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July/August 2017
by Jon Spaugy, BIG CEO
AND THE HITS KEEP COMING It seems like the BIG annual convention just ended and it’s already time for the NoCal “convention lite” edition. Although we call it a “minivention,” it is fast becoming a full-fledged event. If you weren’t able to join us in the desert last May – or if you want to attend another outstanding networking / educational / business-growing / entertaining event – start planning a business vacation to Wente Vineyards in Livermore. So why should you come to our 5th annual Minivention? How about some CE credit while taking an Ethics class, which we all need to renew or licenses PLUS a full afternoon of exhibitors, all for the cost of a movie and popcorn (but no drink)? The trade show already has 40 booths sold with top companies like Safeco, Mapfre, Kemper, Alliance United, Arrowhead, Vertafore, and ITC already booked and ready to talk business. All that, plus we will feed you, too. The Wente Vinyards is a beautiful venue you’ll definitely want to revisit. Two exceptional restaurants, a Greg Norman-designed golf course, and (of course) and tasting room all await you at the country’s oldest continuously operated family-owned winery. There are also tours of the garden and vineyards, as well With temperatures in the 80’s amid sunny skies, plus close proximity to San Francisco and the Bay area, why not make this a four-day weekend getaway? At the Sunday morning session of the convention, I mentioned that sometimes I feel like an event planner. With education cruises, baseball games, meetings, conventions big and small, golf tournaments, I guess I am. And that’s a good thing. I know that some
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of the best business is conducted outside the office. Sometimes it is much more advantageous to network in stadium seating with a frosty beverage in your hand than in a conference room drinking stale coffee. More and more, the electronic world is suffocating us. And much like the frog in the pot, we don’t know we are boiling. The irony is that the very technology that is supposed to help us be more connected is actually isolating us. I’ll be honest; it’s mind-blowing that this is Minivention 5. At the same time, it doesn’t surprise me, because there is a real need for it. Getting away from your business to refresh and strengthen your business (another irony) is exactly why you need to come. Visit the BIG website at www.biginsusa.com and register today.
Get Active, Get Involved, Get BIG!
CA INSURANCE COMMISSIONER DAVE JONES SAYS CBO REPORT CONFIRMS DIRE CONSEQUECES FROM REPUBLICAN REPEAL EFFORT
Photo: http://latimesblogs.latimes.com Insurance Commissioner Dave Jones issued the following statement in response to CBO report findings on Republican effort to destabilize health insurance market: “The CBO report confirms that the Senate ACA repeal bill would devastate the lives of 17 million Americans when it causes them to lose their health insurance a few short months from now. Those who find a way to hold on to their coverage can expect 25 percent rate increases next year. The dire consequences of ACA repeal for Americans will get even worse by 2020 when 27 million people will lose their health insurance coverage, increasing to 32 million people by 2026. Americans want affordable premiums and to know that their health insurance will cover their costs when they need care. Regardless of what strong-arming President Trump and Congressional leaders may be engaged in, it is the public, the overwhelming majority
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of whom oppose the repeal of the ACA, whose health and financial security must be our primary concern. The uncertainty created by Trump and the Republican leaders of Congress and their refusal to fund and enforce the ACA is bringing us close to the point of no return when it comes to significant rate increases for 2018 and the potential threat of insurers withdrawing from the market. As the insurance regulator of the largest insurance market in the country my message is simple - do your jobs and pass a bill to fund the cost-sharing reductions in the ACA that will stabilize the market and stop working on new ways to deny Americans health care coverage.� From California Department of Insurance (www.insurance.ca.gov)
WHY EXIT INTERVIEWS MAKE SENSE By Dana Borowka, MA, Lighthouse Consulting Recently a strange occurrence got me thinking. On a personal note, I love to sail. After being members of a boat club for over ten years, my wife Ellen and I decided to move to another club. When we informed the club we were leaving they were highly efficient in deactivating our gate codes and privileges. No surprise there. But it was what they did not do that surprised us. No one asked us why we were leaving. In talking to members at the new club as to why they didn’t join our old club we discovered there was a common complaint and it had nothing to do with boats: they did not like the food at the club. This organization is needlessly losing customers over something that could be fixed. If only they had a process of conducting exit interviews. For many a business, the exit interview has fallen out of favor. But in April 2016 the Harvard Business Review published an article singing the praises of exit interviews titled “Making Exit Interviews Count” by Everett Spain of the U.S. Military Academy at West Point and Boris Groysberg of the Harvard Business School. The authors made their case in the article’s opening abstract: An international financial services company hired a midlevel manager to oversee a department of 17 employees. A year later only eight remained: Four had resigned and five had transferred. To understand what led to the exodus, an executive looked at the exit interviews of the four employees who had resigned and discovered that they had all told the same story: The manager lacked critical leadership skills, such as showing appreciation, engendering commitment, and communicating vision and strategy. More important, the interviews
suggested a deeper, systemic problem: The organization was promoting managers on the basis of technical rather than managerial skill. The executive committee adjusted the company’s promotion process accordingly. “In today’s knowledge economy, skilled employees are the asset that drives organizational success,” state Spain and Groysberg. “Thus companies must learn from them—why they stay, why they leave, and how the organization needs to change. A thoughtful exit-interview process can create a constant flow of feedback on all three fronts.” Why Some Experts Are Cool to Exit Interviews “I am not a fan of exit interviews,” says Beth Smith, president of A-list Interviews and the author of Why Can’t I Hire Good People: Lessons on How to Hire Better. “I think it is a matter of too little too late.” A horrible hiring mistake led Smith to create a company and write a book to help improve hiring results. Here is her take on the drawbacks of exit interviews: Exit interviews are specifically designed for the employer. They do not help the exiting employee at all, because the exiting employee usually needs a reference from the company they are leaving. Telling the truth about the company doesn’t help the employee get that reference, and in certain circumstances, the information gleaned from the interview could be used against them. In addition, if there is negative feedback given, it is sometimes dismissed by the interviewer. “Well, that employee is just mad, so their feedback isn’t accurate.” My belief is that if an employee is leaving the company, they have attempted to tell someone in the company why. Whether it is a review, a conversation or a complaint, most employees don’t just up and leave without some sort of a notification. Smith’s work is about interviewing right when hiring (something I agree with and advocate should be supported with proper in-depth workstyle and personality testing). Understandably, her coolness toward exit interviews echoes the view of many in business. Smith’s belief is that if an employee is leaving the company, they have already attempted to tell someone in
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the company why. Who wasn’t listening to the employee when they were there? Taking a Fresh Look at Exit Interviews True, exit interviews have their shortcomings; however, in my opinion, it is a miscalculation to not conduct exit interviews because of the inherent faults. The research of Spain and Groysberg detailed in the Harvard Business Review supports this: Though we are unaware of research showing that exit interviews reduce turnover, we do know that engaged and appreciated employees are more likely to contribute and less likely to leave. If done well, an exit interview—whether it be a face-to-face conversation, a questionnaire, a survey, or some combination of those methods—can catalyze leaders’ listening skills, reveal what does or doesn’t work inside the organization, highlight hidden challenges and opportunities, and generate essential competitive intelligence. Other HR experts advocate a return to exit interviews— if they are done right. “If an organization is a revolving door and it doesn’t care why, then exit interviews are a waste of their time and money,” says Claudia Williams, former associate general counsel, Global HR & Litigation, for The Hershey Company. “Most organizations, though, want to know why people are leaving and going to their competitors or elsewhere, especially when the attraction and retention of great people is a top, if not the top, concern for CEOs in the U.S. and globally.” Williams, founder of a consulting company called The Human Zone and the author of the upcoming book Frientorship, argues an exit interview gives the employer a chance to get raw, candid feedback on what it does well and what it needs to improve – what’s keeping employees there and what’s causing them to leave. “Time and again I’ve seen leaders surprised by the results of an exit interview, which means they don’t have their fingers on the real pulse of the organization,” says Williams. “An employer might be able to stop a great employee from leaving if it knows the real reasons behind the employee’s decision.”
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The Value of Exit Interviews “I valued and conducted exit interviews often in the army, individually and through the Army’s initiatives enterprise wide,” says Brigadier General Jeffrey Foley, U.S. Army (retired). “In the army, I often conducted exit interviews when people were transferring out to other army organizations when their tour of duty was up.” “I valued and encouraged the conducting of exit interviews in the army, individually and through the initiatives sponsored by the army enterprise wide,” says Brigadier General Jeffrey Foley, U.S. Army (retired). “In the army, we often conducted exit interviews when people were simply transferring out to other army organizations when their tour of duty was up.” Foley, who now runs a leadership consulting practice named Loral Mountain Solutions and is the coauthor of the book Rules and Tools for Leaders, offers his views on the four major benefits of exit interviews: 1. You may learn the real truths about your organization. You will likely learn what you may know or should know about typical challenges like money, opportunities for growth, shortfall of benefits, etc. You may also learn more profound truths like distrust of supervisor, harassment, illegal or unethical conduct that people were reluctant to report for whatever reason. 2. You set a great example for the entire organization that the leadership cares. The word will get out that the losing organization leaders cared enough to at least ask. If there is a standard practice of exit interviews and things changed in the organization for the better as a result of what was learned, there can be great benefit to the organization. 3. You may learn insights into your competition. Great information can be learned about what the competition is doing or offering that might affect your organization. 4. You can learn how to help those departing be successful. For the good people departing, it offers an opportunity for the losing organization’s leadership to help the person be successful in the next chapter of their lives. This support can be provided by letters of recommendation, references, or something unique based on an
extraordinary event that caused the departure, such as serious sickness or tragedy that occurred that may have been previously unknown. Williams offers a final warning: “But proceed with caution,” she says. “Employers have to be ready and willing to act upon the information they receive, both to harness their strengths and to fix what’s broken (which sometimes means a workplace investigation into allegations of individual or corporate misconduct). Otherwise, the exit interview is a bunch of meaningless words.” About the Author Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization.” If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, 3130 Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310) 453-6556, dana@lighthouseconsulting.com & its website: www.lighthouseconsulting.com.
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Carlos Basurto I.C. Training Centers
By Don Lukenbill Many BIG members are years removed from their pre-licensing training. Obviously, if you have an insurance license, you have been through the coursework. Of course, that doesn’t mean there are not any CSR’s or other agency personnel could possibly benefit from being licensed. If so, BIG knows just the place to make that happen. Guiding tomorrow’s agency stars is no easy task. We were wondering what sort of person is up for the challenge, and found our answer within the ranks of the BIG membership. Carlos Basura runs the I.C. Training Centers, a top resource for bringing the next generation of agents into the insurance business. We thought it would be interesting to talk with him about today’s pre-licensing experience and what it is like to be starting at square one. Q: Let start at the beginning. What attracted you to the insurance business? What attracted me to the insurance business was that I saw it as a business that wouldn’t be affected too much by the economy and of course the potential for making good money. I was first introduced to life insurance and the commission people were receiving. But it looked hard to learn, I was never great in school so I was nervous to begin. Once I got involved, I actually understood it really well and I was great at it. Q: Are you working exclusively in insurance training? After being in the insurance industry for a several years as well as working part time teaching for a school, I decided to start my own insurance training school. At this time, my focus along with my teams is to train in pre-licensing and train on how to pass your insurance state exam but I still remain active in insurance sales as well. Q: I. C. Training works with insurance agent hopefuls.
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What do you think are some factors driving people toward insurance careers? There is always people attracted to the industry since there are so many different paths. With insurance being one of the biggest industries in the U.S., everything that exists needs insurance (from auto, buildings, homes, ideas, celebrities, athletes.) I believe that people are looking to work in the insurance industry because of the opportunity for growth and income, and they can also have the opportunity to become their own boss. Q: Have you noticed an increase in attendance at your school? Yes, since beginning our classes in our Ontario location earlier this year we have noticed the increase in agents training to obtain a license, the increase has been seen with agents obtaining more than just one license, they are obtaining both Property & Casualty and Life & Health as the industry is great and getting more competitive. We have also changed our marketing approach, the few schools left are using old ways of marketing which in today’s fast moving digital world doesn’t work. So, our marketing team and myself have worked hard hand in hand to change the marketing into a new way that most haven’t done. Q: For someone leaning toward insurance, what can they expect in terms of prerequisites, course material, etc.? The prerequisites aren’t that extensive, one of the major ones is that you must be at least 18 years old to take the insurance state exam. Insurance is a pretty fast-track career option, classes can be completed in as little as 1 week. Course material can be presented in live class settings or via on-line. Students have several options now a days to complete their courses.
Q: Is it a tough curriculum? I don’t believe it’s a tough curriculum but it can be boring for some which in turn may make it seem tough. Several students will ask on the first day of class if this is hard, my response to them has been, “No, but it can be boring, but don’t worry, not with me” I make it a fun environment to learn and stay alert. So, it really depends on the instructor you have and if you do you online classes vs. live classes, I always recommend students to look for the best option that suits them. Q: What’s the job market like for newly-minted insurance agents? Insurance companies, agencies, brokerages are always looking for new agents. Insurance has been around for several years and there is a need for new insurance agents to make sure we can keep this business going. Just remember, you will be starting at the bottom like everyone has, but will grow as well. I’ve learned that in insurance, hard work does pay off. Q: How do insurance agencies get connected with your graduates? We don’t allow insurance agencies to directly recruit at I.C. Training Centers. We want agencies knowing that their agents aren’t getting recruited by others at our training centers. We will keep our students and graduates informed of insurance events, networking events, and conventions, this will give them opportunities to interact with others in the insurance industry should they need a career opportunity.
Q: Let’s finish with a little bit about you. First, take yourself back to 2007. What would you tell Carlos Basurto? If I could go back in time, I would tell myself, learn, learn and learn as much as you can because when the time is right, make your move but always be a student, never stop learning. Q: Now fast forward to 2027. What would you like to hear people say about you? “Thank You” One of the reasons I started I.C. Training Centers, is because I want to see people succeed in this industry and I want to be a part of that. I would like to hear that I helped in their success with helping them pass their insurance state exam which is the first stem to becoming a great agent. Q: If you can, sum up your philosophy for success in one or two sentences. Success is not for the chosen few, success is for the few that choose it. Q: Any final thoughts? For new and existing agents out there, “Don’t give up.” People will tell you it’s hard, you can’t do it, and sometimes won’t even want to share information/ knowledge because you are the competition. But listen to me, stay strong because there are still good people out there and want to see you succeed.
Q: What suggestions would you give job-seekers? Stay positive and do not make a quick decision. I would have them do some homework on the many different sectors that exist in insurance and evaluate which one intrigues them the most and see if they know anyone that’s involved in that, so they can interview them and get more feedback on that area. This way they can make the best educated decision so they will become successful in the industry.
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Sidebar with
Harper & Heim Lawyers
By Jon S. Heim, Managing General Partner, Harper & Heim Lawyers
POWERS OF ATTORNEY IN INSURANCE PRODUCTION Often our law firm sees powers of attorney granting insurance producers the ability to sign insurance-related documents for their clients. We hear that these powers of attorney facilitate policy changes, acknowledgements and rewrites ordered by clients. That may be, but in regular, retail insurance production, powers of attorney are more burden than boon to producers. Powers of attorney create big liabilities for relatively little added convenience. In California, an insurance broker’s general duty to clients is limited. The broker must simply use reasonable care, diligence and judgment in procuring the insurance requested by the insured. By statute, an insurance producer acts as a fiduciary in handling premium (Ins. Code, § 1733), but otherwise, it is uncertain whether – we’ll add highly unlikely that – brokers have general fiduciary duties to insureds. (See generally, Mark Tanner Construction, Inc. v. HUB International Insurance Services, Inc. (2014) 224 Cal.App.4th 574, 584-586; Hydro-Mill Co., Inc. v. Hayward, Tilton and Rolapp Ins. Associates, Inc. (2004) 115 Cal.App.4th 1145, 1156-1158.) But a power of attorney expands the insurance broker’s limited duties. If a broker has a power of attorney, the broker becomes the agent of the client for purposes of exercising that power. (Prob. Code, § 4051.) Agents
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of all sorts are fiduciaries as a matter of law. (Brown v. Wells Fargo Bank, NA (2008) 168 Cal.App.4th 938, 960.) As such, agents – including, we suggest, insurance brokers acting under powers of attorney – assume a host of weighty duties. “[A] broker’s fiduciary duty to his client requires the highest good faith and undivided service and loyalty. The broker as a fiduciary has a duty to learn the material facts that may affect the principal’s decision. He is hired for his professional knowledge and skill; he is expected to perform the necessary research and investigation in order to know those important matters that will affect the principal’s decision, and he has a duty to counsel and advise the principal regarding the propriety and ramifications of the decision. The agent’s duty to disclose material information to the principal includes the duty to disclose reasonably obtainable material information.” (Assilzadeh v. California Federal Bank (2000) 82 Cal.App.4th 399, 414–415 [real estate agency], citations and inner quotations omitted.) “A fiduciary must tell its principal of all information [the fiduciary] possesses that is material to the principal’s interests. A fiduciary’s failure to share material information with the principal is constructive fraud, a term of art obviating actual fraudulent intent.” (Michel v. Palos Verdes Network Group, Inc. (2007) 156 Cal.App.4th 756, 762 [real estate agency].) That last sentence means that, if you don’t disclose all material facts, you may be sued for fraud even though you intended none. With that unnerving prospect in mind, let’s consider how this fiduciary duty law might apply to your everyday business activities. Suppose that, under a power of attorney, a broker signs an insurance cancellation at a client’s request. Is the broker confident that he or she has all the material facts bearing for or against cancellation? Might facts exist which the client does not realize but which the broker does, should or even might have? Has the broker considered all reasonable alternatives and alternative markets? Is the cancellation motivated in part by the broker’s business interests, for example when rolling a book of business?
Too, there is the common and ongoing risk of client disclaimer. What if the insured later disclaims our hypothetical oral cancellation request? Words are regrettably easy to deny. Signatures are not. Client signatures, original, fax, or even electronic where agreed and allowed, are persuasive evidence of agreement, consent or acknowledgement, in business, before administrative agencies, and in court. We at Harper & Heim, Lawyers discourage use of powers
of attorney in almost all retail insurance production. The duties they impose and the liabilities they create are not justified by the convenience they provide. Better to have your clients have your clients sign, and thus confirm their instructions, desires and agreements. Call Jon Stanley Heim at (510) 725-7593, or e-mail him at jshinslaw@gmail.com or harperandheim@gmail.com.
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HOW TO MAXIMIZE THE RISK-REWARD RELATIONSHIP IN CORPORATE SETTINGS
By Maxine Attong, management consultant There’s no shortage of fanfare for the hottest corporate buzzword of the past several years – innovation. As Forbes noted in a 2012 article, the word has become the “awesome” of corporate speak. Innovation is the quality desired by business leaders, who tend to believe that if you’re not innovating, you’re dying a slow death. In order to take risks, which is the foundation of innovation and subsequent rewards, a team member has to feel safe. Anyone who has ever been in a classroom or company meeting knows the potential risk of making an out-of-the-box statement, which could be seen as silly, frivolous or ignorant – or as a groundbreaking insight. Without a sense of safety, most employees will decide to silence an unconventional statement that could risk their standing. Unusual and unconventional ideas are a sign of strength in a company. It shows that team leaders really are open to innovative ideas. Here is the importance of the idea and how to create safety to voice risk-taking ideas.
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• A safe space is the “office Vegas:” what happens in the room stays in the room. While business plans may be neatly fitted into a blueprint, the reality of any strategy involving humanity needs to account for our unpredictability. We’ve all had those days in which we were stressed out by personal matters. Meanwhile, deadlines and expectations loom as the workload continues to pile up. The more you try to ignore your personal problems the more they come to mind. What would it be like if you could go into a room where you have total support and have a good cry for the dead dog, vent how angry you are at your loved one, or rant about how stressed you are over your coworker’s behavior. When you are done, you leave the room knowing that your behavior was not judged, and your statements were confidential. That’s the kind of safe space that can facilitate innovation. • Human beings have an amazing capacity for brilliance. However, the list of negative distractions is formidable: sick children, marriage or divorce, financial issues and other problems can take a focused mind off track. A safe space can get a mind back on track and people working creatively on new solutions; enable leaders
to develop an outstanding team and instill stability. Creating a safe space can create a work environment in which team members actually look forward to work, a place where they can drop off their problems at the door and deal with them later. A safe place enables members to keep their egos in check and feel open to explore ideas. Innovation is often fun; it doesn’t have to be scary. • Safe spaces work on the inertia of several human traits. Safe spaces have been shown to work in other human affairs, including religion, addiction recovery programs, therapeutic counseling or coaching. People need to be heard, but they won’t reveal themselves unless they feel free from judgment. And, we need sensible guidance. After the safe space has been explained to team members, they’ll feel free to pursue productivity. The space assumes that the adults in the room want to be in charge of their lives and want to have relevant work experiences that contribute to their overall goals.
About the Author Maxine Attong (www.MaxineAttong.com) has been leading small and large teams for the past two decades – both in organizational settings and in her private coaching and facilitation practice. She has helped organizations come to consensus, overcome the perils of ineffective leadership, redesign processes to suit changing environments, and manage the internal chaos inherent in strategy implementation. She has been trained as a Gestalt Organizational Development practitioner, a Certified Evidence-Based Coach, a Certified Professional Facilitator, a Certified Management Accountant and is a former Quality Manager. Attong is a graduate of the University of the West Indies, and divides her time between the Caribbean and the United States. Her latest book is “Lead Your Team to Win: Achieve Optimal Performance By Providing A Safe Space For Employees.”
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NEW TEEN DRIVERS THREE TIMES AS LIKELY TO BE INVOLVED IN A DEADLY CRASH
• 9 times as likely as drivers 18 and older to be involved in a crash • 6 times as likely as drivers 18 and older to be involved in a fatal crash • 5 times as likely as drivers 30-59 to be involved in a crash • 2 times as likely as drivers 30-59 to be involved in a fatal crash Fatal teen crashes are on the rise. The number of teen drivers involved in fatal crashes increased more than 10 percent from the previous year, according to the National Highway Traffic Safety Administration’s (NHTSA) 2015 crash data, the latest data available. Three factors that commonly result in deadly crashes for teen drivers are: • Distraction: Distraction plays a role in nearly six out of 10 teen crashes, four times as many as official estimates based on police reports. The top distractions for teens include talking to other passengers in the vehicle and interacting with a smart phone.
New teen drivers ages 16-17 years old are three times as likely as adults to be involved in a deadly crash, according to new research from the AAA Foundation for Traffic Safety. This alarming finding comes as the “100 Deadliest Days” begin, the period between Memorial Day and Labor Day when the average number of deadly teen driver crashes climbs 15 percent compared to the rest of the year. Over the past five years, more than 1,600 people were killed in crashes involving inexperienced teen drivers during this deadly period. “Statistics show that teen crashes spike during the summer months because teens are out of school and on the road,” said Dr. David Yang, AAA Foundation for Traffic Safety executive director. “The Foundation’s research found that inexperience paired with greater exposure on the road could create a deadly combination for teen drivers.” The AAA Foundation for Traffic Safety’s latest study, Rates of Motor Vehicle Crashes, Injuries, and Deaths in Relation to Driver Age, analyzes crash rates per mile driven for all drivers and found that for every mile on the road, drivers ages 16-17 years old are:
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• Not Buckling Up: In 2015, the latest data available, 60 percent of teen drivers killed in a crash were not wearing a safety belt. Teens who buckle up significantly reduce their risk of dying or being seriously injured in a crash. • Speeding: Speeding is a factor in nearly 30 percent of fatal crashes involving teen drivers. A recent AAA survey of driving instructors found that speeding is one of the top three mistakes teens make when learning to drive. From the American Automobile Association (http:// newsroom.aaa.com).
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2017’S BEST & WORST STATES FOR TEEN DRIVERS
Getting a driver’s license is considered a rite of passage in American culture. But this exciting coming-of-age has instead become a death sentence for thousands of teens each year. Motor-vehicle accidents continue to be the leading cause of death among the population aged 16 to 19, which also happens to be the age group with the highest risk of crashes. And the financial implications are staggering. Although 15- to 19-year-olds made up only 7 percent of the population in 2013, according to the Centers for Disease Control and Prevention, they racked up 11 percent of all costs resulting from motor-vehicle injuries. That’s not counting the costs of auto maintenance, insurance premiums, possible traffic citations and other vehicular incidents — expenses that can pile up over time. To help parents ensure their teens’ safety while also safeguarding their finances, WalletHub analyzed the teen-driving environment in each of the 50 states using a collection of 21 key metrics. Our data set ranges from number of teen driver fatalities to average cost of car repairs to presence of impaired-driving laws. Top ten states overall (in descending order): New York,
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Oregon, Illinois, Maryland, Washington, Louisiana, California, Delaware, New Jersey, and Georgia. Bottom ten states overall (in ascending order): Montana, Wyoming, North Dakota, South Dakota, Nebraska, Missouri, Mississippi, Idaho, Iowa, and Oklahoma Teenage Driving in California (1=Best; 25=Avg.): • 8th – Teen Driver Fatalities per Teen Population • 18th – Teen DUIs per Teen Population • 1st – Presence of Distracted-Driving/Texting-While-Driving Laws • 27th – Premium Increase After Adding Teen Driver to Parent’s Policy • 7th – Provision of Teen Driver’s Graduated Licensing Program Laws • 9th – Vehicle Miles Traveled per Capita • 1st – Presence of Occupant-Protection Laws • 29th – Presence of Impaired-Driving Laws Methodology In order to determine the best and worst states for teen drivers, WalletHub analyzed the teen-driving environment in the 50 states across three key dimensions: 1)
Safety, 2) Economic Environment and 3) Driving Laws. We evaluated those dimensions using 21 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for teen drivers. For metrics marked with an asterisk (*), the square root of the population was used to calculate the “Number of Residents” in order to avoid overcompensating for minor differences across cities. We then calculated the total score for each state based on its weighted average across all metrics and used the resulting scores to construct our final ranking.
• Cost of Teen Crash-Related Deaths per 100,000 Teens: Full Weight (~5.00 Points) • Quality of Roads: Full Weight (~5.00 Points) • Driving Schools per Capita*: Full Weight (~5.00 Points) • Economic Environment – Total Points: 20 • Maximum Cost of Speeding Ticket: Half Weight (~1.54 Points) • Maximum Cost of Red-Light Ticket: Half Weight (~1.54 Points) • Maximum Amount of First-Offense Fines for Not Wearing Seat Belt: Half Weight (~1.54 Points) • Premium Increase After Adding Teen Driver to Parent’s Auto-Insurance Policy: Double Weight (~6.15 Points) • Average Cost of Car Repairs: Full Weight (~3.08 Points) • Average Gas Prices: Full Weight (~3.08 Points) • Punitiveness of Insurance Companies Toward High-Risk Drivers: Full Weight (~3.08 Points) Note: This metric is based on WalletHub’s States with the Highest & Lowest Insurance-Premium Penalties for High-Risk Drivers ranking.
Safety – Total Points: 50 • Teen Driver Fatalities per 100,000 Teens: Double Weight (~10.00 Points) • Vehicle Miles Traveled per Capita: Full Weight (~5.00 Points) • Teen “Under the Influence” Traffic Violations per 100,000 Teens: Double Weight (~10.00 Points) • Share of Teen Drinking & Driving: Full Weight (~5.00 Points) • Share of Teen Texting/Emailing While Driving: Full Weight (~5.00 Points)
• Driving Laws – Total Points: 30 • Provision of Teen Driver’s Graduated Driver Licensing (GDL) Program Laws: Full Weight (~6.00 Points) • Presence of Occupant-Protection Laws: Full Weight (~6.00 Points) • Presence of Impaired-Driving Laws: Half Weight (~3.00 Points) • Presence of Distracted-Driving/Texting-While-Driving Laws: Full Weight (~6.00 Points) • Presence of Red-Light & Speeding-Camera Laws: Half Weight (~3.00 Points) • Leniency Toward DUI Violations: Full Weight (~6.00 Points) Note: This metric is based on WalletHub’s Strictest & Most Lenient States on DUI ranking. Source: WalletHub (www.wallethub.com)
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ARE MILLENNIALS FINALLY TAKING AN INTEREST IN INSURANCE?
newfound attraction to insurance represents an enormous business opportunity — if you design sales tactics that specifically target this new audience, that is. Here’s what insurance agents need to know about this often misunderstood generation. They’re Two Generations in One Born between 1982 and 2000, millennials span the ages of 17 to 35. That’s a pretty wide range, so selling to millennials as if they are one monolithic group is a strategy that’s bound to fail. Focus on older millennials looking for insurance protection as they begin to purchase homes and start families — targeting this segment for home and life insurance provides the best leads. They’re More Interested in Experiences Than Products
By Precise Leads As they buy homes and start families, millennials are finally beginning to show interest in purchasing insurance. Here’s how carriers can sell to this generation. A new poll suggests millennials no longer view insurance as an abstract concept relevant only in some distant future. As this 80-million strong cohort — the largest living generation in the US — matures, buys homes, starts families, and even contemplates retirement, the need to purchase insurance gradually becomes more urgent. In the Harris Poll’s 29th annual EquiTrend Study, which measures consumer affinity for certain brands based on familiarity, quality, and purchase consideration, millennials tagged insurance brands with an equity rating of 60 compared to 55 among all consumers. Millennials declared a particularly strong emotional connection to life, property, and casualty insurance companies relative to Baby Boomer and Generation X consumers. For agents, the sheer number of millennials and their
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Although many older millennials may be buying homes, others aren’t in home ownership. Having come of age during the crash of the housing market, they prefer the flexibility of renting and the ability to have experiences through travel and moving. They’re more likely to rent than buy, and prefer to “share” material goods, as evidenced by the rise of sharing economy companies like Uber and Airbnb. It’s up to agents to convince these consumers that products like renters insurance can preserve their lifestyle, even if they don’t own assets. They’re Already Thinking About Retirement A 2015 Vanguard study indicated millennial participation in workplace 401(K) plans increased between 2003 and 2013. Automatic enrollment largely drove this upswing, with 87% of millennials participating in automatic enrollment Vanguard plans. Ten years earlier, the percentage stood at 70%. Though decades away from retirement, millennials are nevertheless beginning to think about how to fund their golden years. Retirement savings products like annuities fit with this mindset. They’re Digital Natives If there’s one cliche about millennials that really does hold true, it’s that they’re digital natives. They grew up
surrounded by technology, so it’s hardly surprising that 74% of millennials told Nielsen that “technology use” is a major factor in what makes their generation unique. The obvious lesson to be drawn for insurance carriers is to up their web-based lead generation efforts. To stand out to this tech-savvy generation, insurance agents should consider developing apps that allow millennials to sign up and file claims, as have several insurtech startups like Lemonade. The point is to reach millennials where they live, which is most often on their smartphones and mobile devices. They’re a Frugal Bunch Laden with college debt, millennials rigorously shop for the best price — and that includes insurance premiums. Products combining value for their dollars and technology will definitely pique their interest. Many auto insurers offer data-monitoring telematic devices that give discounts to safe drivers or set rates based on usage. If there were ever an insurance product matching millennials it’s that one.
About The Authors Precise Leads is an award-winning lead generation and customer acquisition firm. Since 2004, Precise has connected our clients to millions of consumers in search of insurance, financial, and other services. We match consumers shopping for services including Health, Auto, Home and Life insurance, Medicare Supplement and Advantage Plans, and more. We also offer inbound calls and live transfers that deliver prospects directly to national sales organizations. For more information, please call (866) 532-3489 or visit http://www.preciseleads.com.
Finally, a previously underinsured generation has begun to think seriously about insurance. Take note, insurance agents, and start selling. This article originally appeared on The Orange Umbrella, go.preciseleads.com
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FALL EQUINOX Fun facts
For a large swath of California and the southwestern U.S., the coming of Fall (or Autumn) just means the temperature drops from 100 to 90 degrees. But astronomically speaking, the start of Fall -- or the Fall Equinox -- is a day when the daylight and nighttime hours are (approximately) the same. Here are some interesting facts about the Fall Equinox -- which is September 22nd this year. The September equinox is the astronomical start of fall in the Northern Hemisphere and spring in the Southern Hemisphere. The word equinox means “equal night”; night and day are about the same length of time. During the equinox, the Sun crosses what we call the “celestial equator” (just imagine the line that marks the equator on Earth extending up into the sky) from north to south. At this point, the amount of nighttime and daytime are roughly equal to each other. From here on out, the temperatures begin to drop and the days start to get shorter than the nights (i.e., hours of daylight decline). Nights and days actually aren’t perfectly equal on the equinox, as in 12 hours of daylight and 12 hours of nighttime. The split may be off by a few minutes. This year, the sun will rise at 6:44 a.m. EDT on the equinox and will set at 6:52 p.m., giving us 8 minutes of day overnight. Although the sun is perfectly over the equator, we mark sunrises and sunsets at the first and last minute the tip of the disk appears. Also, because of atmospheric refraction, light is bent which makes it appear like the sun is rising or setting earlier.
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Exactly equal day and night won’t happen until September 25 with sunrise as 6:47 a.m. EDT and sunset at 6:47 p.m. This day is known as the equilux (“Lux” being Latin for light.) For the astrology-minded, the morning of the autumnal equinox is when the sun enters Libra, the sign of balanced scales. Equal day and night, balanced scales. As for the other celestial orb we obsess on, the full moon near the autumnal equinox is called the Harvest Moon for the luminosity that affords farmers the ability to work late. Sources: Treehugger (www.treehugger.com) and the Old Farmers Almanac (www.almanac.com)
BUILDING A FOUNDATION CREATING SHAREHOLDER WEALTH, VALUE AND CAPITAL. GIVING AWAY GREAT WEALTH SHOULD BE AS PERSONAL A MATTER AS COMPILING IT By Stephen S. Santoro
duct affairs upon a great scale. That this talent for organization and management is rare among men is proved Warren Buffet has captured the imaginations of the by the fact that it invariably secures enormous rewards people of the world with his past, present and futu- for its possessor, no matter where or under what laws re gifts to the William and Melinda Gates Foundation. or conditions. It is inevitable that their income must (Gates is the only man richer than Warren.) We Ame- exceed their expenditure and that they must, thereforicans love to see the rich doing good, especially the re, accumulate wealth.” self-made rich-people like Bill Gates and Warren Buffet, who earned their great wealth rather than inheri- What to do with wealth is a bigger problem for such ting it. If altruism validates the accumulation of wealth, people as Buffet, Gates and Carnegie than how to creathen it should not be taxed away with an estate tax. te it. Warren was right on track when he decided to Warren said he and his late wife Susan “agreed with give his money to the Gates Foundation rather than Andrew Carnegie, who said that huge fortunes that creating and staffing his own foundation. flow in large part from society should in large part be returned to society.” “What can be more logical, in whatever you want done, than finding someone better equipped than you I could not agree more with both Warren and Andrew. are to do it?” Warren asked. He then hired Bill and MeWarren told Fortune Magazine during a subsequent linda Gates to give away his money, because they were interview, “In my case, the ability to allocate capital doing a fine job of giving away their own money, just as would have had little utility unless I lived in a rich, po- Warren hires talented managers to run the businesses pulous country in which enormous quantities of mar- that comprise Berkshire Hathaway (NYSE-BRK-A; and ketable securities were traded and were sometimes BRK-B). ridiculously mispriced.” Warren is man of rare ability. It is often said the estate tax simply compensates society This is a tragedy of charity: When charity provides for providing conditions to earn wealth. freely what government failed to provide from taxes collected, the government’s failure is enabled and the Here is precisely what Andrew Carnegie said in his government continues for the life of the grant or pro1889 essay “The Gospel of Wealth” which Warren ci- ject, while doing NOTHING to reduce taxes. ted and insisted that Bill and Melinda Gates read: “We accept and welcome, therefore, as conditions to which Andrew Carnegie further said, “It were better for manwe must accommodate ourselves, great inequality of kind that the millions of the rich were thrown into the environment; the concentration of business, industrial sea than so spent as to encourage the slothful, the and commercial, in the hands of a few; and being the drunken, and the unworthy. Of every thousand dolaw of competition between these, as being not only llars spent in so-called charity today, it is probable that beneficial, but essential to the future progress of the nine hundred fifty dollars is unwisely spent-so spent, race. Having accepted these, it follows that there must indeed, as to produce the very evils which it hopes to be great scope for the exercise of the special ability in mitigate or cure.” Charities do their best work when the merchant and in the manufacturer who has to con- they invest in the creation of new medicines, such as
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spending large sums on the search for an HIV vaccine and funding research seeking new ways to block the transmission of malaria from mosquitoes to humans. (I just described the work of the Gates Foundation.)
‘advisors’ are promulgating rules for auto insurance or any other insurance covers in the future, please remember these stock companies have shareholders (like Warren, Bill, and YOU).
Saving people in corruptly managed countries from death by disease is going to improve life in those countries, regardless of inept governments who manage these countries. This work can then pave the way for order, education and honest regimes to govern. Andrew Carnegie was a great proponent of estate taxes. This cause too, was taken up by Warren Buffet, Bill Gates father, George Soros and Peter Lewis (former Chairman, CEO and major individual shareholder of the Progressive Corp. (PGR-NYSE)).
These shareholders are often are wealthy. This wealth came from seeking out mispriced assets and buying them inexpensively and holding them or selling them (at a large profit). This did NOT occur due to overcharging policyholders. It occurred due to ‘paying attention’ to their instructors at their business classes during their collegiate days. When they, you, me and many like them die this money gets put back into society for the good of all.
Andrew Carnegie: “Of all forms of taxation, this seems to be the wisest. Men who continue hoarding great sums all of their lives, the proper use of which for public ends would work good to the community, in the form of the State, cannot thus be deprived of its proper share. By taxing estates heavily at death, the State marks its condemnation of the selfish millionaires/ billionaires unworthy life.” (Mr. Carnegie with great respect I do disagree with you on estate taxation!) Feeling it is your duty to attempt to force others to give away their fortunes is noble. However, it is refuses the millionaire/billionaire the privilege to live as he or she deems fit. Just like a bum living on the street should have that option too. Taxing the rich more than others, no matter how noble is nothing more than bank robbery or burglary at gunpoint.
You decide folks! Thank you to Jon Spaugy and the Board of BIG for allowing my viewpoints. I’ll be back next time! About the Author Stephen Samuel Santoro is a former senior executive officer from 2 Fortune 200 Insurance Holding Companies. Both firms were/are traded on the NYSE. Please join the 260,000 people who follow him on social media by friending and following him on Facebook: Stephen Samuel Santoro, Instagram: Stephen Samuel Santoro, and LinkedIn: stephensamuelsantoro. You can contact Santoro at 310.305.0459 or ssantoro@stephensantoro.com.
My approach (and my mother’s) was to cajole, politic and talk the 1% into giving their wealth away. NOT TAX IT, CONFISCATE OR STEAL IT! Where governments are concerned, past performance is VERY MUCH an indication of future returns or losses. Even if estate taxes are a political necessity, the revenues should be handed to some sort of a private foundation/institution aiming to invest in the public good. Just ask Warren or Bill. So Insurance Commissioners, Superintendents, Regulators and Governmental Supervisors around the world and on all continents (a phrase I use frequently on Facebook, Instagram, LinkedIn, Twitter and all social media) when you and your
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