Spring 2014

Tennessee Edition/Spring 2014

Plan for

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Dedicated to the advancement of knowledge and informed opinion for the professional enlightenment and growth of the men and women of the insurance industry.

Cover Story

D epartments

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The baby boomer business owner Is retirement a requirement?

Feature

4 7 9 11 19 21 26

Update

Readers’ service & advertising index

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Officers and directors directory

In your corner Legal services Sales and marketing Your best defense Tech bit

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Stay competitive, embrace business strategies Tackling agency challenges with mobile apps

Cover design: Patty Dykeman Statements of fact and opinion in PIA magazine are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the Professional Insurance Agents. Participation in PIA events, activities, and/or publications is available on a nondiscriminatory basis and does not reflect PIA endorsement of the products and/or services.

President and CEO of PIA Management Services Inc. Mark LaLonde, CPIA, CIC, AAI, Communciation Director Mary E. Christiano, Senior Magazine Designer Sue Jacobsen, Member Information Manager Jaye Czupryna, Advertising Sales Executive Susan Newkirk.

Postmaster: Send address changes to: Professional Insurance Agents of Tennessee, 504 Autum Springs Court, Suite A-2, Franklin, TN 37067.

“Professional Insurance Agents” is published quarterly by PIA Management Services Inc. PIA Management Services, 25 Chamberlain St., P.O. Box 997, Glenmont, NY 12077-0997; toll-free (800) 424-4244; email publications@pia.org. © 2014 Professional Insurance Agents. All rights reserved.

No material within this publication may be reproduced—in whole or in part—without the express written consent of the publisher.

Spring 2014

Professional Insurance Agents/Spring 2014

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Association news PIA of Tennessee names new executive vice president

Jeff Anderson joined PIA in December as executive vice president, succeeding Brennan Paris, who joined Markel FirstComp.

“We are pleased to have executive vice president,” said PIA of Tennessee President Tina Hutsenpiller, CPIA. “Jeff’s can-do attitude will lead PIA to greater heights. The EVP Search Committee was impressed with his prior successes in the field of employee benefits, and we are confident that he will bring similar success to PIA.”

Jeff’s insurance career began in 2001, when he joined Sun Life Financial in Baltimore, Maryland as a group sales representative. Most recently, he was an account executive with Assurant Employee Benefits, working with benefits brokers in Tennessee, Mississippi and Arkansas and achieving triple-digit growth in his territory.

“I am a results-driven sales strategist,” said Anderson. “PIA has a long history working for and with independent agents, and I will continue that focus as executive vice president.”

A native of Jackson, Tenn., Jeff is a graduate of the U.S. Naval Academy, where he played football for two years and also coached. He is licensed in life and health, as well as FINRA Series 6 and 63, and he is pursuing his property/casualty licensure. He and his wife, Jennifer, reside in Franklin, and they have six children.

The PIA Partnership unveils new tool for PIA agents

A new tool designed to help independent insurance agencies achieve growth and profitability has been unveiled by PIA and its agency-company council, The PIA Partnership. “Closing the Gap– Growth & Profit” provides agents with calculators to help agencies project and plan for new business growth and profitability on a five-year basis.

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Professional Insurance Agents/Spring 2014

Agencies using this new tool begin with calculators created to project their sales and revenue, comparing various ways in which their own retention rates, premium rates and commissions factor into agency profitability. Agencies can then create “whatif” scenarios and improve their bottom-line results by adjusting factors including improved retention, increased sales goals and ramping up accountrounding activities. Then agencies are offered three turnkey approaches for use in their own agencies to achieve their goals.

Current PIA members are able to access the tool on a newly redesigned website at http://agencygrowth-profit.com.

PIA of Tennessee Annual Convention

You do not want to miss the PIA 2014 Convention and Trade Show. The convention will be Aug. 6-8 at the new Omni Hotel in downtown Nashville.

The annual convention will be packed with exciting events and a great lineup of guest speakers. Hotel information and convention registration will be available in April.

Association news Letter from PIA of Tennessee new executive vice president, Jeff Anderson

I thought that I would take a few moments to formally introduce myself to the members of this great organization, and share with you my background and my vision for where I would like to make an immediate impact. I am a native of West Tennessee, having spent most of my youth in Paris, and then Jackson, Tenn.

I received an appointment to the U.S. Naval Academy in 1990, and was inducted into the class of 1995 in July of 1991. I played football for my first two years, and then transitioned into a student coach after an injury in the spring of my sophomore year.

Upon graduation, and commissioning as an officer in the U.S. Navy, I initially entered the Supply Corps and was stationed at Naval Air Station, Keflavik, Iceland. While I was serving as the aviation support officer, I transitioned into the aviation maintenance duty officer community. I left Iceland in 1998 and reported to Jet Aircraft School in Pensacola, Fla., before reporting Jeff Anderson to Fighter Squadron 102 at Naval Air Station Oceana, Va., to be the maintenance officer for 10 F-14 Aircraft. After deployments to the Persian Gulf and Mediterranean, I decided to transition into the civilian world after completion of my service obligation in February 2001.

I have spent the past 13 years in the life/health and employee benefits insurance industry. I have been successful as a wholesale rep, sales manager and in agency development. I have enjoyed the relationships that I have developed over the years, both here in Tennessee, as well as Virginia and Maryland. I always have strived to be a student of this industry, and to be a trusted resource for the folks who I have had the opportunity to work with over the years. I think my background will help me relate and empathize with our agents as well as our company partners, because I have been on both sides of our industry.

I think this is the perfect time to be in our industry. One thing I have quickly observed on the property/casualty side of the business is how specialized and detailed this business is. I think the PIA of Tennessee has a tremendous opportunity to bring value to our members. I want our office to be the first place our members turn for answers. I want to be the trusted resource that our agents turn to when they need anything to help them grow their business. My No. 1 goal is to help both the seasoned professionals who have established books of business, as well as young agents who are just starting their journey in this business.

I also think we have to establish our organization as an advocate for partnerships, and to serve as the link between our companies and our agents. I feel it is vitally important that PIA understands the direction of our company partners, and helps match them up with the agents who can support their business. Whether it is finding the right niche markets, or profitable growth opportunities; our staff can bring the companies and agents together for a common goal—to grow each other’s business.

Now, more than ever, the PIA of Tennessee has the opportunity to step up and be the leading organization in our industry that is focused on growth. We have a history rooted in stability and are an established fraternal organization. I want to lead us into an era of growth by attracting more agents and companies that values the clarity that we will bring to the market. If we focus on providing services and business opportunities to our members, it brings different variables into the equation. We want agents and companies to have to contemplate why they are not active in our association rather than why they should join.

I look forward to meeting all of you in my travels around the state, and feel free to give me a call if you need anything at all.

On a personal note—I am married to Jennifer (Baldwin) Anderson, and we have six children, and live in Franklin, Tenn. Our children are: Noah (13), Libby (12), Chloe (12), Zoe (9), Jentry (7) and Parker (almost 3). We love going to the beach each summer and are active in sports, cheerleading and just making memories together. See you soon!

Jeff Anderson

Professional Insurance Agents/Spring 2014

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FYI Favorable market expected in 2014

The ample capacity and competition that helped temper firming of U.S. commercial insurance rates in 2013 is expected to continue into 2014, barring higher-than-expected catastrophe losses, according to a report by Marsh.

U.S. commercial property insurance prices stabilized for many organizations in 2013 as a significant surplus of capital among insurers and reinsurers kept competition high, Marsh said in its U.S. Insurance Market Report 2014.

In addition, despite average yearover-year total directors and officers liability program rate increases reaching as high as 3.6 percent in 2013, price hikes steadily lost momentum through the fourth quarter and are expected to continue softening in 2014, driven by excess insurer competition.

The casualty insurance markets also tempered in 2013, as rate increases generally were lower than had been anticipated at the beginning of the year.

This shift in the casualty markets is expected to continue in 2014, with rates generally poised to renew flat or with increases in the low single digits for insureds in desirable classes of business with good loss experience, the report notes. Employers typically experienced workers’ compensation rate increases in the low single digits in 2013 depending on program type. However, attempts by carriers to push for further rate increases in 2014 likely will be tempered by the ongoing competitive environment and by insureds differentiating their risk profiles.

Six-year high for growth, profitability in 2013

Independent insurance agents and brokers posted new highs in all three major value creation categories of the Reagan Consulting Organic Growth and Profitability survey, which began in 2008:

Median organic growth for 2013 was 6.2 percent, beating 6.1 percent for 2012.

EBITDA (earnings before interest, taxes, depreciation and amortization) margins jumped almost a point from 18.4 percent

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in 2012 to 19.3 percent in 2013. Rule of 20 scores were 16.5, while the top 25 percent of brokers all exceeded 20 for the first time.

Reagan Consulting uses the Rule of 20 to measure agency value creation.

The Rule of 20 is the sum of an agency’s organic growth rate and one-half of its EBITDA margin; if the sum equals or exceeds 20, an agency is driving strong shareholder returns.

By comparison, in 2009, brokers were shrinking organically (-1.9 percent median organic growth) and posting mid-single-digit Rule of 20 scores (6.9).

Fitch report on p/c industry

Earnings for the U.S. property/ casualty insurance industry will benefit from significant favorable loss reserve development in 2013, despite several headlines making adverse development charges from individual insurers during the year, according to a Fitch Ratings special report: Property/Casualty Loss Reserve Development–Five Insurers Carry Trend.

In the report, Fitch reviews lossreserve experience for 100 of the top U.S. p/c insurers, representing approximately 88 percent of industry aggregate loss reserves. Key findings show that while full-year 2013 reserve development modestly will exceed 2012 levels, the breadth of favorable reserve actions across companies has declined over time.

Five insurers accounted for approximately three-quarters of the favorable reserve development during the first nine months of 2013. Fitch’s analysis also reveals fewer companies in total with favorable reserve development, reduced levels of favorable reserve development among leading companies, and modestly higher levels of unfavorable reserve development relative to beginning reserves for the worst performing companies.

Fitch believes that this pattern is indicative of a weakening in the industryreserve position over time, promoting an expectation for more modest favorable reserve development reported in 2014 for the p/c insurance industry.

News to use Index: Mens’ LTC costs drop, rise for others

A recent report from the American Association for Long-Term Care Insurance, found that costs for long-term care insurance have dropped by about 15 percent for men compared to last year.

However, the price for couples rose by 7 percent. The price also rose for single women since leading insurers began charging women higher premiums in 2013.

According to the AALTCI 2014 Long-Term Care Insurance Price Index, the average cost for a 55-year-old male purchasing $164,000 of long-term care insurance protection is $925 a year.

Equal coverage for a single woman costs $1,225. A 60-year-old couple

Professional Insurance Agents/Spring 2014

each purchasing $164,000 of current protection that will grow to $730,000 combined when both reach age 80, will pay an average of $3,840 yearly.

Report on cyber threats

Apart from mitigating fast evolving malware (malicious software), Web and email content security solutions enable organizations to prevent access to inappropriate or unproductive content and monitor communications for compliance, regulatory issues or theft.

In this latest Network Security research, Frost & Sullivan surveyed 12,396 security professionals and found the top three areas of concern regarding their organization that kept them up at night: 1.) application vulnerabilities; 2.) malware; and 3.) mobile devices.

In Your Problems in claims handling Corner and reporting

Sullivan is senior partner of The Sullivan Law Group, LLP. He can be reached at (212) 695-0910.

By Robert M. Sullivan, Esq.

[Editor’s note: This is part one of a two-part article. Part one focuses on the issues that may arise when agents take on additional responsibilities regarding claims handling. Part two of the article will appear in the summer issue of PIA magazine. It will address the E&O issues associated with claims handling and possible solutions.]

Often our column discusses recent developments in the law with respect to the duty of insurance agents and brokers to procure insurance on behalf of their insureds. We utilize fact patterns contained in court cases to illustrate the legal issues and offer our “two cents” by providing some thoughts and strategies for loss control. Although we have written on the subject from time to time, one of the topics that receives less attention is the topic of claims handling at the

agency level. Recently, we gave a private seminar to one of our clients regarding the topic and, given the discussion that was stimulated by the seminar, we thought that it might be helpful to share some of the discussion with our readers. Except to the extent that we mention peculiarities in various state laws in our discussion, as a general matter our discussion is applicable to our readership in Tennessee.

Professional Insurance Agents/Spring 2014

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The legal duty regarding handling claims

As a threshold matter, it is important to understand that agents or brokers at common law have no legal duty to accept notices of claim or suit, or otherwise assist an insured in the submission and/or processing of a claim to an insurer.

As a general rule, the common law duty owed to an insured by an agent or broker is to simply procure insurance that the insured has requested and which is suitable for that insured’s needs or, advise the insured that the agent or broker is unable to procure the insurance.1 You have, I am sure, heard this in many E&O seminars over the years.

However, agents and brokers can take on an obligation regarding claims handling either by contract, which most often is the case with an agent of a company, by assumption of certain duties by express agreement with the insured or by custom and practice in dealings with the insured.

For example, because notice of claim or suit to one who is an “agent” of the company is deemed to be notice to the insurer, agency contracts will specify what the agent is to do with such notice (usually send it to the insurer’s claim department) and specify the agent’s authority (or lack thereof) with respect to handling of the claim. As noted, in the case of both agents or brokers, the duty can expand either by express representation to the insured upon which there is reliance by the insured, or by representations to the insured as to what the agent or broker will do with respect to handling of claims.

For example, if the agent or broker, in a cover letter delivering the insured’s policy, specifically directs the insured to submit notices of claim or suit to the agency or brokerage, then the firm has taken on the obligation to the insured to submit notice of the claim or suit in a proper and timely fashion to the insurer.

An agency or brokerage that represents that it is the insured’s “advocate” with the insurance company and represents that it can do such things as research gray areas of policy coverage or expedite the claims

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process, likewise can assume certain duties and obligations.

To illustrate the point, in a recent case in New York,2 an insured, a boiler company, was engaged by the purveyor of Asian foods to repair a cabbagedrying machine. Several months after the repair was made, the machine failed and caused injuries to several of the insured’s employees, one of whom died. The insured received a claim letter from a law firm advising that several of the insured employees would be filing suit against the insured. The insured’s broker sent the letter, along with an ACORD form, to a wholesaler. The wholesaler sent the letter to the insured’s primary insurer, but not the excess. Later, when the injured employees sued the insured, the insured sent the summons and complaint directly to the claims administrator for the primary insurer, bypassing the broker.

Several months thereafter, the claims administrator sent the broker a copy of the summons and complaint and inquired as to whether there was an excess policy. Upon discovering that the excess insurer had never been placed on notice of the claim, the broker again prepared an ACORD and sent the ACORD and the summons and complaint to the wholesaler, who again failed to send it to the excess insurer.

Shortly thereafter, the adjuster for the primary insurer’s claims administrator contacted the broker to inquire as to the identity of the excess insurer’s adjuster, as it appeared that the claim would exceed the primary limit. Upon learning that the excess still had not been placed on notice by the wholesaler, the broker sent the summons and complaint and ACORD directly to the insurer, who disclaimed coverage based upon late notice. The denial was upheld by the court. In addition, a separate wrongful death action was commenced by the estate of the deceased employee. The summons and complaint in that action was never sent to the broker (or the excess insurer) and the disclaimer by the excess insurer was again upheld.

In holding the broker liable for the insured’s loss of coverage, the court found that the insured routinely

Professional Insurance Agents/Spring 2014

forwarded notices of claim to the broker and the insured relied upon the broker to forward them to the appropriate insurers.

The court held that the assumption of that obligation by the broker with the consequential reliance by the insured, created a so-called “special relationship” with the insured imposing upon the broker an enhanced obligation to handle the claims with care. Here, the court found, having assumed the obligation to render notices of claim or suit to insurers on behalf of the insured, the broker was required to ensure that notice was in fact received by the appropriate insurer(s).

The broker’s error was in not following up to ensure that all insurers received proper notice and failing to monitor the claim so as to be aware when it went into suit. The broker was found liable for the insured’s loss of coverage for the suit by the injured employees. As to the wrongful death claim, there existed a question of fact as to liability since the summons and complaint was never sent to the broker.

See Hoffend & Sons Inc. v. Rose & Kiernan Inc., 7 N.Y.3d 152, 818 N.Y.S.2d 798, 851 N.E.2d 1149 (2006)(NY); Aden v. Forsch, 169 N.J. 64, 776 A.2d 792 (2001) (NJ); Dimeo v. Burns, Brooks & McNeil Inc., 6 Conn. App. 241, 504 A.2d 557 (Conn. App., 1986) cert. den.

199 Conn. 805, 508 A.2d 31 (1986)(CT); Sintros v. Haman, 148 N.H. 478, 810 A.2d 553 (2002)(NH); Weiss v. State Farm Fire & Cas. Co., 107 S.W.3d 503 (Tenn. Ct. App., 2001) (TN) 2 See Abetta Boiler & Welding Service Inc. v. American Inter’l Specialty Lines Ins. Co., 76 A.D.3d 412, 906 N.Y.S.2d 540 (1st Dept., 2010) 1

Legal Fight over certificates Services of insurance ongoing

By Matthew F. Guilbault, Esq.

Guilbault is PIA Management Services’ director of government & industry affairs.

A certificate of insurance is a document issued by or on behalf of an insurance company to a third party that has not contracted with the insurer to purchase an insurance policy. The most common type of certificate is that provided for informational purposes to advise a third party of the existence and amount of insurance issued to the named insured.1

As an agency principal, you know the processing of requests for certificates of insurance is arguably the most troublesome task performed by insurance agencies today. The task can be time-consuming and labor-intensive. If not handled properly, the process can create significant errors-and-omissions exposures for the agency. And in most agencies, even those that

issue thousands of certificates each year, the job is done without additional compensation to the agency.

Often, certificate holders request special wording or unique forms as evidence of insurance. When an agent or customer service representative prepares a special certificate form or uses special wording, the actual coverage provided by the policy may be misrepresented or obscured—either accidentally or intentionally.

And, of course, customers or certificate holders often request an urgent certificate of insurance after the work has either been started or completed, leaving no opportunity to revise the coverage for that job in time to comply with the construction agreement.

Professional Insurance Agents/Spring 2014

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So, an agent is caught between a rock (the desire to serve the client) and a hard place (the need to follow procedures designed to avoid liability, as well as laws and regulations regarding certificates of insurance).

This dilemma must be resolved in a way that minimizes E&O exposures and complies with laws and regulations, while allowing a client to maintain business relationships.

The problems posed by certificates aren’t new problems, or even confined to certain states or geographical areas (although it may be more prevalent in large municipal areas where commercial construction projects are bigger and more complex). Nor do these problems appear to be going away quickly. Despite the limited success2 PIA has had in some states convincing legislators to pass new laws regulating and restricting the use of certificates and insurance regulators issuing guidance.

As recently as 2012, the Tennessee Department of Commerce and Insurance issued a bulletin to clarify the use of certificates of insurance, which are governed by the state’s Unfair Practices and Unfair Claims Settlement Act of 2009. The act states that no document can “misrepresent the benefits, advantages, conditions or terms of any policy.” The department sent out the bulletin at the request of several insurance associations that complained that some business owners were requesting changes in their certificates that did not reflect the terms of the polices. The bulletin stated that such changes could result in an agent being subject to disciplinary action that could include a fine and a suspension of their license.

Still, in many states, there is no specific law that regulates certificates of insurance. This leaves the wording found on the standard ACORD certificate form as the only protection for insurance agents.3 This wording is critical.

Certificates of insurance must include a statement making it clear the certificate is issued for information purposes only and does not change the coverage provided by the policy. While this statement generally protects the insurance company from

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incurring liability when a certificate contains incorrect information, it has not always protected an insurance agency when an employee of the agency makes an error on a certificate. You may know how courts in your state will treat the representations made on a certificate, but certificates issued for out-of-state work may be treated differently.

Based on carrier data, E&O claims involving certificates of insurance are increasing steadily. About one in 25 E&O claims involves a certificate of insurance, with more than half of all claims arising from an error or omission by a CSR. About 75 percent of E&O claims for certificates involve a commercial general liability policy, with the next highest category being workers’ compensation at 10 percent.

The two main sources of certificate E&O claims are failure to add, or improperly identifying, additional insureds (36 percent) and misrepresenting coverage on the certificate that doesn’t actually exist (21 percent). Primarily, CSRs are responsible for the former and producers for the latter.

Often, agents fall into a routine with policyholders that frequently require certificates. In these situations, the agent can become lax in checking to make sure that the coverage hasn’t changed.

E&O claims have arisen from certificates issued on policies that have lapsed or certificates that indicate a specific type of coverage is in place when, in fact, the insured dropped it recently. This problem is more prevalent in larger agencies when the personnel issuing certificates is different from those making policy changes. It is important that the agency maintain and enforce procedures that require staff to confirm all coverages before issuing a certificate.

In one case, the agent placed a CGL policy for a contractor that had successfully bid a project with the federal government. The agent issued a certificate to the government reflecting coverages as of a certain date. Shortly thereafter, the contractor allowed its coverage to lapse due to nonpayment of premium.

Subsequently, the contractor negligently caused damage to government property

Professional Insurance Agents/Spring 2014

and the government sued the agent for failing to advise of the cancellation.

Although a certificate is intended to be snapshot of coverages as of the date of issuance, some non-ACORD certificates still do require notice of cancellation.

Since the agent had unilaterally issued the certificate, the government argued that the language created a legal duty on the part of the agent. The government also argued that certain federal regulations imposed a duty on the agent to update the certificate for the lapse of coverage.

The simplest way to avoid litigation and claims relating to the issuance of certificates is to ensure the accuracy when issued. Most often, problems arising from certificates are due to clerical errors or the failure in the case of additional insureds, to ensure that there is follow through ensuring that the policy is an additional insured (i.e., that an endorsement is issued or that a contract requiring additional insured status is executed). Treating the issuance of certificates with importance will go a long way toward avoiding problems in the future.

Allan D. Windt, Insurance Claims and Disputes, 4th ed., 2001 2 According to PIA National, only New Mexico and Montana have passed certificates legislation since NCOIL adopted their model 3 The ACORD certificates states: “This certificate of insurance neither affirmatively or negatively amends, extends, or alters the coverage afforded by any policy listed hereon.”

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Sales and The reason insurance agents Marketing fail to sell

Chapin is president at Complete Selling Inc. He can be reached at johnchapin@ completeselling.com.

By John Chapin

You can give agents all the sales skills training in the world. You can lay everything out and tell them exactly what to say and do in each and every situation and yet no amount of sales or product training will help them if they are too scared or comfortable at their job. When an insurance agent fails over the long haul, it is always a failure in activity, a failure to do the things necessary for success. The two reasons outlined below are why agents ultimately fail to do the necessary work and, in the end, fail to sell.

But, don’t worry, here are some suggestions on how an agent can become a professional, independent insurance agent.

Reason No. 1: They’re scared. At the request of an agency owner, I sat down with a producer to listen to her make some prospecting calls. He was

concerned because she hadn’t sold a single policy in five months. When she picked up the phone, she began to shake with fear. She then put down the phone and said, “I can’t, I just can’t do it! Not with you sitting here!” I offered to stand outside the door. When that didn’t work, I told her she could record the calls and I’d listen to them afterward. She then got up, marched into the agency owner’s office and said: “This isn’t going to work! I quit!”

Whatever the fear (e.g., fear of rejection, fear of being yelled at or hung up on), all fears lead to extraordinary efforts to avoid doing the things necessary to be successful. They all leave the agent frozen and unable to do what needs to be done consistently.

Reason No. 2: They’re comfortable. An agency

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owner recently said to me, “When the clock hits five, Jim runs out of the office like a scalded cat!” After asking a couple of questions, it became apparent why. Jim was fresh out of college with no student loans, he lived at home, his parents had bought him a new car and they also were paying all his bills. Jim’s base pay was $650 per week, plus benefits. That was more money than Jim had seen in his life, probably more than his buddies were making, and ultimately it was more than enough beer money. The bottom line: Jim was comfortable and he had absolutely no motivation to take on the world and chase down business. That’s why he was running out at 5 p.m., and why he had only sold one policy in six months to … you guessed it … a family member.

Strategies

Tip No. 1: Have a good working environment that is conducive to doing business and supports the agent. This includes proper incentive and recognition plans, good training, good support people and an office where other producers are producing and everyone is professional, generally happy, gets along, and everyone is treated with respect.

Tip No. 2: Have strict standards and measurements of success for each agent and that they are measured against those every 90 days. Each producer needs to have reasonable, but challenging goals and objectives. It’s also important that you create these goals and objectives with the agent and you both agree they are attainable. Agents should be pushed out of their comfort zone, but they have to believe they can do what you’re asking of them.

Tip No. 3: Each agent needs to be held accountable. You must hold their feet to the fire. If a producer does not hit his or her 90-day goals and objectives, you need to find out why, make the necessary changes and adjustments, and then review these with the agent in another 30 days to reassess how he or she is doing.

If they are not hitting their goals, look at their daily activity and determine the problem. If they are simply not doing

Professional Insurance Agents/Spring 2014

the necessary activities, you have to introduce the “fear” of losing their job if they don’t get to work. This will move most of your fearful and comfortable agents either to action or out the door.

If they don’t move, and they continue to miss their numbers and skirt the necessary work, then you have to put your foot down and move them out the door. Keeping these people around will hurt morale; cause you major headaches; and at the end of the day, you’re not doing yourself or them any favors. It’s time for them to go find themselves … somewhere other than at your agency.

Tip No. 4: Remember that each individual is motivated differently.

Most are motivated by money, other incentives and gifts, but people also like recognition and appreciation. Let them know through your words and actions that you care about them, support them, and you want them to be successful.

For the agent in need

Here are some tips everyone in your agency can use to boost their work performance: Tip No. 1: Take 100 percent responsibility for your life and truly commit to your job. Let your boss know you’re on board and you’re going to do whatever it takes to be successful and ask for his or her help.

Tip No. 2: Get disciplined, face your fears and get comfortable being uncomfortable. You simply must get yourself to do the necessary activities whether or not you feel like it, whether or not you’re scared, and whether or not you’re comfortable.

Tip No. 3: Find your motivation.

Why must you be successful? What are the benefits if you succeed and the disadvantages or pain if you fail? If you have powerful enough reasons why you have to succeed, you will.

Tip No. 4: You control your own success or failure. It has nothing to do with the economy, your parents or that bad break in high school, at the end of the day it comes down to you.

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Contact your local agent or Tom Perez at BSA 615.712.2398 or tom.perez@bwood.com 14

Professional Insurance Agents/Spring 2014 Proudly serving the members of the Home Builders Association of Tennessee since 1995.

The baby boomer business owner Is retirement a requirement?

By Al Diamond

W

hen FDR linked social security with retirement in the U.S., he adopted the retirement age used by Germany, 65 years old. In the U.S., the average length of life, at that time, was 63.

Today, our average life span is more than a decade longer and it is still going up.

The question before us is: How will our business lives change due to the extension of productive lives of our insurance agency owners, most of whom are baby boomers?

First, we must cover the crass truth.

For those of us who come from genetic stock that tend to die in their sixties and seventies, the question of retirement actually is easier. If we have done well in our business and wish to spend quality time with family and doing other things, retirement still is a viable option. Intergenerational transfer of agencies, mergers and sales still is an option that will be exercised by many agents.

However, we encounter a large number of agents each year who reluctantly enter the retirement pool.

They may have promised children, employees and others that they would turn their companies over to new owners.

But, a growing number of agents express reluctance and resistance when the transition is about to occur. They have planned for retirement, but when retirement faces them, they don’t really want to leave.

It’s not the money

If you are an agent of retirement age and find that you don’t have the assets to support yourself in retirement— even with the value of the agency earning you interest in an investment—then you may not be financially able to retire.

This is a simple analysis of assets vs. long-term living expenses and we all should do this exercise.

Most independent agents in the U.S. fall into two categories, those whose agencies provide them basic support for their families (i.e., it’s a job and a working income) and those whose agencies provide sufficient income to

both support their lifestyle and sponsor investments for retirement plans. You don’t have to be a liberal spender to fall into the basic support category.

A large number of insurance agents earn substantially less than a six-figure income during their productive careers.

Although their annual compensation may provide them sufficient income to support a family, few agents in this category can invest sufficient income in retirement vehicles to continue their lifestyles past their productive agency careers. If their agencies, themselves, cannot provide sufficient value to provide equivalent income streams after their retirement,

Professional Insurance Agents/Spring 2014

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they may find that retirement is simply not accessible to them.

These agents still can perpetuate, sell or merge their businesses, but they have to continue to work simply to maintain their lifestyle.

On the other hand, many agents have done an excellent job in their money management and, as a result, are certain that they can support themselves as long as their agency’s value provides sufficient additional investment returns in the future.

What happens if you can retire, but don’t want to?

If you are 50-55, 60-65 or even 70 years old and still have the energy and stamina to pursue the insurance business, you should have the option to sell and leave the business, but you should not be forced to leave it.

If we look at the number and quality of the people entering the insurance business in the last 20 years (our agency successors) we find that we haven’t enrolled the same quality or quantity of insurance professionals into the insurance industry than we did in the 1960s through the 1980s (the baby boomers). That is not an accusation. That is a reality because those subsequent generations simply had fewer members and those people had many more options in career development than we did when we went to college.

Enjoy benefits without leaving

How can we enjoy the benefits of our agency’s value, but not leave it? The answer is a mindset change that will permit senior agents to sell down their interest in their agencies, but still stay active in the business. Most buyers (except, in some cases, long-term participants in the agencies), desire the old owner to stay for some period to transition the customer and carrier relationships to the new owners.

Many new owners would even welcome the continuing participation of the old owners in service and relationship maintenance roles to maximize retention and earnings capacity. However, the keys to the retention of the old owners are the transition of decision-making roles, the level of activity of the old owners and the compensation expectations of the selling owners.

Make no mistake about this—the

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main block for having old owners stay with their agencies after a sale is ego.

The old owner has been in control for decades. If his or her ego cannot stand the transition of decision making to a new owner, he or she must either continue in an ownership role or he or she must leave the agency. And, this means that those high-ego owners may never personally realize the value of their agencies. Selling the agency and still retaining decisionmaking authority in the old owner is a recipe for disaster.

On the other hand, if you can assume an “emeritus” position and continue maintaining relationships with your clients while the new owner makes the decisions and operates the agency then you may have an on-going role in the agency that is both productive and rewarding. Identify a specific book of business that needs your participation and the value of that role to the agency. The agency’s new owner will probably enjoy your active participation in retention (and in growth) of the agency’s book of business. Identify the appropriate value to the role and don’t expect a compensation level (and perks) equivalent to that earned while you were an owner. Your value should be equivalent to what you would pay to hire an experienced person to fulfill the role assigned to the selling owner—no more, no less.

Be wary of the R.I.P.

Many agency principals feel that they have “paid their dues” and have earned more time off, additional perks and leeway in their business dealings.

While they are business owners, they are right. After they sell their businesses, they are described as R.I.P.—Retired In Place.

In the armed services we described shorttimers who no longer adhered to the rigid rules of behavior as R.O.A.D.—Retired on Active Duty.

Neither the armed forces, nor the independent businesses in the U.S. can afford participants who are R.I.P. or R.O.A.D. If your desire to remain in the business stems from the desire to remain active, to continue to serve your clients and to support the next generation of agency owners, it is commendable and should be pursued. Financial issues should be considered because value

Professional Insurance Agents/Spring 2014

received is equivalent to value paid.

But, if you seek a continuation of your compensation (or its equivalent) without your active commitment of time and effort to the company, please reconsider your position.

No. Retirement is not a requirement.

It remains an option for agents who are tired of the “grind” or can no longer abide with the clients, the carriers, the employees or the vagaries of the industry.

If they still are energetic enough to be active in the community, they should sell, retire and seek other avenues for their continued activity and mental well-being.

A new career and community service are examples of fulfilling directions that take agents out of the insurance industry, but doesn’t put them in a rocking chair.

If you feel that you’ve just “hit your stride” and are finally at the point that you no longer worry about the next sale, you may be better served (and live longer) by remaining active in the insurance agency—as long as you don’t get in the way of the new owner’s direction for the agency.

If you can neither afford to retire or have no potential successors, you must continue working through your later years, but you don’t have to concentrate on growth. Many agents have taken the decade after they should have retired to reduce expenses and time in the agency and wean the agency down, enjoying greater returns during those years than when they were forced to fund personnel, systems and business growth. It can easily take 10 to 15 years to wear an agency down to a pure service level for the existing client base. This may be considered for agents in circumstances in which the sale of their agencies would not return sufficient funds to sponsor their lifestyles for their expected lifetime.

Reprinted from The PIPELINE, the national newsletter for agency principals. The PIPELINE is published by Agency Consulting Group Inc., a leading consulting firm for independent agents in the U.S. for more than 30 years. For information about the content of this article or PIPELINE subscription information, call (800) 779-2430 or email info@agencyconsulting.com or visit www.agencyconsulting.com.

Stay competitive, embrace business strategies Tackling agency challenges with mobile apps

By Alex Bratton

P

rofessional, independent insurance agents face many challenges, including increased competition, an aging workforce, competition for young talent and customer demand to connect with businesses on the channel of their choice.

Today, that channel increasingly is mobile. This is not surprising considering that nearly 150 million people in the U.S. own smartphones, according to comScore. That’s more than 62 percent of the mobile phone market.

While the rise of mobile communication may worry some insurance agents who prefer to use traditional communication channels, mobile apps actually can help agencies meet some of their most pressing challenges.

Mobile makes agents more competitive

Competitive pressures for professional, independent insurance agents have been on the rise for years.

In addition to increased competition from direct-response carriers, agents also compete with customers, who often go online to research products and services and find the lowest-cost plan without calling an agent.

In order to compete, agencies need technology tools that are better than

traditional web-based tools. Mobile apps can help in a number of ways, including the following: • As agents meet with customers, an app can help simplify complicated financial concepts and quickly show customers various “what-if” scenarios. Based on information the sales rep collects from the prospect, a mobile app can suggest the right products and solutions, and can incorporate pictures or graphs to make scenarios more understandable for customers.

• Mobile apps can automate workflows to make the application process quicker and easier.

Information used in a productscenario app automatically can flow into an order-entry app, reducing the time and potential errors associated with re-entering information.

• Apps can be designed to prompt agents to ask certain questions, reducing back-and-forth phone calls.

They also can tap into databases to populate data automatically and intelligently, such as information on how a house is constructed, which streamlines quoting and boosts accuracy.

• Mobile apps can give sales managers a dashboard at their fingertips detailing monthly sales goals and

quotas, and providing insight into individual agent performance.

This will allow managers to pinpoint how they can best assist agents with additional training, information or help.

Mobile apps appeal to younger workers

According to a study by St. John’s University School of Risk Management, half of the insurance industry talent pool will turn over within the next 15 years. This creates an immediate need to recruit younger workers into the insurance industry.

Mobile apps can help to tap into the way millennials work. This generation’s workers have grown up on technology.

They consider it an integral part of their lives. They interact with technology routinely, expect responses immediately and are excellent multitaskers.

Millennials expect to have technology tools to help them perform their jobs. If the insurance industry is serious about recruiting younger workers, mobile apps must be a part of this message.

Mobile apps also can help agencies capture and share processes and experiences, making the training of younger workers easier. This will be especially important as agents retire and

Professional Insurance Agents/Spring 2014

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Six steps to identifying a billion dollar app

The right mobile app can be worth billions of dollars in cost savings and new opportunities over its lifetime. Here are six easy steps to help you identify the most valuable mobile app for your agency.

1.) Outline the opportunity. White board your business strategies and goals for the year. Goals might be to increase revenue, improve margins or increase customer loyalty.

2.) Identify how you will get there. Detail the workflows required for each each goal. If your goal is to increase sales by 10 percent this year, the workflows to accomplish this may include lead generation, face-to-face sales and underwriting, to name a few.

3.) Know the roadblocks. For each workflow, identify the issues that take up time and resources. The sales workflow may involve filling out a paper order form, driving the form back to the office, then calling customers for more information.

4.) Apply mobile apps. Looking at the roadblocks, envision how mobile apps can help alleviate issues. An app that prompts sales associates to gather customer data, then automatically sends the information to the office will reduce both time and omissions.

5.) Score the apps. Once app ideas are developed, score them to determine the value they will bring to your agency in time saved or revenue potential. For example, saving 10 percent of time on a task that costs the agency $100,000 annually delivers a cost savings of $10,000 a year. This is the return on app.

6.) Assess other criteria. Look at other criteria that can affect the success of an app, such as the effort needed from IT and how excited users will be to adopt the app.

Create a chart of apps that will provide the most value and have the best chance for adoption in your organization. This chart is the start of a mobile app strategy that prioritizes and plans for the future development of apps.

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Professional Insurance Agents/Spring 2014

agencies struggle to impart decades of experience to younger workers quickly.

Finally, mobile apps can help train a field sales force on new products and services through the use of games and short videos. They also can automate workflows and standardize processes, creating a consistent customer experience and continuity if a producer leaves.

Mobile apps cater to the connected consumer

With the prevalence of smartphones and other mobile devices, today customers are connected virtually all the time, creating a paradigm shift for insurance agents. Customers naturally will have more knowledge about insurance products, and their ability to compare prices is moving the industry to a commodity.

The way to win in a commoditized market is to stand out in another way, and mobile apps can help.

Putting a mobile app into the hands of customers differentiates your agency and creates loyalty by allowing customers to take control of their insurance needs.

Such apps provide useful tools, such as claims reporting, digital proof of insurance, online bill pay and the ability to change coverage—all from a mobile device.

While some agents may feel they are losing important contact with customers, self-service through mobile apps often is the communication method preferred by busy customers. It’s important to remember that the time customers spend interfacing with these apps is time they spend interfacing with your agency.

Bratton is CEO and chief geek at Lextech (www.lextech.com), a mobile app development company that evaluates business workflows to identify and build apps that improve processes and make the complex simple. His book, Billion Dollar Apps, will be out soon at www.lextech.com. He can be reached at alex.bratton@lextech.com.

Your Best Reduce your chances Defense of an E&O claim

Pearsall is president of the Pearsall Associates Inc. and a special consultant to the Utica National E&O Program.

His blog is agentseotips.com.

By Curtis M. Pearsall, CPCU, CPIA, AU, ARM, AIAF

The duties of a producer or account executive/ customer service representative in an agency present tremendous challenges and responsibilities. It’s hard work and is not getting any easier. The knowledge expected would fill volumes and the workload probably seems like it never ends. These staff members deserve a tremendous amount of credit because without them, the agency would not be the same. While the degree to which these men and women perform this job professionally and ethically can greatly determine the agency’s success, it can heavily determine the agency’s errors-and-omissions risk, too.

Gaining knowledge

Both producers and account executives must have a strong technical knowledge of the industry.

Customers and prospects rely on them for this knowledge to ensure their assets are protected properly. To meet this challenge, a commitment to knowing the various classes and lines of businesses, and the uniqueness of each, is required. Because there is so much to learn in the insurance business, there will be times when a producer and account executive does not possess the necessary knowledge.

How these instances are handled and knowing where to find the information is vital. Bluffing one’s way through the answer is not recommended. This might work occasionally, yet since there is a good chance the customer or prospect is documenting the conversation, it’s only a matter of time before it catches up with the agency staffer.

A great tool for producers and account executives is an exposure analysis checklist. These checklists provide tremendous detail on more than 650 classes. For a producer, this is an ideal resource for knowing the prospect or client. For example, before visiting a jewelry store prospect the producer should take the time to educate himself or herself on a jewelry store’s exposures. For account executives,

these checklists also are a solid way to improve their knowledge of various lines or classes of business.

Sales skills and more

Yet having the knowledge and knowing where to get it are only parts of the solution. The formula for success also includes the need for sales skills.

Having knowledge with no sales skills—or sales skills without knowledge—can be extremely dangerous for the agency from an E&O perspective. Without a doubt, the sales process doesn’t end when the sale is made. How producers and account executives conduct themselves during the sales process—pre-sale, sale and post-sale—will likely determine whether they are successful and to what degree they are an E&O risk.

When interacting with the client, in most states, an insurance producer, including account executives, has a common-law duty to obtain the coverage the client specifically requests within a reasonable time or inform the client of the inability to do so. Thus, it is key to listen to what the customer or prospect is asking. Not providing what the customer requested has been a root cause of many E&O claims.

The words or phrases used to promote your agency and abilities are important for avoiding an E&O claim. Telling customers and prospects you are an “expert” or that “at our agency, we make sure that you are covered properly” sound impressive.

However, phrases like these can cause a producer or agency to be held to a greater degree of liability if a problem develops. Choose the words and phrases used verbally or in print carefully.

One word to avoid is “recommend.” It’s not as harmless as it might sound. For example, say the agency recommends that the client secures a $1 million umbrella. Ultimately, if the client has a loss well in excess of the $1 million, the agency could face an E&O claim for “recommending” a limit that was insufficient for the loss suffered. The best approach is to offer coverage options and limit options for

Professional Insurance Agents/Spring 2014

19

each of those coverages, and then let the customer make the decision. Don’t make it for them!

Document and review

In all of the various interactions, whether with the prospect or the markets you are using, is the need for prompt and professional documentation. Reinforce that this need for documentation applies to producers and account executives.

While the “old-school” approach of documenting the discussion in the file or agency management system may be sufficient at times, there will be situations when the documentation also should involve a note to the customer or prospect detailing the essence of the conversation. The goal here is to avoid any misunderstandings before a claim occurs. If a problem develops, this documentation—or lack of—will greatly

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Professional Insurance Agents/Spring 2014

determine the direction of the E&O claim. Documentation is not an option; it is mandatory. It also must be prompt and professional. Does the customer always buy all of the coverages noted in the proposal? No. Both producers and account executives should get the customer’s sign-off on the coverages/ limits they will not be securing.

After receiving the order, it is crucial to review the policies upon receipt of them to ensure they reflect what was ordered. The producer and account executive should be involved in this process to ensure the coverage is what the customer requested. In all but a few states, the client has a duty to read his or her policy. Therefore, it is strongly suggested to include a cover letter with the policies advising the customer to review the policies and contact the agency if there are any questions or any of the policies need correction. If the producer is delivering the policy, include the cover letter with the policies and bring the letter to the customer’s attention.

In all likelihood, the marketplace has prompted accounts to be remarketed on renewal to other carriers in your office, so bring to the customer’s attention any deficiencies or coverages being “given up” by moving the account to another carrier. Document these discussions.

This also applies if you are moving the account from the standard marketplace to the E&S marketplace.

Often, carriers will change their guidelines. Agency staff must be aware of, and to adhere to, the guidelines.

Overstepping the carrier’s binding guidelines is a common reason carriers are increasingly suing their agents.

Going a long way

Being a producer or account executive requires tremendous knowledge, professionalism and attention to detail. This will go a long way to ensuring success—and ensuring you are not an E&O nightmare waiting to happen.

Tech Consumer Electronic Show Bit

Marshall is a student at the University of Denver. She can be reached at me@ amandamarshall. us.

By Amanda Marshall

Every January is the Consumer Electronics Show.

It is Mecca for the U.S. electronics industry with 140,000 attendees and almost 2 million square feet of exhibits. Walking through the show is like walking through a 30,000 ring circus. I’ve been attending with my father for the past five years; here is my take on last year’s show.

Electronic devices are underdeveloped real estate for advertising. Every cell phone, laptop and tablet should be skinned with your brand name. Whenever you are in front of a customer, client, or possibly speaking to a group, any electronic device you have with you should be advertising for you, not the manufacturer of the device or your cell-phone service

provider. Gelaskins.com and ZingRevolution.com not only offer amazing original artwork using licensed images, but allow you to create your own custom skin.

Not only will you get your name out there, but also protecting your device from scratches.

If you need more protection Otter Box offers the highest protection available. Its cases are rugged enough to survive rock climbing, tsunamis and use by my brother, who is really tough on phones. And, some skins actually will work on the back of the case as well, so you can have protection and still advertise your business. If you happen to have an iPhone 5, there were hundreds of companies offering various cases for that phone.

EXPLORE THE BENEFITS OF THE CERTIFIED PROFESSIONAL INSURANCE AGENT DESIGNATION Earn E&O credit while earning Tenn. credit.

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REGISTRATION FEES $135/$155 for members; $175/$195 for non‑members, per session.

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The CPIA program is an excellent way to earn your state‑mandated CE credits; participants need not pursue the designation to receive CE credit. The CPIA designation is approved by Utica Mutual for E&O loss prevention credit. This credit is applied once the designation is achieved. To earn the designation, developed by the American Insurance Marketing and Sales Society, candidates are required to complete all three, one‑day Insurance Success Seminars (in any order.) Participants leave with fresh ideas that will produce results.

CE CREDIT GUIDE CPIA 1: POSITION FOR SUCCESS 7 hours CE CPIA 2: IMPLEMENT FOR SUCCESS 7 hours CE CPIA 3: SUSTAIN SUCCESS 8 hours CE

To register, call PIA at (800) 875-7428 or log on to www.piatn.com/index.php/Education-and-Events/cpia.html

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The trend for bigger smartphone displays means you’ll have even more space for your image. Phones like the Samsung Galaxy S III and Note II offer screen sizes of 4.8 inch and 5.5 inch. One Chinese manufacturer showed a 6-inch phone! I think the trend to bigger screens shows smartphones are used less and less as a phone and more as your connection to the Internet.

A screen that large will come in handy since smart offices and houses are using smartphones as type of remote control. You can monitor your air quality, security, thermostat and many other options all from the palm of your hand, from any location. The home building company Lowes was showing its Iris home automation system, which will integrate with all sorts of sensors.

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You can measure the amount of water in the soil then turn on the sprinkler system, all while monitoring it with your smartphone. You also can view any number of surveillance cameras installed in your house or office and connected to your system. Home automation has been around for a long time and never really gotten any traction, coupling it with your smartphone finally may be the key.

Bigger isn’t the only option when it comes to displays. Better quality images are coming too. Ultra HD TVs already are being made by several companies, but since they require so much data to create that image getting Ultra HD content still may be a couple years away.

Ultra HD used to be called 4K TV. It has a resolution of 3,840 × 2,160, four times the resolution of current HD TV. Sharp showed an 85-inch 8K TV that has a resolution of 7,680 × 4,320. It was virtually impossible to see the individual pixels, no matter how close to the screen I was.

CES is a big show, with lots of new products that are consumer electronics, like the Hello Kitty toaster we saw, but the line between what is for the consumer and technologies that can help your business is difficult to see.

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Professional Insurance Agents/Spring 2014

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Professional Insurance Agents/Spring 2014

Directory PIATN officers and directors OFFICERS

President Tina Hutsenpiller, CPIA Hutsenpiller Insurance Services LLC Mt. Juliet, TN (615) 773-2886 tina@hutsenpillerinsurance.com President-elect John Keisling, CPIA, CISR Keisling Insurance Agency Inc. Byrdstown, TN (931) 864-3116 john@keislingins.com Vice President Joe Kerr, CIC, CPIA Kerr Insurance Services Brentwood, TN (615) 360-7524 joe@kerrinsurance.net Secretary Herbert Montgomery Clay and Land Insurance Agency Inc. Memphis, TN (901) 767-3600, ext. 107 hmontgomery@clayandland.com Treasurer Donnie Hogan, CIC Fred M. Smith & Son Inc. Springfield, TN (615) 384-2543 donnie@fredmsmith.com Immediate Past President Steve Peay Boyle Insurance Agency Inc. Memphis, TN (901) 766-0200 stevep@boyle.com

NATIONAL DIRECTOR

June Taylor, CIC, CPIA, CPIW, DAE Wilkinson Insurance Agency White House, TN (615) 672-4439 june.taylor@wilkinsonins.com

DIRECTORS

Greg Augustine, CPIA The Augustine Insurance Group Clarksville, TN (931) 503-0015 gaugustine@aol.com Llew Boyd Southern Insurance Associates Chattanooga, TN (423) 296-0626 llboyd@southins.com

EXECUTIVE VICE PRESIDENT

Jeff Anderson PIA of Tennessee 504 Autumn Springs Ct, A-2 Franklin, TN 37067 (615) 771-1177 janderson@piatn.com

STAFF

Pam Cass, CPIA Convention, Education, Membership (615) 771-1177 pcass@piatn.com Sandy Clive, CPIA E&O, Member Services (615) 771-1177 sclive@piatn.com

Carl Butcher, CIC, CPA C.L. Butcher Insurance Agency Knoxville, TN (865) 689-5482 carl@clbutcher.com Andrea Bond Johnson, CPIA Golden Circle Insurance Agency Brownsville, TN (731) 772-9932 abjohn@bellsouth.net Britt Linder, CIC Peterson-Linder Insurance Services Bartlett, TN (901) 386-4777 britt@peterson-insurance.com Chris Mills, CPCU, CIC Mills Insurance Agency Nashville, TN (615) 620-4452 chris@millsinsuranceagency.com Bill Richards, CPIA, LUTCF Community Insurance Greeneville, TN (423) 638-1422 brichards@greatci.com

Professional Insurance Agents/Spring 2014

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The PIA Branding Program

Advertising that helps set PIA members apart from — and above — their competition. �������������� ���������������

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Local advertising for Local Agents Serving Main Street America How does a Professional Insurance Agent separate himself or herself from the pack in a crowded insurance marketplace? Simple.

By taking advantage of PIA’s new print advertising program.

Best of all, this powerful branding tool is available free and exclusively to PIA members, as part of their PIA membership. Company sponsorship of the PIA Branding Program is also free.

PIA has created a series of ten print advertisements that PIA members can run in local publications or print as flyers. These ads focus on the combination of choice and personal support and service that make PIA members Local Agents Serving Main Street America.

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These attractive ads can be customized with agency logos and contact information and (optionally) a company logo. There are four general agency ads, two homeowners ads, two auto ads and two commercial lines ads, with numerous variations, sizes, color as well as black and white ads, making a total of 227 ads in all.

National Association of Professional Insurance Agents 400 N. Washington St. • Alexandria, VA 22314-2353 (703) 836-9340 (phone) • (703) 836-1279 (fax) www.PIANET.com • piabrandingprogram@pianet.org

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Professional Insurance Agents/Spring 2014

Whether you’re a PIA member now, you’re an agent who has yet to join, or you’re interested in company sponsorship, head on over to PIA National’s website to see the ads and get all the details about the PIA Branding Program: www.pianet.com/piabrandingprogram