April 2015 by Independent Insurance Agents of NM

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NEW MEXICO’S EXPERTS IN WORKERS’ COMPENSATION INSURANCE

3900 Singer Blvd. NE • Albuquerque, NM 87109 • 505.345.7260 or 800.788.8851 • 2

www.NewMexicoMutual.com www.iianm.org

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“La Voz” is the official monthly e-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.

"The Voice" of Independent Agents since 1934

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.

IIANM Events

Southern Seminar in Las Cruces

VP of Member Services Consuelo Trujillo Insurance Programs Administrator Cheryl Weddle Business Strategist Mia Logan Communications Director Rachel Sheffield Member Services Associate Renee Trujillo

Immediate Past Chair Diana Hobbs www.iianm.org

CSR - Know Your Agency 10

President/CEO Thom Turbett

National Director Sam Conlee

IIANM Sponsored Make-a-Wish / Wine & Wishes Event

NextGen Heavy Hitters Spotlight - Joseph Cito

IIANM Staff

Secretary/Treasurer Mike Parisi

Dues Deductibility 05

Please contact Rachel Sheffield at rachel@iianm.org for details

Vice-Chair Connie Sevier

WCA of NM Foundation Golf Tournament

Features

Advertising rates are available upon request.

Chair Gabe Portillo

April’s Clickable Calendar 06

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.

2014-2015 Officers

VoZ

Principal - 13 E&O Risk Management Tips for Action

Ask an Expert / Is a Motor Home a Home?

IIANM Member Benefits - at a glance

Principal - Google Compare Auto Insurance Launches in California

Producer - Why Your New Inbound Lead is a Ticking Time Bomb

Introducing our New Pre-Licensing Program

Producer - A New Way to Compete for Personal Lines Clients

In Every Issue IIANM 2015 Company Partners! 04 Tech Talk 18 Snap Stats - Study Reveals Stability & Growth in P&C Market

Odds n Ends

Advertiser Index Acuity 20 Burns & Wilcox Back Cover Litchfield Special Risks

Market Finders, Inc. 11 Mountain States Insurance Group

New Mexico Mutual 02 Union Standard 08

Click here to reserve advertising space in an upcoming issue of La Voz magazine. 3

These carriers have partnered with our association to support the vitality of the independent agent system in New Mexico. Take a moment to visit their new page on our site and take advantage of their varied products and services. Independent agents have the freedom to choose!

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ATTENTION Southern New Mexico Agents! Come and get your 15 hours of Continuing Education in Las Cruces, NM

May 13th & 14th, 2015 Springhill Suites by Marriott Class List:

Full Seminar (15 CE hrs): Member: $200 / Nonmember: $240

May 13

One Full Day (8 CE hrs): Member: $105 / Nonmember: $140

Morning Class 8:00 - 12:00pm / Homeowners

One Half Day (AM 4 CE hrs / PM 3 CE hrs): Member: $70 / Nonmember: $75

Afternoon Class 1:00 - 4:00pm / Commercial Crime

Half Day with Ethics Member: $90 / Nonmember: $100

4:00 - 5:00pm / Ethics Hour

Ethics Only (1 CE hrs): Member: $35 / Nonmember: $45

May 14

NextGen Registration (15 CE hrs): Member: $150

Morning Class 8:00 - 12:00pm / Liability for Contractors Afternoon Class 1:00 - 4:00pm / Personal Lines Related Coverages

Dues Deductibility By federal law, we are required to provide each of our member states with the following disclosure regarding their 2013-2014 dues. Dues to the Independent Insurance Agents & Brokers of America (IIABA) are not deductible as a charitable contribution but may be deductible as an ordinary and necessary business expense. To the extent that IIABA engages in lobbying, the portion of the dues that relate to lobbying expenses is not deductible as an ordinary and necessary business expense. This law was enacted in 1993, effective January 1, 1994 [Section 13222 of the Omnibus Budget Reconciliation Act of 1993 (OBRA 1993)]. The non-deductible portion of dues for 2013-2014 is 25.27%. Please forward this information to the appropriate staff in your organization. The following is a recap of the non-deductible portion of dues for the past six years: FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 www.iianm.org

Estimated Estimated Estimated Estimated Estimated Estimated Estimated

18.23% 17.72% 21.92% 22.83% 22.71% 23.76% 25.21%

Actual Actual Actual Actual Actual Actual

17.35% 21.37% 22.19% 22.29% 23.14% 25.27%

Click on a class to register: Monday

Tuesday

Wednesday

Thursday

April 2015 Friday

Webcast: Employment Law & the Insurance Age nt

sts a c web

2CE

P&C Exam Review

(No CE Credits) Reaching Diverse Customers Marketing Series - Introduction

Jack Cleary

2CE

Webcast: Procedures Manual 1, 2, 3 â&#x20AC;&#x201C; An E&O Overview

23 IIABA National Legislative Conference Washington, DC

3CE

Liability Issues to Worry About Indemnity Agreements & Additional Insureds 2CE

Webcast: Commercial Lines Claims That Cause Problems

16Webcast:

Reagan Consulting Guides to Training and Perpetuation An Errors and Omissions Mock Trial

Business Body Language CSR Essentials - Personal Time Management CSR Essentials Relationship Management CSR Essentials - Verbal Communication Skills: Phone Etiquette & Client Interaction

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Peak Performance. Secure Solutions. Personalized Service. No matter how challenging the terrain, Mountain States offers a clear path for your customers when it comes to handling business claims. We deliver exceptional service, by real people, in real time. Whether it’s workers’ compensation, property, auto or general liability, we ensure a swift and comprehensive resolution to your client’s claim. Questions? Need a claims specialist? Contact David Hilliard, Claims Director, at dhilliard@msig-nm.com or 505.764.1407.

The Mountain Stands Behind You.® www.msig-nm.com Albuquerque, New Mexico 505.764.1400

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The road to the Canyonlands near Moab, Utah

A Commitment to Young Independent Agents 2015

Together, Your Future is Our Future • 2015 Heavy Hitters Program Union Standard is committed to working with young independent agents because their future is our future. Investing in the education and development of the next generation of agency professionals provides the support necessary to achieve the real goal of mutual success. We recognize the need to foster new talent to perpetuate the independent agency system, as well as provide our best young agents an even greater competitive advantage. Interested in participating in our Heavy Hitters Program? Contact your local Union Standard branch office today. Union Standard’s Heavy Hitters Program – Preparing Agents for Tomorrow

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BEST

Commercial Insurance >> Done the Right Way >> By a Company of People >> Who Care

6501 Americas Parkway NE, Suite 600 | Albuquerque, NM 87110 P 505-830-0038 | TF 888-387-0038 | F 505-830-0033 | usic.com 8

Union Standard Insurance Group is a member company of W. R. Berkley Corporation, an insurance holding company that is among the largest commercial lines writers in the United States.

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UNION STANDARDâ&#x20AC;&#x2122;S

HEAVY HITTER Joseph Cito

Joseph Cito was born and raised in Albuquerque, New Mexico and is an alumni of St Pius High School and the University of New Mexico. He is the son of Dr. Stephen Cito and Jo Marie Cito, and has two older brothers, Mike and Mark Cito. In his spare time he enjoys anything that has to do with spending time with family, as well as being outdoors, including fly fishing, hiking, and walking his dogs.

Q A

Joe Cito, Berger Briggs Real Estate & Insurance, Inc.

Can you tell us a little about your

responsibilities? Getting out in front of business owners and talking about how their business operations can improve with insurance coverage and loss

control services. Ensuring that each business owner is always aware of their insurance coverage and keeping them within the scope of their policy so they are always aware of where their coverage lies and where gaps may exist.

Q A

Do you have any influences/role models that have helped shape your career? My father is probably one of the hardest working individuals I know. He instilled in me the idea that you go into each work day and ap-

proach it with the same vigor as you did from the very first day you walked in. He has maintained an excellent reputa-

How and why did you choose insurance as your

tion by always providing excellent service to his customers.

career?

Q A

I had an uncle that worked in the industry and hearing his experiences and discussing the legal contract he was selling, including the

analytical aspect, was very intriguing. He was very involved in the local business community which also attracted me to

What do you think are the key challenges that young professional agents face in our industry? Overcoming the age gap hurdleâ&#x20AC;Ś Most business owners are typically more comfortable working with someone closer to their age.

the industry. In my own career I am always challenged, hav- The challenge is getting them to respect the knowledge you ing the knowledge needed to be a great agent in insurance bring. They have trust in the agents that they have done is constantly changing from year to year so it makes it an

business with for years, so proving that you are just as

exciting industry to be in.

competent and trustworthy is the biggest challenge.

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Know Your Agency Understanding your own agency is just as important as understanding the people and businesses that you hope to engage. The key is understanding your agency from the customer perspective. You need to understand what customers will perceive as distinctive about your agency and why it matters to anyone who might want to do business with you. Independent agencies, unlike many captives and direct writers, can craft personalized stories and control telling those stories at every point of service.

Step 1. Define who you are This step requires careful consideration. It’s not about what you are — an independent agency operating in X town, with X years experience and X dollars in revenue. This is about the who of your story — what you stand for and how you serve the customer differently than any other agency. It’s best to set aside some time off-site with your agency leadership to give this assignment the focus it deserves. • Have one moderator to direct discussion. • If you can, engage a marketing partner or outside consultant to moderate. It provides an objective perspective to challenge you and ensure that you consider how your definitions translate to the customer. There are no wrong answers. The only misstep comes from not taking the time to know what you stand for or in failing to communicate your findings and message to everyone at your agency. Once you’ve defined who you are, give everyone in your agency the information and tools to understand your culture, core values, vision and mission, and goals.

Culture Ask and answer these questions, which will affect the productivity, ethics and performance of all employees. They will also help you find and hire the right kinds of employees for your firm. • How should we approach business? • What type of day-to-day environment do we want to create? For instance, are we buttoned-up and business-serious, or do we have a more laid-back, personal approach?

Core Values

CSR

Defining your values will help you make business decisions large and small – from recruiting employees to deciding what types business you should pursue. • What’s important to us? What do we believe in? • Here are some values to consider. Add others to customize your list: • Giving back to the community

• • • • • • • • •

Getting to know customers on a personal level Work-life balance Continuing education Hard-nosed negotiations No-nonsense, fact-based proposals Profitability Market prestige Superior Customer Service Creative Online Presence

Vision and Mission Your vision statement should declare what you want to accomplish for your customers and your community. It should be far-reaching and not limited by product descriptors or narrow parameters. Your mission statement spells out what you need to do to deliver on the vision.

Goals Establish two or three long-term goals, defining what you want to accomplish in the next three to five years. Setting goals will help prioritize tactics and identify where to focus agency resources. Be sure goals are measurable. Examples below. Add others to customize for your agency: • Number of new accounts • Revenue growth • Percent growth • Retention rate • New markets to enter • Number of new hires in the next year • Organic growth • Community involvement • Technology advancements

Get the Full Story

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Check out our new website! www.market-finders.com

Proudly Serving the Independent Agents of New Mexico since 1977

5201 F Venice Ave NE - P.O. Box 90280 Albuquerque, NM 87199-0280 (800) 530-8711 (505) 822-8711 Fax: (505) 822-1165 www.iianm.org

www.market-finders.com

E&O

Risk

Management for Action

not necessarily legal duty) to offer coverage to protect the customer’s assets and it’s the customer’s job to make the buying decision and 2.) offering coverage and documenting rejections protects the agency even if the customer doesn’t purchase them.

3. Offer Increased Limits: It’s the customers’ responsibil-

Implementing E&O risk management into the agency can be overwhelming. Agency staff is busy servicing customers and trying to grow the agency. The good news is that an agency with good E&O procedures in place is also more likely to be more profitable. Below is a list of 13 steps the agency can implement to help reduce E&O exposure. They don’t need be implemented all at once. To keep from getting overwhelmed consider implementing one per month.

ity to determine insurable values and preferred limits. However, why not include increased limits with every quote? E&O claims often stem from inadequate limits so higher limits can be the difference between a covered and uncovered claim. Another proactive risk management approach is to make sure customers understand the valuation methods and any coinsurance limitations.

Don’t Renew As-Is: Agents work so hard to attract new customers which is a difficult task. But once the customer Assess customer needs: Understanding your cusis written there is danger in putting their renewal on autopitomers’ operations can help agency staff uncover areas of lot. Customer exposures change over time and so do their exposure. To do this, agents need to know the right questions coverage needs. How often is agency staff working with to ask. Risk assessment questionnaires can guide producers renewals to assess their exposures? Is there at least an in their conversations with customers and E&O coverage annual letter emphasizing that the customer should contact checklists can document coverage that is offered. Whether the agency for changes to their insurance needs? Is coverstate law prescribes a legal duty to assess customer expoage that may have been offered during the new business sures and offer coverage, covering exposures that could process being offered at renewal? later lead to an uncovered claim is the most proactive thing agencies can do from an E&O risk management standpoint. Review/Audit Customer Files: You’ve heard it in E&O For an annual subscription of $250, the Big "I" Virtual Risk seminars that the three most important things an agency Consultant offers descriptions for operations of hundreds can do is "document, document, document". Good docuof businesses, risk assessment questionnaires and E&O cov- mentation in customer files is tremendously important, but erage checklists. It will make agency staff better at what they does your agency have it? Make it a routine to periodically do and in the end increase agency revenue. pull some customer files to check if they have the level of documentation that would help defend the agency should Offer Coverage: When it comes to E&O claims against an E&O claim occur. Consider a peer review process. Make agents, it’s always interesting to hear testimony from it an exercise of continuous improvement, not one targeted customers saying they would have bought the coverage if at catching employee mistakes. This type of process will only it was offered to them. Yeah, right! Customers come to keep good documentation at the forefront of the minds of the agency with an idea of the type and amount of insuragency staff. ance they need and are looking for the best price. Even if it seems like a bother to the customer, don’t be afraid Stay Current On Coverage: Insurance coverage is to discuss other exposures they may have and provide complicated and it is constantly changing. In 2012 ISO quotes for additional coverage. Producers should keep introduced changes to the commercial property form and these couple things in mind: 1.) it’s the agents job (although 2013 will bring changes to the CGL form. Agency staff

PRINCIPAL

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needs to stay abreast of changes in coverage and educate customers accordingly. The investment in educating agency staff will pay huge dividends in writing more coverage and reducing E&O exposure. Set up education paths for all agency employees and keep in mind that Continuing Education requirements should be looked at as minimum standards.

Create a Culture: E&O risk management is not something that the agency staff should turn off and on. It needs to be a culture that permeates agency staff year round. Hold staff meetings about the importance of E&O risk management, share articles, periodically audit files, and make part of the employee performance review discussion. Frequently asking employees if they are aware of situations that could potentially give rise to future claims also keeps the subject front and center. But it is only possible with a culture of awareness.

Don’t Be Afraid to Report Potential E&O Claims: The earlier your E&O carrier is involved in an E&O claim the better the chances of a positive outcome. While your first instinct maybe to try yourself to make the claim go away, this is the wrong approach. On the average, one in seven agencies will report an E&O claim but 50 percent of claims are closed with no defense or indemnity payments. E&O claims are going to happen but focus on getting your E&O carrier involved early.

Handle Customer Claims Expeditiously: It is astounding how many E&O claims involve agents failing to handle customer claims properly. The common error is failing to forward the claim to the carrier in a timely basis. When claims are taken and not delivered to the carrier the same day with appropriate follow-ups set in the agency management system, the agency not only puts itself in jeopardy of an E&O claim but also of losing its reputation with customers. Customers pay premiums for the moment when a claim happens and when it is not handled appropriately frustration can set in as to why they purchased the coverage in the first place. Make sure customers understand their responsibilities in the event of claims and execute on the agency’s responsibilities as well. Agencies should never make coverage determinations, as that is the role of carriers. Agency staff should report the claim in a timely fashion to ALL carriers where coverage may be applicable including excess and umbrella carriers.

10. Incorporate Disclaimers: A simple line of defense

against E&O claims is incorporating disclaimer language in the agency’s operations. There are different types of disclaimer language that can be used in different scenarios such as voice mails including language that coverage cannot be bound or changed without speaking to a licensed agent or proposal disclaimer language that the insured should read their policy. Sample disclaimer language can www.iianm.org

be found on the E&O Happens website (www.iiaba.net/eohappens). Disclaimers are helpful in the defense of an E&O claim and can reinforce information customers need to be aware of.

11.

Value or Limits: Re-evaluate how your agency handles the determination of insurable values and limits for customers. Inadequate limits or values are common allegations made against agents when customers experience a loss that is insufficiently covered. Be sure to clearly state that values and limits are determined by the customer. When agency staff specifies the limits a customer should procure their standard of care can be increased to assure the limits are adequate. When using cost estimators provide a disclaimer that this is just an estimate and the cost to rebuild or replace could exceed the limits. Make sure the customer is accounting for upgrades and explain that purchase price and appraisals are different than the actual cost to rebuild under specific circumstances.

12.

Protect Customer Data: This is a complicated issue but it’s time for agents to stop burying their heads in the sand. Agents have a legal obligation to protect customer data. Start by educating yourself on the state and federal laws outlining responsibilities. The E&O Happens website and the Big "I"’s Agents Council for Technology website (www.iiaba.net/act) have information to help you understand agency exposures. Keep in mind that your customers have cyber liability exposure and are also subject to many of the same regulations that the agency is. Learn how it applies to the agency and then parlay that into selling coverage to your customers. Visit www.bigimarkets.com if you are in need of access to some cyber liability markets or contact the IIANM at 800-621-3978.

13.

Attend an E&O Class: Only good things come to those that attend an E&O seminar put on by a Big "I" state association. Data shows that those agencies that attend are much less likely to have an E&O claim. Agents can also get discounts on their E&O premium and CE credits are often filed for the seminar. In addition, attending the seminar will help you achieve and implement all of the suggested risk management items listed above. Implementing any of the above steps can help any agency reduce exposure to E&O claims and improve customer service. If you feel overwhelmed by the list, pick the low hanging fruit such as sending all staff to an E&O seminar, pull a couple customer files every so often to review documentation being used, implement disclaimer language which is available at www.iiaba.net/eohappens, and purchase the Big "I" Virtual Risk Consultant (www.iiaba.net/VRC) for staff which will educate them on customer risk exposures and coverages, and provide them with E&O checklists. Remember, small steps over time can make a big difference. 13

The WCA of NM Foundation presents

A Day on the Links

FORE

21st Annual Toby Wright Memorial Scholarship Golf Tournament

Mark your calendar for Wednesday, May 13 and make plans to be at The Isleta

Eagle Golf Course to participate in the 21st Annual Toby Wright Memorial Scholarship Golf Tournament, sponsored by the WCA of NM Foundation. This fundraising tournament helps kids whose families have been negatively impacted by a work-related injury. Last year’s tournament raised $42,300.00 and was the highest amount yet. Since its inception in 1996, the Foundation has assisted 49 students with more than $746,000 in scholarship funds, helping these students to realize the dream of a higher education after high school. One such student is Amber Michelle Carrasco. Amber is 19 years old and has a sister and two brothers.

Amber Carrasco

In 2010, Amber’s dad was killed in a rollover accident returning from work. Amber is pursuing a criminal justice degree at New Mexico Junior College in Hobbs and this scholarship allows her to pay for school without having to work, which gives her time to spend with her 2 year old son, A’donis. Help us to make this year’s golf tournament another smashing success. Let’s keep turning dreams into realities for kids like Amber! Our goal is to sell out both players and hole sponsors again this year. You may use the attached registration form or register and pay online at www.wcaofnm.com. Please call Brock Carter at 1-800-640-0724, or (505) 881-1112 if you have any questions.

Meet the students the Foundation has helped since 1996: Staci Garcia Cynthia Cline Stephanie Martinez Angelina Sanchez Anthony Paul Romero Monica Uriate Jeff Lamkin Charles Chambers Sherri Garcia Sandoval Patrick Stephen Blea Rebakan Kelly Kelly Miera Bianca Castillo Emeterio Rudolfo Irene Garcia Karen Marteniz Michale Patscheck Christoper Patscheck Sheila Voorbach Since the IIANM/New Mexico Mutual Scholarship Alex Lavato Marcos Benally FundMierra and the WCA of NM Foundation held similar Jessie Eva Lucero Lucero Antonia Marcos golf tournaments with relatedAda goals, the Scholarship Symone Kelsey Andres Sanchez Fund Board made a decisionSamantha to combine Nicholas Marrujo Garzaforces Wilfred $50,000 Sanchez to the Arianna with theWare WCA. We have donated Adriana Blea Michael Galik WCA Foundation, which will Lauren continue to be used Bednorz Katrina Dee Kayleighstudents Malone whose Cody Ashby to fund scholarships for deserving A.D. Richens Ondrea Pecos families have been negatively impacted Salomon Aliresby a work Brian Sandoval Baca Pamela relatedSandoval injury. We would likeCelina to encourage our Nicole Miera Amber Carrasco agents to support this worthyDomonique cause byGarza participating Justin Lillywhite Sandra in this Valdez excellent event, now in its 21st year. WCA of NM Foundation is a 501 C-3 non-proﬁt organization.

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A Day on the Links

FORE

Isleta Eagle Golf Course Wednesday, May 13, 2015 Presented by

21st Annual Toby Wright Memorial Scholarship Golf Tournament

The WCA of NM Foundation

Registration Options (please check all that apply):

a 501 C-3 non-proﬁt organization

Flight 7:30am  or 1pm   Sponsorship I $2,500 Includes two teams (list names below), two hole sponsorships (list names below), and 16 mulligans

 Sponsorship II $1,500 Includes one team (list names below), a hole sponsorship (list name below), and 8 mulligans

 Team $600 Players Names

Phone Or Email Contact

 Individual $150 Name

 Hole Sponsor $250 Individual or Company Name(s)

 Hole Concessionaire $350 Individual or Company Name

 Mulligans (2 For $20) Max 2 Per Player — May Be Purchased At The Course Or Included With Registration Fee

Total Amount Due: $ Check One:

Visa

American Express

Credit Card Number:

Exp:

SIC Code

Authorized Signature: 1. Fax registration form to reserve your spot/s: 505.889.3747 2. Mail payment & form to: WCA of NM Foundation, 3207 Matthew, NE, Albuquerque, NM 87107 For further information, call Brock Carter at 505.881.1112 or email Brock@safetycounselling.com. Entry fees may be tax-deductible in full or in part as allowable by law.

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Virtual University’s Ask an Expert

IS A MOTOR HOME A HOME? ulty

VU Fac

Our faculty handles plenty of simple questions. However, frequently we get questions that, on the surface, seem simple, but on further inspection prove to be quite problematic, even controversial. Here's one involving motor homes and homeowners policies.

Bubba has an HO 00 03 05 11 policy with $50,000 Coverage C on his personal property. He also owns a motor home that he and his wife, Bubbette, use throughout the year to take extended trips to visit grandchildren and reptile farms. Bubba has about $10,000 of personal property in the motor home and it stays there all the time. So, is the personal property in the motor home subject to the 10% HO limitation? Seems like a simple question, doesn't it? Well, even our faculty can't reach a 100% consensus, but here are their reasons.... The ISO Homeowners policy generally provides worldwide coverage for personal property owned or used by an insured. However, there is a 10% limitation on property USUALLY at another RESIDENCE. Here's an excerpt from the ISO HO forms: "Our limit of Liability for personal property usually located at an 'insured's' residence, other than the 'residence premises,' is 10% of the limit of liability for Coverage C, or $1,000, whichever is greater." Note that the limitation only applies under two conditions: (1) the property must be USUALLY located away from the residence premises (e.g., it doesn't apply to property you take with you to your furnished cottage at the lake), and (2) the property must be kept at another RESIDENCE (e.g., if you store some property in a mini-storage warehouse, the limitation doesn't apply since it is not a residence). So, is a motor home another "residence?" Faculty Response Webster's defines "residence" as: "...the place, especially the house, in which one lives or resides. A structure serving as a dwelling or home. The act of living or staying at a specified place while performing official duties, carrying on studies or research, awaiting a divorce, etc." Based on this dictionary definition, I don't think a motor home is "permanent" enough to qualify as a "residence." It's more like a temporary abode, such as a hotel room, where the 10% limitation does not apply. Faculty Response Black’s Law says: “Place where one actually lives or has his home; a person’s dwelling place or place of habitation; an abode; house where one’s home is; a dwelling house. Personal presence at some place of abode with no present intention of definite and early removal and with purpose to remain for undetermined period, not infrequently, but not necessarily combined with design to stay permanently. Resident implies something more than mere physical presence and something less than domicile. The terms “resident” and “residence” have no precise legal meaning; sometimes they mean domicile plus physical presence; sometimes they mean domicile; and sometimes they mean something less than domicile. Residence means living in a particular locality, but domicile means living in that locality with intent to make it a fixed

and permanent home. Residence simply requires bodily presence as an inhabitant in a given place, while domicile requires bodily presence in that place and also an intention to make it one’s domicile.” Based on this, I would lean more towards a motor home being a residence and the limitation applying, ALTHOUGH I can just as easily lean the other way, back and forth, until I get nauseous. When you get right down to it, I suppose it depends on how often and for how long the motorhome is used as a “residence.” If you take a two-week trip, why should coverage be more restrictive than it is at a hotel? So, when you get right down to it, I think this question would have to be decided on a case by case basis. And, for what it’s worth, the ISO PAP policy has an exclusion under Medical Payments for occupying any vehicle located for use as a residence or premises. In this form, that would seem to imply that, in ISO’s eyes, a vehicle can, indeed, be a “residence.” Of course, again, courts don’t always agree with ISO.

Click here to view additional faculty responses and also other related articles. You will need to log-in to view, so if you do not know your log-in info, send Rachel an email.

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Steve

ANDERSON.com by, Steve Anderson (Always feel free to email me with comments, new ideas or products that have worked for you. I will check them out and spread the word!)

Check the Security of Your Google Account Being vigilant about protecting your online account against a hacker is critical. It is likely you have an online Google account. You may use Gmail for one of your email accounts, have a profile on Google+, use Google Drive, or you might use Google’s Chrome browser. If you use any of Google’s wide variety of services, you have created an account. Google has a free service — Google Security Check — that allows you to easily and quickly check the security of your Google accounts. Performing a security check will help you find any problems (if they exist). I ran the security check and found a potential safety issue. There were several services I had given access to that I no longer use. With a simple click I was able to revoke access. You might have the same security issue on your computer, and an easy way to find those holes is to run the Google Security Check. It takes just a couple of minutes. Here’s what it does:

The Google Security Checkup is free, and you can run the process by going to https://myaccount.google.com/ and clicking on GET STARTED. Running this security check on a regular basis is a good idea. Doing so will add another layer of protection to the information contained within your Gmail, YouTube, and other Google accounts.

1) Ensures your account recovery information is current. If Google detects suspicious activity in your account, they use this recovery information to get in touch with you to make sure no one but you gains access to your account.

Fill out this quick form to get your own TechTips delivered to your inbox every Thursday morning.

2) Lets you review recent sign-in activity. Reviewing recent activity allows you to validate that the sign-ins are coming from you and not someone who should not be using your credentials. 3) Confirms the apps and devices that you have given permission to access some of your Google account information.

Glad You Asked On-Demand Audio Answers to your most pressing insurance technology questions.

This step lets you see other applications and services you’ve given permission to access your account information. You can remove apps and devices that no longer need access. 18

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For All That Matters

facebook.com/acuitywow www.iianm.org

The Battle Begins:

Compare Auto Insurance Launches in California By Marty Agather

Google Compare is now live in California. Google announced recently that their Google Compare Auto Insurance site is now live in California. If you run through their site, you will see that it is very well designed, and straight-forward to use. They are quoting 14 different carriers.

In 2003, Walmart announced new requirements to vendors who wanted to sell product in their stores. The most forward thinking of those was to require RFID tracking tags in each item. The tag tells electronic readers the product SKU, description and the name of each specific item.

Google offers the shopper the option of either filling the data in, or having Google retrieve the data for them. Although I didn’t take this option, Google will pull data from public information sources such as LexisNexis, or perhaps resources they’ve been building in the background.

RFID tracking tags allow Walmart unprecedented inventory control and data.They know when product arrives, where it is stored, and when it is sold.

In my test, I received seven quotes, and seven carriers chose not to provide a quote. I don’t blame those who didn’t return quotes. I wouldn’t quote me either. Google Compare: Hire Me for your Insurance Strategy! Got you to look, didn’t I? Let’s get this out of the way up front. Google isn’t going to hire this ex-insurance agent to design their insurance strategy. Heck, they probably have interns in their insurance division with PhD’s and patents. In every other thing they do, they hire the best and the brightest. Why would this opportunity be any different? But if Google made me head of strategy for their insurance initiative, today’s launch would be the first of many steps that would ultimately rewrite the way insurance is sold, underwritten and priced in the U.S. What is Google up to?

An intermediate step would be to own and staff an agency. In this way they would control the process more fully, and they’d get better business intelligence as well. They would know what business closed and what didn’t. However, their ultimate goal is probably much bigger. Could Google’s End Game be Walmart? Google’s research finds that consumers want quotes from two or more insurers. Very quickly Google will have enough traffic and brand awareness from insurance shoppers that they can start to require players on their platform to participate in specific ways. Walmart did the same thing back in 2003.

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How might Google implement a similar approach? How about if they said to any insurance company that wanted to quote on their platform: “You can’t ask any of your carrier unique questions. And you can only use the Google agency to bind and service the accounts.” Sure, insurance companies could refuse to participate using the new rules. Let’s talk turkey: Too many insurance companies are too competitive. Somebody will be first, and then the rush to play will be on. The End Game Although I took this quote from the Google website a couple of weeks ago, I am re-purposing their text. THIS IS NOT A DIRECT QUOTE! The red words below are mine, but the rest come from another (different) Google initiative. The intent as presented in that statement, if extended to insurance, may provide some clarity as to their ultimate intent.

PRINCIPAL

The steps taken today are Google’s lowest cost method of entry into the market. As described in this earlier post, they are providing a comparative rating tool, and then allowing the carriers either to bind online, or to direct the consumer to one of their agents for binding and policy issuance.

Twelve years later, all large retailers are using RFID for inventory control. Walmart played the long game, and revolutionized the retail industry.

“Our goal in launching Google Compare Insurance is to create a service that will give people access to their personal risk and insurance information. We want to translate our successful consumer-centered approach from other domains to insurance and have a real impact on the day-today insurance experiences of millions of our users.” Kinda scary when you fill in the topic of insurance, huh?

They aren’t doing this to earn commissions. They want to have real impact on the experiences of their users. Because if they can, the BIG money will follow. And big money means carrier money. Could Google Become an Insurance Carrier?

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Why Your New Inbound Lead is a Ticking Time Bomb

By Dan Herman SOURCE: Agencynation.com

It makes sense, if you think about it. That prospect has made a buying action. That’s the timer starting. The worst thing you can do is putting it off until you’re ready. The countdown is happening now. The damaging explosion is them taking their business elsewhere. Follow-Up Time Matters Don’t let that new inbound lead blow up in your inbox! My friend Ryan Hanley capably responded to Anson Ross Thompson’s article, which was published recently, (read Creating a Less Responsive Insurance Agency is Unacceptable). I wanted to expand on a portion of this that is very close to my heart: how it affects your response to leads. Before we delve into this, you need to answer this question and be completely honest. What is your agency growth plan? 1. Are you waiting out the rest of your career and willing to lose part of your book year over year? 2. Are you content with your book size and not actively searching for opportunities? 3. Are you tenaciously hunting out policies to write and working to grow your business?

If it’s one of the first two, then you know how you want to run your business and Anson’s low-stress use of technology may be perfect. If you’re in the third camp, then I’d like to instill a thought in your mind. A new inbound lead is a ticking time bomb. A young couple recently purchased a home. They now excitedly get to have their first experience with home insurance. They’ve taken this opportunity to shop outside of their existing captive agent, who they barely know. The time crunch is that they need the policy in order to complete their new home purchase. 2 days is an eternity in that circumstance. A new inbound lead is a ticking time bomb. Particularly one generated from the internet. www.iianm.org

They’ll find someone else that’s interested in their money. All you have to do is reach out, but you have to do it right now. I cannot stress that enough. A lead is a ticking time bomb. If you believe online lead generation is a waste of time, reacting to them poorly will only confirm your theory. Reacting to them appropriately will tell you if they’re worthwhile and could give you a new way to grow your business. Nearly half of all leads don’t get a response within 24 hours, if at all. The average response time? 55 hours. That is unacceptable in our industry, particularly with the convenience technology grants us.

PRODUCER

All 3 are completely valid answers. In fact, I’ve had conversations with agents who have told me all three of those responses recently.

It’s intuitive. You need to follow up with your leads in a timely manner. On the internet, that “timely manner” is now. It’s important that the buyer has chosen your agency to discuss their needs, but you will find their loyalty fleeting if you don’t follow through your side of the deal. It doesn’t matter if it’s a solo auto policy or a white whale with 4 homes, 18 cars and a yacht.

Continuing my analogy, the fuse for each lead is different. Granted, some people may be alright getting their follow-up call 2 days later, but how hard do you think that prospect is shopping in the first place? More importantly, the active buyers you want will have already purchased their coverage from someone else. Conclusion

If you are in an agency that’s actively trying to grow, it’s difficult to rectify this mentality with the concept of eschewing technology or only checking your email twice a day.

A service-oriented agency that wants to grow needs to adapt to the new model of buying insurance online, and the best way to start is to adapt the mentality that will drive you to rapid action: A new inbound lead is a ticking time bomb.

Independent insurance agents continue to outperform captives in several areas.

STUDY REVEALS STABILITY AND GROWTH IN P&C INSURANCE MARKET The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) has released the results of the 2015 Market Share Study (based on 2013 data) which reveal that independent insurance agents and brokers (collectively “IAs”) continue to dominate commercial lines while rivaling direct response writers and captive carriers in personal lines business. This is the 19th year the Big “I” has contracted with A.M. Best Company to receive year-end industry market share and company expense data. The Big “I” analyzes this data annually to assess the state of the independent agency system. “The Big ‘I’ is pleased to announce that the independent insurance agency system continues to be stable, strong and growing,” says Bob Rusbuldt, Big “I” president & CEO. “Among the many pieces of good news the study revealed are that all property-casualty (P&C) insurance premium lines grew for the third year in a row, bouncing back from their recession-driven low points in 2010. After three years of strong growth, both personal and commercial lines have exceeded prerecession volumes, and combined are now generating $532 billion in annual premiums. Combined, the market grew by $25 billion in 2013 over 2012 levels.”

PRINCIPAL

The Market Share Study revealed that at both the state and carrier level, independent agents and brokers were well poised to capture their share of the market or more. Also, IAs grew faster than the overall market and thus increased market share in about half of the states and the District of Columbia. Furthermore, several IA carriers increased their market shares by substantial amounts. However, there was a significant divergence between the national and regional carriers in terms of growth. “This annual study provides the most accurate picture of the state of P&C insurance distribution for several reasons,” says Madelyn Flannagan, Big ‘I” vice president of agent development, education and research. “We separate the direct response companies from the captive agency companies which offers the most accurate picture of changes in P&C insurance distribution year after year. As well, we look at each line on a state-by-state basis, and also segment the IA system by national vs. regional carriers. This thorough analysis of the data continues to offer a very detailed view of the overall P&C marketplace and provides insight into areas of opportunity for the IA channel.” Other findings from the Market Share Study include: • IAs still control a majority of the entire P&C market, writing nearly 57% of all premiums. • IAs write nearly 35% of all personal lines premiums. • IAs still dominate commercial insurance sales, writing 24

OVERALL SHARE OF TOTAL 2013 P&C PRODUCTION Regional Agency Writers (Regional IAs) 31%

National Agency Writers (National IAs) 26%

Excludive Agency Direct Writers (Captive) 35%

Direct Response Writers 8%

nearly 80% of a market that has grown by more than $35 billion over the last three years. • IAs grew market share in 23 states and the District of Columbia. In many states, they dominate both personal and commercial lines. That suggests IAs in other states have an opportunity to add share in more lines if they put a renewed focus on it. • IAs can be as efficient as other models. In the lucrative personal auto market, both regional and independent insurance agency writers average better expense ratios than the captive agency model. Furthermore, nearly a dozen IA companies rival or beat direct response writers on this key expense efficiency metric. • Personal auto premiums written by IAs grew nine times more in both 2013 and 2012 than they did in 2011. IAs increased premiums by $1.8 billion in both 2012 and in 2013—versus the mere $200 million growth figure reported in 2011. • Many Big “I” Best Practices agencies continued to grow in the face of the weak economy and are doing well now that the P&C market appears to have turned around. Agencies that are easy to do business with, leverage technology, focus on market segments and emphasize the Trusted Choice® brand, have the potential to enjoy robust growth in every state and every product line. All of the data in the Big “I” report come from A.M. Best and is printed with its permission. More information on the study is available by request or online at: www.independentagent. com/Resources/Research/MarketShareReport. www.iianm.org

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A New Way to Compete for Personal Lines Clients By Dave Evans Anxiety is growing among independent insurance agents regarding the gigantic marketing expenditures by the direct channel to position personal auto insurance as a commodity, akin to taking 10 or 15 minutes to buy a few groceries. In many cases, independent agents have tried to replicate that approach using comparative raters and generating a quote without investing the time to learn about the potential client’s situation and objectives. And if they gain the new account, unless a claim or another issue arises, they will automatically renew the account without meeting with the client, focusing instead on new customer acquisition. Consider the following example: A hypothetical agency has a target retention of 92% for personal lines and hopes to add new policies in force (PIF) of 10% annually. The agency has 1,000 personal lines clients and a net PIF growth rate of approximately 2%. Over time, the agency realizes the average age of their customer base is increasing - resulting in less new automobile purchases, which means less premium. Plus, some of the households drop an auto, ending up with a single family vehicle or no vehicle all.

garding the cost of life insurance that an independent agent could help clear up. Perhaps one of the most disturbing aspects of the study is that only 29% of Americans have disability insurance. That means 7 out of 10 people are walking around without disability insurance unless they can qualify for Social Security, which utilizes strict criteria and benefit payments that may be inadequate to meet a person’s needs. As more Americans work as consultants or independent contractors (don’t forget n-home business policies) they face significant disability insurance exposure. Similarly, the study reveals only 13% of Americans have long-term care insurance, another potential sales opportunity. Turning back to our hypothetical agency, it would appear that hitting a target of two new life insurance policies and one new disability insurance policy per week is an attainable goal. Numerous MGAs would be glad to generate proposals, assist with underwriting and bind cases—and research shows the more policies a client has with an agency, the more likely he or she is to remain a client.

PRODUCER

The agency realizes it needs to attract new clients earlier in their lifecycle—late 20s and early 30s—but this target group Take a fresh look at your personal lines clients to generate more revenue and cement the client-agency relationship. may include renters rather than homeowners, translating into lower personal lines revenues. Aside from ramping up digital advertising and social media efforts, what else can the agency do to generate more personal lines revenue? Data from LIMRA’s 2014 Insurance Barometer Study might have the answer. First, one in four Americans surveyed reported they need more life insurance. For an agency with 1,000 personal lines clients, that means 250 clients realize they need more life insurance. But the same survey indicates only one person in 10 is likely to purchase a life insurance policy within the next year. For an agency with 1,000 personal lines clients, that still means 100 customers are likely to purchase life insurance in the next year. For the remaining 150 clients that realize they need more life insurance but are not very likely to purchase, an additional opportunity exists to discuss their situation—especially since the survey also reports that 63% of respondents said they have not purchased more life insurance because they think it’s too expensive. That means in many cases, the client has a misconception re26

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an d

Odds ends Don’t go broke on vacation Know your allergies to defeat them this spring The allergy season is upon us, creating misery for more than 35 million people. Here are some tips for alleviating allergy attacks caused by pollen and mold: • Keep your windows closed at night. Use air conditioning, which cleans, cools, and dries the air. • Minimize early morning activities outdoors between 5 and 10 a.m. This is the time of day when pollen is most prevalent. • Keep your car windows closed when you drive. • Take a vacation during the height of the pollen season. Pick a place that’s more pollen-free, like the beach or the sea. • Take the medications prescribed by your allergist. • Don’t spend too much time outdoors when the pollen count, humidity, or wind factor is high. • Avoid raking leaves or mowing lawns, which stirs up molds and pollens. Delegate these tasks to someone who isn’t allergic. • Don’t hang sheets or clothing out to dry. Pollens and molds may collect on these items. • Don’t grow too many indoor plants. Wet soil is a breeding ground for molds.

April isn’t too early to start planning your summer vacation. And with proper planning, you don’t have to spend a lot of money to have a good time. Here are some smart ideas for saving money while you relax and refresh with your family: • Research your destination thoroughly. The Internet, and a good guidebook, can help you find inexpensive hotels and restaurants. You may also discover free or inexpensive attractions, and find out whether museums, parks, and other attractions offer reduced admission on certain days. • Stay outside the city. You’re going to New York City, but you don’t have to sleep there. Often you’ll find better hotel rates and cheaper restaurants a few miles outside city limits. • Go to the grocery store. Avoid the overpriced hotel gift shops for snacks and drinks. You should be able to find a local grocery store where you can buy cheaper (and healthier) supplies for your travels. • Drive efficiently. Before an extended road trip, check your engine. Oil, air filters, and other components can affect your vehicle’s performance—and repairs can strain your budget. On the highway, keep your speed between 50 mph and 60 mph for the best fuel efficiency.

20 Ways You Could Hurt Your Credit Score

Success tip: Position yourself as an expert One way to rise in your career is to become an expert in a specific area. People will turn to you when they don’t have the time or resources to find the information or master the skills they need. Becoming an expert isn’t a quick process, but you can get started by following these steps: • Define your niche. Select an area of expertise where you can excel, something related to your industry that you can get excited about. Ask your colleagues what they think you do best. Your natural skills may not be obvious to you. • Educate yourself. Look for seminars to attend. Read everything on the subject you can get your hands on—at least one article or book chapter a day. In 12 months or less, you’ll know more than most people around you. • Find a mentor. Identify someone with the knowledge and skills you’d like to master. Learn as much from that person as you can. • Help your peers. Try to do something every day to help the people around you to succeed. Don’t show off; just lend your expertise to people who can use it. www.iianm.org

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