South Carolina Agent & Broker, Summer 2014

116th Annual Convention Preview October 5-7, Wild Dunes Resort Isle of Palms, SC Hear from our convention speakers: • Why Learning Centers are the way to go in your content marketing • Tax implications of agency sales and ownership • Key consumer hard trends that are changing business also in this issue:

National Legislative Conference recap Spring Conference photo recap Cautions to take when switching carriers

* For dramatization only. Stewart knows how to change a flat tire, but should not service a vehicle in any circumstance.

2

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SUMMER 2014

Independent Insurance Agents & Brokers of South Carolina PO Box 210008, Columbia, SC 29221 800 Gracern Road, Columbia, SC 29210 803-731-9460 803-772-6425 (fax) e-mail: information@iiabsc.com

Contents

Message from the Chairman of the Board

6

Message from the National Director

8

Cautions to Take When Switching Carriers

12

Young Agents Scholarship Golf Tournament

14

IIABSC Staff

G. Frank Sheppard, AAI President ext. 1239 or 803.760.1239 fsheppard@iiabsc.com

2014 Big “I” SC Spring Conference Photo Recap 16

Rebecca H. McCormack, CPCU, CIC, AAI Vice President ext. 1238 or 803.760.1238 bmccormack@iiabsc.com Beth Chastie Vice President of Administration & Finance ext. 9462 or 803.731.9462 bchastie@iiabsc.com

2014 Annual IIABSC Convention Agenda

23

Tax Implications of Agency Sales and Ownership

24

Why Learning Centers Are the Next Big Thing for Content Marketing

26

ACT: 2013 Trends Report

28

Palmetto Partners

33

Member News

35

IIABSC Education & Events Calendar

36

2014 Board of Directors and Executive Committee

38

Laura D. Cornell, CIC Director of Insurance Programs ext. 1227 or 803.760.1227 lcornell@iiabsc.com Megan Huebner Director of Events & Membership ext. 9463 or 803.731.9463 mhuebner@iiabsc.com Anita J. Trevino Director of Communications ext. 1237 or 803.760.1237 atrevino@iiabsc.com Mary A. Ellis Professional Development Administrator ext. 1219 or 803.760.1219 mellis@iiabsc.com Jessica Martinez Customer Service Representative ext. 1225 or 803.760.1225 jmartinez@iiabsc.com Martha Lavigne Administrative Assistant ext. 9461 or 803.731.9461 mlavigne@iiabsc.com

South Carolina Agent & Broker is the official magazine of the Independent Insurance Agents and Brokers of South Carolina and is published four times annually. IIABSC does not necessarily endorse any of the companies advertising in this publication or the views of its writers.

Articles and information published in this magazine may not be reproduced without written consent of the IIABSC. South Carolina Agent & Broker is not responsible for unsolicited manuscripts, art or photography. The publisher cannot assume responsibility for claims made by advertisers and is not responsible for the opinions expressed by contributing authors.

For more information on advertising, contact Jim Aitkins Blue Water Publishers, 22727 - 161st Avenue SE Monroe, WA 98272 360-805-6474 fax: 360-805-6475 jima@bluewaterpublishers.com

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South Carolina Agent & Broker • Summer 2014

Advertiser Index Access Home Insurance 15 Amerisafe 31 Anderson and Murison 37 Assure Alliance 17 Atlas General 34 Builders Mutual Insurance 11 Burns & Wilcox 5 FCCI Insurance Group 15 GUARD Insurance Group 17 HICI 9 ISU Agency Network 40 JM Wilson 25 Jackson Sumner & Associates 2

Johnson & Johnson 20, 21 Lighthouse Property Insurance 30 M. J. Kelly of South Carolina 29 Preferred Specialty 39 RPS Rollins 3 Risk Innovations 32 SCHBSIF 7 Summit Marketing Services 29 TAPCO Underwriters 19 The National Security Group 38 UPC Insurance 27 Utica National 29

[Cover image: ©Wild Dunes Resort] This fall, the IIABSC annual convention returns to South Carolina for our first time at the Wild Dunes Resort in the Isle of Palms. See pages 23-34 for the agenda and preview of our speakers. Details and registration information is available on our website, www.iiabsc.com

Even the office coffee tastes better with Burns & Wilcox.

PERSONAL INSURANCE

Your traditional insurance markets can handle most of your clients’ personal insurance needs, but not all. Even wholesalers have their limits, unless your wholesaler is Burns & Wilcox. As the largest personal insurance wholesaler, our unequaled access to markets means quick solutions for all your hard-to-place risks. Don’t call just any wholesaler. Just call Burns & Wilcox.

Myrtle Beach, South Carolina | 843.651.3271 | toll free 800.849.3271 fax 843.651.6040 | myrtlebeach.burnsandwilcox.com Charlotte, North Carolina | 704.525.1152 | toll free 800.999.3434 fax 704.525.7399 | charlotte.burnsandwilcox.com Morehead City, North Carolina | 252.726.8992 | toll free 800.498.1600 fax 252.726.9484 | moreheadcity.burnsandwilcox.com

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

IIABSC Chairman of the Board Ken Finch, CPCU, CRM, CIC, AAI

W

SC Trusted Choice® Freedom Campaign digital ads performing well

e just wrapped up our final month of the first series of Freedom Campaign digital display banner ads running on targeted websites from April-June. The second series starts in September and runs until November, and we are very optimistic about its return on investment.

The general goal of these ads was to increase Trusted Choice® brand exposure to SC consumers and increase traffic to our Trusted Choice® consumer website on top of what our national association was already doing. We didn’t have the final numbers as of press time, but after two months 66 SC consumers had searched for an agent or received a quote online through trustedchoice.com as a direct result of our ads. In May alone, the campaign made 5.5 million impressions and 2,462 clicks in South Carolina and more than 71 million impressions and 32,000 clicks nationally. In April, there were 3 million impressions and 931 clicks in South Carolina and more than 11.2 million impressions and 5,571 clicks nationally. ​ How digital ads work/ terminology Display banner ads appear adjacent to content on web pages, and their audience can be targeted by age, gender and location down to the zipcode. Our state and national Freedom Campaign ads are running on websites such as trulia.com, Forbes.com, AutoTrader.com and TheKnot.com (wedding planning).

Each time an ad displays on a webpage viewed by a consumer is an “impression.” Impressions are important because it means brand exposure. More consumers seeing the Trusted Choice® logo and the term “independent agent” is one goal of this campaign.

Each time a consumer clicks on our ad is a “click,” where they are directed to our consumer website, TrustedChoice.com​. Clicks are important of course because it means more people seeing our consumer website and exploring its content.

The ultimate goal of our consumer website is for consumers to contact our members through the “Find an agent” or “Get a quote” tools. Each time a consumer does either task is a “conversion.”

The best thing about digital ads, other than the ability to target specific audience types, are that they are optimized as analytics show what variables generate better consumer response. It means that our impressions, clicks and conversion numbers should get better with time.

Additional customizable campaign materials The Trusted Choice® Freedom Campaign debuted earlier this year

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South Carolina Agent & Broker • Summer 2014

Next three-month series starts in September

to show consumers that independent agents are free to do what’s right for them because you aren’t “tied down or bound” to any one company and therefore can offer more options. As a member of IIABSC and a SC Trusted Choice® agent, you are licensed to use all campaign materials freely and customize them with your agency’s information. It was created by a national advertising agency, and it has been consumer tested. Of the sample group, 84 percent agreed that independent agents are better suited to fulfill their insurance needs and 78 percent were more likely to use Trusted Choice® independent agents.

Digital ads aren’t the only medium touched by the Freedom Campaign. There are also print ads, radio ads, letters, self-mailers and postcards, all available to you at no cost. Now that our digital ads are optimizing, it is the perfect time to target some local prospects directly to your own agency while identifying yourself as a Trusted Choice® independent agent. Access campaign materials at trustedchoice.com/ agents.

Our national association will even reimburse part of your branding efforts (half of expenses up to $850) with Freedom Campaign materials through the Marketing Reimbursement Program. Eligible expenses include printing costs and ad space. Download the MRP application and guidelines at trustedchoice.com/mrp and of course contact the state IIABSC office with any questions.

As always, thank you for your support of the SC Big “I.” We provide the knowledge, tools and protection needed to build a successful agency and work year round to benefit the independent agency system as a whole. The Trusted Choice® brand is an important part of both.

We’ve Got Your Back.

Providing the right insurance protection starts with an in-depth understanding of your customers’ business. As South Carolina’s largest SIF, we are a workers’ compensation insurer for the construction industry. Created by builders, for builders, we’re here to help you protect and serve your clients with dependable, cost-effective workers’ compensation insurance.

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Crossover to Exceptional Service 800.678.8178 | schbsif.com Summer 2014 • South Carolina Agent & Broker

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National Director Jon A. Jensen, AAI, AIP

O

2014 BIG “I” LEGISLATIVE CONFERENCE April 9-10, Washington, DC

nce again in April South Carolina agents made the trip to Washington, DC, for the annual IIABA Legislative Conference, joining approximately 1,000 agents and brokers from around the country making visits to Congressional delegation.

South Carolina agents met with each member of the SC delegation, Representatives and Senators, discussing a variety of topics of interest to agents.

Agent Licensing Reform The No. 1 national issue for independent agents continues to be streamlining the licensing process across state lines. H.R. 1155 was introduced in March 2013 by Insurance Subcommittee Chairman Randy Neugebauer (R-Texas) and Rep. David Scott (D-Ga.) in the House. The companion bill, S. 534, the “National Association of Registered Agents & Brokers Reform Act” (NARAB II), was introduced in April 2013 by Sens. Jon Tester (D-Mont.) and Mike Johanns (R-Neb.) in the Senate. The House passed H.R. 1155 by a 397–6 vote in July 2013. The Senate passed the legislation as part of a separate flood insurance bill in January 2014.

The legislation has the support of the major insurance industry stakeholders and has been endorsed by the National Association of Insurance Commissioners (NAIC). NARAB II would increase consumer access to insurance markets and allow agents and brokers operating on a multi-state level to avoid duplicative licensing requirements while maintaining important consumer protections.

Terrorism Insurance The current authorization for the Terrorism Risk Insurance Act (TRIA) program expires on Dec. 31, 2014. IIABA urges Congress to work toward enacting an extension of this program as soon as possible in order to continue protecting our country’s economic security against the threat of terrorism. As such, the Big “I” supports H.R. 508, the “TRIA Reauthorization Act of 2013,” by Reps. Michael Grimm (R-N.Y.) and Carolyn Maloney (D-N.Y.), which would provide a five-year reauthorization of this important program. As the legislative process moves forward in both chambers, the IIABA looks forward to working with the committees of jurisdiction on their proposals to bolster the commercial property-casualty market for terrorism insurance.

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South Carolina Agent & Broker • Summer 2014

Insurance Regulation In 2010 the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was signed into law. While most of the law applies to banks, securities firms and other financial institutions, there are some elements that impact the insurance market. The Big “I” is committed to working with the appropriate federal agencies, state regulators and Congress to ensure that the implementation of these provisions does not inappropriately intrude upon state regulation of insurance or place an undue burden on independent agents and brokers, the companies with which they work or the consumers we serve. Furthermore, the recent Federal Insurance Office (FIO) report on insurance modernization (available on our website, iiiabsc.com) specifically did not call for a major overhaul of insurance regulation.

Health Care Reform The Affordable Care Act (ACA) continues to create a challenging environment for independent agencies both as health-care consumers and as health-insurance advisors. The Big “I” is working to ensure its small-business membership will be able to continue offering their employees access to quality and affordable health insurance while maintaining the high level of service clients have come to expect. A key issue for IIABA is ensuring a strong agent and broker role in health insurance Marketplaces.

With the major market changes caused by the ACA, consumers need professional guidance more than ever, and not only with the initial purchase but the continued servicing of the policy as consumer needs arise. In tandem with this issue, proper regulation, training and oversight of so-called “navigators” or other similar government-funded entities operating within the marketplaces will continue to be an important issue.

IIABA supports three bills introduced in the House by Rep. Cathy McMorris Rodgers (R-Wash.), and one in the Senate by Sen. Marco Rubio (R-Fla.), all of which highlight troubling consumer protection concerns raised by these programs. In addition, IIABA supports legislation in the House and Senate to provide relief for job creators by defining a full-time employee as an individual who works 40 hours per week, instead of the current 30 hour per week definition under the ACA. Lastly, the Cadillac Tax looms large as a source of further marketplace disruption in 2018. continued on page 10

Summer 2014 • South Carolina Agent & Broker

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Crop Insurance As strong advocates for the Federal Crop Insurance Program (FCIP), and as the largest trade group representing crop insurance agents, IIABA was pleased to see the FCIP retained and strengthened as the central risk management tool for farmers and ranchers in the Agricultural Act of 2014 (2014 Farm Bill).

After almost two years of debate, the Senate and House were able to come to a consensus on a five-year bill.

The Big “I” strongly supports the FCIP and thanks Congress for continuing this valuable program for American agriculture.

As discussions for the 2015 Standard Reinsurance Agreement (SRA) renegotiation begin, the Big “I” urges both the Obama Administration and the approved crop insurance companies (AIPs) to encourage agent participation in the SRA conversations relating to the day-to-day business of agents servicing crop policies for their customers.

InsurPac Awards Continue Another longtime tradition continued in 2014 – South Carolina was recognized for our leadership and participation in InsurPac fundraising. South Carolina was presented our ninth consecutive Eagle Award. Six states were presented with InsurPac Eagle Awards for 2013 (incl. North Dakota, Montana, New Hampshire, Louisiana and North Carolina). South Carolina had a $173 average per agency. IIABSC InsurPac Committee Chairman was Gus Brabham, CIC of Regions Insurance in Columbia.

Election to IIABA/ resignation from IIABSC Executive Committee On a more personal note, as you may have read in last year’s national legislative conference recap I made a bid for the IIABA national Executive Committee this year. The vote was held during this conference, and I was elected. I will be the second South Carolina agent to hold office with our national association; Hayne P. Glover of Greenville (our Agent of the Year award’s namesake) served as national president in 1961.

I begin my three-year, at-large term on the IIABA Executive Committee this September, and as a result I can no longer serve as your National Director on the IIABSC Executive Committee. I have resigned my position effective June 1.

I am proud to report that in accordance with our bylaws, the IIABSC Board of Directors elected Jules Anderson, AAI, of Anderson Insurance Associates in Charleston to fill the remainder of the term, through 2016.

I pledge to serve the national 10

association with the same energy and enthusiasm I have for IIABSC and to work to keep the Big “I” the association for independent insurance agents across the country. Until then, I leave you in great hands with Jules, Ken and the rest of the IIABSC Board.

IIABSC Board member and InsurPac Chairman Gus Brabham is recognized with our ninth consecutive Eagle Award for the voluntary individual contributions of our membership, averaging $173 per agency.

SC association leadership poses outside the Capitol building after visits inside with Congressmen and staff. Left to Right: IIABSC President Frank Sheppard, Chairman of the Board Ken Finch, National Director (and National Legislative Committee Chair) Jon Jensen, Steve Cannon, Tom Bates, Scott Moseley, Ashley Brady and Gus Brabham.

South Carolina Agent & Broker • Summer 2014

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CAUTIONS

T

he following case study exemplifies the importance of using coverage checklists when switching carriers as well as emphasizing to the client the importance of reporting any circumstances that could lead to later claims, even if they think the matter has been resolved. It also illustrates that price alone isn’t reason enough to switch, at least not without a thorough coverage comparison.

The client was a nonprofit organization with a staff of 85 people. A few months prior to meeting with their agent, an employee had filed a complaint with the Department of Labor (DOL) for unpaid overtime wages and retaliation. Besides receiving a written notice of the complaint, little had been heard from the DOL. Thinking they had done nothing wrong in the first place, the client assumed the issue had been resolved.

The meeting was to discuss ways to reduce the nonprofit’s EPL policy premium. The expiring policy was a claims-made and reported policy with effective dates and a continuous coverage provision for reporting purposes. The agent shopped the account and found what he assumed was the same coverage for less premium with another carrier.

The client agreed to make the change and completed the Warranty Application with the new carrier without disclosing the DOL complaint. Coverage was bound, effective at the expiring policy’s effective end date.

The following winter, the client reported an EPL claim involving the Wage and Hour issues that were from the prior DOL complaint. The agent tendered the matter to the carrier, who denied coverage for prior notice, misrepresentation on the application and an exclusion targeting Wage and Hour violations. Next, the claim was tendered to the prior carrier, who denied coverage based on late reporting.

Because of the continuing coverage provision, had the client remained with the expiring carrier, there would have been coverage for the retaliation claim, as well as $150,000 in defense for the Wage and Hour claims. The client sued the agent for the failure to advise regarding the completion of the application and for failing to procure coverage the “same as expiring.”

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South Carolina Agent & Broker • Summer 2014

to take when switching carriers Lessons learned The key take-away here is that there are many factors to consider before switching carriers for a client. When recommending or agreeing to make a carrier change, a careful comparison of the policies and coverages must be undertaken in order to avoid an E&O situation. Price alone is rarely reason enough to switch.

•

•

•

• •

Emphasize to the client the importance of reporting all known circumstances that could possibly arise as claims to the expiring carrier.

Confirm that claims subsequently made will relate back to the potential claims previously reported to the expiring carrier.

Complete a thorough comparison of the expiring and new policies, ensuring no coverage deficiencies in the new policy. If deficiencies are discovered, can they be rectified? At what cost? If not, determine if such coverage is available with another carrier.

Discuss any deficiencies and/or differences with the client and confirm in writing.

Check for any ERP on the expiring policy, i.e. 30,60 or 90 days? Make sure that all claims made during the ERP, as a result of wrongful acts occurring prior to the inception of the new policy, are reported to expiring carrier, if there is no ERP, should an ERP on the expiring policy be considered?

This publication provides general information and recommendations that may apply to many different situations or operations. Any recommendations described in this publication are not intended to be specific to your unique situation or operation. Consult with your staff and specialists to determine how and whether the information in this publication might guide you in developing specific plans or procedures for your situation or operations. This publication does not substitute for legal advice, which should come from your own counsel. ©2012 Fireman’s Fund Insurance Company, Novato, CA. All rights reserved.

Summer 2014 • South Carolina Agent & Broker

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General Sponsors:

Scholarship Golf Tournament Wildewood Country Club, Columbia, SC

May 13, 2014

We had 22 teams/ 89 players came out for a great cause and a fun afternoon at our 2014 Scholarship Golf tournament. Special thanks also to our sponsors. All tournament proceeds benefit the IIABSC Young Agents Scholarship Fund to support educational leadership and networking opportunities for SC young agents.

Tournament champions (alphabetical order): Bobby Garrison, David McLellan, Felix McLellan, Jewell McLellan. Longest Drive: Matt Hogan. Closest to the Pin: Troy Branham. Putting contest: Healy Baxter, Thomas Carlisle, Jeff Haynes, O. Smith Parrish putted a combined 61 inches in their qualifying round. Each putted 50 ft. for a $10,000 prize, but unfortunately no one made the shot.

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South Carolina Agent & Broker • Summer 2014

Johnson & Johnson, Beverage Carts Robert Milhous CPA, PA system Hull & Company, Inc., Giveaway PuroClean, Giveaway Preferred Specialty, Awards Reception BELFOR Property Restoration, Lunch & Bloody Mary Bar Southern Ins. Underwriters, Golf Towels UPC Insurance, Closest to the Pin Imperial PFS, Giveaway

Hole Sponsors:

Capitol Preferred Capitol Special Risks Glasspro, Inc. Hull & Company, Inc. IIABSC Agency Insurance House Jackson Sumner & Assoc.

Johnson & Johnson Liberty Mutual Insurance Penn National Insurance Preferred Specialty, LLC Progressive Insurance PuroClean Safeco Ins. Co., a Liberty Mutual Co. System Search, Inc. The Hartford UPC Insurance

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3:48 PM15 Summer 2014 • South Carolina Agent 5/14/14 & Broker

2014 Big “I” SC March 12 - 13 Embassy Suites, Columbia, SC

Thank you, sponsors Access Insurance Company Accident Fund Ins. Co. of America AFCO/ Prime Rate Premium Finance American Strategic Insurance Amerisafe Auto-Owners Ins. Co. Bankers Insurance Group Berkley Southeast Ins. Group Capitol Preferred Insurance Central Insurance Co. FirstComp Foremost Insurance Group Frontline Homeowners Ins. Genesee General/ GSB Hanover Excess & Surplus, Inc. The Hartford IIABSC Agency Insurance House Imperial PFS Jackson Sumner & Associates J.M. Wilson Johnson & Johnson Liberty Mutual Insurance Lighthouse Property Insurance Group Main Street America Group Mid-Continent Group National Security Fire & Casualty Phenix Mutual Fire Ins. Co. Penn National Insurance Preferred Specialty, LLC Prime Insurance Co. Progressive Insurance Risk Innovations RPS Safeco Insurance Southern Cross Underwriters Southern Insurance Underwriters State Auto Ins. Companies St. Johns Insurance Company Stonewood Ins. Co. Tapco Underwriters, Inc. Travelers United Property & Casualty Ins. Co. Westeld Insurance

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South Carolina Agent & Broker • Summer 2014

continued on page 18

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Summer 2014 • South Carolina Agent & Broker

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More photos from Spring Conference

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South Carolina Agent & Broker • Summer 2014

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South Carolina Agent & Broker • Summer 2014

Contact to start quoting: IIABSC Agency, Inc. 803.760.1225 information@iiabsc.com

2014 Annual IIABSC Convention October 5-7, 2014 Wild Dunes Resort October 5-7, 2014 Isle of Palms, SC

IIABSC Annual Convention Wild Dunes Resort Isle of Palms, SC

TENTATIVE AGENDA (View our website for up-to-date information)

Sunday, Oct. 5 11:00 am – 2:00 pm 12:00 – 6:00 pm 2:30 – 5:15 pm 5:30 – 6:00 pm 7:00 – 9:00 pm

Exhibitor set-up Registration desk open Exhibit hall open IIABSC Business session Opening reception

Monday, Oct. 6 7:30 – 12:00 pm 8:00 – 9:30 am 9:45 – 11:45 am

2:30 pm 6:30 – 7:00 pm 7:15 pm

Registration desk open Exhibit Hall Open Opening Session Golf Tournament/ optional activities Chairman’s reception Awards Banquet & Entertainment

Opening Session Keynote: The Magic of Content Marketing to Build Your Business, Brand and Bottom Line

By Marcus Sheridan, The Sales Lion Sheridan is a Southern boy who started a swimming pool company after graduating college, and it has grown to be one of the largest of its kind due to their content marketing efforts.

After successfully training other pool professionals to embrace these techniques, HubSpot made him a training partner, where he taught organizations across the country.

Opening Session: Agency Valuation and Perpetuation

By Jon Persky, CPA, CIC, PHR, Optimum Performance Solutions Speaker Jon Persky has spent the majority of his professional career in the insurance industry. Now he provides management consulting services on a nationwide basis to insurance agencies and carriers. His firm specializes in the areas of mergers

and acquisitions, agency valuation, sales and marketing, compensation planning and perpetuation planning.

Banquet Entertainment: Frank W. Abagnale Abagnale is the acclaimed subject of the book, movie and Broadway musical “Catch Me If You Can,” depicting his life between the ages of 16 and 21 where he successfully posed as an airline pilot, an attorney, a college professor and a pediatrician in addition to cashing $2.5 million in fraudulent checks. Apprehended by the French police when he was 21 years old, he served time in the French, Swedish and US prison systems. After five years he was released on the condition that he would help the federal government, without remuneration, by teaching and assisting federal law enforcement agencies.

He paid back every dime of that stolen $2.5 million and is now one of the world’s most respected authorities on forgery, embezzlement and secure documents.

Tuesday, Oct. 7 7:30 – 10:00 am Exhibit Booth Tear Down 7:30 – 10:00 am Registration desk open 8:00 – 10:45 am Breakfast & Closing Session Closing Session Speaker: Ron Berg, Agents Council for Technology Ron is the Executive Director for ACT (the Agents Council for Technology), bringing together insurance carriers, software vendors, agents, and other industry associations to advance the use of the most effective business process and technology for independent agents and brokers.

View details and register at: iiabsc.com Summer 2014 • South Carolina Agent & Broker

23

IIABSC Annual Convention Speaker

I

TAX IMPLICATIONS of AGENCY SALES & OWNERSHIP

By Jon Persky, CPA, CIC, PHR IIABSC Annual Convention speaker

t used to be so simple. Before December 31, 2012, if you sold your agency you paid a flat 15 percent federal tax on any capital gain. As a result, sellers wanted to get as much money as they could up front. There was no advantage to receiving payments over time. Oh, how times have changed.

Capital Gains Tax Effective Jan. 1, 2013, the capital gains rate went up. While it is still 15 percent for capital gains less than $450,000 if married and filing jointly ($400,000 if single), more than these amounts and it jumps to 20 percent. It’s not as simple as just looking at the capital gains amount, however. You also need to factor in the rest of your income.

Assuming the capital gain you receive in 2014 from the sale of your agency is $250,000 and you have $100,000 of other income, your capital gains rate would be 15 percent.

But if you have a capital gain of $250,000 and $250,000 in other income then $200,000 of the capital gain would be taxed at 15 percent and the remaining $50,000 would be taxed at 20 percent assuming you are married. If you have $250,000 of capital gain and $500,000 or more in other

24

South Carolina Agent & Broker • Summer 2014

income, the full $250,000 of capital gain would be taxed at 20 percent.

To reduce your capital gains tax liability you could structure it as an installment sale. While you should receive interest on the amount due (required by the IRS) you should also consider the risk of the buyer failing to make payments.

Is it worth saving on taxes if there is significant risk that you won’t get paid?

Obamacare Tax In addition to the increase in capital gains tax, there is now also an additional 3.8 percent tax on unearned income (including capital gains). This tax is on capital gains in excess of $250,000 for a married couple or $200,000 for an individual. It was imposed to help pay for Obamacare and functions the same way as the capital-gains tax. If you have $250,000 of capital gains and no other income you don’t have to pay, but when you combine the capital gain with your other income you must pay 3.8 percent on every dollar of capital gain that exceeds the $250,000 total income threshold.

Ten-Year Rule Many agencies are C corporations. While this may not complicate internal perpetuation, the owners would run into significant tax problems if they wanted to sell to a third party. Most buyers insist on an asset sale so they can amortize the purchase price and avoid hidden or unknown liabilities. An asset sale of a C corporation however, can result in double taxation for the seller, whereas the asset sale of an S corp is taxed once at the capital gains rate. If the seller wants to convert from a C corp to an S corp, he or she must wait ten years before getting full S-corp tax treatment.

If your agency is still a C corporation, you should seriously consider converting to S status as soon as possible to start the clock on the ten-year wait period. All you need to do is file a Form 2553 within 75 days after the end of your fiscal year. You should also consider having your agency valued by a third party to limit the amount subject to the built-in gains tax should you sell before completing the waiting period.

RELATIONSHIPS IT’S WHY WE STAND OUT FROM THE CROWD

“I go the extra mile to make myself as available as possible to our customers every day, by phone, email or in person. I love helping people, whether it’s getting that quote out in the 11th hour or placing

Not Selling?

If you aren’t selling your agency, there are still some significant tax-saving measures to consider. A lot of agency owners are sole proprietorships. They pay Medicare tax on the entire agency income generated. For example if you take home $300,000, you pay 2.9 percent ($8,700) in Medicare tax. They are also subject to a 0.9 percent Medicare Surtax on income more than $250,000 ($200,000 if single), which would add $450.

A possible solution would be to become an S corporation and take a salary of $150,000 to become K-1 income. That income would flow into your personal tax return, and the Medicare Tax would be only $4,350 with no surtax. This example would result in a savings of $4,800.

Summary Whether you are selling your agency now or keeping it for many years, tax planning can be very complex. Don’t stay a C corp or a sole proprietorship because “that’s what I’ve always been.”

Speak with a tax professional. A little bit of planning now can save you hundreds of thousands of dollars in the future.

About the Author: Jon Persky, CIC, CPA, PHR is the President of Optimum Performance Solutions, LLC, (www.optperform.com), an insurance-agency consulting firm providing valuation, merger and acquisition, agency perpetuation, strategic planning and marketing and retention services to insurance agencies nationwide. Jon is on the national faculty of the Society of Certified Insurance Counselors and lectures on agency management topics throughout the United States, including a scheduled appearance at the IIABSC Annual Convention this October at Wild Dunes. He can be contacted at 813-835-7337 or at jon@optperform.com.

that ‘impossible risk’. ”

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Summer 2014 • South Carolina Agent & Broker

25

IIABSC Annual Convention Speaker

Why LEARNING CENTERS, Not Blogs, Are The Next Big Thing

For CONTENT MARKETING

I

By Marcus Sheridan, The Sales Lion, IIABSC Annual Convention Keynote speaker

’ve never liked the word “blog.” Mainly because it devalues what the action is supposed to be and the impact it can potentially have for businesses that embrace the practice properly.

I’m not the only one who thinks this though, as I’ve talked with many companies over the past few years that not only dislike the phrase, but hate putting it as a main option on their website’s navigation bar. It makes sense if you think about it, especially for companies that need a word to encapsulate all their content, in all its forms. It is for this reason, more businesses are developing Learning Centers—a place that not only includes blog articles, but the rest of their content as well.

Here is how they work: Some consumers love to read content.

Others want to watch videos or listen to podcasts. And then there are folks that utilize all three learning methods depending on the situation. Great companies and brands understand this reality and therefore the need to produce content in all of these forms so as to make the greatest connection with their consumer base.

Once a company “gets it,” the different types of content that can be produced is profound: 26

South Carolina Agent & Broker • Summer 2014

• Blog articles • Videos • Webinars • Podcasts • White Papers • eBooks, etc.

With so many ways to do this thing we call “content marketing,” a website’s Learning Center becomes a natural means to allow all your content to live in one place so that users can quickly find what they’re looking for.

How to create a powerful Learning Center To show you a company that is doing this at a very advanced level take a look at the example of Health Catalyst (one of my clients), a Healthcare Analytics Company out of Utah.

Despite the fact that Health Catalyst has only been fully engaged in content marketing for about a year, their dedication to this side of their business development has been astounding.

The image below shows the Health Catalyst’s Learning Center page, clearly demonstrating all of the unique types of content

the company has created for their customers, prospects and website users.

I could go into a long explanation of how producing such incredible content in all of these different areas has impacted Health Catalyst’s bottom line, but suffice to say they’ve had an astounding return on investment and are already viewed as an industry leader in their space, despite some of the Goliaths that they compete with.

Going forward, more and more companies are going to have literal “Learning Centers” on their websites as they embrace the power of content and produce as many forms as effectively possible.

It is what consumers want, and just like everything else in the digital age, industry leaders will be made by those that can do it well sooner.

At the top of their Learning Center, Health Catalysts explains to visitors a simple drag-and-drop method of collecting and sharing their content.

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Summer 2014 • South Carolina Agent & Broker

27

IIABSC Annual Convention Speaker

2013 KEY TRENDS REPORT By the ACT Strategic Future Issues Work Group

T

Ron Berg IIABSC Annual Convention closing speaker

his report is Phase One of a two-part initiative. In Phase One we identify the key trends affecting our future. In Phase Two we establish a Customer Experience Work Group to map the customer’s journey and overlay the life-cycle touch points agencies and carriers have with their customers to consider how agencies and carriers can apply key trends to enhance the overall customer experience at each touch point.

Hard trends are those that we think are permanent and will change our reality. In 2012 we identified five trends, and in 2013 we reviewed and updated them as hard trends to serve as a foundation for the development of an industry Must-Do Issues list.

We recognize that many of the examples used to help define the hard trends are themselves constantly changing and are at least indicators or influencers of larger hard trends.

Also, this is a living document that will grow and change over time and is designed to encourage dialogue and discussion.

Social Culture We have transitioned to this new term from Social Web. “Social Culture” more accurately reflects the broad influence and impact Social is having on all aspects of our society. It implies the ongoing transformational change in our culture, 28

South Carolina Agent & Broker • Summer 2014

an expansive strategic trend that has grown out of social web tools and technology.

In this new environment, consumers have taken online social interaction to a higher level, communicating virtually with much larger groups of people while at the same time becoming increasingly connected and empowered using social media, mobile devices and other technologies.

Consumers are employing these new tools to become better informed, in making buying decisions and to express their opinions about the products, businesses and events of interest to them.

Businesses are reinventing their business models to fit into the social culture and are transforming themselves into “social businesses” to properly leverage the opportunities presented by the social web, as well as to adapt and respond to the expectations of the connected consumer. Amber Naslund, President of Sideraworks, describes a social business as “the creation of an organization that is optimized to benefit its entire ecosystem (customers, employees, owners, partners) by embedding collaboration, information sharing and active engagement into its operations and culture. The result is a more responsive, adaptable, effective and ultimately more successful company.” continued on page 30

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Call today to discuss how we can partner together to add value to your agency.

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Components and influencers: • Rich Media. (Voice and Video - podcast, Vine, Instagram video, SlideShare) • The Education Economy. Think about what the consumer wants to know vs. what we want to tell them. Consumers want to be educated, informed and advised but not sold.

The key is to create digital relationships and build a community around the needs or interests of the customer.

That is, to create connections relevant to them. You must provide value through educating, informing and engaging clients and prospects. Demonstrate thought leadership and subject-matter expertise. Inform your online community in the moment so they can prevent mistakes and make right decisions.

• Inbound Marketing. Also known as “content marketing,” this concept is permanently changing how agencies communicate and sell to customers and prospects.

One-way communications from the agency to the consumer (e.g., advertising) is becoming a lot less effective with significant groups of people.

• Digital Marketing.

• New payment tools/methodologies. (Paypal, Square, etc.)

• Marketing Automation. (Infusionsoft, Hubspot) • Disruptive technology. The speed of change is

•

accelerating. Do not dismiss the value of a technology that currently only appeals to a small market or you may be blindsided later when it matures.

Transformational leadership. Adaptation and transcendence is key to survival.

Connected Society Connected consumers are empowered through technology to interact with the world around them and shape how businesses respond. They find, share and communicate information differently. They live on smart phones and tablets and network with friends and businesses through social and mobile technologies. They broadcast their buying decisions to their networked community.

Reaching and responding to this consumer requires different strategies and tactics than traditional methods of marketing and communication. It is critical to create relevant connections. Connectivity is expanding from consumers to business and all aspects of our physical world.

Here are some of the changes taking place: • Digital/Social Natives interact and consume information differently. They are not only connected to the web, but to each other.

• Responsive web. Websites need to respond to a variety of devices with its full functionality intact.

• Sharing Society. The social culture provides connections for people to share cars, bikes, couches, homes, etc.

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• New Technology. 3D printing and driverless cars are a few examples.

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Mobile and Mobility Mobile devices, along with Social and Cloud Computing, are what have enabled the cultural transformation and the emergence of the Connected Consumer.

Mobile cuts across everything. It will change the products offered (telematics, health checks, travel, etc.); it will affect quotes, account management and claims; it creates a new infrastructure for communications in disaster situations. It will also change the way the customer interacts with agents and carriers, and how agents and carriers communicate with each other.

Demographic/Diversity Transformation Diverse groups (age, ethnicity, culture, gender, connected vs. non-connected) have different preferences as to how they want to interact with their business partners. Latino and Asian populations across the United States continue to grow, as well as the consumers who speak their various languages. And there is now a new category of diversity consisting of the connected vs. non-connected consumer.

Indicators and influencers: • Mobile workforce. “Work” is re-imagined from somewhere that we go into something that we do. There are differing expectations among employees as to where, when, why and how insurance people should work in the future. More flexible work/ life balance models are starting to modify the traditional brick and mortar or 9-to-5 models.

• Virtual Employee. (WAHVE) • Prepare for the exit of Baby Boomers. This large group of people exiting the workforce will result in changes in business ownership, transfer significant wealth and create a loss of expertise and industry knowledge. Solid perpetuation planning remains the No. 1 driver of value of agencies and their future.

their prospecting, marketing, sales, servicing and management processes by predicting when a consumer is likely to have a need rather than waiting for them to reach out.

Indicators and influencers: Big Data allows businesses to acquire intelligence on a much larger scale than allowed by their internal systems. They can now make correlations between seemingly unrelated data to create accurate business intelligence. Predictive analytics is an example.

• Online analytics. Easy-to-use, comprehensive analytics available as part of online marketing tools can be used to fine tune and measure the effectiveness of an agency’s online marketing efforts.

• Carriers will gather increasing amounts of data from consumer social interactions, as well as from their own databases. This data will include “life-event” trigger information. How can carriers convert this data into useful business intelligence for their agents to use in their marketing, sales and servicing efforts? How can carriers create business intelligence from their own claims data to assist their agents in providing risk management advice to their clients?

• Evolving roles. What impact will the availability of more extensive data and business intelligence have on the roles continued on page 32

Growing Availability of Big Data and Actionable Business Intelligence New technologies and techniques are enabling the capture and analysis of more and more data and resulting useful business intelligence. These analytic capabilities have significantly changed how insurance carriers make decisions, and there are major opportunities for independent agencies to use it to enhance Summer 2014 • South Carolina Agent & Broker

31

THE BRITISH ARE

COMING HERE!

•

performed within carriers, such as in underwriting, loss control and data analysis? What impact will this business intelligence have on the frontline underwriting traditionally performed by agencies? How might the relationship between the carrier and the policyholder change as the result of the carrier’s possession of this extensive data and business intelligence?

Competition. Does the availability of Big Data and business intelligence ease the entry of new competitors with business intelligence skills into the insurance industry? (e.g., Amazon, Google, etc.)

Changing Nature of Risk Changing social norms, applications of technology, climate, trends noted above and more are changing the types of risks that consumers and businesses are facing. These changes create opportunities for new coverages and the need for changes in advice agents give their clients about their risks. Examples include the “sharing society,” information-security exposures and the increasing amounts and severity of natural catastrophic events.

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Indicators and Influencers: • Mass Customization. Customized and targeted marketing, product creation and delivery.

• Natural Disasters. Will the pattern of unpredictable weather and major catastrophic events in the past several years continue, driven by global warming and/or other factors, or is it a temporary aberration from the norm?

• Disruptive Channels. Will disruptive channels, like the sharing society where property is shared among several users, have a significant impact on what is insured and how insurance is sold? Will the definition of “risk” and “coverage” change?

• Update coverages. Much of what we currently offer would benefit from a fresh look, given all of the changes that continually occur.

• Carriers will need to be more agile and responsive to the increasing speed of change in our culture and business landscape.

Information Security Regulation Federal and state regulators will increasingly target businesses that have not implemented required security plans and procedures, and the costs of data breaches will become more expensive. Criminal elements will continue to exploit system-security vulnerabilities using increasingly sophisticated technologies, and employees will make more mistakes. Each resulting in the breach of classes of personal information protected by the federal and state statutes, typically referred to as Protected Health Information (PHI) and Personally Identifiable Information (PII). Mobility greatly increases the security risks businesses face if protected consumer continued on page 34

Thank you,

Palmetto Partners The Palmetto Partners program was created as a simplified way for companies, brokers and vendors to support the association and all our major conferences and events on an ongoing basis.

Diamond Level

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Platinum Level

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Gold Level

Jackson Sumner & Associates Safeco Insurance St. Johns Insurance Company

Bronze Level

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AFCO/Prime Rate Premium Finance American Strategic Insurance Bankers Insurance Group Frontline Insurance Imperial PFS Main Street America Group National Security Fire & Casualty Preferred Specialty Prime Insurance Co. RPS Southern Cross Underwriters Travelers

Access Insurance Co. Accident Fund Ins. Co. of America Amerisafe Auto-owners Insurance Co. Berkley Southeast Insurance Group Capitol Preferred Insurance Co. & Southern Fidelity Central Insurance Co. FirstComp Genesee General Hanover Excess & Surplus Insurance House

The Hartford J.M. Wilson Lighthouse Property Insurance Corp.

Mid-Continent Group Phenix Mutual Fire Ins. Co. Penn National Insurance Risk Innovations, LLC Southern Insurance Underwriters State Auto Insurance Co. Stonewood Insurance Underwriters Tapco Underwriters Westfield Insurance

Summer 2014 • South Carolina Agent & Broker

33

information is put on these devices and they are lost or stolen.

The growing risks also create opportunities for carriers and agents to provide coverage and risk-management guidance to clients. It is ironic that at the very time consumers seem to be willing to share more personal information via social media, laws and regulations are being implemented that impose more rigorous requirements for businesses to safeguard certain categories of protected consumer information.

Implications ot it all: We are seeing new business models spring up in various industries that take advantage of disruptive technologies and changing consumer tastes to displace traditional businesses. It has occurred to some extent with auto insurance, and direct carriers have taken significant market share from traditional agency companies.

We are likely to see more radical changes in distribution models emerge in the future, giving customers opportunities to buy insurance in new ways. It may come from retail firms such as Walmart and Target, or companies known for their innovation and re-invention of traditional business models such as Amazon and Google. How do agencies best position themselves to compete in such a market?

New business models unbound by geographical boundaries are emerging for independent agencies as well. Many consumers will take advantage of selfservice functions online while allowing agencies to reach out to them personally and through websites/social media to provide the types of insights and insurance knowledge they are looking for and not finding elsewhere.

Independent agencies and carriers will need the flexibility to interact with clients using multiple communications methods, depending upon what that client is most comfortable. Their digital presence must be able to render well on mobile devices of all types, because 34

consumers use these devices at least half the time when accessing the Web. Agencies and carriers will need to keep up with federal and state privacy and data breach laws and regulations and have the policies and procedures in place to manage their information security risks.

Just as changing consumer expectations are driving their interactions with agents and carriers in real time and in new ways, agency-carrier relationships need to change as well. Agencies need a new level of real-time support from their carriers to respond to clients, and the business models of both agencies and carriers must evolve to respond to these trends.

Agencies and carriers face the challenge of keeping up with the trends and competitive pressures that will impact them in this time of incredibly rapid and profound change. It will be important for individual firms to create a culture that embraces innovation and puts in place the necessary processes to evaluate and implement changes successfully. It also will be important for individual businesses and industry organizations to create innovative communications strategies so that the messages filter down to the right levels of individual organizations.

Ron Berg is the new Executive Director for the Agents Council for Technology (ACT) through our national association, bringing together insurance carriers, software vendors, agents, and other industry associations to advance the use of the most effective business process and technology for independent agents and brokers.

He will appear Tuesday morning to further discuss these issues and the activities of ACT during our IIABSC Annual Convention, Oct. 5-7 at the Wild Dunes Resort in the Isle of Palms, SC. Visit iiaba.net.act for more information about current technology issues faced by independent agents.

South Carolina Agent & Broker • Summer 2014

Member News

Welcome New Agency Members Commercial Connection, LLC Greenville

Independent Insurance Brokers, Inc. Irmo

Freedom Tax & Insurance North Charleston

Shared Alliance Insurance, Inc. Taylors

Hemly Insurance Group, LLC Greer

Welcome New Associate Members Cabrillo Coastal General Ins Myrtle Beach Wright Flood Morehead City, NC

Owens Insurance Agency named SC Small Office/Home Office of the Year

Upchurch & Jowers recognizes Local Academic Achievers

The U.S. Small Business Administration has awarded Owens Insurance Agency the 2014 South Carolina Small Office/Home Office of the year. The honor is awarded to a small business with 15 or fewer employees that has demonstrated outstanding growth, innovation, and community involvement.

Founded in 1952, by Greer native Don Owens, Owens Insurance Agency, began as a small main-street agency providing home and auto insurance to Greer-area residents. In 1993, Don’s son Riley bought the agency and began to offer business owners of the Upstate another source for their commercial insurance needs. The company is licensed in North Carolina, Georgia and Tennessee.

IIABSC member agency Upchurch & Jowers Insurance Agency of Camden recently recognized the local school district’s graduating class of academic achievers, 32 students in all, during its All County Academic Team awards banquet, now in its 19th year.

Founded in 1995, agency principals Joe Upchurch and Victor Jowers teamed up with a longtime company partner and reached out to the Kershaw County School District for a way to recognize academic achievement among the area’s high schools, which include Camden High School, Lugoff-Elgin High School and North Central High School.

The criteria used to select recipients was established by the Kershaw County School District.

You can view student videos and event archives on the agency’s website, www.upjowers.com, under the Community tab.

IIAB Greater Charleston donates $1,000 to Make-A-Wish SC The IIAB of Greater Charleston is committed to giving back to their community. At the March Luncheon the IIABGC President Paul Steadman presented a $1,000 contribution to the Make a Wish Foundation of Charleston. They also donated the proceeds ($1,000) of their May 2014 Golf Outing to Make a Wish.

The Association also raised $10,000 for the Heroes for Fire Victims by the American Red Cross to help them provide immediate emergency relief of temporary shelter, financial assistance for food and clothing and other related needs for eight families who have lost everything in a home fire.

Summer 2014 • South Carolina Agent & Broker

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Calendar

m m

View up-to-date calendar, course descriptions and register using our CLASSROOM COURSES online Education & Event Calendar at www.iiabsc.com/education WEBCAST/WEBINAR - no test required for CE Credit

July 08 08 08 08 08 14 15 15 16 16 16 16 17 17 17 22 22

22 23 23 24 24 24

24 24 29

COPE: Property Underwriting and Effective Loss Control, 2 hrs. P&C Data Privacy Insurance, 2 hrs. P&C Building Codes Are BAD for Your Insureds, 2 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics SC Surplus Lines License Review Course, 3 hrs. P&C Top 5 Life Insurance Uses, 2 hrs. L&H Directors and Officers Liability Insurance, 2 hrs. P&C SC Rules & Regulations, Columbia, 4 hrs. P&C NFIP Basic Course w/2013 Updates, 3 hrs. P&C Estate Planning: Gifts, Trusts & Life Insurance, 2 hrs. L&H Certificates of Insurance, 3 hrs. P&C An Errors and Omissions Mock Trial, 2 hrs. P&C Business Auto Claims that Cause Problems, 2 hrs. P&C CISR Agency Operations, Myrtle Beach, 6 P&C or LH, 1 Ethics SC Rules & Regulations, Charleston, 4 hrs. P&C Liability Issues to Worry About: Indemnity Agreements & Additional Insureds, 2 hrs. P&C Agency Management Based E&O and Ethics, 3 hrs. Ethics SC Rules & Regulations, Hilton Head, 4 hrs. P&C CISR Commercial Property, Greenville, 7 hrs. P&C Hot Topics in Personal Lines, 2 hrs. P&C Personal Lines Claims That Cause Problems, 2 hrs. P&C E&O Risk Management, Meeting the Challenge of Change, Columbia, 3 P&C & 3 Ethics E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics AIAM Day 1, Columbia, 7 hrs. P&C

August 07-10 07 11 12

12 12 12 12 13 13

14

36

Young Agents Conference, Myrtle Beach Business Income: Beyond the Basics, 3 hrs. P&C SC Surplus Lines License Review Course, 3 hrs. P&C E&O Risk Management, Meeting the Challenge of Change, Rock Hill, 3 P&C & 3 Ethics Data Privacy Insurance, 2 hrs. P&C Commercial Lines Claims that Cause Problems, 2 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics SC Rules & Regulations, Greenville, 4 hrs. P&C E&O Risk Management, Meeting the Challenge of Change, Florence, 3 P&C & 3 Ethics NFIP Basic Course w/2013 Updates, 3 hrs. P&C

South Carolina Agent & Broker • Summer 2014

14 19 19 20 21 21 21 22 26 27-29 28 28

Certificates of Insurance, 3 hrs. P&C Those Kids and Their Cars!, 2 hrs. P&C CISR Commercial Casualty I, Columbia, 7 hrs. P&C CISR Personal Auto, Charleston, 7 hrs. P&C SC Rules & Regulations, Myrtle Beach, 4 hrs. P&C Insurance and the Property Lease, 2 hrs. P&C Retirement Planning and Annuities, 2 hrs. L&H Hot Topics in Personal Lines, 2 hrs. P&C Directors and Officers Liability Insurance, 2 hrs. P&C CIC Commercial Property Institute, Columbia, 20 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics

September 04 04 08 09 09 10 10 10 10-11 11 16 16 16 17 17 17 17 18 18 18

18 23 23 24-26 25

25

25

Building Codes Are BAD for Your Insureds. 2 hrs. P&C COPE: Property Underwriting and Effective Loss Control, 2 hrs. P&C SC Surplus Lines License Review Course, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics Estate Planning Techniques: Gifts, Trusts & Life Ins., 2 hrs. L&H Data Privacy Insurance, 2 hrs. P&C CISR Commercial Casualty I, Rock Hill, 7 hrs. P&C Personal Lines Nuts & Bolts, Columbia, 12 hrs. P&C Business Auto Claims that Cause Problems, 2 hrs. P&C NFIP Basic Course w/2013 Updates, 3 hrs. P&C An Errors & Omissions Mock Trial, 2 hrs. P&C AIAM Day 6, Charleston, 3 Ethics, 2 P&C Top 5 Life Insurance Uses, 2 hrs. L&H Hot Topics in Personal Lines, 2 hrs. P&C CISR Personal Auto, Hilton Head, 7 hrs. P&C CISR Commercial Property, Charleston, 7 hrs. P&C Agency Management Based E&O and Ethics, 3 hrs. Ethics Certificates of Insurance, 3 hrs. P&C Liability Issues to Worry About: Indemnity Agreements & Additional Insureds, 2 hrs. P&C CISR William T. Hold Seminar, Columbia, 7 hrs. P&C Personal Lines Claims That Cause Problems, 2 hrs. P&C Ten Questions that Drive Me Crazy about the BAP, Charleston, 6 hrs. P&C CIC Commercial Casualty Institute, Myrtle Beach, 20 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics Ten Questions that Drive Me Crazy about the BAP, Columbia, 6 hrs. P&C

26

Ten Questions that Drive Me Crazy about the BAP, Greenville, 6 hrs. P&C

October 02 02 02 05-07 09 09 13 14 14 14

15 15 16 16 16 22

22 23 23 23

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AIAM Day 2, Greenville, 6 hrs. P&C Business Income: Beyond the Basics, 3 hrs. P&C Directors and Officers Liability Insurance, 2 hrs. P&C Annual Convention, Isle of Palms Those Kids and Their Cars!, 2 hrs. P&C Certificates of Insurance, 3 hrs. P&C SC Surplus Lines License Review Course, 3 hrs. P&C Commercial Lines Claims That Cause Problems, 2 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics CISR Personal Residential Property, Myrtle Beach, 7 hrs. P&C NFIP Basic Course w/2013 Updates, 3 hrs. P&C Business Income: the Mystery Continues, Charleston, 6 hrs. P&C CISR Commercial Casualty II, Greenville, 7 hrs. P&C CISR Personal Auto, Florence, 7 hrs. P&C E&O Risk Management Meeting the Challenge of Change, Hilton Head, 3 P&C & 3 Ethics Retirement Planning and Annuities, 2 hrs. L&H Insurance and the Property Lease, 2 hrs. P&C Hot Topics in Personal Lines, 2 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics Data Privacy Insurance, 2 hrs. P&C

November 04 05-07 10 10 11

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December 04 08 09 09 09

09

10 10 11 11 16 17 18 18 18

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Hot Topics in Personal Lines, 2 hrs. P&C SC Surplus Lines License Review Course, 3 hrs. P&C Certificates of Insurance, 3 hrs. P&C Commercial Lines Claims That Cause Problems, 2 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics CISR Personal Lines Miscellaneous, Greenville, 7 hrs. P&C Those Kids and Their Cars!, 2 hrs. P&C Business Income: Beyond the Basics, 3 hrs. P&C NFIP Basic Course w/2013 Updates, 3 hrs. P&C Retirement Planning and Annuities, 2 hrs. L&H Directors and Officers Liability Insurance, 2 hrs. P &C Insurance and the Property Lease, 2 hrs. P&C Data Privacy Insurance, 2 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 1, 3 hrs. P&C E&O Risk Management Meeting Challenge of Change Part 2, 3 hrs. Ethics 11716 WA IIABA ad.pdf

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2014 Board of Directors

Executive Committee Chairman Kenneth A. “Ken” Finch, CPCU, CIC, CRM, AAI Countybanc Insurance Greenwood, SC kfinch@ecountybanc.com Chairman Elect/ Treasurer R. Scott Moseley Irmo Insurance Agency Irmo, SC scott@irmoins.com

National Director Jules J. Anderson, Jr., AAI Anderson Insurance Associates Charleston, SC janderson@aiasc.com Immediate Past Chairman Ashley Brady, CIC First Charter Co., Inc Marion, SC abrady@firstcharterins.com

Secretary Tom Bates, Jr. Herlong Bates Burnett Greenville, SC tom@hbbins.com

Directors William J. Bowers, AIP (Will) Russell Massey & Co., Inc. Columbia, SC will@russellmassey.com

James B. Galloway (Ben) Peoples First Insurance Rock Hill, SC bengalloway@peoplesfirstinsurance.com

Angus M. Brabham, IV, CIC (Gus) Regions Insurance Columbia, SC gus.brabham@regions.com

Dana D. Groome, CIC, CPCU, CISR, ACSR Peoples Underwriters Inc. Conway, SC danag@peoplesunderwriters.com

J. Robert Bryant, Jr. (Bobby) Robert Bryant & Son, Inc. Orangeburg, SC bobby@robertbryantandson.com Stephen B. Cannon, PhD, CPCU (Steve) Law Insurance Agency, Inc Spartanburg, SC scannon4@juno.com Harrison G. Cline, CIC, AIP The Furman Co. Insurance Agency Greenville, SC hcline@furmanco.com

Willard A. Silcox, III, ACSR (Bill) C.T. Lowndes & Company Mt. Pleasant, SC bsilcox@ctlowndes.com James G. Taylor, Jr., CIC (Jay) Kinghorn Insurance Agency of Beaufort Beaufort, SC jtaylor@insurancebeaufort.com

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