AccuAgents - April 2013

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AccuAgents.com

Free CE for SC & GA Special Rate ends April 15th Make plans to take a mini-vacation and stay overnight at the newly renovated Sonesta Resort for only $169.00.

The rate goes to $219.00 per night if you wait th until after April 15 to reserve your room.

And if that isn’t enough reason to stay overnight … how else will you be able to enjoy the complimentary adult beverages on Friday evening’s Trade Fair and at the Saturday afternoon Agent’s Pool Party that leads directly into the United Auto Party on Saturday evening?

The FREE CE has been carefully selected specifically for SC & GA agents who wish to increase their production and profitability.

On Friday morning Progressive Insurance will be teaching “New Approach to Selling”. ‘Nuff said?

AccuAuto, IMHO the world’s leading software for comparative rating and Web marketing, is inviting all agents and CSRs to attend the SC & GA Insurance Convention for FREE on May 16 – 18 at Sonesta Resort on Hilton Head Island, SC. SC & GA agents can earn up to 9 hours FREE CE brought to you by Progressive Insurance, AccuAuto & LegalShield.

But wait … there’s more.

On Friday afternoon AccuAuto presents Eddie K. Emmett teaching “Localize, Mobilize, Socialize … Consistent Creative Client Communication using Social Media”.

On Saturday morning Rick Pegram of LegalShield presents “Insurance for Insurance Agents” … How to deal with insurable & non-insurable legal traps that aggravate insurance agency owners.

BTW … all agents & CSRs who register online for FREE at http://accuauto-agent13.eventbrite.com by April th 15 are eligible for the Windows 8 drawing. You must be present to win.

Exhibitors and Sponsors may register at http://accuauto-rep13.eventbrite.com. Please remember the “Persona non Grata” policy will be strictly enforced.

AccuAgents

Page 1

April, 2013

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AgentsFirst.org

Come enjoy the Most Fun, Most Educational, Most Affordable Beach Getaway powered

by AccuAuto AccuAuto invites South Carolina and Georgia Insurance Agents, CSRs, Insurance Companies and Insurance Vendors to enjoy the most fun, most educational and most affordable Insurance Family Getaway anywhere in the Southeast.

Special Room Rate at Sonesta Resort is only $169.00.

Saturday, May 18th 8:00 a.m.: Golf Outing & Registration 8:30 a.m. – 10:30 p.m “Here Come De’ Judge” (3 hours CE) part 1 of 2. You must attend both parts to earn any CE credit 10:30 p.m. – 12:00 p.m: Trade Fair Lunch on your own

Agents & CSRs may attend all events for free.

12:00 p.m. – 1:00 p.m.: “Here Come De’ Judge” (3 hours CE) part 2 of 2. You must attend both parts to earn any CE credit

SC & GA Insurance Convention Agenda

1:00 p.m. – 5:00 p.m.: Agents Pool Party. Adult Beverages compliments of Driven Solutions

Thursday, May 16th

5:00 p.m – 7:00 p.m.: Cocktails in Hospitality Suite

8:00 a.m. – 3:00 p.m.: Golf Outing / Beach / Pool 5:00 p.m. – 11:00 p.m.: Cocktails in Hospitality Suite

Friday, May 17th 8:00 a.m.: Golf Outing & Attendee Registration 8:00 a.m. – 9:00 a.m.: Exhibit Setup

9:00 a.m. – 12:00 p.m.: Progressive Insurance presents 3 hours CE 12:00 p.m. – 1:00 p.m: Lunch on your own 1:00 p.m. – 3:00 p.m.: “Localize, Mobilize, Socialize” (part 1 of 2) (3 hours CE). You must attend both parts to earn any CE credit 3:00 p.m. – 5:00 p.m.: Trade Fair 5:00 p.m – 6:00 p.m.: “Localize, Mobilize, Socialize” (part 2 of 2) (3 hours CE). You must attend both parts to earn any CE credit 5:00 p.m – 7:00 p.m.: Cocktails in Hospitality Suite 7:00 p.m. – 10:00 p.m.: AccuAuto Welcome Reception at Beach Pavilion

AccuAuto’s SC & GA Insurance Convention

7:00 p.m. – 10:00 p.m.: United Auto Insurance Company Cocktail Party at Beach Pavilion

Special Rate Cutoff is April 15th Rooms at Sonesta Resort Hilton Head Island are only th $169.00 per night. Special Rate Cutoff is April 15 or whenever they sell out of rooms.

Custom Online Registration or call 1-617-806-4631 and guests should reference the name of the group as The AccuAuto GA/SC Insurance Conference so they will receive our negotiated rate of $169.00.

Agents & CSRs may attend for free.

Reps from non-participating companies are persona non grata.

Earn up to 9 hours Classroom CE on Insurance Agency Management & Internet Visibility & Social Media Meet Company Reps in Trade Show Agents & CSRs Registration: http://accuautoagent13.eventbrite.com Exhibitors / Sponsors Registration at http://accuautorep13.eventbrite.com May 16 – 18, 2013

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More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AccuAgents.com

The Shepard Letter Your Competitive Advantage: Be Nice A Common Sense Customer Service Tactic The other night I did a speech that was more about motivation than it was about business and customer service. The audience included college students in their teens and 20’s, people in the prime of their business careers and retired people. The client asked me to deliver a simple message about going from being average to being amazing.

If you’ve been reading my customer service articles or watching my weekly videos on YouTube, then you know my definition of being amazing is about consistently being better than average. And above average means exactly that.

You don’t have to be over-the-top amazing. No, you just have to be a little better than average. The key is to be better than average, all of the time. That’s what amazement is about. It is consistency that makes being above average, even just a little above average, amazing.

So, I shared five amazement tactics, and it was the fifth and final tactic that created a surprising response, and the subject of this article. And, it was simple: Be nice.

The reaction from the audience was surprising. They unexpectedly applauded. I wondered why they would applaud at something so simple – something that seemed like just common sense. More on that in just a moment.

That started when my mom made me write thank you notes to anyone that gave me a gift. That was a great lesson, taught at a very young age, about doing the right thing; being nice and showing appreciation to people who are nice to you.

After the speech I asked my wife, who was in the audience, why she thought the audience applauded.

She said that so many people aren’t nice. It’s not that they are rude or mean, although sometimes they are.

No, they just don’t smile and say thank you. And, when you encounter someone who is nice, you feel so much better about doing business with them.

In business, being nice is part of delivering customer service. It’s the positive attitude, the respect you show to the customer, and the way you make them feel appreciated. It’s an essential part of any customer service strategy. The best system isn’t complete without the positive feelings the customer experiences from doing business with you.

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

I went on to explain what it took to be nice. I’ve written about this type of thing before, but here is the spin. Nice people do a number of things: They are respectful of others.

They do what they say they are going to do.

You can count on them.

They show up on time, respecting the time of others.

They are polite. They say, please and thank you.

And, speaking of thank you, they write thank you notes.

That last point, writing thank you notes, was a callback to the beginning of the speech when I talked about how my parents taught me to do the right thing.

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April, 2013

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Also, cold calling builds character and keeps you grounded. The reality is: if you can cold call effectively and with confidence, nothing will stop you, you will be able to do any other sales task you need to do in order to be successful. That is why I recommend you never stop cold calling even when you are extremely successful. Granted, you may only make one or two cold calls a week at that point, but this will keep you sharp and on your toes.

The Top Five Sales Myths

by John Chapin As someone who has been in sales for over 24 years, and now as a sales trainer, speaker and coach, I continually hear debate over the following five sales myths. In this article I will expose and throw light on these top sales fairy tales.

The Top Five Sales Myths Debunked

Continued on page 8

Sales Myth #1: Sales is NOT a numbers game.

The more people you talk to, the more business you will do, even a blind squirrel finds a nut if it keeps looking. Granted, you want quality behind the numbers and, depending upon your business, it may be helpful to do some research on the person you’re calling before you call. That said, in order to be successful in sales you need lots of good solid relationships and the only way to get those relationships is to go out and talk to lots of people. The bottom line is: if you talk to enough people during the day, you will eventually run into someone who says, “I need what you have” or “I know someone who needs what you have.” Know the number of people you need to talk to during the day in order to be successful and then go out and talk to that many people and more.

Get a Complimentary Assessment

Sales Myth #2: Cold calling is a waste of time and doesn’t work.

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Your website affects your social media, email marketing, lead generation, brand awareness and sales strategies. Find out how to turn your online presence into a full-fledged inbound marketing in a complimentary website & marketing assessment. Your assessment will cover:

In over 24+ years I’ve built four different businesses primarily through cold calling. Cold calling is simply the fastest, most pro-active way to get leads. The reality is: if you are new in business or struggling, it’s more than likely you don’t have enough leads and you’re not getting enough through networking, referrals, and other sources... Time to cold call. Yes, cold calling is the most difficult, most time consuming task you can do, yet unless you have millions of dollars to spend on marketing campaigns, cold calling yields results like no other prospecting method.

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April, 2013

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The Top Five Sales Myths Sales Myth #3: Friday afternoon is a bad time to call on prospects and clients.

Most salespeople believe that prospects either take Friday afternoons off or, if they do work, that they don’t want to be bothered by salespeople at this time. This is simply not true. Not only do most prospects work on Friday afternoons, they are also in a better mood at this time than at any other time during the week. As a result, Friday afternoon is a great time to prospect and close business. In addition, because most salespeople don’t make calls at this time, you will stand out as someone who is dedicated and hard-working. The bottom line is: Friday afternoon is one of the best times to prospect and close business.

For access to John's free monthly newsletter and white paper on what it takes to be successful in sales, visit John's website at http://www.completeselling.com Have a sales question? E-mail John at johnchapin@completeselling.com John Chapin’s specialty is helping salespeople and sales teams double sales in 12 months. He is an award-winning sales speaker, trainer and coach, a number one sales rep in three industries, and the primary author of the goldmedal winning "Sales Encyclopedia". In his 24+ years of sales, customer service and management experience, he has thrived in some of the toughest markets and economies.

For permission to reprint, or to reach John, email him at johnchapin@completeselling.com.

Sales Myth #4: A good salesperson can sell ice to Eskimos.

John Chapin

The premise here is that a good salesperson could sell someone on something that is so obviously not needed. Nothing could be further from the truth. Top salespeople, over the long haul, don’t take advantage of people by selling them something they don’t need. Top salespeople make it all about the other person and they always do what is best for them, even to the point of sending someone to the competition on rare occasions.

Helping you find and get all the business you want

That said, are their some “temporary” sales successes who take advantage of people and make lots of sales by selling them items they don’t need? Yes. But in the long-term those people get caught, burn out, find that their personal lives in shambles, or a combination of all of these. The bottom line is: you can’t take advantage of people for long and live a happy, fulfilling, successful life. The top salespeople are honest, have integrity, and focus completely on the other person. They only make the sale if it is a win-win.

Sales Myth #5: The customer ISN’T always right.

Salespeople I’ve seen with this attitude seem to have a chip on their shoulder. It’s an attitude of arrogance in which they seem to believe the customer should be privileged to be doing business with them as opposed to the other way around. If you have a mindset that the customer isn’t always right, chances are great that you will not go above and beyond, you will not do more than expected, and you will not deliver top-notch, second-tonone follow-up and service after the sale.

If you do not do everything within your power to ensure the customer has a great experience, odds are they will have a mediocre experience at best and you will never stand out. That said, is the customer always right?

No, but you’d better walk into that conversation convinced they are, or they will pick up on your suspicion and indifference quickly and as opposed to running into that 1% of unreasonable people, you’ll find the number closer to 50%.

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Complete Selling, Inc.

Cell: 508-243-7359 johnchapin@completeselling.com www.completeselling.com LINKEDIN: johnchapin1

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N-Surance Outlets (NSO) has released an upgrade to its online rater, SNAPPY. NSO pioneered Snappy in 1994 and with this new release approved agents can now login and quote over 500 ISO casualty classes (and growing!). Some examples include artisan contractors, GC’s, restaurants, daycares, and special events. The quotes comparatively rate across up to 6 A Rated E&S carriers showing all policy forms, terms and conditions. Approved and trained agents can now generate up to 6 quotes for their clients in under 2 minutes.

Selective new appointments are being considered, so please contact Ken Fort (kfort@nsoins.com // 404.226.9843) or Bill Murrey (bmurrey@nsoins.com // 678.987.4904) to discuss further.

NSO is a regional Managing General Agent and Wholesale Broker founded in 1985 and headquartered in Roswell GA with a Branch Office in Tarpon Springs FL. NSO places business for over 1000 retail agents in GA, AL, TN, LA, FL. Page 8 April, 2013

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AccuAgents.com

“One of the top reasons consumers give about why they don’t buy life insurance is because it is ‘too confusing,’” noted Douglas. “The study shows that consumers with a better understanding of life insurance have a higher level of confidence in insurance companies than those less knowledgeable about life insurance. The study offers companies an in-depth view on what consumers know and the factors that contribute to better understanding of life insurance, helping them take the right steps to increase Americans’ comfort level with the industry and its products.”

LIMRA: Americans Have Rudimentary Knowledge About Life Insurance LIMRA Researchers Test Americans’ Life Insurance IQ – 70 Percent Fail WINDSOR, Conn., Jan. 17, 2012—Recently, LIMRA provided a life insurance IQ test to 4,000 Americans to gauge their knowledge and understanding of life insurance. Less than a third (1,200) passed the 10question exam and the majority (55 percent) answered fewer than five questions correctly.

Please feel free to share the link to our quiz with your readers: www.limra.com/NewsCenter/LIIQ.

“In addition to identifying the aspects of life insurance that consumers understand and where consumers admit to being in the dark, the study also shed light on some widespread misperceptions,” said Jennifer Douglas, LIMRA associate research director for strategic and developmental research. “With life insurance ownership at an all-time low, it is important that the industry not only overcome consumers’ lack of knowledge about life insurance but address the misinformation that is out there confusing them and possibly having a negative impact on their image of the industry.”

LIMRA, a worldwide research, consulting and professional development organization, is the trusted source of industry knowledge, helping more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness. Visit LIMRA at www.limra.com.

Catherine Theroux | Director | Public Relations | LIMRA | 300 Day Hill Road | Windsor, CT 06095 | Office: 860-285-7787| Cell: 703-447-3257

LIMRA researchers identified a number of factors that were associated with higher life insurance IQs among the survey respondents: • If the person cited multiple sources of information attributing to their understanding of life insurance •

If the person owns individual life coverage

• If the person’s primary source of information is through their occupation, some sort of seminar, or a financial planner •

If the person is older

• If the person has a higher degree of confidence in the life insurance industry HOW MANY YEARS DO YOU HAVE LEFT?!

•

If the person has a higher level of education

• assets

If the person has higher household investible

Watch your age in the upper right corner as you progress through the questions!

•

If the person is male

•

If the person views life insurance as important

It’s kinda fun to watch your age go up and down as you answer the questions.

Less than one percent of those surveyed answered all ten questions correctly. (Take the quiz and compare your knowledge).

What does this mean for the industry?

Now this is interesting, give it a try....

How long will you live? This is a calculator that estimates your life expectancy.

It was developed by Northwestern Mutual Life. It's interesting that there are only 13 questions. Yet, they can predict how long you're likely to live. http://media.nmfn.com/tnetwork/lifespan

AccuAgents

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April, 2013

Facts from LIMRA Americans Know they Need Life Insurance – the Trick Is Getting Them to Buy According to LIMRA’s research, almost 9 in 10 Americans view life insurance as a necessity. In addition, life insurance beat out all other sources of financial assets or income that Americans expect to use to help pay bills, and to maintain their lifestyle if the primary wage earner dies.

Yet, in 2011 only 59 percent of individuals LIMRA surveyed said they actually own some sort of life insurance and half of American households said they needed more life insurance.

How does the industry bridge this gap and help people protect their loved ones?

Over the past two years, only 22 percent of U.S. households seriously shopped for life insurance. Of those, 41 percent said life triggers — getting married, buying a home, having or adopting a baby, receiving substantial assets, or experiencing the death of a relative or close friend — were the reasons they began to shop for life insurance. But even life events only propelled a little more than half of those who shopped to buy.

Why aren’t these people buying life insurance they feel they need?

Many don’t know how much life insurance or what kind to buy. LIMRA has found that this indecision leads consumers to procrastination.

LIMRA research has revealed four things producers can do to help shoppers become buyers: 

  

Conduct a needs analysis with clients and prospects. Consumers who get one are “considerably more likely to buy” than consumers who don’t. What’s more, producers who recommend an amount of insurance to buy ultimately sell more policies, at a 60 percent higher coverage level.

Meet directly with clients. Clients who meet with producers face-to-face buy policies70 percent of the time.

Raise the issue. One-quarter of life insurance shoppers consider life insurance only after an agent or advisor initiated the discussion.

Be persistent with follow-up. More than one-third of shoppers said the producer should have followed up with them while they were still deciding whether to buy.

Buying life insurance is an act of love. Make sure your clients protect the ones they love by ensuring they have the appropriate amount of life insurance.

All facts are from LIMRA’s life insurance consumer studies.

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AccuAgents.com

This integration between print and web via mobile adds a new dimension of communication to any marketing or outreach effort.

A QR Code works by simply scanning the code with a mobile device that is equipped with a camera and QR Code reader application. These applications can be downloaded for free on popular smartphone platforms such as iPhone and Android.

So we talk about them a lot in this newsletter, but just what is a QR Code? Well, if you live in the U.S. you may have begun to notice some unusual-looking square boxes appearing in print publications and advertisements. These 2D matrix barcodes are called QR Codes, or Quick Response Codes.

One of my favorites is www.RedLaser.com.

Download a QR Reader App and scan this QR Code:

QR Codes are similar to the standard bar codes that currently appear on all types of consumer products (think bottom of your favorite breakfast cereal). However, QR Codes can contain much more information than traditional barcodes.

You can think of a QR Code as a paper-based hyperlink that connects the physical world with the online world. For insurance agencies, your unique QR Codes allows advertisements, brochures, posters - even clothing or billboards - to direct users to a mobile landing page.

Make plans to attend SC & GA Insurance Convention and I’ll show you how to do it for free.

If you can’t send a document for signature by email, there is another agent who can. If the price is similar, the customer will go with the agent who makes it easier to buy!

Check out the demo link at: www.insuresign.com/demo AccuAgents

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April, 2013

Benefits of becoming a producer: We strive to provide leading edge technology tools to improve the management of our business techniques so we can deliver fast and accurate service. Below is a list of "Key Benefits" offered to you and your customers.

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Wayne Hooper Reports: Questions on Homeowners Coverage

By Wayne Hooper

What reason in the Georgia laws could a carrier use to nonrenew a Homeowner policy if they did not have the auto coverage? Wayne Hooper - Editor for the FYI EXPRESS ANSWERED BY Don Cameron

20257 5

Jan 4 2013 9:48AM

No, there is no such directive. It is illegal for an insurance company to non-renew the policy merely and only because the insured will not carry companion business. The reasons for non-renewal are contained to OCGA 33-24-46.

This month I looked into some Homeowner questions based on a conversation with a personal Lines agent in the metro Atlanta area. She complained about how difficult it is to find a “Mono-line” homeowners carrier.

The major writers of Homeowners are requiring supporting coverage of an automobile policy. If a renewing Homeowner policy does not have a supporting auto policy, then at least one carrier is ordering inspection reports inside and outside the home. If the customer balks at allowing the inspectors into their home the policy is non-renewed for failure to cooperate or increase in hazard, both grounds for a non-renewal.

I thought there had been a directive from the Ga. Department of Insurance, prohibiting the requirement of a supporting line, so I asked the department about it.

Question and Reply from the Georgia Insurance Department about requiring supporting coverage to write a Homeowners policy

I have a Property Insurance question concerning my home

20257 4

Jan 4 2013 9:45AM

Many Homeowner carriers are now requiring the insured's to write their auto with that carrier in order to get the Homeowner policy or they will nonrenew if the customer does not add the auto to support the Homeowners..

Did not the insurance department issue a directive many years ago against requiring one line of insurance to support another?

When shown the official DOI reply, the agent replied: "Oh, I know they can't do it that way, that is the reason for all of the inspections, inside and out! That way, if they fail to comply with the inspection, then they will have a "right" to cancel, or if they find something they don't like, then that also gives them a way to cancel....getting around the commissioner!!!"

If you read OCGA 33-24-46 then you have an outline of the reasons a carrier can legally get off a homeowners policy at renewal.

I can tell you from my experience as an underwriter very few homeowners can stand up to an "inspection” if the carrier wants to get out of that market. I have seen non-renewals and new business terminations for: shrubbery needs trimming, toys in the yard, grass needs mowing, junk cars parked in the yard, dogs not fenced, gates not self-closing, pools not fenced, dog appears vicious, gutters need cleaning, roof is old, house has metal siding, roof is metal, 2 or more losses in three years and last but not least the insured refused to answer my questions.

I don't even want to get into questions of redlining, which everyone knows is done either by agency appointment, rates, underwriting, and value of the dwelling or age of the dwelling.

It's one of those dirty little secrets of the P&C business as to how the rules and rates are structured to avoid the laws against discrimination.

Questions about vacant or unoccupied Homeowner Dwellings Continued on page 16

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April, 2013

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Wayne Hooper Reports …

Continued from page 14 The "Independent Insurance Agents and Broker of America" virtual online University put out a 29 page white paper on the Homeowner 3's wording where the policy use of the words "you" and "residence" are explored in detail, with court case references. This paragraph from that paper best defines that article.

"According to some interpretations and courts, if ‘you’ no longer reside in the dwelling, coverage on that structure immediately terminates. If you never resided in the dwelling, coverage may never have attached. This gives rise to a number of circumstances that, if this school of thought is correct, may lead to a catastrophic coverage gap for such homeowners. This is evidenced by both court decisions and real life insurance claim denials."

I referred this article to the underwriting department of at least three major Homeowner carriers, specifically asking if a named insured (You) was suddenly hospitalized and unable to return home did they retain their coverage. All of the carriers declined to go on record or put their comments in writing but all said the coverage would be "determined by the claims adjustor" who would look into the circumstances before determining coverage. .

I did get a reply from David Helms, CPCU, CLU, a longtime friend and former colleague whom I thought was worth sharing on this subject. .

"As an individual not speaking for the organization, I find this question to be interesting and it raises a number of issues in terms of the contractual language and potential adverse impact on unwary policyholders.

If we examine the ISO HO-3 2000 edition as a sample, you are correct in that “residence premises” can be interpreted to mean the one family dwelling shown in the declarations where you reside. The term “you” refers to the named insured shown in the declarations or resident spouse.

Since this is a dwelling coverage issue we then look to the following: Section I – Property Coverages A. Coverage A – Dwelling 1. We cover: a. The dwelling on the “residence premises” shown in the declarations, including structures attached to the dwelling.

As you can see, it appears that coverage for the dwelling is contingent upon it being located on a parcel of land meeting the definition of “residence premises.”

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If neither the named insured shown in the declarations or resident spouse reside there, I do not see that the dwelling can be located on the “residence premises.”

Although the ISO HO eligibility guidelines intend for owner-occupancy of such dwellings in question, we both know that eligibility guidelines are not incorporated into the insurance contract.

In a contract of adhesion, we construe any ambiguities in favor of the insured (contra proferentem.)

As such, how we define the term reside would also have to be considered.

In addition, how a “you” not residing in the dwelling affects the risk should be measured. Does this present a material increase in the risk or is it just incidental?

Tenant occupancy will generally increase the hazard, but what about a responsible house sitter occupying the dwelling over an extended period of time?

Finally, in some states the courts recognize the Doctrine of Reasonable Expectations which can reform insurance contracts to provide coverage although the literal language of the form provides none.

“Just some random thoughts of an insurance guy."

David's comments track the points made in the white paper, which argues both sides of the question without a definitive answer citing court cases going each way. I found the problem on reading the referenced court cases' which stretched from 1894 to present, is the definitions changed over the years. The wording of who is the NAMED INSURED has changed to YOU in recent years, that simple change cut out family members who counted for occupancy in the past.

To avoid coverage questions, make sure the Named Insured (YOU) understands that any change in his or her residency may void the coverage unless agreed to “In Writing" by the carrier, otherwise it becomes a questionable coverage situation which is best avoided.

I feel the more agents bring the questionable underwriting procedures to light in the Homeowner's and Auto market the better our industry will be served. Many underwriters think that because it is "our company's procedure", it's OK; there will not be legal issues.

Carriers often make panicky market decisions based on faulty information. I worked with a direct writing carrier in the 70's who terminated all customers with At Fault or Not At Fault accidents within three years because of a down turn in the stock market wiped out their investment income. (25% of their total book was terminated) They fired all of their sales staff with less than 5 years’ service. A year later we accepted those same risks with At Fault accidents trying to build market share again once the stock market recovered.

Continued on page 18 Page 16

April, 2013

In Partnership with Wants to help you find E&O coverage that best fits the needs of your agency.

Call AccuAuto Sales at 1-800-229-2009, ext. 3 or email sales@accuauto.net for more information.

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AccuAgents.com

Wayne Hooper Reports …

This gives rise to a number of circumstances that, if this school of thought is correct, may lead to a catastrophic coverage gap for such homeowners. This is evidenced by both court decisions and real life insurance claim denials.

Continued from page 16 I learned then it's all about profit. If the carrier is profitable, all is right with the world! If that profitability slips then the blame game begins. It must be the insured's or the agent's fault is the simple solution to a complex problem.

For example, an elderly widow was admitted to a convalescence home to recuperate from some health problems in order to be able to return home and to selfsufficiency. Her home remained her legal address and her nonresident children cared for the home, though no one lived there during her presumably temporary stay at the health care facility. After a few months, her home was totally destroyed by fire. The insurance company denied the claim on the house on the basis that she did not reside there at the time of loss.

I think agency underwriting is the most bogus form of redlining a carrier can do! If a risk fits the carriers guidelines, reports are ordered and approved, then it cannot be the agent's fault if that line of business is unprofitable. The "Law of large numbers" requires the carrier to measure results at a statistic relevant level.

It cannot be done at the agency level, the numbers are simply too small to be valid.

As another example, a home was damaged by Hurricane Gustav. The homeowners had temporarily vacated the premises during remodeling though they visited the premises daily. The insurer denied the claim because the insureds were not residing there at the time of loss.

That's my opinion and I'm sticking to it!

Wayne Hooper - Industry Editor Questions, comments or suggestions for future topics? Send them to wayne@fyiexpress.com

In one other example, the purchaser of a home renovated it before moving in. During the renovations, the house suffered a six-figure fire loss. The insurance company denied the claim because the insured had never resided in the house prior to the loss.

Where You Reside Catastrophic Homeowners Policy ‘Exclusion’ You may wish to read the entire white paper at http://www.independentagent.com/Education/VU/Pages/f eatured-resources/reside/where-you-reside.aspx We encourage the use of this information to inform agents, insurers, regulators, media, and consumers, and, as warranted, to seek resolution of this potential problem.

Most homeowners policies provide coverage for the dwelling on the “residence premises.” The term “residence premises” is typically defined to include the dwelling “where you reside.” The question is, what happens if you no longer (or never) reside(d) there?

The cost to rebuild the average home in the United States is somewhere in the neighborhood of $250,000.

For most Americans, this is by far their most valuable asset. In order to protect that asset from loss, most consumers insure the replacement cost of their homes with a homeowners policy. Most homeowners policies cover the dwelling “where ‘you’ reside.”

According to some interpretations and courts, if ‘you’ no longer reside in the dwelling, coverage on that structure immediately terminates. If you never resided in the dwelling, coverage may never have attached.

AccuAgents

Each of these is a real-life claim where losses to homes were denied based on a lack of residency, to the complete surprise to the insured and the agent. There is no specific exclusion for damage to a home in most homeowners policies due to a lack of residency, yet there have been court cases where such denials were upheld. Our research has uncovered nine court cases that have concurred with similar claim denials (along with an equal number of judicial decisions overturning claim denials).

A nonresidency situation can arise unexpectedly due to illness or death, military deployment, foreclosures, relocations, etc. Even when it arises due to a routine sale, temporary rental, occupancy by a family member, divorce or separation, or transfer of ownership to a trust, given that there is no clear exclusion for most losses in most homeowners policies, most agents and virtually all insureds presume there is no coverage problem.

The purpose of the full white paper is to explore sixteen (16) very common “nonresidency” situations, the rationale for/against coverage, and potential solutions in jurisdictions where a coverage gap is presented. It is up to the reader to decide the best course of action in remedying these types of situations.

We encourage the use of this information to inform agents, insurers, regulators, media, and consumers, and, as warranted, to seek resolution of this potential problem.

Page 18

April, 2013

www.underwritersinsider.com

9

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AccuAgents.com

Where can you use a QR Code?

Once the QR Code is scanned, it is translated into actionable information, such as a text message or opening a mobile web page.

1. Flyers or posters - to help promote an event or an upcoming 'gig'; share info on your site they wouldn't get on a normal flyer (e.g. video) 2. Stickers or a tee-shirt - novelty is key; make them curious and they will scan...

3. Invitations - for example share driving directions, additional info, photos, or allow RSVPs...

4. Business cards - promote yourself more memorably than you would with a simple email address, phone number, and a title.

5. Marketing materials - such as brochures, advertisements, in-office displays, window decals, etc.

6.

Here’s a sample:

AccuAgents

Think up your own ideas...

7. You’ll learn all about QR Codes (& much more) at the “Localize, Mobilize, Socialize” CE seminar th on Hilton Head Island, SC on May 17 .

Page 20

April, 2013

SM

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Mark Your Calendars!

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More information at www.AgentsFirst.org

FYI Express’ Insurance Expo 2013 July 11-13, 2013 Marriott Gwinnett Place, Duluth GA 3 days of Edu-Tainment for Georgia Insurance Industry plus the largest Insurance Industry Trade Fair in the Southeast.

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We’ve Got South Carolina Covered.

Aiken.................. 3915 W. Richland Ave................... 803 641-0135

Greer.................. 304 E. Frontage Rd....................... 864 968-9452

Anderson........... 4112 Clemson Blvd........................ 864 964-9211

500 Aviation Pkwy., Ste. 24.......... 864 968-9452

222 W. Whitner St.......................... 864 375-0046

Hartsville........... 1109 S. Fifth St., Ste. G................. 843 857-9088

Beaufort............. 2635 Boundary St.......................... 843 524-0494

Hilton Head....... 140-A Beach City Rd..................... 843 689-9910

Beech Island..... 5425 Jefferson Davis Hwy............. 803 819-5378

Irmo.................... 7714 Broad River Rd..................... 803 407-0292

Bluffton.............. 22 Plantation Park Dr., #104.......... 843 706-2660

Lake City........... 140 W. Main St.............................. 843 394-5330

Cayce................. 3000 Aviation Way......................... 803 822-2262

Lexington.......... 5184 Sunset Blvd.......................... 803 951-1863

Charleston......... 398 Meeting St............................... 843 723-6215

Lugoff................ 610 Hwy. 1 South, Ste. J............... 803 438-0990

1500 Savannah Hwy...................... 843 769-5833

Marion................ 2510 E. Hwy. 76............................. 843 275-7116

2004 Savannah Hwy...................... 843 556-7889

Mauldin.............. 205 N. Main St............................... 864 297-0089

Columbia........... 1436 Taylor St................................ 803 748-9214

Moncks Corner.104 N. Hwy. 52.............................. 843 761-6557

3014 Two Notch Rd....................... 803 786-6957

Mt. Pleasant...... 1145 Johnny Dodd Blvd., Ste. E.....843 881-2489

7201 1/2 Garners Ferry Rd............ 803 776-9461

Myrtle Beach..... 1377 Hwy. 501............................... 843 626-4277

3700 Fernandina Rd...................... 803 750-6703

1012 Broad River Rd..................... 803 750-9764

N. Charleston.... 7291 Cross County Rd.................. 843 552-2150

6143 St. Andrews Rd..................... 803 772-7766

8701 Rivers Ave., Unit 102............ 843 572-8807

100 Fontaine Center Rd................ 803 333-9288

5757 Rivers Ave............................. 843 767-5460

10249 Two Notch Rd..................... 803 419-4319

N. Myrtle Beach.3401 Hwy. 17 South....................... 843 361-4410

10060 Two Notch Rd..................... 803 736-5113

Newberry........... 2004 Wilson Rd............................. 803 276-4564

2440 Savannah Hwy...................... 843 766-5160

Orangeburg....... 1624 St. Matthews Rd................... 803 534-0143

34810 Rental Car Ln..................... 843 767-1109

Seneca............... 204 Bypass 123..............................864 888-1115

Conway.............. 1793 Hwy. 501 East....................... 843 347-4026

Simpsonville..... 798 South St.................................. 864 962-9573

Simpsonville/Fountain Inn

1103 N. Main St............................. 864 862-1920

2393 Hwy 501 East....................... 843 369-7368

Easley................ 4020 Calhoun Memorial Hwy......... 864 269-2847 Florence............ 2115-C W. Evans St....................... 843 669-6309 Gaffney.............. 1234 W. Floyd Baker Blvd............. 864 489-6496 Georgetown...... 1051 N. Frasier St., Ste. 4............. 843 520-4281 Greenville.......... 1500 Laurens Rd........................... 864 233-8182

501 Buncombe St.......................... 864 242-4748

531 Woodruff Rd............................ 864 297-5579

1100 Jetport Rd............................. 843 916-0929

Spartanburg...... 238 E. Blackstock Rd.................... 864 576-6750

986 Asheville Hwy.......................... 864 542-1838

Summerville...... 1216 N. Main St., Unit E................ 843 871-1036 Sumter............... 21 E. Wesmark Dr.......................... 803 773-0550 West Columbia .1502 Charleston Hwy.................... 803 791-1984 Walterboro........ 608 Bells Hwy................................ 843 549-6514

Greenwood........ 1005 Montague Ave....................... 864 227-1396

Pick-up and drop-off service is subject to geographic and other restrictions. © 2011 Enterprise Rent-A-Car. B04584 02/11 MM

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