The Connecticut Independent Agent by Tracy Hearn

January 2013

The Connecticut Independent Agent

“The Connecticut Independent Agent is the official publication of the Independent Insurance Agents of Connecticut 30 Jordan Lane Wethersfield, CT 06109 Phone: (860) 563-1950 Fax: (860) 257-9981 www.iiact.org

IIAC Staff Warren C. Ruppar President Tracy Hearn Office Manager / Event Planner Ed Meaney, CPCU Education Director

Independent Agents Services Staff Laura Szatkowski E&O Program Administrator Rosemary Mullaly Lawyers’ Liability Program RLI This publication is intended to provide accurate and authoritative information on the subject matter covered. It is distributed with the understanding that neither IIAC, nor any contributing author, publisher or contributor 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 associate membership found in this publication are provided as a courtesy to our readers and do not necessarily indicate an endorsement by IIAC. News items will be accepted / printed at the discretion of the IIAC. No paid advertisements are accepted in this publication. Please contact Warren Ruppar for further information.

The Connecticut Independent Agent This Issue’s Features Playing Publisher

Cyber Liability / Privacy & Security Insurance

Month In Review Insurance Department Bulletins Frequently Referenced Statutes / Regulations

06 06

12 Tips for Selling in a Hard Market

Commercials on Hold

IIAC Member Benefits Ovation Payroll WAHVE (Work at Home Vintage Employees)

10 10 - 11

Connecticut Health Insurance Exchange

Agents’ Express Leasing Program - InsurBanc

RLI Stand Alone Personal Umbrella

Swiss Re

IIAC Annual Programs Registration & Sponsor Information

In Every Issue January and February Continuing Education Courses

Events

Big “I” Advantage Programs

About Us

Associate Member Index Associate Members - Insurance Brokers & Services

Associate Members - Insurance Companies

Playing Publisher Social media can be great for business. But are you protecting your agency—and your clients—from possible exposures? Everyone has an opinion, a few facts to share, or some keen advice to offer. But today, such words of wisdom are posted on Facebook and LinkedIn, published in blogs and tweeted to followers. It seems everyone is becoming a de facto publisher, without understanding the related risks. Publishers, advertising firms and professional journalists are acutely aware of costly and damaging financial exposures like libel, slander, defamation of character, plagiarism, invasion of privacy and copyright/trademark infringement, among others. They’re also apt to be well-versed in so-called “fair use” laws (Section 107 of the copyright law, title 17, U.S. Code) governing material borrowed from others for personal publication. Large corporations leveraging social media for advertising, marketing and other purposes arguably share this knowledge. But, what about midsized and smaller businesses—not to mention the general public? For the most part, they appear to be winging it. “Several surveys indicate that while many companies engage in the use of social media tools and platforms, roughly onequarter have no social media policies in place,” says Ken Goldstein, vice president and worldwide media liability manager at Warren, N.J.-based Chubb Group of Insurance Companies. “They’ve effectively become publishers, thereby exposing themselves to a range of claims, with little to no appreciation of this fact.” Many companies also erroneously believe their general liability or professional liability insurance policies will absorb the financial costs of their publishing mistakes. While these instruments may offer a modicum of protection via incidental advertising and personal injury coverages, the extent depends on the terms, conditions, exclusions and financial limits. “Companies that do a fair amount of social networking would be wise to consider buying media liability insurance, which is what publishing groups purchase, or cyber liability insurance,” Goldstein advises. Independent insurance agencies are among the myriad small to midsized businesses that have shifted some resources to social media outlets, publishing blogs and posting information and advice on Facebook, LinkedIn and Twitter. Fortunately, some agents are aware of the related risks and have implemented policies and procedures to limit their financial exposures.

Many agents, armed with their own know-how, are sharing their best practices with commercial lines and personal lines customers. “We’re ahead of the curve here, pointing out what may become a potential claims situation down the line, even though for the moment there doesn’t seem to be much action,” says Paul Saich, CEO of Thoits Insurance, a San Jose, Calif.-based agency. “It reminds me of [employment practices liability] in the 1990s. Nobody was paying attention to this emerging area of exposure, and then the claims started hitting.” Anti-Social Behavior Hits the Courts? For now, the claims against unwitting “publishers” are not yet hitting, but given the litigious nature of and the United States, coupled with the sheer growth in social media messaging, a sea change may be in the offing. For one thing, social media exponentially increases the speed of information and the size of the audience being reached. “In the old days, if someone made a buffoon of someone else, a few people took notice,” says Pete Piotrowski, senior vice president of claims and risk management at Chartis Personal Lines in New York. “Today, you tweet a disparaging comment to an audience of hundreds that then goes viral.” As an example, Piotrowski cites some unfortunate remarks singer Courtney Love posted about a fashion designer in 2009, culminating in a lawsuit for libel and emotional distress that was reportedly settled for $430,000. “I’ve heard of instances where a contractor sees his business dropping off and wonders why,” he says. “Then, they hear that a client was dissatisfied with the work done on their home and posted their displeasure. The contractor sues the homeowner, then subpoenas the person’s Internet, phone, email, texts and Facebook records—you name it. Up till this moment, the homeowner believed this information was private, but with the power of the subpoena they soon learn otherwise. They now face litigation, and their privacy has been exposed.” Businesses are just as exposed as private individuals. It is not uncommon for executives to write blogs that include links to other people’s works, without the original writers’ permission, and with no knowledge or proof that the information is correct. Although many publishing companies have fact checking departments, few businesses outside of the institution of journalism have the same rigor. “While there is advertising and marketing power in social media, there is also risk,” says Ron Kopacka, vice president of commercial lines at Otterstedt Insurance Agency in Englewood Cliffs, N.J.

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“There’s no question that blogs, Facebook and Twitter are great ways to get your message across to the public, so long as that message has been vetted by an attorney or someone who understands the nuances of libel, defamation, copyrighted material and other risks,” Kopacka adds. “Once you’ve put out something that may result in a lawsuit, there’s no way of pulling it back. The damage has been done.” In some cases, acting quickly can forestall litigation. “Often when a company blogs something that is copyrighted material owned by another company or entity, the owner will inform the user to cease and desist,” says Ted Way, cyber liability practice leader at Thoits Insurance. “If the blogger immediately retracts the messaging, it usually takes care of the matter. The problem arises when the email from the owner falls into the black hole of the email inbox. That’s when things escalate out of control.” Sometimes the wrong message is one that borrows from another person’s work and twists the meaning to suit a particular objective. “You need to beware taking someone else’s story and transforming its original purpose to fit yours,” says Goldstein from Chubb. “That’s a big red flag.” Another is lifting someone else’s intellectual property without permission or failing to reference the source, which may encourage a copyright infringement lawsuit. “It’s very easy to ‘copy and paste,’ ” says Stewart Tosh, a producer and business development leader at Norwalk, Conn.-based agency Pierson & Smith, a division of First Niagara Risk Management. Tosh speaks from personal experience. “Before we were acquired by First Niagara, we had a little blog we did and some postings on Facebook to communicate with current and prospective customers,” he explains. “We had no media liability policies in place or any process for approving what was written.” “Too many companies dabble in this, failing to have procedures in place with respect to the use of social media,” says Saich. “We’re located in the heart of Silicon Valley, where plenty of tech companies have executives writing blogs and using Facebook to express their opinions, caveats and advice. But, these companies are aware of the risks, by and large. Smaller companies are blissfully unaware. Frankly, we agents, brokers and the industry at large need to increase our efforts to educate clients of these threats.” Policies, Procedures and Insurance Reducing social media risks begins with articulating a clear policy about its use. The observers counsel that rules must be established regarding who can use social media and which types for specific purposes and defined audiences.

Way from Thoits further recommends a chain of command approach to vetting content. “The best person to review material would be in-house counsel, but assuming there is none, then it is wise to select someone on staff who understands what is and isn’t permissible to peruse the content,” he adds. “It’s like having a strong editor-in-chief in place. You may sacrifice a bit of efficiency, but you’re making sure everything you put out is correct and won’t come back to bite you.” Tosh says such policies are now in place at his agency, postacquisition. “No blog or posting is permitted to become public without approval,” he explains. “We now have rules regarding what is allowed and what isn’t. We’ve become very knowledgeable of the risks.” This knowledge is now being passed along to the agency’s commercial clients. “A year ago, it was rare for us to ask an account if they blogged or posted on Facebook; now we ask it all the time,” Tosh says. If a blog is going to contain a broad amount of information provided by another entity, Goldstein says this may require licensing the content. He notes that fair use laws are gray when it comes to how much intellectual property can be presented, even with attribution, hence the need to confer with an attorney or someone proficient in the law. Perhaps the grayest area of media liability is risk transference. General liability, professional liability and homeowners insurance include some protection for incidental advertising, personal injury and other exposures, but the devil is in the details. “You may get modest coverage in a homeowners policy, but if you don’t have umbrella insurance on top of it, there may not be enough limits to absorb the financial costs,” Piotrowski says. Not all homeowners policies automatically provide personal injury coverage, making this another matter to consider. On the commercial lines front, general liability policies may specifically exclude or restrict risks related to social media, Goldstein says. While a broadly written errors and omissions liability insurance policy addresses the exposures more squarely, the purchase of a media liability policy provides true peace of mind. “It will respond to the same risks that publishers face—libel, slander and so on,” he explains. Certainly, this emerging risk is a ripe subject for agents to discuss with clients. Says Saich: “If we don’t, then we may face an E&O exposure.” That’s nothing to broadcast.

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Getting Out the Message Without a Mess How many agents these days blog, post advice on Facebook or tweet to a bunch of followers? In this day and age, a lot.

Cyber Liability / Privacy & Security Insurance

Not only do social media platforms provide a way to reach clients with valuable advice and information, they assist agency client retention and cross-selling efforts. “It’s a great way to get better branding—to get your name out there more easily and economically,” says Ron Kopacka, vice president of commercial lines at Englewood Cliffs, N.J.based Otterstedt Insurance Agency.

Oh, how we laughed and laughed. My siblings and I cracked up watching the slapstick scene starring Richard Pryor as computer genius Gus Gorman in Superman III, using the technique known as salami slicing to steal $85,000 from his employer, Webster Industries. I do believe that is the first exposure I had to the concept of cyber theft!

But there is a downside. Sending out the “wrong” message can result in costly litigation, ruin an agency’s reputation or threaten its survival.

While we can't help with protection from the nefarious villains of silly superhero movie sequels, we can offer you access to privacy and security insurance for your clients through Big "I" Markets. If a company has the private data of any individuals, they have exposure and are a candidate for privacy & security insurance. Through our partnership with A.J. Wayne & Associates, you can access the broadest products available at extremely competitive rates.

Charles Gibson, vice president of Deland, Gibson Insurance associates Inc., exemplifies today’s social media-savvy agent. “I’ve been tapping into virtually all social media outlets—Twitter, LinkedIn, Facebook and a blog,” says Gibson from the agency’s headquarters in Wellesley, Mass. “Often, I will receive some important information about a particular litigation trend or emerging risk and I’ll take advantage of social media to get the word out.” This, in turn, helps the agency’s search optimization efforts, which guides more inquiries and business to it. “I know many other agents who do the same thing,” Gibson adds. “We’ve got a producer here who has two or three blogs. Heck, my wife even has a *personal+ blog.” Gibson is more than a personification of today’s mediasavvy agent—he’s also media liability-savvy. “We have policies with regard to what can be posted or blogged, and then have a risk manager internally vet the content,” he explains. “He’s just like an editor who makes sure the reporters don’t say something stupid.” At Thoits Insurance, cyber liability practice leader Ted Way is tasked with approving all social media messaging. Otterstedt Insurance Agency takes a different tack, outsourcing responsibility to the agency’s advertising firm. “Their job is to control the content to prevent potential mishaps— like posting something that is libelous or slanderous,” says Kopacka. “Even a simple Facebook posting has to go through the channels before it sees the light of day.”

A.J. Wayne & Associates can entertain all types Cyber Liability/Privacy & Security Insurance including, but not limited to, the following:        

Retailers (online & offline) Restaurants Healthcare providers Professional services companies Technology companies Distributors Manufacturers Financial institutions or other financial companies

Need some help understanding Cyber Liability lingo? Check out this glossary of online terms found on the Big "I" Virtual Risk Consultant, powered by Rough Notes. Click here to learn more about VRC. For more information or to submit a quote, log in to www.bigimarkets.com.

Both agencies have purchased either cyber liability insurance or media liability insurance in case something falls through the cracks. Says Kopacka, “When we advise clients about their social media risks and the ways to transfer them, they often ask us if we buy the insurance. When we tell them we do, it strengthens their trust in us.” Banham (russ@russbanham.com) is an IA senior contributing writer. Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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MONTH IN REVIEW Connecticut Insurance Department Bulletins Released on December 7, 2012: BULLETIN FS-24 Credit for Reinsurance Reporting Requirements Released on December 11, 2012: Financial Regulation Division BULLETIN FS-4-12 Financial Filing Requirements for 2012 and 2013 For more information, please visit the CID website.

Frequently Referenced Statutes / Regulations To read a statute or regulation, click on the number. When the “Statutes Text Search” appears, type the number into the “Section Number” box and hit “search.” Sec. 38a-702. Producer Licensing Sec. 36a-757. (Formerly Sec. 36-9u) Mortgage insurance requirements limited. Sec. 38a-309. (Formerly Sec. 38-100) Binders for temporary insurance. Written binder as evidence of insurance on mortgaged property. Sec. 38a-324. (Formerly Sec. 38-185x) Cancellation of commercial risk insurance policies. Sec. 38a-707. Service Fees to Be Charged by Insurance Producers and Surplus Lines Brokers Sec. 38a-708. (Formerly Sec. 38-76a). Company to furnish facts relative to termination of agent’s appointment. False statement sole grounds for cause of action by agent. Sec. 38a-709. Formerly Sec. 38-76b). Termination of producer’s appointment and contract. Sec. 38a-710. (Formerly Sec. 38-76d). Insurers prohibited from cancelling or amending contract of independent producer solely because of adverse underwriting experience. Sec. 38a-713. (Formerly Sec. 38-89). Signing or countersigning insurance policies in blank. Penalties. Sec. 38a-714. (Formerly Sec. 38-90). Personal liability of agent or broker acting on behalf of insurance company no licensed to do business in this state. Sec. 38a-715. (Formerly Sec. 38-90a). Payment by insured to producer as payment to company.

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Big “I” Virtual University 12 Tips for Selling in a Hard Market Author: Bill Wilson What is a Hard Market? Historically, a hard market is part of the cyclical nature of the insurance industry. At one time, these cycles occurred fairly consistently at about seven year intervals. However, the last significant hard market was in the mid-80's. A hard market is characterized by increasing rates and/or reduced industry capacity which leads to affordability and/ or availability problems. In addition, both underwriting and claims adjusting usually become more stringent. In the current marketplace, these conditions are exacerbated by increased uncertainty about loss exposures such as terrorism, mold, etc., and by a reinsurance market significantly strained by the events of September 11. Looking specifically at the E&O marketplace, we can expect increasing rates/premiums and more stringent underwriting. This presents problems and opportunities. The bad news is that competition could lead to lost accounts. The good news is that competition could lead to lost accounts! That is, it is probably not desirable to retain all existing accounts...more on this later. And there is more potentially good news...since many carriers are in the same boat; the hard market could lead to new business. In addition, increased premiums means increased commissions (until or unless carriers start reducing them again)...you can use this increased revenue to improve and expand services in a way that differentiates you from the competition. So, let's take a look at 12 tips you can use to improve your sales performance during the hard market.... Sales Tip #1: Know your buyer Whether you're selling BOP's or Tupperware, you can only sell three things: (1) price, (2) product, and (3) relationship. When it comes to insurance, about 50% of customers are relationship buyers, 25% are price buyers, and 25% buy on the basis of product (10%) or value (15%). If you know where your prospect/insured falls, you can tailor your proposal to them.

Sales Tip #2: Really know your buyer  Develop a client profile/rating sheet...include everything you know about that buyer down to their favorite TV show.  Identify the real decision makers...you cannot sell insurance if you're going through a gatekeeper.  Learn all you can about the buyer...talk to employees, business associates and others to learn what makes that person "tick."  Stay in frequent contact...communicate with VIP, atrisk, and high potential customers frequently and rarely should the contact concern their insurance account.  Pay attention to the little things...Joe Girard, listed by the Guinness Book of World Records as the best car salesman in the world, said his secret was greeting cards...sending birthday, holiday and other greetings. So, keep in contact and do little things throughout the year for clients (e.g., send a magazine article on a subject you know they're interested in) and do something really memorable shortly before renewal time that's unrelated to their insurance account. Sales Tip #3: Don't give up According to Guerilla Prospecting, many contacts with fewer customers is better than fewer contacts with many customers:     

1 sales contact 2 sales contacts 3 sales contacts 4 sales contacts 5 sales contacts

= = = = =

2% of sales closed 3% of sales closed 4% of sales closed 10% of sales closed 81% of sales closed

Sales Tip #4: Never, never give up According to the Darnell Corporation, 80% of sales are made by 20% of sales people. Over 50% of all of Avon's sales come from 17% of their sales reps...those reps produce 10X the revenue of others. The reason for this is that most sales people quit after one or two initial contacts:  48% quit after the first contact  25% quit after the second contact  12% quit after the third contact  5% quit after the fourth contact  10% quit after the fifth contact As you can see from the Guerilla Prospecting figures above, 80% of sales require at least five contacts.

Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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Sales Tip #5: Recognize "No" The following statements all mean "No." However, as pointed out above, don't take "No" for answer...it may take 4-5 "No's" until you get a "Yes."  “I'll think it over."  “We'll discuss it and let you know."  "I'm just looking at all my options."  "The price is just too high."  "I'll have to get back to you."  "Let me see how this fits our budget." Source: "Six Rules of Salesmanship to Clinch the Deal," HOC, August 1995 Sales Tip #6: Solution-Oriented Selling If I said I could come into your agency or company and show you how to close over 90% of your sales leads, increase your retention rate to 99.9%, and more than double your book of business in less than a year, would you hire me as a sales consultant? You would?! That's odd because notice that I've made no mention of price! When you offer solutions -- to create opportunities, solve problems, reduce risk, etc. -- price is the last thing that will come up during the negotiations. Let's face it, most insurance is sold the same way...similar approaches, similar coverages (in the minds of the prospects), similar proposals, claims, promises, etc. All these things being (perceived as) equal, the ONLY differentiation is price. You must determine what is your "unique selling proposition," what differentiates you from the masses. Consider offering a package of solutions unlike anything offered by your competition. Consider free, discounted or in-house seminars, loss control services, or other perks...with increased commissions, you may be able to offer these perks essentially for free. Sales Tip #7: Painless Selling With regard to acquiring accounts during the hard market, the best prospects are those experiencing problems with their current insurance program...and you can relieve their pain. If the person is a "product buyer," you can also create pain by showing coverage gaps compared to your product...be sure to use vivid examples. Demonstrate how your proposal positively affects their bottom line by reducing risk. Sales Tip #8: Relationship Selling My personal lines account has been with the same agency for 29 years. They don't offer the best "product" and I can get a much better price elsewhere. If you read Tip #1, you

know, then, that they retain by account based on our relationship. My mother worked for this agency for a number of years until she became terminally ill and passed away 26 years ago. During her final year, she was only able to work a few weeks out of that year. At best, one could expect, given a decent insurance package, that she'd get 60% pay under a salary continuance or LTD program. However, the agency owner continued to issue her full paycheck every two weeks whether she was able to work or not. When the call came from the hospital that she had only hours to live, I raced there at 2:00 a.m., just before she passed away. At 3:00 a.m., the agency owner and his wife showed up at the hospital to offer any help they could. I've never forgotten what they did for my family and, for that reason, I've never considered moving my account to save a few bucks. Relationships create loyalty. Strong relationships based on genuine interest, empathy and compassion create fierce, almost fanatical, loyalty. If you treat your customers like family and, when the need arises, you go beyond the call of duty, no coverage perks or pricing discounts can approach the effectiveness of such relationships. Sales Tip #9: Use testimonials Include testimonials of long-term clients in your marketing materials. Every time you're involved in a claim "victory" for an insured, ask for a testimonial. Every time you exceed the service expectations of a customer, ask for a testimonial. Target these testimonials so that recipients of your materials know the persons if possible. Flaunt the fact that so-and-so chose your agency or company over that of a competitor. If needed, ask a respected client make a personal visit to a customer on the fence...prospects will appreciate your personal interest and value the opinions of a peer. Sales Tip #10: Multiple closes There are dozens of closing techniques that you can use and you can learn all about them if you attend a formal sales training program. You can incorporate more than one technique in an attempt to close the account. For example:    

Direct close...simply ask for the check. Time-driven close...rates are going up next week, so buy now. Relationship close...as indicated above, this is a foolproof method. Deal/concession close...but wait, there's more! At each balk, up the ante by adding freebies like discounted seminars, loss control services, etc.

Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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Sales Tip #11: World class service Provide consistent, personalized, responsive, reliable, accurate and professional customer service. Do the unexpected to dazzle them with your commitment to service excellence. For a good article on this, check out "Puttin' on the Ritz" in our Research Library and be sure to check out the entire Customer Service section of the library. Sales Tip #12: Overcoming objections Entire books and seminars have been devoted to this subject. Some objections are real and must be addressed while others may mask hidden agendas. Objections, in and of themselves, are not bad. According to Learning International, you are 20% more likely to close a sale that includes objections than if the prospect or insured raised none at all. To minimize objections, sell the benefits, not the product...focus on emotional (e.g., security/risk concerns) or financial (e.g., cost reductions) benefits. Focus on why they should buy, not their objections. Anticipate and be prepared for objections. Avoid bringing up objections that the

proposal with, "I know the price is a lot higher than last year, but. . [add excuses here]." Avoid the discussion of price until after you've demonstrated the superiority of your proposal and never make excuses. The Prayer of Alcoholics Anonymous says, "Lord, give me the courage to change the things which can and ought to be changed, the serenity to accept the things which cannot be changed, and the wisdom to know the difference." This prayer could apply to three major types of objections: Sincere objections...you can negotiate around these. Hopeless objections...you got to know when to hold 'em, and fold 'em. "Smoke screen" objections...as pointed out above, these have nothing to do with the product, but rather mask a hidden agenda...fix that problem and you've got the account. One other thing to keep in mind, particularly if you further your learning by attending a sales training program, is to remember that you're often selling to a sales person. In many cases, they've seen all the canned sales tactics.

Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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IIAC MEMBER BENEFITS Stop referring business to your competitors!

Ovation Payroll Large national payroll companies are competing for your clients. Protect your book of business while at the same time line your pockets with referral fees. Ovation Payroll, IIAC’s endorsed provider for payroll services, will not compete against you!

IIAC is pleased to announce a new membership benefit called WAHVE - “Work at Home Vintage Employees.” WAHVE provides a unique remote staffing service for your agency by utilizing experienced and qualified insurance professionals. WAHVE allows you to meet your staffing needs by enhancing your current agency staff or by maintaining productivity in your agency if an employee is on maternity or other extended leave. WAHVE is truly a member service for all agencies. Business Process Outsource Services for Retail Agencies

IIAC Member Advantages:  Insulate your book of business  Reduce administrative work with real-time communication of hires and terminations  Receive referrals back from Ovation  Your agency maintains ownership of expirations on clients referred to Ovation  Gain a competitive advantage by offering Ovation’s full suite of payroll and HR services to your prospects and clients

Your clients benefit too:  Seamless integration between payroll and workers compensation insurance premium collection  Quarterly state and federal tax filing and payments included  Free HR Support Center– Ovation’s online resource for all things HR  Direct deposit or Visa payroll cards included with basic service Ovation Includes:      

Direct Deposit HR Support Employee Pay Cards New Hire Reporting iPhone & Android App for EPP Background Checks . . . . And More!

In Business, it’s not what you know, it’s who you know. Getting to know Ovation has its benefits - IIAC Members receive a 10% discount off standard rates. For more information on this new IIAC Member Benefit, please contact:

Back Office Process Support for Commercial and Personal Lines  Policy Checking  Preparation of New and Renewal Business Applications  Quoting and Proposal Preparation  Loss Run Ordering & Analysis  Certificates & Evidence of Insurance  Change Requests & Endorsements  CSR/Account Manager Assistance  Sales Support for New Business Submissions  Renewal Business Binding  Marketing Support  Premium Audits  Carrier Document Retrieval & Distribution Claims  Processing  Analysis  Adjusting Full Service Staffing  Live Commercial Lines Customer Service Representative  Live Personal Lines Customer Service Representative  Live Sales & Marketing Assistant  Live Claims Representative  Special Institutional Knowledge Experts  Mentors and Trainers Accounting  Premium Accounting  Accounts Receivable Employee Benefits  Health Insurance quoting, proposal preparation and servicing  Life, LTC and LTD quoting and proposal preparation

Cathy Cellini - 855-467-5100 - ccellini@ovationpayroll.com

www.ovationpayroll.com Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

www.wahve.com Page 10

How WAHVE Works Below is a brief description of how WAHVE works but you should also visit our website at www.wahve.com. What is WAHVE?

 WAHVE is a unique, cost-saving remote contract staffing solution which supplements your firm’s staffing needs by using the industries knowledgeable and technologically savvy retirees who would cost twice as much if you hired someone with expertise.  WAHVE provides contract remote staff for back office process services or to fill a position on a dedicated full-time, part-time or project/consulting basis, helping you improve your profitability.  The costs for wahves vary depending on the type and level of work you require. For process and customer service work, the hourly rate is $25 and $30/hr. For a full-time person, the hourly rate equates to $41,825 - $50,190 annually. For higher level and expert work, the hourly rate is negotiated based on the expertise needed and/or the project. There are no additional charges, no employee benefits or office overhead to pay.  Wahves cost 50% less than regular experienced staff, which drives down the cost of process work and staff.  WAHVE is a less costly and more effective alternative to the carrier service centers and keeps you in control. What Can Wahves Do?

 Our wahves can do all types of process work to support an Acct. Mgr, CSR, Underwriter and/or Producer – such as preparation of applications and submissions, rating/quoting, binding, policy issuance, renewals, proposals, policy checking, certificate issuance, loss runs requests, loss runs analysis , auditing – or they can fill a CSR, AE, Underwriter, Claims, Marketer, Risk Manager, etc. position.  Some wahves are experts in their field, providing needed institutional knowledge on a project, consulting or mentoring basis. How We Qualify candidates:

 We have an extensive database of qualified insurance people who are in what we call “phased retirement.” They have retired from their firms but would like to work remotely from home full-or part-time or on a project/consulting basis.  They have 25+ years insurance experience. Many of our wahves have multiple designations, degrees and licenses and are eager to work remotely from home or do project/consulting work so that they can stay engaged and supplement their retirement income.  We have an extensive qualification process with on-line, timed insurance coverage, errors and omissions and management systems tests, reference and background checks. What Is the Process for Hiring a Wahve?

 Based on your needs, we match you with qualified wahves.  You can interview them and decide which one(s) you like.  We then outsource them to you on a dedicated basis.  WAHVE bills you an hourly fee.  Each of our wahves has the latest systems and programs and dual monitors if required for the work.  Wahves work in a totally remote secure environment within your management system and are trained in your workflow. All their work is tracked in your management system. Why WAHVE is a Better Choice than Off-Shoring:

 You save a considerable sum on start up costs, productivity and supervision and wahves can do higher level work and complete the full process.  Wahves only need a few days of training and they are ready to work as part of your team.  Wahves work the hours you chose and you can speak to them just as you would a regular employee.  You don’t need to worry about language, cultural differences, double checking the work or time difference. By hiring wahves, you save on salary, benefits, overhead and turnover while increasing profitability. It is really an easy process from start to finish. It takes a few weeks to set everything up between the interviews, selection of the wahve(s), synching the technology between you and your wahve, and then training your wahve on your workflow.

Call 646-807-4372, ext. 506, for more information. Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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January 2013 Sun

Mon

Tue

Errors & Omissions Loss Control 8:30 - 4:30

22 Property & Casualty Pre-Licensing Day 2 8:30 - 4:30

Thu

Wed

A COMPLETE CALENDAR CAN BE OBTAINED ON THE “EDUCATION” PAGE OF OUR WEBSITE

29 Property & Casualty Pre-Licensing Day 4 8:30 - 4:30

Fri

Sat

17 Property

Laws, Regulations, & Ethics 9:00 - 11:40

& Casualty Pre-Licensing Day 1 8:30 - 4:30

23 ACSR #10 Understanding Life Insurance 8:30 - 12:30

Life & Health Pre-Licensing Day 1 8:30 - 4:30

24 Property & Casualty Pre-Licensing Day 3 8:30 - 4:30

31 Property & Casualty Pre-Licensing Day 5 8:30 - 4:30

A COMPLETE ANNUAL CALENDAR CAN BE OBTAINED ON THE “EDUCATION” PAGE OF OUR WEBSITE CONNECTICUT CONTINUING EDUCATION REQUIREMENTS All resident agents are subject to continuing education for every line of authority. The Connecticut Insurance Department has an extensive website (www.ct.gov/cid) offering information on licensing, forms, statutes, regulations (proposed and finalized) Please take advantage of this web site for valuable information. Individual transcript information can be obtained by accessing www.sircon.com. Once on the website, select “For Individual Agents” from the “Products and Services” menu. Under “Quick Start for Agents” (at the top of the page) select “Look Up Education Courses / Credits.” This will bring you to an “Inquiries” page. Select “Continuing Education Transcript Inquiry.” Select “Connecticut” from the drop-down menu. Enter your license number and last name and click “submit.” You will now be able to view and print your transcript. Please note that transcripts are only accessible using producer license numbers. Social Security numbers are no longer usable. Flood Insurance Course Requirement

February 2013 Sun

Mon

Tue

A COMPLETE CALENDAR CAN BE OBTAINED ON THE “EDUCATION” PAGE OF OUR WEBSITE

Wed

Thu

Fri

Sat

14 Property

Property & Casualty Pre-Licensing Day 6 8:30 - 4:30

Property & Casualty Pre-Licensing Day 7 8:30 - 4:30

& Casualty Pre-Licensing Day 8 8:30 - 4:30

FLOOD INSURANCE 8:30 - 11:10

This year RLI has been working hard to provide you with the tools you need to place coverage with them. They have added Uninsured Motorist coverage, The PUP ACCESS system to monitor your RLI business, the PUP Special rating tier that allows placement of your more difficult to place prospects and as always, they will write coverage over households with no personal automobiles. Another improvement is RLI’s new easy to use website, www.rlipersonalumbrella.com.

Please add it to your fa-

vorites list! This is something many of you asked for and RLI has delivered a site that is simple and easy to get a quote quickly. FOR QUESTIONS, PLEASE CONTACT: Rose Mullaly, RLI Adminstrator Independent Agents Services (860) 563-6510 rmullaly@iiac.org

Connecticut Health Insurance Exchange The Connecticut Health Insurance Exchange has a website which provides information about Connecticut's health reform implementation and allows visitors to view the latest news and updates. You can also sign up to receive updates by email as well as the exchange’s eNewsletter.

Agents’ Express Leasing Program Many agencies are now beginning the planning process for next year. Do your budget plans include upgrading office furniture or technology? Moving to a new office? Hiring new employees? InsurBanc’s Agents’ Express Leasing program can help your agency achieve its goals while providing the funds to outfit your agency with the latest equipment solutions. Click here to learn more about leasing.

Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

Page 14

The Independent Insurance Agents of Connecticut offer a variety of programs and events for companies and vendors who want to get involved with our membership by supporting their association and it’s programs through sponsorship of and attendance at events. Associate Membership - Businesses other than independent property and casualty agencies are offered Associate Membership in our organization. Associate Membership in our Connecticut chapter, Independent Insurance Agents of Connecticut (IIAC), is available to those persons and firms who are directly engaged in the insurance industry or who have some other professional or business relationship with one of our members doing business under the American Agency System. Associate Members receive many benefits, but are not allowed voting privileges or use of the Big "I" / Trusted Choice trademark logo. Associate Members are recognized on our website’s Associate Member directory, and in our monthly magazine “The Connecticut Independent Agent.” Associate Membership runs from January through December and is $300 per year. Joining during the annual term is pro-rated for new applicants. RENEWAL _____ / NEW _____

FEE PAID: $__________

(please check one)

IIAC Mid-Year Convention is held every year and is a great opportunity for our members and company representatives to learn about the current industry trends. Company contributions allow us to bring a quality program to our membership and are a great way for companies to show their support of The Independent Insurance Agents of Connecticut. November 14, 2013 – Aqua Turf, Plantsville Exhibit Booth (fee includes 1 booth worker): _____ $325 Member or Associate Member or _____ $450 Non-Member _____ $ 70 Electrical _____ $ 50 each additional person in booth Exhibitor Fee includes booth with sign, listing in both the print and web version of the program book and a listing on our website. Sponsor: _____ Platinum Plus ($1500) / _____ Platinum ($1000) / _____ Gold ($500) / _____ Silver ($250) Sponsor Fee includes an advertisement (size depends upon sponsorship) in our convention program book (given to each attendee and posted on our website) recognition in our web-based Connecticut Independent Agent Magazine, a sponsor listing on our web-site and during the convention business meeting and complimentary attendees (number depends upon sponsorship). (Check all of the above items that apply)

TOTAL FEE PAID FOR CONVENTION: $__________

IIAC Young Agents Committee Annual Sponsorship - The Young Agents are a vibrant organization committed to improving both the insurance industry and the Connecticut community. Company sponsorships allow the Young Agents Committee to maintain a superior level of educational opportunities. Sponsors of the YAC receive several benefits including a listing on the IIAC website “Young Agents” page with a link to their website, an invitation to attend the “Meet the Sponsors” Social Hour at the Young Agents Spring Conference, and complimentary golf registration(s) to the Young Agents Annual Golf Outing. Sponsorship runs January - December. Sponsor: _____ Promoter ($1000) / _____ Partner ($500) / _____ Contributor ($250) (Check the sponsorship above that applies) SPONSORSHIP LEVEL FOR YOUNG AGENTS: $__________

Annual Membership Meeting and Installation of Officers provides an opportunity for our members and company representatives to meet and socialize at this special occasion which includes a reception and dinner. Meeting sponsors are recognized in our web-based Connecticut Independent Agent Magazine, on our web-site as well as during the evening program. Held in June each year. Sponsor: _____ Platinum ($1000) / _____ Gold ($500) / _____ Silver ($250) (Check the sponsorship above that applies)

SPONSORSHIP LEVEL FOR ANNUAL MEETING: $__________

TOTAL AMOUNT ENCLOSED FOR PROGRAMS SELECTED ABOVE: $_________ For complete details on each of the items listed above, please visit our website at www.iiact.org or contact Tracy Hearn at (860) 563-1950 or thearn@iiac.org Company Name & Type of Business: _______________________________________________________Date: _________ Street Address:

___________________________________________________________________________________ (Include city, state & zip code) Mailing Address (if different): _______________________________________________________________________ (Include city, state & zip code) Phone: (______) ______-________

Fax: (______) ______-________

Website: www.__________________________

Contact Name: ______________________________________ Email Address: __________________________________

Return form to: IIAC, 30 Jordan Lane, Wethersfield, CT 06109 Additional information on each program selected will be emailed to the contact person listed. Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

Page 15

2013 IIAC EVENTS Spring Conference Sponsored by the IIAC Young Agents Committee May 8, 2013 Wethersfield Country Club, Wethersfield, CT Annual Dinner Meeting and Installation of Officers June 11, 2013 Wethersfield Country Club, Wethersfield, CT 24th Annual Golf Tournament Sponsored by the IIAC Young Agents Committee August 8, 2013 Blackledge Golf Course, Hebron, CT Mid-Year Convention November 14, 2013 Aqua Turf Club, Plantsville, CT

Additional information and registration forms for the above events can be obtained by clicking on the event name above, going to the “Events” page of our website or by contacting Tracy Hearn at 860-563-1950 or emailing to thearn@iiac.org.

Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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ARE YOU TAKING ADVANTAGE

OF ALL YOUR MEMBERSHIP HAS TO OFFER??

Big “I” Advantage Programs

Big “I” Professional Liability As a member, you have access to the Big “I” Professional Liability program, the most respected and comprehensive program in the business offering a variety of insurance agent’s E&O products that are hand-selected for their superior reputation and exceptional performance. www.iiact.org - Member Resources page / Or call Laura Szatkowski at 860-563-6510

Big “I” Markets Exclusively available to Big “I” members, IIABA’s online market access program features specialty/niche coverages, program business and hard-to-find markets. Unlike similar programs, there are no registration fees, no volume commitments and competitive commissions. www.bigimarkets.com

Big “I” Flood Big “I” Advantage operates as a managing general agency and agents participate as sub-producers for the Big “I” Flood Program. Selective Insurance Company is the provider for this NFIP Write-Your-Own program and they make writing flood insurance easy and profitable leaving the method of quoting up to the agent. www.independentagent.com/flood

Big “I” Retirement/Benefits Having trouble deciding which retirement plan is right for you or your agency? Big "I" Retirement Services is here to help you choose which plan best meets your circumstances. www.independentagent.com/retirement

RLI RLI's Personal Umbrella Policy stands atop your client’s existing homeowner and auto insurance to provide an extra layer of personal liability protection. RLI’s @Home Business policy, responds to the needs of over 100 eligible business classes on an ISO BOP form. www.iiact.org - Member Resources page / or call Rose Mullaly at 860-563-6510.

Business Resources Enjoy group discounts for a variety of services to assist in managing your agency. Caliper (employee testing) ; DHL (express delivery); Mines Press (printing); Hertz (car rental); Artizan Internet Services (Service 911, CSR 24). www.independentagent.com.

InsurBanc InsurBanc is an independent community bank founded by agents exclusively for agents. www.insurbanc.com

Virtual University Research Library - For those who seek a smarter way to research, the VU provides the access. Ask an Expert Service - Big "I" Members can submit questions to our "Ask an Expert" service and a response is usually sent within 3-5 business days, but often sooner. Online Courses - The VU offers a wide variety of online classes. www.independentagent.com/vu

Best Practices The Best Practices program provides member agents with meaningful performance benchmarks and business strategies that can be adapted to improve the performance of your agency, thus enhancing agency value.

Government Affairs The Big “I” is your advocate on the issues that matter to your success, whether the issues occur in state legislatures, Washington D.C., your state insurance department, the NAIC, or the judicial system.

Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

(Click on the website for a direct link)

ACE Private Risk Services 860-828-7931 www.aceprivateriskservices.com

Connecticut Underwriters, Inc. 860-347-9600 www.ctunderwriters.com

Agency Intermediaries, Inc. 203-453-2859 www.agencyint.com

Crystal Restoration Services 203-853-4179 www.crystal1.com

American Integrity Restoration 860-657-2100 www.ctrestoration.com

Disaster Restoration Services, LLC (DRS) 860-788-6822 www.drscleanup.com

Arthur J. Gallagher Risk Management Services, Inc. 860-560-2766 www.ajg.com

Empire State Brokerage Services 203-798-0067 www.empirebrokerage.com

Astonish Results, LP 401-440-5955 www.astonishresults.com

Fairfield County Bank 203-431-7527 www.fairfieldcountybank.com

Broadway Premium Financing 800-728-7255 www.broadwaypremium.com

W. Ford Agency, Inc. 203-549-0005 www.wfordagency.com

Capitol Bail Bonds, LLC 860-899-1956 www.capitol-bail-bonds.com

Heimgartner Insurance Services, Inc. 860-436-3991 www.heimgartnerinsurance.com

Chroma Building Corporation 203-602-8838 www.chromabuilding.com

The Hingham Group 781-749-0841 www.hinghammutual.com

Coastal Agents Alliance 609-390-1645 www.coastalagentsalliance.com

HSB Associates, Inc. 860-722-5539 www.hsb.com

Connecticut Interlocal Risk Management Agency 203-498-3000 www.ccm-ct.org

HTO International, LLC 860-938-0853 www.htointernational.com

For information on how to become an Associate Member of the Independent Insurance Agents of Connecticut and a complete list of benefits, please visit the “Join” page of our website or contact Rose Mullaly at 860-563-1950 or email rmullaly@iiac.org Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

(Click on the website for a direct link)

Hybrid Insurance Agency 860-688-440 www.hybridins.com

Maynard Insurance Group 203-318-0008 maynardinsgrp@yahoo.com

Insurance Agency Accounting & Bookkeeping 860-614-7268 www.brendadicarlollc.com

Oakbridge Insurance Services 860-906-0120 www.oakbridgeins.com

Insurance Engineering Solutions 860-429-5156 www.insuranceengineeringsolutions.com

Plymouth Glass & Mirror 860-283-0276 www.plymouthglass.com

InsurBanc 866-467-2262 www.insurbanc.com

JN Phillips Auto Glass 781-939-3400 www.877autoglass.com

Iroquois of Connecticut, Inc. 860-621-8412 www.iroquoisct.com

Premium Assignment Corp. 603-421-1953 www.premiumassignment.com

Kapura Cleaning & Restoration 860-747-2100 www.kapurarestoration.com

Pro-Klean Cleaning & Restoration Services, Inc. 866-463-2313 www.pro-klean.com

Joseph Krar & Associates 860-628-3967 www.jkrar.com

PuroClean Mitigation Services 860-516-8083 www.puroclean.com

J.P. Maguire Assoc., Inc. 800-233-8220 www.jpmaguire.com

Renaissance Group, Inc. 860-307-2957 www.renaissanceins.com

J. T. Frechette Companies, LLC 203-605-9007

Servicemaster QRV Regional Group 203-386-1565 www.servicemastergb.com

McGrath Insurance Group, Inc. 508-347-6850 www.mcgrathinsurance.com

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ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

ASSOCIATE MEMBER INSURANCE COMPANIES

(Click on the website for a direct link)

ServiceMaster by Wills 860-447-3265 www.servicemasterbymason.com

Acadia Insurance Company 860-331-2391 www.acadiainsurance.com

SERVPRO Cleaning and Restoration of New Haven, Waterbury & Naugatuck Valley 1-800-243-8812 www.servproofnewhaven.com

American Commerce Insurance Company A MAPFRE Company 603-888-8900 www.acilink.com

SERVPRO of Manchester-Bolton 860-649-0836 www.servproofwesthartford.com

American Strategic Insurance Company (ASI) 866-274-8765 www.americanstrategic.com

SERVPRO of Meriden 203-630-2273 www.servpromeriden.com

AmTrust North American, Inc. 860-257-7286 www.amtrustgroup.com

Steamatic of CT 203-985-8000 www.steamaticct.com

The Andover Companies 860-257-7286 www.andoverco.com

TAPCO 800-334-5579 www.gotapco.com

Central Mutual Insurance Company 877-281-4941 www.central-insurance.com

Target Insurance Services 860-284-0088 www.target-capital.com

Chubb & Son Insurance 203-782-4115 www.chubb.com

Thompson Agency, Inc. 860-693-4999 www.thompsonagency.net

Cincinnati Insurance Company 513-870-2000 www.cinfin.com

Travel Insured International, Inc. 860-528-7663 www.travelinsured.com

C N A Insurance 860-513-6460 www.cnacentral.com

United Cleaning & Restoration, LLC 800-835-0740 www.unitedcr.com

Connecticut Fair Plan 860-528-9546 www.ctfairplan.com

XS Brokers Insurance Agency, Inc. 617-471-7171 www.xsbrokers.com

FirstComp 888-500-3344 www.firstcomp.com

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ASSOCIATE MEMBER INSURANCE COMPANIES

(Click on the website for a direct link)

Guard Insurance Group 570-825-9900 www.guard.com

Peerless Insurance 860-571-2201 www.peerless-ins.com

Harleysville Worcester Insurance Company 800-225-7387 www.harleysvillegroup.com

Plymouth Rock Assurance Corporation 860-681-2766 www.plymouthrock.com

The Hartford 860-409-6150 www.thehartford.com

PMA Insurance 203-379-3825 www.pmagroup.com

Kemper, A Unitrin Business 203-775-5846 www.ekemper.com

Progressive Insurance Company 800-274-4055 www.progressiveagent.com

The Main Street America Group 603-358-1352 www.msagroup.com

QBE 860-570-0802 www.qbeamericas.com

MEMIC 207-791-3370 www.memic.com

Quincy Mutual Fire Insurance 671-770-5171 www.quincymutual.com

MetLife Auto & Home 860-668-2699 www.metlife.com

Safeco Insurance 603-358-4156 www.safeco.com

MiddleOak 860-638-5132 www.middleoak.com

State Auto Insurance Companies 860-633-4678 www.stateauto.com

New London County Mutual 860-887-3553 www.nlcinsurance.com

Travelers 860-277-6948 www.travelers.com

Ohio Mutual Insurance 419-563-0959 www.omig.com

Utica National Insurance Group 800-695-1914 www.uticanational.com

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WHO ARE THE INDEPENDENT INSURANCE AGENTS OF CONNECTICUT? The Independent Insurance Agents of Connecticut was founded in 1899 as the Connecticut Association of Local Fire Insurance Agents. The organization’s name was changed in 1913 to the Connecticut Association of Insurance Agents. This name was considered more representative of the membership due to the expansion of the property-casualty business coverages and the increased presence of casualty and surety agents. In 1975 the organization became The Independent Insurance Agents of Connecticut to emphasize its members abilities to work with a variety of insurance companies and industry representatives. The Independent Insurance Agents of Connecticut has always been in the lead on important issues for agents. The list is long as IIAC has worked with regulators and the insurance industry on important issues such as agent licensing, anti-rebate laws, ownership of expirations, banking and insurance, and agent compensation to name a few. Today IIAC offers a wide variety of products and services to its members. The education calendar offers a full assortment of choices for licensing, continuing education and advanced degree programs. In addition, IIAC offers several insurance programs for our members that can be purchased to protect their agency business and insurance products that members can sell to their customers. IIAC also offers technical and regulatory assistant to our members. Technical advice is available at the staff level and through the Virtual University where you can “Ask The Expert.” In addition, IIAC meets regularly with the Insurance Commissioner and department staff to discuss current market conditions and consumers issues. IIAC is a strong advocate for independent agents at our state capital and in Washington D.C. Whatever the issue may be, IIAC is the voice for independent agents as we represent the interests of our membership. Our national association, IIABA is a predominant lobbying force in Washington and is constantly ranked among the top 10 of all the lobbying groups in the United States. The Big “I” mission succinctly captures our purpose: “to provide independent agents with a sustainable competitive advantage.” To accomplish that, IIAC is the unrelenting advocate on the issues that shape the environment in which our membership conducts business. IIAC is the voice in the halls of Congress, the state capital and in boardrooms across the nation.

INSURPAC InsurPac is the Political Action Committee (PAC) of the Independent Insurance Agents & Brokers of America (IIABA). It represents the unified political voice of IIABA's 23,000 member agencies and 300,000 agents and brokers nationwide. It is the largest property-casualty insurance industry PAC in the country, and is one of the primary reasons the Big "I" is routinely rated among the most successful lobbying groups in Washington, DC. "Lobbying and a well-funded PAC go hand-in-hand," says Charles Symington, IIABA's Senior Vice President of Government Affairs. "InsurPac's voice resonates through the halls of Congress on behalf of the Big "I". Every elected official knows that a contribution from InsurPac is a contribution from 23,000 small business owners." InsurPac raises funds by asking for voluntary personal contributions from independent agents and brokers throughout the country. By pooling money together, InsurPac helps elect candidates and re-elect members of the U.S. Congress who share IIABA's business philosophy. This concept of pooling personal contributions together for the greater good is essential to understanding the importance of PACs. As an individual, you can make the average contribution of $200 to a Congressman, or you can invest that $200 in a PAC, which in turn combines that with 9 other donors and gives the same Congressman $2,000. At the end of the day, PACs are able to speak with a collective voice that is much louder than that of an individual. It is impossible to overvalue the power of a collective voice -- of a collective InsurPac speaking on behalf of the Independent Agency system. Independent Insurance Agents of Connecticut - www.iiact.org - January 2013 Issue

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