October La Voz 2009

SM

New Mexico’s Experts in Workers’ Compensation Insurance

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Five Reasons Your Customers Should Be Protected By New Mexico Mutual CREATED FOR NEW MEXICO BUSINESSES

Created by New Mexicans for New Mexicans, we are a New Mexico business ourselves and understand the diverse operations of our state’s workforce. By placing business with our company, premium dollars stay in New Mexico.

PROTECTION FOR EMPLOYEES, SECURITY FOR YOUR CUSTOMERS

We ensure that your customers‘ business investments are protected from the costs of an accidental injury as well as provide services to keep their employees safe at work.

EXCELLENT CUSTOMER SERVICE

We are a local company that understands the state and your customers’ specific needs, not a faceless 800 number. Our local team of loss prevention and claims professionals know how to take care of injured workers and provide useful and practical information to keep your workplace safe.

LEADERSHIP AND ADVOCACY FOR NEW MEXICO BUSINESSES

We are an industry leader in providing workers’ compensation data to the state of New Mexico. We represent our clients in Santa Fe by advocating legislation that protects businesses and workers, while keeping the cost of workers’ compensation insurance to a minimum.

INTEGRITY

New Mexico Mutual is recognized as one of the most ethical companies in New Mexico and we’ve earned that designation by being forthright and respecting the relationships we’ve built with our agents, clients and injured workers. We are financially strong and will be here to back your customers when they need us most.

SM

3900 Singer Blvd. NE • Albuquerque, NM 87109 505.345.7260 or 800.788.8851

www.NewMexicoMutual.com

“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

La Voz

"The Voice" of Independent Agents since 1934

Features

A Lesson in Debt Collection

05

E&O and Web 2.0 Risks - Monitoring Agency Procedures

08

The Contact Grid

10

Administration Proposes New Retirement Saving Strategies

13

To Name or Not to Name

14

Fixing Follow-Up Failures

15

The Future of Insurance Sales

16

IIANM Wins Top National Association Award

18

IIANM's 75th Annual Convention Highlights

20

Announcing IIANM's New 2010 Board of Directors

24

IIANM Staff President/CEO Thom Turbett, CIC

In Every Issue Tech Talk

06

Win an iPod Shuffle!

29

IIANM's Partners Program

29

Director Of Insurance Programs Carmen Reese Porter, ACSR, CISR

Education Edge

30

October's Clickable Calendar

31

Director Of Education Jeff Straight, CIC, LUTCF, AAI

Odds n Ends

33

VP Of Membership Services Lorri Gaffney Director Of Communications Rachel Sheffield

Receptionist / Member Services Associate Renee Trujillo

2009-2010 Officers Chair Alma Franzoy-Capron Vice-Chair Kathy Yeager Secretary/Treasurer Scott Jones National Director Sam Conlee Immediate Past Chair Angela Vasquez

Advertiser Index Acuity American Mining Insurance Company Burns & Wilcox Colonial General Insurance Agency, Inc. Litchfield Special Risks, Inc. Market Finders, Inc. NCMIC New Mexico Mutual Risk Placement Services, Inc.

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Phone: (505) 822-8711 Fax: (505) 822-1165 Toll Free: (800) 530-8711

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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 At Market Finders, Inc., our mission is to professionally provide quality specialty markets and service to the Agents of New Mexico.

Market Finders, Inc.

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Independent Insurance Agents of New Mexico - www.iianm.org - * October 2008

Agency Management

B

by Veronica DeVore

A Lesson in Debt Collection Failing to stay on top of collecting payments could lead to credit trouble.

anks have to think outside the box when lending to independent agencies; since money is constantly flowing through the agency on its way to or from insureds, there is no physical product for lenders to analyze or use as debt collateral. Instead, banks look at other key factors – such as how well the agency stays on top of collecting payments from insureds – to determine whether to extend a loan.

For Dave Wyrsch, president of the Van Dyk Group in Franklin Lakes, N.J., there is no room for negotiation when collecting from insureds. After experiencing some debt collection issues about 15 years ago, Wyrsch’s agency implemented a strict 30-day payment policy.

“Most of what we do is direct-billed now, even in commercial lines,” says Wyrsch. “We have strict policies that we adhere to, and we don’t get into situations where clients could end up owing us significant money. We review overdue policies every month and anything overdue more than 30 days is automatically canceled.”

Bob Pettinicchi, executive vice president of InsurBanc, strongly encourages agencies to adopt Wyrsch’s approach. He says an agency should never act as a bank for its clients and should do everything possible to receive all payments on time.

Setting up direct bill pay is often the easiest way to do this, if customers consent to having their payments automatically withdrawn from their accounts.

For customers who have trouble making regular payments, premium financing can provide a solution that transfers the risk of outstanding payments to a third party other than the agency.

Although it may be tempting to extend credit to customers who are in difficult financial positions,

Pettinicchi says doing so may set a precedent or continue an existing trend that can lead to trouble for the agency.

“This is an environment where credit is tight and banks aren’t willing to lend money, so why should an agency act as a bank to its clients,” says Pettinicchi. “There is some room for first time cases, but in general this is not the time to give a lot of slack or to extend credit to new clients.

The reason you have new client may be because they weren’t good with (paying) their last agent.”

Pettinicchi tells agencies that are behind on debt collection to generate a comprehensive listing of accounts receivable and review who owes what to the agency. The next step, he says, is to work to reduce the length of overdue payments and to double check accounting to make sure the numbers are accurate. Finally, a stricter collection policy may be necessary to keep the agency on sound financial footing.

Wyrsch, who regularly presents on agency errors & omissions through Swiss Re, advises agencies considering implementing stricter collection policies to, first and foremost, keep insureds informed of all developments, especially on renewals. If customers are kept in the loop, Wyrsch says, they usually understand new policies. In addition, all agency employees and producers need to know the company policy inside and out.

“It’s important that producers understand the whole system,” says Wyrsch. “As long as everyone knows the rules, it’s not too much of a problem.”

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

Page 5

Quick Screen Capture

Source: The Anderson Agency Report

Jing (by TechSmith) is a free service that allows you to instantly share images and video from your desktop. Once installed, Jing sits unobtrusively on the top of your screen waiting to capture an image of your desktop. Hover your mouse over the logo, and with one click you can activate the screen capture utility.

Google Fast Flip Google has launched a new service through its Google Labs called Fast Flip, a visual version of Google News.

Fast Flip is a visual browser of online publications, designed to give you a quick snapshot of what’s being blogged and talked about at many major news sources.

Current sources include Esquire, BBC News, New York Times, TechCrunch, and Salon.com, in addition to about 35 other magazine, news, and general information sites that receive regular updates. You can browse these by popularity, subsection, topic, or by source using Fast Flip’s new visual interface that works a little like Apple’s Cover Flow technology. Each site is represented by an image capture of the relevant page.

Clicking on a displayed page does not actually take you to the site. Instead, it opens the article in an interface that displays a portion of the article as an image file. This allows you to see a quick preview before clicking through to the full story at the site itself.

Arrows at the side of the image in Reader View allow you to browse other stories in the category you’ve chosen, and an expandable tray allows you to access the thumbnails of all stories in that series. You can also e-mail and “Like” any story you find, which requires sign-in with your Google credentials.

Is it useful? It might be for those who use the Internet as their primary news source. You can quickly see what the major news outlets are talking about without having to visit each individually. An RSS reader might be more efficient, but for people who process information visually, Fast Flip might prove more effective or more comfortable overall.

Page 6

After you select the screen area you wish to capture, you can save it to the clipboard, e-mail it, store it as a local file, or store it online at Screencast.com. Screencast.com is TechSmith's media hosting solution that Jing uses to securely host your content. It's perfect for the kind of images and videos you'll want to make with Jing. You can use Screencast.com to ensure everyone has access to a free, secure hosting option. You can upload or save your content in many other places, too! A free Screencast. com account provides you with 2 GB of storage and 2 GB of bandwidth per month.

You can download a copy of Jing at TechSmith.

Send a Text Using E-mail Whether we like it or not, text messaging is a communication option that we need to offer to clients.

You can get started by using this simple solution: Each wireless carrier offers an e-mail option that allows you to send a text message to a cell phone. The person receiving the message still has to pay for these messages—but you won't have to. To send a message, simply enter the person's phone number, along with the appropriate carrier-specific e-mail address, into the TO: field in Outlook.

The text of your e-mail will appear on the person's phone as an SMS text message. To use this method, you need to know the individual's cell phone service provider.

Below are the e-mail addresses for some of the common carriers: •Alltel: [Phone Number]@message.alltel.com •AT&T: [Phone Number]@txt.att.net •Nextel: [Phone Number]@messaging.nextel.com •Sprint: [Phone Number]@messaging.sprintpcs.com •T-Mobile: [Phone Number]@tmomail.net •Verizon: [Phone Number]@vtext.com •Virgin Mobile: [Phone Number]@vmobl.com *Note: The format for all phone numbers is 10 digits with no dashes (e.g. 2125551212).

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

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E&O and Web 2.0 Risks - Monitoring Agency Procedures

Y

Employees should be aware of the rules and disclaimers for social media.

by Sabrena Sally our producer has 200 friends on Facebook. Your CSR

care in providing professional services is no less than what ex-

has a LinkedIn account. But do your employees know

ists in more traditional venues.

the professional boundaries for social networking

The standard disclaimers used on your agency’s voice mail,

conversations?

e-mail, and Web site should also be used on social networking

Agency procedures for social networking should require employees to keep their discussions professional and they should distinguish between statements of fact versus opinion. Avoid comments that can be construed as leading or participating in attacks on either individuals or businesses.

Employees should limit their focus to a generalized discussion of an insurance topic. When a discussion becomes specific

sites. The same agency procedures your staff follows regarding risk analysis, recommendations and documentation also apply to all content and discussions on social networking sites.

The interactive features of social networks do provide unique challenges. The written procedures your agency establishes to address social networking will not only guide agency staff behavior while using these sites but will also help protect your

to an identifiable risk or individual, it is no longer appropriate

agency against allegations of errors and omissions.

for an interactive space and should be moved offline. Once moved offline, a discussion specific to an identifiable risk or individual should then move into the agency’s established

Loss control tips:

workflow process. This provides the standard servicing and

• Use standard disclaimers, such as those used in voice mail,

documentation that would occur had this discussion taken

e-mail, and on your Web site

place in person, via phone or through e-mail.

• Be clear in the agency’s procedures that established processes and workflows apply to all discussions and service focused on an identifiable risk or individual or business gener-

Loss control tips: Establish written agency procedures addressing employee use

ated through the social networking site.

Armed with an awareness of the main errors and omissions

of social networking sites, including: • Determine which agency employees have permission to participate on behalf of the agency

exposures that can arise from use of social networking sites, you are almost ready to take advantage of the opportunities presented while still protecting your agency against unexpect-

• Define acceptable behavior (professional, fact versus opin-

ed exposures. But before getting started, give careful thought

ion, no leading or participating in attacks on individuals and

to what your goals are in using these tools. Do you plan to

businesses)

use sites such as Facebook or LinkedIn as another venue

• Require that employee sites clarify that the content reflects

to advertise your agency? Or, are you considering jumping

their own views and not those of the agency • Identify when a discussion should be moved offline and into agency workflow

in with both feet and actively participating in or running an interactive discussion to generate new “fans” who can become prospects?

• State the consequences of non-compliance

Once you have decided on your goals, consult with qualified Agencies face exposure every day when rendering or failing

legal counsel. By following the advice of qualified counsel that

to render professional services. Operating in the virtual world

is specific to your planned use of these sites and by applying

of the social Web is no exception. Whether it is the advertising

the loss control tips above, you will be ready to enjoy all the

of agency services provided as part of the agency home page

benefits of social networking knowing you have taken steps to

or comments made in a chat area discussion, the standard of

mitigate the risks.

Page 8

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

www.scottsdale.burnsandwilcox.com

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Agency Management

T

The Contact Grid

he Asset Protection Model (APM) of relationship selling is tailored to every agency who desires to implement it based on the agency’s culture, level of automation, and number, type and levels of sales staff. The Contact Grid is the management system by which the agency employees manage their relationships with the clients and prospects, and the agency management controls and knows that the expected contacts are being made as scheduled. The Contact Grid is a concept that can be done manually, automated through MS Office (in Excel) or managed through one of several contact management software versions (i.e. ACT, Goldmine, etc.).

In the simplest terms, the Contact Grid is a listing of every client and prospect with notations of how often that particular client should be contacted. In the Asset Protection Model, every client should have his visitation schedule defined by his desired contact frequency, not the agency’s schedule. Then each contact should have a topic and goal of the person assigned to make the contact (Account Executive, Client Consultant, Relationship Manager, etc.). No call is ever made without an agenda or expectation of results.

The master list in date order becomes the manager’s “tickler file.” The list, sorted by responsible employee and date becomes the employee’s reminder of required personal contacts during the year. Every personal contact must be entered into the results section of the Contact Grid including the next step in the

by Al Diamond

relationship building process and showing the manager what has been accomplished. If the Contact Grid is not completed, the manager uses that omission to manage the employee and find out whether the contact was made and what happened or to remind the employee to make the contact. The Asset Protection Model permits employees to self-manage, but the manager maintains control by virtue of the “living, changing” Contact Grid.

So, if the Relationship Manager (formerly called producers under the quote/sell model) finds that a new client should be seen four times each year to maintain and advance the relationship, that client goes on the Grid for four contacts during the year. Each contact is scheduled with a topic to be discussed and a goal for the agency employee responsible for the contacts.

At the conclusion of the contact, the employee enters the “intelligence” gathered during the contact and confirms the next contact and goal. Within the APM, each contact is meant to advance the relationship by delivering a service such as an analysis of one of the client’s asset risks or a product like auditing the compliance to a federal regulation under which the client is mandated to comply – an added value for the client’s use of the agency’s services.

The purpose of Contact Grid is to provide both the employee and management a control and reminder mechanism that will contain all of the intelligence gathered on the client or prospect sorted by Name and by date, an order of progression of the relationship and a Plan of Action for what products and services to provide to that client/prospect over the next twelve months. The best APM agents add a future contact for each client/prospect as the current contact is made in order to have an on-going Rolling 12 Month Grid at all times.

The Contact Grid is just one more component of the Asset Protection Model. We isolate it in this article because many agents who find the APM too radical to implement in their agencies still find the Contact Grid a great management tool, regardless of how you manage your clients and prospects.

For more information on the Asset Protection Model, simply search the VU for that term.

Page 10

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

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

L&H Trends

by Dave Evans

Administration Proposes New Retirement Savings Strategies

P

Agents can capitalize on the government’s efforts to encourage Americans to save.

resident Barack Obama’s national television address and health care reform effort may have overshadowed his administration’s new initiative to provide incentives for Americans to save for retirement. In his weekly radio address on Sept. 5, President Obama discussed the need for people to repair their damaged retirement savings, as well as the new initiatives he is advocating to make it easier for businesses and individuals to sponsor and contribute to their savings plans.

Obama said the government will enact rules enabling automatic enrollments in individual retirement accounts (IRAs) and 401(k) retirement plans. He also proposed allowing payments for unused vacation time and sick leave to be converted into retirement savings, but how that provision would be facilitated by companies and individuals needs to be outlined in greater detail. Retirement accounts typically provide for a current tax deduction (unless it is a ROTH or after-tax IRA) and the earnings grow tax-deferred, except for the ROTH IRA which grows income tax-free, subject to the restrictions on withdrawals.

For independent insurance agents, the new savings initiatives are further indication of the government’s concern over the low savings rate in the U.S. With massive federal deficits putting pressure on Medicaid, Medicare and Social Security programs, the government is looking for ways to encourage Americans to save on their own, especially if changes occur in Social Security, such as postponing the qualification date for full Social Security benefits.

With higher marginal income taxes coming back in 2011, business owners and employees will have a greater incentive to take advantage of the tax0deductible nature of retirement programs. Still, with the number of unemployed Americans continuing to rise – the latest monthly unemployment rate is hovering near 10%– it will be difficult to get more Americans to save for retirement. Retirement programs like SIMPLE IRAs and Safe Harbor 401(k)s enable an employer to maximize individual contributions to the retirement plan by

providing a contribution of 2% or 3% (or alternatively a matching contribution of 3% or 4%) for eligible employees. The rising maximum contributions coupled with a catch-up provision of $5,500 for employees age 50 or older means employees can put aside significant money – as much as $16,500 (plus the $5500 catch-up contribution)—on a before-tax basis. With higher marginal tax rates returning, deferring taxes to retirement when the employee will presumably be in a lower tax base makes sense.

Independent insurance agents should discuss retirement needs with customers to analyze how they can best meet their savings objectives. While the latest announced changes will not take effect until 2011, employers can take advantage of the current rules to encourage employees to save. The government is trying to facilitate contributions from younger employees by promoting automatic enrollments, wherby new employees automatically contribute to a retirement account unless they opt out of it. Also, there is a great deal of focus on default elections – QDIAs – which can provide guidance to employers on suitable safe harbor types of investments. Default elections enable new participants’ account balances to be placed in the absence of investment directions. Also, because the restrictions have been lifted on rollovers from plans and IRAs, and TSAs among themselves, participants can more easily roll their retirement account balances from employer to employer and to their own IRAs. Independent agents should be sure their customers are aware of the various vehicles available for employers and employees to save for retirement.

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

Page 13

Forms & Substance

S

To Name or Not to Name?

by Bill Wilson

“Insured” as used in this Part means:

Agents wonder when to name employers on employees’ personal auto policies.

ome employers of people who use their personal autos for business want to be named as additional insureds on their employees’ personal auto policies (PAPs). However, many companies refuse to do this because they don’t want the broader exposure or the business owner has no insurable interest. Actually, there’s no need to name the business as an additional insured on the PAP, although there could be a need for a PAP endorsement similar to a “do nothing” endorsement in the business auto program.

A member agent recently brought up a scenario wherein his personal auto customer works for a large employer and uses his personal truck to travel for work. The employer wants the customer to add him as an additional insured on the personal policy, but some carriers will not comply with the request. Some carriers will only add the employer as an additional interest, and some have said they would add the employer as an additional insured. The agent wonders why some carriers would refuse to add a corporation as an additional insured since it is common practice for marketing representatives to use a personal auto for business. He also wonders how an additional interest endorsement would help the employer if he faced liability claims.

With regard to the first question, if it is regarding an ISO PAP, there is no need to add an additional insured endorsement to the policy since the employer is already covered if the company is legally liable for the employee’s negligence.

The employer is an omnibus liability insured because he meets one or more of the policy definitions:

1. You or any “family member” for the ownership, maintenance or use of any auto or “trailer.”

2. Any person using “your covered auto.”

3. For “your covered auto,” any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part.

4. For any auto or “trailer,” other than “your covered auto,” any other person or organization but only with respect to legal responsibility for acts or omissions of you or any “family member” for whom coverage is afforded under this Part. This Provision (B.4.) applies only if the person or organization does not own or hire the auto or “trailer.”

In this scenario, the employer fits the third definition of an insured for liability coverage. So, there’s no need for an endorsement and ISO doesn’t even have one for this. In addition, the agent’s second concern regarding liability is correct. An additional interest endorsement typically protects the other party’s insurable interest in the vehicle, not its liability exposure.

Aside from those questions, since the employee is using his vehicle to conduct business for the benefit of the employer, the latter should be more concerned about extending coverage to the employee under his own Business Auto Policy (BAP) by providing Symbol 1 or Symbol 9 liability coverage and by adding the employee as an insured endorsement to the BAP.

Click here to read the full article.

Page 14

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

Fixing Follow-up Failure The biggest reason agents don't write more business is because they don't follow up. If agencies fixed this one thing, they would automatically increase the number of new clients.

H

by Steve Anderson

e re is how most agencies operate: they spend the time, effort, and money to create a process that identifies potential prospects and educates them on how the agency can effectively handle their insurance. Once the prospect becomes interested, a producer (or, for smaller accounts, an inside salesperson) becomes involved and begins to work with that prospect.

What happens to all the other prospects who aren't interested right now? They fall through the cracks.

Very few agencies have an organized process for staying in touch with prospects who are not interested in buying right now. That's a shame, because those prospects will purchase an insurance product at some point in the future.

They will become interested in what you have to offer, and may buy it from you, but only if they remember you when they are ready to buy.

I have been talking about this problem since 1991 when I started to build a book of new business from scratch in the Dallas/Ft. Worth area. Part of my success was due to the fact that I created a follow-up process that worked. I created a system that printed a letter, which I signed and sent to every prospect I wanted to do business with. It was amazing to see how many appointments I obtained simply by following up Of course, technology has changed a lot since the early 90s. Systems now exist that can help you automate the process of staying in touch. Creating a system is critical because your producers can't do this by themselves. The few agencies that are creating these kinds of systems are experiencing revenue growth -- confirming that the system works, even during difficult economic times.

Your agency management system should be the platform that you use to manage this process. I have yet to find a vendor who really understands how critical a follow-up system is to agency success. Vendors, if you want to help your agency clients continue to be successful, give them the tools they need to bring in more clients.

If we are going to take back personal lines, following up will be critical. Similarly, if agencies want to increase their small commercial book, creating a follow-up process will be critical. If you want to grow, fixing follow-up failure is perhaps the most important improvement you can make.

T

The Future of Insurance Sales

he

future is extremely bleak for independent insurance agencies selling only insurance.

Geckos, cavemen, and cartoon girls will see to that.

Those companies are spending huge amounts to create sales today and to build a brand for tomorrow. No independent agency can compete on those terms.

How will independent agents attract new clients when competing against billions in advertising? Sure, there's always a few clients that have more complex needs and understand the importance of having an independent insurance agent. But every other independent agency is going to target them too. Even some insurance carriers are targeting them. In fact, only one national, multi-line carrier available to independent insurance agencies today does not go direct to the public in some fashion.

There's also those long-term clients many agents depend on for their loyalty. Many agencies have maintained good relationships for decades with ten or twenty top commercial accounts. Those ten or twenty accounts often make up a huge proportion of the agency's commercial commissions and they pay a lot of bills. Year after year, the relationship sustained the sale and the agency really did not have to bring anything extra to the table.

Times are changing though and times are much tougher now for clients, agents and brokers. The more sophisticated agents are searching for those few high quality accounts almost every agency writes. They need those accounts and many agents are bringing much more to the table than a relationship. Simultaneously, those accounts are likely suffering and they cannot afford to leave any expense and

Page16

by Chris Burand

any opportunity untouched. The long relationship counts for only so much. They may stick with the incumbent through the first and maybe the second approach. But when the agent or broker that can bring a lot of valuable services to the client proposes to them the third time, the long-time client is likely going to abandon the long relationship.

They realize they can no longer afford foregoing so much cost savings just to honor a long relationship. The losing agent may look at it like losing a spouse to someone younger and better looking, and to some extent that's what has happened.

The incumbent assumed the relationship itself would always maintain the client without realizing that it was not enough.

The incumbent has to show they are still working for the client, not just resting on the years spent together as the glue. In tough times, such glue is weak. What are you doing to pro-actively strengthen your relationships with your clients?

In the future, agents have to do more than sell policies.

Risk management services are a great example. Getting insurance to a customer at a reasonable price is not difficult, especially in this historically soft market. It is nothing special. The agency has to be special to succeed. Helping clients avoid the loss entirely rather than just helping them have adequate insurance when a loss occurs is a huge differentiating factor.

The auto companies sell safety and even Grainger, the tool company, has a risk management program for their clients.

And yet, only insurance agents can reach so many people.

Risk management is applicable even in personal lines if it is packaged and sold correctly. Thirty years ago, the old INA

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

Insurance Company sold a safety package as part of their homeowners program to help ensure the safety of children.

It was very successful. Many parents today would likely find a similar type of program, if designed well, very valuable.

Can a gecko make children safer?

By taking risk management a step further, an agent can actually increase their clients' profitability by reducing their losses. A fantastic source for understanding this strategy is Rob Ekern's book, "Consultative Brokerage: A Value Strategy," available from the National Underwriter at nationalunderwriterstore.com.

Information on risk management is readily available, often for free. Great resources include the Risk and Insurance Management Society (rims.org) and the International Risk Management Institute (irmi.com). Two sources for really gaining the upper hand in workers' compensation are the Institute of WorkComp Professionals (workcompprofessionals.com) and the WorkComp Advisory Group (theworkcompadvisorygroup.com).

Beyond the need to provide valuable services, product

knowledge is essential. The peddlers, the salespeople that really do not know what they are doing, can often beat the professional on the simple sale based on price. But when a real pro that knows coverages explains to a client the huge gaps that so many insureds have in their policies, the sale is a work of art that benefits all parties.

Simply having more product knowledge than most producers is a huge advantage. I continually find that 75%+ of all producers do not know about the huge gaps found in common policies, nor do they know that readily available solutions often exist.

The future for insurance agents just selling insurance is bleak. The future for insurance agents selling insurance and helping their clients avoid claims, increase their profitability, and obtain the coverage they really need is extremely bright and beautiful. A price must be paid though. The agency and the producer must work to learn new skills and move past the old ways of doing business. The decision is yours.

Is studying and learning and breaking old habits worth the price of success?

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

Page 17

T

IIANM Wins Top National Association Award

he Independent Insurance Agents of New Mexico has won another national award, but this one is different. It is much more prestigious because it honors not just insurance associations, but all business associations. Announced at our 75th Anniversary Convention, IIANM is the recipient of a 2009 Summit Award, the highest honor bestowed in the Associations Advance America (AAA) awards program, a national competition sponsored by the American Society of Association Executives (ASAE) & the Center for Association Leadership, Washington, D.C. We were selected over more than 250 other entrants, many of them large national associations.

The New Mexico Big I received the award for our community-service work with SafeTeen New Mexico. As most of you are aware, we helped found the SafeTeen organization and have housed the non-profit in our Albuquerque offices since 2004, utilizing donated staff time and resources to help manage it. SafeTeen is a youth-driven, community based organization whose mission is to prevent injury, death and disability resulting from poor teen choices. Their innovative in school programs have been viewed by over 85,000 students in 30 different high schools throughout New Mexico, and their award winning documentaries on youth issues have been viewed by millions on primetime television. “We are deeply honored that ASAE and the Center for Association Leadership recognizes the tremendous impact that SafeTeen has had on so many New Mexicans� said SafeTeen Executive Director Chris Schueler, who traveled to Washington DC with IIANM Chief Executive Officer Thom Turbett to help accept the award.

IIANM was one of six organizations honored this year at the Summit Awards Dinner, which was attended by almost 1000 business leaders at the National Building Museum in Washington, DC on September 29th. “IIANM’s SafeTeen program truly embodies the spirit of the Associations Advance America campaign. It is an honor and an inspiration to showcase this activity as an example of the many contributions associations are making to advance American society”, remarked John H. Graham, the Chief Executive Officer of ASAE, which is the national association for trade associations.

Now in its 19th year, the prestigious AAA Awards program recognizes associations that propel America forward—with innovative projects in education, skills training, standards-setting, business and social innovation, knowledge creation, citizenship, and community service. IIANM is the first New Mexico business association to win a Summit Award, as well as the first insurance trade association.

75th Annual Convention Highlights!

Page 24

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

We have a copy of ALL of the convention pictures on disc. If you would like for us to send you one, please send an email to rachel@iianm.org.

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

Page 23

d r a o B M N A I I 0 1 2009 - 20 meet Your new Board’s Executive Committee Directors Diana Hobbs,

Alma Franzoy

Millennium Insurance Agency

Leavitt Group SW

farmington, NM

Chair

hector baeza, sam conlee the kinney agency

leavell Insurance, inc. hobbs, NM

national director

connie sevier, western states insurance group lovington, NM

Kathy Yeager High Country Agency

gabe portillo,

vice-chair

berger briggs insurance albuquerque, NM

angela vasquez carlsbad insurance immediate past chair

scott jones brown & brown ins secretary/treasurer

adam wagoner, kysar insurance farmington, NM

heather fortner, avi risk management farmington, NM

IIANM’s 75th Annual Convention Sponsors!

4 carat level

3 carat level

NMP&C 1 carat level American Hallmark CNA Dairyland Auto FISIF of NM

2 carat level

Safeway Insurance Samba Swiss Re The Republic Group

Exhibitors

ACUITY Contact: Julia Decker

julie.decker@acuity.com

Allied Insurance Contact: Jeremiah Gudding

guddinj@nationwide.com

Allstate Workplace Division Contact: Greg Sandoval

gsandoval@allstate.com

American Reliable Insurance Co. Contact: Dan Dessenberger

dan.dessenberger@assurant.com

American Summit Ins Company Contact: Cindy Bond

cbond@natlloyds.com

Applied Systems Contact: Kyle Hammer

jkunkel@appliedsystems.com

Armed Response Team Contact: Dave Meurer

dmeurer@armedresponseteam.com

Dairyland Auto Contact: Treva Durham

treva.durham@Sentry.com

ASPN Insurance Agency Contact: Terry Schuck

moreinfo@askaspn.com

First American P&C Ins. Company Contact: Lina Sanchez

linsanchez@firstam.com

Beazley Group Contact: Valorie Kister Gilmore

valorie.gilmore@beazley.com

FirstComp Contact: JR Johnson

jrjohnson@firstcomp.com

Big “I” Advantage Contact: Carmen Reese-Porter

carmen@iianm.org

Gainsco Contact: Nicole Luciano

nicole.luciano@gainsco.com

Burns and Wilcox Contact: Travis Stuart

tastuart@burns-wilcox.com

Hallmark Insurance Company Contact: Greg Reid

sbryant@hallmarkinsco.com

Capital Premium Finance Contact: Ken Hauck

ken.hauck@capitalpremium.net

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

♦

Property

♦

Inland Marine

♦

Professional Liability

♦

Commercial Liability

♦

Workers Compensation

Transportation Department

Commercial Auto

♦

Truckers

♦

Physical Damage

♦

Commercial Contract

♦

NB Mexican Truckers

♦

Local Radius

♦

Personal Lines

♦

Garage

♦

Intermediate Radius

♦

Professional Liability

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

♦

Standard Company

♦

Umbrellas

♦

Stand-alone Liability

♦

Vacant

♦

Seasonal

♦

Dwelling Fire

♦

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

HCC Surety Group Contact: Maggie Tyndorf

mtyndorf@hccsurety.com

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.

♦

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.

Colonial General Contact: Martin Lujan

mlujan301462@comcast.net

The Hartford Contact: Jennifer Beck-Hererra

jennifer.beck-herrera@thehartford.com

Colorado Casualty Contact: Casey Dove & Crews Brandhorst

casey.dove@ColoradoCasualty.com

wilton.brandhorst@ColoradoCasualty.com

IBQ Systems Contact: Margaret Cassidy

margaret@ibqsystems.com

Cresta Contact: Bob Rich

rrich@crestains.com

Infinisource Contact: Sue Bisbee

sbisbee@infinisource.net

You will never pay a fee to access our companies.

No volume or binding contracts.

Page 26

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

InServ General Agency Contact: Glenn Moor

gmoor@inservga.com

National E&S Insurance Brokers, Inc Contact: Ross Discoll

ross@nationaleands.com

Iroquois Southwest, Inc Contact: Robert Stallings

rstallings@iroquoisgroup.com

National Lloyds Contact: Billy Page

bpage@natlloyds.com

Litchfield Special Risks, Inc Contact: Cheryl Bishop

cheryl@lsrinc.org

New Mexico Mutual Contact: Valerie Pollock

valeriep@newmexicomutual.com

Market Finders, Inc. Contact: Steve Shaffner

steve@marketfindersnm.com

New Mexico Property & Casualty Co Contact: Hugh Atwell

hugh@newmexicopc.com

Mass Mutual Financial Group Contact: Jim McDaniel

jmcdaniel@finsvcs.com

Med James Contact: Mike Klehr

klehrm@medjames.com

Metlife Auto and Home Contact: Kay Guadagnoli

kguadagnoli@metlife.com

NMP&C

New Mexico State University Contact: Al Berryman

alberry@nmsu.edu

NIF Group, Inc. Contact: Tony Kaprowski

marketing@nifgroup.com

North American Training Group Contact: Randy Lippman

rlippman@fraudeducation.com

Mexico Insurance Professionals Contact: Floyd Woods

woodsfloyd@hotmail.com

Paul Davis Restoration & Remodeling Contact: Kristi Greiner

kgreiner@pdr-usa.net

MexiPass International Ins Services Contact: Oscar Gutierrez

oscar@mexiPass.com

Philadelphia Insurance Companies Contact: Lisa Archibeque

larchibeque@philyins.com

Mountain States Insurance Group Contact: Angela Trujillo-Garcia

atrujillo-garcia@msig-nm.com

Premium Financing Specialists, Inc Contact: Chad Creamer

chad.creamer@premiumfinance.com

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

Page 27

Page 28

Pre-paid Legal & ID Theft Shield Contact: Joan Buckner

eaglesuccessteam@comcast.net

Still Solutions, Inc. Contact: Lynn Johnson

ljohnson@stillsolutions.com

Prime Insurance Contact: Barbara Malkowski

barbaram@primeis.com

Swiss Re Contact: Shirley Zelenski

Shirley_Zelenski@swissre.com

ProDigital Docs “Certs Made Simple�

Contact: Nelson Huffman

nelson.huffman@prodigitaldocs.com

Travelers Contact: Wanda Blacksher

wblacksh@travelers.com

Progressive Contact: Adam Townsend

adam_townsend@progressive.com

Trustco, Inc. / HCIT Contact: Eric Kingdon

erick@trustcoinc.com

Real Time Express Contact: David Taylor

dtaylor@combinedgroup.com

U S Risk Insurance Group, Inc Contact: Art McDevitt

artm@usrisk.com

Republic Indemnity Company Contact: David Pettycrew

davidp@ri-net.com

United Insurance Group Contact: Lynn Connelly

lynnc@uuinsurance.com

Risk Placement Services Contact: Gwen Jorgenson

gwen_jorgenson@rpsins.com

UPAC Insurance Finance Contact: Jim Coyte

paulab@upac.com

Safeco Insurance Contact: Annette Cartwright

annette.cartwright@safeco.com

Victoria Insurance Contact: Jose Chaidez

chaidej@victoriainsurance.com

Safeway Insurance Company Contact: Kris Martin

kmartin@safewayins.com

Western Pacific Ins. Network, Inc. Contact: Eric Richter

eric@wpininc.com

Seacoast Brokers, LLC Contact: Brenda Arellano

barellano@seacoastbrokers.com

Young Agents Organization of NM Contact: Mike Zambrano

mikez@newmexicomutual.com

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

From the Wild, Wild West to the Best of the Best!

IIANM Celebrates our 75th Anniversary in 2009!

We would like to invite everyone in the Association to celebrate our collective success in this endeavor, so throughout 2009, we will be announcing a number of fun and informative initiatives to commemorate this milestone year.

Every month La Voz will feature a trivia question where the answers can be located on our web site and Membership Directory.

Win Last month's WINNER!!

Maria Arellano Armstrong Coury Insurance Farmington, NM

! ! e fl f u h S an iPod

This month's trivia question is:

“Can you name all 11 of our new 2010 Board members?"

Email your answers to rachel@iianm.org by October 19, 2009.

On October 21, there will be a drawing for the winner from the correct entries.

Look out for next month issue of La Voz for your next chance to win!

HINT: If you do not have access to a hard copy of our Membership Directory, you can find it online on our site.

Look for “Member Resources”, then “Member Directory”.

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

Diamond

Silver

Bronze

Gold

More information can be found about IIANM’s Partner Program by visiting our website at iianm.org or calling Lorri Gaffney at (505) 9995805.

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

Page 29

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:

Kitty Leslie Jack Cleary

- October 13 - 14 8am - 5pm - November 10 - 11 8am - 5pm

Bob Ouellette - October 15 8am - 5pm Instructor: Manny Mansour - November 12 8am - 5pm Instructor:

Click here for a full listing of our education program.

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:

Page 30

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 - * October 2009

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

Sunday

4

Monday

5

Tuesday

12

13

18

19

20

25

26

27

Classifieds

Wednesday

6 P&C Pre-licensing Class

11

CE = continuing education hours

Thursday

7 P&C Pre-licensing Class

Friday

Saturday

1

2

3

8

9

10

15

16

17

22

23

24

L&H Pre-licensing Class

14 E&O Workshop 8 CE includes Ethics

21

28

29

30

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.

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

31

Page 31

We’re Not Your Your Typical Typical Insurance Insurance Company Company We’re Not 

Rated A+ by A.M. Best and Standard & Poor’s



Listed as the 76th largest P&C carrier, surpassing $2 billion in assets in 2009



Ranked as the most protable P&C generalist by National Underwriter in their most recent Top Prot Leaders list



Won 42 ACORD Awards for Technology in the last 8 years, more than any other carrier



Named to InformationWeek’s Top 500 Technology Companies for 5 consecutive years



Named as one of the 50 Best-Run Insurers in the Nation

by Ward Financial Group in each of the past 10 years



Only company in the country to rank in the Top 5 Employers by the Great Place to Work Institute for 6 consecutive years, including a # 1 ranking



Named as a Top 500 Employer for entry-level positions by collegegrad.com as well as a Top 50 Employer of Workers over 50 by AARP

For All That Matters