09lavoz

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Congratulations to the

2014

graduating class!

Anna S. Byers Cara D. Cress C.J. Wiegel Connie L. Sevier Dax Kastrin Diana Hobbs Gabriel A. Portillo Gena Fredrickson

Jakki L. Swicegood Jeffrey V. Harrison Josh Mintz Kyle Beckner Matt Hunton Michael Parisi Rory D. Golden

Come and see them graduate on September 25th at Sandia Resort & Casino during the Big I’s convention dinner.

Proud Sponsor:

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@ www.iianm.org

“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 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

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Independent Insurance Agents of New Mexico

Independent Insurance Agents of NM

iianm’s

th

Anniversary

On the Cover:

Celebrating 80 Years in New Mexico

This month’s iconic New Mexico locale: Taos Pueblo

Taos Pueblo (or Pueblo de Taos) is an ancient pueblo belonging to a Taos (Northern Tiwa) speaking Native American tribe of Pueblo people. It is approximately 1000 years old and lies about 1 mile (1.6 km) north of the modern city of Taos, New Mexico, USA. They are considered to be one of the oldest continuously inhabited communities in the United States.

Features Employment for Agents & Brokers Hits All-Time High

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IIANM’s 80th Annual Convention Registration

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Convention Leadership Breakout Sessions

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Convention Highlights 08 Are Mortgage Payments Business Income “Continuing Expenses”

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Uber & Usage-Based Insurance: The New Face of Personal Auto

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Most Uninsured Natural Disasters of 2013

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Virtual Risk Consultant Helps Make You a Consultant

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Crisis Sparks Success 17 The 7 Most Expensive Moving Violations in Auto Insurance

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Three Keys to Beating the Competition

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Tools That Enhance Claim Info & Efficiency for Independent Agents

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In Every Issue IIANM 2014 Company Partners! 04 Tech Talk 18 September’s Clickable Calendar 26 Odds n Ends 27

Advertiser Index Acuity 13 Burns & Wilcox Back Cover Litchfield Special Risks

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Market Finders, Inc. 16 Molina Healthcare 22 Mountain States Insurance Group

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New Mexico Mutual 02 Towerstone Insurance Services 21 Trustco / HCIT 25

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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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Employment for Agents & Brokers Hits All-Time High Source: News & Views By, Joseph Doherty, Big “I� counsel

Employment for agents and brokers has reached an alltime high, according to the most recent data from the U.S. Bureau of Labor Statistics (BLS).

Great Recession in December 2007 and the recent low of 640,700 jobs in the sector in May 2010, according to a recent presentation from the Insurance Information Institute.

As of June 2014, employment for agents and brokers grew to 686,100—exceeding the prior peak of 684,500 set in July 2007. During the past 12 months, agents and brokers have experienced robust growth of 3.78%, second only to health among insurance industry sectors.

Average weekly earnings for agents and brokers have also continued to increase, up more than 4% in May and nearly 2% in June for a total of $1,166.96, according to BLS statistics. Average weekly earnings for agents and brokers are nearly 40% higher than average earnings for all private sector workers.

The growth is a part of a four-year trend and represents a strong turnaround for agents and brokers from the depths of the Great Recession. Agents and brokers weathered more than 40,000 lost jobs between the beginning of the

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See more at: http://www.iamagazine.com/news/ read/2014/08/12/employment-for-agents-and-brokers-hitsall-time-high#sthash.A13XR00b.dpuf

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LEADERSHIP BREAKOUT

SESSIONS

’re y e Th EE! FR

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

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Are Mortgage Payments Business Income “Continuing Expenses”?

Virtual University’s Ask an Expert

ulty

VU Fac

Here's a recent "Ask an Expert" question: "We have a client that carries business income coverage. The question came up if mortgage payments were part of the continuing expenses of an idle business. I seem to recall that I learned somewhere that only the interest part of the monthly payment was a covered expense, not the principal part. I would appreciate any help that you could provide."

This is an interesting question...what portion, if any, of a mortgage payment is covered by business income forms as a continuing expense? Is it just the interest or the entire mortgage payment, including the principal? As you can see from our expert responses below, the consensus is that the mortgage principal is "probably/kind of" not included as a continuing expense.

Faculty response The principal should not be considered as a continuing expense for business income coverage.

The argument is that the principal portion of the payment is going into the insured’s equity in the property, so that portion of the mortgage isn’t “lost.” I usually just say they don’t cover the principal, since escrow or other payments in addition to interest that make up the total mortgage payment are valid expenses to claim.

Faculty response This issue comes up often, but to my knowledge we still don’t have a definitive answer in our industry. My belief is that most adjusters will pay the interest on the loan as a continuing expense, just as the agent suggests. However, I have heard of adjusters paying nothing. There is a good argument for not paying the principal sum payments, but I would argue that interest is a covered expense. This is one of those issues that it is best to clear up with each of your carriers.

Faculty response All financial obligations are a continuing expense. A mortgage is a financial contract obligating the mortgagee to pay a monthly amount to the mortgagor. The whole monthly amount is due or the property can be foreclosed upon and lost. This is a normal business expense and since it is paid out of income, it should be part of the business income calculation. I have never seen an adjuster question this expense.

All obligatory notes payable are normal business expenses, even loan repayments to officers and employees. Their position is like saying they won’t pay all payroll because some of it is going into a retirement account.

On the other hand, if the business takes out a loan to pay normal operating expenses while waiting for their insurance payments, then only the interest expense is part of the BI calculation. Building interest is not an issue because rents on untenantable premises or lease payments on damaged equipment must still be paid for several months under the contract wording.

Faculty response The definition of Business Income is “Net Income plus continuing expenses.” In an accounting sense, a mortgage principal payment is not an “expense,” it is a reduction in a liability. The accounting transaction (simplified) of a mortgage payment is: Debit Debit Credit

Mortgage Loan Payable (Liability) for Principal Interest Expense (Interest) Cash

As such, the “continuing expense” of the business is the interest payment. Now comes the tricky part of the answer.

If it is not a continuing expense, is it covered? Well yes, no, or maybe.

The answer cannot be provided for all risks as a constant.

Let’s go back to our accounting transaction. If the mortgage principal was not paid from an expense, where was it paid from? Back to Accounting 101...what is the definition of “Net Income”? Net income equals gross income less cost of goods sold less operating expenses. We can determine that the mortgage payment is not a “cost of goods sold,” which is covered by direct property insurance by the way; and it is not an expense per above, so it must be part of net income. Maybe.

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

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Multi-Line-Brokerage-Umbrella

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Classes of Business:

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Li tchfield Special Risks, Inc. was founded in 1980 and since tha t time, our top priorities have been providing superior customer service and representing only the finest insurance companies. We realize that our most valuab le assets are the people that we are here to serve, the independent agents, our customers. We have a top notch, professional sales staff that is here to assist you with your Surplus Lines Insu rance needs. We offer great service, competitive quotes and wide selection of markets to suit your agency’s needs.

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Uber and Usage-Based Insurance:

By, Jacquelyn Connelly, IIABA Senior Editor

The New Face of Personal Auto

What’s driving rate upticks for private passenger auto?

And can independent agents expect it to last? In light of advancements in vehicle engineering and a variety of new automotive behavior trends, maybe not.

Recent rate increases for private passenger auto have remained “in the low single-digit range” for many carriers, according to Ray Crisci, senior vice president and product manager for Chubb Auto & Excess Liability. “It seems like carriers are getting closer to rate adequacy now,” Crisci explains. “So we’re seeing the frequency of changes decline, and the percentage increases tend to be still pretty small, maybe in the 1-3% range.”

Crisci attributes the trend to an increase in severity for collision losses. A few factors are responsible: collision avoidance technologies like autonomous braking and adaptive cruise control; higher demand for green-friendly vehicle construction, using lighter-weight materials like aluminum and plastic composites; and advanced visibility features like LED daytime running lights. All have “made accidents more expensive to repair,” Crisci says.

“There have been some modest benefits in terms of reduced accident frequency, and I would expect there would be an increasing benefit to accident frequency over time as more of the fleet becomes equipped with these kinds of technologies. But these specialized requirements drive up the cost of repairs.”

Tech sophistication isn’t the only trend that will transform private passenger auto insurance in upcoming years—social behavior, particularly among young people, will do the same. Hot-button issues include usage-based auto insurance, transportation network companies and peer car-sharing services.

Usage-based auto insurance—the brainchild of Progressive that charges auto rates based on how customers drive rather than traditional measures like gender, marital status and age—is “in demand,” says Dave Pratt, general manager of usage-based insurance at Progressive. How the Snapshot program works: Progressive mails a device to the customer that plugs into a diagnostic port in the car and includes cell phone technology, recording information about each driving trip and sending the information back to a Progressive server at the end of the trip. “The customer doesn’t have to do anything,” Pratt explains. “All they have to do is plug the thing in the car and then forget it.”

What does the device track? Pratt says driving frequency, time and how often the customer hits the brakes hard— “we’ve found that’s a really good predictor for people that are likely to have an accident,” he says. After 30 days, the customer receives an initial discount for good driving, and at the end of a six-month policy term, Progressive applies the www.iianm.org

final discount to the policy and requests the customer send the device back. Although a few specific makes and models might not work well with the Snapshot program, most vehicles made in 1996 or later are a match.

“I think you’ll see dramatic growth in this area,” Pratt says, noting that State Farm has already started advertising its own version of Snapshot. “It’s just so much fairer. If you’re a young guy paying a lot for insurance, you can distinguish yourself from all the other young guys by just showing you’re a good driver.”

But other personal auto trends might not be so positive.

While transportation network companies like Uber—which essentially allow any person with a car to become a taxi— have been incredibly popular thanks to their low fees, the resulting coverage gaps are troubling, Crisci says. “What they originally tried to do was let personal insurance pick up the coverage for it, but personal insurance is not really designed for that—this is really more of a commercial exposure,” he explains. “So a lot of states are passing laws saying Uber and these types of transportation network companies have to provide primary coverage and they have to provide at least $1 million worth of coverage.”

While that might seem like plenty, it might not be if “you’re carrying several people in your car and they get very seriously hurt,” Crisci says. “$1 million may not be nearly enough to compensate them for their injuries, in which case if your personal policy doesn’t cover it—which most don’t—you could personally be on the hook for thousands or millions of dollars.”

Peer-to-peer car-sharing services like RelayRides, in which drivers rent their own cars out to strangers, present similar concerns. “You’re potentially exposing yourself to serious liability,” Crisci says. “The car-sharing company will provide some primary liability coverage typically, but once that’s exhausted, you could again end up being on the hook for millions of dollars if the person who rented your car has a serious accident.”

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Most uninsured natural disasters of 2013 Source: IBA By, Caitlin Bronson

The number of natural disasters in the United States has quintupled in the last 30 years, and while rates of insured losses have increased, there is still a lot of work to be done.

A recent report from global reinsurer Munich Re and the Insurance Information Institute reveals that when it comes to some natural disasters, even an increase in catastrophic incidents can’t persuade a large portion of people to purchase the appropriate policies.

Losses from natural disasters were down in 2013, the Munich and III report shows, but overall losses still topped $21,800mn. While $12,794mn of that was insured, some natural disasters caught Americans completely unprepared.

Flood, wildfire, thunderstorms and winter storms all topped rates of more than 30% of losses uninsured. Flood led the way, with 87% of 2013 losses uncovered by some sort of policy. Much further down the line, 38% of wildfire-related losses were uninsured, along with 37% of thunderstorm losses and 35% of winter storm losses.

flood-related losses go uninsured is because flood insurance doesn’t come cheap—particularly in view of impending rate increases related to the 2012 Biggert-Waters Act. “Flooding is our most common natural disaster that isn’t covered under a standard policy, but unfortunately, most people don’t carry insurance,” said Walker, whose native Colorado boasts just 22,000 flood insurance policyholders despite recent rainstorms. “Flooding takes many people by surprise, and most people just weigh the risk and decide to run with it.”

However, home and business owners who choose to ignore the lessons of events like the Colorado floods and Hurricane Sandy do so at their own peril. The III notes that 25% of businesses that close their doors after natural disasters never reopen them, and Walker said federal resources like FEMA won’t always be there to help.

“How do you recover from something when you don’t have insurance?” she said. “People assume that these largescale disasters will always be followed by a federal emergency declaration that will help them out. That isn’t always the case.”

Producers need to ensure that their clients recognize the importance of flood insurance, even if they feel the odds are in their favor.

“The big message here is, yes… we do get flash floods,” Walker said. “It’s our most common natural disaster, and we really urge agents to offer flood insurance to everyone and everyone should consider purchasing it, weighing their risk.”

According to Carole Walker, director of the Rocky Mountain Insurance Information Association, the reason so many

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Flood insurance also impacts losses from thunderstorms and winter storms, the III noted.

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For All That Matters

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facebook.com/acuitywow

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Virtual Risk Consultant Helps Make You a Consultant Explore wealth of materials available by category.

Use the Virtual Risk Consultant (VRC) to help present yourself to clients as a risk manager, distinguishing you from all the other agents who are just focused on selling price. This approach can even apply to run of the mill BOP risks.

Take for instance a typical prospect that would be eligible for the Travelers Select Account Store Pac product. While hundreds of classes are eligible, we'll use a flower shop for this illustration.

When logging into the VRC you’ll see the heading "risk exposure assessment tools" and then click on "commercial lines risk exposure evaluation system." There is a large menu of lines of business to choose from. Pick retail stores and the VRC gives a general overview of the types of exposures most retail stores typically face.

Retail stores are susceptible to premises liability claims because of customer traffic but large department and specialty stores are more susceptible than most. All retail stores have significant property exposures. The on-hand stock represents a considerable investment but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully.

When the insured occupies a non-owned building, insurance coverage must be arranged for the insured's interest in extensive improvements and betterments made to the premises. Crime insurance, in the form of employee theft and money and securities coverage, is also very important.

Then you are given a choice of selecting a specific type of retail store to learn more about. After clicking on the "Florists" tab you will see four steps needed to show up at a florists' equipped to act as their risk consultant. Those steps are shown below.

must also be completed and used. Here is a closer look.

Step #3: Proposal Assistant –The proposal assistant providesconcise definitions for all coverages included in your customer proposal. The proposal assistant offers a comprehensive list of commercial lines coverages with succinct definitions to enhance customer understanding at the point of sale. It also offers links directly to the appropriate ACORD forms and more in-depth coverage analysis from PF&M. Step #4: Customer Coverage E&O Checklist/File Documentation – Get a printable coverage E&O checklist complete with a client/agent signature block to use with your customer to document coverages recommended and rejected by the customer. Important: Keep signed customer E&O coverage checklists with the client file as documentation should a claim occur. Here is an example.

You might be thinking that a BOP isn't worth getting that technical—but think again. The VRC does almost all of the work for you. It takes only a short time to do your homework with the VRC. And this is just the tip of the iceberg.

Here is how you can learn more about the VRC.

Category: Retail Stores Risk: Florists Step #1: Understanding the Risk – This section of the VRC provides a summary of operations and an explanation of areas of exposures to evaluate for the risk to be insured. Also included are minimum coverages to offer and other types of coverages to consider as well. Here is a closer look.

Step #2: Exposure Identification Survey – You can then build a questionnaire to review with your customer designed to assist in revealing client exposures and uncover potential coverage gaps. The information serves as a guide in developing an insurance program to meet the client's needs. The questionnaire is a supplement to the ACORD forms, not a replacement for them, so the ACORD forms

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Mountain States will get you from Point A to Point B. We understand and value your time and needs. Our objective is to take you on the most direct route to the insurance products and services that best fit the needs of your clients and their businesses.

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

Rio Grande Gorge Bridge Taos, New Mexico

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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. 16

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Sparks

SUCCESS By, Chris Burand

Through two decades of consulting with agencies, I have consistently witnessed crises precipitating significant agency success. Whether the crisis was a natural catastrophe like a flood resulting in many E&O claims or near bank-

less actual effort. But the will was missing. It was easier

ruptcy due to poor management or a key producer leaving

to keep doing what the agency was doing than spend the

with a large proportion of an agency’s income, the crises, to

emotional currency to make the improvements the prin-

use a common phrase, put the fear of God into the agen-

cipals knew needed to be made. A famous quote some

cy’s principals. They then made the improvements virtually

attribute to Bobby Knight makes the same point from anoth-

overnight.

er perspective, “Everyone has the will to win. Few have the

Those improvements varied but good examples include

will to prepare to win.”

managing the agency’s financials correctly, not treating the

Having the will to prepare to win requires considerable

agency as a personal bank account, and running the agen-

emotional currency. Not everyone has enough currency

cy as a business rather than running it as an agency. Other

and even among those that do, many do not want to spend

examples include firing deadweight, causing people to

it. They only spend it when a crisis forces them to do so,

actually follow procedures, and mandating proper producer

even though the crisis carries at least a 20% premium on

contracts.

the emotional price.

When all the improvements were completed, the conclu-

So how can you force yourself or your partners into making

sions have been nearly uniform. The principals have all

the improvements you know in your heart and mind need

said something to the effect of, “It was hard work but it was

to be made but you cannot bring yourself or your partners

good work and I’m only sorry we did not do it earlier. I am

to spend the necessary currency? In the wonderful book,

sorry a crisis was required to force me to do what I should

“Leading Change” by John Kotter, he recommends man-

have done on my own. It would have been much easier to

ufacturing a crisis. By manufacturing a crisis, you get the

do without the pressure the crisis created. But at least it is

urgency created but on your terms. Some might think cre-

done and I’m not going to wait for another crisis to take the

ating a crisis is devious but really the situation is a choice

actions I know need to be taken.”

of two evils. One is a manufactured crisis on the agency’s

Literally I have seen agencies which could not grow prior,

terms and one is a real crisis on anything but the agency’s

more than double in size fairly quickly. I have seen E&O

terms. Which do you prefer, real but dangerously painful or

claims and E&O exposures drop to almost nothing. I have

precautionary proactive?

seen agency morale skyrocket and I have seen profits

So what are you going to do if you need to make

double. All these results were feasible before the crisis with

improvements? Wait... or move now?

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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!)

How to View Hidden Data in Pictures Digital cameras are everywhere. It has become easier than ever to take pictures of just about everything. Most people don’t realize, however, that every time you take a picture with virtually any type of digital camera, information about the camera and the picture are embedded within the saved image file.

Information such as shutter speed, exposure compensation, F-number, if a flash was used, ISO number, date and time the image was taken, white balance, and resolution are some of the data that is stored. Some images also store GPS information so you can see where the image was taken.

mation. You may not want someone to know the specific location where a picture was taken. Many digital cameras that have GPS capabilities automatically include this information in pictures unless you have specifically turned that functionality off. This site has a 5 MB image size limit.

EXIFdata: The site is similar to the other two but has a 10 MB image size limit.

You can view the image’s EXIF (exchangeable image file) information with a variety of online data viewers. The EXIF data contained in images can reveal some hidden but valuable information about a photograph. Several webbased EXIF data viewers have been created to let anyone find the information about any digital image at any time.

I have known for a while that additional information is available in every digital picture. I did not understand the implications until I was listening to a presentation on insurance claims fraud. Adjusters often use services like this to get a better understanding of where a picture was taken, and if the pictures have been altered in any way.

Three websites you can use to view EXIF data embedded in digital photographs are: Jeffrey’s EXIF Viewer: This site allows you to check an image on the Internet or a photograph saved on your hard drive. This viewer works with many image types, such as JPEG, PNG, CRW, PSD, SVG, etc. Be aware that this site is very plain and doesn’t have any bells and whistles.

VerEXIF: This site allows you to view the details under which the images were taken. It also allows you to remove such data online without installing any program. This could be helpful if GPS data has been included in the EXIF infor-

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There are several ways your agency could use this information: • Verify the actual date and time a picture was taken. This will help you make sure the picture was recently taken and is not an old picture.

• If GPS information is embedded in the picture, you can verify the location of the picture. In a homeowner situation this could help you match the picture location to the property location.

• If you suspect claims fraud, the picture information submitted with the claim may be able to help you determine if you should alert the claims adjuster.

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Market transaction results are easily viewable.

Finding a Market for Hard to Place Accounts When I was actively selling insurance I always wanted to work on the difficult and hard to place accounts. My largest account was an automobile remanufacturer. One of the products they remanufactured was front-wheel drive trains so the product liability was always a challenge. But it certainly kept things interesting!

The hardest part was finding an insurance company that would be interested in underwriting and pricing the account.

At that time, it entailed a lot of phone calls to a lot of wholesale brokers. Fast forward 15 years and the process of finding just the right market has gotten significantly easier.

I see an increasing number of posts on LinkedIn groups and other industry forums from agents asking for help in identifying a market for hard to place accounts. While this is better than the calls I used to do, it still is time-consuming.

BindThat.com is an example of a new web-based platform that enables all players in the commercial insurance industry to discover, share, connect, and identify trustworthy wholesale brokers, resources, and insurance solutions for a variety of accounts that might not fit standard markets.

Agents and Brokers can use the site to: • Research and identify new markets via a real-time database of recently bound deals, saving them time every day.

• Access an up-to-date insurance application library.

• Reduce the sales cycles by becoming more efficient every day.

This service is based on the idea that actual bound deals are the best indicator of an underwriter and wholesaler’s interest in a particular type and line of business. The site maintains a real-time database of bound deals that grows daily as underwriters and wholesalers post new information regarding their recent transactions. Agents and brokers can then search this database to find specific markets, save time, and help increase sales.

When an underwriter posts information about a particular transaction, the agent on the account can go in and verify the information. Privacy is maintained — for both the agency and the client — because no client-specific information is released on the platform. Other agents searching the database can view this verified information so they know it’s an actual transaction that has been completed.

There is no cost for an individual at an agency to sign up for an account.

Two of the founding partners have over 20 years of underwriting and brokerage experience along with the technical expertise of developing comprehensive online data management systems. The third founding partner has over 15 years of marketing, branding, and website development experience having run a usability consulting firm that services over 30 companies in the Fortune 500.

By creating an easy to use, cloud-based software as a service interface for all in the industry, BindThat.com helps empower their members, provides much needed transparency, and energizes commercial insurance relationships around the country.

Wholesalers and Underwriters can use the site to: • Efficiently promote new classes of business and coverage.

• Connect with a new audience of agents and brokers.

• Reduce operation costs via pinpoint marketing.

Recorded Webinar Library The ACT portion of our national website offers free recorded webinars that have many useful tips to assist agents. Topics include Best Practices, Social Media and Security & Privacy. Check them out!

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The 7 most expensive moving violations in auto insurance By, Caitlin Bronson Source: IBA Most insurance agents know that a client’s speeding ticket costs them not only in their bank account, but also in their insurance premium. What they may not appreciate is just how much simple moving violations may affect rates—and which violations ding drivers the most.

In a recent study commissioned by insuranceQuotes.com, Quadrant Information Systems calculated the impact of 17 common moving violations on insurance premiums in all 50 states and the District of Columbia. All told, the study concluded that car insurance premiums can rise by as much as 93% after a single moving violation.

The most expensive violations nationwide include: 1. DUI—93% increase in insurance premium 2. Reckless driving—82% increase 3. Speeding—30% increase for 31+ mph over the limit 28% increase for 16-30mph over the limit 21% increase for 1-15mph over the limit 4. Careless driving—27% increase 5. Failure to stop—19% increase 6. Failure to yield to pedestrians—19% increase 7. Driving in a carpool lane—18% increase Laura Adams, senior analyst with insuranceQuotes.com, told Insurance Business that while these rates reflect a nationwide average, there were some states that consistently ranked higher than others in premium increases following a moving violation.

Kentucky, for example, saw the highest increases in the

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nation for infractions like driving in a carpool lane, failure to stop, failure to yield and failure to yield to a pedestrian. It also took the number two spot for following too closely and not signaling.

California was also the harshest on speeding and driving the wrong way, while New Jersey “was either in the number one or two spot” for several of the categories, according to Adams.

On the other end of the spectrum, the District of Columbia seemed least harsh on moving violations, which Adams noted as “interesting, because they typically have pretty high rates.”

In terms of practical application, insuranceQuotes.com suggested that the results not only reinforce the importance of careful driving, but of reassessing a client’s choice of carrier following a moving violation—particularly if the incident is not a driver’s first.

“The carriers themselves seem to be very different in how they view moving violations,” said Adams. “Many carriers will forgive that first penalty and won’t immediately increase your rates, but if you get a second violation, that’s another story. They can penalize you pretty harshly. [Getting a moving violation] is typically a good time to switch carriers.”

Agents can also help guard against rate increases by bundling several policies from one carrier, Adams noted.

Carriers who have clients purchasing auto, homeowners and umbrella coverage from them, for example, “simply tend to be nicer,” she said.

“When they have a customer who’s got multiple policies with them, they know over the long run they’re getting more in premium and they’re likely to forgive a minor violation,” Adams noted. www.iianm.org

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

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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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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

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Three Keys to Beating the Competition By, John Chapin

1) Connect and build super-strong relationships.

Assuming you have at least an average product with a reasonable price, your ability to build trust and rapport and develop a relationship with the prospect is by far the most important element when competing. All products and services have advantages and disadvantages, strengths and weaknesses. If people like you and trust you more than your competitors, then even if your product is higher priced and not as good, they will still buy from you. Again, price and value differences cannot be dramatic. Provided that your product is in the general ballpark and you have a great relationship, you’ll win every time.

In order for you to hang onto and keep selling to the account after the initial sale, the connection and relationship must remain strong. You do this by communicating often, going above and beyond, and never taking the customer for granted or letting service slip. Send cards, gifts, and other items and let the customer know you care and appreciate them. Get and share personal information and act on that information. Your goal is to develop and personalize each customer relationship to the point where each customer is also a close friend. Satisfied customers who are also close friends, will not leave you. And by the way, there is no new relationship selling, it’s always been about relationships.

2) Have great sales skills.

In addition to allowing you to say and do the right things to make that initial connection and begin building the relationship, great sales skills will also help you make a logical argument for your product.

All people, even the most analytic amongst us, buy emotionally and back up the decision logically. The emotional purchase happened when they bought your product as a residual effect of having bought you in the connection and relationship stage. The reason why you still need a compelling, logical argument is because the prospect’s decision has to stand the test of time and scrutiny from others that they will directly or indirectly justify the decision to. They can justify slight differences in price and quality, they just don’t want to be embarrassed by making a bad decision.

The good news is: once the prospect likes you, they want you to prevail in making your logical case. In other words, now that they like and trust you, you can lead and educate them as to why your product is the best solution and they will follow and listen. Again, as all products have advantages and disadvantages, at this point you are like a lawyer

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making your case as to why your advantages outweigh that of the competition. Your sales skills will seal this logical side of the equation by giving the prospect the ammunition they need to justify the decision to themselves and others.

3) Be committed and determined to outwork the competition.

This aspect needs to be present both before and after the sale. Before the sale it shows up as pleasant persistence, after the sale it shows up as proactivity and responsiveness.

During your initial meeting and subsequent meetings with the prospect, you’ve got to have passion along with an absolute belief and conviction in you, your product and your company. You need to have a dogged determination and you have to be extremely persistent. You have to continue to follow up and be committed to getting them involved with your product.

Before the sale make sure you are doing what you say you will do when you say you will do it and do what you can to go above and beyond and stand out from the competition.

Get the prospect on your contact list and make sure you are reaching out on a regular basis with pertinent items of interest. Look for ways that you can deliver and show value before you even get an order. The reaction you’re after here is, “Gee, my rep doesn’t even do that and I’m a customer.” Your objective is to be better and different than the competition and to do things that they aren’t doing and/ or won’t do.

Both before and after the sale, you must respond as quickly as possible to phone calls, e-mails, and all other customer communications. If they call you with an issue or concern, get on it like a pit bull and get them an answer or resolve the situation as quickly as possible. You also need to be proactive and anticipate problems and situations before they arise and stay ahead of them.

Not only do you have to be willing to go the extra mile, you need to be willing to go a mile or two beyond that. Always make sure you give something extra, bend over backwards, and serve the customer, not only better, but far better than anyone else.

John Chapin is a sales and motivational speaker and trainer. For his free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For permission to reprint, e-mail: johnchapin@completeselling.com.

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This article discusses technology tools that have been introduced to permit independent agents and brokers to serve their clients more promptly and effectively in claims situations. Claims download, real-time claim inquiry, real-time filing of First Notice of Loss (FNOL), real-time requests for loss runs, and Activity Notes all have great promise to make agency workflows more efficient.

Most of these new capabilities have already been introduced by some carriers, but we need to see much broader usage.

The agents will play the critical role in making this happen, but first they need to be convinced that these new technologies will materially improve their workflows. This article seeks to make that case.

Tools that Enhance Claims Information & Efficiency for Independent Agents By, Donna J. LaGoy AIT, ACE Donna LaGoy is a Client Partner of Applied Systems, Inc. and is Chair of the ACORD Claims Download Working Group.

Claims Download One of the most exciting new opportunities is for the automatic downloading of new claims and claims status information into agency management systems. An ACORD standard has been put in place for claims download, and several vendors and carriers have begun to implement the new capability.

However, an agent might ask: “How exactly will claims download benefit me? I already have claim inquiry available via carrier websites or through my agency management system using real-time inquiry.” Or, the agent might say: “Why do I need download, when I already receive an e-mail or Activity Note into my agency management system that tells me there is a claim?”

Real-time claim inquiry has been a great enhancement for agents and will continue to be so for up-to-the-minute information. But, it is only beneficial if the agent knows the claim has taken place! Further, real-time claim inquiry does not populate the agency management system’s database, and so the agent must enter the claims information into his or her system.

E-mails or Activity Notes[1] are also great “incremental” steps, but again, the agent has to enter the claim into the agency management system and update the information as the status of the claim changes.

The goal is for all of the latest features of technology to work hand-inhand to make the claims process as streamlined as possible.

Claims Download Critical in Disaster Situations The horrific storm seasons we have had in recent years provide an instructive example as to how claims download can help agencies. If an agent has had no power and has had clients reporting claims directly to the carrier, how does he or she know what claims have been filed? Once the agency finds out about the claims, who is going to enter the hundreds or thousands of claims into its agency management system? Who is going to update the status on each of the claims, as it is paid or closed? The agency’s employees are already working overtime under terrific stress, and they want the needed claims information to be handy in their system. They want to spend their limited time assisting their clients regarding the claim and demonstrating the value added that their agency provides to its clients. The last thing these employees want to spend hours upon hours doing is entering all of this claims information into their system.

Claims download allows for all of the claims to be: • automatically entered into the agency management system • updated as the status is changed, and • closed when the carrier closes it.

Claims download would save the typical agency hundreds of hours per year, as well as enable agency employees to provide better service to their clients should a claim occur.

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Recommended Claims Workflow The question, then, is how do claims download, real-time claims inquiries and e-mail or Activity Notes work most efficiently together? Consider the following workflow: 1) The claim is reported directly to the carrier by the client (FNOL reported by the agent is a different workflow and is addressed below.).

2) An e-mail message or Activity Note is sent to the agency instantly notifying it of the loss.

3) Overnight, the claims are processed via a batch process and downloaded into the agency management system.

4) A log is waiting for the agent in the morning, when he or she comes in to review what was attached (similar to policy download) and what went to suspense to be attached.

5) The claim is now in the agency management system and is ready to be serviced.

6) Claim inquiry can be used at this point to look at anything that has transpired during the current day, if necessary. An example would be that the adjuster had not been assigned when the claim was downloaded, and you need to get that information today.

7) Any updates to the claim will download each night (or at given intervals during the day, if the carrier and vendor provide this feature). Again, this download information will populate a log for review.

introduced by particular carriers. High agency usage will be the dominant factor in convincing additional carriers to leave the sidelines and join the game by implementing these new capabilities.

The Future As exciting as these new technologies are, the future will require the industry to take yet another step, and that is to permit the agency’s clients to access their claims information directly from the agency’s website. Claims download and real-time claims inquiry will provide the foundation for this enhanced consumer capability. Consider once again what this would mean to an agency devastated by a disaster, struggling to make or receive phone calls of any kind.

What a godsend it would be if anxious clients could go to the agency’s website and learn that their claim has been received and is in processing, and receive the assigned adjuster’s contact information. Organizations like ACT will continue to work with carriers and vendors to make this future a reality.

Most important today, agents, carriers, and vendors should continue to collaborate to harness the exciting technologies that are available to us now to significantly improve the overall customer experience and to make our distribution system more efficient and responsive.

[1] Note that Activity Notes today are typically downloaded after the close of the business day. In the future, it is hoped that carriers will deliver time sensitive Activity Notes multiple times a day to their agents’ IVANS mailboxes and agencies will pick up those messages several times a day as well.

8) The agency is now in the position to run reports from the agency management system to track losses.

First Notice of Loss (FNOL) Claim Reporting Another very important technology for agencies is real-time FNOL claim reporting, where the agent can submit the claim to the carrier and instantly get back the claim number and adjuster for the claim. What a terrific service to be able to provide the client with this information on the spot! Even where the agent is using real-time FNOL, however, claims download still plays an important role, because it allows for the automatic updating of the status of the claim, including payments made, adjuster notes, and the closure of the file.

Real-Time Loss Runs Requesting loss runs through the agency management system and receiving them back in Real Time from the carrier is another significant improvement for agents, providing clients with immediate service and saving considerable time for the agent.

Agents Play Key Role Whether we are talking about claims download or real-time claim inquiry, FNOL, loss runs, or Activity Notes, agents will play the critical role in making these improved workflows a reality within our industry. Agents should advocate for these improvements with their carriers, and then “walk the walk” by implementing them within their agencies when they are

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

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

Trustco, Inc. - HCIT Program Administrator 2063 East 3900 South Ste. 100 Salt Lake City, UT 84124 1-800-644-4334

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

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September 2014 Sunday

Click on a class to register:

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P&C Exam Review

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L&H Exam Review

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IIANM’s 80th Convention

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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 university’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 IIANM’s Job Bank.

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an d

Odds ends 27 Things You Need To Do Before Summer Is Over

“You’re not obligated to win. You’re obligated to keep trying. To do the best you can do everyday.” ~Jason Mraz

Tips on tipping: How much to reward service staff?

New teeth may grow with help from lasers Losing teeth is part of growing up, but it’s more of a problem for adults, since teeth stop naturally growing at some point. But scientists may have discovered a way to regrow teeth—using lasers.

A story from the NBC News website reports that scientists at the National Institute of Dental and Craniofacial Research (part of the U.S. National Institutes of Health) have used a low-powered laser to stimulate dental stem cells to create dentin, the bonelike tissue that forms the large portion of a tooth. Regenerating the tooth’s enamel is more difficult, but building dentin could reduce the necessity of some root canal treatments, which require the removal of diseased or dead nerve tissue and bacteria from inside a tooth. The initial experiments involved rats and mice, but researchers are hopeful that they’ll be able to move on to human clinical trials in the near future.

How To Write Emails That Will Actually Get A Response Here are 10 tips to keep you out of that dreaded “Maybe they didn’t get it???” inbox purgatory.

Click here for tips.

Waiters and other service staff members depend on tips, so how are they doing? A Harris Poll survey of 2,000 adults conducted for Michelin found that the average American claims to tip 18 percent for good service. Getting more specific, 70 percent of Americans say they usually leave a tip of 15-20 percent when service is good, and about one in 10 tip 20 percent or more. Only about 1 percent confess to leaving nothing.

Age is a factor in how much people tip, though: Thirty percent of survey participants age 18-24 admit they frequently tip less than 15 percent even when the service is good, but only 16 percent of adults 35 and older say the same.

From the mouths of kids The next time you’re looking for a way to encourage creative thinking while also lightening your staff’s mood, take a lesson from a first-grade teacher who presented her class with the first half of some well-known proverbs and asked them to finish the sentiments. Here’s what they came up with: • Better to be safe than … to punch a big kid.

• Don’t bite the hand that … needs to be washed.

• A penny saved is … not enough.

• Lie down with dogs and you’ll … smell bad in the morning.

• Strike while the … fly is close.

• When the blind lead the blind … get out of the way.

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If you cannot place all of your clients’ personal insurance needs, they will find someone who can.

When it comes to personal insurance, every part matters.

Because when one piece goes missing, the entire account could come undone. At Burns & Wilcox, we can insure individual portions of their coverage or the whole account.

So you do not have to turn away any business. We have the expertise, resources and experience that can only come from being the leader in wholesale personal insurance. That is why no one has you covered like Burns & Wilcox.

Albuquerque, New Mexico | 505.346.2583 toll free 866.643.8538 | fax 505.822.0092 albuquerque.burnsandwilcox.com Commercial • Personal • Professional • Brokerage • Binding • Risk Management Services

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