January 2009 La Voz

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January 2009

"The Voice" of the Independent Agent Since 1934

From the Wild, Wild West to the Best of the Best!

Celebrating 75 Years of Independents in New Mexico

With most versions of Adobe PDF there are tabs running along this side. If you click on'PAGES', it will bring up thumbnail pictures of every page in La Voz, allowing you to jump ahead or easily find any page.

La Voz “La Voz is a monthly publication of the Independent Insurance Agents of NM 1511 University Blvd. NE Albuquerque, NM 87102.

(505) 843-7231. Fax (505) 243-3367.

Web site www.iianm.org.

This publication is intended to provide accurate and authoritative information on the subject matter covered, but is distributed with the understanding that neither IIANM, nor any contributing author, publisher, contributor or advertiser is rendering legal, accounting or any other professional service and assume no liability whatsoever in connection with its use.

Further, the electronic links to our advertisers and/ or contributors found in this publication are provided as a courtesy to our readers and do not necessarily indicate an endorsement by IIANM. News items from members of Independent Insurance Agents of New Mexico and the general insurance industry are encouraged. The advertising deadline is the fifteenth day of the month, preceding publication.

Advertising rates are available upon request. Please contact Rachel Sheffield at rachel@iianm.org for details

IIANM Staff President/CEO Thom Turbett, CIC VP Of Membership Services Lorri Gaffney Director Of Communications Rachel Sheffield Director Of Insurance Programs Carmen Reese Porter, ACSR, CISR Director Of Education Jeff Straight, CIC, LUTCF Receptionist / Member Services Associate Renee Trujillo

Features

Click on the title & it will take you directly to that page.

IIANM Celebrates our 75th Anniversary in 2009

05

Legislative Mixer Invite

08

Knowledge is Power

10

Hartgraves Insurance Co. - An InsurBanc Case Study

13

L&H Trends - SEC Votes on Rule 151A

15

49th Annual Education Seminar

18

Seminar Sponsor & Exhibitor Form

23

Lessons from the Credit Crisis

24

2009 Calendar of Events

26

Case Study: Don't Admit Liability

30

Community Corner: Chris Krahling Honored

32

Monthly Big I Advantage

04

Tech Talk

07

Industry Tidbits

11

Fraud News & Reviews

28

Education Edge

33

January's Clickable Calendar

34

Odds n Ends

35

Advertiser Index

- Click to view Ad -

American Mining

16

Burns & Wilcox

29

Colonial General Insurance Agency, Inc.

06

Market Finders, Inc.

23

MetLife Auto & Home

31

The Midlands Companies

10

Vice-Chair Alma Franzoy-Capron

National Lloyds Insurance Company

17

NCMIC - Finance Corporation

14

Secretary/Treasurer Kathy Yeager

New Mexico Mutual

36

National Director Patty Padon, AAI, CIC, LUTCF

Quattro Executive Offices

09

RPS

03

Transwestern General Agency

09

Trustco HCIC

32

2007-2008 Officers Chair Angela Vasquez

Immediate Past Chair Sam Conlee Page 2

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

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For a full description of the products highlighted on this page, click on:

www.bigimarkets.com

IIABA and IIANM are ideally positioned to create an electronic bridge between product providers and independent agencies.

IIABA has the technological expertise, systems and industry contacts; IIANM has local marketing and educational ability, as well as close relationships with agents. Together IIABA and IIANM can bring product providers to agents’ desktops and make agents aware of what products are there and how to take advantage of them.

You will need to log-in in order view more information. Please contact Rachel for your log-in information.

RLI Personal Umbrella With the average jury award surpassing $1 million and rising, your customers need you now more than ever to inform them of the potentially devastating risk of financial loss they face from potential lawsuits. By educating your customers about their liability exposures, you also protect yourself from potential errors & omissions suits in the event one of your customers suffers a devastating liability loss that is underinsured by their current coverage.

That is why over 53,000 RLI Personal Umbrella Policies are in place today, written by Big “I” Members like you. Over 14,000 of those polices were written just last year. IIANM works hard to provide you access to products and services for your customers. The RLI Personal Umbrella Policy provides our members with access to stand-alone liability protection with the following features:

Shield Program (ASP), which is available exclusively for Swiss Re policy holders. It is an affordable and easy to implement tool to reduce E&O exposure, improve client service and build sustainable, profitable processes. Policyholders that complete the Agency Shield Program will receive a 10% E&O premium credit good for three years on their next renewal.

Take advantage of our E&O Workshop classes that will be held throughout the year, beginning this month on January 21. Click here to register for this class online. Also, see our complete 2009 education calendar for the class scheduled in upcoming months.

For more information about IIANM’s Errors & Omissions Programs, contact Carmen Reese Porter, carmen@iianm.org or (505) 843-7231.

An admitted market with an A+ Best’s rating.

Quick, easy access to applications, rates underwriting guide and more by clicking here.

Did You Know?

Self-underwriting applications that can be rated in your office.

No volume commitments.

Best Practices Tip

Up to $5 million in coverage available.

Good to Great Is Possible

Direct bill renewals.

RLI does not require the underlying policies.

Agency Shield Program You should buy as much insurance as you think you can afford. The reality is that E&O claims are going to happen. They can happen even if your agency hasn’t done anything wrong. The key is putting your agency on the best footing to avoid claims and to defend those that are made. Create a culture within your agency that embraces E&O risk management. Assigning someone within your agency to review files to make sure proper and consistent procedures are being followed from a quality control standpoint will help instill an E&O mindset that can help you avoid E&O claims. IIANM offers access to an agency E&O prevention consulting program, called the Agency Page 4

To take your agency’s performance to another level – to go from good to great -- you will have to continue not only to grow but also continue to improve the job you do for your customers, improve the quality and capabilities of your employees, and provide to your employees the carrier relationships, the tools, the resources and the organization needed to serve your customers.

The model is a wheel with strong leadership at the center. The wheel starts with good people having access to the proper suppliers, tools, resources, and organization, thereby attracting more customers, giving the agency better results, allowing the agency to attract better people and clients, producing even better results and so on. Take a look at the Best Practices resources and see how your agency can get started.

You will need your log-in information to view these pages. If you do not know your log-in, please click here.

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

IIANM Celebrates our 75th Anniversary in 2009

From the Wild, Wild West

To the Best of the Best!

2009 will mark the 75th Anniversary of this trade association. Seventy-five years! Think about it. In 1934, FDR was the President, New Mexico had been a state for just 22 years, and the world was in the middle of the great depression.

With the economic upheaval of the time, it seems an unlikely time for the birth of an association of insurance agents. What was even stranger, perhaps, was the birthplace. Would you believe Vaughn, New Mexico? Back then, as you might imagine the roads were nothing like they are today; so traveling between cities in an automobile could be quite a challenge. Vaughn was chosen as the initial meeting sight because it was halfway between Roswell, Santa Fe, and Albuquerque, the hometowns of the three founding agency members.

Needless to say, we have come a long way since that auspicious beginning in the spring of 1934. Today, the Independent Insurance Agents of New Mexico is one of the oldest and largest trade associations in the state, and one of the most successful ‘Big I’ Associations in the country. Although we are among the youngest of the 51 state associations affiliated with IIABA, our walls and trophy case are second to none in the number of national awards that reside there.

But in the end, the only true measure of our achievement is the success of our member insurance agencies. After all, what motivated those men to meet so long ago was the same incentive as today: to put aside competitive differences in the interest of promoting our common interests.

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With that in mind, the staff and the Board of Directors of IIANM would like to invite everyone in the Association to celebrate our collective success in this endeavor.

So throughout 2009, we will be announcing a number of fun and informative initiatives to commemorate this milestone year.

We will also be visiting as many member agencies as possible. We would appreciate the opportunity to talk to your key people about products and services the Association provides that you may not be aware of. We would also like to hear from you, so please be thinking about what we can do to improve our support to your agency.

Finally, we would like to encourage as many people as possible to attend the celebration of our 75th Anniversary at the Inn of the Mountain Gods in Ruidoso on October 1st and 2nd, 2009. Please mark those dates on your calendar because this will be an event you don’t want to miss. As an added incentive and to thank our loyal members, we have budgeted money to pay for one full convention registration for each member agency, as well as every past Chair and Lifetime Achievement award winner.

We look forward to seeing you all in the coming months.

Please make plans to be in beautiful Ruidoso, New Mexico next year. It will be well worth your time and it would make our founding fathers proud to see so many people celebrating the legacy that they created.

2009 IIANM Chair of the Board,

Angela Vasquez

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

www.colonialgeneral.com

Colonial General Insurance Agency, Inc. Founded in 1985, Colonial General Insurance Agency, Inc. is a wholesale General Agency providing quality insurance products to the Independent Insurance Agent.

Colonial General specializes in both standard and non-standard business, and writes Property and Casualty business including Commercial Auto, Commercial Contract, Personal Lines, and Professional Liability.

With 2,500 active producers under contract, Colonial General operates in eight states throughout the southwest with offices in Murray, Utah and Scottsdale, Arizona.

Most of all, we pride ourselves in our friendly customer service and our ability to help our producing agents with their many insurance needs.

P.O. Box 14770 Scottsdale, AZ 85267-4770 8475 E. Hartford Drive, Suite #100 Scottsdale, AZ 85255 Phone: (480) 991-7889 Wats: (800) 848-8860 Fax: (480) 948-1394 www.colonialgeneral.com www.colonialgeneral.com

Commercial Lines/Brokerage Department • Preferred BOP

• Property

• Inland Marine

• Professional Liability

• Commercial Liability

• Workers Compensation

Avoid monthly or annual membership fees, use Colonial General for your Preferred Business Owners Policies. We have several markets available to give you the best quote. For additional information contact your underwriter.

Transportation Department • Truckers

• Physical Damage

• NB Mexican Truckers

• Local Radius

• Garage

• Intermediate Radius

Please contact our Utah office for all your Transportation needs.

P.O. Box 571770, Murray, Utah 84157 (801) 562-1188 *Wats: (800) 594-8900 Fax: (801) 562-2218 * Toll Free Fax: (800) 332-9285

Personal Lines Department • Masterpiece Company

• Standard Company

• Umbrellas

• Stand-alone Liability

• Vacant

• Seasonal

• Dwelling Fire

• Homeowners

Preferred Commercial Lines Division

You will never pay a fee to access our companies. No volume or binding contracts. Contact John Weber at (800) 848-8860 x278 for additional information.

ProtectwYour Clients ith Secure E-mail Using TLS TLS option offers efficiency, security to users.

T

he nation’s E-mail is now entrenched within business workflows and transacts a significant amount of business between agents and carriers. Messages are often critical to the business relationship and contain sensitive information that could be harmful to both parties if lost or stolen.

Real Time, rather than e-mail, is the best option for moving sensitive client data between the agent and carrier. Real Time is highly efficient and transports the data directly between the agency and carrier systems in an encrypted form.

In a browser analogy, imagine using a different browser for each of the Web sites you visit.

The Web site owner would sell you the site browser and instruct you on how to use it whenever you visit. In this scenario you would have to maintain a list of the browsers to use with each site you visit.

Now consider having to go to each carrier’s Web site to retrieve secure e-mail, learning the different workflows and functionality of each carrier’s e-mail application and remembering a whole new layer of passwords for each carrier’s e-mail.

However, when e-mail must be used to send communications with sensitive client information, it is important for agents and carriers to use secure e-mail. If an unsecured e-mail is intercepted, the agency would face a security breach creating a significant risk to reputation and potential E&O exposure.

Such is the world of standard designs, mechanisms and solutions. The benefits of standards are everywhere. The width of road surfaces, train tracks and the vehicles that travel on them are good examples of where standards are crucial. Similarly, one company’s e-mail safeguard may not be able to communicate with another’s unless a solution such as TLS is used.

Traditional approaches to protecting e-mail have included using tools to encrypt the document attachments or services such as ZIX or Tumbleweed. Encryption of the document attachments suffers from difficulty using the tools and remembering decryption passwords. Services such as ZIX or Tumbleweed insert themselves into the actual transmission process, changing where the e-mail is sent and how the recipient reads it.

TLS (Transport Layer Security) provides an IETFdefined (Internet Engineering Task Force) industry standard protocol to protect e-mails. It is built into most e-mail gateways used today (MS Exchange/IBM Lotus Notes). TLS requires no changes to the end user (sender or receiver)—they simply benefit from the encryption it provides during transmission.

There is no shortage of e-mail protection products.

While there are market leaders, customers looking for the best solution don’t always follow this metric. As a result, Company A often cannot share encrypted e-mail with Company B since each has implemented different proprietary solutions. This lack of convergence is troubling and can be expensive, since multiple products and services must be implemented by one company to protect its email with other companies.

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TLS operates independently of the e-mail user. When an e-mail is sent from one domain (agent or carrier) to another (agent or carrier), the servers controlling the transmission negotiate to determine if TLS is enabled. If it is, then the servers transmit the e-mail within an impervious TLS tunnel that protects all message content including attachments. continued...

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

Carrier and agency e-mail administrators can choose to set the TLS option to use TLS whenever sender and receiver are capable (opportunistic mode), send only if both parties are TLS capable (required mode) and send without protection if TLS is not supported by both.

for the agent is the fee for the agency’s IT professional to properly enable its e-mail server for TLS and the cost of an e-mail certificate. For individual agency staff, TLS does not require set-up, training or having to remember a password to retrieve every e-mail.

It is important that the agency use an IT professional to set up TLS on its e-mail servers. An IT professional can also tell which carriers are enabled for TLS. It is also necessary for the agency’s third-party spam/anti-virus service to be configured to send and receive TLS encrypted e-mail. Many third-party hosted e-mail applications have not incorporated TLS, but agents should ask their vendors.

Given today’s focus on security, all e-mail gateways and servers should be configured to use TLS if it is available.

Encourage your carriers to provide the TLS option for secure e-mail, since TLS is preferable to using each carrier’s unique proprietary secure e-mail system.

Jim Rogers (Jim.Rogers2@thehartford.com) is director at The Hartford and is responsible for Distribution Technology Strategy. Rogers also chairs the ACT TLS E-mail Encryption Work Group and produced this article for ACT (www. independentagent.com/act).

You are invited to attend IIANM & New Mexico Mutual’s

Legislative Mixer

Thursday, February 12, 2009

5:00 pm – 8:00 pm Inn and Spa at Loretto 211 Old Santa Fe Trail Santa Fe, NM 87501 Cocktail & Hors devours begins at 5:00 pm.

No RSVP necessary

lorri@iianm.org for more info

Page 8

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

Limited Room Block - Reserve Your Room Today!

TLS requires no work on the part of the end user, yet protects e-mail content. It uses an industry standard protocol that is freely available and implemented on most e-mail platforms. For the agency, TLS is more costeffective than proprietary vendor e-mail solutions and is already included on most e-mail servers. The added cost

For more information on TLS, visit www.independentagent.com/act and click on the “Agency Security/Customer Privacy” link.

b

Quattro Executive Offices

a

Serving your business is our business.

Be on the Look Out! During the Legislative session, Thom Turbett, IIANM’s President/CEO, provides weekly updates on capitol news.

These weekly updates will be emailed to you, but you can also access them on our web site at anytime.

Use this report to track the progress of bills that will affect your business.

As always, we welcome input members may have about the process. You can contact ‘Team Tom’ through the association office. Thom Turbett and our full time lobbyist Tom Horan will be spending massive amounts of time in Santa Fe during the season on your behalf. Please don’t hesitate to share your thoughts or concerns by emailing Thom Turbett at: thom@iianm.org.

Located in Albuquerque’s far northeast heights, we currently have space available Our services include: • a receptionist to greet your clients • access to our beautiful conference rooms or fully furnished office space • mail and package receipt • a business center as well as the option of phone answering services.

• starts at $525 per month • inclusive of all utilities • high speed internet • daily cleaning service, etc.

• In addition to our executive offices, we also offer virtual tenancy.

For more information or to schedule a tour, contact us at (505) 944.1070 or quattrocenter@gmail.com.

Knowledge is Power Management reports enable proactive, rather than reactive, management.

As a staff grows and department management replaces central management by one owner, it becomes too easy to lose control of the agency's performance. A management information system (MIS) is designed to maintain control by the agency owners. It was actually originally created for an absentee owner who needed to know everything going on in the agency. Not only was it necessary to provide all pertinent information to the owner, but it had to be done as briefly as possible. The end result was everything an agent needs to know about the agency in three pages or less.

Here is an outline of the reports that comprise the MIS: Weekly Production and Productivity Reports 1. New business written during the week 2. Lost business that week 3. Productivity = Prior week backlog + current week incoming - current week backlog 4. Claims activity 5. Customer problems 6. Systems problems 7. Carrier news Monthly Management Report 1. Agency financial results and comparison against prior year and against budget 2. Department results 3. Balance sheet 4. Aged accounts receivable 5. Cash Report 6. Production report by department 7. Claims by department 8. Marketing (if agency has a marketing department) The total length of this management report rarely exceeds three pages. Supporting documentation is either available or is attached to the report (depending on the desires of the agency owners). When this report is first constructed, you may not have comparison data available. However, this will become your base year against which you can measure your results in the Page 10

coming years. If you implement these reports (or those components that apply to your agency), you will begin generating that valuable information to determine your agency's health at any time.

To read the entire article, click here. It will require you to log-in. If you need this information, please email Rachel.

Al Diamond (al@agencyconsulting.com) has spent more than 30 years in the insurance industry working for stock companies, direct writers, agencies and as an independent businessman.

Why risk using another company when Midlands is a leading market for Self-Insureds and Self-Insured Groups?

Affiliated companies to Midlands Management Corporation: Midlands Claim Administrators, Inc., Midlands Injury Management, Inc., Midlands Management of Texas, Inc. Midlands Management Corporation of New York

EXCESS WORKERS’ COMPENSATION PROGRAM • Claims and risk management services available • Accepting applications from agents and brokers nationwide • Limits up to Statutory Specific • Wide variety of classes written • Minimum SIR of $300,000 • Aggregate coverage available

®

The Midlands Companies SUPPORTING AMERICA’S AGENCY SYSTEM SINCE 1990

www.midlandsmgt.com

Midlands Management Corporation Phone: 405.840.0074 800.800.4007 Fax: 405.840.5432 Midlands Management of Texas Phone: 972.588.2000 888.743.2628 Fax: 972.588.2020

Coverage not available in all states.

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

IRS Milage Rates are Once Again Changing Agency Workflow Survey IIANM needs your help measuring the impact of a major, all-industry agency workflow improvement initiative sponsored by the Real Time/Download Campaign (www.getrealtime.org.)

Regardless of how "automated" you feel your agency is, your input is extremely valuable. If you have not already completed this Real Time/Download Campaign survey, we would greatly appreciate you taking this short survey. It should take you less than seven minutes to complete.

Please take the survey at: http://www.zoomerang.com/Survey/survey-intro. zgi?p=WEB228FXCSG3QX by no later than January 23, 2009. We have extended the deadline to get the most extensive and credible results possible.

The optional standard mileage rates used to calculate the deductible cost of operating an automobile for business purposes is changing beginning January 1st, 2009. The standard mileage rates for the use of a car (including vans, pickups and panel trucks) is $.55/mile.

Compared to .50/mile for the first six months of 2008 and the $.585 for the balance of 2008. The mileage allowance is directly related to the cost of fuel and has changed due to the sudden decrease in gas costs in recent months.

Source: Internal Revenue Service

Advisen Predicts End of Soft Market in Commercial Insurance Premiums Followed by a Gradual and Prolonged Hard Market

Thieves Now Targeting Auto Insurance Customers with Telephone Scam

Advisen Ltd., the leading provider of information, analytics, and technology to the global commercial insurance industry, released a report predicting that the commercial insurance premium market cycle is close to its bottom and that general commercial insurance prices will begin increasing by the fourth quarter of 2009 or the first quarter of 2010. Advisen research is based on its own industryleading database of premium history and its database of the financial performance of 13 million companies.

InsuranceBureau.com, independent insurance information resource, reports the Ohio department of insurance has alerted residents of the state to a new auto insurance scam. The scammers contact auto insurance customers via telephone and inform them that there is an issue regarding their auto insurance premium payment. The thieves urge the target victim to provide bank account information in order to get the payment processed immediately so that the customer does not lose their auto insurance coverage.

“In years past, insurance companies recouped underwriting losses with investment income, but in 2008 the combination underwriting losses and material investment losses means a five-year soft market is coming to an end,” said David K. Bradford, Advisen Executive Vice President and Chief Knowledge Officer. “The global recession may delay the return of hard market conditions by keeping demand for insurance down, but once the hard market sets in, it is likely to last longer than was the case in recent cycles.

“This is a particularly clever scam because no one ever hears about identity theft involving auto insurance. Plus the thought of having a lapse in car insurance coverage may be enough to distract even the most vigilant consumer,” states InsuranceBureau.com’s CEO Eric Oster. Ohio is the only state currently reporting the auto insurance scam, but it will likely spread to other areas. Having an insurance agent is one way to guard against auto insurance identity theft scams.

“InsuranceBureau.com is interested in helping consumers not just save money, but protect themselves from these kinds of schemes,” states Oster. If you do not have an auto insurance agent, be wary of giving anyone personal financial information over the phone. “Hang up, and call your auto insurance company yourself,” Oster advises.

“In previous hard markets, price increases attracted new capital investment to the market, and the increase in insurance supply led to short hard market cycles,” continued Bradford. “In the current economic environment, where credit markets are essentially frozen, capital to create new insurance and reinsurance capacity may be in short supply. With capital scarce, the coming hard market could be longer in duration than those of the past several decades.”

If you have already responded to this survey, thank you very much.

Please only respond once. We will survey again at a later date to determine agency progress in adopting these improved workflows.

The full report is available from Advisen and covers the impact on pricing of many factors including the AIG crisis, the global economic crisis, and how buyers of commercial insurance are reacting to the market changes.

by David Bradford

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Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

Where Will You Find Your Next Great Hire?

IIANM is teaming up with CNM Workforce Training Center to provide a Customer Service Certification Program. The first class began this fall with these three components:

The Basics of Insurance License Preparation Agency Management System Training

Are You Looking for Well Trained Employees?

The Hard Facts: Currently there are 2.3 million people employed in the insurance industry.

In April '08, the industry generated 23,000 new jobs.

In the next ten years it is estimated that 50% will be leaving the insurance job force, mostly due to retirement.

A Claymore Partners study sites that as of November '07, the top two recruiting issues for Independent Agencies have been:

Knowing staffing needs in advance - 88% Finding top quality talent - 82%

Potential Hires Graduates will be licensed and ready to begin working in an independent agency later this year. Interested in interviewing graduates of this course?

Contact our Education Director, Jeff Straight to set this up on a first come, first served basis.

505-999-5802 or jeff@iianm.org

Page 17

Independent Insurance Agents of New Mexico - www.iianm.org - * November 2008

Hartgraves Insurance Company: An InsurBanc Case Study Managing an insurance agency in the oil patch of eastern New Mexico, Stacy Reid knew how gas and oil prices challenge clients. She saw the agency she managed as a source of stability and financial strength.

But how could she get the deal done to purchase the agency?

borrowers with strong expertise and knowledge of the insurance needs of their client industries, that’s something we value. We also look for the strengths of the agency’s marketplace, and how their infrastructure can support growth,” said Pettinicchi.

From her desk at Hartgraves Insurance Agency, Stacy Reid has seen the ups and downs of the oil business. From its office in downtown Lovington, New Mexico – about 20 miles west of the Texas border – Hartgraves Insurance services the region’s oil and gas producers and service companies.

The experience of an agency leader is also vital, he added. “Someone with strong ties to the local community who thoroughly knows the agency operations is a strong competitive advantage. That helps not just in the marketplace. It’s an edge when someone wants to borrow money to buy an agency.”

Managing the agency for five years, Reid has seen premiums spike in tandem with oil prices – and then make a breathtaking ride down.

Today, Reid watches over the same agency – but now she’s the enthusiastic owner, having purchased it in September 2008 from the man who hired her, Mike Hartgraves, so that he could retire.

During her time as the agency owner, Reid knows more than ever that the agency’s fortunes are closely tied to the economy and, more directly, the oil market.

Owner’s Profile: Who: Stacy Reid, President What: Purchase of Hartgraves Insurance Agency, Lovington, N.M. from its current owner. continued...

“When oil prices go down, my business goes down,” Reid stated.

“With 70-80 percent of our business coming from companies based in the oil and gas industry, and our premiums based on their gross receipts, the price of oil directly impacts our business.”

The commercial client base of the six-person Hartgraves agency is largely drilling and service companies throughout West Texas and eastern New Mexico. It’s a strong niche, as the nearest competitor is 20 miles distant. Farmers, ranchers, municipalities and the service industries make up the balance of the commercial lines for this property/casualty agency. They also offer personal lines and financial services products. The agency’s 35-year history in the region with these industries gives it a competitive foothold, even during declines in oil prices as has happened in late 2008.

When InsurBanc business development officer Patricia Smith brought the loan request to Robert Pettinicchi, executive vice president and chief lending officer, they saw the agency’s strengths when they first looked at Hartgraves Insurance. “When there are potential Page 13

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

How: Over the course of one year, Reid turned her dream to purchase Hartgraves Insurance into reality. After a referral from a friend in the agency business, she turned to InsurBanc for a perpetuation loan.

“The biggest obstacle I faced in purchasing the agency was finding financing options,” Reid recalled. “I tried going to my local bankers with whom I have an established relationship, but soon found out that financing insurance agencies was difficult because of the intangible assets of the [agency] business.

“None of the banks wanted to finance the loan. I considered looking for investors, but I really wanted to maintain 100% ownership and control of the business,” said Reid.

with every step of the way. They were so knowledgeable about the business of the independent insurance agents. It made it very easy.”

The end result: “I was financed and was able to purchase the agency outright from the retiring owner.”

“The benefits of working with InsurBanc are numerous,” Reid said.

“They are so helpful and friendly. They understand the insurance business and that helps to get the funding together. They helped me through every step of the loan process from application to closing.

They are still there for any questions that arise. I am using InsurBanc for my deposit accounts, and it couldn't be any easier. They are still just a phone call or e-mail away if I have any banking questions.”

“My local bank had known about InsurBanc through another local insurance agency that had used them. My banker got me the information and I contacted InsurBanc.”

Reid said InsurBanc’s Pattie Smith “was so informative and helpful.

She gave me the information to get in contact with Mystic Capital, who then did a valuation of the agency. After the valuation was done, I started the loan application process, which InsurBanc helped me

Access to Insur Banc is just one of the many benefits available to you as a member.

Click here to view more.

We’re Serious About Our Relationships When it comes to premium financing, we take our business seriously at NCMIC Finance Corporation. And it starts with the relationships we build.

We understand that one size does not fit all when it comes to premium financing. That’s why we spend time understanding exactly what you and your insured need before offering solutions.

At NCMIC Finance Corporation, you’ll work personally with our experienced staff who will provide: • Premium financing that meets and exceeds your customers’ expectations • Custom solutions – even for smaller insureds or niche markets • Flexible plans that can include reduced down payments and extended terms • State-of-the-art software, next-day funding and web-based account management • Credit Card Processing also available for your agency and your insureds business • Online payments for your customers

Finance Corporation ©2008 NCMIC NFL 5917-082706

Contact Lisa Logan or Roger Miller at

1-800-600-9250

Discover for yourself what makes NCMIC Finance Corporation different from the rest. You’ll realize that we don’t just talk about building great relationships – we do it.

www. n fc fina nce .c om

L&H Trends

$

SEC Votes on Rule 151A

By, Dave Evans

Financial crisis, licensing reform among the key items discussed.

Against a backdrop of a worsening economy and the alleged “Ponzi” scheme perpetrated by Bernard Madoff, a significant meeting took place last month in Washington, D.C. The U.S. Securities and Exchange Commissioners voted 4-1 yesterday in support of Ruling 151A, which will go into effect for Equity Index Annuities issued after Jan. 12, 2011. This could ultimately create a dilemma for independent insurance agents who sell indexed annuities and don’t want to become securities registered.

Since last summer, the SEC has said it may regulate indexed annuities as a security. This has generated significant controversy and concern among independent insurance agents who offer these products and are not or do not wish to be regulated as a registered representative. Becoming a registered rep involves a myriad of considerations—the least of which involve licensing and compliance.

The SEC knew this action would prompt passionate feedback from life insurance and annuity producers, and allowed for an extended comment period from the industry. If the comments received were a barometer, agents were overwhelmingly opposed to the proposed SEC action. "We are extremely disappointed

by SEC’s decision," said NAIC Vice President and Iowa Insurance Commissioner Susan Voss. "State insurance commissioners have taken active steps to protect consumers of equity-indexed annuities — and will continue to do so."

and thus, by design of the statute, fall beyond the commission's reach. The Section 3(a)(8) exemption includes, in relevant part, any insurance or endowment policy or annuity contract or optional annuity contract, issued by a corporation subject to the supervision of the insurance commissioner . . . of any state or territory of the United States or the District of Columbia.’

I am not persuaded that Rule 151A represents merely an attempt to provide clarification to the scope of exempted securities falling within Section 3(a)(8). Instead, by defining indexed annuities in the manner done in Rule 151A, I believe the SEC will be entering into a realm that Congress prohibited us from entering. Therefore, I cannot vote in favor of the rule and respectfully dissent."

His other comments are also relevant to independent agents who believe that state regulation of insurance is best for consumers. Commissioner Paredes stated, "First, a range of state insurance laws govern indexed annuities. I am disappointed that the rule and adopting release make an implicit judgment that state insurance regulators are inadequate to regulate these products. Such a judgment is beyond our mandate or our expertise. In any event, Section 3(a)(8) does not call upon the commission to detercontinued...

The only dissenting commissioner was Troy Paredes, whose remarks in the Federal Register said he felt the nature of indexed annuities did fall within the scope of the exemption to the Securities Act of 1933. He stated, "In our effort to protect investors, we cannot extend our reach past the statutory stopping point. Section 3(a)(8) of the Securities Act of 1933 ('33 Act) provides a list of securities that are exempt from the '33 Act Page 15

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

mine whether state insurance regulators are up to the task; rather, the section exempts annuity contracts subject to state insurance regulation.

Second, as a result of Rule 151A, insurers will have to bear various costs and burdens, which, importantly, could disproportionately impact small businesses.

Some even have predicted that companies may be forced out of business if Rule 151A is adopted. Such an outcome causes me concern, especially during these difficult economic times. Even when the economy is not strained, such an outcome is disconcerting because it can lead to less competition, ultimately to the detriment of consumers.

Third, the commission received several thousand comment letters since Rule 151A was proposed in June 2008. Consistent with comments we have received, I believe that there are more effective and appropriate ways to address the concerns underly-

ing this rulemaking. One possible alternative to Rule 151A would be amending Rule 151 to establish a more precise safe harbor in light of all the relevant facts and circumstances attendant to indexed annuities and how they are marketed. A more precise safe harbor would provide better clarity and certainty in this area — regulatory goals the commission has identified — and would preserve the ability of insurers to find an exemption outside the safe harbor by relying directly on Section 3(a)(8) and the cases interpreting it. I believe further exploration of alternative approaches is warranted, as is continued engagement with interested parties, including state regulators."

The Big “I” will continue to monitor the feedback and actions taken by the life insurance industry and state regulators, which might include a court challenge. To read the letter the Big “I” government affairs team sent to the SEC regarding Rule 151A, click here.

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Page 16

S AND & G RAVEL P ITS • L IMESTONE Q UARRIES R OCK Q UARRIES • C OAL M INES O THER T YPES OF M INING

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

WWW.AMERICAN-SUMMIT.COM WWW.NATLLOYDS.COM

WWW.NATLLOYDS.COM WWW.AMERICAN-SUMMIT.COM gvanek@natlloyds.com ckirk@natlloyds.com

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klauritzen@natlloyds.com dwharton@natlloyds.com

th Annual Educatio n 9 S 4 e m s ’ i nar M N A II 15 Hours of Continuing Education for the Insurance Professional From the Wild, Wild West to the Best of the Best Celebrating 75 Years of Independents in New Mexico

W

elcome to the Independent Insurance Agents of New Mexico’s 49th Annual Education Seminar! This seminar is designed to specifically meet the annual continuing education requirement for licensed NM insurance agents.

We encourage you and your staff to join us on March 11th & 12th, 2009 at The Hilton Hotel in Albuquerque.

This two-day program offers educational opportunities, a great Trade Show with over 30 exhibitors, and provides a venue for industry professionals, agents, CSRs and company representatives to network.

For those of you who have not attended before, this is how it works: We will be featuring 20 classes, taught by various instructors. Choosing your classes is much like making selections from a menu. You may choose to take all your classes within one track (i.e. commercial lines only) or you may choose to mix and match tracks so you can take advantage of the wide variety offered. The entire program is approved for both the P&C and L&H licenses, so you may attend any class you like.

If you have any questions about registering, instructors, hotel accommodations, or anything else, please call Jeff at (505) 999-5802 or (800) 621-3978. This is an event you don’t want to miss!

Career Track (Menu of Classes)

Commercial Lines

Personal Lines

Agency Management

Employee Benefits

Young Agents / Professional Development

March 11

March 11

March 12

March 12

8:00am - 12:00pm

1:00pm - 4:00pm

8:00am - 12:00pm

1:00pm - 4:00pm

4 Hours of CE

3 Hours of CE

4 Hours of CE

3 Hours of CE

Commercial Line’s Related Coverages

Bonds 101

Certificates of Insurance & Additional Insureds

Business Income & the ISO CPP

Jack Cleary

Paul Martin

Betsy Carlson

Manny Mansour

Risk Management for Personal Lines

FEMA’s Basic Flood Insurance Course

Personal Lines Round Up

Myths & Misconceptions Personal Lines

Bob Zettel

Tammy Goodman

Paul Martin

Jack Cleary

Organizing Your Agency for the 21st Century Jack Fries

Building an Effective Insurance Office Team Teresa Cross

Strategic Alliance Program for the P&C Agency

Insurance Fraud Is it on the Rise?

Jim McDaniel, Sharon Stark, Roy Cavazos

Alan Rackstraw

The Impact of Wellness Programs on Premium Rates

New Mexico Health Care Legislation

Pre-Tax Health & Retirement Plans

Anne Sperling

Linda Parker

Dealing with Difficult Clients (& others)

Maximizing Relations with Current & Future Customers

Teresa Cross

It’s All About Me! (and everyone else)

Jack Fries

Ready - Aim - Fire!

Goal Setting, Planning & Leveraging Time

Patty Padon

JoDee Martinez

Group Health Insurance Carole Henry Gloria Vigil

Jim Campbell

Commercial Lines

Commercial Lines Related Coverages, Instructor: Betsy Carlson, CIC, RPLU, ASLI March 11, 8 to 12 noon 4CE Hours Betsy will discuss Related Commercial Lines Coverages: DIC, Ordinance of Law, Hired/Non-Owned Auto, Fiduciary, Travel Accident, Intellectual Property, Cyber Security, D&O, and EPLI to assist agents in protecting clients from excluded perils in standard insurance policies. This class will identify the exclusions and what policy form is appropriate to cover the exposure. It will give you practical tools to identify companies offering coverage and estimated premium.

Bonds 101, Instructor: Manny Mansour, LUTC, AAI March 11, 1 to 4 pm 3CE Hours Need to sell bonds but just don’t know enough about them to feel comfortable? The objective of this class is to give you the basic knowledge needed to be comfortable in selling and working with surety bonds. This class will cover Surety basics, risk and responsibility, understanding the contract, obtaining surety credit, and reducing subcontractor financial risk.

Additional Insured’s & Certificates of Insurance, Instructor: Jack Cleary, CPCU, ARM

March 12, 8 to 12 noon 4CE Hours This class will discuss types of insureds such as Named Insured, Additional and Miscellaneous Insureds under the CGL, Commercial Auto, Umbrella, and Workers Compensation policies. Other topics include: Intercompany Products Suits, Separation of Insureds, Subrogation among Insureds, Cross Liability, Additional Insured Endorsements, Application of Exclusions to Insureds, Forms of Business Organizations, Ownership and Insurance Problems, and Discontinued Operations Problems.

Business Income and the ISO CPP, Instructor: Paul Martin, CPCU (w/ IIAT)

March 12, 1 to 4 pm 3CE Hours This course will give you a thorough review of the use of the ISO business income forms to treat customer’s business interruption exposures. The class will show you how to determine the amount of insurance needed for business income and extra expense. Also, learn how to prepare illustrations which avoid your insured’s confusion about the available options.

Personal Lines

Risk Management for Personal Lines, Instructor: Bob Zettel, CIC, CPCU, ARM, AU March 11, 8 to 12 noon 4CE Hours In this course you will learn the most common loss exposures of personal lines clients and the various methods for identifying those exposures. You will learn to determine the best risk management technique beyond just insurance to address each exposure. Finally you will participate in a case study.

FEMA’s Basic Flood Insurance Course, Instructor: Tammy Goodman March 11, 1 to 4 pm 3CE Hours At the end of this course, you will have a basic understanding of the National Flood Insurance Program (NFIP) to be able to share with your clients. You will understand the general rules, review policy coverage, provide basic rating information and program eligibility. This course satisfies the one time 3 hour FEMA flood training requirement that New Mexico adopted in September of 2006.

Personal Lines Round Up, Instructor: Paul Martin, CPCU (w/ IIAT) March 12, 8 to 12 noon 4CE Hours This fast-paced workshop is designed to provide you with exposure and coverage reviews for these key areas in personal lines – personal auto policy, watercraft insurance, homeowners liability, condo policies, as well as the common law obligations agents have to customers and companies.

Myths & Misconceptions - Personal Lines, Instructor: Jack Cleary, CPCU, ARM March 12, 1 to 4 pm 3CE Hours Many clients face exposures not properly covered by a homeowners or personal auto policy. This class will analyze and explain common misconceptions in personal lines policies such as “Students away from home,” “Husband & wife as named insured under auto policies”, and “Uninsured motorists’ problems and issues with recreational vehicles”.

Agency Management

Organizing Your Agency for the 21st Century, (Achieve more production & profit from your present staff .) Instructor: Jack Fries March 11, 8 to 12 noon 4CE Hours This course is designed for agency owners, officers, and Managers. The primary goal is to assist management in organizing insurance agencies to grow profitably into the 21st century. Since the independent agencies of the 21st Century will face competition from direct writers, non-traditional direct writers and the Internet, they must focus their attention on structuring their agency in such a way as to provide their clients with above average customer service.

The course explains how an agency can combine small commercial lines and personal lines servicing into one unit to better serve the customers. It goes on to describe exactly how to eliminate paper and how the structure of the agency must be altered to accommodate these changes.

Building an Effective Insurance Office Team, Instructor: Teresa M Cross, Ph.D. March 11, 1 to 4 pm 3CE Hours Unless we learn how to work together more effectively, Insurance agencies cannot be effective or competitive. In these changing times, we must learn to use the wisdom, vision and intelligence of EVERY member of the agency. Every individual must become an “entrepreneur” who is interested and involved in the process of managing the office. This interesting and exciting workshop uses several video segments which further enhance the learning experience.

Strategic Alliance Program for the P&C Agency, Instructors: Jim McDaniel, Sharon Stark, Roy Cavazos

March 12, 8 to 12 noon 4CE Hours Looking for new sources of income? Many P&C Agencies leave money on the table and their clients unprotected because they don’t understand how Life and Health products can be used with their commercial accounts. Learn how Life, Disability Income and Long Term Care products can be used with existing clients to improve your account retention and your bottom line.

Insurance Fraud - Is it on the Rise? Instructor: Alan Rackstraw, Chief Prosecutor, NM Insurance Fraud Bureau

March 12, 1 to 4 pm 3CE Hours As fraud fighters know, insurance schemes tend to spike when the economy heads south. Alan Rackstraw leads a team of fraud investigators as they discuss Health Care, Auto, Homeowners, and Business fraud. Find out what is the cost of fraud, how to identify it, and steps you can take to reduce fraud in your agency.

Employee Benefits

Group Health Insurance, Instructors: Carole Henry, AVP Underwriting and Gloria Vigil, Marketing Manger, Lovelace Health Plans March 11, 8 to 12 noon 4CE Hours The purpose of this class is to take an in depth look at Group Health Insurance including the basic concepts. The discussion will include the features and benefits of the various Health plans and how they are underwritten and priced. Additionally, it will investigate the impact that New Mexico regulations have on pricing and underwriting for small employer groups. The case studies will look at underwriting submissions and common mistakes which are made.

New Mexico Health Care Legislation, Instructor: Anne Sperling, CSA, LPRT

March 11, 1 to 4 pm 3CE Hours Anne will be discussing the 2009 Legislative requests made by the Legislative Health and Human Services Subcommittee. She will discuss the comprehensive health care reform strategy. Anne will also be discussing how the requests turn into statute and how the state will move forward based on the legislative outcome. She will also weave the national health care discussion into the NM discussion.

Pre-Tax Health Plans, Instructor: Linda Parker

March 12, 8 to 12 noon 4CE Hours The purpose of this class will be to investigate the tax impact on Health and Retirement benefit plans and how you can add value for your clients. Linda will demonstrate that the agent doesn’t have to know everything about the various plans an employer could offer. However, they should have an idea about the benefits and where they can create a team of experts to bring added value to their clients.

The Impact of Wellness Programs on Premium Rates, Instructor: Jim Campbell March 12, 1 to 4 pm 3CE Hours This class will provide you with information to communicate to clients proven ways to mitigate future rate increases by addressing the factors which cause the increases.

Specifically, you will learn how to create added value for your clients by reducing needs for employee health care utilization. The result will be greater client good will, loyalty and retention.

Young Agents/Professional Development

Working with Difficult Clients and Others, Instructor: Teresa M Cross, PhD March 11, 8 to 12 noon 4CE Hours This workshop addresses a universal need and is based on the work of organizational psychologist, consultant and author, Robert Bramson, Ph.D. Dr. Cross uses a variety of clips from popular movies and TV shows to demonstrate the way difficult people behave and how others generally respond to them. This is an entertaining, yet effective seminar that helps people to use the strategies that have been shown to be most effective in dealing with these frustrating personalities.

Maximizing Relationships with Current & Future Customers, Instructor: Jack Fries

March 11, 1 to 4 pm 3CE Hours This seminar is directed towards Customer Service Representatives, Agency Salespeople and Account Managers. The program begins with a checkup of agency marketing and sales activities. It provides information regarding prospecting activities as well as, and analysis of prospecting and sales methodology. It also provides information that will allow the agency staff to better understand and address their client’s needs. The program will also provide tools that will enable agency personnel to establish and measure individual goals.

It’s All About Me! (and everyone else), Instructor: Patty Padon, AAI, CIC, LUTCF, AFSR March 12, 8 to 12 noon 4CE Hours Why is it you like one type of person over another type? Do you cringe when told you’ll have to work with someone on a special project? Discover what type of person you are and learn to appreciate differences and avoid conflicts with others. This class will help you become a better communicator while you discover who you are.

“Ready - Aim - Fire!” Goal Setting, Planning and Leveraging Time, Instructor: Jo Dee Martinez

March 12, 1 to 4 pm 3CE Hours In this program you will learn to identify the difference between dreams and well-stated goals and how to strategically plan and tactically execute the goal processes. You will develop sales or professional strategies and goals based on where you are and where you want to be. Also, you will learn tactics to leverage time to achieve goals.

Time management is about being more efficient in your use of time, but leveraging time is about using time more effectively, to achieve goals. You will learn to identify time wasters and tactics for dealing with them. You will also learn how to allocate time for your strategic goals and plan activities based on peak productivity periods.

th Annual Educatio n 9 S 4 e m s ’ i nar M N A II

Registration Form 15 Hours of Continuing Education for the Insurance Professional

T

hank you for choosing IIANM to provide you with quality education for the year 2009. Please fill out this form and return it to the address below before classes fill up. Please photocopy and complete a separate form for each registrant. Select a morning and afternoon class for both days of instruction to receive your full fifteen hours of continuing education. If you have any questions regarding the registration process, please call Jeff Straight at (505) 999-5802 or (800) 621-3978.

Cancellation Policy: Cancellations received after Friday, February 27, 2009 will be assessed a $50 cancellation fee. Cancellations received on or after Friday, March 6, 2009 and ‘no shows’ will forfeit the registration fee altogether. A substitute is always welcome, with no extra fee, but prior notification would be appreciated.

Non-Member Price

Entire Seminar One Full Day One Half Day Ethics Only

   

IIANM Member Price

$240 $140 $75 $45

$200 $105 $70 $35

Includes:

Two Full Days of Instruction - Ethics (15 hours of NM CE) One Full Day of Instruction - Ethics (8 hours of NM CE) Four Hours - AM Class / Three Hours - PM Class - Ethics included after PM session

Thursday - March 12, 2009

Wednesday - March 11, 2009  AM Course :

 AM Course :

 PM Course :

 PM Course :

 Ethics

 Ethics

Attending Wednesday’s TownHall Luncheon?  Yes or  No

Thursday: Lunch on your own

Please note: The room temperature may vary, please bring a sweater

Full Name:

Method of Payment (Please note that full payment must be received with Registration Form in order to secure class reservation)

First Name for Badge:

 Bill Our Agency (For Members Only)  Charge my credit card (VS, MC, AMEX, DISC):

Address:

Amount: $ ___________ (all prices include sales tax)

City, State, Zip: Telephone: Fax:

*All fees include sales tax.

 Check Enclosed (Payable to IIANM)

Agency / Company:

(

Card No.: _____________________________________

(

) )

Exp. Date: ______________

Authorized Signature:

E-Mail:

P lease R eturn this R egistration F orm and Pay ment to : I I A N M , 1 5 1 1 U ni v ersit y B lv d . N E , A lbu q uer q ue , N M 8 7 1 0 2 - F a x ( 5 0 5 ) 2 4 3 - 3 3 6 7 Seminar Location & Accommodations:

The Albuquerque Hilton 1901 University Blvd. NE Albuquerque, NM 87102 Phone (505) 884-2500 or (800) 274-6835

Group Name:

Group Rate: Hotel Cut-off:

Independent Insurance Agents of New Mexico (IIANM) $100 - single / double February 17, 2009

I

th Annual Educa t i o 9 n Semin 4 s ’ M N a IA

Sponsor & Exhibitor Form

r

15 Hours of Continuing Education for the Insurance Professional

Albuquerque Hilton Hotel March 11th & 12th, 2009

Please provide this information as you would like it listed in programs and publications and return by February 27, 2009 to be included in our printed material.

Contact Name:

Send checks payable to: IIANM

Organization:

P.O. Box 25447 Albuquerque, NM 87125

Street Address: City, State & Zip:

or fax Credit Card payment info to: (505) 243-3367

Phone:

Total Amount $

E-mail:

CC#

Please list who will be manning your Booth: Will they attend Thursday’s Luncheon? Y / N

Exp Date: Signature:

Y/N Y/N

4

Y/N

Circle Your Level:

1

Any Contribution

5

For Donations Only

Thursday lunch guest

$640 Exhibit Booth & Lunch Co-sponsorship Courtesy Sign Indicating Sponsorship

$265 Exhibit Booth Only One Thursday lunch guest

3

Exhibit Booth & Break Co-sponsorship Courtesy Sign Indicating Sponsorship

Recognition given at Seminar

2

$475 -

$320 Break Co-sponsorship Courtesy sign indicating sponsorship

Thursday lunch guest

Introducing our New

P

artners

2009 Program

We invite companies to experience the enormous networking, recruiting, and branding opportunities presented by becoming an IIANM Corporate Partner. Our Associate’s Partnership program puts supporters’ front and center in a meaningful and memorable fashion.

If you’re interested in more information, please click here (if you are viewing this online) or if you have any questions, please call VP of Membership, Lorri Gaffney at (505) 999-5805 or send an email to lorri@iianm.org

www.marketfindersnm.com

Phone: (505) 822-8711 Fax: (505) 822-1165 Toll Free: (800) 530-8711

New Mexico’s Locally Owned Managing General Agency Since 1977 Representing some of the most financially strong and innovative insurance companies in the specialty marketplace!

Top-Tier Markets For:

Commercial / Public Auto General Liability Property / Vacants Garage / Dealers Liquor Liability Special Events Inland Marine Directors & Officers Liability Professional Liability / E&O Commercial Umbrella Watercraft / Motorcycles / ATVs Personal Umbrellas Homeowners Mobile Homes Dwelling Fire / Vacants At Market Finders, Inc., our mission is to professionally provide quality specialty markets and service to the Agents of New Mexico.

Market Finders, Inc.

4910 Alameda Blvd NE - P.O. Box 90280 Albuquerque, NM 87199 20 PagePage 20

www.marketfindersnm.com

Independent Insurance Agents of New Mexico - www.iianm.org - * September Independent Insurance Agents of New Mexico - www.iianm.org - * December 2008 2008

S

ecuritization of debt, where the assets (loans) on banks’ balance sheets are bundled up and then pieces are sold to buyers in the form of bonds and derivatives, is a great financial innovation for freeing up capital and thereby, the supply of capital. This in turn, decreases the cost of consumer credit. However, the recent credit crises should be a stark reminder that too much of a good thing can be poisonous.

considerable profits for agents and companies.

The industry’s extra profitability then has very little to do with insurance company underwriting genius, so even though bad underwriting is occurring today and underwriting results have not deteriorated significantly yet, the industry cannot not continue to practice lax underwriting.

By Chris Burand

Underwriting Several excellent studies have shown that a key cause of so many loan defaults has nothing to do with the economy or with the people taking out the loans. The weak link is underwriting. Traditionally, the bank that makes the loan, keeps the loan on their own books which gives them a lot of incentive to underwrite their loans very well.

By severing the link between those writing the loan and those keeping the loans, the originators lost all incentive to underwrite. They were no longer held accountable.

They had already made their money.

Lessons from the

Credit Crisis

The investment bankers, investors, and bettors then added fuel to the growing fire by making a very big mistake that is almost impossible to fathom given their computer models and the fact that we are dealing with huge companies that should be totally rational and logical. They believed that because they did not get burned immediately by taking large risks, they were perfectly safe to double down.

In the insurance world, this is very similar to believing you are a perfect underwriter after one week of writing risks without a single claim! Insurance carriers are still, after decades, forgetting that losses trail premiums. But in time, the losses do catch up.

The link between underwriting and results may not have been totally severed in the insurance industry, but it is wearing thin as companies have made more money in 2006 and 2007 than possibly in the entire history of the industry. As a result, many insurance company CEOs believe they are invincible underwriters. But the fact is, the developed world has undergone some very interesting demographic and workplace environment changes that have resulted in a significant decline in claims frequency and while severity has increased, the increase has not offset the decrease in frequency. This trend has generated Page 24

Finance 101 shows how leverage works if operating profits exist and if operating profits evaporate, leverage will always cause an almost immediate crash. The credit crisis was, in many ways, very basic finance. The same goes for underwriting. As long as the economy is doing well, claims will lag slightly. When the economy slows significantly, as it is, claims will get ahead of premium growth.

Knowledge & Transparency

Many investors did not understand the securities they were buying. They were supposed to be sophisticated buyers but the fact is, virtually all the people participating in that market did not understand the instruments they were trading and adding to the complexity, the system lacked transparency.

Some of the insurance industry’s slot rating computer models remind me of this situation. Some of these models are clearly superior. However, very few company people can explain their own models. Making the situation worse, many of the slot rating programs lack transparency and when company people and agency personnel do not understand and cannot explain the logic behind these systems, problems are sure to follow.

When transparency is lacking, distrust grows. If an agency employee does not understand and cannot explain why a client’s rate is particularly high, the employee will likely (either subconsciously or directly) communicate his or her distrust of the company’s rating process to the client.

Distrust will immediately build in the customer’s mind and this adds to the industry’s already tarnished image.

Distrust is a huge and growing issue for this industry.

Securitization of risk is not a bad thing. The concept is good and economies worldwide can gain from the securitization of financial instruments. The problem was the execution. First, the parties involved failed to maintain accountability throughout the system. Second, they continued...

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

believed that if nothing immediately bad happened, then all their decisions must have been correct. They kept building more and more additions on a foundation of cards and since nothing bad had happened yet, they really believed that the foundation was rock solid. Third, the players did not really even understand what they were using for building blocks.

The insurance industry has a long history of repeatedly making similar mistakes. This industry need not repeat these mistakes again if insurance companies act quickly to maintain underwriting accountability at every step, if they will reemphasize and reeducate everyone, from top to bottom, on the time lag between writing business and incurring losses, and if they will ensure that everyone completely understands their rating tools.

Chris Burand is president of Burand & Associates, LLC, an insurance agency consulting firm. Readers may contact Chris at (719) 485-3868 or by e-mail at chris@ burand-associates.com.

Indep

ende

nt In

suran ce Ag ents

of Ne

wM

exico 1511 U Albu niversity quer Blvd q wk: ue, NM . NE (5 8 fax: 05) 843 7102 (505 -72 iian ) 243-3 31 m@ii 36 www anm.o 7 rg .iian m.or g

NOTE: None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.

IIANM’s

EDits b

NEW

!

ED Bits will be your source for up to date information from IIANM’s Education Department.

We will be featuring all upcoming classes that you can register for directly online. We will keep you posted of all upcoming educational events, important changes or key announcements. You can also view ED Bits at any time by visiting our web site www.iianm.org and selecting ED Bits under Education.

Keep your eyes peeled for future ED Bits in your email box.

“Today I Will Broaden My Career In Insurance.”

Now you can increase your technical knowledge and show professionalism by working on an insurance designation.

IIANM offers convenient professional designation programs that keep independent agents on the leading edge:

Turn Your Career Goals Into Reality!

For more information, please visit us here.

Accredited Customer Service Representative

Page 25

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

IIANM’s Calendar of Events for 2009* All year IIANM will be honoring our 75th Anniversary!

Summer Spring

From the Wild, Wild West to the Best of the Best!

Celebrating 75 Years of Independents in New Mexico

January

February

March

April

May

31 - 1 13 - 14 15 19 21

Closed for New Year Property/Casualty Exam Review Class Life/Health Exam Review Class Closed for Martin Luther King Day E&O Workshop (8 CE hours)

3 4 5 10 - 11 12

Homeowners (8 CE hours) (ACSR #1) IIANM Professional Development (8 CE hours) (ACSR #5) IIANM AAI 82/A - Commercial Liability & Auto(8 CE hours)IIANM Property/Casualty Exam Review Class IIANM Life/Health Exam Review Class IIANM

12

Annual Legislative Mixer

16

Closed for Presidents Day

3 4

Personal Auto (8 CE hours) (ACSR #2) Commercial Property (8 CE hours) (ACSR #6)

IIANM IIANM

11 - 12

49th Annual Education Seminar

Hilton, Albuquerque

17 - 18 19

Property/Casualty Exam Review Class Life/Health Exam Review Class

IIANM IIANM

K. Leslie M. Mansour

1 2 7 - 8 9 10 15

Commercial Lines Update (8 CE hours) (ACSR) AAI 82/B - Commercial Lines (8 CE hours) Property/Casualty Exam Review Class Life/Health Exam Review Class Closed for Good Friday E&O Workshop (8 CE hours)

IIANM IIANM IIANM IIANM

J. Cleary B. Zettel K. Leslie B. Ouellette

IIANM

J. Cleary

5 6 7 12 - 13 14

PL Related Coverages (8 CE hours) (ACSR #3) IIANM IIANM Commercial Liability (8 CE hours) (ACSR #7) AAI 82/C - Specialized Commercial Lines(8 CE hours)IIANM Property/Casualty Exam Review Class IIANM Life/Health Exam Review Class IIANM

18

IIANM/New Mexico Mutual Golf Tournament

25

Closed for Memorial Day

(15 CE hours)

IIANM IIANM

J. Cleary M. Mansour

IIANM

J. Cleary

M. Mansour G. Kluckman J. Straight K. Leslie B. Ouellette

Inn at Loretto, Santa Fe

M. Mansour J. Cleary

M. Mansour J. Cleary J. Straight J. Cleary M. Mansour

Tanoan Country Club

* Dates are subject to change so please check our web site regularly - www.iianm.org

2 4 9 - 10 11 30 TBD

Personal Lines Update (8 CE hours) (ACSR) IIANM AAI 83/A - Principles of Agency Mngmnt(8 CE hours)IIANM Property/Casualty Exam Review Class IIANM Life/Health Exam Review Class IIANM IIANM E&O / Loss Control (8 CE hours) (ACSR #4) IIANM Big I Trusted Choice Junior Golf Tournament

M. Mansour J. Straight J. Cleary B. Ouellette J. Straight

1 2 3 7 - 8 9

Commercial Auto (8 CE hours) (ACSR #8) AAI 83/B - Agency / Company Relations (8 CE hours) Closed for Independence Day Property/Casualty Exam Review Class Life/Health Exam Review Class

IIANM IIANM

J. Cleary B. Zettel

IIANM IIANM

J. Cleary M. Mansour

15 - 16 15 - 16

13th Annual Southern Seminar

Hotel Encanto de Las Cruces Hotel Encanto de Las Cruces

Winter Autumn

June

July

August

September

October

November

December

(15 CE hours)

22

Property/Casualty Exam Review Class E&O Workshop (8 CE hours)

4 4 5 5 6 11 11 - 12 13

IIANM Commercial Lines Update (8 CE hours) (ACSR) Roswell Commercial Property (8 CE hours) (ACSR #6) IIANM CL Related Coverages (8 CE hours) (ACSR #9) Roswell Commercial Liability (8 CE hours) (ACSR #7) AAI 83/C - Agency Financial Mngmnt (8 CE hours) IIANM Understanding Life Insurance (8 CE hours) (ACSR #10) Roswell Property/Casualty Exam Review Class IIANM Life/Health Exam Review Class IIANM

26 - 27

20th Annual Last Chance Seminar

7 15 - 16 17 22 23

Closed for Labor Day Property/Casualty Exam Review Class Life/Health Exam Review Class E&O / Loss Control (8 CE hours) (ACSR #4) Professional Development (8 CE hours) (ACSR #5)

1 - 2

75th Annual Convention

13 - 14 15 21

10 - 11 12 26 - 27

Property/Casualty Exam Review Class Life/Health Exam Review Class E&O Workshop (8 CE hours)

IIANM IIANM IIANM

K. Leslie B. Ouellette J. Cleary

Property/Casualty Exam Review Class Life/Health Exam Review Class Closed for Thanksgiving

IIANM IIANM

J. Cleary M. Mansour

3

IIANM Holiday Party

IIANM

8 - 9 10 24 - 25

Property/Casualty Exam Review Class Life/Health Exam Review Class Closed for the Holidays

IIANM IIANM

(15 CE hours)

IIANM

J. Cleary J. Cleary A. Berryman J. Cleary A. Berryman B. Zettel A. Berryman K. Leslie B. Ouellette

Hilton Hotel, Abq

IIANM IIANM IIANM IIANM

J. Cleary M. Mansour J. Straight G. Kluckman

Inn of the Mountian Gods, Ruidoso

K. Leslie B. Ouellette

* Dates are subject to change so please check our web site regularly - www.iianm.org

SOURCE: North American Training Group

Fraud News & Review Auto Insurance Fraud on the Rise Torching, smashing and making cars disappear for quick cash is keeping investigators busy.

Need more evidence of consumer distress? Auto insurance fraud is up, with consumers resorting to extreme means -- torching, drowning or dumping SUVs, pickups and cars -- in hopes of getting quick cash from insurance policies.

Once rare, suspect car demolition cases are commandeering investigators, dominating their working hours at state agencies and insurance companies. Nationwide, auto fire insurance claims have jumped by 6% in the past 12 months after years of little change. Indiana, Michigan and New York are hot spots, with burned car claims spiking 13% to 18%, says Dennis Shulkins with State Farm Insurance’s special investigations unit.

The fraud spike is a bellwether of consumers’ economic woes. “Increasingly, people are turning to insurance fraud as a quick bailout for their financial misery, to get out of auto leases they no longer can afford, and to pay off credit card or mortgage debt,” says James Quiggle, a spokesman for the Coalition Against Auto Fraud, a trade group.

High anxiety is driving consumers to rash acts that raise immediate suspicion. Dozens of expensive vehicles were left at water’s edge in Gulfport, Miss., just hours before Hurricane Gustav hit. Scores of cars reported stolen are turning up ditched in Lake Erie and in western deserts. Crime rings are thriving, burning cars for hire in California and smashing cars to smithereens outside the Las Vegas city limits. A New Jersey school principal pleaded guilty to charges he torched a leased auto that had $9,000 in excess mileage fees.

States and insurance companies are wising up to paper-thin ploys. The surge in suspicious automobile destruction claims has prompted New York to put additional resources into this sort of crime. Through October, the state had won 110 court decisions requiring consumers to give up insurance money and ownership of vehicles determined to have been intentionally torched, stolen or sent to chop shops for disposal. That’s up nearly 50% from a year earlier. A helicopter-borne Nevada police task force now prowls the skies to check out suspicious vehicles that are driven into the desert at night to be burned or smashed. Utah, which typically investigates an average of two questionable auto destruction claims a year, already had 30 cases pending by summer’s end.

Bogus car destruction and theft claims eventually sock it to all motorists. “Honest policyholders should be outraged at paying additional premiums as a result of people attempting to commit fraud,” says Shulkins. There are no national statistics on the total value of auto insurance fraud. However, the average policyholder shells out up to $300 a year in higher premiums to help pay for all types of property and casualty fraud.

By Jim Ostroff, Associate Editor, The Kiplinger Letter

To read more on Fraud Convictions, Verdicts, Government Updates & Related News, click the following links and check out last months editions of NATG Fraud News WEEKLY:

Volume 10 Volume 11 Volume 12

Coming Soon!

To receive this publication directly, simply email your request to rlippman@fraudeducation.com

LEARN MORE ABOUT INSURANCE FRAUD AND

SIMULTANEOUSLY EARN CE CREDITS, VISIT THE BIG”I” VU FRAUD TRAINING CENTER FOR ON-LINE COURSES, RESOURCES & DAILY NEWS Page 28

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

www.scottsdale.burnsandwilcox.com

Who has the ability to handle all your specialty insurance needs?

The

Answer is Your Specialty Insurance Professionals

Professional Liability Umbrella & Excess Employment Practices Commercial Property Products Liability General Liability Commercial Auto Personal Lines

Global Resources. Local Relationships.

Albuquerque, New Mexico

(866) 643-8538 / (505) 822-0018 / fax (505) 822-0092 scottsdale.burnsandwilcox.com

www.scottsdale.burnsandwilcox.com

Case Study: Don't Admit Liability A&B

Insurance Agency placed commercial property coverage for it’s client Commercial Real Estate Developers, Inc. (CRED). A fire destroyed one of CRED’s properties. The carrier, Wepai Insurance Company, adjusted the loss and paid it’s limits but according to CRED, the replacement cost coverage was inadequate to rebuild the property. Joe Coates, an executive at CRED, called Karyn Cox, the agent, and suggested that they meet to discuss the situation. CRED was a significant and long-standing client of A&B. In it’s desire to maintain the relationship and help the client, Karyn agreed to meet Joe for lunch to discuss the coverage request, the uncovered portion of the claim and the coverage dispute with the carrier.

When the dispute couldn’t be resolved, CRED filed suit against both Karyn and the Wepai Insurance Company. At Karyn’s deposition, nearly a year after the lunch meeting, CRED’s attorney produced a napkin containing notes that Joe allegedly wrote during the lunch meeting containing confirmation of admissions of liability made by Karyn at the meeting. Due to the passage of time, Karyn’s recollection of the specifics of the discussion had faded. While Karyn didn’t think she made the statements contained in Joe’s notes, she had no specific recollection or notes documenting what was said. Because of Joe’s notes and Karyn’s lack of documentation, the agent’s E&O carrier ultimately paid $2,000,000 to settle this claim.

as your admission of liability. If you find yourself in an inquiry or accused by a client, here is a suggested response: “Out of an abundance of caution, I have reported this matter to my Errors and Omissions carrier. I don’t want to appear uncooperative but they’ve cautioned me against discussing this matter further. If you’d like to discuss this matter, I can refer you to the appropriate claims professional.”

These approaches recognize and seek balance the importance of maintaining the client relationship with the agent’s interest in not making damaging admissions nor running afoul of the terms and conditions of the E&O policy.

Disclaimer: The material contained herein is for informational purposes only and is not intended as legal or other professional advice. Please procure the appropriate legal or other professional advice and services to address your individual needs and circumstances. The premise of the above claim scenario(s) is based in part on actual errors and omissions claim(s). The facts and circumstances may have been revised to better illustrate the subject matter.

Source: “The Independent”, NIIA

Lesson Learned: While an agent’s inclination is to help a client after they’ve suffered a loss, remember that any comments you make to a client can and likely will be used against you in subsequent litigation. With that in mind, it’s important to be careful about apologizing or saying anything that could be construed as an admission of error. Furthermore, avoid making any offers of settlement or offers to pay if the carrier does not. Here are some tips: • Know you limits, be careful of trying to resolve claims or potential claims by yourself.

• Be wary of attending post-loss meetings with clients, carrier representatives or either of their attorneys.

• When you’ve received notice of a claim or a potential claim, report it to your E&O carrier.

Avoid comments that could be construed as an admission of error or an offer of settlement such as: “Don’t worry, my E&O insurance will pay for this.” or “I’m sorry I didn’t recommend higher limits.”

You’ll be questioned about any such remarks at a deposition or trial and those remarks will be presented Page 30

“Something that says I’m sorry without admitting liability.”

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

KAY GUADAGNOLI CIC, LUTCF New Mexico Regional Sales Manager FOR AGENCY APPOINTMENTS OR MORE INFORMATION, PLEASE CALL ME. (505) 867-9520 (888) 448-8422 kguadagnoli@metlife.com

Page 31

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

Chris Krahling Receives Two Prestigious Awards

by, Mike Zambrano

New Mexico Mutual’s Senior Vice President, Chris Krahling, recently received recognition for his years of service to the insurance industry and the New Mexico community.

On December 4, 2008, Krahling received the Paul Harris Fellowship award from the Rotary Club of Santa Fe. This award recognizes individuals in the business community who have passed the Club’s ‘Four Way Test’ based on exceptional service, ethical business practices, humanity, and vision. The award was presented to Krahling at New Mexico Mutual’s Board of Directors meeting, by Jim Snead, of the Jones Firm in Santa Fe. The award is one of the highest honors the Rotary Club gives to individuals.

Later that day, Krahling was also recognized by the Independent Insurance Agents of New Mexico (IIANM) with the organization’s lifetime achievement award. The award recognized Krahling’s years of service to the insurance/business community as a previous business owner of Insurance Exchange, New Mexico Superintendent of Insurance, and President and CEO of New Mexico Mutual.

Only 12 other people have received the lifetime achievement award, in the 75 year history of the IIANM. Krahling received the recognition before a group of approximately 150 company employees and Big I members at the IIANM Holiday Party at the Albuquerque Hilton. Congratulations, Chris, on your well deserved recognition.

Homeowners Catastrophe Insurance Trust

Your preferred homeowners clients deserve the broadest possible coverage for their homes and personal property. As an active member of IIANM, you have the original -- the very best such program available to you right now.

The HCIT Difference in Conditions (DIC) policy supplements basic homeowners coverage by providing protection for catastrophic losses, including FLOOD and EARTHQUAKE.

Just contact:

Trustco, Inc. - HCIT Program Administrator

2063 East 3900 South Ste. 100, Salt Lake City, UT 84124 1-800-644-4334 / Fax: 801-278-9051

www.hcitins.com

Bobbi Phillips / bobbip@hcitins.com Eric Kingdon / erick@trustcoinc.com

Insurance Education Programs in New Mexico are critical to a successful and profitable career in the insurance industry. Every year, we offer exciting opportunities to expand your professional horizons. All of these education programs are designed to help insurance agents thrive in the most competitive of marketplaces.

Pre-Licensing Classes *Study material is included in class prices.

The pre-licensing classes are designed to be a review for the state licensing examination. We recommend that students be familiar with the study material prior to attending class.

Property & Casualty Review Class (2 days)

Life & Health Review Class (1 day)

Regular Price: $205

Regular Price: $170

Instructor: Instructor:

Member Price: $165

Jack Cleary - January 13 - 14 8am - 5pm Kitty Leslie - February 10 - 11

8am - 5pm

Instructor: Instructor:

Member Price: $135

Manny Mansour - January 15 8am - 5pm Bob Ouellette - February 25 8am - 5pm

Click here for a full listing of our education program.

The FINE PRINT: IIANM reserves the right to cancel/reschedule classes. Please call ahead to verify when classes will run. Decisions will be made three days prior to class. Cancellations received after 5 business days, will be assessed a $50.00 cancellation fee. Cancellations received on or after deadline and ‘no shows’ will forfeit the registration fee altogether. A substitute is always welcome, with no extra fee, but prior notification would be appreciated.

Class Name/Date: Full Name:

Method of Payment:  Bill Agency (Members Only)

First Name for Badge:

Check Enclosed (Payable to IIANM)

Agency / Company:

M/C Visa Disc Amex

Amount:

Address:

Card No.:

City, State, Zip:

Exp. Date:

Telephone: ( Fax: Send in your registration:

(

(all prices include tax)

)

E-Mail:

Signature:

) Go on-line: www.iianm.org or E-mail: jeff@iianm.org

Page 33

Give us a call: (505) 843-7231 (800) 621-3978

Mail in: 1511 University Blvd. NE Albuquerque, NM 87102

Fax in: (505) 243-3367

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

January’s Education Clickable Calendar - Click on a class to register online -

Sunday

Monday

Tuesday

CE ‘ continuing education

Wednesday Thursday

ce i f f O sed Clo 1

4

5

6 P&C Pre-licensing Class

11

18

12 ce Offi sed Clo 19

Classifieds

25

Page 34

26

7 P&C Pre-licensing Class

13

8

Friday

Saturday

ce Offi sed Clo 2

9

3

10

L&H Pre-licensing Class

14

15

16

17

22

23

24

E&O Worshop

20

21

27

28

29

30

31

Where Will You Find Your Next Great Hire?

Looking to fill a position within your agency? Trying to find a job but don’t know where to look?

Whether you are looking for somewhere new to share your special skills or an employer looking for quality, professional employees, we are there to lend a helping hand.

The staff at IIANM knows that “Teamwork Makes Us Stronger” and we want to help all interested individuals find that perfect fit.

Click here to take advantage of IIANM’s Job Bank.

Independent Insurance Agents of New Mexico - www.iianm.org - * January 2009

Od

ds

n - E nd s

January is named after Janus. The God of doors and gates.

He was chosen for January because when you start something new, symbolically you pass through a door.

Farmers Insurance Ranks Most Secure Places to Live Last month, The Insurance Journal ran an article advising those seeking a place to live, work or raise a family in a safe and secure environment, on the most stable places to live.

The rankings, compiled by database experts at www.bestplaces.net, took into consideration crime statistics, extreme weather, risk of natural disaster, housing depreciation, foreclosures, air quality, life expectancy and job loss numbers in 379 US municipalities. The study divided the communities into three groups: large metropolitan areas, mid-size cities and small towns.

Las Cruces, NM, took top honors and is second to Olympia, WA among the most secure mid-size cities. Santa Fe, NM made the list of the top 10 for small towns.

Be always at war with your vices, at peace with your neighbors, and let each new year find you a better man. ~Benjamin Franklin

Check Out Some of These Sites for Tips on

How To Stretch A Dollar BeingFrugal.net eHow.com CareOneCredit.com Teachnology.com TipNut.com

Fun Facts AboutNew Years Around the World In many places, the coming of the new year is celebrated by singing the traditional Scottish song "Auld Lang Syne". Which means “Old Long Ago”.

In Italy, they have a tradition of wearing red underwear and eating lentils and sausages on New Year's Day to encourage good luck in the coming year.

During the New Year celebrations, the Chinese light firecrackers to scare away evil spirits and misfortune.

Ecuador has a unique New Year's Eve tradition, the burning of “Años Viejos” in public places, which are effigies representing people and events from the previous year.

About 100 years ago, when farmers had a bumper crop of grapes, the Spanish began a tradition of eating twelve grapes at the twelve strokes of midnight. Each grape eaten correctly is supposed to bring a month's worth of good luck.

Don’t miss this opportunity to inform your clients about New Mexico Mutual’s FREE claims and safety seminars

Your employee just had a serious work injury.

What do you do now?

Find the answer to this and other important questions. Our claims professionals will educate you on compensation claims topics that you as an employer need to know.

Topics Include: • How to File a Claim • Accident Investigation and Fraud • Selection of Medical Care • Payment of Disability Benefits • Return to Work Programs • The Claims Reserving Process

You need to attend New Mexico Mutual’s FREE oil and gas industry safety seminar.

Topics this year are focused specifically on the leading sources for on the job injuries and what may be done to maintain a safe and healthy work force. There will be plenty of valuable information and resources for you to help keep your employees safe and your insurance costs down.

Topics Include:

Seminars are 3 hours long with refreshments provided.

Albuquerque Wednesday, Nov. 5, 8:30-11:30 New Mexico Mutual Office 3900 Singer Blvd NE

3 PERSPECTIVES ON NEW MEXICO’S OIL AND GAS BUSINESS.

Santa Fe Thursday, Nov. 6, 8:30-11:30 Santa Fe Community College 6401 Richards Ave.

To register for either of these seminars and for more information, go to www.NewMexicoMutual.com Click on the ‘workshops’ button on the home page, then click on ‘safety workshops’ or ‘claims workshops or call Michael Baldwin at 343-2831

SM

SM

PO Box 27825 • Albuquerque, NM 87125-7825 505.345.7260 • 800.788.8851

• Major Loss Sources... an Insurer’s perspective • Strategies for Preventing on the job injuries • It’s happened, someone is hurt... keeping the cost down through RTW

Seminars are 2.5 hours long with refreshments provided.

PRESENTERS: Jim Lindsey, CSP, ARM, CIE, CRIS, CHSP Loss Prevention Manager; New Mexico Mutual Carol Walker, MS NM OSHA Consultant; Oil and Gas Safe Site Coordinator Patricia (Trish) Salazar Provider Relations Manager; New Mexico Mutual Farmington Wed., November 19, 2008 1:30 - 4:00pm Courtyard by Marriott 560 Scott Ave.

Artesia Wed., December 10, 2008 1:30 - 4:00pm Artesia Country Club 2751 Richey Rd.