10lavoz

More Value for your Customers!

Policyholders now Qualify for Discounted Drug Testing New Mexico Mutual

is pleased to announce a collaboration with two laboratory vendors, TriCore Reference Laboratories & Quest Diagnostics, to provide discounts for our policyholders for drug screening services.

Save 15% or more based on testing volume and the combination of services.

• Utilize pre-employment drug screening as well as post-accident drug testing.

• Include routine employee drug screening as part of a comprehensive work place risk and safety program.

• For more information about discounted drug testing services with TriCore or Quest, please visit our website at NewMexicoMutual.com/Employers/PolicyholderResources.

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

a L

Independent Insurance Agents of NM 1511 University Blvd. NE Albuquerque, NM 87102.

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

Web site www.iianm.org.

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

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

The advertising deadline is the fifteenth day of the month, preceding publication.

Advertising rates are available upon request.

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

IIANM Staff President/CEO Thom Turbett 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

2012-2013 Officers

o VZ

"The Voice" of Independent Agents since 1934

LaVoz cover courtesy of Gary Keenar, Swiss Re

Features

Become an IIANM 2014 Company Partner!

04

IIANM’s 2013 Company Partners

05

Big I Lobbyist Provides Agent Licensing Reform Update

07

Small Businesses Want to Get Personal

09

“Scary Screams & Bad Insurance Dreams”

11

Are Mortgage Payment Business Income “Continuing Expenses”?

13

Most Insureds Have Cyber-Risk Gaps in their Coverage

17

Community Corner

18

Innovative LeadershipNM Class of 2014 Listing

19

Think Preventive Medicine will Save You Money? Think Again...

20

2014 Company of the Year - Safeco Insurance

21

7 Keys to Filling Your Pipline with Tons of Qualified Prospects

22

Introducing IIANM’s 2014 Board of Directors

24

Thank you to our Convention Sponsors (IIANM Partners)

25

In Every Issue Tech Talk

14

October's Clickable Calendar

28

Odds n Ends

29

Advertiser Index

Chair Diana Hobbs

Acuity

Vice-Chair Gabe Portillo

Litchfield Special Risks

08

Secretary/Treasurer Connie Sevier

Market Finders, Inc.

10

Mountain States Insurance Group

National Director Sam Conlee Immediate Past Chair PJ Wolff

Burns & Wilcox

16

Back Cover

12

New Mexico Mutual

02

Risk Placement Services (RPS)

06

Become a 2014 Partner!

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

The Partners Program is a win-win situation for both IIANM and its Partners.

Our Partners appreciate this "one-stop" approach to supporting IIANM and its members. From IIANM's point of view, it saves time and resources formerly spent soliciting for event sponsors.

Benefits to you: • Support the Agency Distribution System: Your backing makes it possible for IIANM to develop affordable, quality programs that enhance the professionalism of New Mexico's independent insurance agents.

• Substantial Savings: The value of the various benefits you receive as an IIANM Partner far exceeds the cost!

• Unique Perks: Many of the perks you receive as an IIANM Partner are not available to other companies - at any cost.

• First Pick: Diamond, Platinum, and Gold Partners are guaranteed first pick of sponsorships and exhibit space at IIANM events.

• No Hassle: We will not solicit money from you again this year!

Six levels of participation are available:

Diamond

Gold

Bronze

Platinum

Silver

Copper

For more information, to view a graph with a breakdown of what each level is entitled to, and for a pledge form, click here.

Contact Consuelo Trujillo at 505-999-5804 or consuelo@iianm.org with any additional questions.

The companies listed below have made a commitment to support the strongest agents' association in New Mexco. In turn, as members, please show your thanks by utilizing their varied products and services!

WE COVER THE WEST WITH ONLY THE BEST!

With multitudes of office locations to choose from, placing a call with us will put you on the fast track to providing the best solution for your clients.

• Underwriting & Brokerage from six locations (Casper, Boise, Salt Lake City, San Francisco, Scottsdale and Seattle) • Accounting and claims handled in Scottsdale • Proud members of AAMGA, NAPSLO, PLUS and various state independent agency associations • Excellence in service • Relationship driven COVERAGES • Excess & Umbrella • Fiduciary & Crime • Garage Liability & Physical Damage • General Liability • Inland Marine • Personal Lines

• Professional Liability, including D&O, E&O and EPLI • Programs • Property • Transportation • And More!

SALT LAKE CITY, UT

SCOTTSDALE, AZ

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800.475.2626

rpsins.com

Big 'I' Lobbyist Provides Agent Licensing Reform Update Video showcases progress of NARAB II in Congress.

In a new video, John Prible, Big “I” vice president for federal government affairs, discusses recent successes in the long effort to achieve meaningful multistate licensing reform for independent agents and brokers.

Prible explains the promising progress in both the Senate and House on the National Association of Registered Agents and Brokers Reform Act of 2013 (NARAB II).

This video is the first in a series of interviews with the Big “I” government affairs staff, which will provide important updates on top agent and broker issues in Congress.

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

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Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

Small Businesses Want to Get Personal

by Jacquelyn Connelly, IA assistant editor

Sin an agent’s efforts to not only com-

mall businesses place significant value

pletely understand their needs, but also provide knowledgeable guidance and risk management solutions, according to the inaugural 2013 J.D. Power U.S. Small Business Commercial Insurance Study released on Tuesday.

Focusing on small business commercial insurance customers with 50 or fewer employees, the study examines commercial satisfaction and shopping behavior in terms of agent interaction, policy offerings, price, billing/payment and claims.

According to Jeremy Bowler, senior director of the insurance practice at J.D. Power, the survey infers the relative importance of each touch point by measuring which are more likely to predict overall satisfaction scores.

The study finds that when it comes to attracting new business, policy offerings are most important to the commercial customer—identifying an important distinction between lines of business, says Bowler.

“When you compare to personal lines coverages, commercial lines insurance customers are far more mindful of what they’re buying,” Bowler says. “It’s more important to them that their policy is tailored to their specific circumstances and risk profile.”

But among the five factors influencing customer satisfaction, interaction received the highest importance weight, with satisfaction at its best when customers engage with their agent in person rather than via email or phone.

Since agents and brokers tend to interact with larger accounts more frequently and personably—larger clients “demand more mindshare” for a variety of reasons, Bowler says—it’s no surprise that customer satisfaction levels were highest among small businesses with 11-50 employees, as opposed to those with four or fewer employees.

“You always want to make sure every customer is fully satisfied with the product you’re selling and the service you’re delivering around that product,” Bowler says. “But the question then becomes, how do you do that profitably?

How do you maintain the proper level of service for even the most basic customer?”

When it comes to smaller accounts that demand less time and attention than their larger counterparts, ensuring high levels of satisfaction presents an inevitable challenge. But

according to Bowler, agents can still serve customers efficiently with less frequent interactions and fewer face-to-face meetings.

Whether it involves great follow-through or a dynamite office manager, making sure the customer receives timely and effective service should be top of mind.

“Who’s covering the bases when you’re not there?” Bowler asks. “Obviously, if the agent is making a visit to my place of work, I’m more likely to say my agent really understands my needs. But one could demonstrate that same depth of understanding without necessarily going to the person’s place of work each and every time.”

To accomplish that, Bowler suggests conducting periodic policy reviews to reach out and verify that nothing has changed in the customer’s underlying risk profile. “Am I making recommendations about ways they could restructure their business or insurance coverages to be more effectively insured? That kind of appointment is something an agent could plan to distribute across the year, so they don’t get hit with a bunch of them at once,” Bowler explains.

In the end, what Bowler calls “proactive outbound communication” as a source of satisfaction returns to the initial value a commercial client places on policy offerings. If an agent takes the time to revisit a customer’s options and explain the pros and cons between their choices, that education will go a long way in keeping satisfaction levels afloat.

“Giving clients a separate understanding of what it is they’re buying has a huge impact on their perception of the consultative nature of their relationship with not only the agent, but also their satisfaction with the product—and, to a lesser extent, the premium,” Bowler says. “It’s not that they want you to be salesy, but when a client feels they have a good understanding of the other products and services you have to offer, they tend to rate that relationship much more highly.”

In Bowler’s opinion, those higher levels of satisfaction correlate directly with a deeper sense of trust—which, once established, can not only make customers more receptive to their agent’s recommendations, but also secure client retention and an ongoing future relationship.

“In those agent relationships that are the strongest, the agent can direct a customer to make a switch three out of four times,” Bowler explains. “When an agent can establish that rapport and create those bonds, it will lead to much higher persistency.”

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

Page 9

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

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Market Finders, Inc. Page 10

5201F Venice Ave NE - P.O. Box 90280 Albuquerque, NM 87199-0280 (800) 530-8711 (505) 822-8711 Fax: (505) 822-1165 Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013 www.marketfindersnm.com

"Scary Screams & Bad Insurance Dreams" This was the title of an advertisement for an Insurance Journal's Insurance Academy advertisement last Halloween for its training programs. It read, "Trick or treat, you decide; Don't look; oh no, you're on the inside.

Insurance makes you scream; It's creepy, it's scary, & sometimes even like a bad dream.

But more terrifying is not knowing what you should; Or not learning what you could!"

Tstrike an emotional bulls-eye in the hearts of conscienhis advertising poetry is powerful. First, the words

tious insurance people. Companies and agencies are selling complex products that are only used when someone suffers a financial or health loss. Many industry veterans and newbies worry, rightly so, whether they adequately understand these products. Over time I have heard so many coverage gurus, people who know as much about coverages as anyone I have ever met, tell me that even though they know far more than most, they are concerned about how much they do not know.

More than just complex products, the buyers are complex and the buyers have complex needs. Some insurance people read a poem like the one above and stay awake all night worrying about what they may have missed. The combination of forms and customer exposures is infinite, and these insurance people do not want to miss anything.

They are scared of not knowing something they should know. These people are most likely to take more classes than anyone else and need them less than anyone else.

On the other hand are the industry people who do not worry about not knowing coverages or exposures. It is not because they know either coverages or exposures adequately. In fact, some do not even attempt to know either.

For example, I do many E&O audits. In these audits, I always ask whether the agency and its producers use coverage checklists. 90% of the time the answer is "No" or "Sometimes." When I ask why they do not use the best tool for reducing E&O exposures and increasing sales, I usually get one of two responses.

One response is that it is better to miss lots of coverages than just one (usually phrased as, "If I use a coverage checklist and miss one item and the insured has a loss involving that one item, I will lose. But if I don't use a checklist at all, the plaintiff's attorney cannot point to a faulty checklist so I will win."). This is such an inane argument, as applied to most independent insurance agents (though not necessarily other distributors of insurance), that it should be asphyxiated. Every time I hear this, I want to run screaming!

The second most common response is even scarier. So often the producer, even ones with decades of experience will say, "I'm [afraid, scared, not confident, etc.] about using a coverage checklist that has coverages I do not know

or understand. So I am not going to use one."

That perspective is, on one hand, admirable because they will not sell a product they cannot explain. It is kind of like a responsible attorney that will not write buy-sell agreements because they know they are not experts in this field.

by Chris Burand

On the other hand, the difference is vital because the attorney tells the client they are not an expert and likely refers the client to an attorney who is. The agent not using the checklist does not usually advise the client that since he does not understand the coverage, he is not going to discuss it or even determine whether the insured needs the coverage.

Like the first group, they fear what they do not know. But rather than be proactive and learn the coverages, this group makes a conscious decision to remain ignorant.

When key people in an organization make a conscious decision to remain ignorant, management faces a conundrum, especially if they too lack such knowledge.

One solution is to team them with someone who knows coverages and exposures. Pay the producer 1/2 pay though because choosing to remain ignorant should carry a price. Agency owners can bear that price or have the producers share the expense. Two people for the price of one, if both excel in their specialties is a fantastic solution.

The quality of service provided using this team approach far exceeds the quality otherwise provided at least 90%+ of the time. Focusing on both people's strengths makes their lives better and more exciting.

An alternative, even more painful to the producer, is to fire them. If they cannot sell by discussing coverages the client needs or potentially needs, and cannot give proper advice, firing seems like a terribly reasonable solution for an ethical organization. If the agency is just a peddler, the person can sell, and the agency holds themselves out as a peddler, then keep them. But if the agency holds itself as anything but a peddler, I cannot see how anyone can advocate allowing producers to omit detailed coverage discussions.

To those who do not know coverages and exposures, your trick or treat may be an E&O claim or the loss of key accounts to a competitor that explains important coverages.

What is more embarrassing: using a coverage checklist and having a client ask a question about a coverage or having the competition point out the omission?

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

Page 11

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Are Mortgage Payments Business Income “Continuing Expenses”?

Virtual University’s Ask an Expert

ulty

VU Fac

"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.

out of income, it should be part of the business income calculation. I have never seen an adjuster question this expense.

FACULTY RESPONSE

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.

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

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.

To read more including an article written by insurance and risk management consultant Jim Mahurin, click here.

Please note: You will need your IIANM log-in to view complete article. Contact rachel@iianm.org if you need yours.

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

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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!)

Bidding Farewell to Windows XP If you have already upgraded your operation systems to Windows 7 or Windows 8 then you can just ignore this post. However, if you are currently using Windows XP, you must continue reading!

The Windows XP operating system was released August 24, 2001, and has been widely deployed in agency organization. Based on a simple analysis of traffic to several of my own websites, about 20% of these visitors continue using a computer with Windows XP installed.

Here are a few suggestions on steps you can take to upgrade your systems: 1. Talk to your current agency management system vendor: They should be able to advise you on the best way to upgrade.

2. Move to a cloud-based platform: This may be the time to seriously consider moving your technology infrastructure to a third party. It will be much easier to upgrade just your workstations than your entire network.

Microsoft has announced that on April 8, 2014, they will stop delivering security updates and support for the Windows XP platform.

3. Get training: When you make the move, make sure your staff has the training they need to take full advantage of the new operating system platform.

This means there will be no new security updates, non-security hotfixes, free or paid assisted support options, or online technical content updates. Most XP support for regular consumers ended in 2009, although security updates continue to be released. But not for long.

4. Don’t delay: You should plan to make the move off of Windows XP as soon as possible.

This is especially troublesome for the insurance industry and insurance agencies in particular.

Now is the time to take action. Start working on your strategy for moving your organization off Windows XP. Size up your vendor support for upgrading to a newer operating system, get an inventory of your impacted computing devices, and evaluate how you will update these systems.

While you might be able to keep XP going with a good anti-virus package for a while, that will only protect you from known threats. This is not a good solution.

Moving to a newer operating system will help you provide a more secure environment in your organization and ensure compliance with HIPAA / HITECH.

Because of the security requirements contained in the HIPAA / HITECH legislation regarding protecting sensitive personal information, any organization continuing to use the Windows XP platform after April 2014 will likely be considered non-compliant and possibly open to regulatory actions. If your organization has an actual data breach, the fact that the organization was using a non-secure operating system platform would be problematic at best.

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Two points of good news: 1. You’re not alone. Approximately 30 percent of Microsoft’s small- to mid-size customers still use the operating system.

2. There are cost savings. New products could increase agency productivity and, in the case of Microsoft, are now sold as subscriptions with flexible numbers of licenses.

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

Automobile Head-up Displays Coming Spiff Up Your Presentations It may be time to review and update the quality of your client and prospect presentations. The days of simply printing out an insurance proposal from your agency management system are rapidly waning.

One option you can explore is Haiku Deck – a free iPad app – that makes it very easy to illustrate the main points of your presentation. Visually appealing slides are one of the best ways to communicate your main benefits and engage with people.

I recently was invited to talk with the Agency Automation Forum of a national insurance company. The group was comprised of senior level executives from various departments. I didn’t want to use the same old boring PowerPoint slides so I decided to experiment using Haiku Deck.

Haiku Deck is all about simple, beautiful, and fun. Just type a few words onto your slide and the program will search for matching (free) Creative Commons licensed photos.

You then select the photo you feel best communicates your message and stylish formatting is applied with just a couple of taps. The app pulls in photo attribution automatically, which is a huge time saver.

You can also import your own images from Instagram, Flickr, Facebook, and other services. Premium pictures are also available for purchase.

Haiku Deck has been embraced by many authors and presenters including Seth Godin. His “Most People” Haiku Deck embedded on his website is one of the most-viewed Haiku Decks of all time.

Haiku Deck is easy to use and allows you to quickly create a visually appealing presentation. Every deck you create can be easily tweeted, posted, and shared across social networks, and the best ones often rack up thousands of views.

You can view the slides I used in my “Trends in Agency Technology” presentation by clicking here.

If you have an iPad, you should explore how you might be able to upgrade your presentations using Haiku Deck.

Head-up Displays (HUD) have been a standard feature in jet fighters for decades. They soon may become a standard feature in earth-bound cars. According to an article in the Wall Street Journal, more than 800,000 cars with HUD units were sold worldwide in 2012. That number could rise tenfold over the next decade, an analyst at Tokyo’s Fuji Chimera Research Institute told the Journal.

HUDs project information like speed, navigation directions, engine RPM, and local speed limit onto the windshield of a car, directly in the driver’s line of sight. That means the driver can see all that data without looking away from the road. It can be especially helpful for navigation. Not having to take your eyes off the road could help reduce the number of accidents due to distracted drivers.

It’s safe. It’s convenient. So why don’t more drivers have it? In a word, cost. These units cost about $1,000 to add to your car.

GM put the devices in its new Cadillacs and Buicks. In BMW’s 2012 M6, the HUD is included as a part of an Executive Package (along with a heated steering wheel and smartphone integration), for $4,900. Ford broke the luxury car monopoly on the technology in the 2013 Fusion.

Rising demand should drive down cost over time, so more drivers can keep their eyes on the road. Considering the rapid growth of backup cameras, which may soon be required in all new cars by the National Highway Traffic Safety Administration, we could all benefit from better car technology in the near future.

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

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Have u heard the latest about ACUITY ?

YES! Every1 is talking about them : )

See what they’re saying at: www.acuity.com

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For AllIndependent That Matters facebook.com/acuitywow Insurance Agents of New Mexico - www.iianm.org - * October 2013

Most Insureds Have CyberRisk Gaps in Their Coverage Have You Discussed this

by Jack Fries With Your Clients?

A computer networks for vital data, business continuity s companies become more dependent on their

and communications, their vulnerability to cyber catastrophes increases. Unfortunately, most companies are operating in a 21st century threat environment with 20th century insurance coverage. The developments in the field of risk management have changed with technology."

The insurance industry has developed cyber insurance products to help businesses confront the growing number of network security risks that have the potential to shutdown a network, destroy vital data or steal customer information.

For example, as the public becomes more concerned about privacy, businesses will become more aware that they are liable if their customers' personal information is compromised. However, only a small number of businesses are reportedly properly insured.

According to a recent Ernst & Young survey, only seven percent of respondents knew they had a specific insurance policy geared to this network and cyber-risk. Nearly a third (33 percent) thought they had coverage they actually lacked. Another 34 percent knew they lacked such coverage, while 22 percent didn't know the answer. Ernst & Young characterized the fact that only 7 percent of surveyed companies had cyber insurance as "astonishingly low, given the risk environment and the fact that general policies don't provide such coverage."

Regardless of its product line or service, virtually all major businesses today rely on computer networks to function, but they need to recognize that network security risks are fundamentally different than traditional physical risks like fire. If a hacker or virus shuts down a network or destroys computer software or data, most businesses today have either limited or no coverage. Insurers have excluded these risks from standard commercial policies and are now offering stand alone coverage. Whether your client conducts business over the Internet, stores customer data on servers or simply uses email, it is at risk.

By writing policies for network security exposures, the insurance industry is providing: (1) Vital risk transfer for network security exposures; (2) Incentives for network security best practices, including lower insurance premiums; and (3) Improved cyber-risk management and education.

Coverage Traditional insurance policies such as standard property and commercial general liability insurance do not adequately deal with the risks of a cyber attack or network security failure.

Specialized cyber-risk coverage is available primarily as a stand-alone policy. Each policy is tailored to the specific needs of a company, including the technology being used and the level of risk involved. Both first- and third-party coverages are available, including: Loss/Corruption of Data - covers damage to or destruction of valuable information assets as a result of viruses.

Business Interruption - covers loss of business income as a result of an attack on a company's network that limits the ability to conduct business, such as a denial-of-service computer attack. Coverage also includes extra expense, forensic expenses and dependent business interruption.

Liability - covers defense costs, settlements, judgments and, sometimes, punitive damages incurred by a company as a result of: *Breach of privacy due to theft of data (such as credit cards, financial or health related data), *Transmission of a computer virus or other liabilities resulting from a computer attack, which causes financial loss to third parties, *Failure of security which causes network systems to be unavailable to third parties, *Rendering of Internet Professional Services, and *Allegations of copyright or trademark infringement, libel, slander, defamation or other "media" activities in the company's web site. *Cyber Extortion - covers the "settlement" of an extortion threat against a company's network, as well as the cost of hiring a security firm to track down and negotiate with blackmailers. *Public Relations - covers those public relations costs associated with a cyber attack and restoring of public confidence. *Criminal Rewards - covers the cost of posting a criminal reward fund for information leading to the arrest and conviction of the cyber-criminal who attacked the company's computer systems. *Cyber-Terrorism - covers those terrorist acts covered by the Terrorism Risk Insurance Act of 2002 and, in some cases, may be further extended to terrorist acts beyond those contemplated in the Act. *Identity Theft - provides access to an identity theft call center in the event of stolen customer or employee personal information.

Depending on the policy, coverage can apply to both internally as well as externally launched attacks as well as viruses which are specifically targeted against the insured or widely distributed across the Internet.

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

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Congrats to Burke Insurance! They were the only agency in New Mexico chosen as a 2013 Best Practices Agency!

In last week’s issue of Albuquerque Business First, IIANM’s exec, Thom Turbett’s insurance expertise was featured in an article titled, “How I ensure clients find appropriate coverage”. Click here to read the full article.

In the same issue, Randy Perkins was also featured. Here is a re-print of that article: Business First’s

Executive profile.

Randall Perkins, president of New Mexico operations Hub International Insurance Services, Inc. by, Hunter Riley Randall Perkins is the president of the New Mexico operations for Hub International Insurance Services,. In his free time he likes to support the work of his church and Special Olympics. Perkins said he is passionate about supporting the under-recognized and under-appreciated.

What did you see yourself doing at this point in your life when you were in high school?

After high school, I really saw myself playing college football followed by a career in the NFL and ultimately coaching in some capacity. My senior year in high school pointed me in a different direction. After breaking my neck in the third game of the season, it took me awhile to realize, but God had different plans for my life.

What do you do to relax after a hectic day?

I enjoy a glass of red wine with my wife. Preferably a cabernet. Then I plop down and watch a little HGTV or MeTV. If you could live anywhere in the world, where would it be and why?

I chose Albuquerque a long time ago for a lot of reasons, but at the top of the list I included family, friends, food, weather and culture.

What is one thing about yourself that people in your industry might be surprised to know?

Aside from my enjoyment of pedicures and my newfound love of country music, my identity has never been defined by my job or my career. My faith, family and outside interests keep me very balanced.

What is your strategy for effectively working as part of a large, international company?

Part of our organizations success stems from structure in operating in a very decentralized environment. The unique nuances of our great state are never expected to be a “cookie cut” reflection of our New York or Los Angeles offices. We have a lot of independence and freedom to self-identify within our region.

Do you plan on retiring? What will that process be like for you?

I plan on retiring at some point. I don’t plan on being “retired in place” (RIP) or just hanging around for awhile. When I’m done, I will be done and there will be no looking back. For now, I am still very passionate and have a lot of energy to share with my colleagues. We still have a lot of exciting things to accomplish.

How do you prepare for change or new trends in your industry?

One of many ingredients to any organization’s success is adaptability and being capable of navigating and managing the pace of change. With a positive attitude we approach all trends and changes as newfound opportunities.

Page 18

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

Congratulations to the inaugural 2014 class of Innovative LeadershipNM Anna Byers, J S Ward & Son, Artesia Cara Cress, Cress Insurance Consultants, Albuquerque C.J. Wiegel, Tucumcari General Insurance Agency, Tucumcari Connie Sevier, Western States Insurance Agency, Lovington Dax Kastrin, Elemental Risk Management, Albuquerque Diana Hobbs, Millennium Insurance Agency, Farmington Gabe Portillo, Berger Briggs Real Estate & Insurance, Albuquerque Jeff Harrison, Brown & Brown of NM, Albuquerque Josh Mintz, AVI Risk Management & Insurance Brokers, Farmington Kyle Beckner, General Insurance Agency, Clovis Matt Hunton, Hunton Insurance, Portales Mike Parisi, Western Assurance, Albuquerque Rory Golden, Letcher Golden & Associates, Portales Gena Fredrickson, Meridian Insurance Services, Roswell

A

Sponsored Program To be on the 2015 waiting list, please contact: marit@iianm.org Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

Page 19

Think preventive medicine will save you money?

Think again...

by Sharon Begley | Reuters

It seems like a no-brainer Since about 75 percent of healthcare spending in the United States is for largely preventable chronic illnesses such as Type 2 diabetes and heart disease, providing more preventive care should cut costs.

If only.

In a report released on Tuesday, the non-profit Trust for America's Health outlined a plan "to move from sick care to health care" by putting more resources into preventing chronic disease rather than treating it, as the current system does. There is a strong humanitarian justification for prevention, argued Trust Executive Director Jeffrey Levi in an interview, since it reduces human suffering.

But the report also makes an economic argument for preventive care, highlighting the possibility of reducing healthcare spending -- which in 2011 reached $2.7 trillion, just shy of 18 percent of gross domestic product -- by billions of dollars.

And that has health economists shaking their heads.

"Preventive care is more about the right thing to do" because it spares people the misery of illness, said economist Austin Frakt of Boston University. "But it's not plausible to think you can cut healthcare spending through preventive care. This is widely misunderstood."

A 2010 study in the journal Health Affairs, for instance, calculated that if 90 percent of the U.S. population used proven preventive services, more than do now, it would save only 0.2 percent of healthcare spending.

Some disease-prevention programs do produce net savings. Childhood immunizations, and probably some adult immunizations (such as for pneumonia and the flu), are cost-saving, found a 2009 analysis for the Robert Wood Johnson Foundation. The vaccines are cheap, and large swaths of the population are vulnerable to the diseases they prevent. The cost of providing them to everyone is less than that of treating the illnesses they prevent.

Those, however, are exceptions.

HIGH COSTS, NO BENEFITS One big reason why preventive care does not save money, say health economists, is that some of the best-known forms don't actually improve someone's health.

These low- or no-benefit measures include annual physicals for healthy adults. A 2012 analysis of 14 large studies found they do not lower the risk of serious illness or premature death. But about one-third of U.S. adults get them, said Dr. Ateev Mehrota, a primary-care physician and healthcare analyst at RAND, for a cost of about $8 billion a year.

Similarly, some cancer screenings -- including for ovarian cancer and testicular cancer, and for prostate cancer via PSA tests -- produce essentially no health benefits, causing the U.S. Preventive Services Task Force to recommend against their routine use. The task force bases its recommendations on medical benefits alone, not costs.

The second reason preventive care brings so few cost savings is the large number of people who need to receive a particular preventive service in order to avert a single expensive illness.

"It seems counterintuitive: If you provide care to prevent all these expensive diseases, it should save money," said Peter Neumann, an expert on health policy and professor of medicine at Tufts University School of Medicine. "But prevention itself costs money, and some preventive measures can be very expensive, especially if you give them to a lot of people who won't benefit."

If preventive care could be provided only to those who are going to get the illness, it would be more cost-effective. "But in the real world, the number needed to screen or to treat in order to prevent one case of illness can be huge," said BU's Frakt, who blogs at theincidentaleconomist.com.

Currently, many people who do not benefit from a preventive service receive it, paying something for nothing. Studies have calculated those numbers, which can be surprisingly high. For instance, 217 high-risk smokers would have to undergo a CT lung scan for one to be spared death from lung cancer, according to a database of studies maintained by Dr. David Newman, an emergency physician at Mount Sinai School of Medicine in New York City. One hundred postmenopausal women who have had a bone fracture would have to take drugs called bisphosphonates in order for one to avoid a hip fracture. By comparison, only 50 people with heart disease must be treated with aspirin for one to avoid a heart attack or stroke, making this a good buy.

The numbers of people who need to be treated for one to benefit are so high because so few will get the disease the preventive is meant to avert. It's like treating every house for termites, said Neumann, co-author of the Robert Wood Johnson report: The vast majority would never have gotten infested in the first place, so the thousands spent to avoid the infestation is money for nothing.

Counseling adults about using baby aspirin to prevent cardiovascular disease also produces net savings. The counseling is inexpensive, the aspirin even cheaper and The failure of many preventive services to improve health, the costs of heart disease, which strikes one in three U.S. plus the large number of people who have to receive preadults, are enormous. Screening pregnant women for HIV ventive care for one to be spared an illness he or she would produces net savings, too. otherwise get, limit the economic savings.

Page 20 Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

MAKING HEALTHCARE DOLLARS GO FURTHER A better gauge of the value of preventive medicine is bang for the buck; that is, not whether it reduces healthcare spending but whether it buys more health than treating the disease does. "We don't ask whether cancer treatment or heart disease treatment saves money," said Dr. Steven Woolf, professor of family medicine at Virginia Commonwealth University Medical Center in Richmond. "But it is reasonable to ask how to make our healthcare dollar go further."

On that score, screening for hypertension and for some cancers (such as colorectal and breast) are good investments, he said, at less than $25,000 per year of healthy life. In contrast, such common treatments as angioplasty cost $100,000 or more per healthy year of life.

There are two glimmers of hope in this bleak picture. For preventive medicine to help rein in the nation's soaring healthcare spending, it should be provided someplace other than doctors' offices.

"Some of the most common chronic, preventable diseases might be best addressed outside the clinical setting," said the Trust's Levi, such as through wellness programs at YMCAs and health education and screening programs at houses of worship. "But that requires Medicaid to be more flexible in who they'll reimburse."

2013

It also requires a more expansive definition of preventive medicine. The Trust suggests such steps as extending bus

iianm’s

ompany Year Award

lines to parks so people without cars can go someplace pleasant for physical activity and other "community-based" efforts. These strategies save more money in healthcare spending than they cost.

For instance, at a program in Akron, Ohio, profiled in the new report, physicians and others coordinate care for patients with Type 2 diabetes. It reduced the average cost of care by more than 10 percent, or $3,185 per year, largely by reducing pricey emergency-room visits.

And at Boston Children's Hospital, an asthma program that sends community health workers into patients' homes to reduce the environmental triggers of asthma has saved $1.46 in healthcare costs for every $1 invested. It has reduced asthma-related hospital admissions by 80 percent and asthma-related emergency department visits by 60 percent, reports the Trust.

The other promising approach is to target preventive care at those most likely to develop a chronic disease, not at low-risk people. Such "smart" prevention increases the chances of preventing expensive diseases and saving money.

In contrast, unthinking expansion of preventive medicine is the wrong prescription, say experts.

"If you start giving preventive care to more people, many of whom won't benefit from it, it's going to be very, very expensive," said Tufts' Neumann.

Congrats to Safeco Insurance!

IIANM’s 2014 Company of the Year

of the

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

Page 21

Seven Keys to

Filling Your Pipeline

with Tons of Qualified Prospects

by John Chapin

While a lack of sales can be caused by something other than not having enough prospects, generally speaking, most salespeople who miss their numbers do so because they have far too few selling opportunities which is usually caused by having far too few qualified prospects. Following are some ideas to ensure you never have this problem again.

Seven Ideas to Get all the Prospects You’ll Ever Need

1

Spend at least four hours a day prospecting.

Yes, four hours, that’s not a misprint. In order to get a sufficient number of leads, you need to spend a significant amount of time prospecting. For most salespeople spending far too little time prospecting is their primary issue. If you’re wondering where you’ll find four hours in a day, the answer is simple:

For John Chapin’s free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com With over 24 years of sales experience, he is a number one sales rep in three industries, and author of the sales book of the year: Sales Encyclopedia. For permission to reprint, e-mail: http://us-mg5. mail.yahoo.com/neo/johnchapin@completeselling.com.

John Chapin Complete Selling, Inc. Helping you find and get all the business you want Cell: 508-243-7359 johnchapin@completeselling.com www.completeselling.com LINKEDIN: once logged in find me under: johnchapin1 FACEBOOK: http://www.facebook.com/johnjchapin TWITTER: http://twitter.com/johnjchapin # 1 Sales Rep in 3 industries, Author of the gold-medal winning SALES ENCYCLOPEDIA - The most comprehensive "how-to" guide on selling.

Page 22

First, stop wasting time on unqualified prospects you’ll never convert. You know who these people are, you’ve been calling them for months, maybe even years. Either get rid of them immediately, or give them one final call and tell them this is the last time you can contact them, it’s do business now or never.

Second, stop over contacting and irritating the qualified leads. As mentioned in a previous article, the reason salespeople tend to keep unqualified prospects in their funnel and harass and over-contact the qualified leads is because they have no one else to call. Spending a lot of time prospecting will give you an abundance of prospects and solve both these issues.

Third, cut out all the busy work you do to avoid the hard work of prospecting. Most of us are very creative at coming up with ways to avoid hard work from cleaning up our desks and doing paperwork in the middle of the day, to scheduling doctor appointments and other personal items during prime calling times. Stop it!

Finally, schedule your prospecting time and stick to the schedule. For example, block off 8 a.m. to 10 a.m. and 2 p.m. to 4 p.m. for prospecting and don’t allow anything to infringe on that time.

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

I realize that if you are doing little or no prospecting, four hours is a big jump, so start with an hour or two and build from there. For 95% of you, following this one tip alone will give you all the prospects you’ll ever need.

2

Be consistent.

A big problem I see with prospecting is a lack of consistency. A salesperson does a ton of prospecting until he or she has enough business or appointments, then they stop prospecting. When business and appointments drop, they go back to doing a ton of prospecting again. In order to be good and stay good at prospecting and have a steady stream of prospects, you have to be consistent. Sure, there may be times when you’re out of balance, but even when you have plenty of business and appointments, block off some time to prospect.

3

Choose active rather than passive prospecting activities.

Phone calls, knocking on doors, asking for and calling referrals, and networking are all examples of active prospecting because you control the contact. Mailers, social media, the internet, radio and television ads, and other similar marketing techniques are all passive because you have to rely on someone to contact you. When it comes to prospecting you want to be in control of the numbers and the only way to do that is through active prospecting. While it’s good to have aspects of both active and passive marketing in your prospecting plan, far too many salespeople put most of their effort into passive methods because they are easier and more comfortable. On the flip side, they are also far less effective than active prospecting.

4

and talk to tons of people in order to get the prospects you need.

6

Keep track of numbers and results.

7

Prospecting is a numbers game.

If you go to a networking event for four hours and talk to one or two average prospects, that is not a good use of prospecting time. If you get on the phone for four hours and get ten qualified prospects, that is a good use of prospecting time. You have to know where you’re effective and not effective and spend your time on the right activities.

The more people you talk to, the more prospects you will get. If you talk to enough people during the day, you will eventually bump into someone who says, “I need what you have”, or “I know someone who needs what you have.” If you’re going to get an abundance of prospects, you need to talk to an abundance of people.

Keep an Eye Out!

Get better at prospecting.

Of course you always want to be getting better in each area of the sales process and prospecting is no exception. When you get better at prospecting, you can make fewer calls and work less, while at the same time getting better, more qualified prospects. Read books and articles, listen to and watch programs of prospecting, and perhaps most important, find people who are highly successful at getting lots of good, qualified prospects, find out what they do, and then take the same actions.

5

Do whatever you have to in order to get the prospects you need.

You need to be committed to getting the number of prospects you have to get in order to be successful. If it takes six hours of cold calling and making calls on the weekend, that’s what you do. The bottom line is: you must be willing to make tons of phone calls, knock on tons of doors,

IIANM’s New Website January 1st, 2014!

Independent Insurance Agents of New Mexico - www.iianm.org - * October 2013

Page 23

Consuelo Trujillo & Renee Trujillo, IIANM Camille Esparza, Rebecca Martinez & Matt Hunton

Megan Gillespie, Genesee General Edward & Sabastian Flores Paula Brossman & Todd Hassell, Capital Premium Financing

Steve McKee, Wallwork & Company

Suzie Dodds, IIANM & Gary Keener, Swiss Re

Crews Brandhorst, Sam Conlee, Conner Payne, Scott Jones & Gabe Portillo

Marit Peters & Shawn Rapier

PJ Wolff & Shawn Rapier

Bernie Cano & Julie Decker, Acuity Mary Lynn Gross, MarketFinders

Scott Nall & Kay Guadagnoli, MetLife

PJ Wolff, IIANM’s Immediate Past-Chair

October 2013

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TOWNHALL MEETING

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

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

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

Do you have an agency you’re trying to sell, or in the market to buy one? Check out our Classifieds!

Snuggle up to a fragrant fire Fall is the perfect time to fire up the fireplace with a cozy blaze. If you want to add a little fragrance to your hearth, try these types of wood to sweeten your fire: • Apple. It not only sweetens the smell, it produces colorful flames.

• Cherry. Although not as sweet as apple wood, cherry wood still adds a little sugar in the mix.

• Hickory. Known to many great barbecue grill-meisters, hickory brings in a nice nutty aroma and is a great heat producer.

I think if human beings had genuine courage, they’d wear their costumes every day of the year, not just on Halloween. ~Douglas Coupland

• Black birch. Don’t like your fires so sweet? Black birch adds just enough spice with its cinnamon scent.

Easy ways to get yourself into the saving habit Here are a few quick ways to save some cash quickly—and not think about it too much:

Fall is here, which means the flu isn’t far behind.

Here’s what you need to know.

Time to stock up on those "Forever" stamps: The U.S. Postal Service is proposing a 3-cent increase in the cost of mailing a letter, effective in January.

Click here for more info.

• Empty your pockets. At the end of each day, stash all loose change in a jar or piggy bank. You’ll probably bank a dollar or two a day.

• Use your coupons. Remember to use coupons only for the things you would normally buy. Take the money you saved and stash it away. This could add up to almost $2 a day.

• Stash a dollar a wash. Whenever you do a load of laundry, put a dollar in a jar. Use the accumulated money to pay your electric bill and buy laundry detergent.

Three new worlds found ‘in the zone’ One place scientists might “seek out new life and new civilizations” isn’t so far away, in interstellar terms. A star known as Gliese 667C, just 22 light-years away, is home to three planets within the “habitable zone,” an orbit close enough to the star to allow liquid water to form. Liquid water is considered essential to conditions that might allow life to evolve.

The planets are larger than our Earth but smaller than the planet Neptune in our solar system; Gliese 667C is about one-third the size of our sun, and part of a triple star system. Two more planets may lie at the edge of the habitable zone, making them possible candidates for life as well. Astronomers said in a statement that this is the first time three worlds with the potential for supporting life have been found orbiting in the habitable zone.

For all your commercial property needs, the path is clear.

COMMERCIAL PROPERTY

From skyscrapers to main street businesses, lessor’s risk to vacant property, Burns & Wilcox does it all. With unlimited access to the broadest range of markets, we can place coverages for every one of your commercial property clients. Whether their needs are traditional or complex, the expertise of Burns & Wilcox means you are always on the right road.

Albuquerque, New Mexico | 505.822.0018 | toll free 866.643.8538 fax 505.822.0092 | albuquerque.burnsandwilcox.com Commercial | Personal | Professional | Brokerage | Binding | Risk Management Services