Resources Magazine Spring 2002

Publisher William T. Hold, Ph.D., CIC, CPCU, CLU Managing Editor James R. Cuprisin, CIC, ARP jcuprisin@scic.com

CIC Editor Rodney R. Rezac, CIC, CPCU, ARM rrezac@scic.com

CISR Editor Mark J. Rolland, CIC, CISR mrolland@scic.com

CRM Editor Wayne P. Dauterive, CRM, ARM wdauterive@scic.com

Academy & NCIM Editor Jack Frick, CIC, AIS jfrick@scic.com

Contributing Writer Lonni Swanson Publications Art Director Becky Veach Contributing Designer Rhea Groepper Marketing Ken Wirtanen kwirtanen@scic.com Resources is published quarterly by The National Alliance for Insurance Education & Research, P.O. Box 27027, Austin, Texas 78755-2027, 512/345-7932, Fax: 512/343-2167, Internet: www.scic.com, E-mail: alliance@scic.com.At present, Resources is available to dues-paid Certified Insurance Counselors (CICs), Certified Insurance Service Representatives (CISRs), Certified Risk Managers (CRMs), and affiliates of The Academy of Producer Insurance Studies.

Entire contents Copyright © 2002, 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.

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in this issue…

From the President Two of the most difficult questions that CICs and others ask me are, “Bill, what’s new?” and “When will it be finished?” These are two difficult questions because new projects, services, or programs are not created on a daily basis and, in most instances, they take years to develop and implement.

Given the above, I am pleased to be able to review what’s new and finished. It is our collective hope that you will share our excitement and satisfaction as you read this issue of Resources.

• CIC Select – CIC Select is a cooperative effort of AIG, CIC, and MarketScout that is unique in the history of the insurance business. CIC Select represents the first time that an insurance company has recognized the value of a professional designation (CIC) in providing special markets and services. In addition, it is the only time that the world’s largest carrier (AIG) has reserved market capacity in a very restricted market for agents and practitioners, such as you. Lastly, CIC Select is the first time the entire submission, underwriting, and placement can be accomplished online through MarketScout.

• CIC Member Directory – A national online directory of the best agents and practitioners in the United States with your name, designations, and contact information is now complete. The CIC Directory will be widely promoted to allow other CICs and potential clients to more easily do business with you on a worldwide basis.

• The 25,000th CIC – This accomplishment—the designation of Mr. Christopher P. Kocher as the 25,000 th active CIC—took 33 years to complete! While more than 25,000 individuals have achieved the designation, we only count those who continue to meet the Society’s annual update requirement. This important and unique requirement is what places CICs in a very special class of insurance professionals.

• CISR OnLine – CISR is now the only national professional designation which is totally online. While this project took some two years to complete, there are now more than 600 online participants.

After all is said and done, I hope that I have given you a satisfactory answer to “Bill, what’s new?” Thank you for giving us the opportunity to answer this question and to continue to work with you.

President, the Society of CIC

Features 4

Adopting a New Policy for Business CGL 2001 Coverage Form

14

Arbitration of Disputes Heading Off Your Day in Court

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CSR/Producer Dynamics Sales and Service in Sync

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Who’s Concerned With Perpetuation?

Long-Term Planning Helps Everyone!

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Advise Your Clients!

Important Health Care News for 2002

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Crisis Management Preparing a Survival Kit

Departments 10

CISR – Celebrating 15 Years Timeline of the Journey

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CSRs’ Greatest Accomplishments Involve Helping Others 2001 Finalists Tell Their Stories

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Career Development For Claims Adjusters and Underwriters

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A High-Five to CRM The CRM Program Turns Five This Year

Alliance News 29

The Immediate Producer Training on the Fast Track — 2002 Producer Schools

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25,000th CIC Milestone Designation Awarded

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Only in Orlando A GEM of a MEGA Seminar

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In the News CICs Make Headlines

Web site: www.scic.com ◆ E-mail: alliance@scic.com ◆ Fax-on-Demand: 800/828-8454

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ver the past 15 years, changes to the Insurance Services Office (ISO) Commercial General Liability Coverage Form have occurred about every three years. These revisions have reflected changes in the legal climate and, in some cases, a need to clarify coverage intent. In the 2001 revisions to the CGL and its related forms, many of the changes have occurred to clarify intent or reflect the need for change due to changing technology issues. The primary areas of revision are as follows: ■

Integration of the mandatory amendatory Known Injury or Damage endorsement in the Insuring Agreement policy language

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Exclusion revisions that relate to negligent supervision and to property damage

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Addition of trusts and volunteer workers as automatic insureds

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Revisions due to the emergence of Internet liability

General Liability Coverage Form Changes Coverage A. Insuring Agreement has been revised In 1995, the California Supreme Court decided the Montrose case, which involved pollution exposure that caused damage over many years, and which involved many insurance policies. This pollution caused damage on a “daily” basis, and the insured knew of this injury or damage prior to the inception of the renewing or replacement policies. The court ruled that such knowledge did not defeat coverage, in direct conflict with a widely acknowledged legal principle — the “known loss” rule. Many insurance companies active in the construction field, especially in the western part of the United States, introduced their own endorsement to restrict the “continuous trigger” in situations where the insured had knowledge of injury or damage. In 1999, a mandatory endorsement was added to the CGL to address the coverage trigger. The endorsement used with the CGL is the Amendment of Insuring Agreement–Known Injury or Damage CG 00 57. The language of this endorsement has now been incorporated directly into the CGL. The CG 00 57 09 99 is withdrawn for policies issued under the 2001 revision.

Two Revised Coverage A Exclusions Due to an increasing number of negligent supervision claims involving the use of “autos,” exclusion g. Aircraft, Auto or Watercraft has had a paragraph added:

replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another’s property;...

This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by an insured, if the “occurrence” which caused the “bodily injury” or “property damage” involved the ownership, maintenance, use or entrustment to others of any aircraft, “auto” or watercraft that is owned or operated by or rented or loaned to any insured.

A Maryland Court of Special Appeals involving a condominium owner held that the insurance company was required to defend and indemnify a condominium owner as defendant in a suit brought by the condo association (Aetna Insurance Company v. Aaron, 112 Md. App. 472, 685 A.2d 858 [1996]). The association sued to recover costs to repair a glass enclosure in the insured’s condo to prevent further damage to a third party’s condo.

This revision is intended to forestall a demand on the CGL in a similar way.

This revision eliminated the question of coverage. In spite of ISO’s statement that this is a clarification of intent, realistically it should be called a reduction of coverage.

One section of exclusion j. Damage to Property has been changed. It involves exclusion j.1. “Property damage” to: (1) Property you own, rent, or occupy. …including any costs or expenses incurred by you, or any other person, organization or entity, for repair,

Several definitions have been revised Coverage Territory Item a. of the definition remains, a. The United States of America (including its territories and possessions), Puerto Rico and Canada.

Continued on page 6.

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General Liability Coverage Form Changes…continued.

In Item b., the “coverage territory” definition of international waters has been changed. The definition now reads: b. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in a. above.

Clients involved in shipping goods by water or air will need to review their exposures in this area. The prior forms referred to shipping to or from (the U.S., its territories and possessions, Puerto Rico, and Canada). The language has been clarified that the travel or transportation must be between those same described territories.

Due to the Internet’s ability to cross all national boundaries, ISO has found it appropriate to expand the worldwide section in the “coverage territory” definition to include some Internet activities. A subparagraph was added to the definition that specifically references “personal and advertising injury” offenses that occur through the Internet or other electronic means of communication. c. All other parts of the world if the injury or damage arises out of:...

(3) “personal and advertising injury” offenses that take place through the Internet or similar electronic means of communication.

As found in other worldwide coverage, the settlement of claims or decision of a court must be made within the United States, Puerto Rico, or Canada. Therefore, the need for international coverages will still exist for many insureds.

Property Damage The question of coverage for causing damage to data has been answered by a revised definition of “property damage”: For the purposes of this insurance, electronic data is not tangible property.

The new definition continues with an explanation of electronic data: As used in this definition, electronic data means information, facts, or programs stored as or on, created or used

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on, or transmitted to or from computer software, including systems and applications, software, hard or floppy disks, CD-ROM, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment.

An excluded loss example: The insured is accused of sending a virus to another party’s computer, causing damage or erasure of data. The change intends to clarify ISO’s position that the policy does not cover this type of loss.

Advertisement The definition of “advertisement” has been modified to include notices published on the Internet or by other electronic means and also clarifies that the coverage pertains only to advertising material, not to other material (such as articles or opinion letters). The definition now reads: For the purposes of this definition: a. Notices that are published include material placed on the Internet or on similar electronic means of communication, and b. Regarding Web sites, only that part of a Web site that is about your goods, products or services for the purposes of attracting customers or supporters is considered an advertisement.

This definition is important to the understanding of some of the new Coverage B– Personal and Advertising Injury Liability exclusions.

Personal and Advertising Injury The inclusion of e-mail and material on Web sites has resulted in a change in the definition of “personal and advertising injury” to expand the covered offenses. Since e-mail and material on Web sites have become a popular form of publication, the publication component of the definition of “personal and advertising injury” was updated to include the words “oral and written publication, in any manner.”

Section II Who Is An Insured has been expanded.

Trusts and their trustees (with respect to their duties as trustees) have been added

for coverage. Volunteer workers are also added as insureds, thereby eliminating the necessity to endorse the policy. The Medical Payments coverage language has also been revised to include coverage for volunteers.

There are several changes to Coverage B Personal and Advertising Injury There is a change with the criminal act exclusion as revised in 1998 and broadened to deny coverage for any “personal and advertising injury” arising out of a criminal act committed...by any insured.

The word “any” has been replaced by the word “the” — thus providing vicarious liability to other insureds not directly involved in the act.

Many of the changes address the increasing Internet liability exposures.

A major area of change is found in Coverage B Personal and Advertising Injury. ISO has revised the professional liability exclusion j. …pertaining to an insured whose business is advertising, broadcasting, publishing or telecasting to also apply to an insured whose business is designing or determining content of Web sites for others, or an Internet search, access, content or service provider.

A specific exception to this exclusion has been added to grant coverage to an insured that allows others to advertise on their Web site.

For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet is not, by itself, considered the business of advertising, broadcasting, publishing or telecasting.

Several new exclusions have been added to Coverage B Personal and Advertising Injury.

Insureds that host chatrooms or bulletin board services may find themselves without coverage due to exclusion k. Electronic Chatrooms or Bulletin Boards.

“Personal and advertising injury” arising out of an electronic chatroom or bulletin board the insured hosts, owns,

General Liability Coverage Form Changes…continued. or over which the insured exercised control.

An excluded loss example: A visitor to the Web site accesses the insured’s chatroom and places defamatory material on the chatroom page and causes the injured party to sue the insured.

The next new exclusion is exclusion i. Infringement of Copyright, Patent, Trademark or Trade Secret.

“Personal and advertising injury” arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual property rights.

However, this exclusion does not apply to infringement, in your “advertisement” of copyright, trade dress or slogan.

The intent of the exclusion exception is to provide the client with the original intent of the coverage and that is to cover losses arising solely out the act of “advertising.”

An excluded loss example: The insured hires a technology expert who uses copyrighted software without paying a licensing fee to the owner. The software rights owner sues the insured for infringement of copyright.

The final new exclusion is exclusion l. Unauthorized Use of Another’s Name or Product.

Arising out of the unauthorized use of another’s name or product in your e-mail address, domain name or metatag, or any other similar tactics to mislead another’s potential customers.

An excluded loss example: The insured uses a list of key words (metatags) that allow Internet users to identify the insured’s site. Included on that list is another company’s trade name. The company sues the insured for infringement of trade name.

New Coverage Endorsements There are five new coverage endorsements, as explained below: Employee Benefits Liability Coverage CG 04 35 The coverage is provided on a claims-made form and provides coverage for liability arising out of acts, errors or omissions negligently committed in the administration of an employee benefit program which results in loss of any or all of an employee’s benefits. The definition of “employee benefit program” includes group life, accident or health insurance; dental, vision, hearing plans; flexible spending accounts; profit-sharing plans; unemployment insurance; social security benefits; workers’ compensation and disability benefits; vacation plans; leave of absence programs; and any other designated benefits shown in the schedule.

Limited Products Withdrawal Expense Coverage CG 04 36 This endorsement provides coverage for certain costs incurred to recall or with-

draw the named insured’s product or products containing the named insured’s products from the market or from use by any person or organization due to a known or suspected “defect” or a known or suspected “product tampering” which has caused or is reasonably expected to cause “bodily injury” or physical injury to tangible property. This endorsement responds when the insured has announced a decision to conduct a “product withdrawal.”

The determination to withdraw the product may be made by the named insured or by a third party or governmental agency.

Covered costs include: notification costs; costs of stationery, announcements, and postage; overtime expenses; computer time; additional staff costs; shipping, packaging, and warehouse costs; and disposal costs. No coverage applies for cost to replace, lost profits, product failure to perform, deterioration of product or expiration of shelf life, known defects in the product, recall of products banned by government prior to the policy and lastly,

no defense coverage for “suit” against the insured.

Amendment of Coverage Territory– Worldwide Coverage CG 24 22 This endorsement provides true worldwide coverage.

Amendment of Coverage Territory– Additional Scheduled Countries CG 24 23 This endorsement schedules countries in addition to the existing policy coverage territory.

Amendment of Coverage Territory– Worldwide Coverage With Specified Exceptions CG 24 24 This endorsement is the opposite of CG 24 23. The CGL responds worldwide except in the countries specified in the endorsement.

All three of the above endorsements state that if the insurance company is responding in a country where precluded by law, the policy will indemnify the insured. All damages are to be paid in U.S. currency.

New Exclusionary Endorsements There are several new exclusionary endorsements, which are explained below.

Damage to Your Work Exclusions The rapid rise in construction defects claims has caused some significant changes

in the writing of CGL coverage for the construction industry. One insurance carrier had 327 construction defect claims in 1999 and over 5,000 in 2000. The CGL excludes coverage for “damage to your work.” This exposure was not intended

to be covered under the CGL, since by its nature it is considered a business risk. One exception to the “damage to your work” exclusion exists for damaged work resulting from work performed by a subconContinued on page 8.

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New Exclusionary Endorsements…continued. tractor who is working on the behalf of the named insured. This exception, in some cases, can extend coverage for construction defects arising from work performed by the named insured’s subcontractors. Two optional endorsements that ISO has introduced will allow insurers to underwrite contractors who use subcontractors and will exclude or restrict coverage in this area. These endorsements are: Exclusion–Damage to Work Performed by Subcontractors on Your Behalf CG 22 94 By means of an exception to exclusion l.

Damage to Your Work Under Coverage A, the policy provides coverage for suits brought against the named insured for damage to the named insured’s work, other contractor’s work, and other subcontractor’s work, if the loss or dam-

age arises out of a subcontractor’s work.

This is a blanket endorsement that deletes the subcontractor exception for all exposures.

Exclusion–Damage to Work Performed

by Subcontractors On Your Behalf– Designated Sites or Operations CG 22 95 This is a schedule endorsement that deletes the subcontractor exception as it relates to a particular subcontractor(s) at a specifically listed site(s) or operations.

Internet Professional Liability Exclusion Endorsements ISO has concluded that it is important to exclude professional liability coverage that may arise from the Internet industry. These two new endorsements exclude liability

due to the insured’s rendering or failure to provide Internet service or access, or Web site designer services.

Exclusion–Internet Service Providers And Internet Access Providers Errors and Omissions CG 22 98 This endorsement excludes coverage for injury or damage from rendering or failure to render Internet service or access that is provided by or on behalf of any insured.

Professional Liability Exclusion–Web Site Designers CG 22 99 This endorsement excludes coverage for injury or damage arising from the rendering or failure to render Web site designer or consultant services by the insured or anyone for whom the insured has legal responsibility.

New Additional Insured Endorsements Additional Insured Endorsements For Grantor of Licenses

grantor of the license must be named in the Schedule of the endorsement.

Due to a number of requests by agents’ groups, ISO has introduced additional insured endorsements granting automatic insured status to a person or organization who grants licenses. An example of this grantor would be: NFL Properties issues Nike a license to use various team logos and team colors on products made. The licensor may be contractually imposed to be named as additional insureds on the licensee policy. The following are the new endorsements:

Rating note: there will be no additional charge for these endorsements.

Additional Insured–Grantor of Licenses– Automatic Status When Required by Licensor CG 20 35 Automatic status is provided for grantors of licenses if such additional insured arrangement is required by contract. Therefore, this is considered blanket additional insured coverage. The insured status only exists for the term of the licensing agreement.

Additional Insured–Grantor of Licenses CG 20 36 This endorsement is different than the one above in that it requires that the specific

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Additional Insured Endorsements— Completed Operations Frequently, owners, lessees, and contractors have insisted that they be added to an insured contractor’s or insured subcontractor’s CGL policy when no contractual liability is provided to the named insured by the same CGL carrier. This could be accomplished by the addition of Additional Insured–Owners, Lessees or Contractors–Scheduled Person or Organization CG 20 10 or Additional Insured– Owners, Lessees, Contractors–Automatic Status When Required in Construction Agreement with You CG 20 33. This was not satisfactory to many additional insureds, because beginning in 1993 the endorsement CG 20 10 was revised so that the term “your work” was replaced with your “ongoing operations.” Since the term “your work” was associated with completed operations, its replacement by “ongoing operations” effectively eliminated completed operations coverage for those

additional insureds included within the endorsement. This caused a dilemma since many construction agreements or contracts required that “completed operations” be included within the CGL coverage. The only way to resolve this was the use of older version Additional Insured–Owners, Lessees or Contractors (Form B) CG 20 10 11 85 or some manuscript endorsement. These are not readily available to most insureds and less available in a “hardening” market.

ISO has introduced a new endorsement, Additional Insured–Owners, Lessees Or Contractors–Completed Operations CG 20 37, whose title connotes completed operations coverage for a specified additional insured. Also, ISO revised: Additional Insured–Owners, Lessees or Contractors–Scheduled Person or Organization CG 20 10 and Additional Insured–Owners, Lessees Or Contractors–Automatic Status When Required In Construction Agreement With You CG 20 33 so as to specifically exclude completed operations coverage for an additional insured. Although the CG 20 37 broadens coverage, many insurers may be reluctant to issue this endorsement with escalating construction exposures.

Status of CGL Changes The majority of states have adopted these CGL changes for policies written as of December 1, 2001. See the chart to the right for status of approvals.

Marjorie L. Segale, CIC, CISR, RPLU, ACSR Marjorie Segale began her insurance career as a commercial lines manager and producer, and formed her own insurance agency a few years later. After the sale of her agency, Marjorie joined the teaching staff of Insurance Skills Center, Inc., located in Huntington Beach, California and holds the position of Director of Education. Marjorie is a national faculty member for the CIC Program and also provides expert witness and consulting services for a variety of insurance issues.

The approval status of the new 2001 Commercial General Liability Form, for each state, is shown below. Most states have approved the form with a 12/01 (December 2001) effective date. Four states have approval pending on the new form and are continuing to use the ’98 form, as indicated. Three other states are continuing to use the ’96 or ’98 edition of the form, and have no pending action on the 2001 edition.

To Hear the Author…

Marjorie will teach at the following James K. Ruble Seminars: Large Commercial May 1-3 • Pontiac, MI Graduate Seminar May 15-17 • Branson, MO Marjorie will also teach at the following CIC institute: Commercial Property July 17-19 • Federal Way, WA

Learn More About this Topic from The National Alliance For in-depth understanding and discussion of the CGL policy, attend a CIC Commercial Casualty Institute or a CISR Insuring Commercial Casualty Course.

The CGL is often a topic at James K. Ruble Graduate Seminars, an excellent source of information for dues-paid CICs and CRMs. ■

CLARIFICATION: In the Fall/Winter issue of Resources, we stated that IRMI stands for the Insurance and Risk Management Institute, Inc. The correct name is International Risk Management Institute, Inc. Keep in mind that new CICs can receive their newsletters and reciprocal links are established on both of our Web sites — IRMI’s (www.irmi.com) and The National Alliance’s (www.scic.com).

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n this Olympic year and season, the CISR Program begins its 15th year of service to the insurance industry. For 15 years, CISR has been helping people create success. For 15 years, CISR has trained insurance professionals to be the best they can be. Let’s celebrate this 15-year history together in 2002!

The drive to succeed is deeply ingrained in the American character. It means more than just wanting to get by. It means wanting to get ahead. At CISR, we understand this determination to succeed. It has guided our programs for these past 15 years, in the midst of growing competition, downsizing, and upsizing. At the Society of CISR, we strive to make ourselves as valuable to our customers as they are to us — past, present, and future.

It’s been a great 15 years...and we’re looking forward to the challenges and events of the next 15.

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The CISR Management Team (clockwise, from left): Paula Cook, Vice President, Director of Operations; Mark Rolland, President, Chief Operating Officer; William Hold, President, Society of CIC; Danielle Janecka, Assistant Vice President, National Program Director.

A little history...

In 1986, a small group of Kansas CICs recognized that a need existed within the industry for more specific, intermediatelevel training for customer service representatives. This group of forward-thinking educators developed curricula, trained speakers, and launched a limited customer service training program in just three states: Kansas, Missouri, and Michigan.

The magnitude of their undertaking soon became evident, as interest in the program spread, and one state after another adopted their program. The program was christened the Certified Insurance Service Representatives Program (or CISR).

dustry as the go-to source for both agency and company professionals.

Throughout the years, along the way, the CISR Program’s progress has been marked by a series of significant milestones: The Advanced Lecture Series (ALS), designed for CISR designees, took knowledge on specialized topics to the next level beginning in 1990; the highest honor for insurance customer service providers, the

CISR OnLine On the cusp of the new century, the Society of CISR took on a groundbreaking task with the introduction of the Web-based training program, CISR OnLine. Between 2000 and 2002, this landmark program has made it possible for anyone, anytime, anywhere to get a high-quality education and earn the CISR designation simultaneously. Today, all five CISR courses, along with online, proctored examinations, can be accessed in an easy-to-navigate format, and students can take this self-paced learning experience to their workplace and into a rewarding career with limitless potential.

In-House Training

A year later, the founders of the new CISR Program signed a contract transferring the responsibility for the conduct of the program to the Society of Certified Insurance Counselors, an industry stalwart with the reputation, resources, and experience to see the program to full fruition.

In the past three years, the CISR Program has flourished in another important industry niche: home-based programs for large agencies and insurance compaIn this 1987 photo, Society of CIC President William Hold accepts nies. The popularity of in-house responsibility for the conduct of the CISR Program from CISR cofounders programs is due to their inherent flexibility, since individual orgaIla Fritzler and Rodney Rezac. nizations can define which areas Outstanding CSR of the Year Award, be- to emphasize and an entire staff can be came a reality in 1991; the one-day Dy- trained concurrently and consistently.

By 1996, the growth and momentum of namics of Service Program was introduced the CISR Program resulted in expansion in 1994 and quickly became a word-of- Today, with almost 1,500 courses connationwide, with programs in all 50 states mouth success, as participants learned in- ducted per year, over 33,000 annual atand Puerto Rico. Another 1996 milestone: surance-specific customer service skills and tendees, and more than 16,000 designees, the CISR Program became the only CSR to improve retention percentages while de- the CISR Program leads all other CSR proeducation program national in scope, and creasing loss ratios for agencies and com- grams in the country as the popular choice was now recognized throughout the infor advanced insurance education. â– panies everywhere.

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or the 2001 National Outstanding CSR of the Year Award competition, nominees were asked to write an essay on “My Greatest Accomplishment as a CSR.” While the responses were good and varied, the top essays all mentioned helping others — particularly their clients, but also insurance company personnel and coworkers.

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vice an account without the involvement of an account executive, from the first contact regarding renewal all the way through the marketing process and final placement of coverage. The newly assigned account executive thanked me for the work I had done on the account while he was out of the country.

We have included excerpts from the essays of the four finalists for the 2001 National Outstanding CSR of the Year Award here. The Society of CISR and the entire National Alliance salute these individuals for providing top service for their customers and contributing to the overall positive health of the insurance industry. As the essay excerpts demonstrate, commitment, continued learning, and a willingness to help others are the common denominators in their success stories.

One significant achievement was when I met a stranger at a pollution seminar and we talked about insurance education opportunities at Houston Community College. It turned out she had taken classes and only needed two or three more classes in order to complete the education program. We ended up in the same classes and were asked to join the Phi Theta Kappa Honor Society. We graduated together that year as the only two people in Houston to receive the Certificate in Insurance and Risk Management.

L. Joyce Jordan, CISR, AIS

In the past, I have had the opportunity to explain insurance terms, definitions, and coverages to people starting their careers as assistants to client service representatives and I enjoy teaching insurance and relating it to everyday life.

In conclusion, my accomplishments as a CSR are memorable and made great because of the level of professionalism in all the people involved in the insurance process. Therefore, one greatest accomplishment is difficult to define.

Willis Energy, Inc. Houston, Texas My greatest accomplishment as a CSR is to do a good job every day in order to make my clients comfortable in their choice of risk management decisions, whether it is insurance or any other risk management technique. To be able to provide a professional level of expertise in servicing their accounts and taking care of any emergency needs they may have is enough accomplishment for me. I try to make sure their questions are answered and follow up to make sure their concerns are being met.

Recently I received a call from a client who wanted to thank me for the level of service after we placed his insurance program renewal and for being “up front” in conveying information to his corporation. It was rewarding for me to have a busy executive take the time to telephone me.

I have also been fortunate in recently being given the opportunity to ser1212 Resources ResourcesSpring Spring 2002 2002

Patricia Koonce, CIC, CISR, CPIW Holmes Murphy & Associates, Inc. Omaha, Nebraska Like most of my colleagues, I did not choose insurance as a profession. I was 20 years old and in a new town. Fortunately, there were jobs to be found and I was placed in the file room of an insurance company. Once my math aptitude was discovered, I moved into the accounting department. The next three years I worked my way through policy typing, personal lines rating, underwriting, and commercial lines rating. Little did I realize this education was setting the groundwork for the next 20 years.

Part of the allure and challenge of insurance is the ever-changing nature of this industry. Policy rules change, courts redefine our policies, and our clients’ needs change. As a CSR, it is essential that I continue to educate myself. The many educational avenues available include knowledge gained through practical applica-

tion, never being afraid to ask questions, networking, research, reading newspapers and insurance periodicals, and Internet sources. And, of course, there are continuing education classes. I consider it a great opportunity to participate in the CISR and CIC Programs. These programs gave me a confidence in my knowledge of insurance and are an integral part of my job.

I have been able to draw from my background and past training to offer my clients a complete package, with knowledge in so many facets of our industry. I also learned that listening to clients plays a significant role in our occupation. It has enabled me to provide levels of customer service above the conventional service levels.

What does all this have to do with my greatest accomplishment as a CSR? There is not one specific incident that I can pinpoint as my greatest accomplishment. It is because of a combination of my educational processes and listening skills that I can offer my clients what I consider “outrageously great customer service!” I strive to provide this level of service because most insurance policies can be purchased elsewhere for the same premium.

What sets me apart from the insurance agent down the street?

Service. That is my goal, and I approach the needs of my clients with the education and experience from my past, the enthusiasm and skills of the present, and the expectations and vision of the future.

Glyda Meredith Senn Dunn Marsh Roland Insurors Greensboro, North Carolina I started in the insurance industry 23 years ago. Shortly after that time, an elderly couple came into the office to report their home had burned during the night. I was new to the business and just happened to be the only person in the office. I took down their information, but basically, they lost everything. I sat there fighting tears as my heart broke for them, thinking in the back of my mind, “What do I do?” I took a deep breath and said, “Let me call the company and see if they will help.”

I explained how difficult things were to the adjuster and asked if we could help them. Well, they agreed! I was so excited because they said to write a check for the limit of $2,500. This gave them a temporary place to live and a start. They left my office in tears of joy; I knew then that I wanted to be in the insurance business to serve others in times of need.

That day was a great accomplishment, but it has taken years to develop the knowledge to handle the daily needs of our clients. I feel that when our clients call with questions, I can help them with confidence. Our clients know we will take care of it. I strive to be that assuring voice on the other end of the phone when they call with their questions. I know I may not have all the answers immediately, but I know where to find the answers.

My greatest accomplishment is to hear that our customers know that I will take care of their needs. To provide the answers and knowledge on a daily basis, and earn the appreciation from our customers, is my greatest accomplishment.

Sandra R. Phillips, CIC, CISR, CPIW Thames, Batre’, Mattei, Beville & Ison Mobile, Alabama Faith is defined as a “confident belief in the truth, value, or trustworthiness of a person, idea, or thing.” I have adopted this philosophy as the foundation of my daily attitude. The confidence of knowing and believing in your products, being truthful in all things, realizing the value of colleagues and clients, and trusting in those principles is the journey to success.

Today’s CSR has to be flexible, continuing to find new avenues in the marketplace, gaining sources of information, being Internet adept, embracing personnel and procedural changes, and always finding ways to tailor programs to meet the client’s needs.

We act on building relationships instead of just giving service, taking our role as stewards of premium dollars seriously, applying risk management tools year-round, evolving in our knowledge, and pointing out potential losses in today’s litigious “hot spots.” The industry in which we navigate can be filled with unfair competition, ever-changing reductions in coverage, and new exposures such as e-commerce and environmental issues.

All of these changes can be demanding, but the rewards are great.

Whether it is finding an obscure coverage, assisting estimators in establishing rates for contracting bids, or seeing a new program implemented for people with disabilities, I am continually on the learning curve. Motivation comes from a wealth of sources, but primarily from involvement in NAIW and community activities.

We must live balanced lives to stay fresh and energetic, find humor where little exists, and raise our own standard of excellence. The outcome of these is a renewed awareness of our effect on those around us and an increasing passion for our life’s work.

Giving back to your clients and community reaps rewards tenfold. You receive much more than you give in the personal fulfillment of a job well done, knowing in some small part you have made their tasks a bit easier.

In summary, my greatest accomplishment as a CSR is the ability to step out of my comfort zone with my eyes forward and my ears open; always keeping the faith. ■

ResourcesSpring Spring 2002 1313 Resources 2002

n today’s litigious, media-intense times, the economic risk of negative publicity and loss of clientele is a significant concern for every professional enterprise. This holds true for all professionals whether they be doctors, accountants, insurance agents, lawyers, engineers, consultants, dentists, professors, realtors, or architects. Because those seeking professional services can compare and “shop” even on the Internet, competition for clients and patients is more intense than ever.

This trend makes safeguarding a practice’s professional reputation for expertise and good judgment of paramount importance. A good public image is difficult to earn and easy to lose.

One of the first sexual harassment suits in New Hampshire was brought by a female architect who was fired after she rebuffed the company president’s romantic advances. Engineers and accountants have claimed retaliation after they objected to their employer’s skirting safety or tax regulations. Discrimination charges by college professors contesting denial of tenure are becoming more frequent. Non-competition

members did not want publicized in court or the newspapers.

litigation between medical, accounting, and veterinary groups and their former professional colleagues is now commonplace. A major, big-city law firm was prominently featured in the national press when a legal secretary sued a partner alleging that he had sexually harassed her for years, and a jury agreed.

mind, it is not that difficult to do and well worth the effort.

There is another way to resolve such disputes — arbitration. In arbitration, the issues can be decided promptly, costs can be controlled, and other undesirable side effects, such as negative publicity, can be avoided. While an agreement to arbitrate professional firm disputes must be implemented carefully with applicable laws in

Historically, disputes within a professional practice were resolved privately. When that failed, the practice typically dissolved with members opening their own offices. Until recently, staff would not dream of suing the professional group where they worked. That has all changed.

Professional firms are growing larger and operating out of multiple locations (some partners in large national law and accounting firms have never met). Size can lead to a diminished sense of loyalty to the enterprise and a willingness to challenge its authority. Numerous laws now guarantee the right to contest virtually any adverse employment decision. For example, a dental hygienist, secretary, or bookkeeper let go after telling her boss she is pregnant has a state agency, a federal agency, and the courts available to hear her discrimination case—and plenty of attorneys eager to litigate it.

A professional group’s vulnerability to employment-based litigation is not limited to claims by administrative or support staff.

The professionals (doctors, lawyers, etc.) at an incorporated professional association are themselves employees who can and do take advantage of the same statutes even if they are part owners. No less an authority than the United States Supreme Court has ruled that even a law firm partnership decision can be challenged under the employment discrimination laws.

1414 Resources 2002 ResourcesSpring Spring 2002

The author has frequently represented members of practices and professional entities in employment matters in the fields of accounting, law, medicine, engineering, and higher education. Virtually every situation involved allegations, facts, and financial information that the firm and its

A shareholder, partner, or employee suit is a stressful event for any business. It contributes nothing to the bottom line even if the firm prevails. Such cases hit a professional practice even harder when its internal decisions are challenged publicly as the “product” for sale is its professional service, judgment, and advice, not a lawnmower or a hamburger. A professional’s time is his or her stock in trade.

Lots of it will be gobbled up defending a claim in court and dealing with the attendant negative publicity.

The hearing and decision in an arbitration often occur within six months or less.

■

Court discovery is very broad and much sensitive information can become known. Arbitration offers streamlined discovery generally supervised by the arbitrator who will limit it to what is really pertinent to the issues.

Judicial review of an arbitration decision is very limited. As long as the arbitrator acts within authority, (under New Hampshire law) a judge can only set aside the ruling for fraud, corruption, or misconduct. The courts have ruled that if an employee’s substantive claims can be advanced, the arbitrator neutral, and the proceedings fair, the arbitration decision must stand. For this reason most cases are never appealed.

This saves time and money.

■

In court litigation, professional firms should expect their fee structure, profits, client identities, personnel policies, past personnel problems, and even malpractice claims or professional conduct complaints to become fodder for a courtroom and media audience. Any medical provider, architect, insurance agent, lawyer, or accountant can easily imagine the harm that may result from such disclosure.

An agreement to arbitrate claims can do much to minimize publicity and other potential negative impact of court litigation.

It may also keep the cost of settling a case down, as plaintiffs’ lawyers know that an employer will oftentimes pay a high premium to keep certain kinds of cases out of the public eye. While arbitration is not a new vehicle for dispute resolution, for decades it was unclear whether it would be upheld in the employment context. In recent decisions, the Supreme Court of the United States has left no doubt that the law favors arbitration and that when a valid arbitration provision is in place, employees and shareholders must arbitrate even statutory claims such as for discrimination or overtime pay. (Mandatory arbitration of client or patient complaints may well raise ethical issues and is beyond the scope of this article.)

Since actions speak louder than words, I note that our law firm has included arbitration clauses in our shareholder and employment agreements for at least 15 years.

While we have never had to invoke those provisions, we all take comfort in their existence. A few reasons why: ■

Court cases and appeals can drag on for years. Arbitration moves much faster.

■

■

■

Unless agreed otherwise, the proceedings are private and conducted without public or press at a mutually agreeable time and location. The parties customarily share the expenses, but other arrangements as to costs may be appropriate and should be explored with counsel drafting your arbitration clause.

The parties have a major say as to who the arbitrator conducting the hearing and making the rulings will be. Court cases are assigned randomly with judges subject to change as the case proceeds. Parties to an agreement to arbitrate often agree in advance on a specific arbitrator or the selection process to be followed.

Our law firm agreement calls for an attorney arbitrator and specifies the American Arbitration Association’s rules for selection and hearing procedures. The parties can choose an arbitrator who is familiar with their profession and/or the kinds of issues presented. Such flexibility is simply not available in the judicial system.

There is no jury in arbitration; the arbitrator decides factual, legal, and credibility issues rendering a written ruling on the case if the parties desire. Many believe that complex contract, shareholder, and discrimination claims are not well

suited for juries and an excessively high verdict is less likely from an arbitrator.

There are various options available for implementing an arbitration program for a professional practice. As always, get good legal advice and follow it so your procedures will hold up if challenged. Professional service firms should not miss the opportunity to take advantage of the recent legal developments favoring arbitration to avoid the many risks of court litigation.

Edward E. Shumaker, III Edward E. (Terry) Shumaker, a past president of his law firm, Gallagher, Callahan & Gartrell, P.A., has drafted many employment agreements and tried over 100 arbitration cases. He is an American Arbitration Association approved panel arbitrator for commercial and employment disputes and was recently appointed to chair a Subcommittee of the American Bar Association’s Dispute Resolution Section. He has practiced law in New Hampshire and Massachusetts for 25 years. ■

Another Resource from The Academy of Producer Insurance Studies The Academy of Producer Insurance Studies has published a study on a related subject titled, The Three Faces of Executive Liability: D&O, EPL, and Fiduciary Exposures and Coverages. The study is available for purchase for $25 + $3.00 shipping and handling. To order or obtain more information, call or visit our Web site.

800/526-2777 www.scic.com ResourcesSpring Spring 2002 1515 Resources 2002

lients rely on customer service representatives (CSRs) and insurance sales professionals (producers) for insurance solutions, responsive service, and outstanding value for every premium dollar spent. Agencies count on CSR and producer harmony to ensure long-term client relationships and continued premium income. CSR/producer teamwork is crucial to customer satisfaction and agency profitability. Listen in as Annette and Ed share their experiences as a CSR/producer team.

Trust Annette: Just think of us Ed. We were two professionals with strong personalities and very clear ideas about how to work with insurance customers. We can say proudly, our relationship lasted and we did it!

Ed: You’re right. We succeeded because we were determined to make the team approach work for the good of our clients, agency, and ourselves. Annette, what do you think is needed to form a strong CSR/ producer team?

Annette: When it comes to building a successful team, the core issue is trust. Trust is not always easy to develop and can’t simply be ordered to happen. Yet, working together over a period of time, we learned to depend on each other as sales and service professionals. I can think of several ways my trust in you formed. First of all, your word was your bond. You stood by your commitments and didn’t promise clients more than WE could deliver. You always took responsibility for your actions by never making me the “fall guy” if something went wrong.

Ed: I agree with you about trust. For me, trust means being able to turn over a new client to you with confidence. When introducing the service team to a new account, many producers worry customers

1616 Resources ResourcesSpring Spring 2002 2002

feel passed off or shuffled along — never to be seen again after the down-payment check has cleared. You helped me understand this is the perfect time to train clients to call you or your CSR team when service is needed. How many times have we seen producers plunge headfirst into routine service problems only to mess things up? When there is trust between a CSR and a producer, handing off a new client to the service team is no problem.

New clients are served best when CSRs professionally manage their accounts. Producers who trust CSRs have more time to do what they are hired to do — sell! As a producer, I could depend on you to do whatever it took to provide the highest quality customer service. You were always there for my clients and me. That’s why I had a high degree of trust in you.

Support Annette: For a CSR, a producer’s support is extremely important. To do a good job, CSRs count on timely and complete information from producers. Support also means being kept in the information loop when problems or changes occur with customers. Producers who help when asked and say “Thanks!” to a CSR for a job well done are greatly appreciated.

Ed: I believe support is extremely important to the success of a CSR/producer team as well. You’ve heard me tell my clients, “I make the promises and someone else back at the office keeps them.”

That someone else was you working behind the scenes. By knowing the technical side of claims handling, risk management, and policy language...

Annette: Don’t forget billing.

Ed: ...and the technicalities of billing, you and your CSR team solved my clients’ problems. That made me and the agency look good. Not worrying about

customer service issues gave me the freedom to get out and sell. Now, that’s what good CSR support means to me.

Help Me Sell Annette: I agree, Ed. Your job was not to take up space in the office. Your job was to hit the streets, qualify prospects to become clients, and sell! Those were the things you did best. My job was to make sure customers were well served. That’s what I did best.

Ed: Few things distract a producer from selling more than lingering over new ac-

counts. By working together, we quickly moved new clients from the conclusion of a successful sales process to the beginning of a supportive service experience. And, by the way, you helped me sell in other ways as well.

Annette: What do you mean by that?

Ed: A couple of ways come to mind. First, you always looked for ways to cross-sell valuable coverage or increase policy limits to my clients. Rounding out accounts cements relationships. A customer who buys all their insurance from one source is much less likely to move. Second, you helped me sell by being an information source and sounding board for both insurance questions and sales strategies. I noted the types of problems you solved for your clients. Could the problems you solve be the same problems prospects have with their current agent? Of course! And, I knew you were there to help me strategize ways to provide better value to my prospects. Knowing the problems prospects face is important information. Helping me find more time to sell, cross-selling, and supporting me with your insurance expertise truly made me a more effective producer.

Help Me Serve Ed: What can producers do to help CSRs? Annette: When businesses have major changes, producers serve as a CSR’s eyes and ears. Build up the role of CSRs as part of the solution to the client’s problems. That’s the best way for CSRs to build trust with customers. When appropriate, arrange to bring a CSR to meet key employees of your customer. Better yet, bring the client to the insurance office to meet members of the agency team.

Mutual Respect Annette: Ed, as a producer, what advice would you give to CSRs? Ed: I see CSRs growing as insurance professionals by earning their CISR designation and taking Dynamics of Service.

A CSR’s value to producers, the agency,

and, most importantly, clients soars as a result. To stretch and grow by becoming a CIC or CRM fully prepares a CSR for the demands, changes, and challenges of the 21st century insurance arena.

Ed: What advice would you give producers, Annette?

Annette: A CSR is a peer, not “the girl” at the office. CSRs are professionals — period. At both Dynamics of Service and Dynamics of Selling, we teach to focus on the customer with respect and understanding. CSRs should be treated with the same respect and understanding.

Ed: Becoming a team wasn’t the easiest thing for us to do, was it?

Annette: Becoming an effective team took lots of work and understanding. Mutual respect was a great part of the process.

Yet, there were moments when we stepped on each other’s toes. I’m sure we lost patience with each other as well. Instead of drifting apart, we pulled together, learned each other’s peculiarities, and made our team successful! Producer productivity, CSR service effectiveness, agency profits, and many longtime customers were the results of our teamwork.

The Win-Win-Win Conclusion You can debate whether sales or service is more important, but agree that effective CSR/producer teamwork is most vital. By making an ordinary experience into an extraordinary one, a “win-win-win” situation is created. Customers win because they have the best combination of responsible insurance coverage and superior service. That means excellent value.

Insurance companies and agencies win because they write and keep profitable business. CSRs and producers win because they are successful whenever customers Continued on next page.

Resources 2002 ResourcesSpring Spring 2002 1717

Continued from previous page. and agency principals are happy. Trust, support, and respect are the foundation for effective CSR/producer dynamics. The results are higher sales, better-served customers, and greater agency profits.

The Authors Annette Jackson, CIC, ARM, and Ed Lamont, CIC, bring their experience and unique perspectives to the forefront in this article. Both are instructors for The National Alliance.

Annette teaches CISR courses and Advanced Lecture Series and leads Dynamics of Service programs. Ed leads Dynamics of Selling, teaches at James K. Ruble Seminars, and is the national sales coach for the Chubb/National Alliance Producer School. Annette and Ed also have real-life experience with the dynamics of CSR/producer relationships. They’ve worked as a CSR/producer team for many years at Burke, Bogart and Brownell — an independent insurance agency in Boca Raton, Florida.

T rust is the basis for any relationship.

E xpertise should be shared.

A cknowledge each other’s strengths and accomplishments.

M entor each other as insurance professionals.

W ork together for the good of the client and the agency.

O rganize, delegate, and accept responsibility.

R emember, when the phone rings, it’s our paycheck calling.

K now that together everyone achieves more.

Hear Annette Jackson Speak Annette will teach at the following CISR program: Personal Auto May 16 Ft. Lauderdale, FL Annette will also conduct the following Dynamics of Service programs: May 23 Orlando, FL June 6 Marietta, GA July 18 Ft. Lauderdale, FL

Hear Ed Lamont Speak

Learn More About this Topic from The National Alliance Three programs conducted by the National Council for Insurance Marketing (NCIM) speak to the subject of CSR/producer dynamics: Dynamics of Selling, emphasizing selling skills and techniques for producers; Dynamics of Service, with a multitude of tips for increasing revenues by improving customer service; and Dynamics of Sales Management, for helping agency owners build an effective, efficient sales team. ■

Ed will conduct a Dynamics of Selling program in Fargo, ND, July 17–19.

What have you done to promote yourself lately? Educational accomplishments like CIC or CRM designations are good reasons to brag a little. And Professional Recognition Brochures are the tasteful way to do it.

When you insert your own business cards and display the brochures on your desk, your colleagues and clients can see and inquire about them. Or take the brochures along when meeting with prospective clients. They explain your achievement, educate those who are not familiar with CIC or CRM, and identify you as the committed professional you are.

Price: $40 per 100 brochures. Each order includes an acrylic holder for display. Please allow approx. six weeks for delivery. Thank you!

Order by calling:

18 Resources Resources Spring Spring2002 2002 18

800/633-2165

Technical & Practical Education Personal & Professional Development

CIC National Program Schedule PROGRAM KEY AM CC CP LH PL

Agency Management Commercial Casualty Commercial Property Life and Health Personal Lines

April 2002 03-05 03-05 03-06 03-06 03-06 03-06 03-06 10-13 10-13 10-13 10-13 10-13 10-13 11-13 11-14 17-19 17-19 17-19 17-20 17-20 17-20 17-20 17-20 17-20 18-20 18-20 18-20 24-26 24-26 24-27 24-27 24-27 24-27

Birmingham, AL Federal Way, WA Anchorage, AK Albany, NY Myrtle Beach, SC Plano, TX Casper, WY Little Rock, AR Cromwell, CT St. Louis, MO Great Falls, MT Fargo, ND Austin, TX Secaucus, NJ Fort Lauderdale, FL Gainesville, GA Indianapolis, IN Cleveland, OH Bowie (Annapolis), MD Edina, MN Lincoln, NE Niagara Falls, NY Portland, OR Tyler, TX Orange, CA Denver, CO Lansing, MI Rolling Meadows (Chicago), IL Las Vegas, NV Tempe, AZ Asheville, NC Houston, TX Woodstock, VT

LH PL AM CP CP CC AM LH AM CC CC LH AM AM PL CC AM CP CP PL AM CC CP LH AM LH CC AM CP CC LH CP AM

May 2002 01-03 01-04 01-04 02-04 02-04 02-05 06-09 08-10 08-11 08-11 08-11 08-11 08-11 14-17

Cincinnati, OH West Des Moines, IA San Juan, PR San Diego, CA Somerset, NJ Orlando, FL Erie, PA Federal Way, WA Cromwell, CT Idaho Falls, ID Baton Rouge, LA Warwick, RI Arlington, TX Milwaukee, WI

AM LH CP CP CC AM CC AM LH CP PL PL LH CC

15-17 15-17 15-17 15-18 15-18 15-18 15-18 15-18 15-18 16-18 16-18 22-25 29-01 29-31

Atlanta, GA Springfield, IL Jackson, MS Edina, MN Greensboro, NC Las Cruces, NM Tulsa, OK Harrisburg, PA Franklin (Nashville), TN Fresno, CA Lansing, MI Verona, NY Wichita, KS Birmingham, AL

AM PL CC AM CC AM PL CP AM AM PL AM CP PL

June 2002 05-07 05-07 05-08 06-09 12-14 12-14 12-15 12-15 12-15 12-15 19-21 19-21 19-22 19-22 19-22 19-22 19-22 19-22 19-22 19-22 20-22 20-23 24-26 26-29

Burbank, CA Toledo, OH Austin, TX Jacksonville, FL Chesterton, IN Troy, MI Little Rock, AR Lexington, KY Omaha, NE Salt Lake City, UT Atlanta, GA Lisle (Chicago), IL Phoenix, AZ New London, CT N. Falmouth, MA Alexandria, MN Charleston, SC Sioux Falls, SD Plano, TX Virginia Beach, VA San Jose, CA Tampa, FL Honolulu, HI Middleton, WI

PL LH PL CC PL AM CP CP CC PL LH LH LH PL CC CC CC CP CP LH PL CP CP PL

July 2002 10-13 10-13 10-13 10-13 17-19 17-19 17-19 17-19 17-20 17-20 17-20 17-20 18-20 22-25 24-27 31-03 31-03

Edina, MN Albuquerque, NM Reno, NV San Juan, PR San Ramon, CA Macon, GA Indianapolis, IN Federal Way, WA Shreveport, LA Durham, NC Oklahoma City, OK Corpus Christi, TX Denver, CO Philadelphia, PA Nashua, NH West Des Moines, IA Louisville, KY

LH LH CC CC CP CP CC CP CC CP LH AM AM PL CP CC LH

31-03 31-03 31-03

Edina, MN Franklin (Nashville), TN Salt Lake City, UT

CP CP CC

Point Clear, AL Jackson, MS Sedona, AZ Columbia, SC Houston, TX Honolulu, HI Indianapolis, IN Dearborn, MI Olathe, KS St. Louis, MO Albuquerque, NM Burlingame, CA Miami, FL Wausau, WI Atlanta, GA Lisle (Chicago), IL Charleston, WV New Orleans, LA Lincoln, NE Harrisburg, PA Arlington, TX Boise, ID S. Portland, ME

CC AM CP AM CC PL CP CC AM CP PL AM CP CP PL CC CP CP PL LH CC CC AM

September 2002 11-13 11-13 11-13 11-13 11-14 11-14 11-14 11-14 11-14 12-14 12-15 18-20 18-20 18-20 18-21 18-21 18-21 18-21 18-21 25-27 25-28 25-28 25-28 25-28 25-28 25-28 25-28 25-28 25-28

Springfield, IL Kalamazoo, MI Cincinnati, OH Federal Way, WA Edina, MN Wrightsville Beach, NC Fargo, ND Memphis, TN Dallas, TX Denver, CO Tampa, FL Birmingham, AL Atlanta, GA Indianapolis, IN West Des Moines, IA Oklahoma City, OK Erie, PA Pittsburgh, PA Austin, TX Ontario, CA Anchorage, AK Cromwell, CT Baton Rouge, LA Westford, MA Missoula, MT Houston, TX Salt Lake City, UT Virginia Beach, VA Mt. Snow, VT

Edison, NJ West Palm Beach, FL

PL LH

October 2002

August 2002 07-09 07-09 07-10 07-10 07-10 12-14 14-16 14-16 14-17 14-17 14-17 15-17 15-18 20-23 21-23 21-23 21-23 21-24 21-24 21-24 21-24 28-31 28-31

26-28 26-29

AM CP PL LH PL CC CC PL LH CC AM AM CC LH AM CC AM CC CC CP CP PL CC PL CP AM AM CC CC

02-04 02-04 02-05 02-05 02-05 02-05 02-05 02-05 03-05 09-11 09-12 09-12 09-12 09-12 09-12 09-12 09-12 10-12 16-18 16-18 16-19 16-19 16-19 17-19 23-25 23-26 23-26 23-26 23-26 23-26 23-26 24-26 30-02 30-02

Jackson, MS Columbus, OH Little Rock, AR Bowie (Annapolis), MD Lake Placid, NY Portland, OR Allentown, PA Hilton Head, SC Irvine, CA Smithtown, NY Wilmington, DE Louisville, KY Edina, MN Blue Springs (Kansas City), MO Omaha, NE Plano, TX Appleton, WI Lansing, MI Burbank, CA Las Vegas, NV Tempe, AZ Charlotte, NC Albuquerque, NM Denver, CO Marietta (Atlanta), GA New London, CT Danvers, MA Branchville, NJ York, PA Fredericksburg, VA Casper, WY Sacramento, CA Boise, ID San Juan, PR

LH CP PL PL AM CC PL CP PL CP AM AM AM LH CP PL CC AM CC PL AM AM CC CP AM CC LH LH CP CP CC PL LH LH

November 2002 06-08 06-08 06-08 06-09 06-09 06-09 06-09 06-09 06-09 06-09 07-09 13-15 13-15 13-16 13-16 13-16 13-16

Birmingham, AL Ontario, CA Federal Way, WA West Des Moines, IA Olathe, KS Northampton, MA Plymouth, MA Saratoga Springs, NY Franklin (Nashville), TN Austin, TX Denver, CO Marietta (Atlanta), GA Columbus, OH Baton Rouge, LA Edina, MN Billings, MT Greensboro, NC

CP AM CC PL PL CC CP PL CC LH PL CP LH AM CC LH CP

Continued on page 20.

To register for CIC institutes, see page 20.

National Alliance Program Schedule Resources Spring 2002

19

CIC National Program Schedule (continued) 13-16 13-16 13-16 13-16 14-16 20-22 20-23 20-23 20-23

Verona, NY Myrtle Beach, SC San Antonio, TX El Paso, TX Edison, NJ Rolling Meadows (Chicago), IL Springfield, MO Oklahoma City, OK Williamsburg, VA

LH LH CC CP AM CP CC CP PL

December 2002 04-06 04-06 04-07 04-07 04-07 04-07 04-07 04-07 04-07 05-07 05-08 09-12 10-13 11-13 11-13 11-14 12-14

San Diego, CA Indianapolis, IN Little Rock, AR Scottsdale, AZ Lexington, KY Worcester, MA Portland, OR Houston, TX Salt Lake City, UT Lansing, MI Orlando, FL Annapolis, MD Milwaukee, WI Springfield, IL Cleveland, OH Dallas, TX Denver, CO

LH PL CC PL CC AM PL CP CP LH PL AM PL LH CC AM CC

January 2003 08-11 09-11 15-17 15-17 15-17 15-18 15-18 15-18 15-18 16-18 22-24 22-25 22-25 22-25 23-25 28-31 29-01 29-01 29-31 29-31 29-31 30-02

Edina, MN Detroit, MI Denver, CO Chicago, IL Long Island, NY Lexington, KY Oklahoma City, OK San Juan, PR Nashville, TN Edison, NJ Jackson, MS S. Portland, ME Springfield, MO Harrisburg, PA Burlingame, CA Milwaukee, WI Baton Rouge, LA Austin, TX Indianapolis, IN Las Vegas, NV Federal Way (Seattle), WA St. Petersburg, FL

LH PL AM CC LH CP CC PL PL LH CP CP CP PL CC LH PL CP LH LH CP PL

February 2003 05-07 05-07 05-08 05-08 05-08 06-08 12-15 12-15 12-15 12-15 12-15

20 20

Birmingham, AL Atlanta, GA Tempe, AZ Overland Park, KS Portland, OR Lansing, MI Little Rock, AR Mystic, CT Gaithersburg, MD Capital District, NY Columbia, SC

CC PL CC AM LH CC LH LH PL LH LH

(Dues-paid CICs

James K. Ruble Seminars and CRMs only)

CALL TO REGISTER †

PROGRAM KEY

To register for all CIC institutes, call the corresponding state association or Society number listed below.

AMP Agency Management Practices CO Contractors FI Financial Institutions GS Graduate Seminar HCE Health Care Entities LC Large Commercial LB Life and Benefits ME MEGA MP Managing People MS Marketing & Sales MT Multiple Topic PL Personal Lines SC Small Commercial TR Truckers TRII Advanced Truckers

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Missouri Mississippi Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee (IIA) Tennessee (PIA) Texas Utah Vermont Virginia/DC Washington West Virginia Wisconsin Wyoming

205/326-4129 800/633-2165 602/956-1851 800/633-2165 800/633-2165 303/512-0707 800/424-4244 717/795-9100 850/893-8245 770/921-7585 800/633-2165 800/633-2165 217/793-6660 800/438-4424 800/633-2165 785/232-0561 502/875-3888 800/633-2165 508/628-5452 717/795-9100 508/628-5452 517/323-0041 952/835-4180 573/893-4301 800/633-2165 406/442-9555 402/392-1611 775/882-1366 508/628-5452 800/424-4244 800/633-2165 800/424-4244 800/849-6556 800/633-2165 800/555-1742 405/840-4426 503/287-7570 717/795-9100 787/758-1001 508/628-5452 803/731-9460 800/633-2165 800/280-6082 615/771-1177 800/633-2165 800/633-2165 508/628-5452 804/264-2582 360/571-7100 800/633-2165 608/274-8188 800/633-2165

† IMPORTANT NOTE: The dates and locations of the programs in these schedules are subject to change. Before making any travel arrangements, always verify the dates and location when registering for a program.

Resources Spring Resources Spring2002 2002 National Alliance Program Schedule

21-23 21-23 21-23 28-30

Myrtle Beach, SC Madison, WI Burlingame, CA Cincinnati, OH Nashville, TN Raleigh, NC New London, CT Freeport, ME

11-13 18-20 18-20 25-27 25-27 30-02

Oak Brook, IL Pontiac, MI Saratoga Springs, NY Boston, MA Branson, MO Houston, TX Pittsburgh, PA

*GS *GS SC TR PL MP CO *GS

AMP LC *GS FI *GS GS HCE

June 2002 05-07 05-07 12-14 19-21 19-21 19-21 24-26 24-28 26-28

Baltimore, MD Wrightsville Bch., NC Lexington, KY N. Falmouth, MA N. Falmouth, MA Hershey, PA Coeur d’ Alene, ID Orlando, FL Beaverton, OR

LB *GS *GS *GS *GS *GS MP ME *GS

July 2002 01-03 10-12 17-19 17-19 17-19 17-19 22-24 22-24 25-27 31-02

Gulf Shores, AL Milwaukee, WI Oak Brook (Chicago), IL Traverse City, MI Kansas City, MO Williamsburg, VA Portland, ME Saratoga Springs, NY Marco Island, FL Columbus, OH

*GS CO *GS *GS MS *GS PL HCE *GS *GS

August 2002 07-09 14-16 14-16

Mashantucket, CT Annapolis, MD Seattle, WA

Overland Park, KS Bloomington, MN Charlotte, NC Harrisburg, PA Virginia Beach, VA San Antonio, TX

HCE *GS LC AMP *GS PL

October 2002

May 2002 01-03 01-03 08-10 13-15 15-17 15-17 22-24

SC *GS *GS TR

September 2002

April 2002 03-05 08-10 10-12 10-12 15-17 17-19 24-26 24-26

Little Rock, AR Atlanta, GA Bartlett (N. Conway), NH Anaheim, CA

*GS *GS MT

07-09 10-12 14-16 14-16 16-18 16-18 23-25 23-25 30-01

Houston, TX Atlantic City, NJ Honolulu, HI Angola, IN Atlanta, GA Tulsa, OK Cleveland, OH Newport, RI Scottsdale, AZ

CO *GS GS *GS FI *GS LB *GS TRII

CALL TO REGISTER † Call 800/633-2165 to register for all Ruble Seminars EXCEPT Graduate Seminars marked with an asterisk (*GS). For all seminars marked with an asterisk, call the corresponding state association listed below.

Alabama Arizona Connecticut Delaware Florida Georgia Illinois Indiana Kentucky Maine Maryland Massachusetts Michigan Minnesota Missouri New Hampshire New Jersey New York North Carolina Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina Tennessee (IIA) Tennessee (PIA) Vermont Virginia/DC Washington Wisconsin

205/326-4129 602/956-1851 800/424-4244 717/795-9100 850/893-8245 770/921-7585 217/793-6660 800/555-9742 502/875-3888 508/628-5452 717/795-9100 508/628-5452 517/323-0041 952/835-4180 573/893-4301 508/628-5452 800/424-4244 800/424-4244 800/849-6556 800/555-1742 800/324-4426 360/571-7100 717/795-9100 508/628-5452 803/731-9460 615/385-1898 615/771-1177 508/628-5452 804/264-2582 360/571-7100 608/274-8188

CISR National Course Schedule COURSE KEY AO IC IP PA PR AL

Agency Operations Insuring Commercial Casualty Insuring Commercial Property Personal Auto Personal Residential Advanced Lecture Series Advanced Lecture Series is available to CISRS, CICs, CRMs, ACSRs, & CPSRs only.

SR Dynamics of Service

April 2002 01 02 02 02 02 02 02 03 03 03 04 04 04 04 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 16 16 16 16 16

Framingham, MA Newton, MA Rochester, MN Kingsport, TN Dallas, TX White River Jct., VT Casper, WY Andover, MA Raleigh, NC Knoxville, TN Phoenix, AZ Waterloo, IA Edina, MN Rio Piedras, PR Pasadena, CA Middletown, CT Carbondale, IL Falmouth, MA Portland, ME St. Louis, MO Fargo, ND Gering, NE Las Cruces, NM Cheektowaga, NY Cincinnati, OH Lehigh Valley, PA Florence, SC Sioux Falls, SD Austin, TX Salt Lake City, UT Ontario, CA Denver, CO Wichita, KS Paducah, KY Raynham, MA Wilmington, NC North Platte, NE Portsmouth, NH Syracuse, NY Lancaster, PA Dallas, TX Casper, WY Tucson, AZ Ontario, CA Bannockburn, IL Hickory, NC Lincoln, NE Albany, NY Fredericksburg, VA Seattle, WA Santa Cruz, CA Albany, GA Champaign, IL Saginaw, MI Jackson, MS

IC IC IC AL AO IC AO IC IC AL AO IC IP IP PA IC IC IC IC AL PR IP AO PA IP IP PR IC PA IC IC PR IP PR IC PA IP IC PA IP AL IC IC PA IC AO IP PA IC SR IP PA IC PA SR

16 16 16 16 16 16 16 17 17 17 17 17 17 17 17 18 18 18 18 18 18 18 18 18 19 23 23 23 23 23 23 23 23 23 23 23 24 24 24 24 24 24 24 24 24 24 24 24 25 25 25 25 25 25 25 25 25 25 25 25 25 25 26 29 29 30 30 30 30 30

Asheville, NC Albuquerque, NM Mechanicsburg, PA Rock Hill, SC Harlingen, TX Tyler, TX Beaumont, TX Glenwood Springs, CO Garden City, KS Louisville, KY Cape Girardeau, MO Tulsa, OK Wilkes-Barre, PA Roanoke, VA Gillette, WY Huntsville, AL San Jose, CA Ft. Myers, FL Orlando, FL Hoffman Estates, IL Bemidji, MN Plattsburgh, NY Oklahoma City, OK Beaufort/Hilton Head, SC Roanoke, VA Marietta, GA Morton, IL Grand Rapids, MI Wilmington, NC New York, NY Toledo/Perrysburg, OH Reading, PA Jackson, TN Houston, TX Appleton, WI Beckley, WV Anchorage, AK Fresno, CA Independence, KS Ann Arbor, MI Morton, MN Springfield, MO Elko, NV Pittsburgh, PA Memphis, TN Fort Worth, TX San Antonio, TX Waukesha, WI Davenport, IA Indianapolis, IN Paducah, KY Frederick, MD Edina, MN St. Louis, MO Hattiesburg, MS Bozeman, MT Fayetteville, NC Reno, NV Mars, PA Round Rock, TX Newport News, VA Tomah, WI Las Vegas, NV Cedar Rapids, IA Rio Piedras, PR West Des Moines, IA South Holland, IL Gaylord, MI Buffalo, NY Philadelphia, PA

AO PR SR IC AL IC PA IP AL SR PR IP AL IP IP AL AO PR IP IC IP IP IP IC IC PR IC IC AO IC IP AO AL AO IP PA PR PR PR IC PA PR IP IP AL IP IC IP PA PA IC AL PR PR PA IP IC IP IP SR PA IP IP PA IP PA IC PR IP AL

30 30

San Juan, PR Casper, WY

IP PA

May 2002 01 01 01 01 01 01 01 01 01 01 01 02 02 02 02 02 02 02 02 02 06 07 07 07 07 07 07 07 07 07 07 08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09 09 09 09 09 13 13 13 14 14 14 14 14 14 14 14

Burlingame, CA Hoffman Estates, IL Topeka, KS Houma, LA Shreveport, LA West Springfield, MA Gaylord, MI Lansing, MI Wilmington, NC Syracuse, NY Providence, RI Phoenix, AZ Pleasanton, CA Savannah, GA Lafayette, LA Pittsfield, MA Danvers, MA Raleigh, NC Albany, NY Cheyenne, WY Twin Falls, ID Huntsville, AL Ventura, CA Idaho Falls, ID Edwardsville, IL Randolph, MA Helena, MT Gering, NE Arlington, TX Salt Lake City, UT Burlington, VT Mobile, AL Stockton, CA Colorado Springs, CO Overland Park, KS Lexington, KY New Orleans, LA Kalamazoo, MI Hickory, NC Norfolk, NE Cheektowaga, NY Tulsa, OK Tuscaloosa, AL Yuma, AZ Palm Springs, CA South Holland, IL Monroe, LA Baton Rouge, LA Detroit Lake, MN Greensboro, NC Lincoln, NE Syracuse, NY Oklahoma City, OK Houston, TX Madison, WI Baltimore, MD Tupelo, MS Odessa, TX Montgomery, AL Phoenix, AZ Red Bluff, CA Chicago, IL Hyannis, MA Baltimore, MD St. Cloud, MN Jackson, MS

PA IP AL IC IC IP PA PA IP IP IP IP PR IC IC IP IP IP IP PA AO IC PA PR PA IP PA IC IC AO IP IC AO IC PR IC IC AL SR IC SR IC IC PR PR IP IC IC IP AO IC SR IC AL AL PR IC AO IC AL IC IP IP PA AO IP

14 14 14 14 14 14 14 15 15 15 15 15 15 15 15 15 15 16 16 16 16 16 16 16 16 16 16 16 16 16 16 17 17 20 21 21 21 21 21 21 21 21 21 21 21 21 21 21 22 22 22 22 22 22 22 22 22 22 22 23 23 23 23 23 23 23 23 23

Asheville, NC Tinton Falls, NJ Albuquerque, NM Rochester, NY Tulsa, OK Mars, PA Lubbock, TX Little Rock, AR Santa Maria, CA Denver, CO Auburn, MA Baltimore, MD Charlotte/Cornelius, NC Branchville, NJ Pittsburgh, PA Austin, TX Waco, TX Birmingham, AL Jonesboro, AR Lake Havasu City, AZ Bakersfield, CA Tampa, FL Ft. Lauderdale, FL Bannockburn, IL Framingham, MA Westport, MA Baltimore, MD Missoula, MT Florham Park, NJ Columbia, SC Manassas, VA Baltimore, MD Binghamton, NY Reno, NV Monterey, CA Duluth, GA Morton, IL Ann Arbor, MI Gaylord, MI Edina, MN Reno, NV Woodbury, NY Columbus, OH Wilkes-Barre, PA Nashville, TN Nashville, TN Tyler, TX Dallas, TX San Diego, CA Denver, CO Louisville, KY Gaylord, MI Hickory, NC New York, NY Perrysburg, OH Lancaster, PA Philadelphia, PA Greenville, SC Chattanooga, TN Phoenix, AZ Anaheim, CA Orlando, FL Schaumburg, IL Springfield, IL Indianapolis, IN Fayetteville, NC Newburgh, NY Lynchburg, VA

IC PA IC PR AL AO IP IP IP SR IP AO AL AO AO PR IP IC IP PA PR AL PA IP IP IP IP IC AO IP PA IC PR AL AO PA IP IP IC IC SR PA PR IP IC AL SR IP PR IC IC IP AL PA AL AL IP PR IC PR IP SR SR IP AL PA PA PA

To register for CISR courses, see page 22.

Resources Spring National Alliance Program Schedule Resources Spring 2002 2002

21 21

CISR National Course Schedule

CRM Course Schedule April 2002

(continued)

10-13 17-20 24-27

CALL TO REGISTER

COURSE KEY

To register for all CISR courses, Advanced Lecture Series, and Dynamics of Service, call the corresponding state association or Society number listed below.

PRI ANA CON FIN PRA

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisana Maine Maryland Massachusetts Michigan Minnesota Missouri Mississippi Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia/DC Washington West Virginia Wisconsin Wyoming

Any individual actively engaged in risk management or a related field, including accounting, finance, insurance, loss control, legal, claims, and others, is eligible to attend the CRM Program.

205/326-4129 907/344-6009 602/956-1851 501/225-1645 800/633-2165 303/512-0707 800/742-6369 717/795-9100 850/893-8245 770/921-7585 800/633-2165 800/633-2165 800/628-6436 800/555-1742 800/633-2165 785/232-0561 502/875-3888 800/633-2165 508/628-5430 717/795-9100 508/628-5430 517/323-0041 952/835-4180 573/893-4301 800/633-2165 406/442-9555 402/476-2951 775/882-1366 508/628-5430 800/742-6369 800/633-2165 800/742-6369 919/755-0847 612/835-4180 614/239-1387 405/840-4426 503/287-7570 717/795-9100 787/758-1001 508/628-5430 803/731-9460 800/633-2165 800/264-1898 800/633-2165 800/633-2165 508/628-5430 804/264-2582 360/571-7100 800/633-2165 608/274-8188 307/283-2052

Principles of Risk Management Analysis of Risk Control of Risk Financing of Risk Practice of Risk Management

Orlando, FL Philadelphia, PA St. Paul (Minneapolis), MN

September 2002 CON ANA FIN

May 2002 01-04 08-11 15-18 22-25

San Antonio, TX FIN Burlingame (San Francisco), CA PRI Westminster (Denver), CO PRA Las Vegas, NV CON

June 2002 05-08 10-13 26-29 26-29 26-29

Seattle, WA Des Moines, IA Indianapolis, IN Nashville, TN Houston, TX

CALL TO REGISTER †

July 2002

Call 800/633-2165 to register for all CRM courses.

10-13 17-20 17-20

San Diego, CA Norcross (Atlanta), GA Syracuse, NY

FIN PRI ANA CON PRA

PRA PRI ANA

August 2002

† IMPORTANT NOTE: The dates and locations of the programs in this schedule are subject to change. Before making any travel arrangements, always verify the dates and location when registering for a program.

07-10 07-10 14-17 21-24 28-31

Westminster (Denver), CO Austin, TX Orlando, FL Las Vegas, NV Cambridge (Boston), MA

CON PRA FIN FIN PRA

09-12 18-21 18-21 25-28

Atlantic City, NJ Philadelphia, PA Wausatosa (Milwaukee), WI Nashua, NH

PRI FIN PRA CON

October 2002 02-05 09-12 16-19 23-26

Seattle, WA St. Louis, MO Dallas, TX Monroeville (Pittsburgh), PA

ANA ANA FIN PRI

November 2002 06-09 13-16

Houston, TX Columbia (Baltimore), MD

ANA PRA

December 2002 04-07 11-14 11-14

Kansas City, MO FIN Burlingame (San Francisco), CA CON San Antonio, TX CON

January 2003 15-18 15-18 29-01

Atlanta, GA Salt Lake City, UT Houston, TX

CON PRI PRI

February 2003 05-08 05-08 12-15 26-01

Costa Mesa, CA Des Moines, IA Kansas City, MO Minneapolis, MN

FIN PRA CON PRI

Dynamics of Selling & Dynamics of Sales Management Program Schedule April 2002 PROGRAM KEY

10-12

DS Dynamics of Selling DSM Dynamics of Sales Management

May 2002

CALL TO REGISTER † To register for Dynamics of Selling and Dynamics of Sales Management, call The National Alliance at 800/633-2165.

08-10 08-10 13-15

Seattle, WA

Charleston, SC Salt Lake City, UT Palm Springs, CA

October 2002 DS

DS DS DSM

June 2002 05-07 12-14 12-14

Indianapolis, IN Atlanta, GA Minneapolis, MN

† IMPORTANT NOTE: The dates and locations of the programs in this schedule are subject to change. Before making any travel arrangements, always verify the dates and location when registering for a program.

22 22 Resources Resources Spring Spring2002 2002 National Alliance Program Schedule

Fargo, ND Newport, RI Omaha, NE Anchorage, AK

Columbus, OH San Antonio, TX

DS DSM DS DS

DS DS

September 2002 04-06 25-27

Cambridge, MA Albuquerque, NM

DS DS DSM

November 2002 13-15

Knoxville, TN

DS

04-06 09-11

Buffalo, NY Arlington, VA

DS DS

January 2003

August 2002 21-23 21-23

San Francisco, CA Orlando, FL Lisle (Chicago), IL

December 2002 DS DS DS

July 2002 17-19 22-24 24-26 31-02

09-11 16-18 30-01

DS DS

15-17 15-17

Fort Lauderdale, FL Honolulu, HI

DS DS

February 2003 19-21 19-21

San Jose, CA Las Vegas, NV

DS DS

March 2003 12-14 19-21 26-28

White Plains, NY Portland, OR Houston, TX

DS DS DS

Go Site-seeing with The National Alliance

I

f you haven’t visited The National Alliance Web site recently, you may not be aware of all the assistance and benefits you’ll find there. You’ll discover answers to questions you didn’t even know you had, and find the latest information on the programs in your area.

On your next online visit, you can: ❍ Check on CE credit hours—state-by-state ❍ Register online for all of our programs ❍ Find complete, updated course schedules nationwide ❍ Read expanded program descriptions ❍ Connect with the CISR Web-based training link ❍ Order Academy publications online ❍ See “What’s Hot” ❍ Download copies of the latest issues of Resources ❍ Get National Alliance news via our media releases ❍ Link to MarketScout for accessing top insurance markets Log on and look us over today: www.scic.com

800/633-2165

w w w. s c i c . c o m

© 2002 The National Alliance for Insurance Education & Research

Resources Spring 2002

23

career development for Claims Adjusters & Underwriters

A

s the insurance industry continues to become more complex and competitive, education is the distinguishing difference for successful individuals and organizations. Today, insurance company personnel are becoming progressively more involved in the education programs of The National Alliance.

Underwriters and claims adjusters can enhance their knowledge and careers by earning professional designations offered through The National Alliance. They can develop important skills, such as careerbuilding for management opportunities and leadership, by taking a variety of National Alliance courses. These professionals will acquire a background and knowledge so consumers will say, “I am dealing with a competent professional, who keeps on top of current insurance changes, maintains the highest ethical standards, and really cares about the consumer.�

Whether it is through the in-house training programs, classroom courses, or our online Web-based CISR program, continuing education credits and designations are certainly attainable. Just let us know of your needs and we are available to work with you and your company. And make sure you visit our Web site:

www.scic.com Following is a synopsis of National Alliance programs for underwriters and claims adjusters.

The Certified Insurance Counselors (CIC) Program forms the educational foundation for underwriters. They can learn the detailed coverage aspects of commercial and personal lines insurance, and life and health insurance. In addition, an understanding of agency management can help underwriters establish solid agency relationships. Individuals also have the option of attending the CISR Program for basic coverage knowledge.

Underwriters who become designated CICs can obtain advanced education on coverage issues by attending the special Gradu-

24

Resources Spring 2002

Underwriters and claims adjusters can enhance their knowledge and careers by earning any of the professional designations offered through The National Alliance.

ate Ruble Seminars, formerly called Advanced Coverage Seminars. There are also a number of Ruble seminars that concentrate specifically on coverage topics, such as Contractors, Large Commercial, Life & Benefits, Personal Lines, and Health Care Entities.

The Dynamics of Service Program can help underwriters improve their agency service and relationships. Academy publications, such as The Insurance Essentials Handbook, assist with initial training and explanation of pertinent coverage issues, and other important topics.

The Certified Risk Managers (CRM) Program would be most applicable for underwriters who work with large commercial accounts, empowering them to find creative solutions to reduce exposures and provide reasonable premiums.

Claims adjusters will also benefit from the coverage knowledge in all five CIC institutes. When claims adjusters earn their CIC designations they can attend Ruble seminars for advanced curriculum in the specific areas in which they work.

Academy publications make excellent references for expanding coverage knowledge and evaluation of losses. For example, Complete the Circuit: Insuring EDP Exposures would be extremely helpful for evaluating high-tech exposures and losses, and The Three Faces of Executive Liability helps with the complexities of EPL and D&O insurance.

Claims adjusters who participate in the CRM Program can work with their commercial insureds to help prevent claims before they occur and suggest ways for their clients to reduce their overall risk— especially if they know their clients’ loss histories and are familiar with their operations.

Dynamics of Service will elevate claims adjusters’ service to their clients by improving communication and efficiency. Efficient and fair claim service goes a long way toward retaining clients. ■

In January 2002, an online directory listing all dues-paid CICs with their contact information became available on our Web site.

This is going to be THE place to find the best insurance agents in America. And you’ll be able to easily locate other CICs.

As a dues-paid CIC you will: ■

■ ■

Have your own national listing — with your name, designations, and contact information.

Be able to update your information.

Have access to view and search all directory information.

Your directory listing is ready to preview and update now. Go to www.scic.com/cicdues. You will need to use a personal user name and password (which you can find at the top of your dues notice) to access, view, and edit your personal information.

Your name will automatically be added to the CIC Member Directory.

If you elect to be excluded, check the appropriate box on your dues notice.

IMPORTANT: The directory is now on the Web site for all to see and only dues-paid CICs will be listed!

Resources Spring 2002

25

gency owners frequently get caught up in the day-to-day operations of the agency and short-term planning — and rightly so. They are involved with producing business and managing their employees. Hopefully, most agency owners find the time to do some long-term planning as well, especially with agency perpetuation. A sound perpetuation plan can be essential for the well being of the agency if an agency owner suddenly passes away or becomes disabled. Even when an owner retires as planned, it is important to have a perpetuation plan in place to take care of the individuals who have an interest in the agency — and there are many of them.

emy surveyed over 800 agency owners concerning their agency perpetuation, with the following results:

Information for this article was adapted from the study, Maximizing Agency Value II, by Jon Persky, CIC, CPA. The Acad-

There are complex issues involved with agency perpetuation. Agency owners should consider the effect of an untimely

ResourcesSpring Spring 2002 2626 Resources 2002

68% 60%

of the agencies have a perpetuation plan. of the perpetuation plans are in writing.

Therefore, only 41% of the agencies surveyed have a written perpetuation plan.

The perpetuation plan should obviously be in writing. How comprehensive can a perpetuation plan be if it is not in writing? If the agency owner suddenly passes away, how good will an unwritten plan work? Would someone other than the deceased owner know the details of the plan?

In the case of sudden death, an unwritten plan may be the same as no plan.

death or disability and how it can affect all the people who have a stake in the agency. A comprehensive agency perpetuation plan should address the objectives of the following parties: Partners’ Objectives Owner’s Personal Objectives

Carriers’ Objectives

Objectives to Consider

Family’s Objectives

Employees’ Objectives

Owner’s Personal Objectives Agency owners are generally proud of their agency and what they have accomplished. If their name is on the agency, they may want the agency’s name to remain the same after their retirement or death.

Owners have to consider how much money they will need on an annual basis to live the lifestyle they want in retirement.

The cash flow from the sale of their agency can obviously help fund the owner’s retirement and desired standard of living.

An agency owner has to consider the age he/she plans to retire, and how many years remain before reaching the desired retirement age. An owner who is thinking ahead will get the perpetuation wheels in motion years before he/she actually retires.

The Academy survey asked agency owners the age they plan to retire, as described in the following chart: At what age do you plan to retire?

Age

% of Agency Owners

50 or under 51 to 55 56 to 60 61 to 65 66 to 70 Over 70 At death

1% 6% 21% 38% 24% 7% 3%

Over 70% of the agency owners are planning to retire some time after age 60. Of course, a person does not know how long he/she will live, so it is very difficult to predict how much money will be needed after retirement. Owners would be wise, however, to estimate how many years they might live after retirement so they can better plan and fund their retirement. They can examine life expectancy tables and consider their personal health and heredity in making an estimate.

Agency owners can consider selling their agency, but remain with the agency as a producer, and perhaps ease into retirement gradually. Getting rid of all management duties with an agency sale may allow former owners to concentrate on sales, if that is truly what they like most about their profession. Other owners may sell their agency, but remain with the agency in a management or consulting position only.

Thus, perpetuation plans must also address the concerns of agency owners who remain with the agency after selling it.

Partners’ Objectives Agency owners should keep their partner(s’) objectives in mind when drawing up perpetuation plans. The retiring owner may want a lump sum of cash for his/her portion of the agency, or he/she may prefer to receive annual payments.

The partner(s) will probably prefer to pay

their former partner over a number of years.

Difficulties with agency perpetuation may occur with partners who have a significant age difference. The younger partner may find it difficult to generate the necessary agency revenues to pay the retiring owner. This drain on agency cash flow can make it difficult to properly invest in the future of the agency, while maintaining the payments that are committed to the former owner.

Remaining owners also need to consider who will replace the retiring owner. If the retiring owner focused strictly on either producing accounts or managing the agency, then someone will have to take his/her place in this capacity.

Family’s Objectives Oftentimes, agency owners wish to transfer the agency to their sons or daughters upon their retirement. However, owners have to consider if their children want to run the agency, and if they want to run it, consider if they have the necessary skill, talent, experience, and drive to succeed.

A son or daughter may get the agency with little or no down payment, with the retiring owner receiving payments over a period of time. In this scenario, the son or daughter has the pressure of running the agency successfully in order to fund their father or mother’s retirement.

Retiring owners have to consider many possible problems with perpetuating the agency with family members. If there is a son or daughter that works in the agency and one or more that does not, can the owner give all siblings equal parts of the agency? One child may be interested in running the agency, and the other(s) may not have any interest in working for the agency, but only in getting cash equal to their share of the agency.

In another instance, more than one child might work for the agency. Which sibling would be the one to lead the agency? Can an owner pick one child over the other?

And how will the remaining sibling(s) feel about having a brother or sister as a boss?

Of course, if an owner is married, then retirement plans must include their spouse.

The owner’s spouse may be working in the agency or at another job, and may or may not continue working after the owner retires. Retiring owners must then question what they will do in their spare time, and how they are going to coordinate this with their spouse.

There are a number of family considerations when retiring, especially when another family member will be taking over control of running the agency. Agency owners can consider selling to an outside third party if an equitable situation among family members cannot be ascertained.

Employees’ Objectives Agency owners need to take into account their employees’ objectives when selling their agency. Owners can consider an internal sale, perhaps to a partner or family member. If selling to employees, an owner may have to balance letting one or several of his/her employees buy the agency at a reduced price to thank them for their years of service; yet, the owner still needs to receive fair market value in order to fund the retirement he/she worked so hard to achieve.

An owner can also sell to an outside third party. If so, the retiring owner may want to also negotiate how his/her staff will be treated. Will they all be retained by the acquiring agency? If so, will they have the same positions as they did before the purchase? A retiring owner can usually have some influence over what happens to his/ her employees. This can be a point of Continued on next page.

Resources 2002 ResourcesSpring Spring 2002 2727

Perpetuation… continued from previous page. negotiation and may result in a reduced sales price if the acquiring owner has to make a number of compromises concerning the staff.

Carriers’ Objectives An insurance carrier new to an agency will often require that agency owners have a written perpetuation plan. In the event of the owner’s death, disability, or retirement, the carrier may want to know how the agency is going to be continued. If an owner dies suddenly without a plan, the carrier’s book of business with the agency can become quickly reduced.

An existing carrier might want to know if an agency owner is planning to perpetuate internally or externally. The carrier is usually more comfortable with an internal sale, assuming the new owners will continue to support the carrier’s book of business. With an external sale, there is more uncertainty and greater possibility of moving the book of business to another carrier.

Agency owners may want to get approval from their major carriers on any prospective buyers because there may be some buyers the carriers do not want to work with, which could adversely affect the purchase price for the seller. Account retention and stability of the work force can also be affected by the agency purchaser, and an owner should take into account the carriers who have lent their support when considering the sale of their agency.

Perpetuation Methods There are several ways to perpetuate an agency as the Academy survey reinforced: Method Selling to a third party Giving/selling to a family member Transfer to an existing partner/employee Keep until death and let estate worry about it Merger, then retire Other

% of Agency Owners 42% 36%

The guide discusses issues with selling an agency, including personal and emotional issues, business concerns, and preparation before selling. Regarding an agency purchase, the study covers reasons for buying, how to find agencies, and conducting due diligence prior to purchase. The many concerns and technicalities of purchasing an agency are discussed including the transfer of business equity, stock issues, tax implications, treatment of employees, and dealing with carriers.

Maximizing Agency Value II is highly practical because of the author’s experience and approach and the number of agreements, sample letters, worksheets, and charts that are included. A CD is included containing the exhibits in template form which can be tailored and edited for your own use. New to this year’s study is the Asset Purchase Agreement.

Other template agreements include: ■

Confidentiality Agreement

■

Client Servicing Agreement

■

Employment and Non-Piracy (and Non-Compete) Agreements

■

Buy-Sell Agreement

■

Stock Pledge Agreement

To order the study for $57 + $5 shipping and handling, call The Academy at 800/526-2777. Visit our Web site at www.scic.com for more information on this new study and all current Academy publications.

ownership. Employees retain their jobs, carriers and clients are stable, and the agency maintains a good retention rate.

should also consider the impact of the perpetuation method on these individuals and organizations.

An external sale is to a party that is not related to the agency, such as another agency owner or producer, or a bank. An owner might be able to get a higher price for his agency by selling externally, as opposed to an internal sale. However, the employees, carriers, and clients are at more risk with an external sale. Some employees could be laid off, carriers may be discontinued, and client service may be less than adequate.

Jim Cuprisin, CIC, ARP

17% 6% 2% 3%

Most of the perpetuation options include a planned internal or external sale. Internal sales involve employees and/or family members. With internal sales, there are usually fewer changes after transferring

28

A new study is now available: Maximizing Agency Value II: A Guide for Buying, Selling and Perpetuating Insurance Agencies. This updated study, once again authored by Jon Persky, CIC, CPA, expands upon the perpetuation issues discussed in this article and provides a more in-depth analysis of perpetuation planning. The primary focus of the book, however, is on those complicated issues with buying and selling an agency.

Resources Spring 2002

When perpetuating an agency, the agency owner has to be most concerned with his/ her own financial situation and funding his/her retirement. Owners want to receive a fair market price for their agency and get reimbursed for all their years of hard work. However, owners should realize the impact the agency has on the lives of others, such as family, employees, and carriers. A perpetuation plan

Jim earned his CIC designation in 1989 and his Associate in Research and Planning (ARP) in 1995.

He is the project director of The Academy and managing editor of Resources magazine.

Learn More About this Topic from The National Alliance CICs and CRMs can investigate perpetuation issues further at a James K. Ruble Agency Management Practices Seminar.

Another valuable source of information on this subject is The Academy’s publication, Maximizing Agency Value II. ■

Resources Spring 2002

29

M

edicare has two basic coverages, Part A (Hospital Insurance) and Part B (Medical Insurance).

W

ith increasing costs in health insurance premiums, many employers and individuals are choosing higher co-payments for prescription drugs, or eliminating the benefit altogether. Medicare does not provide benefits for prescription drugs, unless covered under an HMO Medicare + Choice program. Hundreds of thousands of seniors who enrolled in a Medicare + Choice program (because that was the only way to get affordable prescription drug coverage) have been dropped by HMOs pulling out of the system.

In 1996, a major reform expanded the eligibility for access to VA health care for many veterans who were previously excluded. One of the greatest expansions of benefits was access to prescription drug benefits.

Veterans, including those with health insurance (public or private), and those with no health insurance, may qualify for prescription medication through the Veterans Administration Healthcare System. These veterans must have been honorably discharged from the military. If they were discharged before 1980, any time in service qualifies. If they were discharged after 1980, they must have served at least two years of active duty.

At a recent hearing, U.S. Senator Jay Rockefeller (D-WV), Chairman of the Senate Committee on Veterans Affairs, said “People need access to prescription drugs, and this Committee must do everything in its power to provide resources and care to any veteran who decides to come to the VA health care system for assistance.”

The veteran must enroll at the nearest VA Hospital or Community Based Outpatient Clinic (CBOC) and must see a VA doctor or primary care provider to determine if a prescription is needed. The VA can charge a fee for the doctor’s visit (depending on the veteran’s income level and disability status). If the veteran has health insurance, this

Jerry Montgomery, CIC, LUTCF

To Hear From the Author

Jerry Montgomery is an associate director in the Curricula and Faculty Development department of the Society of CIC and a national faculty member for the Societies of CIC and CISR. Jerry worked as an agent for Farmers Insurance Group from 1979 to 1998. His teaching experience includes nine years in the public school system.

3030 Resources ResourcesSpring Spring 2002 2002

Jerry speaks at the following CIC institutes: Commercial Casualty May 15-17 Jackson, MS Commercial Casualty August 7-10 Houston, TX Life & Health October 2-5 Jackson, MS Life & Health November 6-9 Austin, TX Jerry also teaches at the following CISR programs:

visit may be covered (subject to a policy co-payment). Based on the medical condition, the VA doctor will write a prescription.

The medical condition does not have to be service related.

A 30-day supply costs the veteran $7 per prescription, and this fee may be waived, based on income. The VA can mail 90-day supplies to the veteran.

The veteran will be required to return to the VA doctor for an annual determination of the prescription need. This benefit only applies to a veteran and not a spouse or any dependent. An additional consideration: the VA may not approve certain new drugs (due to expense), until traditional, less expensive drugs have been used and shown to be ineffective.

For additional information about this and other health benefits through the Veterans Administration, call toll free, 1-877-222-VETS (8387).

Providing this information to our clients is one additional way we can add value as a Certified Insurance Counselor.

May 13 May 14 August 6

Tupelo, MS Jackson, MS Houston, TX

Learn More About this Topic from The National Alliance This article just nicks the tip of the Medicare iceberg. Find out more about Medicare when it’s offered as an optional topic at CIC Life & Health Institutes and James K. Ruble Life & Benefits Seminars. ■

Each year the deductibles that apply to benefits and the premium cost for Part B coverage are subject to increase. Following are the deductibles and premium cost for 2002:

Hospital Benefits paid under Part A (Hospital Insurance): 1. When first admitted as an inpatient to a hospital in a benefit period, the individual will have to pay an initial deductible of $812.

2. If the stay lasts over 60 days, the individual will have to pay $203 per day in coinsurance for days 61-90 (could be a $6,090 coinsurance limit).

3. After the 90th day, the individual can choose to pay $406 per day for as many as 60 additional “lifetime” reserve days (could be a $24,360 coinsurance limit) or pay the full charges himself.

Part B (Medical Insurance): 1. The annual deductible will remain $100, with Medicare paying 80% of the covered and allowable charges after that. The individual or his supplemental insurance will pay the 20% not covered by Medicare.

2. The cost for Part B (Medical Insurance) will be $54 per month.

Social Security benefits will increase by 2.6% (cost of living increase) for 2002.

W

hen Christopher P. Kocher, regional sales manager for Progressive Insurance Company in Harrisburg, Pennsylvania, passed his fifth and final institute, he became the 25,000th active insurance professional in the nation to attain the Certified Insurance Counselors designation.

Kocher has been in the insurance industry for approximately 11 years and with Progressive for 51⁄2 years. He works with the company’s Pennsylvania sales team and independent agents throughout the state.

Kocher explained. “I have been impressed by the professionalism and business practices of other CICs I have worked with over the years, and I feel that the CIC Program and designation will allow me to better serve my customers—Progressive agents.”

The CIC Program is conducted in Pennsylvania by the Professional Insurance Agents of Pennsylvania, Maryland, and Delaware. Kocher will be recognized at a special CIC Conferment Ceremony this coming June in Baltimore, Maryland.

Christopher P. Kocher, CIC

“Expanding my knowledge base through the CIC Program will help me better support the people I manage at Progressive,”

Agency Owners: Participate in the GPS study to improve growth, profitability, and productivity!

The Growth and Performance Standards (GPS) study provides agency comparison standards and benchmarks so you can gauge your agency’s performance and see where you most need to improve. Become an industry leader by setting the standards for others to follow.

Your input is appreciated; visit

our Web site using the URL address: www.scic.com/gpssurvey to get your questionnaire. Or you can call or e-mail to receive a questionnaire.

www.scic.com/gpssurvey 800/526-2777 jcuprisin@scic.com

Your participation will help the independent agency system and provide benefits for your agency. You can receive: ● An Executive Summary of Key Findings ● ●

A half-price copy of the GPS study (a $20 discount) Individual agency comparison and analysis to GPS results (with the study)

The study includes info based on agency size and region: ● Employee productivity standards ●

Liquidity ratios

Income and expense averages ● Benchmarks for top-performing and average agencies ●

All information you send us will remain absolutely confidential, and will be averaged in with other agencies of a similar size and region, with hundreds of agencies in our total sample.

Resources Spring 2002

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The word alone conjures up a series of shocking images. Our thoughts, unwillingly, turn again to the infamous events of September 11. Unfortunately, mankind has been coping with disasters since the dawn of time. Disasters are, quite simply, a part of our everyday lives. They range in size from local flooding issues to regional hurricanes to terrorism which shakes a nation. So, how do we appropriately deal with such an ever-present, pervasive issue? The term is called crisis management. Certified Risk Managers International (CRM) commonly defines crisis management as the act or process of managing a crisis to prevent (if possible) and reduce the impact of catastrophic losses to an organization and society. Quite simply, it reflects our level of preparedness from both a preand post-loss standpoint.

Today, crisis management has reached new heights of public awareness. As we bear witness to an increasing number and breadth of policy exclusions, we understand that transference of these exposures is not a viable option. We must deal with them, hence the role of the risk manager and insurance professional. We are finding today that risk managers and insurance professionals are playing an increasingly active role in disaster preparedness and mitigation. So, exactly where does the process start? Let us begin with a review of the societal impact in terms of dollars spent over the past couple of decades.

Billions and Billions of Dollars Over the past 22 years, there have been a total of 49 weather-related disasters in which each disaster’s costs reached or exceeded $1 billion. Of these, the overwhelming majority (42 disasters) occurred during the 1998-2001 period with total damages exceeding $185 billion dollars.* Remember, these are only weather-related disasters. Imagine how much it would be if we were to include the preliminary estimates from the WTC and Pentagon disasters! [*sources: National Weather Service, FEMA, NCDC]

3232 Resources ResourcesSpring Spring 2002 2002

An Overview To initiate the crisis management process, our first and most important step is to gain full and complete management support.

Management support is absolutely paramount to successful crisis management.

Absent this support, well-designed programs sit on shelves, training drills are never conducted, and contingency plans are never executed.

Assuming we have now gained management support and determined the broad parameters of what we hope to accomplish with our plan, where do we now begin? A team should be assembled which comprises representation from all departments. The team will begin addressing five key areas: 1. Planning

Lastly, the recovery phase will consider how rapidly the organization can recover from each disaster. Obviously this phase is strongly focused on the mitigation aspect.

During this process, the team will also need to weigh other critical issues such as what are the objectives of the crisis management plan? Some programs, depending upon the industry, strive for business continuity, i.e., civil construction. Other programs focus strongly on public image, i.e., public utilities. Whatever the program’s objectives (and there are generally more than one), it will be important to ensure that the program’s goals and objectives complement other corporate goals and the overall company mission statement.

2. Prevention

Tips for Avoiding Common Pitfalls

3. Preparedness

One of the most common mistakes is to try to include too many perils or disasters, thereby impeding the completion of the plan.

Tip: Consult your broker, insurance company, or local agencies to consider which disasters are most likely to affect your organization and begin by addressing only these exposures.

4. Response 5. Recovery Each of these areas are critical for carrying out a comprehensive crisis management program. Briefly, the planning phase addresses principally the assessment of disasters to the organization and the prioritization of perils to which the plan will address. The prevention phase undertakes a series of activities designed to address the perils in sufficient detail to prevent the disasters from occurring and/ or mitigate the impact thereof. The preparedness phase seeks to refine processes and procedures as well as address the training aspects which are integral to crisis management. Interestingly, this phase never ends. In order to have a top-rate crisis management program, a continuous training program is imperative. In the response phase, the team will look to simulate disasters and consider exactly how the organization is prepared to deal with each type of disaster. This phase actively coordinates with local and federal agencies.

Another very commonly encountered problem is the failure to update your crisis management plan. As your facility changes (expands or your operations change), or new products or designs are added, your crisis management plan needs to be updated to include these changes.

Tip: When a procurement request is processed, review the crisis management program and ask, “Will this affect our plan?”

If so, update the plan.

Additionally, a lack of training drills is analogous to unwarranted extended periods of recovery and potential loss of human lives. Imagine the chaos of attempting to evacuate 300 or more employees from

a burning facility without the benefit of regular practice drills.

Tip: Post evacuation plans throughout your facility and include evacuations, fire extinguisher training, etc., on your safety committee’s annual agenda.

Another area of opportunity is presented by improving internal communications to employees. Remember, as employees are hired, review with them your crisis management program, and at least semi-annually thereafter. These communications are critical in addressing issues such as what constitutes a disaster? Do employees report to work when a hurricane watch or warning is in effect?

Tip: Start a corporate newsletter, post emergency information on employee bulletin boards, and use payroll stuffers.

Keep these tips in mind when working on your crisis management program. Remember disasters, small and large, can strike at any time — usually with little notice.

Consequently, preparedness is absolutely vital to an organization’s survival.

Deborah M. Hampton, CIC, CRM, CPCU, ARM Deborah M. Hampton is an accident prevention consultant for Royal & Sun Alliance, an international insurer with operations in over 130 countries. Deborah is also a current faculty member of the Certified Risk Manager Program.

Learn More About this Topic from The National Alliance This hot topic is part of the CRM Control of Risk Course. You can never have too much knowledge in the critical area of crisis management — but you can be caught with too little. Check the program schedule in the center of this magazine for dates and locations of upcoming CRM courses. ■

Resources ResourcesSpring Spring 2002 2002 3333

A “High-Five” from the first CRM participants.

A

lot can happen in five years. A national risk management education program can be established, expanded, revised, and fine-tuned, for example. And within this five-year period, 457 professionals have become designated CRMs.

The Introduction of CRM More than five years ago, insurance education leaders William T. Hold, Ph.D., CIC, CPCU, CLU; W. L. (Will) Richard, CIC, ARM, AAI; and Douglas A. Smith, CPCU, CLU, ARM, recognized that while the roles of professional risk managers were changing, their educational oppor-

tunities were not. Together, these cofounders conceived and created Certified Risk Managers International and the CRM Program.

Along the way During 1997, over 1,200 people attended CRM courses, and 11 CRMs were designated following the program’s first year.

Momentum around the new program continued to build, and the risk management industry took notice. A1999 issue of The Risk Management Letter called the CRM Program “a hybrid between an intense traveling workshop and a risk management educational program.”

CRM Cofounders (left to right): W. L. Richard, William Hold, and Douglas Smith

A Change of Leadership THE GOAL To improve the practice and status of the profession by strengthening the performance of today’s risk managers through advanced education.

THE CONCEPT Bring together National Alliance experience and a national faculty of risk management professionals, create a curriculum featuring the direct application of skills, and offer a professional designation symbolizing a significant educational achievement.

THE CHALLENGE The risk manager’s wide-ranging responsibilities require a broad understanding of a variety of disciplines, often including accounting, law, finance, engineering — even psychology. And this program needed to be flexible enough to accommodate the latest trends, techniques, and technologies as they are introduced into the field.

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Resources Spring 2002

In 1999, Wayne Dauterive, CRM, ARM, was selected to lead the growing program, and a number of successes followed. In 2000, the NAIW approved CRM as an educational program qualifier for the Certified Professional Insurance Woman/Man Wayne Dauterive (CPIW/M) designation.

The number of CRM designees rose to 457 in 2001, and the grand total of participants exceeded the 10,000 mark for the

five-year period. Two curricula advisory committees met during 2001 to review, revise, and retitle the five courses. A partnership with the Risk and Insurance Management Society, Inc.® (RIMS) opened the door to greater educational options and flexibility for risk managers. RIMS recognized the CRM designation as fulfilling the Risk Management Foundation requirement of the RIMS Fellow (RF) program, and the five CRM courses were approved for the RIMS Fellow “professional activities and programs” CE requirement.

Effective January 1, 2002, CRM courses assumed their new names: ■

Principles of Risk Management (formerly Risk Management Essentials)

■

Analysis of Risk (formerly Risk Analysis)

■

Control of Risk (formerly Risk Control)

■

Financing of Risk (formerly Risk Financing)

■

Practice of Risk Management (formerly Risk Administration)

The 2002 program schedule includes 42 courses in 33 cities, reflecting and targeting the trends and real issues today’s risk managers need for doing their jobs and furthering their careers.

A Look Ahead With a solid foundation, seasoned faculty, and leading-edge curriculum firmly in place, the CRM Program has gained respect and recognition throughout the industry, as a growing number of risk managers have earned the letters CRM after their names.

What’s on the horizon for the CRM Program? Advanced CRM courses for added update opportunities are currently being explored. Another possibility: CRM OnLine, which would open a world of options for participants and make the program accessible to a greater number.

What we do know is that the next five years will continue to build upon the history of innovation and excellence established by the three founding fathers and current leadership of Certified Risk Managers International. ■

Improve your agency’s efficiency and performance with a selection of targeted Academy publications.

Critical Factors Impacting Agency Value, $28.00 Establish an action plan for success after learning which factors rank as most critical for adding and preserving agency value.

Fee-Based Services: Using Fees to Increase Revenues and Retain Accounts, $30.50 There are benefits and obstacles when providing fee-based services. This book is the definitive guide for sorting out if it will work for your agency.

Complete the Circuit: Insuring EDP Exposures, $28.00 High-tech exposures can mean high-tech headaches unless you learn how to confidently insure your customers. Help is here!

The Three Faces of Executive Liability: D&O, EPL, and Fiduciary Exposures and Coverages, $28.00 Win your clients’ trust and confidence by taking care of their liability exposures. This information details the risks and coverage needs for clients and prospects.

The Insurance Essentials Handbook,* $30.00 Here is the basic guide property and casualty insurance newcomers have been looking for! All agency employees should have this ready reference of specific terms, coverage forms, endorsements, and exclusions on their bookshelves. *Not Available in Delaware, Maryland, or Pennsylvania.

Maximizing Agency Value II, $62.00 The definitive book for making buy-and-sell decisions has been updated with new exhibits, the survey results of 800+ owners, and a CD you can personalize. The author is an experienced CFO and personnel director, agency consultant, and law firm VP.

Producer Compensation: A Profile of Pay and Performance, $42.00 Commercial and personal lines producers can see how they fare compared to their counterparts in other agencies. Learn answers to the questions you’re too polite to ask.

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JAMES K. RUBLE MEGA SEMINAR flexible schedule, a vacation site that can’t be beat, and presentations with substance and sizzle...the Orlando MEGA has all that and more for CICs and CRMs!

A Customized Conference MEGA participants schedule their own 20-hour programs by mixing and matching sessions within the five days scheduled. Whether you attend all of your classes in 21/2 days or spread them out over the week, you can tailor this seminar to fit your personal and professional preferences. And you can take extra sessions above and beyond your 20-hour update minimum—the price is the same, no matter how many topics you choose.

●

JUNE 24–28, 2002

You’ll Take Home More Than a Tan...

Whatever your specialization and experience level, there’s something new to learn at this MEGA Seminar. Sample topics: Tips, Tricks, & Traps of the CGL Policy, Enterprise Risk Management, Retail Agents’ Guide to Successfully Using the Wholesale Market, The ERISA Triangle, and The Exposures of E-Business. Of course, there will be other sessions on property/casualty, sales, and life and health topics.

All-Star Faculty Experts from across the nation, selected for their presentation skills and industry expertise, are on board for this MEGA. Take this opportunity to meet and discuss with the best, and don’t let the great networking opportunities pass you by.

Orlando’s Finest—Plus Golf!

Our hotel for the MEGA furnishes convenient shuttle service to Walt Disney World, Epcot Center, Universal Studios, and neighboring Sea World. Or arrange a tee time at the International Golf Club, just one mile from the hotel (guest room billing available on request). Most MEGA attendees schedule extra days to enjoy being in the nation’s top vacation spot. You should too!

One Requirement: MEGA participants must be dues-paid members of the Society of CIC or Certified Risk Managers (CRM) International.

One Price Fits All: $345 Register for the seminar by phone (800/633-2165), online (www.scic.com), or by sending in the form on page 37 of this magazine.

The Sheraton World Resort Orlando You’ll enjoy our MEGA accommodations, a well-located, 1,102-room hotel with three heated swimming pools, complimentary miniature golf, and a choice of restaurants and bars. You can call the hotel directly to reserve your room: 407/352-1100.

Room Rate: $109 single/double Cut-off Date: May 23, 2002

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Resources Spring Fall/Winter 20022001

Monday, June 24

Wednesday, June 26

7:30 a.m. – 8:00 a.m.

Registration with coffee and rolls

7:30 a.m. – 8:00 a.m.

Coffee and rolls

8:00 a.m. – 12:00 p.m.

8:00 a.m.␣ - 12:00 p.m.

CONCURRENT SESSIONS: 1 Personal Lines Questions and Answers

CONCURRENT SESSIONS: 11 Contractors Property Exposures and Coverage

Terry Tadlock, CIC, CPCU The Florida Insurance School Tallahassee, Florida

2 Tips, Tricks, & Traps of the CGL Policy R. Bryan Tilden, CIC, CPCU, ChFC, ARM, ALCM Tilden & Associates Pittsboro, North Carolina

12:00 p.m. – 1:15 p.m.

Lunch — on your own 1:15 p.m. – 5:15 p.m.

CONCURRENT SESSIONS: 3 Commercial Property Riddles, Rhymes, and Reasons Terry Tadlock, CIC, CPCU

4 Hows and Whys of Homeowners 2000 R. Bryan Tilden, CIC, CPCU, ChFC, ARM, ALCM

5:15 p.m. – 5:45 p.m.

Hospitality — Sheraton Resort Orlando

Tuesday, June 25 7:30 a.m. – 8:00 a.m.

Coffee and rolls 8:00 a.m. – 12:00 p.m.

CONCURRENT SESSIONS: 5 Employment Related Practices Craig F. Stanovich, CIC, CPCU, AU Braley & Wellington Insurance Agency Worcester, Massachusetts

6 Enterprise Risk Management Donald J. Riggin, CPCU, ARM Schiff, Kreidler-Shell, Inc. Cincinnati, Ohio

7 Your Estate Plan and the Living Trust Douglas J. Fleming, LUTCF Kingston, Massachusetts

1:15 p.m. – 5:15 p.m.

16 Maritime Exposures Timothy Malloy, CIC, CPCU, ARM, AMIM, LUTCF

5:15 p.m. – 5:45 p.m.

Hospitality — Sheraton Resort Orlando

CONCURRENT SESSIONS: 20 Risk Financing and Control through Contractual Transfer Richard G. Rudolph, PhD,CPCU, ARM, APA, ARP, AIAF,AAM

21 Professional Liability Exposures W. Mark Landers, CIC, CPCU, ARM

Thursday, June 27

Bernie Neff, CIC, CPCU Insurance Teaching Enterprises Cottage Grove, Minnesota

Friday, June 28

7:30 a.m. – 8:00 a.m.

Coffee and rolls

12 Garage Exposures

7:30 a.m. – 8:00 a.m.

Coffee and rolls

8:00 a.m. – 12:00 p.m.

M. Thomas Ruke Jr., CIC, CPIA, CWIS Insurance Business Consultants, Inc. North Fort Myers, Florida

CONCURRENT SESSIONS: 17 The ERISA Triangle: Fidelity & Employee Benefits Liability

13 Directors and Officers Exposures

8:00 a.m. – 12:00 p.m.

Richard G. Rudolph, PhD,CPCU, ARM, APA, ARP, AIAF,AAM Seaver, Rudolph & Associates, Inc. St. Charles, Illinois

Timothy Malloy, CIC, CPCU, ARM, AMIM, LUTCF Timothy J. Malloy Associates, Ltd. Dennisville, New Jersey

18 Insuring the Medical Professional

12:00 p.m. – 1:15 p.m.

Lunch — on your own

CONCURRENT SESSIONS: 22 Business Auto Policy Gaps and Exposures Susan C. Graves, CIC, CPCU, CLU, CPIW

23 Retail Agents Guide to Successfully Using the Wholesale Market David W. Henry, Esquire Allen Dyer Doppelt Milbrath & Gilchrist, P.A. Orlando, Florida

W. Mark Landers, CIC, CPCU, ARM Landers & Creel Insurance, Inc. Birmingham, Alabama

1:15 p.m. – 5:15 p.m.

19 Industry Update 2002

CONCURRENT SESSIONS 14 EDP Exposures

Susan C. Graves, CIC, CPCU, CLU, CPIW SCG & Associates Plano, Texas

Bernie Neff, CIC, CPCU

15 Workers Compensation Coverage: A Risk Managers Approach

12:00 p.m.

Adjournment

12:00 p.m. – 1:15 p.m.

Lunch — on your own

M. Thomas Ruke Jr., CIC, CPIA, CWIS

Orlando MEGA Registration Form Please Type or Print SS# __________________________________________________________________________________________ Name ■ Mr. ■ Ms. ___________________________________________ Designation(s) _______________ Agency/Company ______________________________________________________________________________ Check box if

new address.

Address ______________________________________________________________________________________

City/State/Zip _________________________________________________________________________________ Phone ( ________ ) ______________________________ FAX ( _________ ) ____________________________ Payment Method: ■ Check ■ VISA ■ MasterCard ■ AMEX This card is: ■ Corporate ■ Personal Card Number _________________________________________________________

Exp. Date ____________

12:00 p.m. – 1:15 p.m.

Lunch — on your own

Signature _____________________________________________________________________________________

1:15 p.m. – 5:15 p.m.

Please study the seminar agenda on this page and indicate below the section numbers of the topics you plan to attend. Your choices will not be considered final, but this tentative information will greatly assist the Society in the coordination of materials and personnel for this unique seminar. Thank you.

CONCURRENT SESSIONS: 8 Environmental Impairment and Pollution Craig F. Stanovich, CIC, CPCU, AU

9 The Exposures of E-Business and Emerging Insurance Coverage Richard G. Clarke, CIC, CPCU, RPLU, MIRM Palmer & Cay, Inc. Atlanta, Georgia

MONDAY, June 24

TUESDAY, June 25

(7:30 a.m. registration)

(7:30 a.m. registration)

(7:30 a.m. registration)

WEDNESDAY, June 26

THURSDAY, June 27

FRIDAY, June 28

A.M.

A.M.

A.M.

A.M.

A.M.

P.M.

P.M.

P.M.

P.M.

12:00 Noon Seminar Ends

10 So Sue Me Ross Pringle Wright & Greenhill, P.C. Austin, Texas

5:15 p.m. – 5:45 p.m.

Hospitality — Sheraton Resort Orlando The National Alliance for Insurance Education & Research is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to NASBA; 150 Fourth Avenue North, Suite 700; Nashville, TN 37219-2417; 615/880-4200.

General Information Registration Fee: $345* per person. The fee includes materials and reception for participant. All participants must present photo identification to the on-site registrar at the program.

Cancellation Fee: Cancellations received within 10 days of the seminar will incur a $105 non-transferable fee. * You must be a dues-paid member of the Society of CIC or Certified Risk Managers International to attend a Ruble seminar and receive credit for the CIC or CRM continuing education requirement. The annual dues are $70.

In accordance with Title III of the Americans with Disabilities Act, we invite all registrants to advise us of any disability.

Please submit your request as far as possible in advance of the program you wish to attend.

Please make payment to: Society of CIC

•

P. O. Box 27027

•

Austin, TX 78755-2027

•

800/633-2165

R-3

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Mayfield Chosen IIA Indiana Agent of the Year

Allied American Appoints New Vice President Robert D. Ellis, CIC, LIA, was recently named vice president of commercial lines for the Natick, Massachusetts office of Allied American Insurance Agency, Inc. He will be responsible for furthering marketing, client development, and client retention efforts. The Standard, Metrowest Daily News

Fette Wins National Award

Caesar & Seider Honored The Apartment Association of California Southern Cities (AACSC) named Caesar & Seider Insurance Services the Rental Housing Industry Partner of the Year. Darren D. Caesar, CIC (left), and Terri H. Davison received the award for the agency, which the AACSC membership has used exclusively for their workers’ compensation program.

News Release

Like Father, Like Son John W. Bailey, CIC, newly elected president of Professional Insurance Agents of New York State, Inc., was pinned by his Dad (William G. Bailey) with the elder Bailey’s PIA New York Past Presidents pin following John’s inauguration. William Bailey is also a past president of PIA National. John is executive vice president of the George B. Bailey Agency, Inc., in Dryden, New York. The Central New York Business Journal

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Resources Spring 2002

Gordon W. Fette, CIC, CPCU, AAI, AIS, regional sales manager of The Progressive Companies in Glen Allen, Virginia, was presented the Company Representative of the Year Award of the National Association of Professional Insurance Agents. The award is the highest honor PIA National gives to an insurance company representative. The PIA Association of Virginia and D.C. nominated Fette for the award. PIA Professional Agents Report

At the annual state convention in Indianapolis, the Independent Insurance Agents of Indiana (IIAI), named Terry (Dean) Mayfield, CIC, owner of Mayfield Insurance, Inc., Moorseville, IN, the IIAI Agent of the Year.

The award recognizes outstanding achievement by an individual property/casualty insurance agent. News Release

Independent Insurance Agents of Rhode Island Elect Slocum Robert Slocum, CIC, CPCU, president of the Slocum Agency in Warwick, Rhode Island, was elected president of the IIARI at their annual meeting. He is the president and co-owner of his second-generation, family-run agency, and has been active in agent association activities for many years. The Standard

Dave Fritz Named Wisconsin Agent of the Year The Professional Insurance Agents of Wisconsin (PIAW) selected David H. Fritz, CIC, CPCU, with TriCor, Inc. in Lancaster, Wisconsin, as the recipient of the state’s “Agent of the Year” award for 2001. Wisconsin Professional Agent

CISR Welcomes Five to Board The Society of CISR recently announced the selection of five new members to its Board of Governors. All will serve six-year terms.

Rhonda Lobell, CIC

Victor D. McCarley, CIC

Rhonda Lobell, CIC, is owner of Lobell-Dixon Insurance Agency, LLC, a property and casualty insurance agency in Prairieville, Louisiana, and Agency Support Services, LLC, a training resource for insurance customer service representatives. Lobell has 23 years of industry experience and is a CISR faculty member.

New Board appointee Victor D. McCarley, CIC, is the director of education and technical affairs for the Alabama IIAA in Birmingham. McCarley is a 25-year veteran of the insurance business, CISR faculty member, and dean of the School of Insurance for the IIA of America’s Virtual University.

Timothy L. McClendon, CIC, has been an instructor for CIC, CISR, and the Producer Schools. He is a licensed risk manager and cofounder of Hertel McClendon, LLP, in Hurst, Texas, an agency affiliated with Insurors Group, LLC.

Timothy L. McClendon, CIC

Catherine A. Tocci, CIC, (not pictured) is a vice president of Hotchkiss Insurance Agency, Inc., in Dallas, Texas, where she holds a variety of management responsibilities including computer operations, workflow management, personnel management, and training and supervision of the sales and service staff.

Also joining the Board is Krista Tankersley, CISR, executive vice president of Insurance Data Systems, Inc., based in Dallas, Texas. She is also the managing executive and a founding shareholder of MarketScout. She has extensive experience developing and managing business strategies and newly formed entities.

Dual Honors for Peer The National Association of Insurance Women Louisiana State Council recently elected Joycelyn M. Peer, CIC, CPIW, public relations committee chairman and also gave her the Professional of the Year award. Peer is a past president of NAIW of Acadiana and is a commercial lines CSR of ICT Group in Lafayette, Louisiana. Surplus Line Reporter & Insurance News

PIAA of Ohio Elects President Angela Kurlich, CIC, CPIW, vice president of William H. Angle Insurance Agency in Akron, Ohio, has been selected 2002 president of Professional Insurance Agents Association of Ohio, the largest independent agents’ association in the state.

Kurlich has been a member of PIA for over 14 years. News Release

Krista Tankersley, CISR

Have You Been “In the News” Lately?

To submit items for editorial consideration, send article with picture to: The National Alliance/Resources P.O. Box 27027 Austin, TX 78755-2027

IIANC Building Dedicated Tom Marshall (son of Tom Marshall, Sr.), stands in front of the education room of the new Independent Insurance Agents of North Carolina Building in Cary. A donation by the Marshall family helped fund the new center.

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C I S R

O n L i n e

E

ducation,

Designation, Anytime, Anywhere.

Discover a smart new way to earn CE credits and the CISR designation — CISR OnLine is the complete Web-based training program with all the courses, all the CE credits…and without the travel and time away from the office.

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PAID Permit No. 93 Austin, TX Street Address: 3630 North Hills Drive, Austin, Texas 78731 Mailing Address: P.O. Box 27027, Austin, Texas 78755-2027

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Resources Spring 2002