WINTER 2011 • VOLUME 29 • ISSUE 1 INDEPENDENT INSURANCE AGENTS OF IOWA
Our Integrity Accountability begins with honesty.
The Question “What are we getting for all of the dues we pay”?
Don’t Get Caught In The Web! IIAI 2010-2011 Board of Directors Steve Anderson’s Tech Tips The Last Page What has the Big “I” done for you lately?
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President’s Report Our Integrity Independent Insurance Agents of Iowa 4000 Westown Parkway West Des Moines, Iowa 50266 (515) 223-6060 • FAX (515) 222-0610 800-272-9312 (In-State only)
“Integrity matters and it is a must for all of us to live by as the principal in our lives. Family, business and yes, politics; we must all give our best effort.”
Advertisers
by Mark Currie, CIC, CPIA
27 Celina Insurance Group
Page 5
26 EMC Insurance Co.
Advertising Editor Melissa Meiners
President
Mark Currie, CIC, CPIA - West Des Moines
BOARD OF DIRECTORS
President-Elect
Brian Petersburg - Decorah
Treasurer
Paul Pohlson - Grinnell
National Director
Tom Richardson, CIC - Keokuk
Directors
Terry McDonald, CIC - Iowa City Scott Morningstar, CPCU - Lisbon Jerry Mease - Winterset Eldon Hunsicker - Ottumwa Terry Friedman, CPCU - Dubuque Tim English, CIC - Dyersville John Dalton - Council Bluffs Steve Madsen - Marshalltown David Rowley, CPCU, CIC, AU - Spirit Lake
Past President
Jeff Bohnenkamp, CIC - Spencer
Chief Executive Officer Bob Skow, CPCU, CAE bob@iiaiowa.org
Membership Operations Coordinator
IIAI OFFICE STAFF
Melissa Meiners melissa@iiaiowa.org • Ext. 15
Technology & Communications Administrator Jeanne Reynolds jeanne@iiaiowa.org • Ext. 17
Membership Services Coordinator Marilyn Paul, CPCU, AIT, AAM, CPIW marilyn@iiaiowa.org • Ext. 11
Membership Services Coordinator Brenda Kluger, MBA, CIC, CISR, CPIW brenda@iiaiowa.org • Ext. 14
Customer Service Representative Megan Kincy megan@iiaiowa.org • Ext. 16
Membership Services Coordinator Marie Huggins marie@iiaiowa.org • Ext. 22
Receptionist
Cindy Grim cindy@iiaiowa.org • Ext. 12 Viewpoint is a publication of the Independent Insurance Agents of Iowa. Viewpoint is published quarterly: Winter, Spring, Summer and Fall. Viewpoint is mailed to Iowa insurance agents, Iowa Home Office Executives, Affiliate members, and other state associations and organizations.
14 Burns & Wilcox
22 First Western Insurance
National Directors Message The Question “What are we getting for all of the dues we pay”? “The IIAI has always been and continues to be a very strong and effective organization, and we as Iowa agents tend to see the effectiveness of our Iowa Agents Association and loose sight of exactly what the IIABA does for us as agents.”
7 Grinnell Mutual Reinsurance Co. 32 Big I Flood - IIAI 24 Big I Professional Liability - IIAI 28 Big I Professional Liability - IIAI 2 The IMT Group 12 IMWCA Iowa Municipalities Workers’ Compensation Association 23 Integrity Insurance 12 Iowa Mutual Insurance Co. 7 JM Wilson
by Tom Richardson, CIC
20 LeMars Insurance Co.
Page 9
7 Merchants Bonding Co. 27 M.J. Kelly Company
In This Issue
30 Northern States Agency
Don’t Get Caught in the Web!
18 Rain and Hail
Be aware of and mitigate E&O exposures from your website. by Sabrena Sally, CPCU Page 13
27 Pekin Insurance
25 Ringwalt & Liesche Co. 10 Rural Community Insurance Services 4 SECURA Insurance Co.
IIAI 2010-2011 Board of Directors
19 Society Insurance
Page 16
11 Taylor Insurance Services
Tech Tips:
6 Truckers Insurance
How to Choose and Use Strong Passwords, More Adults are Now Texting, What College Freshmen Don’t Know, New iPhone Apps for Insurance Quotes, Type Without Lifting a Finger. by Steve Anderson Page 21
8 West Bend We would like to thank our advertisers for their support. This magazine would not be possible without them. THANK YOU!
The Last Page What has the Big “I” Done for you Lately? by Bob Skow, CPCU, CAE — Chief Executive Officer Page 29
2011 Independent Insurance Agents of Iowa Sponsors Page 31
MISSION STATEMENT: The Independent Insurance Agents of Iowa will be an unrelenting advocate of the business, professional and political interests of its members; doing so by working in the public’s best interest and with the highest ethical standards.
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president’s report
OUR INTEGRITY}
|
Accountability Begins With Honesty By Mark Currie, CIC, CPIA
|Since my report, we have
last presidential
completed a major change in our State and Federal Government. I have listened to a lot of folks state how there will be changes we can live with. I’m worried that compliancy may follow. I note this is the time to not slow down or let the “new” politicians do their thing. The changes in the political environment were made for a few simple reasons…politicians said they would stand for a principal, but did just the opposite when in office, and their ability to listen to “we the people” was a lost principal. Is this the time to set back and see what happens? Of course not, in business as employers or employees, we are held accountable not only by our employers, but our clients. We must hold our politicians, our government accountable as well. Accountability begins with honesty, something that seems to be lacking not only in Politics but our culture as well. Too often, something is promised, but the action taken is the opposite. I appreciate the word “integrity”— doing what is right, even when no one is watching. None of us are perfect, but we must keep working at it. I like this quote from Heraclitus, a Greek Poet, Philosopher — “The Light of Integrity — The soul is dyed the color of its thoughts. Think only on those things that are in line with your principals and can bear the full light of day. The content of your character is your choice. Day by day, what you choose, what you think, and what you do is who you become. Your integrity is your destiny…it is the light that guides your way.” Start with yourself. Self evaluation is always good. Do you have “The Light of Integrity?” Think about people you
do business with, the companies you write for and represent, leaders in your community and state, our National Leadership — Do they all carry “The Light of Integrity?” Please, please don’t sit back and think things will work out without your support. Our industry is still under attack — we need to fight back with Integrity. Agents/ Agency Owners need to wake up. We have now seen government intervention and regulation that is destroying our businesses. Do I need to mention Healthcare and the new Crop Insurance Program? I must ask, what other industry is told by the Federal Government what you as a
The Light of Integrity The soul is dyed the color of its thoughts. Think only on those things that are in line with your principals and can bear the full light of day. The content of your character is your choice. Day by day, what you choose, what you think, and what you do is who you become. Your integrity is your destiny…it is the light that guides your way.” — Heraclitus
WINTER 2011 | | 5
president’s report
person can make. Will we be carved out of Health Insurance all together? WAKE UP AGENTS, we are being attacked. We are the front line for our customers on both Crop and Healthcare, but the Government demeans our great industry and agents as evil. December 27, 2010, the Des Moines Register printed an article titled “Create Iowa Insurance Exchange with Care.” They noted Senator Jack Hatch is crafting legislation to set up such an entity. He stresses it will be independent, and has given much thought to ensuring it won’t
be comprised of industry insiders with their own agendas. “There won’t be insurers or agents or brokers or hospital administrators” running the show, said the Des Moines Democrats. “That’s the right idea, and involvement of industry insiders should be only in an advisory capacity. This would make the best use of their expertise, but avoid potential conflicts of interest.” Without agents, brokers, insurance industry representatives, hospital administrators, medical professionals, how can this be created, put into effect, and left to
Integrity matters and it is a must for all of us to live by as the principal in our lives. Family, business and yes, politics; we must all give our best effort.
driven
development of an Insurance Exchange? Who will be the experts? I’m so frustrated with this “shut out” and “inability to discuss in a fair, open environment,” for our industry and others. Integrity matters and it is a must for all of us to live by as the principal in our lives. Family, business and yes, politics; we must all give our best effort. Don’t sit back, Agents — contribute to the State and Federal PACs, join committees within the Big “I” organization, support/get to know your State and National Politicians. VOICE your opinions, be involved in the Grassroots callings. If you sit on the sidelines, you will ultimately lose. Health Insurance and Crop Insurance are all ready under attack. What’s next, Workers’ Compensation? Do what you can to control your own destiny. Do it with knowledge, integrity and honesty. Always give your best effort and stay positive!
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national director report
THE QUESTION}
|
“What Are We Getting For All Of The Dues We Pay”? By Tom Richardson, CIC
|When was you heard a
the last time
customer ask; “What am I getting for all of the premiums I pay”? Most likely if you are still active in the insurance business, and could hear all of the conversations that go on in your office, that question in some form has been asked within the last few weeks, days, or hours. That question in a different form gets asked of your state and national Big “I” offices quite regularly, but in this form; “What are we getting for all of the dues we pay”? Your job is to explain to your customers what their premiums are paying for, and My job in this article is to explain what you get from your national association (IIABA) for the dues you pay. Before we go too far with this article, you need to know, if you don’t already, that when you become a member of the Independent Insurance Agents of Iowa, (IIAI) a portion of your dues goes to the Independent Insurance Agents and Brokers of America (IIABA) and you are automatically also a member of IIABA. The IIAI has always been and continues to be a very strong and effective organization, and we as Iowa agents tend to see the effectiveness of our Iowa Agents Association and loose sight of exactly what the IIABA does for us as agents. Now, I need to confess up front, until I became Iowa’s National Director, I really had no concept or understanding of what IIABA did, or make available to me as an agent. Now, two years into my directorship, I can truly write this article with a conviction that the IIABA is constantly striving to serve it’s member agents with the best possible representation, products, and services. In addition, the IIABA has no equal (or
rivals) when it comes to being a resource for, and behalf of Independent Insurance Agents in America. So, what has the IIABA done for us/you lately, and what does IIABA have to offer Iowa Agents? Following is just a sampling of what is being done to benefit Independent Agents in Iowa and the nation.
Governmental Affairs
The IIAI has always been and continues to be a very strong and effective organization, and we as Iowa agents tend to see the effectiveness of our Iowa Agents Association and loose sight of exactly what the IIABA does for us as agents
This should not be about what we didn’t get accomplished, but what could have been, and, wasn’t. What we didn’t end up with was a national health plan that most definitely would have left agents totally out of the health insurance delivery system. After working through the entire health care reform debate beginning in early 2009, and continuing on and on and on, you can be assured that your IIABA national staff gave you your money’s worth, and then some. I know there are some agents out there that look at Health Care Reform (HCR) and view it as a defeat for Independent Agents, but trust me when I say this; our staff (IIABA and IIAI) in Washington DC and Des Moines, and agents like you and me from all over America went toe to toe with our state and national legislators in countless hours of lobbying and discussions. In the end, what we got was not a win for agents, but a small victory and a sigh of relief for what could have been but wasn’t. The role of the agent was protected, we are going to have state based exchanges instead of National Exchanges. There was NO repeal of McCarran Ferguson, and the public option was taken out of the equation for at least two years. IIABA Governmental Affairs staff are continuing to work assisting individual
WINTER 2011 | | 9
national director report
states, as each respective states based exchanges are discussed and developed. The IIABA Governmental Affairs Washington DC staff work hard looking out for what’s best for Independent Agents.
of what products are being sold and what is available form Big “I” Markets. You have your own unique brokerage service available for a wide variety of commercial and personal products that many agents can’t find anywhere else.
Big “I” Markets
Big “I” Virtual University
Many agents have access to adequate markets and feel like they just don’t need another company. However, how many times as an agent have you come across a risk that you would like to write, but you just can’t find a product available with your contracted companies. Or, you’ve got a market for your client, but the price and coverage just aren’t satisfying yours or your customers needs? You need to take a look at the large selection of Commercial and Personal products available from Big “I” Markets. As a Big “I” member you have online market access to commercial and personal programs with no fees, no volume commitments, and competitive commissions. You can get a password from the Big “I” office in Des Moines, and take some time to go through all of the products available for you to sell. In addition, Big “I” Markets are continually adding new programs and product offerings. Once your signed up, you’ll get a weekly summary called “Two for Tuesday” which will keep you abreast
If you haven’t taken the opportunity to use the Virtual University, (VU) then you are missing out on an invaluable member resource for you and your agency. Quoting right from the IIABA Virtual University web page says it best: “The Big “I” Virtual University is the leading technical insurance and agency management information source on the industry-developed for agents, by agents.” One tool that I personally have found very useful in VU is “Ask the Expert”. Bill Wilson, the director of Big “I” VU has tapped some of the best minds in the insurance industry to act as a panel of experts assisting agents with claims and coverage questions. If you have a claim or coverage question that you need assistance on in a timely manner, just log onto the Big “I” VU web page on click on the link to “Ask the Expert”. Your question will be answered promptly, by any number of industry experts. This is an awesome tool to combat wayward adjusters and company underwriters. In
10 | | WINTER 2011
addition to the “Ask the Expert” resource, Bill Wilson is leading the battle nationally on agent’s continued battle with Certificate’s of Insurance. (COI) Within the VU web page is an entire section on COI’s, and other valuable tools to assist you in managing your agency and your risk. These are just three of the important services that IIABA provides to its member agencies, all at no cost to you other than the dues you pay. I have not even mentioned Trusted Choice, Consumer Agent Portal (CAP), InVest, IA Magazine, InsurBanc, Insurance News & Views, ACT, Legal Affairs, Crop Task Force, and so on. Well, hopefully you get the picture, and just log onto: www.iiaba.net and take a look for yourself what the IIABA has to offer in member services. I think you will find that your dues are a bargain for what your are getting in return. This is all in addition to the many benefits that the Independent Insurance Agents of Iowa offer you as agents. The combined package of IIAI, and IIABA make your dues one of the best values in the industry. So the next time you wonder, “What am I getting for the dues I pay”, you’ll know! As always, you are welcome to give me a call anytime, to discuss programs that IIABA provides or does not provide to its membership. Have a safe and prosperous winter.
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Don’t Get Caught in the Web! Be aware of and mitigate E&O exposures from your website by Sabrena Sally, CPCU About this article: Agency websites have become a core component of the marketing strategy for many independent agencies, but they also may present errors & omissions exposures that must be managed. This article explores some of the major E&O exposures that may arise and provides several E&O tips for mitigating those risks, as well as sample website disclaimers.
O
ver 40% of agencies insured though the IIABA-Swiss Re E&O program now have their own website, having grown from 19% in 2006. Having a good website, with robust functionality, has become a core tool for agencies with a modern marketing strategy. Agencies are moving to more complex websites to respond to consumers and clients who increasingly want to shop online and be able to handle basic service needs when convenient for them. Virtually all agency websites provide basic advertising for the agency, showing the agency name, logo, phone number, address and email link. Over the past eighteen months, however, applications for E&O show a clear trend toward agency websites expanding beyond standard advertising information, as might be expected from expanding consumer online behavior and the services being offered by competitors and other industries.
Advertising Exposure Let’s first examine what errors and omissions exposures an agency can face from the more traditional type of website. Many of the exposures on these sites are the same that exist in the ‘paper’ world. Advertising liability can arise out of the use or misuse of a trademark, or from the copyrighted material of others, and statements regarding the services available through the agency may be subject to regulatory requirements. At least one state, New York, makes this clear in Circular Letter No. 5 (2001),
feature, posting an appropriate disclaimer is a best practice. A sample disclaimer is provided at the end of this article for agents to use as a starting point and to customize to their agency’s situation. “Advertisements, Referrals and Solicitations on the internet,’’ where it states that “Advertisements that appear on the Internet are subject to all applicable existing statutory and regulatory guidelines and restrictions applicable to advertisements in any other medium.’’ E&O Tip: The same level of care in creating ‘paper’ advertising is appropriate for the agency advertising contained on the website. If in doubt, a quick consultation with your qualified legal counsel is well worth the cost. Websites commonly provide a button allowing a site visitor to contact the agency via email. One could certainly expect questions about what services the agency provides, hours open for business or even driving directions. Keep in mind, however, that there is no way to control what a visitor might choose to include in the content of their email. The visitor might decide to include confidential personal information (such as a name coupled with a social security, drivers license or credit card number) in the unprotected email, creating an exposure to breach of data privacy. E&O Tip: To help mitigate the liability exposure from this common website
Posting Website Content As a simplified case study, let’s view the stages a hypothetical agency might follow in expanding its website over time, and how these changes can affect the agency’s E&O exposure. After constructing a basic website, the next step an agency often takes is to add articles that will be of interest to site visitors. Articles of interest can range widely in subject matter and may be available for viewing only or also as a download. “What is an umbrella policy,’’ “How to implement an employee wellness plan,’’ and “Where to find information on OSHA requirements’’ are examples of topics seen on agency websites. Content can be general in nature or become more technical and specific to certain types of exposures. The options are practically endless. Posting informative articles on the agency website can draw visitors, generate stickiness with existing customers, and lead people to contact the agency for additional information. In addition to these positive benefits, there are risks that accompany posting information. E&O Tip: lf the content is original material created by the agency, practicing due diligence to ensure accuracy of the information is a key preventative
WINTER 2011 | | 13
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measure. The more specific the information provided, the higher the risk of generating allegations against the agency for misrepresentation or providing inaccurate advice. There is one significant difference between content posted on a website and content published in more traditional forms. Posting content online makes the information available to anyone regardless of their physical location. This instantaneous world-wide availability raises the issue of jurisdiction. It is not yet clear how legal jurisdiction might be applied to content published on a website. Including an appropriate legal disclaimer as part of posted information is for now one’s most effective tool in mitigating the jurisdictional risk. E&O Tip: lf the content is obtained from another source, the first step in risk management is to verify the expertise of the information’s source. This step helps minimize the exposure to allegations of misrepresentation or inaccurate advice. The information is also most likely copyrighted, creating exposure to allegations of copyright infringement. Obtaining written permission from the owner or licensor of the material prior to posting and giving appropriate credit of authorship can help mitigate the copyright exposure. lf the content is obtained under a licensing agreement, explore what options may exist to protect the agency via contractual indemnification. As with information authored by the agency, it is recommended that appropriate legal disclaimers be clearly posted with information obtained from other sources.
Website Referrals As agencies often receive requests from customers for referrals to other service vendors, it is a natural next step for the agency website to include links to these types of service vendors. Windshield repair services, CPAs for tax preparation, and disaster recovery solutions firms, are just a few examples of service vendor links seen on agency websites. Linking to
vendors on the agency website can create the same exposure to negligent referral that exists when the referral takes place verbally, through email or snail mail. Regardless of how a referral is provided, the best practice recommendation is to provide at least two referrals, leaving it to your customer to choose which vendor to use. lf the agency site links directly to a vendor, there also may be exposure to allegations of trademark infringement or unfair use of cyber marks from the vendor. E&O Tip: The best practices to follow to mitigate allegations of negligent referral for vendor referrals, including linking, are to: 1. obtain written permission from the vendor or site to which the link leads 2. provide always more than one selection for each type of service 3. ensure there are appropriate disclaimers regarding the services being provided by these vendors.
Interactive and Web-based Transactions Agencies are increasingly adding interactive website features to increase the effectiveness and efficiency of the agency. When interactive features are included on an agency website, more unique E&O exposures can quickly develop. The most rapidly growing exposure we have seen is the number of agency websites that are accepting application information. As part of the underwriting process on a recent renewal, we reviewed an agency website. The site opened to a very professionally designed home page. The site had clearly written text, eye-pleasing graphics, was well-organized, and quickloading. At the bottom of the first page, a link to the agency privacy statement was prominently posted. Following the various tabs, one could easily find informative articles which clearly showed authorship and contained appropriate disclaimer language. So far, so good. We then clicked on a button titled Personal Lines, on through the Auto Insurance button, to “Submit Application.’’
The Submit Application button led to a page where a full spectrum of personally identifiable information can be submitted, including: name, address, date of birth, social security number, drivers license number — basically all the information one needs to carry out identity theft. There was no indication of security being enabled by an ‘https’ displayed before the URL (evidence of creation of an SSL connection), and nothing contained within the web page itself referred to secure transmission of this data. An agency has the duty to protect personally identifiable information and a myriad of both state and federal laws apply. Violations of these laws carry significant financial penalties, not to mention the extreme damage that can be done to the agency’s reputation. One state, for example, specifically requires “encryption of all transmitted records and files containing personal information that will travel across public networks, and encryption of all data containing personal information transmitted wirelessly.’’ At the most recent count, forty-six states have some type of law or regulation addressing the protection of personal information. E&O Tip: Agencies that collect personally identifiable information (whether on their websites or not) should take the necessary steps to be knowledgeable about state and federal laws and regulations that protect such personal information and provide the level of data security required by them. A best practice is that the agency website create an SSL connection with the visitor’s browser before the visitor is asked to enter an id or password or any personal information, such as that included on insurance applications, so that this information cannot be read by unintended parties over the Internet. Many agencies are now expanding their online presence to include social media as a part of their advertising and customer interaction. ACT has an article and webinar on the E&O exposures arisContinued on page 18
WINTER 2011 | | 15
IIAI 2010-2011 BOARD OF DIRECTORS }
p r e s i d e n t
{
}
p r e s i d e n t
-
e l e c t
{
Mark Currie, CIC, CPIA
Brian Petersburg
INSPRO dba Insurance Associates
A & J Petersburg Agency
2501 Westown Parkway Ste 1104 West Des Moines, IA 50266-5901 (515) 226-9565 Fax: (515) 226-9443
106 College Drive PO Box 290 Decorah, IA 52101 (563) 382-3627 Fax: (563) 382-2512
mcurrie@insproins.com
bpetersburg@ajpetersburg.com
}
t r e a s u r e r
{
}
n a t o n a l
d i r e c t o r
{
Paul Pohlson
Tom Richardson, CIC
Ramsey Weeks, Inc
KSB Insurance Services
715 5th Avenue PO Box 568 Grinnell, IA 50112 (641) 236-3141 Fax: (641) 236-6689
515 Main Street PO Box 1000 Keokuk, IA 52632 (319) 524-4223 Fax: (319) 524-4235
paul@ramseyweeks.com
tomr@ksbinsurance.com
16 | | WINTER 2011
}
d i r e c t o r s
{
Terry McDonald, CIC
Scott Morningstar, CPCU
A. W. Welt Ambrisco Insurance, Inc.
Lisbon Insurance Agency
24 Westside Drive Iowa City, IA 52246 (319) 887-3700 Fax: (319) 887-3701
119 E Main St PO Box 397 Lisbon, IA 52253 (319) 455-2271 Fax: (319) 455-2682
tmcdonald@awwelt.com
scott@lisboninsurance.com
Jerry Mease
Eldon Hunsicker
Mease Insurance, Inc
NOEL Insurance, Inc
110 S 1st Avenue PO Box 127 Winterset, IA 50273 (515) 462-2913 Fax: (515) 462-2914
219 W. Fourth St. PO Box 370 Ottumwa, IA 52501 (641) 682-7533 Fax: (641) 682-6458
Jerry@MeaseInsurance.com
eldon@noelins.com
Terry Friedman, CPCU
Tim English, CIC
Friedman Insurance, Inc
English Insurance Agency, Inc
880 Locust St Ste 200 PO Box 759 Dubuque, IA 52004-0759 (563) 556-0272 Fax: (563) 556-4425
129 1st Avenue E PO Box 190 Dyersville, IA 52040 (563) 875-2716 Fax: (563) 875-2744
friedmant@friedman-group.com
rea@iowatelecom.net
John Dalton
Steve Madsen
Midwest Insurance Associates L.L.C.
Nauman-Madsen Insurance, Inc
2352 Railroad Highway Council Bluffs, IA 51503 (712) 325-0011 Fax: (712) 325-0031
24 East Main St #102 PO Box 98 Marshalltown, IA 50158 (641) 752-5568 Fax: (641) 752-3694
polarbear7286@yahoo.com
madsen@syscompia.com
} David Rowley, CPCU, CIC, AU Bank Midwest dba Bank Midwest Insurance 1525 18th St Ste 100 PO Box 248 Spirit Lake, IA 51360-0642 (712) 336-0505 Fax: (712) 336-3682 drowley@bankmidwest.com
p a s t
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Jeff Bohnenkamp, CIC Insurance Associates of Spencer 328 Grand Avenue PO Box 860 Spencer, IA 51301 (712) 262-1918 Fax: (712) 262-7316 jeff@iasinsure.com
WINTER 2011 | | 17
|DON’T GET Continued from page 15 Caught in the Web!
ing from the use of social media which can be found at www.iiaba.net/act at the “Website & Social Media’’ link.
Key activities for mitigating E&O exposures generated by a web presence It’s an exciting time as agencies become more creative in using the opportunities that websites can provide. Be creative, but not naive. Keep in mind that with every opportunity, there is risk. Consider the following quick tips to help mitigate your agency’s exposure to errors and omissions that may arise from your agency’s website: 1. Review website advertising with the same level of legal scrutiny toward copyright and trademark issues as the agency’s more traditional advertising 2. Post an appropriate Privacy Statement prominently on the website 3. Review original content posted on the website for accuracy and post appropriate disclaimers 4. Obtain written permission for content obtained from other parties, be confident they are a knowledgeable source, credit their authorship,
18 | | WINTER 2011
obtain the author’s indemnification (if feasible) and post appropriate disclaimers 5. lf you decide to refer to other service providers, provide more than one provider name, obtain written permission to link to them and post appropriate disclaimers regarding the services provided by the vendors 6. lf the website has interactive features that collect personally identifiable information, comply with all state and federal privacy and data breach notification laws and regulations and create an SSL connection with the visitor’s browser before the visitor is asked to enter an id or password or any personal information.
Sample Website Disclaimers Agents should consult with their local counsel to customize these sample disclaimers so that they fit their website, are positioned at the appropriate places on the site and comply with all of the federal and state laws and regulations that apply to them. These disclaimers are in addition to the Privacy Statement that the agency should include at the bottom of its website setting out its privacy policies.
Website Disclaimers Please review carefully! “This information is not an offer to sell insurance. Insurance coverage cannot be bound or changed via submission of this online form/application, e-mail, voice mail or facsimile. No binder, insurance policy, change, addition, and/or deletion to insurance coverage goes into effect unless and until confirmed directly with a licensed agent. Note any proposal of insurance we may present to you will be based upon the values developed and exposures to loss disclosed to us on this online form/application and/or in communications with us. All coverages are subject to the terms, conditions and exclusions of the actual policy issued. Not all policies or coverages are available in every state.” “Please contact our office at 555.555.5555 to discuss specific coverage details and your insurance needs. In order to protect your privacy, please do not send us your confidential personal information by unprotected email. Instead, discuss that personal information with us by phone or send by fax.’’ “Statements on this website as to policies and coverages and other content provide general information only and we provide no warranty as to their accuracy.
Clients should consult with their licensed agent as to how these coverages pertain to their individual situation. Any hypertext links to other sites or vendors are provided as a convenience only. We have no control over those sites or vendors and cannot, therefore, endorse nor guarantee the accuracy of any information provided by those sites or the services provided by those vendors.’’ “Information provided on this website does not constitute professional advice. lf you have legal, tax or financial placing questions, you need to contact a qualified professional.’’
KD KD
This article is intended only for educational or illustrative purposes and should not be construed to communicate legal or professional advice. You should consult legal or other professionals with respect to any specific questions you may have. Further, the statements and/or opinions contained are those only of the author and do not constitute and should not be construed to constitute any statement, opinion or position of Swiss Re, IIABA or ACT. Sabrena Sally, CPCU is Senior Vice President of Westport Insurance Corporation, a Swiss Re company, and manages the Big “I” Agency Professional Liability Program, which is endorsed by IIABA and 51 Big “I” state associations. Sabrena can be reached at sabrena_sally@swissre.com. Sabrena produced this article for the Agents Council for Technology (ACT), apart of the Independent Insurance Agents & Brokers of America. For more information about ACT visit www.independentagent.com/act or contact Jeff Yates, ACT Executive Director at jeff.yates@iiaba.net. This article reflects the views of the author and should not be construed as an official statement by ACT or IIABA.
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WINTER 2011 | | 19
Our Stability Stands the Test of Time
Donegal Insurance Group has achieved the Ward’s 50 for 6 consecutive years. Donegal Insurance Group is committed to delivering a better value to an ever-expanding network of independent agents. Making the Ward’s 50 Benchmark Group for property-casualty insurance companies for the sixth consecutive year shows how we combine safety, consistency, and strong performance to provide peace of mind. But in the end, it’s our long-term stability that makes us a valuable part of the independent agency system.
Call today and find out how you can put Donegal’s stability to work for you.
Call Rick Mason, Regional Vice President
800-545-6480 www.lemm.com
tech tips:}
|
How to Choose and Use Strong Passwords, More Adults are Now Texting, What College Freshmen Don’t Know, New iPhone Apps for Insurance Quotes, Type Without Lifting a Finger. By Steve Anderson
How To Choose and Use Strong Passwords Creating and using strong passwords is one easy way to help prevent bad people from accessing your accounts. Passwords are collected by the bad guys in many ways, such as by malware that scans the system and monitors Internet usage for usernames and passwords. Dictionary attacks are also used to guess passwords from a list of common ones. Most email systems are tough to attack with dictionary attacks because they won’t let you attempt login after login trying different credentials. The best defense is to use a good security suite and to keep it updated. These will make it much harder for malware to get on your system or to run unimpeded if it does. Most of them also detect and block phishing attempts. But you still want to have strong passwords. There are places where weak passwords can be compromised, such as the login for your PC. Now very few people, including the experts, do all the things experts tell them to do in this regard. After all, it’s inconvenient. Here are some guidelines for choosing a strong password: • The longer the better: At least 8 characters. • Mix upper and lower case, punctuation and numerals. • Avoid passwords that are words in a dictionary, especially common words. • Also avoid common passwords like “12345.’’ You’d be amazed how many
More Adults are Now Texting
people use passwords like these. • Avoid reusing passwords, especially those for critical resources like your e-mail, on other sites. Doing this exposes you to a wider compromise than necessary. Even with these suggestions, don’t make your passwords so complex that you can’t remember them. Most of us don’t have the memory bandwidth to deal with a large number of obscure passwords. A good next step is to use a password management program, such as Roboform or the open source Password Safe. Some suites, like Norton Internet Security 2010, include password management in them. These programs let you auto-generate strong passwords and it remembers them for you; you just remember a master password.
According to a new report from Pew Research Center’s Internet & American Life Project, 72% of American adult cell phone users now send and receive text messages, up from 65% last September. Teens continue to text more than adults with 50 messages a day “on average,’’ in contrast to the “typical 10 text messages sent and received by adults’’ every day, Pew said. The non-profit organization compared the results of its May survey of 2,252 adults with a survey it did previously on the cell phone habits of teens ages 12 to 17. According to Pew, reasons for the increase include reaching “a point where enough other people are texting that (adults) are drawn into using it because they can finally use it to communicate with a substantial number of their friends and family.’’ Also, “it may be that folks have been pushed by pricing into unlimited texting plans, which has the effect of encouraging people with those plans to text more, because they no longer think of the cost, and then text more people more often.’’ Some of that texting is done from behind the wheel. In a recent study, Adults and Cell Phone Distractions, Pew said that 27% of adults say they have texted while driving. The same proportion of driving-age teens (26%) also admit to doing so.
What College Freshmen Don’t Know Each August since 1998, Beloit College has released the Beloit College Mindset List. It provides a look at the cultural
WINTER 2011 | | 21
|tech tips: Know, New iPhone Apps for Insurance Quotes, Type Without Lifting a Finger
How to Choose and Use Strong Passwords, More Adults are Now Texting, What College Freshmen Don’t
Continued from page 21
touchstones that shape the lives of students entering college this fall. The list was originally created as a reminder to faculty to be aware of dated references, and quickly became a catalog of the rapidly changing worldview of each new generation. The Mindset List Website, the Mediasite Webcast, and its Facebook page receive more than 400,000 hits annually. Here are a few items from the list of 75 items: • Few in the class know how to write in cursive. • E-mail is just too slow, and they seldom, if ever, use snail mail. • “Go West, Young College Grad’’ has always implied “and don’t stop until you get to Asia…and learn Chinese along the way.’’ • Al Gore has always been animated. • “Caramel macchiato’’ and “venti halfcaf vanilla latte’’ have always been street
22 | | WINTER 2011
corner lingo. • In a country where 25% of young people under 18 have at least one immigrant parent, they aren’t afraid of immigration…unless it involves “real” aliens from another planet. • Clint Eastwood is better known as a sensitive director than as Dirty Harry. • They never twisted the coiled handset wire aimlessly around their wrists while chatting on the phone.
New iPhone Application for Insurance Quotes Available OK, so I don’t have an iPhone yet. But many people do. 2insure4less.com has released a new lnsurance Shopper iPhone application. It is the first mobile phone application of its kind. Now, iPhone and iPod Touch owners can receive insurance quotes directly through their mobile devices.
The Insurance Shopper application helps individuals save time when searching for affordable insurance quotes by storing their information on the company’s Website and helping them obtain quotes. This iPhone application connects with the Website to allow searches for a full range of personal insurance policies. The Insurance Shopper is an unbiased insurance quotes finder that locates the most competitive insurance quote based on the information submitted through the application. Within minutes, the iPhone user receives insurance quotes from multiple insurers to compare.
Type Without Lifting a Finger Many smartphones today come with an on-screen virtual keyboard. This type of keyboard has some advantages over Continued on page 25
We jump through hoops for you. Because you jump through hoops for them. For more about how Integrity can help you help your customers contact: Cathy Beaudin at 920-968-8326 or cbeaudin@imico.com integrityinsurance.com
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|tech tips: Know, New iPhone Apps for Insurance Quotes, Type Without Lifting a Finger
How to Choose and Use Strong Passwords, More Adults are Now Texting, What College Freshmen Don’t
Continued from page 22
a BlackBerry keyboard. Shortcut buttons appear when you need them and the keyboard disappears when not in use, allowing for a larger screen size for better viewing of other content. But for some people, the tactile feedback of a physical keyboard is more comfortable and reassuring. With a glass keyboard, you have to keep your eyes on the screen. And for some people, walking and typing with a virtual keyboard produces a lot of typos due to jerky movements. A new smart keyboard called Swype allows you to type without lifting a finger. The software allows you to trace the word out on the keyboard in one continuous swiping motion, from one letter to the next. Raising a finger off the screen after the last letter of each word starts a new word.
Predictive technology guesses what word you’re trying to spell. For example, typing the word “quick’’ on the Swype keyboard involves one continuous, Z-like swipe, starting with the letter “q”and ending with the letter “k.” Special swiping gestures capitalize words and add punctuation. Though using Swype requires an adjustment period, typing with it feels more fun and game-like than tapping individual letters on a glass screen. For people who don’t like typing with an on-screen keyboard, it’s a viable solution. Swype is currently preloaded on 10 devices in the United States, including smartphones from all four major carriers. Swype will launch on a few tablets running Google’s Android operating system by the end of the year. Swype isn’t currently available on the iPhone or iPad.
For more information presented by Steve Anderson, go to www.steveanderson.com Steve Anderson wears many hats these days. He has been a licensed independent agent for 30 years and is Executive Editor of The Anderson Agency Report (TAAR), a monthly newsletter dedicated to providing independent agents with the insurance technology information they need to more effectively manage and grow their agencies. He is also president of The Anderson Network, Inc. which was formed to help agents and brokers maximize productivity and profits using practical technology.
WINTER 2011 | | 25
I’m celebrating our 100th year by planning for our next 100 years. Jason Bogart, CPCU, ARM, Vice President of Branch Operations Our future will be marked by the relationships we forge with you—the independent insurance agents who represent us. You’re the reason we’ll continue to investigate new market opportunities. Why we’ll develop competitive products. Why we’ll maximize the use of new technologies. Why we’ll emphasize ongoing professional development for our staff. By helping you profitably and efficiently grow your agency, EMC Insurance Companies will continue to serve you and your customers today and well into the future.
Des Moines Branch: 800.362.2227 | Home Office: Des Moines, IA
www.emcins.com © Copyright Employers Mutual Casualty Company 2011 All rights reserved
M. J. Kelly of Iowa
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Relax. We’ll take the risk. M. J. Kelly Company is dedicated to providing excellent markets and service to our clients. At M. J. Kelly, our products put us ahead, and our approach set us apart. You can relax. We’ll take the risk.
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Write for a company that continually searches for ways to become the easiest company for your agency to communicate and do business with.
• Life, Annuity, and Health Specialists LIFE
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Big “I” Markets
Hunts Down
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Partnership with Markel opens door to insuring sportsmen Big “I” Markets was created primarily to offer member agents access to specialty niche markets that they otherwise might not want, need, or could not find access to through a direct carrier appointment. The recent expansion of new markets fits that strategy perfectly. Big “I” Markets, in partnership with Markel Insurance Company, is pleased to introduce its new niche program for Outfitters & Guides, Rod & Gun Clubs (includes shooting clubs) and Hunting and Fishing Lodges & Plantations. Marketed through Big “I” Markets, this outdoor insurance program is available on a licensed and admitted basis in all states except Alaska and Hawaii.
Program Features and Coverage Highlights: o Liability limits available: $300,000 occurrence/$900,000 aggregate $500,000 occurrence/$l million aggregate $1 million occurrence/$3 million aggregate o Property insurance forms available are Basic, Broad, and Special. Deductibles start at $1,000. o Inland Marine coverage for insureds’ and customers’ personal property, equipment, etc. o Excess liability limits to $5 million, umbrella, business interruption, and equipment breakdown. o No liability deductibles.
www.bigimarkets.com
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What Has The Big “I” Done For You Lately? By Bob Skow, CPCU, CAE — Chief Executive Officer
A
s I start my 21st year as the lead lobbyist for the Independent Insurance Agents of Iowa I have reflected back on the past 20 years. The Big “I” has won battle after battle for Iowa’s independent agents. I started to make a list of those accomplishments this Association has made for the benefit of its membership and when I hit over 50 victories and was only half way through the twenty years it occurred to me that the past only matters in part. What really matters is what have we done for you lately?
“IIAI formed two task forces of agents to help develop a game plan and design an advocacy attack for 2011 crop insurance and health insurance issues .” So, I stopped making a list that totals over 100 political and regulatory victories the Iowa Big “I” has lead over the last 20 years. I realize it is what is going on now
that really matters! While I can say with certainty the Iowa business landscape for independent agents would be dynamically different if it weren’t for Independent Insurance Agents of Iowa. It is no secret that at the Federal level 2010 was not a good year for agents. Between crop insurance and health insurance, I am not sure which is a bigger disappointment in our ability to successfully protect agents’ turf. What I do want to focus on is what are we doing about it? In December of 2010, IIAI formed two task forces of agents to help develop a game plan and design an advocacy attack for 2011 crop insurance and health insurance issues. A group of 15 agents met here at the office to discuss crop insurance issues, and we put together the following plan on how we need to respond in 2011. Here is what was decided.
We recently (Jan. 2011) sent a letter to RMA asking that they address the following issues: • Require companies to remove the retention clause from their contracts • Request that RMA grant the agent organizations a seat at the table for negotiations that impact the agent community • Remove the cap from the SRA on agent commissions • Remove the Coventant not to sue provision • Address the inequities for the Group I states IIAI also sent letters to Iowa’s Congressional delegation asking that Federal Legislation be supported that does the following: • Require companies to remove the retention clause from their contracts • Request that RMA grant the agent organizations a seat at the table for negotiations that impact the agent community • Remove the cap from the SRA on agent commissions • Remove the Covent not to sue provision • Address the inequities for the Group I states
WINTER 2011 | | 29
|What has Continued from page 29
the Big “I” Done for you Lately?
IIAI has sent letters to all the crop insurance companies asking them to support the agents in doing the following and responded to our organization their positions on the following: • Require companies to remove the retention clause from their contracts • Request that RMA grant the agent organizations a seat at the table for negotiations that impact the agent community • Remove the cap from the SRA on agent commissions • Remove the Coventant not to sue provision • Address the inequities for the Group I states
Insurance Underwriters and the National Association of Insurance and Financial Advisors to join in a collective movement here in Iowa. Realizing we must at the State level respond to the Federal law mandating states set up insurance exchanges we elected to be proactive and draft our own legislation and go on the offense. I am pleased to report the bill has been filed, and we are working hard to move this legislation through the process. The bill preserves the role agents play in the selling and servicing of health insurance. In addition, it spells out minimum compensation levels for agents. If you would like a copy of our bill draft please let us know.
A group of Iowa agents will go to Washington in April to focus on this task.
Bottom line is we understand that one of the key reasons this Association exists is to advocate for independent agents. It is a role we dedicate a great amount of our resources! During the
On health insurance we decided to form a coalition with the Health
Iowa Legislative Session, I am at the Capitol every day, joined by multi-client lobbyist, Larry Blixt, who we retained to help. During the year I attend numerous political fundraising events and distributing checks for donations from our Political Action Committee. Many of these events are on weekends, and at night. If we didn’t do these things your voice would not be as loud as it is. So, when you ask what has the Big “I” done for you lately, we think your answer will be where do I start?! Your Association will be fighting those legislative, regulatory, legal, contractual and public opinion battles every day in 2011…on your behalf!
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