Texas Connection - July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org

Texas Connection Are you breaking the law when you buy or sell an insurance agency?

Where’s Your Privacy Policy?

The editorial content in Texas Connection is valuable information but as always you should do your own due diligence and evaluation.

The content is meant to be for informational purposes only and does NOT warrant an endorsement by the Texas Professional Insurance Agents in any form or fashion

In This Edition ARE YOU BREAKING THE LAW WHEN YOU BUY OR SELL AN INSURANCE AGENCY? ....................................... 1

WHERE’S YOUR PRIVACY POLICY? . 1 CYBER LIABILITY, YOUR AGENCY & YOUR CLIENTS ............................... 6 A COMMODITY VS. A RELATIONSHIP 8 ACQUIRING AND KEEPING GOOD PRODUCERS ................................ 10 AFFORDABLE CARE ACT 2015 ..... 12 CAN YOU ‘CHEAT’ YOUR WAY TO MORE CUSTOMERS? ..................... 14 HOW WOULD YOU ASSESS YOUR AGENCY’S OVERALL E&O CULTURE? ................................................... 18

Texas Connection

Last weekend, as I was updating the content of my “How to Evaluate, Buy & Sell a ‘Mom & Pop’ Insurance Agency” Ethics CE, I stumbled over a potential roadblock in the “Buy / Sell” scenario.

Did you know that our insurance companies have Privacy Policies? Ever read one?

Have you created such a notice for your agency?

The Gramm-Leach-Bliley Act (GLBA) imposes privacy obligations on every insurance agency: Privacy Notice Disclosure Requirement. Every insurance agency must provide all customers with an initial and annual notice that describes the manner in which their nonpublic information is collected, maintained and disseminated.

Opt Out Notification Requirement. Before sharing nonpublic personal information about a consumer with a nonaffiliated third party for a nonexempted purpose, the consumer must be notified of the right to prohibit the sharing of such information for such a purpose (an “opt out”).

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Are you breaking the law when you buy or sell an insurance agency?

Since the prospective buyer was not a party to the original application for insurance, does the owner have the right to sell the personal information without getting permission from each policyholder?

Would that be considered a Data Breach under the current regulations?

Insurance agencies are at risk of having a data breach on multiple fronts — negligence, a rogue employee, stolen equipment, or a network security failure. If the proper insurance protection is not secured before a data breach occurs, the future of the business could be in jeopardy due to extensive recovery and reimbursement costs as well as damage to its reputation.

Core Cyber™ provides organizations the expert assistance and financial relief needed to confront a data breach head on.

Continued on page 2 July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org The program has important protection to satisfy mandates and appropriate risk management, while also delivering the peace of mind that comes with financial protection and on demand breach assistance.

Privacy Policy Continued from page 1 With a host of value-added consultancy services available before, during and after a data breach incident; and financial assistance in the event a covered breach occurs, Core Cyber is the comprehensive solution organizations need to ensure a data breach incident does not challenge their future.

More information https://biz.identityfraud.com/goagents/PIA

“Our relationship with the Texas PIA has been longstanding. We are pleased to have the Texas PIA leverage our click and bind platform that has now also integrated the cyber protection program from IFI. Agents can not only add value to their customers but reduce their E&O exposures as well.

at

Everyone has data and everyone needs cyber protection. Our combined efforts simplify the process and make it workable in the SMB space,” states Michael Mandell, COO of GoAgents.

Data Security and Integrity Requirement. All insurance agencies that collect or maintain a customer’s nonpublic personal information must institute mechanisms for protecting the security and integrity of that information.

Program Highlights: Prevention

Security Mechanisms are designed to protect the nonpublic information from inadvertent disclosures.

• Computer Vulnerability Scans (Internal) • Unlimited Access to Employee Education

Integrity Mechanisms are intended to protect nonpublic personal information that is maintained in an electronic medium from becoming corrupted.

Modules • Risk Assessments, Written Policies/Templates, Incident Response Plan

Have you ever read your Agency – Company Agreement?

• Keystroke Encryption Software Protection

Agents should be careful about agency contracts that include specific provisions requiring agents to adhere to an insurance company’s privacy policy. If the privacy polices of different insurance companies address security and integrity mechanisms differently, agents agreeing through agency contracts to adhere to those differing requirements may find it impossible to comply with all of them.

• Limits of Liability – $50,000 up to $1 Million – Retentions $1,000 ($2,500 for limits at or above $500,000) • Cyber / Breach / Privacy Legal Liability and Defense Coverage

The Gramm-Leach-Bliley Act (GLBA) imposes privacy regulations for all insurance producers unless they qualify for an insurance agent exception.

– Loss/Theft of Personal and/or Business Data – Failure to Disclose/Notify – Regulatory Fines and Penalties

Do you qualify for the exception? Maybe.

But there’s no exception for your responsibility for a data breach regardless of the reason.

– PCI DSS Fines and Related Contractual Obligations ($250,000 sublimit)

That’s why you need Cyber Liability … before and after the sale!

• Web Site / Media Liability for libel, slander and certain related web site risks

As insurance professionals, we all know coverage gaps exist in traditional insurance policies and that these gaps need to be filled. Agents can now more aggressively pursue and succeed in providing valued cyber solutions to their clients based on having our program”, states Tom Widman, president and CEO of Identity Fraud, Inc.

Pricing: $229 per year up to $1699 based on organization size and desired limits.

The new program combines the GoAgents.com unique agency distribution platform together with the cyber risk management and insurance solutions provided by Identity Fraud, Inc. and their A rated insurers.

Texas Connection

Learn More: http://www.goagents.com/data-risk-liability?code=PIA Direct Link to start quoting: https://biz.identityfraud.com/partner/goagents/PIA Learn More: http://www.goagents.com/data-risk-liability?code=PIA Page 2

July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org

But, that day was different. I was in a different mood and so were many of the passengers. And it was all because of our pilot, Gerald Worthington. His mood was contagious. And that is what brings me to the point.

When it Comes to Customer Service, Be a Leader

You may have heard the old expression: Enthusiasm is contagious. Well here’s a new one: Customer service is contagious. Actually it might be better to say that…

Friendly customer service is contagious.

There is no doubt that Gerald put us into a better mood. His mood made accepting the bad news easier.

It wasn’t the airlines fault that there was bad weather.

And, by the way, there are many passengers that seem to think it’s the airlines fault when there is a delay due to weather. But, I digress. It just seemed that the outward friendliness of our pilot made everyone a little happier, more accepting and more tolerant.

And, guess what else? The other captain and all of the flight attendants were in a better mood too, and as a result, they delivered an even higher level of customer service.

Here’s the lesson: A friendly, outgoing, customer focused employee can raise the bar for everyone.

Gerald set a great example for the rest of the employees to follow, and they did. In a sense, Gerald created the plane’s “culture.” Just like any other company might have a customer focused culture, it starts with leadership.

I was boarding a very early morning flight to Dallas.

One of the pilots of the plane, Gerald Higginbotham, was greeting every single person who walked on the plane.

He was so outgoing and engaging. He welcomed everyone and built rapport with many of the passengers.

And, here is a reminder about leadership. My friend and colleague Mark Sanborn says that you don’t need a title to be a leader. And when it comes to customer service, anyone can step up and be a leader and role model. So, step up. Set an example. Others will follow.

It’s contagious!

He would ask, “Where are you going?” If they said anywhere other than Dallas, he would say, “Well we’re flying to Dallas, and as long as that is on your way, you’re on the right plane.” Then he would laugh.

He had lots of little sayings that put smiles on everyone’s faces. I was sitting in my seat and admiring this amazing display of enthusiastic interaction. I’ve seen pilots engage with passengers before, but not at this level.

Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact (314)692-2200 or www.hyken.com. For information on The Customer Focus™ customer service training programs go to http://www.thecustomerfocus.com. Follow on Twitter: @Hyken

Then came the bad news. Our flight was going to be delayed by at least a half hour due to weather. That didn’t scare too many people. But, a few minutes later we found out it would be at least an hour. Typically when this kind of news is announced many of the passengers start to get restless. They want to leave the plane, see a gate agent, call reservations or do just about anything, to feel like they are proactively doing something to avoid missing connections or being late to their destination. I’m one of those passengers.

Texas Connection

(Copyright ©MMXIV, Shep Hyken)

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July 2014

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More Information about Texas Professional Insurance Agents Membership at www.PIATX.org Our new Cyber Program will provide you with a strong response. It offers a streamlined underwriting approach without a long detailed application. We can link your agency to an automated platform that describes the coverage and processes quotes, binders and policy issuance. Our carrier is a market leader in this class and offers a competitive product, with limits, SIR’s and underwriting guidelines specifically tailored to the SMB market segment.

Cyber Liability, Your Agency & Your Clients It seems every day some business gets hacked and their data exposed to the world.

It’s no secret that identity fraud and data breaches of the personal information held in trust by you or your customers are becoming a huge exposure. In fact, most of the associations tracking these crimes have stated that small businesses have become the target of choice for hackers and fraudsters.

We’re offering this program to our members to be used in two ways…

First, protect your own agency.

And, “Nearly six out of ten (59%) of SMBs do not have a contingency plan outlining procedures for responding and reporting data breach losses”

You have data and data risks and need comprehensive and affordable protection. Think of all the personal information you have on clients and prospects.

What would you do if you suffered a data breach?

Simply go online and purchase. Limits are up to $1 million. All documents are issued instantly. Take advantage of these risk management tools right away.

— National Cyber Security Alliance and Symantec Small Business Survey How it happens…

Lost or stolen laptop, unsecure smart phones, or hacked systems

Visit www.goagents.com/PIA Next, protect your clients

Fraudulent purchase orders used to buy goods in the company name

All of your SMB customers are at risk, and the exposure to a small business can be devastating. Not only will you add value and help protect your clients, you will strengthen your relationships, deliver the optimal or “best deal” available and reduce your own E&O risk along the way. Leave the administration and fulfillment our new program partner while you build a new source of incremental, recurring revenues.

ID Thieves who impersonate the company to collect account receivables A disgruntled former employee selling the personal information of your customers.

Why are small businesses targets?

SMBs having less than $10MM in revenue and 50 or less full time equivalent employees automatically qualify for our pre-pricing – the quotes are already live. Simply bind and print. (For data risk liability, select the Core Cyber™ program.

Credit limits are higher than most individual victims Lack of formal internal data security used by larger companies Businesses control large amounts of Personal Identifying Information of others (credit card transactions, file records, customer and employee data)

To add business identity protection/business identity insurance, monitoring and alerts, choose SB Core Protector which is the flagship program providing the most comprehensive protection, i.e. cyber liability, business identity, employee identity coverage and more…)

Delayed reaction times to discover a problem The consequences of fraud or a breach...

Many experts agree that when it comes to SMB ID Theft and Data Breach exposures it’s not a case of ‘if’, but ‘when’. Don’t run the risk of becoming victimized without the proper coverage, and take steps to point out these exposures to all of your SMB customers.

Financial loss and damage to credit ratings Negative impact on future revenues Damage to the company brand and reputation.

Loss of customer confidence and loyalty

We encourage you to check the link to the program to learn more and make this coverage part of your new and renewal placements. In today’s market these data risks are simply too serious to ignore.

Disruptions with vendors and suppliers We are pleased to announce a new strategic alliance to provide all of our members with a Cyber Liability program specifically designed for your small to medium sized customers.

Texas Connection

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July 2014

Texas PIA Membership has More Advantages!

Here’s what you get for only $300.00 per year: Free Online CE Free Classroom CE Discount registration to Annual Convention Free Report complete with improvement tips on Your Agency’s Online Visibility If your website looks like this on a Smartphone

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Free Customizable Business Forms: These documents are free to download and customize for your own professional use.

Free Mentoring: Whether you are a start-up or an existing business, our mentors will help you reach customers and achieve your goals with confidential, valuable advice.

Free Small Business Handbook: Everything you need to know to run your business, from equity to employees.

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Free Office Poster Software: Templates to create your own custom office posters, all without any knowledge of design or graphical skills needed.

Free “How To” Booklets on Agency Management, Buy / Sell / Evaluate an Independent Agency, Internet Marketing & Social Media

Free Disaster Planning Toolkit: At least one in four small businesses that close because of a major disaster never reopen. Here’s a new tool for your agency (& your commercial policyholders).

Free Monthly CSR Online Training using interactive quizzes, videos and worksheets Free Monthly Agency Owner’s Tips ‘n Tools Free HR Policy & Compliance Guidelines

Main Street Store

Free Claims Apps for Policyholders

Available to all A1 (Agent) members in addition to State Level Benefits

Free Agency Valuation Consultation

Agency Revenue Tools Flood Insurance through The Hartford (to sell) Voluntary Products Offered By the PIA Services Group Insurance Fund

All this & much, much more for only $300.00 per year

Join today Online at www.PIATX.org

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org Too Much To Do, Too Little Time to Do It, Too Many Clients to Visit---

A Commodity vs. a Relationship

By Al Diamond

When it boils down, the reasons we hear in response to the questions above is

www.AgencyConsulting.com

a) We have so much to do that we’re lucky if we see any clients at all b) Our agency operations take up so much time that we are hardly in the insurance business at all any more – we’re managers, administrators and “firefighters”

One of the reasons that the direct writers and internetbased companies do so much business is that the buying public, feel that insurance is a commodity -we’re all the same and the price is the only differentiation. In an impersonal internet-based world in which texting replaces actual conversations this concept makes sense – until a sour experience with a claim or service issue illustrates the need for personal service and relationship.

c) We promise on-going communications and relationships but, in reality, we have hundreds of commercial clients and thousands of personal clients – we simply can’t see them all.

Before we can even address the issues raised above, we must actually gauge our commitment to the concept of Personal Relationships as the primary point of differentiation between our agency and your competitors.

The statistics show that while a large number of people “shop” for insurance on line, most people choose to actually BUY from a human being. They want to touch, feel and speak to their financial counselor. But I’m pretty certain that they don’t quite know why – it just comforts them. The actual reason is that they are assuring themselves that they are spending their insurance money wisely and the hope that someone stands behind them in case they need to use the protection.

Commitment is the way you operate your life. That to which you are committed (marriage, children, church, sport, hobby, your business) gets attention and gets accomplished. That to which you aspire but are not committed are the things that you TRY TO DO. And, in the words of the immortal Yoda, “Do or do not. There is no try.”

But attitudes about insurance agents tend to change in the year after they purchase the product depending on the attitude of the agent or of the agency.

I know folks who are COMMITTED to golf. They are agents and some are successful, but they play golf three to four times each week – they certainly maximize their success at that which they are committed.

While most agencies have great slogans and logos about personal service, the reality is that the pressure of time and volume of work causes us to treat most of our clients just like the “commodity” that they feared they would become if they just signed up on line or over the phone.

Similarly, I know agents who have hundreds of commercial clients and thousands of personal clients and are so committed to the concept of personal relationships that every client thinks that the agent (or agency) considers them a VIP and treats them accordingly.

We treat them like numbers.

We don’t get to know them.

If you commit to personal relationships, you understand that there are others in the industry who can outspend you – there are always better prices than yours if the client looks hard enough – but as long as your clients know that you give them a grade of service that they cannot achieve elsewhere, they will not only remain your clients, but they will tout you to their friends as their ‘go to’ insurance expert.

At best they may know the agent who sold them the insurance but are not likely to establish relationships with the agency or with other staff members.

Yet few intelligent agents deny that their best clients are ones with whom they have a long and lasting relationship, personally and professionally. Some may have been friends before becoming clients, but most agents create a relationship with clients who are important to them and friendship often follows and stems from a strong business relationship.

If you’ve reconciled your feelings and find that the Personal Relationship point of differentiation is the one that will best serve your and your clients’ needs, you are ready to attack the “symptoms” of the ailment that keeps you from maintaining strong relationships with your clients after the sale.

So where’s the DISCONNECT? Why do we only see many of our clients once a year (if that often) to confirm renewals? Are these the same clients that you wooed and enticed when you initially sold them on using your service because they lost contact and trust with their prior insurance provider?

Texas Connection

Continued on page 9

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July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org

A Commodity vs. a Relationship

3. We have TOO MANY CLIENTS to communicate with regularly – Lack of Process. Classify every client (we spreadsheet ours) by the appropriate number of times that client should be seen or communicated with in a year. Then by virtue of the revenue size and/or personal relationships, define who should be seeing or speaking to the customer and start tracking and managing that communications line every week and every month. When we establish a relationship, it doesn’t always have to be with the agency owner or producer. Most clients find themselves dealing with service staff much more than with a salesman anyway.

Continued from page 8 1.

We All Have Too Much To Do – Lack of Prioritization – We have a small staff and a very busy consultancy. We have to remind each other of lunchtimes and at the end of the day or we will work through them. But there are a few things that we remember because they are our priorities. Our health and alertness is a priority so we remind ourselves and each other of break and lunch times in order to be most effective in our business and personal lives.

If a client is large enough, the owner/producer should be the lead (but not necessarily the only) point of contact. But size DOES matter. You must differentiate in treatment between a $10,000 commission account and a $100 commission account. Both should feel they have a special and personal relationship with someone in the agency, but not every personal relationship has to be with the owner.

Our families are priorities so no matter how much work we have, we force ourselves to become husbands, wives, parents and grandparents evenings, weekends, during time off (we criticize each other for calling in while on vacation) and whenever a family event needs to supersede our daily lives.

PRIORITIZATION – DELEGATION – PROCESS MANAGEMENT are the tools that allow the agents truly committed to PERSONAL RELATIONSHIPS AS THE POINTS OF DIFFERENTIATION between them and their competitors to accomplish their goals and to have the vast majority of their clients feeling “special” all of the time.

For agents and their staffs who have become converts to Personal Relationships, seeing and talking to clients must become the primary function of your working lives. Many of us have been shocked by longterm clients who we visit at renewal who tell us that they have found less expensive insurance elsewhere. We are hurt and feel that we think of the clients first, but we fail to keep the clients in the loop. The worst case scenario is when our agency DOES spend a great deal of time working on behalf of customers but we never bother to include the customer in the communications loop. They never assume that you are working on their behalf unless you actually tell them of your efforts.

Contact us and we’d be happy to advise you how to teach Personal Relationships to your agency and to establish all of the tools needed to make you successful as an independent agent competing against the Commodity Agencies and against the direct writers who thrive on making insurance a commodity business.

2. We are pushed and pulled into management of people, process, underwriting, marketing, administration and anything else instead of being able to work with our clients – Lack of Delegation and/or Lack of the right managers. As our agencies grow we tend to take on more and more work instead of identifying lead workers who could become supervisors and eventually managers who should take on these needed roles IN OUR SUPPORT as the key producer/insurance professional.

Once you have more than three or four employees you must breed your own managers. If you have ten or more employees and are still the only manager, you are automatically doing your clients a disservice by spending your time on administration instead of with them.

www.AgencyConsulting.com

Texas PIA “Virtual Trade Show” Here’s the great lineup of Companies at this year’s convention in San Antonio http://www.PIATX.org/Virtual_Trade_Show Texas Connection

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July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org ACQUIRING AND KEEPING GOOD PRODUCERS

Two simple methods exist for those producers, Deferred Compensation and Shadow Stock. Both can be used to sponsor and retain good producers, whether new to the industry or experienced, without giving them real agency ownership until they have proven their value over a long period of time.

By Al Diamond www.AgencyConsulting.com

Deferred Compensation and Shadow Stock Producers, experienced or new, who are talented enough to help agencies develop, are the goals of every agency owner that is focused on growth and perpetuation.

No one strives to be a maintenance owner, servicing a declining agency client base. Yet many agencies find themselves in that very position. They only grow when rates or the market drives premiums higher. And they pay no attention to the key element of agency success growth of client base. So their client base silently and slowly erodes until the pressures on cash and profit drives the agency to sell or merge to maintain some value to the asset.

The answer for insurance agency owners is to recruit producers who will both grow the agency in support of their compensation needs AND become the agency owners’ successors.

Finding producers that fit into the successor category is excruciating. Most of the experienced insurance agency producers who are available are only available because they are not supporting themselves or their current agency.

They are considered Journeymen Producers. They work in the field for five or ten years to attain a large enough client base to support their compensation needs and then move from agency to agency, taking their clients with them, until the agency realizes that it bears little profit or growth from the producer after the initial rollover of clients. The producer has Retired In Place and is taking producer compensation (usually higher than service compensation) to become a service representative for the same group of clients that they have had for years.

However, every year there are some experienced producers who realize that they will never achieve their earnings potential or agency ownership with their current employer. While they may have non-competition periods that require an investment by a new agency, their motivation is exactly what most agents are seeking – someone willing to work consistently, grow a book of business for which they expect fair compensation AND some form of equity to support themselves and their families in retirement.

Texas Connection

The first rule is never give ownership or equity of a book of business or the agency to a producer who is new to the agency and hasn’t shown evidence of his/her long term value.

We have had countless experience as Expert Witnesses in cases which an optimistic owner granted either equity in a producer’s book of business or even agency ownership as an enticement to acquiring a producer the owner hoped would be the agency’s salvation and perpetuation – only to find that the promises weren’t kept and the equity position remained.

In the rare occasions that ownership is appropriate for a new entrant to an agency, a contract of at least two years in duration that provides some ownership interest to the producer IF the growth expectation is actually achieved. The participant should have no concern that the ownership potential may not be forthcoming because of the contractual relationship. But the agency owner no longer need be concerned about being the only participant at risk if the situation does not mature as expected.

Regardless, we NEVER recommend equity in only the book of business generated by the producer for the agency. It is ALWAYS our position that the business brought to an agency through the efforts of an employed producer belongs to the agency. By agreeing to an equity position for a producer, you are yielding the possibility that the producer’s efforts could be separated from the agency’s owned business. No one has ever suggested that the future purchases of an appliance store client belong to the salesman who first sold them a refrigerator. Future purchases BELONG to the store and the commissions for those purchases belong to the salesperson who sells the products to the store customer. The customer is the store’s customer, not the salesman’s customer. If all agencies treated their books of business in that way there would be little need for litigation if a producer leaves and tries to steal customers and the confidential data produced on those customers by the agency.

The second reason we don’t recommend granting equity in a producer’s book of business is that you are trying to get everyone in the agency concerned with the growth, retention and profitability of the agency.

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July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org Shadow Stock – on the path to ownership

ACQUIRING AND KEEPING GOOD PRODUCERS Continued from page 10 Equity in a book of business naturally inclines the producer to be concerned first (and sometimes ONLY) with the book of business in which the producer has an equity position. They will certainly use the agency’s assets to support them and their customers, but will assume the customers to be “theirs”.

However, the trail to agency ownership and success often lies with young or experienced producers who first build a substantial book of business for the agency and then become more valuable to the agency in its growth and progression than simply through their sales.

The Second Rule is to make sure a producer validates sufficiently to support himself before ANY consideration of extending long term compensation and other benefits to him/her. The validation level must be at the discretion of the agency owner. Some agencies are satisfied with producers who have achieved $100,000 or $200,000 of agency revenue before they are considered sufficiently valuable to be giving retention incentives.

Others look for producers to break into six digit earnings (taking commission compensation above $100,000) before being considered valuable enough to warrant retention programs.

Deferred Compensation – the first level of retention program.

In a deferred compensation program, the producer is told that for every dollar generated by him, a percentage will become a deferred liability to the agency, payable to the producer upon retirement (from the business of insurance), death or disability, or, minimally, upon achievement of a time period in the agency (usually at least ten years). At the triggering event payments will begin over a stated period of time to add to the producer’s other benefits.

The second level of Retention Program is Shadow Stock, a side agreement between the agency and a producers that promises the producer an equivalent value to a percentage of ownership if the producer dies, becomes disabled or retires from the business of insurance – or if the agency is sold before another triggering event. The appropriate time to use this retention tool is when a producer becomes sufficiently successful to have an impact on agency value if (s) he leaves. Shadow Stock has no impact on agency ownership since it is a side agreement, not a real ownership position.

However, it is used to create a sense of ownership and to determine whether that producer can be as concerned with overall agency growth, retention, profitability and value as the producer has been concerned about personal production.

The third level of Retention is actual granting of stock through stock sales or stock options for producers who have evidenced the desire and capability of becoming the next agency owners.

Each level of Retention Program, Deferred Compensation, Shadow Stock can be upgraded for the lucky producer who comes into an agency, builds a strong book of business on behalf of the agency, becomes a valued asset whose loss would impact agency value and, finally, becomes worthy of being a part of the agency’s ownership and succession plan.

Please call Agency Consulting Group, Inc. (856 779 2430) to discuss how to establish one or more of these retention programs within your agency to attract new producers, to motivate continued growth of existing producers and to retain successful producers and agency perpetuators who will be constantly accosted by your competitors with offers of “greener pastures.”

This program is good for pure producers and for producers who are pretty much concerned only with their task of selling insurance. There are many producers who are good at what they do and will never have (nor want) ownership or management involvement. The deferred compensation program is designed for them because they know that they are working toward retirement and this builds their value.

The key to a deferred compensation program is to specifically indicate that this only applies if they remain employed by the agency through the triggering event. If they leave early for any reason, the deferred compensation agreement terminates without benefit. As you can imagine, the longer the producer is in place and the more successful (s) he becomes, the greater the loss if they leave early.

Texas Connection

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Mark Your Calendars!

Texas PIA Convention 2015 June 3-5, 2015 in San Antonio

“Mardi Gras … Texas Style”!

July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org

Affordable Care Act 2015 The registration process for agents and brokers in the Federally-facilitated Marketplaces (FFM) is now live for the 2015 plan year! You can begin by accessing Part I (training, exams, and the FFM Agreements) on the Medicare Learning Network® (MLN) at https://Marketplace.MedicareLearningNetworkLMS.com.

Below are the 5 tips that we hope they will help to ensure a successful registration experience for the 2015 plan year! #1—Any agent or broker who wishes to facilitate FFM enrollments for the 2015 plan year must complete Part I on the MLN website again, for the 2015 plan year. #2—If you have already successfully completed Part II, you don’t need to do Part II again this year.

Texas Connection

#3—If you successfully registered last year, use the same MLN user ID when you complete Part I again for plan year 2015. (This will best enable our systems to recognize you as the same user from last year.) #4—Make sure your NPN is correct in your MLN profile before you complete Part I this year. #5—Finish Part I before September 30, 2014. (You are not required to finish Part I before September 30, 2014, but we highly recommend that you do so, to ensure there is no lapse in your FFM registration status.)

Remember that there is an array of supporting materials for you on our webpage: http://www.cms.gov/cciio/programs-andinitiatives/health-insurance-marketplaces/a-bresources.html, under the section titled “Registration for the Federally-facilitated Marketplace (FFM) for the individual market and the Federally-facilitated Small Business Health Options Program (FF-SHOP).”

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July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org

17 Terrific Networking Tips

by Emily Huling, CIC, CMC Networking should play a big part in your overall personal development and career plan. Why? Networking demonstrates your commitment to your industry and your clients.

Networking gives you the most exposure for the time spent.

Networking sows the seeds for long-term friendship and business relationships.

Networking exposes you to peers who have similar aspirations.

Networking enables you to connect colleagues who don't know each other.

Here's a short course for effective and constructive networking:

12. Remember names. Say the person’s name when introduced.

13. Be curious about the other person. Ask questions. Those that are interested are interesting.

14. Jot down relevant information on the back of their business cards (or yours if they forgot theirs).

Transfer that information to your electronic format later.

15. If you have to eat, eat early so you can concentrate on the crowd. Avoid alcohol. You are there to work!

16. Stay late. Some of the best connections are made after the crowd thins.

17. Follow up with those you meet with an e-mail or personalized LinkedIn request to stand out and to provide your contact information electronically.

Emily Huling, CIC, CMC helps the insurance industry create top-performing sales, service, and leadership organizations. She is the author of Selling from the Inside, Great Service Sells, and Kick Your "But." Visit www.sellingstrategies.com to learn how Emily's programs and materials can benefit your organization.

Emily Huling

1. Get involved in the organization by knowing the leaders, volunteering, and going to all the meetings.

Selling Strategies, Inc.

2. Be prepared. Have business cards and pen handy. Keep your cards in one pocket and those you receive in another.

P.O. Box 200 Terrell, NC 28682 Phone: 888-309-8802

3. Practice your 20-second compelling personal commercial that briefly tells people who you are and what you do.

www.sellingstrategies.com

4. Have a goal. How many new people do you intend to meet and learn about? What’s realistic for that specific event?

5. Arrive early. Position yourself near the door to meet and greet.

6. Wear your name tag on the right. It makes it easier to see both the person and name badge.

7.

Have a good, strong handshake. It tells a lot.

8. Don’t spend time talking to those you already know. If a longer conversation is needed, schedule a follow-up call.

9.

Travel solo even if you arrive with a friend.

Mobile: 704-516-5114

The PIA National Agency Marketing Guide is just one tool available through PIA’s award-winning PIA Branding SM Program, Local Agents Serving Main Street America (www.piabrandingprogram.com).

Through the PIA Branding Program, PIA provides its members with marketing tools and services, including internet marketing services as well as print and radio advertisements, in both English and Spanish.

10. Walk the crowd, work the room. Look at people’s faces and make eye contact.

11. Be approachable. Have a smile on your face.

Make sure your posture and stride exude a positive attitude.

Texas Connection

Page 13

July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org

Can you ‘cheat’ your way to more customers?

Yes, and embracing technology can increase revenue, retention

By Michael Jans Let’s look at the good news.

For starters, let me share my perspective. With more than 20 years of training, coaching and designing directresponse marketing campaigns, tactics and strategies, I don’t put a lot of stock in people’s opinions.

What agents can do But there’s a glaring, eye-squinting ray of bright news in the recent industry analysis. According to this new analysis, it seems, insurance agents can (almost) “cheat” their way into more customers, more revenue per customer and higher retention.

How is that? Let’s look at this revealing research from the standard bearers at J.D. Power, which has identified five ways that consumers interact with the industry: 1.) No interaction 2.) Agent only

Even my own.

I prefer to see tests, the answers to tests, real metrics—and proof. If someone says, “That ad has too many words” or “It should have more pictures,” I want proof. Run that split A/B test—that digital marketing makes so easy—and “show me the money.”

There’s a reason I’m sharing this: The insurance industry has been under the microscope lately. Several of the major research and consulting firms seem to be thinking this industry is either ripe for disruption or already has been disrupted (and perhaps we haven’t noticed)—and they want to reveal the trends they’ve discovered.

3.) Agent who uses emerging technology 4.) Agent who uses traditional technology 5.) No agent And, here’s the magic: Whether it was measuring the interactions of the Millennials or the interactions of baby boomers, J.D. Power found the same thing: the Customer Satisfaction Index went up in one critical interaction category: Agents who use emerging technology. According to the 2011 J.D. Power National Auto Insurance Study “emerging technology” is classified as email, smartphone apps, chat and texts.

Candidly, a lot of what they’ve discovered should be filed under “bad news.” For example:

For example, the baby boomers reported an 852 Customer Satisfaction Index rating if they interacted with an agent who used emerging technology.

• Eighty percent of new private passenger auto written in 2003 was by local agents. This dropped to 63 percent in 2010.

The study also found that as the Customer Satisfaction Index rating went up, the revenue per customer increased as well. What this means is:

• Roughly, 40 million quote requests were submitted online. Seventy-two percent of those went to GEICO, Progressive Direct and Esurance.

• Seven percent of private passenger auto policies were purchased online if the relationship is five years or older.

• Twenty-six percent purchased insurance online if the policy is a year.

In 2007, the service experience delivered by local agents was the No. 1 driver of customer satisfaction.

Now it’s No. 4.

GEICO doubled market share (4.8 percent to 9.7 percent) in 10 years. (No other carrier came close.

Progressive came in second in that race.)

Fifty-one percent of small-business owners declare they are “likely or very likely” to be open to purchasing their commercial insurance online.

And on and on …

Those (happy) clients retain at a 95.5 percent.

Compare that to the lower Customer Satisfaction Index score of 750; those clients only retain at a (dismal) 82 percent. And, yes, the math on that is easy: an extra $130,000 for every million dollars in your book of business. (And, by the way, that delivers an extra $3,694,595 over the next 10 years.)

Those (happy) clients “intend to recommend” the gent to others at a sky-high rate of 63 percent. (That’s not just “like” you or “might recommend if the situation occurs.” They intend to.)

Compare that to a meager 29 percent at the lower level of 750. (Want to reduce your customer acquisition costs? Unleash 63 percent of your happy customers on the marketplace!) Those (happy) clients won’t leave— even if your carriers (or the market cycle) throws a serious premium increase at them. Forty-five percent claim they won’t leave “at any price increase.”

(Compare that to 21 percent in the lower and middle tiers of customer satisfaction.)

Continued on page 16

Texas Connection

Page 14

July 2014

Texas PIA is pleased to announce that we are partnering with Berwick Insurance Group to bring members some new products that should increase your average commission per sale.

Berwick is one of the leading Medicare brokers in the United States, and will assist members training and marketing Medicare products.

WHY SELL MEDICARE PRODUCTS? Medicare is a “must have” product 3.1 million Texans are Medicare eligible Another 208,000 people turn 65 this year Incredible cross-selling opportunity to your current book of business Medicare is a door-opener product & can bring in new clients for your other business lines High Commissions with lifetime renewals on many plans

MEDICARE MISPERCEPTIONS FALLACY

FACT

“Hard to Certify”

Requires less than 8 hours per year!

“Lots of Maintenance”

Requires VERY LITTLE customer service once plan is in place! NOT the ACA!

“Hard to Market”

Marketing to your current book of business gives you an advantage & alleviates initial marketing costs!

“Too Many Agents Already Selling Medicare”

Not enough contracted agents to help the millions of Americans who need/want Medicare plans.

“Can Only Sell One Time Per Year”

Medicare is a year-round product

GET MORE INFO TODAY: Call: Michael Lang at Berwick Insurance Group: 888-745-2320 x 7138 Email: Michael@berwickinsurance.com and say “I am with Texas PIA” Contact: Joe Tipton at TPIA: 972-862-3333 or joe@piatx.org

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org Can you ‘cheat’ your way to more customers?

Continued from page 14

The future is now

Advertise in the Texas Connection

For an agency owner who is serious about marketing; committed to building long-term equity; and somewhere between “bewildered” and “terrified”

Attention: Insurance Companies, MGA’s, Premium Finance Companies & Insurance Industry Vendors:

about changes in consumer behavior, the trove of recent research doesn’t all show, as McKinsey declared, that “there are signs now that the economics of the traditional agent model are beginning to unravel.”

Check out the rates for the most cost effective method of keeping your message in front of your customers …

Well, on the other hand, perhaps McKinsey was right. If “traditional” means “old school” or “still acting as if it’s the 1990s,” then, for those agents, the end may be near. But, as consumers, industries and technologies change, the savvy entrepreneur changes, too. And, as always, the future belongs to those who embrace it, not to those who deny it.

The Independent Insurance Agent.

I’d like to end with one observation.

Ad Size

Monthly

Pre-Pay 6 Issues

Full Page (7.5” x 10”)

$175.00

$900.00

Simply installing “emerging technology” in your agency or brokerage is not enough. Scratch the surface and you’ll discover that there are the agents who know what to do with it ... and those who don’t.

Half - Page (7.5” x 5”)

$100.00

$500.00

Quarter-Page (3.75” x 5”)

$75.00

$375.00

Emerging technology allows you to communicate. It lets you do it efficiently, automatically (almost magically).

1/8 - Page (3.75” x 2.5”)

$50.00

$250.00

The savvy professional, independent insurance agents consider seriously what they are going to communicate.

Questions? Contact Eddie K. Emmett at eddie@piatx.org or (770) 312-2342.

They think deeply about the core values of their business. They ponder their value proposition. They create a culture of success built on world class sales and service.

As a marketing consultant to the industry, many agents include me on their email and text-message list.

And, sadly, I get a lot of messages that are irritating or pushy or “value-subtracting.”

Just because some marketing consultant says you should touch your clients 17-21 times per year doesn’t mean you should irritate them 17-21 times per year! You should be nurturing, cultivating and delighting them on each and every point of contact. Technology multiplies everything. Use it to multiply value.

That’s how you grow your business.

Michael Jans is the CEO and founder of Agency Revolution, “the most trusted marketing company in the insurance industry.” Get a copy of his white paper, The 2014 State of the Industry: 3 Reasons Insurance Will Never Be the Same for free at www.InsIndustryTrends.com or call (800) 606-0477. To learn more about the services of Agency Revolution visit www.agencyrevolution.com.

Texas Connection

Our Newest Member Benefit Do you write Commercial Lines Insurance?

How would you like to have an Excel spreadsheet of Company Names, Addresses, Websites, Social Media, and e-mail addresses (if available) for any specific type of risk you can name?

Current members can get the information on up to 200 of these risks within a 30 mile radius.

Want to try? Are you a member in Good Standing?

Send your type of commercial risk and zip code to eddie@PIATX.org.

Page 16 July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org

How would you assess your agency’s overall E&O culture?

by Curtis M. Pearsall, CPCU, AIAF, CPIA President – Pearsall Associates, Inc., and Special Consultant to the Utica National E&O Program Contributed by Bob Dixon - TIPS The question posed in the headline is probably not easy to answer. After all, there are many issues to factor in making this determination. A better way to look at this is by comparing your E&O culture today with a certain point in the past. The question then becomes “is your E&O culture stronger today than it was last year at this time?” In a recent industry survey, 85 percent of the agencies that responded indicated an improvement over the previous year, with 70 percent of that 85 percent indicating a substantial improvement was made.

Membership & General Information Joe Tipton Membership Director PO Box 700877, Dallas, TX 75370

Creating and maintaining a culture of constant improvement is key. It is probably best to evaluate your agency on a continuum. As you may not know where the end is, the goal is to be confident you are making progress and improving.

If your agency is unsure where it stands or if you have not given it much thought, here are some areas to consider: Management/Leadership

TEL: 972-862-3333

FAX: 972-307-7888

Cell: 972-965-2025

Joe@PIATX.org

PIA National

www.pianet.com

E&O Solutions Renewing your E&O every year isn’t much fun, is it?

Don’t you want to make sure that you’re getting the best price for the best coverage you can get on your renewal?

As with most businesses, the culture of the organization starts with management/leadership. The staff will follow suit to the degree that management “walks the walk” and “talks the talk.” Thus, where it is readily apparent that agency management is committed to a strong errors-and-omissions culture, that message will heavily drive staff behavior.

Why not compare with another company for your peace of mind?

Conversely, if agency management does not truly embrace an E&O culture, the agency is only fooling itself and will never achieve the desired level of E&O commitment.

Do you want higher E&O limits but your carrier won’t quote what you want? That’s not a problem. Go to the E&O Program at www.PIATX.org and print the umbrella application from the link shown. Fill out the application and send it to us.

Staff engagement This area will undoubtedly heavily determine an agency’s E&O culture. Why? Agencies don't make mistakes, people do. Two agencies could have the same procedures and expectations, yet have a different culture within their respective shops. E&O is serious stuff, requiring every staff member that believes in the cause to perform their duties ethically and professionally.

It costs you nothing and you don’t have to be a member of PIA of Texas to move your coverage. Go to the E&O Program link at www.PIATX.org and print the applicable application and e-mail or fax it to us.

Continued on page 18

E&O Contacts

E&O Contacts

Houston area

Dallas area

Bob Dixon

Ray Reyes

bdixon@piatx.org

ray@piatx.org

866-577-7428

214-618-2365

832-375-0787 Texas Connection

Page 17

July 2014

More Information about Texas Professional Insurance Agents Membership at www.PIATX.org

How would you assess your agency’s overall E&O culture?

Because an agency’s staff involves many different functions and disciplines, assessing the agency’s culture requires an assessment of each person. While producers and CSRs are heavy drivers of E&O claims, virtually everyone in an agency, including the receptionist and claims team, has the potential to cause, and are causing, E&O claims.

Educating your staff For the staff to perform their jobs professionally and efficiently, they must possess a high level of proficiency in the technical aspects of their positions. Your customers count on the staff’s expertise on an insurance matters. In addition, training in the areas of sales, customer service and systems is also extremely important. As you develop goals for each of your staff for 2013, identify educational opportunities based on your assessment. This may include courses, designations, seminars, etc. Your local agents’ association is a great resource for this type of material.

Moreover, exposure analysis checklists are an excellent tool for agencies to totally understand classes of business, and the various insurance issues and exposures.

Educating your customers Many agencies would contend that the best customer is an educated customer. Has your agency undertaken a campaign to educate customers on various coverages and how these coverages respond? There are many approaches to accomplish this, including producing a printed or electronic newsletter to send to customers.

There are many topics to address. Some apply regardless of the time of year, while others are more seasonal (e.g., boating, children going off to college, etc.).

A great approach is to perform an annual agency review for each of your customers. This will help your customers understand their coverage and may also identify any exposures the customer has that are not properly insured. It is definitely better to discover and discuss these issues before a loss occurs as opposed to afterward.

The best rule of thumb for documentation is that another staff member should be able to review the documentation and know exactly what the issues are as well as any open items.

Auditing To truly assess the E&O culture and commitment of the agency staff, it is necessary to review their files and the detail each contains. How well are agency procedures being adhered to? What is the level and quality of the file documentation? To effectively perform this function, develop an audit form addressing the key issues, and then perform periodic reviews of a predetermined number of files for each staff member. While this takes time, it is a critical to discover any issues before they become a problem.

Customer accountability It seems that with many E&O claims, the customer does not take any responsibility for the decisions made regarding his or her insurance program. Some possible approaches: Provide options for the customer to consider and require the customer to sign off on the coverages and limits selected and rejected.

Send a cover letter with the policy to the customer requesting that the customer reviews the policy and advises your agency of any questions or problems. An example of such a letter: Enclosed please find the renewal of your Businessowners package written with XYZ Insurance Co. You will be receiving your premium invoice shortly.

It is important that you take the time to read this policy to ensure your understanding of the limits and the coverages. If there are any questions, or if you wish to make any changes to this policy, please contact the agency promptly.

The limits of insurance have been selected by you and we can’t guarantee that the limit selected will be sufficient in the event of a major loss. Higher limits are available upon your request.

Thank you for your confidence in our agency. We appreciate your business.

Sincerely,

Documentation What is the quality and timeliness of the documentation in the customer’s file? For example, documentation stating “spoke with insured regarding their homeowners insurance” is unacceptable as it does not provide any real details.

Texas Connection

Growth and improvement If you are unsure that the agency’s culture has been enhanced compared to last year, or even has regressed, don’t be disheartened. Start today on a path to growth and improvement. It will be time and energy well spent.

Page 18

July 2014

2014 PIA National Guide to

Member Benefits

PIA: Local Agents Serving Main Street America

SM

For online access to the PIA National member benefits

Business-building tools

Insurance products

> PIA Branding Program. Write more business and demonstrate that you’re a Local Agent Serving Main Street AmericaSM by using our print and radio ads, available in English and Spanish. Look for new marketing tools in 2014.

> PIAPRO E&O. The PIA Professional Liability Insurance Company is a Risk Retention Group (RRG) formed to offer errors and omissions coverage exclusively to PIA members. To see if PIAPRO is available in your state, please go to www.pia-pro.com or contact your local PIA state association’s E&O producer.

They end at competitive rates.

We begin there.

As your local Professional Insurance Agents, we provide competitive rates and a whole lot more: > A choice of companies to better fit your unique needs. Where single company agents, 800 numbers, and websites fit a policy to you, we represent a number of quality companies that offer different policies and optional endorsements.

> Hartford Flood Insurance. Easy enrollment, dedicated local sales directors and book transfer/rollover team, training/CE, free certified zone determinations, 24/7 claims reporting and great commissions.

Not comfortable with flood insurance? Try the “Flood Solutions” option, which uses Hartford CSRs.

> E &O insurance. Professional liability, errors and omissions insurance. With access to multiple markets with differing appetites, including admitted and non-admitted markets, chances are we can find the coverage and price that’s right for you, even if you have a more unusual risk.

Visit www.pianet.com/eando.

> Rough Notes Producer Online. Helps identify risk exposures and provides detailed coverage analysis. Save up to $1,195 in your first year alone when compared to the regular list price!

> P IA agents umbrella program. Excess insurance protection includes E&O and business liability coverage, with available endorsements for EPL and personal coverage. Coverage not available in all states.

> DocIT from Drivers History. DocIT’s online database of driver violation data helps agents align applicants with the right carrier so they order fewer MVRs.

NEW

> Enhance Insurance by Agoragate. Internet marketing firm Agoragate (pronounced Agra-gate) enables independent insurance agents to dramatically increase their visibility online when people in their communities search the web for insurance.

> I ndividual and group insurance products.

Basic, voluntary, and dependent term life; long/short term disability; AD&D; business overhead expense; and hospital income protection for you, your employees, and families.

Visit www.piatrust.com.

> Agency Revenue Tools. Boost personal lines sales by engaging in employee worksite marketing using your appointed markets at regular commission rates.

Cutting-edge communications

> Agency websites from Emerald.

Cutting-edge website technology tailored specifically for insurance agents. Now it’s easy to have a good looking, user-friendly agency website.

> PIA Connection print newsletter.

Award-winning publication packed with news and analysis of national issues, published ten times per year.

> Using the PIA logo. Put the PIA logo on your business card, website, stationery and signage. Order items with the PIA logo in our online store.

> PIA National’s website, www.pianet.com.

> Consumer brochures. Answer your customers’ questions about insurance with PIA’s attractive brochures.

> PIA National Agency Marketing Guide. Hands-on marketing tips from industry experts. Published annually each summer.

PIA Responds to the McKinsey Report

November/December

pages 9-13

2013 National Association of Professional Insurance Agents

Buying Insurance Is Not Like Buying a Song on iTune s page 3

Special Report:

Maximize Your People, Processes and Systems to Increase Sales

PIA National

2013

> Personal support and service. Whether you have a question about coverage or need to submit a claim, we’re here for you— over the phone or face-to-face.

Agency Marketing Guide Brought to you by these

sponsors:

A Berkshire Hathaway Company

Learn more about these PIA National member benefits at www.pianet.com.

A product of the PIA Branding

Program

PIA: Local Agents Serving Main Street America

SM

s listed here, please visit www.pianet.com.

Carrier relations

Tools from The PIA Partnership The PIA Partnership — a joint effort of leading insurance carriers and PIA — develops hands-on tools for PIA member agencies such as: > Closing the Gap — Growth NEW & Profit. The PIA Partnership’s newest tool provides PIA members with calculators so they can project and plan for new business growth and profitability.

Agencies are then offered three proven, turnkey approaches for improving retention, sales and account-rounding in their agencies. > Agency Touch Points — The Voice of the Customer. Learn how to capitalize on Partnership research to give personal lines customers what they really want, instead of relying on commonly held misconceptions.

Because good relationships with the carriers you represent are vital to your success, PIA National keeps an open line of communication with insurance companies—and uses it on your behalf. PIA members can constructively voice their concerns, so carriers understand how their decisions affect their agency partners.

Our Agency Agreement Review Service, available to both PIA members and carriers, provides an opportunity for PIA to advocate for agents when carriers consider changes to their agreements. Staff highlights concerns for members to consider so they can make informed decisions about the agency agreements that govern their business relationships.

> Practical Guide to Successful Planning. This valuable resource helps agents plan for success within their own agencies and coordinate their plans with those of the carriers they represent.

Through our ongoing activities with The PIA Partnership, PIA agent and insurance company leaders work together to identify areas of opportunity for PIA member agencies. The PIA Partnership then develops handson tools specifically designed for use by agents to help them achieve maximum success. Recent PIA member benefits from The PIA Partnership include Closing the Gap — Growth & Profit, Agency Touch Points — The Voice of the Customer, Reaching Gen Y, the Practical Guide to Successful Planning and Perpetuation Central.

These programs are described at left.

Agency management tools

Industry & business affairs

> Reaching Gen Y. This online tool helps agents understand and reach Gen Y age group insurance consumers and convert them into loyal agency customers. > Perpetuation Central. This hands-on, interactive tool guides agencies through the decision-making, planning and implementation steps of agency perpetuation or ownership transfer.

> Agency Agreement Review Service. Free to members and carriers, PIA recommends changes to carriers and highlights concerns for members so they can make informed decisions about the agreements they sign. > Agency Preparedness and Recovery Plan. The PIA guide to creating an agency-specific business contingency plan. > Discounted producer licensing services. Available from Sircon and Central Licensing Bureau. > Prescription discounts. Save money on prescriptions not covered by insurance. Available to PIA members and their clients.

NEW

> Employee profiling. Hire the right people with skills and personality testing from OMNIA. > Discounts on shipping with UPS, calendar products from Mines Press, and car rentals from Alamo. > Free subscriptions to industry publications.

PIA National works with industry groups such as the Association for Cooperative Operations Research and Development (ACORD) and the Insurance Services Office (ISO) to improve processes and address challenges facing the insurance industry. In doing so, PIA works to ensure that changes are in the best interest of agents.

PIA also provides our members with practical guidance to help them keep their agency practices in compliance with insurance and general business regulations and more aligned to the way other agencies do business.

Guidance is also provided to assist PIA members with protecting their ownership and control of agency expirations.

Learn more about these PIA National member benefits at www.pianet.com.

PIA: Local Agents Serving Main Street America

SM

Legislative & regulatory outreach Whether we like it or not, federal politics greatly affects our industry. That’s why PIA National represents members’ interests on Capitol Hill in Washington, D.C. Our lobbyists ensure that lawmakers understand insurance agents’ positions and how legislation will affect voters back home.

PIA National works closely with regulatory and legislative entities across the country, including the National Association of Insurance Commissioners (NAIC), the National Conference of Insurance Legislators (NCOIL), and the National Conference of State Legislatures (NCSL), to ensure that the concerns of independent agents are addressed.

PIA holds a seat on the board of the National Insurance Producer Registry (NIPR). PIA is a fixture in countless working groups aimed at modernizing and improving insurance regulation, healthcare reform, producer licensing, flood insurance, crop insurance, and natural disaster planning. PIA fights to protect agents’ interests and ensure they have a seat at the table.

Here are some ways you can get involved: > Grassroots alerts. To ensure legislators feel the heat from their constituents, PIA occasionally organizes grassroots campaigns in which PIA members can easily send pre-written, fully-editable letters directly to their elected officials. Send one now by visiting www.piagrassroots.com. > PIA Federal Legislative Summit. The annual spring PIA Federal Legislative Summit (FLS) is a gathering of PIA members who come together in the nation’s capital to meet with their elected representatives. It is an opportunity to meet/reacquaint yourself with your Members of Congress and to discuss issues that are of importance to independent insurance agents. Learn more by visiting www.piafls.com. > District Lobbying Day…Capitol Hill in Your Backyard. Every August, while Congress is in recess and our elected officials are back home in their district offices, PIA members have a special opportunity to positively impact the politics that shape their lives. They do this by meeting with their elected officials and promoting the points of view of Professional Insurance Agents. Resources for these meetings can be found on www.piadld.com.

> PIA Political Action Committee (PIAPAC). PIAPAC is the Professional Insurance Agents Political Action Committee. The PAC contributes to the campaigns of candidates to federal office who share our pro-insurance, pro-business perspective and who support our issues. PIAPAC is funded by the contributions of individual PIA members.

To learn more visit www.piapac.com.

PIA Insurance Foundation The Professional Insurance Agents Insurance Foundation (c-3) strives to further the insurance knowledge and education of those engaged in the independent insurance agency system. Its most recent work product, entitled Future of the Business Disciplines, Regulation and Oversight of the U.S. Insurance Marketplace, is a white paper intended to assess the current status of insurance regulation and evaluate the range of potential reforms being discussed in Congress and throughout the insurance industry.

More information For more information about the PIA National member benefits described in this brochure, please visit www.pianet.com.

Contact Us Have a question? Not sure how to access a particular program? Want to vent about something? That’s what your staff at PIA is for. Please feel free to give us a call or send us an email.

To find specific PIA National staff members who can assist you, visit our online Contact Us web page: www.pianet.com/contactus.

Or call us at (703) 836-9340 or email membership@pianet.org and we’ll put you in touch with the proper person.

National Association of Professional Insurance Agents 400 N. Washington St. Alexandria, VA 22314-2353 (703) 836-9340 membership@pianet.org www.pianet.com 1/14

INSPIRED BY

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In today’s volatile credit environment, our experienced staff finds creative solutions to your most complex transactions. We focus on getting the deal done while providing you the highest standards in customer service.

Imperial PFS is honored to be named Texas PIA’s Agents Choice For Excellence in 2014!

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