AIANC's STREET WISE - March 2013 by FYI Express

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

STREET WISE Alliance of Insurance Agents of NC

THE HIRING PROCESS – WHY MISTAKES ARE MADE In this edition THE HIRING PROCESS – ........... 1 WHY MISTAKES ARE MADE...... 1 AGENCY HELD HOSTAGE ................ 6 THE REAL REASON INSURANCE AGENTS FAIL TO SELL .................. 12 WAYNE HOOPER REPORTS: THINGS I LEARNED ABOUT COMMERCIAL LINES .......................................... 16 GET A COMPLIMENTARY WEBSITE & M ARKETING ASSESSMENT ............ 22 5 TIPS FOR RECRUITING GREAT PEOPLE ....................................... 24 GRASSROOTS & AGENT POWER ... 25 ARE YOUR INDEPENDENT CONTRACTORS REALLY EMPLOYEES? Q&A ...................... 26

By Al Diamond of Agency Consulting Group We lose a producer or key service employee or are convinced that we need a new person to move our business forward. We put the word out to our employees, to our carriers and to headhunters that we are looking and impatiently await results. We’ve heard that business is still soft and many people are out of work, but our phones and e-mail certainly don’t ring off the hook with candidates. We even try advertisements and on-line postings. Finally, we get a trickle of candidates. Most are neither qualified nor have the personalities to meet the needs of the job. We get frustrated and somewhat desperate when the work starts affecting our other employees and when the lack of production begins to affect our revenue or profit lines. We will address how to find producers and other employees in another venue. The key to locating quality employees for any positions is to identify the right personalities and is not a factor of experience.

Info at www.AccuAgents.com

AIANC’s STREET WISE

This article addresses a more insidious problem, poor selection habits. Many of us will lower our standards when stress and pressure builds because of the need of a person in a role in the agency. Page 1

I’ve heard many an agent tell me that they hired the first person that appeared to be an acceptable candidate – the ‘Warm Body Syndrome’. The thought process is that ‘maybe’ the person will work out. At least we have someone manning the desk or willing to be a producer for the agency. We have had the opportunity as consultants to see the results of these habits. They are not pretty. The candidates who are given the “opportunity” based on a single interview because it’s better to have someone than have no one at all usually prove to be mediocre employees at best. Some of us are lucky enough to hire people who are virtually intolerable. I know this sounds strange- but if you make an obvious mistake and the employee either doesn’t understand the job after convincing you that (s)he has had experience in a similar role, it is not difficult to face up to the problem and terminate the employee. Making a terrible mistake in employee selection is better than hiring the mediocre employee who spend his/her 37.5 hours every week to get a paycheck, doing as little as possible and spending more time socializing with the other employees (wasting their time) or playing on the computer. Continued on page 2

March, 2013

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

The Hiring Process Do not ask question that require a YES/NO answer. Every question should be ‘open-ended’. You are asking the questions to find out about the candidate.

Continued from page 1 A terrible mistake will be noticed and the situation resolved. The mediocre employee will drag down your business, potentially for years, until the situation becomes so impossible that you will take action.

Never interview in a bull-pen or someplace where others can overhear. Pick a quiet, private setting for the interview.

But this type of employee can be avoided by becoming better selectors and improving your hiring abilities. Remember, you are an insurance professional. Most agents have never been taught how to hire people and our staffing mistakes have proven that over and over again.

Explain to each candidate what the hiring process will be for your agency (explain that you use the Hiring Process Document and how you intend to send the document to complete for this purpose if you desire). This document should explain the steps you will use and will put the candidate at ease. It will explain the multiple interview process and the steps you will take if the candidate proves valuable enough to pursue.

Step One: Never hire on the first interview. Everyone looks good, dresses well and makes themselves presentable in a first impression situation. If you are a small agent and are the only decision-maker, I suggest to bring the candidate back at least two more times. If you have trusted managers, partners or employees, use them for subsequent interviews. Step Two: PREPARE. Have a list of interview questions (call or e-mail us (800 779 2430; info@agencyconsulting.com and we’ll send you our Interview Guide – a list of questions that will tell you a great deal about a candidate). You don’t have to ask every question on the first interview. AIANC’s STREET WISE

Step Three: Use an Assessment. There are a variety of assessment tools available to you that are focused on the industry. None are bad. Some are better than others. We use a well-known assessment tool see the A C G Hiring System in our website, www.agencyconsulting.com. Whichever assessment you use is a tool it is not the determining factor for the hire. You make a serious mistake if you simply opt in or out of a hire because of a test result. Continued on page 4 Page 2

March, 2013

Cal l t odayf oraquot eorus eouronl i ner at er sat www. SI Br ok er s . c om!

T r ans por t at i on

•Cont r act or s •Landscaper s •Lessor ’ sRi sk •Soci alSer vi ces •Habi t at i onal •VacantPr oper t i es ucker s •Tr

•Tr ucker s •Cont r act or s •Dr i verTr ai ni ng •Del i ver y •Li mos/ T axi s •SchoolBuses •Chur chVans

Pr oper t y

Gar age

•VacantPr oper t y •Deal er s •Habi t at i onal •Ser vi ceOper at i ons •Conveni enceSt or e •Gar agekeeper s •Rest aur ant / Bar / T aver n •Bui l der ’ sRi sk

Foracompl et el i stofpr oduct s,pl easevi si twww. SIBr oker s. com

8884 954 950 • POBox801 0| Gol ds bor o, NC27 534

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

You should have a Job Description that you can go over with the candidate describing the duties and expectations of the position. If the job is a sales job, you will cover the validation schedule within the expectations of the job. Call us if you would like to discuss our Producer Compensation Program that provides validations schedules for a variety of compensation programs for producers. Only finalize the offer to the candidate if they are amenable to the roles, goals and compensation that you are willing to offer. Negotiations are certainly possible, but you should NOT put yourself in the position of buying an employee at any cost. There is a limit to what you can expend and any employee must be able to give you value for the cost you project.

The Hiring Process Continued from page 2 However, the assessment you use should be testing the candidate’s personality against the traits needed for the job for which you are hiring. If you apply a wonderful service-oriented person to a producer’s assessment it will reflect poorly. Similarly, if you assess a great sales personality for a service job, that, too, should give terrible results. Call us if you want more information on assessment programs. Use the assessment only for candidates that pass your first interview screening. It is the device that will surface more questions if done properly that you will use in subsequent interviews.

Hiring people is a process. Few of us savor adding or replacing staff members because of the risk involved. We have ways of perfecting the risk for either producer or non-producer employees and would be happy to discuss your particular situation. All you have to do is contact us. But the key to your successful hiring of long term employees is the care you take in the hiring process. Every one of us is tempted to hire based on liking a candidate when they appear before us. It is much easier and a load off our minds if we interview the person, feel that they could work, and hire them expecting the best. But the cost of a bad hire can sometimes extend to two to three years of compensation for the mediocre employee, lower productivity and potential loss of existing employees and, sometimes, serious side effects to our clients and underwriters.

Step Four: Have someone else interview, but make sure that you give the interviewer both questions to ask and their objectives – things you want them to find out about the candidate in their interview. Step Five: Assuming that the candidate passes your initial interview, scores well on whichever assessment you choose, is acceptable to the other interviewers you use and/or still impresses you in your own subsequent interviews, you are ready for the OFFER. During your own interview process you should have determined the candidate’s compensation expectations or needs, if any. During this meeting, you should lay out how you pay your employees in the category for which you are interviewing. Presumably, if the candidate is far ahead of your compensation expectations (they expect $75,000 when you are prepared for a $45,000 employee) you will never reach this stage. You would have determined that the candidate’s needs and yours don’t mesh.

Be careful. Follow the steps. You will be much more likely to hire ‘keepers’ than ‘warm bodies’. Agency Consulting Group, Inc. THE PIPELINE | THE HIRING PROCESS - WHY MISTAKES ARE MADE | Copyright © 2013 Agency Consulting Group, Inc. Agency Consulting Group, Inc. | 800-779-2430 | Visit The Pipeline | Subscribe to The Pipeline

Take Online Card and E-Check Payments UFor Free!U Your Customers want to pay online anytime. When they pay at your carrier's site you lose the ability to stay in front of them, build an email list and cross sell. Our service lets you take online payments, send electronic invoices with a link to pay online, take card payments over the phone and take card payments in your office All at no cost to you. As more of your customers pay online and with credit and debit cards, we give you the tools to provide the service they expect.

www.simplyeasierpayments.com To get started call Calvin or Strickland at 800-768-0907 AIANC’s STREET WISE

Page 4

March, 2013

This QR Code will load the SehMobile phone app, which provides contact information for customer support as well as other features.

Contact SehMobile at 800-768-0907 or duke@sehhey.com Go to www.sehmobile.com & Use Promo Code: AIANC

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

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! Agents using InsureSign are currently signing over 1700 new applications and renewals per month using our service. That number is growing rapidly month by month. Get signed up with InsureSign now and erase the advantage of direct writers and other competition.

Check out the demo link at: www.insuresign.com/demo To protect the innocent, I’m changing the names and combining details from five different real scenarios to make this fictionalized case in point:

Agency Held Hostage Most agency owners think they own their business, but owning and controlling are two different things. You may technically be the proprietor by investing all of the money and signing for all of the liabilities and debts but you don’t really own the business if you are being held hostage by a key employee. It happens more often than you think.

Ricky, one of the insurance industry’s “Movers & Shakers” was recently telling me that his sales are booming but the debts are piling up. He will soon have to move more of his retirement nest egg into the agency’s bank account. I asked several questions and came up with the following scenario:

The “Hostage Taker” may be your office manager of long standing. He / She may be a hot salesperson who threatens to leave and take policyholders if you don’t cough up the big bucks or acquiesce to their whims.

Lucy, his longtime employee, took over as agency manager two and a half years ago and allowed my friend to spend more time on other interests. Now Lucy controls every aspect of the operation – from hiring and training employees to choosing the carriers sold through the agency. She is also the person most visible to the customers who usually insist upon her personal service on their accounts.

Many agency owners were at one time the agency’s “Hotshot Salesperson” mainly because they were the only employee! As business grew the agency owner became more involved with other tasks and less involved in the day-to-day routine. More often than not, agency owners become hostages simply because they fail to recognize what’s happening in the agency or fail to act on the problems they do recognize.

Lucy doesn’t concern herself with having a profitable business, however. My friend told me that he tried in vain to get Lucy to focus on the financial problems. Continued on page 8

AIANC’s STREET WISE

Page 6

March, 2013

Sell More. Renew More. ProďŹ t More.

We made a great decision when we chose The Agency Advantage for our agency management so ware. Their streamlined architecture and personalized training helped us break free from the confusion and complexity of our expensive mega system.

Find out why so many agencies are choosing The Agency Advantage.

Call us at the number below or visit our website for more informa on. (678) 714-1120 (800) 833-5179

www.agencyadvantage.com

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

If you don’t have good records, it’s because you don’t know how to keep them or you don’t want them. In any case, I knew my friend shouldn’t be entrusting his money to someone who couldn’t account for what she was doing with it.

Agency Held Hostage Continued from page 6 Lucy had reluctantly agreed to allow my friend to bring in an agency consultant. It didn’t take long for the consultant to find that the agency was grossly overstaffed and that Lucy’ favorite carrier paid such little commission that the agency lost money on every sale. Lucy instructed the staff to “try to place” the business with higher commission carriers but went back to the low-commission carrier after a couple of months. She refused to reduce payroll because “Everyone is overworked as it is!” She insisted on running the agency her way, but her way was putting my friend deeper in debt.

On the other hand, I could also see that the office was potentially a moneymaking proposition. The phones were ringing, folks were coming into the office in steady streams and most were buying insurance on the spot. In fact, if Lucy had cut back the payroll as the consultant had suggested, my friend could have paid all of his bills and still had a modest profit. Undoubtedly, the money was being wasted in other ways as well. Tighter controls, cutting out the waste and plugging the cash drain would turn this office around in a hurry!

My friend asked me what I thought. I said that before giving my opinion I’d like to visit the office.

I explained all of that to Ricky and told him he had two options. One, he could sell the business at a fire sale price since his records were so inadequate. Or two, he could fire Lucy and start running his office once again. Letting the situation continue was not a viable option. Any money invested from his retirement account would be lost.

Ricky was at the office when I arrived and introduced me to Lucy and the rest of the staff. Quick glances around the office told me what I needed to know. The office was a disaster. Applications, checks and unopened envelopes were on every desk. The Profit & Loss Statements provided by Lucy did not provide any useful information.

Not investing more money would soon result in bounced agency checks; loss of markets and eventually the office would close.

Obviously, the office wasn’t being run in a business fashion. How can anyone make sound business decisions if they don’t have good records?

Continued on page 10

PERSONAL AND COMMERCIAL LINES PREMIUM FINANCING MADE BETTER BY



No automated phone system – when you call, we answer.



Solid foundation – in premium financing since 1969.



One company to handle all your premium financing needs: Personal Auto, Commercial Auto, Worker’s Compensation, Homeowners, General Liability, and more.



Fast and simple agent quoting software, with full upload / download capability for contracts, payments, and account information.



Full integration available with Jenesis Agency Management software.

We view your agency as a partner, and will work hard to make sure you think of us the same way.

Please contact us for more information:

800-233-2036 or Mail@MPPOnline.com AIANC’s STREET WISE

Page 8

March, 2013

Security, Accuracy & Reliability Focus on what you do best! Selling insurance. Let us focus on what we do best! Ensuring your financial peace of mind.

Give Rosemary A Lambert, CPA, PA a call. Whether you need daily financial guidance, or yearly tax planning services, our professional staff will work with you to customize a plan that aligns with the goals of your agency. Our firm understands the need for absolute confidentiality. We will ensure the security of your financial systems and provide you with accurate and reliable data. With more than 20 years in the business, Rosemary A Lambert has extensive experience in accounting for the insurance industry.

704704-855855-1509 WWW.ROSEMARYALAMBERTCPA.COM Closeout Services Include: ∗ ∗ ∗ ∗ ∗ ∗

Daily database management reports Company draft verifications File uploads Finance company integration Reconcile bank account(s) weekly Premium difference reconciliation

Other Financial Services Include: Full-service payroll functions ∗ Bill pay services ∗ Financial statement compilation ∗ Corporate, partnership & personal tax returns ∗ Business consultation ∗

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

Agency Held Hostage Continued from page 8 Ricky was stunned by my advice. He wasn’t ready to sell but he wasn’t ready to fire Lucy. How could the office even survive without his longtime employee, the favorite of most of his customers? Would the rest of the staff, her personal friends, quit in protest? Couldn’t he try to get Lucy to change instead? I knew the office would survive without Lucy as well as I knew she would not be willing to change. Ricky had to be convinced. I suggested Ricky ponder the situation for a couple of weeks but try a little experiment in the meantime. First, drop in the office one day unannounced an hour or so after it opened. I told him that he would find one or more employees not at the office even though he’s paying for a whole day’s work. I told him that the other employees would make excuses for the missing employee. I also told him that if he goes back a couple of days later unannounced, he’d find someone else wouldn’t be there. I told him to take over a simple task such as opening the mail for one week. He replied that Lucy would call him the highest-paid clerk in the business and suggest he spend his time on more important tasks. My ulterior motives were twofold. In the first instance, I wanted Ricky to see how his money was being squandered. In the second, I wanted him to see that Lucy would resist his efforts to ferret out the mysterious money drain.

Further investigation revealed that the staff was uploading cash payments to carriers and pocketing the money without recording it in the daily agency management system. Lucy herself was paying some of her household bills out of the agency and coding them to office expenses on the P&L statement. Ricky fired them all on the spot. Yes, he had to put in a lot of overtime for a while but soon he hired (& personally trained) a new staff. He spot-checks all activity in the agency on an unannounced regularity. Profit has returned and Ricky is once again truly an owner at last. His only regret is that he hadn’t acted sooner, which is almost always the case. There is never a good business reason to let an employee hold an agency hostage.

Attention: Insurance Companies, MGA’s, Premium Finance Companies & Insurance Industry Vendors: Check out the rates for the most cost effective method of keeping your message in front of your customers …

Sad to say, I was right on both counts. Employees covered for each other and came and went as they pleased. Ricky found the employees abused his kindness, abused his phones and Internet, misfiled, couldn’t quote, and never completed assignments. But Ricky still wasn’t convinced to fire them. He was scared to say anything for fear they would quit and he wouldn’t be able to replace them. The folks he had interviewed wanted more salary and benefits that he felt he could not afford. My advice was firm. Fire them as soon as possible. What kind of life is it when the folks around you make you miserable? You hate going to work. You’re living in fear. He deserved better and would feel better as soon as he made the decision to let them go. Replacing them would be a lot easier than he could imagine. If he couldn’t offer more money or benefits, possibly he could offer an alternative such as a flexible work schedule. But the straw that broke the camel’s back came sooner than he could imagine.

The Independent Insurance Agent. Ad Size

Monthly

Pre-Pay 6 Issues

Full Page (7.5” x 10”)

$275.00

$1450.00

Half - Page (7.5” x 5”)

$150.00

$800.00

Quarter-Page (3.75” x 5”)

$75.00

$375.00

1/8 - Page (3.75” x 2.5”)

$50.00

$250.00

Questions? Contact Eddie K. Emmett at eddie@fyiexpress.com or (770) 312-2342. HU

Ricky’s presence in the agency uncovered where the money was going. He was opening envelopes as suggested and decided to reconcile the bank statement.

AIANC’s STREET WISE

Page 10

March, 2013

U.S. Insurance Services 800-874-1738

American Reliable Insurance Company’s

New North & South Carolina Motorcycle, ATV & UTV Program Now Available! Enhancements     

Direct Bill –Low down payments with 2-pay, 4-pay or 11-pay plans available (no EFT requirement) Liability and Comp Only Coverage available Flexible Deductible Options - select comp & collision deductibles right for your customer $3,000 Accessories Coverage included with purchase of OTC (Other Than Collision) coverage Utility Vehicle Coverage (ex. Polaris Ranger, Yamaha Rhino) available

Discounts           

Reliable Driver (clean driving record last 3 yrs) Paid in Full Discount Multi Policy riders with other Assurant or American Reliable policies qualify (mobile home, flood, renters, boat, jet ski, commercial, health) Motorcycle Endorsement (riders with a motorcycle endorsement on drivers license) Homeowner (home, condo or mobile home owners) Prior Proof – Riders with prior proof of insurance within the last 12 months Motorcycle Association (i.e. HOG, Gold Wing, Christian Bikers) Theft Deterrent Device (LoJack, GPS, Audible Alarm) Tier Level Multi-Unit Discount Motorcycle Safety Course 10% (basic, intermediate or advanced license) Renewal Discount

For questions and new appointments, contact Blair Fox. blair.fox@assurant.com A FL 1020 0113

904-687-3155

PO BOX 47000 ▪ Jacksonville, FL 32247-7000 ▪ Toll Free 800-874-1738 ▪ Fax 800-342-9156 ▪ http://preferredagent.assurant.com

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

The bottom line: Jim was comfortable and he had absolutely no motivation to take on the world and chase down business. That’s why he was running out at five and had only sold one policy in six months to… you guessed it… a family member.

The REAL Reason Insurance Agents Fail to Sell by John Chapin You can give an agent all the sales skills training in the world. You can lay everything out and tell them exactly what to say and do in each and every situation and yet, if they have either of the two afflictions I’ll talk about here, no amount of sales or product training will help them. When an insurance agent fails over the long haul, it is always a failure in activity, a failure to do the things necessary for success. Below are the two reasons agents ultimately fail to do the necessary work and, in the end, fail to sell, along with some ideas on what you can do about it. Reason #1: They’re scared. At the request of an agency owner, I sat down with an agent to listen to her make some prospecting calls. He was concerned because she hadn’t sold a single policy in five months. When she picked up the phone, she began to shake with fear. She then put down the phone and said, “I can’t, I just can’t do it! Not with you sitting here!” I offered to stand outside the door. When that didn’t work, I told her she could record the calls and I’d listen to them afterwards. She then got up, marched into the agency owner’s office and said, “This isn’t going to work! I quit!” Whatever the fear, be it fear of rejection or the fear of being yelled at or hung up on, all fears lead to extraordinary effort to avoid doing the things necessary to be successful. They all leave the agent frozen and unable to consistently do what needs to be done. Reason #2: They’re comfortable. An agency owner recently said to me, “When the clock hits five, Jim runs out of the office like a scalded cat!” After a couple of questions it became apparent as to why. Jim was fresh out of college with no student loans, he lived at home, his parents had bought him a new car and they were also paying all his bills. Jim’s base pay was $650 per week plus benefits. That was more money than Jim had seen in his life, probably more than his buddies were making, and ultimately it was more than enough beer money. AIANC’s STREET WISE

How to move agents out of their fear and comfort zones: First, it’s extremely important to have a good working environment that is conducive to doing business and supports the agent. This includes proper incentive and recognition plans, good training, good support people, and an office where other producers are producing and everyone is professional, generally happy, gets along, and everyone is treated with respect. Second, it’s imperative that you have strict standards and measurements of success for each agent and that they are measured against those every 90 days. Each agent needs to have reasonable but challenging goals and objectives. It’s also important that you create these goals and objectives with the agent and you both agree they are attainable. Agents should be pushed out of their comfort zone but they have to believe they can do what you’re asking of them. Each agent needs to be held accountable. You must hold their feet to the fire. If an agent does not hit their 90-day goals and objectives, you need to find out why, make the necessary changes and adjustments, and then review these with the agent in another 30 days to see where they’re at. If they are not hitting their goals, look at their daily activity and determine the problem. If they are simply not doing the necessary activities, you have to introduce the “fear” of losing their job if they don’t get to work. This will move most of your fearful and comfortable agents either to action or out the door. If they don’t move, and they continue to miss their numbers and skirt the necessary work, then you have to put your foot down and move them out the door yourself. Keeping these people around will kill morale, cause you major headaches, and at the end of the day, you’re not doing yourself or them any favors. It’s time for them to go find themselves… somewhere other than at your company. Continued on page 14

Page 12

March, 2013

We open doors to more sales! Insurance House has the expertise to help you grow your personal and commercial lines of business. We offer exceptional coverage at competitive prices which gives your business more opportunity. Call Us Today! Atlanta, GA Branch: 770.952.0080 Durham, NC Branch: 919.383.9439 Silver Spring, MD Branch: 301.439.4700

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

The REAL Reason Insurance Agents Fail to Sell Continued from page 12 Remember that each individual is motivated differently. Most are motivated by money, other incentives and gifts, but people also like recognition and appreciation. Let them know through your words and actions that you care about them, support them, and you want them to be successful. If you are the failing agent, here’s what to do: Take 100% responsibility for your life and truly commit to your job. Let your boss know you’re on board and you’re going to do whatever it takes to be successful and ask for his or her help. Get disciplined, face your fears, and get comfortable being uncomfortable. You simply must get yourself to do the necessary activities whether or not you feel like it, whether or not you’re scared, and whether or not you’re comfortable. Find your motivation. Why must you be successful? What are the benefits if you succeed and the disadvantages or pain if you fail? If you have powerful enough reasons WHY you have to succeed, you will.

AIANC’s STREET WISE

You control your own success or failure. It has nothing to do with the economy, your parents, or that bad break in high school, at the end of the day it comes down to you. For access to John Chapin’s free monthly newsletter, visit John's website at http://www.completeselling.com John is an award-winning sales speaker, trainer and coach, number one sales rep in three industries, and author of the gold-medal winning "Sales Encyclopedia". For permission to reprint, or if you have sales questions, e-mail: johnchapin@completeselling.com. John Chapin Complete Selling, Inc. Helping you find and get all the business you want Cell: 508-243-7359 johnchapin@completeselling.com www.completeselling.com LINKEDIN: once logged in find me under: johnchapin1 FACEBOOK: http://www.facebook.com/johnjchapin TWITTER: http://twitter.com/johnjchapin # 1 Sales Rep in 3 industries, Author of the gold-medal winning SALES ENCYCLOPEDIA - The most comprehensive "how-to" guide on selling.

Page 14

March, 2013

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

Wayne Hooper Reports: Things I Learned about Commercial Lines By Wayne Hooper

The paper app has gone away, so your computer and printer are critical. You must have a good one. The printer is not where you want to cut corners. It is also important to have a backup printer and extra supplies on hand when using a network setup. Printer problems are production problems. 3. Standard Carriers have great Business Owners policies (BOP) and excellent rates, but they reserve and protect these programs with underwriting restrictions requiring the customer to be in business for three years, documenting with loss runs showing three years of continuous coverage.

I retired in October as a company marketing rep after a long career focused on personal lines. In my various career jobs, I enjoyed being a commercial lines producer during the boom years in Georgia. Since I have an underlying retirement income, I thought I would go back into the Commercial lines market to write business on a part time basis. To me, personal lines vs. commercial lines are like the difference between hunting squirrels or big game. You can eat regularly with Squirrels, but the big game insurance hunter gets an ego boost when he lands a big account. I found the market place has greatly changed from the good ole days. You can starve to death starting out as a Commercial lines agent without other product lines to sell unless you land the mega account immediately. (I did that once!) I also found you can't do commercial lines part time, it's a time hog if you do it correctly. The following are old lessons, I had to learn again. Most of you know these, but a few may not which is why i mention them to the FYI Express readers. 1. You can't land a large account without competitive carriers, so I affiliated with an agency with good "A" rated carriers. I had to get licensed, take webinar training and learn the carrier’s quirks which took several months in the holiday period. (No money earned)

When I started in the insurance business the old timers had a saying which is almost meaningless in our plastic society, but it went. “Oh yes, he’ll write the business on a Fire policy covering pig iron under water". To translate this without the history, this means the company won't reject a risk, but they will only allow coverage when it is impossible to have a loss. Some of the underwriting on the BOP and commercial programs seems to reflect this very old concept. 4. The Excess and Surplus (E&S) lines underwriters in Managing General Agencies are an excellent source for writing the unusual or startup businesses. They can be very flexible in custom designing a program for a customer. The downside is they usually take longer to do a quote because in most cases the process is not as automated as personal lines. The E&S pricing is usually higher than a standard carrier filed program as it includes cost for the agent's commission, MGA commission, Taxes and fees plus the actual premium. Having said the MGA's are usually higher, I have found they can be very competitive on large specialized risk if it is a target market such the trucking industry or construction firms where there is a lot of premium involved. It is important to develop a personal relationship with at least one E&S underwriter with several MGA’s because they may have access to different carriers, one of which might love the particular risk you need quoted. E&S underwriters move around so keep track as to where they go if they leave your favorite MGA. You can't have too many friends in E&S market but you may find it hard to send business to all of them.

2. You need good agency management software 5. The best customers rarely call shopping for a to quickly quote and service commercial lines. The quote at renewal. You must find them through software should provide you with ACCORD forms and advertising, websites, phone calls and cold calls. allow you to quickly issue Certificates of Insurance. Our Establishing a follow up list on expirations is critical to agency has a full time employee dedicated to issuing keeping your production pipeline full. In my short time in endorsements and Certificates of Insurance, it's that the market, I'm starting to get referrals from my contacts, important. This is also the hidden cost in servicing some which is also part of my marketing plan. lines of commercial business such as a plumber or electrician who might require hundreds of certificates of Continued on page 18 insurance. AIANC’s STREET WISE Page 16 March, 2013

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

Things I Learned about Commercial Lines Continued from page 16 It may be politically incorrect to say this, but I have found that customers from cultures where the price is haggled in an open market place see insurance as a commodity they can haggle over. They appear to believe the agent has greater control over the pricing than we do. This idea is sometimes reinforced by agents who reduce the coverage to hit a target price without advising the customer of the changes. My philosophy is being honest and truthful in dealing with the customer. If I cannot improve on his coverage, the pricing or the carrier, I'll advise him to stay where he is insured, but call me if anything changes. I recently did that on an alternator/generator repair shop that had an excellent program that I could not touch without reducing his coverage. His shop did various other products and programs to stay afloat, such as modifying golf carts, which put him into a class my standard carriers, would not write. I didn't get the business but I made such an impression on him that before I left his business, we brainstormed on how he could develop a customized golf cart that would qualify as a licensed vehicle in Georgia, and then reviewed the problems of range and the ability to tackle steep grades. (Electric golf carts don't have transmissions.) You can meet some really interesting people writing commercial lines! 6. If you don't ask the question, you don't get the answer. The customer assumes what you don't know won't cost him, which is not always true. Commercial lines require you to ask questions that some producers might be uncomfortable asking, but it is, what it is. You can go straight off the application; use a check list or the open conversation method to gather the necessary information. I prefer having a check list as backup, but engage in an open ended conversation about the customer's history, the business and his expectations for the insurance quote. In that conversation, I’m getting his sales history, his Federal Tax ID, Loss history, how he feels about his current agent, his employee count and payroll, plus the normal application questions. I am also paying attention to his body language, eye movements, and tone of voice, office decorations and pictures. This allows me to decide on how accurate the information I'm gathering may be. These clues lead me into follow up questions on a subject I feel needs to be explored.

The trucking company could not afford the insurance needed for a contract with MACY's so it merged into another company to be under their insurance. The difference on this situation was i knew getting this quote what was the true situation rather than being blindsided when the loss history was discovered and it blew up. I recently added an APPLE IPAD to my sales call tools due to its excellent camera system. (You can also use your smart phone.) It really helps when you have a risk with multiple vehicles and drivers. I photograph the old policy information, the VIN’s and all the employee driver licenses. It makes the call go quickly when the information is on hand, plus it allows you to review the coverage later to make sure you have not missed a vital detail. You can also document the premises so you can go back and look it see if the building had sprinklers or a fire hazard you might have missed. The IPAD camera takes a 2 Mega pixel picture so it is possible to blow up an image to see very small details or read print at a distance. It appears to have a self-focusing ability on documents and print as little as foot away. (Apple can send the check for this advertisement to the FYI Express) 7. Workman's Comp. on a startup business will almost always go to the assigned risk (NCCI). I found the NCCI class codes are so out of date. I.e. it is easier to find a "blacksmith" code than a cell tower equipment installer. The cell equipment installer performs multiple functions so it gets multiple codes. Simple, right! I called about a Cell tower equipment installer to get a code where they make a small concrete pad in order to set the power box on it. The NCCI does not have a job code for cell tower so they split the code based on the percentage of different types of work performed. The making of the equipment pad for the phone involved digging a hole, one code, pouring the concrete into the hole, another code, setting the equipment on the pad, yet another code. Climbing the tower was the big ticket code! This detail breakdown actually saved the customer money but it was a painful process and highly subjective. The devil was in the details of the job, but you have to ask the questions to get the answers. The NCCI Workman’s comp. code book cost serious money to purchase, yet the codes are posted on the internet by various sources for free! Those codes not posted can be determined by phoning the NCCI and asking for the code.

I recently quoted a small appliance trucking and It is important to get setup with the NCCI by installation company where it was obvious the owner registering on their website before getting too deep into was lying about previous losses. He needed to get quoting workman's comp on a start businesses because insurance for a contract with MACY's to install they will not speak with you unless you can identify appliances. I made a call to his previous agent and yourself as a registered agent. found out he was being terminated for having 14 claims in three years, with losses well over $100,000. I got the proper quotes for the prospect, but at a much higher Continued on page 20 premium than his previous carrier. (MACY's required very high limits which was cost prohibitive for this small business with a poor loss history) AIANC’s STREET WISE Page 18 March, 2013

AN UNBEATABLE STARTING LINEUP, AND A VERY DEEP BENCH.

•

Rated # 1 for Customer Service Satisfaction

•

Years of Dedication to Independent Agencies

300

•

Over 300 years of combined Management and Staff Experience

For Appointment Information, please visit:

www.DiscoveryInsurance.com

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

Things I Learned about Commercial Lines Continued from page 18 8. It is better to specialize for initial training in target markets, due to the complexity of some of the more unusual jobs we find in modern society. Most standard carriers have target customer programs which are easy to use and quote. The down side is there maybe 10 other agents quoting the same carrier in the target market, that's where being “first-est with the mostest" counts. 9. Standard carriers have retreated into the square peg in the square hole mentality. Tradition risks such as a barbershop, might find great rates and coverage under a Business Owners policy (BOP) with a highly automated quoting function. The assumption appears to be that agent just bangs away on his keyboard capturing information on the phone without qualifying the risk. Several carriers pre-screen the quoting function with initial underwriting questions such as; has the customer been in business three years? Has he maintained coverage for three years? Any losses? The wrong answer stops the quote process, which I admit is good thing, but it fuels the specialty markets with the rejects. The Specialty Markets are highly flexible on difficult risks assuming the customer can handle the premium. This goes back to the original assumption in insurance that all risks are insurable subject to correct premium being charged and collected. i.e. “An arsonist set to burn up his house is insurable if the premium is set at the cost of the loss plus handling fees and profit, plus you get the premium before the loss." In the real world that never happens but it is the basic concept behind insurance, then comes the sharing of risks to lower the premium cost. The real trick is determining the correct premium. In summary, I am on a quest to learn all I can about the current Commercial lines market for fun, profit and the FYI EXPRESS. I hope to share some of my war stories of the more colorful characters and situations I meet along the way. Eddie and I will have a Commercial Lines Roundtable at the July EXPO where I hope to gather some experts from the E&S markets to discuss what is available and to answer product questions. Make plans to come and be with us! Wayne Hooper - Editor for the FYI EXPRESS (Editor’s note: Do you have any “War Stories” to share? Send them to wayne@fyiexpress.com, anonymously if you wish. We have yet to ever betray a confidence.)

AIANC’s STREET WISE

Pedro Castaneda, Area Sales Representative - East Coast Region for Superior Access Insurance Services, Inc. provided me with some great information on BOPs: We have found that many of the Personal Lines Agents we work with want to branch out to Commercial Lines. We've learned that many times an agent that specializes in Personal Lines has little to no experience with Commercial Lines. The lack of Commercial experience makes them hesitant to take that step over into the unfamiliar world of Commercial Lines. With that in mind, here's a basic introductory to the most common Small Commercial product, a Business Owner's Policy or BOP.

BOP - What Is It? A Business Owner's Policy (BOP) provides broad coverage for your client's small business. A Business Owner's Policy (BOP) is recommended for most small businesses, as it is often the most affordable way to obtain broad coverage. Combining both property and liability insurance, a BOP will cover a small business in the event of such things as property damage, suspended operations, or lawsuits resulting from bodily injury or property damage to others. A BOP policy is very similar to a Homeowner policy, combining two of the most critical coverages for a small business - Business Liability and Property. Business Liability coverage typically protects a business from claims for damages caused by employees, products and services. It also helps cover the cost of defense. It’s important to keep in mind that the type and amount of liability coverage needed may vary based on the type of business. While every business is unique, many businesses own or lease property that is vital to their day-to-day operations. In the event of a loss, property insurance not only provides coverage for damage to the insured buildings and furniture, but also for inventory, computers, tools and other property needed to keep the business running. Not every small business qualifies for a BOP. Factors like the type of business, the size of the premises, the number of employees, and annual revenue can also determine eligibility. Always refer to the carrier underwriting guidelines when determining if your client's small business is eligible for a BOP policy.

Page 20

Continued on page 22

March, 2013

Atlas Commercial Division Workers' Compensation products now available in your area! Workers' Compensation Underwriting Appetite The Atlas Commercial Division maintains a portfolio composed of classes that it believes provide the best opportunity for rate redundancy and profitability. Appetite includes: Amusement Park or Exhibition Operations Animal Shelters & Veterinarian Hospitals Artisan Contractors Auto Service Repair Barber / Beauty Shops Bars, Taverns & Nightclubs Building Material Dealers Building Operations Child Day Care Centers Convalescent or Nursing Homes

Country Club Farm Equipment Dealers Furniture Manufacturing & Assembly Gasoline Stations - Self Service & Convenience Store Grocery Store Hardware Stores Hospitals Hotel / Motel / Inn Bed and Breakfast Iron or Steel Scrap Dealers Janitorial

Landscaper Manufacturing Printers Property Management Restaurant / Deli Retirement Centers Swimming Pool Construction Tire Dealers Wallboard Installation Wholesale Distributors

Program Highlights Multiple "A" rated markets available Available in most states Competitive pricing structure Flexible payment plan options Lapses in coverage acceptable pursuant to carrier guidelines New ventures acceptable pursuant to carrier guidelines (some contractors excluded) Loss control / prevention services

About Atlas Commercial Division The Atlas Commercial Division is a division of Atlas General Insurance Services that offers a wide range of insurance solutions with a focus on small to medium- sized business throughout the nation. The Atlas Commercial Division offers workers' compensation, general liability and additional lines of coverage. The Atlas Commercial Division is committed to providing exceptional service and unique options for your clients.

Gaining an Appointment To become an appointed producing partner with the Atlas Commercial Division, please visit www.atlas.us.com/get-appointed for more information. You can also download the appointment application by clicking HERE. Commercial Division Contacts:

Garland Byrd, Vice President, Marketing, 865-719-7163 Jonathan Hooven, Operations Manager, 619-814-8907 Lowrey Young, Marketing Representative, 901-308-3387

To learn more about our products, visit us at www.atlas.us.com Submissions should be faxed to 619-814-8915, or click HERE for email submission instructions and other contact information. Questions? Need help with an account? Use this form (or just reply back and ask). 8954 Rio San Diego Drive, Ste 600, San Diego, CA92108 | Toll Free: 1-877-66-ATLAS We sent this email advertisement to !*EMAIL*!. Please reply with "Remove !*EMAIL*!" as the subject to stop future ads.

converted by Web2PDFConvert.com

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

This amount is documented in the loss cost/assigned risk rate filing circular (attached). I suspect that you will not want to print the entire circular, but you can scan for the information you need.

BOP - What Is It? Continued from page 20 The Hartford publishes a Business Owner's Playbook you may find helpful when working with your insureds to determine their insurance needs. The Playbook is too large for us to include in this email, but you can click here for a few pages with helpful conversation starters for you and your client during the various phases of their business' life cycle.

Listed below are the other states you asked about. Maximum minimum premiums for the assigned risk plans GA-$1500 AL-$1500

I am happy to share the entire Playbook with you, just let me know if you would like to receive the entire 44 page brochure via separate email. You can click here to request a copy, or give me a call at the number below. I hope you find this information helpful to your agency. I would love the opportunity to talk with you about your agency and understand how Superior Access can help you grow.

SC-$1000 NC-$1250 MS-$1500 FL-N/A-NCCI is not the plan administrator in Florida TX-N/A-NCCI is not the plan administrator in Texas Greg Quinn

PCastaneda@superioraccess.com

607-723-7878

www.SuperiorAccess.com

Editor’s note: the loss cost/assigned risk rate filing circular is a 43 page PDF. If you would like a copy, please send an e-mail request to Wayne@FYIExpress.com.

Wayne Hooper reports: WC Minimum Increase To: Gregory Quinn Subject: NCCI is increasing the minimum premium on the Worker's Comp to $1500 effective March 1, 2013 in Georgia Gregory, while speaking with an NCCI underwriter, he mentioned the new minimum premium will be $1500 in March. The FYI is an insurance newsletter for independent agents in the Southeast. Do you have an announcement of this change that I could publish or reprint in the FYI Express for our readers, which includes independent agents and companies who might write Workman's Comp. policies through the NCCI. . Does this increase apply to North or South Carolina, Virginia, Louisiana, Mississippi, Alabama, Florida or Texas? Thanks you for consideration. Wayne Hooper- Editor for Industry Relations FYI Express Wayne@FYIEXPRESS.com

Get a Complimentary Assessment

Marketing

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: • A full diagnostic opportunities to improve

Cell phone 678-296-6345

Website

your

website

and

• How your marketing compares against your competitors

Hi Wayne Spoke with one of our state relations folks on your question.

Send

eddie@fyiexpress.com

The maximum minimum premium applies only to the assigned risk plan.

AIANC’s STREET WISE

Page 22

March, 2013

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

5 Tips for Recruiting Great People Steve Anderson

Insurance organizations will have to replace over 50% of their current staff over the next 10 years – at least according to several presentations I have listened to over the last few months. Finding, recruiting, hiring, training, and then keeping new staff is perhaps one of the biggest strategic issues facing the insurance industry. Younger workers don’t seem to have a career in insurance at the top of their list of “fun” jobs. When the news broke recently that some companies were demanding Facebook login information from job applicants, people everywhere were horrified. Those who were employed, those who weren’t employed – even employers themselves – were antsy at the thought of corporate America demanding passwords to personal accounts. This example simply highlights how expectations of job applicants as well as employers have changed. Competition will become fierce for talented employees, making it more important than ever that you not scare away a great future employee by allowing preconceived notions to cloud your hiring judgment. Following are five tips to help you find and attract the very best and brightest to your organization: Don’t make unreasonable demands.  Most of today’s job seekers will find your demanding personal account passwords unreasonable. Just as you wouldn’t want existing employees to provide passwords to work accounts to those outside the workplace, you shouldn’t demand that your employees hand over passwords to personal accounts either. In fact, it's illegal in six states. I'm certain more will follow. AIANC’s STREET WISE

Don’t make snap judgments.  For several years employers have been searching social platforms for information on potential new employees. Job seekers were warned not to post wild party pictures or other inappropriate personal data publicly. Why? Because employers were making snap judgments about employees who might otherwise be dedicated, hardworking, career-minded individuals. But one bachelor party or a few old college pictures ruined it. Think about the hiring decisions you make and ensure they are based on all information and not some assumption you’ve made based on past experience. Give them a chance.  Over the past few years, many great employees have become unemployed. Don’t assume they are not good candidate material. In any job market, good employees are subject to layoffs, sudden termination, and even voluntary termination. Don’t assume if a candidate is not currently employed they are not a good fit for the organization. Don’t judge a book by its cover.  So your last job ad received 100 resumes and you’re limited on time. It’s easy to immediately delete any resume that doesn’t have the font you like or comes via snail mail instead of email. At least glance over those resumes, and make sure you aren’t missing out on a great potential hire who simply hasn’t quite mastered the art of job hunting. Not everyone is great at searching for employment. Besides, young, eager people can bring fresh energy to your agency. Do background checks.  While it’s important to avoid generalizations, every employee should be subjected to a thorough background check. This includes checking references and doing criminal background checks. Be sure to require proof of education. Anyone can say they have a bachelor’s or master’s degree. Make this a part of your preemployment process to avoid unpleasant surprises down the line. You likely know how crucial good employees are to an agency’s success. If you’re seeking qualified candidates, keep in mind that you need good employees as much as they need a great career opportunity. By approaching the employment process with a positive attitude and open mind, you’ll find the best employee for your organization. What tips do you have for recruiting new employees? Have you hired someone new who you wouldn't have hired in the past? Let me know in the comments. Page 24

March, 2013

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

STREET WISE Alliance of Insurance Agents of NC

Grassroots and Agent Power In this edition GRASSROOTS AND AGENT POWER.. 1 NC DOI COMMISSIONER GOODWIN . 3 GMAC LETTER TO LEGISLATORS ... 4 IIANC AUTO INSURANCE MODERNIZATION TALKING POINTS AND GMAC INSURANCE RESPONSES ..................................................... 6 SAMPLE E-MAIL FROM AGENCY TO LEGISLATORS ................................ 8 PIA OF NC POSITION LETTER ......... 9 2011 SB 490 VS. 2013 SB 154 ... 10 2013 SB 154 SUMMARY .............. 11 FACT VS. FICTION ......................... 12 GOOD POINTS ABOUT NC AUTO INSURANCE M ARKET .................... 14 SB 154 PROVISIONS .................... 15 CURRENTLY INSURED PLAN RATE COMPARISON ............................... 16 NOT CURRENTLY INSURED PLAN RATE COMPARISON ...................... 17 INSURANCE OVERHAUL EFFORT REVIVED ARTICLE ........................ 18

GRASSROOTS - AIANC members are the most valuable political asset in the association. No single act contributes more to shaping the outcome of issues than personal contacts with your elected lawmakers. Let AIANC know if you have contacts and are willing to use them to support AIANC legislative priorities or stop legislation that could harm your business. Become a part of AIANC’s grassroots network. Contact information will be kept strictly confidential. To participate, simply send an e-mail to Jeff Butler, AIANC Governmental Affairs Chair, and include your name, agency name & phone number. AIANC will call you to explain the program and discuss your involvement. Jeff’s e-mail address is jeff@ableautoinsurance.com.

AIANC’s Grassroots Power

Page 1

Not sure how to influence your lawmakers? To help AIANC members be effective in this role, AIANC has prepared the following DOs and DON’Ts: 20 DO’s and 10 DON’Ts for Effective Legislative Contacts Professional insurance agents and agency employees are valued by lawmakers as small business owners, employers, and people who work closely with large numbers of consumers.

DO . . . 1. Be brief. Remember that time is precious. All letters, phone calls, office visits, etc. to your lawmaker should be "short and sweet." Get to the point soon and focus on your issue. 2. Give bill numbers. Include the correct bill number(s) in all communications about specific legislation. 3. Explain the impact. Explain in simple, straightforward terms the logic supporting your position. The most effective logic often involves jobs, costs, and how many people the legislation will affect. Be sure to explain any impact on consumers. Continued on page 2

March, 2013

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

Are Your Independent Contractors Really Employees? Q&A

The Department of Labor (DOL) sued the company because home workers paid to answer texts on a piece rate basis were actually employees subject to minimum wage and overtime requirements and not independent contractors. Because of the misclassification, the employer also violated Fair Labor Standards Act (FLSA) recordkeeping requirements. In addition, the Internal Revenue Service (IRS) has stepped up its enforcement activities to target employers with misclassified workers that are not paying appropriate payroll taxes such as Social Security and Medicare.

By Robin Thomas, Managing Editor Follow PPS on Twitter for daily updates -@ppshrpolicies February 26, 2013, Volume 15, No. 9 Click here for an online copy Misclassified workers mean big money for the IRS and DOL and big headaches for employers. Find out the five steps you can take to make sure you have classified independent contractors correctly so you won’t face big fines. Q: We would like to use independent contractors instead of employees to work on several special projects beginning next month. However, we are not sure how long the projects will last, and it is likely the contractors will only be working for us. Is it safe for us to classify them as independent contractors? A: As often is the case with HR questions, the answer is “it depends.” And, what it depends on is how much control your organization exercises over the workers. If you exert too much control over these workers, such as telling them when, where, and how to do the work, providing the tools needed for the work, and reserving the right to fire them at any time, they may not be properly classified. (Download free Pay Procedures model policy including HR best practices and legal background.) There is no question that independent contractors are attractive to hire instead of employees. If you have a special project that requires a level of expertise none of your employees have, hiring a consultant to do the work can jump-start the project and ensure it is completed correctly. In addition, using independent contractors gives you more flexibility to “staff up” or cut back, without incurring the costs of hiring or layoffs. Further, because independent contractors are not considered your employees, your organization does not have to pay taxes on their behalf or allow them to participate in any benefit plans. Also, they typically are not covered under state workers’ compensation or unemployment compensation statutes; they are not entitled to overtime under wage and hour laws; they cannot sue under discrimination statutes; and they cannot take leave under the Family and Medical Leave Act. But, these workers can actually end up costing you more in headaches, back taxes, overtime costs, and penalties if they do not actually meet the criteria for independent contractors. Earlier this month, a company was ordered to pay $1.3 million in minimum wage compensation to over 14,500 employees who were misclassified as independent contractors. AIANC’s STREET WISE

So, how do you make sure that your independent contractors are properly classified? Answering that question is particularly tricky since three different standards commonly are used by the courts and agencies to determine independent contractor status: (1) the IRS 20-factor analysis, for coverage under federal withholding requirements; (2) the “economic reality” test, used to determine compliance with requirements of the Fair Labor Standards Act (FLSA); and (3) the common law “right to control” test, used by many courts to administer discrimination and benefits statutes. These three tests share several common factors, the most important of which is the amount of control the employer exercises over the work relationship. The IRS considers the existence of an employeremployee relationship to depend on whether the worker is subject to the will and control of the employer, based on 20 factors, including: (1) how much instruction is provided (employees typically must follow instructions as to when, where, and how to perform the job); (2) training (requiring training supports employee status); (3) integration of the worker’s services into the business operations suggests that the hirer directs and controls the worker; (4) whether services are rendered personally by a specific worker, suggesting the hirer controls the methods used to complete the work; (5) whether there is an ongoing relationship, which suggests that an employer-employee relationship exists; (6) whether the establishment sets hours of work, implying control over the worker; (7) whether full-time work is required, which suggests control over the worker; (8) whether the hirer provides tools and materials, which suggests an employer-employee relationship; (9) whether the worker serves more than one firm, which generally supports an independent contractor relationship; and (10) whether the hirer may discharge the worker at any time, indicating an employer-employee relationship. (If you are a subscriber to the PPMS and HR Policy Answers on CD, you can find the full 20-factor IRS test in Pay Procedures, Chapter 305, note 7.)

Continued on page 28

Page 26

March, 2013

SHARE THIS SITE

Home

ALREADY A MEMBER? LOG IN. IF NOT, PLEASE JOIN US.

About

Get Involved

Find Your Legislators

Take Action Email your state legislators who will decide the outcome of this issue!

Tell A Friend Spread the word about this issue to get more North Carolinians involved.

Latest Developments

Tell Us Your Story

Become informed on Senate Bill 154 / House Bill 265. Learn More

Share your view as a consumer about protecting low auto rates.

What They're Saying

Newspaper Editorials

About

Take a look at what they're saying if North Carolina “modernizes” its current auto rate system.

Statewide newspaper editorials opposing the dismantling of North Carolina’s system of competitive, low-cost auto insurance. Read more »

Learn more about protecting low auto insurance rates for North Carolinians. Read More »

News

Drivers of this bill? Not N.C. drivers Posted: Mar. 05, 2013 by The Charlotte Observer There’s a lot to like about the unique way car insurance rates are set in North Carolina. The state has the lowest rates in the South, and the seventh-lowest in the nation. That could change quickly under a proposal the legislature is considering.Here’s how it works now: Car insurance companies have to agree to an industry-wide rate increase (or decrease) each year with the N.C. Rate Bureau. The publicly elected insurance commissioner reviews that request, decides whether it’s justified and can approve it or seek a lower hike. That approach has...

Apodaca has a better idea on auto insurance Posted: Mar. 10, 2013 by The Ashville Citizen Times Finally, someone has proposed changes to North Carolina’s auto insurance system that might actually benefit drivers and not just insurers. North Carolina has a model system for two reasons. First, proposed rate changes must be industrywide and can be challenged by the Department of Insurance. Insurers can charge less than the rate set by law but not more. Second, a reinsurance pool assures that all licensed drivers have access to insurance...

Latest Video As this issue is debated in the legislature and covered in the news, we will update you with timely videos.

Find an Event Protecting low auto insurance rates will keep you updated once an event is scheduled to influence the outcome of this issue.

Contact Us We are interested in hearing your thoughts about protecting low auto insurance rates for North Carolinians. If you would like to share a question or comment, please provide feedback. Read More »

White: Take a peek inside insurance bill Published: Mar. 10, 2013 by The Fayetteville Observer 'Laws are like sausages," Otto von Bismarck said. "It's better not to see them being made." Too many of us take the great German statesman's advice. I suspect he gave it to keep the public's eyes out of his own political machinations. It doesn't serve anyone but the politicians who are making the sausage. As ugly as the view can be, we need to be political junkies to some degree, because we need to know what our elected representatives are up to. Too often, they're up to no good...

Goodwin the best insurance for NC drivers Published: Mar. 8, 2013 by The News & Observer When Wayne Goodwin warns that legislators and some in the insurance industry may be up to something, it’s fairly safe to assume that...they may be up to something. So let’s hope all these pro-business Republicans in the General Assembly understand that if they © 2013 should PROTECTING AUTOMOBILE RATES act inLOW a way that has North Carolina consumers paying more for auto insurance, and facing

converted by Web2PDFConvert.com

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

Are Your Independent Contractors Really Employees? Q&A

3. Use independent contractors that are set up as separate business entities.

Continued from page 26

4. If you are using an independent contractor to perform a job that is also performed by current employees, consider carefully whether the independent contractor really meets the criteria. Courts and administrative agencies are less likely to accept the classification if the independent contractor is doing the same job as employees.

The DOL uses the “economic realities test” to determine coverage under, and compliance with, the minimum wage and overtime requirements of the FLSA. The following are among the factors considered by the DOL: (1) the degree of control exercised by the hiring party over the manner in which the work is performed; (2) the relative investments by the hiring party and the worker in materials and equipment; (3) the degree to which the worker’s opportunity for profit and loss is determined by the hiring party or the worker’s own managerial skill; (4) the skill and initiative required in performing the job; (5) the permanency of the relationship; and (6) whether the service is an integral part of the hiring party’s business.

Be particularly careful if you have an employee who works two jobs for you, and you classify the second position as an independent contractor. This action may raise a red flag. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

The common law “right to control” test is used by courts to determine employee status in various types of cases, including employment discrimination and benefit cases, tax cases, and tort (wrongful act) liability cases. The common law test, as applied by the courts, includes the following ten factors: (1) the extent of control which, by agreement, the hiring party may exercise over the hired party; (2) whether the hired party is engaged in a distinct occupation or business that is usually done by a specialist without supervision; (3) how the worker’s helpers are hired and whether they are paid by the hiring party or the worker; (4) the skill required in the particular occupation; (5) who supplies the means, tools, and place of work; (6) the length of time for which the person is hired; (7) the method of payment, whether by time or the job; (8) whether the work is part of the regular business of the hiring party; (9) whether the parties believe they are creating an employment relationship; and (10) whether the hired party is an actual business entity.

Content for your HR Matters E-Tips newsletter is developed from our flagship publication, the HR Matters Tools and Resource Center, featuring the Personnel Policy Manual System (PPMS). See how it works. Subscribers to the PPMS and HR Policy Answers on CD can find more information on independent contractor status in Pay Procedures, Chapter 305, note 7. If you don't have access to the PPMS, but would like to have a free, no-obligation 14-day review, go to: www.ppspublishers.com/ppm-ez.htm Or just give us a call at 1-800-437-3735. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ YOU CAN TRUST PPS Information provided in HR Matters E-Tips is researched and reviewed by the HR experts at Personnel Policy Service as well as employment law attorneys. However, it is not intended as legal advice. Readers are encouraged to seek appropriate legal or other professional advice. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

(Download free Pay Procedures model policy including HR best practices and legal background.) Fortunately, there are five steps you can take to protect your organization against misclassifying employees: 1. Make sure you understand the various tests and apply them to each independent contractor relationship. It is not enough to meet the standards of one of the tests. You could face a challenge from one agency that results in an investigation by another, so you should try to comply with all of the factors. Further, states may have their own standards that you may need to meet. 2. Enter into a contractual agreement with the worker that explains the independent contractor relationship. The contract will help show what both the hiring party and the worker understood and intended the relationship to be. However, the contract by itself is not determinative; the worker still must meet all independent contractor criteria. AIANC’s STREET WISE

Interested in using an article from HR Matters E-Tips on your Web site or in a newsletter? Please contact Robin Thomas, Managing Editor of Personnel Policy Service, Inc., to request permission. You can contact her by email at editor@ppspublishers.com. Please note that the information in every issue of HR Matters E-Tips is the original, copyrighted work of Personnel Policy Service, Inc., and is protected under U.S. copyright laws. As such, you may not reprint or publish in any format any article or portion of article from HR Matters E-Tips without the express permission of Personnel Policy Service, Inc. Remember, too, we encourage you to pass along any issue of the E-Tips by forwarding it to friends and colleagues. Page 28

March, 2013

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

Some of you are too young to remember these signs. When I grew up I always counted the length of the drive by the number of Burma Shave signs along the way, Seems like an eternity ago! Remember you are only as old as you feel.

For those who never saw any of the Burma Shave signs, here is a quick lesson in our history of the 1930's and '40's. Before there were interstates, when everyone drove the old 2 lane roads, Burma Shave signs would be posted all over the countryside in farmers' fields. They were small red signs with white letters. Five signs, about 100 feet apart, each containing 1 line of a 4 line couplet.......and the obligatory 5th sign advertising Burma Shave, a popular shaving cream. Here are more of the actual signs:

SHE KISSED THE HAIRBRUSH

AROUND THE CURVE

BY MISTAKE

LICKETY-SPLIT

SHE THOUGHT IT WAS

BEAUTIFUL CAR

HER HUSBAND JAKE

WASN'T IT?

Burma Shave

DON'T LOSE YOUR HEAD

NO MATTER THE PRICE

TO GAIN A MINUTE

NO MATTER HOW NEW

YOU NEED YOUR HEAD

THE BEST SAFETY DEVICE

YOUR BRAINS ARE IN IT

IN THE CAR IS YOU

Burma Shave

DROVE TOO LONG

A GUY WHO DRIVES

DRIVER SNOOZING

A CAR WIDE OPEN

WHAT HAPPENED NEXT

IS NOT THINKIN'

IS NOT AMUSING

HE'S JUST HOPIN'

Burma Shave

BROTHER SPEEDER

AT INTERSECTIONS

LET'S REHEARSE

LOOK EACH WAY

ALL TOGETHER

A HARP SOUNDS NICE

GOOD MORNING, NURSE

BUT IT'S HARD TO PLAY

Burma Shave

CAUTIOUS RIDER

BOTH HANDS ON THE WHEEL

TO HER RECKLESS DEAR

EYES ON THE ROAD

LET'S HAVE LESS BULL

THAT'S THE SKILLFUL

AND A LITTLE MORE STEER

DRIVER'S CODE

Burma Shave

SPEED WAS HIGH

THE ONE WHO DRIVES

WEATHER WAS NOT

WHEN HE'S BEEN DRINKING

TIRES WERE THIN

DEPENDS ON YOU

X MARKS THE SPOT

TO DO HIS THINKING

Burma Shave

THE MIDNIGHT RIDE

CAR IN DITCH

OF PAUL FOR BEER

DRIVER IN TREE

LED TO A WARMER

THE MOON WAS FULL

HEMISPHERE

AND SO WAS HE.

Burma Shave

DON'T STICK YOUR ELBOW OUT SO FAR IT MAY GO HOME IN ANOTHER CAR. BURMA SHAVE

TRAINS DON'T WANDER ALL OVER THE MAP 'CAUSE NOBODY SITS IN THE ENGINEER'S LAP Burma Shave

AIANC’s STREET WISE

Page 30

March, 2013

• • • • • • • • • • • •

Premium Insurance Agency Website

Web Marketing Service

$35/month, $99 setup*

$495 setup, $100/month

Custom domain name Service descriptions Online payment links Contact info, contact form and location map Up to 15 pages Agency blog Insurance information videos Custom QR Codes Links to social media and review sites to build your online reputation Online quote forms Agency staff photos and individual contact info Optimized for mobile devices

Elite Insurance Agency Website $60/month, $99 setup* • Includes all the features of the Premium Insurance Agency Website, PLUS:

• Create agency business listings for visibility with more than 10 of the biggest listing and social media sites:  Facebook Business Page  Twitter for Business Account  Google Places Listing  Bing Listing  Yahoo Listing  Yelp! Business Listing  CitySearch Listing  …and more! • Independent Agency blog for inclusion in your agency website  Professional content added regularly  Make your site interesting to customers, potential customers, and search engines • Inclusion as preferred agent in our online directory listing of local agents • Basic monthly analysis of online presence • Setup and monitoring of Google Ad Word campaigns based on a budget you specify

• Up to 30 pages of content • Custom design services for a unique look • Custom submission forms for your preferred lines • Online chat • Insurance Glossary • Multi-location interactive maps • Regular changes by our staff upon request • Optimized for mobile devices

Basic Insurance Agency Website $20/month, $99 setup* • • • • •

3 page, business card site Custom domain name Service descriptions Online payment links Contact info, contact form and location map • Optimized for mobile devices *Special Offer! Website setup fees waived until 7/1/2013!

AgencyThrive - Insurance Agency Internet Marketing & Social Media

Web Consultant Service $1995 setup, $250/month

Includes all the features of the Web Marketing Service, PLUS SO MUCH MORE:  Elite Website included with Instant Auto Quote (where available)  Weekly updates of Social media sites  Includes Google Adwords campaign (no additional click charges)  Monthly email blast to your customers upon request  Monitoring of online reviews to protect your reputation  Detailed monthly analysis of online presence  Preferred placement on our directory listing site of local agents  Monthly action plan to increase traffic and sales

Instant Auto Quote* $50/month, only $40/month with AgencyThrive Website • Consumers visit your agency website, enter their information, and get an auto quote INSTANTLY with the AgencyThrive Instant Auto Quote Generator • Consumers can enter their information anytime, 24 hours a day, 7 days a week, and get an auto quote instantly • You will immediately receive an email and/or text message when a quote is completed • The quote data is saved in your AccuAuto database and is ready to process into a policy • The consumer only sees the top three quotes and no company names; YOU ARE IN THE DRIVER’S SEAT!

*instant quotes currently available in AL, FL, GA, LA, MS, SC

Contact a representative today!

Call 1-800-229-2009 Press ‘3’ for Sales, or Press ‘2’ for Tech Support and Customer Service Email: sales@accuauto.net

6037 Financial Drive Norcross, Georgia 30071 (770) 242-6832 or (800) 229-2009 (770) 840-7558 fax

www.accuauto.net

AgencyThrive - Insurance Agency Internet Marketing & Social Media

March 18, 2013

IMPORTANT: Auto “Modernization” Bills Filed in the NC Legislature: SB154 & HB265 Dear Valued Agency Partners:

The 2013 legislative session is off to a very, fast start and it is going to be very controversial year as two major auto insurer groups disagree about what is in the best interest of North Carolina consumers. We think it is critical for you to know that although auto insurance is different here than in most every other state, it is not broken. Our system today offers many unique advantages to North Carolina drivers that are not available in any other state. We believe it is very important that you learn more about these bills and how we believe they will impact your future, that of independent agents, employees, customers and millions of NC drivers.

We oppose SB 154 & HB 265. Professional Insurance Agents of NC (PIA of NC) and Alliance of Insurance Agents of NC (AIANC) also oppose them. Independent Insurance Agents of NC (IIANC) supports them. For more than 30 years, we have agreed with IIANC’s position on virtually all legislation, if not all. However, this time we do not. We believe the impact of SB 154 & HB 265 on the NC auto insurance market will be surprising, far more radical and the changes will happen much more quickly than IIANC or even the sponsors of this legislation think. GMAC Insurance is a Charter Presidential Partner of IIANC and we value our relationship with IIANC and their agent members. Good friends disagree from time to time and unfortunately this is one time we do. GMAC Insurance is the largest writer of auto insurance in NC through independent agents by far. In fact, in 2011, if you add up the auto insurance premiums for the Top 5 Auto Writers in NC through independent agents, GMAC Insurance wrote 43% of it. Agents are very important to us and we are very important to independent agents and their customers. A few weeks ago, IIANC issued Talking Points supporting these changes and we have responded to each of them. Click here: IIANC Vs GMAC Insurance Talking Points

SB 154 is VERY similar to SB 490. SB 490 was commonly referred to as the “State Farm bill” in the NC Legislature when it was filed in 2011. IIANC opposed SB 490, but now supports SB 154. Some provisions in SB 154 are different than those in SB 490 as you can see from the comparison below. However, we believe the flex rating and file your own rates, rules policy forms provisions that were in SB 490 and are now in SB 154 will have the same radical impact on the auto insurance market as SB 490. Click here: Comparison of SB 490 Vs SB 154

Our current system produces the 7th lowest auto insurance rates in the country. In fact, auto insurance rates in North Carolina today are lower than they were in 2006. The North Carolina Rate Bureau, which these out-of-state companies criticize, has not asked for a rate increase on auto insurance since 2009. The auto insurance market in North Carolina is highly competitive, very stable and consistently provides among the lowest auto insurance rates in the country to North Carolina drivers.

Click here: Good Points about NC Auto Market Today Most importantly, don’t be fooled by these out-of state insurance companies. Insurance companies are allowed to charge as low a rate in North Carolina as they want today. Lowering rates is easy now. Raising them is hard. These out-of-state companies want to make it as easy to raise auto insurance rates in North Carolina as it is in other states. It is very important to remember that NO North Carolina domestic insurance companies support the so-called “modernization” that is proposed in SB 154 & HB 265. Help us keep rates low in North Carolina. We believe SB 154 and its corresponding bill in the House HB 265, backed by State Farm, Allstate, Geico, Progressive and several other out-ofstate insurers, will result in significantly higher auto insurance rates in January, 2015 as there is NO CAP on those rates. From then on, insurance companies will be able to raise their overall rates up to +12% per year with very little the elected Commissioner, who is stripped of his power in this legislation, can do to stop them. Rates for some drivers could increase less than +12% a year, but rates for many others could increase much more than +12% per year. In particular, we believe young drivers, older drivers and over 1,000,000 North Carolina drivers with no accidents or tickets could see their auto insurance rates skyrocket. We oppose SB 154 & HB 265 and we believe the more you learn about them, the more likely you are to join us in opposing them. Click here: SB 154 Provisions

Charlotte Observer Editorial – Drivers of this bill? Not N.C drivers http://www.charlotteobserver.com/2013/03/05/3895766/drivers-of-this-bill-not-ncdrivers.html# Fayetteville Observer Editorial – Driven – Does Meredith bill help consumers or insurance companies? http://fayobserver.com/articles/2013/03/03/1240658

Southern Pines The Pilot – Insurance Proposal Hardly a “Reform” http://www.thepilot.com/news/2013/mar/08/insurance-proposal-hardly-a-reform/

We did extensive liability only rate comparisons of what State Farm, Progressive, Allstate and Geico quote on the Internet in Richmond, VA, Columbia, SC and Atlanta, GA versus the NC maximum rates for the same risk in Charlotte, Winston-Salem, Raleigh, Jacksonville, and Fayetteville. The attached document shows the average rates State Farm, Progressive, Allstate and Geico charge NOW for these risks in GA, SC, and VA versus the average of the MAXIMUM rates that can be charged in NC. Click here: How Could SB 154 Affect Auto Insurance Rates in NC (No current insurance) Current Insurance Pay Plan Rate Comparison

Help us make sure North Carolina drivers get the coverage they deserve. Today, all auto insurance companies use the same auto policy. If this legislation passes, auto insurance companies can use their own policy forms to bring enhancements that the proponents support. However, we believe this will also bring the “cut-rate” insurance policies that Allstate complains about in its national advertising to North Carolina. When that happens, a lot of North Carolina drivers will find out after a claim that it is not covered, like it is now. This will create a lot of problems for agents and NC consumers, as customers will be attracted to companies with low rates, but with far less coverage provided. Agents will need to be experts in what the policy and endorsements cover and do not cover for each and every company they represent. The growing coalition that opposes SB 154 & HB 265 currently includes: *AAA Insurance AAA Carolinas Alliance of Insurance Agents of North Carolina AmTrust Financial Services AARP *Discovery Insurance Company *GMAC Insurance Greenville Casualty Nationwide Insurance *North Carolina Farm Bureau Insurance Professional Insurance Agents of North Carolina Southern General Insurance *NC Domestic Insurance Companies

------------------------------------------------------------------------------------------------------------------------WHAT CAN YOU DO TO HELP OUR COALITION OPPOSE SB 154 & HB 265? TAKE ACTION NOW:

Agency owners should write and/or call their NC legislators and ask them to vote “NO” on SB 154/HB 265. If you know any of your NC legislators personally, definitely call and write them. Agency employees can go to www.LowRatesNC.com to learn more about SB 154 & HB 265. They can also enter in their name and address to find their NC legislators. The “Take Action” section makes it very easy for them to email their legislators to tell them to oppose SB 154 & HB 265. PLEASE let your TSM know any feedback you receive from your efforts.

-----------------------------------------------------------------------------------------------------------------------Should you have any questions, please do not hesitate to contact your Territory Sales Manager or one of us. We know Independent Agents have a choice and we work hard everyday to make that choice GMAC Insurance. Sincerely yours,

Rick Pierce, CPCU, AAI Sr. Vice-President Mid-Atlantic

Mark Devereaux Vice-President Mid-Atlantic

Art Lyon, CPCU Executive Consultant

Bryon Nelson Sr. Product Mgr

8 Ways to Avoid Traffic Accidents and Tickets LegalShield lawyers provide great representation to members who receive traffic tickets. However, it is still much safer and easier on you if you do not get a ticket in the first place. These tips are designed to help you stay safe on the road and keep you out of the courthouse. If you have been involved in an accident or received a traffic ticket, call your LegalShield provider law firm today. 1. Slow down. Driving too fast is one sure way to end up in an accident or with a ticket. In recent years, many states and provinces have tightened their laws on reckless driving particularly. If you are caught exceeding a threshold speed, you may be charged criminally, rather than with a simple traffic citation. The penalties for reckless driving may include substantial fines, license suspension and even jail time for repeat offenders. 2. Donâ&#x20AC;&#x2122;t text or email while driving. Texting or using a smart phone while driving is now illegal in several states and many localities and may not only earn you a traffic ticket, but also injure or kill you. Numerous studies have shown that texting or using your smart phone while driving substantially increases your chance of injury or death. The number of injuries and deaths caused by distracted drivers has skyrocketed in recent years. Avoid serious injury and death (and tickets) by always safely pulling to the side of the road and stopping before texting or using your smart phone. 3. Never drink and drive. Driving under the influence of drugs or alcohol puts your life and the lives of others in grave danger. Even blood alcohol levels below your stateâ&#x20AC;&#x2122;s legal limit can impair your driving and increase your chance of injury or death in an accident. First offenses of DUI or DWI may land you in jail and leave you with a criminal record. The best way to avoid DUI or DWI accidents and criminal charges is to avoid drinking and driving all together. 4. Think twice before running a light. Running a red light may save you a few seconds, but it puts you, your passengers and other drivers around you at risk of serious injury or death. Drivers running red lights cause nearly 1,000 deaths and 90,000 injuries each year in the United States. Red light traffic cameras are now used throughout the U.S. and Canada, so even if you escape injury, you may not escape a ticket. 5. Follow at a safe distance. In ideal road conditions you should leave at least 3 seconds between you and the car in front of you. If you are hauling a heavy load or driving in wet or icy conditions, leave at least 7 or 8 seconds between you and the car ahead of you. Rear-enders cause nearly as many deaths and injuries per year as intersection collisions. 6. Have your vehicle checked regularly. Defective equipment is no excuse for an accident. Make sure your lights, wipers, brakes, and other safety features are in proper working order. Also, frequently check your tire pressure and wear, especially when the outside temperatures fluctuate between seasons. Improper pressure and wear could lead to a dangerous blowout. 7. Be prepared for difficult weather. If you are driving in wet or icy weather, allow yourself extra time and drive with caution. If you are particularly uncomfortable driving in bad weather, stay off the road until conditions improve. 8. Make sure you have the right car seat for your child. It is extremely important to protect your children by ensuring they are in the appropriate car seat for their age and size. Most states and provinces have strict laws regarding child safety seats. The National Highway Traffic Safety Administration offers a great resource to help parents ensure their children are protected. Click here to visit their website.

For more information on this valuable service or to learn how to become independently wealthy, contact Rick Pegram at www.rickrpegram.legalshield.com

What Debt Collectors Can and Cannot Do In the United States collection agents are limited in the methods they can use to collect personal debts by the Fair Debt Collection Practices Act (FDCPA). Personal debts include credit card debt, auto loans, mortgage payments, medical bills and other family and household expenses not used for a business. Canadian debt collection regulations differ by province; however, there are some practices that are generally off limits to all debt collectors. If you are dealing with a debt collector or have any questions call your LegalShield provider law firm today. Collection agents MUST: Contact you in writing, or attempt to do so, before taking any further action to collect a debt, including legal actions to secure payment of the debt; Identify themselves when contacting you about a collection matter; Provide information on the original creditor and amount owed. The original creditor is the company or institution to which the debt was owed before it was transferred to the collection agency. Collection agents are NOT permitted to: Harass you or your family with threats of harm or violence, use of obscene language or by making calls at unreasonable times of day; Deceive you by providing inaccurate or misleading information; Send you false legal documents or threaten to take legal action they are not authorized or willing to take; Charge interest or other fees that are not authorized by law; Demand payment on an account that you have disputed without providing proof that the debt is legitimate; Contact your employer, relatives, friends and neighbors for anything other than your direct contact information. In some instances debt collectors may be permitted to contact employers to verify employment, job title and mailing address. When you need assistance dealing with a debt collector, call your LegalShield provider law firm and speak with an attorney.

For more information on this valuable service or to learn how to become independently wealthy, contact Rick Pegram at www.rickrpegram.legalshield.com

9 Legal Tips Every Renter Should Know These tips were developed to help you understand your rights and obligations as a renter generally. Your rights and obligations are most often determined by the terms of your lease and laws that vary greatly among the states and provinces. Call your LegalShield provider law firm and speak with an experienced attorney who will review the lease document BEFORE you sign it and explain your rights and obligations. 1. Understand the terms of your lease before you sign. One common mistake renters make is signing a lease without fully understanding their rights and responsibilities. As a LegalShield member you can have an attorney review your lease and discuss it with you before you sign. 2. Purchase renters insurance. In the event of a disaster, your landlord’s insurance may only cover the property the landlord owns. Renters insurance is generally affordable and offers protection not only for your personal belongings, but also against many personal injury claims that occur on or near your rental property. 3. Your landlord may be responsible for making repairs in a timely fashion and for keeping the premises safe and in compliance with health and other codes. However, the landlord’s responsibility varies depending on the terms of the lease and state or provincial laws. Always consult with your provider attorney and ask he or she to review the lease with you. 4. In most cases a landlord must give you notice before entering your home. However, this may be subject to change depending upon the language of your lease or the local laws that apply to it. 5. Never stop paying rent to settle a dispute with your landlord. If you believe that you have a claim against your landlord, you may not be entitled to withhold your rent. Always talk to your LegalShield provider law firm immediately if you have a dispute with your landlord. Even if you have a legitimate claim against your landlord, the landlord may still be entitled to evict you if you do not pay your rent. 6. Under most circumstances, your landlord cannot take your property, change your locks or turn off your utilities merely because you failed to pay rent. However, the landlord may be able to file eviction proceedings against you in court. Call your LegalShield provider law firm if you have any dispute with your landlord. 7. Do not break a lease without understanding your rights and responsibilities. In some rare instances tenants can break a lease without notice, but laws vary and it is important to understand the proper procedure for breaking your lease. If you need to get out of your lease before it expires, call your provider law firm first. 8. Generally, the landlord’s cost for repairing normal wear and tear cannot be deducted from your security deposit. Before moving into and out of a rental property, take detailed pictures of each room. Before and after pictures may be helpful if the landlord claims damages you did not cause. 9. Your landlord must return your deposit in a reasonable amount of time. Specific time frames may vary. If you need assistance with the return of a security deposit, your LegalShield provider law firm can help.

For more information on this valuable service or to learn how to become independently wealthy, contact Rick Pegram at www.rickrpegram.legalshield.com The content of this newsletter is intended for general information purposes only, and is not legal advice. Readers should be aware that while certain principles outlined on this site may be similar to principles followed in their own state or province, laws can vary considerably. © Copyright 2012 Pre-Paid Legal Services, Inc. d/b/a LegalShield℠ One Pre-Paid Way, Ada, Oklahoma 74820 www.mylegalshield.com

Mark Your Calendars!

AccuAuto’s South Carolina / Georgia Insurance Convention 2013 May 16 – 18, 2013 Sonesta Resort Hilton Head Island 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.

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.

More information at www.FYIGeorgiaViews.com