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Immediate Producer The National Alliance School for Producer Development Dallas, Texas

September 22-October 11, 2002

San Francisco, California

January 19-February 7, 2003

New England (location to be announced) Ft. Worth, Texas

June 8-27, 2003

September 21-October 10, 2003


hat happens when you send a group of new insurance sales personnel to a concentrated, three-week school to learn the basics of commercial lines sales and products under the guidance of experienced industry pros? You create…immediate producers.

Fast-track, practical education is the hallmark of our Producer Schools. If your goal is to build a team of motivated, ambitious, commercial lines producers who can sell in a hard market, we can return them to you ready to deliver immediate results and profits. Course of Study

Tracking Achievement

Students are immersed in problem-solution concepts and case histories, so they quickly learn the world of their commercial clientsto-be. Top industry producers provide college-level training for 3 weeks, 5 days per week, 8 hours per day. Yes, it’s intensive— and it’s a proven way to get results.

We will help monitor your producer’s growth using on-line production reporting—tracking hit ratios and year-to-date progress toward annual goals.


Commercial Liability ■ Professional Liability ■ Business Auto ■ Garage ■ Workers Compensation ■ Excess Liability/Commercial Umbrella ■ Employment-Related Practices ■ Commercial Property ■ BOP ■ Inland Marine ■ Time Element ■ Commercial Crime SALES SEQUENCES AND STRATEGIES

The 3-Step, Insurance-Specific Sales Process ■ Super-Qualifying ■ Buyer Profiles and Response Patterns ■ Diagnostic Appointment and Protection Review ■ Handling Objections ■ Goal Setting

Who Should Attend Industry newcomers and entry-level personnel of insurance agencies and companies are perfect Producer School candidates. The curriculum is college level, however, a college degree is not a prerequisite. Class size is limited and students are accepted on a first-come basis.

Want to Know More? Learn more about dates and locations, tuition and fees, registration, and application when you visit our Web site or call for information.


Some insurance organizations that have sent students to our Producer Schools: J. Smith Lanier & Co., Inc. Albany, GA Palmer & Cay, Inc. Columbus, GA Sylvia & Company North Dartmouth, MA The Leavitt Insurance Agency Las Vegas, NV Arthur J. Gallagher of LA Lake Charles, LA Saldana & Associates, Inc. San Juan, PR Insurance Services Hannibal, MO Aparicio, Walker & Seeling, Inc. Madisonville, LA Wells Fargo Insurance, Inc. Fargo, ND The Mahoney Group Mesa, AZ AON Risk Services New York, NY McQueary Henry Bowles Troy, LLP Dallas, TX

800-633-2165 2

Resources Summer/Fall 2002

in this issue… From the President CIC—a choice people trust. One of the most challenging tasks we face as an organization, and you face as a professional, is making people aware of the value of your services. In short, giving people the opportunity to know us individually and collectively, and providing them with reasons to entrust us with their business. While we are in the early stages of creating an awareness of you as A CHOICE PEOPLE CAN TRUST, important progress is being made in the following areas: City Business Journal Advertisements. We have launched a national ad campaign in business journals across the United States focusing on the question, “Is Your Agent a CIC?” And if not, why not? CIC Select. The unprecedented recognition by insurance carriers, i.e. AIG, that as a CIC, you are the agent trusted to produce good business. CIC Member Directory. The first international online directory of insurance professionals that allows people to find you and be able to make a choice they can trust. Agency Commitments. The commitment of leading agencies, including The Leavitt Group, Ramsey, Krug, Farrell & Lensing, and Talbot Corp., to have their eligible employees and producers involved in National Alliance programs. Whether it’s individual agents, CSRs, the world’s largest insurance company, or the hardware store owner on Main Street, we have one simple goal: to be “the choice they trust.” Even more importantly, to provide value to all these people and a manner that continues to earn their trust.

Features 4

The Battle Continues…


Referral Selling in a Changing Market Eight Golden Opportunities


You Can’t Put a Price Tag on Service The Best Bargain? You!


Time Element Coverage Relying on Other Businesses


Managing a Healthy Office Environment It Could Be Time for a Check-Up


EGTRRA! EGTRRA! Economic Growth and Tax Relief Reconciliation Act of 2001

Departments 11

CIC Select Connects AIG + CIC + MarketScout


Agency Spotlight Little Rock’s Ramsey, Krug, Farrell & Lensing


Leverage for the Lean Times The Value of Risk Management in a Hard Market


Mission Accomplished Agency Operations and Agency Management Renovations Complete


Keys for Acquiring Agencies Why Buy?


9/11 Retrospective Stepping Up When Disaster Strikes


Selective Makes Commitment Agency Management Specialists Get CIC Training

Alliance News 18

CRM News—New Options, New Flexibility Outlines on the Web…CRM for CIC

19 34

The National Alliance National Program Schedule Our Triple Crown Champions Saluting Our Triple Designees


Be an Instant Hit On

38 President, the Society of CIC

Covering Terrorism

In the News CIC Newsmakers 2007-0802

Web site: ◆ E-mail: ◆ Fax-on-Demand: Resources800/828-8454 Summer/Fall 2002 3

ResourcesSummer Summer/Fall 4 4 Resources 2002 2002

The events of September 11, 2001, did what previous acts of terror in America had not— brought awareness to the global insurance marketplace that random terrorist acts can and will continue to occur in the United States and just how devastating those acts can be. Where, when, and how often the acts will occur is the unknown fear of underwriters around the world. The combined losses from this disaster make up the largest insured loss in the history of insurance. The reaction from the insurance industry was immediate and far-reaching. The insurance world, as a whole, began revising insurance contracts and reinsurance treaty negotiations began anew.

Aviation The aviation industry was the first to feel the effects of this reaction. Aviation policies typically exclude war which includes, by definition, hijacking and terrorism. Large commercial insurance buyers purchased war and terrorism coverage separately on aviation policies and typically paid a substantially reduced premium for the risk in North America. Smaller insurance buyers typically had this coverage added at little or no charge for their domestic risk. The war risk coverage contains a seven-day provision that allows insurers to modify the policy terms, conditions, and buy-back costs for coverage. Following 9/11, policyholders were immediately advised that war and terrorism would henceforth be excluded unless purchased at a highly increased charge. At that time, only $50 million of coverage was available for terrorism. That created a problem for the commercial insurance buyer because the lenders and lessors of commercial aircraft require a minimum of $100 million of coverage, including war risk and acts of terrorism.

Other Lines of Insurance This rush to exclude terrorism spread rapidly to other lines of insurance such as commercial property, inland marine, and liability policies, as soon as their terms and conditions of coverage allowed. Prior to 2002, very few American policyholders had terrorism exclusions on their policies. Those insureds that had overseas exposures, marine coverage, or aviation policies had limitations placed on the policies, depending on the countries the underwriters felt were at risk for war, hijack, and terrorist losses. Clients could often buy back such limitations or exclusions by endorsement or under separate cover for a price that was dependent upon location of risk.

Effect of Reinsurers The reinsurance treaties in effect as of 9/11 typically contained terrorism coverage in the domestic ceding insurers’ contracts. However, that all changed on January 1, 2002, when approximately 70% of the U. S. reinsurance treaties renewed. Most of those treaties renewed with terrorism excluded, leaving the primary insurers without protection for terrorism. The majority of the reinsurance treaties that renewed on July 1, 2002, followed suit. This move by the reinsurers has left the primary carriers in an unenviable position. Primary insurance companies are left with two options: (1) they must either retain 100% of the risk and attempt to price the risk, or (2) try to limit or exclude the terrorism exposure in its entirety. The former is hardly an option as there is no possible way to calculate probable maximum loss in light of inadequate historical data and actuarial models on which to base the pricing. The latter option of excluding terrorism is the choice most

of the primary insurers are (or will be) taking.

The Federal Government Enter the federal government. On September 21, 2001, the U. S. Congress passed a temporary program, providing federal terrorism reinsurance as a backstop of protection to domestic airlines. This temporary program expired in both the U.S. and the U.K. on March 20, 2002. President Bush and Congress were advised by insurance representatives that future property and casualty insurance policies would leave many policyholders without coverage for terrorist acts. The House Financial Services Committee commenced hearings immediately to research the feasibility of the federal government providing terrorism reinsurance that would be paid for by federal tax dollars. The insurance industry proposed a plan to the House in October 2001. This plan was for a state-chartered mutual insurance company called Homeland Security Mutual Reinsurance. The proposal was to have one coverage pool for personal lines and a separate coverage pool for commercial lines. Participation in either pool was to be voluntary. This would provide reinsurance for all lines of property and casualty, including war risks under workers compensation statutes. This proposal was not accepted by the House and is effectively dead. The Bush administration proposed a three-year plan that was a combination of private sector and federal funding which capped the insurance industry’s exposure at $12 billion the first year. The plan was criticized by many in the political arena and is also effectively dead. The House Committee had several different plans promoted by a number of representatives. In November 2001, the House passed a one-year plan based on a loan guarantee to the insurance companies. The insurers would pay the first $1 billion in loss. Continued on page 6. Resources Summer/Fall 2002 Resources Summer 2002 5 5

pose.” (Certain words have been put in bold print for emphasis.)

For losses above that amount, the plan would pay 90% of the losses to be reimbursed by the insurance industry over a period of time.

not able to obtain approval of their exclusion in time for renewal. In many cases, this shifts the account to the nonadmitted market. Virtually all of the nonadmitted carriers have added or are in the process of adding terrorism exclusions using their own wording.

In 2001, the Senate Banking Committee had several proposals to consider and closed session without acting. The Banking Committee is currently considering various plans. At the April 2002 Legislative Conference of the Independent Insurance Agents of America (IIAA), Senator Christopher Dodd stated that he thought the Senate could put a terrorism program together by the end of April. That was found to be quite optimistic. Since then, the passage in June of Senate Bill 2600 sets out the Senate’s version of government reinsurance. This bill was sent back to the House Committee for reconciliation with the House bill.

The Exclusion


Terrorism is defined in the endorsement as follows: “ ‘Terrorism’ means activities against persons, organizations or property of any nature that involve the following or preparation for the following: Use or threat of force or violence; or Commission or threat of a dangerous act; or Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and when one or both of the following applies: The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or it appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. The endorsement also defines one incident to include “multiple events occurring during a seventy-two hour period and appearing to have been carried out in concert or to have a related pur-

Insurance regulators across the country are allowing admitted insurers to request filings to exclude terrorism from property, liability, umbrella or excess liability, and business auto policies. Workers compensation, marine, and aviation lines are not included. Two notable exceptions are California and New York. A number of states have placed contingencies on the filing requests that relate to the insurers’ ability to purchase reinsurance or the federal government enacting legislation providing insurance protection. The admitted carriers have options available to them. As a participating insurer of ISO (Insurance Services Office), a carrier can use the ISO exclusionary filings. If a member of AAIS (American Association of Insurance Services), a carrier can use the AAIS filings. Additionally, a carrier may look to their own legal department to design their own form language. Many insureds are receiving notices of non-renewal in the event the insurers are


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The ISO version of the exclusion (limitation) has been filed for use with commercial property, liability, umbrella, business auto, boiler & machinery, and crime policies. The ISO endorsement uses two separate threshold triggers to exclude losses: (1) when the total of all insured property loss exceeds $25 million or (2) 50 people sustain death or serious physical injury from an act of war or terrorism. These two thresholds are irrelevant if the act of terrorism involves the use of nuclear or pathogenic or poisonous biological or chemical materials. In that scenario, no war or terrorism coverage will apply.

In reviewing the terrorist and war exclusion as written, it would appear that the authors of this language have gone far beyond simply excluding war risk and terrorist acts to excluding any act of terror or violence from the coverage forms. Although using language from the U. S. Code of Federal Regulations, ISO has expanded the definition to the point where the circumstances under which the exclusion would be invoked is unclear. Part of the concerns that agents, brokers, and risk managers are expressing is whether or not the exclusion being used by the insurance company is specific to only the issue of terrorism. It is possible out of an overabundance of caution (and legitimate fear of legal interpretation of language and intent) that the endorsement language may go further and exclude such losses as robbery, rioting, and acts of destruction by an employee.

The Economy As to the impact on the insureds and economy now, during a question and answer session with the House Finance Committee on February 27, 2002, Alan Greenspan stated that the issue of terrorism insurance was not a threat to U.S. banks and that the problem has not affected the economy as a whole. Mr. Greenspan believes that “Much of the problem is that it is presumed that banks won’t lend unless a particular borrower has forms of insurance which previously they did not need.” Mr. Greenspan’s comments aside, it appears that this is exactly the case with many banks and many insureds. In April, IIAA and AAIS released a study verifying how the lack of terrorism insurance is, in fact, having a damaging effect on the economy. Large contractors and developers are reporting that funding is not available on projects unless they can verify terrorism coverage has been provided. Many real estate agents are reporting that some of their real estate transactions are not being funded and/or are being cancelled due to the lack of available or affordable terrorism insurance. Lenders are requiring owners of commercial buildings to verify terrorism coverage is in place on their collateralized property. As an

It appears, at least for now, that the insurance industry’s reaction to terrorism has left a gaping hole of uninsured risk with very limited coverage solutions. A longterm solution from the insurance industry is not yet at hand and may never come. In the short term, the only apparent immediate solution will have to come from the federal government assigning our tax dollars as a society to aid those in need. Let us hope that the need for federal intervention will be very short term indeed.

Sources Insurance Information Institute, Associated Press, Reuters, Independent Insurance Agents of America, Insurance Journal, Business Insurance Skills Center, Wall Street Journal

In April, IIAA and AAIS released a study verifying how the lack of terrorism insurance is, in fact, having a damaging effect on the economy. example, the Simon Property Group, owners of the Mall of America, went to court recently in Minneapolis and obtained a restraining order prohibiting GMAC Commercial Mortgage Corp. from purchasing terrorism insurance on the Mall of America and passing the cost of that coverage to the owners.

Where Are We Headed? Terrorism insurance has become more “available” in the intervening months since September 11th, but that is a relative term. Insurers such as AIG, ACE, Lloyds, and Berkshire Hathaway have offered various types and amounts of terrorism coverage, but the cost is prohibitively high for “target risks,” even for the largest insureds. Coverage limits up to $500 million appear to be readily available, providing the insured can bear the cost. The insurers are also limiting their risk exposure per location and this is often not enough to cover clients’ needs or satisfy their lenders.

By definition, terrorist acts are unpredictable in nature and have widespread impact across all lines of insurance and risk. With every government announcement of a terrorist threat, even without another devastating act, the insurance world withdraws further and further away from providing a risk transfer solution, except for very specialized markets. By the same token, the very real financial exposure for uninsured losses that insureds face is such that should another event of the same nature or worse occur, it could leave a tattered economy in its wake. The question seems to be whether or not the standard insurance marketplace is the appropriate venue for this risk exposure. The various hurdles of regulatory issues, financial and investment concerns, and actuarial models that have yet to be formed seem to be overwhelming. This is particularly true in the hard market that is plagued with so many other concerns for its stability and financial recovery.

About the Author: Marjorie L. Segale, CIC, CISR , RPLU, ACSR Marjorie began her insurance career as a commercial lines manager and producer in Northern California, then formed her own insurance agency, handling all lines of insurance. After the sale of her agency, she joined Insurance Skills Center, Inc., in Huntington Beach, California where she teaches both commercial and personal lines subjects and holds the position of director of education. Additionally, Marjorie provides expert witness and consulting services for a variety of insurance issues, teaches for IBA West, and is a national faculty member for the Society of CIC. Hear Marjorie Segale teach at the James K. Ruble Graduate Seminars: Ruble Graduate Seminar November 13-15 Napa, CA Ruble Multiple Topic Seminar December 4-6 Las Vegas, NV

Learn More About this Topic from The National Alliance Current events and related insurance topics, such as the terrorism endorsements, are often the types of topics which are presented at James K. Ruble Graduate Seminars and the MEGA Ruble Seminars. Check the agendas of Ruble seminars for the specific topics that are being offered by calling 800/633-2165. ■

Resources Summer/Fall 2002



e continue to hear the gnashing of teeth from increased pricing at renewal; our customers are shopping us “to death” looking for alternatives. We are faced with not only renewing our clients, but also growing the agency with increased revenues from new business while attempting to remain profitable. Some of you have overlooked the fact that it may cost you as much or more to retain a current client as to acquire a new one. Better focus on your bottom-line net profit, because some of you are in for a big surprise...more income yet less (if any) profit. Almost every agency we speak with has aggressive revenue increases included in this year’s business plan. Because many of your clients will be looking for alternatives, most agency owners see this as an opportunity for an aggressive growth in new business. The question becomes, how do we make that exercise easier? Our company experienced some $275 million in new premium growth nationally last year and we have set a very aggressive goal for the current year. In order to achieve our business plan we have adopted a process for achieving referrals. We have broken down the referral process into eight key opportunities for obtaining such a referral.

Eight Golden Opportunities The process begins with an agenda for each client visit (in person or on the phone), and we simply put this at the top of our visitation agenda. Because almost every client requires a visit or a phone call thoughout the year as a part of his or her routine service schedule, this is easiest to accomplish. It begins with having each producer make a list of the clients he considers in the top 20%. Each producer is then assigned the task of developing a list of 10 prospect names (no more than 10). During routine visitation, take the time and have the courage to ask your clients to review the list and make comments about any firms or individuals they know.


Interestingly, your clients can assist you in identifying the good ones, the bad ones, and the ones that you should avoid. Ask what they know about the company, owners, employees, reputation, size, and products. Ask permission to use your client’s name, and if a relationship exists with the company, ask for a note, a phone call, or even a visit to introduce you. This accelerates the time you spend developing a relationship, rapport, and trust. You should be “mining” your current database of clients on a formal and routine basis.

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A second opportunity for referrals is at the time of the policy

renewal delivery. You have a trusted client who has made the decision to buy from you. If you did not have the courage to ask for a referral at the point of sale, then ask when you deliver the policy. This is a golden opportunity to ask about other firms in the area, companies in the same industry, or the support vendor to the company. Again, we highly recommend that you make a list of 10 names and ask them to review the list. Don’t you owe it to other prospects to provide them with the same valuable services as this client? So ask!


What about when you are delivering claims checks? One broker recently told me that his agency does not involve producers in claims. What we heard was, “Let’s take the entire rela-


tionship and the reason the client is spending premium dollars with you and let’s destroy that bond and trust!” NO NO NO! The single most important time in the relationship with your agency is when you can stand there and deliver a check (no matter how big or small) to your client. This is the very event they pay you for, and you solidify trust and loyalty that may last a lifetime. During that moment, take the time to ask if there is anyone else that you can help avoid the same pain of loss. Sales are based on levels of emotion and you can’t get any more emotional than this moment. Top performers understand the emotions of selling and manage them to their benefit.

Super producers have learned to ask for referrals during the sale as a part of the close. Again, either develop a list or have specific accounts and individuals to ask them about. If you have a new account that will not give you a referral, we would question where they gauge on the “sales barometer.” You may not have the sale you assume you do. It is illogical to think that new customers won’t provide referrals. The real issue is that the producer doesn’t have the courage and the skill to ask. In either case, wouldn’t you like to identify that weakness and correct it now?


Ask for referrals at the “walk away.” Now here’s a tough one. You are walking out because this account or individual just doesn’t fit your prospect profile. While this particular prospect isn’t a fit, we cannot rule out the entire universe. Think of the time and money you have invested to get this far. Why not try to recover a portion of the wasted time and effort by at least acquiring a referral on the way out? Time-conscious producers understand the value of their time and they ask.


Your friends are golden! Start with your friends, and develop a select group (less than 10) of business associates that you can share leads with. History has taught us that the groups need to be kept small and each must be willing to put their best clients in the pool for referral. This requires a high degree of trust and takes time to develop. This is why we ask that you begin with friends who are business associates. The relationship and trust are already there, so take advantage of the asset.


Referrals are king! How many of you are in a “leads group” or involved in networking? Devel-

oping a group of professionals in other businesses is a great source of referrals. Whether a formal group or one developed on your own, look for CPAs, attorneys, bankers, real estate agents, developers, contractors, manufacturers, distributors, and friends in various industries. Choose one or two from each and have a formal time to regularly share ideas, activities, and be willing to provide names and information on the prospect that can be shared with the group. Start with your current client base and develop your group from there. If you are a new producer, join a networking organization and become involved.


What about your mentors and centers of influence? During your next sales meeting, develop a list of those individuals that you, the other producers, and the agency owners consider the centers of influence in your community or industry niche. From that list, develop individual strategies to work with these individuals for personal referrals to other firms. Your centers of influence typically know other successful prospects in your marketing area. These are the “pillars” that support the sales foundation of the agency. Develop a regular visitation schedule with them and have an agenda of the topics to be discussed. These are the “movers and shakers,” so capitalize on that relationship asset.

Happy Sales to You We are happy to share the tools that add to our success. As with any other part of agency sales management, there must be a process. To passively discuss it will not provide results. In fact, it will cost you time and money. Agencies have choices, and we see working the assets or relationship is far easier and quicker than cold calling and prospecting. The process includes developing a set of rules. Remember, rules are to be followed by all. Once you have the rules on the development of a referral program, these rules need to be maintained Continued on page 10.

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John P. Stanford, CPCU, CLU September 23, 1923 – March 10, 2002 The Society of CIC bid a fond farewell to John Stanford, a renowned insurance educator, national faculty member, and educational consultant who died unexpectedly in Seattle from complications following heart bypass surgery. John joined our national faculty in 1975 and became a key figure in the development of the CIC Agency Management Institute in the 1980s. He taught many of the first institutes, making important curricula changes along the way. In addition to serving as our educational consultant for CIC institutes in the Pacific Northwest, he was an influential and active committee member in the early years of The National Alliance, a relationship that continued until his retirement in 1994. John earned his MBA from the Wharton School at the University of Pennsylvania and then moved to Washington where he taught Insurance and Accounting as an assistant professor at Washington State University. John

Referral Selling …continued from page 9. with regular follow-up, review, and accountability. At least once a month, sit with your sales team and discuss your results to date. Have a targeted number for each person on your sales team. Talk about the names on the list and review a team strategy for turning the list into clients. You should follow your close ratio on this program and see how it compares to your traditional prospecting. You’ll soon learn that the agency and its people have a golden commodity called relationships, and few agencies are effective in a streamlined system to mine and develop those relationships. We hope that you develop a referral program for you and your sales team—it works! I wish you good success with selling.

About the Author: Tom Barrett, CIC, AAI Tom is president of SIAA MidAmerica, Inc., part of SIAA (Strategic Independent Agents 10

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then went on to become a professor in the department of Insurance and Real Estate at Seattle University.

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

In 1954, John began a 30-year legacy at SAFECO (then General Insurance of America) where he developed the company’s Education Department into a nationally recognized model in the insurance education field. John’s greatest joy came in helping others with their professional lives, their businesses, and their careers. Many of his students and associates continued to remember his contribution to their work and their lives long after his retirement.

CIC Editor Rodney R. Rezac, CIC, CPCU, ARM

“‘Management is the development of people and not the accomplishment of things,’ was John’s own definition of management, and we think this statement tells a lot about the man and his priorities,” said William T. Hold, a longtime associate and friend. “We thank John for touching our lives and adding so much to National Alliance programs over the years.”

Contributing Writer Lonni Swanson

Alliance) with 900 offices nationally and writing $2 billion in P&C premiums annually. He is a member of the Dynamics of Selling faculty and a $1 million revenue producer. To hear Tom teach, register for one of these upcoming DOS programs: Oct. 9-11 San Francisco, CA Nov. 13-15 Knoxville, TN Dec. 4-6 Buffalo, NY

Learn More from The National Alliance Getting referrals and qualifying these prospects are crucial skills for successful producers. The Dynamics of Selling program teaches both new and experienced producers how to develop selling skills and use creative techniques to become top producers. For further details or to register, phone 800/633-2165 or visit

CISR Editor Mark J. Rolland, CIC, CISR

CRM Editor Wayne P. Dauterive, CRM, ARM

Academy & NCIM Editor Jack Frick, CIC, AIS

Publications Art Director Becky Veach Contributing Designer Rhea Groepper 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:, E-mail: 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.

Acknowledging the proven capabilities of those who hold the CIC designation, American International Group, Inc. (AIG) has made a distinctive platform available to dues-paid Certified Insurance Counselors through CIC Select at And just what is CIC Select? CIC Select connects member companies of American International Group, Inc. (AIG), the leading U.S.-based international insurance and financial organization, to members of the Society of CIC in an electronic format. MarketScout is the agent responsible for screening and qualifying submissions to AIG and performing certain underwriting and administration functions. Each entity is unique. Each entity complements the other. CIC Select and MarketScout are subsidiaries of Insurance Data Systems (IDS), an insurance e-commerce holding company based in Dallas, Texas. How will it benefit CICs? It will enhance their competitive strengths. It gives them a market competitors won’t have. AIG’s depth of product offerings and worldwide reach is now readily available to CICs via CIC Select. For more information and access to your market, log in with the user/password at the top of your 2002 CIC dues statement and follow steps 1–3.

Resources Summer/Fall 2002


Give this question some serious thought:

Does your client purchase from you because of your service or because of your price?


f the answer is price, you’re probably working too hard. When clients purchase from you because you offer the lowest premium, they’re also likely to leave you if someone else offers a lower premium next year. It is very expensive to write a policy for only one term. The real profit and benefits kick in when you are able to write the renewal business. Just think of the amount of time it takes to complete the initial application and establish rapport with a new client. When you compare that to the time and effort it takes to talk with an established client about renewal and update last year’s information...well, you get the idea.

The S-Word “Service” is a big word in our industry. We use it constantly, but what does it really mean? What can we offer in the way of service that is different than the agency down the road? Beneficial service can vary from agency to agency, based on the clientele. For one agency, a beneficial service


Resources Summer/Fall 2002

may be staying open ‘til 7:00 p.m. and being open for business on Saturday. For another agency, beneficial service may be offering loss control services.

It may seem overly simplistic, but another very effective way to get a clear picture of who your clients are is to ask your employees. They know!

Who Are Your Customers?

What Are Their Needs?

Before you can proceed with the best service for your clients, you must first be able to identify your clients and their needs. There are a few ways to go about this. One way is to simply take a good look at your book of business. Who pays you the most premium? Do you have a large personal lines book of business or are you heavy in commercial lines or life and health? If your book consists of mostly personal lines, what types of policies compose the bulk of your business? What is the average age of your clientele? If your mainstay is commercial, what is your average-sized account? Do you seem to write a lot of business in a particular industry? Are your clients primarily white collar or blue collar? Are you writing a lot of health insurance? If so, is it group health or individual? Are you writing life insurance? If not, why not?

Once you’ve defined who your clients are, you’re ready to take a close look at which products and services will meet their specific requirements. Remember, companies that listen to and understand their customers are the ones that can best fulfill their service needs. Our agency conducted a survey to determine why (other than price) our clients do business with us. This is what we discovered: Our clients want us to help them understand their insurance needs and provide the right coverages. They are looking for our knowledge and they want us to educate them so they can make informed decisions. They’re looking for someone to trust. They have confidence in our ability to do what we say we are going to do.

Many of our clients have come to us as a result of relationships that were initially established outside of the office. Many of our clients have developed long-lasting relationships with us as a result of our doing business together. We have found relationships to be a very important part of our business. Our clients look to us for stability and professionalism. They have confidence in the fact that we are an established agency that will be here for them in the future. Our professional image helps to build confidence in our abilities to provide a stable and secure place for them to purchase their insurance protection. Another important characteristic our clients mentioned is our friendly attitude. They feel important when they call or visit our office. Customers want to feel important. They want to think their account is your only concern. When we are talking with our clients they become our numberone priority and we go out of our way to help them feel that way. But of all the reasons our clients do business with us, the most important seemed to be honesty. Our clients feel confident in the fact that we tell them the truth.

Capitalize On Your Strengths Some other needs you may find your agency satisfies could be specialized programs, convenience, location, bilingual ability, or reputation. You may be surprised to learn which needs you are actually filling. Once you have determined why your clients do business with you, take this information and make it work for you. Capitalize on the information by making it known to everyone. Advertise it. Flaunt it. Repeat it whenever you can. Incorporate it in your letter writing, your letterhead, your introductions at community functions. Repeat it whenever and wherever you can. Let it be contagious. Constantly remind your staff of these unique abilities and ask them to repeat those qualities to your customers and prospects. All of your communications—verbal, written, or visual—should emphasize your special strengths. It’s always good to take a look at your competition while reviewing your own

strengths and attributes. If you offer something your competition doesn’t, you’ll want to call special attention to that service. In today’s world, many agencies view the Internet as their competition. Yes, our clients can purchase insurance through the Internet. Yes, the Internet does satisfy the needs of some customers. Those customers whose only concern is the cheapest premium and who happen to be computer literate, may choose to purchase from a machine. However, most of our customers still have requirements a computer cannot satisfy. It’s difficult to build a relationship with a computer. Computers can’t make a client feel important. In my experience, they are less than friendly. They’re not always completely honest (especially if you hit the wrong key), and quite frankly, their reputation is suspect. The Internet is here to stay—and so is the good insurance agent! Do we offer much more than the cheapest price? You bet! The next time you talk to a prospect, sell them your agency and service first. The insurance product is something they have to buy. Your service is what they’ll want to buy!

About the Author: Lynn DellaCroce, CIC, CPIW Lynn is the owner of LDC Insurance Education. She has worked in the industry for over 25 years, and currently works as a producer for Byars–Thompson– Buchanan Insurance Services LLC in Santa Maria, California. Lynn has been teaching insurance classes for 21 years and is a member of the national faculty for CISR and Dynamics of Service. You’ll have several opportunities to hear Lynn teach this year. Just register for one of the CISR, Advanced Lecture Series, or Dynamics of Service courses listed below: CISR Commercial Property Sept. 11 Bakersfield, CA CISR Agency Operations Nov. 5 Pasadena, CA Nov. 19 Santa Maria, CA

CISR Personal Auto Oct. 10 Pasadena, CA CISR Personal Residential Oct. 1 Santa Barbara, CA CISR Advanced Lecture Series Nov. 26 Fresno, CA Dynamics of Service Dec. 6 San Diego, CA

Learn More About this Topic from The National Alliance When agency enthusiasm needs an occasional jump-start, or staff attitudes could use some adjusting, the one-day Dynamics of Service program provides training in the basics as well as the finer points of customer service. Even the most experienced customer service representative will learn important people skills that can have a positive impact on each and every customer. Register for any of the remaining 2002 Dynamics of Service courses listed below by going to ■

2002 DYNAMICS OF SERVICE Sept. 11 Sept. 18 Sept. 24 Sept. 25 Sept. 26

Harlingen, TX Greensboro, NC New Orleans, LA Baton Rouge, LA Lafayette, LA

Oct. 8 Oct. 10 Oct. 16

Mechanicsburg, PA Great Falls, MT Charleston, SC

Nov. 7 Nov. 8 Nov. 12 Nov. 13 Nov. 22

Boise, ID Oklahoma City, OK Philadelphia, PA Dallas, TX Las Vegas, NV

Dec. 3 Dec. 3 Dec. 3 Dec. 4 Dec. 5 Dec. 6 Dec. 6 Dec. 11

Kingsport, TN Salt Lake City, UT West Des Moines, IA Birmingham, AL Nashville, TN San Diego, CA Memphis, TN Denver, CO

Resources Summer/Fall 2002



key tenet in business is that businesses rely on other businesses. This is no great wisdom, but it is wisdom that is seldom realized by commercial lines producers when writing business interruption (time element) coverage. Even the smallest commercial entity has a dependency on other businesses in its dayto-day operations. Why then, is this overlooked by producers? The answer is simple: dependent properties coverage must be endorsed on to the time element portion of the property coverage. Should a time element-related loss occur without this endorsement, the results could be catastrophic for the insured. There are three ISO endorsements that can dovetail the business interruption coverage. All three, if endorsed correctly, should prove more than adequate for even the largest and most complex property accounts. The endorsements are: ●

Business Income from Dependent Properties - Broad Form - CP 15 08

Business Income from Dependent Properties - Limited Form - CP 15 09

Extra Expense from Dependent Properties - CP 15 34


Resources Summer/Fall 2002

This article shall focus on CP 15 08, which automatically includes extra expense. There are four classifications of dependent properties as outlined by ISO: 1) Contributing Locations 2) Recipient Locations 3) Manufacturing Locations 4) Leader Locations Contributing Locations: businesses that provide materials and services directly to the insured and/or to customers of the insured. It is important to know that utility service providers cannot be considered contributing locations. Use ISO endorsement CP 15 45 - Utility Services - Time Element to treat this exposure. Recipient Locations: entities which accept products and/or services of the insured, i.e. warehousing, cold storage, cargo terminals, etc. Manufacturing Locations: businesses that manufacture products for delivery to customers of the insured under contract of sale. The products manufactured are manufactured in the name of the insured. Leader Locations: locations, attractions, or other businesses which draw customers or business to the insured, such as a restaurant near a sports stadium, or a florist near a cemetery.

Let’s use a food processor, XYZ Meat Processing Company, as an example of a risk utilizing locations 1, 2 and 3: XYZ Meat Processing Company is a poultry processor manufacturing a multitude of chicken-based products which are featured exclusively at all locations of a regional, upscale supermarket chain. XYZ’s operations include processing chicken into all forms of edibles. A curing and seasoning operation is also present. XYZ receives its entire stock of raw poultry from Chuck’s Chicken Farm (Contributing Location #1) and Ralph’s Ranch (Contributing Location #2). XYZ produces 90 percent of its own product at both its plants. However, its line of Honey Chicken Wings is currently being produced by Chicken Time Foods (Manufacturing Location) under XYZ’s label. All products are then shipped to Carl’s Cold Storage Company (Recipient Locations) throughout the region, en route to the supermarkets (Recipient Locations). It is clearly evident that XYZ is heavily dependent on all of these businesses in its daily operations. As the producer for XYZ, it is your responsibility to be certain that all of these dependent properties are scheduled on CP 15 08, along with an adequate coverage limit.

Coverage limits under CP 15 08 essentially track the underlying business income limit listed under the property section, as long as a minimum 50 percent coinsurance requirement is maintained. The endorsement also extends coverage for miscellaneous locations not specifically scheduled. This coverage extension is minimal, providing only 0.3 percent of the business interruption limit per day. Dependent Properties coverage is a severely under-utilized and misunderstood endorsement, which, more often than not, is as essential to the commercial insurance program as primary time element coverage.

About the Author: Anthony G. Zaino, CIC, AAI, CPIA Anthony is a commercial lines specialist and producer for Anchor Brokerage Co., Inc., a large insurance and financial services firm with offices in Brooklyn and Huntington Station, New York. He is also an insurance instructor, teaching both producer licensing and continuing education courses for private schools, and is a member of many insurance organizations including the Society of CIC.

Learn More from The National Alliance The next issue of Resources will build upon this article and take a more comprehensive look at Business Income Coverage. In addition, find out more about time element coverages, such as business income, at CIC Commercial Property Institutes and Insuring Commercial Property CISR Courses. Business income issues may also be topics at the James K. Ruble Graduate Seminars. Refer to the National Program Schedule (in the center of this magazine) for dates and locations.

American AGENT & BROKER, with support from The National Alliance for Insurance Education & Research, presents:

The 2nd Annual Program Business Summit: Creating, Improving, and Selling Programs to Increase Your Competitive Edge Dec. 6, 2002 • Le Pavillion Hotel • New Orleans, Louisiana The American Agent & Broker 2nd Annual Program Business Summit is a one-ofa-kind event geared to address program business from a multi-faceted perspective. If you’re involved in program business as a retail agent, MGA, program administrator, or specialty insurer—or if you’re interested in learning how to become involved—you won’t want to miss this event! Topics will include: • Creating and Selling Profitable Programs • Working with Specialty Insurers on Program Business • Reinsurance Considerations for Program Business • Using Captives and Other Alternative Market Mechanisms • Creating Successful Programs in a Hard Market And Much More!

Society of C members IC are eligible fo r 10% disc a ount!

For additional information on speakers, topics, and testimonials from attendees at recent AA&B conferences, please visit our Web site at To register or to request more information, contact Linda Brumitt in our conference department at 800/706-2745, ext. 5546 (314/824-5546) or

February 14, 1950 – July 3, 2002 A slippery highway in central Texas recently claimed the life of Ken Wirtanen, assistant vice president and director of marketing for The National Alliance. A talented professional with a keen sense of humor, Ken always put himself in the participant’s seat when making decisions, and could be counted on to bring a direct approach and note of levity to each “marketing emergency,” his favorite oxymoron. From the first day he joined us in February of 2001, Ken made a big difference in a lot of little ways. Equally at home in the corporate and creative worlds, he had a way of making everyone else’s job easier to do. One of Ken’s last projects was planning and coordinating the “Resources 2002” meetings for licensees this past June. His mark is evident on many projects: Our new corporate look on printed communications. New and improved mailing lists. More

national ads. The CIC Member Directory. Big 800 numbers. Before joining The National Alliance, Ken had over 15 years of experience providing leadership and direction for both start-up and Fortune 500 corporations. He had an extensive background in software, telecommunications, and financial services organizations, and brought us fresh insight from his prior positions as business integration director, product development analyst, and marketing programs administrator for USAA in San Antonio. Everyone at The National Alliance is sincerely grateful for the significant professional and personal contributions Ken made during his short tenure. Ken Wirtanen was a computer wizard, an ardent sports fan, and an all-around great guy. We will all miss him very much.

Resources Summer/Fall 2002


it says next to the logo of the Ramsey, Krug, Farrell & Lensing (RKF&L) Agency in Little Rock, Arkansas. This is the agency slogan of one of Arkansas’ largest and most successful agencies, emphasizing the 24/7 “Strike Force” claims service that RKF&L promotes. But beyond their rescue-in-the-dark-of-night reputation, RKF&L’s agency principals cite three important reasons this major independent agency has gained prominence: serving specialty niches, developing the individual strengths of each employee through advanced education, and “working our tails off.” Tad Krug, CIC, chairman and CEO, has been a familiar face around The National Alliance for many years, through his involvement on the CIC and Academy Boards and the Executive Council of The National Alliance School for Producer Development. In the early ’90s, RKF&L was the pilot agency for the first in-house Dynamics of Service program and one of the first in-house Dynamics of Selling programs. Along with Krug, Timothy P. Farrell, CIC (president and COO), and Ronald R. Lensing, CIC (executive vice president and sales manager), oversee 94 employees at RKF&L, and while all three sell, little else overlaps in their agency duties. “Tim handles the operations, Ron is the sales manager, and I just dream big dreams,” Krug explains.

Home of Ramsey, Krug, Farrell & Lensing.


Resources Summer/Fall 2002

Recognizing and making the most of individual strengths extends to each employee at RKF&L. “We don’t put square pegs in round holes,” says Tim Farrell. The agency uses the industry-specific profile testing system Omnia extensively. “We want service personalities doing the dayto-day client service, and sales and management personalities producing business and managing the agency. We work hard to play to a person’s strength.”

A Brief History While RKF&L can trace its roots back to 1932 as a managing general agency, the retail company got its current name and focus when the MGA was sold in 1980. At that time there were only seven employees, including Tom Ramsey, now deceased, who came over from the MGA. Niche specialties developed at RKF&L as producers naturally gravitated toward their areas of interest, and a 1990 self-insurance acquisition lent yet another dimension to the burgeoning business.

Specialties of the House Considered Arkansas’ leading Medical Professional Liability Protection team, over a dozen full-time specialists in RKF&L’s Healthcare Division serve more than 36 hospitals, 2,000 physicians, and around 1,000 medical case managers and related healthcare professionals and orga-

nizations. The agency’s healthcare protection program, which includes claims management, loss control, risk management expertise, and the legendary “Strike Force” service, is the only one endorsed by AHA Services, a subsidiary of the Arkansas Hospital Association as well as the Case Management Society of America. Construction and surety bonds are another of RKF&L’s specialty areas, and the agency counts local, regional, and national accounts among their building industry clients. Full-time construction specialists service a client base that includes general contractors, subcontractors, highway contractors, utility contractors, and environmental companies. The function of the Risk Management Division of RKF&L is to recommend proven alternative insurance approaches to clients after thoroughly analyzing the risks unique to each situation or circumstance. The agency does a substantial self-insurance business in workers compensation. According to Ron Lensing, “Our goal is to determine our customer’s needs and offer value-added services to meet those needs. This distinguishes us from our competition while providing solutions to problems the customer may be experiencing.” Fees for service now account for 17 percent of the agency’s revenues.

The Motto in Action The signature service known as “Strike Force” refers to RKF&L’s ability to send help to the scene of trouble quickly, even during the wee hours. The claims department can be reached at any time through a hot line that puts customers in touch with a qualified member of the staff who will start the claims process immediately. According to Tad Krug, ultimately it’s all about attitude. “We work hard but have fun doing it,” he says. “Consequently, we don’t want people here who can’t feel the same way and exemplify it in their attitudes. If that doesn’t happen, then I believe we have failed them.” Giving back to the community is another RKF&L priority. The agency is involved with a number of non-profit organizations and hosts an annual Easter Seals golf tournament. RKF&L gifted a small house to Oasis, an ecumenical retreat center in Arkansas. Named “Still Waters,” it is used as a prayer hermitage for persons seeking solitude, reflection, and general “refueling.” RKF&L, the not-so-little Little Rock agency, plans to perpetuate the agency from within. With the addition of six stockholders, owners are active in virtually every phase of the operation, assuring professional service and commitment to clients. CEO Tad Krug concludes, “We hire people who have good attitudes and want insurance as a career. I’m from the school that believes this is the greatest business in the world.” ■

From left: Ronald R. Lensing, CIC, Tad Krug, CIC, and Timothy P. Farrell, CIC.

Resources Summer/Fall 2002


Since the early days of the CRM Program in 1997, participants have asked the question, “How can we get our hands on the course notebooks ahead of time, so we can study in advance?” Production and mailing costs made offering advance copies prohibitive—until now. As of July 2002, CRM students with paid registrations will be able to download a notebook from The National Alliance Web site ( for the course they’ll be taking. Each registrant will receive a confirmation letter that will include the URL for the download location. CRM notebooks on the Web will be in PDF (Portable Document Format) that can easily be read and printed with Adobe Acrobat Reader.They will include the text of the notebook in a condensed format (to speed downloading times), but not the exhibits or appendices. The downloadable notebooks are an added benefit for participants, made available at no charge. (For those without Adobe Acrobat Reader, a free copy of the program can be downloaded from CRM participants: Use this opportunity to get a jump on some of the challenging information you’ll be encountering in your upcoming courses. Be prepared, brush up, and hit the books!

It’s Official! CRM for CIC Participants seeking the CIC designation may now substitute any one of the five CRM courses for any one of the five CIC institutes. This new option was a direct response to the marketplace, where knowledge of risk management has become an important part of the “whole” insurance agent. This added flexibility allows some “customization” for individuals who previously thought a particular institute did not apply to them. For example: ■ An agent specializing in commercial lines will be able to substitute a CRM course for the Personal Lines Institute. ■ Company representatives may not have taken CIC because they felt the Agency Management Institute did not apply to them. ■ Employees of a large broker may not have any interest in a Personal Lines or Life & Health Institute. Now they can substitute a CRM course. Nine Courses = Two Designations. Both designations can now be earned by completing nine programs—any four of the CIC institutes and all five CRM courses. A great value for two great achievements!


Resources Summer/Fall 2002



Agency Management Commercial Casualty Commercial Property Life and Health Personal Lines

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 18-21 25-27 25-28 25-28 25-28 25-28 25-28 25-28 25-28 25-28 25-28 26-28 26-29

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 Dubuque (In-house), 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


OCTOBER 2002 02-04 02-04 02-05 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

Jackson, MS Columbus, OH Little Rock, AR Bowie (Annapolis), MD Omaha, NE Lake Placid, NY Beaverton (Portland), OR Allentown, PA Hilton Head, SC Irvine, CA Smithtown, NY Wilmington, DE Louisville, KY Edina, MN Blue Springs (Kansas City), MO Plano, TX Appleton, WI


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

Lansing, MI Burbank, CA Las Vegas, NV Tempe, AZ Charlotte, NC Albuquerque, NM Denver, CO Atlanta, GA New London, CT Danvers, MA Branchville, NJ York, PA Fredericksburg, VA Casper, WY Sacramento, CA Boise, ID San Juan, PR


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 13-16 13-16 13-16 13-16 13-16 14-16 20-22 20-23 20-23 20-23

Birmingham, AL CP Ontario, CA AM Federal Way, WA CC West Des Moines, IA PL Olathe, KS PL Northampton, MA CC Plymouth, MA CP Saratoga Springs, NY PL Franklin (Nashville), TN CC Austin, TX LH Denver, CO PL Marietta (Atlanta), GA CP Columbus, OH LH Dubuque (In-house), IA CC Baton Rouge, LA AM Edina, MN CC Billings, MT LH Greensboro, NC CP Verona, NY LH Myrtle Beach, SC LH San Antonio, TX CC El Paso, TX CP Edison, NJ AM Rolling Meadows (Chicago), IL CP Springfield, MO CC Oklahoma City, OK CP Williamsburg, VA 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

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


11-13 11-13 11-14 12-14

Springfield, IL Cleveland, OH Dallas, TX Denver, CO


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


FEBRUARY 2003 05-07 05-07 05-08 05-08 05-08 06-08 12-15 12-15 12-15 12-15 12-15 19-21 19-21 19-21 19-22 19-22 19-22 19-22 26-01 26-01 26-01 26-01 26-28 27-01 27-02

Birmingham, AL Atlanta, GA Tempe, AZ Portland, OR Columbia, SC Lansing, MI Little Rock, AR Mystic, CT Olathe, KS Gaithersburg, MD Capital District, NY Denver, CO Springfield, IL Toledo, OH Charlotte, NC Las Cruces, NM Philadelphia Area, PA Fort Worth, TX Cambridge, MA St. Louis, MO Houston, TX Richmond, VA Indianapolis, IN Ontario, CA Orlando, FL


MARCH 2003 05-07 05-08 06-08 12-14

Jackson, MS Austin, TX Edison, NJ Atlanta, GA


12-14 12-14 12-14 12-15 12-15 12-15 12-15 12-15 12-15 13-15 19-21 19-22 19-22 19-22 19-22 19-22 19-22 20-22 24-27 26-29 26-29 26-29 26-29 27-29

Chicago, IL Las Vegas, NV Federal Way (Seattle), WA West Des Moines, IA Edina, MN Tulsa, OK San Juan, PR Memphis, TN Salt Lake City, UT Sacramento, CA Omaha, NE Anchorage, AK Mansfield, MA Cary, NC Nashua, NH Pittsburgh Area, PA Milwaukee, WI Grand Rapids, MI Allentown, PA Louisville, KY Fargo, ND Syracuse, NY Richardson, TX Costa Mesa, CA


APRIL 2003 02-04 02-04 02-05 02-05 02-05 02-05 02-05 03-05 07-09 09-11 09-11 09-11 09-12 09-12 09-12 09-12 09-12 09-12 10-12 10-12 10-12 23-25 23-25 23-26 23-26 23-26 23-26 23-26

Birmingham, AL Gainesville, GA Boise, ID Edina, MN Buffalo, NY Myrtle Beach, SC Nashville, TN San Diego, CA Honolulu, HI Chicago, IL Cleveland, OH Huntington, WV Little Rock, AR Tempe, AZ Cromwell, CT Cedar Rapids, IA Northampton, MA Annapolis Area, MD San Jose, CA Lansing, MI Secaucus, NJ Denver, CO Indianapolis, IN New Orleans, LA Missoula, MT Asheville, NC Portland, OR Tyler, TX


Continued on next page.

To register for CIC institutes, refer to phone list on page 20. Resources Summer/Fall 2002



CIC Institutes



To register for any CIC institute, call the corresponding state association or Society number listed below. Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas

205/326-4129 800/633-2165 602/956-1851 800/633-2165 800/633-2165 303/512-0707 800/424-4244 717/795-9100 800/277-1171 770/921-7585 800/633-2165 800/633-2165 800/628-6436 800/438-4424 800/633-2165 785/232-0561

Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Missouri Mississippi Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York

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

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

800/849-6556 800/633-2165 800/555-1742 405/840-4426 360/571-7100 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

Washington West Virginia Wisconsin Wyoming

360/571-7100 800/633-2165 608/274-8188 800/633-2165

BEFORE YOU RESERVE 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.

Ruble Seminars PROGRAM KEY


AMP Agency Mgmt. 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

06-08 06-08 06-08 07-09 11-13 13-15 13-15 20-22 20-22

SEPTEMBER 2002 11-13 18-20 18-20 25-27 25-27 30-02

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


OCTOBER 2002 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

Resources Summer/Fall 2002


Mount Pleasant, MI St. Paul, MN Lancaster, PA Fort Lauderdale, FL Erie, PA Napa, CA Denver, CO New Orleans, LA Dallas, TX


Tampa, FL Las Vegas, NV

Indianapolis, IN San Diego, CA Cleveland, OH Tulsa, OK Atlantic City, NJ Livonia, MI


APRIL 2003 02-04 09-11 09-12 30-02

Myrtle Beach, SC San Antonio, TX Laconia, NH Kansas City, MO



DECEMBER 2002 04-06 04-06

17-19 19-21 26-28 26-28 27-29 31-02


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.

JANUARY 2003 22-24 22-24 22-24 29-31

Grand Rapids, MI Columbus, OH Dallas, TX Philadelphia, PA


FEBRUARY 2003 05-07 19-21 25-27 26-28 26-28 26-28

Bloomington, MN Omaha, NE Orlando, FL Orlando, FL Cambridge, MA Raleigh, NC


MARCH 2003 05-07 10-14 12-14 12-14 12-14

Birmingham, AL Denver, CO Tempe, AZ Atlanta, GA Baltimore, MD


Alabama Arizona Connecticut Delaware Florida Georgia Illinois Indiana Kentucky Maine Maryland Massachusetts Michigan Minnesota Missouri New Hampshire New Jersey New York North Carolina Ohio

205/326-4129 602/956-1851 800/424-4244 717/795-9100 800/277-1171 770/921-7585 800/628-6436 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

Oklahoma Oregon Pennsylvania Rhode Island South Carolina Tennessee (IIA) Tennessee (PIA) Vermont Virginia/DC Washington Wisconsin

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

BEFORE YOU RESERVE 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.



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.


Dynamics of Service

SEPTEMBER 2002 04 04 04 04 05 05 05 05 05 06 09 09 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12

Pasadena, CA Lexington, KY Hyannis, MA Burlington, VT Birmingham, AL Phoenix, AZ Danvers, MA Greensboro, NC Kearney, NE Framingham, MA Idaho Falls, ID Mechanicsburg, PA Dothan, AL Twin Falls, ID Springfield, IL Salisbury, MD Edina, MN Great Falls, MT Fargo, ND Omaha, NE Florham Park, NJ Albuquerque, NM Buffalo, NY Albany, NY Plattsburgh, NY Columbus, OH Mechanicsburg, PA Providence, RI Charleston, SC Waco, TX Dallas, TX Mobile, AL Bakersfield, CA Denver, CO Randolph, MA Troy, MI Mankato, MN Springfield, MO East Windsor, NJ Fishkill, NY Syracuse, NY Tulsa, OK Mechanicsburg, PA Harlingen, TX Casper, WY Tuscaloosa, AL


12 12 12 12 12 12 12 12 12 12 12 12 12 12 13 16 17 17 17 17 17 17 17 17 17 17 17 17 17 17 18 18 18 18 18 18 18 18 18 19 19 19 19 19 19 19 19 19 19 19 19 20 24 24 24 24 24 24 24 24 24 24 24 25 25 25 25

Phoenix, AZ Middletown, CT Marietta, GA Pittsfield, MA St. Cloud, MN St. Louis, MO Albany, NY Woodbury, NY Oklahoma City, OK Philadelphia, PA Mechanicsburg, PA Greenville, SC Springfield, VA Buffalo, WY Mechanicsburg, PA Cedar Rapids, IA West Des Moines, IA South Holland, IL Fort Wayne, IN Westport, MA Hagerstown, MD Lansing, MI Mahnomen, MN East Windsor, NJ Greenville, SC Kingsport, TN Austin, TX Brownsville, TX Wausau, WI Charleston, WV Independence, KS London, KY Kalamazoo, MI Cape Girardeau, MO Winston-Salem, NC Branchville, NJ Knoxville, TN Brookfield, WI Cheyenne, WY Lake Havasu City, AZ Burlingame, CA Bannockburn, IL Hickory, NC Paramus, NJ Reno, NV Cincinnati, OH San Juan, PR Beaufort/Hilton Head, SC Fort Worth, TX Roanoke, VA Madison, WI Las Vegas, NV Anchorage, AK Middletown, CT North Haven, CT New Orleans, LA Auburn, MA Escanaba, MI Florham Park, NJ Lehigh Valley, PA Houston, TX Salt Lake City, UT Casper, WY Huntsville, AL San Diego, CA Colorado Springs, CO Wichita, KS


25 25 25 25 25 25 25 25 25 26 26 26 26 26 26 26 26 26 26 26 30

Baton Rouge, LA West Springfield, MA Grand Rapids, MI Edina, MN Wilmington, NC East Windsor, NJ New York, NY Eugene, OR Fort Worth, TX Montgomery, AL Phoenix, AZ San Diego, CA Savannah, GA Lafayette, LA Baltimore, MD Edina, MN Rockville Center, NY Eugene, OR Philadelphia, PA Sioux Falls, SD Tupelo, MS


OCTOBER 2002 01 01 01 01 01 01 01 01 01 02 02 02 02 02 02 02 02 02 02 02 03 03 03 03 03 03 03 03 03 03 03 04 08 08 08 08 08 08 08 08 08 08 08

Sheffield, AL Little Rock, AR Santa Barbara, CA Saginaw, MI Jackson, MS Raleigh, NC Concord, NH Memphis, TN White River Jct., VT Jonesboro, AR Pleasanton, CA Costa Mesa, CA Raynham, MA Northampton, MA Fergus Falls, MN Middleburg Heights, OH State College, PA Jackson, TN Richmond, VA Cheyenne, WY Tuscaloosa, AL Tucson, AZ Duluth, GA Waterloo, IA Andover, MA Portland, ME Rochester, MN Charlotte/Cornelius, NC Reading, PA Dallas, TX Corpus Christi, TX Richmond, VA Stockton, CA Overland Park, KS Randolph, MA Framingham, MA Falmouth, MA Troy, MI Duluth, MN Las Cruces, NM White Plains, NY Mechanicsburg, PA Houston, TX


08 08 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10 11 11 15 15 15 15 15 15 15 15 15 15 16 16 16 16 16 16 16 16 16 16 16 16 17 17 17 17 17 17 17 17 17 17 17 17 17 18

Dallas, TX Amarillo, TX Stockton, CA Denver, CO Pekin, IL Greensboro, NC Las Cruces, NM Tulsa, OK Columbia, SC Rapid City, SD Lubbock, TX Pasadena, CA Orlando, FL Ft. Lauderdale, FL Great Falls, MT Oklahoma City, OK Rapid City, SD Wytheville, VA Anchorage, AK Lawton, OK Birmingham, AL Ontario, CA Rockford, IL Champaign, IL Edina, MN St. Louis, MO Helena, MT Concord, NH Wilkes-Barre, PA Charleston, SC Palm Springs, CA Randolph, MA St. Cloud, MN Springfield, MO East Windsor, NJ Ronkonkoma, NY Lima, OH Philadelphia, PA Charleston, SC Cheyenne, W Seattle, WA Cheyenne, WY Mobile, AL Burlingame, CA Marietta, GA Honolulu, HI Bannockburn, IL Baltimore, MD Jefferson City, MO Asheville, NC Florham Park, NJ Newburgh, NY Tyler, TX Manassas, VA Seattle, WA Manassas, VA


To register for CISR courses, refer to phone list on page 22. Resources Summer/Fall 2002





JUNE 2003


04-07 11-14 11-14

04-07 04-07 18-21 25-28

Principles of Risk Mgmt. Analysis of Risk Control of Risk Financing of Risk Practice of Risk Mgmt.

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.

SEPTEMBER 2002 09-12 18-21 18-21 25-28

Atlantic City, NJ PRI Philadelphia, PA FIN Wauwatosa (Milwaukee), WI PRA Nashua, NH CON

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

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

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

05-08 05-08 12-15

San Francisco, CA Nashville, TN Mystic, CT

APRIL 2003

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

09-12 23-26

NOVEMBER 2002 06-09 13-16

Houston, TX ANA Columbia (Baltimore), MD PRA

Orlando, FL Seattle, WA

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

San Diego, CA Philadelphia, PA Houston, TX Denver, CO



DS Dynamics of Selling DSM Dynamics of Sales Mgmt.



MARCH 2003

Cambridge, MA Albuquerque, NM


OCTOBER 2002 09-11 16-18 30-01

Burlingame (San Francisco), CA DS Orlando, FL DS Lisle (Chicago), IL DSM

NOVEMBER 2002 13-15

Knoxville, TN

Amherst (Buffalo), NY Springfield, VA


JANUARY 2003 15-17


Fort Lauderdale, FL


Resources Summer/Fall 2002

JULY 2003 09-12 09-12 16-19 23-26 30-02

Anchorage, AK Atlanta, GA San Antonio, TX Indianapolis, IN New Orleans, LA




12-14 19-21 26-28

Honolulu, HI

San Jose, CA

White Plains, NY Portland, OR Houston, TX

Call The National Alliance at 800/ 633-2165 to register for any CRM course.



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.


JULY 2003


09-11 16-18 23-25

Napa, CA Milwaukee, WI Providence, RI



06-08 20-22

Nashville, TN Denver, CO


APRIL 2003


09-11 23-25 23-25

Call The National Alliance at 800/ 633-2165 to register for any Dynamics program.

Savannah, GA DS Boston, MA DSM Beltville (Baltimore), MD DS

MAY 2003 DS

DECEMBER 2002 04-06 09-11


MAY 2003

Dynamics 04-06 25-27



MARCH 2003

OCTOBER 2002 Seattle, WA ANA St. Louis, MO ANA Dallas, TX FIN Monroeville (Pittsburgh), PA PRI


Portland, OR Dallas, TX Las Vegas, NV Syracuse, NY


14-16 21-23

Manchester, NH Little Rock, AR


JUNE 2003 04-06 18-20 25-27

Minneapolis, MN Cleveland, OH Tulsa, OK


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.

To register for any CISR course, Advanced Lecture Series, and/or Dynamics of Service program, call the corresponding state association or Society number listed below. 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

205/326-4129 800/633-2165 602/956-1851 800/633-2165 800/633-2165 303/512-0707 800/742-6369 717/795-9100 800/277-1171 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


O n L i n 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 credits‌and without the travel and time away from the office.

Contact us today!


w w w. c i s r - e d u . c o m

Resources Summer/Fall 2002



ou had no idea the conversation you just had with an employee was coming. In fact, you hoped you would wake up and find it was simply a bad dream. Your best customer service representative has just told you she is leaving the agency for another position with a competitor. After hearing the news and clearing your head, you asked why and you got the response you wanted. She has been offered more money. Although losing your star CSR will be difficult, you feel exonerated since someone offered her more money than you were paying. At least you were not the reason she is leaving.

How many times have you seen this situation? Someone says he is leaving for more money, but in fact is leaving because he just does not like the current work situation. Saying salary is the cause for the departure is easy on everyone; however, it places the blame squarely on the wrong reason. The employee does not have to go through the distasteful conversation of why he does not like working in the office environment provided, and the principal or manager does not feel he or she has been part of the reason for the decision by the employee to leave.

Observation Haven’t we all seen many people with management responsibilities who do not pay enough attention to the office environment and the impact it plays on productivity, morale, lost time, and turnover? There can be several reasons for this. One is that proper attention and observation is not paid to employee mannerisms, behavior, and activity. As human beings we are behavior driven and our behavior is performed for a precise reason. It is a reason that makes sense to the individual who is behaving. If we would learn to read employee behavior, we would learn a great deal more about the work environment in which we place our employees. By learn-


Resources Summer/Fall 2002

ing to watch employee behavior, we might learn that someone simply does not feel well, or is upset because the computer is slow, or did not like one of your decisions, or has a personal problem. Would it not be a powerful motivational tool if we could recognize there is a problem simply by seeing behavior? It does not mean you have to solve the problem; it only means you have to be aware one exists. Empathy can go a long way toward recognizing the needs of an employee. Further, you as the principal may adapt your behavior if you understand the impact it has on others.

Motivation At this point we need to look at employee motivation, agency objectives, and the employee’s reasons for working. I will not enter a debate as to whether an employer can motivate an employee. They cannot! All an employer can do is provide a work environment where people wish to work. Since motivation is wrapped around the satisfaction of needs, it can be inferred that offices with a motivating environment are satisfying employee needs. If you are satisfying those needs, then the productivity levels of employees will increase. Now let’s tie these needs to agency objectives. Agency objectives are focused on growth, service, and making a profit. Hours can be spent working on an annual plan, while little attention is spent on understanding how the resulting work will impact the work environment. Can you begin to see how accomplishing agency objectives should also satisfy employees’ personal needs? When this is the case, the work environment is such that employees will be happier and thus more productive. This need not be as overtly manipulative as it may appear. Rather, it should be viewed as being deliberately observant of what pleases your employees and then respectfully and politely accommodating those needs. Just as you treat guests in your home with deference and politeness out of a sense of respect, so you treat your employees. Through this

effort of consciously managing relationships, productivity increases because employees enjoy their work environment and are committed to results. Do you really think someone will leave a truly enjoyable work environment to go to an unknown work setting for a little more money? Sure, some people will leave for more money if the need is high enough to put a satisfactory work environment at risk, but that is the exception rather than the rule. When the agency’s goals and the needs of the employees are near congruency, and the agency’s work environment is satisfying most of the needs of its employees effectively, you will see high productivity levels. You will also see that the employee’s energy is focused on accomplishing work that meets the needs of the agency. Goals are more likely being met and employees are working well together. The principal or manager of the agency realizes that

accomplishments by the employees must be recognized and rewarded if the work environment is to remain clear. When the objectives of the agency and the needs of the employees are near congruency, the employees not only enjoy being in the environment, they prefer it. On the other end of the spectrum is an agency with defined goals and a work environment that are not in synchronization with the needs of the employees. In this work environment, it is very likely that your best CSR will come and tell you that he or she is taking flight. Productivity lev-

els are low and employees are not focused on the work. Instead, they are focused on themselves and doing things to satisfy their individual needs. Many times these needs will detract from performing what must be accomplished in the agency. It will go so far as creating divisive, non-productive behavior known as “office politics.” As this develops, “backstabbing” will occur between employees and energy for work is lost. In this scenario, agency productivity is much lower than it could be and turnover is high. To make things worse, the employees who do leave the organization are generally the better employees. There is competition for those employees and they know it. They will take advantage of their skill and ability (as they should) to find an office environment that satisfies them. Let’s delve further and determine things that may have a great impact on office environment—a place that creates meaning in an employee’s life. First and foremost, we as principals and supervisors must understand the impact our behavior has on our employees. I’ll give you an example. As an instructor for CIC, I have purposefully tried to destroy the educational environment of an institute right after my introduction, and doing so was easy. I walked to the front of the room, dimmed the lights to the point students could not read, and then turned on an overhead transparency that was blatantly out of focus. I then stood with my back to the class and read the objectives of my presentation. Once finished, I turned around to a podium and began to read in a very non-interesting tone. Within five minutes I had most of the class wanting to leave and sign up for another institute.

Situation You see, how you and I act, react, and behave in our environment can be the greatest influence on the office environment. All of us, no matter whether we are the newest employee at the lowest level or a seasoned CSR, have an impact on whether employees want to work in our Continued on next page.

Resources Summer/Fall 2002


office. As principal of my agency, I learned long ago that my actions and demeanor on any given day permeate throughout the office. If I am uptight, anxious, and sharp with my employees, they tend to exhibit those types of behavior in their work. It is not something they enjoy. If, however, I am relaxed and enjoying the workday, they too seem to be far more relaxed and enjoying the office environment—a need is being satisfied. We must realize that almost everything we do at work impacts environment. All of us should pay attention to our behavior and understand what impact it has on our employees and consequent productivity. Although there are many aspects that influence office environment, I would like to touch on three others: Office Surrounding, Tools for the Job, and Training. Most of us would like to work in an environment that is neat and professional. The stronger employees will gravitate to those agencies or companies where owners have pride of ownership. Employees want pleasant surroundings that are comfortable. After all, they are going to spend a good part of their life within those walls and I have found it matters to employees—it satisfies a need. It is therefore our responsibility to insure the office measures up to the expectations of the employees. It does not mean we must purchase all new furniture, but it does mean we must pay attention to the office surroundings. With the office setting being satisfied, I now move to a very important environmental factor. There is no greater need that someone may have than the need for accomplishment. We all want to feel that others see our accomplishments and we would like to be recognized for them. If


Resources Summer/Fall 2002

you want to seriously cloud office environment, then deprive employees of the tools they need to be successful at their level. Without proper tools, the employer and employees begin moving apart. The employer is losing productivity and thus profitability, and the employee is not in a position to satisfy the need for being successful. When I say tools, I mean computers, copiers, manuals, desks, calculators, and the list goes on. Here’s an example that most of us can relate to: What happens to the office temperament when the computers go down? When that file server stops working, there can be heard throughout the office a chorus of moans. Everyone’s environment would deserve a citation by the EPA. Sometimes by simply upgrading computers, an organization can greatly satisfy the needs of employees and increase productivity all at the same time. I know in my office when the computers are slow, it impacts how my employees feel.

Education Finally, I come to training as an environmental issue. Employees have an overriding need for feeling they are contributing. Without training (and this includes updating skills to stay current with our dynamic industry) employees will not accomplish what they would otherwise—and they know it. When we do not spend the money to educate our employees, we save an expenditure only to give it up in far greater amounts in lower productivity and turnover. You see, you may lose your best CSR because he/she is not afforded the opportunity to professionally stay up with peers in other organizations. Being successful creates meaning in one’s life, and the positions we have in our organizations had better satisfy that need or we will end up with only those employees who are satisfied with mediocrity. You have spent time reading an article that drives the point home that we must pay attention to the environment we craft for our employees. I am not saying a success-

ful organization has to do what I have said here—no, not at all. I will say that if you want success through your employees, you need to do this and more. This article has just scratched the surface. My objective was to make you aware of the importance of office environment. One could write a book and include such topics as compensation, position descriptions, performance evaluation, employee manual, interviewing and hiring, and a host of other topics and relate them solely to their impact to the environments we ask our employees to enter each day. What will your office environment be like tomorrow?

About the Author: James T. Lawrence, CIC Jim Lawrence began his career with Continental Insurance Company and left as Continental’s assistant vice president of management in New York after 11 years with the company. He formed Texas Alliance Insurance Agency, Inc. in Grand Prairie, Texas and also started an agency in Pagosa Springs, Colorado. Jim is currently chairman of the Board of Governors for CIC and instructs in Agency Management Institutes, the CISR Program, and the Managing People Ruble Seminar. Jim will speak at this upcoming CIC Agency Management Institute: Sept. 18-21 West Des Moines, IA Jim will also speak at the following James K. Ruble Graduate Seminars: Oct. 14-16 Honolulu, HI Nov. 13-15 Napa, CA

Learn More About this Topic from The National Alliance Never underestimate the value of a positive work environment. To further explore the motivational and psychological facets of agency management, plan to attend the Managing People Ruble Seminar or Dynamics of Sales Management program. For details, see the national program schedule, or call 800/633-2165. ■

by Wayne P. Dauterive, CRM, ARM s a hardening market problematic or opportunistic? That depends upon your perspective. Many events have led to the current state of the market. Most notable are the failure to properly underwrite risk resulting in horrific loss ratios, declining market and interest rates that have greatly reduced investment income, and most recently, the September 11 terrorist attacks. With losses estimated to be in excess of $70 billion as a result of the September attacks, much will likely change in the insurance arena. Weaker companies will either go bankrupt or become targets for takeovers, capacity will be greatly reduced, contract terms will be tightened, deductibles will be raised, and premium costs will continue to soar. As a result, companies are tightening budgets and cutting costs. In some instances, risk managers are losing their jobs while companies are outsourcing the risk management function. Enough about the doom and gloom of the hard market. What are the areas of opportunity that I alluded to earlier? What value does risk management bring in a hard market? The answer may depend on which side of the desk you are sitting. From a consultant standpoint, there is certainly opportunity to provide assistance to the risk manager in managing risk or even to pick up the risk management function as an outsourced risk manager if that position has been eliminated. Many larger brokers have considered providing risk management services including outsourcing in lieu of decreased revenue from lost accounts at renewal time. Buyers know that they need consultative

brokers more than ever to deal with the new market realities. Key risk management advisory relationships will be critical. Surviving risk managers have an opportunity to exhibit their skills by controlling losses, tapping alternative markets, and reducing the overall cost of risk. Underwriting will take on a renewed area of criticality in understanding what their company risk profiles are. Increased renewal pricing combined with more restricted coverage areas will surely lead to alternative market options for risk managers. Heightened interest in areas such as captives, integrated risk, self-insurance, and capital market solutions is currently being exhibited. However, these types of programs can be complex and are not a short-term, quick fix for a troubled marketplace. Risk management is the key to controlling the cost of risk in a hardening market. Implementation of risk management principles will enable you to effectively deal with this higher risk environment that is now prevalent. For larger companies, risk will be more broadly defined through a holistic approach now commonly referred to as Enterprise Risk Management. For smaller companies, a less than holistic approach will be taken by addressing key areas such as loss control, higher deductibles, and even self-insurance, as well as alternative market options, such as captives or pooling. One thing is for certain. Risk will be viewed and managed from an entirely different perspective from this point forward. Not only by risk managers, but

by insurers, reinsurers, brokers, and consultants. It is no longer business as usual.

Whether you are a risk manager, consultant, agent, or broker, now is the time to educate yourself in risk management. The Certified Risk Managers (CRM) Program provides a hands-on, practical approach to managing risk. The concentrated learning experience is filled with real-life examples of workplace problems with practical solutions you can readily apply in your daily performance. Don’t let this hardening market be problematic for you. Turn to CRM to assist you in seizing the opportunities that effective risk management can bring.

About the Author: Wayne P. Dauterive, CRM, ARM Wayne is vice president of Certified Risk Managers International. He has held both public and private sector risk management positions as a municipal risk manager, a director of risk management for a Fortune 500 company, and as vice president of risk management services for a brokerage firm. â–

Resources Summer/Fall 2002


, A R R EGT EGTRR A , Read all about it! On June 7, 2001, President Bush signed into law the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). This Act includes provisions that will reduce the federal income tax rates, provide additional deductions and credits for married couples and families, reduce then repeal the federal estate tax, and offer additional tax incentives for higher education. EGTRRA also includes many important provisions that affect qualified retirement plans. Some of the provisions are automatic and no special planning is necessary to receive the benefits. However, many others present important planning opportunities to take full advantage of the benefits. Your understanding of these provisions will allow you to take action now that can maximize the “relief” available to you and your clients. Tax season has long since passed, but its effects still linger for many taxpayers. Too many of us approach the dreaded tax preparation period with an attitude of resignation. We gather our records and take them to a preparer, waiting for the final news and hoping we won’t owe too much more than what we already paid in during the year. However, now more than ever, tax planning is imperative to take advantage of the benefits of the latest tax reform. You cannot afford to wait until next season to figure out how to minimize your tax burden and maximize the benefits of EGTRRA. 28

Resources Summer/Fall 2002

New Tax Brackets Over the next five years the tax rates will gradually decrease. Wherever possible, clients should delay receipt of taxable income until a later year when tax rates will be lower. The more taxable income involved, the greater the impact will be.

Marriage Penalty Tax Relief Prior to passage of the Act, the standard deduction amount for couples filing “married filing jointly” (MFJ) was set at approximately 167% of the value of single filers. Beginning in 2005, the Act annually increases the standard deduction amount for MFJ filers (as a percentage of the amount allowed single filers) until it reaches 200% in 2009. The disadvantage of this provision is that fewer people will qualify to itemize deductions; therefore, it may be wise to consolidate and/or prepay deductible items as quickly as possible to achieve maximum tax advantages. Also beginning in 2005, the Act annually increases the top of the 15% tax bracket for MFJ filers (as a percentage of the dollar amount for single filers) until it reaches 200% of the amount for single filers in 2008. These provisions will ultimately eliminate the “marriage penalty” for taxpayers who file MFJ.

Education Credits and Incentives Education IRAs, now known as Coverdell Education Savings Accounts (ESAs), and Section 529 Qualified Tuition Programs (QTPs) are affected by the EGTRRA. A detailed article on these accounts and programs will appear in the next issue of Resources magazine.

Retirement Plan Changes The contribution limits for both traditional and Roth IRAs have been increased. For 2002, the limit is $3,000 with an additional $500 contribution allowed as a

“catch-up” provision for eligible taxpayers who are at least 50 years of age. The “Required Minimum Distribution” (RMD) rules for traditional IRAs have also changed, but these rules are horrendously complex. The combinations and computations boggle the mind; however, if you lock yourself into an unfavorable RMD scenario, you will be stuck with it. Consulting a tax professional is well advised if you or your clients are approaching this stage of retirement. Mistakes, once made, are costly and generally irreversible. Section 401(k) and 403(b) arrangements also have increased contribution limits. For 2002, elective deferrals can be as much as $11,000 with an additional $1,000 deferral allowed as a “catch-up” provision. Also, participants may now make “Roth” contributions which are included in taxable compensation when made, but will not be subject to tax in the year distributed. Lower income taxpayers who make qualified contributions to IRAs or deferrals to retirement savings plans will now be eligible for a nonrefundable income tax credit. This so-called “Saver’s credit” is only effective until 2006 and is limited to $1,000 per person per year. The credit ranges from 10% to 50% of the contribution made, depending on the taxpayer’s adjusted gross income (AGI), and the maximum contribution taken into account is limited to $2,000. Other restrictions apply, but since this credit will only be available for the next five years, it is important to take full advantage of it while you can if you qualify.

Estate Taxes–Reduce, Repeal, and Reinstate The cruel joke of this tax reform is that estate tax repeal evaporates on January 1, 2011, and we will be magically transported

The cruel joke of this tax reform is that estate tax repeal evaporates on January 1, 2011, and we will be magically transported back to the tax laws that currently govern our planning. back to the tax laws that currently govern our planning. The biggest disservice politicians and lobbyists have done is to imply that tax repeal means that planning won’t be necessary—but nothing is further from the truth. Regarding liquidity to pay potential estate settlement costs, some experts say you can make a “little mistake” or you can make a “big mistake,” and only you can choose which. If you adhere to the argument that the estate tax will probably be reinstated (in reality, few people actually pay a federal estate tax, and with some planning, even fewer would need to worry about it at all), you will likely create or retain an estate plan that provides for sufficient liquidity for your estate to pay the anticipated federal estate tax. Alternatively, if you take a more optimistic approach and feel that Congress has finally given us a good law and whoever controls the legislature in 2010 will likely vote to finalize the repeal, and you feel you are likely to live another 10 years, liquidity to pay a federal estate tax would not factor into your estate plan. This approach certainly will appeal to some, but those who have spent a lifetime building an estate, which they would like to pass to their heirs, will find it fraught with uncertainty. If you plan that Congress will not repeal the federal estate tax and it is repealed, you will have extra liquidity to benefit your heirs and/or your favorite charity, or use for your own retirement—thus the “little mistake.”

The “big mistake” will result if you plan that the federal estate tax will still be repealed in 2011 and don’t provide for sufficient estate liquidity, and Congress allows EGTRRA provisions to sunset. Then, you and your heirs could suffer significant tax consequences. Since many people use life insurance to provide liquidity for estate taxes, they must consider whether or not they will be in poor health in 2011 and unable to use this liquidity vehicle. Even if they are in good health, the annual premiums for the insurance will likely be much higher than they are today. Will EGTRRA laws change again even before the repeal scheduled for 2010? If not, will the Congress then in session have the votes required to finalize the repeal? And if they do, will the President veto their bill, as President Clinton did in 2000? Even the experts won’t predict the answers, but waiting to “do the right thing” could be disastrous in estate planning. Hopefully this information will tweak your interest and motivate you to seek professional advice. Doing nothing can be far more costly than the fee charged for a tax consultation. If you are interested in taking full advantage of this latest tax reform to minimize your taxes and maximize your relief, now is the time to get started. Seize the opportunity!

About the Author: Jo Ann Dickinson, CIC, CPA, LUTCF

programs of The National Alliance, and she is sought after to present timely tax, retirement, and estate planning seminars for various organizations throughout the country. She is an independent insurance agent and tax practitioner in San Antonio, Texas. Hear Jo Ann speaking at the following CIC Life & Health Institutes: Sept. 11-13 Federal Way, WA Oct. 2-4 Jackson, MS Nov. 13-15 Columbus, OH Dec. 5-7 Lansing, MI You can also hear Jo Ann speak at the following James K. Ruble Graduate Seminars: October 23-25 Newport, RI November 7-9 Fort Lauderdale, FL

Learn More About this Topic from The National Alliance Taxes and investments are hot topics discussed at Life and Benefits Ruble Seminars. These subjects and related topics may also be presented at some of the James K. Ruble Graduate Seminars.Topics vary for each Graduate Seminar, so check with The National Alliance by calling 800/6332165 for details. ■

Jo Ann is a member of the national faculty for both CIC and CISR. She brings a wealth of knowledge and expertise to the Resources Summer/Fall 2002


CISR Renovates Agency Operations Course by Rose Marie Dillon, CIC, CISR, LUTCF


hen the Society of Certified Insurance Service Representatives (CISR) decided to offer courses via the Web, we wanted to present the best product possible. The Agency Operations material was thorough, but needed to be updated. We concluded that the Web-based course and the classroom course should tack similarly. The Web-based CISR Agency Operations premiered on July 1, 2001, and the new curriculum for the classroom Agency Operations was released on January 15, 2002.

Agency Operations is a course designed to help those in service learn how an insurance agency operates and to give them the tools to assist their customers. Seven Lessons We begin with the Overview of Internal Operations. This section relates how different factors work together to make an agency successful. These factors include management philosophy, agency size, personnel experience, and types of customers. One of the most important factors is personnel, emphasizing the difference between inside and outside staff. The second lesson moves into areas of Enhancing Skills and Abilities. It is important for service personnel to have technical knowledge in order to do their jobs accurately. Everyone in the insurance industry needs to have people skills, since this is definitely a people business. This section covers time management skills and how to prioritize. In every profession, responsibilities to several parties exist. In the Professional Responsibilities section, the emphasis is on how ethics are defined. The many reasons errors and omissions claims may be brought against agents are topics for discussion. Another responsibility as an insurance agent is to help your clients by using risk management techniques. The regulation of insurance companies is studied in the Insurance Marketplace section. Another issue addressed is the difference between standard carriers and alternative markets. As an insurance professional, there are many factors to consider when choosing which companies to represent. When we talk about a “system,” we are referring to much more than just a computer; it’s about the way the agency operates in every facet. Internal Systems talks about the importance of having an agency manual describing how your insurance agency operates. Communication systems and recordkeeping systems are focal points for discussion. In Streamlined Agency Processing, the goal is to make the procedures an agency undertakes as efficient as possible, avoiding unnecessary steps and duplication of effort. This section includes new business processing, renewal processing, policy service processing, and suspense systems, along with a discussion of several evidentiary proof of insurance forms. The last lesson, Agency Operations Summary, tackles errors and omissions claims, so prevalent in today’s business environment. To prepare the service staff, we


Resources Summer/Fall 2002

detail how an errors and omissions claim should be correctly handled. The updates and enhancements to the CISR Agency Operations curricula give insurance service professionals the skills and knowledge they need to pro-

vide superior service for their clients. Whether attending a CISR Agency Operations course in person or taking a course online, the experience provides practical information for working in today’s competitive insurance marketplace.

About the Author: Rose Marie Dillon, CIC, CISR, LUTCF

Revised Content for CIC Agency Management Institute In July of 2002, the new curriculum for the Society of Certified Insurance Counselors (CIC) Agency Management Institute was implemented nationwide. The updated institute differs slightly from the previous institutes because the topics will be the same at every institute. Previously, Agency Management Institutes had three hours of group discussions. Now there is a case study woven throughout the institute and used to help participants better understand the things that could go wrong in an agency and how to prevent or amend problems as they occur. Let’s take a look at the specific sections of the revised Agency Management curriculum:

Elements of Agency Development (2 Hours) Learn the fundamentals of agency planning, including the steps involved in the planning process. Understand the major areas in an agency that should be analyzed when establishing an agency plan. Gain an understanding of the steps involved in either starting an agency or opening a new location.

Agency Marketing (2 Hours) Understand both traditional and non-traditional company markets. Identify the contents

of a typical agency-company contract. Learn the tools to evaluate an insurance company. Identify ways for internal and external agency growth.

Human Resources (4 Hours) Gain an overview of the process of managing personnel, including legal guidelines, establishing job descriptions, interviewing techniques, performance appraisals, and termination procedures. Examine sources of employment practices liability exposures and analyze an Employment Practices Liability Insurance (EPLI) policy to determine coverage typically provided.

Agency Operations (4 Hours) Discover how to manage processes and the importance of having written procedures. Look at sources of receiving and distributing information. Understand how to use reports from an agency management system. Learn what e-commerce is available and how to utilize it.

Financial Analysis (2 Hours) Discover how the financial aspects of an agency affect all agency employees. Understand the basics of cash flow, profit and loss statements, in-

come and expense statements, and effective collection procedures.

Client Retention and Services (2 Hours) Establish client expectations and services. Learn why customers stay and why they leave. Discuss how to retain clients.

Legal and Ethical Responsibilities (4 Hours) Learn what motivates ethical behavior. Define the types of agency authority and the resulting liability. Examine the leading causes of errors and omissions claims made against agents and the risk control methods that can be implemented to reduce or prevent them. Review the coverages in an agent’s errors and omissions policy that should be compared when selecting a policy. The revised and updated Agency Management Institute continues to teach the important concepts that are critical for running an agency in today’s dynamic business world. The case study, used throughout the program, shows the practical applications of the theories, methods, and procedures that are taught during the program.

Rose Marie is an associate director of the curricula and faculty department of The National Alliance, and also serves as an educational consultant for CIC institutes. She entered the insurance business in 1986 with her family’s insurance agency and became a licensed P&C and Life and Health agent. Rose Marie worked on the agency side of insurance for 13 years prior to joining The National Alliance. To hear Rose Marie teach, register for one of the following CIC Agency Management Institutes: Sept. 25-28 Houston, TX Dec. 11-14 Dallas, TX ■

Resources Summer/Fall 2002


nsurance agency owners purchase agencies for a variety of reasons. Generally, there are a number of benefits that can be achieved through acquisition or merger. The Academy of Producer Insurance Studies identified these advantages in a recent survey for updating and rewriting a study titled, Maximizing Agency Value II: A Guide for Buying, Selling, and Perpetuating Insurance Agencies. Jon Persky, CIC, CPIA, is the author of this new study, and he uses the survey results to enhance his analysis, checklists, and sample agreements based on years of consulting and teaching experience.

idea, either. Ideally, agency owners need to find strong, successful agencies that will mesh well with the existing agency’s staff and culture. The Academy survey asked agency owners about the factors that contributed the most to their decision to buy. These results are displayed in the following graph:

A buyer can obtain additional company markets if the acquired agency has different markets. Plus, where there is congruency in company markets with both agencies, the buyer can increase the size of their books of business with specific companies and improve their company relationships by acquiring another agency.

Which of the following factors contributed the most to your decision to buy?

Agency owners ranked the following benefits of agency acquisition. These benefits are listed in descending order of importance:

Many of the above benefits or objectives can be achieved if agencies acquire other agencies that are financially healthy and a good fit for the buyer. Purchasing an agency that is not financially strong because it is cheap may not necessarily be a good idea. The purchase of a financially sound agency that is much different from the purchasing agency may not be a good


Resources Summer/Fall 2002

A number of the above factors are related to finding an agency that will be a good fit for the buyer. Of course, location is important. If the agency being acquired is close to the existing agency, it may be easier to manage and employees may be able to transfer easily from one location to the other. Alternatively, acquiring an agency in a different location can allow the existing agency to expand their territory if the seller is not located in the same market area as the buying agency.

Agencies can also purchase other agencies that have a similar business mix so they can continue to concentrate on the types of business in which they excel. Of course, an agency with a different business mix can also be purchased if the buyer is interested in expanding into different lines of coverage. Size of agency is another factor to consider. It may be easier to assimilate the personnel of a small agency into a larger one, but agencies can also purchase agencies that are of a similar size. If they

operate in similar fashions, the assimilation can proceed smoothly. Obviously, agency owners like to purchase agencies that are performing well. Account retention is one important factor to consider, but owners should realize that account retention may drop somewhat after the acquisition because of the name change in the agency or change of personnel servicing accounts. The factors of a sound profit history and a steady growth rate indicate that the agency is able to write a significant amount of new business while retaining many of the existing accounts — and do so in an efficient manner.

The image of the agency being acquired is also important. Image relates to the quality of the employees. Customers who receive good service and good value for their premium dollars help an agency to establish a strong image in the community and local business environment with word-ofmouth referrals. Agencies need to do their homework and due diligence when evaluating the financial health of an agency. The listing below indicates the information (taken from Maximizing Agency Value II) that should be evaluated before consummating any agency purchase:

Agency owners and executives need to determine exactly what it is they are trying to achieve with the purchase of another agency. The potential exists for many benefits to be achieved if the purchase is a sound one. Buyers need to find agencies that will be a good fit for the existing agency. While there are many factors to look at regarding the strength and health of a particular agency, the agency being acquired must also fit well with the current agency’s corporate culture, ideology, and purpose. Purchases and mergers can achieve many positive results if the buyer does the proper amount of due diligence and analysis before the acquisition.

About the Author: Jim Cuprisin, CIC, ARP

Agency history: Agency origins and key events should be reviewed.

Five years of income statements: Trends should be evaluated for profitability and productivity.

Five years of balance sheets: Liquidity needs to be analyzed, as well as all assets and liabilities.

Five years of tax returns: These statements should be used to verify the income statements.

Five years of company production and loss documents: These statements should be used to analyze growth, type of business written, quality of business, and profit sharing potential.

One year of aged accounts receivable summaries: These indicate how quickly agency-billed items are paid and which clients need reinforcement of payment procedures.

Book of business analysis: This can determine what business can be moved to the agency’s current carriers and which new carriers are available for writing additional business.

Organizational chart: Key employees and work relationships need to be determined for evaluation of possible restructuring.

Personnel inventory: Staff should be evaluated, including age, time in current position, previous experience, and compensation.

Physical facilities inventory: This analysis should include autos, phone system, copiers, fax machines, furniture and fixtures, land, buildings, etc.

Automation inventory: Both hardware and software need to be evaluated.

Company contracts: These contracts should be reviewed to determine binding authority, commission percentages, and other important details.

Critical accounts list: With a critical account (generating more than 1 percent of agency income), you will want to know the client’s name, type of business, length of time with agency, loss experience, and key contact.

Maximizing Agency Value II: A Guide for Buying, Selling, and Perpetuating Insurance Agencies is now available for purchase. Investigate the key issues and decisions. Use the sample letters, checklists, and detailed agreements (including the new Asset Purchase Agreement) to assist with buying and selling. A CD of the exhibits is included so you can easily adapt them for your own use. Follow steps to analyze other agencies, as well as your own, to maximize current value and future net worth.

Errors and omissions: The current policy, past claims, and pending claims need to be examined.

$57.00 + $5.00 shipping & handling, 236 pages. Call 800/526-2777 to order.

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. ■


Resources Summer/Fall 2002


Earning a professional designation is quite an accomplishment. Earning three is really remarkable. The dedication required to become a CISR, CIC, or CRM is acknowledged—and applauded!—throughout the insurance industry. But to earn CISR, CIC, and CRM designations is an achievement only a very few can claim. Currently, only 14 individuals hold the winning trifecta. They come from Texas, California, New England, and the South. For the sheer industry knowledge and commitment to education their designations represent, we honor them on these pages—our “triple-threat,” triple designees. “The National Alliance has done an outstanding job providing quality education to insurance professionals, from the beginner to the seasoned veteran. The instructors are especially valuable. They bring real-world experience and knowledge of their subject that enriches every participant.” —Kemper Eakle “Obtaining these designations is more than just earning the right to put letters behind your name. What’s important is the knowledge that comes with the courses. It means when I talk to my clients, I’m confident that I know what I’m talking about and that I probably know more than my competitors.” —Lori Huneycutt “I pursued National Alliance designations so that I would have the knowledge to better serve our clients’ needs. The more knowledgeable I am, the more it will benefit our clients and our agency.” —Cheryl Lavallee “I knew my success and effectiveness would be enhanced by technical knowledge. The programs offered by The National Alliance were the perfect way to achieve this. The designations CIC, CRM, and CISR have provided the steppingstones for where I am today and show my colleagues and clients that I take my career seriously.” —Trisha Engelhart 34

Resources Summer/Fall 2002

“Our customers depend on us to give them the right advice and entrust us to properly insure their lives and assets and handle their investments. They deserve the best from us. We can only do that when we are well educated and knowledgeable about the products and services that we deliver to them. This is where the role of professional education and development comes into play and why The National Alliance programs are so important.” —David Sterling “For me, CIC, CRM, and CISR are the right designations at the right place and the right time. The programs are client oriented, fast-paced and lively. Plus, the programs facilitate the free flow of information. During the breaks, you can exchange ideas and visit with individuals from all parts of the country.” —Merrillie Streetman “The CISR Program supplied me with a broad foundation of knowledge on which to build and grow when I was new to the insurance industry. My participation in the CIC and CRM Programs helped me advance in my field and continue to provide me with information that I use on a regular basis.” —Jeff Westbrook

lmost a year has passed since New York City’s skyline was redrawn forever. It has taken almost the full year for the dust to settle—both figuratively and literally. “One Year Later” scenarios are beginning to appear in print, and we are reminded of the state of uncertainty that prevailed that September 11th as we all struggled with these questions:


Presenting the Triple Designees: Raymond M. Burnham, CIC, CRM, CISR, CPCU, CLU, owner, The Burnham System, Southbridge, Massachusetts Tamara G. Copeland, CIC, CRM, CISR, risk manager, Cherokee Nation, Tahlequah, Oklahoma A. Kemper Eakle, CIC, CRM, CISR, senior vice president and part owner, PrideMark Insurance, Santa Ana, California Trisha Lee Engelhart, CIC, CRM, CISR, assistant vice president, Orion Risk Management, Corona, California Sherry R. Harris, CIC, CRM, CISR, CPCU, CPIW, marketing manager, B. Don James & Sons, Inc., Dalton, Georgia Amy M. Hendrickson, CIC, CRM, CISR, assistant manager, Cherokee Nation, Tahlequah, Oklahoma Lori Huneycutt, CIC, CRM, CISR, field representative, Texas Association of Counties, Austin, Texas Cynthia C. Janssen, CIC, CRM, CISR, commercial lines sales, TCT Insurance Services, Inc., Dallas, Texas Judy S. Johnson, CIC, CRM, CISR, account executive, Aon Risk Services, Inc. of the Carolinas, WinstonSalem, North Carolina Cheryl A. Lavallee, CIC, CRM, CISR, CPIA, LIA, president, Gregson Insurance Agency, Inc., Spencer, Massachusetts David Carlisle Sterling, CIC, CRM, CISR, CPCU, CLU, ARM, corporate risk manager, The Hartford Financial Services Group, Hartford, Connecticut Merrillie Streetman, CIC, CRM, CISR, ACSR, direct marketing coordinator, The National Alliance, Austin, Texas Carol A. Troy, CIC, CRM, CISR, ARM, assistant risk manager, Guaranty Insurance/Temple-Inland Risk Management, Austin, Texas Jeff B. Westbrook, CIC, CRM, CISR, marketing manager, Cravens/Warren & Company, Houston, Texas

Can (and should) we conduct “business as usual” when everything about business has changed? What is the RIGHT thing to do in these circumstances? There was no prototype. During that week of September 10th, we had 77 programs scheduled, thousands of people registered from all over the country, and around 200 faculty members lined up to teach. Our phone and e-mail systems were flooded with inquiries from participants, asking whether they should cancel or proceed with their travel plans. Throughout the day and night of the 11th we worked with our faculty and state association partners across the country, deciding which course of action to take. Incredibly, we were able to conduct 66 of those 77 scheduled programs. We discovered a resilient workforce, ready and able to move forward. Substitute faculty members stepped up to fill in at the last minute in many cases. Some drove all day rather than have a program canceled. Participants responded positively and gratefully. For example: “It is wonderful how the instructors dropped everything to be here during this tragedy. They did an exceptional job. CIC is a class-act organization.” “The faculty deserves a gold star for performance under pressure; they really ‘went the distance’.” “The insructors did a great job with the presentations; you would never have known these were not their handouts. It is typical of CIC professionalism.” The two-tower hole in the sky above New York City reminds us that radical change can occur on an apparently average September morning. But there are some things that never change. Like our commitment to help you succeed. No matter what the circumstances, we’re going to do our best to educate you. The National Alliance commends the insurance and risk management professionals who persevered in time of tragedy. While the industry continues to work on claims and financial considerations from September 11, we must also continue to look for solutions for the future. The most experienced and educated professionals will lead the way. ■

Resources Summer/Fall 2002


This ad, asking the question, “Is Your Insurance Agent a CIC?” will run in business journals throughout the summer and fall. If the answer is “NO,” we want readers to worry about it! Your CIC designation will be advertised in 68 markets, and a targeted audience will be steered toward the CIC Member Directory (via to locate CICs in their areas.

Promote Your Specialty Take advantage of this golden opportunity by including your area of specialization in your listing. Yours could be just the niche in just the city that someone is specifically trying to locate. Get the billing you deserve! The CIC Member Directory puts you within reach of millions, and your listing can be an important competitive advantage. Make the most of it, and become the source that gets consulted again and again. Go to, using your personal user name and password (supplied with your dues notice) to access, view, and edit your personal information today. Make sure your listing is complete with your specialty area—so potential clients can learn all about you.

City Business Journal Schedule Market Albany, NY Albuquerque, NM Anchorage, AK Atlanta, GA Austin, TX Baltimore, MD Baton Rouge, LA Birmingham, AL Boston, MA Buffalo, NY Charleston, SC Charlotte, NC Cincinnati, OH Columbus, OH Dallas, TX Dayton, OH Denver, CO Des Moines, IA East Bay, CA El Paso, TX Fairfield, NY Fresno, CA Grand Rapids, MI Greensboro, NC Hawaii Houston, TX Indiana Jackson, MS Jacksonville, FL Kansas City, MO Las Vegas, NV Long Island, NY Los Angeles, CA Louisville, KY

Date 10/11/02 09/06/02 11/17/02 10/18/02 11/29/02 11/22/02 10/22/02 12/20/02 11/08/02 9/16/02 7/15/02 10/04/02 8/23/02 6/28/02 9/27/02 10/18/02 9/6/02 9/2/02 8/9/02 9/29/02 11/18/02 9/27/02 10/7/02 8/23/02 8/2/02 10/4/02 9/6/02 9/9/02 11/1/02 9/6/02 11/18/02 12/13/02 8/26/02 12/20/02

ResourcesSummer Summer/Fall 3636 Resources 2002 2002

Name of Journal The Business Review New Mexico Business Weekly The Alaska Journal of Commerce Atlanta Business Journal Austin Business Journal Baltimore Business Journal Baton Rouge Business Report Birmingham Business Journal Boston Business Journal Business First Charleston Regional Business Journal The Business Journal Cincinnati Business Courier Business First Dallas Business Journal The Dayton Business Journal The Denver Business Journal Des Moines Business Record East Bay Business Times El Paso, Inc. Fairfield County Business Journal The Business Journal Grand Rapids Business Journal The Business Journal Pacific Business News Houston Business Journal Indiana Business Magazine Mississippi Business Journal Jacksonville Business Journal Kansas City Business Journal Las Vegas Business Press Long Island Business News Los Angeles Business Journal Business First

Market Memphis, TN Miami, FL Milwaukee, WI Minneapolis, MN Nashville, TN New Jersey New Orleans, LA Oklahoma City, OK Ontario, CA Orange County, CA Orlando, FL Philadelphia, PA Phoenix, AZ Pittsburgh, PA Portland, OR Raleigh, NC Rochester, NY Sacramento, CA San Antonio, TX San Diego, CA San Fernando, CA San Francisco, CA San Jose/Silicon, CA Santa Rosa, CA Seattle/Tacoma, WA St. Louis, MO Syracuse, NY Tampa Bay, FL Tucson, AZ Utica/Rome, WA Washington, DC Wenatchee, WA Westchester, NY Wichita, KS

Date 8/23/02 10/4/02 10/11/02 8/9/02 10/11/02 12/2/02 9/16/02 9/16/02 9/30/02 11/11/02 10/18/02 8/2/02 12/20/02 10/11/02 8/16/02 10/11/02 8/16/02 9/13/02 10/04/02 12/23/02 9/30/02 11/29/02 11/01/02 10/14/02 10/18/02 9/6/02 8/9/02 10/18/02 11/4/02 8/19/02 8/2/02 9/6/02 11/18/02 9/13/02

Name of Journal Memphis Business Journal The Business Journal – Serving South Florida The Business Journal City Business: The Business Journal Nashville Business Journal Business News New Jersey New Orleans Business Journal The Journal Record The Business Press – Inland Empire Orange County Business Journal Orlando Business Journal Philadelphia Business Journal The Business Journal Pittsburgh Business Times The Business Journal The Business Journal Rochester Business Journal The Sacramento Business Journal San Antonio Business Journal San Diego Business Journal San Fernando Valley Business San Francisco Business Times Silicon Valley/San Jose Business Journal North Bay Business Journal Puget Sound Business Journal St. Louis Business Journal The Central New York Business Journal The Business Journal Inside Tucson Business Mohawk Valley Business Journal Washington Business Journal Washington State Regional Business Westchester County Business Journal Wichita Business Journal


hen Selective Insurance Group, Inc., deployed a group of Agency Management Specialists (AMSs) to personally support the company’s independent agency force in the field, Selective was soon recognized as a company that stood out from the crowd. The AMS program enabled Selective to remain focused on its target markets, while developing, marketing, and pricing its products based on customer needs. The road to excellence didn’t stop there, however. To further enhance the skills and professionalism that AMSs and regional staff bring to the independent agents they support, Selective asked Senior Vice President John L. Bartha, CIC, to develop an underwriting certification policy. Selective’s management staff felt that certification for field personnel would be a way for Selective to best support their agency force and demonstrate the company’s ongoing commitment to professionalism and knowledge through continued education. After weighing educational options, it was decided that Selective’s training program for the group of approximately 100 field staff would be the Certified Insurance Counselors Program. Bartha stated, “At Selective, we are committed to maintaining a standard of professionalism within the industry that sets us apart from our competition. “ Noting “professional distinctions can only be earned, never granted,” Bartha emphasized that the CIC Program offers many advantages that “fulfill the key requirements of the training and education Selective is seeking in the development of its Agency Management Specialists.”

An AMS from Selective’s Pennsylvania region, David Gloninger, CIC, feels that the CIC Program is a definite asset in the classroom and in the field. “When my colleagues and I attend CIC programs, we’re side by side with agents. They see our commitment to stay current on the issues in our industry,” stated Gloninger. “When we’re in the field reviewing policies, coverages, and opportunities, our agents know that we have the knowledge to best support and service them. The CIC designation reflects that knowledge and helps us differentiate ourselves in today’s competitive marketplace.”

David Chambers, CIC, (seated) from the Chambers Agency, Inc., and David Gloninger, CIC, (standing) an Agency Management Specialist from Selective.

Selective Insurance Group, Inc., headquartered in Branchville, New Jersey, is a holding company for five property/casualty insurance companies that offer primary and alternative market insurance for commercial and personal risks. The insurance companies are rated “A+” (Superior) by A.M. Best. The company offers medical claim management services to insurance companies and other businesses through Alta

“By emphasizing the tangible achievement of having a professional designation such as CIC, Selective has committed to raising the level of professionalism of their AMS personnel,” stated The National Alliance’s president, William T. Hold. “Selective recognizes that advanced knowledge is essential in a hard market,” Dr. Hold concluded. Historically, Selective has been an ongoing supporter of National Alliance programs, with 68 employees holding the CIC designation and 324 current participants. “The past success of Selective personnel who have attended National Alliance courses was a key factor in endorsing these programs,” said Bartha. “We know our staff will get the best education available.”

Services LLC, a managed care organization, and through Consumer Health Network Plus, LLC, (CHN), a medical provider network; human resource administration services and risk management products and services through Selective HR Solutions, Inc.; and flood insurance policy, administration, and claim services through the National Flood Insurance Program, through FloodConnect, LLC; Selective maintains a Web site at

Resources Summer/Fall 2002 Resources Summer 2002 3737

Austin & Stanovich Risk Managers Launched Craig F. Stanovich, CIC, CPCU, a 24-year veteran of the risk management and insurance industry, along with William K. Austin, opened Austin & Stanovich Risk Managers, LLC, in Holden, Mass. This consulting firm is dedicated to helping mid-sized to larger organizations control insurance costs by identifying and managing their risks. Stanovich is a national faculty member for The National Alliance. The Standard, The Landmark

Dunbar Joins Amity Insurance Edward Dunbar, CIC, has joined Amity Insurance Agency, Inc. in Quincy, Mass., as senior account and marketing manager. Dunbar, who brings 10 years of industry experience to the position, will specialize in the real estate and hospitality divisions of the firm. The Standard

Braddy Elected IIA South Carolina President John R. Braddy, CIC, AAI, of Braddy Insurance in Dillon, South Carolina, was elected president of the Independent Insurance Agents of South Carolina for 2002. Other CICs elected to terms: Andrew N. Theodore, CIC, of Goldsmith-Theodore Agency in Columbia was named presidentelect, and John T. Cook, CIC, of John T. Cook & Assoc. in Myrtle Beach was elected to a three-year term as state national director. The IIASC is the state’s oldest and largest association of property and casualty agents. Florence Morning News, Florence & Greater Pee Dee Business Journal


Resources Summer/Fall 2002

HAIW Names Bogdan Claims Professional of the Year Regina Bogdan, CIC, CPIW, AIC, LPCS, claims unit manager at General Casualty Insurance Co., has been honored as the Hartford Assn. of Insurance Women Claims Professional of the Year. The award recognizes excellence among those in the insurance claims field. After winning at the state level, Bogdan qualified as a contender for the regional competition. The Standard

Erie Indemnity Company Names New CEO Jeffrey A. Ludrof, CIC, CPCU, AIC, LUTCF, was named the chief executive officer of Erie Indemnity Company, the attorney-in-fact for the member companies of the Erie Insurance Group. Ludrof, who has been with the company for 21 years, was a member of Erie’s executive management team, serving as executive vice president of Insurance Operations until his recent appointment as CEO. News Release

Kinney Gives CIC Enthusiastic Endorsement in Indiana Insurance News “For my money, it’s the best training program in the business,” concluded Ted Kinney, CIC, CPCU, ARM, AU, AAM, AAI, CPIA, director of curricula for the PIA of Ohio and CIC national faculty member, in the May-June 2002 issue of the Professional Insurance Agents of Indiana publication. Kinney’s article, titled “CIC is an Excellent Training Program for Agents,” also included a description of each institute and thorough information about the designation and update requirements. Great article, Ted! Indiana Insurance News

Producer’s Career Spans 50 Years Delroy York’s insurance career began just one week after his high school graduation in 1952. For the past 17 years, York has been a producer for Comaltex Insurance Agency in New Braunfels, Texas. The father of four and grandfather of six recalls his special CIC designation banquet in San Antonio in 1977, when CIA Director George H. Bush, accompanied by wife Barbara, was the keynote speaker. News Release

Cash Named to Bank of Granite’s Board Spencer Cash, CIC, CLU, ChFC, CFP, president and owner of Mimosa Insurance Agency, Inc., in Morganton, North Carolina, has been named to the Morganton board of directors of Bank of Granite. Cash has also served on the board of directors of the Carolina Assoc. of Professional Insurance Agents and the Burke County Chamber of Commerce. The News Herald

Sandy Krueger Celebrates 25 Years Sandra Varner-Krueger, CIC, recently observed her 25th anniversary at Ogilvy Hill Insurance in Santa Barbara, California. She has extensive experience as a senior account manager in the commercial property and casualty division. Santa Barbara News-Press

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

Roy Phillips Tapped President of AAIMC The American Association of Insurance Management Consultants elected Roy L. Phillips, CIC, CISR, AAI, CPIA, as its president at their annual conference in Orlando, Florida. Phillips is an associate consultant with Dan R. King & Assoc. in Houston, Texas, and vice president of KingPhillips Insurance Agency. News Release

CICs Honored at MAIA Convention At the Michigan Association of Insurance Agents (MAIA) annual convention, Harry Howes, CIC, president of the Independent Insurance Agents of Oakland County (IIAOC), accepted the “Local Association of the Year Award” on behalf of his chapter; Scott Voss, CIC, of Voss Insurance Services, Inc., in Okemos, was named “Young Charger of the Year.” Michigan Agent

Harry Howes, CIC

Scott Voss, CIC

PIACT Officers Announced The new slate of officers for the Professional Insurance Agents of Connecticut, Inc., includes three CICs in top posts: Robert Gyle, IV, CIC, a commercial account manager for Davidson Insurance Services in Danbury, was selected president-elect; Jeffrey Parmenter, CIC, CPCU, ARM, a principal with S.H. Smith & Co., Inc., in West Hartford, was re-elected vice president; and Michael Krause, CIC, vice president of Anderson-Krause in Branford, will serve as secretary. The announcement of officers took place during PIACT’s annual convention. The Standard

Resources Summer/Fall 2002




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Resources Magazine Summer 2002  

Resources Magazine Summer 2002