Pennsylvania Primary Agent - December 2017

DECEMBER 2017 | PENNSYLVANIA

REFLECTIONS AND RESOLUTIONS

ADDITIONAL INSURED ISSUES COMPUTER SHORTCUTS FACULTY SEND-OFFS

THERE’S more FOR YOU AT MILLERS.

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At Millers, we have deep expertise in insuring multifamily housing; and put that to good use by offering unique products, creative solutions, and flexible underwriting.

We’re able to give you greater value – and a competitive advantage – in property & casualty coverage for low rise multifamily housing because we’re immersed in the apartment associations’ world, where we learn firsthand from property owners and managers what insight and product enhancements are most important.

Insurance Products: • Business Owners Policy

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• Apartment Property Damage Liability • Vacant Property Coverage • Employment Practices Liability Insurance • Umbrella Liability Coverage • Workers Compensation

To learn more, contact one of our Underwriting Leaders: Scott Billett at 717-237-7202 or sbillett@millersinsurance.com Derek Shaffer at 717-237-7244 or dshaffer@millersinsurance.com

800.745.4555 millersinsurance.com Rated A- (Excellent) by A.M. Best Rated A Prime (Unsurpassed) with Demotech ©2017, Millers Mutual Group, Harrisburg, PA

MULTIFAMILY H O U SING | A FFO R D A B L E H O U S IN G | C O M M ER C IA L R EA L ES TATE

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921 $75,000

IN THIS

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IA&B BY THE NUMBERS Take a look at highlights from the year, including how IA&B member agents contributed to them and how you can benefit.

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SEVEN RESOLUTIONS TO IMPROVE AGENCY STRUCTURE Hear from agency consultant Chris Burand about what works and what doesn’t, and then resolve to improve your agency structure for the year ahead.

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IN EVERY ISSUE

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Chairman of the Board’s Message Ask Our Experts Coverage Corner State News IA&B Partners Technology Update Advertiser’s Index My Events Classified Ads

JOIN US ON SOCIAL MEDIA

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.

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Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2017-12, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2017. 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

INSURANCE AGENTS & BROKERS

TIMES CHANGE

5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

OFFICERS

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Chair of the Board

reetings from Northeast Pennsylvania, where change is in the air. As the final leaves drop in the Pocono Mountains, the golf courses (sadly) are closing up shop for the season. Meanwhile, activity at the area ski resorts is just ramping up.

It is the season of change, after all, with the new year just around the corner.

And that transition always brings a sense of optimism, energy and possibility.

At your agents’ association, the winds of change are blowing, too. The staff is refining the IA&B brand by honing in on the member experience. You’ll notice a difference in the months ahead as they streamline IA&B communication and zero in on what’s important to you.

On the board level, there’s a sense of excitement, too. At our fall meeting, we approved a revamped Partners Program, which will provide greater benefit to our member agents and carrier partners alike. Plus, we accepted the recommendations of the Futures Task Force, which will keep young agents and industry perpetuation at the forefront of IA&B’s work.

Finally, I would be remiss if I didn’t mention another change: As of Jan. 1, Jason Ernest, Esq. will become president and CEO of IA&B. He takes the reins from Rick Russell, who will retire after nearly four decades with the organization. While the transition will be seamless to IA&B members, it is worth noting that the board of directors is confident and enthusiastic about the organization’s future under Jason and incredibly grateful for how far IA&B has come under the Rick’s leadership.

May you have a healthy and happy holiday season – and positive changes in the new year. n

John B. Hollister

Vice Chair of the Board

Craig S. Mader

Immediate Past Chair of the Board

Michael F. McGroarty Sr.

MEMBERS Emory Stephen Burnett, CIC, ARM Wilmington, Del.

Richard F. Corroon, CPCU Wilmington, Del.

Michael P. Ertel Sr.+ Columbia, Md.

Ashley M. Fitzsimmons, CISR Forest City, Pa.

G. Greg Gunn, CIC* Lemoyne, Pa.

Bryan C. Hanes, JD Hagerstown, Md.

David C. King Lancaster, Pa.

Lisa A. Leach Goth, CIC New Bethlehem, Pa.

Elizabeth H. Martin, CIC Millersville, 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.

D. Bradley Rosenkilde Jr. Hunt Valley, Md.

Tara S. Silfies, CPCU Bethlehem, Pa.

Glenn R. Strachan

Ft. Washington, Md.

All the best,

Bryan S. Willey Dover, Del.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** Newark, Del.

J. Marshall Wolff, CIC, CPCU Easton, Pa.

John Hollister Chairman of the Board

* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director

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DECEMBER 2017

Ask Our Experts Don Bankus, our legal affairs manager, provided this month’s answer.

Question: Are there steps we can take to mitigate our website-related E&O exposures?

Answer:

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reat question, and, yes, there certainly are! What information you include or don’t include on your website – as well as what steps you do or don’t take to protect customer data – can be used to support or strengthen an E&O claim against the agency.

Statements or information you might consider innocent or benign can unintentionally increase the agency’s duty of care to its customers and prospects, which can be harmful to and weaken your E&O defense in a claim situation.

With that in mind, the following are some do’s and don’ts to consider when creating, updating or reviewing your agency’s website:

DO’S • Accurately specify states in which the agency is licensed; • Clearly state that both misstatements or omissions of relevant information provided by current and prospective customers can result in price variations, or declinations or rescissions of coverage; • Clearly state that requesting coverage does not guarantee that coverage can or will be provided.

Coverage can only be initiated/ confirmed via a specific statement from a licensed member of the agency’s staff;

• Clearly state that information requested in order to provide a quote or policy revision will not be shared without the applicant’s permission;

• Include language promising absolutes, such as “addressing all of your coverage needs,” “constantly reviewing” or “immediate response time”;

• Clearly state via a disclaimer that information provided on the website is not a guarantee that insurance can or will be provided, or that the agency is obligated to procure insurance for website visitors;

• Utilize a quote mechanism, and then fail to respond in a timely manner;

• Include a Privacy Statement, and encrypt any and all pages which collect personally identifiable information provided by a customer or prospect, including online quote forms; • Request and obtain written consent from carriers if you use their name and/or logo on your website.

• Utilize open text boxes for customers and prospects to type messages, unless the information is adequately encrypted; • Launch a website without carefully reviewing its content. Many template agency websites or web designers likely won’t consider or be aware of E&O ramifications specific to an insurance agency. It might not hurt to also contact your E&O carrier and request their input as well. n

DON’TS • State that the agency does things or provides services it doesn’t do or provide; • Include language that expressly states, or can be interpreted to suggest, that any claim will be fully covered; • Include language such as “exceptionally skilled,” “expert,” “specialist” or “partner” to describe the agency and/or its staff, or language such as “fully covered” or “guarantee” to describe the product;

Have a question? Ask our experts!

Rely on our experts – Advocacy Senior Director Claire Pantaloni, CIC, CISR and Legal Affairs Manager Don Bankus – 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.

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COVERAGE CORNER

THE ADDITIONAL INSURED PROBLEMS CONTINUE

By Jerry M. Milton, CIC

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his case definitely belongs in “Ripley’s Believe It Or Not.” Keep reading, and I think you’ll agree with me.

Dick’s Sporting Goods sold a piece of exercise equipment that is called a “stability ball.”

The customer was using the ball and was hurt when the ball suddenly burst. The customer sued Dick’s for his injuries.

Fortunately, the vendor satisfied the requirements of its contact with Dick’s:

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It carried liability insurance and named Dick’s as an additional insured on the liability policy.

The vendor’s liability insurer denied coverage for Dick’s, and Dick’s sued the insurer for defense and indemnification.

Instead of a defense by the vendor’s insurer, Dick’s additional insured status gave the company the right to go to China to litigate. The policy under which Dick’s was an additional insured was issued by the China-domiciled PICC Property & Casualty Company. That policy specified that any suit against

DECEMBER 2017

PICC must be brought in the People’s Republic of China.

The case is Dick’s Sporting Goods, Inc. v. PICC Property & Casualty Co. LTD. Suzhou Branch, No. 2:16-cv-01635DSC-RCM (W.D. Pa. August 31, 2017).

What do we do now? The following old lessons still apply, and the same old questions must be answered: • What endorsements are required by the contract; e.g., CG 2010 and CG 20 37?

CONTRACTS AND LEASES CONTINUED We can no longer rely on a Certificate of Insurance. What does it tell us? Nothing!

LEARN MORE about the insurance requirements of contracts and leases in our upcoming “Contracts & Leases” William T. Hold seminar, written by the one and only Jerry Milton.

Submitted for 7 CE credits, the seminar uses real-world claim scenarios to explain a range of topics, including:

• Contractual liability

• Indemnification agreements

• What persons and/or entities must be included as additional insureds?

• Insurance requirements

• Additional insured problems

• What endorsement edition date is required by the contract; e.g., 10/01?

• Requirements of leases

• Auto renewal agreements

• Certificates of insurance

Do we now need to get a copy of the policy, read it, and determine in what country the insurance company can be sued? I just don’t know any more. I do know that we can no longer rely on a Certificate of Insurance. What does it tell us? Nothing!

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.

Catch “Contracts & Leases” at any of the 11 locations we’ll offer it throughout 2018.

• March 28 – Allentown, Pa.

• March 29 – York, Pa.

• April 4 – Baltimore, Md.

• April 17 – Altoona, Pa.

• May 24 – Lancaster, Pa.

• June 12 – Mechanicsburg, Pa.

• June 13 – Philadelphia, Pa.

• July 26 – Pittsburgh, Pa.

• Oct. 30 – Wilkes-Barre, Pa.

• Dec. 11 – Reading, Pa.

• Dec. 13 – Hagerstown, Md.

IABforME.com/MyTraining

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STATE NEWS

COURT APPROVES EXCLUSION OF COVERAGE FOR SOME LIVE-INS In Safe Auto v. Guillermo, et al., the Pennsylvania Superior Court was asked to evaluate and rule on the validity and enforceability of an Unlisted Resident Driver Exclusion in an auto policy.

The policy in question contained an Unlisted Resident Driver Exclusion, which expressly excluded from coverage individuals who lived with the policyholder, but were not related to the policyholder, and whom the policyholder did not specifically list on the policy as an additional driver.

TEAMING UP TO SUPPORT MAKE-A-WISH Our staff joined member agent Rita McMullen, of PDM Insurance Agency Inc. in Chambersburg, to support this fall’s Walk for Wishes in Hershey, Pa. to benefit Make-A-Wish of Philadelphia, Delaware & Susquehanna Valley. In total, we raised just shy of $1,000 to help grant the wishes of local children with life-threatening medical conditions.

Trusted Choice sponsored the Hershey Walk for Wishes, as well as those in Philadelphia and Wilmington, Del. It’s part of a collective effort among independent agents countrywide to support their local Make-A-Wish chapters.

In the underlying case, Rachel Dixon was driving a car owned and insured by her boyfriend, Rene OrientalGuillermo, with whom Ms. Dixon resided. While Ms. Dixon had her boyfriend’s permission to drive his car, she was neither a family member of the insured, nor was she listed as a driver on his policy. As fate would have it, Ms. Dixon was involved in an accident, which resulted in injury to the occupant of the other vehicle.

The court determined: • That the language in the Safe Auto policy was clear and unambiguous;

WELCOME NEW MEMBERS ABDALA INSURANCE Coatesville, Pa.

INSURANCE CONSULTANTS OF PITTSBURGH Pittsburgh, Pa.

BACK MOUNTAIN PROFESSIONAL INSURANCE Luzerne, Pa.

MAIN STREET FINANCIAL PARTNER Gilbertsville, Pa.

CHARIS INSURANCE GROUP INC. Lititz, Pa.

W. E. SWANSON AGENCY INC. Kane, Pa.

HOAK INSURANCE SERVICES Brookville, Pa.

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DECEMBER 2017

• That no statutes in Pennsylvania prohibit the inclusion of an Unlisted Resident Driver Exclusion within a policy, nor is the exclusion against public policy; and • That Safe Auto had no duty to defend or to provide coverage for claims arising from the accident.

The appellant in the case had until Wednesday, Oct. 18 to file an appeal of this decision to the Pennsylvania Supreme Court. We will continue to monitor the case and keep members informed. In the meantime, our legal brief on the case is available on our website.

REPERCUSSIONS The court’s decision could result in an influx of statutory bad faith cases proceeding to trial, which further opens the door for courts to take any or all of the following additional actions against a carrier when finding on behalf of a policyholder:

IABforME.com/safeauto_v_guilermo

• A ward interest at the rate of prime plus 3 percent on the amount of the claim from the date the claim was made (bad faith litigation can often take many years, so this could represent a rather substantive amount);

Note: If your carriers’ policies do not include the Unlisted Resident Driver Exclusion, consider turning this case into a competitive advantage.

UTICA RETENTION AWARD A SIGN OF OUR SATISFIED CUSTOMERS Our E&O policyholders keep coming back for more. In fact, at this fall’s Utica National E&O17 Conference, our team received recognition for our 98 percent retention rate.

Our team prides itself in providing hands-on service to tailor coverage and advocating on behalf of our policyholders. The Utica National Retention Award proves that our efforts are working!

IABforME.com/MyAgency

COURT ALTERS LANDSCAPE FOR BAD FAITH LITIGATION After a 23-year wait, the Pennsylvania Supreme Court recently provided its highly anticipated opinion on bad faith insurance claims in the state. The court’s unanimous decision in Rancosky v. Washington National Insurance Co. removes what historically has been argued to be a very subjective element.

The result should be clarity and uniformity for future bad faith cases in Pennsylvania and a more level playing field for policyholders.

• Assess court costs and attorneys’ fees against the carrier; and • Most significantly, award punitive damages against the insurer (punitive damages can be awarded as a way to punish a party for “outrageous” conduct and to deter others from similar conduct in the future).

BACKGROUND Since 1994, in order to win a claim for statutory bad faith in Pennsylvania, a policyholder needed to prove that the carrier acted with a motive of self-interest, malice or ill will in denying benefits due under the policy. For more than two decades, carriers have relied successfully upon this requirement to quash bad faith claims. In Rancosky, the court unequivocally rejected that argument.

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PLATINUM PROFILE

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hen Mutual Benefit Group announced in September 2017 that it had been named one of the Best Places to Work in PA for the seventh time, one agent partner responded with this congratulatory e-mail: “And dare I say it’s one of the best insurance carriers to represent as well!”

Is there a correlation between being one of the best carriers to work for, and being one of the best carriers to represent as an independent agent? MBG thinks so!

When asked what gets them “fired up” about coming to work, MBG employees responded: • “The people that I work with are smart and know what they’re doing. That keeps me on my toes to do the best I can.”

• “The people in charge really listen to us. It is very refreshing to actually work for someone who has your best interests at heart.”

• “I am appreciated and love the work that I do, knowing that I contribute to a fine organization.”

• “I am given the independence and authority to do my job using my experience, training and education to further the interests of the company.”

• “I know I am providing excellent service to agents and policyholders, all while having fun.”

Insurance Agents & Brokers proudly

education, high quality benefits that include flexible hours, and competitive compensation. In addition, employees are encouraged to view an insurance career not as just another job, but as a calling that contributes to the security of those they serve.

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

When employees are treated well both personally and professionally, appreciated, respected, and challenged to be their best by boss and colleague alike, they are bound to pay it forward to agents and policyholders. Their smiles can be “heard” on the phone. Their compassion calms anxious claimants.

Their empowerment translates into integrity, dependability, accessibility, and flexibility as they work with agents to write business, and as they respond to policyholders’ needs.

A “Best Place to Work” not only attracts the “best people”; it also retains them. MBG’s employee turnover rate is currently 6.3%, significantly lower than the insurance industry average of 12%. That is particularly beneficial to agents who get to work with the same experienced underwriters year after year, and to policyholders who know they will have a seasoned adjuster handling their claim.

MBG hopes your agency will give us the opportunity to let our “best” benefit you. n

Over the years, MBG has nurtured a corporate culture that expects employees to take the high road; to listen actively; to respond quickly; to serve compassionately. The Company has a long history of commitment to employee

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recognizes Mutual Benefit Group as one

DECEMBER 2017

FEATURED PARTNER Mutual Benefit Group CHIEF EXECUTIVE OFFICER Steven C. Sliver, President and CEO HOME OFFICE LOCATION Huntingdon, Pennsylvania A.M. BEST RATING A- (Excellent)

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.

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.

PLATINUM LEVEL

BRONZE LEVEL

ACUITY

Aegis Security Insurance Company

Agency Network Exchange LLC

Agency Insurance Company

Amerisafe Berkley Mid-Atlantic Group Brethren Mutual Insurance Company

Auto-Owners Insurance Company

Donegal Insurance Group

Berkshire Hathaway GUARD Insurance Companies

Erie Insurance Group Insurance Agents & Brokers Service Group Inc Liberty Mutual Insurance

Briar Creek Mutual Insurance Company Conemaugh Valley Mutual Insurance Co

MAPFRE Insurance

Countryway Insurance Company

MMG Insurance Company

Encompass Insurance

Millers Mutual Group Mutual Benefit Group Nationwide Insurance Company

Goodville Mutual Casualty Company Grinnell Mutual Reins Company

Penn National Insurance

Insurance Alliance of Central PA Inc

Plymouth Rock Assurance

Insurance Placement Facility of PA

Swiss Re The Main Street America Group United Fire Group Utica National Insurance Group GOLD LEVEL Progressive Universal Property & Casualty Insurance Company Westfield Insurance SILVER LEVEL CM Regent Insurance Company

Watch for a revamped IA&B Partners program in 2018.

Beginning in the new year, our sponsorship program will offer greater benefits for our company partners and member agents alike.

AmWINS Program Underwriters Inc

Cumberland Insurance Group Farmers Mutual Insurance Company of Western Pennsylvania Juniata Mutual Insurance Company Keystone Insurers Group Inc

Johnson & Johnson Kite Technology Group Lackawanna Insurance Group Lebanon Valley Insurance Company Merchants Insurance Group Millville Mutual Insurance Company PennPRIME Municipal Insurance Reamstown Mutual Insurance Company Rockwood Casualty Insurance State Auto Mutual Insurance Company Strategic Comp TAPCO Underwriters Inc Travelers

Selective

Tuscarora Wayne Group of Companies

The Hanover Insurance Group

Zenith Insurance

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I A &B BY THE N U M Highlights of 2017 25/50/10 Delaware’s new minimum auto liability limits, championed by IA&B and effective on Dec. 13

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$75,000 Money raised for Maryland Gov. Larry Hogan’s re-election campaign during an insurance industry event co-hosted by IA&B

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Additional member agencies visited by staff for the #IABvisits campaign Topics available in the new, on-demand “Quoting, Writing and Servicing” training series for newly licensed producers

8,246

Average monthly visitors to

IABforME.com

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Additional agency agreement Seals of Approval granted

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Futures Task Force members who studied ways for IA&B to support young agents

MBERS

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Average weekly offering of live

CE webinars

921

Producers who participated in the initial Northeast Alliance Carrier Survey on personal lines carriers’ technology

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Employment law updates covered by new HR Bulletins on the IA&B website

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IA&B members in attendance at the Big “I” National Legislative Conference

marked by this year’s Delaware convention

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Courses available in the new

introductory training series for new agency employees

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Compliance counseling services added to Independent Agency Solutions offerings

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2017-2018 Board of Directors

E. Stephen Burnett, CIC, ARM

Weymouth, Swayze & Corroon Insurance Wilmington, Del.

Ashley M. Fitzsimmons, CISR

G. Greg Gunn, CIC

Fitzsimmons Insurance Agency Inc. Forest City, Pa.

IIABA National Director Gunn-Mowery, LLC Lemoyne, Pa.

John B. Hollister

David C. King

Craig S. Mader

Elizabeth H. Martin, CIC

IA&B Service Group Chairman Sheeley Insurance Agency Milford, Pa.

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Richard F. Corroon, CPCU

Insurance & Financial Services Wilmington, Del.

IA&B Service Group Vice Chairman Craig S. Mader Insurance Agency Inc. Crofton, Md.

Horst Insurance Lancaster, Pa.

Martin Insurance Agency Millersville, Pa.

Michael P. Ertel Sr. PIA National Director The Jacobs Company Columbia, Md.

Bryan Hanes, J.D.

IA&B of Maryland Chairman Antietam Insurance Associates Inc. Hagerstown, Md.

Lisa A. Leach Goth, CIC Charles P. Leach Agency Inc. New Bethlehem, Pa.

Michael F. McGroarty Sr.

IA&B Service Group Immediate Past Chairman McGroarty & Bradburn Insurance Inc. Pittsburgh, Pa.

Mark J. Monroe

IA&B of Pennsylvania Vice Chairman Griffith Insurance, LLP West Chester, Pa.

April E. Ressler, CIC

Teeter Insurance Agency Inc. Altoona, Pa.

Glenn R. Strachan

Strachan Insurance Agency Inc. Ft. Washington, Md.

Joseph R. Pastor, CPCU, AAI Barr’s Insurance Oil City, Pa.

D. Bradley Rosenkilde Jr. IA&B of Maryland Vice Chairman Rosenkilde & Associates Hunt Valley, Md.

Bryan S. Willey

Delaware Association of IA&B Chairman Harrington Insurance Agency Dover, Del.

Richard Rankin, CIC

IA&B of Pennsylvania Chairman Murray Securus Lancaster, Pa.

Tara S. Silfies, CPCU HMK Insurance Bethlehem, Pa.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM IIABA National Director Delaware Association of IA&B Vice Chairman S.T. Good Insurance New Castle, Del.

J. Marshall Wolff, CIC, CPCU Kressler Wolff & Miller Inc. Easton, Pa.

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RESOLUTIONS TO IMPROVE AGENCY STRUCTURE

By Chris Burand

Author Chris Burand has over 20 years of experience consulting with independent agencies. He has seen what works – and what doesn’t – so on the following pages he offers his “wish list” for an ideal agency structure. Give it a read, and see what resonates for your own agency.

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f I could build the perfect agency structure and culture, here is what I would build:

1. RELATIONSHIPS … TO AN EXTENT Relationships are key. The value of relationships is zero in today’s world…. Both statements are true. Relationships really still matter internally to the agency and externally to vendors and clients. Relationships are crucial for getting things done.

Simultaneously though, relationships have much less (to sometimes zero) value today. Trying to make things happen using relationships only is a bad strategy. It truly used to work, and I see so many people keep trying this today, and in doing so, they just keep digging their hole deeper and deeper. Examples are: Producers: A non-performing producer is not going to begin performing just because a relationship exists. If the producer valued the relationship, they would already be performing. If they valued their relationships with prospects adequately, they would already be selling the right coverages and providing great risk management advice to their clients.

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Carriers: Local relationships may or may not matter, but either way, they do not matter at the decision-making level. For the most part, with just a few notable exceptions, the vast majority of local company people have authority to say “no” but not “yes.”

Only having authority to say “no” limits the opportunity for relationships to develop.

The best an agency can hope for, in all reality, is for the local person to support the agency when elevating issues higher. At the higher levels, company executives care about your results. Period.

They do not care about anything else. Obviously, if they know you, they might care about your health, family, etc., but really, your relationship at that level is all about performance. At this time, that performance is really all about organic growth. Loss ratios are only important at extremes (good and bad).

I constantly see agency principals excessively depending on relationships without regard to their agency’s performance. Even when it works, given the tenure these days of many company people, reliance on one strategy is risky.

DECEMBER 2017

Continued on page 18

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Continued from page 16

2. AN ACCOUNTABILITY STRUCTURE Relationship-centric people are rarely accountability-centric people. They feel accountability damages relationships.

Accountability improves business relationships. Accountability only creates stress for people who cannot stand to be held accountable. Not much future exists with that mind set.

3. JOB DESCRIPTIONS FOR OWNERS AND EXECUTIVES A job description for every owner is key so they can be held accountable. To the best of my ability, I would align their unique skills with their job description. I would pair owners/ executives with people of complementary strengths. I doubt I would allow any single person (outside a real small agency) to run an agency because no one person has all the skills required.

Even if they possess the skills, odds are about 100 percent they are not comfortable operating within certain realms.

For example, I know many agency owners who are completely competent figuring out what needs to be done, but they are completely incompetent when it comes to actually executing a strategy or having a difficult discussion with an employee or making unpopular decisions. These people need to be paired with someone for whom such actions are not uncomfortable.

6. IT OUTSOURCING I would hire the best third-party agency management system consulting firm specific to my system to help me with even the most minute aspects, from the system settings to report formats to training to annual reviews. It has been my experience that many agencies are missing 10-20 percent productivity improvement gains by not making this deep investment.

These seven points make a large, positive difference. Many agencies do one or two, but rarely all seven. In the new year, why not resolve to try at least five? Then see for yourself if your success increases.

STRONG EMPLOYEE-MANAGEMENT practices can make a notable difference with agency stability, perpetuation and compliance. As such, author Chris Burand suggests addressing producer accountability, creating a nurturing environment, and even outlining executives’ job duties.

IA&B has a resource for that. Your membership grants you access to HR Solution© – a comprehensive suite of products and services designed specifically to support the development and maintenance of independent agency’s HR program. This includes complimentary consultation services and discounted professional services from our contracted HR consultant.

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5. FOCUS, FOCUS, FOCUS Every producer would have to choose a part of the market upon which to focus. Whether the focus is by size, SIC code, or whatever else does not really matter. The agency would also choose, using larger parameters, a focus. All employees, carriers, and clients would have to fit the focus.

7. ANNUAL AUDITS I would spend the money on annual outside reviews. Whether the review is a periodic E&O audit or an agency valuation or a strategic plan, I’d take the time and spend the money to do this.

I would build these items into a scheduled rotation.

HR HELP

IABforME.com/emp_mgmt

4. A NURTURING CULTURE Too many agency owners confuse nurturing with being the opposite of being accountable. The best nurturing has significant straightforward accountability. I’d build a culture that focuses on nurturing my employees’ strengths. I’d build a culture focusing on educating clients regarding coverages, exposures and risk management. That focus is so much more fun than just selling insurance, at least to me.

Chris Burand is president of Burand & Associates, LLC, an insurance agency consulting firm.

Readers may contact Chris at 719-485-3868 or chris@burand-associates.com.

NOTE: None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article.

Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.

DECEMBER 2017

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19

TECHNOLOGY UPDATE

A SHORTCUT TO A BETTER EXPERIENCE

By Daniel Gilbert

T

here are only so many hours in the day – how can we possibly expect to get everything done? What’s worse is that a lot of the tasks we perform every day are monotonous and only take up our time because they involve multiple clicks, drags, keystrokes, or other mechanics of operating the computer.

Microsoft recognizes this and, in an effort to boost usability,

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implemented several different shortcuts in its operating systems which make repetitive tasks a snap. Many people do not realize how much simpler and quicker everyday tasks can become when those strategic shortcuts are put to good use.

Let’s start with a simple example. Imagine a computer with two monitors (if you have such a workstation, feel free to follow

NOVEMBER DECEMBER 2017

along yourself). You have a maximized window on the left-hand screen that you want to get moved over to the right-hand screen.

You can follow these steps to accomplish this:

SHORTCUT FUNCTION Ctrl + Shift + Esc

Opens Task Manager

1. Click the Restore ( of the window.

Alt + F4

Closes active window

Win + E

Opens Windows Explorer (File Explorer)

Win + D

Minimizes all windows to reveal desktop

Win + L

Locks the computer

) button at the top-right

2. Position your cursor over the title bar of the window.

3. Click-and-drag the window to the right and into the center of your right-hand monitor.

4. Click the Maximize ( of the window.

) button at the top-right

Pretty simple, and gets the job done, right? I think we can do a bit better, though. Get the window moved back over to the left, and let’s start again. Only this time let’s modify our instructions a bit, as follows: 1. Position your cursor over the title bar of the window.

2. Click-and-drag the window over to the right-hand monitor and move your cursor all the way to the top of the screen and release the mouse click.

This should have had the same effect as the original instructions – a window starts maximized on the left-hand and ends up maximized on the right-hand screen. However, for those of you who are feeling daring enough, why don’t we try one more time? But let’s use a keyboard shortcut this time. Get your window back over to the left-hand screen, and then follow this single step: 1. Be sure that the window you want to move is currently active, hold down the Win ( ) key and the Shift ( ) key, and push the R-Arrow ( ) key.

It may feel a bit clunky at first, but once mastered, simple keyboard shortcuts like this can yield a lot of saved time in repetitive tasks. Keyboard/mouse shortcuts are not very well advertised, which is why so many people are not even aware they exist.

I believe that we should all spend some time getting familiar with simple shortcuts and give them the chance to help us perform our daily tasks more quickly and more comfortably. A quick search on Google will return plenty of keyboard/mouse shortcuts available in Windows (and in certain applications), but here are a few of my personal favorite for you to try on your own:

Win + Left/Right Arrow Docks active window to the left or right side of the current screen Win + Up Arrow Maximizes active window on current screen Win + Down Arrow

Minimizes active window

Win + X Opens advanced tools Start menu (Windows 8 and higher only) Win + I Opens Settings menu (Windows 8 and higher only) Ctrl + Enter Sends email that is currently open (Outlook) Tab / Shift + Tab Scrolls forward / backward through web controls (Web Browser mostly) F5

Refresh web page (Web Browser)

Ctrl + Shift + Down Arrow

Highlight entire column of data (Excel)

If you are interested in more keyboard shortcuts, check out this Microsoft link: https://support.microsoft.com/en-us/ help/12445/windows-keyboard-shortcuts n aniel Gilbert, director of managed services, has been D part of the Kite Technology team for six years. Daniel enjoys leveraging technology to drive automation. He spends much of his workday implementing solutions that eliminate computer issues and improve his clients’ experience. Daniel is an active blogger and enjoys writing articles about new technology.

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With

thanks

A FACULTY SEND-OFF

Jim (right) celebrating his retirement with fellow CIC education consultant, Jerry Milton

A

s 2017 comes to a close, we recognize three of our long-time instructors – Jim Harrison, Larry Hollada and Rita Hollada – who will begin their next adventures in the new year!

JIM HARRISON We’ve been fortunate to have Jim as one of our CIC education consultants for over 20 years. Jim has been an integral part of our CIC program throughout Pennsylvania, Maryland and Delaware by supporting our students and upholding the professionalism of the program. We’ll miss seeing Jim on a regular basis but look forward to new opportunities to work together.

LARRY & RITA HOLLADA We’ve been blessed by the knowledge and teaching abilities of not one but two Holladas for over 30 years. Larry and Rita long have been associated with our CIC and CISR designation programs, as well as our special topic seminars and pre-licensing courses. They both have a talent for making course content understandable and relatable. We wish them well as they take time to relax and enjoy non-business travel.

JOIN US IN WISHING THEM WELL WE WELCOME your wishes on behalf of Jim, Larry and Rita. Please feel free to send a note, card or message to IA&B, and we’ll forward it to our friends.

Send correspondence to:

Larry and Rita (pictured with IA&B CEO Rick Russell, right) enjoying the 2017 Delaware Convention

Jim Harrison, Larry Hollada or Rita Hollada IA&B 5050 Ritter Road Mechanicsburg, PA 17055 Or simply email IAB@IABforME.com.

22

DECEMBER 2017

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