Resources Magazine Spring 2019

WINTER 2018

We built the pedestal.

You supply the hero.

Each year, a group of exceptional insurance professionals are chosen by The National Alliance for Insurance Education & Research to represent their states and compete to become the National Outstanding CSR of the Year.ÂŽ This prestigious award, regarded as the foremost national award of its kind, recognizes the contributions and commitment of those who serve clients within the insurance industry.

Nominate

Today!

The National winner, finalists, and nominators receive cash prizes!

Open to all insurance and risk management customer service representatives, account managers, and professionals primarily responsible for customer service. Submissions must be completed by May 1, 2019.

Visit TheNationalAlliance.com/OCSR

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Ashley M. Fitzsimmons, CISR Ohio Insurance Agents Association, Inc. 2018 National Outstanding CSR of the Year

Contents

TheNationalAlliance.com

FEATURES

NEWS

4 People of the Future

20 Your Career, Your Choice

National Alliance President and Founder contemplates the past and the future Scan this QR code to hear Dr. Hold talk about the origins, history, and future of the company.

A visual guide to your many update options

29 Learning Horizons

Newly revised courses piloted; new update option for CICs, CRMs, and CPRMs

14 A Passion for Puzzles

33 Update at a James K. Ruble MEGA Seminar

22 Ask Bettie

36 In the Spotlight

Interview with self-proclaimed insurance geek Chris Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, AINS

Hear The National Alliance story from 40-year team member, Bettie Duff

30 It’s Never Too Late, or Too Early, to Celebrate Your Legacy

A history of excellence told through the lives and careers of dedicated CICs

34 Fifty Years of Continuing

Innovation

“Dr. Deb” describes the innovative changes to programming and curricula

COLUMNS 10 Big Coverage for Tiny Homes

Richard F. Walsh, Jr., CIC, CPCU, ITP, CRIS, AIS, CLCS, SCLA, ANFI Popular new housing trend presents a myriad of insurance challenges

18 Creating a Culture of High Performance

Create your own seminar experience— in the classroom or online

Industry accolades and achievements

2019 Insurance Sales Challenge at FSU On March 7, Florida State University’s College of Business, Dr. William T. Hold/The National Alliance Program in Risk Management & Insurance conducted their annual Insurance Sales Challenge. RMI and Sales students are matched with seasoned mentors to prepare for the challenge. In the weeks leading up to the competition, the mentors and students interact, reviewing a detailed hypothetical, but real-world, scenario about a large commercial account that they must land. Students dig into the information to identify primary business needs, flag areas of risk concern, do industry-specific research, and plan a sales approach.

The mentor questions the students and provides feedback and guidance. On the day of the actual challenge—a test of students’ insurance skills and sales knowledge­—there are two rounds of competition that are evaluated by a panel of judges. Five RMI students and five sales students who perform well in the firstround role play are paired, and move on to the second round. The top teams are then identified by judges.

Carletta Clyatt Behavioral assessment tools prove helpful in both hiring and motivating employees

26 Artificial Insurance Intelligence Has Landed

Alex Lekhraj Considering the impact and benefits of AI on our industry

alliance@scic.com • 800-633-2165

Dr. Hold and Dean Mike Hartline flank first and second place winners: Olivia Sinclair, Dexter Bell, Alex Micciche, and Brendan Deegan.

LEADERSHIP

A

s I look back upon the 50 years that have passed since the founding of the CIC Program, I am tremendously proud that this milestone has been reached. However, as I reflect on the significance of this event, I am struck by this consideration: anything that survives for 50 years can meet this measure if time is the only criteria.

What is important about The National Alliance’s 50th Anniversary cannot be calculated so simply. A thoughtful assessment must include questions such as: What changed? How did it change, and why? Lastly, but most importantly, what difference did it make?

In life, nothing occurs in a vacuum. Yet, as much as the process of growth often appears to be chaotic, the end result often depends upon the pattern that exists, or is created, in the beginning. However obscured, the oak was in the acorn long before it came into being.

We look with amusement at the notions of our not-sodistant ancestors, their fear of sailing off the edge of the earth, worshipping rocks, their limited understanding of the causes of disease, and their ignorance of many other things that we regard as modern facts. However, we forget that the scientists who advanced new ideas and used new tools to prove that the earth was round and that microorgan4

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Dr. William T. Hold, Ph.D., CIC, CPCU, CLU, President

isms could cause disease were largely disbelieved and discredited for years— and sometimes centuries. It took a long time, along with contributions by a countless number of people, to establish the modern “givens” that we take for granted.

How It All Began

Dr. William T. Hold, CIC, CPCU, CLU, President of The National Alliance for Insurance Education & Research and cofounder of the CIC Program.

who were actively engaged in the business.

George Bernard Shaw once wrote, “The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.” To some people it would seem unreasonable to believe that we could be successful. We had no money, no curricula, no faculty, no participants, no office, and no employees.

Given these circumstances, some would (and did) say that pursuing this idea, no matter the need, was entirely unreasonable.

In 1968 I was 27 years of age, a professor at The University of Texas—a young man who believed that the course of his life was set.

Then Jim Ruble walked into my office with an acorn, the seed of an idea generated by a real and human need for evolution in the way that education was conducted in our industry.

In 1968 there was no practical, technical insurance education available for agents in Texas, or for that matter, elsewhere in the country. None of the existing educational programs mandated continuing education after designation attainment. In addition, the educational opportunities for experienced agents were In 1968 I was extremely 27 years of age, limited, and most of these a professor at courses were The University taught by consultants or of Texas—a college profesyoung man who sors, rather than industry believed that the practitioners

course of his life was set.

However, we believed that agents in Texas should have access to practical, put-itto-use-immediately insurance education that would help them to become more competitive. We were also convinced that the program should include an industry designation that distinguished CICs as knowledgeable, professional insurance agents who had and would continue to complete a rigorous course of study.

Like many of you, most of the founders of CIC came into the insurance business by chance, yet all of us stayed in the business by choice. This small group of founders, all of

Left to right: CIC founders James K. Ruble, CIC, and Dr. William T. Hold, CIC, CPCU, CLU, and CIC faculty member Hayes Tucker of Fort Worth, TX, circa 1969.

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LEADERSHIP

whom had full-time jobs or owned agencies, were willing to invest the time that was required to create an educational program from scratch. That is how important we believed it to be.

Even with all of us contributing to the effort as much as time allowed, we had no assurance of success; nonetheless, we wrangled for 18 months over the curricula and conducted the first CIC institute in September of 1969.

We had the freedom to do what we believed to be right. We established the standards that we believed in because we did not have a legacy to maintain.

We were the people of the future, rather than the past, and we viewed the process of education as being continual, comprehensive, and rigorous. For those reasons, we did not use textbooks that became outdated almost as soon as they were printed. We relied on faculty who had practical experience to ensure that the

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curricula would always be current and relevant. And we did not confer the CIC designation unless someone had earned it. In fact, we received complaints that the program was too rigorous, and in our minds that was exactly the reason that attaining the designation was of value.

The Acorn

To say that we had a grand vision for the future would be ludicrous. We had no idea what would grow from the small acorn that we had planted in Texas.

While we knew that we had developed the program to the best of our ability, and we had hopes that it would be successful, even we were surprised at how many agents were not discouraged or deterred by the rigor that was inherent in the design. The CIC Program grew in Texas, and in 1974, we received an inquiry from the Minnesota Association of Mutual Insurance

Top: Dr. Hold preparing an exam in 1969. Center: Dr. Hold and Mr. Ruble pictured with executives of the Minnesota Association of Mutual Insurance Agents in 1974. Below: Participants in the first CIC Personal Lines Institute, conducted in 1969.

Dr. William T. Hold, Ph.D., CIC, CPCU, CLU, President

Agents. Our system of licensing state agent associations was developed at that time, and our long-standing relationships with these organizations has been a significant source of pride for me ever since. Working together, we made that small acorn grow into one of the most coveted designations in the industry.

ued to grow because they attended the CIC Program and found the value far exceeded the time and money spent.

From our perspective, the success of the

…the success of the CIC Program convinced us of the value of doing what we believed to be right.

To further emphasize how “unreasonable” our actions were, I’ll make one other point.

Some of you will remember the days when agencies employed

knew that it was these very women who actually managed these agencies and contributed significantly to their value.

Words close to those of my favorite Pogo comic strip rang far too true during those years—“we has met the enemy, and they is us.” That is why defying the conventional wisdom is

Nay-Sayers and Yay-Sayers

I do not mean to suggest that there were no growing pains. As in many endeavors of this nature, the initial reaction from others is often posed as a question, “What right do you have to do this?” or “Who gave you the right to do that?”

This is typically followed by allegations that what you are doing is unethical, or simply wrong. In this case, it was the CIC annual update requirement. After a brief period when the idea proved to be successful, the criticism became personal.

I was purported to a bad person, and while CIC was good, I was a fanatic—most unreasonable. In short, I would eventually destroy the entire program. The last stage was recognition by the initial critics that they knew it would be a good idea from the outset. It is only at this time that you can begin to leave a legacy for others to follow.

While recounting this history would confirm the circumstances that existed at that time, it is more important to note that our supporters contin

In 1989, CIC Board Chairmen Lou Xifaras, CIC; Butch Birchfield, CIC, CPCU; and Jon Pease, CIC, CPCU, CPIA; founders James K. Ruble, CIC; and Dr. William T. Hold, CIC, CPCU, CLU, gathered for a ribbon cutting celebrating the completion of a bridge between buildings at the CIC headquarters.

CIC Program convinced us of the value of doing what we believed to be right. It turned out that it was not unreasonable to think that insurance agents would be interested in practical insurance education. It was not unreasonable to require continuing education, to believe in professionalism, or to adhere to the standards that we had set at the beginning.

females who held the unofficial title of “Gal Friday,” and the insurance industry had “circuit speakers” who conducted “Powder Puff” clinics specifically for women. In other words, the conventional wisdom of the day dictated that women— even those who owned or managed insurance agencies—did not require the same education as their male counterparts, despite the fact that everyone

often an act of wisdom in and of itself. Our contention has always been that it is hard to do a good job if you do not know what you are doing. We have also always believed that recognition should be given to any agency employees who had the wherewithal to excel, as had the first cadre of women who earned the CIC designation. While many reasonable men dismissed these designees Spring 2019 | RESOURCES

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LEADERSHIP

25th Anniversary

as anomalies, we never did, and if that was an “unreasonable” stance, so be it.

Founders Dr. William T. Hold, CIC, CPCU, CLU, and James K. Ruble, CIC, at a celebration for the CIC Program’s 25th Anniversary in 1994.

Creating a Legacy of Success

The past becomes a prison if it does not allow us the independence and freedom to make choices that will enhance our personal and professional lives. To me, that is the more accurate measure of the significance of what The National Alliance has meant in the past, and what it will mean in the future. Successful educational programs require the participation of individuals who want to defy the conventional definition of what qualifies as success. It requires participants who understand that what they do every day is of critical importance to their clients, the wider industry, and the economy at large.

It requires people like you, who understand that education begins anew each day because the world keeps changing, the industry continues to evolve, and life is worth living with integrity.

To me, some of our most significant legacies are found in the agencies where CIC granddaughters or grandsons work with CIC parents and/or grandparents, or in agencies where husband and wife receive their designations and update together. This aspect of our legacy is also seen in the many designees who tell us that the knowledge they received from National Alliance programs was key

Dr. Hold teaching an early CIC institute in 1969.

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to their success, and in the millions of people who have continually updated their knowledge for 10, 20, 30 years, or longer. Our legacy is the positive and collective impact that we have made in the lives of our participants. Sadly, it is also found in those who are no longer with us, beginning years ago with a participant who hoped against hope that she would complete the CIC Program

prior to succumbing to cancer, becoming the first CIC whose designation was conferred posthumously.

There are others that come to mind—many participants who triumphed despite life circumstances that to me are unimaginable. And then there is this: we are a part of your professional signature. That is one of the most humbling things in my life because it conveys that the continual

Female participants of the CIC Program were welcomed and well-represented from the very beginning. Photo: circa 1969.

Dr. William T. Hold, Ph.D., CIC, CPCU, CLU, President

30th Anniversary Marrietta S. McCain, CIC, CPIW, Chairperson of the CIC Board, and Dr. Hold display the CIC cornerstone commemorating the 30th Anniversary of the CIC Program in 1999.

emphasis we have placed on excellence over the last 50 years has not been misplaced. That fact alone makes the trials and difficulties we have faced as an organization and those that I have faced as the “face” of the organization well worth the effort to persist.

Forging Ahead

In the series of beginnings and endings that we call life, you do not have to be undefeated to become a champion. As we work to build a successful career and life in the world of insurance, there will be disappointments, but there will also be significant opportunities to create memories instead of just talking about them. Each of you are doing that every day with every client, every coworker, and every company with which you interact. We do the same thing with participants, state associations, and other organizations

40th Anniversary Dr. William Hold makes comments at the Dallas MEGAbration celebrating the 40th Anniversary of the CIC Program in 2009.

The National Alliance conwith whom we have had retinues to embrace innovalationships for decades—or tion, employ the power of with those that we forged imagination, and embody just yesterday. It is those the ethical positions that relationships, the ways we staked our future on for that we support each other so many years. None of us in the mutual quest for knows what progress, that the future will define our may hold, but individual suc“It is our job we all have a cess, as well part in creatas organizato imbue the ing a future tional success, passage of time that allows us in the future. to serve, in I end where with worth and the best ways I began. I do meaning. What possible, the not know objectives of what is at you do makes a personal and the heart of difference. “ professional an acorn, the growth. We thing that have always gives it life believed that the best way and bestows growth, but I to predict the future is to do know that the care and help create it. action needed to promote We all have an obligation the growth of an acorn, to do the best that we can or the seed of an idea that with what we know and possesses integrity, applies what we learn. But what to organizations, as well as we learn will make the to individuals. I know this critical difference, just as it applied in the past, and it always has in every field of will apply in the future as

human endeavor. Time will pass unassisted. It is our job to imbue the passage of time with worth and meaning. What you do makes a difference. What we do makes a difference. And together, the difference that we will make in the future is immeasurable. Time will not stand still—and neither will we. As we face the challenges of the future and the continual digitization of our world, we should never forget that we cannot digitize trust—nor integrity or character. History clearly teaches us that from the beginning of time the key relationship in life is the human relationship.

We will continue to be as “unreasonable” as is necessary to ensure the future success of each and every CIC, as well as every other National Alliance designee.

Our success is a reflection of your success and will always be. n Spring 2019 | RESOURCES

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COVERAGE CORNER

H

ave you heard the terms “Granny Pod,” saltbox, tiny cabin, garage cottage, New England minicottage, cob home, chalet-onwheels, Vardo house, portable house, shipping container home, or “yurt”? If you have been paying attention to this residential movement shaping the economy of the last eight years, you know that these are all terms used to describe the larger class of residences referred to as “tiny homes.” You have probably also heard references to the “tiny house movement,” viewed one of the tiny home programs on television, or even attended one of the tiny house expositions that have become more common across the country.

The sheer variety within the differing types of tiny homes being built clearly indicates that these residences are incredibly unique in construction, with seemingly little or no uniformity. There are models that have been constructed from shipping containers, hollowed-out RVs, sheds, barns, turn-of-thecentury schoolhouses, and even a tree house—a popular tiny house that functions as an Airbnb and can be found in the southern US. Another unusual example that I recently read about is a grain elevator that is being gutted and retrofitted as a tiny home. Chances are that you have, or will have, an insured express an interest in building or buying a tiny home of one sort or another—or maybe you’re thinking of joining the tiny home movement yourself. In either event, you should be aware of some important considerations.

The first hurdle that most tiny home buyers or builders must deal with is the differing zoning laws instituted around the country. Within the limits of a city or township, the building codes dictate the mini-

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BY RICHARD F. WALSH, JR., CIC, CPCU, ITP, CRIS, AIS, CLCS, SCLA, ANFI

mum-sized lot required for a home Tiny homes afford homeownand can vary from place to place. ers a chance to reduce the cost Most parts of the country restrict of a mortgage, keep maintenance tiny homes to designated areas, easy, lower energy usage, reduce like parks for recreational vehicles, their carbon footprint, live in campgrounds, and outside city accordance with their ecological limits. Aside from a few tiny home principles, and enrich their overall communities in California, Cololives through living rado, Oregon, and simply.

The tiny Texas, tiny homes home is normally are not yet treated The first hurdle within a 150–500 like a smaller versquare-foot range, that most tiny sion of a “normal” and a large percentresidence in most home buyers or age of them are on states. However, wheels! But despite builders must deal consumer trends the minimal scale, appear to indicate with is the differing there are sizable that an increasing coverage questions zoning laws number of our inthat need to be sureds will be optinstituted around addressed. ing for tiny houses the country. in the future.

Homeowners’ Policy

Let’s start with the residential property side of insurance. Can tiny homes qualify for standard homeowners’ policies? While there is a multitude of tiny homes that are non-mobile, permanently affixed, solid-foundation homes, an important piece of the insurance puzzle is the house’s overall construction.

Is a carrier going to allow a DIY project, or a tiny home that is built by an unlicensed builder, or by a group of friends that includes a carpenter, electrician, plumber, drywall expert, and painter? If so, then the homeowner would certainly need some form of inspection from the carrier and the producer prior to writing. Are most of the carriers out there willing to take on this type of risk?

Given a building cost of $150 per square foot, replacement cost on a dwelling of 200 square feet is $30,000. However, few carriers are going to write replacement cost on a dwelling worth $30,000 without meeting a plethora of underwriting criteria. Let’s say the average premium would be in the range of $600–$750. Is this enough premium to warrant the building exposure, plus contents and liability? The typical HO-3 Special Form or even the HO-8 form is not going to be an option for a carrier when the home is an A-Frame, barn home, or some other unique build that is not in close proximity to a staffed fire department and does not have a neighbor within sight. This does not even begin to take into account tiny structures that are constructed

from trailers, RV parts, storage facilities, or grain silos. In addition, tiny houses are under more scrutiny for tornado susceptibility, lack of hurricane/tornado wind-proofing, and other issues, such as frozen pipes.

Dwelling Policy

Our next consideration for a tiny home—again excluding the mobile aspect—is to look at a Dwelling Fire policy. There are issues with the standard dwelling insurance program from the viewpoint of both the insured and the carrier.

Perils are limited under dwelling programs, such as not providing liability coverage. In addition, theft of personal property is eliminated.

Many clients who purchase or build tiny homes use them as permanent residences. They have lives that Spring 2019 | RESOURCES

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include families, pets, and all the normal things an average homeowner would have. Statistically, what type of claim has the most frequency for tiny home owners?

Theft! Naturally, we also need to consider building materials for theft when a tiny home is under construction, and this is also a coverage drawback under most standard dwelling forms.

From the carriers’ standpoint, there are a large percentage of tiny houses located in high protection fire classes, such as a nine or a ten.

This is not an ideal risk for most carriers to take. To explain, the 2011 ISO DP-3 form does include theft of building as a covered peril for dwellings. Most standard carriers are not going to write a DP-3 on a $30,000 tiny home located in the middle of a secluded rural area, or in a very high protection class. The cost to insure this risk would not make logical or financial sense to a standard insurance company.

Tiny Mobiles

Now, let’s tackle the elephant standing uncomfortably in the

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…inland marine insurance is used traditionally to cover any property that is mobile in nature or not easily classified…

However, liability coverage is not included with inland marine forms…

middle of the tiny home. A significant percentage of dwellings in the tiny home industry have a mobile component. Individuals who purchase tiny homes that have wheels are afforded the opportunity to move when they want, to relocate to different areas of the country, or even to plan a mobile retirement.

A client who has a tiny home on wheels would normally disqualify the risk from a standard dwelling or home policy and limit their coverage options. In order to insure a tiny house on wheels, we are traveling into the realm of mobile home policies, RV policies, and inland marine.

Concerning mobile homes, the few carriers that insure these risks normally use a homeowners’ policy form and then add an endorsement that would include the mobile home coverage language.

If a relocation occurs, the need to address comprehensive and collision for the mobile home arises. The carrier and its underwriting criteria can come into play here. Since it is technically not a mobile home, but a tiny home on wheels (THOW), are they insured in the same way? Mobile homes are built on chassis, and not all tiny homes meet that standard.

Are we still dealing with perils that

are not covered, such as theft of personal property or theft of the building? Most mobile home policies also do not contain ordinance or law provisions and only allow for permanently installed items to be included for dwelling coverage. It appears that a mobile home policy may not be apropos.

There are three classes of RVs. Class A RVs include bus conversions and coach-style vehicles; Class B RVs include travel trailers and camper vans; and Class Cs include cabs over trucks and travel fifth-wheels. The tiny home could technically fit into the travel fifth-wheel category of RV based on classification, however there are limitations to this. There are municipalities countrywide that ban people living permanently in RVs due to zoning laws. You can place the tiny home in a Recreational Vehicle Park, but leasing restrictions do not normally allow permanent residence. Now for the hat-trick: the Recreational Vehicle Industry Association may not even classify a tiny home as an RV!

Inland Marine

Lastly, can we fit a tiny home into an inland marine program? To simplify this, inland marine insurance is used traditionally to cover any property that is mobile in nature or not easily classified. The 2018 ISO inland marine manual lists everything from general property to golf carts and motorized ground maintenance vehicles. The tiny home can be a fit here, especially when covering the mobile aspect of the property. However, liability coverage is not included with inland marine forms, which means that the

owner of a tiny home would have to get a renter’s policy for their own dwelling to cover this exposure.

Going Forward

Doing the proper due diligence on tiny homes and insurance, there are specialty carriers, even on an international basis, that have limited programs for tiny houses. Not all of these programs are the same, and they may tackle all, or only some, of the questions we have reviewed here. As 2019 begins, there is no existing industry standard.

At some point in the next several years, we will have a “tiny home insurance industry,” where insurance professionals can review journals, statistical analysis of premiums, claims, and even ratings of tiny home insurance companies.

For now, the insurance world needs to continue working to build a good “recipe” for tiny home coverage.

Perhaps, the right ingredients will be a choice blend of homeowners’ coverages, building and property provisions, liability, mobility

coverage, and a list of insuring agreements between the client and the insurer. To the non-insurance consumer, a tiny home is synonymous with something from the great author J.R.R. Tolkien and the Shire. For the insurance professional, it opens another market that is growing rapidly rather than shrinking. n

About the Author: Richard F. Walsh, Jr., CIC, CPCU, ITP, CRIS, AIS, CLCS, SCLA, ANFI Richard Walsh is a CISR Faculty member. He joined Hylant in 2019 as a Client Manager specializing in commercial lines insurance. Rick began his career in insurance in 1996 and has a background in underwriting, sales, claims, and training.

Learn More, Earn More To become more familiar with the reasoning behind the concepts in this article, take the CISR Insuring Personal Auto Exposures, Insuring Personal Residential Property, and Personal Lines Miscellaneous courses. This article’s author, Rick Walsh, is scheduled to teach Insuring Personal Auto Exposures and Insuring Personal Residential Property in 2019; review the Course Schedule in the drop-down menu on our website for specific dates. For more advanced information regarding Personal Lines coverage, take the CIC Personal Lines Institute. For a solid reference on insuring personal property, we recommend P&C Insurance Essentials, and for a handy primer on key concepts and coverages, check out the new Homeowners’ Coverage: Managing Your Clients’ Most Valuable Assets.

Both may be ordered at NationalAllianceBooks.com.

President William T. Hold, PhD, CIC, CPCU, CLU Publisher/Senior Art Director Becky Keeling bkeeling@scic.com Editor-in-Chief Carol Crysup ccrysup@scic.com Senior Editor Donna Loughran Department Editors Deborah Davis, PhD, MEd, BA ddavis@scic.com Kyle Drawdy, CRM kdrawdy@scic.com Elsa C. Sanchez, CIC, CRM esanchez@scic.com Mandy Whorton mwhorton@scic.com D. Darelle White III, CIC, CPCU dwhite@scic.com Contributing Designer Jeff Buck Contributing Photographer Zakk Black Resources is published by The National Alliance for Insurance Education & Research, P.O. Box 27027, Austin, TX 78755-2027, 800-633-2165, Fax: 512-349-6194, Internet: TheNationalAlliance.com, email: alliance@scic.com. At present, Resources is available to dues-paid Certified Insurance Counselors (CICs), Certified Insurance Service Representatives (CISRs), Certified Risk Managers (CRMs), Certified School Risk Managers (CSRMs), Certified Personal Risk Managers (CPRMs), and affiliates of The National Alliance Research Academy. Entire contents Copyright © 2019, The National Alliance for Insurance Education & Research. All rights reserved. Material in this publication may not be reproduced in any form without permission. Authorization to photocopy items for internal or personal use, or the internal or personal use of specific clients, is granted by The National Alliance, provided that the following words are included on any copy: “Reproduced from Resources with permission of The National Alliance for Insurance Education & Research.”

Resources is designed to provide accurate and timely information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in providing legal, accounting, or other professional services.

If legal advice or other expertise is required, the services of a competent professional should be sought. The publisher has taken all reasonable steps to verify the accuracy and completeness of information contained in Resources. The publisher may not, however, be held responsible for any inaccuracies or omission of information in any article appearing in Resources.

The National Alliance Standards of Conduct: scic.com/pub/media/docs/Standardsof Conduct.pdf

Spring 2019 | RESOURCES

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INSIDER INSIGHTS

A Passion for Puzzles

C

hris Boggs is a wellknown insurance subject matter expert, educator, speaker, and author. He joined the Big “I” Virtual University as Executive Director in 2016 after serving as Vice-President at the Wells Media Group, Inc., Academy of Insurance.

The National Alliance Research Academy recently published two books authored by Chris on insurance fundamentals—Homeowners’ Coverage: Managing Your Clients’ Most Valuable Assets and Workers’ Comp: Practical Answers to the Most Common Workers’ Comp Questions. The books are handy references that should be kept in the briefcase or digitally on the mobile device of every insurance professional.

They are designed to answer the most pressing questions agents face to help them navigate the “sticky” areas of these two essential areas of coverage, homeowners’ and workers’ compensation. We recently interviewed Chris and got a glimpse of his mega-watt mind and his self-proclaimed “geeky” love of the technical insurance puzzle.

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—Interview with an Insurance Geek

NA: You were a journalism major originally. How did insurance and your love of writing come together?

CB: When I graduated from college, I couldn’t find a job in advertising—my intention was to be an advertising copywriter.

I was already engaged to my wife (we are coming up on 28 years together), and I needed to find gainful employment so I could be a contributing member of society and move out of my parents’ home. That’s when ISO came calling. My

dad worked for ISO, so I had an “in”—sort of. They were looking for someone who could write because they had just begun doing underwriting surveys which required a clear description of operations. Thus, my journalism degree was appealing to them.

So, I ended up in insurance and never left. I began studying insurance almost

immediately after I began with ISO and discovered the intricacies of insurance quite fascinating and that I have a passion for the technical side of insurance.

NA: What was it like working at the ISO? I’ve always wondered; it’s always seemed a mysterious entity. Is it anything like working for the FBI? CB: I could tell you, but then I’d have to kill you.

NA: You say you have “a passion for the technical side of insurance.” How did you find out about and develop this, and do you think certain personality types are drawn to “the intricacies of insurance” (as you phrased it) over others? How would you describe those who are attracted to it?

CB: I developed my passion for the coverage side out of my curious nature (this can be taken several different ways). What I mean is that I’m curious how things/concepts fit together. Insurance is a somewhat intricate puzzle.

You have to fit together exposures—the concepts of an insurable exposure, laws, policy language (coverage grants, exclusions and exceptions), and precedence to put the entire picture

together. And just when you think you understand all this, something comes along that messes up the puzzle: a proprietary form, a new court precedence, a law change, ISO changes to the policy form, whatever.

Then the learning and critical thinking process starts all over again.

Yes, I do think there are certain types who gravitate toward insurance and its complexity. Generally, these are exacting, detailoriented, curious people who prize knowledge. Most coverage geeks I know get a perverse satisfaction from discovering something new in an insurance policy. Yes, it’s a sickness. One thing is for sure, to be a true coverage geek you must be willing to question, to be questioned, and to be wrong. What I’ve learned over the last couple years is that even the geekiest among us don’t always agree on how a policy responds. If the geeks can’t agree, no wonder the carriers often get it wrong.

NA: You seem to have a lively sense of humor. Do humor and insurance go together?

CB: They absolutely have to go together. If we can’t laugh at the industry and ourselves, this would be a dull and boring industry (which some think it is). And, some of the best

Chris J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, AINS

learning comes from humor. I can explain a particular coverage over and over again and get nowhere, but if I can tell you a story (true or not) that applies the concept, you will understand the concept; and if the story is funny (or absurd or questionable), you will remember the concept.

I have every desire to rid the world of the idea that insurance is dull because of its necessity to our free market economy and our financial wellbeing. Humor is necessary to crush this idea.

NA: Your first full-time teaching position was as the Associate Director of Education with the Independent Insurance Agents of North Carolina. How did that experience as an educator inform how you view teaching and training?

CB: The best part of that position was my boss, who became my mentor and remains so to this day — Stuart Powell. Two key lessons Stuart taught me stay with me and still influence me. Let me try to shorten the explanations for time’s sake.

Stuart taught me to consider Sir Laurence Olivier when I was teaching. I realize that doesn’t make much sense immediately, but let me explain. Olivier performed the same role hundreds and sometimes thousands of times—but he

“I still take a lot of time to prepare for every class, even if it is a topic I’ve taught 100 times or more… Every student who takes time to attend my session deserves my best…” gave his all in each performance because the person who saw his last performance of that part didn’t see the first performance and was owed the same effort and passion. Likewise, Stuart told me, I would be teaching the same class or topic hundreds of times, but even if I was bored with the topic, the person in my class for the first time deserved my best—all my passion and all my effort.

That’s one of the reasons I still take a lot of time to prepare for every class, even if it is a topic I’ve taught 100 times or more (and there are some that I have). Every student who takes time to attend my session deserves my best, not only in performance, but in preparation.

The hardest lesson to learn was the second truth Stuart taught me about teaching. He used to say, “Not everyone is going to like your style of teaching.”

He said, “Not everyone liked Jesus and not everyone liked Socrates; what makes you better than Spring 2019 | RESOURCES

15

INSIDER INSIGHTS

them?” As I said, this was a hard lesson to learn. I could have 50 people in the class; 49 rate me a “10,” and one person rate me a “3,” and I’d obsess over the “3” for some reason. It took a few years before I could understand the truth in Stuart’s lesson. “Throw out the highest number and throw out the lowest number, and that’s the reality of how well you did.”

NA: How is current insurance education missing the mark? What would you do to improve it?

CB: Modern CE is written to the lowest level and intended to do one thing: allow the person to check the box that they have completed their CE for the year. Before the creation of required CE, insurance professionals undertook training as a matter of pride in their craft with a goal of improving their professionalism. Some didn’t undertake to get better, but they were ultimately found out.

CE has supplanted a desire to be more professional with the necessity to meet the prescribed CE requirements. The thought is, “It really doesn’t matter what the topic is, so long as I get my hours.”

My hope is that the states will begin to take monitoring CE more seriously; but I don’t mean making sure people sit in class for a specific amount of time (that doesn’t prove anything was learned). What I mean is that states should hire insurance geeks who KNOW what makes a good class where learning can 16

RESOURCES | Spring 2019

take place and have them approve classes.

NA: What have you learned about what works well in live and online classes while being at VU? How do you help learners absorb the necessary technical information and then prove successful learning?

CB: Learning styles are changing. I grew up in the days of day-long classes — which I still prefer personally; but, this is becoming less desirable from a student perspective. We, as an industry, must begin catering to time constraints and attention spans. According to research, employees have about 24 minutes a week to

Most Valuable Assets and Workers’ Comp: Practical Answers to the Most Common Workers’ Comp Questions. How do you see these fitting into an agent’s or agency’s reference library? What purpose, hope, and audience do you have in mind for these books?

CB: Both books grew out of two other books I wrote specifically for consumers.

These original books were written to help educate consumers and were written to the buyer level and not for those in the insurance business. Several agent friends told me they had gotten copies of the consumer-

“If the predictions are correct, artificial intelligence (AI) will or may be making most claims decisions. If this is true, then the key to getting a claim paid will truly be how the loss is described.” dedicate to learning—that isn’t much. To truly address this limitation, the industry must make a change— along with the regulators.

NA: It’s interesting you say that Chris. The National Alliance is pilot-testing an adaptive, spaced-learning app that allows participants to prime themselves for course subject mastery in just a few minutes each day. We’ll keep everyone posted on that, but let’s turn to another subject for now. You have recently written two new books for The National Alliance Research Academy— Homeowners’ Coverage: Managing Your Clients’

directed books and were using them in their office for reference; it seemed to me that the logical step was to write more detailed books for agents to use.

Consequently, these books were born.

My hope is that agents will keep these close by when working with their workers’ compensation and homeowners’ clients. Not only do the books answer the most commonly asked questions, if used correctly, they can help educate your clients and give them information they didn’t know they needed.

NA: What are the big innovations in insurance you

think are or will be changing the industry in the next five to ten years?

CB: Mine may be a very far-fetched answer, but I see it as a possibility. If the predictions are correct, artificial intelligence (AI) will or may be making most claims decisions. If this is true, then the key to getting a claim paid will truly be how the loss is described.

The insured will need to describe the loss such that coverage is triggered.

Why does all this matter?

Because one of two things will result. Agents will have to become coverage experts to know how to write (or advise on) claims descriptions; or, a new position of claims consultant will be created. A claims consultant will be the coverage expert who knows how to describe a claim to trigger coverage.

NA: Who are your favorite authors and titles? Fiction/ nonfiction? Are there any life-changing books/articles you might recommend?

CB: I’ve always enjoyed Mark Twain. As weird as it sounds, I try to write insurance articles like I think Mark Twain would write them. I like his use of humor—subtle and vivid. I also like his use of a “voice,” rather than a stilted and “proper” style.

My favorite insurancerelated book isn’t any of the 15 I’ve written (shameless self-promotion); it is called Against the Gods: The Remarkable Story of Risk, by Peter L. Bernstein.

This is an amazing book that recounts how mankind

Chris J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, AINS moved away from superstition to statistical analysis of risk assessment. This is recommended reading for all insurance and risk management professionals. Before he died, I developed a professional relationship with Mr. Bernstein—he was a very nice man. In fact, he told me he was working on another book; but he didn’t have the chance to complete it before he died in 2009, at the age of 90.

Then, if you have time and are interested, take a look at one of my books. They are probably under someone’s table being used to keep it level. (Heck, even my wife won’t read them!)

I don’t read much fiction.

Not my thing. I read books on statistics, tort law, and other such light reading. In a book on tort law I am reading, I found an error regarding the history of workers’ compensation in America. I contacted the author and pointed out the mistake. Surprisingly, he blamed the mistake on the person from whom he copied the material; but he was very kind and appreciative saying he would correct the information in the next edition.

I left off one recommended read: I recommend everyone read ISO’s Commercial General Liability policy—the CG 00 01 04 13 edition. It’s a riddle wrapped in a mystery inside an enigma, but well worth your time. You won’t be disappointed. (In case you missed it, I’m kidding.) n

Get These Fundamental Guides to Complex Coverages Written in an easy conversational tone, Chris Boggs has penned two new books—Workers’ Comp: Practical Answers to the Most Common Workers’ Comp Questions and Homeowners’ Coverage: Managing Your Clients’ Most Valuable Assets—to help students of the industry, agents, account executives, customer service representatives, and claims personnel meet the immediate and long-term coverage needs of their clients.

Workers’ Comp

A worker gets hurt; the work comp policy pays.

It’s simple, right? But wait—it may turn out to be much more involved than that. Statutes and common laws can complicate a workers’ comp issue, and complexity breeds errors.

Read this practical new book and find out the real-world answers to the 16 most commonly asked workers’ comp questions.

Homeowners’ Coverage

There’s no place like home. But when the roof is leaking, and your clients are up to their knees in water, making a house a home again can be a challenge. Discover the key homeowners’ insurance concepts and coverages every successful agent should know how to use. Read this handy book and be confident in managing your clients’ most valuable assets.

These are two books that belong in every agent’s briefcase or library and also can be shared with clients to help them understand their coverage needs. Get your copies—in your choice of paperback or digital PDF—from The National Alliance Research Academy bookstore.

29 Paperback $ 19 Digital PDF

$

TheNationalAlliance.com/bookstore

As a dues-paid designee, you have free access to valuable webinar content! Scan this code (just point your smart-phone camera at it) to watch Chris Boggs present “Ensuring You Are Insuring the HO Property Exposure Correctly!” See the back cover of this issue for more webinar topics available to dues-payers.

Spring 2019 | RESOURCES

17

AGENCY MANAGEMENT

BY CARLETTA CLYATT

W

ith the pending arrival of Spring, many of us are inspired to contemplate new beginnings, fresh starts, and improved ways of being. Individual goals and activities like organizing our closets, having the car tuned up, getting our finances categorized in preparation for tax season, and tackling other “spring cleaning” projects come to mind. But what about corporate goals? Now is a good time to reflect on those as well. After all, organizations need fresh ideas, a thorough tuning up, and aspirations, too. Standing still while your competitors move forward simply isn’t an option.

How to create a culture of high performance is a worthy subject to consider while you are reviewing your corporate goals.

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RESOURCES | Spring 2019

The crazy truth is that hiring talented people won’t necessarily result in a culture of high performance. To achieve that end, your workplace has to be carefully crafted to attract, develop, motivate, and retain high performers. And that includes policies, procedures, and processes that support your objectives. Here are three of our best suggestions for doing just that.

who gets to claim the organization as employer. Consider that it’s much more fruitful to develop the right employee than to work around the wrong employee.

Traditional interviews are a good start, but only a good start. Speaking to a potential new hire face-toface (whether live and in-person, or virtually via a digital meeting platform) is a tested way to learn some important things about the individ#1—Hire Right the First Time ual. How professionGranted, hiring ally does she present right is easier said herself? How well than done, but so The crazy does he communicate, is everything worth truth is that both verbally and pursuing. Despite non-verbally? How what some believe, hiring talented adept is she at pickhiring doesn’t have to people won’t ing up social cues? Is be a gamble. There is he friendly? Still, 50 value in developing necessarily percent of new hires a careful process that result in a fail within the first allows companies 18 months. Why? greater control of culture of high

performance.

…we don’t always know the skills and traits a person needs to be successful in a particular position.

Well, for one, the job interview is largely an artificial experience.

Candidates are on their best behavior, and the typical 60 to 90-minute meeting is hardly enough time to get to know all that really needs knowing before you hire someone. That’s why behavioral assessments are an invaluable part of the acquisition process.

Assessment results aren’t based on “chemistry” or the candidate’s ability to make a good first impression.

Instead, these instruments provide objective data and insight that can be used to make intelligent hiring decisions.

#2—Commit to Developing Your Leaders In any organization, people managers and other leaders have especially awesome responsibilities. Staff depends on leadership for establishing company vision as well as for day-to-day guidance, direction, and validation. Whether the job is managing line staff or other managers, it’s a hard one. The market changes, the workforce changes, stakeholder expectations change, and your leaders have to be able to respond to all of those areas that comprise a fluid business environment. How can you know that your managers have the willingness and ability to adapt their behavior to whatever the company needs when it needs it?

Behavioral assessments add value here as well. By using a proven behavioral methodology, you can uncover each employee’s strengths, motivators, and opportunities to grow creative leaders for today and tomorrow. #3—Commit to Building Your Teams Team building is a deliberate and time-intensive endeavor that requires an abundant investment of

energy and other resources. However, the payback is enormous.

Functional teams do great things.

What are the ingredients of a functional team? Aside from the “soft” aspects—such as trust, good communication, and respect—a functional team will be made up of people in the positions that truly complement their knowledge, skills, and abilities. While that may seem obvious, it’s a fact that we don’t always know the skills and traits a person needs to be successful in a particular position. Instead of thinking it through beforehand, we make assumptions while relying on history and take it from there.

Also, jobs evolve, and sometimes we don’t keep up. Next thing you know, the position description bears little resemblance to the job in action, and if the incumbent is struggling, we may not always be sure why because we have lost touch with what the position now requires.

Behavioral assessments are both the cure and the antidote for this ailment. During the hiring process (and after a careful review of the position description), use an as-

sessment tool to determine whether your candidates have the traits needed to do the job. Post-hire, use the tool to discover employee strengths and motivations as a foundation for creating a team that sings! (Bonus—everyone wants to be part of a winning team, so your efforts will give a boost to employee retention.)

Many talk about wanting a culture of high performance, but few will devote the time and energy needed for that culture to emerge.

Hiring right and developing staff are two concrete steps you can take to distinguish your agency from the pack. n

About the Author: Carletta Clyatt

Carletta Clyatt, a popular seminar speaker, is the Senior VP at The Omnia Group.

She offers clients advice on how to manage more effectively and gain insight into employee strengths, challenges, and behaviors. For more information about employee behavioral assessments, call Carletta at 813-280-3026 or email: Carletta@omniagroup.com.

Learn More, Earn More Attendance at the newly updated 16-hour (two-day) CIC Agency Management Institute presents great opportunities to learn more about the process of managing personnel, including following legal guidelines, establishing job descriptions, setting interview practices, and giving performance appraisals. A vital addition to every office and professional library is Hiring, Managing, and Compensating Insurance Agency Personnel. Authored by Jon Persky and Jenny Foster, this comprehensive publication is available at NationalAllianceBooks.com.

Spring 2019 | RESOURCES

19

Q: “What are my options?”

National Alliance Designee,

As a you have dozens of choices for your update, your career path, and your future.

One of the most common questions designees ask us is, “What options do I have for my update?” The answer is, literally, “You have dozens of choices!”

It’s your career, your future, and your success at stake, so we have structured our programs to offer you a vast range of learning opportunities.

The choices are yours as you decide on the learning path that will best meet your specific career goals.

You always have the option of repeating a class you’ve taken before, whether to learn the latest developments or further master the knowledge for daily use.*

CIC Course

CIC Course

CRM Course

CRM Course

CPRM Course

CPRM Course

James K. Ruble MEGA Seminar

James K. Ruble MEGA Seminar

James K. Ruble Graduate Seminar

PROFocus Seminar

PROFocus Seminar Entrepreneurial Insurance Symposium NEW!

Certified Marine Insurance Professional Seminar

Must Be Dues-Paid

Dynamics Series Course

Must Be Dues-Paid

You can also start on the path toward your next designation­­, enhancing your credibility and reputation as a true professional, while opening doors to additional markets and job positions.

But, that’s not all—your options include dozens of advanced programs. Ruble, PROFocus, and Hold Seminars allow you to dive deeply into specific risk and insurance topics. The Dynamics Series courses are very popular­—for honing selling skills, relationships, and sales culture—and are taught by some real industry rock stars. And let’s not forget the unique Entrepreneurial Insurance Symposium held each Fall in Dallas, Texas—where dues-paid National Alliance designees can network with industry movers and shakers while learning about cutting-edge products and developments. And we’re excited to announce our newest update option—Certified Marine Insurance Professional Seminars, for those who serve or wish to serve marine and longshore clientele (see page 29 for more details).

Online Instructor-Led

Classroom

So Many Gre

Visit our website to see all of the PROFocus, Dynamics Series for your

You even have your choice of preferred learning style, since our courses are offered in a variety of formats (classroom, online instructorled, online self-paced).

The choices are YOURs.

TheNationalAlliance.com

Visit our website for full details about all of your update options.

20 RESOURCES | Spring 2019

* Repeating a course may not provide state CE credit hours.

A: Your career, your choice.

CE Credit:

Refer to scic.com/ce-by-state for information about CE credit hours and requirements in your state.

Online Instructor-Led

Classroom

CISR Course

CISR Course

CSRM Course

CSRM Course

William T. Hold Seminar

William T. Hold Seminar Dynamics of Service Course

CIC Course

CIC Course CRM Course CPRM Course James K. Ruble MEGA Seminar PROFocus Seminar

Must Be Dues-Paid

Earn Up to Two Years Update Credit

Online Self-Paced

eat Choices!

CPRM Course James K. Ruble MEGA Seminar James K. Ruble Graduate Seminar Dynamics Series Course PROFocus Seminar Entrepreneurial Insurance Symposium

Must Be Dues-Paid

e a complete listing of William T. Hold, and choices available update.

Earn Up to Two Years Update Credit

CRM Course

Train Your Team:

Remember, we also offer programs for industry newbies (Introductory Series), university students (University Associate Program), and Producers (our renown Dynamics Master Sales Class), as well as in-house training (ACES) customized according to your needs.

Spring 2019 | RESOURCES

21

ASK BETTIE

B

ettie Duff, of Resources magazine “Ask Bettie” fame, has been with The National Alliance for four decades. As our 50th Anniversary year gets underway, we decided to “Ask Bettie” what it has been like to be such an integral part of the company as it grew from just a four-person office to the successful nationwide organization that it is today.

Read on, as Bettie tells all…

Dr. Hold is introduced by Bettie at a specialty James K. Ruble Seminar in 1994.

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Dear Bettie,

What was life like for you when you first came to work at The National Alliance and what were you doing prior to that time? How did you get started at The National Alliance and how has your life changed because of it?

Bettie Duff, Corporate Secretary, Executive Team, The National Alliance

Yes, there was life before The National Alliance—but not for long. I graduated from The University of North Texas in Denton, TX, with a B.S. in Education and a minor in English and taught in the Dallas public school system prior to moving to Austin.

I met Dr. Hold and his wife on the tennis court, and Ms. Hold inquired if I would be interested in some part-time work, which turned into a 40-year commitment! At that time, The National Alliance— then called the Society of CIC—had four employees, no computers, one copier, some Selectric typewriters (the early electric ones with the bouncing metal font elements), and all participant records were stored on 4” x 6” index cards. We had a hand-press to make the CIC gold seals for the diplomas, and we hand-cut the red ribbons to affix with the seals.

I have held numerous positions at The National Alliance over my 40-year career, starting part-time as Administrative Assistant and then working full-time on the “priority project” of the day. In the early 80s, I was given the opportunity to work with Dr. Hold

in the acquisition of our first computer—a Wang, a gigantic machine which I used subsequently to transition all participant records to our first digital database; therefore, I must have been Director of IT (no such title existed at the time).

Little did I know that I was also the Risk Manager as I carried the back-up files home every night to ensure the security of participants’ records. The files were on hefty, 24-inch Wang Phoenix discs.

Through the years, I fulfilled the role of Facilities Director, before there was such a title, and served as the unofficial HR Director.

Later, after becoming Assistant Vice President in 1988, I was elated to become the Senior Vice President of Programs Services, leading the customer service area at The National Alliance.

Currently, I serve as Corporate Secretary for The National Alliance and am a member of the Executive Team. Throughout my career, I have enjoyed the

“Many exciting and momentous things happened in those early years with The National Alliance. We were building something special, and we felt the excitement and weight of the undertaking.“

A wedding celebration for Bettie and Dennis Duff was held in Dr. Hold’s office in 1982 at the headquarters of The National Alliance.

opportunity and honor of working with many well-respected insurance professionals: Mr. James K. Ruble, distinguished Board members, expert faculty and Educational Consultants, valued designees and participants, and my exceptional coworkers.

Many exciting and momentous things happened in those early years with The National Alliance.

We were building something special, and we felt the excitement and In 1988, Bettie concentrates while working at her computer—a sight her coworkers are familiar with today.

weight of the undertaking. The CIC Program grew from four institutes to five, with Life and Health being added in 1980. The program continued to prosper as more licensees came on board, and it was accredited in many more key states (a real achievement)—going “viral” before reality was virtual—and ultimately spreading nationwide.

Things did not slow down at The National Alliance in the ensuing years, and colleagues became close friends who felt like family; in 1982 my marriage was celebrated at a party in Dr. Hold’s office. In 1983 The National Alliance Research Academy was founded, and the Certified Insurance Service Representative (CISR) Program Spring 2019 | RESOURCES

23

ASK BETTIE

was established in 1986.

I moved “up” from the desk-sized computer to a reasonably sized Macintosh with floppy disks that held a whopping 512k each!

In 1990 the Dynamics of Selling Program was implemented for producers and other insurance professionals, providing the first insurance-specific sales program and, that same year, an advanced update option for CISRs—the Advanced Lecture Series (now known as the William T. Hold Seminars)—was announced. Our first Outstanding CSR of the Year® (OCSR) Award winner was named in 1991, and update requirements were changed from an annual to a personalized birthmonth deadline. In 1993 the organization’s name was officially changed from the Society of CIC and The CIC System to The National Alliance for Insurance Education & Research to describe our mission more exactly.

The Certified Risk Manager (CRM) Program, introduced in 1995, brought focused risk management instruction to insurance and risk management professionals. The National Alliance continued to expand and transform as we saw the new millennium dawn (no I did not have MREs stored in my utility room/ bunker, but we did fear our [by then] Windows machines would irretrievably crash as the clock struck midnight). But 1999 became 2000 without any of the predicted computer24

RESOURCES | Spring 2019

related disasters, and later that year, the CISR Online Program was launched. Five years after that, the Certified School Risk Manager (CSRM) Program debuted.

To bring exceptional new people into the industry, the University Associate Program was initiated in 2010; yes, the retirement of baby boomers was an1992: Bettie and The National Alliance team take part in some birthday shenanigans ticipated even then. for (now retired) faculty member J. Cyrus (Cy) Wolverton, CPCU, a founding member The CISR Program of The National Alliance Research Academy, and (past) CIC, CISR, and Academy Board member. continued to flourish, going from five courses to a selection of nine—widening educational opportunities for CSRs. In 2012, with the naming of Florida State University’s Risk and Insurance Program in honor of Dr. Hold (Dr. William T. Hold/The National Alliance Program in Risk Management and Insurance), there Bettie and Dr. Hold with Mrs. Ruble in 2006 at a gala celebrating the character and contributions of CIC cofounder, James K. Ruble. began a collaborative partnership with With 2019 being The clients was established with the university to nurture National Alliance’s 50th Aninput from major carriers, future growth and continue niversary year, I am excited and in 2016 the first online support for upcoming stuto be a part of the celebraJames K. Ruble MEGA dents of the industry. The tion and honored to have Seminar premiered, providCISR Elite distinction was the opportunity to continue ing more accessible learninstituted in 2013 to celproviding customer service ing choices for designees. ebrate those CSRs–Account to so many designees and To meet the needs of our Managers/Executives who participants throughout the participants, in 2018, the desire to achieve new levels country.

CIC Program was expanded of professional knowledge Having Dr. Hold as a to seven institutes, affordby taking and passing all mentor has given me the ing more options for comnine CISR courses. opportunity to develop pleting the designation, and In 2014 the Certified Perleadership skills and build we converted the CIC and sonal Risk Manager (CPRM) lasting relationships CRM courses from a 20to Program for high net worth within the industry. My 16-hour format.

Bettie Duff, Corporate Secretary, Executive Team, The National Alliance

William J. Hold, CRM, CISR, and Bettie Duff attend Dr. Hold’s induction into Florida State University’s Hall of Fame in 2012.

role with Resources magazine, in writing this column, has given me a special connection with you—both designees and participants. As a liaison

with The National Alliance, acting on your behalf, I continue to advocate for and champion you, while striving to uphold company policies and standards. n

Bettie enjoying some balloons celebrating her 40th anniversary as an employee of The National Alliance.

Right: Bettie and Chief Academic Officer Mitch Dunford celebrate The National Alliance’s new media studio and classroom named in Bettie’s honor in 2018.

As Dr. Hold has noted on many occasions, “Bettie has the heart of a lion, the tenacity of a bulldog, and the kindness of Mother Teresa.”

Her coworkers know Bettie to be a genteel, but strong, southern woman who is considered a National Alliance treasure—as a truth-teller, corporate identity touchstone, and mentor— acknowledging and supporting them and always showing her desire to help them succeed.

Spring 2019 | RESOURCES

25

TECHNOLOGY

BY ALEX LEKHRAJ

H

ow many times have we heard the following statement in the last five years? “Artificial Intelligence (AI) is dramatically changing the way business is done.” Probably more times that we care to imagine.

From Forbes magazine to the Brookings Institution (www.brookings. edu—a non-profit public policy organization), it seems everyone is raving about AI. There have been many changes in the insurance sector in the past few years, including digital modernization, increased customization of products, higher usage of data analytics, machine learning, AI, and the constantly growing insurtech space.

As the industry keeps changing, technology is becoming increasingly important to enable carriers to compete in this new environment.

It is apparent that in which vendors The general this space is evolvoffer products and ing in a way that will services specific to a perception of see new technologies particular business the insurance having a tremendous niche. The insurance impact on how insurindustry invested industry as being ers interact with their around $124 milslow, overly customers. lion in AI systems, The general compared to a crossconservative, perception of the industry average of and unwilling insurance industry $70 million.1 as being slow, overly AI-fueled chatto change is conservative, and bots appear to be being turned unwilling to change an appealing opis being turned tion for insurance upside down. upside down. New companies that are studies suggest that striving to personalthe insurance industry is investize and speed up services to their ing in technologies that help them customers. Chatbots’ potential to deliver better customer service and add insights, improve customer experience at an accelerated pace. experience, and cut costs is very These investments include Artifipromising. cial Intelligence, where, according Companies across the globe have to studies, the insurance industry been experimenting with chatbots outspent the other vertical markets for more than 50 years—(ELIZA in

Tata Consultancy Services, Ltd., September 12, 2017, TCS Global Trend Study on Artificial Intelligence Reveals Industry Wide Investment by 2020, https://www.tcs.com/global-trend-study-artificial-intelligence-reveals-industry-wide-investment-2020.

1

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1966 (MIT), Clippy in 1996 to help annoy MS Office users (Microsoft), Siri in 2008 (Apple), and Alexa in 2014 (Amazon). The biggest thing that was missing in the early iterations of chatbots was the fact that they were disconnected from their users and lacking meaningful data and insights.

For those of us out there who are still trying to understand what AI is, very simply put, AI is a computerized learned behavior using pattern recognition based on repetitive data. Because of the level of computing power available today, computers can consume large amounts of data and be given instruction to learn patterns. A good example of this is using the camera on your smart phone to take a picture of an apple to find out the type of apple.

Computers can find the variety of apple (or other object or person), by comparing that apple to other pictures of apples that are defined and labeled in a database.

Today AI has evolved and is able to interact with humans at a process level and will continue to mature to a more cognitive level within the next five years.

AI chatbots are becoming a viable customer service channel; the best ones deliver experiences in which customers cannot tell if they are communicating with a human or a computer. Typically, customer service chatbots answer questions based on key words. The most basic systems are document retrieval systems that process simple questions such as customer account information and customer profile updates.

AI has come a long way in recognizing the content and context of customers’ requests and questions, but much work remains to be done in this space to achieve full human or natural language communication. At times, this can be frustrating for customers. Think of the occasions you may have asked

Siri or Alexa (voice recognition chatbots) a question and received a wrong answer. The computer recognizes key words but may not recognize the context in which they are being used. In other words, the computer doesn’t recognize the way people naturally speak. These systems (including Siri and Alexa) will continue to evolve and improve in the next few years.

That said, chatbots are on their way to mainstream acceptance.

Here are some ways AI and chatbots are creating a major impact in the customer service and customer experience world: 24/7 Support Customer service is all about convenience, which includes 24/7 customer support. A cost-efficient, yet powerful way to provide basic support is through the neversleeping chatbot.

friction point in customer service.

With chatbots, you no longer must wait for the next available agent.

Personalizing the Customer Experience Chatbots excel at collecting customer data from support interactions. After all, it’s the computer that’s doing the work. The advantage is that live support agents can use this information to personalize their interactions with customers.

Customer Relationship Most companies wish their agents had more time to make outbound, proactive contact with their customers. Chatbots are revolutionizing the way brands stay in touch with their customers. Whether it’s a simple email or text on a customer’s birthday, or a quick check-in to ask if they are enjoying the brand’s product or service, chatbots are helping to foster brand loyalty.

Workload Faster Answers In many industries, chatbots are Studies and reports show that custrained by using historical contomers want quick, frictionless soversations and can perform some lutions to their problems and quick of the same tasks as a live supanswers to their questions. There port center rep such as invoicing, is no doubt, there are acceptance answering basic questions about issues with AI and chatbots. Some their accounts, providing product customers have always used tradiinformation, and more. Customers tional phone support and have a receive the same level of service hard time accepting anything else. they would get from the support But, there is a growing contingent rep. The chatbot can of customers who recognize human are increasingly open emotions such as to new technology, …there are anger, confusion, especially if it can acceptance fear, and joy. And, as enhance their experimentioned above, if ence. As the technolissues with AI the chatbot detects ogy improves and and chatbots.… that the customer acceptance grows, is angry, upset, or chatbots, powered by But, there is frustrated, it will AI, will have a strong a growing seamlessly transfer role in customer serthe interaction to a vice and support. contingent of human to take over If insurers want customers who and finish assisting to deliver successful the customer. are increasingly chatbot experiences Wait-time to their customers, open to new The concept of they need to: technology… on-hold music is a Spring 2019 | RESOURCES

27

Artificial Insurance Intelligence…continued. a) Put customer experience first b) Learn and understand changing customer needs; know agency products and services and what products should be added to serve customers better c) Centralize data to CRM (customer relationship management) or Agency Management systems that support customer data and sales d) Have an escalation process to hand off to human interaction e) Source the right technology to easily train, maintain, and deploy chatbots For the foreseeable future, chatbots won’t be replacing humans in contact center jobs. At this point, chatbots will only replace some of the tasks that people are now handling—especially lower-level requests, questions, and complaints. The best chatbot systems are tiered, and when questions cannot be answered adequately by an AI, a complex customer interaction can be automatically transferred to a customer service representative.

Many companies today are looking more closely at their technology strategy to understand what role artificial intelligence can play, extending beyond data analytics and even looking to tools like chatbots to replace traditional websites. n

About the Author: Alex Lekhraj Alex’s breadth of experience includes more than 20 years experience working in technology and ten years in the insurance and financial industry. As the Chief Information Officer/Head of Business Process for The National Alliance, Alex is leading the company’s digital transformation and is committed to providing new and innovative ways of servicing participants’ needs.

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RESOURCES | Spring 2019

Through their generous donations, Academy Research Associates help fund and participate in the research and publication activities of The National Alliance Research Academy and also assist in outreach efforts to attract students to the insurance industry through career-oriented programs offered in cooperation with various educational institutions. For more information about the benefits of becoming a Research Associate, contact Carol Crysup at ccrysup@ scic.com, or call 800-633-2165, ext. 6191.

Companies: American Agents Alliance Assurex Global Bowen Miclette & Britt Brown & Brown Insurance, Inc. BXS Insurance Calhoun, Thomson+ Matza, LLP CRC Insurance Services, Inc. HR&R Intergovernmental Pool Administration, Safety, & Loss Control Hylant ISU Insurance Agency Network Jerry Montgomery Memorial Research Fund Keystone Insurors Group Marble Box MarketScout McGriff Insurance Services McGriff, Seibels, & Williams Patra Corporation Popular Insurance, LLC The PaceSetter Program—State Auto Insurance Companies ReSourcePro Texas Capital Bank Westwood Trust Zurich North America

Associations: Alabama IIA IIA&B of Arizona, Inc. Trusted Choice Insurance Agents of Colorado PIA of Connecticut IA&B of Delaware Florida Association of Insurance Agents PIA Southern Alliance IIA of Illinois IIA of Indiana Kansas Association of Insurance Agents IIA of Kentucky PIA of Kentucky IA&B of Maryland Massachusetts Association of Insurance Agents Michigan Association of Insurance Agents Minnesota IIA&B Missouri Association of Insurance Agents PIA of Nebraska/Iowa PIA of New Jersey PIA of New York IIA of North Carolina Ohio Insurance Agents IIA of Oklahoma IA&B of Pennsylvania IIA&B of South Carolina Insurors of Tennessee PIA of Virginia & DC PIA Western Alliance PIA of Wisconsin

Innovation Integrity Imagination

Newly Revised 16-Hour Institutes Piloted—to Great Success!

Something special happened in January at the Doubletree Bush Intercontinental Hotel in Houston, TX. The newly revised 16-hour CIC Life & Health Institute was “test-driven” by a large group of participants eager to experience the anticipated innovations incorporated into the course.

Michael Kersgard, CIC, CLU, taught life and annuities and business life concepts, and Jerry Rhinehart, CIC, CLU, ChFC, RHU, presented health insurance and employee benefits concepts. Interspersed in the sections of the course were video clips of interviews with consumers, subject matter experts, and industry leaders. The course notebook contains QR codes and other guides to support materials that elaborate further on vital life and health insurance concepts.

A discussion of recent changes to the Affordable Care Act (ACA) and their ramifications took place, along with an in-depth look at Medicare and Medicare supplements. Various employee benefit programs, including consumer-driven healthcare options and new products that can address long-term care exposures and disability income issues were expertly covered. One attendee stated, “This is the first time I’ve understood innovative long-term care options.”

In February, Geoffrey Gordon, CFP, CIC, CRM, stood at the front of a large conference room at the Renaissance Hotel in Richardson, TX, as 85 participants claimed the seats that they would occupy for both days of the CIC Agency Management Institute.

Mr. Gordon introduced participants to the institute’s new 16-hour format and additions to the Agency Management notebook, such as knowledge checks, practice exercises, and explanatory graphics, and resource 29 RESOURCES | Spring 2019

CIC Life & Health Institute attendees watch Allan Lazor’s video about the importance of estate planning.

materials. He presented two essential topics within agency management—strategic planning and talent acquisition and development.

Industry veteran, Bill Toll, CIC, stepped in on the second day of the course after an ice storm delayed the scheduled speaker.

Mr. Toll handled the transition seamlessly, holding participants’ attention with pertinent case studies and real-world examples that skillfully illustrated vital agency topics, including client retention and acquisition,

technology utilization, and ethical responsibility.

As the new 16-hour institutes are being held around the country, our academic team is watching and listening to your feedback.

Adjustments and refinements will continue to be made as we strive to meet your needs, while challenging your skills and honing your abilities.

Scan this QR code to sample some of the video assets incorporated into the new Life & Health curriculum.

NEW Update Option for CICs, CRMs, and CPRMS The National Alliance is excited and proud to announce its new partnership with The International Institute for Marine Insurance Studies—great news for those who serve or want to serve industry-specific clients in the marine and longshore arena.

Dues-paid CICs, CRMs, and CPRMs will now be able to satisfy their update requirement by

attending any Certified Marine Insurance Professional (CMIP) qualification program or Graduate Seminar.

The National Alliance will conduct the CMIP Insuring Waterfront Businesses Seminar in Houston, TX, October 16–17, 2019. To enroll, go to scic.com/20191017TX16IWB. html. See the entire CMIP schedule at iimis.com.

Spring 2019 | RESOURCES

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LEGACIES

It’s Never Too Late…or Too Early…

A

s we celebrate the 50th anniversary of the Society of CIC, we have been doing a lot of thinking about the past, the future, and the meaning of leaving a personal and professional legacy. When you are a professional, the concept of leaving a legacy becomes inextricably intertwined with who you are and how you do the things you do—your professionalism becomes a part of your personal identity. We each build a part of our legacy every day, and while there may be more to reflect upon late in our lives, we think that it is worth remembering that there is every reason to celebrate all along the way.

The next 50 years begin today and tomorrow and every day, and the greatest legacy that we celebrate every day is each of you. And each day the future begins anew.

One Agency—Three Generations

One of the best ways to illustrate the importance of this statement is to look at an agency that has been in business for over 60 years.

In 1956, Arthur W. “Bill” Bailey, Jr., CIC, established an independent insurance agency in Texas: Bill Bailey Insurance Agency. In 1969, he was one of the individuals who joined Dr. Hold and the other founders of the CIC Program in making 30 RESOURCES | Spring 2019

practical and relevant education available to agents in the State of Texas. Bill Bailey served as one of the original members of the CIC Board of Governors, later served as Chairman, and unwaveringly supported The National Alliance

Wes, a tenured CIC, began his insurance career in 1978 and earned his CIC designation in 1980. Like his father, Wes has always been an enthusiastic proponent of the value of education. In fact, in addition to his agency responsibilities

viduals, having earned her designation in 2009—just shy of 40 years after her grandfather. She notes, “As we continue building our legacy, we’re still trying to do things better. It’s not just our legacy—it’s our future. What we do today

“…we rank in the top one percent of all independent insurance agencies in the United States based on the number of CICs on staff.”

Wes Bailey, CIC, Chairman, and Erin Bailey Simpson, CIC, Commercial Lines Manager, at Bailey Insurance & Risk Management; Inset: Wes’s father and Erin’s grandfather, Bill Bailey, Jr., CIC, Founder of Bill Bailey Insurance Agency.

throughout the remainder of his life.

Today, Bailey Insurance and Risk Management is ranked in the top five percent of all independent insurance agencies in the United States based on premium volume. At its helm is Wes Bailey, CIC, Chairman of the company and Bill’s son, aided by Erin Bailey Simpson, CIC, Commercial Lines Manager and Bill’s granddaughter.

and his many philanthropic activities, Wes is a member of the CIC National Faculty and teaches a business insurance class at Baylor University that incorporates the University Associate CIC (UACIC) Program.

As Wes says, “We believe we rank in the top one percent of all independent insurance agencies in the United States based on the number of CICs on staff.”

Erin is one of those indi-

determines every tomorrow, so we’re actively engaged every day—and every day we’re learning.”

The name of the company has changed to reflect an increased focus on risk management. The people have changed, but other things have not. As Wes says on the company website, “The two things that make our organization successful are the incredible quality and compassion of our staff and

Three Generations of CICs, Youngest CIC, Oldest CIC

…to Celebrate Your Legacy our never-ending pursuit to be better.”

To be better. That is why CIC was founded, and why it has grown, with Bill and Wes and Erin and each of you. The same passion that propels you toward excellence every day has propelled us to provide the best tools and education to each of you for all these years.

Young and Passionate

The passion for and commitment to excellence continues with The National Alliance’s youngest designee. Susan Cox Brown, CIC, CISR, is currently, having just turned 24, our youngest CIC. She is a Customer Service Representative with Alabama Municipal Insurance Corporation in Montgomery, Alabama. Just after high school, she began her career with the company as an Underwriting Clerk, as she says, “accidently, like so many insurance professionals before me.” Through the entry-level position, Susan discovered a passion for learning about insurance and helping people. She obtained her agent’s license in 2014. For the last two years, she has worked as a Customer Service Representative. She says, “Insurance often allows you the privilege of connecting on a personal level with clients during times when they need help most. I always do my best to be kind and inviting so that clients feel they can come to me for anything.”

achieved it. It was difficult for me to lose him at such a young age, but I’m grateful for the many vital skills he taught me to survive and thrive in this life without him.”

Legacy may not be something that many members of Generation Z think about at this point in their lives.

Susan, however, thinks of it in terms of the relationship she has with her clients and the sense of responsibility she feels “I hope to toward their leave a legacy continued success and of a hard work, wellbeing. “I kindness, and hope to leave a legacy of compassion.” hard work, Susan Cox Brown, CIC, CISR, learned from the kindness, legacy of her father’s work ethic. and compasprofessional I am today. sion. This is something I He demonstrated a strong cannot do without walking work ethic by providing by faith daily. In the career for my six siblings and me. field, I think someone who Unfortunately, he passed mentors coworkers, sharaway about 18 months ago. ing insurance knowledge, We had a special bond, and technical and otherwise, he was always so proud is creating a good legacy. every time I passed another There is a vast amount of CIC course. Before he died, learning still left for me I was just shy of my last to do, but I work with an CIC course. I was saddened incredible set of individuals that he was not here for the who are always willing to completion of my CIC desshare their expertise. I hope ignation in November 2017, to continue my education but I know he was smiling so that I may leave a lasting down from above when I impression on my company and clients.”

Susan continued her insurance learning path by achieving her CISR designation in 2015, and then set her sights on the CIC Program for more in-depth knowledge. “My dad played a major role in shaping me into the kind of worker and

This sense of responsibility to company, coworkers, and clients is something that does not seem to change from one generation of CICs to another. “I’m thankful for my company providing me with educational opportunities, and I look forward to gaining more knowledge in the years ahead, as I continue my education and career within the industry. I feel both honored and humbled to be the youngest CIC in The National Alliance family.”

Wisdom Born of Experience

At the age of 95, Donald E. Kanally, CIC, CPCU, known as “Dek,” is The National Alliance’s most senior CIC. He has lived and worked for much of his life in Port Allegany, Pennsylvania. Significant world events shaped Dek’s life and career. “Fairly early in my childhood, my family’s circumstances changed, and I wound up in the loving care of my aunt and uncle. My uncle had a local, independent insurance agency, which I would later join.”

The year Dek graduated from High School was 1941, a pivotal moment for the country. The attack on Pearl Harbor came on December 7th of that year, and Dek enlisted in the Marine Corps Reserves shortly after, entering a special Navy/ Marine Corps program called “V12” that allowed Spring 2019 | RESOURCES

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LEGACIES

him to continue his education. Eventually, he was assigned to the 6th Marine Division, 3rd Amphibious Force, after completing his undergraduate degree. He witnessed the signing of the surrender of the Empire of Japan on September 2, 1945. After discharge in 1946, Dek returned to the

cation, Dek enrolled in the Wharton School of Business and graduated with an MBA in insurance.

In 1948, Dek became a partner in the Fleming Agency. He married his wife, Ann, in 1949, and was called up to serve in the military again in 1950, this time during the Korean

“Treat [your clients] as if you would be seeing them at the game tomorrow night, or in the diner today at lunch.”

Dek Kanally at his 95th birthday lunch this past August in Port Allegany, PA; Inset: PFC Donald “Dek” Kanally in 1945.

States and began working in his uncle’s business—The George Fleming Insurance Agency.

“My uncle influenced me greatly, not only in my choice of career, but also in life. I still find myself talking to him when I see his picture on my desk. He had a strong will and a big heart. As I pursued my studies in insurance, my interest deepened, and it became clear that insurance would be my field,” Dek shares. A believer in the value of edu32

RESOURCES | Spring 2019

conflict. He left the Reserves after that assignment and returned home to his young wife and his position at the insurance agency. “Like a lot of people who served in the military at that time, I was eager to return home and start my civilian life, and to pursue our dreams.”

The Kanallys started a family and two sons were born in the mid-1950s. As a couple, they were committed to community service, and Ann became a teacher.

After his uncle’s death, Dek

became the sole proprietor of the agency.

Dek achieved his CIC in 1978. He says, “I wanted to gain more insurance knowledge and have more to offer my customers.” Dek sees his legacy in the service he provided to clients. He says, “I worked in the insurance industry as an independent agent, well before the advent of automation and the Internet. I know that these technological advances have changed the way that customers buy insurance and file claims, making things more efficient. But I’d like to think that my former insureds remember that time of personal service, when their agent was their only interface with their insurer…when they could drop into our office and talk about their options, ask questions about their claims, and feel that they had received caring, personal attention.”

I was surprised when I learned I was the most senior CIC. It’s bittersweet when you live long but outlive your friends. So I guess it’s like that with being the oldest CIC. I don’t feel it’s an achievement, but rather a pleasant consequence of living to an old age.”

Dek continues, “Given the many changes to the industry over the 30 years since I retired, I don’t feel like I have much advice for young agents today. But I do hope that they never forget that their most important job is to make sure that their customers are fairly and sufficiently insured,

and that they have a duty to help them in their time of need. Treat them as if you would be seeing them at the game tomorrow night, or in the diner today at lunch.”

Legacy Comes in Many Forms

A legacy can be seen in many ways. It can be seen in a family-owned independent insurance agency like Bill Bailey’s that continues in Wes and Erin and others. The business and the trusted knowledge it represents has stood the test of time. Legacy can be seen in the younger generation’s continued sense of responsibility to their clients and serving them with the best education possible, as Susan does. Legacy also can be seen in Dek and in his commitment to lifelong service, both locally and nationally.

These values ring down through the years and do not diminish.

More and more, credentials matter to the consumers of insurance products, and more and more they matter to the companies that contract with insurance agents. And the credentials matter to you because they represent practical learning you can depend on. The future never stands still, but we meet it most successfully with an unrelenting desire to be a little bit better at what we do every day.

Thanks to each of you—and your commitment—that is one thing that we don’t see changing any time soon—and we believe that is something that we should all celebrate! n

SEMINAR EXPERIENCE UPDATE AT A

d n id ten ca of pa t r rs s- o a ina ea ! y it ue h D s w Semwo ed t r S R GA to e c CI E p at M u d a rn up ea

CREATE YOUR OWN

James K. Ruble

Instructor-Led Online

Traditional Classroom

April 8–June 26, 2019

June 10–13, 2019 Lake Buena Vista (Orlando area), FL

July 15–September 23, 2019

October 21–24, 2019 Dallas, TX

October 7–December 17, 2019

Create your own seminar by choosing from more than a dozen four-hour topics presented over four days—design your own session schedule to fit your individual plans. Whether you attend your four 4-hour sessions (16 hours) in two days so you can sightsee and relax, or choose more than four topics (at no extra cost) and network with peers and experts—the choice is yours. Either way, classroom MEGA Seminars cover an exciting variety of topic selections.

This convenient online option offers eight topics to choose from! Select any four of the 4-hour topics to fit your individual interests. Your full attendance at those 16 hours will satisfy your annual update requirement. The Online MEGA combines the ease of online with the personal aspect of live, instructor-led webinar sessions. The flexibility of attending from your home or office (on computer, cell phone, or tablet) makes this a great new choice. Each four-hour topic is covered in two 2-hour webinars.

THENATIONALALLIANCE.COM

INNOVATION

IMAGINATION

INTEGRITY Spring 2019 | RESOURCES

33

INNOVATION

Fifty Years of

Continuing

Innovation

T

he arrival of Spring brings with it an air of excitement and the promise of change. The Spring of 2019 is particularly special to us because The National Alliance is celebrating its fiftieth anniversary of educating the insurance and risk management industry. We’re also excited about our newly appointed CEO, Will Hold, CRM, CISR. We’re energized by a renewed focus on our longheld values of innovation, imagination, and integrity; and we take pride in the ways those values continue to influence the curricula we create. We hope you will share in our excitement, because everything we design is done with you especially in mind!

First, you may notice our CIC institutes have been modified from 20 hours to 16. Why did we shorten the courses in our flagship program? We listened when you told us that the twoday format would better fit your business/life needs.

From our perspective, this was not a minor change.

Significant effort went into working through the issues related to subtracting valu-

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—and Counting

able hours from courses that were already materially dense.

To accomplish this objective, we leaned on our values of innovation, imagination, and integrity, as we collaborated with industry specialists to determine what material is most critical for the CIC courses and what material would best suit a specialty program.

Rest easy; we did not cram 20 hours of material into 16 hours! That would be unfair to those earning the designation and sitting for examinations, and it would not accomplish our objective of providing you with

the technical information with real-world examples.

For years, you expressed to us that one of the reasons you found National Alliance courses of great value was because of the real-life stories related by our faculty members. That is why we insist, and have always insisted, that our faculty members be industry practitioners. Additionally, as the industry continues to grow in complexity, we maintain that even more relevant examples are necessary to ensure that major program “takeaways” are achieved by participants and that vital distinctions are drawn

“One of the most beneficial enhancements across the board is the expanded emphasis on supporting the technical information with real-world examples.” the most practical and applicable materials. Strategically, we selected the best material for you based on its relevance to the important tasks you perform and the positions you fill at your agencies and companies.

One of the most beneficial enhancements across the board is the expanded emphasis on supporting

between closely-related concepts using pertinent real-world illustrations. We also think that these concrete examples from faculty experience are one of the most interesting aspects of course participation, and judging from your evaluation comments, you agree!

We have also changed the format of the learning

objectives in the curricula to better reflect our vision statement, “The National Alliance will be the indispensable, transformative learning resource for risk and insurance professionals through adaptive technology and practical instruction.” To be transformative, education must be on-target and applicable, and we have always tried to keep participants up-to-date with practical and relevant course materials. Our new learning objectives are focused more acutely than ever on the successful application of the information. As you work through your courses, the most productive thing you can do is to continually ask yourself, “How does this information impact the decisions I will make in my position?”

The act of imagining how the course materials and examples will change your responses to everyday office situations will transform you as it simultaneously informs you of new industry considerations, policy changes, and other important factors. By determining how this information will change the way you conduct business, you will be primed to make modifications in the things that you say and do once you return to the office. And what you say and do will be to the benefit of your clients, as well as to your agency or company.

We have also revised the notebooks and PowerPoint slides to support the curricula changes, and in

Dr. Deborah Davis, Ph.D., M.Ed., B.A., Head of Faculty and Curriculum Development

some courses these changes are quite substantial. As we receive your feedback going forward, additional modifications will be made to ensure that we are presenting the materials in the best way possible to facilitate learning. Another formatting change you may see is the introduction of QR codes and other links to media assets, such as videos, supplemental articles, and other course-related information.

Since this is an ongoing process, we are trying different innovative formats and ancillary materials, all based on best practices, to determine the “fit” that will be most valuable to you, depending on the course subject matter. It is here that we need your help and input. Your feedback is crucial for guiding our decisions moving forward.

We truly want to hear from you. We need to know what is working and what is not working and why. You will receive an electronic survey following the conclusion of each course you take, and we urge you to use it to provide us with a clear evaluation.

As our new faculty are trained to be more interactive and use scientifically-based techniques to heighten participant engagement, you may see some differences in the way materials are presented. As we move forward, we are working to incorporate additional opportunities for participants to interact with the course

Faculty member Geoff Gordon, CIC, CRM, CFP, introduces one of the “Knowledge Checks” used to reinforce strategic planning concepts at a CIC Agency Management Institute.

As you work through your courses, the most productive thing you can do is to continually ask yourself, “How does this information impact the decisions I will make in my position?” materials in a manner that reinforces learning. The evidence confirming that interactive exercises significantly increase retention is overwhelming, and we are more and more using activities, discussions, knowledge checks, and other innovative learning methodologies to enhance the curricula in a manner that is advantageous for you. Again, please let us know what works for you, or what suggestions you have for other ways to improve your learning experience.

Although many things are changing, one thing remains constant. The National Alliance’s commitment to providing you with the best educational experience is unwavering.

It is our desire to provide you with the tools and experiences that will take you to your next level, both personally and professionally. Our motto for our fiftieth year is, “Your Success is Our Future.” Your success is our top priority, now and always!

As we progress through 2019, we celebrate our commitment to each of you by actively continuing to innovate through the use of solid learning methodologies, providing you with the same transformative, practical, and relevant education that has been our hallmark for 50 years­—and counting! n

About Dr. Deborah Davis, Ph.D., M.Ed., B.A. “Dr. Deb” is the Head of Faculty and Curriculum Development at The National Alliance. With her background at Texas A&M Central Texas as an Associate Professor and Department of Curriculum and Instruction Chair, she brings talent and energy to the job, working with the Academic Development team to continue widening the scope and spectrum of our content and the ways in which we deliver it.

Spring 2019 | RESOURCES

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A Collection of Success Stories and Press Clippings from Around the World

IntheSpotlight Honoring Top-Rated IIABSC Instructor

IIABSC extends their heartfelt gratitude to one of their most popular and well-loved CE instructors, Mike DiMaina, CIC, CPCU. Mike retired at the end of 2018 after over 17 years of teaching for IIABSC. He instructed hundreds of seminars for IIABSC, including CISR courses, Errors & Omissions courses, and Associate in Insurance & Account Management (AIAM) courses. IIABSC Vice-President, Becky McCormack, CPCU, AAI, AINS, praised Mike for his hard work and dedication. “Mike was one of our best instructors and was always willing to help out whenever I needed him. The participants LOVED him and I know he will be greatly missed in the classroom.”

Mike was awarded a Chairman’s Citation from IIABSC, presented “In grateful recognition of outstanding dedication and service to IIABSC and its members, and your unparalleled commitment to delivering superior insurance education.” Past IIABSC Chairman of the Board, John T. “Tommy” Cook and Becky McCormack were in attendance to make the presentation.

Mike retired from his “day job” of AVP for Hub International Southeast Limited in Myrtle Beach in June 2012. He served actively with the IIAs of New York and South Carolina and was a cofounder and pastPresident of Independent Agents and Brokers of Horry Georgetown County. (IIABSC news release)

Beaman Selected to Speak

Ken Beaman, CIC, VP/Senior Business Development Executive with Marsh Private Client Services, was invited to speak at the March Luncheon meeting of the Society of Financial Service Professionals in Houston, TX. Ken has over 25 years of industry experience and shared his expertise with the group, presenting “An Overview of Homeowner, Auto, and Personal Liability.” (Society of FSP news release)

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Walters Recognized for Community Service

Mimosa Insurance, in Morganton, NC, is proud to have among its ranks a National Alliance designee­— Dalton Walters, CIC—who was named a “Trailblazer” by Business North Carolina magazine—one of 22 young professionals (under 40) across the state who are making a difference in their communities. Walters is highly active in his community, serving as President of the Western Piedmont Foundation, VP for Burke County Habitat for Humanity, and Treasurer of both the Morganton Rotary Club and the Burke Arts Council, in addition to serving on a number local committees. (morganton.com)

Bower Takes Directorship

Kristi Bower, CIC, CISR, recently rejoined the team at Arbury Insurance as the Director of New Business for their commercial lines department. She brings to the job twelve years of experience in the industry—five of which were with Arbury, working in personal lines. (ourmidland.com)

Delaney Helps Lead Development

Tyler Delaney, CIC, has been elected Vice-President of The Montana Ambassadors (MTA)—an organization that serves under the Office of the Governor and the Governor’s Office of Economic Development. Charged with finding ways to create positive economic impact, the MTA works toward providing mentorship, networking and outreach opportunities designed to help businesses locate, grow and succeed in Montana. Delaney is a partner at the First West Insurance Agency, has been a CIC since 1999, and specializes in commercial lines coverage. (bozemandailychronicle.com)

TheNationalAlliance.com

National Alliance Elects Board Officers and New Board Members The National Alliance has elected the following officers and new members to the Society of CIC and Society of CISR Board of Governors and The National Alliance Research Academy Board of Directors. Officers will serve a one-year term (2019–2020) and members will serve six-year terms (2019–2025).

Society of CIC Board of Governors

Chairman: Greg Massey, CIC, CRM, CPCU, ARM, CLCS, SVP/Head of Property & Casualty with Zurich Vice-Chairman: Jenny Bolt, CIC, VP of Sales with HUB International Mountain States, Ltd. Members-at-Large: Aimee Kilpatrick, CIC, SVP/ Director of Sales Development and Operations with BXS Insurance, and Phil Kramer, CIC, CPCU, VP of Sales and Marketing with Cincinnati Insurance Company Immediate Past-Chairman: Dino Gavanes, CIC New Board Members: Chris Kerr, CIC, CISR, Managing VP of MarketScout; Travis McDavid, CIC, VP at GSM Insurors; Gabe Portillo, CIC, President/ CEO of Berger Briggs Insurance & Risk Solutions; Karen Reynolds, CIC, VP of Operations at HUB International Insurance Services, Inc.; David Saldon, CIC, VP of Sales Development at INSURICA; Cole Tucker, Jr., CIC, CRM, LUTCF, President of TuckerFranklin Insurance Group, Inc.; and David Walker, CIC, CRM, ARM, AAI, LIC, CAWC, President of Hartland Insurance Agency Society of CISR Board of Governors

Chairman: Marilyn Williams, CIC, Commercial Lines Producer with McGriff Insurance Services Vice-Chairman: Jack Elliott, Jr., CIC, CISR, SVP Internal Audit with CRC Insurance Services, Inc.

Porpora Makes Partner

Michael Porpora, CIC, AAI, of Acrisure, LLC, has transitioned into a multi-faceted role as an Agency Partner within the company and its newly acquired Woodbridge, NJ-based agency partner, Marquis Professional Risk, where he will provide risk management and professional liability solutions for architects and engineers. He is also working with Acrisure’s Scirocco Financial Group, located in Eatontown, NJ, where he focuses on solutions for the franchise industry.

Secretary: Mary Russell, CIC, CISR, CPRIA, Chief of Administration with Higginbotham & Associates Treasurer: Sue Baillargeon, CIC, CISR, AIC, Consultant with The Main Street America Group Immediate Past-Chairman: Linda Luka, CISR, CPCU, AAI, AIS, CIIP, DAE, CLP, CPIA, Dynamics of Service Faculty The National Alliance Research Academy Board of Directors

Chairman: Victor Puleo, Ph.D., CIC, CFP®, Davey Chair of Risk Management & Insurance with Butler University, CIC National Faculty, CISR Faculty, Ruble Faculty, Ed Consultant, UACIC Professor Vice-Chairman: Kevin Ray, CIC, CPCU, AU, AINS, AIS, API, with Erie Insurance Group Members-at-Large: Cristina Pedraza-Martinez, J.D., CPA, CIC, SVP of Popular Insurance, LLC, CISR Faculty; and Bob Rogers, CLU, ChFC, President of Cedar Lake Consulting, CIC National Faculty, Ed Consultant, Ruble Faculty Immediate Past-Chairman: Ken Fields, MSM, CIC, CPCU, CLU, ChFC, Sales Development Director with State Auto Insurance Company, CIC National Faculty, Ruble Faculty New Board Members: Darryl Coleman, President of Coleman Search Group; Alivia Cooper, M.S., CIC, CRM, National Services Coordinator with Amerisure Insurance Company; Dr. William T. Hold, CIC, CPCU, CLU, President and cofounder of The National Alliance for Insurance Education & Research; Diane C. Masterson, CIC, CPCU, Regional Sales Manager with State Auto Insurance Company, Specialty Ruble Faculty; and David Medvidofsky, CIC, CRM, CPCU, ARM, AAI, SVP/Head of Human Resources with The Main Street America Group

Leicht Gets Elected

Matt Leicht, CIC, CPCU, Owner/ Underwriter at Craig & Leicht, in Houston, TX, was elected President of the Texas Surplus Lines Association during their 63rd annual meeting held in Austin in November. (InsRecord.com)

Have YOU been “IntheSpotlight”?

If you, or a fellow designee, has landed a promotion, won an award, or been honored in some fashion—don’t be shy! Let us help celebrate! (Can you say, “FREE publicity”?) To submit an item for editorial consideration, send biographical data and a color headshot photo to Becky at bkeeling@scic.com.

Spring 2019 | RESOURCES

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A Collection of Success Stories and Press Clippings from Around the World

IntheSpotlight Supporting the Industry with Education Scholarships

Ambers On the Move

“There’s so much talk about industry perpetuation,” said IA&B President and CEO Jason Earnest, Esq. “Awarding education scholarships is one way we can move the needle today to support the independent agency system of tomorrow.”

Ms. Ambers and two additional National Alliance designees— Nahua Maunakea, CIC, CRM, ARM, Director of Global Risk Management with IHS Markit and President of RIMS’ Rocky Mountain Chapter, and Craig Poulton, CIC, CPIA, CEO of Poulton Associates—were recently featured by Property Casualty 360 as “P&C Insurance Thought Leaders” and have joined National Underwriter Property & Casualty’s editorial advisory board. (propertycasualty360.com)

Insurance Agents & Brokers (IA&B) of Pennsylvania, Maryland, and Delaware recently launched an insurance education scholarship program, which includes annual scholarships for full CIC and CISR designations as well as individual CIC and CISR courses.

IA&B scholarships are available to individuals and member agencies and can be used toward designation, online CE, and pre-licensing education programs. Additional information is available at IABforME.com/about_us/scholarships. (iabforme.com)

Goucher Joins Cavignac

Brandon Goucher, CIC, CISR, AIS, was recently hired by Cavignac & Associates as an Account Manager within the company’s commercial department. A 15-year veteran of the industry, Goucher’s experience includes time as an Account Manager with BB&T Insurance Services of California and as an Account Manager for Partners of the West Insurance Services. (menafn.com)

Pembroke Gets Promotion

Nicholas (Nick) Pembroke, CIC, CISR, has been promoted to VicePresident of McClain Insurance, where he has worked since 2000.

Nick has earned the Five Star Home/Auto Insurance Agent Award and Safeco Personal Lines Achievement Award many times over and was also recognized with a Safeco Outstanding Agent Award in 2018. (myeverettnews.com)

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Kitty Ambers, CIC, CISR, CPIA, has joined insurtech firm, AVYST, as their new Chief Growth Officer.

She joins the AVYST team from NetVU, where she served as CEO. AVYST is a NetVU corporate partner, and Ambers will continue to provide guidance to the organization throughout the transition. Ms. Ambers is a retired CIC and CISR Faculty member. (insurancejournal.com)

Maunakea

Poulton

Aon Appoints deMayo

Miles deMayo, CRM, CISR, was recently appointed as a Business Development Executive for Aon’s Omaha, NE, office. He brings to Aon 20 years of Air Force leadership and aviation experience, as well as nine years’ experience as the Director of Risk Management for a petroleum company. (omaha.com)

Wright Joins Board

F. Christian Wright, CIC, CRM, President of Wright-Gardner Insurance, Inc., has joined the Board of Trustees of the Community Foundation of Washington County in Maryland.

The Foundation grants scholarships and supports philanthropic efforts with the goal of keeping their area a great place to live. (heraldmailmedia.org)

TheNationalAlliance.com

Task Force Taps Benner

Warren Weiss Agency, in Quakertown, PA, has announced that owner Brian Benner, CIC, has been appointed to the Erie Agents Advisory Task Force. The distinction recognizes only top-performing Erie agents by inviting them to participate as liaisons between the company and its agents. Benner, a third-generation owner who led the agency into its seventh decade in business, is one of just a handful of agents who will serve concurrently on the Task Force. Benner will serve on the advisory board for three years. (prweb.com)

Career Moves for Gordon and Davis

Two National Alliance designees have joined LincolnLeavitt Insurance, in Lakeport, CA. Tina Gordon, CIC, CISR, will focus on commercial insurance for the construction, manufacturing, retail and wholesale industries. Maria Davis, CISR, is an Account Manager and will service client accounts. (lakeconews.com)

Heald and Cray Become Regional Managers

The F.A. Peabody Company (FAPCO) has promoted two National Alliance designees to Regional Manager Heald positions. Troy Heald, CIC, AINS, of Caribou, ME, will manage the Northern Aroostook division and Mary Cray, CIC, of Mattawamkeag, will manage the Northern Penobscot division. (Mary was named Maine’s Outstanding CSR of the Year in 1996.)

Cray FAPCO believes a regional approach to management will help the company be more responsive to local needs, while leveraging technology will still allow them to take advantage of economies of scale. (fiddleheadfocus.com)

Linn For the Win Gordon

Davis

Derrick Linn, CIC, LUTCF, agent/coowner of Leavitt Heartland Insurance— Sturgis, was recently installed as President of the IIA of South Dakota for 2019. Linn has been serving on the Board of Directors in various leadership roles since 2013. His 15 years of experience in the industry will be valuable as he leads the Association consisting of 350 Trusted Choice agencies and branches with 1,400 employees located in nearly every community across the state of South Dakota.

Highly Engaged Students Attend Houston Insurance Day

Houston Insurance Day—February 20, 2019 • Houston, TX Pictured L to R: Priscilla Oehlert, CIC, CRM, ARM, Director­–Insurance & Risk Management Center, University of Houston-Downtown (UHD), UACRM Professor, National Alliance Faculty member, Ed Consultant; UHD students Hector Marquez, Ricardo Melchor, Cassandra Cadriel, Jose Salinas, Michelle Wilmot, Sean Barnett, and Megan Ceballos; Bob Rogers, CLU, ChFC, President of Cedar Lake Consulting, Academy Board member, CIC National Faculty, Ruble Faculty, Ed Consultant; Sabine Pass High School student Marissa Peltier, teachers Randa Hurtado and Ashleigh Deslatte, and students Keilani Becerra and Hacelyn Contreras

Spring 2019 | RESOURCES

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PRSRT STD U.S. Postage

PAID

Austin, TX Permit No. 93

Webinar Topics:

for Dues-Paid Designees

Let’s Talk Construction Risks & CGL Insurance Ensuring You Are Insuring the HO Property Exposure Correctly!

Becoming a Cyber Consultant The Cannabis Industry Meets The Insurance Industry: The Good, the Bad, and the Ugly Insuring Your Contractors’ Equipment Embracing Directors and Officers Liability Insurance and Understanding Claims Potential Foodborne Illness—Field to the Fork Did You Know That’s A Cyber Incident Too? The 2018 Personal Auto Policy Contractual Risk Transfer and Additional Insured Status: The Inmates are Running the Asylum Insuring Non Profits: An Agent’s Guide

To access this valuable content, go to scic.com, log in to your PROfile, and then click on “Dues-Paid Webinars” in the left-hand column.

We’re expanding our list of podcasts, as well, which are available to all on our website—at scic.com/resources—and also on iTunes and GooglePlay.

40 RESOURCES | Spring 2019

Hot topics in insurance and risk management Presented by subject experts Watch, listen, and learn at your convenience