Alabama Independent, 2016 issue #2 by Blue Water Publishers, LLC

2016 - ISSUE 2

INDEPENDENT

alabama

Young Agents Summer Conference “A Conference For The Ages” July 28-30, 2016

Rep. Jack D. Williams “Lawmaker of the Year”

See Full Recap of Legislative Conference Inside

In the movies, it’s thrilling when the little guy finds a way to win big.

In the ISU Network…it happens every day. Okay, as a member of the ISU Insurance Agency Network, you aren’t exactly a little guy. You don’t have a downtown skyscraper, but you can compete with those that do. 

You maintain complete independence, yet are part of an organization of 160 established and successful independent agencies with combined premiums over $2 billion.



You have access to over 350 carriers, meaning broader coverages for existing clients and multiple avenues for new business development.



You are part of a coast-to-coast community that shares proven ideas and provides solutions to difficult challenges.

And to make victory even sweeter, you receive performance incentive income that averaged $57,400 last year and is trending upward by about 25% annually.

INSURANCE AGENCY NETWORK 2

Helping Independent Agents Stay Independent for Over 35 Years

Let’s talk about ISU member victories, competing locally, regionally and nationally. www.JoinISU.com

In 2016, ISU will add new carriers and new qualified agents in the Carolinas. For an exploratory discussion of the ISU model... Call Jack O’Connell Regional Vice President (704) 771-9597

Independent agents throughout your area Count on EMC ® for a number of reasons. • 100-plus years of commercial lines experience. • Expert loss control services. • Responsive service delivered by a fully-staffed branch office. Let us show you how EMC Insurance Companies can work for you. ANNA PRICE, CM, AIM Administrative Services Manger EMC Birmingham Branch

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WIN MORE BUSINESS. BIRMINGHAM BRANCH OFFICE Phone: 800-239-2005 | Home Office: Des Moines, IA

FIRSTSTEP

AIIA thanks the following sponsors for their support and participation in the First STEP program. AIIAâ&#x20AC;&#x2122;s First STEP program is your first step to involvement with independent agents in Alabama. For more sponsorship information or to sign up as a sponsor, please contact Nancy Crowe at 205-326-4129 or visit our website at www.aiia.org.

$20,000

Alabama Insurance Management Services The Sheffield Fund

$15,000 Your name here

$10,000

Cornerstone National Insurance

$7,500

National Security Fire & Casualty

AIIA

Save The Date Young Agents Annual Summer Conference July 28-30 Hilton Pensacola

Young Agents Committee Day August 17 AIIA Office

AIIA Committee Day August 18 AIIA Office

Big I PAC Golf Tournament September 20 Prattville Country Club

Fall Education Conference & Trade Fair October 20 AIIA Office Hosted by Small & Rural Agents Committee

I-Day

$5,000

Alabama Trucking Association WCSI Fund Centauri Insurance

$2,500 Alabama Self-Insured WC Fund AlaCOMP American Mining Insurance Co Auto-Owners Insurance BAMA Berkley Southeast Insurance Grp CRC Insurance Services Donegal Insurance Group EMC Insurance Companies Enterprise Rent-A-Car

Frankenmuth Insurance Genesee General Insurance House Penn National Insurance Progressive Sagamore Insurance Company Sentry Insurance Southern Insurance Underwriters/ SIUPREM Travelers Insurance Company TheZenith

We Thank You! 4

Alabama Independent | 2016 Issue 2

November 9 University of Alabama

, x a l Re labama. A

Weâ&#x20AC;&#x2122;ve got you covered. When unpredictable weather strikes, residents of Alabama need more than the usual kind of insurance products. Count on Centauri Insurance to provide peace of mind when your customers need it the most. Homeowners I Dwelling Fire I Tenants I Flood

centauriinsurance.com 2016 Issue 2 | Alabama Independent

alabama

Alabama Independent Insurance Agents, Inc. 141 London Parkway Phone: 205-326-4129 | Fax: 205-326-3086 | www.aiia.org

2016 • Issue 2

INDEPENDENT CONTENTS

Executive Vice President: Bill Sager, CIC Editor: Michelle McKee

LEADERSHIP & STAFF AIIA OFFICERS President: Richard Pardue, CIC Birmingham President Elect: Jeff Hogg, CPIA, CLCS Tuscaloosa

Secretary/Treasurer: Haig Wright, CIC Jasper State National Director: Jeff Grice, CIC Jasper Immediate Past President: Jean Ann Rittenour, CIC, CISR, CPIA, CPIW Montgomery

4 4 8 10 13 16 18 19 22 23 25 28 30 32 34 36 37

First STEP Sponsors AIIA Save The Date Letter from the AIIA President, Richard Pardue, CIC Letter from the AIIA EVP, Bill Sager, CIC 29th Annual AIIA Legislative Conference Wrap-up National Legislative Conference Wrap-up Staff Spotlight: Sarah Walker, AIIA Office Manager AIIA Education Calendar Young Agents Chair Report, C. D. Denson, CIC 2016 Annual Young Agents Summer Conference Registration Successful Young Agents Clay Shoot 17th Annual Pat Owens Big I PAC Golf Classic Registration & Sponsorship Form Industry News We Ignored Millennials for a Decade and Now Must Act Quickly to Survive Ted’s Tablet Seen & Heard and New Members Remembering Sarah Tharpe

BOARD OF DIRECTORS District 1 Larry Crosby, CIC - Brewton Michael Sullivan, CIC - Foley C. Todd Thomas - Montrose District 2 Steve Mullis, CPIA - Montgomery David Peel, CIC - Montgomery District 3 John H. Dark, CIC, AAI - Alexander City Steve Sprayberry, CIC - Sylacauga Brad Young, CPIA - Anniston District 4 Stacey Waldrep - Boaz Wayne Walker - Hamilton District 5 Kelly Aday - Lexington Susanne Grimwood, CIC, CISR - Huntsville Connie Waldrip, CISR - Huntsville District 6 William Jacka, Jr. - Birmingham Evelyn Burchfield, CIC, CRM, AAI, AIS Birmingham

ADVERTISER INDEX HICI 11

Allstar 17

ISU 2

Berkley Southeast

Johnson & Johnson

Berkshire Hathaway GUARD Ins.

20-21 27

Burns & Wilcox

SIUPREM 19

Centauri Insurance

Southern Insurance Underwriters 40

EMC Insurance Companies

Summit Consulting

The National Security Group

FCCI 31 Genesee General 6

MJ Kelley

Alabama Independent | 2016 Issue 2

District 7 Kevin Myrick - Tuscaloosa Young Agents C.D. Denson, CIC - Homewood Past President Jere Peak - Selma AIIA STAFF Executive Vice President: Bill Sager, CIC Director of Education: Ted Kinney, CIC, CPCU, ARM, CPIA, AAI, AU, CRIS, AINS Director of Communications & Member Services: Michelle McKee Director of Education Administration: Tangerie Underwood, CISR, CPIA E & O Administrator: Carol Hunt, CPIA Accounting Supervisor: Irene Smyly Director of Meetings & Events: Nancy Crowe RLI Administrator: Tangerie Underwood, CISR, CPIA Printing & Mailroom Coordinator: Waymon McIntosh Office Manager: Sarah Walker

PUBLICATION INFORMATION

AIA 39 7

Russell Greenhalgh, CIC - Birmingham Mary Hall - Birmingham Mark Hughes, CIC, CPA, CPIA, CISR Birmingham

The Alabama Independent is the official magazine of the Alabama Independent Insurance Agents, Inc. Association (AIIA), and is published quarterly by Blue Water Publishers, LLC. AIIA does not necessarily endorse any of the companies advertising in this publication or the views of its writers. AIIA reserves the right, in its sole discretion, to reject advertising that does not meet AIIA qualifications or which may detract from its business, professional or ethical standards. The publisher cannot assume responsibility for claims made by its advertisers, content provided by the editor, or the opinions expressed by contributing authors. For information on advertising, contact Jim Aitkins, Blue Water Publishers, 360-805-6474 or jima@bluewaterpublishers.com.

BER K L EY S OU T H E A S T IN S URA NC E G ROU P ANNO U N CE S L A U NC H O F B S IG A DVA NTA G E Creative Solutions for Small Businesses BSIG Advantage provides a simplified solution for writing your small business customers through access to our proprietary online rating system. BSIG Advantage provides comprehensive, flexible coverage that can be written on a Package or on a monoline basis. Comprehensive Coverage With over 400 eligible classes in 8 market segments, we have the right product to fit the needs of your small business clients. Fast and Easy Online binding for eligible classes makes placing business easier than ever! Best of All Our agents and policyholders will continue to receive the same outstanding products, services and solutions, from our local underwriters, claims professionals and risk services specialists.

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Kay Hall Territory Manager 205-994-3679

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berkleysig.com 2016 Issue 2 | Alabama Independent

Richard Pardue, CIC AIIA President

The Young Agents hosted the 29th successful Legislative Conference on March 10th in Montgomery, at Embassy Suites. Harrison Hawk, Young Agents Legislative Chair, of Montgomery, did a great job along with the assistance of Jim Murphree, AIIA Legislative Chair, of Oneonta. Both men have a real passion for legislative issues and it shows with the results. Sheffield did an outstanding job, as usual, in hosting the Legislative reception the night before. There was a great turn out of the Legislators and Agents in a relaxed setting. This year Joe Fuller presented the Lawmaker of the Year award to Representative Jack D. Williams, who followed up with comments on the evolving Legislative sessions. The second speaker was Representative Oliver Robinson and he spoke on how his past working experience has aided his effectiveness. The last speaker was Cliff Sims of Yellowhammer News, which is the fastest growing news outlet in Alabama. He addressed thoughts on the upcoming Presidential election and candidates.

Alabama Independent | 2016 Issue 2

He strongly encouraged the elements of “truth” and “fairness” not only in the legislative arena, but with clients as we meet their insurance needs. The last event of the conference was a BBQ lunch and it was well attended and enjoyed by legislators, judges, insurance officials and agents. Again, great job to the Young Agents for a successful conference. See pictures of the event in this issue! As I reflect on this past term and our goal of Unity, it is rewarding to see how everyone pulled together to make your association even better. It has been a privilege to serve as your President, along with a great Executive Committee, Board Members and Committee Members, all of whom, give of their time and resources to the association. When working with the staff on events and issues, you get a better understanding of the many parts and complexity of events, and realize what an outstanding staff we have and their great abilities. They truly make all of our association duties easier. Thank you, to one and all, for what you do for your association. I look forward to many more years of involvement and continuing old and new friendships. God bless.

BURNS &

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Birmingham, Alabama | 205.988.9650 toll free 800.888.1179 | fax 205.988.3073 birmingham.burnsandwilcox.com

Commercial | Professional | Personal | Brokerage Binding | Risk Management Services

2016 Issue 2 | Alabama Independent

Bill Sager, CIC

AIIA Executive Vice President

Just as spring is leading us to summer, our AIIA calendar is leading us from one event to the next. Our Young Agents take center stage early in the year with our annual legislative conference in Montgomery and the Excalibur Clay Shoot at Selwood Farms. The Young Agent committees working on these projects once again put together two excellent events. You can read a summary of each event in this edition. I do want to focus on the Excalibur Education Foundation for a moment. As I travel and attend functions with our membership, I am often asked about the activities of Excalibur. The foundation was established in 2001 and endowed its first scholarship in 2007. Scholarships are awarded annually to a junior or senior majoring or specializing in Insurance, Risk Management or a closely related field. We currently work with the University of Alabama and Troy University as they both have Insurance and Risk Management programs. Both universities are excellent partners in assisting us in promoting the IA system to their students. One of our major goals is to educate these students about the independent agency distribution system and the many employment opportunities that are available. Several of the students from each university have served as interns at agent’s offices, others have worked for our partner insurance companies and some graduates are now employed in the independent agency system. The Excalibur Education Foundation is a separate entity under the AIIA umbrella. It has its own Board of Directors and officers. The Foundation’s largest fundraiser is the annual clay shoot. Your support of this event is allowing the Excalibur Board to 10

Alabama Independent | 2016 Issue 2

explore options of potentially growing the number of scholarships awarded. In 2015 the Excalibur Board renamed the scholarships the Capps / Calhoun Scholarships in honor of Mr. Don Capps (The Sheffield Fund) and Mr. Mark Calhoun (McGriff, Seibels & Williams) for their support of the foundation since its inception. Thank you for your support of the clay shoot and to those of you who contribute directly to the foundation. The 2016 regular session of the Alabama Legislature has ended…and it was a busy session. We had several insurance and small business bills we were following and as usual, with any session, some we liked and some we didn’t. I appreciate our Legislative Committee and our Big I PAC Board working together to establish some legislative priorities before the session began, which provided direction and enabled us to be more active in the legislative process. The Young Agent’s Summer Conference will be July 28-30 at the Hilton Pensacola Beach. Jeremy Henderson, Young Agents Conference Chair, of Troy, and his committee have put together another awesome program. This event provides our Young Agents a great opportunity to network with others from around the state, share ideas and selling tips and meet many of our insurance company representatives. We look forward to seeing you there! We welcome Sarah Walker to the AIIA staff. Sarah began her tenure here on April 11th. She will be a great addition to our staff! Get to know her as you have the opportunity. Thank you for your support of AIIA. With our agency members and our company partners, we are making a positive difference in our state.

2016 Issue 2 | Alabama Independent

DON’T GET BITTEN BY AN E&O CLAIM YOU COULD HAVE AVOIDED.

Big “I” Risk Management Website

Carol Hunt: hunt@aiia.org

www.independentagent.com/EOHappens Big “I” members whose agency E&O insurance is written by Swiss Re through the Big “I” Professional Liability Program have access to an exclusive risk management web site. Log on today to fish for E&O claims frequency data, real-life case studies and analysis, sample client letters, sample agency procedures, agency E&O self assessments, podcasts on important E&O topics, and much more.

Alabama Independent | 2016 Issue 2

DON’T BE ON THE HOOK FOR: Failing to procure coverage requested by the client Not adequately identifying client exposures Failing to provide timely notice of a claim to the carrier Misrepresenting or not explaining policy provisions Providing inaccurate information to carriers Failing to properly add additional insureds or loss payees

29th Annual

AIIA Legislative Conference The 29th Annual AIIA Legislative Conference, hosted by the Young Agents, met at Embassy Suites in Montgomery on March 10, 2016 to learn about the current and very active legislative session. Speakers included Representatives Jack D. Williams and Oliver Robinson, along with Yellowhammer News CEO, Cliff Sims.

Commissioner John McMillian of the Department of Agriculture & Industries and Mark Fowler with ALDOI

Mark Ludick of Starke Agency, Inc. and Carl Schneider of Schneider Insurance Agency

Representative Randy Davis and Jay Ison of Thames Batre

Michael Vance of Hundley Batts & Associates, Representative Phillip Pettus and Sam Newton of Sam Newton Insurance Agency

Kevin Myrick of Insurance Centers of Tuscaloosa and AIIA President Richard Pardue of Pardue & Associates 2016 Issue 2 | Alabama Independent

Bill Jacka, Jr. of Insurance Office of America, Representative Oliver Robinson and Joe Fuller of Stead & Fuller

Mandy Rabren of Insurance Place and CEO of Yellowhammer News, Cliff Sims

Robbie Robertson of John A. Robertson Insurance and Senator Trip Pittman

Justice Tommy Bryan and Representative Mike Ball

Representative Randall Shedd, Representative David Standridge, Jim Murphree of Jim Murphree Insurance Agency and Representative Chris Pringle

Great Crowd of Insurance Agents and Legislators

Alabama Independent | 2016 Issue 2

During the annual Legislative Conference, Joe Fuller presented Representative Jack D. Williams with the prestigious Lawmaker of the Year Award. Our Association has enjoyed working with Representative Williams on insurance opportunities requiring legislative action. With his experience as former Jefferson County Tax Collector, he understands the challenges faced by small business owners. We appreciate and look forward to his availability, guidance and support as we work together on legislative issues in 2017.

Special Thanks to our Sponsors: The Sheffield Fund, Alabama Insurance Management Services, Cornerstone National Insurance, National Security Fire & Casualty, Alabama Trucking Association WCSI Fund, Centauri Insurance, Alabama Self-Insured Work Comp Fund, AlaCOMP, American Mining Insurance Company, Auto-Owners Insurance, Berkley Southeast Insurance Group, CRC Insurance Services , Donegal Insurance Group, EMC Insurance Companies, Enterprise Rent-A-Car, Frankenmuth Insurance, Genesee General, Insurance House, Progressive, Sagamore Insurance Company, Sentry Insurance, Southern Insurance Underwriters/Siuprem, Travelers Insurance Company, TheZenith

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2016 Issue 2 | Alabama Independent

National Legislative Conference Four members of your Executive Committee, along with AIIA EVP Bill Sager, AIIA Legislative Chairman, Big I PAC Chairman, Young Agent Chair and Boyd McGehee who is National’s Young Agent Chair all met in Washington for the National Legislative Conference on April 13th-15th. They had a great response from the Legislative delegation and met with a majority of the elected officials on Thursday, April 14th.

Members met with Representative Bradley Bryne

Members met with Senator Richard Shelby

Young Agents Give Back The Alabama Young Agents recently competed with several other Big “I” state associations in the campaign of an Agency 2025 Video Competition sponsored by Foremost Insurance Group and IIABA. The state association with the most LIKES on their video would receive the grand prize of $5,000. These videos touched on changes in technology, hiring, developing talent and creating a dynamic work environment in the insurance industry. Several Young Agent state associations participated with their visions. During the “Young Agents Give Back” event at the National Legislative Conference, Alabama Young Agents were announced as the winners of the competition. The Young Agents plan to use the winnings by co-sponsoring the Molly Ringwald Band at their conference in July. Congrats! If you didn’t get a chance to watch the video, you can still catch it on YouTube; search Alabama Young Agents 2025 FINAL. 16

Alabama Independent | 2016 Issue 2

Members met with Representative Gary Palmer

National Young Agent Chair Boyd McGehee with several others at the Young Agents Reception

2016 Issue 2 | Alabama Independent

Staff Spotlight

WELCOME Sarah Walker AIIA Office Manager

AIIA would like to introduce our new Office Manager, Mrs. Sarah Walker. Sarah is responsible for organizing and coordinating all office operations which includes working as a liaison for our members. She will be very beneficial in assisting each staff member by helping them enter information into our database and making sure all files are up to date. Sarah will be working closely with Nancy Crowe on our meetings and events, along with helping Tangerie Underwood with continuing education. Sarah is a graduate of the University of Alabama at Birmingham and earned her Bachelorâ&#x20AC;&#x2122;s degree in Business Management with a concentration in Administration. Sarah and her husband Kris reside in Shelby County. She enjoys spending time with family and friends camping, kayaking, fishing, riding horses and generally being outdoors. Before coming to AIIA, Sarah worked as the Marketing and Event Coordinator at Omega Textiles. While at Omega, Sarah was responsible for marketing products through the company website, social media, and other advertising outlets. She managed events by booking, planning, designing, setting up, staffing, and promoting. Sarah also stayed busy keeping inventory up to date, ordering and shipping, and even delivering inventory to valued customers to ensure customer satisfaction. With her experience in management, superior organizational skills and attention to detail, we know she will be a great fit here at AIIA!

Alabama Independent | 2016 Issue 2

EducationCalendar

JULY 4 6-7 13 19 25-29

AIIA Closed for Independence Day James K. Ruble – Orange Beach, Perdido Beach Resort E&O Risk Management – Florence CISR William T. Hold – Mobile P&C Licensing School – Birmingham

SEPT

AUG 10-12 16 18 25

CIC Life & Health – Birmingham CIC/CISR/CRM Conferment Ceremony CPIA 3 – Montgomery CISR William T. Hold – Birmingham

5 7 8 14-15 20 22 27 27 29

AIIA Closed for Labor Day CISR Agency Operations – Mobile CISR Agency Operations – Huntsville CIC Ruble – Birmingham CISR Agency Operations – Tuscaloosa CISR Agency Operations – Birmingham CISR Agency Operations – Dothan CISR Life & Health – Mobile E&O Risk Management – Birmingham

2016 Issue 2 | Alabama Independent

CHAIR REPORT C.D. Denson, CIC

Do not miss out on what is going to be the best conference yet!

It is amazing to see how far the Young Agents of Alabama have come since I first joined in 2010. My first Annual Conference was at Callaway Gardens and we had just over 20 agents in attendance. Fast forward to 2016 and we are looking at having over 80 agents with more than 200 attendees at our conference that will once again be held at the Hilton Pensacola Beach. This is all possible thanks to your support and Young Agents who have committed themselves to making Young Agents of Alabama a huge success. We are not only being recognized within the state for our accomplishments, but nationally as well. We are a team that works together to make our Association and Young Agents stronger every day. The 2016 year for Young Agents of Alabama is off to a fast and successful start. In March, we put on a fantastic Legislative Conference in Montgomery with a great slate of speakers, and had a great time mixing with our Legislators and Judicial leaders. In April, at our Big “I” National Legislative Conference, we found out that our Young Agents of Alabama won $5,000 from Foremost Insurance Company and IIABA for winning the grand prize for the National Young Agents Video Contest. The prize was awarded to show what an agency will look like in the year 2025. Also in April, we put on another Excalibur Clay Shoot that was a huge success and for the first time I can ever remember; we had no rain at the event. 2016 is only going to get better.

Alabama Independent | 2016 Issue 2

To say I am excited about our Young Agents Summer Conference set for July 28-30th is certainly an understatement. We have a Conference that is going to offer tremendous value for every agent that attends. There is so much talk amongst our Young Agents about their Agency Management System and what features that system offers to make doing business more efficient and thus more profitable. We have the major vendors in the Agency Management System (AMS) industry coming to our conference to showcase their products not only to the agents in attendance, but the session will be streamed “LIVE” for agents across the country to see as well. Ryan Hanley from Trusted Choice will be back again this year to help out with the live streaming. The AMS Representatives will join our Company Representatives with the ever popular Roundtables. We have Rene Hernandez with the Young Agents of Oklahoma discussing how being an Independent Agent has completely transformed his life. In addition, we will have Ron Berg who is the Executive Director of ACT (Agents Council for Technology) and Whitnee Dillard to discuss agent development through diversity. Saturday morning, Steve Morgan, a motivational sales speaker, will present how to increase productivity and enhance our communication skills in order to close more deals. The closing banquet will have our very own Big “I” National Chairman Randy Lanoix. He will be followed by an amazing performance by the Molly Ringwalds Band! Do not miss out on what is going to be the best conference yet. I will see you in Pensacola!

2016 Issue 2 | Alabama Independent

Alabama Independent | 2016 Issue 2

Successful Young Agents

Clay Shoot The Young Agents hosted the 7th Annual Clay Shoot at Selwood Farms on Friday, April 15th. With rain forecasted, we knew exactly what to expect. Luckily for us, the rain cloud steered clear of the Farms and it turned out to be a great afternoon for all 23 teams who participated. All proceeds go to the Excalibur Education Foundation that has now awarded 16 scholarships to students at Troy University and the University of Alabama. The Excalibur Board has awarded two additional scholarships for the past two years with the Clay Shoots success. This year we raised the most ever and will continue funding these scholarships for years to

come. Applications have been provided for this year and the winner(s) will be presented with the Capps/Calhoun Scholarship at the Young Agents Summer Conference. The students truly appreciate your continuous support of this fundraiser because they join us every year for all the great networking opportunities! After registration, everyone gathered for the famous Whiskers BBQ luncheon. The group had their safety meeting and then hit the course. Within a few hours, teams were back at the farm house for pizza, door prizes and to see who won.

WHO WON? First Place Team – Burns & Wilcox – William Briscoe, Owen Peak and Jere Peak Second Place Team – The Sheffield Fund – Jeremy Giadrosich, Todd Roberts, Jason O’Rear and Casey Bentley Best Shooter – Owen Peak of The Morris Agency Worst Shooter – Nicole Hester of Berkshire Hathaway Homestate Companies The Browning Shotgun winner was Barry Faulkner of J.H. Berry Risk Services. The Remington Shotgun winner was Jackie Harbuck of AlaCOMP. The Half-Day Quail Hunt winner from the Cotton Ball Drop – Caro Manning (Johnson & Johnson)

The Zenith team ready for action (Ken Kennamer, Robert Leach, Mike Colquett & Todd Lawson)

First Place Team – Burns & Wilcox (William Briscoe, Owen Peak and Jere Peak)

Great action shot of Mike Files & Buddy Lambert of APAIA 2016 Issue 2 | Alabama Independent

Dedicated Cotton Ball volunteers (Brenda McNeill, Carol Sellers & Shelby West)

NSFC Team sharing the love with the ladies (Nicole Hester, David Schutz, Ashley Wright, Mike Daniel, Jerry BuBose, Kevin Myrick & Nichole Marcum)

Girl Power - EMC Girls Team (April Shaling, Brandy Johnson, Anna Price & Sandi Dixon)

Gulfstream Property & Casualty Team (Carl Schneider, Gerry Miles, Sharon Keenan & Todd Thomas)

WHO DO WE THANK? Clay Shoot Contributors, Sponsors and Volunteers: Alabama Insurance Management Services/AIMS, Alabama Public Automobile Insurance Agency (APAIA), Alabama Retail Comp, Alabama Self-Insured Work Comp Fund, AlaCOMP, American Strategic Insurance (ASI), Associated Insurance Administrators (AiA), Berkley Southeast Insurance Group, Brenda McNeill, Burns & Wilcox, Carol Sellers, Christy Pender, Coastal Insurance Company/Healthcare Workers’ Compensation Fund, Cobbs Allen, Collins Insurance Agency, Cornerstone National Insurance/Cornerstone Rate Recovery, Don Capps, Fountain Parker Harbarger & Associates, Genesee General, Haulers Insurance Company, Inc. (HICI), Insurance House, Jackie Harbuck, Joanne Reed, Kay Hall, Mark Calhoun, McGriff Seibels & Williams, Montgomery Independent Insurance Agents, Neal Lankford, Nichole Capps Marcum, Pardue & Associates Insurance, RPS – NAI, Sagamore Insurance Company, Shared Agency System (SAS), Shelby West, Sidney Neate, South Shores Insurance Underwriters, LLC, Southern Insurance Underwriters, Stead & Fuller, Thames Batre’, Ltd., The Argos Group, The Sheffield Fund, and WorkersFirst CompFund.

Thanks to all of our teams and individual players! 26

Alabama Independent | 2016 Issue 2

Networking (Tyler Hickman, James Bryia, Patrick Williamson & Jeremy West)

BIIA Ladies Team (Emily Sanders, Donna Feemster, Mary Hall & Becky Burris)

All proceeds go to the Excalibur Education Foundation that has now awarded 16 scholarships to students at Troy University and The University of Alabama. We raised nearly $13,000 for the scholarship fund this year and will continue funding these scholarships for years to come.

2016 Issue 2 | Alabama Independent

Alabama Independent | 2016 Issue 2

2016 Issue 2 | Alabama Independent

INDUSTRY NEWS

Montgomery IIA hosted their annual spring golf tournament and social on May 5th at Wynlakes Golf & Country Club. It is a time for agent members and associate members to get together away from the office and have a good time. The only reason they are able to put on this event every year is because of their awesome sponsors. One of the main things about this event is that it appeals to everyone in the industry – whether you are a male or female insurance professional, CSR or producer, marketing representative or underwriter, office manager or agency owner. The golf tournament is enjoyed by those who like to play golf, and the social is where everyone else comes to join in the fun. What sets their social apart from others is that everyone in attendance receives a door prize. Everyone is a winner. The sponsorship money and registration fees collected for the annual spring golf tournament & social not only pay for the cost of the event

Another Successful Spring Golf Tournament & Social hosted by Montgomery Independent Insurance Agents

(green fees & cart rental, food, beverages, signs, golf prizes, door prizes), but also sustains the association for the rest of the year. MIIA ends their year with an annual Christmas Party, which has grown tremendously over the last six years. Using any remaining funds they have from the golf tournament, they are able to put on this event at no charge to their members, and simply ask for donations to a local charitable organization. This allows them to essentially make the Christmas party a fundraising event for that charity. Last December, they raised over $3,000.00 for Adullam House, a non-profit organization that takes care of children of incarcerated parents. This means so much to MIIA and its members… to give back to the community and support those organizations that spend every day helping those in need. At the end of the day, that is what we are all in this business to do, and MIIA is a huge proponent of that.

Huntsville Independent Insurance Agents Association

Patricia Hughes of Hundley Batts & Associates working the registration desk

Alabama Independent | 2016 Issue 2

The Huntsville Independent Insurance Agents Association teamed up with Healthy Huntsville and Downtown Huntsville to promote the 1st annual One Thousand People, One Mile, One Step at a Time Walk at Big Spring Park on May 7th. Michael Vance, President of HIIA stated, “the weather was perfect for the Trusted Choice Walk, God smiled on us. Our oldest walker to complete the one mile walk was 90 years old, and our youngest walker was two years old.”

INDUSTRY NEWS Troy University Annual RMI Golf Tournament Two years ago, Troy University’s Risk Management and Insurance program started an annual RMI Golf Tournament. This year’s tournament was held April 25th at Wynlakes Golf & Country Club. Net proceeds from the tournament help fund student educational activities and scholarships. The Troy RMI program has grown significantly over the past few years and was recently ranked as the 12th largest by Business Insurance. Professor Ed Duett says, “Troy RMI simply wants to provide our students the best opportunities to develop.”

Students visiting Chubb Insurance in London

800-226-3224 www.fcci-group.com

“At FCCI, we are here for our agents and our insureds for the long term, and we live by our values: loyalty, integrity, vision, excellence and service. I’m proud to work for a company that believes in ‘doing what we say we’ll do’ and I strive to do that for my agents and their clients.” Babs Fowler Underwriting Specialist FCCI Insurance Group Gulf Coast Region Ridgeland, Miss. Now, let’s talk about your business. General liability • Auto • Property • Crime • Workers’ compensation Umbrella • Inland marine • Agribusiness • Surety Coverage available in 18 states. © 2016 FCCI

AI16_Fowler_4.625x7.5.indd 1

3/2/16 3:25 PM

2016 Issue 2 | Alabama Independent

WE IGNORED MILLENNIALS for a Decade

and Now Must

ACT QUICKLY TO SURVIVE

By Ryan Hanley SVP of Marketing at TrustedChoice.com and the Managing Editor of Agency Nation “Millennials don’t like independent agents.” Actually, that’s not true. Millennials would like us, if only they knew who we were. Unfortunately, for the last decade, we’ve pretended the Millennial generation didn’t exist. For the last decade, we’ve sat in our little castles and scoffed at the needs of Millennials. • • •

“You don’t make any money writing renters insurance.” “We’re not the kind of agency that writes stand-alone youth auto.” “They don’t appreciate the service independents agents provide.”

Blah. Blah. Blah. My friends, we’re about the pay the price for a decade of bad decisions. The Millennials turn 35 this year. That’s right, 35, and they’re ready to settle down and start buying things. Wouldn’t it be nice if they were looking to independent insurance agents for their home, auto and business coverage needs? That would be amazing. Except the Millennial generation doesn’t have a clue who we are and the professional service we provide our clients. Why don’t Millennials understand independent insurance agents? Don’t. Don’t even go there. Don’t even begin to blame Millennials. It’s not Millennials fault that we’ve ignored them for a decade. It’s our fault. It’s our fault Millennials view us as out-of-touch, antiquated, stodgy old grey hairs only fit to do business with their grandparents. It’s our fault. We’ve ignored them and now we’re going to pay the price. Excuses are like… The common excuse I get from independent agents about 32

Alabama Independent | 2016 Issue 2

our lack of penetration in the Millennials market usually revolves around three major themes: 1. Technology 2. Laziness 3. Bad Risk All three of these excuses are stupid. It pains me that in 2016, we’re still having this conversation. “Millennials are a Bad Risk” I’m a Millennial. I have 815 credit score, own a house, two cars and pay my premiums yearly in-full. Am I a bad risk? At 24 I wasn’t a great risk, but I’m 35 now and I’m the perfect risk for an independent agent. You don’t want to write my insurance? Sure you do. People are good or bad risks. It has nothing to do with being a Millennial. This is a stupid excuse. “Millennials are Lazy” This is just offensive. Ask your Millennial employees who they believe is lazy in your agency? Probably the person who comes in late, leaves early and plays golf every other day. People are lazy or they’re not. It has nothing to do with being a Millennial. This is a stupid excuse. “Millennials are More Interested in Technology” There are a bunch of excuses that get filed under this one:  Millennials have no attention span  Millennials don’t value customer service  Millennials want to do everything online Wrong. Wrong. Wrong. Millennials have been raised in a world of availability and access. They don’t need to listen to your 45-minute sales pitch, nor do they care to. That doesn’t mean they

lack an attention span. Millennials value customer service as much as you do. The difference is they don’t believe customer service separates your business. They don’t see customer service as a reason to buy. Customer service is the bar, it’s the barrier to entry, it’s the lowest common denominator for a Millennial to even consider your business. Millennials are more interested in the customer experience you provide. Value customer service over customer experience and you’re already a commodity. Okay. On the technology thing. Yes. Millennials want to do most things online. Technology has always been and will always be a big part of their lives. GET OVER IT. Stop complaining and figure it out. Work for an insurance carrier? Go figure out Snapchat. Not willing to do that? Then you don’t care about capturing Millennials. Snapchat users view over 8 billion videos a day. You read that right...8 billion a day. Most carriers won’t even consider Snapchat. Internal politics and a complete lack of understanding in customer behavioral psychology will continue to dull they’re every message. But eventually, one will and if it’s not already too late, that carrier will stand out and dominate the Millennial market. Want to get a feel for Snapchat? My user id is “ryanmhanley”.

same as you were at that age. They’re trying to figure things out. The difference is, they’ve been abandoned by the independent insurance agent. Millennials have been abandoned by the independent agent. We need to change this. From the most recent Facebook IQ study, titled Millennials and Money: The Unfiltered Journey: 53 percent of millennials say they don’t have a trusted source for financial advice. What? You mean a decade of GEICO and they still don’t have a trusted source for financial advice? People… friends… it’s not too late. Millennials are just beginning to hit a time in their life when really need a trusted advisor for their insurance (might I be so bold as to say a Trusted Choice). But we have to act now. We can’t ignore the Millennials any longer. Affluent Millennials are 1.6x more likely to switch their insurance. Don’t you want them switching their insurance to you? Stop making excuses and get to work!

Work for an independent agency? Start creating video and figure out Instagram. Not willing to do that? Then you don’t care about capturing Millennials. Most agencies won’t even consider Instagram. Their own mix of hubris and ignorance will keep them firmly locked to the office phone, “dialing for dollars.” But eventually, an agency in your local market will figure out that Millennials want to communicate, where they want to communicate. This agency will stand out and dominate the Millennial market. This isn’t rocket science, it’s marketing. Get over the excuses and get to work. The Millennial Market It’s time to stop thinking of Millennials as some strange mutation of the Homo Sapien species. Millennials are your kids, your grandkids, your brothers and your sisters. Exchange rotary phone for a cell phone and they’re exactly the 2016 Issue 2 | Alabama Independent

Q: A:

Ted’s Tablet

QUESTION: I was having a discussion with one of my producers and I thought I would contact you for your opinion. My client called and asked a question. He’s a tenant in a building and he asked if there would be coverage if one of his employees damaged the building while backing a piece of mobile equipment. We looked at his Commercial General Liability policy and it appears that the “Damage to Premises Rented to You” coverage only covers fire damage. Would vehicle damage be covered as “Property Damage” in the CGL policy? If not, is there any other coverage we could suggest? ANSWER: The “Damage to Premises Rented to You” coverage in the CGL covers any damage to buildings or personal property for which an insured is legally responsible, if the premises is rented for 7 days or less. After 7 days it only covers fire damage for which an insured is legally liable. This is what we used to refer to as “fire legal liability”. With the exception of the “Damage to Premises Rented to You” coverage, CGL exclusion j. excludes “property damage” to: “Property you own, rent, or occupy, including any costs or expenses incurred by you, or any other person or organization or entity, for repair, replacement, enhancement, or maintenance of such property for any reason, including prevention of injury to a person or damage to another’s property; and “Personal property in the care, custody or control of the ‘insured’” When I teach the CGL, I mention that exclusion j. excludes two types of risks: 1. damage that is best covered by property or inland marine coverage; or 2. damage that arises out of a “business risk” and is probably uninsurable. The type of damage you mentioned falls under the first category. Some companies provide “care, custody or control” or “voluntary property damage” coverage in an “enhancement” endorsement to their CGL policy. There is normally a sublimit

Alabama Independent | 2016 Issue 2

for this coverage and it may only cover damage to the building and not damage to personal property of others; or only damage to personal property of others. This is not an ISO endorsement, so coverage will vary from company to company. ISO has a property form entitled “Legal Liability Coverage” (CP 00 04). Since it is a property form rather than a liability form, it covers damage caused by any of the causes of loss described in the “causes of loss” form attached to the property policy. It can cover damage to buildings, personal property of others, or both. The insured has to be legally liable for the damage and there is no coverage for liability assumed in a contract (e.g. a lease) unless the insured would have been liable in tort in absence of the contract. This form would not be appropriate if the tenant were responsible for any damage to the building because it only covers damage for which the tenant is legally liable. For example, some leases hold the tenant responsible for any damage to the building, not just damage for which the tenant is legally responsible. In that case, the tenant would be responsible for “acts of nature”, such as tornado damage. Obviously, the tenant can’t be legally responsible for a tornado, so the legal liability form would not provide coverage. If the lease holds the tenant responsible for “any damage”, whether or not the tenant is legally liable, a more appropriate form would be the (CP 00 01) “Building and Personal Property Coverage Form”. It would provide coverage as though the tenant were the building owner. The building owner and tenant could agree to a mutual “waiver of subrogation”, which might eliminate the problem. The owner would be responsible for any damage to the building and the tenant would be responsible for damage to personal property. They would both agree that their insurance carriers will not go after the other party for reimbursement of damages. The “property conditions” form permits waiver of subrogation before a loss. The building owner can also waive subrogation against a tenant after a loss.

QUESTION: Quick question (although I’m not sure there is ever a quick answer when it comes to insurance)… Regarding Hired and Non Owned Liability. Specifically Non Owned Liability. Let’s say we have a corporation and the owner/president of that corporation is using his/her personally owned vehicle in the course of business. They have an at fault accident and their personal auto limits are exhausted so the injured party sues the business as well… could the non-owned auto for the business respond to protect the business? Technically it is a non-owned auto because it was owned individually and insured on a personal auto policy. I didn’t know if there were any exclusions on the non-owned liability form if the person involved in the accident was the owner of the company?

For the record... there is no claim or potential claim surrounding this question. ANSWER: The owner/president of a corporation would be considered an employee of the corporation. The owner/ president would have no coverage on the BAP for personally owned vehicles, but from the standpoint of the corporation, the vehicle would be considered “non-owned”. You just need to look at the definition of Symbol 9: Only those “autos” you (the named insured corporation) do not own, lease, hire, rent or borrow that are used in connection with your business. This includes “autos” owned by your “employees” (the owner/president), partners (if you are a partnership), members (if you are a limited liability company) or members of their households but only while used in your business or your personal affairs. This used to be called Employer’s Non-Owned Auto coverage because that’s who is protected. Symbol 1 would include “non-owned” autos but would not restrict coverage to autos used in connection with the business.

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Elba, Alabama

2016 Issue 2 | Alabama Independent

SEEN&HEARD

BIRTHS

NUPTIALS

Congratulations to Brian & Ashley Smith on their first child, Holden Lee born on March 21st. Brian works at Best Insurance Agency and Ashley is with Iron Mountain Insurance/Harris Insurance Agency.

Congratulations to Patrick Williamson of Insurance House on his marriage to Ms. Madison Wilson. They were happily married on April 2nd.

Congratulations to Dani Oglesby of The Sheffield Fund and her husband Luke on welcoming their third child, daughter Blakely Ryan on March 24th.

Hamrick & Associates, Mikos/Kampakis, The Myrick Agency and Peck-Glasgow were a 2015 Contributor to the Big I PAC and were omitted in the last issue.

Congratulations to Ashley Peterson of ACCC and her husband Tim on their first child, Braylyn Elizabeth born January 21st.

Congratulations to Brandon Baird of Truitt Insurance & Bonding on his marriage to Ms. Emily Douglas. They were happily married on March 19th.

OMITS

Welcome New Members AIIA would like to welcome the following new members who have recently joined the association. Thank you for joining Alabama Big I!

NEW ASSOCIATE MEMBERS

NEW AGENCY MEMBERS

Weston Insurance Company Eddie Amador Coral Gables, FL

OCI, LLC dba Old Church Insurance April Hudson Quinton, AL

Jimcor Agency, Inc. Joe Geracie Johns Creek, GA

Barnett Insurance Agency Michael Barnett Dothan, AL

Souders Underwriting Group, LLC Blake Souders Vestavia Hills, AL

Arthur J. Gallagher RMS James Brittle Birmingham, AL

Southern Access Capital John Petrusnek Birmingham, AL

Maxam Insurance Group Karel Maxam Hoover, AL

Universal Property & Casualty Matthew Hoffman Fort Lauderdale, FL

Legacy Insurance, Inc. Joe Bob Whitt Madison, AL

2016

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alabama

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Coastal Insurance Company, Inc. Jim Trull Montgomery, AL

If you have news, we would love to include it in our next issue! Please send your press releases, photos or notices to Michelle McKee at mmckee@aiia.org Young A “A C gents Sum onfer mer C en on July 2 ce For Th ference 8-30, 2016 e Ages”

Rep “Lawm. Jack D. W aker of theilliams Year” Se Legis e Full R lative ecap of Co Insid nferenc e e

Alabama Independent | 2016 Issue 2

REMEMBERING SARAH THARPE AIIA is deeply saddened to announce the passing of Sarah Ellis Tharpe on April 1st, 2016. Sarah retired as the Executive Assistant of the Alabama Independent Insurance Agents and Executive Director of the Birmingham Independent Insurance Agents after 33 years of service. In 2005 when the association office was built, AIIA dedicated the back patio grounds and gardens in her honor. She was a loving wife and mother. She loved sitting on her patio with her beloved dog Abby, children and grandchildren. A family graveside service was held on April 6th at Elmwood Cemetery. Please continue to keep her family and friends in your thoughts and prayers. Sarah will be missed by many! Past President Mickie Edwards and Sarah

2013 Past President’s committee meeting 2016 Issue 2 | Alabama Independent

2016 Issue 2 | Alabama Independent

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