February La Voz 10

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CREATED FOR NEW MEXICO BUSINESSES

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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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“La Voz� is the official monthly publication of the

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, CIC VP Of Membership Services Lorri Gaffney Director Of Communications Rachel Sheffield Director Of Insurance Programs Carmen Reese Porter, ACSR, CISR Director Of Education Jeff Straight, CIC, LUTCF, AAI Receptionist / Member Services Associate Renee Trujillo

2009-2010 Officers

Features

La Voz

"The Voice" of Independent Agents since 1934

Praise From the Heart

05

Check out IIANM's Customized LearnCenter

08

Catastrophic Homeowners Policy Exclusion

09

Personal Lines Pricing Shows Promise in 2010

11

Is Selling No Longer Required?

12

50th Annual Education Seminar!

15

Court Opinion Explains Decision Against FTC in Red Flag Rule Lawsuit 17 House Passes Massive Financial Services Package

19

NMM & IIANM Scholarship Golf Tournament

20

Knowing Tax Guild Lines Pays

21

Industry Tid Bits

22

Severity of Haiti Earthquake Offers Reminder of US Vulnerability

24

In Every Issue Tech Talk

06

Education Edge

26

February's Clickable Calendar

27

Odds n Ends

29

IIANM's Partners Program

30

Advertiser Index

Chair Alma Franzoy-Capron

Acuity

16

American Mining Insurance Company

08

Vice-Chair Kathy Yeager

Big "I" Professional Liability

28

Burns & Wilcox

10

Colonial General Insurance Agency, Inc.

18

Litchfield Special Risks, Inc.

04

Market Finders, Inc.

14

New Mexico Mutual

02

Secretary/Treasurer Scott Jones National Director Sam Conlee Immediate Past Chair Angela Vasquez

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Make a special effort to provide praise, to recognize extra effort and what your sales team members accomplish.

Praise From the Heart...

by Linda Richardson For many people, Valentine's Day is a day of hearts and flowers and other expressions of affection. Although we are not suggesting that you send flowers to your salespeople, all salespeople want to feel appreciated. So why not make a special effort this month to provide praise to recognize the extra effort and what your sales team members have accomplished?

Some guidelines to use when you give praise so that it inspires and encourages: • Make it genuine. Let is come from your heart.

• Make it specific. Use an example that shows your knowledge of the situation. (“Good job!” “Keep up the great work!” and other nonspecific phrases are nice for quick recognition, but these sweeping statements are not praise.)

• Show appreciation without being over the top (or you will seem insincere).

• Ask a question and listen so the salesperson can share, bask in the success, and savor it!

• Keep the spotlight on the salesperson. Don’t tell a war story about something you did that was similar.

• Showcase the salesperson — but avoid giving him/her a lot of extra work.

It’s tough out there and words of encouragement mean a lot! Prepare how you will give praise and find something to praise in every member of your sales team. It will do your heart and the team’s spirit good.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 5

Source: The Anderson Agency Report

e-mail files that big.

DropSend is a terrific service to use when sending large files. Using either their Web site or a downloaded client (PC or Mac), you simply create an e-mail on their form (it comes "from" you) and "attach" the file(s) you want to send. The files are uploaded to their server and they simply send a link to the recipient who can then download it. Uploads and downloads are so fast that we actually send uncompressed files. For files you send repeatedly, you can store the files on their server (that's what we do) and just click the checkboxes for the files

Four Useful Web-Based Services

you want to send.

We run several businesses (none is an insurance agency), in

DropSend is free for Lite users, and inexpensive for heavier

several industries, out of our 11-person, home-based busi-

needs. We use the Pro version for $19/month, to send both

ness. Technology plays a big part in allowing us to do so much

files and file folders. One particularly useful feature for us is

work so efficiently.

notification when the recipient downloads the file.

In this article, the first in a series, we'll explore some of the Web-based services that we use on a daily basis. Although your business is undoubtedly different, some of these might be

2. Email Finder—Reverse directory lookup of e-mail addresses

useful to you.

1. DropSend—Sending large files We produce leads for clients in several industries. In some cases, such as recruiting life and annuity agents, good leads are worth up to $50 each. At that price point, it's worthwhile to fill in any missing data manually. Often, however, all we're starting with is an e-mail address from someone responding to an offer. That's enough to fulfill the offer, but our clients want more. Our first step is always to do a Google search for the Most e-mail systems limit attachments to a few megabytes

e-mail address, and it often turns up on a Web site or some

in size. We're in the list business, as many of you know from

indexed list that has the full information.

UltimateInsuranceLinks.com and UltimateInsuranceLists.com.

We send many large files daily. Our list of 60,000 agencies

If Google fails, Plan B is to look it up with Email Finder. This is

cross-referenced to 100 carriers they represent, for example,

an inexpensive paid service, which is just under $25/year for

is 25MB and the database of all licensed California contrac-

unlimited searches. It paid for itself with the very first search

tors, with WC and GL policy data, is 100MB. You just can't

I did. Although it does provide quite a few other services, we

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Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

use the basic e-mail search as many as 20 times a day. Realistically, at least for us, it is successful about half the time, but

4. Google Voice—Free phone number, with extensive features

that's great. When it does find the information, it almost always comes back with the name, address, and often the phone

I'm not available for phone calls

number.

before 9 a.m. PST, which means no morning sales calls from the East coast. My salesman is in

3. CheckComposer—Lets your clients fax their checks to you for faster payment

Pennsylvania and, between his kids and sports coaching, usually isn't available after 5 or 6 p.m.

EST, which means no afternoon

We're happy to receive payments from

sales calls from the West coast.

our clients any way they want to send

And there's just the two of us, so how do we back each other

them: cash (never), PayPal (increasing),

up if one of us is on the phone? We solved that dilemma with

credit cards (98%), and checks. Checks

Google Voice.

are the slowest, however, so we never say the word "check." We say "check-

Google Voice is a free service from Google. They give you a

by-fax." In fact, we have a check-by-fax authorization built

free telephone number, in virtually any U.S. area code, as long

into every invoice, in addition to our credit card authorization

as you have at least one real phone (landline or mobile). They

form. The customer writes the check, completes and signs the

have extensive features, including voicemail, logs of every call,

authorization form, tapes the check where indicated, and faxes

amazingly accurate transcription, and more. The key feature

it to us.

for us is the option to have the call ring simultaneously on multiple phones. Our Google Voice number is the only sales

CheckComposer is the Web service we use to actually cre-

number we show on our Web sites.

ate the check on our end. After signing up, being vetted, and putting some money in your account, you just log on. You're

Our agreement is that my salesman will answer the phone

presented with a fill-in image of a check, and you just enter the

during the first two rings, if he's available. If he's not, I'll grab it

information (routing an account number, amount, etc.) from the

on the third ring. If neither of us gets it, it automatically goes to

faxed copy of the check. If you've ever done a check like this

Google Voice voicemail. If the caller leaves a message, I get a

before, CheckComposer will remember and pre-fill it. When

notification, with a text transcription, sent to my e-mail and as

done, it creates a PDF file, and you take a sheet of blank

a text message. If there is no message, Google Voice logs the

check stock and print it.

number, and a Google search for that number invariably tells us who called.

There is no signature. Instead, there is a printed (authoritative) statement telling the bank that the signature isn't required because it has been pre-authorized. In fact, what you have created is a draft, similar to the claim drafts some of your carriers give you. In all the years I've been doing this, we've never had a check fail to be accepted by the bank.

by G. Barry Klein G. Barry Klein is a former insurance agent who maintains UltimateInsuranceLinks.com as an industry service.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 7

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Check out IIANM’s customized LearnCenter portal. he Big “I” Virtual University LearnCenter is an online education resource available to Big “I” members and non-member insurance professionals. It provides roundthe-clock access to online courses and insurance industry information with classes ranging from ACSR designation to errors & omissions, technical skills, customer service and more. The VU LearnCenter is managed by the national Big “I” office, but each state association has its own state VU LearnCenter portal with state- specific content and resources. If you haven’t seen your state association’s LearnCenter, check it out!

Individual agents must register their own accounts due to the fact that each user account registered on the VU LearnCenter is designated specifically for a single individual. Each user must have his or her unique login and ID in order to properly track individual registration information and course and exam details. For example, “Suzy Agent” would not be able to create an account under “Suzy Agent”

and then share the login credentials with “Bob Agent” and allow “Bob Agent” to receive credit for courses. Agents can follow the steps to access their state’s VU LearnCenter and can register a new account from within the LearnCenter.

Click here to download step-by-step instructions members will need to know.

Upon completion of an online course, state associations will receive a notification detailing a member agent’s progress.

The state association can then processes the continuing education credit on behalf of that individual if applicable.

For questions regarding login information user account information, e-mail logon@iiaba.net. For technical assistance with courses, please contact VU LearnCenter Support at virtualuniversity@iiaba.net. The Big “I” looks forward to growing this valuable resource in partnership with each state association.

M

Catastrophic Homeowners Policy ‘Exclusion’

ost homeowners policies provide coverage for the dwelling on the “residence premises.” The term “residence premises” is typically defined to include the dwelling “where you reside.” The question is, what happens if you no longer (or never) reside(d) there?

The cost to rebuild the average home in the United States is somewhere in the neighborhood of $250,000. For most Americans, this is by far their most valuable asset. In order to protect that asset from loss, most consumers insure the replacement cost of their homes with a homeowners policy.

Most homeowners policies cover the dwelling “where ‘you’ reside.”

According to some interpretations and courts, if ‘you’ no longer reside in the dwelling, coverage on that structure immediately terminates. If you never resided in the dwelling, coverage may never have attached. This gives rise to a number of circumstances that, if this school of thought is correct, may lead to a catastrophic coverage gap for such homeowners. This is evidenced by both court decisions and real life insurance claim denials.

For example, an elderly widow was admitted to a convalescence home to recuperate from some health problems in order to be able to return home and to self-sufficiency. Her home remained her legal address and her nonresident children cared for the home, though no one lived there during her presumably temporary stay at the health care facility.

After a few months, her home was totally destroyed by fire.

The insurance company denied the claim on the house on the basis that she did not reside there at the time of loss.

As another example, a home was damaged by Hurricane Gustav. The homeowners had temporarily vacated the premises during remodeling though they visited the premises daily. The insurer denied the claim because the insureds were not residing there at the time of loss.

cases where such denials were upheld. Our research has uncovered nine court cases that have concurred with similar claim denials (along with an equal number of judicial decisions overturning claim denials).

A nonresidency situation can arise unexpectedly due to illness or death, military deployment, foreclosures, relocations, etc. Even when it arises due to a routine sale, temporary rental, occupancy by a family member, divorce or separation, or transfer of ownership to a trust, given that there is no clear exclusion for most losses in most homeowners policies, most agents and virtually all insureds presume there is no coverage problem.

On the subject, to help agents, IIABA has developed a ‘White Paper’. The purpose of which is to explore sixteen (16) very common “nonresidency” situations, the rationale for/against coverage, and potential solutions in jurisdictions where a coverage gap is presented. It is up to the reader to decide the best course of action in remedying these types of situations.

To download the white paper and an executive summary, go to www.independentagent.com/VU or click the links below.

We encourage the use of this information to inform agents, insurers, regulators, media, and consumers, and, as warranted, to seek resolution of this potential problem.

"Where You Reside" White Paper "Where You Reside" Executive Summary

by Bill Wilson

In one other example, the purchaser of a home renovated it before moving in. During the renovations, the house suffered a six-figure fire loss. The insurance company denied the claim because the insured had never resided in the house prior to the loss.

Each of these is a real-life claim where losses to homes were denied based on a lack of residency, to the complete surprise to the insured and the agent. There is no specific exclusion for damage to a home in most homeowners policies due to a lack of residency, yet there have been court Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 9

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P&C Trends

by Veronica DeVore

Personal Lines Pricing Shows Promise in 2010

A

Rates expected to rise slightly, but environment remains competitive.

gents looking for a bright spot in contrast to the uncertain commercial lines marketplace can look to personal lines for some relief in 2010. However, pricing increases are expected to be gradual and may not be reflected in customers’ actual premium payments, many of which have been affected by increased deductibles and fewer exposures due to economic challenges.

“Many people have made changes to their policies in the last year,” says Bob Hartwig, president of the Insurance Information Institute (III). “Forty-four percent of customers have at least considered taking action that would potentially lower the cost of home and auto insurance, so what people actually pay might not go up that much.”

However, Hartwig adds that the slow reversal of some recession-year trends is a good sign on the horizon for agents; for example, generally stable gas prices have returned drivers to the roads, and new car sales are expected to increase to about 11.8 million units in 2010 from around 10 million in 2009. Overall, carriers are looking at pricing increases of 4-4.5% for auto and 2.5-3% for homeowners, with the exception of certain coastal areas.

Aaron Boyd, director of research and development at Midwest Family Mutual Insurance, says he is hoping for incremental pricing increases in personal lines so as not to burden customers still reeling from economic woes.

“These are tougher times, with more penny-pinching by families who are much more sensitive to rate increases,” Boyd says. “There is a higher propensity for people to shop around and more of a focus on price than on services.”

Smaller carriers like Boyd’s are especially reliant on the reinsurance sector and may base some pricing decisions on reinsurance rates. Boyd anticipates a reinsurance pricing increase in 2010 that he expects will be passed on to customers, largely due to the fact that catastrophe and storm retentions are going up in his area. On the whole, however, reinsurance rates were down about 6% at the Jan. 1 renewal date, and Hartwig says insurers in some regions may see less pressure on pricing as a result.

Unlike reinsurance, the economic environment affects large and small carriers equally, creating market challenges.

Currently, Boyd sees a lot of competition and over-capitalization in the personal lines marketplace that could keep the market from truly hardening in some areas; however, he also recognizes that investment income and underwriting profitability have dropped significantly in recent years, which may affect the need for rate increases. Karen Barone, agency distribution business leader for Progressive Insurance, says she is anticipating a “more rate positive” environment in 2010, but stopped short of predicting an outright hard market.

“I think the personal lines market continues to be fairly competitive,” Barone says. “Some carriers are certainly responding to increasing loss trends, particularly in liability coverages, and at the same time we’re seeing a softer market in the non-standard marketplace.”

Carla Boardman Smalling, vice president of Hickok & Boardman Insurance Agency in Burlington, Vt., says personal lines rates have been fairly stable in her area and she has not heard about significant hardening from her carriers, at least not for the first two quarters of 2010. While she is encouraged by the fact that personal lines pricing is faring a bit better than commercial, she points out that personal lines accounts tend to be smaller and do not impact agency revenue as much, even if rates go up.

Therefore, her agency’s strategy is to expand into new areas, regardless of where the market stands.

“Everyone (at the agency) is charged with expanding our sphere of influence and hitting the pavement,” Boardman Smalling says. “That’s tried and true, we have to continue to do that because nothing will replace bringing in new business.”

“Prices at the street level don’t move up and down in lock step with reinsurance, but it could increase competition for home insurance products in much of the country as the cost for reinsurance declines a bit,” he says.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 11

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Is Selling No Longer Required?

by Chris Burand

he massive advertising campaigns being run with

a business if they have enough cash or enough lenders

warlike budgets are designed to eliminate producers and

willing to lend them enough money. Serial buyers often

selling. Advertising on this level is pure marketing. No sell-

cloak the true reasons for their purchases and the quality

ing is involved. These companies' business models do not

of the deals in obscure, multi-syllable words conveying

require selling and in fact, the models are ruined if some-

euphoria has been reached. When in reality, nothing

one is selling. Revenues are made 100% through enticing

more has occurred than an exchange of money for a set

people to call a 1-800 number or visit a web site.

of assets. An analogy that fits the situation well is how men of position in Victorian England would not work or

If you had multi-millions to spend on advertising, you prob-

run businesses because it was beneath them. These

ably wouldn't worry about selling either. But I doubt any

men had their "holdings" to support them.

reader has that kind of money. So why aren't more agents selling? I am seeing more and more agencies focus on

Selling is hard work. It takes talent, bruised egos, and

marketing. They are marketing over the internet, using

resilience. Yet selling is now considered to be the lower

stealth marketing, advertising on cable television, network

calling. Marketing and buying agencies does not require

marketing, and even using the old stables of radio, newspa-

getting your hands dirty and who wants to get their

pers, and yellow pages. There is nothing wrong with mar-

hands dirty?

keting per se, but unless you have millions to spend, selling

Many producers don't. I've lost count of how many

is still required. Marketing in and of itself is not enough and

producers have asked me, "How can I make sales if I

yet, I see producer after producer and agency after agency

don't accept call-in and walk-in business?" The job of a

making no plans beyond a marketing plan.

producer is to produce, it is not to sit and wait for someone to walk through the door. Even worse is the number

Too many agencies and producers have wrongly concluded

of agency owners that also wonder how their producers

that pro-actively selling is not essential to their success.

would make a living if they actually had to walk out the

I have met many producers and agency owners who are

door and sell. These owners believe their producers

certain customers should come to them. They believe they

should be paid to sit and wait for the phone to ring.

should not have to sell clients, that it is even beneath them to sell, as if selling insurance was dirty. They believe insur-

I fail to understand why so many people in this industry

ance should not be sold, only bought. Of course, everyone

now believe it is beneath them to make a sale. Even if

wants to be paid as if they sold insurance. But if sales are

the marketing plan is sufficient to drive people to your

coming through the door because of marketing rather than

agency, someone has to close the deal. I've talked to a

selling, a producer is not worth nearly as much.

number of agents who don't believe they should even have to close the sale if someone calls the agency.

This anti-selling perspective is pervasive. I see evidence

They refuse to ask the client to sign on the dotted line,

of it nearly everywhere I turn. For example, rather than

because that is manipulative, unethical, or just dirty to

getting out and selling, many agencies buy other agen-

them. Never mind the insured needs insurance. Never

cies. The attitude that buying other businesses is a sign of

mind the customer will buy it from someone else. Never

royalty while actually selling is indicative of a low caste has

mind the price and coverage are both competitive. Never

infiltrated many agencies. But the truth is, anyone can buy

mind, hopefully, that the agency will provide superior

Page 12

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2003

service. They still won't close the deal unless the insured asks

not crutches. Most of the time, the lack of a lead list and

to sign on the dotted line.

the supposed need for a lead list is a strong indication the producer is not getting out and meeting people. At some

The cry for lead lists is another example of the unwillingness to

point, a producer has to start making the calls. At first it is

get out and sell. The best producers I've met have never relied

messy with a low success rate. But when it is done right,

on lead lists to build their books. Those were tools for them,

one thing will lead to another. A reputation will be built. A lead list will be also built by the producer. It will be a quality list, complete with the current brokers, carriers, and risk characteristics. But this is not a list that can be purchased.

It is only a list that can be built by a producer that is willing to get out and sell.

The aversion to selling is so significant that even in these tough times, many agents are not getting out to sell because it is beneath them.

The aversion to selling is so significant that even in these tough times, many agents are not getting out to sell because it is beneath them. Commercial premiums have been reduced so much, an agency today needs to sell at least 3%

more accounts than they lose just to stay even. Yet, a proactive sale is still below their status. Insurance is a product that must be sold in an insurance agency. It will not sell itself. This selling-averse environment is dangerous because when too many people believe they should not have to get out and work for a living, the business and then the industry will collapse.

Nothing is better than an insurance sale done right. The insured gets a good price, they receive great protection, and their lives and businesses are safer. The price of insurance is very cheap right now, so consumers are getting great bargains. A producer has much to be proud of with each and every sale that is done right.

Agents who accept the challenge of making a sale, who believe sales are essential, and who do not rely on crutches will find a fantastic opportunity in the many accounts that are ripe for picking. These accounts may require some tugging but if the incumbent agent feels sales are beneath him or her, once the client's initial resistance to change is overcome, the account can likely be picked with little resistance.

It's harvest time for the best!

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 13

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Legal Advocacy

By Scott Kneeland

Court Opinion Explains Decision Against FTC in Red Flags Rule Lawsuit

I

Ruling in favor of lawyers offers hope that agents won’t be included in rule.

n a highly-anticipated, written opinion to supplement an Oct. 29 oral ruling in the American Bar Association’s (ABA) lawsuit against the Federal Trade Commission (FTC), the U.S. District Court for the District of Columbia soundly rejected the FTC’s arguments that lawyers are “creditors” subject to the identity-theft regulations, commonly known as the Red Flags Rule. The similarity of services offered by lawyers and insurance agents make the argument in the ABA lawsuit relevant to agents concerned about whether the FTC will attempt to construe the Red Flags Rule as extending to their activities.

The court stated in the decision that the Fair and Accurate Credit Transaction Act of 2003 (FACT Act)–the legislation that authorized the FTC to draft the Rule–was not “created as a means of eliminating all types of identity theft, but rather to eliminate a specific kind of identity theft: identity theft in the credit industry.”

The Red Flags Rule, slated for enforcement beginning June 1, 2010, is designed to fight identity theft by requiring creditors with certain kinds of accounts to implement compliance programs to detect and prevent identity theft.

The judge concluded in the opinion that the FTC “not only seeks to extend its regulatory power beyond that authorized

by Congress, but it also untimely and arbitrarily selects monthly invoice billing as the activity it seeks to regulate.”

Although the FTC has not specifically listed everyone it considers subject to the Red Flags Rule, it has stated on its Web site that the definition of creditor covers all entities that regularly permit deferred payments for goods or services, and it specifically mentions lawyers, in addition to accountants, healthcare providers, utilities and telecommunications companies.

The inclusion of lawyers as creditors “came out of the blue,” according to the opinion, because “at no time in the rulemaking process did the [FTC] provide any indication that the definition of creditor was to include attorneys who invoice their clients.” The inclusion of lawyers as creditors was not the product of notice-and-comment rulemaking and

therefore did not include deliberation or comment from the public, the judge wrote, and it is not supported “by anything other than post hoc rationalizations.”

The court also noted that “state-level authorities have, throughout the history of our nation, regulated the conduct of attorneys, not the federal government.” The judge went onto say that “Congress does not tend to interject itself into an arena where it hasn’t generally ventured without explicit explanation hoping that the states will not notice the usurpation of their authority.” This regulation at the state level is similar to how insurance agents have traditionally been regulated and, like lawyers, insurance agents were not identified in the rulemaking process as intended to be covered by the identity theft rule.

As previously reported in Insurance News & Views, the American Institute of Certified Public Accountants (AICPA) filed a complaint against the FTC on Nov. 10 in the U.S. District Court for the District of Columbia similar to the one filed by the American Bar Association, with many of the same arguments asserted for why accountants should not be subject to the Red Flags Rule. There has been no oral or written decision issued yet in that lawsuit.

The Big “I” will continue to monitor any appeals, responses or other developments about the ABA and AICPA cases, as well as any other lawsuits/regulatory actions that may be filed about the application of the rule, and will report on anything that may affect its application to independent insurance agencies.

Each insurance agency operates differently and thus needs to assess the definitions under the rule to determine whether it must comply. The Big “I” summary of the rule is in a memo titled, “Overview of the Fair Credit Reporting Act, the Fair and Accurate Credit Transactions Act, and the Drivers Privacy Protection Act,” starting on page 10 at letter G. This memo is available to Big “I” members who log in to www.independentagent.com and select Legal Advocacy, under Memoranda and FAQs.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 17

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Professional Liability

With 2,500 active producers under contract, Colonial General operates in eight states throughout the South-West. Our offices are located in Murray, Utah and Scottsdale, Arizona.

Most of all, we pride ourselves in our friendly customer service and our ability to help our producing agents with their many insurance needs.

Please contact our Utah office for all your Transportation needs!

P.O. Box 571770, Murray, Utah 84157 Phone: (801) 562-1188 Wats: (800) 594-8900 Fax: (801) 562-2218 Toll Free Fax: (800) 332-9285

Personal Lines Department ♦

Masterpiece Company

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Standard Company

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Umbrellas

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Stand-alone Liability

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Vacant

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Seasonal

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Dwelling Fire

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Homeowners

Preferred Commercial Lines Division P.O. Box 14770 Scottsdale, AZ 85267 8475 E. Hartford Drive, Suite #100 Scottsdale, AZ 85255 Phone: (480) 991-7889 Wats: (800) 848-8860 Fax: (480) 948-1394 www.colonialgeneral.com

You will never pay a fee to access our companies.

No volume or binding contracts.

On the Hill

by Margarita Tapia

House Passes Massive Financial Services Package

L

Big “I” scores several victories in financial services overhaul bill.

ate last year, the U.S. House of Representatives passed H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009. The massive 1,300-page bill combines nine bills previously reported by the House Financial Services Committee with the intent of addressing the issues that caused the financial crisis. The package contains the following bills: 1. The Financial Stability Improvement Act 2. The Credit Risk Retention Act 3. The Corporate and Financial Institution Compensation Fairness Act 4. Over-the-Counter Derivatives Markets Act 5. Consumer Financial Protection Act 6. Private Fund Investment Advisers Registration Act 7. Investor Protection Act 8. Federal Insurance Office Act 9. Nonadmitted and Reinsurance Reform Act (previously passed by the House) Of these nine bills, the one that has the most impact on independent insurance agents is the Federal Insurance Office Act of 2009, which the House Financial Services Committee recently passed after substantial changes were made to address concerns that were raised by the Big “I” and others.

In a major win for the Big “I,” an important amendment offered during the Financial Services Committee consideration by Chairman Paul Kanjorski (D-Pa.), Rep. Travis Childers (D-Miss.) and Rep. Erik Paulsen (R-Minn.) received unanimous support. The amendment specifically excludes all agents and brokers from mandatory data collection by the Federal Insurance Office (FIO). Without this amendment, the newly created FIO would have inadvertently had the ability to require countless agents, brokers and adjusters to produce any data and information that the FIO might demand, thus it was a top priority for the Big “I.” The association applauds Reps. Childers and Paulsen, along with Rep. Judy Biggert (R-Ill.), for their work on improving the bill.

Another noteworthy bill included in the package is The Con-

sumer Financial Protection Act of 2009 which establishes a separate Consumer Financial Protection Agency (CFPA) to address consumer protection issues with financial products. The legislation would separate such oversight from financial supervision. The Big “I” worked in partnership with NAIFA, the CIAB, the company trades and individual carriers so that the business of insurance was excluded from the CFPA’s jurisdiction and is pleased that the final House language does not include insurance.

The Financial Stability Improvement Act of 2009 could also impact the insurance market as it would create a Financial Services Oversight Council with state insurance regulators having a non-voting seat on the council. This council would exercise heightened oversight of very large financial services institutions that are deemed to be systemically risky (seen as posing a systemic risk to the overall economy).

The Big “I” has worked closely with the property-casualty company trades in arguing that p-c insurers, even the largest ones, should not be considered systemically significant.

The bill also requires firms (including insurance companies) with assets of more than $50 billion to pay into a pre-event fund designed to aid in the resolution of these troubled companies designated as systemically significant.

During House floor consideration of this huge legislative package, more than 36 amendments were considered and most were adopted. The most contentious amendment was offered by Rep. Walt Minnick (D-Idaho) and would have replaced the highly-controversial CFPA with a council made up of the heads of existing banking regulators (rather than creating a new federal regulator). This amendment was strongly opposed by Chairman Frank and Democratic leadership and ultimately failed by a vote of 208-223.

The Wall Street Reform and Consumer Protection Act faces an uncertain future, as the Senate Banking Committee has yet to consider its version of the legislation with talks just underway.

Of course, the Big “I” will work with the Senate Banking Committee and other Members of the U.S. Senate as the legislation is considered in that chamber next year.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

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Golf Tournament

16th Annual Scholarship May 17th, 2010 Santa Ana Golf Club

Preparation is in progress for the New Mexico Mutual and Independent Insurance Agents of New Mexico’s 16th Annual Scholarship Golf Tournament which will be held on May 17th, 2010 at the beautiful Santa Ana Golf Club at 288 Prairie Star Road, Santa Ana Pueblo, NM 87004.

This event is designed to fund college scholarships for deserving candidates. Since we are set up as a ‘C-3’ charitable organization, your contributions are entirely tax deductible. We are asking that you contribute to this very worthwhile cause by way of monetary donations, gifts, sponsorships or participation to help us make a dream come true for a worthy nominee.

NMM & IIANM are also soliciting nominations for this years recipient. If you are interested in nominating an individual, please contact Cecil Rudd at (505) 343-2823. The scholarship will be awarded at the reception immediately following the tournament. Your participation is vital to the success of our scholarship program.

See the reverse side of this for a registration form.

Your contributions and registrations should be mailed to the address below. Registrations may be faxed to (505) 243-3367. Should you require additional information, please contact Lorri Gaffney at (505) 999-5805 or 800-621-3978 or email lorri@iianm.org.

Upon Completion of Play:

Registration Deadline: May 12th, 2010 Includes: Golf, Lunch & Dinner/Award Presentation $100/per person

Recipient Award Presentation / Dinner / Golf Awards - Special prizes for: Hole-in-One, Closest to the Pin, Longest Drive, and Numerous door prize giveaways.

Mail or fax this form to us: Click here forback Nomination Form

Click here for Registration Form IIANM Attn: Lorri Gaffney 1511 University Blvd. NE Albuquerque, NM Fax: (505) 243-3367

Tournament Details:

Registration begins at 11:30 am Pick-up box lunches at 12 noon Tee-off at 1:00 pm

L&H Trends

by Dave Evans

Knowing Tax Guidelines Pays

E

2010 laws may significantly affect agents and clients.

very New Year brings resolutions with a renewed sense of personal improvement.

But the New Year also brings changing tax preference items and exemptions. The changing amounts complicate the process from a personal income and estate tax standpoint, especially since one of the major questions for 2010 is the amount of the estate tax exemption (i.e. the threshold that can be excluded from federal estate taxes).

The 2010 tax legislation increased the amount of the exemption with the complete elimination of federal estate taxes for just this year.

In addition, because the legislation lacked 60 votes in the Senate in 2001, there is a 10 year "sunset" scenario, which means that the estate tax will revert back to the 2001 levels in 2011 without congressional intervention.

Congressional leaders have indicated they would like to permanently install the 2009 estate tax threshold of $3.5 million, with a 45% tax rate for 2010 and beyond. . It is likely that the health care reform debate has moved this issue to the back burner, but the resolution is important because it can mean millions or even billions of dollars in taxes.

In addition to the estate tax debate, 2010 also marks the last year of the 2001 income and capital gains tax cuts, also known as the Bush era tax cuts. The 2008 presidential election included a lot of debate about the appropriate level of taxation for higher earning Americans, who were defined as those earning $250,000 or more annually. Of course, that discussion pre-dated the economic turmoil, subsequent government bailouts and stimulus legislation leading to massive budget deficits. Therefore, there is no certainty about next year’s income tax brackets, adding a level of complexity for business owners, insurance agents, accountants and attorneys in structuring compensation and fringe benefits packages. There seems to be consensus that income tax rates will increase in 2010, the effective level for the higher brackets

remains unclear. Capital gains and dividend income taxes will most likely revert back to the pre-Bush tax cut levels and possibly higher.

What is the best course for independent insurance agents advising their clients? First, clients may want to revisit their retirement plan strategy to determine whether they want to optimize their contribution amount amounts. A qualified retirement plan can be used as a tax advantaged method to defer current taxable income to a future date, presumably when the client is in a lower income tax bracket. Also, using family limited partnerships to freeze the value of the business and begin gifting ownership to future generations is another important opportunity for insurance agents to explore with their clients. Using life insurance to provide liquidity and funding for estate taxes should also be discussed and implemented as soon as possible. This can also begin a three-year look-back of transfers to a trust to avoid incidents of ownership in the estate. To allow plenty of time for the planning process ace, agents should not wait to initiate conversations with their customers. And don’t forget to review your own agency’s perpetuation plans to ensure you are prepared.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

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A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and issuer credit ratings of “a-” to New Mexico Assurance Company (NMAC), New Mexico Employers Assurance Company (NMEAC) and New Mexico Premier Insurance Company (NMPIC), following the recent state approval of a 100% quota share agreement between NMAC, NMEAC, NMPIC and their parent, New Mexico Mutual Casualty Company (NMMCC). The outlook assigned to all ratings is stable, and all companies are domiciled in Albuquerque, NM. The ratings of NMMCC and its other subsidiaries were affirmed in March 2009 based on the consolidated group’s solid capitalization, historically strong operating performance and its dominant market position in the New Mexico workers’ compensation market, where it is able to maintain a strong policyholder retention rate.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit: www.ambest.com/ratings.

Newly Revised Free ACT Webinar: Protecting Independent Agent Clients with Secure Email Using TLS (Transport Layer Security) Date: Thursday, February 25, 2010 Time: 1:30-2:30 PM ET ACT recommends independent agents and carriers implement TLS email encryption as a means of achieving secure email wherever possible to protect the sensitive client information being emailed between agents and carriers, such as commercial lines applications. Many carriers are already enabled with TLS and the only cost for TLS, if it is available on your inhouse or hosted system, is for the certificate. Unsecured email and attachments are like sending an open postcard through the mail. State privacy, security, and data breach laws are increasingly requiring that email transmissions including sensitive consumer information be encrypted.

ACT is hosting a newly revised, free webinar on February 25, 1:30-2:30 PM eastern time on the importance of secure email and the opportunity for independent agents to use TLS email encryption to achieve it.

Jim Rogers, Director of Distribution Technology, The

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Hartford and Tim Woodcock, President, Courtesy Computers will present this Webinar, assisted by Jeff Yates, ACT's Executive Director. The first 40 minutes of this Webinar is designed for agency business leaders and the second 20 minutes will demo TLS configuration on a 2007 exchange server.

Once implemented, TLS is transparent to the user and provides a better agent workflow than proprietary email solutions imposed by the carrier. TLS is available on most up-to-date inhouse email servers (such as Microsoft Exchange and Lotus Notes) and through many providers who host email systems for agents. It is not currently available on hosted email through hotmail and yahoo but has recently been made available on corporate versions of gmail.

Please register for the Thursday, February 25 session of the Webinar (1:30-2:30 PM eastern time) by registering at this link now: https://www1.gotomeeting.com/register/893967424 After registering you will receive a confirmation email containing information about joining the Webinar. After you logon to the Internet session, you will be able to listen to the audio through your computer headset or speakers. If you would prefer, you will also be provided with a toll number you can call to listen to the audio.

System Requirements: PC-based attendees Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista Macintosh®-based attendees Required: Mac OS® X 10.4 (Tiger®) or newer

Chuck Brown of Brown, Seligman & Thomas Insurance has been elected president of the Rotary Club of Albuquerque Del Norte. The Rotary Club of Albuquerque was chartered on June 24, 1916. Thirtyone charter members embraced the Rotary International motto of “Service Above Self”. Commitment to this principle remains the foundation of their club, now with a membership of over 250 community leaders.

Congratulations Chuck!

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Deductibility of Your IIANM Dues Dues to the Independent Insurance Agents & Brokers of America (IIABA) are not deductible as a charitable contribution but may be deductible as an ordinary and necessary business expense. To the extent that IIABA engages in lobbying, the portion of the dues that relate to lobbying expenses is not deductible as an ordinary and necessary business expense. This law was enacted in 1993, effective January 1, 1994. The non-deductible portion of dues for 2008-2009 is 17.35%.

The following is a recap of the non-deductible portion of dues for the past five years: FY 2004-05

Estimated 18.74%

Actual 17.84%

FY 2005-06

Estimated 18.51%

Actual 18.88%

FY 2006-07

Estimated 22.98%

Actual 24.93%

FY 2007-08

Estimated 25.16%

Actual 17.99%

FY 2008-09

Estimated 18.23%

Actual 17.35%

FY 2009-10

Estimated 17.72%

Should you have any questions, please give us a call at 505-843-7231.

Bond E&O Claims Two claims reported by policyholders in the E&O program administered by the Big “I” and underwritten by Westport Insurance Corp. provide important lessons for other agencies regarding the proper execution of surety bonds. In the first case, an agency producer executed a bid bond for a contractor who was bidding a large public job in an adjoining state. The contractor was awarded the job based on his low bid. The contractor with the next lowest bid complained that the agency did not have the corporate license in that state and therefore did not have the authority to issue the bond. The public officials agreed and withdrew the award from the first contractor, who then threatened to sue the agency for the amount of profit it had expected to earn from the job plus additional damages for “loss of reputation.” Westport settled the claim by paying the contractor $262,000 and the agency reimbursed it’s 25,000 deductible.

In the second case, an agency CSR, without the power of attorney, executed a bid bond for a contractor because the agency owner was out of the office.

When the authorities noticed that the person signing the bond was not the person shown on the power of attorney, they threw out the contractor’s bid and awarded the contract to the next lowest bidder. Westport settled the claim for $177,000 and the agency reimbursed its $10,000 deductible.

If your agency handles surety bonds, establish written procedures that require: (1) bond execution only by persons holding power of attorney with the surety company; (2) oversight by a person other than the person executing the bond to double check bonds before releasing them to the contractor. Also, befor you execute a bond for a job in another state, check your agency’s licensing status in that state.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 23

Severity Of Haiti Earthquake Offers Reminder Of U.S. Vulnerability To Same Type Of Natural Disaster

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Even in California, Few Have Earthquake Coverage for U.S. Property Losses

he potential cost of U.S. earthquakes has been growing because of increasing urban development in seismically active areas and the vulnerability of older buildings, which may not have been built or upgraded to current building codes.

Compounding this problem is the fact that the vast majority of homeowners living in seismic zones do not purchase earthquake insurance, according to the Insurance Information Institute (I.I.I.). In fact, only 12 percent of California homeowners have earthquake coverage.

Earthquakes and Insurance Earthquakes are not covered under standard U.S. homeowners or business insurance policies. Coverage is usually available for earthquake damage in the form of a supplemental policy to homeowners or business insurance.

Standard homeowners and business insurance policies may, however, cover losses from a fire following an earthquake, which would include additional living expenses and business interruption coverage. Cars and other vehicles are covered for earthquake damage under the optional comprehensive portion of an auto insurance policy.

Earthquake insurance policies often carry a deductible, generally in the form of a percentage rather than a dollar amount. Deductibles can range anywhere from 2 percent to 20 percent of the structure's replacement value. This means that if it costs $100,000 to rebuild a home and the policy had a 2 percent deductible, the policyholder would be responsible for paying the first $2,000.

Do we have earthquakes in New Mexico?

•A magnitude 5.5 earthquake in 1966 caused $200,000 in damage to schools and other Bureau of Indian Affairs buildings on the Jicarilla Apache Indian Reservation.

•In January 1971, an earthquake caused about $40,000 of damage to the University of Albuquerque, West Mesa High School, and several shops in the Old Town area.

•In early 1989, a swarm of 34 earthquakes with magnitudes between 2.0 and 4.7 occurred near the town of Bernardo.

Dr. Stuart Northrop of the University of New Mexico compiled a list of 1,111 earthquakes felt in New Mexico between 1849 and 1975. Geologists conducting studies in New Mexico have also discovered evidence of ancient earthquakes with magnitudes as large as 7.5, although it appears that these large earthquakes do not occur very often.

Seismologists Dr. Allan Sanford, Kuo-wan Lin, and I-ching Tsai of the Geophysics Program at New Mexico Tech, have produced a series of maps showing the locations of earthquakes that occurred in New Mexico and surrounding areas between 1869 and 1998. Take a look. You may be surprised by the number of earthquakes that have occurred! The dense cluster of earthquakes in the very center of the state is related to the activity of a body of magma (molten rock) about 12 miles deep within the Earth's crust.

We can't see the magma body directly, but careful measurements and studies of the way seismic waves move through the Earth's crust has allowed seismologists to determine its location. (See below)

•Socorro has been the site of many earthquakes over the years. A December 1906 earthquake, with an estimated magnitude of 6.5, caused a significant amount of damage in the city.

Some small earthquakes in New Mexico have been triggered by human activity. Three of the earthquakes on Dr. Northrop's list were caused by atomic bomb testing and subsequent underground explosions near Carlsbad in 1961 and east of Farmington in 1967.

•Earthquakes during the summer of 1935 prompted many residents of Belen to spend their evenings sleeping outside out of fear that their houses would collapse, and three schools had to be closed in order to repair damage from falling plaster.

Some earthquakes in SE New Mexico may be related to oil and gas production.

You bet we do! Not nearly as many or as big as some other parts of the world, but New Mexicans have felt their share of earthquakes over the years. For example:

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Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

To err is human.

To get sued for it is pretty much a given.

The days of innocent mistakes are, sadly, long gone. To help protect your clients, you need an insurance company that truly understands professional liability insurance. St. Paul Travelers has provided this essential protection to real estate professionals longer than any company in the nation. To access this product through Big “I” Markets, log on to www.bigimarkets.com.

St. Paul Fire and Marine Insurance Company and its property casualty affiliates. 385 Washington Street, Saint Paul, MN 55102 © 2006 The St. Paul Travelers Companies, Inc. All rights reserved.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 25

IIANM’s

EducationEDGE Insurance Education Programs in New Mexico are critical to a successful and profitable career in the insurance industry. Every year, we offer exciting opportunities to expand your professional horizons.

All of these education programs are designed to help insurance agents thrive in the most competitive of marketplaces.

The pre-licensing classes are designed to be a review for the state licensing examination.

We recommend that students be familiar with the study material prior to attending class.

Pre-Licensing Study Materials

Pre-Licensing Classes

To see a list of what is available and to purchase your study materials online, click here.

Study materials are NOT included in class prices.

Property & Casualty Review Class (2 days)

Life & Health Review Class (1 day)

Regular Price: $150 Member Price: $120

Regular Price: $115 Member Price: $90

Instructor: Instructor:

Jack Cleary Kitty Leslie

- February 9 - 10 8am - 5pm - March 16 - 17 8am - 5pm

Instructor: Instructor:

Click here for a full listing of our education program.

Bob Ouellette - February 11 8am - 5pm Manny Mansour - March 18 8am - 5pm

The FINE PRINT: IIANM reserves the right to cancel/reschedule classes. Please call ahead to verify when classes will run. Decisions will be made three days prior to class. Cancellations received after 5 business days, will be assessed a $50.00 cancellation fee. Cancellations received on or after deadline and ‘no shows’ will forfeit the registration fee altogether. A substitute is always welcome, with no extra fee, but prior notification would be appreciated.

Class Name/Date: Full Name:

Method of Payment:  Bill Agency (Members Only)

First Name for Badge:

 Check Enclosed (Payable to IIANM)

Agency / Company:

 M/C  Visa  Disc  Amex

Address:

Amount:

(all prices include tax)

Card No:

City, State, Zip:

Exp. Date:

Telephone: ( Fax: (

)

Signature:

E-Mail:

)

Send in your registration:

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Go on-line: www.iianm.org or E-mail: jeff@iianm.org

Give us a call: (505) 843-7231 (800) 621-3978

Mail in: 1511 University Blvd. NE Albuquerque, NM 87102

Fax in: (505) 243-3367

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

February's Clickable Calendar - Click on a class to register online -

Sunday

Monday

Tuesday

1

2 P&C Pre-licensing Class

CE = continuing education hours

Wednesday

Thursday

3 P&C Pre-licensing Class

Friday

4

Saturday

5

6

L&H Pre-licensing Class

ce i f f O ed s Clo 14 15

9

10

11

12

13

16

17

18

19

20

22

23

24

25

26

27

7

21

8

Classifieds

28 Where Will You Find Your Next Great Hire?

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

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

The staff at IIANM knows that “Teamwork Makes Us Stronger” and we want to help all interested individuals find that perfect fit.

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

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

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Page 27

You’re an independent agent.

Who’s got your back?

The Big “I” Professional Liability Program Protect.

Prevent.

Prosper.

Our risk management resources keep your agency from making common preventable mistakes.

Our superior coverage through Swiss Re and our expert claims teams are in your corner in the event of a claim.

When you know you have the best agency E&O protection, you can focus on growing your most important asset–your business.

The Big “I” and Swiss Re are jointly committed to providing IIABA members with leading edge agency E&O products and services. The IIABA and its federation of 51 state associations endorse Swiss Re’s comprehensive professional liability program.

www.independentagent.com/EO

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas.

Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. ©2008 Big “I” Advantage, Inc. and Swiss Re

Odds n Ends

Feb 13-14 - Friends and Lovers Valentine’s Rally, Rio Rancho, NM. Valentine’s Day weekend balloon rally includes about 100 balloons in ascent, weather permitting. North of Northern Boulevard and east of Unser Street.

(505) 818-8088; hotairballooning.org

Baby, put your red dress on

What attracts men to certain women? Apparently the color red is enough to do the trick.

In research on the relationship between color and human behavior, a University of Rochester study has revealed the impact color can have on men without their awareness.

Do S ku Vale nks ce l ntin e’s ebrate Day Sur ? e, th ey a re s cen t-im e

ntal

!

In the study, the male participants looked at pictures of women who were variously framed in different colors—red, gray, green, or blue. They also viewed photos of the same women whose shirt colors had been digitally changed. In both cases, the women shown either framed in the color red or wearing the color red were rated more significantly attractive and sexually desirable by the men. Red did not increase attractiveness ratings for females rating other females. And the color did not affect how men rated women in terms of likeability, intelligence, or kindness. Males of other mammal species are also known to be attracted to the color red, which leads researchers to believe that the aphrodisiacal effect of red may have deep biological roots.

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Two hearts beating as one A researcher at the Institute of HeartMath in Boulder Creek, Calif., investigated what happens to longtime couples’ hearts as they sleep. Heart-rate monitors showed that while slumbering beside each other, the individuals’ heart rhythms fell into sync. When EKG printouts of a couple’s heart rates were placed on top of each other, the printouts looked virtually identical.

a very special thank you to iianm’s partners The following companies have committed to support IIANM events throughout the year:

Diamond New Mexico Mutual is the state’s expert in workers’ compensation insurance and the preferred provider of the Independent Insurance Agents of New Mexico. New Mexico Mutual is recognized as an industry leader in customer service, advocacy, and integrity; providing protection for employees and security for New Mexico’s businesses. Adding three new companies in 2009 to the Group, New Mexico Mutual provides agents a comprehensive portfolio to meet your customers’ workers’ compensation insurance needs.

Gold ACUITY, headquartered in Sheboygan, Wisconsin, is a property and casualty insurer that operates in nineteen states, writes $750 million in premium through over 900 independent agencies, and manages $2 billion in assets. The only company in the nation to be named six consecutive years to the Great Place to Work Institute’s top five mid-sized companies, ACUITY employs 850 people.

At Mountain States, we are dedicated to helping protect the assets of our policyholders by providing them with sound, affordable insurance products. We do this through an expanding network of professional independent agents. We believe in sustaining a strong chemistry with our agents and policyholders. It is our prime reason for narrowing our focus to the Mountain States/ Southwest region.

The Republic Group offers personal property, dwelling fire, personal automobile and commercial lines of insurance through independent agents primarily in Texas, Oklahoma, Louisiana, Mississippi and New Mexico.

Our companies have flexibility to offer the insurance coverage most insureds need, whether for home, automobile or business. Competitive rates and coverages are available for both standard and non-standard risks, which meet our underwriting criteria.

Travelers Insurance Company is a National Company serving the needs of our Independent Agents’ all across America, from the East Coast to the West Cost and everything in between, we offer a wide variety of Commercial and Personal Lines products. We have an intimate knowledge of all lines of insurance and can offer solutions that are truly in-synch with the needs of your customers.

Silver

Bronze Colonial General Insurance Agency

Commercial Lines/Brokerage Department Founded in 1985, Colonial General Insurance Agency, Inc. is a wholesale General Agency providing quality insurance products to the Independent Insurance Agent.

Colonial General specializes in both standard and non-standard business. Our Property and Casualty business includes:

♦

Preferred BOP

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Property

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Inland Marine

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Professional Liability

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Commercial Liability

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Workers Compensation

Avoid monthly or annual membership fees, use Colonial General for your Preferred Business Owners Policies. We have several markets available to give you the best quote possible.

For additional information contact your underwriter.

Transportation Department

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Commercial Auto

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Truckers

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Physical Damage

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Commercial Contract

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NB Mexican Truckers

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Local Radius

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Personal Lines

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Garage

♦

Intermediate Radius

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Professional Liability

With 2,500 active producers under contract, Colonial General operates in eight states throughout the South-West. Our offices are

Please contact our Utah office for all your Transportation needs!

P.O. Box 571770, Murray, Utah 84157 Phone: (801) 562-1188 Wats: (800) 594-8900 Fax: (801) 562-2218 Toll Free Fax: (800) 332-9285

More information can be found about IIANM’s Partner Program by visiting our website at iianm.org or calling Lorri Gaffney at (505) 999-5805.