December 2015 Wisconsin Professional Agent

professional agent DECEMBER | 2015

What’s Inside?

Build a Sales Culture......... 12 Life Cycle of Risk................ 16 Management Education Section.............. 18 (see yellow tab pages) Policy Errors....................... 26 PIAW Legislative................ 28 Conduit Strong Start to a................. 30 New Year PIAW Capitol Photo........... 34 Fight the Direct Writers.... 36

Digital Editions of PIAW Magazine Available at www.piaw.org

Happy Holidays!

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2 DECEMBER 15

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10/30/2015 12:00:26 PM

From the

President Rick Clements, LUTCF, MDRT — President, PIA of Wisconsin

Independent Agent System . . . a great opportunity Why the independent agent system is a great opportunity: Mergers, acquisitions, internet, and direct writers all spell doom and gloom for the local insurance agency system, right?

Not quite.

The way consumers buy insurance is changing, but the reasons they buy has not changed all that much. Consumers shop for prices but when it comes to buying they want a person that cares and savvy consumers want advice. The agents that excel will be agents that demonstrate value while using technology efficiently. Consumers are looking for convenience but still want professional advice.

Now is the time The average age of an agency owner is 59. This is creating great opportunities to join an agency, develop skills through the use of technology and potentially become an agency owner.

If you are currently an agency owner, this is a ’sellers’ market as industry leaders are realizing the future significance of agency ownership.

As new agencies form and existing agencies merge and expand the demand for licensed and educated employees will increase, making those people a valuable asset to the business.

Internet and direct writers are leaving more room for local agents to fill in the ‘gaps’ for consumers looking to shop local with an insurance professional.

Here’s how PIA can put you in position to be an agency of the future Education is the key. Establish yourself as a professional through PIAW’s CIC, CRM, CISR, and CPIA, Dynamics of Service, Hot Topics and On-line Webinars. Read the press

releases sent by Executive Vice President, Ron Von Haden and submit them with your agency information to local media. Check into PIAW‘s blogs for their latest posts on relevant information for our clients.

PIAW has had several seminars on social media teaching insurance professionals how to ramp up on-line marketing to drive profitable growth. They also have website services to help create that professional presence. There are a number of brochures that can be emailed or posted on social media. A few of these are ‘Teen Driving’, ‘Child Going to College?’, ‘Flood Insurance’, ‘Homeowners Rates’, ‘Choosing an Independent Agent’ and ‘Insurance Scoring’.

Attend the annual Convention and the Winter Get-a-Way. Network with other like-minded agency personnel, company representatives and PIAW staff to gain valuable contacts and resources.

Watch for the PIAW Legislative Posts. Professional Insurance Agents of Wisconsin as well as the National Professional Insurance Agents Association keep a very close eye on pertinent topics affecting your clients and the insurance industry. A recent item on the agenda was Transportation Network Companies such as Uber and Lyft. Two recent bills were signed by the governor on DECEMBER 11, 2015. One was regarding liability for damages caused by dog bites and the second addressed structured settlement transfers. Both of these bills were supported by PIAW.

Take Action Visit www.piaw.org or call the office at 800.261.7429 for more information on how the PIAW can help you grow as an insurance professional.

Merry Christmas and Happy New Year!

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DECEMBER 15 3

Memos from

Madison Ron Von Haden, CIC — Executive Vice President, PIA of Wisconsin

Dog Bite Bill PIAW REPRESENTATIVES once again were invited to the Governor’s office to witness the signing of a new law in Wisconsin. On December 11, Governor Walker signed Senate Bill 286 into law. The bill was introduced by Senator Frank Lasee and cosponsored by Representatives Mary Czaja and Bob Gannon (both are PIA members!). PIA and our industry associates were staunch supporters of this bill which has become known as the “dog bite bill”. The new law makes changes to a dog owner’s liability and changes the penalties for damage caused by a dog.

In meetings with Representative Czaja and Representative Gannon, the PIA Legislative Committee expressed our support and our lobbying team worked closely with legislators and industry groups to make sure this legislation passed through committees and the full legislature.

eggs of game birds. The new law also stipulates new procedures for asking a court to order a dog to be killed for causing injuries.

PIA is a strong force at the Capitol in Madison and we are consulted regularly for our opinion on issues involving insurance and small business. Your dues dollars at work for you!

HOW IMPORTANT IS advertising? We all know that reaching new prospects is critical and that reaffirming your brand to existing customers will pay big dividends in the long run.

But how much can you spend before advertising expenses exceed any cost/benefit ratio? Apparently Geico thinks the $1.43 Billion it spent in 2014 is reasonable. Allstate dropped $937.5 million into its 2014 ad programs and State Farm came in third with expenditures of $843.9 million. Those are stag-

Under previous law, a person who owns or keeps a dog was generally liable for the amount of damages caused by the dog injuring a person, a domestic animal, or property. The dog owner was liable for two times the amount of damages caused by the dog injuring a person, a domestic animal or property if the dog owner knew that the dog previously injured a person, domestic animal or property. The new law changes the provisions under which a dog owner or keeper may be liable for two times the amount of damages so that it applies only when a dog bites a person with sufficient force to break the skin and cause permanent physical scarring or disfigurement, and the owner knew that the dog had previously, without provocation, bitten a person with sufficient force to break the skin and cause permanent scarring or disfigurement.

gering numbers when you consider how they relate to the

The new law also raises the fines for dogs causing injury to people, domestic animals, deer, game birds, or the nests or

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GOVERNMENT WASTE makes me boil. How about spending $1.5 million on a robot that can fold towels? The problem is that it can only fold one towel every 30 minutes! I’m even faster than that. And it might upset you to know that $387,000 was spent to give massages to rabbits after they had been subjected to “strenuous exercising”. The study was supposed to see if rabbits who got massages felt better, quicker than nonmassaged rabbits. Duh!

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DECEMBER 15 5

From the

Boardroom Thomas Budzisz — Director, PIA of Wisconsin

Details Matter Details matter in the work we do every day. We need to ask the right questions and those we insure must understand the consequences of not including these details in their policy coverage. Here are a few personal lines examples.

I recently had an automobile claim denied by an insurance company because my insured was transporting people during the course of his job. My insured was At Fault in an accident causing property damage to the claimant’s vehicle as well to his own vehicle (thank goodness that no one was injured). The insured called the claim directly into the company and proceeded to tell them the details of the accident.

As the interview went further along, the insured mentioned that he transports people three to five times a week for his job. The insured also told the company representative that he had been driving people around for his job prior to writing up his new auto policy seven months ago. When the company asked him if he got reimbursed from his employer for this he said no, he just gets mileage. The company wanted to know if the insured happened to mention to the agent at the time the application was written up that he drivers people around in the course of his job and he said he didn’t think so.

Because the insured failed to mention the details of his job, this cost him a lot of money out of his pocket. Details matter.

I have since changed the policy to reflect the proper classifi-

cation so if something like this were to happen again, there will be coverage.

A homeowners customer asked if they have coverage for sewer back up due to a power failure because water backed up into their finished rec room. The answer that I gave was no. When I asked about the rec room, I was told that they didn’t want their homeowner’s insurance premium to go up, so they never mentioned it to me. Details do matter. Water back up coverage has been added onto the policy, so if something like that were to happen again it will be covered.

A former customer of mine is being sued because a roofer working on her roof fell off and he broke his back. The roofer did not carry workers compensation coverage because it cost too much money. The lady never asked if he had that type of coverage when she hired him. It turns out that the liability limits on her new homeowners’ policy did not match the old limits and she no longer had a personal umbrella policy like she had while insured with our agency. Because of this unfortunate mishap, the insured has placed coverage with the agency again and now has the proper coverage. Details do matter.

Details do matter and it is important that we ask the proper questions as a consumer or as an agent.

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DECEMBER 15 7

OCI Administrative

Actions Ted Nickel — Commissioner of the Office of Insurance

Madison, WI—OCI has taken the following administrative actions. In many of these cases the respondent denied the allegations but consented to the action taken. Any forfeitures paid in these administrative actions are deposited in the Common School Fund which is administered by the Board of Commissioners of Public Lands. The earnings from this fund are distributed to all public K-12 schools in Wisconsin and are used by school libraries to purchase books. Copies of the administrative action orders may be viewed online at https://ociaccess.oci.wi.gov/OrderInfo/OrdInfo.oci.

OCI is responsible for overseeing the operations and marketing of insurance companies and agents in Wisconsin. OCI encourages anyone with a question or a complaint regarding an insurance company or agent to contact the office at this tollfree telephone number: 1-800-236-8517.

Allegations

and

Actions Against Agents

Jeremy T. Amstadt, N71 W23321 Good Hope Rd., Sussex, WI

Gregory A. DeHaven, 706 B 8th St., Mosinee, WI 54455,

53089, agreed to the denial of his application for additional

agreed to the 31-day denial of his insurance licensing appli-

insurance authority and agreed not to reapply for additional

cation, agreed to remain in compliance with repayment plans

insurance authority for a period of six months. These actions

related to civil money judgments, and agreed to report any

were taken based on allegations of failing to disclose employ-

future criminal charges, administrative actions, and civil

ment terminations for cause on a licensing application.

charges taken in any jurisdiction to OCI in writing within ten days. These actions were taken based on allegations of fail-

Jeremy T. Amstadt, N71 W23321 Good Hope Rd., Sussex, WI

ing to disclose a deferred prosecution agreement on a licens-

53089, agreed to the suspension of his insurance license for

ing application and having unpaid civil money judgments.

a period of six months. This action was taken based on allegations of failing to disclose employment terminations for

Ryan D. DeWilde, 3401 Tranquil Way, Kaukauna, WI 54130,

cause on an insurance licensing application.

agreed to notify OCI in writing within 15 days of any administrative action, criminal, or civil charge initiated in any

Jennifer M. Blatz, N1125 Public Landing Rd., Chetek, WI

jurisdiction and agreed to respond promptly and completely

54728, agreed never to reapply for Wisconsin insurance

to all inquiries from OCI. These actions were taken based on

licensure. This action was taken based on allegations of fail-

allegations of having unpaid civil money judgments, hav-

ing to submit insurance premiums and having her insurance

ing a criminal conviction that may be substantially related

agency terminated for cause.

to insurance marketing type conduct, and failing to respond promptly to inquiries from OCI.

Andrew L. Burnstein, 2429 Addington Pl., Wesley Chapel, FL 33543, had his application for an insurance license denied for

James D. Dewitt, Jr., 1821 1st St. S., Wisconsin Rapids, WI

60 days. This action was taken based on allegations of fail-

54494, had his insurance license revoked. This action was

ing to disclose administrative actions taken by the states of

taken based on allegations of failing to pay delinquent

Florida, North Dakota, South Dakota, Delaware, and Georgia

Wisconsin taxes.

on a licensing application.

Anthony R. Foss, 5587 E. Waterford Rd., Hartford, WI 53027, Roberthenry Davis, Jr., 4654 N. 108th St., Wauwatosa, WI

agreed to notify OCI of any criminal or civil conviction in

53225, had his application for an insurance license denied.

any jurisdiction and agreed to respond to all inquiries from

This action was taken based on allegations of failing to time-

OCI in writing within ten days. These actions were taken

ly retake an insurance examination and failing to respond

based on allegations of failing to respond promptly to inqui-

promptly to inquiries from OCI.

ries from OCI.

8 DECEMBER 15

OCI Administrative Actions [continued on page 10]

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OCI Administrative Actions [continued from page 8] Jeffrey Hayes, 2927 S. 97th St., West Allis, WI 53227, had his insurance license revoked. This action was taken based on allegations of failing to pay delinquent Wisconsin taxes.

Robert T. Kingsley, 39302 Granite Bay Pl., Davis, CA 95616, had his application for an insurance license denied. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Virginia on a licensing application and failing to respond promptly to inquiries from OCI. Dana R. Magarian, 424 S. Ringold St., Janesville, WI 53545, had her insurance license revoked. This action was taken based on

Allegations

and

allegations of failing to pay delinquent Wisconsin taxes.

Jason D. Miller, 105 Stanley St., Apt. 6, Neenah, WI 54956, had his application for an insurance license denied for 31 days.

This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application.

Michael R. Welch, 209 N. Thompson Dr., Apt. 2, Madison, WI 53714, had his application for an insurance license denied.

This action was taken based on allegations of having criminal convictions that may be substantially related to insurance marketing type conduct and having unpaid criminal and civil money judgments.

Actions Against Companies

Affiliated F M Insurance Company, P.O. Box 7500, Johnston, RI 02919, was ordered to pay a forfeiture of $1,000.00. This action was taken based on allegations of failing to timely file a required financial statement.

AGCS Marine Insurance Company, 225 W. Washington St., Ste. 1800, Chicago, IL 60606, was ordered to pay a forfeiture of $500.00 and was ordered to comply with required notice requirements upon renewal. These actions were taken based

on allegations of failing to provide a commercial policyholder specific notice of less favorable terms and the right to cancel based on those terms.

National Health Plans & Benefits Agency LLC, 42512 Hayes Rd., Ste. 700, Clinton Township, MI 48038, had its application for an insurance license denied. This action was taken based on allegations of using a misleading business name.

GERMANTOWN MUTUAL INSURANCE COMPANY W209 N11845 Insurance Place PO Box 1020 Germantown, WI 53022-8220 Phone (262) 251-6680 Fax (262) 623-3130 www.gmic.com

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• Green vegetables. The darker the better. Deeper greens signify a higher concentration of vitamins A, C, and E, along with folic acid, calcium, and other important nutrients.

• Frozen produce. Check the label carefully. Some frozen fruits and vegetables contain as many nutrients as the fresh variety, especially produce that has been sitting out for a few days.

• Pasta. This can give you a good dose of protein, iron, and B vitamins.

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Building a Sales In Your Business

Culture

Everyone's in Sales

by Todd Cohen

If you’re reading this, then you are in sales. Everyone is part of a sales culture, whether you are in the “C” suite, or a member of the legal or administrative department; whether you own your business or are the receptionist in a Fortune 500 company. A sales culture means that everyone’s in sales. Does this mean that all employees have to stop doing what they are doing and make some cold calls? Nope. A sales culture means that each and every employee— regardless of title or tenure—understands that they have a profound impact on a customer’s decision to say “yes.” Put simply, everyone’s in sales because everyone needs to sell themselves well to succeed!

12 DECEMBER 15

Every Conversation and Interaction We Have Is an Opportunity to Sell Our Skills, Knowledge, Ideas or Ourselves.

as much a sales person every day as much as the professional

Every single conversation is a bona-fide selling moment.

Those conversations are the opportunity to make an impression that begins to build or continue a relationship. There is no such thing as a lost conversation or one that does not count. Every single interaction you have means you have about 7-10 seconds to engage someone in a way that makes them want to know more or continue the conversation. Once this is understood and thought of proactively you can comprehend that you are constantly selling yourself.

by selling themselves, ideas and passions and as a result good

There are two types of sales people: the ones who self-identify as being in sales and everyone else. These people are the “non– professional sales person” (NPSP). People are exercising the basics of sales far more often than they think. From lawyers to the owners of the local fast food restaurant—they are all in sales.

Then there are the people in companies who need to sell something internally. One common example that comes to mind is someone engaged in research and has a great idea that needs funding to make it happen. It has to be sold to the bosses! You’ve all used and heard the term “it has to be sold” or “we need buy in” when referring to something internal to your companies or in your personal lives.

Regardless of how you see yourself, here is the point that needs to be firmly and unequivocally understood. Telling people that they are in sales usually provokes two types of reactions. The first being “Yep, I agree.” The second reaction is “nope, not me—’m not in sales.” The latter is sometimes said with a slightly confused gaze, but the intent is there. Everyone is exercising the fundamentals of sales far more often than they think.

It is also a fact that some non-professional sales people will vehemently deny this entire concept because in some way there is a fear that being thought of as having to “sell” is not something they have to do. The older guard of the NPSP’s did not have to sell as we think of it today. Business came by referral and word of mouth. Oh, the times have changed!

How Non-Professional Sales People Sell Sales fundamentals take place in non-sales settings constantly.

Conversing, handling objections, networking, building relationships, listening and helping are all selling motions. The fundamental skills of selling are the same skills that you use every day in some fashion. Most of the time you don’t realize it and when it’s pointed out the usual reaction is “Hey…I’m not in sales” or “Sales…that’s not my job!” It cannot be said often enough – when you talk you sell. It’s the same and synonymous motion. When you speak, people form an impression very quickly and that is a selling activity. So, the NPSP is

sales person. The only difference is that a professional sales person is getting paid to sell. The NPSP gets what they want thigs happen. Sometimes those good things are monetary like a raise. Your ability and proactive recognition that you sell all the time leads to good things.

Selling is not something that requires people to stop what they are doing and do something different. It is not a mode change. It is rooted in solid relationship building and developing trust. It is not unlike complex solution selling that we sales professionals experience all the time. In other words, selling is “don’t do anything different, think differently about what you do.” What you do every day impacts and influences people in many different ways—and that’s sales! Things do not happen magically in a vacuum. You need to get out there and sell yourself and your ideas so you can get what you want, need and deserve!

Some great advice is just to relax, be natural and listen to your target “buyer.” If you get too wrapped up in thinking too much about it then you will have some (big) challenges.

Listen, ask questions and see how you can help. Have your facts ready and make sure they are right. “Facts don’t lie.”

Facts help the selling process for everyone.

Companies with a Sales Culture Do Better .

Companies with a sales culture have one indelible quality that defines them: every single person knows their role and not just what their title implies. Selling is a complex process and it is no longer a linear relationship between the sales person and the client. There is not a sale that could happen without the help and input of many people around the organization.

Everyone has a systemic role and everyone does something that helps a customer say “yes.” People thinking “sales, not my job” are people who will keep the company mired in mediocrity because they think that selling is something else that they have to do in addition to their job. The point is that their job is sales and what they do is vital to the company engaging and closing more customers.

Todd Cohen, CSP is an accomplished and sought after speaker, sales culture expert and author of Everyone’s in Sales and Everyone’s in Sales; STOP Apologizing. Todd’s dynamic and motivational presentations are based on the foundation that regardless of career path or position, everyone is a salesperson. Since 1984, Todd has led sales teams to deliver more than $850 million in revenue for leading companies including Xerox and Thomson-Reuters. For more information or to book Todd Cohen for your next meeting please visit www.ToddCohen.com.

DECEMBER 15 13

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The Lifecycle of

Risk Management

Considering and Insuring for Health Risks

Throughout Your Lifetime

By Blake Panosh, Senior Vice President, Insurance and Annuity Manager, Baird

Building wealth is a disciplined process of careful planning, saving and investing. Success is often achieved through a life-long commitment to a diversified and comprehensive plan with wealth growing over an extended period of time.

Despite years of effort, these best-laid plans can be undermined at key points throughout a lifetime. Risks to wealth can include death, disability or even the need to step back from work to care for an aging parent. Later in life, many fail to plan for long-term care expenses despite the fact that an estimated 70% of people over the age of 65 will require some form of long-term care services and support during their lives.1 Planning for these unanticipated threats to your wealth will vary depending on the phase of life. We like to refer to this as the lifecycle of risk management. Below, we identify some of the unexpected challenges that can occur during one’s lifetime and the steps you can take to prevent these risks from threatening your family’s wealth.

The Early Years: Post-College Life Into Early Career For many young people just beginning their career, earnings, savings and assets are low. Most are single and childless and own few possessions. At this point, there is little wealth and low levels of risk. However, a catastrophic accident, illness or loss of life could leave family members responsible for medical bills, funeral expenses and possibly outstanding debt (including, in certain circumstances, student loans).

Given that many of today’s health insurance plans carry high deductibles and out-of-pocket costs, it is not uncommon for final medical expenses to reach upward of $5,000-10,000. Add in an average funeral cost of roughly $10,000 and it is easy to see the wisdom in purchasing a small life insurance policy, at the very least, to safeguard against an unexpected death.

Furthermore, disability income insurance is a must to safeguard against the loss of your earning capacity should you become disabled and unable to earn an income. For many, accepting the basic coverages in both short-term and longterm disability income policies that may be offered through your employer is an excellent starting point.

As individuals move into their late 20s and early 30s, earnings begin to ramp up. For many, the most significant change 16 DECEMBER 15

will come once they start a family. At that point, life and disability income insurance becomes imperative to support your family in case of an untimely death or disability. These will likely be more substantial policies, as you now have a family that is dependent on your income and the services you provide to them. In addition, life insurance may help repay outstanding debts, provide for your children’s future educational needs and support heirs with special needs. Your disability income protection will likely include a supplemental disability income policy that builds onto your group coverage through your employer. By working with your financial advisor and the numerous tools and calculators available to assist you in determining the right level of coverage, customized solutions can be tailored to meet your unique needs and objectives.

Peak Earning Years: Mid-30 s to Mid-50 s Life and disability income insurance to support a family remains critically important at this phase, and it is during these peak earning years when many complete a thorough review with their financial advisor to ensure their policies are keeping pace with their changing needs. It is important to note that being unable to work during peak earning years is about more than protecting your income. A disability will likely result in retirement savings also coming to a halt at a time when most can finally afford to put significant dollars away.

This is also when you should begin to think about your parents and the future care they may need. It’s important to take steps to establish an open dialogue with aging parents about their circumstances before any serious issues occur. Many may be surprised at this point to learn that their parents have not planned ahead. If parents lack long-term care insurance or enough assets to afford quality care, who will care for them? Many mistakenly assume that Medicare or Medicaid will cover long-term care needs. Medicare may only provide coverage for up to100 days of skilled nursing care after a qualified hospital stay for an acute issue. A long-term care event

requires unskilled care and may be provided in places other than a nursing home facility, such as at home, assisted living facilities or adult day cares. Medicaid is only available to those with very low asset and income levels, and not all care facilities will accept Medicaid patients.

The costs of caring for a parent can be significant and vary substantially by home, community and facility-based care.

The national median rate for home care is $20/hour while median rates for facility care range from $45,000 (assisted living facility) to $90,000 (private nursing home facility) annually.2 Caring for parents who haven’t made their own arrangements may mean that a family member will need to provide the necessary care. If the caretaker must leave a job to do this, it not only takes away his or her income, it often takes away this income during peak earning and savings years. And the impact can be far-reaching due to the physical and emotional toll of providing care to a loved one.

Tragically the issue of caring for uninsured parents can tear a family apart – yet another unintended consequence of not planning for a long-term care event. Family members may disagree over how care will be provided, who will pay for it and from what source, or try to decide who will sacrifice their time to care for mom or dad. We strongly recommend that all adult children sit down with their parents to discuss plans well in advance of the need. Make it clear to everyone that the discussion isn’t about an inheritance but rather the well-being of the entire family. Once the need is defined, sit down with a financial advisor to discuss the various planning options available to your family.

Pre-Retirement Many people reach their peak savings and begin to think seriously about retirement in their late 50s or early 60s. This is also a good time to begin thinking about your own longterm care needs.

When is the best time to buy a policy? Underwriting for long-term care can be tricky, especially as you age. While life insurance underwrites for mortality, long-term care underwrites for morbidity – conditions that will debilitate you but still keep you alive. In general, it is best to purchase insurance when you are still young and healthy. Therefore, purchasing a policy in your early 50s or even late 40s is optimal.

The longer you wait, the more expensive long-term care insurance becomes. And while we don’t hesitate to pay auto or homeowner’s insurance premiums even if we never have a claim, many don’t feel the same way about the use-it-or-loseit nature of long-term care insurance. Some simply choose to forego this coverage due to its perceived steep annual costs with premiums often subject to rate increases.

There are alternatives to traditional long-term care insurance policies. Nowadays it has become commonplace for insurance

companies to offer hybrid products combining the benefits and features of life insurance policies with a long-term care rider. These policies lack some of the flexibility of traditional long-term care insurance, but they provide the comfort of knowing that you or your family will receive something of value from the policy. If you die before receiving long-term care benefits from the policy, your heirs will receive the life insurance proceeds income tax-free. If you need long-term care, you will be able to draw funds from the policy income tax-free on a monthly basis to help pay for your care. Finally, some of these policies offer a return of premium option, allowing you to terminate the policy and walk away with up to 100% of your premiums paid (less any claims paid, withdrawals or other distributions from the policy). Finally, these hybrid solutions are not subject to potential rate increases provided you pay your premiums as scheduled and on-time.

Retirement Once in retirement, individuals try to maximize income and minimize expenses. For those who previously purchased cash value life insurance, a re-evaluation of their life insurance needs in retirement is a must. The possibility of converting that cash value into an income stream for retirement or taking it as a lump sum can be meaningful in accomplishing income goals in retirement, especially if the death benefit need has been reduced or eliminated. For some, transferring wealth to their heirs or their favorite charity becomes a key consideration. Being able to segment existing assets into “live-on” and “leave-on” assets will go a long way toward determining the best planning methods for effectively and efficiently transferring wealth to heirs or a charity. In many cases, life insurance can be used as a tax-efficient means to leverage existing leave-on assets into a more meaningful benefit for the named beneficiary because of the income taxfree nature of the death benefit. Furthermore, when properly structured, life insurance proceeds can also pass free of estate and transfer taxes.

Conclusion With careful planning, a combination of life, disability and long-term care insurance can protect your family’s wealth.

Planning for care for yourself and your parents can be overwhelming, so it’s important to start early and understand the scope of the potential need. Working with your financial advisor, consider all wealth planning protection strategies available to you and your family to gain the upper-hand over the inherent risks that can significantly undermine your family’s wealth.

(Endnotes)

1

2015 Medicare & You, National Medicare Handbook, Centers for Medicare & Medicaid Services, September 2014

2

Genworth 2015 Cost of Care Survey

DECEMBER 15 17

education

Certified Insurance Counselor Each Approved for 20 Wisconsin CE Credits

COMMERCIAL PROPERTY

life & health

February 24-26, 2016 Crowne Plaza­– Madison, WI 888-233-9527 $103 single rate through 1/24/16

March 9-11, 2016 Radisson/Oneida Casino – Green Bay, WI 920-494-7300 $99 rate through 2/6/16 includes full breakfast

• commercial property coverages & endorsements • COMMERCIAL PROPERTY CAUSE OF LOSS FORMS & ENDORSEMENTS Robert Ford, CIC, CISR, CPIA, CLCS

• Life INSURANCE CONCEPTS • HEALTH INSURANCE CONCEPTS John Bennett, CIC, CPCU • LONG TERM CARE INSURANCE • DISABILITY INCOME INSURANCE • BUSINESS CONTINUATION AND SUCCESSION PLANNING Dennis Stone, CIC, CPCU, CLU

• TIME ELEMENT COVERGES John Dismukes, CIC, CPCU, AAI, AIS • COMMERCIAL INLAND MARINE COVERAGES • EDP • BUSINESSOWNERS POLICIES Bernie Neff, CIC, CPCU

• RETIREMENT PLANNING AND ANUITIES • PLANNING FOR PERSONAL NEEDS Fred Stoor, CIC

WI CE Course # 69300

Day One: 8:00 – 5:15

WI CE Course # 69162

Day Two: 8:00 – 5:00

Day Three: 8:00 – noon, Optional Exam 2:00 – 4:00

$405.00 per institute. Register at www.piaw.org or call 800-261-7429.

Utica

Gives You the Credit You Deserve!

The following PIAW education classes are approved for the Utica premium credit.

• Any CIC Update • CIC Agency Management • CISR Agency Operations • Dynamics of Service • Select PIAW Webinars • PIAW Conducted Ethics and E&O Seminars (classroom or in house) To register online and view upcoming CE courses visit www.piaw.org

18 DECEMBER 15

Please contact Darcy at PIAW to find out how you can benefit from Utica’s E&O Loss Control Program. dbrown@piaw.org or 1-800-261-7429

Open to Anyone & Everyone ! www.piaw.org

For The New Employee - No CE 6-8 Week Virtual Classroom •

• • •

New Agency Employee Orientation Delivering Quality Service Personal Lines Coverage Basics Commercial Lines Coverage Basics

Pre-Licensing Education Webinars: 2-3 WI CE, No Exam, No Proctor •

Over 20 Topics

Hot Topics: 4 WI CE • • •

Variety of Coverage Topics Ethics Flood

All 9 CISR Courses – 8 WI CE All 5 CIC Institutes – 20 WI CE

There is

more than one thing

new at piaw.org

PIA of Wisconsin now offers: Certified Risk Manager (CRM) Courses and Ruble Specialty Seminars.

800-261-7429

DECEMBER 15 19

education

O n -L i n e e d u c a t i O n

education

Certified Insurance Service Representative

Open to Anyone!

7 WI CE Credits New Course #69357

Elements of Risk Management

Insurance professionals need training in the risk management process for two reasons. First, insurance is an integral part of their client’s overall risk management program. Second, services provided by carriers, agencies and brokerages are often significant items in the organization’s cost of risk. In this course we will cover each of the five powerful steps in this process, which protects not only the organization’s assets, but also its mission and its brand.

• • • * • •

The Risk Management Process & Risk Terms Risk Identification Risk Analysis Risk Control Risk Finance Risk Administration

Feb 17 • Waukesha Feb 18 • Madison $170 Per Course

CLASS SCHEDULE Instruction

Course Instructor

Group Lunch

Patti Gardner CIC, CRM, CPCU

Optional Exam

8:00 a.m. – 3:45 p.m.

12:00 p.m. – 12:45 p.m.

Includes Lunch Register at www.piaw.org

4:15 p.m. – 5:15 p.m.

or call 800-261-7429

Attention CICs!

Exciting update options; they fill up quickly.

CIC Ruble Seminars January 20 & 21 | Graduate | Crowne Plaza – Milwaukee, WI May 17 & 18 | Graduate | Crowne Plaza – Madison, WI 16 WI CE (Includes 4 optional Ethics)

visit www.piaw.org or call PIA at 1-800-261-7429

On-Line Insurance Pre-licensing Education

www.piaw.org

Exam FX

Online Training & Assessment

Pass your insurance test fast.

Start producing faster.

Insurance and Securities Pre-license Training 20 DECEMBER 15

Registration Fee Only $99.00 Spouse/Guest $59

February 3-5, 2016 The Waters of Minocqua $59.99 Two Queens Includes Deluxe Continental Breakfast 715-358-4000

Wednesday, Feb. 3

2:00 – 5:00

“How to Create Engaging & Effective Online Content” (no CE) Mike Peterson, CIC - Insurance Marketing Partners

5:30

Get-Away Fun at Island City Lanes Appetizers / Buffet Dinner / Free Beer & Soda to 7:30 p.m. / DJ Trivia Bowling / Bar Fun / Prizes / Shuttle to and from Hotel

Thursday, Feb. 4 9:00 – noon

Live Webinar “Seven Ways to Get Sued and How to Avoid Them” (3 WI CE, # 70963 & Utica Approved) Chris Amrhein, AAI

1:30

Northwoods Pub Adventure – Long Sleeved T-Shirts Provided Refreshment Stocked Bus Fun - Featuring “Chicken S %!#?! Bingo” / Prizes Pub beverages on your own.

Bus options to return to hotel or directly to Whitetail Inn will be offered.

6:45 – 7:45

Buffet Dinner at Beautiful Whitetail Inn Buses provided to and from hotel. Cash bar.

Additional Sponsors - Thank you!

Friday, Feb. 5 9:00 – noon

“Ethics” (3 WI CE # 45852) Ron Von Haden, CIC – PIAW

Visit www.piaw.org to register.

Western National Insurance Group Utica National Insurance Group EMC Insurance Companies 1752 Club DECEMBER 15 21

education

7th Annual PIAW Winter Get-Away

education

S TA N D O U T Set yourself apart with a CPIA professional designation Insurance Success Seminars that lead to the designation help you prepare for, implement and sustain successful insurance programs. They’re CE-qualified in many states, and, best of all, they come with a money-back guarantee.

Ask your boss or HR department about it today.

www.piaw.org www.aimssociety.org 877-674-CPIA(2742) 1-800-261-7429 Fax: 703-579-8896

AIMS Society PO Box 35718 Richmond, VA 23235

Certified Insurance Service Representative Open to Anyone!

8 WI CE Credits Course #69334

COMMERCIAL CASUALTY 1

This course strengthens your ability to have productive, assured interactions with your commercial customers in the area of commercial casualty exposures and coverages.

• Essentials of Legal Liability • CGL Introduction

Course Instructor

John Dismukes CIC, CPCU, AAI, AIS 3/8 Instructor

• Commercial General Liability Coverage Parts • CGL Other Provisions

March 8 • Green Bay March 16 • Madison

• Additional Insureds

CLASS SCHEDULE

Instruction 8:00 a.m. – 3:45 p.m.

Group Lunch 12:00 p.m. – 12:45 p.m.

Optional Exam 4:15 p.m. – 5:15 p.m.

$170 Per Course Includes Lunch Register at www.piaw.org or call 800-261-7429

Course Instructor Patti Gardner CIC, CRM, CPCU 3/16 Instructor

22 DECEMBER 15

education

Step Up To Elite Status CISR Elite, That is.

For CISRs who aspire to be more-who seek to distinguish themselves as Elite.

When you love what you do, and want to be the best, It’s time to step up. it time to Become a CISR Elite.

www.piaw.org 800-261-7429

More and more owners, managers, and producers are taking advantage of the solid education provided by the CISR designation program—and for good reason. The “S” in CISR could stand for “Sales” as well as “Service.” CISR courses are a perfect blend of foundational technical training and the skills producers need to create long-term relationships.

CISR courses are convenient one-day classroom courses—also available in self-paced online and in-house formats. The practical knowledge of risks, coverages, and exposures, complement the cross-selling and account-rounding skills taught in CISR courses.

CISR is a solution to satisfaction for your clients, the agency, companies, and you!

Contact PIA of Wisconsin today!

1-800-261-7429 • www.piaw.org

DECEMBER 15 23

education

20 + Topics! Each Approved for 2-3 WI CE Credits. Live. No Test. No Proctor.

Visit the Education tab at www.piaw.org for a complete list of topics, descriptions, webinar demo, and to register.

Ethics is offered each month. Several approved for Utica credit.

Fee per webinar: $50 PIAW Member, $60 Non Member

December 2015 Webinar Schedule TITLE & WI CE BIP(idy) BOP(idy) BOO(ze): Turning Three Mundane Coverages Into Magic

DATE 12/2

TIME (CST) 12-3p

INSTRUCTOR Chris Amrhein, AAI

Get in the Ring: Property Claims, Fights and Decisions 3 CE # 71014

12/3

12-3p

David Viola, CIC

The Ever-Evolving Affordable Care Act (ACA) 3 CE # 71018

12/7

12-3p

Jerry Rhinehart, CIC, CLU, ChFC, RHU

Ethics for Insurance Professionals

12/8

1-4p

Kevin Amrhein, CIC

Contractors: Insuring the Liability Exposures 3 CE # 70757

12/9

12-3p

Catherine Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS

Seven Ways to Get Sued and How to Avoid Them 3 CE # 70963, Utica Approved Personal Lines Complications: Because “Simple” is Just Too Darn Easy 3 CE #

12/10

12-3p

Chris Amrhein, AAI

12/14

1-4p

Kevin Amrhein, CIC

Cybermaster: Recognizing and Insuring Digital Assets and Electronic Risk 3 CE # 70998

12/15

12-3p

Jerry Hargrove, J.D., CIC, CPIA, SCLA, FCLA, PICS, LICS

CHAOS: Contracts, Hold Harmless, Additional Insureds and Other Stuff

12/16

12-3p

Jerry Hargrove, J.D., CIC, CPIA, SCLA, FCLA, PICS, LICS

Current Issues in Health Insurance

12/17

8-11a

Karin Klaassen, CLU, LUTCF

Ethics: Taking it to the Streets

12/17

3-6p

Chris Amrhein, AAI

3 CE # 69647

3 Ethics CE # 69645, Utica Approved

71017

3 CE # 70997

3 CE # 70985

3 CE # 70999, Utica Approved

Register online at www.piaw.org or call 1-800-261-7429.

Contact Brenda at 1-800-261-7429 or bsteinbach@piaw.org for in-house webinar opportunities.

24 DECEMBER 15

education

PEOPLE WHO EARNED THIS ALSO EARNED MORE

30,900 MORE OF THESE

PER YEAR.

If you’re looking to jump start a new career or make more with the one you are in, education is your best investment. Now, more than ever, it is important to invest in your greatest assets—yourself and your people. According to The National Alliance Producer Profile, commercial lines producers with the Certified Insurance Counselor (CIC) designation earn 30% more than those without the designation. To learn more about the CIC Program, call or visit us on the web.

The most successful training programs for insurance professionals

Register at www.piaw.org or call 1-800-261-7429

Find an Agency Management System Vendor . . .

with help from the PIAW.

Since our hugely successful and informational Automation Seminar in May, PIA of Wisconsin has been receiving many inquiries regarding Agency Management System vendors. As a service to our members, we have developed a special section on our web site to list the name, contact information and short description of vendors that agencies can contact for questions and inquires.

Please visit our website to view the list, www.piaw.org.

DECEMBER 15 25

Prompt Policy

Checking and Delivery are Musts

by Curtis M. Pearsall, CPCU, AIAF, CPIA

Ask most agencies where policy checking and delivery rank among daily duties and it is likely not high on the list. It’s not that agents think these are unimportant.

• Some agents believe policies are correct and, if they are not, it’s the carrier’s problem.

• Other agencies report the “quality ratio” is 95% or higher. This sounds impressive, but it means one out of 20 policies contains a mistake.

• Many agencies believe the quality of the policy issuance has improved, but these same agencies will state that errors happen and some are significant e.g. missing locations or vehicles, incorrect named insureds, etc.

The reviewer should complete, date and “sign” the checklist, which should then become part of the file. Other policy checking documentation methods include: •

A “policy checked” stamp indicating who checked it, when and what was noted.

•

Requiring notes in the system with an activity code showing the policy was checked.

Whether the policies are provided in paper or electronic form, it is vital to promptly check for accuracy to ensure the coverage provided meets what the agency requested.

Check policies within 30 days of receipt. When some agencies get backed up in policy checking, they have mailed the policies with a message like, “Here is your policy. Please understand that we have not checked it.” This approach is not suggested.

Identifying Policy Errors

Delivery Details

Just giving policies a quick “once over” will not be detailed or comprehensive enough to identify errors in the policy. A best practice is to use a checklist that is completed and saved in the system. Break down the checklist by overall issues (named insured, address, effective and expiration dates, policy number, etc.) and by type of coverage. For:

After the policies have been checked, it is equally important that they are promptly delivered to the customer, either electronically, in person, mailed, etc. In most states, the customer has a duty to read his or her policy. However, it will be difficult to hold them to that duty if the policies are still sitting on the producer’s desk. When the policies are mailed, include a cover letter encouraging the customer to read the policy and to advise the agency of any areas needing correction, if there are questions, etc. The file should note when and how the policies were delivered.

• Property coverage: verify correct coverage/forms, locations insured, limits for each location, correct list of mortgagees/loss payees, additional coverages or changes requested from the prior policy, etc.

• Liability insurance: review additional insureds, limits, requested coverage changes, etc.

• Auto policies: check symbols, list of scheduled vehicles, limits, and any unique exclusions or coverage limitations that need to be brought to the customers attention, etc.

• Umbrella: double-check that underlying insurance limits meet the minimum underlying limits required by the umbrella. Insufficient underlying limits is a major cause of E&O claims.

26 DECEMBER 15

The promptness of policy issuance varies. If the agency receives the majority of the policies, but is awaiting a “straggler,” it is best to deliver the policies on hand. Tell the customer what policies are still pending and that these will be delivered shortly after the agency receives them.

While many other tasks vie for priority, make the time for prompt policy review and delivery now to help prevent an errors-and-omissions problem later.

Curtis M. Pearsall, CPCU, AIAF, CPIA President, Pearsall Associates Inc. and Special Consultant to the Utica National E&O Program

TOMORROW'S CAREERS ARE COMING TODAY Lots of people these days are investigating new careers, thanks to the recession and the changing economic landscape.

Yahoo's HotJobs Web site targets some jobs that just might become major options for today's and tomorrow's job seekers: • Data miner. Collectors of data from the Internet for marketing purposes may become very important as more and more commerce moves online. The mean annual salary is just over $70,000; the top 10 percent can pull over $100,000.

• Environmental engineer. Climate change, fluctuating energy prices, and ecological concerns are driving a new need for people who can create clean, low-impact vehicles, buildings, and products. Salary: approximately $74,000.

• Accent reduction. Globalization means being able to communicate clearly with people from other cultures.

Trainers work with executives, customer-relations specialists, and others around the world to eliminate speaking styles that impede clarity of communication. Salary: about $64,000.

• Auto mechanic. Drivers are keeping their current vehicles longer instead of spending money on new cars, which means increased need for maintenance. And a generation of Baby Boomer mechanics is reaching retirment age. Average salary: A little over $36,000.

the We look for the best independent agents and build relationships that last the duration. We are committed to the independent agency system as the only means to deliver our products. Because of that, we work hand-inhand to help our agencies grow profitably.

Our agents set us apart.

For information about becoming a Partners Mutual Insurance Agent please contact Brian Martin at 262.432.3439; Martin.Brian@PartnersMutual.com or Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com.

DECEMBER 15 27



I realize the importance of political contributions to the future of the Professional Insurance Agents of Wisconsin and our customers. I want to be part of the process leading to success in achieving PIA’s goals in the Wisconsin Legislative arena. Please hold my contribution as a deposit in the PIA Legislative Conduit account to be used at my direction. I understand that I will be contacted in the future, by telephone, email or direct mail, to authorize the use of these contributions. I will be asked to respond with my signature on appropriate authorization forms.

Name:___________________________________________________________________________________ (Please Print)

Primary Employer:________________________________________________________________________ (required to disburse any contributions greater than $100, by Wisconsin Law)

Business Address:_____________________________ City:_____________ State:_______ Zip:__________ Home address:________________________________ City:____________ State:_______ Zip:___________ Business phone:______________________________ Home phone:_________________________________ Email address:_____________________________________ Contribution amount:____________________ Credit Card Payment Name on card:_________________________________ Signature:__________________________________ Amount:______________ Card Number:_________________________________ Exp. Date:____________ Billing address on card:_____________________________________________________________________ City

State

Zip

Contributions are NOT tax deductible for income tax purposes. Donations must be made from Personal accounts only.

NO Corporate or Business Checks or Credit Cards accepted Return to: PIAW Legislative Conduit Account PIA of Wisconsin, Inc. ● 6401 Odana Rd. ● Madison, WI 53719 Fax: 608-274-8195 ● www.piaw.org ● Email: rvonhaden@piaw.org

28 DECEMBER 15

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DECEMBER 15 29

Why Start A New Year Out Strong But Not End It that Way?

By John Graham

Every year, we do it on the same day at the same time. The instant the calendar changes from the old year to the new one, we convince ourselves that this year will be different. We’re going to do everything we didn’t do in the past. It’s such a predictable ritual that it’s become part of our DNA.

Although we want the New Year to be different, what happens next is also predictable: our resolve disappears faster than a pizza on Friday night.

the Apple Watch. But Noor Naseer, Director of Digital Innovations, Mobile at Centro, doesn’t agree.

“While consumers may not know exactly what they uniquely want or need from these tiny screens, they similarly didn’t know a decade ago that they would be waking up and going to bed (and going to the bathroom) with smartphones continuously by their side,” she writes in Mobile Marketing Daily.

Sure, some things fail and others do work out well, but it’s not because of knee-jerk negativism; it’s because people put themselves to the test. They tried.

Good faith efforts rarely work, since “stuff” gets in our way and throws us off course. How to end the year with the same drive and resolve that we started with is the big question.

Here are seven actions that can help:

1. Pull the defensive plug.

For example, many insurance agents are convinced that consumers want the personal attention and the choices a local, independent agent gives them.

While such thinking is understandable, it’s also a defense that inhibits coming up innovative responses to the loss of their bread-and-butter auto insurance business to online sales. From all indications, that trend is increasing and expanding into homeowners and small business insurance. It’s true everywhere. If we want to be open to new ideas, then pulling the defensive plug is one place to start.

2. Can the knee-jerk negativism.

No Apple product has been as consistently panned as has 30 DECEMBER 15

3. Eliminate excuses.

When the company president pointed out the steady decline in consumer equipment sales over the last several years, the sales manager explained it was due to market saturation. Yet, when the issue was analyzed more carefully, the facts were quite different. xcuses may make us feel better, but they also blind E us to new opportunities. Once they’re out of the way, things can improve.

4. Question your customer assumptions.

“We know our customers and what they want” are arguably the most dangerous words in business. Yet, many companies continue to base marketing and sales decisions on anecdotal evidence that’s unreliable at best.

Why would a company drag its feet on gathering and analyzing customer data so it can learn everything about their preferences and buying behavior? In some cases it’s just plain old lethargy. But, more often than not companies can behave like individuals: knowledge upsets the status quo and puts new demands on the organization to embrace change. It’s much easier to say, “We know what our customers want.”

shirt with a too tight collar is a huge pain, and me loosen the tie and unbutton the collar the moment they can.

Finally, there’s a solution. Based on fabric technology, Van Huesen has come up with an answer to the “hot under the collar” problem. Its new “flex collar” expands one-half inch in trying moments.

And then there’s the inconvenience and the time it takes to get your car’s oil changed. Soon it will be over in only 90 seconds with Castrol’s Nextcel, which will be integrated into the car’s design.

Both point out that there is plenty of room for innovation in solving those small, but irritating problems.

7. Tie it all together.

5. Dive into digital.

Many people think that buying life insurance is only slightly less exciting than having a root canal, so it’s not surprising that it’s worth the effort to avoid both.

To attract today’s younger consumers, life insurance companies now offer “simplified issue” policies that are delivered in two hours. Applicants answer a few health-related questions and there’s no physical exam. Policies with face amounts up to $1 million are available. Even though premiums may be higher, the convenience may be worth it.

What makes it possible? Using their extensive databases, insurance companies use predictive modeling for the underwriting, cutting out stacks of slow moving paperwork. It’s not just faster; it’s also more accurate. Even though premiums are somewhat higher, the ease and speed are appealing to many consumers.

If there is a lesson to learn from Amazon, it’s the enormous benefit of tying everything together for customers. Whatever it is, the chances are that it’s available on Amazon or will be soon enough. And everything comes with a guarantee, no-hassle returns, reliable recommendations, and free delivery with its Prime program. It’s the epitome of one-stop shopping for many consumers.

Tying things together is what customers want. Companies that can help them do that succeed.

Too many salespeople believe their own baloney. It’s called, “Don’t worry. It’ll get better. I’ll make it up.”

Although they believe it, tomorrow never comes.

A new year is no reason to assume that it will somehow or other be better than the one just ending. Whether it’s a company or an individual, it takes the right strategy to make sure the end is even better than the beginning.

6. Activate innovation.

Customers not only want innovation, but they’re willing to pay for it. According to Lab42’s Innovation Study, 75% of those surveyed were willing to “pay a premium for innovation,” including electronics, automotive, restaurants, clothing, and grocery store items.

John Graham of GrahamComm is a marketing and sales strategistconsultant and business writer. He publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com, 617-774-9759 or johnrgraham.com.

The opportunities are everywhere. For example, wearing a

im

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A partnership to help build your agency’s book of business Call: 715-797-2432

Branding | Marketing Strategy Client Communication | Custom Content Training and Analysis

DECEMBER 15 31

here when it matters most there when it matters most there when it matters most there when i

Competitive

In today’s crowded marketplace, Sheboygan Falls remains highly competitive in price and product offering.

Price - Personal and commercial lines rates consistently among the most competitive in the state.

Product – Superior products with enhanced coverages.

And Sheboygan Falls agencies benefit from a total compensation package that’s one of the best in the industry.

To learn more visit www.sheboyganfallsinsurance.com or call Connie Jones at 800-242-7698 ext. 2800

Remaining competitive in price, product and agency compensation… another way Sheboygan Falls is “There When It Matters Most.”

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you and your employees have access to a variety of highquality, competitively priced insurance plans.

Plans available include: > Basic Term Life** > Voluntary Term Life > Dependent Term Life > Hospital Indemnity > Long Term Disability > Short Term Disability > Business Overhead Expense > Accidental Death & Dismemberment

PIA SERVICES GROUP INSURANCE FUND

*PIA National membership, when required, must be current at all times. **Only available if 100% employer paid and if the employer and 100% of the employees enroll.

No medical underwriting necessary up to guaranteed issue limits.

For additional information about PIA Trust Insurance Plans, please contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759. Additional information is also available on-line at www.piatrust.com.

Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable.

Underwritten by Unimerica Insurance Company, Portland, ME. Administered by Lockton Risk Services.

32 DECEMBER 15

BECOME A BWO ASSOCIATE

proudly building relationships throughout Wisconsin Find out why many of our industry’s most reputable companies have partnered with BWO, an insurance group proudly serving all of Wisconsin. We are continually investing in our independent agents to better serve you and your clients, NO MATTER WHERE YOU ARE LOCATED. We recognize that our mutual success is based on how hard we are working for you – providing the tools, products and support to help you succeed.

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INSURANCE GROUP, LLC

Contact: Tom Budzisz at tom@bwoinsurance.com 414-768-8100 • 800-924-6155 • Fax: 414-768-8110 2111 E. Rawson Ave., Oak Creek, WI 53154-0065

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DECEMBER 15 33

PIA — A LEGISLATIVE POWERHOUSE

Once again, PIA was invited to the Governor’s office for the signing of two pieces of legislation into law. SB 286 (regarding liability for dog bites) and AB129 (regarding structured settlements) became law as PIA President Rick Clements, 7th from left in back row behind the Governor, and Ron Von Haden, 4th from left, witnessed the signing. PIA and our industry partners were very instrumental in passage of both these new laws. Our lobbying team is a respected and dedicated force as they work for our members and our industry.

YOUNG PROFESSIONALS COMMITTEE

PIA’s Young Professionals Committee is a very active group. They are shown here discussing plans for their 2016 events, including the hugely successful Scholarship Golf Outing. The golf outing enables YPC to give $20,000 or more annually in scholarships to students planning to enter the insurance industry. PIA is proud of the effort from these young professionals.

34 DECEMBER 15

WE DON’T TAKE A BACKSEAT

TO INNOVATION

WE UNDERSTAND WHAT YOUR CLIENTS NEED AND GO BEYOND THE EXPECTED® TO GIVE IT TO THEM EQUIPMENT BREAKDOWN It’s easy for homeowners to take their heating, cooling, and electricity for granted. And if this equipment breaks down, many insureds assume that they’re already covered with insurance—but that’s not always the case. Should a breakdown happen, we have the coverage your clients need for just pennies a day.

CROSSROADS If you know someone with a less-than-perfect driving record due to serious auto accidents, multiple claims, or motor vehicle violations, we can help keep them in the driver’s seat. A Crossroads auto policy from Pekin Insurance® will give your insureds reliable coverage at a reasonable price and get them back on the road driving worry-free.

WATER & SEWER LINE BREAKAGE/ WATER BACK-UP OF SEWERS & DRAINS Should the unexpected happen, we will cover costs associated with leaks or breaks to water and sewer lines caused by normal wear and usage or water back-up through sewers or drains—valuable coverage at an affordable price.

Our pets are just like family. Offering companionship, unconditional love, and loyalty. Pet Insurance can easily be added to any homeowners policy so your policyholders won’t have to worry about their pet’s health again. Protect your clients’ four-legged friends, both cats and dogs, against accidental injury and illness at an affordable cost.

PET INSURANCE

2505 Court Street • Pekin, Illinois 61558 • 800-322-0160, Extension 2394

AUTO • HOME • BUSINESS • LIFE • HEALTH

WWW.PEKININSURANCE.COM

DECEMBER 15 35

Get On the Offensive in the Fight against Direct Writers. . .

Six steps to add to your marketing plan

by Matt Masiello, EVP and COO SIAA Inc.

It seems many professional, independent insurance agencies struggle to compete with captives and direct writers. That makes it critical for agencies to have a good marketing strategy. But, how do you make your marketing plans really work without breaking the bank? There is a way.

Start with really getting to know your target market, your competition and your brand. Remember the SWOT analysis? It has been used for years to evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a project or a business venture.

Understand strengths, weaknesses

You can take a page from SWOT to determine the best marketing strategy to combat direct writers. Start by asking yourself these questions about how direct writers stack up against your agency:

tomers?

• Are they better sales people?

for by offering a wide array of policies beyond just proper-

• Do they offer more value to their customers?

• Is their staff better trained?

• Do they have better products?

• Do they have more products?

• Do they work harder?

• Are they more involved in your community?

If you answered “Yes” to any of these, then you might have a problem. You should answer with a resounding “No” across the board.

36 DECEMBER 15

Of course, direct writers do have a few things going for them. No. 1 is branding. Some of these national brands touch our customers five to eight times a day with their advertising. How often does your marketing plan touch your cus-

They also are cross-selling machines. What they lack in providing customers with a choice of companies, they make up ty/casualty. Cross selling breeds more policies per customer, which is why, according to my own research, many direct writers have two-to-three times more policies per household than independent agents.

After you look at your weaknesses compared to the national direct writers, you should turn to your strengths to lay the groundwork for developing a marketing plan that will work.

What are the strengths of an independent agent? You have great products, choices with more companies and a local presence.

Leverage your strengths

keep that insured when the competition comes knocking.

Leverage your strengths and maximize your tool kit. First, think about your brand. You’ll never win the “pay-per-click” battle or go toe-to-toe with the advertising spend of the national brands. However, you can leverage your community involvement and build your own brand in your community.

Here are some tools you can use:

Think you don’t have time to do this? Think again. You are only going to follow up on claims requiring contact from the company. Those should be minimal. Don’t lose your business to another agency that has established this practice. Take the time to provide service when your insureds expect you to— when they have a claim.

Use technology to increase awareness with your customers and prospects. Many agents simply don’t know the basic marketing tools that may be available through their agency management system. Reach out to your provider and you may be surprised at what you have. If it’s still not enough, subscribe to a third-party marketing system.

Also, use social networking, get a mobile application, or “app,” and send electronic newsletters. When you do, treat prospects and lost customers like they are clients. This helps you build a local brand and it significantly increases the number of impressions that you’ll make on customers and prospects throughout the year.

Maximize referrals and cross selling. Are the direct writers your competition, or are you just unable to unseat them on new business because of all of their policies per household?

Bulletproof your book of business. Make sure you have all of the p/c products, and offer individual life and health products as well. Remember, even if you don’t have the resources to do this internally, it does not cost anything to use a thirdparty partner to help establish a life or benefits division. Don’t send these policies down the street. That keeps you open for attack down the road.

Leverage company representation and national branding. Do you have brand names on your shelf? With channel conflicts collapsing and insurance companies embracing all forms of distribution, you too, can leverage national branding. In many instances, you may even represent the same brand as your direct-writer competition. This comes back to choices—offering value and coverage at the right price with a few brand names thrown in for those clients looking for name/brand recognition. If you don’t have these products or brands, look to join an agency group. Choose wisely; do your research and promote your brands.

Market through claims. Determine from each of your companies what the response time is for a particular claim (e.g., fire loss is seen the next day; collision loss is seen within three days). Make a note to contact the insured one day after the expected company contact. If the company has contacted the insured, you look thoughtful for following up with the insured. If the company has not contacted the insured, you look thoughtful for following up with the insured. It’s a winwin for you. When insureds are happy, they will give you more business or refer you to their friends. You’re more apt to

Recognize that direct mail is not dead. I prefer direct mail because email has become so cluttered and regulated. One mailing will not make a difference, but consistency and staying in front of prospects will. Send a mailing to lost customers and ask for referrals from existing customers. Since postage can be expensive, I suggest you target personal-lines customers in areas in which you already have success in writing multipolicy business. For commercial lines, know the appetite of your insurance companies and let those businesses know that you can help them. By the way, your carriers want to help, too.

Tap other local businesses. Business insurance is becoming the lifeblood of the local independent agency. Develop a plan to target other businesses in your town. Plus, small business is an underserved market ignored by larger agencies. When they do write it, it’s in a service center and there is no cross selling to the owners. When you write it, you can get the personal lines, too. What about the life and benefits? In short, you can take a small business account and develop five, six or more policies.

Become an overall resource for other businesses in your community. Do they know about their exposure for data breach?

What about employment practices liability insurance? Solve their problems, earn their loyalty, keep their business and get their referrals.

It’s affordable Very little of what I describe in these marketing strategies involves significant financial investment. However, these strategies require using the tools available to you, and working smarter and more efficiently.

Professional, independent insurance agencies have a bright future if they change how they operate, leverage their strengths and maximize their tool kit to build a local brand in their community. In many ways, the steps mentioned above all focus on one thing—your agency becoming more customer-centric, which is, after all, the best marketing plan.

Masiello is executive vice president and COO of the Strategic Insurance Agency Alliance and CEO of the SAN Group. He can be reached at mattm@siaa.net.

—Reprinted with permission from PIA Management Services Inc.—

DECEMBER 15 37

PROFESSIONAL INSURANCE AGENTS OF WISCONSIN, INC. OFFICERS

DIRECTORS

Mr. Rick Clements, LUTCF, MDRT President Clements Ins. Agency, Inc. 317 N. 6th St. Wausau, WI 54402 Phone 715-842-1664 Fax 715-848-3337 rick@clementsagency.com

Mr. Thomas Budzisz BWO Insurance Group, LLC 2111 E Rawson Ave. Oak Creek, WI 53154 Phone 414-768-8100 Fax 414-768-8110 tom@bwoinsurance.com

Mr. Michael Keener, CIC Keener Insurance Solutions, LLC W 175 N11081 Stonewood Dr Ste 105 Germantown, WI Phone 262-293-9144 Fax 262-293-9254 michael@keenersolutions.com

Mr. Brian MacGillis, CPIA Vice President MacGillis Agency, Inc. W3934 County Highway H PO Box 100 Fredonia, WI 53021-0100 Phone 262-790-0000 Fax 262-790-0004 brian@macgillisinsurance.com

Mr. Jeremy Cordova, CIC Cordova Agency, Inc. 716 E 2nd St. Merrill, WI Phone 715-536-9576 Fax 715-539-3349 jeremy.cordova@cordovaagency.com

Mr. John W. Klinzing, CIC Affiliated Ins. Agencies of WI, LLC 3830 Atwood Ave. Madison, WI 53714 Phone 608-310-3924 Fax 608-441-8787 johnk@affiliatedllc.com

Ms. Sandy L. Hardrath, CIC, CPIA Ansay & Associates 4712 Expo Dr. Manitowoc, WI 54220 Phone 920-370-4283 Fax 920-682-7799 Sandy.Hardrath@Ansay.com

Mr. Dennis Kuhnke, CIC, CPIA PIAW National Director Robertson Ryan & Associates Inc. 330 E Kilbourn Ave. Suite 650 Milwaukee, WI 53202 414-271-1561 Fax 414-271-3012 dkuhnke@robertsonryan.com

Ms. Jodi Cordes, CIC, CRM Treasurer A.F. Glass Insurance Center P.O. Box 1149 Lake Geneva, WI 53147 Phone 262-248-5555 Fax 262-248-5544 jcordes@glassinsurancecenter.com

Ms. LouAnn Herriges, CIC, CISR Anderson's Insurance Associates 17500 W. Liberty Lane New Berlin, WI 53151 Phone 262-789-8500 Fax 262-754-6038 louannh@iaanetwork.com

PIA of Wisconsin, Inc. 6401 Odana Road Madison WI 53719 Phone: 608-274-8188 Toll Free: 800-261-7429 Fax: 608-274-8195 Toll Free Fax: 866-203-7461 www.piaw.org Ronald Von Haden, CIC Executive Vice President rvonhaden@piaw.org Darcy Brown, CPIA Member Benefits Coordinator dbrown@piaw.org Heather Falk, CISR Bookkeeping hfalk@piaw.org Mandy Penn Executive Assistant mpenn@piaw.org Becca Prestbroten Administrative Assistant bprestbroten@piaw.org Brenda Steinbach Education & Convention Director bsteinbach@piaw.org

8

CISR PERSONAL RESIDENTIAL Middleton (7 WI CE)

8-10

CIC PERSONAL LINES Middleton (20 WI CE)

20-21

CIC JAMES K. RUBLE GRADUATE SEMINAR Milwaukee (16 WI CE, 4 of 16 are optional Ethics)

3-5

7th Annual Winter Get-Away Minocqua (9 hours of education, 6 WI CE)

17, 18

CISR ELEMENTS OF RISK MANAGEMENT Waukesha, Madison (7 WI CE)

24-26

CIC COMMERCIAL PROPERTY Madison (20 WI CE)

CISR COMMERCIAL CASUALTY 1 Green Bay (7 WI CE) CIC LIFE & HEALTH Green Bay (20 WI CE)

16

CISR COMMERCIAL CASUALTY 1 Green Bay (7 WI CE)

12

CPIA 1 POSITION FOR SUCCESS Waukesha (7 WI CE)

13

CISR COMMERCIAL CASUALTY 1 Waukesha (7 WI CE)

14

HOT TOPIC/WILLIAM T HOLD Rothschild (7 WI CE, 3 are Ethics)

April 2016

March 2016

8 9-11

18

CISR COMMERCIAL CASUALTY 2 Eau Claire (7 WI CE)

19-21

CIC COMMERCIAL CASUALTY Eau Claire (20 WI CE)

16

CISR LIFE & HEALTH ESSENTIALS Waukesha (7 WI CE)

17-18

CIC JAMES K. RUBLE GRADUATE SEMINAR Madison (16 WI CE, 4 of 16 are optional Ethics)

19

CISR AGENCY OPERATIONS Madison (7 WI CE, 1 is Ethics)

38 DECEMBER 15

January 2016

May 2016

Coming Events

February 2016

December 2015

Mr. Matt Cranney, CIC, CRM Secretary M3 Insurance Solutions, Inc. 3133 W Beltline Hwy Madison, WI 53713 Phone 608-273-0655 Fax 608-273-7783 matt.cranney@m3ins.com

Mr. Sean M. Paterson, CIC Allied Insurance Centers, Inc. 12750 W. North Ave. Brookfield, WI 53005 Phone 262-782-5373 Fax 262-782-6327 spaterson@alliedinsurancecenters.com

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DECEMBER 15 39

6401 Odana Road Madison, WI 53719 Change Service Requested

Professional Insurance Agents of Wisconsin, Inc. 6401 Odana Road • Madison, WI 53719 (608) 274-8188 • (800) 261-PIAW • FAX (608) 274-8195 • TOLL FREE FAX: (866) 203-7461 www.piaw.org

MEMBERSHIP APPLICATION Agency Name_______________________________________________________________________________________________________________ Street Address_______________________________________________ PO Box_______________________________________________________ City, State, Zip_______________________________________________ County_______________________________________________________ Phone_______________________________________________________ FAX_________________________________________________________ E-mail Address_______________________________________________ Website Address______________________________________________

Primary Contact Information:

The Primary Contact will receive a copy of the Wisconsin Professional Agent magazine and all mailings from PIA State and National. The Primary Contact has voting rights at PIA national meetings. Primary Contact and all agency staff have voting rights at PIA of Wisconsin meetings.

Name & Designation

DOB

Gender

Employment Status

o o

Male

o

Corporation

Female

o o

Part-time

Licensed Owner

o

Licensed Producer

Magazine

Nat’l Voting

Privilege

INCL INCL

Agency Information: Agency Type:o Sole Owner

o

Top 3 P&C Companies (list in order)

Partnership

Other Association affiliated with_____________________________

1)__________________________ 2)__________________________ 3)____________________________

Which Agency Management System are you using____________________ E&O Carrier_______________________________________Exp. Date______________ Annual P&C Prem. Vol._____________________________

Calculate Membership Amount Due:

Part-time employees count as one-half. If count ends in half, drop half. # Owners_________+ # Producers_________+ # Licensed staff_________+ # Unlicensed staff_________= Total Agency Size_______________ DUES SCHEDULE

Total Agency Size $Amount Total Agency Size $ Amount 1 385 16 1025 2 430 17 1070 3 475 18 1110 4 520 19 1155 5 565 20 1185 6 605 21 1230 7 655 22 1270 8 695 23 1320 9 735 24 1360 10 775 25 1405 11 820 26 1445 12 865 27 1490 13 900 28 1530 14 940 29 1575

15 985 30 & Over 1610 I certify that the information on this application is true and correct.

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Card No._________________________________________________________ Exp. Date_________________________________________________________ Name as it appears on card:__________________________________________________ Billing address if different from above: __________________________________________________________________ __________________________________________________________________ Payments to PIA are not deductible as charitable contributions for federal income tax purposes. However, they may be deductible under the provisions of the Internal Revenue Code as a business expense.