Pennsylvania Primary Agent - February 2019

FEBRUARY 2019 | PENNSYLVANIA

IA&B BOARD MEMBER

SHANNON LIPNISKIS

ON AGENTS' POLITICAL ADVOCACY

Exclusive Member Magazine

GET INVOLVED IN ADVOCACY EFFORTS HOW TO MINIMIZE CYBERCRIME DAMAGE

IN THIS

8 ON THE COVER: Q&A WITH SHANNON LIPNISKIS Shannon Lipniskis talks political advocacy, family business, and the Christmas Tree Capital of the World.

14 PROTECT YOUR INDUSTRY

Learn more about a one-of-a-kind grassroots advocacy opportunity – the Big “I” Legislative Conference. Then join us May 8-9 in Washington, D.C.

18 GET INVOLVED WITH IA&B’S ADVOCACY EFFORTS

There’s never been a better time to get involved in the political process on behalf of your industry.

24 COMPARING YOUR POLITICAL ACTION COMMITTEES

Insurance Agents & Brokers members have two political action committees representing their interests: AgentPAC and InsurPac. Learn how they differ and why it’s vital to support both.

PREPARING YOUR CUSTOMERS FOR TOMORROW’S THREATS TODAY. Cyber-security breaches are unfortunately common — and mishandling them can have lasting consequences on a business’ future success. If your policyholders become targets, Cyber Liability and Data Breach Response coverage helps them keep their customers’ trust.

Trust in Tomorrow.® Talk to us today. * Products available in Pennsylvania only

IN EVERY ISSUE 2 3 4 6 10 12 26 28 28

Chair of the Board’s Message Don’s Discussion Coverage Corner Technology Update President’s Message IA&B Partners Pics & Posts Education Classified Ads

About IA&B IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware.

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Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2019-2, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

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Copyright 2019. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

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CHAIR OF THE BOARD’S MESSAGE

BOARD OF DIRECTORS INSURANCE AGENTS & BROKERS

YOUR ADVOCACY MATTERS

A

s I sit down to write this, Congress and President Trump are at a stalemate. The federal government is shut down, which – despite another short-term extension of the debt-ridden National Flood Insurance Program – has placed limits on the issuance of new or renewal flood policies.

It’s a mess in Washington, D.C. And things aren’t rosy in the state Capitol buildings across the country either, as deadlocks and partisanship outshine compromise and open-mindedness.

Naturally, it’s easy to feel disgruntled about the political process.

However, I’m here to assure you that all is not lost. Through my association with IA&B, I’ve seen the power that individual constituents hold when they get involved and advocate for what they believe in.

Especially when they act together.

IA&B has a robust Advocacy Department, with staff, lobbyists, and member agent volunteers working in concert to protect our interests in the government and with regulators. It’s an effective coalition, but one that would be even stronger with greater involvement. Review page 18 for ways that you can participate.

The power of our voice grows exponentially when we work together.

Collectively, let’s amplify our message in 2019.

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

OFFICERS

John B. Hollister Milford, PA

Vice Chair of the Board

Craig S. Mader Crofton, MD

MEMBERS

Emory Stephen Burnett, CIC, ARM Wilmington, DE

Richard F. Corroon, CPCU Wilmington, DE

Michael P. Ertel Sr.+ Columbia, MD

Len Gieseler, LUTCF Pottstown, PA

G. Greg Gunn, CIC* Lemoyne, PA

Bryan C. Hanes, JD Hagerstown, MD

Lisa A. Leach Goth, CIC New Bethlehem, PA

Shannon Lipniskis Indiana, PA

Elizabeth H. Martin, CIC Millersville, PA

Mark J. Monroe

West Chester, PA Lancaster, PA

D. Bradley Rosenkilde Jr. Hunt Valley, MD

Tara S. Silfies, CPCU Bethlehem, PA

John Hollister Chair of the Board

Robert L. Smyrl Jr., CIC Hatfield, PA

Glenn R. Strachan

Ft. Washington, Md

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

J. Marshall Wolff, CIC, CPCU Easton, PA

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

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FEBRUARY 2019

IA&B Legal & Corporate Affairs Director Don Bankus provided this month’s answer.

Chair of the Board

Richard M. Rankin, CIC

Best,

Don’s Discussion QUESTION: I found a great candidate for my agency. I’d like to hire her and get her licensed as a producer, but she was convicted of a misdemeanor DUI when she was in her late teens. Does this prohibit her from obtaining a producer license?

ANSWER: Great question and one that we hear somewhat regularly. The Violent Crimes Control and Law Enforcement Act (VCCLEA) is probably the law that gave you pause when she informed you of her DUI. The VCCLEA is a federal law which prohibits anyone who’s been convicted of a felony for dishonesty or breach of trust from working in insurance, without first having secured prior written consent from the state’s insurance department. It also prohibits you, as an employer, from willfully employing someone who’s been convicted of a felony for dishonesty or breach of trust, without ensuring such consent was obtained.

In addition to the VCCLEA, each state’s producer licensing statute addresses issues pertaining to eligibility and suitability of applicants and lists prohibited acts that may preclude licensure.

• Is arrested with a high blood alcohol content, or • Has multiple convictions.

Fortunately for you and your prospect, neither the VCCLEA nor the state’s producer licensing statutes contain provisions or criteria that appear to exclude eligibility for licensing simply because she has a misdemeanor DUI on her record.

Note that a prospective licensee should never intentionally misrepresent or conceal a material fact when applying for a license. State regulators run a background check when they receive an application, and failure to disclose applicable or required information could demonstrate dishonestly. And that, in and of itself, could be viewed

as an attempt to obtain a license through misrepresentation or fraud – prohibited acts under the producer licensing statute.

If you or your prospective employee has any questions regarding this issue, feel free to contact the licensing bureau of your respective state’s insurance department, as follows: Delaware: 302-674-7390 or licensing@state.de.us Maryland: 410-468-2411 or producerlicensing.mia@maryland.gov Pennsylvania: 717-787-3840 or ra-in-producer@pa.gov

While your prospect’s DUI was classified as a misdemeanor offense, a DUI can be classified as a felony if the drunk driver:

Ask our experts!

• Causes serious injury or death to someone,

Contact Don: 800-998-9644, ext. 603 | DonB@IABforME.com | IABforME.com

Have a question? Rely on our team to find the answer.

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COVERAGE CORNER the Personal Liability coverage in the homeowner’s policy will act as the funding mechanism for a claim.

For the purpose of reviewing coverage, consider the ISO Homeowner’s 3 – Special Form. (Activities involving the monetization of vehicle use – like ridesharing or package delivery – is a different story for a different day….)

You already knew that the word ISO uses to describe monetized activities is “business.”

You already knew that the HO-3 has an exclusion for “business” activities.

However, some agents don’t know that some claims resulting from monetized activities are covered under Section II – Liability Coverages.

The key to finding coverage – or enforcing the exclusion – is understanding the two-part definition of “business.”

First, Part a. of the definition includes a “trade, profession, or occupation engaged in on a full-time, part-time or occasional basis.” Is cutting grass on weekends a “trade”? Is babysitting a child once per week an “occupation”?

Is cleaning a friend’s office monthly a “profession”? It’s clear that this part of the definition does not adequately address the side-hustle exposure.

PUZZLING OVER SIDE HUSTLES How to Piece Together Coverage

By Kevin C. Amrhein, CIC

I

f you owned a home in Kissimmee, FL in the late 1990s, I probably cleaned your swimming pool. And no, I didn’t enjoy it. I just did it for the money.

I teach a class about insurance concerns for people who engage in various activities for money.

During the intro, I ask the students to share about work experiences from their pre-insurance-agent days. In addition to hilarity (you’d be shocked at what some people share), this serves as an effective

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reminder to a group of insurance folks that we haven’t always been this way; e.g. trained to see the risk in anything and everything. We did what we did for the same reason our insureds do: because we wanted/needed money. And the honest folks in the group admit that, like our insureds, the thought “do I have insurance for this?” never crossed their minds. Not once.

of traditional employment. Nearly four in 10 of us have a side hustle, earning an average of $686/month, according to bankrate.com.

Yard care. House care. Pet care. Child care. Adult care. These and other “side hustles” are pervasive among Americans looking to earn money outside the scope

It’s not hard to imagine how such activities could (easily?) cause injury or damage property. If so, folks with no protection afforded elsewhere hope

FEBRUARY 2019

It is without question that you have insureds (and their household residents) who are doing this stuff and often without a license, training, or access to a general liability policy.

Part b. says, “Any other activity engaged in for money or other compensation, except…” and then lists four exceptions.

The first is worth noting, and I’ll paraphrase it: “One or more activities … for which no “insured” receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period.”

This is where the HO-3 addresses the side-hustle exposure in a way that creates confusion for some agents in my classes.

By connecting the income threshold to the 12-months prior to the policy period,

it seems ISO is concerned more with continuity than an absolute elimination of coverage for any compensated activity.

For example, if the side hustle is lawn care and it started during the current policy year, there’s no compensation during the 12-months prior to the policy period. Unless the lawn care efforts are considered by the Adjuster to be a “trade, profession or occupation,” claims arising from this side hustle are not subject to the “business” exclusion due to that first exception in Part b.

There’s further evidence to suggest that ISO is not completely unappreciative of the personal monetization efforts of insureds. For example, even if their activity triggers the definition of “business,” the exclusion has an exception if an insured is “under 21 and involved in a part-time or occasional, self-employed ‘business’ with no employees.”

By reviewing the HO-3, you’ve given your insured essential info they need to decide what they should do next.

Concerns about coverage may be addressed by adding an endorsement to the HO-3 or quoting a commercial policy. In some cases, injury or property damage caused by the performance

of such activities may be covered by a third-party’s insurance. For example, check out TaskRabbit.com, where folks can download an app, create a profile, and charge customers an hourly rate for numerous tasks ranging from home repair to moving furniture to waiting in line (yes, you read that correctly).

According to the website, there is coverage for some claims caused by “taskers.” As an agent, it’s unwise to offer coverage counsel on any insurance policy that you don’t have direct control or knowledge of. Should your insured use such a platform to connect with customers, caution him/her to carefully review any insurance provided.

That’s all for now. Until the next round … cheers!

Kevin C Amrhein, CIC, is IA&B‘s newest education consultant.

He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com/education.

LEARN MORE ABOUT COVERING SIDE HUSTLES ATTEND OUR special topic seminar to discover coverage concerns with side jobs and self-employment, as well as what's new with the ISO Personal Auto policy.

Coverage for Uber, AirBnB & Other Gig Economy Trends April 16 | Newark, DE July 9 | Mechanicsburg, PA Aug. 13 | Philadelphia, PA Aug. 22 | Pittsburgh, PA Register today.

800-998-9644, option 1 | IABforME.com/education

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TECHNOLOGY UPDATE

Remember: What’s convenient for you is also convenient for the hacker.

— Jason Gobbel

non-public information, often long after these records serve a business purpose.

As a result, The National Association of Insurance Commissioners is proposing that all agencies adopt a strategy for reviewing and purging non-public information that is no longer neededv.

I would encourage you to make a list of the type of data you’re collecting, determine how long it’s needed (by regulation, or business process), and make a plan for eliminating as much as possible to reduce your exposure.

PREPARE TO BE HACKED How to Minimize the Damage

By Jason Gobbel

H

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acking is big business. It’s been estimated that cybercrime will cost the global economy $600 billion this yeari. While some attacks will happen behind the scenes, 93% of them will happen right before your very eyes in the form of phishing attemptsii.

to view an important invoice or past due bill. Moreover, they often appear to come from a trusted sender, or even a coworker.

In the past six months, phishing attempts have increased by more than 60%iii, and 22% of employees have clicked at least one phishing link this yeariv.

Phishing is the attempt to obtain sensitive information, such as a password or account number, by impersonating a trustworthy source. These often arrive as emails requesting that you sign in to cloud storage services (OneDrive, Dropbox)

If you do the math, it’s very clear that the odds are not in your favor. While threat prevention and security awareness training are crucial pieces of your cybersecurity strategy, I’d like to give you one more piece of advice: Expect to be hacked.

FEBRUARY 2019

It’s no longer enough to try to keep the bad guys out. We need to shift our focus to understanding what they can access when they do get in, and how we can limit their reach. To do that, we need to understand three key things: What data are we keeping, where are we keeping it, and who has access?

It has long been a practice of agencies to keep an indefinite record of every business communication. As these records become digital, hackers gain access to years or even decades of

I tend to find at least three treasure troves of client data in every agency I meet: The agency management system, email, and a shared location such as SharePoint, OneDrive, or a network share. Often, the data stored in email or the shared location is redundant, and only stored there for convenience. Even more alarming, this non-public information is often uploaded to a personal email or cloud account. In fact, 87% of senior managers have uploaded business files to personal accountsvi.

Remember: What’s convenient for you is also convenient for the hacker.

It’s important to keep non-public information in as few places as possible, so that monitoring and protection can be as focused and effective as possible. And it should never be permissible to store client data on personal accounts.

It’s also important to limit access to non-public information, so that a single breach will expose as little data as possible. Do all employees need access to client payment records? Do commercial lines employees need access to personal policies? There are numerous ways to limit access, and there’s certainly one that will work in your agency. I encourage you to make a list of the roles and responsibilities of your employees.

You can use that list to begin building a plan to limit the amount of non-public information that can be accessed and compromised by their accounts.

By expecting a security breach, turning our focus inward, and understanding how non-public information is stored and accessed, we can reduce the amount of data that a single breach can expose.

Smaller breaches mean less data to sell to the next bad guy, and this hits the hacker where it hurts the most: The wallet.

Jason Gobbel is the chief technology officer of Kite Technology Group. Blending a unique background of insurance and technology, he consults with independent agencies across the country on topics of cloud adoption, security posture, and strategic planning. Contact him at jason@kitetechgroup.com.

DATA BREACH INSURANCE It’s not a matter of if, but a matter of when. Cybercrime is a real threat to agencies and customers, and most E&O policies do not cover data breaches.

Avoid damage to your agency’s finances and reputation with a solid privacy and data breach policy. Whether you need an endorsement to your E&O or a full-fledged, stand-alone data breach policy, we have options to address your agency and its unique exposures.

Contact IA&B Insurance Placement Specialist David Wertz, CPIA, to learn more.

David Wertz 800-998-9644, ext. 506 DavidW@IABforME.com

i McAfee Economic Impact of Cybercrime, Feb 2018 ii Webroot 2018 Threat Report Mid-Year Update, Sept 2018 iii Webroot 2018 Threat Report Mid-Year Update, Sept 2018 iv Webroot 2018 Threat Report Mid-Year Update, Sept 2018 v NAIC Insurance Data Security Model Law MDL-668 vi Virtru Security Insights

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Q&A

in criminology for my bachelor’s and master’s degrees and was pursuing a career in criminal justice. I took a sales job for Pier 1 Imports while I job-hunted and really enjoyed it. My dad had an opening and thought maybe since I enjoyed sales there, I would enjoy insurance sales as well. He asked me to give him three years, and if I didn’t like it, then I could move on and he would go to plan B.

WITH IA&B

SHANNON LIPNISKIS

S

hannon Lipniskis, agency principal of Hutton-Blews Insurance in Indiana, PA, is a secondgeneration independent insurance agency owner. She serves on the IA&B Board of Directors, as well as the IA&B of Pennsylvania’s Government Relations Committee.

Q. You’re on the IA&B Government Relations Committee and frequently attend national legislative conferences. What drives your interest in politics and government?

A. I took an interest in politics at an early age. I remember following President Reagan’s second term in office at the age of 10 and continued following presidential politics from then on. Once I entered college, I started paying attention to our state politics as well. Civics, history, and American politics were always my favorite classes. Our country has done so many amazing things, and it’s due to our system of government.

It affects everything, so people should be more informed and involved. My youngest son, who is 10, also has taken an interest, and it’s really interesting to get his “take” on things!

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Q. Share your thoughts on political advocacy and why it’s important for member agents to get involved.

A. Political advocacy can sound scary and time-consuming, but it doesn’t have to be. Even for individuals who don’t have an outside interest in politics, it can be as easy as having a quick conversation with your local representative whenever you get the chance. Maybe they go to your church or you see them at the grocery store or little league field.

These are all opportunities to share a concern you have.

The more input they get, the better they will understand the impact a certain issue has on a segment of their constituency.

And they really do appreciate the input.

Imagine having to vote on an issue with very little understanding of what it’s about, let alone how your vote will impact the citizens you represent. They do represent us, so we should make sure our voices are heard!

Q. We appreciate your consistent and generous support of AgentPAC, our political action committee. Why do you donate?

FEBRUARY 2019

A. Quite simply because that is how the political system works. I may not like it, but until I can change it, it needs supported. Our IA&B political action committee works hard to advocate on our (the agents’) behalf, and it needs our contributions to do it.

Candidates who share the concerns of independent agents need our support.

Just look at the current threat to our commissions due to [Pennsylvania] tax reform. I’m pretty sure every single independent agent in our state would sit up and take abrupt notice if legislation was passed that applied the sales tax to our commissions. The bigger our AgentPAC fund is, the bigger our voice can be heard on issues like this, and we need to be proactive. After the legislation is passed, it’s too late to react.

Q. You followed in your father’s footsteps by becoming an independent agent. Was that the plan all along?

If not, what put you on this path?

A. I think it was his plan all along but not mine! I helped him out in the office off and on since I was 15, but I had no plans to join him. I actually majored

Needless to say, the rest is history! After one year, I was hooked. Insurance is so much more than just sales. You are always learning because the industry is constantly evolving with what’s going on in our world. More young people should give insurance a try as a career field!

Q. You and your brother co-own the agency. What lessons have you learned about successfully operating a family business?

A. When my dad was ready to retire, he made one rule for us in order to perpetuate the agency: The business should never ever come between our relationship as brother and sister.

And we have always abided by that rule.

Q. You recently acquired another agency. What advice would you give to other agency principals who are preparing for a similar transition?

A. Plan, plan, and plan! And communication with our existing staff was crucial. We shared our transition plan with them so that they would know where we would be and why. We are really appreciative of the awesome team we have that keeps the ball rolling so that we are able to take on acquisitions like this.

Q. The IA&B Futures Conference for young insurance professionals draws quite a few young women who are new to the industry. What would be your advice to them as they begin their careers?

A. There are a lot more women in the industry today, but if you find yourself in a situation where you are the only woman or one of a few, don’t be intimidated.

I would also say that this is a good industry to be able to balance career and family. Some industries are not easy to navigate if you want to have a family and still excel in your career, but I have been able to, and I try to be the kind of employer who enables my employees to do the same.

Q. Tell us about Indiana, PA! If we were to visit, what should we expect?

And what should we do while we’re in town?

A. Well, we are the Christmas Tree Capital of the World, so Christmas time is a great time to visit. We are also the home of Jimmy Stewart, so every November through December we celebrate with the It’s a Wonderful Life Festival. We have a kick-off parade, light-up night with all the businesses on Philadelphia Street, a giant tree, and weekend activities including music, vendors, food, and Santa visits.

Philadelphia Street really is picturesque at the holidays, and the parade is my favorite of the year. Our agency sponsors Santa’s House during the festival, and we are thinking of entering a float in the parade next year!

We are very blessed in that we work very well together. We each have different strengths, so we balance each other quite well. We are not just siblings but the best of friends. We respect each other’s opinions, so when we do disagree, we are able to hear each other out and come to a conclusion or compromise we can both live with.

It can be a difficult thing to go into business with a relative or even close friend. I’ve seen it go the other way and destroy relationships. But I can honestly say that, as much as I love my job, if I had to choose, I would choose my brother every time.

Don’t shrink or hide. At the same time, have some thick skin. When you are in the business of dealing with the public, you just never know where someone is coming from. To this day I do my very best, but sometimes there are still people that prefer a male voice. Does it make me angry? Yes. But will I let it kill a good account? No. I don’t take it personally, and I hand it off to my brother. And he will do the same with me when he feels he’s not clicking with someone.

Siblings Jay Blews and Shannon Lipniskis are co-agency principals of Hutton-Blews Insurance in Indiana, PA.

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PRESIDENT'S MESSAGE

ONWARD & UPWARD: A MESSAGE FROM JASON ERNEST As we get going in 2019, I want to continue to discuss an IA&B initiative – one that is becoming a passion of mine. You will hear a lot about our involvement with the Future Business Leaders of America (FBLA) in the coming months, so I want to explain a little bit more about what this is.

First, IA&B has officially become a partner with FBLA, meaning we are working closely with the organization to introduce our industry to high school students. And by our industry, I don’t mean insurance generally. I mean we are exclusively promoting careers in the independent agent channel.

Second, we will take the first steps toward recruiting students in 2019.

We will work with local schools to determine which students have interest in a career as an independent insurance agent, and we will seek out the best of the bunch. This could lead to job shadowing and internships with our member agencies and, ultimately, to full-time careers in our agencies.

Third, we will assist with training and licensing these students. Last year IA&B launched a new education scholarship program – one that has been extremely well received by members. It will continue in 2019.

Visit IABforME.com/scholarships to learn more.

Finally, we will work with member agencies to make them an attractive employer for this new talent. Young talent will want to work – and stay – in vibrant, winning environments.

Please seek me out at JasonE@IABforME.com if you have immediate interest in this initiative. We are looking for volunteers and for agencies that have immediate needs. The success of the program falls on all of us, as we build for the future.

WELCOME NEW MEMBERS BRUNS INSURANCE SERVICES LLC Erie, PA BUBBY’S AUTO TAGS AND INSURANCE LLC Abington, PA COSAINT INSURANCE PARTNERS LLC Conshohocken, PA HARNER INSURANCE & FINANCIAL SERVICES INC. Harrisburg, PA KELLY GLASS INSURANCE INC. Lebanon, PA LANDIS AGENCIES Quakertown, PA LEE INSURANCE LLC White Oak, PA M. D. KARSTETTER AGENCY INC. State College, PA PAMELA STERN & ASSOCIATES LLC Mill Creek, PA SECHLER INSURANCE GROUP LLC Somerset, PA SECOND OPINION INSURANCE AGENCY McClellandtown, PA

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To find out more about what we can do for you and your customers, contact our Pennsylvania representative, Harry Larkin, at harry.larkin@grinnellmutual.com. * Products available in Pennsylvania only

Learn more about membership by contacting IA&B Vice President – Membership Tim Wonder.

800-998-9644, ext. 351 TimW@IABforME.com IABforME.com/membership

Jason Ernest, Esq. IA&B President & CEO

grinnellmutual.com 10

FEBRUARY 2019

“Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2019.

IA&B PARTNERS PROGRAM

OUR FEATURED PLATINUM PARTNER Insurance Agents & Brokers proudly recognizes Donegal Insurance Group as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

We have been providing quality property and casualty insurance protection since Donegal Mutual Insurance Company began doing business in 1889. Over the years, the Donegal Insurance Group has grown significantly and now writes property and casualty business in 24 states. The Donegal Insurance Group enjoys an A (Excellent) rating by the A.M. Best Company.

FEATURED PARTNER Donegal Insurance Group CHIEF EXECUTIVE OFFICER Kevin G. Burke President and CEO CORPORATE HEADQUARTERS Marietta, Pennsylvania A.M. BEST RATING A (Excellent) WEBSITE www.donegalgroup.com

As our operations have grown, we have expanded our ability to provide our independent insurance agents with a comprehensive suite of products. We have developed competitive commercial products that allow our agents to serve a broad spectrum of small, mid-market and larger commercial accounts.

We work very hard to provide exceptional products and service in lines of business and markets that we know and understand well.

agents. We are constantly looking for ways to deliver increased value to our agents and solidify company-agency relationships.

We have benefited greatly from the feedback we receive from our regional agency forums, which helps us enhance our products and operations.

Much has changed since we started in the insurance business 130 years ago, but one thing remains the same — Donegal remains firmly committed to delivering a better value to our agents and policyholders. We look forward to mutual success as we work together with our independent insurance agents in serving the insurance needs of our customers.

Thanks to these partners for supporting the independent agent network.

PLATINUM PARTNERS ACUITY Agency Network Exchange LLC BBSI Donegal Insurance Group Erie Insurance Group Insurance Company of Marble Insurance Agents & Brokers Service Group Millers Mutual Group Penn National Insurance

Donegal has invested millions of dollars developing advanced technology that greatly enhances our agents’ and policyholders’ experience in doing business with us.

FEBRUARY 2019

THANK YOU

Farmers Mutual Fire

At Donegal, we focus on providing superior technology and outstanding service to our agents and customers. We know that “ease of doing business” has become increasingly important to independent agents.

Donegal has long recognized the value of an independent agent in assisting individual and business consumers navigate the insurance-buying process. Every day, we prove our commitment to the independent agency system by distributing our products exclusively through independent

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IABforME.com/Partners2019

Plymouth Rock Assurance The Main Street America Group BECOME A 2019 PARTNER TODAY

Donegal Insurance Group now writes property and casualty business in 24 states.

Interested in becoming a partner?

Please don’t hesitate to contact us.

Jess McWilliams Education Senior Director 800-998-9644, ext. 503 JessicaM@IABforME.com

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PROTECT YOUR INDUSTRY MEET LAWMAKERS AT THE BIG "I" LEGISLATIVE CONFERENCE

By Lauren Brinjac

Meet with your elected officials to help them understand the bottom line, real-life implications of their policies. It can and does affect how they vote on issues. Join us for a one-ofa-kind grassroots advocacy opportunity at the Big “I” Legislative Conference.

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FEBRUARY 2019

Y

ou have a strong government affairs team at the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) advocating for your interests daily in Washington D.C. They have put in the time and effort to build relationships with federal lawmakers on both sides of the aisle and educate them on the issues important to the independent insurance agent and broker community. Their effectiveness may make it easy for you, as a busy insurance professional removed from the day-to-day workings of Congress, to assume that that is all that’s needed, that they’ve got things covered. But, it’s not quite that simple.

An effective advocacy program is like a three-legged stool – with even one leg missing, the stool cannot stand. Your lobbyists at the Big “I” are one leg of the stool; a well-funded political action committee that can support the election of agent-friendly candidates to office (InsurPac) is another. The third, and arguably most important, leg of the stool is grassroots advocacy: the network of thousands of insurance agents and brokers across the country who are the constituents of the senators and congressmen and women who make up the U.S. House and Senate.

It makes sense: For a lawmaker, it’s critical to listen to the people who can vote you into (or out of) office. For

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It’s critical to make your congressional representatives understand how the votes they cast and the decisions they make affect your livelihood.

— Lauren Brinjac IA&B Government Affairs Director

an independent agent, it’s critical to make your congressional representatives understand how the votes they cast and the decisions they make affect your livelihood. You, someone who lives and breathes the insurance industry on a daily basis, are your own best advocate.

Helping your lawmaker understand the bottom line, real-life implications of a policy that might seem simple on paper can and does affect how he or she will vote on an issue. And, every vote really does matter.

Independent insurance agents and brokers have a great opportunity to see and be part of effective grassroots advocacy in action by attending the Big “I” Legislative Conference. Held every spring in Washington D.C., the Legislative Conference brings together over 1,000 agents from across the country for a one-of-a kind legislative event exclusively for the members of the

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independent agency system to educate members of Congress on the issues important to you and your clients.

This year’s event takes place May 8-9 at the Renaissance Washington, D.C. Downtown Hotel. The event is suitable for agents of any experience level. You need not feel that you are politically savvy in order to attend: Registration includes an in-depth issues briefing prior to your visits on Capitol Hill, and you will be with a group of your fellow agents from Pennsylvania and Delaware as you meet with federal lawmakers to discuss legislative priorities. Issues on which agents have advocated in past years include: reform and reauthorization of the National Flood Insurance Program (NFIP), the Federal Crop Insurance Program, tax reform, insurance regulatory reform, health care, and (of increasing importance) cybersecurity.

FEBRUARY 2019

In addition to the opportunity to advocate on behalf of your industry, the Legislative Conference is a great opportunity to network. You will have time to meet and mingle with your fellow agents from around the country as well break bread at a dinner exclusively for IA&B members, and, if you choose, attend a pre-Capitol Hill visit breakfast hosted by the Big “I” to hear remarks from high-profile congressional speakers.

Worried about the cost? IA&B picks up the tab for your conference registration, overnight hotel room, and dinner on May 8. You are only responsible for your travel expenses and incidental meals.

The 2018 mid-term elections resulted in a shift in power in the U.S. House of Representatives as well as a freshman class of 110 lawmakers new to Washington, D.C. Your bipartisan Big “I” federal government team is ready to face the new Congress in 2019, advocating

amidst the prospect of changes on issues and programs which will affect the independent agent and broker community for many years to come.

A show of grassroots strength on Capitol will bolster their efforts in a critical way throughout the rest of the year. There has never been a better time to become politically active.

IA&B Government Affairs Director Lauren Brinjac provided this article. You can reach her at 800-998-9644, ext. 607 or LaurenB@IABforME.com.

TAKE PART WHO: You and your fellow independent agents and brokers from around the country WHAT: Attend the Big “I” Legislative Conference WHEN: May 8-9, 2019

committed to mutual success.

Harford Mutual Insurance partners with independent agents in Pennsylvania.

We insure restaurants, contractors, mercantile, and other commercial entities. We’re committed to protecting your client’s business and building yours.

WHERE: Renaissance Washington, D.C. Downtown Hotel WHY: To protect your industry HOW: To learn more and register, visit IABforME.com/Leg_Conf

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GET INVOLVED WITH IA&B’S ADVOCACY EFFORTS

T

here has never been a better time to get involved in the political process on behalf of your industry.

One thing is certain: Lawmakers in Harrisburg continually make decisions that affect you, your business, and your clients. It’s critical for the independent insurance agent and broker community to have a role in this decision-making process. As the saying goes, “If you’re not at the table, you’re on the menu.”

Your input is critical in this process.

Although you have a team at IA&B continually advocating on your behalf, we still need your voice. If you would like to join your fellow IA&B members who are involved in the political process, there are several ways to do so. (Note: It’s your interest in the process and knowledge as an insurance professional that are

most valuable; you need not have prior political experience to get started.)

JOIN THE IA&B GOVERNMENT RELATIONS COMMITTEE The Government Relations Committee plays an important role in the association’s advocacy program by providing input to our legislative staff to guide policy development and help shape legislation to benefit the industry and small businesses.

Time commitment: The committee meets as necessary during the legislative session – usually two or three times a year.

Most meetings are via conference call, but occasionally in person in Mechanicsburg.

Learn more and volunteer: IABforME.com/gr_position

BE A KEY CONTACT Lawmakers prioritize hearing from their own constituents (those members of their district responsible for voting them into or out of office). If you have a personal relationship with your local legislator and are interested in communicating with him or her about issues important to the insurance agent and broker community, let us know. Additionally, if you have interest in testifying or acting as a resource at legislative or regulatory meetings and public hearings, we’d like to hear from you.

To learn more and volunteer, contact IA&B Government Affairs Director Lauren Brinjac at 800-998-9644, ext. 607 or LaurenB@IABforME.com.

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More information at IABforME.com/AgentPAC

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FEBRUARY 2019

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Outstanding claims service is just another way that Donegal is “There When It Matters Most” for independent insurance agencies.

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FEBRUARY 2019

2018 AgentPAC of Pennsylvania Contributors We sincerely thank everyone below for contributing at every level. Your financial support of AgentPAC helps make sure your voice, collectively with other agents, is heard during the legislative process, and helps us as we advocate for ways to strengthen agents’ political interests on key insurance and business issues in Pennsylvania.

Learn more at IABforME.com/AgentPAC. HOUSE LEVEL ($100 - $249)

PRESIDENT’S CLUB ($1,000+) Tod Aronson E.R. Munro and Company

Greg Gunn Gunn-Mowery LLC

William J. Griffin Jr. Griffin & Griffin Financial Services

Douglas Loesel Loesel-Schaaf Insurance Agency Inc.

Michael McGroarty McGroarty & Bradburn Insurance Inc.

GOVERNOR’S CLUB ($500 - $999) Joanne Bankos Collens Wagner Agency

David King Horst Insurance

Dean Wimmer The Weimer Group

Norman Basso E. K. McConkey & Company

Shannon Lipniskis Hutton-Blews Insurance LLC

J. Marshall Wolff Kressler Wolff & Miller Inc.

David Imschweiler DJI Insurance Agency

Kim Troast-Singley Troast-Singley Insurance Agency LLC

Glenn Hatfield Hatfield Group LLC

Claire Pantaloni Insurance Agents & Brokers

Scott Burns Burns & Burns Associates Inc.

George Heigel Swift-Hopkins Inc.

April Ressler Teeter Insurance Agency Inc.

R. Jeffrey Coup Coup Agency

Matthew Hill Logan Branch Insurance Inc.

Tara Silfies Hampson-Mowrer Agency LLC

Eugene Bartoli Assured Partners of Northeastern Pennsylvania

Robert Hogue Walker & Associates

Mark Sitler The Hartman Agency Inc.

John Hollister Sheeley Insurance Agency

William Slovik Slovik Insurance Agency

Jay Lemelin Berlanco Insurance Agency Inc.

Robert Smyrl Robert L. Smyrl Inc.

Cynthia Matter Allen B. Chubb Agency Inc.

Harry Triolo TLC

Karyn Miller Hinkle Insurance Agency Inc.

Ellen Vogt Baron Insurance Group LLC

Scott Mills Charles M. Mills Insurance Agency

Cathleen Wink DSC Inc.

Mark Monroe Griffith Insurance LLP

Tim Wonder Insurance Agents & Brokers

Eugene Myers Myers Insurance Agency Inc.

J. Greg Zinn Zinn Insurance LLC

Roger Myers Roger W. Myers Insurance Agency LLC

UP TO $99

Owen Myers Wenger and Myers Insurance

Ryan Cunningham Kellar Insurance Agency Inc.

Erik Bergdale Bergdale Insurance Agency Inc. Jeffrey Brown Keller Brown Insurance Services Gary Dix Boardman & Hamilton Co.

SENATE LEVEL ($250 - $499)

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Robert Beiler Beiler Insurance Agency Inc.

R. Kent Anthony Anthony Insurance Inc.

Randall Close Wise Insurance Agency

Jocelyn Howard C. W. Howard Agency Inc.

Robert Walbeck R. E. Walbeck Agency Inc.

Elizabeth Martin Martin Insurance Agency

Donald Enders Enders Insurance Associates

Chadwin Yoder Franconia Insurance & Financial Services

Austin Morris Austin R. Morris & Associates

James Enders Enders Insurance Associates

Richard Rankin Murray Insurance Associates Inc.

Jason Ernest Insurance Agents & Brokers

David Ross American Insuring Group Ltd.

James Fitzsimmons Fitzsimmons Insurance Agency Inc.

William Simpson Simpson & McCrady LLC

FEBRUARY 2019

Kyle Zehr Franconia Insurance & Financial Services Douglas Williams Williams Insurance Agency

Henry Dunn Henry Dunn Inc. Duane Epting Strausser Insurance Agency Robin Fetterolf-Dunckley Steely & Smith LLC Angela Franchi The Lunar Agency Inc. Donald Hamm Donald Hamm & Sons Insurance LLC Randall Hart Annie W. Metzler Insurance Agency Inc.

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COMPARING YOUR POLITICAL ACTION COMMITTEES AgentPAC VS. InsurPAC

By Lauren Brinjac

Insurance Agents & Brokers members have two political action committees representing their interests: AgentPAC and InsurPac. What is the difference and why would an agent support both?

A

political action committee allows a group of likeminded individuals to pool their resources in order to act from a position of collective strength within the political process. Political action committees (PACs) have become an integral part of American politics on every level, given the significant cost of getting elected to public office and, subsequently, getting reelected.

InsurPac is the PAC of your federal advocacy team, the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”). It is one of the largest small business PACs in the country, consistently raising and disbursing more than two million dollars per election cycle. It solicits voluntary, personal contributions from agents throughout the country, and then distributes that money to congressmen, senators and candidates for federal office who support small business and the independent agency system.

AgentPAC is the state political action committee of the Insurance Agents & Brokers of Pennsylvania. It solicits voluntary, personal contributions from agents throughout the state. Your contributions stay in Pennsylvania and are used to support the election of state legislators and candidates who support independent agents.

Neither InsurPac nor AgentPAC look at party affiliation. Support is given to [those] who are advocates of the independent agency system.

— Lauren Brinjac IA&B Government Affairs Director

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FEBRUARY 2019

on multiple aspects of the insurance industry. This makes political engagement at both the state and federal level vitally important. InsurPac and AgentPAC provide important vehicles through which the independent insurance agent and broker community can play an active role in shaping the public policy debates in Washington D.C. and Harrisburg.

Though InsurPac operates at the federal level and AgentPAC at the state level, both PACs share similar purposes and goals.

Both InsurPac and AgentPAC allow independent agents and your federal and state government affairs team to regularly attend fundraising events where they develop and strengthen existing relationships with legislators and their staff. In disbursing money, neither InsurPac nor AgentPAC look at party affiliation. As always, support is given to representatives, senators and candidates for office who are advocates of the independent agency system.

IA&B Government Affairs Director Lauren Brinjac provided this article. You can reach her at 800-998-9644, ext. 607 or LaurenB@IABforME.com.

LEARN MORE ABOUT YOUR STATE AND FEDERAL PACS IABforME.com/PaPAC InsurPac.com/form

Shopping your E&O? IA&B offers coverage that agents need.

Contact David today.

For personalized service, CONTACT DAVID WERTZ 800-998-9644, ext. 506 DavidW@IABforME.com IABforME.com/agency_insurance

While most laws involving insurance are made at the state level, decisions made by the federal government have significant impact not only on small businesses, but also

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PICS & POSTS

Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B

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FEBRUARY 2019

27

Education

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ADVERTISEMENTS SOUTHEAST PA PRODUCERS & AGENCIES

We'll Save You a Seat. Register Today.

800-998-9644, option 1 IABforME.com/education CLASSROOM DATE TOPIC

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CISR Personal Lines Miscellaneous CISR Personal Residential Property CISR Agency Operations Property & Casualty Licensing Study Course Life &Health Licensing Study Course CIC Agency Management Institute WT Hold: Personal Auto & Recreation Concerns WT Hold: Personal Auto & Recreation Concerns

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12 Alphabet Soup: D&O, EPLI, FLI and EBL 13 Life Insurance to Hedge Against Financial Losses Contractors, Contractors, Contractors 13 14 Catastrophe: Expertise You’ll Need When it Matters Farm Property Considerations 19 19 Everything’s Soaked & Stinks: Water Damage 21 E&O Road Map (Parts 1 & 2)

26 On Ethics: Data, Dilemmas & Knuckleheads 28 Cyber Insurance

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

Contact Ray Reinard at 215-357-8600, Ext. 119.

If you would like to place a classified advertisement, please contact Laura Gaenzle at Laura.gaenzle@theygsgroup.com or 717-430-2351.

PRIMARY AGENT EDITORIAL Editor: Karen Robison KarenR@IABforME.com 800-998-9644, ext. 606 Contributing editors: Jennifer Ross, Megan Fioretta, Melissa Telesha

JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME

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Account Executive: Laura Gaenzle laura.gaenzle@theYGSgroup.com 717-430-2351

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