Primary Agent - April 2011 - MD Edition

MARYLAND

INTHISISSUE: ______________ Ins & outs of flood zones Legislative point, counterpoint

We’re celebrating our 100th year by planning for our next 100 years.

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

Valley Forge Service Branch: 800.333.3622 | Home Office: Des Moines, IA

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

Insurance for Restaurants Family Style, Pizza Shops, Take-Out, Fast Food, Donut Shops, Diners, Cafes, Bagel Stores, Franchises

Brokers Surplus Agency wants to quote your restaurants!

We have a terrific BOP program that’s packed with the coverages you need.

New Ventures eligible!

Liquor liability coverage available!

Contact us by phone or email today!

(215) 443-9900

Brokers Surplus Agency P.O. Box 2849 Warminster, PA 18974

Dennis Marsaglia, Ext. 230 dennis@brokerssurplusagency.com

Evelyn Frisch, Ext. 227 evelyn@brokerssurplusagency.com

12

Contents PRIMARY AGENT MAGAZINE

Ins & outs of flood zones

20

Securing an accurate flood zone determination has become one of the major challenges for insurance producers and their clients. Flood-insurance expert Rita Hollada explains why discrepancies occur and how they can be addressed.

Page 12

Legislative point, counterpoint The NFIP is under increasing attack by Congress. Seen as a money pit, the program faces a rocky future. IA&B outlines a few of the recent legislative attacks and responds with implications.

Page 20

Mission Statement Primary Agent delivers ideas to help Insurance Agents & Brokers’ members negotiate their unique position as guardians of trust between insurance consumers and companies while facing the challenges of maintaining a small business. Primary Agent also supports IA&B’s mission to preserve and advocate the American Agency System.

Get social with IA&B

In every issue 4 5 6 8 10

Chair of the Board’s Message Member FAQ State News Coverage Corner Glance at Events

19 22 24 24 24

IA&B Partners H.R. Headquarters Advertisers Index Classified Ads Last & Least

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two months prior to publication. Advertising rates furnished upon request.

Address inquiries to: Primary Agent Editor Mechanicsburg, PA 17055-0763 Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347 Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2011-4) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

Copyright 2011. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

“No bond, no job. No job, no commission.”

We know times in the construction business are tough and that even the best of clients are having problems. That’s why when your client needs a bond Commonwealth Surety should be the first call you make. With our “A” Rated Treasury Listed bonds we can provide the bond you never thought you could get. Why shop around, get buried with paperwork and hear excuses? If we can’t write the bond nobody can! We specialize in bonding those “less than perfect” clients, without cash collateral or Letters of Credit, and we’ll get you that “YES” that you want to hear in 24 hours or less. We’ve been writing bonds for small and midsized companies for over 20 years.

No bond is too big or too small. And by the way, we’ll even write that bond for your perfect clients. Call now and get results not excuses.

TOLL FREE: 1-800-886-7760 FAX TOLL FREE: 1-800-566-7761

The place for the hard-to-place Bonds

Board of Directors Officers David Rosenkilde, CIC Chair of the Board Reisterstown, Md. Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P Vice Chair of the Board West Chester, Pa.

David B. Rosenkilde Sr., CIC

Chair of the Board’s M

E

S

S

A

G

E

Kathleen M. Glattly, ChFC, CLU, CPCU Immediate Past Chair of the Board Factoryville, Pa.

April showers bring May … insurance headaches

Members Joyce M. Bailey, CIC, CRM, CPIW Newark, Del. Norman F. Basso, CPCU York, Pa. Vincent D. “Chip” Boylan Jr., CPCU Rockville, Md. Henry “Butch” Bradley, Jr. Crofton, Md. Timothy P. Burris Thompsontown, Pa. John T. “Chip” Colwell Jr., CIC Corry, Pa.

Hear that? It’s a collective sigh of relief that we’ve made it through another winter — this one colder and, in some areas, snowier than most. Signs of spring are springing up everywhere.

Of course along with those crocuses and longer days come snowmelts and rain storms. And that, in turn, means spring floods.

This issue of Primary Agent magazine takes a thorough look at the National Flood Insurance Program. Flood insurance expert Rita Hollada penned a feature on flood zone determination — a slippery slope for many of us. And IA&B’s government relations team contributed a piece on the program’s future.

G. Greg Gunn, CIC Lemoyne, Pa.

If you’re looking for additional information, I encourage you to consider IA&B’s new on-demand flood webinar. It meshes the quality of IA&B education with the convenience of on-demand technology. For more, see page 13. Of course IA&B’s website is also an invaluable resource. Log on to www.iabgroup.com, select “Coverages” and then choose “Flood.”

Diana M. Hornung-Momot, ACSR Wilmington, Del.

Until next time,

Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa.

Dave

N. Lee Dotson, CIC, AAI Wilmington, Del. John L. Frankenfield Telford, Pa.

Robert S. Klinger, LUTCF Germantown, Md. Michael F. McGroarty Sr. Pittsburgh, Pa. Ann Gallen Moll, CIC Reading, Pa. Scott C. Rogers, CPIA York, Pa. Susan A. Sallada, CIC** Ft. Washington, Pa. David B. Wasson Sr., CIC State College, Pa. James M. Watkins* Dover, Del. King W. “Kip” White, LUTCF Fallston, Md. * IIABA National Director ** PIA National Director

[4]

Member FAQ QUESTION: I provide loss control, risk management and safety consulting services.

Do I need to use a disclaimer for those activities? If so, where can I find a sample?

ANSWER: Absolutely. It is likely that your E&O carrier, whom you hopefully have made aware of your activities, has advised you to do so. In short, the disclaimer is meant to narrow the extent of your services and protect you from your customers claiming that you did not deliver on your promises.

What should the disclaimer state? ◗ The purpose of this type of disclaimer is mainly to state that the intent of the work performed is not to identify all hazards, but

control, risk management and safety consulting activities. Log on to www.iabgroup.com, go to Errors & Omissions, General Resources, “Disclaimer for loss control, risk management and safety consulting services (SAMPLE).”

to assist the customer in the identification and control of hazards, as well as to assist with loss control efforts and implementation and maintenance of a safety program.

Where should the disclaimer be placed? ◗ Contracts, inspection reports and marketing materials should all include disclaimers.

Where to find a sample disclaimer? ◗ IA&B has posted a sample disclaimer specifically for loss

DO YOU HAVE A QUESTION? E-mail it to us at iab@iabgroup.com.

Please use “Primary Agent FAQ” in the subject line of your message.

You can also fax your question to (717) 795-8347. We look forward to answering your questions!

3

1/18/11 11:29:18 AM

State News Primary Agent | April 2011

Getting attention in Annapolis Being heard can be a challenge for anyone trying to get a message through to state legislators. It takes a collectively strong voice with a clear, consistent and sustained message. For independent insurance agents, AgentPAC of Maryland is your voice in Annapolis.

IA&B’s government affairs staff has a voice in the Capitol, but it is the financial support of AgentPAC — your state political action committee — that allows them to speak loudly on your behalf.

The 2011 AgentPAC fundraising campaign has been launched with a new look and a new commitment to highlight the IA&B advocacy efforts that may directly impact your job. We appreciate the many generous donations already received. However, the campaign has a long way to go to reach its annual goal of $12,500, and we have added the elite President’s Club for members contributing $1,000 or more.

Learn more and contribute: www.iabgroup.com/AgentPAC

[6]

New take on referral fees means new member resource Members can pay referral fees to unlicensed persons sending business their way as long as they do not create a rebating situation or an otherwise unfair insurance practice.

After discussions with the Maryland Insurance Administration (MIA), IA&B has updated its website to reflect the MIA’s current position on referral fees. More flexible than in the past, the MIA will view certain referral arrangements as acceptable.

For a complete review of the steps to take to ensure compliance, review IA&B’s resource. Naturally, the ability to pay referral fees still does not extend to any insurance written in the context of a residential real estate loan and settlement.

So don’t set up anything with realtors, mortgage brokers or lenders!

Review the resource: www.iabgroup.com/md/referral_fees

Authority to sign insurance documents: new resource Do you discuss insurance issues with company personnel who are not officers? Any changes made to the policy could later be challenged based on the individual’s authority to request them.

To further protect agents’ E&O, IA&B designed a form — to be signed by an officer of the company (representing the named insured) — that grants authority to an individual to discuss coverages and make policy changes as needed. In addition, for members who cannot provide the form in person, IA&B now offers a sample letter to accompany it.

Read more and access resources: www.iabgroup.com/md/cl_granting_ authority

Outstanding CSR award entries due May 1

Amended license needed to sell crop in Delaware

Outstanding customer service reflects outstanding agencies. As part of our mission to “drive members to distinction,” IA&B encourages members to recognize an exceptional frontline employee by nominating her/him for the 2011 Outstanding CSR of the Year Award. The award is sponsored by the National Alliance for Insurance Education & Research, and IA&B is now accepting nominations and candidate entries.

Producers with a non-resident property or a property/casualty license in Delaware must amend their existing license to add the new crop line of authority. This ensures their continued ability to sell crop insurance in The First State.

The award is open to anyone, regardless of affiliation or designation, and candidates may nominate themselves. The only requirement is that the candidate be an insurance CSR or have primary duties in customer service. Upon receipt of a nomination, IA&B will mail the candidate the necessary materials to complete the entry process.

Read more: http://delawareinsurance.gov/ departments/licensing/ WebPageCropNotice.pdf

The deadline for submission of the entry materials (including essay) is May 1. Winners will be announced this summer.

IA&B members rally in Washington, D. C.

Download a nomination form: www.iabgroup.com/awards/out_csr

Nearly a dozen IA&B of Maryland members on March 31 congregated in Washington, D.C. as part of the PIA Federal Legislative Summit. On their agenda? Communicating independent agents’ opinions on health care reform, optional federal charter, flood insurance and the NARAB Reform Act to a host of freshman legislators and a core group of incumbents.

Look for additional highlights from the conference in Agent Headlines and future issues of Primary Agent magazine.

[7]

No fee will be charged for the amended license, but the requests were due by March 31, 2011, according to the Delaware Department of Insurance.

Access form to amend license: http://delawareinsurance.gov/ departments/licensing/New2C.pdf

In memoriam:

Kevin Brady

Kevin P. Brady, previous owner and CEO and then chairman of KT&D, Inc. in Wilmington, Del., passed away Feb. 11. The former president of the Professional Insurance Agents Association of Pennsylvania, Maryland and Delaware will be remembered for his contributions to the association — and to the industry.

Coverage Primary Agent | April 2011

CORNER

IS ARSON FIRE OR VANDALISM?

JERRY MILTON, CIC Jerry M. Milton teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He is also the education consultant for IA&B, working with CISR, CIC and continuing education programs.

The standard ISO and most insurers’, Homeowners’ and Dwelling forms exclude loss “caused by vandalism or malicious mischief or breakage of glass and safety glazing materials more than 30 consecutive days immediately before the loss.” The ISO Commercial Property forms exclude vandalism if the building has been vacant for 60 consecutive days prior to the loss.

intentional, malicious, wanton or reckless) and address a certain type of result (destruction, defacement or damage) to property.

In Bear River Mutual Insurance Company v.

Williams, the Utah Court of Appeals held that the policy language excluded losses caused by vandalism or malicious mischief regardless of the means used to inflict those losses, even if the loss was characterized as arson.

The court noted that damage inflicted with spray paint is not excluded from the definition of vandalism because it could separately be categorized as graffiti.

The question before many of our courts today is, “Is arson considered vandalism?” The answer to this question depends upon the jurisdiction in which the loss occurred.

However, it appears the courts are moving toward a majority view that losses caused by arson are a form of vandalism.

One of the first decisions to address this issue was American Mutual Fire Insurance Company v.

Durrence. In this case, which was adjudicated in 1989, the Georgia courts stated:

In Battishill v. Farmers Alliance Insurance Company, the New Mexico Supreme Court concluded that arson is a form of vandalism. The court noted that the definitions of arson and vandalism specify a certain state of mind (willful,

Although there appears to be no clearly controlling case or stature under Georgia contract law, a common sense interpretation of the

[8]

insurance contract’s ‘Vandalism or Malicious Mischief’ provision, which contains the ‘vacancy’ exclusion, suggests that it would apply to a fire set in a vacant house by an unknown arsonist or vandal.

Many other cases from other jurisdictions are similar to the ones stated above.

For example: ◗ The court recognized conflicting case law on the issue but agreed that the ordinary use of the word ‘vandalism’ would include arson (Brinker v. Guiffrida, Pa., 1985). ◗ A common sense interpretation of the vandalism or malicious mischief provision would apply to an arson fire (United Capital Corp. v. Travelers Indemnity Co. of Illinois, N.Y., 2002). ◗ Willfully and intentionally damaging a dwelling by setting it on fire is certainly

When it comes to

damaging the dwelling by vandalism as well as arson (Estes v. St. Paul Fire & Marine Ins. Co., Kan., 1999).

Umbrella or Equipment Breakdown Coverage We have fast, competitive quotes for you, with the service you deserve.

◗ The ordinary meaning of vandalism includes arson (Potomac Ins. Company of Illinois v. NCUA, Ill.).

Although the trend in most jurisdictions is to rule that arson is vandalism, there are some exceptions.

One such case occurred in Maryland.

Mutual Fire Insurance Company of Calvert County denied coverage for a fire loss to a dwelling. One of the reasons for their denial was the house had been vacant for several months, with no utility service, and arson was considered a form of vandalism, which was specifically excluded because the house had been vacant for 30 days prior to the loss.

The trial court determined that arson was not vandalism under the policy language. In Mutual Fire Insurance Company of Calvert County v. Corwin L. Ackerman, et al., the court noted that the personal property section of the policy listed fire and vandalism separately, and a reasonable layperson reading only the coverage on the dwelling could infer that vandalism included intentionally set fires. But looking at the policy as a whole, the distinction between fire and vandalism with regard to personal property could cause a reasonably prudent layperson to conclude that these two perils were separate.

However, the appellate court vacated the circuit court’s summary judgment and remanded this case for further proceedings.

I don’t think I’m about to tell you something you don’t already know – there are a lot of vacant buildings out there.

• Designed for Condos, Co-ops, Townhouses, Apartments, HOAs, PUDs, Habitational Accounts, and Lessor Risk Only Exposures • Limits from $1 Million to $50 MIllion • Coverage Includes Excess, G.L., D&O, & Auto • Minimum premiums as low as $350 For additional information or quotes call:

888.548.2465 And ask for a New Business Underwriter or email info@umbrellaprogram.com

Visit our website at www.umbrellaprogram.com A subsidiary of

JGS INSURANCE

[9]

Service is our specialty; protecting you is our mission ®

MUTUAL BENEFIT GROUP Huntingdon, Pennsylvania www.mutualbenefitgroup.com

Mettle you can count on.

You don’t just wear it; you earn it.

“Mutual Benefit has consistently istently hree finished among the top three mpany carriers on the IA&B Company e 2004.

Satisfaction Survey since Agents recognize us as a or carrier that reaches out for agent input on technologyy goals and provides them with real time opportunities.”

- Jeff Smeltzer er MBG Systems Architect ct

Start with MBG, and you’llll finish with a winner.

Y’all take care!

®

Glance at Events A P R I L

C A L E N D A R

Date

Topic

Location

5

CISR-Personal Auto Course

Salisbury, Md.

5-7

P&C Licensing Study Course

Philadelphia, Pa.

6-9

CIC-Life & Health Institute

Lehigh Valley, Pa.

7

CISR-Agency Operations Course

Baltimore, Md.

12

CISR-Commercial Property Course

Erie, Pa.

CPIA-Module 1

Mechanicsburg, Pa.

William T. Hold Seminar

Pittsburgh, Pa.

CPIA-Module 2

Mechanicsburg, Pa.

14

CPIA-Module 3

Mechanicsburg, Pa.

18-20

James K. Ruble Graduate Seminar

Pittsburgh, Pa.

19

William T. Hold Seminar

Mechanicsburg, Pa.

20

CISR-Commercial Property Course

Wilkes-Barre, Pa.

Dynamics of Service

Columbia, Md.

CISR-Commercial Property Course

Reading, Pa.

10 Ways to Get Sued (E&O) Seminar

Pittsburgh, Pa.

26

CISR-Commercial Property Course

York, Pa.

26-28

P&C Licensing Study Course

Mechanicsburg, Pa.

27

CISR-Commercial Property Course

Frederick, Md.

Navigating Contractual Liability and Certificates of Insurance

Allentown, Pa.

13

21

New date added for Jerry Milton, seminar: Interest in “Navigating Contractual Liability and Certificates of Insurance” has been overwhelming, and several dates have sold out. To accommodate the demand, IA&B has added a second date, May 3, in Mechanicsburg, Pa. In this seminar, industry expert and perennial CE favorite, Jerry Milton, CIC, discusses in detail the usual contractual indemnification provisions and insurance requirements, plus the problems and issues with certificates of insurance. This summer, Milton returns with “Insuring Contractors,” examining contractors’ various exposures and how the CGL, Contractors’ Equipment, and Builders’ Risk policies will respond. To read more and register for either seminar, visit iabgroup.com/milton, or call the Member Service Center at (800) 998-9644, option 0.

[ 10 ]

Tri-State General Insurance Agency 1-800-556-7894

Garage Liability Garage Underwriter

Pat Hudson Dennis x240 PHudsondennis@tsgia.com

x x x x x x x x x

Dealer Non Dealer False Pretense Garage Keepers Dealers Physical Damage Schedule Tow Trucks General Liability on Related exposures Building Coverage Misc Tools

Fast, Friendly Service

Garage Underwriter

Sheri Nelson x237 SNelson@tsgia.com

We write more than just “trucking� . . . Visit us at www.tsgia.com

Maryland * Pennsylvania * Delaware * DC * Virginia * New Jersey

At Frederick Mutual, we adhere to the following Pillars of SUCCESS

S U C C E S S

Frederick Mutual Insurance Company, an AM BEST A- (Excellent), VI property/casualty insurer writing in Maryland and Pennsylvania is currently looking for experienced property/casualty insurance agents licensed to write personal and commercial lines business in Maryland and Pennsylvania. Frederick Mutual, a niche company, specializes in writing Small Artisan Contractors, Mainstreet BOP Business, Homeowners, Dwelling Fire and Personal Umbrella.

ecurity in Your Time of Need nparalleled Customer Service orporate Integrity ompetitive Pricing

Established in 1843, we pride ourselves on our quality of service and desire to partner with equally dedicated professionals.

ase of Doing Business uperior Financial Strength

Additional background information regarding Frederick Mutual is available on our website at www.fredmut.com.

ound Products

57 Thomas Johnson Drive, Frederick, MD 21702-4301 301-663-9522

[ 11 ]

COVERAGES

Ins & outs of flood zones Determining the right one

Securing an accurate flood zone determination has become one of the major challenges for insurance producers and their clients.

On the following pages, flood-insurance expert Rita Hollada explains why discrepancies occur and how they can be addressed.

Primary Agent | April 2011

D

iscrepancies between the flood zone determined by a lender and that indicated by an insurance company, a licensed surveyor, a community official and an insurance agent create complication and often unnecessary expense for all concerned. The reading of the Federal Emergency Management Agency’s (FEMA) risk maps is not an art to be interpreted but a science based on finite lines and measurements. There has to be a way to get this right – and get it right the first time and every time.

Unfortunately, that’s easier said than done.

On-demand

flood training Coming to a computer near you

Flood zone primer Let’s back up for just a minute and talk about what flood zones are, why they are important and, most of all, why accuracy is imperative.

When a community agrees to participate in the National Flood Insurance Program (NFIP), it agrees to identify the areas in that community which have a history of flooding and those that are susceptible to future flooding. Typically, these begin with areas near a body of water, but flood-prone areas also can be identified as low lying areas, areas protected by aging or inadequate levees or flood control projects, as well as areas affected by runoff from development and paving. There are many conditions that create an elevated risk of flooding, and those conditions change on a regular basis. __________________________________________________________

The reading of the Federal Emergency Management Agency’s (FEMA) risk maps is not an art to be interpreted but a science based on finite lines and measurements. __________________________________________________________ The NFIP indicates a level of flood hazard by a flood zone designation after extensive engineering and survey work.

Those areas with the highest potential of flooding are defined as Special Flood Hazard Areas (SFHA) and designated with a flood zone beginning with A or V. Areas of moderate or minimal risk of flooding are denoted B, C or X zones. Areas of undetermined hazard are designated as D zones. These zones appear on the risk maps, and as the hazard changes, the maps are refined and updated to keep pace with the risk.

Accuracy in flood zone designations is important for three major reasons, all of which affect the property owner and the price and availability of insurance. First, the flood zone

[ 13 ]

Up the creek with an impending flood CE deadline and overbooked schedule? IA&B offers a paddle: a new on-demand flood seminar to the rescue beginning this spring. The training combines the quality of IA&B education with the convenience of online technology.

Navigate the coursework on your schedule, at your pace. Yet still benefit from a top-notch instructor — nationally renowned flood expert Rita Hollada — and from the ability to ask questions and receive timely answers.

IA&B’s on-demand flood webinar is approved for the following CE credits: 3 Flood in Pennsylvania, 3 PC/Flood in Maryland and 3 Flood in Delaware.

Additional on-demand webinars on E&O and ethics are in the pipeline.

Look for more in Agent Headlines and on iabgroup.com.

COVERAGES

determines the level of risk.

Buildings located in a SFHA have a 1 percent annual chance of flooding. This translates to a 26 percent chance of extensive damage by flood during the life of a 30-year mortgage. Second, the flood zone determines if a lender must require the purchase and maintenance of flood insurance for the life of a loan. Third, the flood zone is the most significant determiner of the rate that will be used in determining the flood insurance premium.

Mandatory purchases explained From 1968 until the adoption of the Flood Disaster Protection Act of 1973, the purchase of flood insurance was voluntary.

However, the 1973 Act mandated flood insurance coverage for many properties.

For the first time, federally regulated lending institutions could not make, increase, extend or renew any loan secured by improved real property located in an SFHA in a participating community – unless the secured building and any personal property securing the loan were covered for the life of the loan by a flood insurance policy.

After the multibillion-dollar flood damage in the Midwest during the summer of 1993, Congress revisited the mandatory purchase law and enacted the 1994 Reform Act. It was observed that too few lending institutions were requiring flood insurance in compliance with the 1973 law. Therefore, the

1994 Reform Act imposed significant new obligations on lenders and loan servicers and tightened the requirement for the receipt of disaster assistance.

Lender must have a guaranteed zone determination One of the obligations imposed on lending institutions deals directly with the flood zone determination. The nondelegable obligation of the flood zone determination remains the responsibility of the lender.

There can be limited reliance on third parties, but the information that they provide must be “guaranteed.” Lenders need to protect themselves in the event of errors. This “guarantee” of accuracy is one of the major stumbling blocks in resolving a flood zone discrepancy. ________________________________

The nondelegable obligation of the flood zone determination remains the responsibility of the lender…. [And the] “guarantee” of [its] accuracy is one of the major stumbling blocks in resolving a flood zone discrepancy. ________________________________ A financial institution cannot rely on the statements of a borrower that the structure in question is either inside or outside an SFHA. Lenders may reasonably seek assistance from third parties that

[ 14 ]

have demonstrated their knowledge concerning flood map information. For regulatory purposes, reasonable reliance upon such services in the making of a lender’s determination is regarded as acceptable only to the extent that “such person guarantees the accuracy of the information.”

In many instances, community officials, insurance company personnel, insurance agents, real estate agents, surveyors or appraisers may be helpful and knowledgeable resources.

However, to the extent that such parties cannot or will not grant guarantees, reliance upon the information they provide cannot be used for exculpatory purposes if the lender is confronted with a regulatory violation or a civil claim for damages.

Causes of flood zone discrepancies Since all of the interested parties in the flood zone determination are working from the same maps and information, logic dictates that every interested party should reach the same conclusion. So, why are there so many instances of disagreement? This is exact question I asked Cheryl Small, president of the National Flood Zone Determination Association.

The answers I received were quite thought provoking.

One obvious answer: Different parties are using different mapping information. Older editions of a community’s flood map may not reflect current information.

The current map must always be used. The maps themselves create problems in that despite FEMA’s efforts, the boundary location of some SFHAs may be difficult to pinpoint precisely. In some cases, information about Letters of Map Amendment (LOMA) and Letters of Map Revision (LOMR) has not been released by FEMA to the determination companies.

Many of these problems should be ameliorated with completion of the current project to digitize map information and overlay many layers of geographic information onto the FEMA risk maps.

Another common cause of zone discrepancies results from the property description itself.

Lenders often have information from the property deed which outlines the boundaries of the real estate. But even a street address only points to a spot of land. Often there can be multiple flood hazard zones on one piece of real estate.

Flood insurance is based on the location of the building to be insured, not the real estate. A flood zone determination must be building specific. However, if any portion of a building is in the SFHA, the entire building is deemed to be in it. This applies even if that portion of the building in the SFHA is not covered by the NFIP policy, such as the corner of a deck. The mandatory-purchase legislation states that even though a portion of real property on

which a building is located may lie within an SFHA, the purchase and notice requirements do not apply unless the building itself, or some part of the building, is in the SFHA.

The statutory requirement to purchase flood insurance applies only when a loan is extended on improved real property (i.e., a building) that is located or will be located in an SFHA in a

Landscape Contractors coverage in a five-minute phone call.

Call. Quote. Bind. 1à }Ê/ * "½ÃÊV ÕÀÌi ÕÃÊ> `Ê«À «ÌÊV> ÊVi ÌiÀ]Ê > `ÃV>«iÊ

ÌÀ>VÌ ÀÃÊV ÛiÀ>}iÊV> ÊLiÊµÕ Ìi`]ÊL Õ `Ê> `Ê`i ÛiÀi`ÊÌ ÊÞ ÕÀÊi > Ê L ÝÊ µÕ V ÞÊ> `Ê>VVÕÀ>Ìi ÞÊ`ÕÀ }Ê iÊv Ûi ÕÌiÊ« iÊV> ° CGL Coverage Available: UÊÊ*À >ÀÞÊ ÌÃÊÕ«ÊÌ ÊfÎÊ ÊÊ Ê Ê "VVÕÀÀi ViÉ }}Ài}>Ìi UÊÊ `` Ì > Ê ÌiÀiÃÌà UÊÊ ÝViÃÃÊ ÀÊ1 LÀi >Ê ÌÃÊÕ«ÊÌ ÊfxÊ

*À «iÀÌÞÊ ÛiÀ>}iÊ Û> >L i\ UÊÊ Õ ` } UÊÊ Ìi ÌÃ UÊÊ ÕÃ iÃÃÊ V i

UÊÊ Û> >L iÊ-«iV > Ê ÛiÀ>}iÃ\

UÊÊ,i« >Vi i ÌÊ ÃÌÊ ÀÊ VÌÕ> Ê >Ã Ê6> Õi

UÊÊ >Ã V]Ê À >`Ê ÀÊ-«iV > Ê À

QÊÊ i` V> Ê*>Þ i ÌÃpfx]äääÊ Ì

UÊÊ «ÕÌiÀÊ µÕ « i Ì

QÊÊ*iÃÌ V `iÉ iÀL V `iÊ «« V>Ì ÀÊ ÛiÀ>}ip

UÊÊ ÌÀ>VÌ ÀÃ½Ê µÕ « i Ì

Ê Ê * VÞÊ Ìà QÊÊ /À> à ÌÊ* ÕÌ Ê ÛiÀ>}ipfÓx]äääÊ

Ê Ê "VVÕÀÀi ViÉf£ää]äääÊ }}Ài}>Ìi QÊÊ ÃÌÊ iÞÊ ÛiÀ>}ipfÓx]äääÊ Ì QÊÊ*À «iÀÌÞÊ > >}iÊ ÝÌi à ʭ >Ài]Ê ÕÃÌ `Þ]ÊÊ Ê Ê ÌÀ ®

UÊÊ µÕ « i ÌÊ Ài> ` Ü UÊÊ"ÕÌÃ `iÊ- } Ã * Available coverages and markets may vary dependent upon risk characteristics.

The TAPCO Service Pledge U “A”-raÌe` o -a` iÌÌe` carrier U Co «eÌiÌive «rici g U aÃÌ «olicÞ ÌÕr aroÕ ` U - ÕÃe vi a ci g available i oÃÌ ÃÌaÌeà U QÕic clai à a `li g U f£0 cre`iÌ Ìo ÞoÕr «erÃo alize` /A*CO Z Õc à 6iÃa `ebiÌ car` ÜiÌ eac «olicÞ U 6iÃa] MaÃÌerCar` a ` AC «aÞ e Ìà acce«Ìe`

1,000 Strong

[ 15 ]

Steps to resolve a flood zone determination discrepancy

More than 1,000 classes of P&C business written under binding authority.

800-334-5579 www.gotapco.com

COVERAGES

participating community. The requirement is accomplished by completing the Standard Flood Hazard Determination Form (SFHDF) which is utilized by the lending institution. If the flood zone designation noted on the SFHDF differs from the

zone designation noted on the flood insurance policy, the lender should resolve it and document the reasons. There may be some legitimate reason for the discrepancy, such as the NFIP “grandfather” rules. If flood zone determinations have

been done by two FLD companies, then a first step is to have them jointly review their information. If the parties cannot resolve the discrepancies, then FEMA can be contacted to do a determination review.

When a borrower disputes a lender’s determination that a property is in a SFHA and requires flood insurance, the 1994 Act allowed for the Letter of Determination Review (LODR) process. The borrower and lender may jointly submit a review request to the administrator of FEMA during the 45-day period after the borrower is notified that flood insurance is required. FEMA will charge a fee for this process, and the request must be signed by both the borrower and lender because of the fee.

Between them, they must decide who will pay the fee and include payment. The administrator of FEMA will rule on the determination, provided the review request meets the stipulated criteria.

The determination in question must have been conducted or obtained by a lender using the current map panel. The review process is intended to confirm or disprove the accuracy of the original determination.

It will not address the required Base Flood Elevation or other rating issues.

[ 16 ]

Primary Agent | April 2011

________________________________

Until some revision of the system is undertaken, our best hope lies with the hoped-for accuracy of the new, highly detailed electronic flood maps. ________________________________

Conclusion There are few simple solutions to the problem of flood zone discrepancies. For the present, the responsibility and legal requirement remains with the lending institution. It continues to be a source of frustration for policyholders, agents and surveyors alike. There are several initiatives under discussion to streamline the determination process, including a requirement that a lender release the flood zone determination performed at their request to be used by all parties. Until some revision of the system is undertaken, our best hope lies with the hoped-for accuracy of the new, highly detailed electronic flood maps. _______________________________

M. Rita Hollada, CPCU, CIC, CPIA, member and former chairman of the Flood Insurance Producers National Committee ( FIPNC)

RELATIONSHIPS IT’S WHY WE STAND OUT FROM THE CROWD “I’m a mom, and for me excellent communication is important. The same holds true for my role as a Bond Underwriter. Developing personal relationships with our customers is essential—it’s who we are.”

Robyn Shepherd Bond Underwriter—professional listener and “customer care” expert Connect with Robyn on LinkedIn!

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

800.538.4796

[ 17 ]

jmwilson.com

Platinum Profile

Insurance Agents & Brokers proudly recognizes Millville Mutual Insurance Company as one of its Platinum Partners.

IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

Millville Mutual company headquarters located in Millville, Pennsylvania FEATURED PARTNER: Millville Mutual Insurance Company COMPANY PRESIDENT: M. Paige Raski President COMPANY LOCATION: 215 State Street, Millville, PA 1-800-262-8495 A.M. BEST RATING: “A” (Excellent) WEB SITE: www.millvillemutual.com

M

illville Mutual takes pride in serving its nearly 60,000 policyholders throughout the state of Pennsylvania. The staff at Millville Mutual is dedicated to building strong ties to rural and suburban Pennsylvania, which gives them the insight and knowledge to tailor their products and services to fit the specific needs of each individual policyholder.

With more than 175 independent agencies across the state, customers can receive the personalized service and individualized products they deserve.

With $54 million of assets, $24 million in premium and $30 million in surplus, Millville Mutual is proud to announce that due to financial strength and efficient operations they have retained an “A” (Excellent) rating

by AM Best Company, which is a rating they have maintained since 1973.

Many of the company’s achievements during the past year went beyond financial results. They replaced an antiquated special multi-peril fire program with a new special residential package policy program which provides package policy coverage to owners of tenant occupied rental dwellings. And they provided advanced webinars to their agency force as a training tool when introducing the new program.

Millville Mutual achieved significant progress in the redesign of a Webbased policy management system which will allow their customers and agency force access to policy and billing information 24/7.

Millville Mutual strives to provide the best possible combination of personalized customer service and technological advancement available in today’s market, and are committed to building lasting relationships with both their policyholders and their independent agency force.

Listed below are those companies that strongly support the independent agency system and Insurance Agents & Brokers.

Thank you for your continued sponsorship.

WHAT IS IA&B PARTNERS? The IA&B Partners program gives company and allied businesses the opportunity to demonstrate their commitment of support to independent agents and receive maximum market exposure. As an IA&B Partner, you will also realize the benefits of IA&B membership to help you succeed in the insurance industry.

DO YOU SEE YOUR NAME? To become an IA&B Partner, choose the sponsorship package that matches your commitment of support.

Contact the Member Sales Center at (800) 998-9644, (717) 795-9100 or visit us online at www.iabgroup.com to get started.

PLATINUM LEVEL ACUITY Berkley Mid-Atlantic Group Donegal Insurance Group Erie Insurance Group Harleysville Insurance Highmark Casualty Insurance Co Insurance Agents & Brokers Service Group Inc Millers Mutual Group Millville Mutual Insurance Co Mutual Benefit Group Ohio Casualty Penn National Insurance Selective Swiss Re The Main Street America Group Travelers Utica National Insurance Group

GOLD LEVEL Allied Insurance MMG Insurance Progressive

BRONZE LEVEL Aegis Security Insurance Co Agency Insurance Company Auto-Owners Insurance Company Briar Creek Mutual Insurance Company Builders Insurance Group Chubb Group of Insurance Companies Encompass Insurance First General Services Foremost Insurance Group Goodville Mutual Casualty Company Grange Insurance Companies Guard Insurance Group Hanover Fire & Casualty Insurance Company Insurance Alliance of Central PA Inc Insurance Placement Facility of PA Keystone Insurers Group Inc Lebanon Mutual Insurance Company Mercer Insurance Group Merchants Insurance Group

SILVER LEVEL Access Insurance Company American Mining Insurance Co Cumberland Insurance Group Frederick Mutual Insurance Co Harford Mutual Insurance Co Juniata Mutual Insurance Co PSBA Insurance Trust The Motorists Insurance Group The Philadelphia Contributionship Westfield Insurance Zenith Insurance

Mercury Casualty Penn Millers Insurance Company Penn PRIME Municipal Insurance Reamstown Mutual Insurance Company Rockwood Casualty Insurance State Auto Mutual Insurance Company TAPCO Underwriters Inc The Brethren Mutual Insurance Company The Mutual Service Office Inc Tuscarora Wayne Insurance Company Primary Agent April 2011

INDUSTRY NEWS

The future of the NFIP Congressional point, IA&B counterpoint

The National Flood Insurance Program (NFIP) is under increasing attack by Congress. Seen as a money pit, the program faces a rocky future. Here, IA&B outlines a few of the recent legislative attacks and responds with implications.

Primary Agent | April 2011

State of the program Congress renewed the NFIP in five-year intervals for decades. But on Sept. 30, 2008, the program suffered its first major lapse at expiration. Three more lapses followed in 2010. Recent NFIP extensions often have been lumped in with other politically charged program extensions, such as COBRA or unemployment benefits, leaving the program as collateral.

Most recently, following a month-long expiration, President Obama signed a temporary legislative fix to extend NFIP until Sept. 30, 2011.

That leaves the program in jeopardy again in six months. And given the state of the national budget, the NFIP has become a prime target for cuts.

Funding threat Rep. Candice Miller (R-Mich.) introduced legislation (HB 435) that would completely phase out the program by the end of 2013 (although it does not address if or how the program would be funded until then). Proponents argue that the NFIP is not designed to raise enough money through its rates to pay all of its claims – particularly in the wake of large disasters like Hurricane Katrina where the program had to borrow nearly $18 billion from the federal treasury.

Wind-damage threat Calls also have been made during previous reauthorization debates to add wind damage to the program. Last year, Sen. Roger Wicker (R-Miss.) introduced SB 3672 that would have mandated the NFIP to split the costs of catastrophic damage 50/50 with wind insurers (including state wind pools) in cases where the cause of the damage is in dispute. The proposal would have shifted the burden of proof for flood and wind loss allocation from the policyholder to the insurers. In this scenario, the policyholder would be paid regardless of the ultimate determination of the cause of the damage or if a claim was legitimate at all.

IA&B’s stance IA&B strongly supports long-term extension of the NFIP to avoid any short- or long-term disruptions to policyholders, homeowners, independent agents and the real estate marketplace. When lapses occur or are threatened, agents come under additional pressure as property owners scramble to figure out whether they can buy or sell their properties, or if they are protected against a flood.

Continued funding of the NFIP is a necessity. The program serves an insurance need that the private market cannot sustain. For the private market to underwrite flood insurance, it would have to charge policyholders very high premiums and force insurers to maintain significant capital reserves in case of massive flooding, when many would be making claims.

Although Sen. Wicker’s bill did not move out of committee, similar efforts continue to be a concern as lawmakers see opportunities to insert wind-damage coverage during the NFIP-renewal process. The inclusion of wind damage in the NFIP would serve only to further burden the program. Wind damage is currently covered under individual homeowners’ insurance policies and statewide pools.

IA&B and its national affiliates will continue to advocate on behalf of producers and their insureds.

[ 21 ]

NFIP primer The NFIP allows property owners in certain federally designated areas to purchase insurance from the government to protect against losses due to flooding.

The program is designed to serve as an alternative to disaster assistance in addressing the escalating costs of flood damage.

In addition to providing flood insurance, the NFIP is also the federal mechanism for identifying and mapping the nation’s floodplains. These maps provide the data needed to actuarially rate new construction for flood insurance.

For more on flood mapping, see the feature on page 12.

As this issue of Primary Agent went to print, a draft bill (released by Rep. Judy Biggert, R-Ill.) to reform and renew the NFIP was gaining momentum in Congress.

Watch Agent Headlines for updates.

H.R.

Primary Agent | April 2011

HEADQUARTERS

BACKGROUND-SCREENING CHECKS: CRIMINAL OR NOT?

JEFFREY W GERHART CEBS, MBA Jeffrey W. Gerhart, CEBS, MBA, provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm.

IA&B members have access to HR Solution©, a compilation of products and services to help them establish or improve their human resources program.

Included are base-level consultation services and discounted professional services from Mosteller & Associates.

Recently, the U.S. Supreme Court unanimously ruled in NASA v. Nelson that the government, as a public employer, can ask about employees’ drug treatment, medical conditions or other personal information in its background security investigation – a practice already “commonplace in the private sector.”1 The decision is further endorsement that employers are permitted to use screening processes to insure they are hiring competent, sound personnel.

What are some of the more common background checks, and what do they look at? ◗ Employment verification: job history normally submitted with a candidate’s resume or employment application ◗ Education and credential verification: candidate’s educational degrees, licenses and certifications ◗ Driver’s records: valid driver’s license through state motor vehicle department

In the past few months, I’ve seen a slight uptick in the number of IA&B members asking whether background checks should be conducted on their current employees and as part of their hiring process. Questions typically are driven from IA&B’s revised HR Solution© tools and from concern over violating the Violent Crime Control & Law Enforcement Act (VCCLEA).

◗ Credit checks: bankruptcy filings and timely bill payments ◗ Social security number: worker’s identification for payroll, income taxes and federal retirement and disability programs ◗ Criminal background check: conviction record, VCCLEA compliance ◗ Military service: rank and discharge status

1 AHI Employment Law Today, February 8, 2011

[ 22 ]

Am I legally required to conduct background checks?

The short answer is no, but it will help you do the following: ◗ Identify individuals convicted of a felony involving “dishonesty and breaches of trust” and help you secure permission from the state’s insurance department for the individual to continue working ◗ Manage risk to the agency ◗ Exercise due diligence and legal compliance ◗ Improve your hiring process and the quality of the candidate pool ◗ Protect individuals’ personal information ◗ Reduce discipline, turnover and cost of employment

What are additional considerations?

Employers are limited by state or federal statute in the kinds of information they may access and make use of in hiring decisions. Also, background checks are not fool proof and should be considered carefully. ◗ If you develop a policy, it’s important to follow it. Otherwise you may have difficulty defending your hiring decisions against legal challenges. ◗ A signed authorization from the candidate is necessary to obtain their personal information. ◗ The individual must receive written notification if an adverse decision is made.

◗ The kinds and types of background checks must be job related. ◗ Hiring decisions cannot discriminate unintentionally against protected groups. (Note: Minorities are affected disproportionately by convictions and financial problems.) ◗ There are costs of screening – whether it is conducted yourself or contracted to a third-party service.

What next?

IA&B redesigned HR Solution to help guide you. From www.iabgroup.com, select “Agency Operations” and then “Employee Management.” Once in HR Solution, choose “Administrative Guide,” “Review Sections of Administrative Guide” and then “Screening and Testing.”

IF YOU HAVE THE TOOLS, WE HAVE THE INSURANCE.

In addition, click on the related links to learn more about the VCCLEA process and a selection of suggested vendors.

And be sure to check your state regulations for the kinds of information that may be limited or restricted to you.

Editor’s note: HR Solution contains a compilation of products and services, including a ready-to-use administrative guide. Access to HR Solution is included with IA&B membership but is limited to those individuals designated as agency administrators within the IA&B database.

To access HR Solution, visit www.iabgroup.com/HR. To add an agency administrator, contact IA&B’s Member Service Center at 800-9989644, option 0.

INSURANCE INNOVATORS’ Artisan/Trade Contractor Product Product Features broad eligibility to include: ~ 30 Eligible Classes of Artisan and Trade Contractors ~ Payroll up to $500,000 ~ Receipts up to $1,000,000 ~ New Ventures ~ Up to 50% subcontracted work ~ Exterior work up to 4 stories ~ Competitive Pricing ~ Additional rate credits available based on favorable risk characteristics ~~~~~ Additional Advantages ~ A.M. Best rated A++ carrier ~ Quick turnaround time on submissions ~ Available for Online Quoting using F.I.R.E.

Residential Contractors with up to 5 employees can find great deals on liability insurance at Brokers Surplus Agency. We represent Utica First Insurance, one of the largest writers of small contracting firms in the Northeast, and we can give you a free quote on all your coverage needs!

Call or email us today!

Brokers Surplus Agency, P.O. Box 2849, Warminster, PA 18974 Call (215) 443-9900

Fast, Reliable Service

Contact: Dennis Marsaglia, Ext. 230 dennis@brokerssurplusagency.com Evelyn Frisch, Ext. 227 evelyn@brokerssurplusagency.com

Contact PA Home Office: Etty Herzig at ext. 139 etty@iiigroup.com Janet Barton at ext. 128 janet@iiigroup.com 800-523-6422; 215-885-7300

[ 23 ]

www.iiigroup.com

Classified ADVERTISEMENTS

SOUTHEAST PA PRODUCERS & AGENCIES Professional agency since 1926 located in Feasterville, Bucks County, Pa. Call for confidential information and a review of our services.

Contact Ray Reinard at (215) 375-8600, Ext. 119.

If you would like to place a Classified Advertisement, simply fax your ad on company letterhead to (717) 795-8347, and we will take care of the rest.

Ad Index Atlantic Specialty Lines Inc . . . . . . . . . . . . . . . . .5 Brokers Surplus Agency . . . . . . . . . . . . . . . .1, 23 Commonwealth Ins Co . . . . . . . . . . . . . . . . . . . .3

Are driving habits written in the stars?

A claim that zodiac signs shifted rocked the astrological world – and made national news headlines — in early 2011. Minneapolis astronomy instructor Parke Kunkle introduced a thirteenth sign, Ophiuchus, which bumped some unsuspecting Scorpios (for example) under the Virgo sign.

For kicks, Allstate compared its claims data against the revised zodiac calendar. Among their findings?

Those newly classified Virgos were 700 percent more likely to be in a car accident compared to Scorpios. And Ophiuchus encompassed the second-safest drivers on the road.

EMC Insurance Companies . . . . . . . . . . . . . . .IFC Frederick Mutual Ins Co . . . . . . . . . . . . . . . . . .11 Guard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 IA&B Partners Program . . . . . . . . . . . . . . . . . . .19 IA&B Series Ad . . . . . . . . . . . . . . . . . . . . . . . . .IBC

However, Allstate’s fun and games backfired as insureds questioned their rates. The company quickly distributed a press release reassuring customers that astrological signs are not part of the underwriting process.

Insurance Innovators . . . . . . . . . . . . . . . . . . . .23 Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC J.M. Wilson . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Mutual Benefit Group . . . . . . . . . . . . . . . . . . . . .9 Penn National Insurance . . . . . . . . . . . . . . . . . .16 Preferred Property Program . . . . . . . . . . . . . . . .9 TAPCO Underwriters . . . . . . . . . . . . . . . . . . . . . .5 Tri-State General Ins Agency LTD . . . . . . . . . . .11 [ 24 ]

----------------------------------------------------------------———————------The Last & Least column is dedicated to the industry’s oddities — from creative claims and kooky coverages, to (tasteful) jokes and strange stories. Submit yours to iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.

SPEAK UP! YOUR JOB DEPENDS ON IT!

SUPPORT AGENTPAC —

That’s how we deliver distinction.

your voice IN THE STATE CAPITOL. AgentPAC is yo ur st ate political action committee and the collective voice of independent agents in the state capitol.

Issues that affect yo ur jo b are at stake, and backing legislators aligned with IA&B’s government affairs agenda depends on yo u r s up po r t. Watch for Gr as s ro o ts A ct io n A le r ts prompting you to contact your legislators on specific issues, and consider donating to AgentPAC at a level that speaks (loudly) to policymakers that support our cause.

LEARN MORE AND CONTRIBUTE ONLINE AT IABGROUP.COM/AGENTPAC.

Your voice in the state capitol.

Hit H it The The Nail Nail On On The The Head Head Let IInterstate Let nterstate nnail ail d down own tthe he rright ight lliability iability ccoverage overage ffor or yyour our ccontracting ontracting cclients. lients.

•““A+” A+”Rated Rated CCarriers arriers • SSimplified implified & N on-Simplified Non-Simplified Occurence Forms Forms Occurence • PPolicy olicy Period Period ffor or 44,, 5, 5, 6 oorr 1122 M onths Months • PPolicy olicy for for SSmall mall CContractors ontractors • LLimits imits uupp ttoo $$11 M illion Million

Call, C all, fax fax or or email email your your a application pplication today! today!

Experienced underwriting Fast Turnaround •E xperienced u nderwriting •F ast T urnaround Quick Claims Processing •Q uick C laims P rocessing In Pennsylvania, In Pennsylvania, Ohio Ohio & W West est VVirginia irginia 22307 307 M enoher BBoulevard oulevard • Johnstown, Johnstown, PA PA 15905 15905 Menoher 8814-255-7878 14-255-7878 • 1-800-452-0297 1-800-452-0297 • Fax: Fax: 814-255-6010 814-255-6010 IInn Maryland, Maryland, Delaware Delaware & Virginia Virginia 1111 11 W arren Road Road • Suite Suite 1B 1B • Cockeysville, Cockeysville, MD MD 21030 21030 Warren 4410-628-1744 10-628-1744 • 1-800-759-7779 1-800-759-7779 • Fax Fax 410-628-6914 410-628-6914

www.interstate-insurance.com w ww.interstate-insurance.com