Primary Agent - December 2012 - MD Edition

MARYLAND

ALSO INTHISISSUE: ________________ 12 metrics to track for agency growth

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

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

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

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

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Contents PRIMARY AGENT MAGAZINE

Members steer the way

16

The world really does revolve around you. At IA&B anyway. IA&B is grounded in the philosophy that you — the member — know best and should chart the course of your association. Here, IA&B shares its evolving strategies for soliciting member feedback.

Page 10

12 growth metrics to track A select few high-growth agencies consistently increase their total personal lines books by 10 to 24 percent. Here, we pinpoint what they have in common, including how they track their marketing efforts to understand what is and is not effective.

Page 16

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

Get social with IA&B

In every issue 2 3 4 6 8 12

Chair of the Board’s Message Member FAQ State News Preventing E&O Coverage Corner Tools You Can Use

13 19 22 IBC IBC IBC

IA&B Partners Glance at Events HR Headquarters Advertisers Index Classified Ads Last & Least

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

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

Address inquiries to: Primary Agent Editor 5050 Ritter Road 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. Ride-along enclosed.

Postmaster: Send address changes to above address.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2012-12 is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

Copyright 2012. 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.

Board of Directors

Norman F. Basso, CPCU

Officers

Chair of the Board’s

Norman F. Basso, CPCU Chair of the Board York, Pa. G. Greg Gunn, CIC Vice Chair of the Board Lemoyne, Pa.

M

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A

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Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P Immediate Past Chair of the Board West Chester, Pa.

IA&B is all ears

Members Joyce M. Bailey, CIC, CRM, CPIW Newark, Del.

It’s nice to be heard. No, scratch that. It’s nice to listen and to be listened to in return.

From the distracted teenager sitting across the kitchen table, to the emotionally detached customer service rep answering the phone for the utility company, to the — let’s get personal here — unreceptive pet snoozing on a favorite recliner, daily life is full of those talking-to-a-brick-wall moments.

Henry “Butch” Bradley, Jr. Forest Hill, Md. Timothy P. Burris Mifflintown, Pa. N. Lee Dotson, CIC, AAI Wilmington, Del. Michael P. Ertel Columbia, Md.

One of the things that initially drew me to IA&B and keeps me invested today is the organization’s member-centric philosophy.

When producers talk, IA&B listens.

John L. Frankenfield Telford, Pa. John B. Hollister Milford, Pa. Diana M. Hornung Hanby, ACSR Wilmington, Del. Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa.

The commitment runs deep. Three state-specific public affairs committees and 13 member agent panels provide direction and insight to the member-run boards of directors. And beginning in 2013, IA&B will launch additional opportunities to secure member feedback based on agency demographics.

+

Robert S. Klinger, LUTCF, CPIA Germantown, Md. Douglas A. Loesel, CPCU Erie, Pa. Michael F. McGroarty Sr. Pittsburgh, Pa. Craig S. Mader Gambrills, Md.

I encourage you to get involved with your state agents’ association. It’s an opportunity to influence change for the betterment of your agency, IA&B and the independent agency system. Trust me, IA&B is all ears.

Until next month,

Ann Gallen Moll, CIC Reading, Pa. April E. Ressler, CIC Altoona, Pa.

Norm Basso

Scott C. Rogers, CPIA* York, Pa. David B. Wasson Sr., CIC State College, Pa. Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del.

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

Driving members to distinction.

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E

Member FAQ QUESTION: One of my carriers sent me notification three weeks after the fact that a broker of record letter was submitted on one of my accounts. I feel it did not give me enough time to attempt to gain the client back. What does the law say?

Do I have any recourse?

ANSWER: w Requires that the BOR be in writing and contain specific information (policyholder’s name and address, policy number, name and address of the new producer of record, and date of request).

Probably not. First, it’s important to determine where the agency is located. When it comes to broker of record (BOR) letters, not all states have a statute laying out requirements for carriers or producers to follow. Absent a statute, the modus operandi is generally determined by, and up to, the carrier.

The law does not provide specific requirements or a timeframe to notify the current producer.

Delaware: No statute or regulation governing treatment of a BOR letter.

Pennsylvania: No statute or regulation governing treatment of a BOR letter.

Maryland: BOR letters are addressed under the Unfair Trade Practices title (Title 27), Subtitle 9, § 27-911 - Requests for change of insurance producer of record. The law:

In your specific case, while it is a common industry practice and proper etiquette, none of our three states compel the company to notify the current producer within a certain timeframe. You could check whether your agency agreement addresses company procedures for broker of record situations and, specifically, if it commits the company to a notification timeline. If your agreement is silent and no other underwriting procedures or company guidelines address the subject, you will have little recourse.

w Requires carriers to accept the BOR within 30 days of the request unless the policyholder withdraws the order in writing; w Requires that the new producer have a current appointment with the carrier before the transfer is effective;

DO YOU HAVE A QUESTION?

w Requires that commissions go to the new producer no later than the next renewal (except for vested life, supplemental health commissions and compensation payable under an insurer’s retirement or deferred compensation plan with the producer); and

Email it to us at iab@iabgroup.com. Please use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to 717-795-8347. We look forward to answering your questions!

[3]

State News Primary Agent | December 2012

2013 legislative preview Maryland’s General Assembly convenes in Annapolis on Wednesday, Jan. 9. Although Maryland escaped 2012 without an election for state legislators, another busy session is anticipated in the months ahead. The new year brings with it a full legislative agenda for IA&B as well, including: w Uninsured motorists – Government affairs staff worked with members of the IA&B Uninsured Motorist Task Force to investigate possible solutions for addressing the state’s high uninsured motorist rate. The task force’s recommendation was to pursue legislation to increase penalties for driving uninsured. IA&B will work with stakeholders this session on moving such a bill. w Health Benefit Exchange – Maryland moved at warp speed last session to get the state’s health insurance exchange off the ground. All the health plans sold in the exchange will also be sold in the private market, and insurance brokers will be able to get a certification to sell insurance in the exchange. The difference between the private market and the exchange is that tax credits for individuals and tax

[4]

subsidies for small businesses will only be available through the exchange. IA&B continues to work with the legislature, the Maryland Insurance Administration and the Department of Health and Mental Hygiene to preserve agents’ role as trusted advisors in the sale of health insurance. w Perennial issues – IA&B plans for the annual legislative attacks on insurance agents from the legislature, including bills relating to credit scoring, increased notices and the promulgation of limited lines licenses, among others. IA&B also will advocate on behalf of other general pro-agent legislation, such as reducing various tax rates in the state and efforts to address insurance fraud.

Members can track IA&B’s legislative work in Agent Headlines and Capitol Connection newsletters, as well as on the association’s online Political Action Center, throughout the session.

In case you missed it …

Reminder: NCCI mod changes effective Jan. 1

The following legislation and regulation took effect Oct. 1: w Moped and motor scooter operators are required to carry liability and uninsured motorists coverage with minimum limits of 30/60/15. w Homeowners’ insurance applications and new and renewal policies must include a notice from the insurer outlining how claims may be considered in the cancellation or refusal to renew. w Notifications no longer are required for de minimis premium increases in commercial accounts. w All certificate of insurance forms (with the exception of ACORD and ISO forms, which are deemed approved) must be filed with the Maryland Insurance Administration before use.

Reminder of ACORD 852 MD form It may be time to update those agency management systems to ensure use of the latest forms. The Oct. 1 effective date of HB 1068 triggered the release of ACORD 852 MD (2012/10). The form takes into account the new law, which requires homeowners’ insurance applications and new and renewal policies to include notice from the insurer outlining how claims may be considered in the cancellation or refusal to renew.

[5]

Maryland employers’ experience mods will change starting Jan. 1, 2013. The National Council on Compensation Insurance will increase the primary/excess split point from $5,000 to $10,000 in the new year. The mods calculated with the new split point will change as a result and so will the premium, even without changes to the loss experience.

IA&B’s developed an online resource that explains the change, what it will mean for premiums and how to communicate with customers. www.iabgroup.com/ md/ncci_mod

New on-demand courses now live and approved for CE Pollution, e-Commerce and Certificates of Insurance are three hot topics covered by Jerry Milton in three new on-demand courses. IA&B On-Demand programs can be accessed anywhere there’s a Web connection and anytime it’s convenient (for as long as 30 days following registration).

CE credit and member costs are as follows:

Economic Census forms to arrive this month

w Certificates of Insurance — 1 General/$25

The Economic Census will return this month — with a simplified, online response option. The U.S. Census Bureau’s five-year measure of American business and economy will land in most (all but the smallest employers qualify) member agencies’ mailboxes by year end. Responses are due by Feb. 12, 2013, and for the first time, small businesses with one location can complete the form online.

w Insuring e-Commerce — 4 General/$75

The Economic Census collects data on physical location, industry, employment, payroll and revenue. The data is used by federal, state and local agencies to measure economic activity and for economic development planning.

Preliminary results will be available by December 2013.

w Pollution Exposures and Coverages — 4 General/$75

www.iabgroup.com/ on-demand

WELCOME

New Members Daniel C Howley Insurance Agency Rockville, Md. SDE & Associates Inc Baltimore, Md. Wallace & Wallace Insurance Agency Cabin John, Md.

Preventing Primary Agent | December 2012

ERRORS AND OMISSIONS

PERSONAL UMBRELLAS – SHOULDN’T EVERYONE HAVE ONE? CURTIS M. PEARSALL CPCU, AIAF, CPIA Curtis M. Pearsall, CPCU, AIAF, CPIA, president of Pearsall Associates Inc. and special consultant to the Utica National E&O Program, supplied this article.

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 E&O coverage, contact IA&B at 800-998-9644 or iab@iabgroup.com.

situations where a personal lines umbrella was in place and responded to the loss — or instances where there was no umbrella and the client was responsible for considerable financial responsibilities.

How many of your personal lines customers have a personal umbrella?

Hopefully, you know the answer. If not, your agency system should be able to provide the information.

Serious claims can occur at any time with any customer, so ensuring your clients have a personal umbrella could save them from significant financial consequences should that major claim happen to them.

For those personal lines customers without an umbrella, include the approximate cost in the marketing letter. This presumes your agency writes the underlying coverages and thus knows the various underlying exposures – such as the number of cars, drivers, primary and secondary residences, watercraft and any other potential exposures that could be scheduled.

Develop a sales campaign A good starting point is to develop a small sales campaign to educate customers on what a personal lines umbrella covers and what the approximate premium would be. It can be as simple as an informative letter that goes out to customers. Because some clients may not believe a major claim could happen to them, ask your personal lines umbrella markets for some sample claims. These claims could involve

There will probably be situations where the underlying limits would need to be increased to satisfy the specific umbrella carrier’s requirement. Your marketing letter should address the additional costs associated with this circumstance.

[6]

Don’t recommend a certain umbrella limit Be careful not to suggest that a certain limit – $1,000,000, for example – is sufficient as, without a doubt, there have been claims exceeding this size. If you provide a premium for a $1,000,000 limit, include a statement noting that higher limits are available.

Marketing letter is solid E&O protection While it is highly unlikely, there’s a chance no one will take you up on your offer to secure an umbrella proposal.

Have your efforts then been a “waste of time?” Not at all.

By reaching out to your customers to notify them of the benefits and cost of a personal umbrella, you have further protected yourself in the event a customer is involved in a significant claim. This written notification could be a key piece of evidence, so ensure each client’s file contains this document.

Don’t assume you “write” all underlying coverages If your client expresses interest in finalizing an umbrella proposal, know all of the underlying exposures they would look to have scheduled on the umbrella policy. If possible, sit down with the client to guarantee you have the correct information as there is a chance your agency doesn’t currently insure all of these exposures.

a person in the other car. The case was ultimately settled for $4,000,000.

The auto carrier paid their $250,000 limit, and the umbrella carrier paid $3,500,000, the amount they would have been responsible for had the proper $500,000 limit been in place.

There was a $250,000 gap. The plaintiffs’ sued the agency, and the claim against the agency was eventually settled for $160,000.

For exposures your agency doesn’t insure, secure the declarations page for these coverages. If the limits are not at the required level, advise the customer that the specific exposure cannot be scheduled on the umbrella policy until those required limits are in place. Confirm this communication in writing.

Could this claim happen in your agency? It could happen in any agency without the proper safeguards to ensure the necessary underlying limits are in place at all times.

Are there any conditions to the umbrella?

The umbrella carrier may impose specific conditions or limitations which could involve a host of issues, so look for any stipulations and bring these to the customer’s attention.

Ensure the correct underlying limits are in place As noted by the following claim, even when your customer has an umbrella, a problem can develop if there is a gap between the actual underlying limits and those specifically required: This claim involves a $250,000 gap in coverage between a personal auto policy and a personal umbrella. The agent indicated to the umbrella carrier that there was a $500,000 CSL in place for his client, and the umbrella policy was issued indicating on the declarations page that there was a $500,000 auto policy in place.

However, the agent only secured a $250,000/$500,000 BI limit instead of the required $500,000 CSL. The insured caused a serious auto accident, resulting in brain damage to

Discuss umbrella coverage and/or include it on proposals for all new customers.

Look to get the customer's sign-off if the customer chooses not to purchase the umbrella, and then retain this document in your agency management system.

“Let me think about it” If your client states “Let me think about it,” confirm in writing that coverage has not been bound.

Developing an umbrella campaign is a great way to identify exposures your agency does not insure and “round out an account.” Additional sales will probably result, plus it’s an effective way to enhance your agency’s errors & omissions protection.

ATLANTIC SPECIALTY LINES the “A” way — Attitude, Assistance, Adaptability

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OOO&9LD9FLA;KH=;A9D&;GE DIANNE SPRAGUE .)(&1,(&)..* BARBARA BEAVERSON 0((&+00&,+/Independently Owned Reliable & Experienced Underwriters

[7]

Coverage Primary Agent | December 2012

CORNER

WORKERS’ COMPENSATION AND STATUTES OF LIMITATION

JERRY M. MILTON, CIC Jerry M. Milton, CIC 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.

or, one of the parties has filed a petition for benefits.”

All states impose time limits in which workers’ compensation claims for a work-related injury or occupational illness must be filed. These time limits are known as statutes of limitation.

That should be the end of the story. But it’s not. As is the case all too often, there are exceptions. In many jurisdictions, the workers’ compensation commissions or courts have found various ways to extend these statutes of limitation.

Pennsylvania, Maryland and Delaware are no exception.

Statutes of limitation vary from state to state and range from one to three years. The statute of limitation for filing a workers’ compensation claim in California, Florida or Texas is one year. In most states, including Maryland and Delaware, the statute is two years. Pennsylvania, with a three-year statute, is more lenient.

Pennsylvania: Several court decisions in Pennsylvania have, under certain circumstances, extended the three-year statute of limitations. In Zimmerman v. W.C.A.B. (1991), the court ruled that it was the date of disability, not the date of injury, that governs the commencement of the statute of limitation. If the actions of the employer (or its workers’ compensation insurer) deceive an injured worker into thinking that a claim has been accepted, the time limitation will be extended.

(Kocis v. W.C.A.B., 1999).

If the claim is not filed within the statutory time period, then the injured party is barred from filing the claim at a later date.

Pennsylvania’s workers’ compensation law states, “All claims for compensation shall be forever barred, unless, within three years after the injury, the parties have agreed that compensation is payable,

[8]

Payment by the employer of the injured worker’s wages or medical bills in lieu of workers’ compensation benefits could also extend the time limit (Miller v.

Springfield Township, 1964).

Finally, in Martin v. W.C.A.B. (1990), the court ruled that the payment of out of state benefits for the injury extended the statute of limitations in Pennsylvania.

Maryland: In Maryland, the statute of limitations is two years in most cases. However, claims for ionizing radiation can be filed within two years after the worker becomes disabled or is made aware of the possibility of disability. If the accident causes death, then the claim must be filed within 18 months from the date of death. However, if dependents are claiming death benefits from an accidental injury, the dependents have seven years from the date of death to file the claim.

Delaware: The statute of limitations in Delaware is two years. However, once all parties have accepted the work injury claim, a new stopwatch begins to tick with a new statute of limitations. The new statute of limitations runs for five years.

If the injured employee incurs at least one medical bill related to the initial work related injury, a new five-year period begins. Each time a medical bill related to the injury is paid, a new five year period begins.

Although it might appear that statutes of limitation clearly prohibit the filing of workers’ compensation claims after a certain amount of time, these statutes have been eroded by the courts. If the employer misleads the claimant, or pays the injured worker’s bills rather than file a workers’ compensation claim, the statute of limitations may be extended. The time period can also be extended for incompetent or underage workers.

Coastal Homeowners Insurance ISO HO3/HO6 Immediate Quotes 15% commission on new and renewal business Primary and Secondary Homes are eligible.

Y’all take care!

Several states have ruled that people who are mentally incompetent or who are minors are not bound by the state’s statute of limitations. For these employees, the time period does begin to run until a guardian or legal representative is appointed to protect 7 their interests.

Coastal Agents Alliance, LLC

For an appointment, contact:

Sharon Karlsson

Phone: 201-407-7151 skarlsson@coastalagentsalliance.com

Umbrella Programs that Give You More Options Preferred Property Program gives you broader, more flexible coverage with a range of limits Our umbrella liability policies are written by XL Insurance with Chubb Insurance Group for the excess layer—two of the industry’s most highly rated carriers.

We offer four umbrella limits, with coverage you can rely on.

• $5 to $25 Million in umbrella coverage with up to $50 Million in total limits.

• Hi-Rise apartments up to 35 stories eligible, with higher eligible by referral.

• Excess of D&O, General Liability, Auto, Employers Liability, Employee Benefits and more.

• Developer-sponsored boards eligible.

Contact us for a quote:

888.548.2465 A subsidiary of

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INSURANCE

XL Insurance is the global brand used by XL Group pic’s insurance companies.

Our XL policies are underwritten by Greenwich Insurance Company.

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ASSOCIATION AT WORK

Charting IA&B’s course Members steer the way

The world really does revolve around you. At IA&B anyway. IA&B is grounded in the philosophy that you — the member — know best and should chart the course of your association.

Primary Agent | December 2012

S

ince 2003, Member Agent Panels (MAPs) have been instrumental in obtaining member feedback and, in turn, ensuring that IA&B evolves and remains relevant.

MAPs are regional groups of IA&B members — typically agency principals and producers — and association leadership who come together to informally discuss issues affecting agents. Participants serve two-year terms and meet in 13 locations: nine in Pennsylvania, three in Maryland and one in Delaware.

A look back MAPs determine the association’s focus. Previous MAP input sparked a variety of IA&B initiatives: from the creation of member resources on carrier insolvency, privacy and fiduciary duties, to legislative and regulatory advocacy on errant loan lenders’ requests, workers’ compensation loopholes and overlooked agency termination rights.

And, during the most recent 2011-2012 MAP cycle, participants shared concerns about the increased treatment of insurance as a commodity, the firming market in an unstable economy and consumers’ lack of insurance education. This feedback helped IA&B recognize the need for members to elevate their marketing and branding efforts and, in turn, showcase the benefits of working with an independent agent. In response, IA&B’s new suite of online member resources will debut next month.

A sincere thank-you goes out to the 2011-2012 MAP participants. Their input was invaluable in determining IA&B’s direction.

View participant list: www.iabgroup.com/ map_participants_2012

Indicate interest in future participation: www.iabgroup.com/ get_involved

A look ahead IA&B’s member-input mechanisms will get a facelift in 2013 as IA&B revamps the MAP format and introduces new opportunities to solicit feedback.

MAP participants will meet in person once, rather than twice, each year. These meetings will be supplemented with conference calls, polls and other communication throughout the two-year cycle, allowing IA&B more flexibility in accumulating timely feedback. At the same time, MAP participants will maintain the benefit of in-person networking while minimizing their time out of the office.

In addition, IA&B will launch new platforms to ensure varying member segments are understood. Groups of demographically similar (such as agency size) members will meet to provide feedback on their specific experiences, needs and preferences.

So while IA&B’s methods may change, the goal remains the same: to obtain member input and act upon it to the betterment of membership.

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____________________________ IA&B’s member-input mechanisms will get a facelift in 2013 as IA&B revamps the MAP format and introduces new opportunities to solicit feedback. ____________________________

Tools

YOU CAN USE REJECTION OF FLOOD COVERAGE FORM f recent severe weather events (think: Hurricane Irene, Tropical Storm Lee and Superstorm Sandy) have taught us anything, itâ&#x20AC;&#x2122;s the importance of flood coverage â&#x20AC;&#x201D; understanding it, offering it and documenting it.

I

IA&B helps member agencies protect their E&O by offering a flood insurance notification and/or rejection of coverage form for use with customers. The form allows customers to check one or more of three options: 1) understanding the unavailability of flood insurance, 2) rejecting building coverage for flood protection and 3) rejecting contents coverage for flood protection.

Shares flood risk regardless of location

Explains disaster assistance

Exposes lack of flood coverage in standard policies

Recommends flood insurance

Access the form online. Visit www.iabgroup.com, select Coverages from the left-hand menu bar, and then click Flood.

[ 12 ]

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 Donegal Insurance Group Erie Insurance Group Harleysville Insurance HM Insurance Group Insurance Agents & Brokers Service Group Inc

Aegis Security Insurance Co

MMG Insurance Company Millers Mutual Group Millville Mutual Insurance Co Mutual Benefit Group Ohio Casualty Penn National Insurance Selective Swiss Re The Main Street America Group Utica National Insurance Group

Encompass Insurance

GOLD LEVEL

Lebanon Valley Insurance Company

Progressive Westfield Insurance

Merchants Insurance Group

Agency Insurance Company AmWINS Program Underwriters Inc Auto-Owners Insurance Company Briar Creek Mutual Insurance Company Builders Insurance Group Chubb Group of Insurance Companies Countryway Insurance Company First General Services Foremost Insurance Group Goodville Mutual Casualty Company Guard Insurance Group Harford Mutual Insurance Co Hanover Fire & Casualty Insurance Company Insurance Alliance of Central PA Inc Insurance House Insurance Placement Facility of PA Keystone Insurers Group Inc Mercer Insurance Group Mercury Casualty Penn PRIME Municipal Insurance

SILVER LEVEL Access Insurance Company Allied Insurance American Mining Insurance Co Cumberland Insurance Group Frederick Mutual Insurance Co Juniata Mutual Insurance Co PSBA Insurance Trust The Philadelphia Contributionship

Reamstown Mutual Insurance Company Rockwood Casualty Insurance State Auto Mutual Insurance Company TAPCO Underwriters Inc The Brethren Mutual Insurance Company The Motorists Insurance Group The Mutual Service Office Inc Travelers Tuscarora Wayne Insurance Company Zenith Insurance Primary Agent December 2012

IA&B Financial Reports INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF FINANCIAL POSITION March 31, 2012

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

$

IAB of MD

1,993,547 $

327,171 $

338,784 $

2,659,502 $

93,275 1,422,814 101,400 3,611,036

11,253 233,612 7,704 579,740

15,602 8,251 6,633 369,270

120,130 1,664,677 115,737 4,560,046

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 Service Group

Combined IAB-Associations

DAIAB

-

-

20,306

389,569 90,000 486,082

102,013

7,726 30,000 12,005

965,651

122,319

49,731

-

560,440 $ 340,968 339,688 54,320 21,479 66,379 1,383,274

Combined IAB

-

$

(269,171) (269,171)

1,382,814

417,601 120,000 600,100 1,137,701

$ 4,576,687 $ 702,059 $ 419,001 $

Intercompany Eliminations

-

1,382,814 417,601 120,000 1,071,099 1,608,700

(600,100) 1,071,099 1,071,099

3,219,942 340,968 190,647 1,718,997 21,479 182,116 5,674,149

(600,100)

5,697,747 $ 3,837,187 $ (869,271) $ 8,665,663

LIABILITIES AND NET ASSETS IAB of PA 1,416,284

Total Current Liabilities Long-term liabilities, retirement obligations Total Long Term Liabilities

IAB of MD 251,818

-

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 $

DAIAB 107,475

-

Combined IAB-Associations 1,775,577

IAB Service Group 601,167

-

-

Intercompany Eliminations (269,171)

1,054,411 1,054,411

Combined IAB 2,107,573

-

1,054,411 1,054,411

392,457 2,767,946

21,256 428,985

7,788 303,738

421,501 3,500,669

2,648,237

(600,100)

421,501 5,548,806

3,160,403

450,241

311,526

3,922,170

2,648,237

(600,100)

5,970,307

4,576,687 $

702,059 $

419,001 $

5,697,747 $

(466,628) 3,837,187 $

(869,271) $

(466,628) 8,665,663

INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF ACTIVITIES YEAR ENDED MARCH 31, 2012

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

Net Operating Income (Loss)

$

IAB of MD

285,416 1,484,948 118,829 584,475 36,636 2,510,304 $

DAIAB

95,739 16,558 390,754 62,480 42,345 81,461 102,412 34,975 (277) 5,114 630,973 $ 200,588

Combined IAB-Associations

$ $ $ $ $ $

Change in Net Assets

397,713 1,938,182 242,635 721,862 41,473 3,341,865 $

87,946

4,942

4,543

97,431

1,191,177 40,383

342,774 9,738

59,991 58,898

1,593,942 109,019

32,596 1,222,706

53,562 242,253

6,835 64,774

$

2,574,808 $

653,269 $ 195,041 $

92,993 1,529,733 3,423,118 $

$

(64,504) $

(22,296) $

$

36,005 $

5,911 $

5,547 $

$

(28,499) $ (16,385) $

210

5,757 $

(81,253) $

Combined IAB

(3,903) $ $ (4,000) 2,071,114 $ 1,549,788 (1,437,078) $ 3,620,902 $ (1,444,981) $

125,296

Pension related change Investment gain from mutual funds

IAB Intercompany Service Group Eliminations

(714) (12,424) (9,996)

$

(55,901)

42,126 $

1,374

(39,127) $ (391,247) $

-

2,792,976 154,183 5,517,786

96,717 125,296 1,581,518

90,081 (2,037) 3,061,469 (1,419,810) 345,168 335,608 3,957,622 $ (1,444,981) $

(336,720) $

393,810 1,938,182

$

90,081 90,956 3,171,392 345,168 335,608 5,935,759

(417,973) (55,901) 43,500

-

$

[ 14 ]

(430,374)

IA&B maintains a strong balance sheet with over $8 million in assets, $6 million in member equity and no long-term debt, despite a $418,000 loss for the year.

IA&B supports the activities that our members value — effective advocacy, timely compliance resources and quality education. We’re 1,400 members strong across three states. 7,000 participants attend over 200 IA&B classes annually. And 1,900 members buy their agency insurance coverage through us.

This allegiance to IA&B, combined with our carrier partnerships, supports the financial strength of the organization.

The accountants’ review for the fiscal year, which ended March 31, is on file at IA&B headquarters. These statements are a summary of that report.

SPEAK UP! YOUR JOB DEPENDS ON IT! SUPPORT AGENTPAC — your voice IN THE STATE CAPITOL. LEARN MORE AND CONTRIBUTE ONLINE AT IABGROUP.COM/AGENTPAC.

AgentPAC is your state political action committee and the collective voice of independent agents in the state capitol. Issues that affect your job are at stake, and backing legislators aligned with IA&B’s government affairs agenda depends on your support. Watch for Grassroots Action Alerts prompting you to contact your legislators on specific issues, and consider donating to AgentPAC at a level that speaks (loudly) to policymakers that support our cause.

Your voice in the state capitol.

Title of Publication Primary Agent

Mailing Address of Known Office of Publication 5050 Ritter Road Mechanicsburg PA 17055 Complete Mailing Address of the Headquarters of General Business Offices of Publisher

Statement of Ownership, Management and Circulation Publication Number 0274-9025

Date of Filing 09/27/12

Frequency of Issue Monthly

Editor Karen Robison IA&B Service Group Inc. 5050 Ritter Road Mechanicsburg PA 17055

Publisher

Owner

Number of Issues Published Annually 12

Annual Subscription Price $15.00

IA&B Service Group Inc. 5050 Ritter Road Mechanicsburg PA 17055

IA&B Service Group Inc. 5050 Ritter Road Mechanicsburg PA 17055

The purpose, function and non-profit status of this organization and exempt status for federal income tax purposes has not change during the preceding 12 months.

Extent and Nature of Circulation

A. Total Number of Copies B. Paid Circulation (1) Mailed Outside-Country Paid Subscriptions (2) Mailed In-Country Paid Subscriptions (3) Paid Distribution Outside the Mails (4) Paid Distribution by Other Classes of Mail C. Total Paid Distribution D. Free or Nominal Rate Distribution (1) Free or Nominal Rate Outside-Country Copies (2) Free or Nominal Rate In-Country Copies (3) Free or Nominal Rate Copies Mailed (4) Free or Nominal Rate Distribution Outside of Mail E. Total Free or Nominal Rate Distribution F. Total Distribution G.. Copies Not Distributed H. Total I. Percent Requested

Average No. of Copies of Each Published Issue During Preceding 12 Months 1,577

Actual No. of Copies of Single Issue for September 2012 1,600

35 0 0 0 35 1,540 37 1,577 98%

35 0 0 0 35 1,560 40 1,600 98%

1,505 0 0 0 1,505

[ 15 ]

1,525 0 0 0 1,525

MARKETING

Grow Your Agency & Improve Your Marketing

by Tracking Key Metrics A select few high-growth agencies consistently increase their total personal lines books by 10 to 24 percent. Here, we pinpoint what they have in common, including how they track their marketing efforts to understand what is and is not effective.

Primary Agent | December 2012

I

ndependent agents should be winning, even dominating, in the personal lines marketplace. Is there any other industry where companies selling just one option have a majority of the market share over other companies in that industry selling multiple options of the same product?

Think of cars, ice cream or appliances. The company selling multiple brands consistently beats companies selling just one option. And yet, in the world of personal lines insurance where independent agencies have multiple insurance carriers to sell and choose from, independent agents have around 33 percent of the personal lines market share (A.M. Best, 2011).

It’s been this way, almost no movement, for five years. Many agencies claim they’re growing a little, but it takes 1.7 percent growth per year just to keep up with the population increase and stay flat with market share (U.S. Census Bureau, 2000 to 2010 population annual growth average).

High-growth agencies track metrics While most agencies change little in size of their personal lines books, there are a select few high-growth agencies consistently increasing their total personal lines books by 10 to 24 percent (Safeco NW Region top 25 personal lines highgrowth agencies study, 2011). Comparing the commonalities of these agencies, it’s clear that they stand out in their sales methods, training and support. One thing really was truly unique — these agencies tracked their marketing efforts and knew what was effective and what was not.

For the purposes of this article, we’ll keep the discussion to personal lines, but many of the tracking metrics that follow will work for commercial as well.

Marketing an independent agency is different from marketing an insurance company. Large insurance companies need to drive greater name recognition. But like all small businesses, insurance agencies need to be more efficient, more cost effective. Simply put, your marketing efforts should be the result of knowing where your new business comes from, and how much revenue you make from the new business, so you can focus on how to drive in more and keep more.

Key metrics for growth To gain back some of that market share, independent agents will need to get more effective with their marketing. Let’s take a look at what the high-growth agencies specifically track to help achieve their high-growth numbers. These tracking methods can help you grow too.

These 25 growth agencies tracked 12 common items. They fall into three categories: new business, average revenue per

[ 17 ]

Your marketing efforts should be the result of knowing where your new business comes from, and how much revenue you make from the new business, so you can focus on how to drive in more and keep more.

MARKETING

client and retention. Here’s a look into each of the 12, along with a few key target examples so you can see how you compare. As you read through this, put a mental check mark by all that you’re currently tracking in your agency.

New business Item 1: Total new business items This is fairly easily tracked through agency management systems. Most can say how many new policies were written. But it gets tougher from here.

Item 2: Where each new policy comes from Here’s the big one. The most important question each person must ask on every call is, “How did you hear about us?” Everyone knows it. Without this, everything else falls apart. You can tell where the business comes from, which advertising dollars are most effective, where to focus your efforts and more, just from this question. Once asked, then the tracking begins. The more detailed you get, the more you’ll learn. Here are 10 basic tracking categories: Total new business items — 1.

Number from cross sell efforts

2.

Number from client referrals

3.

Number from mortgage referrals

4.

Number from real estate referrals

____________________________ Learning your close ratio by category can be a big boost. ____________________________

5.

Number from walk-ins

6.

Number from phone books

7.

Number from print ads

8.

Number from website

9.

Number from Facebook

10. Number from other You can also track on a much deeper level. You can break out referral leads by each producer’s clients. You can track referrals by individual mortgage companies, real estate agencies, title companies and credit unions.

This helps you understand which centers of influence are highquantity referral sources and thus where to spend time enhancing relationships. Or you can view the low-production sources, so you can either change focus or drop the lead source completely.

Item 3: Close ratio by category Learning your close ratio by category can also be a big boost.

It’s clear where you should spend your time if you know, for example, that your close ratios for mortgage companies and certain captive agent referrals are near 80 percent and other methods are at 25 percent.

Some of these agents who track close ratios know that their client referrals are closing around 70 percent, while other agencies know they close client referrals at 35 percent. Digging further, those with the higher close ratios are only considering true client referrals to be those where the person referred is calling for a quote. Agencies with the lower close ratio are accepting any name and phone number given by a client as a referral, but this means that the prospect may or may not be ready to look into insurance at the time you call, and the agency is spending resources to continue to call and follow up on each lead. Both methods can work, and several agents say that they want to encourage the behavior of giving any referral. But if you are tracking everything, at least you’ll know which ones are most effective.

Item 4: Monthly close ratio by producer This is an excellent training tool.

If you know your agency closes referrals at 55 percent, but that your three producers are closing referrals at close ratios of 70 percent, 50 percent and 35 percent, then you’ll know where you should focus your sales training internally. Sounds easy, but you can’t do this if you don’t track close ratios!

Continued on page 20

[ 18 ]

Glance at Events DECEMBER & JANUARY CALENDAR Date

Topic

Location

December 3-6

CIC Personal Lines Institute

Philadelphia, Pa.

4-6

P&C Licensing Study Course

Allentown, Pa.

11-12

Executive Management Conference (rescheduled)

Gettysburg, Pa.

11-13

P&C Licensing Study Course

Mechanicsburg, Pa.

15

CISR Agency Operations course

Mechanicsburg, Pa.

16

William T. Hold—Learning from Losses

Reading, Pa.

17

William T. Hold—Learning from Losses

Philadelphia, Pa.

23

CISR Personal Auto course

Pittsburgh, Pa.

29

CISR Personal Auto course

York, Pa.

30

CISR Personal Auto course

Lehigh Valley, Pa.

31

CISR Personal Auto course

Wilkes-Barre/Scranton, Pa.

January

Power Hour webinar to navigate flood changes The next Power Hour webinar will cover the Biggert-Waters Flood Insurance Reform Act of 2012 and its impact on new and renewal business beginning Jan. 1, 2013. Members will learn the core changes, questions that remain unanswered and the law’s impact on agents.

Watch www.iabgroup.com/powerhour for more details and registration.

IA&B’s Power Hour is a free, member-only webinar held every other month on topics of immediate concern to agents. These live, hour-long webinars are led by industry topic experts who can speak to member concerns and offer valuable solutions.

[ 19 ]

MARKETING

Continued from page 18

Average revenue per client Item 5: Total premium Another easy one to track. This needs to be done for all personal lines in the agency, not just by carrier, so compile the totals and read on.

Item 6: Total policies Also easy to track by totaling all of your policies by carrier into one agency number.

Item 7: Total number of clients This equates to total households.

Pull the total number of addresses from your agency management system to get this tally.

Item 8: Average number of policies per client Divide total policies into the total number of clients to get this number. This is one of the most helpful statistics you have to tell you how your team is cross selling your book. A rough average of number of policies per client to use is 1.6. If you’re averaging 1.4, you know that one of the first things you should do is a big cross-sell effort throughout your book. Cross selling boosts both new business and retention, so if your average policies per client are 1.6 or less, you should focus your marketing efforts here first.

What is the high-end ceiling for average policies per client? Very few agencies average 3 or more policies per personal lines client.

It’s challenging to move your book one tenth of a point in this

category. But if you track it monthly and can see growth over three months of 1.72, 1.73, 1.74, you know you’re making solid progress on cross selling. If not, you may want to do some cross selling mailings with phone call follow ups. Or it may show a need for you to do more internal sales training on cross selling to protect your clients properly.

Item 9: Average premium per policy To find this amount, divide total premium by total number of policies.

Item 10: Average revenue per client This is more challenging, but it’s the jewel of tracking numbers for every agency. To determine the average revenue per client, multiply the average premium per policy by average policies per client. For example, if your average premium per policy is $1000, and your average policies per client is 1.6, then your average premium per client is $1,600.

Now multiply your average premium per client by your average commission. For example, $1,600 average premium per client times your average commission of 13 percent would equate to average revenue per client like this: $1,600 x .13 = $208 average agency revenue per client.

What is a good target range for average revenue per client in

[ 20 ]

personal lines? Heavy nonstandard agencies selling mostly monoline auto will be in the $140 to $180 range. In low catastrophe areas, average preferred agencies will see $190 to $240. In more affluent areas or places with increased catastrophe exposure, the average revenue per client is higher, averaging $280 to $325 per client.

Once you know this number, and you know where your business comes from, you can easily track your return on your investment. Agents who know these numbers are shooting for a one-to-one first year return on all of their marketing. For example, if you’re spending $1,000 per month on phone book ads, and your average revenue per client is $200, then you know you need to write five new clients each month to get a one-to-one return. If you’re not, then you may want to consider shrinking your marketing in that area. If your newsletters are driving a one-to-one first year return or better based on the increased referral traffic, then you know your marketing there is paying off.

Retention Item 11: Retention for your entire book each month To determine your monthly average retention, you’ll need to know: w Total policies from 12 months ago

Primary Agent | December 2012

w Total policies as of the last month end w New business total policies written over the past 12 months For example, let’s say 12 months ago you had 1,000 policies. At the end of the 12 months ending last month, you had 1,150 policies. Subtract the 250 policies you wrote new over the 12 months from the ending total of 1,150, and you kept 900 or 90 percent of the original 1,000. (Be sure you’re not counting rewrites as new!)

Is focusing on retention worth it? Here’s how to find out. Multiply your current annual revenue by your current retention rate. Do that over 10 years. Don’t add in new business; just see what happens to your current book over 10 years. Then multiply the same starting annual revenue by a retention number three points higher over 10 years, and calculate the difference. Here’s what it looks like for a $1 million revenue agency that moves its retention from 88 percent to 91 percent: $1,000,000 rev.

88%

91%

Difference

1st year income

880,000

910,000

30,000

2nd year income

774,400

828,100

53,700

3rd year income

681,472

753,571

72,099

4th year income

599,695

685,750

86,054

5th year income

527,732

624,032

96,300

6th year income

464,404

567,869

103,465

7th year income

408,676

516,761

108,085

8th year income

359,635

470,253

110,618

9th year income

316,478

472,930

111,451

10th year income 278,501

389,416

110,915 882,689

Item 12: Average length of time clients stay with you Determine the number of years each client has been with you. Tracking in whole years as opposed to months is easier when you start. Add up all the years clients have been with you (this will be big). Then divide that total and divide by the number of clients you have. This will give you the average length of time clients stay with you. Excellent marketing tactics

[ 21 ]

should deliver a $1.00 return for every $1.00 spent or better in the first year, but you get a much stronger picture for how profitable your marketing is when you know how long you retain your clients on average.

Keep tracking each of these metrics, and you’ll enjoy seeing how your monthly report card can drive growth and stronger profitability. ___________________________________________________

Chuck Blondino is the Northwest Region Marketing Director for Safeco Insurance, Member of Liberty Mutual Group.

Chuck wrote this article for ACT, and he can be reached at Chuck.Blondino@Safeco.com. This article reflects the views of the author and is not an official statement by Safeco Insurance or by ACT.

H.R.

Primary Agent | December 2012

HEADQUARTERS

JOB DESCRIPTIONS: ARE THEY REALLY WORTH THE TIME??

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

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

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

Learn more at www.iabgroup.com/hr.

Are job descriptions really worth the time? I’ve had this question posed frequently over the years. Some managers have expressed their frustration about having to write them, let alone having to share them with employees (does anyone see where this is going?). While there is no legal requirement that a job description exist, it does provide a sound basis of operation on a number of fronts.

Job descriptions (JDs) provide a fundamental grounding of what is expected by each position within your organization. They help clarify job expectations and establish the skills, educational background, related work experience and physical and mental effort required to carry out the job.

What can JDs provide? w A meaningful, standardized job title that effectively communicates status and level of responsibility to internal and external constituents w Information about career advancement for employees w Clarification for employees on what’s important about their

[ 22 ]

job, and minimization of distractions w Backbone of performance management/appraisal systems to evaluate the skill set of employees w Help determining whether someone is able to do the job when recruiting for a position or promoting from within w Assistance in establishing pay ranges and rates of pay using appropriate, comparative wage and salary survey data w Explanation for employees to understand the difference in pay based on the differences in jobs w A defensible position from claims from unemployment compensation, state workersâ&#x20AC;&#x2122; compensation and, where

applicable, Americanâ&#x20AC;&#x2122;s with Disabilities Act as Amended (ADAAA), Family Medical Leave Act (FMLA) or other allegations of discrimination by protected employees

Job descriptions provide a sound basis of operation. w Defined workflow practices within a department, or how the job holder interacts with external customers w Help determining whether a position is eligible or exempt from overtime provisions under the Fair Labor Standards Act

What are the drawbacks to JDs? w Poorly written, providing little guidance to the employee w Not updated to reflect current duties or specifications w Vague rather than specific language to describe job duties w Embellished language to â&#x20AC;&#x153;liftâ&#x20AC;? the pay range of the position w Too detailed, providing a task list rather than describing the type of work to be conducted w Using the JD as the performance appraisal tool, missing the behavioral or outcomes aspects of a job, as well as not acknowledging individual goals and objectives

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H.R. HEADQUARTERS

What are some of the typical elements of a job description? w The header or job information: contains information such as job title, immediate supervisor, FLSA status (exempt/non-exempt), department, job code, effective date and management approval w The job summary or purpose: in two or three brief sentences, provides a high level overview of what the job entails w Essential functions: regular, recurring duties and

responsibilities on a daily, weekly, annual or other periodic basis that form the primary basis of the job w Non-essential functions: those components of a job that may be expected from employees, but if removed in order to provide an accommodation do not change the nature of the job; helpful in applying ADAAA or disability claims w Physical and mental demands: includes range of motion; percent of time sitting, standing walking; weight lifted; and level

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Get MBG RReal people RREAL response At MBG, you get a real say. Our executive and marketing teams ask for your feedback regularly... formally and informally. Then they listen...and act.

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and intensity of sustained mental activity w Physical environment: level of comfort and distraction w Educational and experience background: minimum level of formal education and related work experience to perform the job w Equipment: unique or specialized machinery or office equipment used inherent with the job Other tips?

Job descriptions should be kept brief, but informative. Sentence structure should focus on one or two ideas.

Use action verbs, keep it outcomesfocused (ex. accurately record and appropriately transfer information), and use non-technical words where possible. Job descriptions are about communicating clearly to your employees your needs to effectively run your business.

Check out HR SolutionŠ for additional tips in the Administrative Guide, and access a sample job description format in the Administrative Tools.

Learn more at www.iabgroup.com/hr.

RREAL experience RREAL solutions

REAL support RE MUTUAL BENEFIT GROUP Huntingdon, Pennsylvania www.mutualbenefitgroup.com

[ 24 ]

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

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

Insuring a White [bearded] Christmas “And the beard of his chin was as white as the snow.”

Brady White’s beard is the real deal – a vital attribute in his role as “Santa to the Stars.” Hence the reason he insured it with Lloyds of London.

Ad Index Atlantic Specialty Lines Inc . . . . . . . . . . . . . . . . .7 Coastal Agents Alliance . . . . . . . . . . . . . . . . . . . .9 EMC Insurance Companies . . . . . . . . . . . . . . .IFC Guard Insurance Group . . . . . . . . . . . . . . . . . .21 IA&B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13, 23 IA&B Partners Program . . . . . . . . . . . . . . . . . . .13 Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .28 Preferred Property Program . . . . . . . . . . . . . . . .9

White’s Santa stint began as a last-ditch effort to pay his rent.

The gig landed him in a local contest — which he won — for the best Santa. From there, an agent informed White that Santas with real beards earned more than those who faked it, so he nixed the razor. Today he is the furry face of Santa at Macy’s department store in New York and visits the homes of Pamela Anderson, Kirstie Alley and other Hollywood A-listers every Christmas Day. “All sorts of things can happen to Santa’s beard,” shared White of why he took out an insurance policy. “Children can be a little rough, so it gets tugged and pulled a lot, and then there is the soot and the danger of being singed when I head down the chimneys…. I wanted to know that it was protected.”

Source: lloyds.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.

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