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Welcome
2015 Class!
Jennifer Bejarano, Berger Briggs Real Estate & Insurance, Inc. Kenny Byrd, HUB International Insurance Services Charlene Fairchild, Aon Risk Solutions Heather Fortner, AVI Risk Management - Insurance Brokers Randy Hobbs, Leavell Insurance, Inc. Jim Lafferty, Tucumcari General Insurance Agency Venessa Little-Sellers, Western States Insurance Group Connor Payne, Brown & Brown of New Mexico, Inc. Matt Saiz, Western Assurance Corp. Samantha Sanchez, J S Ward & Son, Inc. Ray Strom, Cress Insurance Consultants, Inc. Kendra Zacharias-Trujillo, Rio Grande Insurance
Proud Sponsor:
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Independent Insurance Agents of New Mexico
“La Voz” is the official monthly e-publication of the
iianm’s
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.
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Anniversary
On the Cover:
Celebrating 80 Years in New Mexico
This month’s iconic New Mexico locale: Albuquerque International Balloon Fiesta Known as the world’s most colorful and spectacular festival of flying! This year will mark the 43rd time that the Balloon Fiesta has filled Albuquerque’s crystal blue skies. The Balloon Fiesta is still the premier international ballooning event, powered by the perfect October climate and a phenomenon called the “Albuquerque Box,” (a combination of weather patterns and geographic landscape).
Features Become a 2015 Partner! 04
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.
Misrepresentation 07
Kids’ Kars... Are They Ready for Their Own Policy?
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Advertising rates are available upon request.
From Online Lead to Close in 6 Steps
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States With the Oldest Workforces by Employment Percentage
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10 States With the Most Uninsured Motorists
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4 Ways to Help Your Clients Sell Employees on CDHPs
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Please contact Rachel Sheffield at rachel@iianm.org for details
IIANM Staff President/CEO Thom Turbett
Mark Your Calendars - IIANM Holiday Party & Legislative Mixer
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The Value of Happiness 09
Industry TidBits 18 How Credit Affects Auto Insurance Pricing
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Chief Strategy Officer Marit Peters
Is a Homeowners Policy Inadequate to Cover College Students?
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VP of Member Services Consuelo Trujillo
Introducing Our New 2015 Board of Directors
Insurance Programs Administrator Suzie Dodds, CIC
CONVENTION HIGHLIGHTS 26 27
In Every Issue
Communications Director Rachel Sheffield
IIANM 2014 Company Partners! 04
Member Services Associate Renee Trujillo
October’s Clickable Calendar 28
2013-2014 Officers Chair Gabe Portillo Vice-Chair Connie Sevier Secretary/Treasurer Mike Parisi National Director Sam Conlee Immediate Past Chair Diana Hobbs www.iianm.org
Tech Talk 20 Odds n Ends 29
Advertiser Index Acuity 19 Burns & Wilcox Back Cover Litchfield Special Risks
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Market Finders, Inc. 22 Molina Healthcare 06 Mountain States Insurance Group
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New Mexico Mutual 02 Risk Placement Services 25 Towerstone Insurance Services 12
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Become a 2015 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. Six levels of participation are available:
DIAMOND
Diamond
Gold
Platinum
Silver
Bronze
COPPER
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 505-999-5805 or consuelo@iianm.org with any additional questions.
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2014
PARTNERs iianm partners program
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!
DIAMOND
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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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Misrepresentation By Lee Hunt, Senior VP, Swiss Reinsurance Corporation
Claims arising from misrepresentation can result from a misunderstanding by the policyholder concerning coverage, reporting requirements, perception issues, or their misinterpretation about what is written in a proposal or letter or verbally communicated to them. Common claim causes are: • “You told me something different than what actually happened” • Customer alleges that what they asked you to cover was not covered when the loss occurred • Customer surprise that their policy is auditable or has the potential for an additional premium from the audit or reporting form • Customer alleges was not properly instructed on what is covered by the policy or endorsement • Customer alleges erroneously told by the agent what is required in the event of certain occurrences such as claims, payroll reporting, audits, and other procedural issues. Therefore, what can an agency do to assist in the prevention of policyholder misunderstandings and allegations after the fact that do not fit the facts as the agency sees them? DOCUMENT, DOCUMENT, DOCUMENT!!! Can you as an agent PROVE what was said, done or proposed to a customer months or even years after the fact when a customer suffers a financial loss and alleges it was due to an agency error or omission or misrepresentation? Memories grow hazy over time combined with the temptation by a customer to make allegations against an agent when the prospect of financial loss threatens the future of their business or personal wellbeing. Consider the following: • Don’t oversell your agency or services on your website, in your proposals or in your marketing materials. Avoid vague or all-encompassing promises. Do not lead the customer to expect a level of expertise that holds the agency to a higher standard that an agent normally would be held. • Use checklists and applications to bring coverage needs to a customer’s attention. • Use form letters to document all phases of the insurance process from instructions in handling to documentation of both positive and negative topics. • Use written proposals and quotes to clearly document and describe the transaction. • Use standardized language in proposals and quotes. If you provide highlights of coverage and exclusions include a statement to clarify your intent such as something similar to the following: This proposal contains a brief outline of coverages to be included in the policy that may be issued in the future. This is only a summary, and the terms and conwww.iianm.org
ditions of any policy will take precedence over the proposal. You must read your policy. • Utilize carrier provided coverage summaries and explanations of coverage or procedures rather than developing your own if such are available • Spend the time needed to explain complicated coverage forms or reporting procedures • Document all phone conversations immediately, keeping a phone log of all business calls received INCLUDING all offsite cellular phone conversations. Use a standardized telephone memo or call sheet • Retain fax transmission verifications with original documents AND maintain records of fax transmissions • Time and date stamp all incoming mail and have it reviewed by senior staff immediately • Train staff on phone contacts, what to say and how to say it including after hours voicemail. Use language similar to: “Please be aware that coverage cannot be bound or altered via this voicemail.” • If a message is taken for another, ensure the caller does not assume the request or issue has been resolved. • Respond in writing to customer queries whenever possible to confirm what is said verbally • Do not represent yourself to be capable of giving legal, engineering, human resources, tax, accounting or other professional advice • Save all business related emails and correspondence in the customer file • Implement a procedures manual that addresses at least all basic procedures so as to ensure consistency in the handling of work items. Update it at least annually with your staff • Audit files on a regular schedule to confirm that proper procedures are being followed by all staff • Conduct regular training sessions with your staff Finally, BE CONSISTENT in the use of any or all of the above procedures. If you do it for one customer do it for all of them!
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To get on board and create the kind of happiness in your business that engages employees and keeps customers, here are three things for you to do. I suggest you do them in the first quarter of this year: Identify your core values. What values lie at the "heart and soul" of your company? What fuels the culture? Are people connected to the values? What do you do to activate that connection on a daily/ weekly/monthly basis? (We have a great report to help you uncover those values: Making The Tangible Intangible)
We've come a long way, baby.
By JoAnna Brandi
HBR's spotlight on the "Happiness Factor" has five articles just on that topic. Two decades of research from the fields of psychology, neuroscience and economics have finally converged, giving us a broader and more detailed picture than ever before about the power of emotions - how feelings trigger specific responses in the brain and impact what a person values. Wouldn't you know, the collective results of years of studies now definitively link a happy thriving work culture to better business performance. Some notable findings: People are happier when they feel valued and appreciated, and when they feel that their work makes a difference - both in the overall success of the company and in the world. People are happiest when they're given the opportunity to play to their strengths at work and use them to grow. (This won't be new to you. You've read it here before.) They are happiest when they are appropriately challenged with stretch goals that take them into their "stretch zone," but not into the "panic zone." Science has proven that people blossom when challenged and wither when threatened. Isn't it about time we "get it" - that fear as a motivator works only in the short term? In the long term, fear-based cultures wear people down and disengage them. Happy employees are more productive and perform better than unhappy ones over the long term. Period. Happiness as a business strategy has proven incredibly profitable for retailer ZAPPOS. CEO Tony Hsieh's evolving business model combines three faces of happiness - pleasure, passion and purpose, as he explains it - and has created a culture of committed "Zapponians" who come to work each day driven to "Deliver Happiness." They've gotten so good at it that they now teach other companies to do it!
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Identify your story. Stories build your brand. What stories do you retell over and over? What memories do you create? What do your customers remember and retell? What emotions do you evoke when customers do business with you? What important role do you play in their lives? Is it time to change your story? Identify pockets of "Positive Deviance" that exist in your company. Every company has a department, a division or a group that seems to do things a little differently, a little better than the rest. Who's doing great things in your culture? What group is most optimistic? Who does the breakthrough work? Who's the healthiest or the happiest? Take a look at what they are doing and figure out how to make their positivity contagious in other areas of the organization. No one fits the bill on the inside of the organization? Then look at who's doing a great job in your industry, category, or neighborhood. Who is getting positive results? What can you learn from them and bring back to your organization? Take your values, your story and your potential and use them to change the conversation in your company. Nothing changes until the language and the conversation changes. I know my clients are starting to assimilate the knowledge I bring when I hear changes in their language and the topics of conversation. When I see the shift from problems to possibilities, I know I am getting somewhere. Happy companies are productive companies. There is a clear connection between how your employees feel about coming to work and how well they treat your customers. It's a new year! Start asking yourself, "How can I create a company (or department, or division) that's great to work for and great to do business with? How can I create a culture that THRIVES?" If you need a little help with that, call me. I'm happy to teach you everything I've studied and know about the power of happiness as a profitable business strategy. JoAnna Brandi is the publisher of The Customer Care Coach速 www.ReturnOnHappiness.com Read JoAnna's blog www.CustomerCareGoddess.com and www. PositivityPractices.com
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kids’ kars... are they ready for their own policy? Virtual University’s Ask an Expert
ulty
VU Fac
It is not uncommon when there is a youthful driver in a family with an auto that the insured is advised to title the car in the child's name. This evidently will lower the premium with some carriers but, more importantly, it is believed it will lower the liability risk of the parents. If the parents have a personal umbrella, and the child is a member of the household, the child falls under the umbrella. However, if the child, for cost savings, purchases minimum coverage (100/300) and the umbrella requires a $500,000 underlying, for instance, is there a gap in coverage? If there is a gap, what might be the solution for the agent to avoid an E&O claim? The only solution we have heard from companies to date is to buy up to the underlying umbrella limits. And finally, are we just playing games here and if the child is a minor and residing in the household, even if the auto is titled in his/her name, is the parents' policy/the parents still liable? Would appreciate you steering us in the right direction. Below are some observations of our faculty. Two key points are made. First, keep in mind that the ISO PAP includes an exclusion throughout the policy (even in UM/UIM coverage in many states) that says that, under the parent's policy, there is no coverage for any resident family member (other than the parents themselves) using the auto of another resident family member unless that auto is insured under the parents' policy. In other words, if a couple has a 16-year-old daughter and a 17-year-old son living at home, and the son insures his car under a separate policy, the 16-year old daughter has no coverage (nor does her brother) under her parent's policy while driving her brother's car...she must rely solely on the limits and coverages provided by her brother's policy. Second, if the parents have an umbrella policy, it is unlikely that it will provide excess coverage over claims covered by their son's auto policy. If you'd like to review the "family member" exclusions in the ISO Personal Auto Policy, click here to open up the policy. Faculty response Insuring the child’s car under a separate policy has potential gaps. For example, in the current ISO form, if there are other family members in the household, the parents’ policy provides no coverage for them while driving the child’s separately insured auto...only the limits under that policy would be available. (The parents, though, would be covered by their own auto policy as excess of the child’s policy while driving the child’s car.) Depending, again, on the wording of the parents’ umbrella, if there is no coverage under the parents’ auto policy, there might be no coverage under the umbrella...that’s particularly true when the “umbrella” is actually an excess policy. None of the personal umbrellas I’ve seen have any dropdown provisions, though I’ve admittedly seen only a fraction of all of those in the marketplace. I’m not sure titling the car in the child’s name will abdicate the parents of responsibility. Depending on any statutes to the contrary, they may still be held liable. If so, THEIR policy should protect them. So, you can see from the above that there are dangers in insuring a child’s car under a separate policy. However, depending on the unique circumstances of an accident or exposure, there are dangers from insuring him/her on the same policy...but that’s a story for another time.
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Faculty response First, I would never advise an insured to do this if their child is still under 18 (the age of majority in our state), because the parents still have parental responsibility and, thus, a liability exposure for the child’s use of the auto. But once they turn 18, it is not out of the realm of possibility if the parent no longer has a liability exposure for the CHILD’s use of the auto. If fact, I did this when my kids turned 18, though that’s a personal decision and I’d never suggest that an agent “recommend” this. It’s cheaper JUST BECAUSE they don’t have to carry high limits, because they don’t have any assets (however, you do get into a moral issue of, even though you have no assets to attach, do you have a moral obligation to make the injured person whole?). From a purely financial standpoint, then, the umbrella over their auto limits is not necessary. The parents and the child, of course, should be told this in writing.
Click here to view additional faculty responses and also other related articles. You will need to log-in to view, so if you do not know your log-in info, send Rachel an email.
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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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From Online Lead to Close
IN 6 STEPS
Automation is a serious buzz word these days. But what does it actually mean, particularly with regard to marketing? And can independent insurance agencies actually automate their marketing activities? Right now, to generate new online leads, you are probably utilizing a combination of SEO (search engine optimization, also known as getting found organically on Google), SEM (search engine marketing, or paying for ads on Google), PPC (payper-click, or purchasing banner ads on local media websites), email marketing and cold calling. Once you’ve identified your leads, the job isn’t over. It’s equally important that your team enters lead information into your agency management system, sets reminders to follow up and then follows through to a close. After closing new customers, you should properly welcome them to your agency and continuously re-evaluate them for up-selling and cross-selling opportunities. If you’ve been in business for a while, you know that sometimes (or quite often) things slip through the cracks, resulting in lost leads and lost business. Marketing automation attempts to streamline much of the lead generation, follow-up activities, and even budgeting into an intelligent, centralized system. Here’s a real-world example of how marketing automation can bring it all together: 1. A prospective customer finds your website by doing a Google search. After reviewing your website, he decides to take action and fills out a form on one of the many landing pages you built using your marketing automation system. 2. Instantly, your sales manager receives an email containing the customer’s contact information and important details such as which pages he visited, how long he was on your website and which forms he completed. In addition, your CRM automatically creates a new “lead” record with this same information, eliminating for the necessity of manual data entry by your team. www.iianm.org
By Matt Keener
3. Within minutes, the prospect automatically receives a personalized email from your sales manager that thanks him for requesting more information. It also presents several available times that the sales manager is available for the free consultation. The prospective customer clicks a link to confirm which time works best for his schedule. 4. Your sales manager’s calendar is instantly updated with the new appointment - and he still has not even done any work yet! 5. The appointment occurs and the meeting goes well. Your agency ends up winning the new client’s business. 6. Six months later, your sales manager receives another email indicating that this customer has been spending a lot of time on your website and seems to be reading blog posts about general liability insurance. This triggers a nurture email campaign, offering additional free information to the customer. Your upselling campaign has begun, and again, the sales manager didn’t have to do anything - your marketing automation system completes the work automatically. Before jumping headfirst into a marketing automation solution (such as Marketo, Pardot, Eloqua or Infusionsoft, to name a few), it’s important that you spend time evaluating your agency’s existing marketing processes and mapping priorities for the future. Technology can certainly add significant value to your agency, but only if you have a very specific plan for implementation. Don’t try to do everything at once. Instead, identify specific processes that are advantageous for marketing automation and start there. In time, you’ll find that an increasing number of marketing activities naturally migrate to an automated setting. Matt Keener is president of Keener Marketing Solutions, LLC and author of the “Executive in Sweatpants: A Handbook for Launching Your Work from Home Career.” - Click here for more information.
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(Source: Marshberry) More than 40% of staff members in an average insurance agency are older than 51, according to Marshberry research. For those following the industry's impending talent gap, this number comes as no surprise. Insurance companies across the board need new talent and several organizations are paving the way to find it. However, finding the right talent will be difficult unless insurers know where, and where not, to look. The Bureau of Labor Statistics’ 2013 preliminary annual employment demographics report pinpoints the states with the highest ratios of employees 65 years and older. At 8.3%, Montana shows to have the greatest population of employed persons in this age group. Of its 483,000 active employees, 40,000 are 65 years or older. This is almost 3% greater than the United States as a whole.
10 states with the most uninsured motorists (Source: IRC)
Fewer Americans are driving without auto insurance, suggesting market penetration has increased in the past year, according to a new report from the Insurance Research Council (IRC). In its “Uninsured Motorists, 2014 edition,” the IRC found that the number of uninsured motorists peaked in 2009 at 29.9%, and has been declining moderately ever since. In 2012, just 29.7 million were driving without insurance. Despite the decline in uninsured motorists, however, the cost to insurers has increased 75% over the past 10 years—roughly $14 per insured individual in 2012.
of claims filed under the injury portion of uninsured motorist coverage with the number of claims filed under the bodily injury liability coverage. The percentages reflect the ratio of uninsured motorist claims frequency to bodily injury claims frequency. The top 10 states include: 1. Oklahoma: 25.9% 2. Florida: 23.8% 3. Mississippi: 22.9% 4. New Mexico: 21.6% 5. Michigan: 21.0% 6. Tennessee: 20.1% 7. Alabama: 19.6% 8. Rhode Island: 17.0% 9. Colorado: 16.2% 10. Washington: 16.1%
And some states are more at risk than others. In these 10 states where uninsured drivers are the highest in numbers, producers have the opportunity either to sell more new policies to those going uninsured or to protect current clients by making sure uninsured motorist coverage is in place. To calculate these numbers, the IRC compared the number
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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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Distinctively…...Litchfield Special Risks, Inc. Classes of Business:
Multi-Line-Brokerage-Umbrella
■ Scottsdale Insurance Co. ■ Endurance American Specialty ■ Strickland Insurance Group ■ USLI ■ Century Insurance Group ■ Essex/Markel ■ Heath XS ■ Seneca Insurance Company ■ Admiral ■ Cover X ■ Great American ■ RSUI
■ General Liability ■ Commercial Property ■ Umbrella/Excess Liability ■ Pollution Liability ■ Professional Liability ■ Liquor Liability ■ Directors & Officers ■ Errors & Omissions ■ EPL ■ Inland Marine
Classes of Business:
Markets:
Markets:
Transportation
■ Scottsdale Insurance Co. ■ Canal Insurance Co. ■ Carolina Casualty Ins. Co. ■ Northland Insurance Co. ■ Colony Insurance Company ■ Lloyd’s of London ■ Century Insurance Group
■ Auto Liability ■ Physical Damage ■ Cargo ■ GL ■ Garage ■ GKLL ■ DOL
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.
P & C Online Quoting With Litchfield Special Risks, Inc.
■ 24/7 Anytime Quotes ■ Live online help and training available ■ 15% Commission
■ Get a quote online within minutes ■ E-Check, Visa and Master Card payment options ■ Many classes available, Monoline GL & Property or Package
Visit Our Newly Designed Website at: www.lsrinc.org 16
El Paso • 7016 Orizaba, El Paso, Texas 79912 • Tel: 800-592-1027 • Fax: 915-532-9973
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4 Ways to Help Your Clients Sell Employees on CDHPs by Mark Rader If you’ve ever worked closely with a client rolling out a consumer-driven health care plan (CDHP) for the first time, you probably know that convincing employees to make the switch can sometimes feel like pulling teeth. The problem isn’t that the CDHPs aren’t the right fit for many of them— they are. CDHPs offer employees clear-cut benefits like more control over their health care options—something 85% of consumers say they want—and reduce participants’ health care costs by an average of 12%. But unless employers are strategic and clear in the way they communicate the value of their CDHPs, employees are likely to assume the worst, letting their fears and anxieties drive their decisions. Some are resentful of having to re-think their options. Others may be dubious that this new plan could be both good for their employer and good for them. They hear “consumer-driven” and think, “Wait, I’m responsible for figuring this all out now?” They hear “high deductible” and think, “Why would I want a plan that makes me pay more?” They find out that CDHPs usually come paired up with a HRA or HSA and think, “That sounds like a lot more work.” As a result, they default to the relative safety of the HMO or PPO plans they’re used to—even if those plans are costing them more time and money. So what can agents like yourself do to help your clients communicate the value of CDHPs in a way that helps employees see the light? Here are four tips you might pass on: 1) Focus exclusively on what CDHPs can do for employees. As you and your clients know well, employees who participate in a CDHP are more likely to weigh the costs of health care, take responsibility for budgeting for their needs and, ultimately, save money for themselves and your clients in both the long and short term. But often, employees don’t care about the bigger picture. All they really want to know is: “What do I get? And how much is going to cost me?” So that’s all you need to tell them, as simply and clearly as possible, across all of your communications. 2) Use clear, attractive visuals to communicate CDHP savings. Many employees would rather look at an infographic or chart than read a few paragraphs of text, regardless of how engaging it is. That’s why it’s worth your while to
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enlist the services of a graphic designer to create a snappy and easy-to-understand visual that compares the total CDHP costs (annual prices for all premiums, deductibles, out-of-pocket expenses, with the savings subtracted from HRA/HSA) with the total costs of the other traditional plan options. Employees will be pleasantly surprised to see that the premiums plus the deductible of a CDHP may already be lower than their other options. 3) Explain CDHPs as a cohesive program. Most CDHPs comprise some combination of a high-deductible health plan and either an HRA or HSA. To many employees, this sounds like double the headache. So instead of focusing on how a CDHP requires juggling two things, use language that presents these components as a unified program that gives employees more control. Also, when you do talk about HRAs or HSAs, avoid complicated tax-related terms and keep the message very simple. For a client with an HRA plan, the message might simply be: “We give you money to use to pay for your health care expenses.” 4) If possible, create a more appealing name for the CDHP option. The names employers assign to their plans can influence the decision making of their employees, for better or worse. If it’s possible—at least internally—choose plan names that are either neutral (The Red Plan, The Green Plan, The Blue Plan) or positioned in such a way to focus on the benefits you most want to advertise. Imagine, for example, how employees might respond to a “Low-Premium Plan” as opposed to a “High-Deductible Plan.” At the end of the day, anything you can do to help both your clients and their employees save money is going to make you look better as an agent—while giving clients yet another reason to trust you with their business year in and year out. Mark Rader is a benefits communication specialist for Jellyvision. - See more at: http://www.iamagazine.com/ strategies/read/2014/09/05/4-ways-to-help-your-clients-sellemployees-on-cdhps#sthash.dT33N5Yy.dpuf
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New Flood Insurance Manual FEMA has released its updated National Flood Insurance Program (NFIP) Flood Insurance Manual which will take effect on Oct. 1, 2014. The manual is the primary guide for insurers and agents selling and servicing NFIP policies. New Freedom Campaign TV Ad The new Trusted Choice TV advertisement will launch on national TV beginning September 8! To preview the new ad, click here. The ad focuses on the Trusted Choice "Freedom Campaign" and uses humor to drive home the point that Trusted Choice independent agents are "free to do what's right for you." This ad is tag-able and can be customized for individual agencies. To order this spot to use in your local advertising campaigns, you can do so with this form from the "vault" service that houses our TV commercials (they keep the files in the various formats that the TV stations request and send to the stations directly since they are really large files at super high resolution).
IIANM Wins Education Award The New Mexico association was recognized by the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) with Excellence in Insurance Education (EIE) Awards at the association’s Education Convocation in Grand Rapids, MO. The EIE awards celebrate and recognize state associations and staff who have made significant contributions to education for their members and the industry in the key area of class offerings, continuing education (CE), professionalism, designation offerings, industry collaboration, planning goals, marketing, resources and more. Thank you Consuelo Trujillo for all of your hard work and dedication!
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R WINNE
When you think Roswell, NM you probably think Alien! There is SO much more to our city. From the beautiful tree lined streets of historical homes dating back to the 1800’s, the New Mexico Military Institute educating students from around the world, rich farm lands and Pecan orchards to the incredible sunsets. Roswell was once the home of Walker Air Force Base and the workshop of Robert H Goddard. Goddard was a professor, physicist and inventor who is credited with the world’s first liquidfueled rocket, which he successfully launched on March 16, 1926.
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Robert H Goddard High School was built in 1965. Its ground floor houses the administrative offices, gym and cafeteria. All classrooms are underground also serving as a bomb shelter! Roswell is SO much more than the Alien capital – we invite you to come check us out!
Congratulations Meridian Insurance Services! 601 W Second Street, Suite 6 – Roswell, NM 88201
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For All That Matters
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facebook.com/acuitywow
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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!)
Easily Add Interactive Coverage Information to Your Website People of all types are starting their search for information by going online first. That’s why your agency website needs to continually add new and relevant information about the insurance products and services you offer. Most people think insurance is boring. Anything you can do to make it easier for people to understand why they need insurance and what it will protect is a good thing. That’s why Clickable Coverage is an interesting interactive option you should explore. Clickable Coverage is a collection of over 30 interactive (as of today) visual scenes highlighting common personal and commercial coverage exposures and related solutions. Prospects explore the scenes on your agency website or with you on your iPad to learn about insurance in a jargon-free style. Click the image below to see how Clickable Coverage works.
This interactive sales tool is an interesting way to illustrate the needs and types of coverages a potential customer should consider. Current scenes include: • • • • •
Home and Auto Cyber liability Golf Course Garage/Repair Shop Manufacturer
• Business • Restaurant • Contractor • Technology Firm • Contractor
With Clickable Coverage, you can also: • Email the scenes to your clients and prospects. • Walk prospects through the scenes on your iPad. • Send a follow-up email to prospects after a meeting with a link to the appropriate scenes. • Email clients with relevant scenes at renewal time (great for engagement and upsell opportunities). • Share the scenes on various social platforms. Custom scenes can be requested. For example, they recently completed a scene for an insurer in the Midwest that details brewery insurance coverage, because that is a market the insurer wanted to target. Pricing for this service is straightforward: A flat $49 per month will provide access to all scenes on your website and tablet. You can cancel at any time. Clickable Coverage is the product of Forge3 of Bethlehem, Pennsylvania, a web solutions company, with a focus on the insurance industry. Check out Clickable Coverage for more information and a demonstration of how the scenes work.
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Stop Typosquatters in their Tracks By, Joseph Doherty Are rogue websites popping up that use your agency’s trademark? Here’s how to combat online trademark infringement. As TrustedChoice.com has seen exponential growth, it has become the target of online opportunists trying to profit from its success and goodwill. Trusted Choice® and the Big “I” Office of General Counsel have collaborated to stop several so-called “typosquatters”—often shadowy figures that register domain names that are identical or confusingly similar to well-known domain names or trademarks. In the last few months, the Big “I” has shut down trustdchoice.com, trustedchoise. com, trustedchioce.com, and trustedchoices.com. These websites appear to have existed for the sole purpose of diverting traffic to competitors through, for example, display ads for direct response and captive agent carriers. Typosquatters displaying ad links are typically compensated by advertisers on a pay-per-click basis. If your agency owns a trademark and you discover rogue sites with confusing addresses are popping up, what should you do?
registrant’s response without the need for, or additional time and expense of, an arbitration hearing or additional written submissions. This procedure is available for the longstanding generic top-level domain names (gTLDs) such as .com, .org, and .net. ICANN recently introduced a faster and more streamlined procedure, Uniform Rapid Suspension, for clear-cut trademark infringement in the new gTLDs, which include .agency and .insure. Need help? Reach out to the national Big “I” Office of General Counsel to discuss the ICANN arbitration procedure or any concerns regarding potentially infringing domain names. Joseph Doherty is Big “I” counsel.
How to Delete Your Web Accounts It’s very easy to create an account at a website. It’s not always as easy to delete your account when you decide you don’t want to use that website service anymore. Even if the website makes it easy to delete your online account, it’s not always easy to find out exactly where on the website you have to go to do it.
To stop these typosquatters, the Big “I” has used the arbitration procedure created by ICANN, the organization that runs the system for registering domain names. Upon identifying a potentially infringing domain name, a trademark owner may file a complaint against the domain name registrant with an ICANN-approved arbitration provider. The trademark owner can identify the domain name registrant through a WHOIS search (available at who.godaddy.com and other websites).
JustDelete.me is a simple website that provides a directory of web services and saves you time by providing direct links to the cancellation pages of numerous Internet sites.
To be successful, the trademark owner must allege and prove that: 1) the domain name is identical or confusingly similar to its trademark; 2) the domain name registrant does not have any rights or legitimate interests in the domain name; and 3) the domain name has been registered and is being used in bad faith by the domain name registrant (such as to divert business to a competitor). If successful, the trademark owner can obtain the transfer or cancellation of the domain name.
For some sites, JustDelete.me provides additional information on the cancellation process. For example, to delete your Blogger account, you're told, “You can't delete your Blogger Account without deleting your entire Google Account. But you can delete your blog.”
The ICANN arbitration procedure is user-friendly, prompt and relatively inexpensive compared to other methods of combating the misuse. The arbitration providers offer detailed instructions and sample complaints. A trademark owner can file a complaint for approximately $1,300 to $1,500, with additional fees for multiple domain names, and receive a decision within approximately 60 days. Except in rare circumstances, the arbitration is decided based solely on the trademark owner’s complaint and the domain name www.iianm.org
Web companies don't want you to close out the account you have with them. I understand—if you leave, their revenue-earning potential decreases. Some companies make the process of deleting your account relatively easy, while others make it practically impossible or at a minimum very confusing.
JustDelete.me also ranks the difficulty of closing out your account. • Green indicates your account is easy to delete. • Yellow means it will take some extra steps to delete. • Red means it’s hard and the account cannot be fully deleted without contacting customer services. • Black means the account is impossible to delete. This information might be helpful if you don't already have an account, but are considering creating one. It is a good privacy practice to delete website accounts you created in the past but no longer use. JustDelete.me will help you easily find the right place to go.
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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
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Market Finders, Inc. 22
5201F Venice Ave NE - P.O. Box 90280 Albuquerque, NM 87199-0280 (800) 530-8711 (505) 822-8711 Fax: (505) 822-1165 www.marketfindersnm.com
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How Credit Affects Auto Insurance Pricing
By Caitlin Bronson Source: IBA
One of the most hotly debated underwriting factors in auto insurance, an applicant’s credit history continues to be used significantly in crafting policy rates. For independent agents and brokers, that means explaining the sometimes foggy connection between credit history and driving risk. A new report from WalletHub may make that task easier, however. Researchers at the consumer finance consultancy looked into how, where and why credit matters to auto insurers, and just which carriers are relying on the underwriting factor the most. Credit score by carrier WalletHub researchers evaluated the nation’s top five auto insurance carriers by creating two hypothetical consumers, one of whom has excellent credit and the other, who has no credit. All other factors remained the same. Allstate seems to be the insurer that leans most heavily on credit data. The report reflected a 116% fluctuation in premiums, while State Farm—the least credit-reliant—fluctuates just 45% when it comes to credit score. Farmers Insurance was the second-most credit reliant, with an 83% fluctuation, followed by Geico (56%) and Progressive (47%). In terms of transparency, researchers determined Progressive was most up-front about their use of credit score as a rating factor, while Liberty Mutual ranked last. Credit score by state Geography also mattered when it came to credit history and an insured’s bottom line. While credit score had an average 65% differential in cost nationwide, some states relied on the underwriting factor more than others. Credit data had the most impact in the District of Columbia, with a whopping 126% fluctuation, and the least in Vermont (18%). Other highly credit-reliant states include Wyoming (114%), Indiana (110%) and Maine (109%). On the other end of the spectrum are Montana (24%), New Mexico (26%) and North Carolina (26%). California, Hawaii and Massachusetts were not included in the lineup as state laws prohibit some factors, like credit history, from being incorporated into auto insurance ratemaking. Should credit be used at all? The use of credit history as an underwriting factor is very hotly debated among those in the industry. If you listen to J. Robert Hunter, Director of Insurance for the Consumer Federation of America and former Texas Insurance Commissioner, all underwriting variables other than driving-related factors are unfair. “Actuaries must look for some logical connection to risk,” Hunter said. “Good classifications have both correlation and a good thesis—they need to logically relate. Let’s get rid of these factors that make rates go up for poor people for the benefit of the rich.”
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Toward the end of the school year, a thief enters a college student’s room through a suitemate’s room and bathroom, and steals a computer the school had signed out to the student. The student’s parent receives a letter stating she owes the school $1,600 before she will be allowed to resume her education.
By David Thompson
Is a Homeowners Policy Inadequate to Cover a College Student?
Q:
"Is a computer provided by my daughter's school for use while she is attending covered for theft from her locked room while she is out of the room? Does homeowner's insurance normally pay for such losses? Do you have any idea why my agent would say this was not covered?”
A: “After reviewing the pertinent policy provisions, which
is not identical to the ISO form in language but features the same coverages, we're unable to explain why the agent would have said there was no coverage. This is clearly a covered loss.
Although this company's policy form is not identical to its ISO counterpart, we'll use the applicable ISO HO 00 03 04 91 form to follow along with the coverages. The homeowner's policy covers any personal property ‘owned or used by’ an insured if it is damaged or lost due to a covered peril. The student was certainly using the property, and theft is a covered peril. The term ‘insured’ includes a resident relative, and courts have determined consistently that a dependent child away at school is still a resident of the named insured's household. One limitation does apply: For personal property ‘usually located at’ an insured's ‘residence’ other than the residence premises, only 10% of the Coverage C limit (or $1,000, if greater) is available for losses. But in this case, 10% of the Coverage C limit is more than adequate for the loss of the computer. In addition, policy conditions require that theft losses be reported to the police. Although ‘police’ is not defined, notice to the campus police could suffice. That being done, this appears to be a clearly covered claim. But before we leave this issue, let's examine how students away at school may be impacted by the ISO HO2000 program. Under HO 00 03 10 00, the definition of ‘an insured’ has changed. It still includes the person named, resident family members and those under 21 in the insured’s care, but also contains a new item: ‘a student enrolled in school full time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of: (1) 24 and your relative; or (2) 21 and in your care or the care of a person described... above.’
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This new definition presents several potential problems. First, the person must be a ‘full-time’ student. We polled five universities and all said 12 hours was a full-time load per their standards. So what happens if the student can't get into a class and gets only nine hours? What about a child staying on campus for summer school with only six hours? A literal reading of the form says he or she is no longer an insured. Another problem is the age restriction. An agent called me just today saying his ‘kid’ was 23 and in grad school. Mom and dad support him 100%. The student will be away at school out of state for at least another year, so he will soon be above the age 24 cutoff. At that point, a literal reading of the policy makes him uninsured, necessitating his own HO4 and umbrella. To remedy the problem ISO created in this new definition, they have introduced a new endorsement, HO 05 27 10 00 - Additional Insured - Student Away At School, for use when a student is not full time or is under the age limit. With the endorsement, you simply list the student and the address at which he/she resides. But the endorsement seems to me to be a fix to a phantom problem. Every scholarly insurance publication states college students are covered for 10% of the Coverage C limit and qualify as ‘an insured’ for all coverages, including liability. The student has liability because he or she is a family member and the place they are living—dorm, frat house, apartment, rental house—is a location not owned by an insured but where an insured is temporarily residing. I've never heard of any company having a problem with children away at college. As an agent for more than years and an instructor for the last four, I've seen numerous claims paid for college students and nary a one denied. If ISO intended that a part-time student or 24-year-old not be covered, the definition could have said ‘residents of your household who are your relatives, but not your children away at college unless described in item 3.C. below.’ For a more detailed analysis of personal lines exposures for college students, check out these two articles in the Big “I” Virtual University (log-in required): • The PAP & College Students • Kids in College...Time for an Insurance Review David Thompson is a full-time instructor for the Florida Association of Insurance Agents and one of the top personal lines technical experts in the country. www.iianm.org
SERVING NEW MEXICO WITH QUALITY PRODUCTS AND SERVICES
Placing a call to us will put you on the fast track to providing the best solution for your clients. • Underwriting & Brokerage capabilities • 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 • Products Recall
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Visit our online Marketing Library to learn more about all our specialty products, programs and contact directories.
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Click here to watch our Special Anniversary video!
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Introducing our
2015 Board of Directors
Executive Committee:
At Large Directors:
Gabe Portillo
Randy Hobbs
Berger Briggs Real Estate & Insurance, Inc. gportillo@bergerbriggs.com
Leavell Insurance, Inc. randy.hobbs@leavellinsurance. com
Chair of the Board
Dick Minick Connie Sevier
Vice-Chair of the Board Western States Insurance Group conniesevier@valornet.com
Mike Parisi
Secretary / Treasurer Western Assurance, Corp mparisi@westernassurance.com
Minick & Company, Inc. dminick@minickandcompany.com
Kyle Beckner General Insurance Agency kbeckner.union17@insuremail.net
Dax Kastrin Elemental Risk Management dax@erm-ins.com
Heather Fortner AVI Risk Management - Insurance Brokers hfortner@aviagency.com
Diana Hobbs
Immediate Past-Chair Millennium Insurance Agency diana@millnm.com
Cara Cress Cress Insurance Consultants, Inc. ccress@cressinsurance.com
Sam Conlee
National Director USI Southwest, Inc. sam.conlee@usi.biz
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October 2014 Sunday
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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 Trick or treat!
Plan for a safe Halloween
Halloween is a holiday that children and their parents enjoy together. But keeping your costumed trick-or treaters safe while they go door to door is paramount. Follow these tips for ensuring that your kids will have a Halloween they remember for all the right reasons: • Choose costumes in light or bright colors. Whether you buy a costume or make one, be sure it will be visible after dark. Put some reflective tape on goodie bags to help them show up on the street.
Adopt a Dog Month. Sponsored by the American Humane Association, which notes that each year, 3 million to 4 million animals wait in shelters for someone to give them a safe, loving home.
Autumn is a second spring when every leaf is a flower. ~Albert Camus
Save money with
• Eat before going out. Serve dinner or a good healthy snack before your kids hit the neighborhood. They’ll be less likely to gorge on the candy they collect if they’re already full. • Be careful with props. Make sure masks don’t limit children’s vision or obstruct their breathing. If they’re carrying canes, toy swords, or any other sort of accessory, check that they’re not too difficult to carry while walking or crossing the street. • Plan your route. Determine a clear and safe path through your neighborhood ahead of time. You should accompany small children, of course, and discuss safety with older kids going out as a group. Always carry a flashlight and cell phone. • Inspect candy before eating. Check through treat bags when children return home, and separate out any candy that looks suspicious. Don’t let kids consume too much at one time - ration it out so they don’t make themselves sick.
Chicken can be your best bet for healthy meals at a low cost. These tips for getting the most out of chicken come from The Dalles Chronicle website: • Buy whole chickens. Instead of buying chicken in pieces, purchase a whole bird and carve it up yourself. You’ll get more bird for your money. • Plan multiple meals. You can usually get three or more meals from a single chicken: the basic meal, followed by sandwiches, chicken pot pie, stir-fry, etc. Then you can make soup or chicken stock from what’s left over. • Buy in bulk and freeze. You can usually keep frozen chicken in its original packaging for up to three months. For longer periods, remove the packaging and wrap in foil, freezer paper, or plastic bags.
Winter is coming: Prepare your home for the cold Before the weather gets too cold, you should protect your house and family from the elements. Here are some essential areas to check: Roof • Look for missing shingles, cracked flashing, and broken overhanging tree limbs. • Check the chimney for mortar deterioration and loose bricks. • Inspect the underside of the roof, from the attic, for signs of leakage. Exterior • Check the foundation for cracks in the concrete or low spots in the soil where water can accumulate against the foundation. • Examine the caulking in the siding and around the window and door trims. Heat • Turn on the heating system and ensure that the heat is being delivered to all outlets. • Check the filter and change it if necessary. Keep extra filters around so you can change it during the winter season. www.iianm.org
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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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