DECEMBER 2015 | PENNSYLVANIA
YEAR IN REVIEW REFLECTIONS AND NEXT STEPS
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IN THIS
ON THE COVER 12
REFLECTIONS ON 2015 Peruse our accomplishments from the past year— and how you can benefit from them.
ALSO 14
EMPOWERING SMALL AGENCIES FOR BIG SUCCESSES View a recap of our 2015 Executive Management Conference, held in late October outside of Allentown, Pa.
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UPDATE YOUR GOOGLE MY BUSINESS ACCOUNT Google is now requiring that Google My Business users periodically verify their accounts. It’s a worthwhile step, as it increases the likelihood that your agency will show up in a Google Search results page.
IN EVERY ISSUE 2
Chairman of the Board’s Message
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Ask Our Experts
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Preventing Errors & Omissions
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Coverage Corner
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State News
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IA&B Partners
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Advertiser’s Index
IBC My Events IBC Classified Ads Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices. Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2015-12, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.
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Copyright 2015. 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 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. 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 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.
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CHAIRMAN OF THE BOARD’S MESSAGE
RESOLVE TO TAKE ADVANTAGE OF YOUR MEMBERSHIP
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INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com
OFFICERS Chair of the Board
Robert S. Klinger, LUTCF, CPIA
elcome to December – a month crammed with commitments, deadlines and activity. Yet as we plow through the remaining days of 2015, it’s critical that we all take a few moments to reflect on where we’ve been and where we’re headed in the year ahead. On the IA&B Boards of Directors, we do much of the same: evaluating what the organization has accomplished and steering it forward. And when we have these conversations and make these decisions, we always conduct them with a nod to member agent feedback. As you contemplate your agency’s next steps, I encourage you to look to your agents’ association. Chances are that IA&B is on the same page (thanks to that agent feedback I mentioned) and can help you meet your goals. For instance, IA&B will focus on agency perpetuation and staff development in the year ahead, launching an online jobs board, establishing its Futures Program for young agents, recreating its popular CSR conference, and expanding upon its career track offerings. Now for the same line, different day: It’s up to you to take advantage of your membership. Resolve to utilize your agents’ association and its resources in the year ahead. There’s so much for the taking. Just look to IABforME.com, Agent Headlines, the Professional Training Schedule and even Primary Agent magazine to learn about what IA&B has to offer. Don’t reinvent the wheel or squander your dues payment when there’s so much for the taking! Have a wonderful holiday season, and I’ll see you in 2016. n
Vice Chair of the Board
Michael F. McGroarty Sr. Immediate Past Chair of the Board
Diana M. Hornung Hanby, ACSR
MEMBERS E. Stephen Burnett, CIC, ARM Wilmington, Del.
Richard F. Corroon, CPCU Wilmington, Del.
N. Lee Dotson, CIC, AAI Wilmington, Del.
Michael P. Ertel+ Columbia, Md.
Bryan C. Hanes, JD Hagerstown, Md.
John B. Hollister Milford, Pa.
Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa.
David C. King Lancaster, Pa.
Douglas A. Loesel, CPCU Erie, Pa.
Crag S. Mader
Gambrills, Md.
Ann Gallen Moll, CIC Reading, Pa.
Mark J. Monroe
West Chester, Pa.
Joseph R. Pastor, CPCU, AAI Oil City, Pa.
Richard M. Rankin, CIC Lancaster, Pa.
April E. Ressler, CIC Altoona, Pa.
Scott C. Rogers, CPIA* York, Pa.
Best,
Glenn R. Strachan
Ft. Washington, Md.
Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del.
Robert S. Klinger, LUTCF, CPIA Chairman of the Board
J. Marshall Wolff, CIC, CPCU Easton, Pa.
* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director
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DECEMBER 2015
Ask Our Experts This month’s answer was provided by Don Bankus, our legal affairs manager.
Question: I need a copy of my producer license(s) ASAP. Where can I go to access and print a copy?
Answer:
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ortunately, whether you need a copy of your resident license, or any (or all) of your non-resident licenses, there’s a “one-stop shop” available. WHERE DO I GO, AND HOW DO I PROCEED? The simplest avenue to access and print your license(s) is to go to the National Insurance Producer Registry website, which is commonly referred to as NIPR. To access and print your Pennsylvania license: • Go to www.nipr.com. • Under the “How to” subheading, click on “Print your License….” • On the Producer Licensing Map, click on Pennsylvania. • You will be redirected to a Pennsylvania Insurance Department (PID) webpage, where you should follow the very simple instructions.
You will need to have your Pennsylvania producer license number available in order to access and print your license. There is no charge associated with this service.
To access and print your Delaware or Maryland license:
Have a question? Ask our experts!
• Go to www.nipr.com.
Rely on our experts to answer your most perplexing questions. Visit the Ask Our Experts section of IABforME.com (find the link in the website footer) to submit your question and review answers to other frequently asked questions. Or email your question to us at IAB@IABforME.com. We look forward to hearing from you.
• Under the “How to” subheading, click on “Print your license….” • On the Producer Licensing Map, click on either Delaware or Maryland, from which you will be redirected to the State Based Systems website. • Enter the applicable information under the subheading “License Search.” You will need to have either your National Producer Number or your Delaware or Maryland producer license number available in order to access and print your license. For Delaware and Maryland, you can access and print a free copy of your license in conjunction with any of the following: (1) original license approval; (2) renewal approval; (3) name and/or address change; and (4) adding and/or deleting a line of authority. If you haven’t experienced any of these circumstances which make you eligible to print a free copy, you will need to register for either Delaware or Maryland’s Online Licensee Services, and pay a fee from $2.95 to $5.95.
If you wish to access and print a copy of a producer license for states other than Delaware, Maryland or Pennsylvania, simply choose the applicable state on the NIPR Producer Licensing Map referenced above, after which you will be directed accordingly. AFTER ACCESSING MY LICENSES(S), WILL I BE ABLE TO SAVE A COPY TO MY COMPUTER? Yes, you will, and it’s recommended that you do so. (It could save you some time in the future, and perhaps a couple of dollars as well). n
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PREVENTING ERRORS & OMISSIONS
LIGHTING THE WAY: BRIGHT IDEAS FOR E&O PREVENTION IN 2016 By Utica National E&O Program
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s we close out another year, it’s a good time to reflect on what you need to do to be more successful and to reduce the likelihood of an E&O claim being presented against your agency in the coming year. Here is one area that, if discussed openly and implemented effectively, could make a noticeable difference. At the next staff meeting, dedicate some time to discuss E&O. Specifically discuss with each of the staff what he thinks his E&O exposure is in the agency. For
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some of the staff, this is going to be very easy. There is no doubt that CSRs and producers generally know and understand their role and the exposure associated with it. How about receptionists and claims staff? They may not totally understand that what they do (or in some cases, don’t do) can result in an E&O claim against the agency. For example: • A direct bill client comes into the agency and proceeds to give the receptionist money for her auto
DECEMBER 2015
coverage. Seems fairly harmless. But what if the policy was cancelled yesterday? By the receptionist taking the premium, the client could argue that she assumed that everything was taken care of and that coverage was in effect. • Or an agency claims person not sending a claim in to the carrier, assuming it wasn’t covered, only to find out that it would have been covered.
• Or what happens when you send in a claim late … potentially a disclaimer for late notice? This is not as farfetched as it may sound because, unfortunately, it is occurring more and more. For each of the staff, it would be beneficial to ask him to identify a list of activities (at least five) that he could do in the year ahead that has the likelihood of reducing his E&O claims potential and, at the same time, improve his work product/efficiency. Here are some examples to consider: Receptionist – Based on the example provided, it may be prudent to request that the CSR that handles that specific account meet with the client before any monies are exchanged. Another possible improvement could be that when a client calls to request a change in her coverage, the receptionist makes it very clear that the client needs to speak with the producer or CSR for that change to be effective. CSR / Account Executives – The areas here are numerous as the activity and workloads are heavy. Maybe a commitment to improve account rounding to ensure that clients are aware of gaps and have the opportunity to secure coverage to address those gaps. Or a greater focus on the issues involving Excess and Surplus Lines and the importance of binding coverage prior to the effective date, or to ensure that renewal policies from E&S carriers are checked against the expiring coverage to identify any changes. Certainly the issue of dealing with certificates warrants some involved discussion.
Producers – This is a key area where a strong commitment can pay big dividends. Do you know what you sell and sell what you know? If not, take the time to educate yourself on the exposures of your clients. They are relying on you for your expertise and knowledge – be up to the challenge. The various Exposure Analysis Programs (through AMS, Rough Notes, etc.) are excellent resources. (Editor’s note: See sidebar.) Claims – Do you have staff that will make that “judgment call” as to whether or not there is coverage? What if you did not promptly handle that claim on behalf of your client? Could they suffer additional loss by your lack of attention? Marketing – A key area that can position your agency extremely well in your community. Develop a newsletter that explains policy coverages, limitations, exclusions, etc. For example, a recent article in an insurance periodical stated that 75 percent of U.S. women’s diamond rings are not insured. Why? Do clients think that the contents section of the Homeowners’ policy adequately covers them? What if the stone comes out and is lost? There is no coverage unless it is specifically scheduled under some type of inland marine coverage.
GIVE PRODUCERS A HELPING HAND INTERESTED IN an Exposure Analysis Program like the author touts? Through our affiliation with the Big “I”, you can subscribe to the Virtual Risk Consultant Powered by Rough Notes at a member discount. The robust tool helps to improve staff’s knowledge of a prospect’s operation, which enables them to better identify and cover exposures. IABforME.com/ discounted_services/VRC
Don’t be afraid to discuss E&O with the staff. Let them know the major role they play in ensuring the future success (production and profitability) through solid E&O loss control activities. n The Utica National E&O Program supplied this article. Our sales center is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania. For questions regarding this article or your E&O coverage, contact IA&B at 800-998-9644 or IAB@IABforME.com.
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COVERAGE CORNER
LIMITING YOUR PREMISES AND OPERATIONS COVERAGE Jerry M. Milton, CIC
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e tend to forget how broad the Commercial General Liability (CGL) policy is. You currently own one location, but during the year you lease or acquire several new locations. Are these new locations covered? Yes. You are a wholesaler. However, you decide to begin a manufacturing operation. Is this new operation covered? Yes, unless the CGL has some type of classification limitation endorsement attached. These new locations and operations are not free. That’s why the CGL is subject to an audit.
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Occasionally you will encounter an insurer that does not want to automatically cover these new locations and operations, and they will attach the Limitation Of Coverage To Designated Premises Or Project endorsement (CG 21 44). The insuring agreement of this endorsement is short and sweet. This insurance applies only to “bodily injury,” “property damage,” “personal and advertising injury” and medical expenses arising out of: 1. Th e ownership, maintenance or use of the premises shown in the
DECEMBER 2015
Schedule and operations necessary or incidental to those premises; or 2. The project shown in the Schedule. If a loss occurs away from the designated premises, the insured is faced with the task of showing that the operation was necessary or incidental to the premises. Of course, the endorsement does not explain or define what is “necessary or incidental,” so this will be subject to interpretation. Who will decide? The insured? Certainly not. The claims department? They’ll try. Ultimately, it will probably be determined by the
courts. Court interpretations of the Limitation Of Coverage To Designated Premises Or Project endorsement have not been uniform. In Sallie v. Tax Sale Investors, Inc., 149 Md. App. 141 (Md. App. 2002), the issue before the Maryland court was whether a liability policy with the Limitation Of Coverage To Designated Premises Or Project endorsement attached provided coverage for a tenant’s claim for wrongful eviction from a rental apartment owned by the insured. The court adopted the analysis employed by many courts of whether there was a sufficient connection between the wrongful eviction and operations that were incidental to the designated premises. The court ruled that the insured’s business rendered the designated premises or project endorsement ambiguous with respect to whether it provides coverage for the wrongful eviction that occurred on premises other than the premises designated in the endorsement. The court ruled in favor of the insured and reversed the lower court’s grant of summary judgment in favor of the insurer. In Western Heritage Insurance Co. v. Darrah, 2012 U.S. Dist. LEXIS 71768 (M.D. Pa. May 23, 2012), the United States District Court for the Middle District of Pennsylvania had to consider the effect of the designated premises or project endorsement on the insured’s operations. Western Heritage insured Darrah’s Automotive And Recycling under a CGL. The policy’s Declarations originally described Darrah’s business as “Auto Sales/Salvage and Repair Garage.” However, the description was amended by a subsequently issued Limitation Of Coverage To Designated Premises Or Project endorsement. No information was entered in the “premises” box, but the “project” box described Darrah’s operations as “Auto Dismantling and Recycling.”
Darrah’s Automotive And Recycling sought defense and indemnification for a suit brought by an individual who claimed to have suffered scarring and disfigurement while working on Darrah’s premises. The individual alleged that he was injured while repairing a vehicle in the repair/body shop. Western Heritage denied coverage on the basis that their policy’s coverage was limited to “auto dismantling and recycling operations.” Darrah argued that the endorsement provided coverage for injuries incurred at the premises. In a 2010 decision, the district court agreed with Western Heritage, finding that the effect of the endorsement was to limit coverage under the policy to a specific area of work. The court found that since the “project” box contained information and the “premises” box was empty, the endorsement only applied to Darrah’s operations, not its premises. The injured individual then amended his complaint to allege that the premises where he was injured was used for dismantling and recycling operations. However, he did not allege that he was injured while performing dismantling or recycling operations. Western Heritage argued that the new allegations only described the premises and did not alter the fact that the individual was injured while performing work outside the scope of the policy’s coverage. The U.S. District Court rejected the amended complaint finding that the “repair/body shop was not being used at the time of the injury as part of the dismantling and recycling operation.” The Limitation Of Coverage To Designated Premises Or Project endorsement serves no good purpose for the insured or the insured’s agent. Avoid it, if you can. Y’all take care! n
Jerry M. Milton, CIC, teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He also serves as our education consultant, working with our CISR, CIC and continuing education programs. Catch him at one of our upcoming seminars: IABforME.com/MyTraining.
CIC CORNER Throughout our 2015 Primary Agent magazines, we’ve offered insight and advice on approaching the CIC program from our CIC education consultants. Here we share some of their top tips. “Review the agenda and familiarize yourself with the various topics – ahead of time. Don’t wait until the night before the class or until the class itself.” – Jim Harrison Jr., CIC, ChFC, CLU, CPCU “Pay close attention throughout the entire time period, but concentrate on the issues that the instructor emphasizes.” – Jerry M. Milton, CIC “Being nervous is normal, but try to channel that energy and direct it toward a positive attitude. Be careful and concerned but confident.” – Dan Lawyer, CIC, CPCU Nationally recognized and highly respected, the CIC program challenges agents to take their knowledge to a higher level with five intensive institutes. Designees are set apart by their ability to maximize coverage in innovative ways for their customers. Visit our website to read more about the program and to register for an institute near you. IABforME.com/CIC
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STATE NEWS
AUTO-OWNERS TO SUBSIDIZE TRUSTEDCHOICE.COM ADVANTAGE SUBSCRIPTIONS
REGULATORS GIVE RIDESHARING DRIVER ENDORSEMENTS THE GREEN LIGHT ISO endorsements that clarify coverage – or the exclusion of coverage – for those who drive for transportation network companies, such as Uber and Lyft, began taking effect begin taking effect in some locations in October. As with all ISO filings, implementation varies by state approval and carrier adoption. We spoke with our regulatory contacts at the Pennsylvania Insurance Department and verified that the following endorsements are approved in the Keystone State with a 01/01/16 effective date: PAP FORMS FILING PP-2015-OTNFR “Introduction of a Reinforced Public or Livery Conveyance Exclusion and Related Optional Coverage Endorsements” • PP 23 40 10 15 – Public Or Livery Conveyance Exclusion Endorsement • PP 23 41 10 15 – Transportation Network Driver Coverage (No Passenger) • PP 23 45 10 15 – Limited Transportation Network Driver Coverage (No Passenger) PUP FORMS FILING DL-2015-OTNFR “Introduction of a Reinforced Public or Livery Conveyance Exclusion” • DL 99 12 10 15 – Personal Umbrella Liability Policy Public Or Livery Conveyance Exclusion Endorsement Despite the varying effective dates, the multistate filing numbers (showing the 10 15 date) will not change.
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DECEMBER 2015
Auto-Owners Insurance is the latest company to support the TrustedChoice.com initiative. The carrier announced early this fall that appointed agencies may use their co-op funds to receive up to 50 percent reimbursement for their Advantage subscriptions on TrustedChoice.com. The benefit applies to agencies that are new to Advantage subscriptions, as well as to current subscribers. REMIND ME, WHAT’S AN ADVANTAGE SUBSCRIPTION? All agencies – through our affiliation with the Big “I” and therefore Trusted Choice – are listed in the agency locator at TrustedChoice.com. However, those agencies with an Advantage subscription can create an enhanced profile of their agency that will appear at or near the top of the search results. HOW MUCH DOES IT COST? Normally, a personal lines Advantage subscription is $49/month, and a commercial lines one is $79/month, with the two bundled for $98/month. Auto-Owners agents can subscribe at half price, which makes the packaged personal and commercial lines Advantage subscription just $49/month. http://www.agencynation.com/ advantage-auto-owners/
LOCATING LOST LIFE INSURANCE POLICIES
MAKING STRIDES FOR MAKE-A-WISH
Pennsylvania Insurance Commissioner Teresa Miller continues to live up to her role as a consumer advocate. One of her most recent consumer advisories and its accompanying press release explain how the Insurance Department can help to locate lost life insurance policies.
Nearly 40 IA&B staffers, family members and friends – including two Wish Kids who are near and dear to our hearts – walked on Sunday, Oct. 18 to support Make-A-Wish. The fifth annual Walk for Wishes fundraiser, sponsored in part by Trusted Choice, took place in Harrisburg, Pa. to support Make-A-Wish of Philadelphia, Northern Delaware and Susquehanna Valley.
For assistance, consumers are encouraged to contact the department’s Consumer Services Bureau with the name of the individual who took out the policy and the company that originally issued it. What’s more, the communication reminds consumers that even if the company is out of business, the assets of the lost policy should have been transferred to another insurer for payment.
CONTROVERSIAL USE OF BIG DATA UNDER FIRE State regulators continue to put their foot down on price optimization. The Pennsylvania Insurance Department is one of the latest to officially address the practice – which entails efforts by carriers to tie policy rates to an insured’s odds of “shopping around.” Pennsylvania Insurance Commissioner Teresa Miller recently released Notice 2015-06 “to remind insurers about the Department’s longstanding prohibition against the use of price optimization techniques in property and casualty insurance rates.” By officially banning price optimization, the Pennsylvania Insurance Department joined regulators in nearly a dozen other states. In addition, the National Association of Insurance Commissioners, the Federal Advisory Committee of Insurance, and national media outlets all have raised red flags about price optimization in recent months.
The event culminated a year of IA&Bsupported and Trusted Choice-sponsored events throughout the region, including: • April 28 – Waffles & Wishes, Erie, Pa. • May 10 – Mother’s Day Truck Convoy, Lancaster, Pa. • May 15 – Wish Upon A Star Dinner Dance & Silent Auction, Stroudsburg, Pa. • July 26 – Zack’s 4th Annual Make A Move for Make-A-Wish, Pittsburgh, Pa.
FAIR PLAN MOVES; CANCELLATION, NONRENEWAL NOTICES RECEIVE REVISION If you occasionally do business with the FAIR Plan, take note of its address change. In addition, look for edits to those Notices of Cancellation and Refusal to Renew that require informing the insured of the possible eligibility for insurance under the Pennsylvania Fair Plan Act. Carriers that had included the FAIR Plan’s address in their standard nonrenewal notice must update their notice to reflect the new address of the Insurance Placement Facility of Pennsylvania, which administers the FAIR Plan. The new notices also must be filed for approval with the Insurance Department. The Unfair Insurance Practices Act (Act 205 of 1974) governs cancellations and refusals to renew Homeowners’ policies in the state, including the need to advise insureds about the FAIR Plan.
• Aug. 23 – Wishes on Tap, Lewes, Del. • Oct. 11 – 5th Annual Walk for Wishes, Philadelphia, Pa. Nationwide, Trusted Choice agencies are joining forces to support Make-A-Wish. When we work together, the benefit of our generosity on the charity – and the secondary benefit of advancing the image of the independent agency system – grow exponentially. Watch Agent Headlines for future opportunities to join our fundraising efforts. And visit our Branding Center for tips on building your agency’s brand through community involvement. IABforME.com/MyBrand
WELCOME NEW MEMBERS INSURANCE OFFICES LTD. Leesport, PA CAPSTONE INSURANCE GROUP North Wales, PA J. W. HOBAN & ASSOCIATES INC. Wilkes-Barre, PA GARVEY AGENCY Tannersville, PA DOUGLAS WALLICK AGENCY Camp Hill, PA THOMAS C. STELLWAGEN INC. Bryn Mawr, PA
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PLATINUM PROFILE
Insurance Agents & Brokers proudly recognizes Liberty Mutual Insurance as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.
FOCUSED ON RESULTS FEATURED PARTNER Liberty Mutual Insurance
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t Liberty Mutual Insurance, we’re here to help you reach your goals. You know that having the right kinds of support can make all the difference for your customers. That’s why we make sure you’ve got the technology, services, and local expertise you need, with the flexibility to work the way that’s best for you. From our local underwriters and territory managers to our claims and risk control consultants and Small Business Service Center representatives, our people are committed to one thing: providing the resources and support you need to succeed. We proudly partner with independent agents and brokers in Delaware, Maryland, Pennsylvania, and throughout the Mid-Atlantic region and are committed to helping them grow their businesses. We offer comprehensive coverages to tailor insurance from a family owned start-up to a Fortune 500 global company, and every size and type of business in between.
“Successful businesses are the result of strong relationships. We foster these relationships with our appointed agents by maintaining local decision-making, providing familiar, knowledgeable field staff and offering consistent ease of doing business service and technology.” -Connie Bayne Liberty Mutual Insurance gives its agents a single point of access to a wide range of commercial insurance, including BOP/ package, commercial auto, construction, energy, excess casualty, general liability, multinational, property, third-party administration, umbrella and workers compensation. We are the third largest property and casualty insurer in the United States,* as reported by the National Association of Insurance Commissioners. We’re also ranked on the Fortune 100 list of largest companies in the United States.** Learn more about us at www.libertymutualgroup.com/business. n
REGIONAL HOME OFFICE Fairfield, Ohio REGIONAL OFFICES Camp Hill, PA; Columbia, MD; Fairfield, OH; Lexington, KY REGIONAL LEADERSHIP David Lamparella, Regional Vice President, Chesapeake; Donald Waardenburg, Regional Vice President, Pennsylvania UNDERWRITING OFFICES Camp Hill, PA; Columbia, MD; Delaware Valley, PA; Pittsburgh, PA NATIONAL ACCOUNTS LEADERSHIP Thomas Kelley, Vice President & Managing Director, Mark Morneau, Vice President & Division Underwriting Manager NATIONAL ACCOUNTS UNDERWRITING OFFICE Bala Cynwyd, PA A.M. BEST RATING “A” (Excellent) WEBSITE www.libertymutualgroup.com/business
*based on direct premium written **based on annual revenue
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PRESIDENT Connie Bayne, Business Insurance Mid-Atlantic Region
DECEMBER 2015
PARTNERS PROGRAM
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.
PLATINUM LEVEL
BRONZE LEVEL
ACUITY
Aegis Security Insurance Co
Berkley Mid-Atlantic Group
Agency Insurance Company
Donegal Insurance Group
AmWINS Program Underwriters Inc
Erie Insurance Group
ARI Insurance Companies
Harleysville Insurance
Auto-Owners Insurance Company
Insurance Agents & Brokers Service Group Inc
Bailey Special Risks Inc
Liberty Mutual Insurance
Briar Creek Mutual Insurance Company
MMG Insurance Company
Conemaugh Valley Mutual Insurance Co
Millers Mutual Group
Countryway Insurance Company
Mutual Benefit Group
Encompass Insurance
Penn National Insurance
Foremost Insurance Group
Swiss Re
GMI Insurance
The Main Street America Group
Goodville Mutual Casualty Company
United Fire Group
Guard Insurance Group
Utica National Insurance Group
HM Workers’ Compensation
Brethren Mutual Insurance Company
Insurance Alliance of Central PA Inc
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 IABforME.com to get started.
GOLD LEVEL
Amerisafe Progressive Westfield Insurance
Insurance House Insurance Placement Facility of PA Keystone Insurers Group Inc Lackawanna Insurance Group Lebanon Valley Insurance Company Merchants Insurance Group
SILVER LEVEL
Mercury Casualty
Access Insurance Company
Millville Mutual Insurance Co
American Mining Insurance Co
PennPRIME Municipal Insurance
Cumberland Insurance Group
Reamstown Mutual Insurance Company
Farmers Mutual Insurance Company of Western Pennsylvania
Rockwood Casualty Insurance
Frederick Mutual Insurance Co Juniata Mutual Insurance Co
State Auto Mutual Insurance Company TAPCO Underwriters Inc The Motorists Insurance Group
MAPFRE Insurance
The Mutual Service Office Inc
PSBA Insurance Trust
Travelers
Selective
Tuscarora Wayne Group of Companies
The Philadelphia Contributionship
Zenith Insurance
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REFLECTIONS ACCOMPLISHMENTS, BENEFITS
. . .
I
ndependent agents of Delaware, Maryland and Pennsylvania are the driving force behind our work. As we close out 2015, we pause to share what IA&B accomplished on your behalf over the past year. And we share it through the lens of what IA&B means to you, as your advocate, agency, training, connection and support.
MY ADVOCATE Our lobbyists continued to protect your interests with state regulators and lawmakers, and through their work as your advocate, netted three valuable legislative victories this year: 1) In Delaware, we successfully pushed for passage of House Bill 40. The legislation alleviated the administrative burden caused by requiring notarization of the surplus lines diligent effort form. 2) In Maryland, we secured agent-friendly language in the new ridesharing law. Now drivers must be instructed, in writing, to contact their insurance agent before accepting a request for a ride. 3) In Pennsylvania, we made notable headway to advance our legislative priority to increase the state’s woefully low minimum auto liability insurance limits. The Senate passed the legislation, and two companion bills now reside in House committee.
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MY AGENCY Our Sales Center is an independent agency just like yours. It’s staffed by licensed E&O experts who customized coverage to meet the needs of more than 1,750 policyholders over the past year. We also offered specialized market access to hundreds of subproducers who placed thousands of personal umbrella, workers’ comp, home business and flood policies. Beyond that, our Sales Center is backed by an entire organization that provided award-winning loss-control seminars, manuals for compliance and legal expertise.
DECEMBER 2015
MY TRAINING Our professional training and development offerings continued to evolve. We maintained our commitment to focus on individual agency staff members’ career goals and your agency’s unique needs. One way was through our inaugural Agency CSR Evolution – a full-day conference designed for service staff. Following its resounding success, we began plans to duplicate the event and to add a similar conference for sales staff. In other professional development news, we launched a new e-Training Center to streamline on-demand training and allow us to offer live-streaming classes. We also supplemented our curriculum with seven special topic seminars on varied subjects, including the coordination of business and personal auto policies, flood insurance reforms and business income risks.
ON 2015 AND SNEAK PREVIEWS MY CONNECTION We remained your connection to legislative, industry and financial news. And we continued to provide you with insight and analysis through industry-leading communications. We posted 771 Agent Headlines articles to our website, and then shared weekly Agent Headlines highlights through email. And based on member input, we expanded our social media presence this year to include Facebook. The initiative is part of our Futures Program and aims to give young agents a platform to connect, collaborate and expand their professional network. Finally, this publication saw improvement as part of our commitment to enhancing your member benefits. In February, we unveiled a redesigned, refreshed Primary Agent magazine and introduced a digitally optimized version for smart phones and tablets.
Thanks to our volunteer leaders’ vision, our member agencies’ support, and our staff’s dedication, we logged another successful year at IA&B. Here, we highlight our accomplishments — and share how you benefit from them.
MY SUPPORT We remained responsive to your evolving needs by providing the support members requested, such as branding assistance. In the spring, we launched a Branding Center, an online hub with turnkey resources, including an expansion of our popular consumer education library. And we supported it with a three-month online advertising campaign. And as always, we were on standby to answer your questions on agency management, legal and regulatory compliance, and more. In fact, we completed the legwork to streamline the process: In early 2016 we will launch an online, self-service platform for you to direct and track your inquiries.
CONCLUSION As we count our successes in 2015, we know that they are thanks to your input, your involvement and your membership. And we vow to continue working for you – meeting your needs and supporting your agency – in the year ahead and beyond. n
13
EMPOWERING SMALL AGENCIES
FOR
BIG SUCCESS
7th Annual Executive Management Conference
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DECEMBER 2015
O
ver 100 independent agency principals from across the Mid-Atlantic region attended our seventh annual Executive Management Conference. This year’s event, which was designed for smaller agencies, was held Oct. 27-28 at Bear Creek Mountain Resort, outside of Allentown, Pa. The conference featured several prominent speakers – including Jeff Teschke, Steve Anderson, Sharon Emek, Rick Morgan and partners from Keidel, Weldon & Cunningham, LLP – who discussed a range of topics, from human resources and perpetuation, to technology and E&O prevention. Throughout the conference, workshops focused on the challenges of smaller agencies and provided practical, actionable insight. The event also included opportunities for attendees to network with one another and with sponsors and exhibitors at a traditional welcome reception/tradeshow and in a more casual environment at an evening fall-themed dinner and campfire. n
More photos on next page.
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7th Annual Executive Management Conference
CONFERENCE SPONSORS & EXHIBITORS A sincere thank-you goes to the sponsors whose generous support made our 2015 Executive Management Conference possible. LEAD SPONSORS Donegal Insurance Group Insurance Agents & Brokers Service Group Progressive Additional sponsors Amerisafe Assurant Flood Solutions Berkley Mid-Atlantic Group Conemaugh Valley Mutual Cumberland Insurance Group Encompass Insurance Erie Insurance Frederick Mutual Insurance GMI Insurance HM Workers Compensation Hospitality Insurance Group ICW Group Insurance House Liberty Mutual MAPFRE Insurance Millers Mutual Mutual Benefit Group Pa. Lumbermans Mutual Insurance Penn National Program Brokerage Westfield Insurance
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DECEMBER 2015
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2015-2016 Board of Directors
E. Stephen Burnett, CIC, ARM
Delaware Association of IA&B Chairman Insurance & Financial Services Wilmington, Del.
Michael P. Ertel Sr. PIA National Director The Jacobs Company Columbia, Md.
Diana M. Hornung Hanby, ACSR
IA&B Service Group Immediate Past Chairwoman Thomas J. Hornung & Associates Wilmington, Del.
Robert S. Klinger, LUTCF, CPIA
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IA&B Service Group Chairman Klinger Insurance Group Germantown, Md.
Richard F. Corroon, CPCU
Delaware Association of IA&B Vice Chairman Weymouth, Swayze & Carroon Insurance Wilmington, Del.
Bryan C. Hanes, J.D.
Antietam Insurance Associates Inc. Hagerstown, Md.
Jocelyn R. Howard-Sinopoli, CIC, CISR C.W. Howard Agency Inc. Butler, Pa.
Douglas A. Loesel, CPCU
Loesel-Schaaf Insurance Agency Inc. Erie, Pa.
N. Lee Dotson, CIC, AAI Bellevue Insurance Services Wilmington, Del.
John B. Hollister
IA&B of Pennsylvania Chairman Rodgers-Olver-Polley Insurance Milford, Pa.
David C. King Horst Insurance Lancaster, Pa.
Michael F. McGroarty Sr.
IA&B Service Group Vice Chairman McGroarty & Bradburn Insurance Inc. Pittsburgh, Pa.
Craig S. Mader
Ann Gallen Moll, CIC
Joseph R. Pastor, CPCU, AAI
Richard Rankin, CIC
IA&B of Maryland Chairman Craig S. Mader Insurance Agency Inc. Crofton, Md.
IA&B of Pennsylvania Vice Chairman Barr’s Insurance Oil City, Pa.
Scott C. Rogers, CPIA IIABA National Director The Glatfelter Agency York, Pa.
Gallen Insurance Inc. Shillington, Pa.
Mark J. Monroe
Griffith Insurance, LLP West Chester, Pa.
April E. Ressler, CIC
Murray Securus Lancaster, Pa.
Teeter Insurance Agency Inc. Altoona, Pa.
Glenn R. Strachan
J. Marshall Wolff, CIC, CPCU
IA&B of Maryland Vice Chairman Strachan Insurance Agency Inc. Ft. Washington, Md.
Kressler Wolff & Miller Inc. Easton, Pa.
Lawrence A. Wilson, CIC, CPIA, CPCU, ARM IIABA National Director S.T. Good Insurance New Castle, Del.
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IA&B Financial Reports Attachment A1 INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF ACTIVITIES March 31, 2015
IAB OF PA Revenues: Membership Dues Professional Training Events & Member Products Publications Royalties & Commissions Other Total Revenues
IAB of MD
Combined IAB Associations
DAIAB
469,777 1,516,315 118,948
90,273 384,171 9,246
26,262 57,687 69,347
586,694 3,017 2,694,751
139,973
862 43,828 197,986
623,663
Expenses: Membership Commission Professional Training Events & Member Products Publications Advocacy Corporate & Management Governance Total Expenses
97,058
3,736
5,153
1,179,861 40,969
322,871 8,285
55,209 47,430
39,915 1,233,921 20,232 2,611,956
55,640 252,087 7,289 649,908
Net Operating Income (Loss)
82,795
(26,245)
Other Income (Expense): Contributions & interest to designated funds Depreciation & amortization Interest & dividends on cash equivalents Net investment income PAC income(loss), net of expense Pension expense Life insurance income Deferred compensation expense Pension related changes Income tax benefit (expense) Total Other Income (Expense) Change in Net Assets
586,312 1,958,173 197,541 0 727,529 46,845 3,516,400
835 10,280 (4,615)
87,150 1,960,733 1,519,575 3,567,458
10,488 60,758 7,355 186,393
3,100,509 41,915 3,347,176
11,593
68,143
220,282
2,029 0
(189,532)
614 1,983 3,705
69,497
6,500
6,302
152,292
(19,745)
17,895
Intercompany Eliminations
(4,045)
105,947 0 1,557,941 96,684 0 106,043 1,546,766 34,876 3,448,257
2,029
6,111 66,124 (4,767)
IAB Service Group
(8,000) (14,196) (1,519,567) (1,545,808)
131,956 (49,515) 72,796
7,560 78,387 (5,677) 0 0 0 0 0 82,299
1,449 2,386 (787,675) 69,222 (212,502) 414,956 248,558 (453,138)
150,442
(1,499,575) (1,549,090) 3,282
Combined IAB
582,267 1,958,173 189,541 72,954 2,688,262 46,853 5,538,050
105,947 131,956 1,508,426 96,684 72,796 106,043 3,147,700 76,791 5,246,343 291,707
2,029 (189,532)
(3,282)
(3,282)
(232,856)
0
9,009 77,491 (5,677) (787,675) 69,222 (212,502) 414,956 248,558 (374,121) (82,414)
Attachment A1 INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF FINANCIAL POSITION March 31, 2015 ASSETS IAB OF PA Cash & Cash Equivalents Cash, Premium Fiduciary Account Accounts Receivable Prepaid Expenses Deferred Income Tax Inventory Investments - Mutual Funds & ETFs Total Current Assets
IAB of MD
Combined IAB Associations
DAIAB
1,810,811
293,177
151,437
119,207 84,633
48,842 3,430
13,561 3,283
11,671 1,986,732 4,013,054
98 261,302 606,849
152 264,067 432,500
Property & Equipment, net Cash whose use is limited, board & Donor Designated Inter-corporate Loans Investment in Big I Reinsurance Co. Investment in IAB Service Group Other Assets, Net of Amortization Cash Value, Life Insurance Deferred Income Tax Total Other Assets
417,819 558,624 90,000 486,082
22,484
16,670
102,013
30,000 12,005
IAB Service Group
2,255,425 0 181,610 91,346 0 11,921 2,512,101 5,052,403
463,517 344,546 300,922 64,372 26,400 9,750 60,756 1,270,263
0
1,340,239
1,552,525
124,497
58,675
456,973 558,624 120,000 600,100 0 0 0 1,735,697
Total Assets
5,565,579
731,346
491,175
6,788,100
Total Current Liabilities
1,511,009
Intercompany Eliminations
(367,095)
(367,095)
Combined IAB 2,718,942 344,546 115,437 155,718 26,400 21,671 2,572,857 5,955,571 1,340,239
64,348 1,021,235 483,937 1,569,520
(1,158,724)
456,973 0 120,000 0 64,348 1,021,235 483,937 3,486,732
4,180,022
(1,525,819)
9,442,303
(558,624) (600,100)
LIABILITIES & NET ASSETS
Inter-corporate Loans Retirement Obligations Total Long-term Liabilities
20
289,894
106,368
1,907,271
668,545
(446,797)
2,129,019
478,922 877,888 1,356,810
(478,922)
0 877,888 877,888
100 600,000
(100) (600,000)
0
0
0
0 0 0
Net Assets, unrestricted Capital Stock Additional Paid-in Capital Designated Funds Undesignated Total Net Unrestricted Assets
417,388 3,637,182 4,054,570
22,536 418,916 441,452
16,474 368,333 384,807
0 0 456,398 4,424,431 4,880,829
1,554,567 2,154,667
(600,100)
0 0 456,398 5,978,998 6,435,396
Total Liabilities & Net Assets
5,565,579
731,346
491,175
6,788,100
4,180,022
(1,525,819)
9,442,303
(478,922)
DECEMBER 2015
IA&B maintains a strong balance sheet with $9.4 million in assets, $6.4 million in member equity and no long-term debt, with almost $292,000 net operating income for the year. IA&B supports the activities that our members value – effective advocacy, timely compliance resources and quality education. We’re over 1,300 members strong across three states. Approximately 6,600 participants attend over 185 IA&B classes annually. And members buy more than 1,750 policies for their agency insurance coverage through us. This allegiance to IA&B, combined with our carrier partnerships, supports the financial strength of the organization. The accountants’ review for the fiscal year, which ended March 31, is on file at IA&B headquarters. These statements are a summary of that report.
UPDATE YOUR GOOGLE MY BUSINESS ACCOUNT A
By Steve Anderson, CIC
key to mastering your Internet presence is to create and maintain a Google Business Page for each agency location. This is an essential search engine optimization step every agency should already have in place. It is a simple process. If you have not taken this step, just go to Google My Business (google.com/business) and follow the step-by-step instructions. Once you have completed the verification process, your agency has a higher possibility (there are no guarantees) of showing up in a Google Search results page. UPDATE YOUR EXISTING LISTING For those agencies that have already completed this process, Google is now requiring that U.S. accounts periodically log into their Google My Business account and update any information necessary to prove that the account continues to be active. While Google has not provided specific guidelines, it appears you should log into your account at least once every six months. If Google determines the account might be inactive, they will email the address on the account (make sure that address actually comes to a person in your agency) and
provide a two-week notice of the pending unverification. If the account status is changed, the agency listing will no longer be included in any search results. Here is the notice from Google: In some cases, we may contact Google My Business users via email to confirm that they are still actively managing a business page. If a user is unresponsive to our attempts to contact him or her and has not logged into Google My Business for a significant length of time, then we may unverify pages in the account. We’re doing this in order to continue to provide users
with the best experience when they’re looking for local businesses like yours. If you find that a page in your account has been incorrectly unverified, please contact support [support.google.com/ business] to get assistance restoring verification. It’s a good idea to keep an eye on the inbox associated with your Google My Business (Locations) account. It’s also a good idea to regularly log into Google My Business (Locations) to confirm that your agency information is current and accurate.
21
HEAR FROM STEVE THROUGHOUT 2016
Simply follow these three easy steps: 1. Sign into your Google My Business account. 2. Review and update your information for each page.
CAN’T GET enough of what agency technology expert Steve Anderson has to say? You’re not alone. That’s why we’re excited to offer a webinar series – which we developed and Steve compiled and will facilitate – beginning early next year. The program, which dovetails off of our 2015 Executive Management Conference presentations on agency management system selection and implementation, will consist of 15 one-hour component webinars, with a different agency management system featured each week, delivered through our new My E-Training Center. IABforME.com/AMSwebinars
22
3. Click the “Done editing” button. Make sure to set a reminder or suspense item for every six months and repeat the process. It is up to your agency to make sure your information is accurate. It is also a good time for you to update any keywords and descriptions contained in your listing. Google is constantly trying to make sure the information they provide in a search result is as accurate as possible to enhance the user experience. n Steve Anderson, CIC, authored this piece, which originally appeared as one of his TechTips. Steve is an authority on Insurance agency technology, productivity and profitability – and a frequent presenter at our annual Executive Management conference. Check out his free weekly newsletter, “TechTips,” and other resources for the insurance industry at steveanderson.com.
DECEMBER 2015
Training where, when and how you want it.
My E-Training Center is IA&B’s new online portal for on-demand CE and webinars.
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DECEMBER 2015
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CLASSIFIED A DV E R TI S E M E N TS
My Events
SOUTHEAST PA PRODUCERS & AGENCIES
December 2015 DATE TOPIC
LOCATION
DECEMBER 1
William T. Hold: Policy Language Surprises
Lancaster, PA
1-3
PA P&C Licensing Study Course
Mechanicsburg, PA
1-3
PA P&C Licensing Study Course
Pittsburgh, PA
2
E&O Risk Management: Meeting the Challenge of Change
Newark, DE
2-5
CIC Personal Lines Institute
Philadelphia, PA
8
CISR Commercial Casualty II
Philadelphia, PA
8
Business vs. Personal Auto
Pittsburgh, PA
9
CISR Commercial Property
Mechanicsburg, PA
Professional agency since 1926 located in Feasterville, Bucks County, Pa. Call for confidential information and a review of our services. Contact Ray Reinard at 215-357-8600, Ext. 119. If you would like to place a classified advertisement, please contact Laura Gaenzle at Laura.gaenzle@theygsgroup. com or (717) 430-2351.
Right Policy. Right Price. Every Time. www.interstate-insurance.com