Louisiana Agent August 2017 A publication of the: Independent Insurance Agents & Brokers of Louisiana Inside this issue: •
Engage Your Top Performers
•
Proceed Carefully If You Receive A Subpoena
•
Is Health Insurance On Your “To Do” List?
•
So Misused Words That Make Smart People Look Not So Smart
Louisiana Agent August 2017 IIABL STAFF Jeff Albright Chief Executive Officer jalbright@iiabl.com Francine Berendson Director of Communications & Events fberendson@iiabl.com Mike Edwards, CPCU, AAI Director of Education medwards65@aol.com Kim Jackson Education & Membership kjackson@iiabl.com Karen Kuylen Director of Accounting kkuylen@iiabl.com E. Lee Mowe Marketing Representative lmowe@iiabl.com Rhonda Martinez, CIC Director of Insurance rmartinez@iiabl.com
In this issue:
ACT Release Agency Cyber Guide ................ 5 Engage Your Top Performers ........................7-8 Ask Mike Company Car Has No UM ........................ 10-16 RLI Rate Change & New Features ................. 18 Commissioner’s Corner.......................... 19 – 20 Proceed Carefully If You Receive A Subpoena ............................. 21 – 23 Rate Filings ...................................................... 24 New members welcome ............................... 24 Tech Tips.................................................. 25 – 27 River Oaks High Student Receives InVest Scholarship .......................................... 27 Is Health Insurance on Your To Do List? ........ 28 20 Misused Words That Make Smart People Look Not So Smart ........................ 29,34 Calendar ......................................................... 30
Jamie Newchurch Insurance Services jnewchurch@iiabl.com
Improper Auto Wear & Tear ...................... 31-32 IIABL Partners .................................................. 37
Lisa Young-Crooks Executive Assistant lyoung@iiabl.com Louisiana Agent 4
AGENTS COUNCIL FOR TECHNOLOGY RELEASES AGENCY CYBER GUIDE Resource helps Big “I” agencies protect customer data. The Independent Insurance Agents & Brokers of America’s Agents Council for Technology (ACT) has released the ‘Agency Cyber Guide 1.0’ which addresses cybersecurity regulations and provides corresponding compliance resources. “ACT has created the ‘Agency Cyber Guide’ to help address one of the highest priorities for every agent and broker: keeping customer data protected,” says Ron Berg, ACT executive director. “Having to communicate to customers that their private information has been breached can cripple a business and incur thousands of dollars of costs and penalties. With such high stakes in mind, the ACT Security Issues Work Group has complied this resource for Big ‘I’ members.” The Agency Cyber Guide is offered at no cost to independent agents and brokers. Some individual regulatory resources listed are also free, such as an updated Agency Cybersecurity Policy template - which agencies can download, brand and be in compliance for having a written security policy. ACT will monitor the changing cybersecurity regulatory environment and update the guide as needed.
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Engage Your Top Performers with Impactful Projects This is a priority for every agency leadership team. Finding the talent is difficult, training the new hire is achievable and then the challenge is ongoing – growing and retaining your agency’s team members. The most important employee retention step is to have ongoing conversations. For example, when was the last time you asked? What do you consider your strengths at work? What is the favorite part of your role? What else would you like to be doing? As the leader, ask yourself: How can I contribute to helping my team members grow – individually and with
the company? What are some responsibilities that I can delegate? What training and further skill advancement do they need? There might be a variety of ways to expand your team member’s skills, knowledge and capabilities:
Manage more challenging accounts Run and analyze reports along with forecasting and making recommendations based on the data Take charge of an important project and implement a plan Aim to “stretch” and advance the individual’s skills by assigning a meaningful project. Dele-
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gate a project that has substance and creates impact on the team member’s capabilities and the agency’s strategy or operation. The project experience is a tremendous learning opportunity. Have no fear – coach them to success with the assigned project.
New Hire Training available with IIABL and New Level Partners! Click here for additional information!!
At NLP, our business is about managing projects every day, week, month, etc. We designed an Infographic tool to help when teaching a team member project management skills. Check it out – please use it too: https://files.acrobat.com/a/ preview/d13c86d6-ab1a-46fe-a30fe24107157a41
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IIABL Director of Education, Mike Edwards, CPCU, AAI is your source for technical questions. Contact Mike at medwards65@aol.com or 770.402.1011
Subject: My Company Car Has No UM, but My Personal Auto Does – Am I Covered? Q. I am mostly retired from the agency, although I still handle a few of my long-standing commercial accounts. My question involves my granddaughter’s insurance. She lives in another part of the state, and is a vice president with an engineering firm. A few weeks ago, a co-worker of hers was driving a company car and was broadsided at an intersection by a driver who ran a red light. Her friend was seriously injured, but is expected to make a full recovery in time. The at-fault driver has minimum limits of liability insurance. The company my granddaughter and her friend work for does not carry UM (Uninsured Motorist) coverage on their BAP (Business Auto Policy). My granddaughter and her friend are both of-
ficers in the corporation, and are furnished company cars for business and personal use. Her friend was driving her company car over the weekend on personal errands, and so will not be covered under Workers Compensation. She filed a UM claim under her personal auto insurance, but learned that her policy’s UM coverage excludes her use or occupancy of an auto that is furnished for her regular use. That is what prompted my granddaughter to contact me. She wants to know if her UM coverage has the same exclusion. She emailed me a copy of her auto policy, but I haven’t worked with personal lines in many years, Continued page 11
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so I’d appreciate it if you would review the UM coverage. I am attaching her auto policy to this email. Do you think the policy’s UM will cover her if she were to be injured by an at-fault driver while she was driving her company car? Also, is this exclusion permitted under Louisiana statutes? The reason I asked is that my own auto policy doesn’t seem to have that exclusion. A. What an awful situation for your granddaughter’s friend, and I can certainly understand you and your granddaughter wanting to find out about her own UM coverage. This situation is also a good Reality Check for every insurance practitioner, as we hack away each day with our myriad tasks, jammed schedules, deadlines, and details, to remember that our mission is to be there when the customer needs us. As my colleague Bill Wilson often says, the purpose of the insurance business is to offer “the best combination of insurance policy forms and risk management techniques to minimize the likelihood of a serious or even cata-
strophic financial loss.” For the discussion below, assume your granddaughter is Jill, and her co-worker friend is Jennifer. My first observation is that Jill’s auto policy is a proprietary form, and not ISO. That doesn’t suggest that all proprietary forms are subpar. While it is widely agreed that coverage forms produced by ISO (Insurance Services Office) are “the industry standard,” they are not necessarily The Gold Standard. I have seen many proprietary forms that are superior to ISO. Also, many proprietary forms are mostly straight-ISO, with tweaks. At the same time, I see proprietary forms that are not as broad as ISO, and some, significantly so. Caveat emptor. Issue #1: Comparison of UM exclusions. Here is the pertinent UM excerpt from Jill’s auto policy, followed by the comparable provision in ISO. Continued page 13
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Excerpt from Jill’s auto policy [my emphasis added]:
Uninsured Motorist Coverage Exclusions Coverage under this Part will not apply: 1. To bodily injury sustained by any person while using or occupying a motor vehicle that is owned by, or available for the regular use of, you or a family member. Comment: As you can see, Jill’s policy, like Jen-
nifer’s, clearly and unambiguously excludes her use of her company car. Excerpt from the ISO UM endorsement in the Personal Auto Policy (PAP):
PP 04 78 05 16 Uninsured Motorist Coverage – Louisiana:
(1)(a)(i) The coverage provided under this Section may exclude coverage for punitive or exemplary damages by the terms of the policy or contract. However, it is my understanding that insurers may add additional exclusions, assuming they are approved by the Louisiana Department of Insurance (LDI), and also do not violate some other statutes, or jurisprudence. In contrast, some states do not permit UM exclusions not specifically included in statute. Issue #3: BAP UM vs Workers Compensation (WC). Uninsured motorist coverage is not required in Louisiana, so employers may or may not elect to include it on their BAP. One of the most common reasons employers do not purchase UM is that while the employee is using or occupying a company vehicle on company business, WC applies.
Exclusions A. We do not provide Uninsured Motorists Coverage for "bodily injury" sustained by:
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1. An "insured" while "occupying", or when struck by, any vehicle owned by that "insured" which is not insured for this coverage under this policy. This includes a trailer of any type used with that vehicle. Comment: The ISO UM form filed for Louisiana only
excludes an auto Jill owns that is not insured under her policy. It does not exclude an auto which is furnished or available for her regular use, such as a company car.
Issue #2: Is the exclusion legal in Louisiana? You raised an excellent question about whether or not Louisiana statues permit this exclusion in Jill’s (and Jennifer’s) auto policies. To the best of my knowledge, the only exclusion specifically permitted in our UM statute is the following, which is contained in one sentence near the end of the first section of the UM statute:
22: 1295. Uninsured motorist coverage The following provisions shall govern the issuance of uninsured motorist coverage in this state: Louisiana Agent 13
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However, coverage under WC vs UM is somewhat apples vs oranges. Here are just a few examples: (1) WC has statutory limits for wage loss, death benefit, etc., whereas amounts recoverable under UM are subject to tort. However, the total amount of recovery under UM is subject to policy limits. (2) WC does not cover pain and suffering, etc., but UM can. (3) UM only responds to legal liability of the tort feasor, but WC is not based on tort.
(4) UM recovery is often delayed due to the glacial speed of tort action, but WC payments are made much sooner. (5) For an employee with a company car, WC only applies when the employee is acting within the scope of his or her duties. UM (either from BAP or PAP – if coverage is provided), is available on a 24/7 basis. Here is an excellent article on this subject posted on the IIABA’s Virtual University website. At the end of the article are very interesting comments from a
number of VU subscribers. “Do Businesses Need to Buy UM Coverage?” Issue #4: Options for Jill under her employer’s BAP: (1) Purchase UM. This is probably feasible only if she works for a small company. It is possible that if the owner(s) of the company were aware of the insurance gap for employees such as Jill and Jennifer with company cars, they might elect UM. At a minimum, it seems the insurance producer writing the BAP should discuss this with the company owners. The last thing the producer would want to hear from the company owner after-the-fact, such as in Jennifer’s current situation, is, “Why didn’t you tell me about the potential coverage gap for my employees with company cars?” Equally awkward for the producer would be if the executive officers have exempted themselves from WC, and had the same exclusion in their auto insurance that Jill and Jennifer do. I do not know if that would rise to an E&O, unless the producer also wrote the personal auto insurance of the executive officer involved. But it might make keeping the account at renewal more difficult. Continued page 16
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(2) Drive Other Car (DOC). The DOC endorsement (CA 99 10) looks like a viable option, at first glance, since it can provide any or all the four basic BAP coverages (liability, medical payments, uninsured motorist, and physical damage). However, none of the elected coverages apply to an auto owned by the company. Issue #5: Options under Jill’s Personal Auto Policy (PAP): (1) Rewrite her policy with another insurer. Given the potential for a catastrophic loss, such as Jennifer is facing, it only seems prudent to place her PAP with an insurer that does not have the UM exclusion for an auto which is furnished or available for regular use. (2) Extended Non-Owned. As the title indicates, the Extended Non-Owned Coverage – Vehicles Furnished or Available for Regular Use endorsement (PP 03 06) is designed to offer a buyback for the “furnished or available” exposure. However, the only two coverages the endorsement can provide are liability and medical payments – both of which also have the “furnished or available” exclusion in the unendorsed PAP.
Additional information.
These articles are available on the IIABA’s Virtual University. “Comparing Apples to Oranges” (ISO PAP vs non-ISO PAP) “Price Check” (ISO vs proprietary forms) “Is Insurance a Commodity?” (Resource page with links to several dozen articles) “Is It ISO or Is It Memorex Insurance Company?” (How to distinguish between ISO and proprietary forms)
These materials are intended for educational purposes only and should not be relied upon as legal advice. Please consult a qualified attorney for legal advice.
(3) Named Non-Owner Coverage. This endorsement (PP 03 22) would not be an option if Jill currently owns an auto, which I assume she does, based on the auto policy you sent. But for employees who are furnished company cars for their regular use, and who do not own any autos, this endorsement can provide liability, medical payments, and uninsured motorist coverage. The current (2005) ISO edition of the endorsement excludes liability and medical payments for an auto that is furnished or available for regular use, but a buyback option can be purchased. However, if the underlying auto policy (such as Jill’s and Jennifer’s) contains a UM exclusion for autos furnished or available for regular use, that insurer’s endorsement might not buyback the exclusion. (4) Covered by another auto policy. Assume that Jill is married to Jack, who owns an auto which is insured separately from Jill’s. Since Jill is an “insured” in Jack’s auto policy, the UM coverage in his policy would also apply to Jill. So if Jack’s policy does not have a UM exclusion for an auto “furnished or available for the regular use of you or a family member,” I think she would have UM coverage in her company car.
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RLI Personal Umbrella Rate Change & New Features RLI Personal Umbrella rates are changing on all renewal business effective 9/15/2017. All new business should be quoted on RLI PUP Access Portal. Please note RLI will no longer provide rate sheets to manually quote. All quoting needs to be done on the RLI PUP Access Portal. If you do not have access to the RLI PUP Access Portal, please contact me at jnewchurch@iiabl.com for the link to register. Each user should have his/ her own log in credentials for the website. Please discard any rates sheets that you currently have as they are outdated.
RLI PUP Access Portal: The RLI Portal is available to producers and CSRs. It will allow you to quote, check the status of accounts, print forms (such as renewal applications, bills, policy forms) and access underwriting information.
Electronic Signature/Payment: E-signature is available on the RLI PUP Access Portal. E-signature allows insureds to electronically review, sign and pay for a new business RLI Personal Umbrella ALL ONLINE!! This eliminates the step of having to mail your apps and payments to our office for binding. When quoting on the RLI PUP Access Portal, simply select the signature option , “Send a secure email to the insured to eSign and Pay Online” and click submit. The insured has 5 days to sign and pay for the new business PUP. The status of the e-signature account will be on the RLI PUP Access Portal.
Request a quote on Big I Markets at www.bigimarkets.com
•
Upload the PUP Application
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Request a Binder
•
Enter Payment Information
•
Receive Policy in Big I Markets
Online Renewal Option: Policyholders now have the option of completing their renewal application and making their renewal payment online!! All policyholders will receive an invitation to complete the entire renewal process online. While we certainly encourage the use of eRenewal, a paper copy of the renewal application and correspondence will still be sent. The insured can choose to complete and return the paper application if preferred. If the online option is chosen, the insured will be given the RLI PUP Renewal web address and unique, password protected log-in information. The majority of policyholders will be able to review and update their policy rating information, sign the questionnaire electronically, and make the policy premium payment. For those policyholders where additional underwriting is required, the system will notify them RLI is reviewing the application. If you have any questions, please feel free to contact me at jnewchurch@iiabl.com or 225.236.1350.
Electronic Payments: Big I Markets has the capability to accept credit/ debit card or checking/savings account payments on their secure website! The process is simple:
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Commissioner’s Corner
Tools for Consumers and Agents from the Department of Insurance As the new school year kicks off and many rush to purchase new pencils, notebooks and other school supplies, it’s a good time to discuss the tools and supplies that the Louisiana Department of Insurance (LDI) has available for agents and consumers alike. In our work to make the Department website informative, engaging and helpful, we’ve rolled out several new features over the last 18 months aimed at improving utility and providing greater access to information. Some of our most popular web tools have gotten a refresh this year. The interactive Shop Your Rates guides for auto and homeowners rates now have
complaint data alongside sample rates. Since we encourage insurance consumers to try and get as complete a picture about a company as possible, this additional complaint data provides another factor for them to consider when selecting a policy. Another feature providing the public with greater access to information is the online Regulatory Actions database. The database posts all final regulatory actions issued by the LDI since January 1, 2016, information which was previously available upon request. Database entries are arranged in alphabetical order, dated and include final order documents. By posting this data last year Louisiana has aligned itself with most other states. The Department has also made a concerted effort to increase social media offerings. By engag-
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ing with the public online and offering agents material to re-post and refer to their clients, the LDI is furthering its effort to educate Louisiana citizens about insurance matters. The Department’s social media feeds also offer up-to-theminute information on press releases, activities and events offered by the Department and its partners. Educational content for posting and linking is also available from the National Association of Insurance Commissioners (NAIC) through its consumer portal. In the past twelve months, we have put a premium on creating video content for sharing with insurance policyholders and the media. We’ve created videos for Learning More About Flood Insurance, Applying for an Agent or Adjuster License and What to Look for in a Health Insurance Network. All of these videos can be found on the Department’s YouTube page or at www.ldi.la.gov/news/videos. Please feel free to link to and share them with your clients.
In preparation for hurricane season and Medicare Open Enrollment, we have created new week-byweek consumer guides on these topics. Using videos, social media and my annual tour around the state regarding hurricane season risk and preparation, we have spread the word to Louisianans about concrete steps that they can take to make filing a claim following a hurricane emergency easier. Some tips include creating a home inventory, checking policies and taking healthcare precautions in an emergency. Next month we will be supporting the important work of our Senior Health Insurance Information Program (SHIIP) by unveiling a week-by-week guide for Medicare Open Enrollment, bringing attention and education to what can be a confusing process. All of these guides are available on our website and for printing and sharing with your clients.
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Proceed Carefully If You Receive A Subpoena By Mark Shackelford, Senior Underwriter, Vice President Swiss Re Corporate Solutions
Over the past few years, we have seen an increase in the number of subpoenas served on insurance agents even if they are not a party to the litigation. How those subpoenas are handled can mean the difference between whether or not they develop into E&O lawsuits. The purpose of this article is to instruct and inform you as to how to proceed should you ever be served with a subpoena in litigation wherein you are not a party to the lawsuit. Any agency receiving a subpoena should proceed with caution. Though the caption on the subpoena does not list the agency as a party to the litigation, the fact remains that a legal proceeding is pending and it is not difficult for the lawsuit to be amended to add the agency as a party. Sophisticated attorneys will often serve subpoenas in order to try
defective or improper subpoena may result in an agency disclosing information that may be protected by state insurance regulations or Federal laws. Therefore, an agency that responds to a defective or improper subpoena puts itself at risk of facing a possible E&O claim, lawsuit, or possible regulatory action. There are three types of subpoenas that an insurance agency and insurance agent might receive when the agent and agency are not parties to a lawsuit. One, a subpoena that demands documents and electronically stored information (“ESI�). It is important for you to be represented by a lawyer when you produce the documents and ESI. For example, the documents and ESI might contain financial information about the insured that is confidential
and obtain documents or testimony that could help support a claim against your agency. For this reason, we suggest every agency should have procedures in effect as to exactly what must be done if it receives a non-party subpoena. An agency that receives a subpoena is legally obligated to comply with that subpoena, or it runs the risk of possibly being held in contempt of court, even if the subpoena is somehow defective. A subpoena cannot simply be ignored or disregarded. For this reason, Swiss Re Corporate Solutions always suggests that an attorney be involved to assist the agency in responding to any subpoena received. Often, a subpoena is defective because it fails to comply with the statutory requirements for service, or it requests information that is beyond what is permissible. If your agency responds without the assistance of counsel, it is possible that it will be complying with an improper subpoena and, thus, disclosing information that it is not required to be disclosed pursuant to state law. In fact, responding to a Louisiana Agent 21
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and might not otherwise be something to which the party issuing the subpoena has a right to obtain. The documents and ESI should be reviewed by your lawyer to ensure the proper documents and ESI are disclosed. The second type of subpoena requires someone to appear at a deposition or trial to testify. Usually it is a deposition for a lawsuit involving one of your insurance customers. Again, it is important for an agent to be represented by a lawyer. The lawyer will review the pertinent materials with you and help prepare you for your testimony at the deposition. It is preferable to be prepared when you testify. It diminishes the chance the agency will be brought into the lawsuit as a party. Moreover, a lawyer will attend the deposition with you to ensure the rules of court are followed and that your rights are protected. For example, the rules of court, depending upon the state, usually require the agency to be compensated for the work it performs producing the documents and compensation for an agent’s professional time spent attending a deposition. Your lawyer will negotiate the compensation with the attorney who served the subpoena on your agency. The third type of subpoena is a combination: a subpoena that commands your agency to produce documents and commands a person from the agency to testify at a deposition. You should immediately contact Swiss Re Corporate Solutions. We will assign an experienced lawyer to review the materials, prepare you for testifying, and to ensure the rules of court are followed. Many E&O policies contain language that defines a “claim” or “potential claim” against the agency as including the receipt of a subpoena. For this reason, it is a good practice for every agency to review the language contained in its E&O policy related to subpoenas so that it understands the policy terms and provisions related thereto. Our recommendation has always been that when an agency receives a subpoena it should immediately advise Swiss Re Corporate Solutions of the subpoena. For example, the language contained in the Swiss Re Corporate Solutions E&O policy, issued to MIIAB members through Agents Assistance Corporation, defines a claim as including the receipt of “a sum-
mons, a subpoena, or any other notice of legal process.” As such, an agency that receives a subpoena and responds to it on its own without notifying its E&O insurer runs the risk that it failed to report a claim in compliance with the terms of its E&O policy. This failure to provide notice to the insurer could potentially result in a disclaimer of coverage by Swiss Re Corporate Solutions for any claim or lawsuit that may arise in connection with it. An additional reason why an insurance agency should advise its E&O insurer of a subpoena that it receives is because many E&O policies provide coverage to help assist the agency in complying with the subpoena. As an example, your current Swiss Re Corporate Solutions E&O policy provides subpoena coverage of $10,000 per policy year, which is not subject to a deductible, to have counsel assigned to help the agency respond to subpoenas. In our experience, an agency with an attorney involved in responding to a subpoena is less likely to be dragged into litigation. It is for this reason E&O insurers provide this type of subpoena coverage. Every insurance agency should make certain that it has an established procedure in effect concerning how it will deal with any subpoena it receives. It should also ensure the procedure is known and followed by all employees. As part of that procedure, there should be a method for notifying the E&O insurer for the agency about a subpoena it receives. If, after being notified about the subpoena, the E&O insurer declines to assign counsel to assist in responding to the subpoena, the agency should then consider whether it may be best to retain counsel on its own. By following these steps, the prudent insurance agency will be in a better position to avoid becoming a party to litigation related to a subpoena it receives. This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group ("Swiss Re") and/or its subsidiaries
and/or management and/or shareholders.
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Company Charter Oak Fire Insurance Co Travelers Indemnity Co Travelers Indemnity Co of America Travelers Indemnity Co of Connecticut
Allstate Insurance Co. Great American Ins Co. Great American Assurance Co Great American Alliance Great American Ins New York Great American Spirit Ins Co Amtrust Ins Co of Kansas Technology Insurance Co Wesco Insurance Co Sentinel Insurance Co Employers Ins Co of Wausau Wausau Underwriters Ins Co Liberty Mutual Insurance Co Liberty Mutual Fire Ins Co LM Insurance Corp First Liberty Insurance Corp
Number of Policyholders:
Coverage Type
Overall % Impact:
Overall $ Impact:
5 – Commercial Multiple Peril
+5.2%
+$162,895
277
4 – Homeowners Revised rate only
+2.1%
+$2,097,500
50,535
16 – Workers Comp
-5.40%
-$411,550
248
New: 10/1/2017 Renewal: 10/1/2017
+9.0
+$2,549,055
2,856
New: 1/1/2018 Renewal: 1/1/2018
+7.7%
+$266,372
2,021
New: 9/13/2017 Renewal: 9/13/2017
19 – Commercial Auto
+10.2%
+$1,27,881
274
New: 2/1/2018 Renewal: 2/1/2018
19 – Commercial Auto
+7.570%
+$239,689
121
19 – Commercial Automobile 5 – Commercial Multiple Peril
Changes
New: 9/1/2017 Renewal: 9/1/207
New: 12/8/2017 Renewal: 12/8/2017
Liberty Insurance Corp
Atlantic Specialty Ins Co
Megan Provenzano Ace Insurance 3412 Pontchartrain Dr. Slidell, LA 70458 megan@aceia.com 985-643-5440
Jonathan Usky RIG, LLC 2833 Brakely, Suite B Baton Rouge, LA 70816 jusky@rigllc.org 225-372-4040
New: 11/1/2017 Renewal: 11/1/2017
Ashley Frederic America’s Choice Insurance Agency 1234 Del Este Ave., Ste 901 Denham Springs, LA 70726 ashley@americaschoiceagency.com 225-271-4991 Louisiana Agent 24
Keep Track of Every Receipt with Expensify I just finished working with my accountant to finish our 2016 taxes (yes, I am usually a late filer). I was double-checking our returns before we sent them in and discovered there were some donations I had forgotten about that would help reduce our tax liability. Karen and I are on the advisory board for a non-profit and our travel expenses to the meetings can be deducted. Fortunately, I use an online expense management platform called Expensify. Before using Expensify, my system included a physical envelope where I would place receipts for every trip. Once back at my office I would scan those receipts, create an expense report using a desktop application, print the report as a PDF document and, if reimbursable, forward that along with an invoice to the client for payment. That system worked well for a long time. Expensify has significantly reduced the amount of time I spend managing all my expenses – personal and business.
If you do not have an organization-mandated expense management system, then Expensify may help you, too.
How Expensify Works There are multiple ways to add receipts and expense information to the platform and a report: Manually on the Expensify website. The site is mobile responsive, so it works quite
well on a tablet device. You can also drag a scanned image of the receipt onto the website to have it automatically uploaded. Using the free mobile app (for iOS and Android platforms), you can take a picture of the receipt and manually add information about the merchant, amount, and the particular report it should be assigned. SmartScan provides the ultimate hands-free experience. When you take a picture of the receipt or upload the receipt to the website, the SmartScan process reads the receipt and automatically enters the merchant’s name, transaction date, and the transaction amount. Using this information, SmartScan will create a new expense item automatically. It works quite well. Directly from bank and credit card accounts. Expensify offers eReceipts for expenses imported directly from a bank or credit card account. These are full digital replacements of their paper equivalents for purchases under $75 and, as a plus, are accepted by the IRS. You can also manually add an expense including mileage and time billing expenses on the website and the mobile app and assign them to a particular report. I organize my expenses by a particular trip or event. I also organize general receipts by month. Once completed, with a single click a PDF file is created and saved. The report has an excellent format that includes all receipt images. I then attach this report to an email and forward it to the client for reimbursement. For
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general monthly expenses, I save the report into Evernote. The Individual version of the platform is free. This version is a great way for you to test the platform to see how well it will work for you. The Team version is $5 per month per active user (an active user is someone who submits at least one expense in that month). This version also includes an expense payment approval process. I now keep track of all my expenses — business and personal — on the Expensify platform. What have you found to be an effective way for you to managing expenses and receipts? Let me know.
River Oaks High School Student Receives InVEST Scholarship Financial and insurance literacy program is key to attracting young talent to insurance industry.
InVEST, the insurance industry’s premier classroom to career education program, has awarded a $1,000 scholarship to Rebecca Roy, a student at River Oaks High School in Monroe, Louisiana. The program is a key incentive in attracting new talent to the insurance industry which will have an estimated 400,000 open positions by 2020 and faces a critical workforce gap. “InVEST congratulates Rebecca Roy, one of the 76 students representing 23 high schools, colleges and universities in 8 states, who earned scholarships this year,” says Cindy Hower, InVEST board chair and president of Kellerman Insurance, an independent agency in Holton, Kansas. “InVEST develops future industry professionals by teaching high school and college students about insurance, risk management and financial services. As a result, students from more than
800 InVEST programs across the country are better equipped to pursue careers in an agency, company or other insurance industry organization.” InVEST contributes to the education and development of future insurance professionals through academic programs and scholarships. In high schools, the program offers students a business curriculum which teaches them about the dynamics of insurance agencies and companies. At the college level, the program develops students’ risk management and financial analysis skills. Along with corporate and direct contributions, scholarships are funded through proceeds generated by the InVEST Silent and Live auctions held in conjunction with the Independent Insurance Agents & Broker’s (IIABA or the Big “I”) Legislative Conference. “A successful InVEST program is vital to the financial literacy of our young people, to the future of the independent agency system and to the insurance industry as a whole,” says Robert Rusbuldt, Big “I” president & CEO. “We are concerned that the average age of an insurance agent is almost 60 and as baby boomers continue retiring in record numbers, the InVEST program has the potential to replenish our workforce and to produce the next generation of industry professionals and leaders.” This year, InVEST awarded $75,500 to 76 students pursuing insurance-related degrees. The 2017 scholarship winners represent 23 schools and hail from eight states: California, Connecticut, Florida, Georgia, Louisiana, Michigan, New Hampshire and New York. Click HERE for a complete list of scholarship winners. Scholarship hopefuls from across the country submitted essays describing the influence and benefits of InVEST on their educational plans. The quality of the essay, combined with the applicant’s grade-point average and extracurricular activities, were factors in selecting the recipients. Scholarship checks are mailed directly to the institute of higher learning that each student is attending and will be used exclusively for educational expenses.
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Is Health Insurance on Your “To Do” List? It should be! In this current market, large agencies are offering the “one stop shop” that saves client valuable time and resources. Your employer groups are talking to someone about group health benefits and that someone needs to be you. Is health insurance on the minds of your commercial clients? You bet it is! Health Insurance is a hot topic, and a huge to-do item for business owners. With all the rules and talk in the news about “Repeal and Replace”, it can seem overwhelming. Employers want to offer this valuable benefit but they need trusted quality advisors to help them navigate what could be an onerous task. Employers must provide a competitive benefits package to attract and retain a relevant workforce. The roll of the broker is more important than ever. Why is it a big deal?
According to the Kaiser Family Foundation, more than 177 million Americans receive health insurance through an employer, that is over half of the U.S. non-elderly population. The
value of health care benefits is undeniable. According to the same survey, 87% of workers report that employment-based health insurance is very important to them. All in all, employers pay $668 billion per year to insure employees. Is it worth your time? Absolutely! Not only are you leaving valuable commission dollars on the table, you are leaving your commercial clients vulnerable to the big “one stop shop” agencies. These large agencies can provide your clients with a total benefits package, including P & C and employee benefits. What value can you bring to the table? Trust! Your clients trust you to bring them the best products at the best price on their P & C, they are ready for you to do the same for their employee benefits. More than ever, consumers are looking for someone they trust to help them with their benefit solutions. You want to offer benefits to your employer groups but don’t have the time to stay abreast of all the changes, compliance and regulations? How do I stay current without the increasing demands of my overhead and time? Valued partnerships with trusted allies. A trusted partner is an agency who does not compete with the business you are in, but completes your product offerings by expanding your portfolio. A trusted partner should be experts in their field and can ensure delivery of all marketing processes, service issues and daily challenges faced in maintaining a contented client.
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20 Misused Words That Make Smart People Look Not So Smart We’re all tempted to use words that we’re not too familiar with. If this were the only problem, I wouldn’t have much to write about. That’s because we’re cautious with words we’re unsure of and, thus, they don’t create much of an issue for us. It’s the words that we think we’re using correctly that wreak the most havoc. We throw them around in meetings, e-mails and important documents (such as resumes and client reports), and they land, like fingernails across a chalkboard, on everyone who has to hear or read them. We’re all guilty of this from time to time, myself included. When I write, I hire an editor who is an expert in grammar to review my articles before I post them online. It’s bad enough to have a roomful of people witness your blunder and something else entirely to stumble in front of 100,000! Point is, we can all benefit from opportunities to sharpen the saw and minimize our mistakes. Often, it’s the words we perceive as being more “correct” or sophisticated that don’t really mean what we think they do. There are 20 such words that have a tendency to make even really smart people stumble. Have a look to see which of these commonly confused words throw you off. Accept vs. Except These two words sound similar but have very different meanings. Accept means to receive something willingly: “His mom accepted his explanation” or “She accepted the gift graciously.” Except signifies exclusion: “I can attend every meeting except the one next week.”
To help you remember, note that both except and exclusion begin with ex. Affect vs. Effect To make these words even more confusing than they already are, both can be used as either a noun or a verb. Let’s start with the verbs. Affect means to influence something or someone; effect means to accomplish something. “Your job was affected by
the organizational restructuring” but “These changes will be effected on Monday.” As a noun, an effect is the result of something: “The sunny weather had a huge effect on sales.” It’s almost always the right choice because the noun affect refers to an emotional state and is rarely used outside of psychological circles: “The patient’s affect was flat.” Lie vs. Lay We’re all pretty clear on the lie that means an untruth. It’s the other usage that trips us up. Lie also means to recline: “Why don’t you lie down and rest?” Lay requires an object: “Lay the book on the table.” Lie is something you can do by yourself, but you need an object to lay. It’s more confusing in the past tense. The past tense of lie is—you guessed it—lay: “I lay down for an hour last night.” And the past tense of lay is laid: “I laid the book on the table.” Bring vs. Take
Bring and take both describe transporting something or someone from one place to another, but the correct usage depends on the speaker’s point of view. Somebody brings something to you, but you take it to somewhere else: “Bring me the mail, then take your shoes to your room.” Just remember, if the movement is toward you, use bring; if the movement is away from you, use take. Ironic vs. Coincidental A lot of people get this wrong. If you break your leg the day before a ski trip, that’s not ironic—it’s coincidental (and bad luck). Ironic has several meanings, all of which include some type of reversal of what was expected. Verbal irony is when a person says one thing but clearly means another. Situational irony is when a result is the opposite of what was expected. O. Henry was a master of situational irony. In “The Gift of the Magi,” Jim sells his watch to buy combs for his wife’s hair, and she sells her hair to buy a chain for Jim’s watch. Each character sold someLouisiana Agent 29
Webcasts E&O Risk Management September 5th, September 21st
Ethics July 18, July 19, August 8
Available on Demand
Available on Demand
Flood July 24, August 4
Available on Demand
Commercial & Personal Lines Courses Click above title for courses & dates for 2017 Available on Demand
Seminars E&O Seminars 9/19—Shreveport 9/20– Lafayette 9/21—New Orleans 9/22—Covington
IIABL Fall Education Conference October 19 Shreveport Convention Center
Events IIABR September Luncheon 9/7/2017
IIABR Fall Social 10/5/2017
IIAGNO Company Appreciation at Rock N Bowl— 10/26/2017
CSR Training: The Customer Service Representative is key employee in every agency and is a difficult commodity to find.
Environmental Strategists (eS) Becoming a certified environmental Strategist™ (eS) will equip you with the knowledge to identify, manage and transfer environmental exposures impacting everyday business.
On-Demand Webcasts Masters Series: The Master Series are unique agency management courses from industry experts. in the Masters Series.
Cyber Risk Manager (cyRM) Completion of the Cyber Exposures & Insurance – Training for Agents & Brokers course qualifies you to register for the cyRM certification for FREE.
Pre-Licensing Online prelicensing 3 optional study packages available Click here for additional information
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“Improper Auto Wear & Tear and Mechanical Breakdown Claim Denials” Bill Wilson, CPCU, ARM
Over the years, I’ve responded to requests from agents whose customers have had claims denied under auto policies, with the “wear and tear” and/or “mechanical breakdown” exclusions being cited. For example:
• •
Water in the fuel tank damaged the engine Travel trailer flooring damaged due to freez-
ing
•
Wiring harness caught fire and damaged fuel pump • Radiator leak damaged engine • Air cleaner came loose and dirt entered and caused engine damage
•
Rubber from a tire blowout damaged a fender, hood and firewall
Most recently, I became aware of a claim involving water damage to the interior of an auto as a result of heavy rain that was able to seep through sun roof seals that were damaged by clogged drains. The adjuster cited the aforementioned exclusions, along with “no regular maintenance.” The carrier used the 2005 ISO PAP. First of all, the ISO PAP has no exclusion for “no regular maintenance.” There is nothing in the policy that mandates that an insured maintain anything at all. The closest thing might be the requirement to take reasonable and appropriate action to prevent further loss.
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Second, with regard to wear and tear and mechanical breakdown, this is what the ISO PAP says: 2. Damage due and confined to: a. Wear and tear; b. Freezing; c. Mechanical or electrical breakdown or failure; or d. Road damage to tires. This Exclusion (2.) does not apply if the damage results from the total theft of “your covered auto” or any “non-owned auto”. Notice the “and confined to” language. The exclusion applies only to the actual property that is worn or torn, not to ensuing loss. IF the seals were worn out, there would be no coverage for the seals, but the ensuing water damage would be covered. Given the number of such improper claim denials over the years that I’ve personally seen, there are likely many thousands of legitimate claims that went unpaid. This is another area where an agent earns his or her commission…by advocating for the customer. But to do that, you have to know what the policy does and doesn’t cover. The only
way to know that is by self-directed learning and choosing quality CE, not what all too often passes for “education” today. Bill Wilson, CPCU, ARM, AIM, AAM Founder & CEO, InsuranceCommentary.com Bill@InsuranceCommentary.com or InsuranceCommentary@outlook.com Com•men•tar•y … an expression of opinions or offering of explanations William C. Wilson, Jr., CPCU, ARM, AIM, AAM is the founder of InsuranceCommentary.com. He retired from the Independent Insurance Agents & Brokers of America in December 2016 where he served as Assoc. VP of Education and Research and was the founder and director of the Big “I” Virtual University for over 17 years. He is the former Director of Education & Technical Affairs for the Insurors of Tennessee and, prior to that time, he was employed by Insurance Services Office, Inc. He is a graduate of the Illinois Institute of Technology with a B.S. degree in Fire Protection & Safety Engineering.
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thing precious to buy a gift for the other, but those gifts were intended for what the other person sold. That is true irony.
whole: “You have fewer dollars, but less money.”
If you break your leg the day before a ski trip, that’s coincidental. If you drive up to the mountains to ski, and there was more snow back at your house, that’s ironic.
English grammar can be tricky, and, a lot of times, the words that sound right are actually wrong.
Imply vs. Infer To imply means to suggest something without saying it outright. To infer means to draw a conclusion from what someone else implies. As a general rule, the speaker/writer implies, and the listener/reader infers. Nauseous vs. Nauseated Nauseous has been misused so often that the incorrect usage is accepted in some circles. Still, it’s important to note the difference. Nauseous means causing nausea; nauseated means experiencing nausea. So, if your circle includes ultra-particular grammar sticklers, never say “I’m nauseous” unless you want them to be snickering behind your back.
Comprise vs. Compose These are two of the most commonly misused words in the English language. Comprise means to include; compose means to make up. It all comes down to parts versus the whole. When you use comprise, you put the whole first: “A soccer game comprises (includes) two halves.” When you use compose, you put the pieces first: “Fifty states compose (make up) the United States of America.”
Farther vs. Further Farther refers to physical distance, while further describes the degree or extent of an action or situation. “I can’t run any farther,” but “I have nothing further to say.” If you can substitute “more” or “additional,” use further. Fewer vs. Less Use fewer when you’re referring to separate items that can be counted; use less when referring to a
Bringing It All Together
With words such as those listed above, you just have to memorize the rules so that when you are about to use them, you’ll catch yourself in the act and know for certain that you’ve written or said the right one. Written by:
Lynn M. Thomas, CEO Thomas Consulting–We Want You To Be Extraordinary! 32 Holman Road Newton, MA 02466 781-899-4210 www.Thomasconsultingwins.com Lynnthomas@Thomasconsultingwins.com
ABEN CE Webcasts IIABL Member Mike Scriber with Scriber Insurance Services in Ruston recently took 3 courses through Aben and here is what he has to say: “I personally just took 3 different classes on p/l through ABEN. I have to say they were all very good and informative classes. I gave each of them a 5 star rating when asked to provide a survey on my experience. There were things pointed out during these classes that I was not aware of, and as a matter of fact, caused us to change the way we do some things internally. The main thing we changed was some of our questions on the p/l checklist in order to try and avoid some p/l pitfalls going forward. The advantage of taking these classes through ABEN, was setting this up around my schedule, I was able to remain in my office, cost of these classes was very affordable, and the presenters all were very knowledgeable. I was able to take something from each of these classes. Each of these classes was either a 2 or 3 hours , which is very easy to work into my schedule.”
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SILVER LEVEL
BRONZE LEVEL
BANKERS INSURANCE
CNA INSURANCE
FCCI GROUP
FOREST INSURANCE
GULFSTREAM P&C
HOMEBUILDERS SIF
IROQUOIS SOUTH, INC.
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LUBA WORKERS’ COMP
MAISON INSURANCE
MARKEL FIRST COMP
RPS COVINGTON
SUMMIT CONSULTING
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EMC INSURANCE
AMERICAS INSURANCE
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IIABL 2017—2018 BOARD OF DIRECTORS & OFFICERS Neil Record President Record Agency, Inc.—Clinton John L. Beckmann, III President Elect J. Everett Eaves—New Orleans
Joseph A. O’Connor, III Secretary/Treasurer The O’Connor Insurance Group—Metairie H. Lee Schilling, Jr. National Director Schilling & Reid Insurance—Amite Richard Jenkins Past President Moore & Jenkins Insurance—Franklinton
Stuart Harris McClure, Bomar & Harris—Shreveport Ross Henry Henry Insurance Service—Baton Rouge Bret Hughes Hughes Insurance Services—Gonzales Harry B. Kelleher, III Harry Kelleher & Company—Harahan Philip McMahon Paul’s Agency—Morgan City Joe King Montgomery Thomas & Farr Agency—Monroe
Paul Owen John Hendry Insurance Agency-Zachary
Donnie Stiel Young Agent Representative Stiel Insurance of Acadiana, Inc.
Martin Perret Quality Plus—Lafayette
Byram H. Carpenter, III Moreman, Moore & Co—Shreveport
David T. Perry Arthur J. Gallagher RMS—Baton Rouge
Brenda Case Lowry-Dunham, Case & Vivien—Slidell
Robert Riviere Riviere Insurance Agency—Thibodaux
Joseph Cunningham, Jr. Cunningham Agency—Natchitoches
Armond Schwing Schwing Insurance Agency—New Iberia
Donna DiCarlo Riverlands Insurance Services—LaPlace
Michael D. Scriber Scriber Insurance Services—Ruston
Morris Funderburg Reeves, Coon & Funderburg—Monroe
Donelson P. Stiel David H. Stiel, Jr. Agency—Franklin Louisiana Agent 38