.

The day kicked off with agent networking at Three Story Coffee before heading to the Capitol for a walking tour and a brief history. Specifically designed with young agents and first-time attendees in mind but open to all attendees, the morning activities were an opportunity to learn more about the legislative process as well as the Capitol building itself. The time together provided agents occasion to discuss policies that would support the insurance sector’s viability as well as ample time to discuss issues common amongst their agencies.

After lunch, MAIA CEO Matt Barton gave a legislative briefing on the issues most pertinent to independent agents, including the need for tort reform as well as the other bills impacting the insurance industry. The briefing ended with a surprise visit from Governor Mike Parson. Governor Parson has been a longtime friend of MAIA and supporter of the independent agency system.

After the briefing, agents headed to the Capitol and met with their respective legislators. Agents were able to engage with legislators on critical issues affecting the insurance industry, including the need for tort reform and the evolving marketplace.

The day concluded with dinner at the Capitol Plaza Hotel as well as a legislative panel. Panelists included Senators Sandy Crawford and Curtis Trent, as well as Representatives Phil Christofanelli and Steve Butz. The panel discussed pressing issues facing the legislature during the 2024 session, as well as the bills currently introduced in the legislature that aim to improve the tort atmosphere in Missouri. With both sides of the aisle present, attendees were also able to question the panel and deliberate potential solutions to address our litigation landscape problem.

For more information about tort reform, please visit our Tort Reform Action Center at www.moagent.org/TortReform. We also encourage you to donate to

MAPAC, the Missouri Agents Political Action Committee. MAPAC pools contributions from our independent agencies to support selected candidates for the Missouri House and Senate who share our business philosophies and support the independent agency system.

New associate members

Anthem Software, Krystle DeGraide, Orlando, Fla. Capitol Special Risks, Amanda Sedliak, Atlanta, Ga.

2024 Day at the Capitol

agencynews

Awards and accolades

Ollis named 2024 Springfieldian of the Year

Richard Ollis, of Ollis/Akers/Arney Business Advisors, was recently named the 2024 Springfieldian of the Year. The award, presented by the Springfield Chamber of Commerce, was presented to Ollis for his “transformative impact on both the business landscape and community spirit of Springfield.” Ollis served two terms on the Springfield City Council and is a veteran of the United States Navy. He currently serves on the MAIA board of directors, as well as the advisory board for the College of Business at Missouri State University.

Ollis was also recognized by the Missouri House of Representatives for his contributions to the city of Springfield. On March 29, Representatives Alex Riley, Bill Owen and Melanie Stinnett presented Ollis with a resolution from the legislature in honor of his work to better Springfield. MAIA CEO Matt Barton also attended the presentation.

The Springfieldian award is the most coveted honor awarded by the Chamber. It is given each year to an individual who exemplifies outstanding community service, excellence in his or her field

and dedication to improving the quality of life in Springfield.

Robert Holmes honored with awards

Robert Holmes, the founder and president of Spectrum Weather and Specialty Insurance, Inc., has been recognized with the inaugural Associate of the Year award by the International Association of Fairs and Expositions (IAFE). The award was presented at the IAFE's annual convention last November.

His expertise and enthusiasm for protecting event organizers through specialized insurance solutions have set a benchmark for excellence within the industry.

Robert was also bestowed with the Associate of the Year award from the Wisconsin Association of Fairs (WAF) at their annual convention in January 2024.

Expressing his sentiments, Robert stated, "I am both humbled and honored to receive these distinguished awards. It is a privilege to be acknowledged by peers and colleagues who share a common passion for the vibrant world of fairs and other outdoor gatherings."

Holmes

Ollis

Steinkoetter

agencynews

New faces and places

Powers Insurance & Risk Management hires Josh Steinkoetter

Powers Insurance & Risk Management recently hired Josh Steinkoetter as a commercial lines sales account executive.

Steinkoetter’s responsibilities will involve working with the commercial lines team to efficiently gather information from clients and prospects, utilizing technology and creating consistent interaction to form seamless interactions.

Steinkoetter brings 20 years of experience in the insurance industry to the role. Prior to joining Powers, he held numerous positions as an assistant director and manager at agencies in Columbia, Missouri.

“Josh brings many strengths to our agency,” said Powers Insurance and Risk Management president JD Powers. “His communication, negotiation and critical thinking skills are key when generating

processes that will benefit our entire team. We look forward to all that he will accomplish at our growing agency.”

New agency members

Bankers Agency Insurance, Shawn Hayes, Bolivar

Eagle Insurance Solutions, Jim Champion, Poplar Bluff

LivCo Insurance Agency, LLC, Matt Morrison, Chillicothe

Lockridge Insurance Agency LLC, Tara Burns, Gallatin

Mylo LLC, Belen Tokarski, Kansas City

Smiths Reliability Insurance Agency, Kenneth Smith Sr., Potosi

Awards and accolades

Acuity named a top company for claims service

Acuity was named one of the best insurers in the country for claims service in the 2024 CRASH Network Insurer Report Card. In addition to being in the top six insurers nationwide, Acuity is ranked No. 1 in the Great Lakes Region, No. 1 in the Plains Region and No. 2 in the Rocky Mountains Region.

CRASH Network surveyed over 1,000 collision repair shops across the country for its 2024 Insurer Report Card. Shops were asked to grade the claims service of insurance companies based on one question: How well does this insurer’s claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?

According to CRASH Network, Acuity has personnel that are better trained, more experienced and/or quicker to respond than other insurers. Acuity also has claims processes that are more efficient and payment practices that are more reasonable than

other companies and is also more willing to pay for quality parts and original equipment manufacturer (OEM) repair procedures.

“We truly care for our customers, and it shows in the claims service we deliver. Being recognized again by CRASH Network proves that customers can count on Acuity when accidents happen,” said Melissa Winter, Acuity president.

Herlong named APCIA Emerging Leader

Keri Herlong , commercial lines consultant for Acuity, has been named by the American Property Casualty Insurance Association (APCIA) to the 2024 Class of Emerging Leaders, representing high-performing insurance professionals from across the industry.

Keri has 30 years of experience in the insurance industry and has a passion for continuing education. She has earned multiple designations from The National Alliance (CIC, CRM, CISR), The Institutes (CPCU, AIM, ACSR), International Risk Management Institute

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(CRIS), and the International Association of Insurance Professionals (CIIP, DAE, CLP-A).

In 2023, she was honored by the IAIP with the Client Service Professional of the Year Award at regional and international levels.

Keri teaches several classes in insurance and leadership and serves on the Education Task Force of IAIP. She graduated summa cum laude with a degree in psychology from California Coast University.

New faces and places

JM Wilson announces additions and promotions

JM Wilson announces the promotion of Laura Cole to fleet transportation underwriter. She is responsible for underwriting a wide variety of new and renewal fleet transportation risks, as well as nurturing relationships with carrier underwriters and independent insurance agents in all states that JM Wilson writes.

Cole joined JM Wilson in 2020 as an assistant fleet transportation underwriter. Laura has earned a Master of Arts in English/English literature, as well as a TESOL certification from

Youngstown State University. In addition, she earned a Bachelor of Arts in humanities/ comparative studies in literature from Ohio State University.

The company has also hired Brendan Hagan and Zeb Cornwell as assistant fleet transportation underwriters. Their responsibilities include providing vital support to underwriters with a wide variety of new and renewal fleet transportation risks in all states that JM Wilson writes. Hagan is a Central Michigan University graduate with bachelor’s degree in management and Spanish. Prior to joining JM Wilson, he was a carrier sales representative. Cornwell is a graduate of Olivet College with a bachelor’s degree in insurance and risk management. His previous experience includes an internship in personal lines sales.

Samantha Mitchell has also joined JM Wilson as accounting and finance specialist. Samantha’s responsibilities include a variety of accounting duties, including invoice processing, collections, cash management, month-end closing and customer support

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for all JM Wilson offices. Mitchell joined JM Wilson with over five years in the insurance industry working for an agency. In addition, she earned a Bachelor of Applied Arts degree in management from Baker College of Muskegon.

Maria Rice was hired as finance and reporting accountant. In this role, Maria is responsible for monitoring all financial data, ensuring accuracy in reporting and executing essential tasks such as month-end close procedures, financial statement preparation and overall cash management. Prior to joining JM Wilson, Rice honed her skills in tax accounting, gaining valuable experience in the field. An alumna of Western Michigan University, she holds a bachelor's degree in accountancy.

Other news

MEM safety grant helps Habitat for Humanity build homes

In 2023, Missouri Employers Mutual awarded $419,700 in safety grant funding to 59 businesses for workplace safety initiatives,

bringing the total safety grants awarded to more than $2.8 million since 2016. Show-Me Central Habitat for Humanity was among the winners. They purchased fall-protection harnesses with their funds, boosting volunteer safety. The grant helped them build four homes in just 10 days!

“It’s always rewarding to help policyholders, but with Habitat, it felt extra special,” Brad Minor, senior consultant for MEM’s safety grant program, shared. “They genuinely rely on financial assistance for crucial safety equipment like harnesses and lanyards, things many businesses take for granted.”

All MEM policyholders are eligible for a safety grant, regardless of premium size or claims history. Successful applicants earn one-to-one matching grants of up to $10,000 toward approved safety initiatives. Policyholders are required to monitor any claims data and report on the success of the safety grant so MEM can help other businesses learn from their success.

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Enforcement actions

Carla D Coleman Strickland, St. Louis, Mo., voluntary surrender of license.

April Lynn Courtway, Holts Summit, Mo., voluntary surrender of license.

Shelby Lane, Greenwood, Mo., voluntary forfeiture of $1,000.

John McAfee, New London, Mo., voluntary forfeiture of $700.

Stanton Morga, St. Louis, Mo., voluntary forfeiture of $1,400.

Netco Title, Inc., Southington, Conn., voluntary forfeiture of $2,100.

Daniel Noshay, Chicago, Ill., voluntary forfeiture of $700.

Financial exams

BMI Company Inc., Billings, Mo., examination report adopted with curative action ordered.

Caldwell County Mutual Insurance Company, Kingston, Mo., examination report adopted with curative action ordered.

CFM Insurance Inc., Concordia, Mo.,

examination report adopted with curative action ordered.

Farmers Mutual Fire and Lightning Insurance Company, Mound City, Mo., examination report adopted with curative action ordered.

Old Missouri Mutual Insurance Company, Billings, Mo., examination report adopted with curative action ordered.

Market conduct exams

Aetna Life Insurance Company, Cleveland, Ohio, stipulation of settlement and voluntary forfeiture of $8,000.

Auto Club Family Insurance Company, Costa Mesa, Calif., stipulation of settlement.

Lifeshield National Insurance Co., Oklahoma City, Okla., stipulation of settlement and voluntary forfeiture of $5,000.

State Farm Mutual Automobile Insurance Company, Bloomington, Ill., stipulation of settlement.

WEBINARS UPCOMING EDUCATION

RISK SPECIALIST SERIES

Missouri Agents Connection Summit

June 20, 2024

Covering Online Fraud and Employees Who Turn Out To Be Crooks

We will begin with a discussion of the difference between discovery and loss sustained coverage triggers. We will discuss employee theft coverage, the use of employee theft coverage to satisfy ERISA requirements and how the employee dishonesty coverage in the BOP differs from the employee theft coverage in the crime program. We will move on to a discussion of computer and funds transfer fraud, including adding coverage for fraudulent impersonation/social engineering losses.

November 7-8, 2024

PROGRAM

These companies strongly support the independent agency system and the Missouri Association of Insurance Agents.