Delaware Primary Agent - October 2019

OCTOBER 2019 | DELAWARE

LEN GIESELER

ON CARRIER RELATIONS & PHILLY SPORTS

Exclusive Member Magazine

THE CHALLENGE OF IDENTITY APPOINTMENTLINK CONNECTS AGENTS, CARRIERS

TRUST US TO SERVE YOUR CUSTOMERS We’re here to protect what matters most to your customers while they’re at home or on the road. Add in 110 years of building trusted relationships and you can rest assured that we’ll be there for them. Trust in Tomorrow.® Contact us today.

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.

AUTO | HOME | FARM | BUSINESS * Products available in Pennsylvania only

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

IN THIS

10 ON THE COVER: Q&A WITH LEN GIESELER Len Gieseler discusses agency-carrier relationships, community involvement, and Philadelphia sports.

12 THE CHALLENGE OF IDENTITY

Learn how to reduce your agency’s risk of a data breach during insurance transactions with SignOn Once

by ID Federation.

20 APPOINTMENTLINK CONNECTS AGENTS, CARRIERS

Find out how IA&B’s new tool sets the stage for potential appointments between member agencies and company partners.

IN EVERY ISSUE 2 3 4 6 7 8 22 24 26 29 29

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

JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B

THE CHALLENGE OF IDENTITY

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

Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices.

Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2019-10, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. 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

BUILDING CARRIER RELATIONSHIPS

INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

W

hen you think of IA&B, what comes to mind? Perhaps continuing education, legislative advocacy, or E&O insurance?

True, your agents’ association is known for those. But there’s a great deal more that IA&B does on your behalf, oftentimes behind the scenes. Carrier relations is a value-added benefit of your membership.

DID YOU KNOW? IA&B President & CEO Jason Ernest speaks before insurance companies about what makes winning independent agencies – and how carrier Partners can support you with their product offerings.

Last year IA&B and the Pennsylvania Association of Mutual Insurance Companies hosted an inaugural “Meet the Mutuals” event, where members met with a dozen mutual insurance companies to discuss expanding their agencies’ market access.

IA&B revamped its Partners Program over the past two years to enhance the value to sponsoring companies, as well as to benefit member agencies. These Partners are involved for a reason, as part of their growth strategies.

Use of the AppointmentLink tool – by carriers and member agents alike – continues to grow, creating opportunities for appointments where there’s a fit. (See page 20 to learn more.)

IA&B reviews agency agreements at a carrier’s request to ensure the contracts meet carrier and agent expectations. To date, nine agreements have received the IA&B Seal of Approval.

The IA&B website contains a collection of resources to support and improve members’ relationships with their carriers.

Craig S. Mader Crofton, MD

Vice Chair of the Board

Richard M. Rankin, CIC Lancaster, PA

MEMBERS

Sarah M. Brown, CIC, CRM, AFIS Shrewsbury, PA

Emory Stephen Burnett, CIC, ARM Wilmington, DE

Andrew Enders, Esq. Harrisburg, PA

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

LET’S DO OUR PART There are very positive things happening, lines of communication are opening, and relationships are strengthening between IA&B and these carriers. These initiatives are purposed to benefit you, our member, as you seek other markets for your customers.

Later this month, the IA&B Board of Directors will meet with representatives from the Platinum Partner companies (those that make a $7,500 annual investment) to thank them for their support. I encourage you to see which companies support IA&B – through the Partners Program, through sponsorship of events (such as this month’s Futures Conference), or by advertising in this publication – and thank your reps as well.

After all, we’re all in this together, and together we’re stronger.

Michael A. Papa, CIC, MBA Hunt Valley, MD

D. Bradley Rosenkilde Jr. Hunt Valley, MD

Tara S. Silfies, CPCU Bethlehem, PA

Robert L. Smyrl Jr., CIC Hatfield, PA

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

Respectfully,

Craig Mader Chair of the Board

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OFFICERS

Chair of the Board

OCTOBER 2019

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

Have a question? Contact Don to find the answer at 800-998-9644, ext. 603 or DonB@IABforME.com.

QUESTION: Has my state enacted an agritourism limited liability statue?

ANSWER: On many local farms, autumn brings entertainment for visitors and an additional revenue source for farmers.

However, from touching animals and climbing straw bales, to taking hayrides and navigating corn mazes, the experiences are inherently risky. So if a visitor gets hurt while voluntarily engaging in these activities, should the farmer be held liable for that harm?

DOES YOUR STATE HAVE AN AGRITOURISM/AGRITAINMENT LAW? Legislatures in approximately 31 states* have addressed the issue of limited liability for farmers by enacting agritourism/ agritainment “immunity” laws.

However, Pennsylvania, Maryland, and Delaware have yet to pass such a law. (In Pennsylvania, lawmakers have considered – but never enacted – legislation to provide liability safeguards to farmers several times, including in 2019.)

WHAT SAFEGUARDS DO AGRITOURISM “IMMUNITY” LAWS PROVIDE? Applicable statutes often define what constitutes an “agritourism activity,” as well as the “inherent risks” associated with agritourism activities (risks that a reasonable person would/should expect to find while engaging in a particular activity), and will outline statutory requirements the farmer must take in order to limit liability.

Such requirements can include: • Registration of the operators and/or activities • Warning-notice requirements • Entry ticket disclaimer, wherein participants acknowledge they have been warned of and agree to assume associated risks

• Adding handwashing stations at petting zoos • Adding rails to hayrides • Providing adequate adult supervision, no matter the activity • Ensuring adequate on-site communication with employees and volunteers

If the agritourism operator has taken the steps to meet the requirements of such an “immunity” statute, generally speaking, the farmer will not be held liable for injury or damages sustained by an agritourism participant.

• Prohibiting parking in areas where there might be combustible material, such as dry wheat stubble

On the flipside, liability protection will not be afforded to agritourism operators under circumstances where the owner/operator:

• Training and educating employees and volunteers

• Acts with “willful or wanton disregard for the safety of participants” • Purposely causes injury to a participant • Was aware of inherently dangerous conditions, yet failed to repair or make them known to participants WHAT STEPS CAN FARMERS TAKE TO REDUCE RISK OF INJURY? Whether laws are in place or not, agritourism operators should always be on the lookout for ways to reduce risk to visitors, including:

• Adding warning signage to restrict access to “nuisance” areas, such as silos, ponds, manure pits, etc.

• Prohibiting smoking by corn maze and hayride operators * AL, AK, AR, CO, FL, GA, ID, IN, KS, KY, LA, ME, MN, MS, MO, MT, NE, NY, NC, ND, OH, OK, OR, SC, TN, TX, UT, VA, WA, WV, WI

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice.

Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

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COVERAGE CORNER

COMMERCIAL VACANCY, CONVENTIONAL WISDOM, AND THE BOSS

By Kevin C. Amrhein, CIC

K

now these lyrics? (If you don’t, I don’t think you and I can be friends anymore.)

“Now Main Street’s white washed windows and vacant stores Seems like there ain’t nobody wants to come down here no more; They’re closing down the textile mill across the railroad tracks Foreman says these jobs are going boys and they ain’t coming back to your hometown….”

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The Boss (those lyrics are from Bruce Springsteen’s “My Hometown” for anyone who doesn’t know) was doing what he does best – painting a picture of a changing way of life for working-class folks. The song was released in 1984… does his bleak outlook for local business occupancy still ring true?

But those national numbers don’t consider the regional nature of development and commercial climate.

Nor do they consider the growing trends of consolidation, technological investments, evolution of traditional site-based businesses and remote workers, rising rents and construction costs.

It depends. Nationally, commercial vacancy rates have stayed consistent – around 11% for retail and 5% for industrial – after a slow recovery from the bottom (between 2008-2011).

The current state of commercial occupancy – and business in general – is an interesting discussion. But this column is about insurance, so allow me to explain exactly why I’m doing this to you:

OCTOBER 2019

Many of you insure commercial property owners who have unknowingly triggered their commercial property policy’s vacancy condition.

When this happens, most policies significantly limit, or worse eliminate, coverage if there’s a loss or damage.

VACANCY: WHAT YOUR INSUREDS THINK Conventional wisdom (ha!) leads your insureds (and many of you reading this) to believe that the term vacancy simply means empty or unoccupied.

But some commercial property insurance policies broaden the meaning of vacancy to include partially occupied buildings (yes, you read that correctly).

For example, the ISO Building And Personal Property Coverage Form CP 00 10 10 12 (used as the basis for this article) puts building owners at risk of triggering the vacancy condition if less than 31% of the building’s “total square footage is rented to and used by a lessee or sublessee to conduct customary operations and/or used by the building owner to conduct customary operations.”

(It’s important to note that “buildings under construction or renovation are not considered vacant.”)

For example, consider an office building with four suites of equal square footage.

Your insured owns the building and rents out each suite. A tenant, S-Mart, occupies one of the suites. The other three tenants have moved out, leaving S-Mart as the building’s sole occupant. Even though S-Mart is operational, they only occupy 25% of the building – falling short of the 31% requirement and triggering the vacancy definition as applicable to building owners.

OK, IT’S VACANT. NOW WHAT? While the definition of vacancy for building owners is triggered by the square footage component, the condition that creates penalties on loss payments is not applied immediately. Loss or damage

occurring within the first 60 days of vacancy are not penalized.

Regarding occupancy, note that the policy says, “rented to a lessee or sublessee and used by the lessee or sublessee to conduct its customary operations and/ or used by the building owner to conduct customary operations.” This language is designed to reflect the intent of physical occupancy and eliminate the there’snothing-and-no-one-in-there-but-I-havea-signed-lease argument. Further, it’s designed to remind the building owner that occupancy must reflect operations that are customary (a term that’s not defined in the policy).

WHAT IS THE PENALTY FOR VACANCY? Let’s assume that 60 days has passed and the occupancy is still below 31%.

Bad news: A claim check for a Covered Cause of Loss such as fire or windstorm is subject to a 15% reduction of what otherwise would have been paid.

Worse news: If damage to the building results from one of the six causes specifically listed in the vacancy condition – vandalism, sprinkler leakage, building glass breakage, water damage, theft or attempted theft – nothing will be paid.

And as if the news isn’t bad enough already, market conditions may dictate a non-renewal of the policy, leaving the owner with the single option of purchasing a special policy specifically designed for the risk of a vacant building.

Often, such policies are non-standard, more restrictive, and more expensive.

WHAT CAN AGENTS DO? The most important aspect of this discussion is training the insured on the vacancy condition in the policy and understanding its application to and effect on coverage. Always remember that specific terms differ depending on the policy; some policies may include vacancy conditions that are different than those discussed here.

Insureds also may consider endorsing the policy. One possibility is ISO’s Vacancy Changes – CP 04 60 – endorsement which decreases the square footage requirement. For example, the endorsement may be used to lower the 31% threshold down to as low as 10%.

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.

CATCH KEVIN IN THE CLASSROOM Learn more from energetic new IA&B Education Consultant Kevin Amrhein, CIC, when he brings our special topic seminar – EPL and D&O: Insurance Protection for Leadership – to Delaware this fall.

Seminar Topics: • Purpose and value of D&O,

fiduciary liability, and EPL

• Common misconceptions about

these coverages

• Claim and lawsuit example

Oct. 17 | Newark, DE Register today.

800-998-9644, option 1 IABforME.com/SpecialTopics

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PRESIDENT'S MESSAGE

ONWARD & UPWARD: A MESSAGE FROM JASON ERNEST In this issue of Primary Agent, we focus on carrier relations.

That’s why it’s a perfect time for me to talk about a new initiative at IA&B that I’m very excited about – Independent Market Solutions (IMS).

IMS is a company that is jointly owned by independent agent state associations like IA&B. Each of IA&B’s three states is a partner in IMS. At the time of this writing, there are a total of 14 states that are members of the IMS platform, and we anticipate five to eight more will join this fall. Through IMS, these state associations will secure carrier appointments, allowing our members to then place business as sub-producers.

The purpose of IMS is rather simple: • Provide member agents access to markets and product alternatives that may be otherwise unavailable.

• Offer more choices for independent agents, which equates to greater competition for their services.

• Create added marketplace leverage, particularly for smaller agents, through IMSnegotiated contract terms.

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Read that as the potential for better commission rates and/or possible profit sharing.

The nature of this partnership that is attractive to IA&B is that it is state-specific. Meaning, we can tailor our offerings for Pennsylvania, Maryland, and Delaware independently. We can take the feedback from members as to need, and then secure those markets on the IMS platform. To date, IA&B has secured at least six partner carriers – a mix of standard personal and commercial carriers, as well as specialty lines carriers. We anticipate growing the menu of carriers, and coverages, significantly.

By teaming up with IMS, carriers will gain access to over 4,000 sub-producers under the IMS state associations.

These sub-producers are looking to grow, and IMS is looking to help them succeed through a trusted relationship that provides market access with favorable terms. When the sub-producer achieves predetermined premium volume under IMS, they could earn a direct appointment with the carrier.

OCTOBER 2019

Now, some of you may be reading this and saying, “The last thing I need is market access – I’ve got plenty of carriers.” We get that. However, in conducting agency visits over the last two years, we also recognize that the majority of our members are on the smaller side and could gain advantage from the aggregated and leveraged writing of new business. Also, the success of IMS will allow IA&B to invest in other areas that will help all members – talent recruitment, data analytics, and continued advocacy efforts, to name a few.

Stay tuned for additional information in the months ahead. And in the meantime, if you are an agency member that has interest in IMS and want to discuss it further, please reach out to me at JasonE@IABforME. com. If you are a carrier reading this with interest, certainly reach out as well.

Jason Ernest, Esq. IA&B President & CEO

NEWS & NOTES

DOI CLARIFIES MEDIGAP

IA&B REUNION

Agents and brokers selling Medigap policies take note: The Delaware Department of Insurance (DOI) recently issued a clarification on the requirements of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) with regards to how MACRA will change the availability of certain Medicare Supplement insurance plans, more commonly known as Medigap. The communication stems from inquiries to the DOI from Medicare eligible citizens.

Commissioner Navarro in his release specifically mentions agents and brokers, noting that: As this act is rather complex, it has not been determined if consumers have been misinformed, or if they did not fully understand what was relayed to them by agents and brokers.

The lack of complete understanding can have a damaging effect relative to decision making for Medicare beneficiaries or their caretakers.

In April 2015, U.S. Congress passed MACRA. Section 401 of MACRA prohibits the sale of Medigap policies that cover Part B deductibles to “newly eligible” Medicare beneficiaries.

“Newly eligible” is defined as those individuals who: (a) have attained age 65 on or after Jan. 1, 2020; or (b) first become eligible for Medicare due to age, disability or end-stage renal disease, on or after Jan. 1, 2020.

This most recent clarification from the DOI follows a bulletin released this spring, which also was intended to explain the upcoming MACRA changes.

Sending a huge thank-you to the past leaders who joined the current IA&B Board of Directors to participate in a focus group discussion at IA&B in August. From left to right: Tony Bennett, of Famous & Spang Associates in Aberdeen, MD; John Yasik, of Poland & Sullivan in Newark, DE; Norm Basso, of E.K. McConkey Insurance & Benefits in York, PA; April Ressler, of Teeter Insurance Agency in Altoona, PA; David Rosenkilde, of R&A Insurance in Hunt Valley, MD; Chip Boylan, of Potomac, MD; and Mike McGroarty Sr., of McGroarty & Bradburn Insurance in Pittsburgh, PA

GET WELL, JERRY!

IA&B EDUCATION SCHOLARSHIPS Want to become licensed, earn a designation, or gain CE, but funds are tight? Apply for IA&B education scholarships.

During 2019, IA&B provided $13,079 in education scholarships.

IA&B awards individual scholarships for those seeking a producer license, CIC designation, or CISR designation, as well as agency scholarships for CIC institutes, CISR seminars, and webinars.

New! IA&B will increase the funds available for licensingexam preparation scholarships, including the self-study program in Delaware.

In August, our James K. Ruble students in Hershey sent a creative message to instructor Jerry Milton, CIC, who missed the seminar as he recovered from hip surgery. Jerry broke his hip in late July and, at the time of this writing, was recovering from a successful surgery – and remaining in good spirits!

Apply by Friday, Dec. 13. IA&B will announce the next round of recipients on Friday, Jan. 10, 2020. (Applications are accepted anytime for licensing scholarships.)

IABforME.com/scholarships

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OUR FEATURED PLATINUM PARTNER Insurance Agents & Brokers proudly recognizes Erie Insurance as one of its Platinum Partners.

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

It’s the rare individual who is motivated by a genuine desire to help others. And it’s the rare company that puts that principle into practice.

At Erie Insurance, we’ve been helping people make things right since 1925, working side-by-side with the best independent agents in the business.

Our agents and employees are energized by a clear sense of purpose, performing to the best of their ability, because they know the work they do benefits millions of customers’ families and businesses. It’s part of being Above all in SERVICE® and it’s why we’re so committed to the independent ERIE agents who live and work in the communities they serve.

On the strength of these relationships, Erie Insurance has risen to become one of the nation’s most respected property/casualty and life insurers.

CHIEF EXECUTIVE OFFICER Timothy G. NeCastro, President and CEO CORPORATE HEADQUARTERS Erie, PA A.M. BEST COMPANY A+ Superior WEBSITE erieinsurance.com

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Insurance Agents and Brokers proudly recognizes Erie Insurance as one of its Platinum Partners.

IA&B Platinum Partners dedicate the highest level of sponsorship to our organization. Today, we’re a FORTUNE 500® company operating in 12 states and the District of Columbia. ERIE has more than 5.8 million policies in force. We’re the 16th largest property/casualty insurer in the United States, based on total lines net premiums written, and the 9th largest home insurer and 12th largest auto insurer based on direct premiums written.

Erie Insurance Group is a Barron’s 500 company and has been recognized by Confirmit with an Achievement in Customer Excellence Award in the Voice of the Customer category for claims service.

IABforME.com/Partners2019

Erie Insurance’s founding principle is: “To provide our policyholders with as near perfect protection, as near perfect service as is humanly possible, and to do so at the lowest possible cost.” That same principle guides us today.

We still adhere to disciplined underwriting, fair pricing and a prudent investment philosophy.

We still practice the Golden Rule–treating others as we want to be treated.

We still thrive on the ERIE family spirit, employees and agents working together as a team for the good of our customers and the communities we serve.

At our core, we still believe the truth in our founder H.O. Hirt’s words:

Success in business is not a matter of tricks or gimmicks… it is just a matter of simple common sense, mixed with just plain decency.

THANK YOU Thanks to these partners for supporting the independent agent network.

PLATINUM PARTNERS ACUITY Agency Network Exchange LLC Donegal Insurance Group Erie Insurance Group Farmers Mutual Fire Insurance Company of Marble Insurance Agents & Brokers Service Group Millers Mutual Group Penn National Insurance Plymouth Rock Assurance The Main Street America Group

— H.O. Hirt BECOME A 2019 PARTNER TODAY 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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Q&A WITH

LEN GIESELER

L

en Gieseler, LUTCF, is president of Evans, Hauseman & Richard, Inc., a full service independent agency located in Pottstown, PA. He also serves on the IA&B of Pennsylvania Board of Directors.

Q. First and foremost, thank you for your service in the U.S. Navy! Tell us about your time in the military – what did you do, and where did you go?

A. I joined the Navy in 1985. After various schools, I was attached to HM-12 as a crew chief and flight crew instructor, training crewman on the HM53 minesweeping helicopter. I would fly every day teaching students about the aircraft and the various mine-sweeping equipment and techniques in deploying and recovery of the gear. My duties took me to a number of locations in the United States, as well as landing on ships at sea, but I was never deployed overseas. I left the navy in 2000 and was in the reserves for four additional years.

Q. Your background gives you a unique perspective on the agencycarrier relationship. How has it evolved in recent years? And how can it be strengthened?

Q. You started your insurance career on the carrier side. What prompted your move to the agency?

Technology has also impacted the interaction that used to be a staple of the agency-carrier relationship. Let face it: We work in a relationship-building business, and that includes building relationships with carriers, normally through their representatives.

A. I worked for Liberty Mutual for 11 years as a personal lines producer and was well on my way to having a great

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career. However, changes within the company along with an opportunity to join a local agency just miles from my home motivated me to make the switch.

Going from a captive company to an agency with many companies to represent – not to mention learning all about the commercial market – was challenging, but it all worked out. I have been with our agency since 2001, and it was the best move I have ever made.

A. Technology and the speed of doing business have changed the agency-carrier relationship over the years. Carriers continually work on new platforms to write insurance, and they tend to shift work to agencies. This pulls the agent in many different directions instead of just focusing on producing new business.

OCTOBER 2019

Having more interaction with company representatives of all levels will help strengthen the agency-carrier relationship.

I have observed over the years that the companies that take a real interest in meeting and working with our agency tend to get the first shot at the business.

Q. You’ve joined IA&B at the Big “I” Legislative Conference for the past five years. What drives your interest in advocacy? And what’s your favorite part of that event?

A. I really got involved with IA&B by attending an Executive Management Conference in Gettysburg several years ago. I met a lot of great people and learned what IA&B was all about on a state and regional level.

Attending the Legislative Conference in Washington, D.C. every year really gives you a different perspective on what the insurance industry is doing throughout the country. My favorite part is meeting people from all over the country and discussing many of the same issues that we all face every day.

The other great part is getting in front of various legislators that we send to Congress. We get to tell it like it is out in the real world with hopes that they will get

things passed that help insurance agents across the country. I would encourage all agents to attend at least one conference.

It is a truly rewarding experience.

Q. You’ve been involved in the Pottstown Rotary Club and other community organizations for many years. How are these groups adapting to recruit younger members and stay relevant?

A. I am passionate about giving back to the community where you live, and Pottstown Rotary Club does a great job for the community. Our strategy for staying vibrant and strong is to promote what we do using social media and to continually get the word out.

To help grow our club, we sponsor a couple of business-to-business mixers

each year where we normally get 40-50 guests to come out and mingle and network. From those meetings we normally attract four to five members to join the club. Rotary International has adopted new guidelines over the years which have made it easier to attract new and younger members. We get our new members involved immediately and make them feel welcome and needed. This helps with retention and with getting new referrals from those members.

Q. You’re a pretty big sports fan. Tell us, who are your teams? And what’s the best game you’ve ever attended in person?

watching and rooting for each team, but I would say my passion is for the Eagles.

I have been to many great Eagles games over the years, including a few playoff games. Still nothing compares to seeing the Phillies play game 2 of the World Series at Citizen’s Bank Park. What a great atmosphere to be a part of. I have attended both Phillies and Eagles Parades as well, which is something you have to attend to really appreciate.

A. I grew up in southeastern Pennsylvania, so I am full-blown Philadelphia sports fan. I enjoy

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Contact David today.

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

Contact Bill Hunt at WAHVE today!

Bill.Hunt@wahve.com • 646-807-4372 ext. 3757 *Mention your IA&B membership for a discount on set-up fees.

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THE CHALLENGE OF IDENTITY Securing Your Insurance Transactions

By Kevin Baker

Learn how to reduce your agency’s risk of a data breach during insurance transactions with SignOn Once by ID Federation – a seamless, invisible framework that’s free to agencies and steadily growing with insurance carriers.

O

ver the last 20 years I’ve noted the recurrent outcry: “We need to get rid of passwords!” or “Passwords are dead!”

If such is the case, we are experiencing a zombie apocalypse of undead passwords because as far as I can tell they haven’t gone anywhere. In fact, they are multiplying in line with the exponential increase of things to which we want access.

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As an agent, you are falling under increasing regulatory scrutiny, and you’re at increasing risk of a breach….

Your simplest and safest method for connecting to partners is SignOn Once.

— Kevin Baker

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BAD PASSWORD HABITS Between work and home, we accumulate more passwords than we can keep track of and develop bad habits trying to manage them.

One crowd goes the “simplicity is best” route and uses America’s most popular password, which is, of course … password.

Qwerty and 123456 are in the top five every year, as well.

At this point, there is at least one person reading this who has a red face and refuses direct eye contact.

Using too-simple passwords is like driving without a seat belt.

Great if nothing goes wrong. And using the same password across multiple systems is like wearing no seatbelt and texting

OCTOBER 2019

while driving. In this scenario, it would be better if you lived in Wyoming, rather than Boston. But we in the insurance world live in the metaphorical equivalent of Boston.

Those at the other end of the password management spectrum believe that strong passwords or pass phrases are the key.

They insist that a password should be long and complex and impossible to remember. Unfortunately, this means writing it down — hopefully not pasted on the monitor. Strong passwords are a solid digital survival technique, but too much complexity in password creation or in process can reduce their security value by inviting workarounds.

SHARED IDS & PASSWORDS? Some insurance firms share passwords and create group IDs to make things easier, but the practice compounds negative outcomes. If a breach occurs, it’s impossible to attribute actions to a single individual, and consequently no individual involved can be proven innocent. These bad habits significantly reduce the value of security monitoring in an enterprise, right when you need clarity the most.

When you share your password, you are breaking trust with those who gave it to you. On a business system that might have legal implications. Certainly, from an agency contract perspective, it’s a bad position to be in when discovered, especially in a security breach scenario.

Chances are that no matter what practices you follow, multiple websites you use regularly have already been compromised, and your usernames and passwords are already for sale on the dark web. My personal information has been lost in numerous breaches, and I must react to that, not simply throw up my hands.

CYBER COVERAGE The risk of a data breach during insurance transactions is real. And the consequences can be steep – damage to your agency’s finances and reputation.

Most E&O policies do not cover data breaches, and most cyber endorsements do not adequately address the exposures of an insurance agent. A solid privacy and data breach policy is increasingly critical.

IA&B can help independent agencies navigate legal compliance requirements and build prevention strategies. And now, we can add another layer of protection with our new cyber insurance offering.

To learn more, contact David Wertz.

David Wertz, CPIA Insurance Placement Specialist 800-998-9644, ext. 506 DavidW@IABforME.com

SIGNON ONCE SIMPLIFIES THE VERIFIED IDENTITY Passwords are just a single component in establishing a verified identity for insurance transactions. Unfortunately, in most cases, some form of password will be necessary to gain the access we want.

The goal is to reduce the frequency and the complexity of what we need to do to establish our identity while increasing our security. For the independent agency channel, SignOn Once

by ID Federation is the solution.

continued on page 16

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continued from page 15

PASSWORD-SECURITY PROCESSES Let’s look at a few concepts that provide a toolset for improving the situation we’re stuck with regarding passwords. These concepts can make establishing someone’s identity both easier and more secure.

• Single Sign On (SSO) • Multi-factor Authentication (MFA) • Federated Identity Management (FIM) Our goal is to overcome the inherent weakness of passwords as the only method for authenticating to websites and applications.

SINGLE SIGN ON (SSO) SSO is an authentication process that allows a person to use just one set of credentials — that is, a name and

a password — in many places within one system. SSO greatly reduces password fatigue.

Note: SSO is not the same as simply using one password everywhere. Doing that is a very bad idea, and the bad actors of the world know that up to 60% of users do it anyway. Hackers employ software that takes your username-andpassword combination from a breached site and then uses it to attempt login on hundreds, even thousands of websites and services.

MULTI-FACTOR AUTHENTICATION (MFA) A good SSO strategy will allow you to use one set of credentials but without additional risk. How? By employing additional methods to establish more completely that the person attempting to log in is really you and not an imposter.

Those methods of multi-factor authentication can include: • A one-time code sent to your phone or email • A digital certificate stored securely on your PC • Challenge questions (such as the street you grew up on or where you were married) The bad actor may have your username and password, but doesn’t have your phone or your PC. And if you’ve been discreet with your personal information, you can hope the hacker doesn’t know the answers to your challenge questions.

Google, Facebook, probably your bank, and many other sites make multi-factor authentication available to you today.

You should use it. continued on page 18

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OCTOBER 2019

Acuity loves you!

We are proud of the relationships we have built with the best independent agents in the world!

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continued from page 16

FEDERATED IDENTITY MANAGEMENT (FIM) Federated Identity Management applies an additional level of security to multiple sites or business platforms.

FIM differs from SSO, and they’re often used together. While federated identity management can make use of SSO, single sign on does not include FIM. FIM provides a way to connect many identity management systems. It is a pre-configured trust agreement between entities that your securely established authentication (using some form of MFA) can be accepted without going through the authentication process.

The ID Federation Trust Framework is an FIM providing SSO via SignOn Once.

18

FIM speeds access to a broad array of resources, but it requires all participating companies to comply with a neutral standard or framework set managed by a third party. Essentially, Business A “proves” it is really you by requiring an additional step in authentication (MFA). Then, when you navigate to Business B, a token is passed from Business A that states you are a securely authenticated user. Business B trusts that token and allows access based on the previously arranged trust relationship with Business A. This trust arrangement between organizations requires both technical and non-technical agreement that holds each organization accountable to standard protocols and behaviors. This upfront effort may require participation from business leaders, information technology staff, and security personnel.

OCTOBER 2019

THE BENEFITS OF FIM But the return on this investment is faster and smoother business processes, fewer help desk calls, and enhanced security.

Think of how you use your agency management system to connect to multiple carriers and how you jump across multiple identity domains repeatedly. This dynamic relationship between agents, carriers, aggregators, and other business assistance platforms would be significantly easier if you could use the same credentials across all of them in a secure fashion.

The internal setup work required to make this possible must be done by the AMS vendor and carrier, but the concepts discussed here are what ID Federation’s SignOn Once is all about.

ID Federation is that managing third party for the independent agency channel. And ID Federation offers you the convenience of SSO.

WHY YOUR AGENCY NEEDS SIGNON ONCE BY ID FEDERATION As an agent, you are falling under increasing regulatory scrutiny and you’re at increasing risk of a breach. You need the best security you can obtain from every platform you use. You can employ an enterprise password management program for your agency’s non-insurance business — such as banking transactions or payments to creditors.

But for insurance transactions, your simplest and safest method for connecting to partners is SignOn Once

by ID Federation. It employs a universal Trust Framework that is seamless, invisible, and free to agencies. It allows your agency users to conduct insurance transactions with every participating partner with only the ID and password you use to log into your management system, saving you both time and money.

For a list of carriers who are now or soon will be participating in ID Federation, visit the organization’s membership page (IDFederation.org/member-roster).

Kevin Baker is information security leader of Westfield Insurance, in Westfield Center, OH. Reprinted with permission of ID Federation.

Learn more at idfederation.org.

With PIN, you have the power to give your clients more!

While you wait for all insurance carriers that serve the independent agency channel to participate in ID Federation, take these steps: • Consider conducting business with the ID Federation-member carriers that have shown their commitment to streamlined credential management for you, their customer.

• If your primary carriers are not participating, use the template on the ID Federation website under the Agent section to send your carriers a message encouraging them to join.

(IDFederation.org/request-carrier) • If your management system platform includes password management for non-participating carriers, take advantage of it.

Our focus begins and ends with your agency. Backed with the power of our team you have access to many of the nation’s highly sought-after commercial lines insurance companies – giving you a fuller array of coverage, better pricing, and the expertise you need to stay one step ahead of the competition.

Ask how you can become a PIN Member.

320 Granite Run Drive Lancaster, PA 17604-3320

Producernet.com 717-581-9284

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OCTOBER 2019

MATCHMAKING IN THE INSURANCE INDUSTRY I

How AppointmentLink Connects Agents, Carriers

n recent years, it wasn’t uncommon for member agencies to contact IA&B to discuss attracting new markets. Nor was it uncommon for carriers – particularly those entering a new region or launching a new product – to contact IA&B in hopes of securing leads for agency appointments. So it was a natural progression for IA&B to develop a more strategic role in the agent-carrier matchmaking process.

To facilitate the process, IA&B launched AppointmentLink – a proprietary tool that sets the stage for potential appointments between IA&B member agencies and company partners.

“In today’s business world, it’s who you know,” said Jason Ernest, Esq., president/CEO of IA&B, “which is why we work to build relationships with tools like AppointmentLink.”

AppointmentLink works by gathering basic member agency demographics – such as mix of business, premium volume, and agency’s general location/marketing area – and then comparing them against the criteria of carriers that are seeking appointments. Any IA&B member agency can participate, as well as companies in the top two tiers (platinum and gold) of the IA&B Partners Program.

THE MAKING OF A MATCH “I completed my agency profile, including geographical preferences, insurance lines and industries of focus, production goals, etc. Then AppointmentLink matched my profile with the profiles of companies that were seeking new relationships with agencies just like mine.

As a start-up, I had two regional company matches. AppointmentLink provided an added ‘warm welcome’ to that initial contact, and as a result, I earned an appointment with one of the companies.”

– Ryan Markoff, Business Auto Home Insurance, Bel Air, MD

continued on page 22

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continued from page 21

After completing their online profile, agencies receive a list of companies that meet their criteria, as well as contact information for each one to begin discussion about an appointment.

Agents do not spin their wheels making contact with carriers that will never appoint them. While the profile is basic and non-invasive, it weeds out obvious mismatches, saving time, money, and frustration on both sides.

“We joke that this is the Match.com for the independent agency system, but there really is some truth to it,” said Ernest. “AppointmentLink is about making connections, and it’s a really worthwhile tool for agencies to explore their options.”

INSURING OPPORTUNITY THROUGH MUTUAL SUCCESS. ™ Harford Mutual Insurance partners with independent agents in Delaware.

We insure restaurants, contractors, mercantile, and other commercial entities.

We’re committed to protecting your client’s business and building yours.

In today’s business world, it’s who you know, which is why we work to build relationships with tools like AppointmentLink.

— Jason Ernest, IA&B President & CEO

HarfordMutual.com 800.638.3669

22

OCTOBER 2019

ACCESS APPOINTMENTLINK It begins with your profile. By completing an online form, you’ll create an agency profile in our AppointmentLink database.

From there, your information could match that of an IA&B Partner company.

Please note that AppointmentLink access is restricted to those listed as IA&B member agencies’ main contacts in our database (primary and alternate). While AppointmentLink does not guarantee an appointment, it does help you find the right contact and prepare for the conversation.

Log into our website to begin, or contact Claire Pantaloni with questions.

IABforME.com/AppointmentLink.

Claire Pantaloni, CIC, CISR Vice President – Advocacy 800-998-9644, ext. 604 ClaireP@IABforME.com

WELCOME NEW MEMBERS & PARTNER A TO Z INSURANCE LLC Dover, DE BEACON INSURANCE SERVICES LLC King of Prussia, PA CALN INSURANCE AGENCY Sadsburyville, PA GMI INSURANCE Valley Forge, PA SAUCON VALLEY INSURANCE SERVICES Hellertown, PA Learn more about membership.

IABforME.com/membership

23

PICS & POSTS

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

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OCTOBER 2019

25

TECHNOLOGY UPDATE

3 DATA SECURITY TIPS Reduce Your Clients’ Risk of a Breach

By Jason Gobbel

26

OCTOBER 2019

T

he cyber liability market is booming! Coverages are robust, premiums are low, and opportunity is everywhere. Unfortunately, so are the risks. According to a recent IBM report, a business is 31% more likely to experience a data breach today than five years ago.

everyone is taking advantage of the learning opportunities. And lastly, the employees should be tested by delivering convincing, yet harmless, emails to their mailbox to see if they can use this new education to avoid the traps.

To combat emerging threats, it is critical for every business to undergo a thorough risk assessment that identifies unique and specific threats. This assessment should produce documented policies, procedures, and action items for improvements that are specific to the business and its risks.

At a very high level, multi-factor authentication, or MFA, is a process for using more than just a password to provide access. This additional logon challenge can be a one-time code sent as a text message, a multi-digit code that changes every minute, or even a physical device that must be plugged in. While the process may vary, most modern services support some implementation of MFA to enhance security at no additional charge.

The good news is that we don’t need to wait for the results of a risk assessment to begin making improvements. Here are three low-cost improvements that you can confidently recommend to any client or prospect to lessen the risk of a cyber security incident.

SECURITY AWARENESS TRAINING Seventy-one percent of all targeted attacks come through email, which makes your employees your greatest risk … and your first line of defense.

Employees need to know how to spot threats, and what to do if they’re unsure of the authenticity of a message.

A good security awareness program is one that educates, tracks, and tests your employees.

Education is typically delivered in the form of short, high-quality videos that focus on specific topics or hacker strategies. Employee participation should be tracked to ensure that

MULTI-FACTOR AUTHENTICATION

MFA is a critical defense against attempts to trick employees into giving up their logon credentials, and it is particularly important on internet-facing systems, such as Office 365, G Suite, Dropbox, or a web-based customer management system.

AGENCY PROTECTION Heed your own advice to clients. Prioritize your agency’s data security, and secure proper coverage to protect your assets and reputation.

Did you know that most agency E&O policies do not cover data breaches?

And that most cyber endorsements do not adequately address an insurance agent’s exposures?

A solid privacy and data breach policy is increasingly critical.

Learn about IA&B’s new cyber insurance offering by visiting IABforME.com/cyber or contacting IA&B Insurance Placement David Wertz.

DARK WEB SCANNING The Dark Web is the section of the internet that isn’t accessible using conventional means. This area of the Internet is home to sites and services used by nefarious groups to buy, sell, and trade illicit information. When logon credentials are stolen, you can often find them here, available for purchase.

David Wertz, CPIA Insurance Placement Specialist 800-998-9644, ext. 506 DavidW@IABforME.com

continued on page 28

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TECHNOLOGY UPDATE

continued from page 27

While there’s no way to remove information from the Dark Web, knowing that compromised logons are out there gives you the opportunity to change them before they can be used against you.

Much like credit monitoring, there are companies that scour the Dark Web in search of compromised data.

These companies will then alert their clients to threats, so that credentials can be changed, and systems secured.

With data breaches at an all-time high, it’s going to take a village. It’s important for all of us in the business of risk management to encourage good security practices, whenever and wherever we can. By sharing the above advice with any business willing to listen, you’ll be well on your way to earning that “trusted advisor” status.

It’s important for all of us in the business of risk management to encourage good security practices.

— Jason Gobbel As the Chief Solutions Officer at Kite Technology Group, Jason Gobbel uses his unique blend of insurance and technology expertise to consult with independent agencies on topics of cloud adoption, security posture, and strategic IT planning. For over 26 years, Kite Technology has been passionately helping agencies leverage technology to drive productivity, bolster security, and maximize business performance and results. To learn more visit www.kitetechgroup.com.

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OCTOBER 2019

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800-998-9644, option 1 | IABforME.com/education CLASSROOM DATE TOPIC LOCATION 4-5 5 5 5-7 6 6 6 7 7 7 12-14 12 13 13 13 14 14 18-20 19 20 20 21

James K. Ruble Graduate Seminar CPIA – Position for Success* CPIA – Position for Success* Property & Casualty Licensing Study Course CPIA – Implement for Success* CPIA – Implement for Success* CISR Commercial Casualty II CISR Personal Residential CPIA – Sustain Success* CPIA – Sustain Success* Life & Health Licensing Study Course CISR Commercial Casualty I W.T. Hold: Sneaky Commercial Coverage Concerns E&O Risk Mgmt: Meeting the Challenge of Change W.T. Hold: Personal Auto & Recreation Concerns CISR Personal Lines Miscellaneous Emerging Risks: Insuring Cannabis, Drones & More CIC Personal Lines Institute CISR Commercial Property CISR Commercial Property W.T. Hold: Sneaky Commercial Coverage Concerns W.T. Hold: Personal Auto & Recreation Concerns

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1-4 PM 1-4 PM 9 AM-4 PM 9 AM-NOON 1-4 PM 1-4 PM 9 AM-NOON 1-4 PM

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Contributing editors: Jennifer Ross, Megan Fioretta, Melissa Telesha

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