Primary Agent - December 2010 - MD Edition

MARYLAND

ALSO INTHISISSUE: ________________ Company Satisfaction Index results Executive Management Conference recap

Our Stability Stands the Test of Time

Donegal Insurance Group has achieved the Ward’s 50 for 6 consecutive years.

Donegal Insurance Group is committed to delivering a better value to an ever-expanding network of independent agents. Making the Ward’s 50 Benchmark Group for property-casualty insurance companies for the sixth consecutive year shows how we combine safety, consistency, and strong performance to provide peace of mind. But in the end, it’s our long-term stability that makes us a valuable part of the independent agency system.

Call today and find out how you can put Donegal’s stability to work for you.

Call Rick Kelley, Senior Vice President

800-877-0600 www.donegalgroup.com

I used to think EMC was ju st for niche commercial programs.

Then again, I used to think that chocolate milk came

from brown cows.

MAKE EMC YOUR CHOICE FOR MAIN STREET BUSINESS When you think main street business, start thinking about the EMC Choice® Businessowners Program. Small and midsize businesses will enjoy the flexible coverage options designed to meet their specific insurance needs, the added value of free loss control services, plus the responsive service from an EMC branch office nearby. So if you still think EMC is just for niche programs, think again. Count on EMC ® for your main street commercial lines marketing, too. For more details, contact your local EMC branch office.

Valley Forge Service Office: 800.362.3620 | Home Office: Des Moines, IA

www.emcinsurance.com

© Copyright Employers Mutual Casualty Company 2009 All rights reserved

Contents

12

PRIMARY AGENT MAGAZINE Member Agent Panels: Building blocks of success Twice a year they gather. They catch up over breakfast or lunch, and then they get down to business – talking industry issues and trends, sharing struggles and accomplishments, and driving their association forward. Welcome to IA&B’s Member Agent Panels.

22

Page 12 Straight talk: Members rate their carrier experiences Every two years IA&B members receive a fresh perspective on carrier performance. The association’s biennial Company Satisfaction Index (CSI) allows them to rate – and then review and compare – their carrier experiences.

Page 22

24

Technology tips help agency owners run tighter ships Welcome to the information age, where advancements occur at a more rapid pace – and have a greater influence on daily existence – than ever before.

Members spoke, and IA&B responded to their uncertainties, frustrations and learning curves with the October 2010 Executive Management Conference, dedicated to technology.

Page 24

In every issue 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.

4 5 6 8 9

Chair of the Board’s Message Member FAQ State News Preventing Errors & Omissions Glance at Events

10 21 28 28 28

Coverage Corner IA&B Partners 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 PO Box 2023 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 # 2010-12) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

Copyright 2010. 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

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

How slowing down can move you ahead

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. N. Lee Dotson, CIC, AAI Wilmington, Del. John L. Frankenfield Telford, Pa. G. Greg Gunn, CIC Lemoyne, Pa. Diana M. Hornung-Momot, ACSR Wilmington, Del. Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa. Robert S. Klinger, LUTCF Germantown, Md. Michael F. McGroarty Sr. Pittsburgh, Pa.

‘Tis the season … to run, run, run from one obligation to the next.

To make your list of to-dos, check it twice and then run some more. And then there’s the office, as hectic as ever with January renewals around the corner.

I encourage you to stop. For a few moments, put down the BlackBerry, the laptop, the stack of expense reports. Instead, pick up mug of coffee and put up your feet. Reflect on the year, where you and your agency have succeeded and where you aim to improve.

IA&B does the same thing — throughout the year. Your association’s Member Agent Panels (MAPs) meet across the tri-state area twice a year to discuss industry trends and member concerns, evaluate IA&B’s initiatives and pinpoint where and how IA&B can do more.

This issue of Primary Agent includes a feature article on MAPs and what your association has accomplished thanks to MAP participants’ insight and feedback. Give it a read, and then consider how you could contribute. IA&B is recruiting for the 2011-2012 MAP cycle.

Enjoy the holiday season and best of luck to you in the new year.

See you in 2011, Dave

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: A producer in my agency is asking if he might lose his license if he files for bankruptcy. Is that the case?

ANSWER: Sadly, this question is on the rise. Each regulator can handle this situation slightly differently based on the state statute and its interpretation of the statute. In this case, our three states are fairly consistent. Here is how Delaware, Maryland and Pennsylvania currently handle producers’ personal bankruptcies.

?

In addition, we must mention a couple of other situations, namely state income tax and child-support issues, which can, in some cases, be part of a personal bankruptcy and interfere with a license renewal.

Delaware Business bankruptcies or personal bankruptcies involving funds held on behalf of others must be reported to the Delaware Department of Insurance (DOI). If it is a personal bankruptcy that does not involve funds held on behalf of others, the DOI does not need to be notified.

On the other hand, failing to comply with an administrative or court order imposing a child-support obligation, or failing to pay state income tax or comply with any administrative or court order directing payment of state income tax, can cause serious problems. They are, by statute, acceptable reasons for denying a license. Such issues should be addressed upfront with the bankruptcy attorney and the DOI. Losing a producer’s license after filing for bankruptcy would be devastating and counterproductive for all parties involved by depriving the producer of his ability to earn a living.

Maryland If it is a personal bankruptcy only, the Maryland Insurance Administration (MIA) does not require notification. Notifying the MIA is only necessary for business bankruptcies.

The failure to pay state income tax or a child-support obligation would, however, trigger the Maryland producer licensing statute and could jeopardize a license renewal.

Any producer contemplating an individual bankruptcy should voice these issues with the bankruptcy attorney and/or discuss it upfront with the MIA in order to prevent any fallout.

Pennsylvania If it is a personal bankruptcy only, the Insurance Department states that there shouldn’t be any problem with the license renewal. However, as in Delaware and Maryland, if the individual has failed to pay state income tax or is behind in child-support payments, there could be some ramifications: The producer licensing statute contains similar provisions as the other two states.

As an example, if the Department of Revenue indicates that the producer is non-compliant with state taxes, then the Insurance Department likely will take action unless the producer has entered into an agreement with the Department of Revenue to come into and maintain compliance.

As a result, it is best to err on the side of caution and pay close attention to any income tax debt – as well as any childsupport obligation – with the bankruptcy attorney before proceeding. As in the other states, contacting the Insurance Department ahead of time could be helpful as well.

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!

When it comes to

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State News Primary Agent | December 2010

How to play by the N.Y. State Fund rules Thanks to changes in New York’s Workers’ Compensation (WC) Law, the number of Maryland businesses using the New York State Insurance Fund (NYSIF) to fulfill their WC obligations is on the rise.

Advise these clients about the NYSIF cancellation/non-renewal procedure.

Or face the consequences: cancellation for non-payment, drastic short rates and more.

Check out IA&B’s 2009-2010 annual report — video style!

By law, the NYSIF requires 30 days’ advance notice to non-renew a policy ... that is, for the client to notify the carrier.

Miss the deadline? Save the sob story: The NYSIF displays little flexibility for producers and clients who don't abide.

Members are encouraged to:

Red Flags Rule enforcement nears The FTC’s impending Red Flags Rule enforcement could mean costly penalties for non-complying “creditors.” The broad definition includes some insurance agencies, along with lawyers, accountants and health care professionals.

As this issue of Primary Agent went to print, the outcomes of several law suits and a bill pending in Congress aiming to exempt certain professions and small creditors were uncertain.

w Familiarize themselves with these special procedures w Flag all policies placed with NYSIF w Confirm in writing any possible deviation from these practices discussed with NYSIF

Enforcement is set to begin Dec. 31, 2010, so now is the time to determine if your agency is affected. Most will not be; however, some may qualify based on their circumstances and/or business decisions.

Read additional recommendations: www.iabgroup.com/md/wc/nysif

Access IA&B's Red Flags Rule resource: www.iabgroup.com/md/red_flags Reminder: Even if the Red Flags Rule doesn’t apply to your agency, other applicable privacy regulations cover many of the same elements.

Access IA&B’s privacy review: www.iabgroup.com/md/privacy [6]

Multi-state licensees, beware

Read, follow or join the discussion

The taxman cometh – even if you hold a non-resident license. Most states require out-of-state producers to register with their department of state before applying for a non-resident license. And that registration can obligate the producer to annual filings and taxes.

The time to dismiss social networking as a passing fad has come and gone.

The fact is, the longer you put off joining the conversation, the more you’re missing. IA&B is facilitating professional and informative exchanges on the social Web.

Reporting requirements and tax filings vary from one state to the next. So agencies that are licensed, and therefore registered, in multiple states must monitor and abide by each state’s specific obligations.

IA&B members have reported issues with Ohio and, more recently, New York. The link below profiles one member’s experience and IA&B's recommended response.

What the new year could bring for all who write in New York Write in the Empire State? Then adopt a New York state of mind and prepare now for impending commissiondisclosure requirements. Resident and non-resident licensees are affected by a new producer-compensation regulation, slated to take effect Jan. 1, 2011.

Review a sample issue and recommendation: www.iabgroup.com/md/ corp_franchise_tax

As this issue of Primary Agent went to print, the judge had yet to hand down a decision in producer groups’ legal challenge to the regulation. The lawsuit questioned the New York State Insurance Department’s authority to promulgate such a rule and the facts supporting its position to do so.

Minimum limits increase around the bend As of Jan. 1, 2011, the state’s new minimum BI limits will be 30/60, up from the current 20/40. PD limits remain untouched at 15.

Discuss trends and network with colleagues by joining IA&B’s LinkedIn group.

Read timely updates on your association’s activities and breaking industry news by following IA&B on Twitter.

New to Web 2.0? There’s no better way to learn how social networking works – and how it can work for your agency – than seeing how it’s done.

Jump onboard: www.iabgroup.com/soc_media

With the judge’s decision uncertain, affected producers are encouraged to learn more about the regulation.

The increase is a direct result of IA&B’s advocacy. Association members reported that low minimum limits harmed the marketplace. IA&B worked diligently to guide the legislation through the General Assembly, including testifying at committee hearings and providing support memos to the full legislature. Gov. O’Malley approved of the bill in early May. [7]

Access resources www.iabgroup.com/md/ny_disclosure

WELCOME

New Members Saratoga Heyl Insurance Service Inc. Lutherville, Md.

Preventing Primary Agent | December 2010

ERRORS AND OMISSIONS

NAVIGATING THE MINEFIELD OF LIABILITY COVERAGE FOR CONTRACTORS PAUL E. WALTERS Paul E. Walters is claims manager for Utica Mutual Insurance Company.

Insurance Agents & Brokers Service Group Inc. is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania. For questions regarding this article or your Errors & Omissions coverage, contact IA&B at (800) 998-9644 or by e-mail at iab@iabgroup.com.

Today’s construction industry is in a crisis mode in many areas of the country.

Extreme financial pressures are being brought to bear on contractors. Money has tightened up. Cutthroat bidding exists. Contractors are finding their profit margins dwindling.

Expenses related to Workers’ Compensation and General Liability coverages are putting further pressure on contractors’ finances. The cost of General Liability coverage for contractors is increasing as a result of greater costs to defend and indemnify contractors.

Whether it’s suits brought by workers or suits claiming damage due to faulty construction, carriers’ costs are on the rise. These increases are forcing carriers to up premiums, decrease the coverage offered or opt of out of that line altogether.

Agents caught in the middle As carriers get out of this line of business, other carriers — many in the surplus lines market — are filling the void.

Contactors want to keep premiums down, and many will choose the leastexpensive solution. Agents are caught in the middle.

If an agent quotes a standard CGL without restrictive language, there is a good chance the premium will not be attractive to the contractor.

Conversely, if an agent quotes a premium for GL coverage the contractor finds acceptable, chances are the coverage offered is restrictive compared to the standard GCL. The first scenario is not an E&O concern, but the second is likely to become a problem if a loss occurs.

It is common these days to see contractors’ CGL policies that either do not grant

[8]

contractual liability coverage or severely limit the types of contractual indemnity scenarios that are covered.

It is also common for carriers to add an endorsement that excludes coverage when the claim is made by a worker on the jobsite. In fact, many policies offered today have both of the above coverage restrictions, making coverage for the types of claims a contractor will be faced with almost non-existent.

Agent pays $235,000 In one claim example, an agent replaced one policy with another for a contractor.

The old policy was a standard CGL. The new policy severely limited coverage for contractual indemnity and did not apply to hold-harmless clauses seen in a standard construction contract. An employee of the contractor was electrocuted on the job and sued the jobsite owner. In

turn, the owner sued the contractor, alleging contractual indemnity and claiming it should be held harmless by the contractor.

The new carrier disclaimed based on the restrictive language regarding contractual indemnity in the policy.

The agent was then sued by the contractor, who stated he expected the new policy to provide the same coverage as the policy it replaced.

The agent did not notice the changes between policies when coverage was procured. The agent’s share of the settlement? $235,000.

No documentation In another example, an agency had a general contractor client who spoke little English. The agency procured a CGL policy that contained an endorsement excluding claims made by any employee of any sub-contractor. A sub-contractor’s employee fell from a ladder and made a claim against the agency’s

client. The carrier denied coverage based on the exclusionary language in the endorsement. The agent stated he discussed the exclusionary language with the client and offered to secure a CGL without the exclusionary language at twice the premium. Per the agent, the client refused and chose the less expensive policy.

Following the disclaimer by the carrier, the client made a claim against the agent, stating he was not told about the exclusion and was not offered an option to purchase a policy without the exclusion. With no documentation in the agency’s records concerning the agent’s discussion with the client, the claim was settled — with the agent’s share totaling $84,000.

should specifically ask whether there are restrictions in coverage compared to the standard CGL. If there are, the agent should fully explain those differences to the client, and then give the client the option to purchase a policy without restrictive language.

All communications concerning this process should be done in writing, clearly spelling out what was discussed, what was offered and what was agreed upon. A little bit of extra documentation on the front end can protect an agency from claims made by contractors at a later date.

Put it in writing Agents must familiarize themselves with the differences in coverage that carriers are offering to contractors.

When a policy is quoted, the agent

Glance at Events D E C E M B E R

C A L E N D A R

Date

Topic

Location

1

CISR—Personal Residential Course

Altoona, Pa.

1-4

CIC—Life & Health Institute

Hunt Valley, Md.

2

CISR—Personal Residential Course

Hagerstown, Md.

7-9

P&C Licensing Study Course

Mechanicsburg, Pa.

L&H Licensing Study Course

Pittsburgh, Pa.

[9]

Coverage Primary Agent | December 2010

CORNER

CERTIFICATES OF INSURANCE — THE LAWSUITS CONTINUE

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.

I’m fairly certain that at one time or another I’ve discussed certificates of insurance in this column. But, even if I have, it won’t hurt to talk about them again. There are several reasons. w They are one of the most dangerous documents that float around between insureds and all kinds of other parties. w Certificate holders don’t really understand what they are; they think it’s a warranty or a guarantee. w They are a constant concern to the insurance agencies and insurers that issue them … at least that’s what I’m hearing from y’all. w They are an increasing source of lawsuits against agents and insurers: Lawsuits involving certificates of insurance are growing at the rate of 25-30 percent per year.

Question number one is, “Why do we issue certificates of insurance?” The answer

usually is, “My insured signed a contract which required the certificate.” My question is, “A certificate of what?” A certificate indicating the insured has certain policies of insurance, or a certificate indicating the insured’s policies will satisfy the contractual requirements?

The first thing we need to do is understand exactly what a certificate of insurance is.

Black’s Law Dictionary defines a certificate of insurance as: “Document evidencing fact that an insurance policy has been written and includes a statement of the coverage of the policy in general terms.”

Please note the “a statement of the coverage of the policy in general terms” in the above definition. Some folks say that a certificate of insurance is a snapshot of the policy coverages and limits at the time of issuance of the certificate. I disagree! For example, have you ever issued a certificate of insurance and showed the insured had CGL aggregate limits of $2,000,000,

[ 10 ]

when that aggregate limit may have been reduced by prior claims?

We all know that the certificates of insurance contain disclaimers saying that they do not “amend, extend or alter” the underlying policy.

Does that mean that the certificate cannot trump the policy terms? I would think so.

In two recent court cases, the courts have used language that was added on the certificate to find coverage for the certificate holder.

In Charter Oak Fire Insurance C. v. Lexington Insurance Co. (TN), a fire destroyed a Chili’s restaurant in Nashville, Tenn.

The building owner was named as an additional insured on Chili’s property insurance policy and was paid for the fire loss. The building owner submitted an additional claim for loss of rental income, but Chili’s insurer denied the claim.

The building owner’s insurer paid the rental income loss and then filed a subrogation action against Chili’s insurer

In another case, J.A. Jones Construction Co. v. Hartford Fire Insurance Co. (IL), the court determined that the subcontractor’s CGL policy provided coverage for the general contractor’s sole negligence. The subcontractor’s insurer argued that the certificate contained a statement that the general contractor was an additional insured “to the extent of the subcontractor’s negligence.” The court disagreed because of the disclaimer language which states the certificate does not “amend, extend or alter the coverage afforded by the policy.” Since the CGL policy did not restrict the general contractor’s liability, the certificate could not be used to deny coverage.

Sounds like to me that you can say all you want to on a certificate of insurance, but it doesn’t make any difference. What does the policy say?

That’s the ultimate answer.

Issuing certificates of insurance is like laying land mines. Be careful. Don’t step on one!

Y’all take care!

[ 11 ]

There is no better time to become part of The Cumberland Insurance Group Team. We are now appointing agents in Central Pennsylvania.

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Chili’s insurer argued that the certificate of insurance limited coverage because it contained wording that the building owner was added for physical damage only, and not rental income. The court disagreed since the certificate contained disclaimers saying that it does not “amend, extend or alter the coverage afforded by the policy.” The court determined the certificate has no effect on the coverage afforded by the policy and determined that the building owner’s additional insured status was not limited in any way. Therefore, the certificate could not be used to restrict the building owner’s coverage.

STRONG RELATIONSHIPS PRODUCE RESULTS

MBER CU

for recovery. The building owner’s insurer’s theory was that since the building owner was an additional insured under Chili’s policy, he was entitled to rental income coverage.

OUP

Contact Amber J. Ayrer at 800-232-6992, ext. 1237 or aayrer@cumberlandgroup.com

Celebrating 166 years of service

◆

1844 - 2010

ASSOCIATION AT WORK

Building blocks of success Reaching new heights thanks to Member Agent Panels

Twice a year they gather.

They catch up over breakfast or lunch, and then they get down to business – talking industry issues and trends, sharing struggles and accomplishments, and driving their association forward.

Welcome to IA&B’s Member Agent Panels.

Primary Agent | December 2010

M

ember Agent Panels, best known by their acronym MAPs, meet in 13 locations across the tri-state region. IA&B members — most often agency principals and producers — serve two-year terms, during which they weigh in and provide direction on the association’s activities.

Since the inaugural meetings in 2003, MAP participants have had a significant impact on IA&B’s initiatives. (Note: While Delaware MAPs began in 2009, attendees already have provided great input — particularly in directing the state association’s public affairs committee.) The following pages highlight 10 of the many association accomplishments that stemmed from MAPs. As you’ll notice, even those initiatives that began in one state often benefited IA&B members across the tri-state region.

Read on to (re)discover member resources, familiarize yourself with how your association works for you and learn how MAPs operate.

Have your say

Insolvency The year was 2003. On the heels of the White Hall Mutual liquidation, Pennsylvania MAP participants vented about monitoring their carriers’ solvency. They felt unprepared and unwarned.

IA&B responded with an extensive Q&A resource, covering everything from how to handle notices and commissions to refunds and deadlines.

When the next big insolvency drama occurred with Vesta/Shelby, members were prepared — and appreciative.

IA&B is recruiting for the 2011-2012 MAP cycle. The obligation is minimal, but the payoff is great — for you and your association.

Learn more or complete a statement-of-interest form: www.iabgroup.com/get_involved

www.iabgroup.com/pa/insolvency Thanks to a struggling economy and lingering soft market, the issue reared its ugly head again in 2010. Rating services downgraded carriers, and MAP attendees questioned when, if and how to notify their clients.

IA&B responded with two sample client-notification letters along with instructions for keeping E&O carriers, and clients, happy.

Del.: www.iabgroup.com/de/ratings#considerations Md.: www.iabgroup.com/md/ratings#considerations Pa.: www.iabgroup.com/pa/ratings#considerations

De facto termination IA&B of Pennsylvania MAP attendees first expressed concern about commission cuts and their downward-spiral effect on agency contracts in early 2004.

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“The meetings are well organized for efficient use of time. I really appreciate the up-todate information and opportunity to exchange thoughts.” — MAP participant

ASSOCIATION AT WORK

The Pennsylvania Insurance Department did not recognize de facto terminations — the reduction or elimination of commissions in an effort to force out an agency. In response, MAP attendees suggested amendments to Act 143, the state’s agencytermination statute.

IA&B carefully crafted a position that addressed MAP participants’ concerns: not coming across greedy, yet educating agents on their rights.

This issue regained the spotlight as well. In 2009 a carrier eliminated an IA&B member’s commissions without offering Act 143 protections, including a one-year rehabilitation or run-off period.

IA&B represented the agency and won: For the first time the Pennsylvania Insurance Department recognized the concept of de facto terminations. www.iabgroup.com/ 12_10_agency_term_case

Accident reports Proving that IA&B takes concerns of all sizes to heart, in 2004 the association worked with the Pennsylvania Chiefs of Police Association, the Pennsylvania Fraternal Order of Police and the State Police to address traffic accident reports.

A MAP participant expressed concern with police failing to share the reports. If the insured did not take a copy of the report before leaving the accident scene and then provide it to the

agent, police refused to provide a copy, calling it private information. This, in turn, severely slowed down the process of filing a claim.

IA&B drafted an op ed article, published in the Fraternal Order of Police magazine, to explain why an insurance agent needs immediate access to accident reports.

Privacy It was no surprise in 2005 when MAP attendees shared their confusion about privacy compliance. IA&B responded with an Agent Issues e-mail series that walked members through its compliance resources.

Later, during 2010 MAP meetings, participants shared their concerns over expanding privacy regulations. Growing obligations under HIPAA and the HITECH Act intertwined with already cumbersome requirements. So IA&B responded with a revamped privacy resource, beginning with an audit and walking members down the (many) paths to complete compliance.

Del.: www.iabgroup.com/ de/privacy Md.: www.iabgroup.com/ md/privacy Pa.: www.iabgroup.com/ pa/privacy

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Strategic direction During the fall 2006 MAP meetings, IA&B charged participants with charting the association’s path for the following 18-24 months.

Attendees identified critical initiatives and brainstormed key projects.

Generally, members identified technology, perpetuation and human resources as areas of concern. Members shared their frustration about spending time on agency management and operations rather than selling and growing their business.

The IA&B boards of directors took the message to heart and steered product, program and resource-development toward those MAP-identified needs.

Examples include executive management conferences on perpetuation and technology and a suite of human resources products (HR Solution©). www.iabgroup.com/HR

Loan to value IA&B of Pennsylvania members first expressed concern about lenders requiring full loan value instead of replacement cost at the spring 2007 MAP meetings.

IA&B responded with legislative advocacy, and in July 2008 Gov. Rendell signed The Mortgage Property Insurance Coverage Act into law. The legislation prohibits mortgage lenders from requiring borrowers to insure their property in excess of the value of structures on the land.

[ 15 ]

ASSOCIATION AT WORK

The law was a win for homeowners — and their agents who often found themselves stuck between a lender’s demands and an insured’s actual needs. www.iabgroup.com/ 07_07_mortgage_ property_act

Producer agreements MAP participants, along with other IA&B members, expressed concerns about entering into proper agreements with their producers. By late 2008 the trend was clear: Members would contact IA&B after an employee would leave the agency, possibly with proprietary information.

IA&B responded by updating its member resources. The revised information covers: w Trade secrets, non-compete and non-piracy w E&O considerations for independent contractors w How geographic area relates to non-compete language w Considerations for implementing agreements with existing employees w How contracts can supersede law Based on member feedback, the organization revised the toolkit once again in late 2009. www.iabgroup.com/ patoolkit

Fiduciary duties

Technology

News regarding AIG’s government bailout broke in fall 2008, so it was no surprise that MAP discussion turned to carrier solvency, FDIC protection and fiduciary accounts.

During the spring 2009 MAPs, IA&B learned that only a handful of members used socialnetworking tools as a business strategy while many had interest.

The organization also identified a similar trend with going paperless: Members wanted to get there but needed help.

After the MAP meetings, IA&B developed a three-part resource that explains agencies’ fiduciary duties and offers advice for account set-up and maintenance. During the spring 2009 meetings, MAP attendees reviewed and offered feedback to refine the resource. www.iabgroup.com/ fiduciary

Agency newsletters While independent agencies struggled with the soft market, direct writers increased their competition, spending huge sums on advertising. MAP participants expressed their need for a communication vehicle to enhance and promote their value to customers and prospects.

IA&B researched various vendors and partnered with Foresight Publishing, specialists in insurance marketing communications, to offer members discounted access to an e-newsletter service.

The service boasts simple set-up and mailing-list management, customizable templates, realtime reporting and availability of professionally written articles. www.iabgroup.com/ enews

[ 16 ]

In response, IA&B dedicated its second annual executive management conference to technology. Industry experts presented workshops on social networking, electronic document management, agency management systems and client data security.

IA&B also launched its own LinkedIn and Twitter accounts to interact with agents in a new medium and, in some cases, lead the way in Web 2.0. www.iabgroup.com/ soc_media

Parting thoughts Margaret Mead said, “Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”

Those words reflect MAPs well.

It is a group of thoughtful, committed members who are changing their agency, their association and the independent agency system for the better — one meeting and one brainstorm at a time.

Access a list of 2009-2010 MAP participants online. www.iabgroup.com/ MAPvolunteers

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

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

Transportation Division x x

x

Brandon Green x244 BGreen@tsgia.com

x x x

Local - Intermediate - Long Haul Physical Damage x Extended Towing x Combined Deductible x Trailer Interchange x Non Owned Trailer Coverage Cargo x Carriers & Owners Forms x Pollution available x Collision of Load available x Terminal Coverage available General Liability Outstanding claims service Loss Prevention Service Available

Crystal Moir x262 CMoir@tsgia.com

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

* Maryland * Pennsylvania * Delaware * Virginia *

[ 17 ]

2010-2011 IA&B Leadership IA&B Service Group Chair David Rosenkilde, CIC ABCO/ICS Insurance Services Inc. Reisterstown, Md. IA&B Service Group Vice Chair Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P Francis Hall Insurance Services West Chester, Pa. IA&B Service Group Immediate Past Chair Kathleen M. Glattly, CPCU, ChFC, CLU, AIM DGK Insurance & Financial Services Factoryville, Pa.

David Rosenkilde, CIC

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P

Chair of Board ABCO/ICS Insurance Services Inc. Reisterstown, Md.

Vice Chair of the Board Francis Hall Insurance Services West Chester, Pa.

Delaware Association of IA&B Chair Diana M. Hornung-Momot, ACSR Wilmington, Del. Delaware Association of IA&B Vice Chair Joyce M. Bailey, CIC, CRM, CPIW AAA Mid Atlantic Newark, Del. IA&B of Maryland Chair King W. “Kip” White Jr., LUTCF American Insurance Fallston, Md.

Kathleen M. Glattly CPCU, ChFC, CLU, AIM

Joyce M. Bailey, CIC, CRM, CPIW

Norman F. Basso, CPCU

AAA Mid Atlantic Newark, Del.

E.K. McConkey & Co. Inc. York, Pa.

Vincent D. “Chip” Boylan Jr., CPCU

Henry “Butch” Bradley Jr.

Timothy P. Burris

Willis of Maryland Inc. Rockville, Md.

The Pennoyer Group Inc. Crofton, Md.

Sausman Insurance Agency Mifflintown, Pa.

John T. “Chip” Colwell Jr., CIC

N. Lee Dotson, CIC, AAI

John L. Frankenfield

Rossbacher Insurance Service Corry, Pa.

Bellevue Insurance Services Wilmington, Del.

Franconia Insurance & Financial Services Telford, Pa.

Immediate Past Chair of the Board DGK Insurance & Financial Services Factoryville, Pa.

IA&B of Maryland Vice Chair Henry “Butch” Bradley Jr. The Pennoyer Group Inc. Crofton, Md. IA&B of Pennsylvania Chair Timothy P. Burris Sausman Insurance Agency Mifflintown, Pa. IA&B of Pennsylvania Vice Chair G. Greg Gunn, CIC Gunn-Mowery LLC Lemoyne, Pa. IIABA National Director Scott C. Rogers, CPIA The Glatfelter Agency York, Pa. IIABA National Director James M. Watkins Pfister Insurance Inc. Dover, Del. PIA National Director Susan A. Sallada, CIC Universal Service Agency Inc. Ft. Washington, Pa.

Diana M. Hornung-Momot, ACSR

Jocelyn R. Howard-Sinopoli, CIC, CISR

Gunn-Mowery LLC Lemoyne, Pa.

Thomas J. Hornung & Associates Wilmington, Del.

C.W. Howard Agency Inc. Butler, Pa.

Robert S. Klinger, LUTCF

Michael F. McGroarty Sr.

Ann Gallen Moll, CIC

Klinger and Associates Inc. Germantown, Md.

McGroarty & Bradburn Insurance, Inc. Pittsburgh, Pa.

Gallen Insurance Inc. Reading, Pa.

Scott C. Rogers, CPIA

Susan A. Sallada, CIC

David B. Wasson Sr., CIC

The Glatfelter Agency York, Pa.

Universal Service Agency Inc. Ft. Washington, Pa.

Wasson Insurance Agency Inc. State College, Pa.

James M. Watkins

King W. “Kip” White Jr., LUTCF

Pfister Insurance Inc. Dover, Del.

American Insurance Fallston, Md.

2010 – 2011 Board of Directors

G. Gregg Gunn, CIC

Platinum Profile Insurance Agents & Brokers proudly recognizes The Travelers Companies, Inc. as one of its Platinum Partners.

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

FEATURED PARTNER The Travelers Companies, Inc. CHIEF EXECUTIVE OFFICER Jay Fishman, Chairman & CEO COMPANY LOCATIONS EXECUTIVE OFFICES: New York, Hartford, Conn., Saint Paul, Minn.

LOCAL OFFICES: Pittsburgh, Pa., Philadelphia, Pa., Blue Bell, Pa., Wyomissing, Pa., Mechanicsburg, Pa. and Hunt Valley, Md. A.M. BEST RATING A+ (superior)**

“Travelers values the 13,000 agents around the country who sell our policies. We are all dedicated to helping consumers find the right insurance to meet their specific needs. Travelers appreciates the continued partnership and commitment to providing the highest level of customer service.”

– Kirk Larsen, Regional President

T

ravelers is one of the largest providers of property casualty insurance products in the United States. Our diverse portfolio of offerings includes a wide range of coverages for both personal and commercial customers. A Fortune 100 company, Travelers has 30,000 employees and 2009 revenues of approximately $25 billion.

In business for more than 140 years, Travelers has been an industry leader from the start. The company wrote the first auto policy in 1897 and has continued to lead the industry in the development of innovative products

and services. From identity theft coverage to wedding insurance, we pride ourselves on offering products that are in-synch with our customers’ evolving risks. We also offer discounts for growing sub-segments like hybrid car owners and coverage enhancements for commercial properties to upgrade to green building materials and systems following a covered loss.

While delivering all the capabilities of a national carrier, Travelers possesses a unique local expertise that enables us to adapt our innovative products, services and technology to specific local market needs. We think nationally and act locally. For example, through a state-dedicated product and pricing team, we can take our products and generate rates specific to the unique characteristics of a state, a county, a city and even a zip code. Our team comprises underwriting, claims and service employees who work through our six offices in Maryland, Delaware and Pennsylvania, and are all familiar with the local needs and wants of our agents and insureds.

We are committed to supporting our more than 13,000 independent agents across the United States in many ways.

Agents who partner with Travelers have access to our marketing program and tools, accessible via state-of-the-art websites. Travelers also offers a wide range of customer acquisition programs, including print ads, public relations tools and direct mail pieces.

Represented by the red umbrella, Travelers is one of the most recognized insurance brands in the country.

Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance in-synch with evolving risks. For more information, visit www.travelers.com.

**A.M. Best’s rating of A+ applies to certain insurance subsidiaries of Travelers that are members of Travelers Insurance Companies pool; other subsidiaries are included in another rating pool or are separately rated. For a listing of companies rated by A.M. Best and other rating services visit www.travelers.com. Ratings listed herein are as of June 8, 2010, are used with permission, and are subject to changes by the rating services. For the latest rating, access www.ambest.com.

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

BRONZE LEVEL

ACUITY Berkley Mid-Atlantic Group Erie Insurance Group Harleysville Insurance 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

Aegis Security Insurance Co

GOLD LEVEL

Insurance Placement Facility of PA

Allied Insurance MMG Insurance Progressive

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

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 Hanover Fire & Casualty Insurance Company Insurance Alliance of Central PA Inc

Keystone Insurers Group Inc Lebanon Mutual Insurance Company Mercer Insurance Group Merchants Insurance Group 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 December 2010

ASSOCIATION AT WORK

Straight talk Members rate their carrier experiences

E

very two years IA&B members receive a fresh perspective on carrier performance. The association’s biennial Company Satisfaction Index (CSI) allows them to rate — and then review and compare — their carrier experiences.

Throughout the summer of 2010, members were encouraged to complete the online survey, which asked them to rate their top carriers on:

Complete results Access complete CSI results at iabgroup.com/csi. w Quick facts w Individual carrier results w Carrier comparisons

w Products, pricing and underwriting w Policy service and claims

Who responded?

w Agency/company relationship w Technology Over 400 members participated, rating 74 personal-lines carriers and 82 in commercial lines. Of those, carriers with 10 or more completed surveys were included in the final results. That left 39 in personal lines and 38 in commercial.

Respondents showed the most satisfaction with carriers’ policy service and claims and, as in years past, showed the least in the area of technology. And when separated by footprint and direct premium written, carriers operating in 11 to 34 states received the most favorable results.

For more on the survey structure and complete results, visit iabgroup.com/csi.

[ 22 ]

The CSI survey is open to all employees within IA&B member agencies.

1% Others

16% Managers

25% CSRs

41% Principals

17% Producers

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

ASSOCIATION AT WORK

Technology tips help agency owners run tighter ships IA&B holds executive management conference, annual meeting

Welcome to the information age, where advancements occur at a more rapid pace — and have a greater influence on daily existence — than ever before.

Primary Agent | December 2010

T

he independent agency system is not immune. In fact, technology is acting as an equalizer, affecting agencies regardless of sales volume or staff size or carrier representation or lines of insurance sold.

Members spoke, and IA&B responded to their uncertainties, frustrations and learning curves with the October 2010 Executive Management Conference, dedicated to technology.

Conference exhibitors and sponsors All Risks

Executive management conference Held in Lancaster, Pa., the two-day event brought together industry experts on agency management systems, data security, electronic document management and social networking. Seminars offered management-level education with the end goals of improved efficiency and compliance.

“Our members shared that technology has become more of a hindrance than a help,” said Dave Rosenkilde, chairman of IA&B Service Group. “This conference aimed to change that by providing practical information and implementation guidelines.”

The 150-plus attendees also benefited from opportunities to network with fellow participants, not to mention the 19 exhibitors and sponsors — ranging from insurance companies to software vendors.

Berkley Mid-Atlantic Group Broadview Networks Chubb Group of Insurance Companies Cumberland Insurance Group Donegal Insurance Group docStar Frederick Mutual Insurance Co. Harleysville Millville Mutual Insurance Company Mutual Benefit Group

Annual meeting Before the conference, IA&B held its annual meeting — an opportunity to showcase the year’s achievements, recognize those who have made those accomplishments possible and position the association for 2011.

Ohio Casualty PaperWise Penn National Insurance Progressive

The annual meeting also marked a change in leadership. A board listing and photos are available on pages 18-19.

It is thanks to the dedication and direction of these volunteers that IA&B can proactively assess members’ needs and provide resources, such as the Executive Management Conference, to meet them.

SehHey Vertafore Westfield Insurance Xpress-pay.com

A special welcome to the six members newly elected to IA&B’s boards of directors: Delaware Association of Insurance Agents & Brokers Inc. Joyce M. Bailey, CIC, CRM, CPIW AAA Mid Atlantic, Newark, Del.

Insurance Agents & Brokers of Pennsylvania Inc. John L. Frankenfield Franconia Insurance & Financial Services, Telford, Pa. Ann Gallen Moll, CIC Gallen Insurance, Shillington, Pa.

N. Lee Dotson, CIC, AAI Bellevue Insurance Services, Wilmington, Del.

Jocelyn R. Howard-Sinopoli, CIC, CISR C.W. Howard Agency, Butler, Pa.

Insurance Agents & Brokers of Maryland Inc. Robert S. Klinger, LUTCF Klinger and Associates, Germantown, Md.

[ 25 ]

IA&B Financial Reports INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF ACTIVITIES YEAR ENDED MARCH 31, 2010

IAB of PA Revenues: Membership Dues Professional Training Events & Member Products Royalties & Commissions Other Total Revenues Expenses: Membership Member Services Professional Training Events & Member Products Publications Advocacy Corporate & Management Depreciation Taxes & Other Total Expenses

Net Operating Income (Loss)

$

IAB of MD

336,582 1,544,994 109,751 613,365 24,674 2,629,366 $

DAIAB

102,059 18,120 413,576 60,324 33,727 74,127 110,101 30,032 (1,287) 4,389 658,176 $ 186,992

96,335

11,210

1,035

1,269,211 53,263

371,654 8,196

63,427 56,911

Combined IAB-Associations

$ $

456,761 2,018,894

$ $ $

753,498 27,776 3,474,534 $

Change in Net Assets

Intercompany Eliminations

(3,863) (1,570) (3,675) 2,132,579 1,447,111 (1,300,792) 3,579,690 $ (1,309,900)

108,580 1,704,292

149,772

Combined IAB

$ $

452,898 2,017,324

$ $ $

2,886,077 174,095 5,744,324

108,580 148,202 1,703,051

(1,570) (1,241) (6,476)

99,575 147,376 1,142,288

50,042 213,085

10,931 57,368

$

2,708,473 $

654,187 $ 189,672 $

$

(79,107) $

3,989 $

208,349 1,412,741 3,552,332 $

(2,680) $

$

$

272,727 $

44,780 $

(338) 3,007,405 (1,300,275) 160,414 151,039 3,568,205 $ (1,309,900) $

(77,798) $

Pension related change Investment gain from mutual funds

IAB Service Group

1,582

193,620 $ 48,769 $ (1,098) $

11,485 $

-

99,575 208,011 3,119,871 160,414 151,039 5,810,637

$

(66,313)

$

132,027

132,027

319,089 $

10,411

329,500

241,291 $

153,923 $

-

$

395,214

INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF FINANCIAL POSITION March 31, 2010

ASSETS IAB of PA Cash & Cash Equivalents Premium Fiduciary Cash Accounts Receivable Mutual Fund Investments Prepaid Taxes Prepaid Expenses Total Current Assets

$

2,126,683

$

88,001 1,308,363 65,621 3,588,668

Property and Equipment, net

-

Cash whose use is limited, board and donor Investment in Big I Reinsurance Co. Investment in IAB Service Group Other Assets Total Other assets

Total Assets

IAB of MD

358,986 90,000 486,082 935,068

Combined IAB-Associations

DAIAB

IAB Service Group

322,727 $

297,550 $

2,746,960 $

10,040 214,821 23,704 571,292

4,116 7,588 4,158 313,412

102,157 1,530,772 93,483 4,473,372

-

-

23,011 102,013

5,031 30,000 12,005

125,024

47,036

-

Intercompany Eliminations

687,522 $ 376,489 316,348 49,950 33,346 79,757 1,543,412 1,535,423

-

Combined IAB $

(226,827) (7,864) (234,691) -

387,028

1,535,423 387,028

600,100 1,107,128

$ 4,523,736 $ 696,316 $ 360,448 $

3,434,482 376,489 191,678 1,580,722 33,346 165,376 5,782,093

(600,100) 602,137 602,137

(600,100)

602,137 1,109,165

5,580,500 $ 3,680,972 $ (834,791) $ 8,426,681

LIABILITIES AND NET ASSETS IAB of PA Total Current Liabilities

1,434,200

Long-term liabilities, retirement obligations Total Long Term Liabilities

240,083

-

Net assets, unrestricted: Designated funds Undesignated

Total Net Unrestricted Assets Accumulated other comprehensive loss, defined benefit pension plan, net of deferred tax Total Liabilities and Net assets

IAB of MD

$

-

Combined IAB-Associations

DAIAB 76,810

-

IAB Service Group

1,751,093 -

Intercompany Eliminations

658,404 427,483 427,483

(234,691) -

Combined IAB 2,174,806 427,483 427,483

360,149 2,729,387

23,386 432,847

5,281 278,357

388,816 3,440,591

175,000 2,755,809

(600,100)

563,816 5,596,300

3,089,536

456,233

283,638

3,829,407

2,930,809

(600,100)

6,160,116

4,523,736

$

696,316 $

360,448 $

5,580,500 $

(335,724) 3,680,972 $

[ 26 ]

(834,791) $

(335,724) 8,426,681

IA&B remains in good financial health with strong reserves; continues to provide and expand programs, products and services to meet members’ needs; and is poised for future growth.

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.

Combined member equity increased to $6.160 million, on $8.427 million of total assets and $2.602 million of total liabilities.

Combined net operating loss was $(66) thousand on total revenues of $5.744 million and total expenses of $5.811 million. The combined change in net assets was $395 thousand.

IF YOU HAVE THE TOOLS, WE HAVE THE INSURANCE.

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!

Make Our Experience, Your Advantage.

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

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

Join our team today. Contact us to learn more:

www.harfordmutual.com 800-638-3669 200 North Main Street

•

Bel Air, Maryland

•

21014-3544

YOUR SUPPORT MATTERS. CONTRIBUTE TO AGENTPAC. Through AgentPAC, IA&B can work to elect legislators who understand you. IA&B is a strong advocate for you, but even the strongest advocate cannot succeed unless there are legislators who understand the issues faced by independent agents — that is where your support matters!

Help IA&B support legislators who understand independent agents. Contribute to your state AgentPAC. VISIT IABGROUP.COM OR CALL THE IA&B MEMBER SERVICE CENTER TOLL FREE AT (800) 998-9644 OR LOCALLY AT (717) 795-9100, OPTION 0 FOR MORE INFORMATION.

Driving members to distinction [ 27 ]

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.

Tracing the history of insurance terminology

LOOKING TO BUY! Agency in Snyder, Union and Northumberland Counties.

All inquiries kept confidential.

Call Gary at (570) 524-7670.

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 ACUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Brokers Surplus Agency . . . . . . . . . . . . . . .23, 27 Commonwealth Ins Co . . . . . . . . . . . . . . . . . . . .3 Cumberland Insurance Group . . . . . . . . . . . . .11 Donegal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IFC EMC Insurance Companies . . . . . . . . . . . . . . . .1 Frederick Mutual Ins Co . . . . . . . . . . . . . . . . . .17 Harford Mutual . . . . . . . . . . . . . . . . . . . . . . . . .27 IA&B Partners Program . . . . . . . . . . . . . . . . . . .21 IA&B Series Ad . . . . . . . . . . . . . . . . . . . . .27, IBC Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .11 Preferred Property Program . . . . . . . . . . . . . . . .5 Tri-State General Ins Ag . . . . . . . . . . . . . . . . . .17 [ 28 ]

An etymology is the origin of linguistics – where, when and how a word began and how it changed throughout the centuries.

Here’s a look at etymologies of a few insurance terms: Insurance: 1550s, “engagement to marry,” a variant of ensurance. Commercial sense of “security against loss or death in exchange for payment” is from 1650s.

Policy: “written insurance agreement,” 1560s, from Middle French police “contract, bill of lading” (late 14c.), from Italian polizza “written evidence of a transaction,” from Medieval Latin apodissa “receipt for money,” from Greek apodexis “proof, declaration,” from apo- “off” + deiknynia “to show,” cognate with Classical Latin dicere “to tell” Underwrite: early 15c., loan-translation of Classical Latin subscribere. Used literally at first; modern sense of “to accept the risk of insurance” (1620s) is from notion of signing a marine insurance policy. Meaning “to support by a guarantee of money” is recorded from 1890.

Source: Online Etymology Dictionary (http://www.etymonline.com) ----------------------------------------------------------------———————------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.

CONFIDENCE THAT YOUR EMPLOYEES HAVE THE SKILLS TO HELP YOUR CLIENTS

That's how we deliver distinction.

IF IA&B HAS TRAINED THEM, YOUR EMPLOYEES HAVE WHAT THEY NEED TO DO THE JOB RIGHT. Through in-depth review of coverage and coverage gaps, IA&B will provide your staff the skills they need to understand the complex insurance needs of your customers. With help from IA&B, you can rest assured that your staff has the skills to do the job right.

FOR MORE INFORMATION ON IA&B TRAINING PROGRAMS, VISIT WWW.IABGROUP.COM OR CALL THE IA&B MEMBER SERVICE CENTER AT (800) 998-9644.

Driving members to distinction

In Pennsylvania 2307 Menoher Boulevard • Johnstown, PA 15905 814-255-7878 • 1-800-452-0297 • Fax: 814-255-6010 In Maryland 111 Warren Road • Suite 1B • Cockeysville, MD 21030 410-628-1744 • 1-800-759-7779 • Fax: 410-628-6914 In Ohio 635 Park Meadow Road • Suite 206 • Westerville, OH 43081 614-794-0800 • 1-800-701-5587 • Fax: 614-794-0840 In West Virginia 706 Bluestone Road • Beckley, WV 25801 304-253-5147 • Fax: 304-253-5060

interstate-insurance.com