Big I Washington, Spring 2016

SPRING 2016

Big I Washington is a publication of the Independent Insurance Agents & Brokers of Washington

What Happens to the Public When Consumers Buy Cheap Auto Policies?

A Producer’s Guide to Environmental Insurance On Farms Are Your Clients Prepared for El Niùo?

Wildfires Ignite Response Across the State to Aid Property Owners

“It really comes across when we talk to our policyholders and our agents, that we care.”

Ernie Mamallo Claims Representative

We value the

independent agent.

Interested? Let’s talk.

Grange Insurance Association only partners with Independent Agents. Why? Because these agents are uniquely qualified to offer trusted advice and superior customer service. Independent Agents also know the value of personal relationships. And so do we, which allows us to provide the tools and support to help you succeed. Because better coverage means more satisfied customers. Call us today.

California • Colorado • idaho • oregon • Washington • Wyoming

For information, contact us at (800) 247-2643 Visit us online at grange.com

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Today’s tough insurance environment challenges us to continually enhance and expand our competitive edge. By leveraging our knowledge base and strong relationships in the industry, we deliver stable, competitively priced programs and products.

We understand you have a choice when looking for markets. As a national wholesale broker and managing general agent, we’re focused on providing you and your clients experience, creative solutions and flexibility—to ensure your advantage in the marketplace today and tomorrow.

In a world of choices, we want you to choose us.

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SPRING 2016

Official publication of Independent Insurance Agents & Brokers of Washington 11911 NE 1st St., Suite B103, Bellevue, WA 98005 Ph. (425) 649-0102 Fax: (425) 649-8573 Web: www.wainsurance.org

Advertiser Index

Officers of IIABW President: Kim Krogh, ARM, Hub International Northwest, Spokane President-elect: Lori Reed, Mitchell Reed & Schmitten Insurance, Inc., Wenatchee Secretary:Rob Tripple, Tripple Tripple & Tripple, Edmonds Treasurer: Dave Merrill, Merrill & Merrill, Seattle IIABA Director: Sue Knobeloch, CIC, CPIW, Association of Risk Managers NW, Tacoma Executive VP: Daniel Holst, IIABW, Bellevue Board of Directors Mike Button, Past President), PayneWest, Richland Craig Field (Chelan/Douglas), Mitchell Reed & Schmitten Insurance, Inc., Cashmere Duane Henson, LUTCF (Skagit/Island), WAFD Insurance Group, Mt. Vernon Mary Lemon (Spokane), Hub International Northwest, Spokane Amberlyn McQuary Buratto, CIC (At Large), Stonebraker McQuary, Spokane Dave Merrill (At Large), Merrill & Merrill Insurance, Seattle Melissa Power, ACSR, CIC (At Large), Homestreet Insurance, Spokane Nick Stay (Pierce) American Underwriters Insurance, Tacoma Dave Street (Grant), Martin-Morris Agency, Wenatchee Rob Tripple (Snohomish), Tripple Tripple & Tripple, Edmonds Carissa Veltri (Benton-Franklin), Conover, Tri Cities Staff Daniel Holst, Executive V.P. - dholst@wainsurance.org Susan Scott, AAI, Sr. V.P. of Education - sscott@wainsurance.org Ashley Kuaea, Director of Member Programs - akuaea@wainsurance.org Kathy Gardner, Administrative Assistant - kgardner@wainsurance.org Bill Stauffacher, Stauffacher Communications, Contract Lobbyist - gocougs@billstauffacher.com

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Anderson & Murison

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B C E Consulting

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Burns & Wilcox

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Grange Insurance Association

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Griffin Underwriting

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Imperial PFS

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Liberty Mutual

32

Mutual of Enumclaw

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Preferred Property/JGS

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Quirk & Co.

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R-T Specialty, Inc.

Big I Washington is the official magazine of the Independent Insurance Agents & Brokers of Washington and is published quarterly. News items from IIABW members are requested. IIABW does not necessarily endorse any of the companies advertising in this publication or the views of its writers.

IIABW reserves the right in its sole discretion to reject advertising that does not meet IIABW qualifications or which may detract from its business, professional or ethical standards.

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Risk Placement Services

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Ron Rothert Insurance Services

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Vertafore 17 Western National Insurance Group

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

Anchor Bay Insurance Managers

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WSRB 27

The publisher cannot assume responsibility for claims made by advertisers, content provided by the editor, or for the opinions expressed by contributing authors.

Worldwide Facilities, Inc.

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About the Cover: Franklin Falls near Snoqualmie Pass taken by Daniel Holst

Table of Contents 6

A Message from Kim Krogh, IIABW President

20 Young Agents Corner

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2015/16 IIABW Board of Directors

23 Young Agents 2016 Spring Networking Event

10 Commissioner Kreidler: State’s Wildfire Response

25 2016 IIABW Upcoming Events

12 What Happens to the Public When Consumers Buy Cheap Auto Policies?

26 Are Your Clients Prepared for El Niño?

14 A Producer’s Guide to Environmental Insurance On Farms

28 InsurPac 2015 Contributors

16 All Industry Day at the Capitol

30 Big I Pac: An Industry Leader

18 New Rebating Rule 4

P&C Underwriting Assistant Gena Glasser

we have something

need!

Griffin Underwriting Services enables retail insurance agents and brokers to compete and win on hard-to-place risks. As a Northwest family-owned MGA since 1928, we are available when and where you need us: in person, over the phone, or online. Griffin continues to adapt and expand our product offerings based on your needs so that we can always provide you with a solution. Our exceptional products and service, competitive prices, and rewarding commission levels means that we have something you need.

P: 866.562.8095 I F: 425.453.8696 submissions@gogus.com Serving over 2,200 agents throughout Washington and Oregon, and a proud supporter of IIABW.

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IIABW President

KIM KROGH

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anuary is behind us and 2016 is off and running; sales teams have their new business goals and retention goals have been set and shared with all your team members. Retention goals are a collaborative effort, with the inclusion of your sales and service teams at the heart of these goals. Which got me thinking, how one could exceed these goals, is your agency or service team reactive or proactive? I correlate this to an experience I just had at a local chain restaurant.

Within the same week I went to two separate locations of the same chain restaurant here in Spokane.

The experiences at the restaurants were very different. We had good service with both but one was great; the experiences broke down to reactive versus proactive service.

Is your service/sales team reactive? Your team takes clients calls and efficiently processes requests, like our waitress who took our order. Our meal was delivered correctly and efficiently, but we had to ask for drink refills and she offered no upsells or enhancements to our meal requests. When we had finished our meal she did not offer dessert or an after dinner drink or coffee. We had a nice time and the meal was enjoyable but she did not bring any additional enhancement or service to the evening out.

The alternative experience was proactive. This waitress was just as busy with her customers, but didn’t leave her service area empty handed, always ensuring customers had full drinks and didn’t leave dirty dishes on the table. She would bring refills on drinks before they were requested; she offered additional enhancements to the meals, or pointed to options in special or alternative menus. Of course she offered desserts and after dinner drink/coffee options. When we did decline dessert she offered dessert to go which would travel well. This waitress was a customer service star and made our evening so enjoyable. Paying more for our experience did not cause any of us to think twice.

How is your agency going to perform? Are you going to just meet your goals or are you going to exceed them by working with your carrier marketing representatives who can teach your team about available enhancements or coverage options that could/should be presented to your clients? What is your clients’ experience with your agency? Is your service team the proficient waitress who does a good job or the all-star looking for ways to enhance the customer experience beyond average?

Reactive or proactive service both can be acceptable, but one is definitely an all-star experience and can lead to an increase in your retention numbers and commission growth.

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WN-2013FallAd-(IIABWA-(WA)).pdf 1 10/25/2013 8:17:24 AM

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With friendly underwriters who listen, and a full complement of products to serve your small-to-mid-size commercial insurance needs (including enhanced BOP, surety, and packaged coverages), Western National is your one-stop shop for getting business done. The proof is in the partnership.

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2015/16 IIABW Board of Directors

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PRESIDENT Kim Krogh, ARM Hub International Northwest Spokane

NATIONAL DIRECTOR Sue Knobeloch, CIC Association of Risk Managers Tacoma (253) 301-3988

PRESIDENT-ELECT Lori Reed Mitchell Reed & Schmitten Wenatchee

AT LARGE Amberlyn Burrato, CIC Stonebraker McQuary Agy Spokane (509) 755-4500

SECRETARY & SNOHOMISH CO. Rob Tripple Tripple, Tripple & Tripple Edmonds

CHELAN DOUGLAS CO. Craig Field Mitchell, Reed & Associates Wenatchee (509) 782-2751

TREASURER Dave Merrill Merrill & Merrill Insurance Seattle (206) 906-9590

SKAGIT-ISLAND CO. Duane Henson, LUTCF WAFD Insurance Group Mount Vernon (360) 424-4559

IMMEDIATE PAST PRESIDENT Mike Button, AIP Payne West Insurance Richland (509) 946-6161

SPOKANE CO. Mary Lemon Hub International Northwest Spokane (509) 747-3121

AT LARGE Melissa Power, ACSR,CIC Homestreet Insurance Spokane (509) 323-2392

PIERCE CO. Nick Stay American Underwriters Ins Agency, Tacoma (253) 473-1415

GRANT CO. Dave Street Martin-Morris Agency Wenatchee

BENTON-FRANKLIN CO. Carissa Veltri Conover Insurance Pasco

Tough, high-hazard property, casualty, transportation and professional and management liability risks require detailed expertise and specific industry experience. At RT Specialty, our brokers draw on the most comprehensive resources worldwide to provide better, faster, smarter insurance solutions. We do whatever it takes to find the solution that meets your clients’ complex coverage needs. When it comes to tough risks, experience the difference a tough broker can make. Tough risks demand tough brokers.

For more information, contact: Ed Bukovinsky | 206.708.2074 ed.bukovinsky@rtspecialty.com 1200 Fifth Avenue, Suite 1910 | Seattle, WA 98101 www.rtspecialty.com

AT LARGE Dan Wareham Blasingame Insurance Spokane R-T Specialty, LLC (RT) is a subsidiary of Ryan Specialty Group, LLC, specializing in wholesale brokerage, MGA/MGU underwriting facilities and other services to agents, brokers and carriers. In California: R-T Specialty Insurance Services, LLC License #0G97516 Š 2013 Ryan Specialty Group, LLC

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WASHINGTON STATE INSURANCE COMMISSIONER

Mike Kreidler

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Wildfires Ignite Response Across State To Aid Property Owners

he year 2015 marked Washington’s worst wildfire season on record as 121 fires blazed across the state in August and September. The responses effort included 29 state fire mobilizations and 12 federal Fire Management Assistance Grant (FMAG) fires.

Battling the fires cost the state nearly $180 million. In total, more than 1 million acres of our state burned. Tragically, three firefighters lost their lives.

The 2015 fires were exacerbated by a drought that triggered the declaration of a statewide emergency in May. Lightning strikes in the summer sparked more than 1,500 of the blazes.

Gov. Jay Inslee requested federal aid for the fires that struck from Aug. 9 – Sept. 10 for eight fires that caused: • Total loss of 146 homes; 92 were uninsured • Damage to 463 homes; 303 were uninsured • Loss of $10.5 million in agricultural revenue, including up to 5,200 head of cattle lost in Okanogan County • State and local losses of $42.5 million • 95 percent of DNR grazing land was burned out • 80 percent of U.S. Forest Service grazing land was burned out Federal disaster assistance is available through Federal Emergency Management Agency (FEMA) Public Assistance grants for state, local, and tribal governments, as well as some types of nonprofits in Chelan, Ferry, Klickitat, Lincoln, Okanogan, Pend Oreille, Stevens, Whatcom and Yakima counties and the Confederated Tribes of the Colville Reservation. The federal government did not approve FEMA assistance for individuals.

U.S. Small Businesses Administration (SBA) disaster assistance was also made available in Chelan, Ferry, Lincoln, Okanogan, Pend Oreille, Stevens, Whatcom, Yakima counties and the Confederated Tribes of the Colville Reservation. SBA makes low-interest loans of up to $2 million to repair or replace damaged or destroyed commercial real estate, machinery and equipment, inventory, and other business assets. SBA can also lend additional funds to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.

The SBA can also loan up to $200,000 to qualifying homeowners to repair or replace damaged or destroyed homes.

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Depending on the type of loan, interest rates vary from 1.875 percent to 6 percent with terms up to 30 years.

The Office of the Insurance Commissioner contributed to the statewide wildfire response in several ways: • We partnered with the Governor’s Office and other state agencies to deliver messages via our website, blog and social media about ways homeowners can protect their property against wildfires, information about additional living expenses, how to submit claims and the National Flood Insurance Program for property owners whose property is more susceptible to flooding after a large burn.

• We teamed up with the state Department of Labor and Industries to share information with consumers, insurance agents and brokers about contractor fraud and other predatory practices.

• We responded to a request from a county official to clarify what information insurance companies can require from consumers to verify the need for additional living expenses. An affected county received public disclosure requests for evacuation orders to document insurance claims. After we shared the information on our blog and social media, FEMA retweeted the post to its more than 10,000 followers.

• We provided staff to the state Emergency Operations Center at Camp Murray near Tacoma while it was activated.

• Our Consumer Advocacy team on July 1 requested insurance companies provide weekly status reports of the number of claims and losses due to the wildfires. This reporting continued through September.

• Our consumer hotline answered calls from 43 consumers, opened nine informational cases and six complaints against insurance companies.

The work my office did was featured in a video shown at the National Association of Insurance Commissioners’ fall meeting, along with commissioners from California, Texas and South Carolina.

Keep up with our work and outreach efforts on our website (http://insurance.wa.gov/) and on our social media platforms.

BURNS &

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SPEED IS OUR MIDDLE NAME.

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San Francisco, California | 415.421.4244 toll free 800.759.4855 | fax 415.421.0620 sanfrancisco.burnsandwilcox.com Commercial | Professional | Personal | Brokerage Binding | Risk Management Services 11

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WHAT HAPPENS TO THE PUBLIC WHEN CONSUMERS BUY CHEAP AUTO POLICIES

By Bill Wilson

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n the morning of April 12 at 5:14 a.m., the driver of a car crashed into a brick pillar and privacy fence owned by a homeowners association. Estimated cost to repair was $2,500.

The HOA’s insurance covers the damage but has a $1,000 deductible.

The auto insurer denied the claim because the named insured was not driving. The vehicle had been loaned to a friend who was driving at the time of the accident. This was not an ISO PAP. The ISO PAP includes within the definition of “insured” any permissive driver. However, the policy in question is from one of those low-cost auto insurers that you see advertising heavily on local TV. Indeed, their policy only covers individuals named on the policy.

In some states, statutory or case law requires a policy to extend at least the state’s minimum financial responsibility limits to permissive operators, but not in this case. There was no coverage.

We have been writing about this type of situation for some time. In our “Price Check” article we give examples of exclusions not found in the ISO PAP or other mainstream auto policies. In fact, we’ve devoted an entire section of the VU to the whole commoditization of insurance issue.

One might say, well if you buy one of those discount auto insurance policies featured in the heavy advertising the permeates the media, you get what you pay for. However, this claim illustrates that the issue goes far beyond the buyer of 12

the insurance.

Auto liability insurance exists to protect the general public from negligent drivers. When, in order to compete solely on price, insurers strip down coverages to a bare minimum, the general public is placed in position of much greater risk of being injured or damaged by inadequately insured drivers.

What if the driver that damaged the HOA’s property had instead ran off the road and killed someone or several people? For a policy like this, unless you can make a case for vicarious liability of a named insured (e.g., negligent entrustment of a vehicle to someone with a poor driving record), the injured parties likely have little or no recourse.

There was a time when ISO policies represented industry standards that were more often than not minimum or middle of the road guidelines that insurers quite often exceeded in coverage and options. Sadly, today many ISO forms represent the Cadillacs of coverage, whether we’re talking about personal auto or CGL policies.

Like statutory minimum limits standards, should states consider minimum coverage standards to protect the general public? Isn’t this the primary responsibility of regulators? How are they serving consumers if they approve policy forms that provide very restrictive coverage? As outlined in a previous VU article, the continuing race to the lowest priced auto policy is only going to hurt the innocent.

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A Producer’s Guide To Environmental Insurance On

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or the first time Farmers need environmental impairment liability insurance to fill the insurance coverage gaps created by pollution exclusions and the new application of decades old federal environmental protection laws now applying to farming practices. The environmental risk and insurance needs of the farming community are changing fast. There were more changes in the environmental risk management picture of farms in the past year than in the past 10. Three of the most significant recent developments were: 1. Yakima Valley Washington. In 2013 environmental groups for the first time filed lawsuits under the federal Resource Conservation and Recovery Act (RCRA) a federal law which governs the disposal of solid and hazardous waste, against dairy farms in Yakima Valley Washington. They filed suit against three local industrial dairy farms for ground water contamination of drinking water wells which supplied drinking water to 24,000 residents in the Yakima Valley area. This was the first time in U.S. history where RCRA was applied to farm animals along with another first in which a federal court has ruled that improperly managed manure is a solid waste, rather than a beneficial farm product. The suit was decided by settlement in January of 2015, in which the Dairy farms implicated would pay for replacement, cleanup and monitoring costs of their manure storage structures and compost areas.

The implicated farms also where required by settlement to fund a residential bottled water system for safe drinking water for at least two years or until nitrate contamination was deemed no longer to be of significant volume. In this case the Nitrate and Manure contamination that arose out of everyday dairy farming activates were found to be harmful to human health, the farm owner’s business liability insurance policies sold to those farms included pollution exclusions and the policies’ pollution exclusions barred coverage for damage resulting from those substances.

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FARMS

2. The Wisconsin Supreme court determined that damage claims resulting from spreading manure and septic tank waste on fields were excluded by the Pollution Exclusion in the General Liability insurance policies that most farmers purchase.

3. The City of Des Moines Iowa is suing the agricultural drainage districts (which are owned by farmers) in three counties. The City is seeking to recover the costs of a new water treatment facility to remove nitrates from the water in the two rivers that the city depends on for its water supply. It will cost the city $100,000,000 to build a water treatment plant to deal with the agricultural based contamination of the water supply. If Iowa follows the Wisconsin Supreme Court determination that the General Liability insurance policies sold to farmers do not cover contamination losses due to the operation of the Pollution Exclusion, in the absence of insurance all of the stake holders in the water districts will likely be uninsured for any part of the $100,000,000.

Longer term trends in the environmental risk management picture of farms include: 1. Advances in science increase the potential environmental liability on farms. Scientific equipment for genetic sequencing enable scientists and plaintiffs lawyers to identify the parties responsible for water contamination from fecal bacteria down to particular herd of cattle, thus creating potential liability for a single farm which was in the past considered nonpoint source pollution that no individual party was responsible for.

2. Farmers can expect more legal actions being pursued by the stakeholder’s that their farming operations effect. As the family farm starts looking more and more like an industrial sized “polluter”, it is becoming less and less socially acceptable to contaminate a natural resource like an aquifer, lake or stream without

adverse consequences. The “but this is just a consequence of normal farming operations” excuse for impairing the environment is going to be less and less acceptable with the passage of time. Right to Farm laws which have protected farmers in the past from nuisance lawsuits for creating strong offensive odors near residences for example are not “right to pollute” statutes.

These factors combined with changes in the liability insurance coverage sold to farmers, all work together to create a need for environmental risk management on the family farms and the purchase of specially modified environmental insurance.

Environmental Risks Are Impossible To Totally Avoid in Farming It is not possible for farms to avoid all environmental loss exposures associated with farming. For example due to historical farming operations, nitrates are found in virtually all of the drinking water wells located in farming communities in Washington. At low levels, nitrate contaminants in ground water are not thought to cause harm to mammals. However a spike in the level of nitrates can cause bodily injury, especially to infants and as one of the WI Supreme Court cases illustrated, the alleged death of a neighbors cattle. Specially modified environmental impairment liability insurance policies for farms are needed to address the fact that nitrate contamination of groundwater is a known preexisting pollution condition in most agricultural settings. Below are some common unavoidable and unaddressed environmental loss exposures now of concern for your farming clients.

insurance policies available today. There are no insurance industry standards for environmental insurance policy designs or in the actual insurance coverage the insurance policies provide.

Therefore it is necessary to properly match the environmental policy to the needs and exposures of a particular insurance buyer.

The most common environmental insurance policies used in farming risks are: • Environmental Impairment Liability – primarily insures designated locations, (a farm or leased land) the policies are sold under a broad range of brand names like Pollution Legal Liability, Site Pollution Liability, Pollution and Remediation Legal Liability and other names.

• Contractor Environmental Liability – primarily insures the described operations of the named insured, (a custom farming operation) a common brand name for this insurance is Contractors Pollution Legal liability (CPL).

Obtaining Environmental Insurance Coverage ARMR has created a simplified application process for farmers and their vendors. The specialized insurance application for farming risks is only 2 pages long. The two critical rating factors for EIL policies on farms are Animals Unit equivalents and acreage. EIL applications should contain a complete description of the land and operations to be insured under the policy. Those locations including participation in manure digester projects can be insured under the covered locations in an EIL policy.

For EIL policies we are requiring that the farmer have a State Nutrient management plan in place. It is preferred if that plan is prepared by an independent Certified Crop Advisor.

Insurance agents are encouraged to consult with a farm specialist at ARMR before completing any applications for environmental insurance.

Please contact American Risk Management Resources Network LLC at 608 836 9590 to discuss your customer’s environmental insurance needs.

For farming risks we will need to know: 1. Total acres owned or leased 2. Animal Units

Two Basic Types of Environmental Insurance for Farming Environmental insurance policies are designed to fill the coverage gaps in property and liability insurance policies created by pollution exclusions. Continuously available for purchase since 1986, there are over one hundred different environmental

3. For custom applicators or other contractors, the total annual revenue of the firm For More information visit www.armr.net/farms or call Harrison Scheider @ 608-836-9521

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All Industry Day at the Capitol

IIABW

IIABW collaborated with the Surplus Line Association, PIA, Northwest Insurance Council, Safeco and Pemco on one of the best attended legislative conferences in years. It was held on January 21 in Olympia and analyzed the legislative and regulatory issues the insurance industry will be facing in the coming years. Attendees learned about regulatory priorities at the Office of the Insurance Commissioner’s office, laws being considered in the state legislature and in Congress, and how to comply with the new rebating rules and law.

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continued on page 18

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800.444.4813 | vertafore.com

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NEW REBATING RULE

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he Office of the Insurance Commissioner recently passed a rule to clarify how they interpret the rebating laws (RCW 48.30.140 and RCW 48.30.150) in regards to charitable contributions and referral gifts.

WAC 284-17-805 states that agents • can make donations to charities on behalf of customers as long as the customer has no influence over which charity receives the donation, the donation is not made in the insured’s name and the insured does not receive any tax benefit.

• can sponsor or contribute to a charity as long as it is not conditioned on the entity applying for or obtaining insurance, making a referral or endorsing the agency.

WAC 284-17-825 states that • referral gifts cannot be dependent upon the referral resulting in a sale.

• the purchase of insurance cannot impact the value of the referral gift.

• the person giving the referral cannot make representations about the policy.

• referral gifts are limited to no more than $100 in value in any 12 month period.

As a reminder, the new law that went into effect in July 2015 increased from $25 to $100 per person per year the rebating/inducement expenditure exemption; created a new $100 per person per year limit for referral thank you gifts; exempted sponsorships and contributions to nonprofit organizations from these same expenditure limitations.

This is an issue that agency owners need to focus attention on because agencies have been fined for violating these laws. Most recently, the OIC issued a $30,000 fine to a Seattle benefits brokerage for purchasing sporting event tickets, holiday wreaths, dinners and other items for consumers that exceeded the rebating limit. Be sure to keep track of the amount spent on clients.

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teamwork Imperial PFS, the leader in premium financing, continues to focus on the success of our agency partners.

The relationships we have developed with our agency partners are a critical element in the way we do business. These relationships have enabled Imperial PFS to continually develop and improve programs and services. Customer focus is why we operate a nationwide network of local offices, each shaped by the region it serves.

We look forward to your continued partnership with Imperial PFS and providing you the most comprehensive benefits in the industry.

ipfs.com marketing@ipfs.com Bothell: 800.888.2750 Spokane: 800.234.7373

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Corner

By Reid Ekberg, Chair

T

he IIABW’s Young Agents is an informal group of insurance professionals striving for professional growth through educational achievement, leadership development, legislative involvement, and insurance career perpetuation. While developed for younger insurance professionals and those new to the industry, we encourage all ages to participate in our networking events!!! Be sure to visit and ‘like’ our Facebook page at https://www.facebook.com/IIABW.YoungAgents.

You are encouraged to attend these upcoming events: •

Spring Event: The Young Agents will be hosting an evening of fun and networking at Rhein Haus for a reception and bocce ball on March 24. Rhein Haus, which is in Seattle’s Capitol Hill neighborhood, has been ranked as a top bar and restaurant by Urban Spoon, Zagat, Sunset Magazine, Open Table, Seattle Met and others. (see page 23)

•

Annual Conference: The Young Agents Annual Conference will be held on June 9-10 at the Clearwater Casino Resort near Poulsbo.

•

2015 Holiday Party: We’d like to thank the 90+ insurance professionals who attended the Young Agents Holiday Party in November. The group donated 1600 of pounds of food (which provided over 1,200 meals to people in need) and a few hundred dollars for Northwest Harvest. They also donated over $750 to InsurPac, the Big I’s federal political action committee. photos continued on page 22

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A&M Assoc Ad WA PRINT.pdf

1

10/20/15

12:36 PM

IIABW’S 2016 CONFERENCES

IIABW/PIA Joint Conference

September 14-16, 2016 New Davenport Grand Hotel, Spokane • • • •

Large Tradeshow Scramble golf tournament Texas Holdem poker tournament CE seminars

B C E Consulting, LLC Our mission is to help you grow your business and improve your bottom line.

Our team of professional and experienced consultants has assisted insurance companies and agencies in achieving their goals and objectives for many years. We focus on the following areas of business development.

• • • • •

Young Agents Conference

Strategic, succession and contingency planning Business growth and development Market feasibility studies Education, sales training and professional development Operational efficiency and process improvement

June 9-10, 2016 Clearwater Casino Resort, Poulsbo

For further information or details please see our website: www.bceconsulting.co or contact:

• Attend CE seminars • Networking at 2 evening events • Golf at Whitehorse Golf Club

Jeff Bronaugh, CPCU, CLU, ChFC, CIC jeff@bceconsulting.co 404 3rd Ave S, Edmonds, WA 98020 (520) 343-4394

(all invited – those new to industry and ‘young at heart’)

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Are Your Clients Prepared for

El Niño?

Lindsay Davis, Account Manager National Flood Insurance Program, Team FloodSmart

C

limate experts have warned residents along the West a flood insurance policy, make sure they understand that if they Coast to prepare for what could be the strongest El experience a flood this season, they could be left paying for the Niño on record. Forecasts of a strong El Niño event damage out of pocket since flood damage is typically excluded may suggest a warmer, drier winter for Washington; from homeowners, renters, and business policies. If they are however, the chance of less precipitation does not diminish the located in a moderate- to low-risk flood area, talk to them about severity of storms that may occur. So what does that mean for purchasing a Preferred Risk Policy—a lower-cost option that you and your clients? Since there is typically a 30-day waiting includes both building and contents coverage. period before flood insurance takes effect, now is the time to Due to increased media attention surrounding El Niño, you talk to your clients about their increased flood risk and the must prepare to answer any questions that your clients may importance of having flood insurance. ask about flood insurance. FloodSmart—the marketing and Heavy rainfall will pose the greatest threat to residents this education campaign of the National Flood Insurance Program winter. You may recall the widespread flooding that occurred (NFIP)—offers many resources on Agents.FloodSmart.gov to during the 2009 winter season, when a strong, warm, and wet help you talk to your clients about flood insurance. Visit the new Pacific weather system brought significant rainfall to western Outreach Materials page, where you can find and print materials Washington and caused more than $72 million in flood damage. to share with your clients. Also visit the Preparing for a Flood Heavy rainfall can trigger flooding along rising rivers and page to see what you can do now to ensure that your agency is creeks or from clogged prepared to handle an influx storm drains. Remind of claims following a flood your clients that it only event.

BIG I FLOOD PROGRAM takes one storm to cause Be sure to register devastating flooding. for the FloodSmart Agent Big I Flood Program partner Selective provides direct access Residents need to be Referral Program at Agents. to in-house, agency-assigned, underwriters to help best manage aware of the potential for FloodSmart.gov, where you your flood business. Combined, Selective’s veteran underwriting flooding and prepare now can grow your business teams have more than 100 years of experience and are plugged to ensure they are covered and receive free qualified into ongoing NFIP legislative changes. in the event of a flood. leads. All that’s required is IIABW members can write their own residential and For clients with an 2 hours of flood insurance commercial flood insurance with Selective Insurance Co. in our existing flood insurance training valid within the online market access program, Big I Markets. policy, be sure to review past 2 years. Need updated • Receive at least 18% commission on new business and their coverage with them training? Take advantage of 15% for renewal to identify any potential the free online flood courses • Online tools such as free rating, online processing and coverage gaps, such as offered by the NFIP. flood-zone determinations contents coverage. If their Don’t let out of sight • No volume requirements policies are up for renewal, mean out of mind for your • No access fees to participate stress the importance of clients this winter. Be sure • Assistance for book rollovers of all sizes not letting their coverage they have coverage against • Excess flood available over any primary flood coverage lapse. For clients and flood damage to protect For more information, go to www.iiaba.net/Flood. prospects currently without what matters.

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MEASURE DISTANCE, AREA AND ELEVATION ASSESS REAL TIME, ACCURATE DATA CUSTOMIZE EARTHQUAKE AND FLOOD OVERLAYS ACCESS BRUSH AND FOREST FIRE DATA

n Data!

New Orego

DETERMINE DISTANCE TO FIRE STATIONS FIND OUT IF THERE IS A FIRE HYDRANT WITHIN 1,OOO FT.

Visit www.WSRB.com/PropertyEDGE to learn more!

We Haven’t Raised Our Rates in 10 Years...

Restaurant, Bar & Tavern Program Can your current restaurant, bar & tavern market make that claim?

We’ve had a restaurant, bar and tavern program for ten years and right now – today – it is Since 2000, have written program restaurants, barsaccounts, & tavernswe in Alaska, Oregon, morewe competitive thananit exclusive has ever been.

Onon “target” (preferred) have been Washington and, more recently, in Colorado.

We’ve written over 10,000 policies and over $50 consistently able to beat expiring pricing by 20% and more and our bind-to-quote ratio million is morein premiumthan in this class of business.

70%.

We’re stable. We’ve been with the same carrier for over 10 years and our loss and loss expense ratio is the–six priorfor to submitting this advertisement, we have only lost two renewals and right at In 40% so weeks we’re here the long haul. our written premium versus the same period in 2009 has more than doubled. Our application We have great rates. Because we have been so profitable, we haven’t been forced to take the big rate flow is up more than five-fold. Most accounts are quoted within 4 to 48 hours. increases that have plagued our competition.

We haveOur a strong form.

Wenon-admitted are usually silent on policy Assaultform & Battery on the we offer several carrierpolicy is rated A- IX, and our is strong.

ThisCGL is a and package policy other coverage advantages over our competition. that includes Property, General Liability and Liquor Liability. We have a Property broadening dohave not exclude Medical Payments.

Battery is of usually included We are endorsement. growing rapidly.WeWe a very high “hit ratio” and, inAssault the first&six months the year, our written without limitation or sublimit on target accounts.

We offer Food Borne Illness coverage with premium is up almost 40% over last year. We do rushes. sublimit. Our commission level is generally much higher than our competition’s.

Regrettably, we are unable to consider nightclubs, adult entertainment or accounts with liquor serving issues. For No details substandard business program please. and target account eligibility criteria, and an about or thedistressed program, including application, please visit: http://www.surpluslines.com/products/restaurant-bar-tavern.asp

We compete favorably with all the major programs!

Anchor Bay Insurance Managers, Anchor Bay Insurance Managers, Inc.Inc. Post Box Office // Silverdale, 98383 Post Office # Box 2510# 2510 // Silverdale, WAWA 98383 Contact Bill at (360) 649-8969 Phone: (800) 929-9560 // Tanner Fax: (800) 929-9794 www.SurplusLines.com Web: Web: www.SurplusLines.com Email: Info@ SurplusLines.com Email: Info@ SurplusLines.com

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Thank You For Your Investment in InsurPac in 2015 IIABW would like to thank our members who collectively contributed $13,000 in individual contributions to our national political action committee, InsurPac. Nationally, over $1 million was raised in 2015.

We would like to say a special thank you to Sue Knobeloch of ARM Northwest who serves on our national association’s Board of Directors and is our state’s InsurPac Chair. Also, thanks to the agencies who raised the most from their employees and owners: • HUB International NW • Propel • Stonebraker McQuary Agency • ARM Northwest • The Advantage Group

InsurPac is one of the reasons why the Big I is routinely rated in Fortune magazine’s top-25 list of most successful lobbying groups in Washington D.C. By pooling individual contributions, InsurPac helps elect candidates and re-elect members of the U.S. Congress who share the Big I’s business philosophy.

While contributions do not buy solutions to legislative debates, they do allow the Big I significant ‘face time’ with very busy elected officials to give us an opportunity to educated them.

Thank you to the over 60 agents and brokers who have contributed to InsurPac in 2015. >$751 Kurt Carlson , Propel Insurance Susan Knobeloch , ARM Northwest, Inc Don McQuary, Stonebraker McQuary Agency $500-$750 John Carmody, The Advantage Group, LLC Alan Cottle, Hub International NW/Argus Insurance, Inc. Robb Dale, The Unity Group - HUB NW Duane Henson, WAFD Insurance Group Inc Kim Impecoven, Spokane Insurance Agency, Inc. dba Blasingame Insu Claudia McClain, McClain Insurance Services, Inc. David Street, Martin-Morris Agency, Inc. Tom Taylor Jr, Taylor-Thomason Insurance Brokers Robert Tripple, Tripple Tripple & Tripple LLC Eric Zimmerman, Propel Insurance $250-$499 Richard Elliott, Elliott Insurance Service, Inc. Bill Gellor, Gellor Insurance, Inc. David Hargreaves, Hub International NW/Argus Insurance, Inc. Daniel Holst, Ind Ins Agts & Brkrs of Washington Kimberly Krogh, Fidelity Associates Insurance & Financial Services John McDonald, McDonald McGarry Insurance Brokers Darren McEuin, Conover Insurance Services LLC. Dave Merrill, Merrill & Merrill Patrick Otter, Otter Insurance Agency Lori Reed, Mitchell Reed & Schmitten Insurance, Inc Nick Stay, American Underwriters Ins Agencies Inc Robert Trask Jr , Robert M. Trask Agency, Inc. $100-$249 Aran Buchan, Lovsted-Worthington LLC Michael Button, Payne West Insurance Fred Loffer, Wycoff Insurance Agency, Inc. Melissa Power, Homestreet Insurance

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<$100 Mike Arnold, Robinson Maurer Welts, Inc. Chris Ballard, The Ballard Agency, Inc. Chris Bolin, Griffin Underwriting Services Jeff Bronaugh, BCE Consulting LLC Rob Bush, Valley Insurance Agency Paul DeVenzio, Imperial PFS Annie Dimmitt, Superior Underwriters Connie Divelbiss, Mutual Insurance Services Rachael Douglas, SERVPRO of Central Seattle Reid Ekberg, Pilkey-Hopping & Ekberg, Inc. Brian Fassburg, Pacific International Underwriters, Inc. Laura Fitzgerald, CNA Don Gill-More, Pacific Int’l Underwriters Lynn Gregorich, Imperial PFS Aimee Hern, Conover Insurance, Inc. Luke Hutchinson, Hull & Company, Inc. Kenneth Martin, First Rate Insurance Plus, Inc. Daniel Merrill, Merrill & Merrill Natalie Merrill, Merrill & Merrill Brian Nickel, Superior Underwriters Candice Pagano, The Johnson Marshall Agency Leanne Pearson, McDonald Insurance Group, Inc. Ryan Porter, Porter Whidbey Insurance, Inc. Jeff Puffinburger, Imperial Premium Financing Specialists (IPFS) Barry Sarles, Ark Insurance Agency Inc. Kristina Schrader, Conover Insurance, Inc. Katie Sharpe, Conover Insurance, Inc. Bob Sinon, Superior Underwriters Kristen Skinner, Alaska National Insurance Co. Chrissy Spangler, Lovsted-Worthington Tyler Stoddard, Griffin Underwriting Services Hannah Strok, Griffin Underwriting Services Dale Summers, Safelite Auto Carissa Veltri, Conover Insurance Services LLC. Dan Winckoski, Distinguished Specialty Traci Winn, Porter-Whidbey Ins. Adam Wise, Hull & Company Ryan Woodward, Woodward Scott Agency

WHEN YOU KNOW your agency is protected by the best E&O PROGRAM in the nation, you can focus on

hunting for business.

Swiss Re Corporate Solutions policyholders: Don’t miss out on the invaluable risk management resources available exclusively to you. Log in to www.iiaba.net/EOHappens to access claims statistics, prevention tools, insightful articles and more.

the Big “I” Professional Liability Program Prevent.

Our exclusive risk management resources help your agency avoid making common preventable mistakes.

Protect.

Our superior coverage through Swiss Re Corporate Solutions and our experienced claims teams are in your corner in the event of a claim.

Prosper.

When you know you have the best agency E&O Protection, you can focus on growing your most important asset–your business.

The Big “I” and Swiss Re Corporate Solutions are committed to providing IIABA members with leading edge agency E&O products and services. The IIABA and its federation of 51 state associations endorse the comprehensive professional liability program offered by Swiss Re Corporate Solutions.

Visit www.iiaba.net/EOContact to connect with your state association today.

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas.

Westport is a member of Swiss Re Corporate Solutions and is licensed in all 50 states and the District of Columbia. © 2012 Big “I” Advantage, Inc. and Swiss Re .

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Big I Pac: An Industry Leader IIABW would like to thank its members for their support of the BIG I PAC, our state political action committee. 116 agencies have contributed over $28,000 to the PAC in 2015. Support from our membership has helped the Big I be effective advancing agent issues in Olympia, including low B & O tax rates and no capital gains taxes, reasonable anti rebating/inducement laws, agent friendly health care exchange, fair regulations, etc.

Simply put, a PAC contribution is the equivalent of purchasing political insurance. Your contributions are used to support elected officials and candidates who advance IIABW core principles on agent-specific, insurance industry and general business issues. We pool your hard-earned dollars to send a powerful message: IIABW agents care about the political

make-up of Olympia, we care about our industry’s future, and we care about our customers. We back up our talk by actively participating in the political process with a proactive lobbying presence, a major PAC presence and broad-based grassroots relationships in every legislative district.

IIABW is a strong voice for independent insurance agents in Olympia. We’re trusted and respected in both Republican and Democratic camps because legislators know you at home, hear from you when they’re in Olympia, and count on our support when it really matters.

Personal AND corporate contributions can be made to the Big I Pac and sent to: Big I Pac, 11911 NE 1st St., Suite B103, Bellevue, WA 98105.

Thank you to the following agencies who have contributed to BIG I PAC. > $1000 Stonebraker McQuary Agcy Group $600 - $999 AAA Washington Advantage Group Bell-Anderson Insurance Conover Insurance, Inc. Degginger McIntosh & Assoc., Inc HUB International Northwest, LLC Kibble & Prentice McDonald Zaring Ins. Parker,Smith & Feek, Inc. PLC Insurance, LLC Propel Insurance $400 - $599 John F. Throne & Co. Martin-Morris Agency McClain Insurance Services McDonald Ins. Group, Inc. Mosaic Insurance Alliance, LLC WAFD Insurance Group Inc $200 - $399 American Underwriters Ins. Agencies, Inc. Blasingame Insurance Callis & Associates Central WA Ins. Agency, Inc. Farmin-Rothrock-Parrott, Inc. Gellor Insurance, Inc. InsureQ JMS, LLC Mitchell, Reed & Schmitten Ins Inc Monteith Insurance Inc MTC Insurance Agency Group Mumma Associates, Inc Pickett Agency ProStar Insurance Robert M. Trask Agency, Inc. Shinstrom & Norman, Inc. Snapp & Son Insurance, Inc. 30

Terril, Lewis & Wilke Ins., Inc. Tradewinds Insurance Inc. WCLA Insurance Agency, Inc. Wheat & Associates Insurance Inc. Woodland Ins. Agcy., Inc. Wycoff Insurance $101 - $199 Alliance Insurance ALT Insurance Group LLC American Insurance Associates, LLC Brookey Insurance Services Century Ins Services LLC Christopher Togawa Ins Agency, Inc D.W. Ferguson & Assoc.

Ed Poe Agency Elliott Ins. Svc., Inc. Fairfield-Waverly Ins. Agency, Inc. First Rate Insurance Plus, Inc. Freed Insurance Group Gus Paine Insurance GVI Corp.

Harbor Insurance Services Harvey Insurance Associates Homer Smith Insurance, Inc. HomeStreet Insurance Insurance Svcs Network, Inc. Interstate Insurance Agency Johnson Insurance Agency Lee Insurance Svcs., Inc. Linde Insurance Longview Ins. Inc. McDonald McGarry Insurance Brokers Mechelsen Agency Melbourn Insurance Agency, Inc. Michelman Insurance Group Inc. Miranda Insurance Agency LLC Montgomery Ins. Agency Obenland & Low Agency Inc. Orwaca Agency Ins Svcs, LLC Otter Insurance Petershagen Insurance

Phillips Insurance, Inc. Plaza Ins. Agency Soleyon Insurance Partners, Inc. Sunset Insurance Agency LLC Thornburgh Ins. Agency Valley Ins. Agency Villa Insurance Group, Inc. Virgil McLagan Company Woodward-Scott Agency <$100 Adams Insurance American West Insurance Agency Inc Association of Risk Managers NW Becker Tax Advisory Group Bravo Insurance Company, LLC Cactus Capital Insurance Embree Ins. Agency, Inc. Fortiphi Insurance LLC Frank Insurance Group, LLC Graves Agency, LLC Hartley & Hartley Ins Inc Insurance Solutions of Washington LLC ISG Barker & Associates ISU Insurance Solutions Group Kraft Insurance Agency, Inc. Laurus Insurance Services, LLC Lower Valley Brokers MJC Insurance North Valley Ins. Agcy.

Northern Marine Insurance Premier Group Insurance Rollo VanSlyke Insurance Agency Inc Ron Michael Insurance Rudolf Birkenkopf Strategy Insurance Brokers, LLC Tripple, Tripple & Tripple LLC Vino Svcs NW & Bridge Ins Svcs Wallace Insurance Wenner-Davis & Associates Insurance Wilson Insurance Agency Inc.

A NAME THAT BUILDS RELATIONSHIPS At Risk Placement Services (RPS), we are committed to building relationships one retail partner at a time. Our stewardship begins by providing you access to the finest markets and top producers in the industry and providing customized solutions to meet your needs by designing, negotiating and tailoring individual risks that help you succeed. Itâ&#x20AC;&#x2122;s a partnership you can count on!

To learn more contact Bud Carter 480.860.5572 or email at Bud_Carter@RPSins.com. www.RPSins.com

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You’re passionate about your clients.

We’re passionate about protecting them.

You have a passion for supporting your clients. Liberty Mutual has a passion for protecting them with coverages like commercial auto, workers compensation, and business owner’s policy (BOP). With regional offices, industry understanding, and comprehensive coverages for businesses of all sizes, we have the local knowledge and national resources to help your clients thrive. Talk to your territory manager today about Liberty Mutual Insurance, or go to libertymutualgroup.com/business.

We are proud to support the Independent Insurance Agents & Brokers of Washington. @LibertyB2B

© 2014 Liberty Mutual Insurance. Insurance underwritten

by Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries.