08lavoz by Independent Insurance Agents of NM

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COVERAGE

WORK

Five Reasons Your Customers Should Be Protected By New Mexico Mutual

CREATED FOR NEW MEXICO BUSINESSES

Created by New Mexicans for New Mexicans, we understand the diverse operations of our state’s workforce. By placing business with our company, premium dollars stay in New Mexico. We are an A-(Excellent) A.M. Best Rated company and take ownership of providing New Mexico businesses cost-effective workers’ compensation coverage.

3 4

Our tagline, coverage @ work, states our purpose. We protect businesses as well as employees. We ensure that your customers’ business investments are protected from the costs of an accidental injury and provide programs and services to keep their employees safe at work and rehabilitate those who may suffer a workplace injury.

EXCELLENT CUSTOMER SERVICE We distinguish ourselves from the competition by providing the highest standard of customer service. We are a local company that understands the state and your customers’ specific needs, not a faceless 800 number. We are committed to service excellence and our local team of safety and claims professionals know how to take care of injured workers and provide useful and practical information to keep workplaces safe. Our website, which includes safety videos (streaming or checkout), Pay My Bill, File a Claim and many other features, is another valuable resource available to all employers and their employees.

LEADERSHIP AND ADVOCACY FOR NEW MEXICO BUSINESSES

New Mexico Mutual works to ensure that New Mexico continues to be a good place to do business by monitoring legislative and regulatory bodies throughout the year. We are an industry leader in collecting and providing workers’ compensation data to the state of New Mexico. We represent our clients and their employees in Santa Fe by advocating legislation that protects businesses and workers, while keeping the cost of workers’ compensation insurance to a minimum.

PROTECTION FOR EMPLOYEES, SECURITY FOR YOUR CUSTOMERS

INTEGRITY

New Mexico Mutual is recognized as one of the most ethical companies in New Mexico and we’ve earned that designation by being forthright and respecting the relationships we’ve built with our agents, policyholders and injured workers. We have fair processes for employees and employers that are all handled locally. We are financially strong and can be trusted to back your customers when they need us most.

New Mexico’s Experts in Workers’ Compensation www.iianm.org Insurance

“La Voz” is the official monthly e-publication of the

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

Independent Insurance Agents of New Mexico

Independent Insurance Agents of NM

iianm’s

Anniversary

On the Cover:

Celebrating 80 Years in New Mexico

This month’s iconic New Mexico locale: White Sands National Monument Like No Place Else on Earth Rising from the heart of the Tularosa Basin is one of the world’s great natural wonders - the glistening white sands of New Mexico. Great wave-like dunes of gypsum sand have engulfed 275 square miles of desert, creating the world’s largest gypsum dunefield. White Sands National Monument preserves a major portion of this unique dunefield, along with the plants and animals that live here.

Features Last Chance Seminar Registration 05 IIANM’s 80th Annual Convention Registration

Convention Breakout Sessions 07 Convention Highlights 08 Walmart and Overstock.com in the Insurance Marketplace

Study: The 10 Least Financially Literate States

Worst States for Teen Drivers 16 Cultural Shift to Service 20

President/CEO Thom Turbett Chief Strategy Officer Marit Peters VP of Member Services Consuelo Trujillo Insurance Programs Administrator Suzie Dodds, CIC Communications Director Rachel Sheffield Member Services Associate Renee Trujillo

2013-2014 Officers Chair Diana Hobbs Vice-Chair Gabe Portillo Secretary/Treasurer Connie Sevier National Director Sam Conlee Immediate Past Chair PJ Wolff www.iianm.org

S-Corps and Independent Agencies 22 Agency Employees Moonlighting 25 Were Most Obamacare Enrollees Uninsured? Kaiser Answers...

Are Insurance Agents Being Paid What They’re Worth?

In Every Issue IIANM 2014 Company Partners! 04 Tech Talk 18 August’s Clickable Calendar 28 Odds n Ends 29

Advertiser Index Acuity 10 Burns & Wilcox Back Cover Litchfield Special Risks

Market Finders, Inc. 14 Molina Healthcare 13 Mountain States Insurance Group

New Mexico Mutual 02 Risk Placement Services (RPS) 23 Towerstone Insurance Services 17 Trustco / HCIT 26

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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Last Chance Seminar 15 Hours of Continuing Education for the Insurance Professional

Pick any two days to receive all required 15 Continuing Education Hours:

Life & Health 8/20/14

AM: Keys to Remaining Independent (4CE) PM: Keys to Remaining Independent (3CE) Ethics hour: 4pm - 5pm

8/21/14

AM: Obama Care in the Agency / NMHIX Update (4CE) PM: What is a Co-op? / ACA Update(3CE hrs) Ethics hour: 4pm - 5pm

Life & Health -

Property & Casualty 8/26/14

AM: Personal Lines Coverage Gaps (4CE) PM: Flood (3CE) Ethics hour: 4pm - 5pm

8/27/14

AM: Commercial Lines Coverage Gaps (4CE) PM: Certificates of Insurance & Additional Insureds (3CE) Ethics hour: 4pm - 5pm

8/28/14

AM: Business and the PL Client (4CE) PM: Umbrella - Is Your Client Covered? (3CE) Ethics hour: 4pm - 5pm

Property & Casualty -

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BREAKOUT

SESSIONS

SEPTEMBER 25, 2014 ANTI-FRAGILE: THE ANSWER TO MEETING THE NEXT GENERATION CHALLENGES

9am – 10am

You don’t want to just survive uncertainty and the onslaught of changes. You want to be beyond resilient and robust. This requires evolving your corporate culture, your leadership ideas, technology innovation and hiring practices. In this session, let’s explore where your agency is at and what you can do to prepare for the future in this volatile environment: it will require becoming the opposite of fragile: anti-fragile. The program will help you: • Identify specific areas your agency may not be proactively preparing for the future; • Hear what best practice agencies are doing to combat VUCA (volatility, uncertainty, complexity, ambiguity); and • Take home tools and specific action items that your organization can adopt to ensure success Tom Minkler (the Big I’s Chairman & President of Clark-Mortenson Agency), Chip Bacciocco (CEO of Project CAP) and Marit Peters (IIANM) will be partnering to share solutions agencies are implementing to remain independent & capitalize on opportunities.

Tom Minkler

Sponsored by: PIMP YOUR RIDE: TAKING YOUR AGENCY TO THE NEXT LEVEL

10:30am – 11:30am

How are you leveraging your agency’s strengths to drive growth and maximize profits? Whether you are an agency owner, manager or producer – you are being asked to do more with less. Are you acting ‘smart’? Do you know how to improve your agency or your own performance?

Chip Bacciocco

In this session, you will have the opportunity to build your own gap analysis in which you can assess your current strengths and identify the opportunities for effectively concentrating your resources to ultimately grow your margins. The session will: • Define the characteristics of profitable agencies • Demonstrate how specialization drives revenue growth and improves profitability • Provides tools to formalize your profit center to achieve bottom-line results & build upon your strengths • Help you identify where you should be investing your margins for agency strategic growth Join Mia Logan (Transformational Coach), Tom Minkler (the Big I’s Chairman & President of Clark-Mortenson Agency), and Marit Peters (IIANM) for a focused session built upon best practices and actual experiences.

Mia Logan

Sponsored by: TOUGH LOVE: LET’S GET SERIOUS ABOUT OUR NUMBERS

1:30pm – 2:30pm

We hear about metrics all the time. We hear best practice agencies use them … but how? Which ones? How can you get employees excited about them? How do you translate them to individual performance? Metrics can be a fantastic tool for creating momentum inside an agency… or they can be a de-motivator. It’s NOT WHAT they are – it’s HOW you implement them. Do you know how to make the difference?

Marit Peters

Join us for an interactive workshop that explores: • your leadership role in an agency; • which metrics are critical for measuring workplace productivity and success; • tools for implementing them and engaging your employees in the process; • the culture required for making excellence a “cool” thing; and • how to drive operational excellence while focusing on customer intimacy. Come prepared to challenge yourself and your agency. It will be rewarding! Sponsored by: www.iianm.org

g Sponsored by,

tournament

September 24th

Join this fun tournament of insurance professionals and company partners! IIANM’s TRADE SHOW is the best way to stay connected to the insurance industry. This year, our Trade Show will be held on the afternoon of Sept 25. Cocktails and hors d’ oeuvres will also be served. Come join the fun, Visit the exhibit booths,

E BATTLE OF TH DECADES

TRADE SHOW

Di n ner & Entertainment

(black tie optional)

Sponsored by,

Enjoy a hosted cocktail reception followed by an elegant dinner prepared by Sandia Resort & Casino’s finest chefs. Finish your evening with entertainment and a night of dancing with the incredible Pink Flamingos.

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For All That Matters

facebook.com/acuitywow www.iianm.org

Walmart and O verstock.com in the

Insurance Marketplace By Bill Wilson, CPCU, ARM, AIM, AAM Source: Virtual University I was interviewed about the entry of Walmart and Overstock.com into the insurance marketplace with a particular focus on the alleged “commoditization” of personal lines. The following is the Q&A from that email exchange: Q: “Retailers like Walmart and Overstock.com have recently announced that they are entering the insurance market, treating insurance as if it were a commodity. What are your thoughts on the subject? Do you think that is how customers view insurance?” A: Insurance is NOT a commodity. Anyone who has ever compared two or more auto insurance policies knows that. The “ISO standard” personal auto policy is 13 pages long. I recently reviewed an auto policy from Florida that was 76 pages long. The only distinction between true commodity products is price. I’d say a 63-page differential between two complex legal contracts suggests that they are not the same product. After filling up two printed pages of differences between them before getting to the third page of the 76-page product, it was pretty obvious I wasn’t examining commodity products. However, given the price-focused insurance advertising that dominates the media, it is certainly how most consumers view auto insurance. One insurer advertises “SAME COVERAGE, Better Value.” Having examined their auto policies, I can tell you what they’re selling is NOT the same coverage as is available from other auto insurance products in the marketplace. Just because one product is cheaper than another doesn’t necessarily mean that the coverage provided is lesser, but it often is. To quote legendary salesman, Morty Seinfeld, “Cheap fabric and dim lighting, that’s how you move merchandise.” Need examples? • A Florida insured’s auto was in the shop so she rented a car and later loaned it to someone who loaned it to someone who had an at-fault accident that killed a child and seriously injured other children. The claim against the operator and named insured was denied by the insurance company on the premise that the vehicle was not a “temporary substitute” and the other operator was not a ‘permissive” user, as defined in their insurer’s personal auto policy. • The son of a friend of an agency owner was street racing when he crashed, seriously injuring himself and his passenger. The claim was denied by the insurance company www.iianm.org

based on their interpretation of their personal auto policy’s “racing” exclusion. • A “boomerang” child lost his job and moved back home with his parents. While driving his mother’s auto, he negligently struck another vehicle, fortunately causing “only” several thousand dollars in property damage. The insurer denied the claim on the basis that his residency was not reported to the carrier within 30 days of his return home. • A North Dakota church allowed a member to park his car in their heated ‘bus barn.’ While exiting, he wrecked and caused structural damage to the building. The claim was denied by the insurer, citing the “care, custody or control” exclusion in their personal auto policy. What do these four claims have in common, other than being denied by each insurance company? Every one of them would have been covered if the policyholder had purchased an “ISO standard” personal auto policy rather than the policy in question. Has a family member lost a job and is temporarily delivering pizzas? Some auto policies cover this, some don’t. Do you ever run to the office supply store or post office for your employer? Some auto policies exclude ANY business use of a vehicle. The TV and internet advertisers don’t tell you this. In fact, if you get an online auto insurance quote, tell them you’d like to read their policy before you buy it. They won’t let you. Q: “Do you think that customers are looking away from the traditional agency system and more toward the digital space?” A: They’re looking for information and some are looking for a bargain because they don’t understand that “saving 15%” today may cost you $15,000 (or more) tomorrow. Walmart is advertising locally since I live in one of their pilot states. They caution consumers to compare “apples to apples.” continued...

What they mean is to make sure you’re comparing the same limits and deductibles for liability, medical payments, uninsured motorist coverage, physical damage, etc. They mention NOTHING about examining the “fine print” in each policy, that is the specific coverage grants, exclusions, conditions, etc. There are DRAMATIC and potentially catastrophic differences between auto policies. I gave some examples above. For more information and many other examples, take a look at my <<Price Check>> article in the July issue of Independent Agent magazine. It includes a list of differences found among auto insurance policies, including this Dirty Dozen: 1. Undisclosed household residents are excluded. How many of your insureds have “boomerang” kids living at home that you’re not aware of? 2. Business use of non-owned autos is excluded. Have you ever borrowed a neighbor’s car or had a dealer loaner auto and made a business stop? 3. Business use of ANY auto is excluded. Do any agency employees ever run to Staples or the post office on agency business? What if they have one of these policies? 4. Use of ANY non-owned auto is excluded. Better not drive anyone’s car but your own. 5. Vehicles over 10,000 GVW are excluded. Have you ever rented a U-Haul truck or an RV thinking your liability coverage extended to the rental? 6. Any type of delivery is excluded. Denied claims include pizza, newspapers, Mary Kay cosmetics, and yes, even the delivery of insurance policies to customers by an agency producer. 7. Permissive users only get minimum limits. This can apply to those you loan your car to or even unlisted household drivers. 8. “Street racing” is excluded. Google “street racing” and see how often people are killed or critically injured while street racing. 9. Criminal acts are excluded or limits reduced. DUI or even speeding tickets may preclude coverage. 10. Medical payments only include licensed physician fees. One insured incurred a $25,000 “Life Flight” helicopter fee that would not be covered, even in part, by a policy with this exclusion. 11. Theft without evidence of forced entry is excluded. One insured had a four-figure vehicle theft loss denied because he left his keys in the car. 12. Sales tax is not covered under loss settlement. This cost one “same coverage” insured over $2,000 out of pocket for sales tax on a replacement auto.

Q: “What are the benefits of having a customer having a relationship with a local insurance agent versus a retail giant?” A: One online auto insurance company says they can save you 15% in 15 minutes. Competing now on price AND time. another online insurer says they can give you a quote in 71/2 minutes. If you had an abscessed tooth, would you base your choice in dentists on who can get you in and out the quickest? There’s no way someone can quote your insurance premium in 71/2 (or 15) minutes and exercise due diligence in matching your exposures to loss and the proper policy coverages. A good agent will help you identify your exposures to loss and make sure you have the opportunity to purchase the proper types of coverages top meet YOUR individual needs. An independent agent represents multiple insurers. A good agent knows the products of each of these insurers and which ones best fit your individual needs. Your hometown agents can make sure you’re getting all the premium credits you can, but most importantly, he or she will do their best to make sure you have the best product. Perhaps most importantly, a good independent agent will advocate for you at claim time. Not every insurance claim is back and white. Even where policy wording between insurers is identical, it can be interpreted differently. If a claim is denied in whole or in part, the agency can work on your behalf to get the claim paid. I literally see this every day in our Virtual University “Ask an Expert” service. Last week an agent contacted us because he believed the adjuster was incorrectly interpreting a policy provision. We agreed and the adjuster reversed the denial, resulting in a payment of $27,000, a thrilled customer, and an appreciative agent. I can promise you that “Jake at State Farm in his khakis” can’t do that for you. Nor can lizards and box store clerks.

Bill Wilson, CPCU, ARM, AIM, AAM is director of the Virtual University of the Independent Insurance Agents & Brokers of America (IIABA). He has served as a trainer and speaker for various organizations, including the Independent Insurance Agents of America (IIABA) national conventions and state convention programs and seminars, the CPCU Society national convention, National Association of Insurance Women (NAIW), the Southern Agents Conference, and the Risk & Insurance Managers Society (RIMS). www.iianm.org

Introducing Molina Healthcare’s exciting 2014 Medicare Advantage Prescription Drug Special Needs Plan Molina Healthcare, a Fortune 500 Company, was created more than 30 years ago by Dr. C. David Molina. As an emergency room doctor, he believed that every person should have access to high-quality care. Molina Medicare Options Plus HMO SNP Plan offers a competitive plan design with additional benefits that you can market year round to meet the needs of dual eligible customers.

• Large Provider Network • Comprehensive and Preventive Dental Services • Vision Exams and Eyewear • Transportation • Over-the-Counter Medications and Supplies • Strong Compensation Plan • Renewal Commissions • Competitive Plan • Market Year Round to Dual Eligible Customers

If you have a New Mexico Life and Health License, contact us to learn more. Please contact: Broker Support Unit (866) 440-9788 broker@molinahealthcare.com

NSR_14_MMG_345

38979MED0214

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Representing some of the most financially strong and innovative insurance companies in the specialty marketplace

“FINDING MARKETS FOR THE AGENTS OF NEW MEXICO SINCE 1977” WE THANK YOU FOR YOUR BUSINESS!!

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 New Mexico’s Locally Owned Managing General Agency

ESTABLISHED IN 1977

Market Finders, Inc. 14

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

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STUDY

by Caitlin Bronson Source: Insurance Business America

The 10 least financially literate states: 9. Arizona

Overall rank: 43rd out of 51 Knowledge and education: 38th out of 51 Planning and behavior: 41st out of 51

8. Kentucky

Overall rank: 44th out of 51 Knowledge and education: 44th out of 51 Planning and behavior: 38th out of 51

7. Alabama

Overall rank: 45th out of 51 Knowledge and education: 43rd out of 51 Planning and behavior: 39th out of 51 The Great Recession, coupled with the advancing age of the Baby Boomer population, has positioned insurance producers and financial advisors as some of the most important professionals in the financial services industry. Indeed, the demand for qualified financial advisers has grown, with current market penetration just 1% in some areas according to a NAIFA-commissioned study. And a new study from WalletHub.com only compounds the point. According to WalletHub researchers, Americans have racked up more than $73 billion in new credit card debt since the beginning of 2012, and only two in five adults actually have a budget. The countryâ&#x20AC;&#x2122;s financial literacy is even worse. By measuring common indicators of financial literacy like the percentage of adults with a bachelorâ&#x20AC;&#x2122;s degree, the percentage of people who spend more than they earn and how many have a rainy-day fund, researchers were able to identify the 10 least financially literate states in the US, in a comparison of 50 states and the District of Columbia. Based on these metrics, insurance professionals and financial advisers will have plenty of work with residents in these states.

10. Michigan

Overall rank: 42nd out of 51 Knowledge and education: 46th out of 51 Planning and behavior: 35th out of 51

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6. Rhode Island

Overall rank: 46th out of 51 Knowledge and education: 48th out of 51 Planning and behavior: 40th out of 51

5. New Mexico

Overall rank: 47th out of 51 Knowledge and education: 49th out of 51 Planning and behavior: 37th out of 51

4. Louisiana

Overall rank: 48th out of 51 Knowledge and education: 40th out of 51 Planning and behavior: 49th out of 51

3. Nevada

Overall rank: 49th out of 51 Knowledge and education: 41st out of 51 Planning and behavior: 50th out of 51

2. Arkansas

Overall rank: 50th out of 51 Knowledge and education: 50th out of 51 Planning and behavior: 48th out of 51

1. Mississippi

Overall rank: 51st out of 51 Knowledge and education: 51st out of 51 Planning and behavior: 51st out of 51

Worst States

By, Melissa Hillebrand Source: Propertycasualty360.com

for Teen Drivers Passing a driver's test has moved from exciting stage of growth to death sentence for thousands of teens each year. Motor vehicle crashes still account as the leading cause of death for teenagers between the ages of 16 and 19, and that age group is three times more likely than drivers aged 20 and older to be in a fatal crash. Those aged 15 to 24 represent only 14% of the population, but they account for 30% of total costs of motor vehicle injuries, according data from the Centers for Disease Control and Prevention.

Using data sourced from the U.S. Census Bureau, the National Highway Traffic Safety Administration, the Federal Highway Administration, InsuranceQuotes.com and other soruces, WalletHub weighed 16 key metrics to identify the best and worst states for teen drivers. The metrics include safety conditions (including the number and percentage of licensed teens in each state, vehicle miles traveled, teen driver fatalities, road quality), economic environment (including cost of speeding and other driving tickets, average cost of car repairs, premium increases due to a teen driver on the policy) and driving laws (including impaired-driving laws, graduated driver licensing program laws, occupant protection laws, distracted driving laws).

Lowest Percent of Teen Population with Driver's Licenses 1. Indiana 2. New Mexico 3. New York 4. Kentucky 5. Hawaii

Highest Percent of Teen Population with Driver's Licenses 50. Iowa 49. South Dakota 48. Kansas 47. South Carolina 46. Alabama

Least Teen Driver Fatalities per Licensed Teen Drivers 1. Utah 2. Delaware 3. Connecticut 4. Vermont 5. Washington

Most Teen Driver Fatalties per Licensed Teen Drivers 50. Indiana 49. Kentucky 48. New Mexico 47. North Dakota 46. Montana

Lowest Number of Teen "Under the Influence" Traffic Violations per Licensed Teen Drivers 1. Alabama 2. Illinois 3. Ohio 4. Louisiana 5. Hawaii

Highest Number of Teen "Under the Influence" Traffic Violations per Licensed Teen Drivers 50. New Mexico 49. Indiana 48. Colorado 47. Nebraska 46. Wyoming

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PASSIONATE PEOPLE. UNIQUE SOLUTIONS. IF THEY’RE INJECTING “ICOWONDER INTO THOSE OIL WELLS TO

“

ENHANCE PRODUCTION AND REDUCE POLLUTION?

Pat Ashcraft Energy Insurance Expert On the job since he saw his first pumpjack.

At Towerstone, we look to the future to shape the solutions you need to protect your assets and manage your risk. Whether it’s Oil & Gas, Construction or the Environment, our industry-specific risk management strategists have access to custom-designed wholesale insurance programs and the expertise to implement them. We’ve been living and breathing insurance our whole lives, and our hands-on approach allows you to focus your energy where it should be — on satisfying your clients’ risk concerns.

www.towerstonecorp.com/solutions Toll Free: 972-725-2100 WHOLESALE INSURANCE BROKERAGE | MANAGING GENERAL AGENCY CA: dba Towerstone Insurance Services (Lic#0F60676)

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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!)

Free Microsoft eBooks It's often the small little changes that can have a significant impact on improving productivity. Finding reliable resources for learning how to maximize your use of various software tools can be a challenge. Fortunately, Microsoft has made available over 130 different technical ebooks for free download. These ebooks cover a wide range of topics including Windows 8, Office 2013 and Office 365, to some very technical books on SQL Server, SharePoint setup, and how to program in various Microsoft products. While many of these books will not be of interest to most of you, there are some real gems that could help just about anybody learn how to better use various Microsoft products. From learning and using keyboard shortcuts to understanding how to maximize the software tools that you use every day, these ebooks are a great resource for you and your staff. A few of my favorites include: • Windows 7 Keyboard Shortcuts PDF - I have always liked learning keyboard shortcuts. • Getting to Know Office 365 PDF - This might be helpful to review if you're considering moving to that platform. • Quick Start to Office 365 for Small to Medium Businesses ZIP - Make sure to check with your agency management system vendor before you consider moving to this platform. • Office 2010 User Resources ZIP • A series of Quick Start Guides for the Microsoft Office 2013 products: o o o o o o o o o

Excel 2013 Quick Start Guide PDF Word 2013 Quick Start Guide PDF Outlook 2013 Quick Start Guide PDF OneNote 2013 Quick Start Guide PDF Access 2013 Quick Start Guide PDF Visio 2013 Quick Start Guide PDF PowerPoint 2013 Quick Start Guide PDF Project 2013 Quick Start Guide PDF Publisher 2013 Quick Start Guide PDF

• Security and Privacy for Microsoft Office 2010 Users This will be good for your staff to review. PDF | EPUB | MOBI • "Own Your Space - Keep Yourself and Your Stuff Safe Online" PDF - This is a digital book designed especially for teenagers to help them understand how to protect themselves online. This would be a great ebook to tell your clients about. Each of these ebooks are available in various formats including PDF, EPUB and MOBI for digital readers and XPS. Here is the link to the full list of books available: http://bit.ly/freemicrosoftebooks Be sure to scroll through the entire list to discover the various books that are available that might be helpful to you and your staff. www.iianm.org

Manage Multiple Locations on Facebook Facebook is a powerful digital marketing tool that insurance agencies should be using to enhance their visibility to people who are active on that platform. One of the many tools available to you is an effective Facebook Agency Page. Unfortunately, for agencies with multiple locations it can be a time-consuming process to keep a Facebook Page for each location current. But, fortunately, Facebook has made things much easier with the help of Facebook locations (formerly Parent-child pages). Using Facebook locations allows you (or someone in your office) a way to manage pages for all your separate locations in one place. Each separate location will be tied to one main Agency Facebook Page. This is great news for smaller organizations because this feature was previously only available to very large companies. Pages for each individual location are visible from the Locations tab on your main page. Admins of the main Page can add, edit, or delete Pages for their new locations. Because you are able to provide consistent information across multiple locations, when someone visits your main Facebook Page they will be able to see that you have other locations and engage with the agency as a whole or a specific location near them. According to Facebook, the key features for having locations are: • Helps people find your business on Facebook. • Creates authentic Pages for all of your store locations. • Allows you to manage all of your store locations on Facebook. To get started with adding multiple locations to your Facebook account, download this step-by-step PDF guide from Facebook and follow the instructions.

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Small Business Administration Resources The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist, and protect the interests of small business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of our nation. The SBA helps Americans start, build, and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands, and Guam. Your tax dollars go to pay to create and deliver SBA resources and you and/or your agency should take advantage of these resources by using them yourself and letting your small business clients know about them. SBA's programs include financial and federal contract procurement assistance, management assistance, and specialized outreach to women, minorities, and armed forces veterans. SBA also provides loans to victims of natural disasters and specialized advice and assistance in international trade. Some of the online video training programs include: • Selling Your Business • Buying a Business • Financing Options for Small Business • Customer Service • Cybersecurity for Small Business • Business Technology Simplified • Disaster Recovery: A Guide to SBA’s Disaster Assistance Program • Crime Prevention: A Guide for Small Businesses • Introduction to Crowdfunding for Entrepreneurs • How to Write a Business Plan • Introduction to Accounting In addition to online resources, the SBA has many regional and district offices, as well as resource partners that counsel, mentor, and train small business owners and entrepreneurs. I also recommend you sign up for the SBA email newsletters so you will know when new resources become available. Making your clients and prospects aware of these resources will help you stand out as someone who can help a small business grow and prosper. And, of course, the more your client business grows, the more their insurance needs grow with them.

A Cultural Shift to Service By, Al Diamond Most companies claim to be service oriented. Everyone "says" that their people are their greatest resource. Everyone "claims" that their customers are king. But how often do we, as consumers, realize that the service and quality initiatives that are publicized by a company are only lip service... another marketing tool to make customers believe that they're special? So, how to we make service more than lip service? Read on... Every year, the insurance products that we sell and the insurance products that are sold by our competitors become more equivalent. They are nearly the same in price and nearly the same in product scope. For a generation, we have trained our customers well to consider price the greatest differentiation in insurance products. But if price is all we have to sell, our next sale should be that of our insurance agency before its asset value disappears completely. If we look outside of our industry, we find others in similar situations. What's the difference between one auto dealer and another? They may sell exactly the same product line, in the same marketing area, from the same manufacturer, but some go out of business while others thrive. Why do the national payroll processing companies do well against local competitors in some areas and poorly in others? The answer is both easy and complex. It's easy because it's so apparent. It is the people and the culture of the company that determines its success. However, this answer is difficult because a change of culture is much more difficult than any other change in a business. The cultural shift to a service and quality culture requires inherent changes in the way we do business. These changes can only be accomplished through the dedication, acceptance, and pro-active implementation of the owners of the business. That's where the breakdown normally occurs. It's been very easy for agency owners to say that service is our point of differentiation. What they mean is that service is our point of differentiation...as long as I don't have to change to do it. The greatest point of cultural change to differentiate your agency from that of all of your competitors is to change from a vertically managed organization to a horizontally managed organization. In its extreme fashion, this would mean that every person who touched the customer would have the authority to make any decisions affecting that customer (using their best judgment) without having to go to management for approval. Of course any organization would be foolish

to implement this type of change without having high quality service employees. Do you remember that other wellused clichĂŠ, "Our employees are our most important asset?" In horizontal organizations with a service culture, this clichĂŠ is actually the truth. Building this type of organization can only be done over time. First, the owners must stop referring to and using the service staff as "support staff." Support staff typically respond to and support the activities of owners and producers. Service staff respond to and support the needs of customers. Producers (and owners) often have strong egos and feel that they control the customers. In reality, customers are only "controlled" when they feel that their needs could not be met as efficiently anywhere else but in your agency. This has more to do with how they're treated on a day to day basis than it does with how they're marketed for renewals. In order to establish a horizontal, customer-oriented culture, you must first delegate both authority and responsibility to the service staff. Standard operating procedures (that which we can do ninety percent of the time to satisfy our customers under normal circumstances) are easy. It's the nonstandard procedures that can be quickly and efficiently decided by direct service staff, or that must be referred to management for handling, that truly differentiates insurance agencies. If you already have trusted, confident employees, you must assure them that making decisions with respect to customer problems will not endanger their job security. Most times those decisions will be the same as yours. However, sometimes they will not. Just as you and I will make mistakes on occasion, so will your service representatives. However, if those mistakes were made in the attempt to properly service customers, you should correct them, explain how the service person should have handled the situation, and let that service person go about their business. Remember, providing authority and responsibility to service representatives does not abrogate your right and requirement to manage the process. We are not advocating anarchy. What we're suggesting is that, if you do not have properly trained employees, you must train them or replace them. If you do have confident employees, you can imbue your company with a true service and quality culture if you allow them to perform the jobs for which they've been hired and serve the customers properly and efficiently without further intervention from management.

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-Corp's and Independent Agencies

By, Chris Burand

Most agencies today are probably S-corporations or similarly for this article's purpose, an LLC. Accountants have been urging and cajoling their clients to either form their agency as an S-corp from the beginning or convert to an S-corporation. But accountants are often short-sighted, they rarely know this industry, and therefore they rarely ask the right questions. Short-sighted advice The average agency owner is approximately 59 years old. If an agency converts from a C-corporation to an S-corporation, they likely have to wait ten years to gain the full tax benefits of an S-corporation sale. So what is the benefit of converting if the owner is going to sell prior to 69? I am not saying a benefit does not exist, but if it does, exactly what is it? Have the CPA give you a real number that fits your real situation. Not knowing the industry Approximately 99% of the accountants I have met or whose works I have reviewed do not know how agency trust accounts work. For that matter, many agency owners do not either so to summarize, agencies in ALL 50 states must remain in trust 365 days a year. This means each agency must have a trust ratio greater than 1.0 at all times (some states have variations on this so check with the appropriate state). To maintain a trust ratio of 1.0 or greater, the agencyâ&#x20AC;&#x2122;s balance sheet must have: (Cash + premiums receivable) / (premiums payable + binder bills) > 1.0. This means that at year-end, the agency's owners likely cannot legally distribute money or take bonuses or even take paychecks if it results in a trust ratio of less than 1.0. Even if you must pay taxes on these monies, and therefore feel the money is yours, it is not your money to distribute if the trust ratio is less than 1.0. If it is less than 1.0, the agency has effectively spent money that is not its to spend. To that point, accountants that recommend owners take distributions are unknowingly recommending their clients break the law.

A C-corporation does not have this same issue because money can be left in the company, often at a low tax rate. The agency pays the tax, not the owners. In theory an S-corp may be more tax efficient, but only if laws are not broken to achieve such efficiency. When agency owners have to pay taxes on income they do not actually receive, true financial hardship can occur. That hardship outweighs any tax advantages. This is the S-corporation tax trap that is very painfully real resulting in far worse difficulties than in a C-corporation. Not asking the right questions First, when talking agency owners into converting to an S-corporation with a goal of reducing taxes upon the agency's sale, the question that needs to be asked is, "Who is the likely buyer?" Almost all external sales are asset sales where an S-corporation often has more tax advantages. However, most internal sales, especially family sales, are stock sales where the S-corporation has limited, if any, advantage. In 20+ years, I have only seen one agency ever have to pay double taxes on their income as a C corporation. That was a highly unusual situation based on extraordinary success. Otherwise, with proper planning, double taxation on income should never be an issue. Second, accountants do not ask when the owner is likely to retire. I have seen too many situations when agency owners convert to an S-corp though they have plans to retire in less than five years. All the accountant had to do was ask one simple question. Conclusion I am not condemning S-corporations. They have advantages. My point though is that S-corporations also have significant disadvantages. Agency owners will make much better decisions if they know the right questions to ask. Agency owners will make much better decisions if they educate their accountants first. Agency owners will make better decisions if they know to change accountants if their accountant only gives them the benefits of an S-corporation, especially if they do not ask the appropriate questions. Without asking the appropriate questions, the accountants are just assuming and everyone knows what making assumptions makes. NOTE: None of the materials in this article should be construed as offering tax or legal advice, and the specific advice of qualified accounting/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.

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Agency Employee Moonlighting Virtual University’s Ask an Expert

ulty

VU Fac

Citing tough economic times, an agency producer has ventured into a multi-level marketing operation and has sold energy conservation devices to several existing agency customers. The agency owner is concerned on many levels, not the least being the agency's potential liability for one of these defective products. How should this situation be handled?

"I have a commercial producer who has been struggling with the overall insurance market conditions and our state's depressed economy. He came to me yesterday and explained that he has had to get another job which he started two weeks ago. The agency's employment manual reads: 'It is acceptable to work two jobs as long as there is no conflict of interest and the additional hours do not affect your productivity or performance.'" "The second job that he has is as a gas and electric reseller. He has already sold this product to one off his commercial customers saving them approximately 21%. He was feeling wrong about doing this on agency time so he came to me and confessed, asked me to forgive him, and assured me he would no longer be doing this until 'after 5pm and on weekends.' "He wants to approach all his insurance clients with this savings opportunity. The two items that concern me are: if this product underperforms it’s possible to jeopardize the insurance account and if he put more effort into producing isn’t he more likely to get farther ahead? "On the other hand, if the other job provides him with some residuals and a better lifestyle, I don’t want to deny him that opportunity. Many people and agency principals have hobbies that turn into second jobs, etc.. What kind of advice and direction can you give me?" Acknowledging that we are not labor law experts and certainly are not providing any kind of express or implied employment practices advice, the VU faculty below have expressed some opinions on this. Their feedback is followed by a subsequent question and additional responses. Faculty response You need to discuss this with your personnel attorney. If you don't have one, get one--it's the best money you will ever spend. You need to clarify your position on this issue with the help of your attorney. Then you need to communicate your findings to this employee. Then you need to revise your manual. Faculty response This is a tough one. Certainly, working on the outside job "inside" of your agency hours is unacceptable. Even if there are disclaimers, the connection to these clients is through your operation and problems may well inure to you. Just because sales are often touted as "savings opportunities" doesn't mean that they are such! It is good that your manual talks about conflicts of interest, and I guess you have to determine what that means. I would be much more comfortable if sales were being sought through some population of prospects not taken from your client base.

Faculty response The best advice I can give is for any manager to only make and enforce as many rules as are absolutely necessary. It will be the manager’s call as to whether there is a conflict of interest when a producer sells non-agency products. Faculty response I feel for the guy and admire his approaching you the way you describe. You mention that if it underperforms...what if it works great? It could enhance the image. I think a clear separation between the insurance and the second gig is needed, but the key will be in his communication with customers. If he can pull it off, I say go for it. Faculty response Many people are in need of a second job in this economy. I do have a problem, however, of him using the agency clients as the source of prospects for his new job. I vote no as you never know what the residual effect may be down the road.

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. www.iianm.org

Were most Obamacare enrollees uninsured? Kaiser answers by Caitlin Bronson | Source: Insurance Business America While producers celebrated their hard work as news of the sheer volume of Obamacare enrollees filtered in, many were curious to know more pressing questions: Were these new enrollees healthy? Had they paid their first month’s premium? And, perhaps most importantly in measuring the success of the new law, had they previously been insured or were they new to the system? Kaiser Family Foundation attempted to answer the question with a new survey. The results? According to Kaiser’s research, four in 10 people enrolling in health plans through the exchanges already had insurance. However, a full six in 10 were previously uninsured, and most had been so for the past two years or more. In fact, 45% of respondents said they had been without coverage for at least five years before signing up for a new Obamacare plan. Another 46% said they were getting help from the government to pay their premiums - a figure significantly less than the 85% of people the Obama administration said had been found eligible for subsidies.

However, not all was well with new enrollees. Four in 10 respondents told Kaiser they found it difficult to afford their share of the premiums, and six in 10 said they were worried their insurers would raise premiums to the point that they may not be able to afford insurance in the future. Most new enrollees are “somewhat sicker than those who were previously getting coverage in the individual market,” noted Liz Hamel, director of survey research at Kaiser. Additionally, despite the large number who worked with a producer to select and purchase coverage, many misconceptions about health insurance abounded among survey respondents. Nearly one in five people who bought insurance said they did not know the amount of their monthly premiums, and another four in 10 didn’t know the amount of their annual deductibles. Until this survey, neither the government nor insurers had a good idea of how many people were previously insured, a New York Times report noted. Researchers polled 742 people ages 18 to 64 to draw conclusions about the effects of the new health law. The findings were based on telephone interviews conducted from April 3 to May 11, and the margin of sampling error was plus or minus four percentage points.

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Are insurance agents being paid what theyâ&#x20AC;&#x2122;re worth? by Caitlin Bronson | Source: Insurance Business America Independent insurance agents may value their services above those of fitness studio teachers and loan officers, but they are compensated much less generously on average. At the same time, however, the average agent brings in a higher annual salary than zoologists and therapists. Those are findings from the latest Bureau of Labor Statistics Report, which ranks 820 career paths and the salary of the average worker. According to the BLS data, while insurance agents certainly bring in a decent living, their average $63,610 is somewhat lower than may be expected. Underwriters outrank agents, with $70,100 on average, though agents fare better than claims adjusters ($62,300) and appraisers ($63,100). Itâ&#x20AC;&#x2122;s also more than the average $47,450 agents were earning in 2011. BLS also notes that the spread of agent salary is wide, with the median salary at $48,210 and those in the 90th percentile bringing home an average $117,830.

But those numbers also hide geographic differences. According to the 2013 BLS report, producers in Rhode Island ($88,670), Massachusetts ($79,950) and New York ($75,800) are bringing home the biggest bucks, while those in West Virginia, Wyoming and New Mexico take home the lowest salaries. Producers in Puerto Rico are the least well-paid, earning an average $34,400 annually. The BLS also broke down average wage by metropolitan area. From that view, somewhat ironically, producers in Normal, Illinois make the most ($115,160).

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August 2014 Sunday

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Principles of Agency Management (AAI83A) 8 CE Hours

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Kitty Leslie

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JOB BANK Attention hiring managers, students or insurance professionals. View available job listings and descriptions or post your resume for prospective employers. We will be encouraging universityâ&#x20AC;&#x2122;s to use this resource for job placement and will need agencies and companies to be actively posting job opportunities as they become available. Click here to take advantage of IIANMâ&#x20AC;&#x2122;s Job Bank.

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an d

Odds ends Scientists find perks to drinking coffee Avoid late fees by organizing your bills No one enjoys paying bills, but like death and taxes, they’re a fact of life. If you end up paying late fees because you’ve procrastinated past the due date, you can save yourself some money and turmoil by following this timely advice: • Put bills on your calendar. Pick a monthly or twice-monthly date for handling all paperwork—bills, receipts, statements, etc. Treat it like any other appointment so you don’t forget or put it off. • Get organized. Gather all your supplies before you sit down to work: pens, file folder, checkbook, stamps, envelopes, labels, and a calculator. Set up a portable workstation or clear off the desk so you can get down to work. • Develop a filing system. Sort all your paperwork into five files: banking, billing, payment booklets, receipts, and statements. Buy a box or file folder with slots for each day of the month, and then put each bill in the slot of the date it is due (or a few days before to ensure it gets paid on time). Some things you do (or don't do) might make your house an easy target for a burglar. Check out these "things a burglar won't tell you" to better protect your home and your family.

To live is so startling it leaves little time for anything else. ~Emily Dickinson Many jobs are becoming casualties of technology-based job markets, including mail carriers, meter readers and flight attendants. Take a look at CareerCast's list of the 10 most endangered jobs of 2014. www.iianm.org

Coffee helps lots of people wake up every morning, but that’s not the only role it plays. Scientists have unlocked some interesting health benefits associated with caffeine consumption in these areas: • Memory. Researchers at Johns Hopkins University have determined that 200 mg of caffeine appears to aid memory retention. The dose of 200 mg is apparently the optimum amount, producing better effects than 100 mg, while 300 mg produced no greater improvement. By the way, 300 mg is the amount consumed daily by the average American—between two and four cups. • Liver disease. A study conducted in Singapore found that coffee consumption was linked to a 66 percent lower mortality risk in people suffering from liver cirrhosis and related diseases like nonviral hepatitis. • Suicide. Researchers from the Harvard School of Public Health, reviewing data from three large U.S. studies, found adults drinking two to four cups of coffee a day were 50 percent less at risk of suicide than those who drank no coffee (or consumed decaf). The scientists speculate that caffeine may serve as a mild antidepressant, boosting levels of dopamine and serotonin in the brain.

17 easy ways to burn calories outdoors You don’t have to train like an athlete to stay fit this summer. Just try these outdoor activities to burn calories and keep your body toned without hitting the gym.

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