11lavoz by Independent Insurance Agents of NM

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CREATED FOR NEW MEXICO BUSINESSES

New Mexico’s Experts in Workers’ Compensation Insurance 3900 Singer Blvd. NE • Albuquerque, NM 87109 • 505.345.7260 or 800.788.8851 •

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Independent Insurance Agents of New Mexico

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

iianm’s

Anniversary

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

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

On the Cover:

Celebrating 80 Years in New Mexico

This month’s iconic New Mexico locale: Petroglyph National Monument A Landscape of Symbols Petroglyph National Monument protects one of the largest petroglyph sites in North America, featuring designs and symbols carved onto volcanic rocks by Native Americans and Spanish settlers 400 to 700 years ago. These images are a valuable record of cultural expression and hold profound spiritual significance for contemporary Native Americans and for the descendants of the early Spanish settlers.

Features Become a 2015 Partner! 04 10 Tips for Effective Agency-Carrier Technology Agreements

IIANM Holiday Party Invite 08 Mark Your Calendars - Legislative Mixer

Agency Management in the 21st Century - Tips for Success

How Tenants Can Avoid Subrogation Claims

Consumers Believe a ‘Fair’ Annual Auto Premium Costs Less than $500 13 Is it Brand vs Reputation? Or Brand = Reputation?

7 Things Every CSR Needs to Know

Hacking, A Big Danger for Small Businesses

2014 Agency Universal Study: Recovery & Resourcefulness

Online or Agent Experience? In Insurance Millennials Want Both

SafeTeen New Mexico Adds Another Emmy to Collection

Congratulations to our Members Who Made the List

What to do When an E&O Indecent Occurs

In Every Issue IIANM 2014 Company Partners! 04 Tech Talk 20 October’s Clickable Calendar 28 Odds n Ends 29

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

Market Finders, Inc. 14 Molina Healthcare 18 Mountain States Insurance Group

New Mexico Mutual 02 Towerstone Insurance Services 06 Trustco / HCIT 22

e a 2015 Partner! m o c e B 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. We invite companies to experience the enormous networking, recruiting and branding opportunities presented by becoming an IIANM Corporate Partner. Our Associates Partnership program puts supporters front and center in a meaningful and memorable fashion. 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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PASSIONATE PEOPLE. UNIQUE SOLUTIONS. IF THEY’RE INJECTING “ICOWONDER INTO THOSE OIL WELLS TO

“

ENHANCE PRODUCTION AND REDUCE POLLUTION?

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

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

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

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by Ron Berg

10 Tips for Effective Agency-Carrier Technology Agreements In 2004, the Big “I” Agents Council for Technology (ACT) published recommendations for agency-carrier technology agreements regarding a wide range of issues, from data access and integrity to document retention and third-party information. Since that report’s publication, much has changed - and more developments are on the way. This led a work group of ACT volunteers to take a fresh look at carrier-agency contracts - those that incorporate technology and those that address it as a standalone topic - and to publish updated guidelines.

agreements should address access restrictions and administrative responsibilities of both parties.

Many issues the work group addressed don't get enough attention during busy day-to-day operations. It’s kind of like insurance: You don’t think about it until something happens, and then it’s the most important thing in your life. Failure of both carriers and agencies to ensure clarity on technology issues up front can lead to significant problems down the road - for them and for their customers.

Telematics. Carriers should provide agents and brokers with clear education, direction and access to available telematics-generated data and procedures to ensure responsive agency- and carrier-driven customer service.

• The ACT work group identified key overarching principles that govern agreement language and details. These include: • Addressing technology as an addendum to a broader agency agreement • Establishing the agency agreement as the controlling document • Handling data ownership and expirations in the main agency agreement and addressing retention and systems of control in the tech addendum • Ensuring negligent parties bear responsibility for resolution The group also identified 10 specific issues agency-carrier technology agreements should address: E-signatures. Significant growth in the use of e-signatures calls for clear understanding of procedures and policies, particularly around integration, characteristics of identity, consent, disclosure and audit trail. Click-through/click-wrap agreements. These on-screen license agreements are typically one-sided and “signed” only by parties against whom terms will be enforced. The work group recommends avoiding these. Single sign-on/federated IDs. As vendors implement Single Sign-On and the industry moves toward ID Federation, www.iianm.org

Data breach. It’s important to spell out notification responsibilities and incorporate “hold harmless” and other language that addresses what happens for both parties—carriers and agents—when a data breach occurs. Prompt correction of data and system errors. Either party must immediately notify the other when they find incorrect information in the system and the responsible party must make prompt corrections.

Agency agreement controlling document. Significant inconsistency currently occurs from agreement to agreement. Recommendations offer guidance on form, timing issues, duties and an array of content-related topics. Access by authorized users. Carrier policy on website access and definitions of “user” and “permitted use” must be clear, as should processes for granting access and responsibilities for misappropriation or misuse of information. Use of data by third parties. Agreements should address use of third-party information and disclosure of customer information to third parties, as well as use of click-through and click-wrap agreements for customer access. Access to data by active and terminated agencies. Agencies that terminate their agreements still need access to their data - including policy information and full activity logs. The ACT work group created a six-page document, “Summary Review of Agency Agreements for Technology Content,” which reviews these critical and emerging issues. A section for each briefly discusses how agreements should address the topic and, more importantly, offers guidance for contractual improvement. Ron Berg is executive director of ACT. This article is adapted from the ACT article “Updated Carrier-Agency Technology Agreements Recommendations.” See more at: http://www.iamagazine.com/strategies/ read/2014/10/29/10-tips-for-effective-agency-carrier-technology-agreements#sthash.2OcSbiAU.dpuf

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iianm

Independent Insurance Agents of New Mexico

2015

LEGISLATIVE MIXER February 5th, 2015 8

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MANAGEMENT

Agency Management in the 21st Century: Tips for Success

Whether you’re brand-new or a veteran manager, an accelerating digital world has presented new management issues not even on the radar a decade ago. As retirements, company restructuring and ongoing business growth continue to launch new agency leaders, common management issues will encompass everything from wrangling remote employees and flex-time workers to effectively utilizing video and telephone meetings across different time zones and emerging workforce diversity. Here are some quick tips to be an effective and supportive manager in today's digital age: 1. Manage work. Develop people. Make these principles your watchwords. 2. Give people something to work toward—not just something to work on. Be concise about corporate and department goals, values and metrics. 3. Listening is your most effective tool. Don't assume you need to step in, solve a problem or offer an opinion. After focused listening, ask, "How can I help?" The answer will guide your response. 4. Personal friendships with direct reports are best kept outside the office. Perceived favoritism can lead to ill will from other associates. 5. A structured new-employee orientation is critical for success. To engage and enlighten the new hire, a top leader should issue a personal welcome. Then assign a coordinator, review standard office protocols, utilize job shadowing throughout the company and initiate specific training. 6. Boost employee problem solving by asking these questions: "What do you think?" "What's the benefit or downside to doing that?" "How would that work?" 7. Don't send employees email or text messages at night—it adds unnecessary stress and expectations. Create a draft and send it in the morning. Everyone needs down time. 8. When an organization fails to address poor performers and substandard work, it's the top performers that leave. 9. More than six direct reports is too many. Rethink the reporting structure to create supervisors or leaders who will manage work, monitor results and report progress or gaps.

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By, Emily Huling

10. Remote workers have the same organizational responsibilities as on-site workers. Make sure certain technology provides reliable support. Keep communication open and frequent. Initiate two or three brief phone meetings a week, and include off-site workers in all staff meetings—no matter how brief. 11. Use flip charts to dramatically improve meetings, move discussions forward and assign actions. Paper is permanent and allows you to refer back to ideas. 12. When in the office, individual and upbeat morning greetings set the tone for the day. Don't leave anyone out. 13. Formally assign backup staff for all jobs at all times, not just for vacation. This encourages teamwork, ensuring completion of work and service of clients. 14. Handle sensitive issues with care. Avoid email. Meet in person and pay attention to body language. Ask another manager to be present if appropriate. 15. Don't believe what others tell you about your employees. Get proof. Observe. 16. Take the career development aspect of your role seriously. When you help others achieve their goals, they will help you achieve yours.

Emily Huling is the author of “Selling from the Inside,” “Great Service Sells,” and “Kick Your ‘But.’” See more at: http://www.iamagazine.com/ strategies/read/2014/10/03/agency-management-in-the-21st-century-tips-for-success#sthash.FQACyM13.dpuf

For All That Matters

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how tenants can avoid subrogation claims Virtual University’s Ask an Expert

ulty

VU Fac

"How does a tenant protect himself against the building owner (or the owner's carrier) who is seeking to recoup the cost of reconstruction to the building in excess of the Fire Damage Legal limit, assuming the tenant was legally liable for damage caused by fire? Do I interpret correctly that an umbrella will exclude excess coverage under the property CCC exclusion? Is the only alternative to increase the Fire Damage Legal under the primary policy to a limit equal to the replacement cost of the building? Or is the exclusion commonly deleted from an umbrella?" The bottom line is that CGL FDLL coverage just doesn't cut it anymore with regard to lease provisions. There was a time when most leases made, at worst, the tenant responsible only for fire damage to a rented building, just as rental car companies used to make renters responsible only for collision damage to a rented vehicle. TImes have changed. Today, most leases make the tenant responsible for most any damage to the building, just as rental car contracts make renters responsible for most any loss to the vehicle. And, just as more rental car companies now sell Loss Damage Waivers rather than Collision Damage Waivers, agents should look to sell coverages other than FDLL to address the exposures of tenants responsible for building damage. In addition, tenants (and landlords) should seek to include mutual waivers of subrogation in the lease agreement. Here are some observations of the VU faculty: Faculty Response It's done with a lease that provides for a waiver of subrogation or that states that the insurance taken out is for the mutual benefit of the landlord and the tenant and that each agree to only seek indemnity from the insurance promised in the lease. Faculty Response Here is how leased property should be insured, starting with the most proper technique: 1. The landlord should insure the building and pass the expense along to the tenant. Frankly, any building owner that entrusts an insurance or risk management program to the tenant is an idiot. 2. The tenant should procure direct property insurance and include the interest of the landlord. The superiority of this method compared to the next one is that it doesn’t require that the tenant be legally liable (many, if not most, leases no longer require this either). 3. The tenant should use the Legal Liability Coverage Form CP 00 40 06 07 to insure the property. This form includes not only Fire Legal Liability, but also driving a tenant’s vehicle through a wall, water damage, etc. Limits need to be adequate to address leased property values, loss of rents, etc. 4. The tenant may rely on the CGL’s Fire Damage Legal Liability coverage, including the appropriate increased limit. www.iianm.org

Realize that this is essentially a single-peril coverage for a peril that is increasingly the cause of a minority of claims. Faculty Response You could increase the “Damage to Property Rented to You” limit but this would only increase the coverage for fire damage legal liability. What if the insured damaged the property in another way, such as water damage? The insured might be able to purchase a Legal Liability property form. However, this form provides no coverage if the responsibility for damage is assumed in a lease, which it usually is. In this case, the insured would have to purchase a building property form. Can the tenant get a waiver of subrogation put in the lease? Both the CG 00 01 and the CU 00 01 exclude “property damage” to property the named insured rents or occupies. The exclusion only applies to damage to the part of the premises rented or occupied by the insured. If the insured only rents part of the building, damage to the portion of the building not rented or occupied would be covered by the CGL and umbrella. 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.

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:

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 12

El Paso • 7016 Orizaba, El Paso, Texas 79912 • Tel: 800-592-1027 • Fax: 915-532-9973

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Consumers Believe a ‘Fair’ Annual Auto Premium Costs Less Than $500

by Jacquelyn Connelly, IA Senior Editor

For a typical good driver with no accidents and no tickets, 76% of Americans believe a “fair annual cost” for state-mandated auto insurance is less than $500. The findings, from a recent national survey by ORC International commissioned by the Consumer Federation of America (CFA), also report that 40% of Americans believe the same driver should pay less than $250 a year. Those are alarming expectations for independent insurance agents who must constantly combat the myth that price is all that matters when shopping for auto insurance. But despite a plethora of coverage gaps that prove personal lines insurance is not a commodity, one demographic in particular faces a difficult choice: buy the cheapest insurance policy available, or buy no insurance at all. “Put yourself in the position of being in the lowest quintile of incomes, where the mean income is $12,000,” said J. Robert Hunter, CFA’s director of insurance and former Texas Insurance Commissioner, during a press conference this week. “If you have to pay $500 for an auto premium, that’s 4.2% of your income. If you have to pay $1,000, it’s more than 8% of your family’s income. So you can understand why you might choose to drive uninsured. It’s an economic decision: Give up your car or drive uninsured.” “For most Americans, access to the best job for which one is qualified requires the ownership of a car,” added Tom Feltner, director of financial services at the Consumer Federation of America, who noted that more than 70% of households making less than approximately $20,000 and more than 90% of those making between $20,000 and $40,000 own a car. “But in order to www.iianm.org

drive legally in all states except New Hampshire, drivers must carry at least a state-mandated level of insurance,” Feltner said. “High insurance premiums act to deny these Americans economic opportunity and also help explain why so many lower-income drivers drive without insurance.” Alongside the survey, the CFA released a report analyzing more than 80,000 auto insurance price quotes for mandatory minimum liability coverage and the affordability and accessibility of state-mandated auto insurance in low- and moderate-income (LMI) zip codes. The data provided premiums for state-mandated insurance coverage quoted to a single woman with a clerical job who rents her home, drives approximately 10,000 miles per year and has a clean driving record. According to the analysis, the lowest quote provided by the five largest insurers exceeds $500 in 30% of LMI zip codes; the average premium exceeds $500 in 87% of these zip codes; and the average premium exceeds $1,000 in 26% of these zip codes. “There are definitely zip codes where the lowest rate is below $250, but not many in the inner cities,” Hunter said. “That’s why we need a solution.” 13

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

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

Top-Tier Markets For:

Commercial / Public Auto General Liability Property / Vacants Garage / Dealers Liquor Liability Special Events Inland Marine Directors & Officers Liability Professional Liability / E&O Commercial Umbrella Watercraft / Motorcycles / ATVs Personal Umbrellas Homeowners Mobile Homes Dwelling Fire / Vacants New Mexico’s Locally Owned Managing General Agency

ESTABLISHED IN 1977

Market Finders, Inc. 14

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

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Is it Brand vs Reputation or Brand = Reputation?

In the past the term “branding” was meant to encompass how a company portrayed its image.

MARKETING

By, Ted Rubin Source: Inside CXM

It covered things like logo and other visual imaging, as well as how they marketed themselves with slogans, jingles and the like.

How the public perceived your company depended largely on how it was portrayed in whatever media you used for advertising. You controlled that message and sent it out to the masses - and hoped the messaging would stick. A company’s biggest hope in the old days of advertising was to develop a catchy, benefit-rich slogan that caught on and became synonymous with your name. Coke’s “It’s the Real Thing,” and Sprite’s “Un-Cola” messaging are good examples. But the digital age has changed everything. The whole idea of “brand” has shifted because you don’t control the message anymore. It’s no longer enough to throw a term out there and expect your prospects to blindly associate you with that term. Don’t get me wrong. Imagery is still important, but your company’s reputation is even more important because the consumer now controls the conversation around that reputation. Your customers now associate their product or service experience with your brand - the two are inextricably linked. Today’s hyper-connectivity means that how you conduct yourself is much more important than images and messaging. So what you say publicly about your company and how you interact with your customers had better be in sync, or your “brand” is toast. I’m sure you can think of more than one brand whose reputation was left in tatters because word spread that they under-served, ignored or mistreated their customers.

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All the pretty colors, nifty slogans and Super Bowl commercials don’t mean a thing if the experience you give your customers (from introduction to post-purchase satisfaction) is lousy. That means you have to shift your target to developing and improving relationships - not just messaging. Start thinking more in terms of human interaction. How can you improve it? Where can you find more opportunities to make it happen? Brands who “get” this go the extra mile to make themselves available on social channels - not just to be seen there, but to interact there. Your reputation is largely in the hands of the consumer today, and the best way to grow your interaction opportunities is via social channels. Those companies that actively seek ways to give better service, ask more questions, and look for opportunities to make the customer experience exceptional, reap the rewards of improved brand perception. So whether you’re developing a digital marketing plan or training sales representatives, don’t concentrate so much on your “Brand.” Concentrate on the two “R” words on which your brand perception is based: Relationship and Reputation. Remember that what you say about you doesn’t matter half as much as what others say about you. Make great relationships your top priority, and your reputation will build your brand.

CUSTOMER SERVICE

7 Things Every CSR Needs to Know

By, JoAnna Brandi

In my opinion, Customer Care is everyone’s business, and should be part of everyone’s job description. But in every organization there are those people – the customer facing people – whose primary responsibility it is to take care of the customer. It’s to them I am speaking today, so be sure to make sure that everyone in your organization has a chance to read this tip. It’s especially critical in these challenging times to take EXQUISITE care of the customers we have, so herewith are 7 things that I think every customer service person needs to know. 1. You chose this job, or it chose you. Either way, it’s in your best interest and the best interest of the customer for you to show up and be fully present to the job. Set an intention every day to be the best you can be at your craft. Make it a point to do a little learning about how to get better at it every day. Find joy in doing your job well. Recognize and acknowledge yourself for all the “wins” during your day. (Even if, and especially if your boss doesn’t notice often enough.) 2. Be proud of what you do. You play an important role in the company’s success. I’m here to remind you that the experiences you provide for the customer could make or break their relationship with the company. Even if parts of the process are broken, even if the wait times are long, even if the customer is upset about some aspect of the company, a great experience with a customer facing person can make up for a whole lot. You have the opportunity to make deposits in the customer’s emotional bank account and keep those customers happy. 3. You have emotional genius. Being good at customer service requires a great deal of emotional intelligence. In fact, in your job, EQ is as important – and often more important – than IQ. Here’s the neat thing – being in a people oriented position gives you the unique opportunity to practice and even perfect those EQ skills. That’s going to help you in every relationship you have in your life. As you get better at your job, you get better at your life. That’s a bonus! 4. The customer is not always right. I know you might have a little card that came from the corporate office that tells you they are, but I’m telling you what you already know to be true. They are not always right. Sometimes they are wrong, sometimes they are mean, sometimes they lie, sometimes they drive you crazy. But being right or wrong is not the point. Your job is to be so skillful that even if they are wrong, angry, nasty or just having a bad day, you have the ability to turn a bad situation into a better one. A highly skilled customer facing person is a magician, able to transform and diffuse difficult situations into good ones.

5. You work in the performing arts. Service is not like a manufactured good. It can’t be made ahead of time and put on the shelf. It happens in the moment, as needed, and it’s all about performance. That makes you the performer. Just like an actor (or a public speaker or trainer for that matter) there will be days when you just don’t feel up to it and you will have to act “as if” you were. Here’s where your good training comes in. Rehearsal and visualization work to help you prepare for a great performance every time. Think of yourself as an improv artist. Ta-da! 6. You have a stressful job, but the amount of stress you take home every day is up to you. How you view your job is just as important as how you do your job. If you allow yourself to over dramatize, ‘catastrophize’, get defensive, and take everything personally, you’re in for a tough time. Your body reacts to the perception of danger with primal instincts to fight or flee – both involving a cascade of stress chemicals that can damage your body. You have the power to change how you view any situation – including your job. Find a frame that makes it less stressful and more enjoyable. 7. You have the opportunity to make the world a better place every day. Whether you deal with 10 customers or 200 customers a day, you have the power to create positive experiences for all of them. When you make your best effort to add sincere care and appreciation to every interaction, you are infusing it with positive energy and vibration. When the customer leaves the interaction with you feeling good they are likely to spread that positive emotion. Emotions are contagious. You have the power to spread positivity and make the world a better place. We all know how important that contribution is these days. Take it seriously and you can make a serious difference in the lives of your customers and every one they touch. Allow yourself to see the ripples of good will and well being you are sending out into the world. Spread happiness and appreciation and you will feel energized. So there you have it – a short story every customer facing, customer caring person should see. Spread the word around and start a lively dialog in your organization by discussing each of the points – and perhaps by adding a few of your own. If you are looking to keep all the customer facing people in your organization motivated to stay focused on that customer – take a trial run of our Monday Morning Motivation – it’s an easy and inexpensive way to focus attention on the things that matter. It’s all about keeping the main thing (the customers) the main thing. Monday Morning Motivation Caring is contagious – please spread the word… www.iianm.org

Mountain States straight ahead. Mountain States doesnâ&#x20AC;&#x2122;t tell you how to do your business. We know thatâ&#x20AC;&#x2122;s what you do best. Our goal is to offer you flexibility and accessibility, giving your clients a direct path to the best commercial insurance products and services in the region. Happy Holidays from the entire MSIG team!

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

Arroyo Del Oso Albuquerque, New Mexico

Jemez Mountains New Mexico

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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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Hacking, A Big Danger For Small Businesses It's not just big businesses like JPMorgan Chase, Target and Home Depot that get hacked. Small companies suffer from intrusions into their computer systems, too. The costs associated with computer and website attacks can run well into the thousands and even millions of dollars for a small company. Many small businesses have been attacked - 44 percent, according to a 2013 survey by the National Small Business Association, an advocacy group. Those companies had costs averaging $8,700. JPMorgan Chase said the attack on its computer servers this summer compromised customer information from about 76 million households and 7 million small businesses. Target Corp., Michaels Stores Inc. and Neiman Marcus have also reported breaches of their computer systems in the past year, as did Home Depot Inc., whose customers include small contracting companies. Typically, businesses must have a computer expert find the source of the attack and systems have to be purged of harmful software like viruses. When websites are shut down revenue can be lost. Making matters worse, if customer data was breached, companies often must pay to notify each person or business affected. In some states, they're required to pay for credit report monitoring for customers, says Matt Donovan, head of technology insurance underwriting for the insurer Hiscox USA. In almost every state, companies must notify people when information has been breached, says Samuel Cornish, a commercial law attorney with Genova Burns Giantomasi Webster in Newark, New Jersey. Companies can also be liable for damages in lawsuits brought by customers, he says. Small businesses are particularly vulnerable to attacks because many owners believe they don't have the time and money to invest in software programs or consulting services to make systems more secure. Many businesses are ignorant of risks they face or possible solutions, says Jeff Foresman, a consultant with Rook www.iianm.org

By, Joyce M. Rosenberg, AP Business Writer Associated Press

Security, an Indianapolis-based computer security company. They may not realize an attack can happen from a seemingly harmless source. For example, a perfectly normal-looking email from a friend's computer that was attacked without the owner's knowledge could lead to trouble. "They don't know what they don't know. They don't understand the sophistication of these attacks," Foresman says. Berkeley Varitronic Systems' bank account was hacked earlier this year and $50,000 was taken, CEO Scott Schober says. He got the money back, but considers the incident a lesson. He had already invested $50,000 in security for his own systems and plans to add another $20,000. Schober believes his Metuchen, New Jersey-based company was attacked via its bank because its business is computer security. "We are a target. Thieves like to send that message," he says. No system is hacker-proof, but there steps, some of them inexpensive, businesses can take to shore up defenses and mitigate damage from attacks that get through: • Hire computer security consultants to evaluate computers and websites and suggest ways to protect them. • Buy insurance to cover financial losses. Premiums can be as low as $1,000 a year for $1 million in coverage. • Install free antivirus and anti-malware software available online. Also add firewalls, which block attempts to access, says Joe Caruso, CEO of Global Digital Forensics, a computer security company based in New York. • Make sure email is secure by using an email provider that has proper security systems, Caruso says. • Avoid having customers' credit card information stolen by using a separate company to process orders. The company should guarantee that its systems are secure. • Use a service that helps weed out fraudulent credit card transactions, says Jason Opdyke, director of online commerce for Berkeley, California-based BearExtender, which sells Wi-Fi equipment. It uses such a service to try to avoid becoming a victim of attempted fraud.

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!)

Make an Impact with Handwritten Notes “Thank you” are perhaps the two most important words you can say - especially when you say it in a handwritten note.

integration with Salesforce.com that allows you to send a handwritten note from within that platform.

Email is a very convenient way to communicate with other people quickly. However, there is something very special about receiving a handwritten note in the mail. Handwritten letters and notes carry a personal touch that typed letters or email just can’t match. When you receive a handwritten note in the mail, you know the person sending it has taken the extra time to write out that note.

Felt App This is an iPad app that allows you to write and send real, handwritten cards in the mail from your iPad. You use the felt app to compose and send the cards that can include photos. There are a number of card designs that you can select from. You just write your message with a stylus or your finger, address the envelope, and send it to Felt to print and deliver. Cards cost $4.00 each including postage. You can also pre-purchase “Felt Packs” at a discount from within the app.

However - if you’re anything like me—my handwritten notes are difficult to read. Frankly, my handwriting is just atrocious. Fortunately, there are a few services that offer to send actual handwritten notes on your behalf. Following are three different services you might check out:

Whether you use one of these services or do it the old-fashioned way, sending out handwritten thank you notes, cards, or letters will have a significant impact on your prospects and clients.

Handiemail This service allows you to send single letters of 230 words in the U.S. for $9.95. You fill out a simple form that includes your message and a real person hand writes your message on quality paper - including hand addressing the envelope with first-class postage. They also have a service that will send out multiple letters, thank you cards, or notes inserted with other material to a list of recipients. This could be a very intriguing way to send out “bulk mail” to a list of prospects that is much more personal than traditional mail merge letters. You can receive a quote based on the number of items sent and number of words within the letter. MailLift This service is designed for shorter notes and letters that you want to send out. Their Standard Service costs $5.00 per handwritten note (including the envelope) of up to 35 words. Their Business Service costs $7.00 per letter (including the envelope) of up to 50 words. They also have an

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Video Mail: A Better Way to Follow Up? There is something about seeing a person that helps make a better connection. That connection is hard to make with just text in an email. Using any type of motion in an email message to catch the recipient’s attention is a very useful tactic. Adding simple animations drives increased customer engagement. Moreover, there’s mounting evidence that a richer experience does increase engagement. That alone makes video email a technique worth exploring. Why haven’t more agencies been using it? In the past, creating and delivering video emails has been expensive and difficult to use. Newer technology has made the process much easier and less expensive. While some email clients (like Outlook) don’t allow video to play directly in an email, technology improvements have made the process of going from the email to a website to actually play the video a more seamless experience. You don’t want to include a video as an email attachment due to its large size. The file size for just a few seconds of video can easily be over 10 MB. People just won’t wait for a large file to download. That’s why using a video email service can be a huge timesaver.

Finding a video email service Following are some of the video mail service providers we are aware of: • Eyejot We wrote about EyeJot as one option for sending video emails in a December 2013 TechTips. • BombBomb • VideoEmail • RealTime Email • Mavenir • mailVU • jiveSYSTEMS Here are some features to look for when selecting a video email provider: • Video quality • Limitations of video emails • Pricing

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• • • • • • •

Storage capacity Video mail branding Mobile playback Mobile video recording Video sharing Support Provider type

Effective ways to use video mail The Digital Handshake The Digital Handshake is a strategy that involves sending a video (to view) after the sales call, so the client can put a face to your name. Read the details on how to use this technique. Customer Testimonials Getting a referral from an average human being talking on a video is more convincing than reading a block of text. For this reason alone, a video testimonial can be a great customer experience point for your agency. Find someone who has emailed you or called praising your agency. Ask them if they'd be interested in filming a short video testimonial that you can use on your site and in your emails. Give them some guidelines for length, and if necessary, provide a webcam or actually go to their office. A newer smartphone captures very adequate quality video. Tips on Saving Money, Time, and More Create a short video newsletter. Your video can feature general tips on how to save time and money on their insurance. Show your recipients that you care about making things easier for them and they'll be more receptive to your next sales push email. A Personal Thank You Message Most consumers buy plenty of products and services and never get more than an email telling them they're appreciated for their business. That's why the personal ‘Thank You’ is so effective. Have your agency owner or account executive record a brief, but heartfelt message thanking them for their business. Touch upon the economy and how much it means to your company that during hard times, they decided to spend their money with you. A little thank you can go a long way with your customers. A video email thanking them takes this concept to a whole other level. Video provides a great way to build a personal connection. Using it as a way to communicate with your clients will enhance their customer experience and set you apart from your competition.

2014 Agency Universe Study: Recovery and Resourcefulness The total number of independent agencies in the United States remains stable at 38,500, according to the 2014 Future One Agency Universe Study. The number has remained stable over the past four years, thanks in part to a slight slowdown in new agency establishment and ongoing growth in merger and acquisition activity. Key among the preliminary results from the 2014 study is the finding that 70% of agencies saw increases in both personal lines and commercial lines revenue—up 10% since the previous study. The revenue increases reflect the increase in overall industry premiums during the 2012-2013 recovery from the 20072008 recession. Small agencies were least likely to report an increase (58%) while jumbo agencies were most likely to report an increase (93%). Between 2012 and 2013, 69% of agencies reported an increase in personal lines revenue and 62% reported an increase in commercial lines revenue. This growth in revenue created a shift in the average size of independent agencies from the small to the medium-small category (less than $150,000 to $150,000$499,000, respectively): medium-small agencies now account for 57% of agencies, while the proportion of small agencies dropped to 15% of the agency population. The study also reports that smaller agencies appear to be more focused on serving specific market populations, with nearly half indicating they focus some of their marketing efforts and dollars on Gen X, millennial and Hispanic markets. This is likely to the result of ownership trends for

these smaller agencies, which tend to have one or more minority principal or one or more principals under the age of 40. But the average age of principals with 20% or more ownership in their agencies is 56 years old, with 18% of those principals age 66 or older compared to just 10% in 2012. Nevertheless, the vast majority (82%) of agencies does not anticipate a major ownership change for at least three years—and 60% do not anticipate a change for more than five years. One newer trend that emerged in 2012 reappears in the 2014 study: Market access providers continue to play a major role in independent agency business placement for agencies of all sizes and for both personal and commercial lines. Fueling the change is movement into more specialized and target markets as agencies seek industry-specific products for their niches. The Agency Universe Study, a survey of independent insurance agencies, is a cooperative effort of the Big “I” and 19 leading independent agency companies. First conducted in 1983, the study now occurs biennially to track fast-paced changes within the independent agency system. For more information about the 2014 Agency Universe Study, contact Madelyn Flannagan. In the meantime, pre-order a copy of the 2014 Future One Agency Universe Study Summary Report. More info

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Choose well and prosper.

No need to limit your selections (fortunately). Group Short Term Disability Guardian Life Insurance Company of America  Two plan op�ons for Benet dura�ons-13 weeks or 26 weeks  Guaranteed Issue available to groups of 2+ (with specic requirements being met)  Maternity Coverage Group Dental Guardian Life Insurance Company of America  Oﬀers a choice in selec�ng providers with In Network and Out of Network op�ons  Comprehensive coverage is available for Preventa�ve Services  Benets include basic services, major services and orthodon�a Group Long Term Disability Guardian Life Insurance Company of America

Group Life Insurance Guardian Life Insurance Company of America  A choice of plan op�ons  Cost-eﬀec�ve premium/payment op�ons  Coverage can be extended to spouse & children  Guaranteed Issue available to groups of 2+ (with specic requirements being met) Group Vision  Comprehensive Na�onal Network with VSP  In and out of network benets  Available to groups of 2+ We’re ready to take your order. Contact ChrisƟne Munoz at IIABA at (800) 848-4401 or chrisƟne.munoz@iiaba.net to learn more about any of these opƟons.

 Waiver of premium available  Residual disability benets  2 levels of plans available: 60% of earnings and 66 2/3% of earnings  Guaranteed Issue available to groups of 2+ (with specic requirements being met)

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INSURANCE SOLUTIONS

Online or Agent Experience? In Insurance, Millennials Want Both By, Jacquelyn Connelly advisor and information that’s readily available in an interactive Web platform. “Millennials have grown up with technology - they’ve always had easy access to information, so they’re more apt to consume the information presented to them,” Monet says. But making sure the customer in this age group “completely understands their coverage and has adequate online access to policy information are [both] significant drivers of a highly satisfying experience.”

According to the recent J.D. Power 2014 U.S. Household Insurance Study, millennials are more critical of their homeowners and renters insurance experience than any other generational group in every satisfaction category. But satisfaction levels for millennials rise to meet that of boomers when their insurance experience involves both agent and online interaction. According to Valerie Monet, director of the insurance practice at J.D. Power, nearly half of millennials have either not interacted with their insurer in the last 12 months or exclusively interacted through a digital channel. “If we compare those customers to the boomers, they’re less satisfied,” she says, adding that another 21% who have interacted exclusively through their agent or a call center report similarly low satisfaction levels. “But when millennials have interacted either through their local agent or call center and using digital channels, including email, satisfaction levels are actually on par with the boomers,” Monet says—presenting an enormous opportunity “for insurers and agents to improve satisfaction for millennials by aligning their communication and contact methods with the preferences of the customer base.” While service channel preferences continue to evolve, customers across all generations are still as satisfied interacting with their agent as they are interacting through digital channels. “The independent agent has the opportunity to serve as an advisor to the millennial, using their interaction to educate and manage customer expectations,” Monet says. That means it’s a misconception to assume Gen Y clients all want to take a hands-off, self-service and digital approach to insurance shopping. In fact, as “empowered consumers,” millennials are more satisfied with a multi-channel service approach that incorporates guidance from a trusted

So what tends to annoy or upset a millennial customer that a Gen X, boomer or pre-boomer client might be more willing to tolerate? In order to keep pace with the expectations of younger consumers, Monet says insurance organizations need to pay close attention to the latest trends in website functionality—both inside and outside the insurance industry. “Millennials are very likely to compare their experiences on an insurer’s website to other sites they’re visiting for other things,” Monet says. According to Monet, the largest contributor to the satisfaction gap between millennials and boomers is that millennials report a higher rate of problems related to their insurer’s website. “Millennials are attempting to use their insurer’s website for more complex reasons—resolving billing issues or attempting to get rate quotes,” she explains. “Millennials indicate they experience significantly more functionality issues on the insurer’s website than boomers, like the website freezing or running slowly, or having to navigate through three or more pages more frequently than boomers to find the information they’re looking for.” Striking the right balance between educating millennials and delivering digitally will be critical for insurance organizations that want to appeal to an age group that now makes up the largest proportion of homebuyers in the U.S. at 31%—a rate that “will only increase as the population matures,” Monet notes. “What makes them so important is they’re a lucrative customer segment.” Bottom line? Millennials expect your website to meet their expectations for usability and information, but they still need you. “Millennials are actually far more critical of their insurer when their agent is not involved in the claims process compared with boomers,” Monet says. “They rely heavily on the agent in their core strength of providing personal service.”

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SafeTeen Adds Another Emmy to Collection SafeTeen New Mexico added another Emmy © to its growing collection at the Rocky Mountain Emmy Awards in Phoenix last month. Last year’s documentary, Bystanders-Ending Bullying was awarded the Emmy in the category of Community Public Affairs. As always, the documentary was co-produced with Chris Schueler of Christopher Productions, who also serves as SafeTeen’s Executive Director.

After they air in primetime on a New Mexico network station, they are distributed to every school district in New Mexico for use in health classes and for community education. IIANM members may request DVD copies of the docs for free, and many of them can also be found on Comcast’s on-demand menu. For more information about SafeTeen and its programs, please visit www.SafeTeen.net or contact Thom Turbett at the Big I of New Mexico.

Congrats to our members & associates for being on the list that was just announced:

As most IIANM members are aware, the SafeTeen organization is housed at the association offices in Albuquerque and operated by staff volunteering their time. Since its founding in 2001, the organization has raised over a million dollars from generous corporate and government donors to fund its programs. Since that time, Safeteen and Christopher Productions have produced thirteen documentaries on issues affecting teens, and this year’s Emmy is the tenth to be awarded to a ST/CP produced documentary.

Albuquerque Business First 2014 list of ‘Best Places to Work’ in New Mexico: • • • • •

Menicucci Insurance Agency (Albuquerque) Reynolds Insurance (Santa Fe) Brown & Brown (Albuquerque) New Mexico Health Connections (Albuquerque) Molina Healthcare (Albuquerque) E&O HAPPENS

What to do When an E&O Incident Occurs This section examines the types of errors made that lead to E&O claims and the root problems that can cause them. Along with claims frequency data, this information offers direction on where to proactively focus your agency’s E&O risk management efforts. On the average, about 1 in 7 policyholders will report a potential claim to their E&O carrier. Although, half of those claims may be closed with no payment or loss reserve, it is very likely that your agency at some point during its lifetime will be involved in a claims situation. E&O claims happen and while some of them may truly be mistakes, others could be where the customer simply has an uncovered loss and is looking for a deep pocket when the agency performed their legal duties. Do you know what to do if an E&O incident occurs? Click on the image and print this convenient wallet card that details what you should and shouldn't do if an E&O incident should occur. All agency staff should always consider these details when responding to customers when faced with an E&O situation. Be prepared! www.iianm.org

November 2014 Sunday

Click on a class to register:

Monday

Tuesday

Wednesday

P&C Exam Review

Thursday

L&H Exam Review

Friday

Saturday

Bob Ouellette

Jack Cleary

e c i f f O osed Cl

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

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It is difficult to say what is impossible, for the dream of yesterday is the hope of today and the reality of tomorrow.

Odds ends an d

~Robert Goddard

Robots taking our jobs? ...Maybe not

News flash:

Superman violates the laws of physics

The robots are coming. Surprisingly, even though they’re replacing workers in many areas, they may not be driving down the number of jobs humans do. A survey of more than 2,000 HR and hiring pros conducted by CareerBuilder and Economic Modeling Specialists found 21 percent of employers overall (and 30 percent of those with more than 500 people in their workforce) had automated at least some jobs. However, 68 percent of the employers said that adopting new technologies had resulted in new positions being added to their organizations, and 35 percent said they had ended up hiring more people. And 35 percent of organizations that replaced workers with machines said they ultimately hired people back because the technology didn’t produce the results needed.

Co-worker driving you insane? This advice may help Not every colleague is a delight to work with. Some of your officemates may, in fact, be irritating or downright difficult to be around. If you’re not their manager, your ability to change their behavior is limited. You’re not helpless, though. You can take these steps to improve relations: • Identify the source of the problem. “Bruce drives me crazy” doesn’t give you or anyone else much to go on. Define the situation: Does he talk too much? Too little? Not do his work? Be specific. • Examine your own contribution. Are you somehow part of the problem? Maybe you’re not giving Bruce enough information, forcing him to ask questions seemingly nonstop. Be honest about your role. • Remain calm. As annoying as a co-worker might be, don’t lose your temper. Shouting or sabotaging a team member won’t solve any problems, and it will make you look unprofessional and unreliable. • Talk to the co-worker. If you can’t ignore the situation, take a deep breath and approach your colleague for a chat. Explain your problem, listen to his or her position, and work together on solutions. Most people don’t want to be viewed as pests, so chances are your co-worker will be willing to help resolve the situation peacefully. www.iianm.org

We all know that the comic book hero Superman gets his powers from the yellow of our sun; after all, his home planet of Krypton had a red sun (before the world was destroyed). But how much energy would he really need to perform his feats of derring-do?

Two University of Leicester students examined that question in a paper for the Journal of Physics Special Topics. Estimating the area of his body, the students determined that Superman would probably be able to absorb some 1,096 joules of energy per second from our sun. They then calculated that to fly for eight hours at an altitude of 30 kilometers, our hero would require 207 billion joules to overcome drag forces and gravity. That means Superman’s solar efficiency would have to reach over 600,000 percent (Earth’s best solar cells have a 44.7 percent efficiency), which indicates that he would use more energy flying “up, up, and away!” than he could get from the sun—a violation of the laws of physics (specifically, the law of conservation of energy). The students theorize that Superman must have either an alternate energy source or the ability to store up energy for future flights. Others might speculate that these guys have way too much time on their hands.

Happy Thanksgiving! Avoid stress with this advice: Thanksgiving is a time for family togetherness. Of course, sometimes too much togetherness breeds tension, stress, arguments, and the occasional blowup. Whether you’re hosting the dinner or just visiting, remember these tips staying calm and sane:

for

• Plan early • Get people involved • Mix up the guest list • Get out of the house • Take time to relax

Take your professional liability business to new heights.

PROFESSIONAL LIABILITY

At Burns & Wilcox, our expertise becomes your expertise. Whether it is cyber liability or medical malpractice, EPLI or fiduciary liability, we will ensure your clients avoid any gaps in coverage. Raise the level of your professional liability expertise with Burns & Wilcox. Albuquerque, New Mexico | 505.346.2583 toll free 866.643.8538 | fax 505.822.0092 albuquerque.burnsandwilcox.com 28