Primary Agent - July 2010 - PA Edition

PENNSYLVANIA

IN THIS ISSUE ________________ Hidden hunting exposures Cheat sheet: insuring college kids

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Contents

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PRIMARY AGENT MAGAZINE Hunting leases: What are the exposures?

Hunting for a way to round out accounts and reduce E&O exposure?

Then set your sights on insureds who hunt or lease land to hunters.

Here, Jerry Milton takes his best shot at tracking down the exposures and coverages of hunting season.

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Insurance coverage for children in college A question parents and their college-aged children don’t ask, but we need to ask, is, “Will these college students be covered under their parents’ Homeowners’ and Personal Auto policies while they’re living away from home and attending school?”

The answer may be, “Yes.” However, the answer may be, “No.” And, sometimes the answer could be, “Maybe….”

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Workers' Comp: Who, what, where, why and when Can't get enough of Jerry Milton -- author of this month's feature articles?

Then read about IA&B's upcoming Workers' Comp seminar ... developed and taught by the coverages guru himself.

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

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

17 24 28 28 28

IA&B Partners Technology Update Advertisers Index Classified Ads Last & Least

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

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

Address inquiries to: Primary Agent Editor PO Box 2023 Mechanicsburg, PA 17055-0763 Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347 Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2010-7) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

Copyright 2010. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

Get Ready Pennsylvania.

Here Comes ACUITY !

Interested in an agency appointment?

Please contact Territory Director Steve Harris at 717.756.9983

A.M. Best A+

For For All All That That Matters Matters www.acuity.com www.acuity.com

Board of Directors Officers Kathleen M. Glattly, ChFC, CLU, CPCU Chair of the Board Factoryville, Pa. David Rosenkilde, CIC Vice Chair of the Board Reisterstown, Md. Robert J. “Buc” Cawley, AAI Immediate Past Chair of the Board Wexford, Pa.

Members Norman F. Basso, CPCU York, Pa. Vincent D. “Chip” Boylan Jr., CPCU Rockville, Md. Henry “Butch” Bradley, Jr. Crofton, Md. Timothy P. Burris Thompsontown, Pa. M. Scott Clemens, CIC, CPCU, CLU, ChFC Souderton, Pa. John T. “Chip” Colwell Jr., CIC Corry, Pa. G. Greg Gunn, CIC Lemoyne, Pa. Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P West Chester, Pa. Diana M. Hornung-Momot, ACSR Wilmington, Del. Linda A. McCann, AAI, CPCU, CPIW Salisbury, Md. Michael F. McGroarty Sr. Pittsburgh, Pa. Scott C. Rogers, CPIA York, Pa. Susan A. Sallada, CIC** Ft. Washington, Pa.

Kathleen Glattly CPCU, CLU, ChFC, AIM

Chair of the Board’s M

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Falling out of summer Doesn’t it seem like summer gets shorter every year? Maybe it is those back-to-school ads that spring up before we even hit the beach. Or the football fans who cannot help but wish July and August away. Or perhaps the season just feels shorter compared to our carefree (read: workfree) childhood.

Like it or not, fall is just around the corner. Which makes now the right time to think about autumn exposures.

IA&B’s coverages guru, Jerry Milton, lent his expertise to this issue of Primary Agent magazine. In addition to his monthly column, he contributed seasonal feature stories on insuring hunting leases and college students. Take a look and give some thought to which of your customers could benefit.

Reviewing their file for gaps is a smart way to round out accounts and reduce your E&O exposure.

Want more Jerry? Log onto iabgroup.com and visit the “Coverages” section of the Web site. Or register for one of Jerry’s state-specific seminars on Workers’ Comp, which begin next month.

In the meantime, get out there and enjoy the remaining summer….

Until next time, Kathleen

William D. Schneider, CPCU, ARM* Pittsburgh, Pa. Robert A. Walbeck, CIC Homer City, Pa. David B. Wasson Sr., CIC State College, Pa. James M. Watkins* Dover, Del. King W. “Kip” White, LUTCF Fallston, Md. John S. Yasik, CIC Newark, Del. * IIABA National Director ** PIA National Director

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E

Member FAQ QUESTION: Where can I find copies of current or new laws enacted in my state?

ANSWER: Let’s distinguish between new laws and current laws.

?

1) New laws Bills introduced before the legislature and later approved by the governor are generally accessible in each state through that state’s bill-tracking Web site. There, the bill’s language, and any amendments to the bill, can be reviewed. Here are our three states’ Web sites: DE: http://legis.delaware.gov/ LIS/LIS145.nsf/home?openform MD: http://www.mlis.state.md.us/ PA: http://www.legis.state.pa.us/ cfdocs/legis/home/session.cfm w Also remember that IA&B gets involved in a number of different issues in the legislature every year and monitors many more. To view IA&B’s position on particular issues that are expected to impact independent agents, go to www.iabgroup.com, select Political Action Center, and choose “Read Capitol Connection” or “Learn and Take Action.” Generally, you can view the bill’s language right from IA&B’s Web site.

2) Current laws Once the bills become effective, they are incorporated into the relevant state statute. Each state may or may not make the entire statute available online free of charge.

DE: http://www.michie.com/delaware/ lpext.dll?f= templates&fn=main-h. htm&cp=decode

MD: http://www.michie.com/ maryland/ lpext.dll?f= templates&fn =mainh.htm&cp= mdcode PA: Pennsylvania does not provide its legal library online. An individual subscription to an online legal research service provider is necessary.

For Delaware and Maryland, your search could start by selecting the chapter, if you know where to find what you are looking for (as an example, insurance is found under Title 18 in Delaware; in Maryland, it is codified under the “Insurance Article”). w Note: These tools are extremely convenient when looking for the exact language in the law. It is,

however, not a substitute for an attorney’s legal opinion or even a regulator’s view.

Regardless of your state, remember that IA&B can help you in any and all research that deals with your activities as an independent agent. If you have to look for it, chances are we’ve had to look for it, too!

DO YOU HAVE A QUESTION? E-mail it to us at iab@iabgroup.com.

Please use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to (717) 795-8347.

We look forward to answering your questions!

State News Primary Agent | July 2010

CGL — Check the endorsement redefining “occurrence” Producers writing contractors already know that Pennsylvania courts have upset the long-standing interpretation of CGL coverage for faulty workmanship.

The Kvaerner Metals case ruled that the subcontractor’s faulty work is not an “occurrence” under the contractor’s CGL policy, disregarding the exception to the exclusion built into the policy. The Gambone case went one step further and concluded that if faulty work was not an occurrence, consequential damage was ipso facto excluded as well … leaving everyone to wonder what a CGL is for.

Luckily, a number of carriers started filing endorsements to restore coverage.

However, based on a review of several endorsements, it appears that many only expressly restore coverage for a subcontractor’s faulty work and its consequential damage. Specific language restoring consequential damage resulting from the insured’s faulty work is not always included.

What this means: Most likely, carriers that have taken the trouble to file an endorsement to correct Kvaerner intend to cover property damage caused by the contractor as well. However, you can’t just rely on an assumption.

Producers must review these endorsements carefully and discuss coverage with their carriers and with their clients.

Carriers: If there’s no endorsement, you have a problem. If there is a “partial” endorsement, talk to the carrier.

If the carrier confirms to you in writing that they will provide coverage, or has issued a memo to that effect, you will be more comfortable about the coverage you’re selling.

Clients: Once you know who covers and who doesn’t, you must discuss this issue with your clients. Some companies are deliberately relying on the court cases and will not provide any coverage.

In these cases, the agent’s E&O exposure is substantial.

Members can learn more by visiting www.iabgroup.com/pa/faulty_work.

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Red Flags Rule enforcement delayed

Sprinkler mandate opens door for insufficient HO coverage Reminder: The new sprinkler-system mandate (effective Jan. 1, 2010 for townhomes and Jan. 1, 2011 for single-family homes) leaves the potential for insufficient coverage on existing homeowners’ policies.

And that opens the door for “ordinance or law” and “increased cost of compliance” coverage.

To learn more, visit IA&B’s online resource at www.iabgroup.com/pa/ ordinance_law, which includes: ◗ an overview of the coverages (including an article by Jerry Milton),

Affected agencies have additional time to get their consumer-protection ducks in a row. The FTC at the eleventh hour postponed enforcement of the Red Flags Rule from June 1 until Dec. 31.

IA&B members can determine if they will be impacted — and learn how to comply — by visiting www.iabgroup.com/pa/red_flags.

Note: Several professional trade groups have filed suit against the FTC arguing that their members should be excluded, and a bill is pending in Congress that would exempt many of these trades.

IA&B will continue to monitor the outcome of these — and the implications for insurance agents.

Company Satisfaction Index survey open through July 31 IA&B’s biennial member survey on carrier relations is open. All member agency staff are encouraged to evaluate at least their top three carriers in the Company Satisfaction Index.

The benefits? Strengthening agentcompany relations and improving communication and workflows. The tool is used by members to gauge their carrier relationships and to benchmark companies before accepting appointments. Carriers use it to learn what they’re doing well and what needs work.

◗ a synopsis of the latest sprinkler-system mandates,

The Company Satisfaction Index survey will be open through July 31.

Results will be released in October.

◗ a look at how it affects existing and new business and

Members can participate by visiting www.iabgroup.com/pa/csi.

◗ a link to a sample ordinance or law letter for insureds.

The Pennsylvania Builders Association is fighting the regulation — legally and possibly legislatively. IA&B will update members on the status of the challenge.

WELCOME

New Members Gary E. Faye & Associates Ligonier, Pa. [7]

Preventing Primary Agent | July 2010

ERRORS AND OMISSIONS

WHAT IS THE RIGHT PROPERTY LIMIT? NOT AN EASY QUESTION TO ANSWER, IS IT? CURTIS M. PEARSALL CPCU, AIAF, CPIA Curtis M. Pearsall contributed this article on behalf of Utica Mutual Insurance Company in Utica, N.Y. Insurance Agents & Brokers Service Group Inc. is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania.

For questions regarding this article or your Errors & Omissions coverage, contact IA&B at (800) 998-9644 or by e-mail at iab@iabgroup.com.

As I travel around the country and talk to agents at conferences and seminars, resolving the “right” property limit appears to be one of the top five issues agents face today. Whether for the building or contents coverage, it seems to be more challenging than one may think. The focus of this article is the commercial property exposure, and the problem is that the limit on the policy is not an area of concern until there is a claim – but by then, it’s too late to do anything about it.

Many approaches There are many approaches to securing a property limit. In no particular order: Using the company approximator tool. This could be one they designed themselves or one of the more common industry tools such as MSB. Using one of these is a good starting point, and proper use should result in a quality output.

However, incorrect inputs will result in questionable outputs.

Ensuring that you have full and correct information is key.

Without this, errors could occur. Whether it’s inputting an inaccurate square footage, picking potentially incorrect construction components or assessing the quality of the construction, this can lead to an output drastically off the correct mark.

Just because you used a company “approximator” does not guarantee the carrier will honor that number. Will they turn their back on you?

It’s happened before!

Using the limit on the current policy. The problem with this approach is that it assumes the correct calculation was done by the prior agent.

Asking the customer what limit they want. While there are some scenarios where this is not advisable, I believe commercial clients are more sophisticated regarding

[8]

rebuilding costs than homeowners’ clients. Thus, this approach has a degree of merit.

Assist them in understanding the terms unique to property coverage like co-insurance, Actual Cash Value, Replacement Cost, Agreed Amount, etc. Are there some agents/CSRs on your team who might struggle with explaining what these terms mean and what the impact could be in the event of a claim? It’s not a bad idea to include examples in your proposal on how these terms work.

Relying on the customer to provide a limit seems like the agent may be shirking their responsibilities. At the time of the claim, if the customer does not receive full compensation, my guess is that they will not be very happy. Whether this results in a claim against you is difficult to say, but losing the customer is probably a given.

Requesting that the customer secures a professional appraisal.

This is probably the best overall approach. These cost money, but there is no doubt that they are worth it.

Pulling the information from various Web sites. I do not suggest this approach as there is no guarantee that these sites reflect current and accurate information.

Using what you think is accurate, with the presumption that the carrier will inspect it and catch your errors. This is not a recommended approach. Every carrier has its own guidelines on what they will inspect, and there are very few carriers that inspect every location. In the event of a claim against your agency due to an error in the property limit, a defense used by most E&O carriers would involve bringing the carrier in and stating that they had either inspected the location or had a chance to inspect it and that they should have advised your agency of a problem. This does have some merit, but a stronger focus on trying to calculate the right number upfront is preferred.

A moving target For business new to your agency, take the time to secure the necessary data to perform the calculation. This should involve a visit to the location by the producer/agency loss-control specialist to help secure the correct information. Take measurements and ask the necessary questions regarding construction. This will enable you to more accurately determine the insurance to value. DO NOT simply pull up the key input information

from the current policy, as this might not be accurate and will probably result in a questionable output due to less-than-quality inputs.

As you can imagine, there have been a significant number of E&O claims dealing with the policy property limits.

For example:

Calculating the right property amount is somewhat of a “moving target.� Secure as much of the correct information as possible.

The time you spend up front may just save you time later if you are hit with an E&O claim.

The client owned a bowling alley that burned to the ground and claimed the agent procured insufficient limits, resulting in a shortfall of $3 million.

The agent stated that the client provided the figures for the building, and further said the client was advised they should consider using an appraisal service. The client said the agent affirmed the coverage amount was the proper coverage.

The agent denied this.

In that particular state, there is no duty to inform a client how much coverage they should have. The client made the argument that the agent assumed a duty (regarding limits) when he told the client the coverage was sufficient. This was a classic word vs. word scenario, with nothing in writing to back up either side. The damages were also in dispute, as the client was claiming replacement cost value, even though the vacant lot was for sale. The claim eventually settled for $1 million.

Lesson to be learned: Be careful how you respond if the customer asks you if their property limit is sufficient.

In the event of an underlying claim where it is resolved that the limits were inadequate, the client will allege they relied on your advice to their detriment.

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Goodville Mutual New Holland, Pa. Partnering with the finest independent agents for over 80 years Contact Fred Macy, CPCU fred.macy@goodville.com 800-448-4622 goodville.com

Coverage Primary Agent | July 2010

CORNER

MULTI-MILLION VERDICTS

JERRY MILTON, CIC Jerry M. Milton teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He is also the education consultant for IA&B, working with CISR, CIC and continuing education programs.

In March 2010 The National Law Journal published a paper titled “Top 100 Verdicts of 2009.” This paper was compiled by VerdictSearch, an organization that relies on submissions from attorneys, court decisions, other legal publications and Internet searches in order to present a comprehensive list of jury verdicts.

The verdicts are ranked on the basis of the gross award.

They do not reflect any reductions for comparative negligence or assignment of fault, or attorney fees and costs (unless awarded by the jury). If the awards were tripled or doubled by state statute, the tripled or doubled amount determined the rank.

The publication included the full details of the top 21 cases in 2009. In addition, they reported that in 2009 premises liability awards increased 16.4 percent to an average of $242,782, motor vehicle awards jumped by 38.8 percent to an average of

$48,480, and wrongful claims averaged $2,185,000.

The number one award for 2009 involved a girl who was killed in a car crash with a drunken driver who ran a stop sign.

On April 12, 2007, Shelby Hagman, a 13-year-old student, was riding in her grandparents’ KIA Sedona van when Christopher Marcone ran a stop sign and hit the van. Shelby suffered a fatal brain injury in the accident.

Marcone, whose blood alcohol level measured .207, pleaded guilty to DUI manslaughter and three other related charges.

Angela Stone, Shelby’s mother, sued Marcone for negligent operation of a motor vehicle. She also sued KIA, the van’s manufacturer, claiming the seat belt Shelby was wearing was defective.

The case against KIA is still pending.

The case of Estate of Hagman v. Marcone was heard in

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Hernando County, Florida.

The jury rendered a verdict of $330,516,483. I promise you, I didn’t make a mistake. Over $330 million is correct! This award is believed to be among the largest DUI wrongful-death awards ever made in the United States.

Number 21 involved a contestant in a radio contest who died from water intoxication. This case was Strange v. Entercom Sacramento, LLC and was heard in Sacramento County, Calif. The jury verdict was a mere $16,577,118.

Pennsylvania had one case in the top 21, Maryland had none, and Delaware had none. The Pennsylvania case was Mendez v. City of Philadelphia and was number six on the list. The case involved a tree collapsing on a vehicle and paralyzing the driver.

On a rainy and windy July 28, 2006, Natalia Mendez was driving her car on Cheltenham Avenue in

Philadelphia, when a curbside tree uprooted and fell on top of her car.

The tree was adjacent to the property of Cornelius Burgess, Jr. who had hired Jesse Williams And Sons Cement Work to replace the property’s sidewalk in August 2005. The sidewalk presented a hazard to pedestrians because it was uneven due to the root structure of the tree. The renovations included cutting the tree roots and re-cementing the sidewalk.

Mendez sued Burgess and Williams, as well as the Fairmount Park Commission and the City of Philadelphia. Burgess settled for his policy limits of $100,000.

Williams failed to appear and default judgments were entered against him and his business.

Burgess said that he had talked to city officials and the park commission about the condition of the tree to no avail. Six days before the accident, Burgess claimed he noticed the tree leaning and an opening crack in the ground between the tree and the new sidewalk.

The jury verdict for Mendez and against the City of Philadelphia was $61,000,000.

You know the age-old question, “How much liability coverage do I need?” I don’t know about you, but as for me, the answer is, “Gosh, I really don’t know.”

Y’all take care!

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COVERAGES

Hunting leases: What are the exposures?

Hunting for a way to round out accounts and reduce E&O exposure? Then set your sights on insureds who hunt or lease land to hunters. On the following pages, Jerry Milton takes his best shot at tracking down the exposures and coverages of hunting season.

Primary Agent | July 2010

I

n my youth I was an avid hunter — deer, quail, turkey, squirrel, rabbit, dove … you name it. By the way, you don’t hunt dove. You go on a dove shoot. You and several other hunters stand around the edge of a field and wait for the dove to fly over and around that field.

Then you try to shoot them without spraying another hunter with buckshot.

One of the most feared cries on a dove shoot is, “Low bird!”

That means a dove is flying over the field and is only three or four feet above the ground. When you hear that cry, you hit the ground because there’s always one sorry rascal who will take a shot at that bird. If you’re in the line of fire, you may find yourself picking buckshot out of your legs, arms or other parts of the body. And the rascal who took that shot will not be invited back!

Back in the ‘60s, ‘70s and ‘80s, I had my hunting buddies.

We would load up early in the morning and head to the woods. If it was quail season, loading up included the dogs.

We had families and friends who owned land. We knew a few farmers who didn’t mind if we hunted on their land.

When we asked them if we could go hunting on their property, their usual response was, “Y’all be careful!”

You may have insureds who own land and allow others to hunt there…. If free, it’s a personal exposure. If they

Arrangements and exposures Not any more. Today, unless you or your family owns land, it’s tough to find a place to hunt. Why? Farmers and other landowners have discovered that hunters are willing to pay for the privilege of hunting on their land. They typically wait for an individual or a group of individuals to step forward and offer them money for the exclusive rights to hunt on their land. In other words, they lease their land to others for hunting purposes only.

You may have insureds who own land and allow others to hunt there. Do they charge or do they allow family and friends to hunt for free? Why is this important? If free, it’s a personal exposure. If they charge, it’s probably a commercial exposure.

Very likely you have one or more insureds who have leased land for hunting purposes. Did they lease the land individually or as part of a group? These groups of individuals usually call themselves “hunting clubs.” If they are a “hunting club,” did they create a paper entity such as a partnership or a limited liability company? Probably not.

Most don’t. They simply operate as a group of individuals who contributed a few hundred dollars each and therefore are permitted to hunt on a specific plot of land. In addition,

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charge, it’s probably a commercial exposure.

COVERAGES

these “clubs” usually allow the members to invite their family and friends.

Will the Homeowners’ policy cover these exposures? If not, is a Commercial General Liability policy needed? Unfortunately, the answers to these two questions depend on the particular circumstances. Is the hunting free or does it cost? Is the “club” a paper entity (partnership, LLC, etc.) or is it just a group of individuals?

These questions have to be resolved before we can determine whether the Homeowners’ policy will apply or if a CGL is needed. _______________________________

Persons who lease land for hunting purposes have liability exposures for any injuries or damages. _______________________________

Land leasers Let’s discuss the exposures of those persons who, individually or as a member of a hunting club, lease land for hunting purposes. They have liability exposures for any injuries or damages to others arising out of their activities or a condition that exists in the leased land.

For example, if they accidentally shoot another hunter or the farmer’s cow, that’s a personal activity and should be covered

by their Homeowners’ policies.

What type of injuries or damage could result from a condition of the premises? Another hunter may fall out of a tree, slip off a log crossing a creek or step in a pothole and break a leg. Could that other hunter file a claim against the individual or group of individuals who lease the land, alleging they failed to properly maintain that land?

Possibly. Will the Homeowners’ policy respond to this type of claim? Maybe.

The Homeowners’ policy defines eight “insured locations.” This definition of an “insured location” includes: 1. Any part of a premises not owned by an insured and where an insured is temporarily residing.

(This definition could apply while the insured is present on the premises if the leased land has a cabin or a mobile home. The key word is “acquired.” Does a lease constitute acquisition?)

2. Vacant land, other than farm land, owned by or rented to an insured. (I wouldn’t want to rely on this definition. First, the land is probably not “vacant.” Secondly, much of the land that is leased could include land that is farmed in the spring and summer.)

3. Any part of premises occasionally rented to an

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insured for other-thanbusiness use. (The key to this definition is “occasionally.” Land leased on a long-term basis or year after year on a shortterm basis probably would not qualify.)

In addition, the Homeowners’ policy excludes liability and medical payments to others arising out of premises owned by an insured or rented to an insured that is not an “insured location.”

Relying on an unendorsed Homeowners’ policy to cover the leased land as an “insured location” is not a good idea.

The safest method is to schedule the leased land as an “Additional Insured Location — Section II.” If the group of individuals leasing the land have formed a partnership, LLC or any other paper entity, they should purchase a CGL. A CGL is also needed if the individual or group of individuals who lease the land do not form a paper entity, but charge others a fee to hunt the land.

Land owners What about those folks who own land and lease that land to others for hunting purposes?

Can they rely on their Homeowners’ policies or, if they’re farmers, on their Farmowners’ policies for liability coverage? Again, maybe, maybe not.

Primary Agent | July 2010

ranching activities or activities that are incidental to farming or ranching activities. Could leasing land for hunting purposes be considered incidental to farming or ranching activities? That’s questionable.

The Homeowners’ policy excludes liability and medical payments to others arising out of premises rented to others that is not an “insured location.”

Is the leased land part of their residence premises or is it used in connection with their residence premises? Is it vacant and not used for farming? If the answer to either of these questions is yes, the land could be considered an “insured location.” But what about the Homeowners’ business exclusion? I think it would apply. Therefore, no coverage.

If the landowner’s Homeowners’ or Farmowners’ policy cannot be endorsed to clearly cover the leasing of land for hunting purposes, we again must recommend a CGL. Some landowners have begun requiring Certificates of Insurance from the group leasing the land. Not a bad idea.

But it’s always dangerous to totally depend on someone else’s insurance for coverage.

The Farmowners’ policy also has a business exclusion.

However, the exclusion does not apply to farming or

We have two parties involved in a hunting lease – the landowner and the individual or group that leases the land. If either party relies on their unendorsed Homeowners’ or Farmowners’ policy to fully cover their liability exposures for this arrangement, they could be in trouble. If the Homeowners’ or Farmowners’ policy cannot be endorsed to cover these exposures, then bite the bullet and purchase a CGL. Better safe than sorry!

Y’all take care! ________________________________

Jerry M. Milton, CIC

Glance at Events J U L Y

C A L E N D A R

Date

Topic

Location

6

CISR-Commercial Casualty

Altoona, Pa.

7

CISR-Commerical Casualty

Mars, Pa.

8

CISR-Commercial Casualty

Monroeville, Pa.

13

CISR-Commercial Casualty

Reading, Pa.

14

CISR-Commercial Casualty

Frederick, Md.

14-17

CIC-Personal Lines

Cranberry Township, Pa.

20

William T. Hold Seminar

Hanover, Md.

Mistakes That Lead to E&O Claims

Wilkes-Barre, Pa.

21

CISR-Commercial Casualty

Mechanicsburg, Pa.

21-24

CIC-Life & Health

King of Prussia, Pa.

22

William T. Hold Seminar

Lancaster, Pa.

27-29

P&C Licensing Study Course

Langhorne, Pa.

28 29

Dynamics of Service

Canonsburg, Pa.

Pennsylvania Compliance Pitfalls

Erie, Pa.

Pennsylvania Compliance Pitfalls

Altoona, Pa.

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Platinum Profile Insurance Agents & Brokers proudly recognizes Mutual Benefit Group as one of its Platinum Partners.

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

FEATURED PARTNER Mutual Benefit Group CHIEF EXECUTIVE OFFICER Steven C. Sliver, President and CEO COMPANY LOCATION Huntingdon, Pennsylvania A.M. BEST RATING “A-” (Excellent) WEB SITE www.mutualbenefitgroup.com

Mutual Benefit Group Claims Staff The snow flew, the wind blew, and the claims grew.

As record-breaking storms pelted towns across Pennsylvania and Maryland in February, MBG’s adjusters found themselves tackling triple the number of claims they would handle during a normal week.

Yet they remained focused on delivering The MBG Experience.

policyholders can count on MBG employees to go the extra mile, whether it’s handling a catastrophic claim; building an online rating system that meets the needs of agents; reassuring an elderly policyholder that her payment has arrived on time; or offering underwriting flexibility on a commercial account.

“As the results of our quarterly claims service surveys began to roll in following the storms, it was gratifying to read the comments and know that our claims staff stood the test under significant pressure,” comments Mutual Benefit CEO Steve Sliver. “A number of our policyholders were impressed, and felt compelled to say ‘thank you’ for The MBG Experience.”

Employees themselves can count on an uncommon level of response from one another as they work together to get the job done. They can also count on uncommon support from MBG management; this past year, Mutual Benefit was named one of The Best Places to Work in Pennsylvania. And the community can count on responsive corporate citizenship year after year as Mutual Benefit reaches out, even in difficult economic times, to support local hospitals, fire companies, and colleges.

At the heart of The MBG Experience is an uncommon commitment to responsiveness. More than 250 independent agents and 95,000

The word “experience” came up numerous times in February’s claim survey comments: “This was an excellent, professional experience”...

“I’m grateful for the trouble-free experience”… “Outstanding experience!”… “My first experience with Mutual Benefit was excellent” …

“We’re glad to be long-time policyholders. We’ve never had a bad experience with Mutual Benefit”…

“The best experience I ever had with an insurance company!” But the comment that perhaps best captures the responsiveness that is The MBG Experience came from a grateful policyholder in Baltimore: “Your adjuster’s compassion alone was a tremendous reassurance that my insurance company works for me.

I have told all of my friends what a wonderful company Mutual Benefit is, and how fortunate I feel.

You were there for me, and I really appreciate that.”

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?

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BRONZE LEVEL

ACUITY Berkley Mid-Atlantic Group Erie Insurance Group Harleysville Insurance Insurance Agents & Brokers Service Group Inc Millers Mutual Group Millville Mutual Insurance Co Mutual Benefit Group Penn National Insurance Selective Swiss Re The Main Street America Group Travelers Utica National Insurance Group

AAA Insurance Agency Insurance Company Allied Insurance Auto-Owners Insurance Company Briar Creek Mutual Insurance Company Builders Insurance Group Capitol Insurance Company Chubb Group of Insurance Companies Companion Property & Casualty Group Countryway Insurance Company Encompass Insurance First General Services Foremost Insurance Group Goodville Mutual Casualty Company Grange Insurance Companies Hanover Fire & Casualty Insurance Company Insurance Alliance of Central PA Inc Insurance Placement Facility of PA Keystone Insurers Group Inc Lebanon Mutual Insurance Company Mercer Insurance Group Merchants Insurance Group Mercury Casualty Penn Millers Insurance Company Penn PRIME Municipal Insurance PMSLIC Insurance Company Reamstown Mutual Insurance Company Rhoads & Sinon LLP Rockwood Casualty Insurance State Auto Mutual Insurance Company TAPCO Underwriters Inc The Brethren Mutual Insurance Company The Mutual Service Office Inc The Philadelphia Insurance Companies Tuscarora Wayne Insurance Company UPAC Insurance Finance

GOLD LEVEL Ohio Casualty Progressive

To become an IA&B Partner,

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choose the sponsorship

Aegis Security Insurance Co American Mining Insurance Co Cumberland Insurance Group Donegal Insurance Group Frederick Mutual Insurance Co Harford Mutual Insurance Co Juniata Mutual Insurance Co MMG Insurance Company Private Client Group PSBA Insurance Trust The Motorists Insurance Group Westfield Insurance Zenith Insurance

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.

Primary Agent July 2010

COVERAGES

Insurance coverage for children in college

A question parents and their college-aged children don’t ask, but we need to ask, is, “Will these college students be covered under their parents’ Homeowners’ and Personal Auto policies while they’re living away from home and attending school?”

The answer may be, “Yes.” However, the answer may be, “No.” And, sometimes the answer could be, “Maybe….”

Primary Agent | July 2010

S

o, why don’t you and I spend a few minutes together and review how the parents’ Homeowners’ and Personal Auto policies cover their children when they’re away at college.

Let me caution you. This discussion is based on the wording of the Insurance Service Office’s (ISO) Homeowners’ and Personal Auto forms. You know better than I do that many insurers have their own company-specific forms, and their policy provisions may not be identical to those found in the ISO forms. As always, consult your insurers’ forms to determine if their terms and conditions are the same, broader or more restrictive than the terms and conditions we’ll discuss today.

The Millers’ 21-year-old son, Buster, and their 18-year-old daughter, Princess, have loaded their cars and are headed to college. Buster is entering his junior year, and Princess will be a freshman. Buster is sharing an apartment with three of his fraternity brothers, and Princess will live in the dormitory.

As long as Buster and Princess

Homeowners’ policy

Homeowners’ policy.

Will their “stuff” – clothes, computers, TVs, music systems, books, etc. – be covered under their parents’ Homeowners’ policy? Will they have liability coverage if they cause injury or damage to another person? The Homeowners’ definition of “insured” includes “a student enrolled in school full-time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of 24 and your relative.”

Therefore, as long as Buster and Princess satisfy three requirements — full-time student, resided at home before attending school, and under the age of 24 — they’re considered an insured under their parents’ Homeowners’ policy.

What if it takes Buster five or six years to complete his undergraduate degree or Princess decides to attend graduate school? If they reach the age of 25 before completing school, they’re no longer insureds. However, there is an ISO endorsement, Additional Insured – Student Living Away From the Residence Premises (HO 05 27), that can be used to extend coverage under the parents’ Homeowners’ policy to the student who is age 25 or older.

Since Buster and Princess are insureds, their “stuff” will be covered for the same perils as the personal property located in their parents’ home. However, it could be limited. The Homeowners’ policy’s limit of liability for “personal property usually located at an ‘insureds’ residence, other than the

[ 19 ]

satisfy three requirements, they’re considered an insured under their parents’

COVERAGES

‘residence premises,’ is 10 percent of the limit of liability for Coverage C, or $1,000, whichever is greater.”

Therefore, if the Millers’ home is insured for $200,000 and they have a personal property limit of $100,000, the “stuff” belonging to Buster and Princess is limited to $10,000.

This may be enough for Buster, but probably not for Princess.

(I’ve raised a son and a daughter!) Again, there is an ISO endorsement to address this problem. The Personal Property at Other Residences endorsement (HO 04 50) allows you to purchase an additional amount above the 10 percent of Coverage C limitation.

_______________________________

One area where the Homeowners’ policy provides broader coverage for a student’s personal property than for their parents’ personal property is if the loss is due to theft. _______________________________

One area where the Homeowners’ policy provides broader coverage for a student’s personal property than for their parents’ personal property is if the loss is due to theft. Under the peril of theft, the Homeowners’ policy excludes loss caused by theft “that occurs

off the ‘residence premises’ of property while at any other residence owned by, rented to, or occupied by an ‘insured,’ except while an ‘insured’ is temporarily living there.”

However, this exclusion then states, “Property of an ‘insured’ who is a student is covered while at the residence the student occupies to attend school as long as the student has been there at any time during the 60 days immediately before the loss.” This exception to the exclusion provides coverage for the personal property of college students when they’re home between semesters.

One last comment on Homeowners’ coverage for college students. If they’re living in an apartment rather than a dormitory or a fraternity or sorority house, and qualify, purchase a Tenant Homeowners policy (HO-4). It’s worth the few extra dollars. I’ve been there, too!

Personal Auto policy Buster and Princess probably have their own cars. After all, it would be un-American to send a child off to college today without their own automobile.

Are there any concerns here?

Could be.

Who owns the cars? If titled in the kids’ names, then they need their own Personal Auto policies. What limits will they buy? Probably minimum. Since they’re “family members,” will they have any coverage under

[ 20 ]

their parents’ Personal Auto policy? No. The Personal Auto policy excludes liability for “the ownership, maintenance or use of any vehicle, other than ‘your covered auto,’ which is owned by any ‘family member.’”

If the Millers have a Personal Umbrella, will Buster and Princess be insureds under that policy? Probably. However, in the event of a serious liability claim against Buster or Princess, there could be a major gap of no coverage since Buster and Princess did not purchase and maintain the underlying auto liability limits required by the Personal Umbrella insurer.

I think this is a problem that frequently exists when the kids own the cars, buy the insurance and expect to have coverage under their parents’ Personal Umbrella policy. Unfortunately, I’ve also been there.

What if the cars driven by Buster and Princess are owned by the parents? No problem as long as they keep those cars listed on the Millers’ Personal Auto policy.

But, what if Mr. and Mrs. Miller are tired of paying those high premiums for the car driven by Buster and they tell him, “When you get settled in school, find a local agent and buy an auto policy in your name.” The Millers then remove that car from their Personal Auto policy.

What liability limits will Buster buy? Minimum. That’s guaranteed! Remember, the parents still own the car. A

Primary Agent | July 2010

_______________________________

In order to transfer the auto risk, you have to transfer the title. _______________________________

If Buster is involved in an accident, if the Millers are the named insureds, they will have those minimum limits. If the Millers are not named on the policy purchased by Buster, they could still be covered as “family members.” However, be careful here. Buster is probably insured with a nonstandard insurer whose terms are not as broad as the ISO Personal Auto policy.

Too often parents of college kids think if they transfer the auto insurance to the kids, they’re getting rid of the exposure. Not true. In order to transfer the auto risk, you have to transfer the title.

Let’s wrap this up…. ◗ Make sure your insureds’ children who are away at college are still considered “insureds” in the Homeowners’ policies you write. ◗ Increase the 10 percent of Coverage C limitation on the student’s personal property, if necessary. ◗ Write a Tenant Homeowners’ policy for the student, if possible. ◗ If the parents still own the car being driven by the student, that car should be

insured under the parents’ Personal Auto policy. ◗ If the parents want to take the student off of their Personal Auto policy to save money and have the student purchase the insurance, they should transfer the car to the student.

Will those college students be covered under their parents’ policies? That’s up to you!

Y’all take care! ________________________________

Jerry M. Milton, CIC

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

Commercial and Personal Lines Competitive Commissions Exceptional Customer Service Financial Strength Experienced Underwriters Marketing Support

ND INS LA I N E R V A

M

1844

GR

ANCE UR

What about coverage under their Personal Auto policy that has a liability limit of $300,000?

No coverage there. The Personal Auto policy excludes liability for “the ownership, maintenance or use of any vehicle, other than ‘your covered auto,’ which is owned by you.” Again, a gap before the Personal Umbrella responds.

Cheat sheet

MBER CU

good agent will probably discover whose name is on the title and list the Millers as named insureds on this minimum limits policy. A sorry agent may issue this policy in Buster’s name.

OUP

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

Celebrating 166 years of service [ 21 ]

◆

1844 - 2010

COVERAGES

Workers’ Comp Learn the who, what, where, why and when

C

an’t get enough of Jerry Milton — author of this month’s feature articles? Then register for IA&B’s upcoming Workers’ Comp seminar … developed and taught by the coverages guru himself.

IA&B teamed up with Milton to produce state-specific Workers’ Comp seminars, which will be held throughout Delaware, Maryland and Pennsylvania over the next two months. (See sidebar for locations and dates.)

The course covers classification and rating, experience-rating plan, and federal compensation and liability laws.

Attendees will learn: ◗ How to pinpoint and correct errors on experience-rating worksheets in order to keep and write more accounts; ◗ How to review common claims involving independent contractors, statutory employer issues and extra-territorial conditions to reduce E&O exposure; and ◗ What state-specific laws govern Workers’ Compensation.

Registration is available by visiting www.iabgroup.com/ education/sp_work_comp.html.

JERRY MILTON, CIC

Seminar locations, dates and times: Erie, Pa.

Aug. 24

Pittsburgh, Pa.

Aug. 25

Hagerstown, Md.

Aug. 31

Mechanicsburg, Pa.

Sept. 1

Dover, Del.

Sept. 2

Allentown, Pa.

Sept. 28

King of Prussia, Pa.

Sept. 29

Hanover, Md.

Sept. 30

Registration:

7:30–8 a.m.

Seminar:

8 a.m.–5 p.m.

Register: www.iabgroup.com/education/ sp_work_comp.html

[ 22 ]

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

Help IA&B support legislators who understand independent agents. Contribute to your state AgentPAC.

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VISIT IABGROUP.COM OR CALL THE IA&B MEMBER SERVICE CENTER TOLL FREE AT (800) 998-9644 OR LOCALLY AT (717) 795-9100, OPTION 0 FOR MORE INFORMATION.

In Delaware & Pennsylvania

Driving members to distinction [ 23 ]

Primary Agent | July 2010

Technology U P DATE

A BALANCED APPROACH TO AGENCY MARKETING STEVE ANDERSON Steve Anderson has been involved with the insurance industry for over 30 years and is an active participant in ACT. He is a frequent speaker before agent and industry groups, consults with insurance agencies and publishes numerous reports, as well as the monthly “The Anderson Agency Report.”

Steve can be reached at steve@steveanderson.com.

Steve prepared this article for ACT. For more information about ACT, contact Jeff Yates, ACT Executive Director at jeff.yates@iiaba.net. This article reflects the views of the author and should not be construed as an official statement by ACT.

Insurance agency marketing and sales are being transformed right before our eyes. Daniel Burrus, a technology forecaster, said in his January 2009 Technotrends newsletter: We are now at the dawn of a profound technologydriven transformation that will make the changes we have experienced over the

past 25 years seems small and slow. We are about to transform how we sell, market, communicate, collaborate, innovate, watch TV, learn and, as you might guess, much more.

The implications of this “technology driven transformation” for insurance agencies are significant. The

[ 24 ]

marketing activities that agencies have relied on for many years to retain existing clients and generate new business are not going to continue working as well as they have in the past.

The new consumer is using the Internet for researching all types of purchases, including insurance policies. New mobile computing platforms, including

iPads, iPhones and other mobile devices, are redefining what it means to “stay in touch.”

Yet, even with all the new “stuff” that people are using in their daily lives, people still want to buy from people. And this is why independent agencies should not be afraid of this transformation.

Agencies can take advantage of this transformation and grow their agencies, if they are willing to think differently about marketing and sales.

Six key elements of a successful strategy The keys to building a profitable book of business are: ◗ A balanced approach to marketing and sales ◗ Fixing an agency’s follow-up failure ◗ Create high-touch activities using high-tech tools

code” of creating a high-margin, profitable book of personal lines and small commercial business.

◗ Creating processes and systems ◗ Commit to the long haul ◗ Constant attention

A balanced approach Most agencies focus their time and resources on obtaining new business.

As we began to work, we realized that a balanced approach is the key to creating a profitable book of business. A balanced approach includes these four pillars of profitability:

Ross Dik owns Knight Dik Insurance located in Worchester, Mass. This independent agency focuses on personal lines and small commercial accounts. They have 12 employees and are located on the ninth floor of a downtown office building (with a security guard), which means they don’t get a lot of walk-in traffic. Dik realized five years ago that in order to continue to grow the agency he needed to create processes that would generate profitable business.

He started working on creating processes then and there.

Keep: This is simply retention. Being able to “keep” the accounts you already have.

Agents have heard for years that it is easier and more profitable to retain an existing client than it is to generate a new one. Yet many agencies don’t have processes in place to actively retain these important clients. The renewal process should start immediately after the first policy is sold. This is very different from the renewal event, which takes place six

Understanding that technology was a key component of creating these processes, we began working together four years ago and combined our skills to “crack the

PROVIDING MARKET OPTIONS TO HELP YOUR BUSINESS GROW That’s how we deliver distinction.

With access to specialized markets, IA&B provides programs that increase your agency’s growth potential.

Whether its personal umbrella, home business insurance or workers’ compensation coverage, you can write and keep more business without production requirements and access fees.

Enroll in IA&B’s Market Options and maximize your growth.

Maximizing your agency’s growth.

That’s how we deliver distinction.

FOR MORE INFORMATION ABOUT IA&B’S MARKET OPTIONS PROGRAMS, VISIT IABGROUP.COM OR CONTACT THE IA&B MEMBER SERVICE CENTER AT (800) 998-9644.

Driving members to distinction

Affiliated with

In Delaware & Pennsylvania

TECHNOLOGY UPDATE

or 12 months later. A renewal process actively builds an ongoing relationship with that new client from the very beginning of the relationship.

Upgrade: Every agency has additional revenue sitting in their existing book of business that is just waiting to be extracted. A simple example of upgrades would be identifying those individuals who have automobile liability limits below the agency’s recommended level.

Dik created a process where individuals with lower limits would receive in the mail prior to their renewal a copy of their auto Dec Page with a big red stamp on it stating: “Your policy has coverage limits less than we suggest.” Every endorsement to raise limits represents additional profit for the agency with very little effort. It also significantly enhances the agency’s E&O protection.

There are many opportunities to upgrade existing business.

Round out: It’s common knowledge that the more policies written per account, the longer that account will stay with you.

By creating a process that identifies opportunities for additional business, this important marketing activity is not left to the whim of a CSR remembering to ask to quote a policy the agency does not yet write.

Get more: Generating new business is important in order to have a healthy agency. Yet, new business is specifically listed last on purpose. While most agencies focus on generating new business, it is actually more profitable to focus on the three other pillars of profitability first — keep, upgrade and round out. Creating a “get more” process helps generate a constant flow of new business into the agency. Once that new business is put on the books, the other processes will help make that new business as profitable as possible.

Benefits There are many benefits to building a balanced approach like the one described above. It creates more revenue for the agency and builds a highermargin book of business. Actively pursuing upgrades and rounding out accounts helps build a much better book profile, which generally translates into better loss ratios for that book that help increase agency contingency payments.

All of this makes for happier insurance companies who are then more willing to invest in and provide additional resources to the agency so that they can continue to grow.

The long haul We said above that one of the keys to profitability is being willing to commit to the long haul. This is not a quick-fix process. It takes time and discipline to implement and make sure it continues running. Those agencies, however, that are willing to commit to the process will see results – over time.

5-by-5 process We believe a reasonable goal is what we call the “5-by-5 process.” When you grow the following five areas by 5 percent over five years, you will then experience balanced growth. The five areas are: Average policy premium: An active upgrade process will help you increase your average policy premium.

Average policies per account: An active round-out process can’t help but increase your average policy per account.

Retention (.5 percent each year): We understand that it is really hard to affect retention, so we cheated here a little bit. If you can grow your retention rate by half a percent per year, you are doing well.

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New clients: An active marketing program will help you generate new business so that you can create 5 percent new clients each year.

Overrides and bonuses: Finally, you should have at least 5 percent of your revenue being generated from overrides and bonuses received from your insurance companies.

An example To illustrate these points, let’s turn to Knight-Dik Insurance again.

The agency began experimenting with generating new business by purchasing Internet leads. They started by purchasing 100 leads per month. They determined that they needed an 8 percent close ratio to break even. Dik was skeptical at first about the quality of these leads: “They are just looking for a cheap price; they won’t convert; they won’t stay.” But even with these reservations, Dik committed to working on creating a system for several months.

The marketing process Dik created was managed by individual CSRs within the agency. When a lead was received, it was immediately entered into the marketing system, and an e-mail was generated automatically to tell the prospect that the agency was working on a quote. When the quote was completed, they sent an email with the quote to the prospect. They then created several follow-up steps to contact that prospect by e-mail and phone. One of those follow-up steps included an e-mail with a video of the producer talking to the prospect.

They continued to track results and refine the initial contact and follow-up process.

After some experimentation, they added an additional step to the follow-up process which ended up doubling the response. They printed out a form letter and mailed it with an agency brochure to the prospect. This simple step increased the number of people who responded to

their follow-up requests. This is an example of how to combine high-tech and high-touch into the process.

We mentioned above that the renewal process should start immediately after the policy is sold. Every new client to the agency is started immediately on a “New Client Welcome” process. The first e-mail (or letter) goes out welcoming the new client to the agency. Eight other touches then are automatically sent to the new client over the next 90 days. That client should feel very welcomed to the agency and will hopefully not bother to shop when the policy comes up for renewal.

Knight-Dik continues to purchase Internet generated leads. Today their close ratio on this business has been as high as 20 percent with an average of 11-15 percent.

They started purchasing personal auto leads but now focus primarily on

homeowner leads. They have found the homeowner leads are generally better quality, and they avoid direct competition with GEICO and Progressive Direct.

Because they have an active round-out process, they work on picking up the automobile later.

Conclusion Generating a profitable, high-margin book of business requires a balanced approach to marketing and sales – built on processes that are sustained over the long haul. Creating a solid foundation for your agency requires that you keep the business you have (retention), upgrade coverages so that you can extract the money sitting in that book (and provide better E&O protection), round out each account with as many policies as you can, and get more business by taking advantage of the transformation that is occurring in agency marketing.

_______________________________

Editor’s note: You can subscribe to Steve Anderson’s free weekly e-mailed newsletter, “TechTips,” by visiting www.steveanderson.com/act.

Tech Tips is a quick read and highlights one new “thing” that will help your organization increase its productivity and effectiveness.

Members can hear more from Steve Anderson at IA&B’s 2010 Executive Management Conference, Oct. 26-27 in Lancaster, Pa. He is acting as an advisor for curriculum development and will speak at the event. Look for conference details in Agent Headlines e-newsletter and at iabgroup.com.

HELPING YOU RETAIN CUSTOMERS WHO NEED PREMIUM FINANCING OPTIONS That’s how we deliver distinction.

Retain your clients and commissions by providing your insureds payment options to manage their insurance premiums.

IA&B’s premium financing program — offered through Premium Finance Brokerage (PFB) — is your solution for helping clients control their cash flow and creating additional revenue* for your agency. Enroll in IA&B’s premium financing program today.

Helping independent agencies keep customers.

That’s how we deliver distinction.

FOR MORE INFORMATION ABOUT IA&B’S PREMIUM FINANCING PROGRAM, VISIT IABGROUP.COM OR CONTACT THE IA&B MEMBER SERVICE CENTER AT (800) 998-9644.

Affiliated with

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*Maryland law strictly prohibits producers from collecting fees from either the premium finance company or the consumer as a result of placing an insurance contract with a premium finance company.

In Delaware & Pennsylvania

Classified ADVERTISEMENTS SOUTHEAST PA PRODUCERS & AGENCIES Professional agency since 1926 located in Feasterville, Bucks County, Pa. Call for confidential information and a review of our services.

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

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

All inquiries kept confidential.

Call Gary at (570) 524-7670.

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

Insuring the wedding season: When love isn’t in the air Runaway brides and grooms, take heart Cold feet and empty pockets need not go hand in hand. Many insurers have adopted riders that cover therapy sessions for couples coping with postponed or cancelled nuptials. And Fireman’s Fund recently added protection for changes of heart to its wedding and private-events policies.

Source: examiner.com

Payouts for break ups

Ad Index ACUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Absolute Risk Placement . . . . . . . . . . . . . . . . .IFC Cumberland Insurance Group . . . . . . . . . . . . .21 Goodville Mutual Cas Co . . . . . . . . . . . . . . . . . .9 IA&B Partners Program . . . . . . . . . . . . . . . . . . .17

A University of Illinois professor has determined that divorce is an insurable risk. Following the 2000 U.S. Census, Professor Westland found enough information to determine someone’s risk of divorce. From there, he sketched actuarial tables and determined companies could offer divorce insurance.

IA&B Series Ads . . . . . . . . . . . . . .23, 25, 27, IBC Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC Millers Mutual Group . . . . . . . . . . . . . . . . . . . .11 Preferred Property Program . . . . . . . . . . . . . . . .5 TAPCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

North Carolina-based Safeguard Guaranty Corporation jumped at the idea and has plans in the works to offer coverage.

Source: insurancejournal.com

Tri-State General Ins Ag . . . . . . . . . . . . . . . . . .23

[ 28 ]

----------------------------------------------------------------———————------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.

IMPROVING YOUR CARRIER RELATIONSHIPS

PARTICIPATE IN THE 2010 COMPANY SATISFACTION INDEX (CSI) TO MAKE IT

That’s how we deliver distinction.

THE BEST COMPANY BENCHMARK AVAILABLE. The 2010 CSI survey provides the foundation for a powerful tool that allows IA&B members to compare carriers and carrier experiences with other agents and to select new carriers. The tool, developed by IA&B exclusively for members, gives you key information about your current and future companies.

Your participation makes this benchmarking tool possible.

Look for participation instructions in IA&B’s Agent Headlines, and watch for the survey results in October 2010.

Insurance Agents & Brokers. Driving members to distinction.

FOR MORE INFORMATION ON THE IA&B COMPANY SATISFACTION INDEX SURVEY, VISIT IABGROUP.COM OR CALL THE IA&B MEMBER SERVICE CENTER AT (800) 998-9644.

Driving members to distinction

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