FYI Express - November 2013

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

EXPRESS “What You Don’t Know Can’t Help You!” … Eddie K. Emmett, Editor / Publisher

HEALTH CARE REFORM & DEFINED CONTRIBUTION Can your agency afford to offer health insurance to employees?

Yes … or No? Regardless of the answer, one of this year’s new Georgia Insurance Agents Alliance (GIAA) member benefits is a customized program that combines employer’s defined contribution and the employees’ new individual tax subsidies for health insurance.

program that is tax deductible to the business, 100% taxfree to employees and guaranteed issue health insurance without regard for pre-existing conditions.

GIAA has a series of videos, webinars and training kit to show you how to do it.

HEALTH REFORM’S TAX SUBSIDIES

All it takes is to be a member in good standing with GIAA and the desire to help your clients while making a ton of money.

Your Key to Better Benefits & Happier Employees

Do you have commercial clients?

GIAA Membership has More Advantages!

Regardless of whether you are licensed in Health Insurance or P&C only, GIAA members can help their commercial clients set up a free defined contribution FYI EXPRESS

Contact Eddie K. Emmett, Communications Director at eddie@FYIExpress.com for more information.

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November, 2013

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

Health Care Reform Overview The major provisions of the Affordable Care Act (ACA) take effect January 1, 2014. Starting in 2014, the best decision for most employers and employees might be to eliminate their company- sponsored group health insurance in favor of a defined contribution health plan solution. That’s because employees no longer need employers to purchase quality health insurance. And, starting in 2014, employees earning less than 400% of the FPL (~$95,000 for a family of four per year in 2013) who purchase an individual health policy will receive a large federal subsidy on their premium if their company doesn’t offer a group health insurance plan.

In order to evaluate how health care reform affects you and your company, you must understand the following major ACA provisions:

Employer Mandate – 2015 (50+ FTE Employees Only) Employer’s Common Objections to providing Health Insurance for Employees

Businesses (with 50+ FTE) will be required to offer “qualified” and “affordable” health insurance to employees starting in 2015. If they do not, they are subject to a tax penalty based on full-time employees.

1. We can’t afford health benefits. This is a new federal program. With this solution, there are no minimum employer contribution requirements.

Small Businesses (with less than 50 FTE) are not affected by the mandate or the tax penalty.

2. We do not offer health insurance. That’s great.

Our program should be able to help you save money on taxes on your employee’s individual health insurance.

Individual Mandate Starting in 2014, most individuals will be required to be covered under health insurance, or else pay a tax penalty.

3. This sounds like it will take a lot of time. We hear that a lot. The solution takes less than 5 minutes per month to administer (there is zero paperwork).

Individual Health Insurance Tax Subsidies To help make health insurance policies affordable, tax subsidies will be available to the majority of employees (households with income up to 400% of the federal poverty line, FPL). The federal poverty level varies by family size. In 2013, it is $11,490 for a single adult and $23,550 for a family of 4.

4. I already pay directly for my employees’ individual health premiums. You might want to check with your CPA to verify that you have set up the required plan documents to make it taxfree.

Employer’s Common Questions to providing a Defined Contribution Health Plan for Employees

With this calculator, you can enter different income levels, ages, and family sizes to get an estimate of your eligibility for subsidies and how much you could spend on health insurance. http://kff.org/interactive/subsidycalculator/

1. How does it work? Employees secure health insurance and tax subsidies through the ACA Marketplace. You can sell the policy and earn commission on the full premium if you have a Health Insurance license and have completed the online federal certification. Then we show employers how to legally and tax-free reimburse their employees via their existing payroll service.

Individual Health Insurance Marketplaces These tax subsidies will only be available through www.Healthcare.gov, the new online website where employees can purchase individual health insurance plans. The marketplaces opened for enrollment on October 1, 2013, for coverage beginning January 1, 2014. Employees are only eligible for these subsidies if they are not offered qualified, affordable group health insurance through an employer.

2. How much does it cost? That is entirely up to the employer – he / she determine the cost. There is a small monthly administration fee that is typically financed 100% by tax savings.

3. What size agency / business do we work with?

All sizes. There are no minimum or maximum employee participation requirements.

FYI EXPRESS

Continued on page 4 Page 2

November, 2013

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Health Care Reform & Defined Contribution

Defined contribution health plans are an alternative to company-sponsored group health insurance plans.

When talking about defined contribution, we are referring to a “pure” defined contribution model, where there is no group health insurance plan, and where employees can choose any individual health insurance policy.

Continued from page 2 Guaranteed-Issue Policies Starting in 2014, all individual and family health insurance policies are required to be guaranteed-issue, meaning employees cannot be denied or pay more because of a pre-existing condition. No longer will sick employees need to get affordable coverage through their employer.

“Pure” defined contribution health plans by themselves are not health insurance plans and therefore do not satisfy the employer mandate of minimum essential coverage.

With a “pure” defined contribution health plan:

Defined Contribution: The Ideal Solution in 2014?

Your company gives each employee a fixed dollar allowance (a "defined contribution") that employees can spend on any qualified health insurance plan.

What is a defined contribution health plan?

Rather than paying the costs to provide a specific group health insurance plan (a "defined benefit"), companies fix their costs on a monthly basis by establishing a defined contribution health plan.

FYI EXPRESS

Continued on page 6 Page 4

November, 2013

As fourth quarter quickly approaches, we will utilize this time to place an emphasis on training & development for our agents. Our Marketing team will be offering onsite training along with webinars. Our goal is to have all agents utilizing E-Signature 100%.

As our corporate office is a paperless environment, we want to encourage agents to attach photos and documents directly to the policy in lieu of faxing. This will reduce agency suspense, distorted photos and policy up-rates and/or cancellations.

Electronic Signature

Business practices that impact the customer. This year we introduced the Insured Website and Text /Email program. Allow your customers to help themselves.

Insured Website

Text Alerts / Email Alerts



Marketing Jim Childs (770) 840-5077 Jim.Childs@aggressiveusa.com Janice Cantrell (912) 398-5295 Janice.Cantrell@aggressiveusa.com David Emmett (770) 490-7861 David.Emmett@aggressiveusa.com

SCAN TO SMARTPHONE ACCESS TO MAKE PMT & ID CARD

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

Health Care Reform & Defined Contribution

Premium amounts shown in this tool are only examples, based on a limited set of sample ages and scenarios. They may not fully reflect your individual situation. Actual plan pricing can change based on your household size, income, ages, and tobacco use.

Continued from page 4 Employees purchase their own individual policy directly from a health insurance company of their choice, through an insurance broker, or through their state health insurance marketplace.

Because the monthly premiums shown don’t account for any lower costs you qualify for based on your household size and income, the final premium you pay may be lower, perhaps much lower, than the prices shown. The only way to find out what YOU will pay for a specific plan is to fill out a Marketplace application. Many people who apply for coverage will qualify for lower costs.

Employees use their defined contribution allowance to reimburse themselves tax-free for their individual health insurance costs, up to the amount of their allowance.

You can preview Marketplace health plans and prices available in your area. But to find out the actual costs for your personal situation, you need to apply.

FACTORS THAT AFFECT PRICES SHOWN Where you live. Plans are priced partly based on where you live, so be sure to pick the right state and county first.

HOW TO VIEW HEALTH PLANS AND PRICES Start by providing some basic information to find plans and sample prices available in your area.

Answer a few questions and you’ll see plans and premium estimates available in your area.

5 plan categories. Plans are presented in 5 categories: Bronze, Silver, Gold, Platinum, and Catastrophic. Learn more about these categories.

Important note: The monthly premiums shown DO NOT take into account your income and household details.

FYI EXPRESS

Continued on page 8 Page 6

November, 2013

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

Health Care Reform & Defined Contribution

Businesses of all sizes are trying to wrap their heads around health care reform (the Affordable Care Act or ACA) and what it means for their bottom line.

Continued from page 6 Age and family situations. The tool shows monthly premiums for different family situations and, for individual applicants, age. Your final rate will depend on your specific circumstances.

Businesses must start planning now to: Understand your health benefits options Navigate your ACA compliance obligations

PREMIUMS, DEDUCTIBLES, AND OTHER COSTS Prices shown are for monthly premiums only.

Deductibles, copayments, and other out-of-pocket costs are not shown.

Implement a strategy for employee health benefits by 2014

If you want more information on a particular plan, you’ll see it after you apply in the Marketplace. In the meantime, you can call the insurance company offering the plan for more information.

The Affordable Care Act includes an “employer mandate” requiring employers with 50+ employees to either offer health benefits or else pay a penalty. This is also called the “play or pay” requirement. (Note: The employer mandate has been delayed from 2014 to 2015.)

What does this mean for your business?

Please remember: The monthly premiums shown don’t account for savings you may be eligible for based on your income and household details.

This comprehensive guide provides employers, owners, CEOs, human resource departments, insurance agents, and business consultants a road map to navigate these three options, and ultimately help you calculate your health benefits savings.

The only way to get a price for a specific policy that’s accurate for you is to fill out a Marketplace application.

The monthly premiums shown are what someone who doesn’t qualify for any savings would pay.

Find out if you may qualify for lower costs based on your income To see whether you may qualify for lower costs based on your household details and income, you can use the Kaiser Family Foundation calculator.

FYI EXPRESS

Page 8

November, 2013

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

The 13 regulations you need to know now, and in 2014 Concise descriptions of regulations, with links for in-depth resources How PPACA impacts employer-sponsored health insurance plans How PPACA impacts Defined Contribution Health Plans and FSAs Join GIAA today at www.Georgia-Agents.com for only $160 per year and everyone in your office can start enjoying all the member benefits.

Which health care reform regulations impact your business How the new health insurance marketplaces benefit employees What it means to "play," "pay," or to "play differently" How to design health benefits that save you money and help recruit and retain key employees How to calculate your health benefits savings

“How To” Booklets for GIAA Members

Health care reform is changing the landscape of employee health benefits. By 2014, all businesses need to 1) understand new compliance obligations, 2) analyze cost-saving opportunities, and 3) implement changes before January 1. Are you in compliance with current PPACA provisions, and ready for 2014?

This top-level guide is written for Business Owners, CEOs and HR Professionals. The checklist helps you ensure compliance with key PPACA regulations, and learn about new cost-saving options for employee health benefits.

FYI EXPRESS

Page 10

November, 2013

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Does ACA Change Full-Time Definition Other than Health? Q&A

By Robin Thomas, Managing Editor In the past, employers had wide discretion regarding which employees they define as full-time or part-time, and benefits often were assigned according to these definitions. However, thanks to the ACA, many employers must change their definition of full-time employees, at least as far as health care insurance eligibility is concerned.

Q: We have 60 employees and are covered by the Affordable Care Act. In our policies, we generally have defined as full-time employees those who worked 40 or more hours a week and those employees are entitled to a range of benefits, from health insurance to paid time off.

Part-time employees are defined as those who work fewer than 40 hours, and they do not receive health insurance but they do receive a pro rata share of paid vacation and sick leave. Do we have to change our definition of full-time employees?

A: Yes, but only for health insurance eligibility.

Employers typically have a lot of flexibility in categorizing employees as either full-time or part-time since most federal and state laws generally do not define these terms. The 40-hour workweek has long been the benchmark for defining a full-time employee and was adopted by many employers as a result of the Fair Labor Standards Act (FLSA).

The FLSA took effect in 1938 and requires employers to provide premium pay (overtime) to nonexempt employees who work more than 40 hours in a single workweek. Even with the creation of the FLSA overtime provision, no federal law specifically defined full-time employment until the Patient Protection and Affordable Care Act took effect in 2010 (commonly referred to as the Affordable Care Act or ACA). Prior to the ACA, employers often based their employee classifications on eligibility requirements for health insurance benefits, and many health care plans excluded part-time employees who worked less than 20 or 30 hours a week.

A health plan is considered to provide adequate coverage if the plan’s actuarial value (i.e., the share of the total allowed costs that the plan is expected to cover) is at least 60%.

So, if you want to continue to define your part-time employees as those who work less than 40 hours and prorate their paid vacation and sick leave, you may continue to do so. But, you will have to provide health insurance to those part-time employees who regularly work 30 or more hours a week. Of course, because of the complexities of the ACA, you are advised to seek legal counsel to determine which employees should be offered health insurance.

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.

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However, the ACA has prompted many employers to apply a new definition of full-time employees, at least with regards to health insurance coverage. Under the ACA, employers with 50 or more employees must provide health insurance that meets minimum standards to their “full-time employees” or “full-time equivalent” employees by January 1, 2015, or face penalties, and the law defines full-time employees as those who work on average 30 or more hours a week.

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To avoid penalties, the health insurance coverage must be both “affordable” and “adequate” to covered employees. A health plan is affordable if the employee’s premium contribution toward the employer’s plan does not exceed 9.5% of household income.

FYI EXPRESS

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Absenteeism: What is Excessive and What is Protected? Q&A

By Robin Thomas, Managing Editor Employees who miss work because of medical reasons often are protected by the FMLA and the ADA. But, not every medical absence is protected, and you can enforce your attendance policy and discipline employees for excessive absenteeism. Find out what you should consider before taking disciplinary action.

Q: We provide several paid days off for use for sick leave. Most employees do not use up all of their sick days, but we have one employee who continually needs additional sick days off. These absences are very disruptive to our operations, but we are concerned that they may be protected under the FMLA or ADA. Can we discipline the employee for what we consider to be excessive absenteeism? What if she has a doctor's note for the absences?

A: As a general rule, if an employee's absences are in excess of your stated policy (for example, the employee has taken more paid days off than provided by your policy), you can, and should, consider taking disciplinary action for the excessive absenteeism. But, before taking any action, you are right that you should first determine whether you have any obligations under the Family and Medical Leave Act (FMLA) or the Americans with Disabilities Act (ADA).

(Download free Attendance and Punctuality model policy including HR best practices and legal background.)

Most employers define excessive absenteeism as absences that exceed what you allow by policy. Thus, authorized absences that are taken according to your absence and leave policies are not considered excessive. So, if the employee's absences are covered by your paid time off policies, you should allow them.

Note, though, that simply because an employee has a doctor's note verifying a medical condition to justify an absence, you may still consider the absence excessive if the employee has used all of the days allowed by your policies and the underlying medical condition is not protected by the FMLA or ADA (see below).

However, you may have to disregard absences required for reasons covered by the FMLA and the ADA when determining whether an absence is excessive and discipline is warranted. Both the FMLA and the ADA limit your right to discipline or discharge employees for absenteeism caused by a protected medical condition.

The FMLA requires covered employers (those with 50 or more employees and all public agencies and schools) to provide eligible employees with up to 12 weeks of unpaid, job-protected leave in any 12-month period, for the employee's own or a family member's serious health condition (and up to 26 weeks to care for a seriously ill or injured military family member injured in the line of duty).

FYI EXPRESS

In addition, you cannot discriminate against employees who take FMLA leave. As a result, you cannot take an employee's FMLA-covered leave into account under "no-fault" attendance policies or consider the absences "excessive" under your absenteeism policy.

So, if the employee's absences are caused by a serious health condition protected by the FMLA, you should disregard any absences related to the condition.

Of course, you can require that the employee provide medical certification as allowed by the FMLA to substantiate the need for the time off under the FMLA. Similarly, the ADA, which applies to employers with 15 or more employees, requires covered employers to provide reasonable accommodations to qualified individuals with disabilities unless doing so would impose an undue hardship. Reasonable accommodations may include part-time or modified work schedules, as well as additional unpaid leave. The ADA, in effect, requires that these absences be considered "excused" or, in the case of no-fault attendance policies, not counted for purposes of determining if discipline is appropriate.

In addition, you may have to accommodate disabled employees by allowing them to take more unpaid leave than is provided by your leave policy unless this would impose an undue hardship on the operation of the organization. Thus, if your employee has a medical condition that meets the disability definition, then any absences related to it may be protected by the ADA. As with the FMLA, you can require medical certification of a disability to support the need for additional time off.

But, if you determine that the absences are not protected by the FMLA or the ADA, the best way to manage this type of absenteeism is to focus on the individual problem employee and follow a progressive discipline program. For example, your supervisor should put the problem employee on notice, provide counseling about improving attendance, and document the warnings and steps taken. Then, if the absenteeism continues, you are in a strong position to take needed corrective action to discipline, or even terminate, the employee according to your normal policies.

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.

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November, 2013

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

How to Hire Top Sales Reps

by John Chapin With all the advances in every area of life, you’d think hiring the right salespeople would be an exact science at this point. It isn’t. Hiring the right people is a combination of science and philosophy and you have to utilize both effectively to hire someone who ultimately “makes it.”

Here are the aspects to “employ” in order to employ the right salespeople.

Keys to Hiring Top Sales Reps Hiring tip #1: Only hire employed winners.

An unemployed salesperson out looking for a job is a major red flag. Unless someone’s company just blew up, or there is some other crazy extenuating circumstance, a salesperson looking for a job should, at the very least, still be employed. That said, an employed salesperson out looking for a job is a yellow flag. People do switch jobs for a variety of perfectly legitimate reasons related to family or other solid personal reasons, just make sure the reason is a good one and they can back up the stellar sales skills they claim to have. In reality, most salespeople are looking for a job because they can’t sell and they either got let go, or are about to. Don’t hire someone else’s problem without A LOT of due diligence.

Hiring tip #2: Only hire within your industry if you recruited the person.

If you find a stellar salesperson you want working for you instead of the competition, great, otherwise avoid your industry like the plague. Someone within the same industry looking for a job elsewhere does so because they can’t sell. Again, unless there is an extenuating circumstance with the company or product, the problem is the salesperson.

FYI EXPRESS

Hiring tip #3: Always be on the lookout for good salespeople.

Even if you are not hiring right now, build your list of candidates for when you are. That great salesperson who just sold you your car, boat, or home alarm system is a good prospect to come work for you now or at some point in the future. It’s simple, winners win. A winning salesperson in another industry can learn to sell just as effectively in your industry. Also, truly great salespeople can make the transition from products to services and from phone sales to in-person sales and vice versa.

Hiring tip #4: Hire self-esteem, self-confidence, and the right attitude.

Lacking any of these three is the number one reason salespeople fail. A lack of activity, blaming the economy and other outside circumstances, and ultimately not doing what needs to be done every day whether you feel like it or not, all come down to an issue with one or all of these three.

Also, you want someone with a strong work ethic who is seeking a career instead of a job.

Hiring tip #5: Have a hiring process.

Have several people put their eyes on a potential hire. Meet all their decision makers such as spouses. Do all your testing, check all paperwork, cross all your T’s and dot all your I’s. Don’t take shortcuts, have a process and stick to it like a pilot doing preflight.

Continued on page 22

Page 20

November, 2013

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

How to Hire Top Sales Reps Continued from page 20 Hiring tip #6: Shake up the testing process.

Telling an applicant you are about to hire that they did not get the job, bringing them to an event with an open bar, playing golf with a candidate, or visiting them at their home, are some great ways to find out what people are really like. While you should absolutely use personality tests, in-office interviews, and other standard, accepted hiring practices as your foundation, realize that most tests can be beaten, and most people can put their best mask on temporarily. To find out what people are really like, move them out of the typical hiring environment.

Hiring tip #7: Be skeptical of references, especially personal references.

Anyone can find a brother-in-law, friend they went to college with, or a third cousin twice removed to say the candidate is the best thing since the wheel. If they are that good, the wheel never would have been invented.

For John Chapin’s free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For permission to reprint, 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.

Hiring tip #8: Start not with what your company can do for them…

Be wary of people who lead by asking what the base or draw is and what benefits they will get.

Hiring tip #9: Candidates should be transparent and forthcoming.

Yes, applicants should be willing to give you access to all their social media information, and all their other information for that matter. That said, you should be able to find enough information on applicants without having to get social media passwords. It’s just another good test to see if the applicant may have something to hide. Also, someone with a very small or no online footprint is an orange flag. Investigate further.

Hiring tip #10: Have standards and stick to them as if your life depends upon it…

Because the life of your business does depend upon it.

In addition to hiring standards, you need performance standards and time lines that are agreed upon.

Accountability is extremely important.

Hiring tip #11: Hire slowly and fire quickly.

Do the work and don’t cut corners. A lot of work on the front end will avoid a lot of pain once you hire the person and they don’t work out. Also, once you realize you have a duck instead of a swan, and they are not living up to the standards agreed upon under tip #10, cut the cord fast.

Hiring tip #12: Provide the right environment.

It doesn’t help to hire the right people if you bring them into an environment where chronic underperformers, negative people, a lack of support, and other similar cancers exist.

FYI EXPRESS

3 Easy Questions can create more Revenue!

When you sell an auto policy, ask your client: 1) Do you have an extended service contract for your car or Motorcycle?

2) Do you own a Motorcycle, RV or Boat?

3) Do you want me to quote them; it will only take a second?

When you sell a Home Owner's policy, ask your client: 1) Do you own a cat or dog?

2) Do you have a Home or Appliance Warranty?

3) Do you want me to quote them; it will only take a second.

Easy, fast and profitable! This is for new applications.

More tips at www.GoAgents.com Page 22

November, 2013

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

Biggert-Waters Flood Insurance Reform Act of 2012: Resources to communicate changes to the NFIP

AutoTown Insurance Acquires Fling Insurance of Lagrange, GA AutoTown Insurance announced today it closed on the acquisition of Fling Insurance Agency Inc. Located at 224 Greenville Street, Lagrange GA 30241; the new location highlights the company’s expansion plans outside of the metro Atlanta market. With the addition of the new location, ATI continues to expand its Georgia footprint and continues being the largest independent, non-standard insurance agency in the state.

Commenting on the acquisition, ATI President Dustin Walsey said: "The new store is significant as we look to strengthen our presence throughout the state of Georgia. Fling Insurance has been serving the Lagrange market for over 30 years. The new location is a perfect launching store to expand to other markets in Southwest, Georgia and into Alabama.”

Flood insurance rates for some policyholders increased starting October 1 as the Federal Emergency Management Agency (FEMA) continued to implement the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12). The first phase of rate increases (Section 100205) affects many policyholders who own buildings constructed before their community adopted its first Flood Insurance Rate Map (FIRM). You can help your clients understand the changes and prepare for their new bill.

One of the most important things to know is that not everyone will see immediate rate increases as a result of BW12. Only one group of policyholders—those in high-risk areas paying pre-FIRM subsidized rates—might be affected by the changes taking place this year. Many of these policyholders historically have paid subsidized rates that do not reflect the property’s true risk. Nationwide, about 20 percent of all NFIP policies are subsidized.

To help you discuss these changes with your clients, FEMA developed a suite of resources, including the:

ATI Chairman, Emanuel Fialkow added: "Lagrange makes strategic sense for the Company and Fling was an ideal fit. We look forward to getting involved in the local community and continuing our sponsorships. There is substantial growth potential in the western part of the state and ATI wants to be a major player. Our business practices of providing affordable insurance at a fair price will help the people of Lagrange save money on their insurance. Over the next 6 months, we will be opening additional stores in the Southwestern, Georgia markets.”

About ATI Insurance: AutoTown Insurance is one of the largest independent insurance agencies in the Southeast. Based in Peachtree Corners, Georgia, Auto Town has been protecting and insuring the community since 1970. ATI Insurance operates retail stores in Georgia and South Carolina under the AutoTown Insurance brand name. Auto Town Insurance services clients in person at its retail locations, over the phone at 404-5915020, as well as online at http://www.atiinsurance.com. ATI’s mission is to provide quality insurance solutions at a fair price.

What to Know and Say Factsheet. These talking points can help guide your conversations about BW12.

Quick Reference Guide. Keep this guide on hand as an outline of important dates and changes.

BW-12 Brochure. Share with your clients so that they always have the necessary information on hand when they make decisions about their policies.

Additionally, FEMA partnered with the Insurance Information Institute to create six videos that provide details about the legislation and give advice on how your clients can prepare. Each video was developed around a specific topic.

Overview What is a Subsidized Rate Moving Away From Subsidized Rates Addressing Flood Risk Elevation Rating Reducing Insurance Costs Visit FEMA.gov/BW12 for the most up-to-date information.

FYI EXPRESS

Page 24

November, 2013

Georgia e gia Geo gia Georgia Georgia Geo gia Georgia Homeowners

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

Wayne Hooper Reports: “Do You Speak Insur-ish?”

By Wayne Hooper Recently, I began volunteering as a docent in a museum in Ellijay, GA. Learning about the history in North Georgia stirred my passion for the history about how and why we came here. One of the asides of a history study is the terminology and sayings that define the "American" language.

phrases into the language we use in day to day conversation without realizing their origins. Many words we invented have no other alternative in other languages, such as "to Google" something.

The insurance business has its own sub-language which evolved from terms used in Latin, Old English and the Maritime industry. Most of these terms are meaningless to your customers.

In the 1970's "Easy to Read" legislation was passed requiring the policy text to be understandable to a person with a 8th grade education. It also defined how the punctuation was to be used, as a misplaced comma can add or subtract coverage based on the wording.

The simplified language expanded coverage so that many more situations were covered than previously. The industry began adding back exclusions to close the holes and restricting the coverage over the years.

I think the “American" language is a distinct language because it incorporates Scot, Irish, English, Jewish, Polish, Spanish, Chinese, Internet , African words and FYI EXPRESS

Continued on page 28

Page 26

November, 2013

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Home Age - 25 Years or Newer Replacement Cost on 10 Years or Newer Replacement Cost Personal Effects Liability Limits - $25,000 to $300,000 Deductible - $500 included

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

1395w–28(f)), as amended by subsections (a) and (c), is amended—

Wayne Hooper Reports: Continued from page 26 A typical P&C policy now contains more exclusion pages than the coverage, making it difficult to follow as coverage on the first page is modified or excluded on page 6. It looks like it is time to rewrite the policies again.

A successful agent quickly learns how to translate "insur-ish" into every day terms so their customers can make an informed decision. The challenge for the future as we move through the "age of the internet" is to keep up with the terms and software used by our customers. I stumbled on this problem several times with young managers fresh out of graduate school, assuming the sales staff knew all of the terminology and use of Lotus, PowerPoint, Twitter, Texting, EXCEL, AVENUES and Word which they used in school.

A friend recently sent me a copy of the 906 pages “AFFORDABLE CARE LAW" for my reading entertainment.

Unfortunately it is written in legal terminology modifying existing laws which makes it almost impossible to follow without the prior laws laid out beside it.

A small example paragraph from page 340 out of 906 pages of the AFFORDABLE HEALTH CARE LAW

(1) in paragraph (2), by adding at the end the following new subparagraph: ‘‘(C) If applicable, the plan meets the requirement described in paragraph (7).’’; (2) in paragraph (3), by adding at the end the following new subparagraph: ‘‘(E) If applicable, the plan meets the requirement described in paragraph (7).’’; (3) in paragraph (4), by adding at the end the following new subparagraph: ‘‘(C) If applicable, the plan meets the requirement described in paragraph (7).’’; and (4) by adding at the end the following new paragraph Did you follow those changes? Or do you know more than when you first started reading it?

Other areas of the law are written in plain English defining what can be done and not done by the hospitals and doctors, but mostly it delegates the standards (Rules, Guidelines, Reports, Payment amounts) to the "Secretary of Health and Human Services" to develop them. In short, we are going to be learning how this plays out for the next few years.

(e) AUTHORITY TO REQUIRE SPECIAL NEEDS PLANS BE NCQA Continued on page 30

APPROVED.—Section 1859(f) of the Social Security Act (42 U.S.C. FYI EXPRESS

Page 28

November, 2013

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

Historical terms and facts (?) just for fun!

Wayne Hooper Reports: Continued from page 28 Eddie Emmett has developed classes to take some of the mystery out of it. As of today only three (3) Navigators are approved in Georgia per National Public Radio. Eddie is one of the few to pass the test and be approved but the opportunity is there for any agent to learn that extra skill with a little study.

Editor’s note: It’s one thing to speak in terms understood by the client.

It’s another when we fall into the trap of using our own “Insurance-Eze” slang.

Since Wayne saw fit to include my name I thought I’d relay a true story about my brother-in-law and agency owner Randy James’ use of Insurance-eze.

Over 20 years ago Randy was our agent in one of the Esquire Insurance Agencies. It was in the day before word processors so Randy hand-wrote a memo to one of our auto insurance customers.

As it turns out, the policyholder’s Motor Vehicle Record showed his Driver’s License was suspended so the insurance company was going to cancel the policy.

Here’s what Randy wrote: “Your ins co ran an MVR and found that your lic has been susp’d so your pol is getting cxl’d.”

After reading the memo I turned to Randy and said “Your Lic has been Susp’d?”

And they still smelled pretty good by June. However, since they were starting to smell, brides carried a bouquet of flowers to hide the body odor.

Hence the custom today of carrying a bouquet when getting married.

Baths consisted of a big tub filled with hot water.

The man of the house had the privilege of the nice clean water, then all the other sons and men, then the women and finally the children.

Last of all the babies.

By then the water was so dirty you could actually lose someone in it.

Hence the saying, "Don't throw the baby out with the bath water!"

Houses had thatched roofs-thick straw-piled high, with no wood underneath.

It was the only place for animals to get warm, so all the cats and other small animals (mice, bugs) lived in the roof.

When it rained it became slippery and sometimes the animals would slip and fall off the roof.

The floor was dirt. Only the wealthy had something other than dirt.

Wayne Hooper Cell # 678-296-6345

Hence the saying, "Dirt poor."

Wayne Hooper is a retired Insurance executive and agent with 43 years’ experience in the P&C industry. A Georgia native, born in Tifton, Ga., Wayne graduated from Georgia State University with a degree in Psychology. He was commissioned into the Army on graduation and served in Germany.

Wayne has been an underwriter, supervisor, manager, Product Manager, Reinsurance coordinator, agent, and Sales Manager with various carriers and MGA’s in his career. He recently retired from Kemper Specialty Insurance Co. after 13.5 years of service to join the staff of the FYI Express as a contributing editor.

Wayne enjoys good humor, good food, good stories, history, sailing, antique cars, and hiking in the North Georgia Mountains. Not always in that order, depending on the weather.

FYI EXPRESS

Most people got married in June because they took their yearly bath in May,

Hence the saying, "It's raining cats and dogs."

Wayne Hooper Reports …

Wayne@FYIEXPRESS.com

Here are some facts about 1500's English terms we still use.

The wealthy had slate floors that would get slippery in the winter when wet, so they spread thresh (straw) on the floor to help keep their footing.

As the winter wore on, they added more thresh until, when you opened the door, it would all start slipping outside. A piece of wood was placed in the entranceway.

Hence: a thresh hold.

Lead cups were used to drink ale or whisky.

The combination would sometimes knock the imbibers out for a couple of days...

Someone walking along the road would take them for dead and prepare them for burial. They were laid out on the kitchen table for a couple of days and the family would gather around and eat and drink and wait and see if they would wake up.

Page 30

Hence the custom; “holding a wake."

November, 2013

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