15 minute read
From the Commissioner’s Desk
Commissioner’s Desk From the
As I write this, it is the end of August. I am still working from home and going into the office one morning each week to sign documents. I miss my DOI family, but we will continue to do our jobs well despite the challenges of working remotely.
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The Department has caught up on all delayed licensing examinations, and we are back to pre-pandemic levels of scheduling and moderating exams. After the DOI pushed for some reductions, the health insurance filings for 2021 were submitted, reviewed by our actuaries and finalized. Our national five-year accreditation is scheduled for September and will occur virtually, which will be new for everyone and may present some challenges. We will make it work, and I am confident that we will receive full accreditation once again.
Consumer complaint investigations, fraud investigations, market conduct examinations, financial analysis and health, life, property and casualty filing reviews continue to take place. Currently, COVID-19 guidance is not monopolizing the insurance industry, but we continue to monitor Kentucky’s COVID status so we can be proactive in addressing any new developments.
So, as I stated above, DOI continues to do our jobs and do them well. It is a testimony to our DOI family.
At the beginning of this pandemic, I stressed that the insurance industry is an essential business to the Governor’s Office. Kentuckians rely on the protection their insurance coverage provides, and more importantly, our fellow citizens depend on you---the insurance agent.
During any uncertain times, “peace of mind” and financial security become even more critical. You are the face of the insurance industry, and you should always be available to answer questions and provide assistance to your clients. The Department of Insurance knows that you are essential, and we look forward to watching you continue your great work.
Stay safe and wear your mask,
Ray A. Robertson, CIC
Chair, Mt. Sterling 859.498.3410
Kevin T. Desmond
Chair-Elect, Bellevue 859.491.5100
Whitney L. Floyd, CIC
Vice-Chair, Henderson 270.827.3543
Allen J. Crawford, CIC, CSRM
Treasurer, Somerset 606.679.6311
Stephen R. Kinkade, CPCU, AAI
National Director, Leitchfield 270.259.5465
Aaron LaRue
Immediate Past Chair, Bardstown 502.348.0050
DIRECTORS
Philip Anderton
Lousiville, 502.585.3277
Mark Linkous, CIC
Edmonton, 270.432.3491
John Purdom
Murray, 270.753.4751
Carolyn Reynolds
Richmond, 859.623.8485
Eric Schumacher
Maysville, 606.759.5663
Adam Sheridan
Emerging Leader Chair, Somerset 606.679.6311
Chris J. Wiseman, CIC
Bowling Green, 270.781.2020
Laura Yount, CIC, CISR
London, 606.878.0100
STAFF
Tara T. Purvis President & CEO
Amy Good
Financial Services Director
Katie Hines
Membership Services Director
Taylor A. Lee
Communications Director
Kristie Weyer, CISR
Insurance Services Director
KATLIN ELDERSMA LaRue-Carey Apprentice, Licensed Insurance Agent
What inspired you to pursue a career in insurance? After working for Aaron LaRue and Patrick Carey for a year, I had an urge to learn more about the insurance field and turn this opportunity into a career. I had no clue what I was getting myself into when I started this apprenticeship. During high school, I never imagined myself pursuing a career in insurance, but God had other plans for me that I did not even think were possible for a high school senior. Once I started to learn more about insurance and why we need it, I decided to further my education and obtain my insurance license.
What line of business interests you most? I’m working on both Personal and Commercial lines. My boss, Aaron LaRue, wanted me to dip my toes into the commercial side of the business. Once I obtained my insurance license, I didn’t have a specific line of business in mind for myself. Over time, Aaron and I began to develop a “game plan” for me. It just so happens my coworker, Caitlin Burbick Thomas, is taking maternity leave soon. I’m picking up her day-to-day tasks while she’s gone. She works in Commercial Lines. After spending two weeks with Caitlin Burbick-Thomas, I’ve grown to learn that Commercial Lines is much more complicated than Personal Lines. Yes, there is a lot I need to learn, but I know I will pick up on everything over time.
What are your career goals? I have a broad range of career goals. I want to further my insurance knowledge, learn more about the Commercial side of insurance and make this apprenticeship into a career. My coworkers have inspired me to develop good habits and a daily routine to provide my clients with quality customer service.
Do you believe other agencies could benefit from hiring an apprentice? Why? I would recommend this nationally-recognized Apprenticeship program to other agencies. The employer and the student can benefit from this opportunity in many ways. The agency owners could pick up on a few things the business could improve on. He or she may decide to update procedures and protocols to help employees respond appropriately to specific situations and improve office functionality.
In your opinion, why should other students pursue an insurance apprenticeship? If I’m honest, I did not see myself being an insurance agent right out of high school. Many students probably don’t perceive insurance as a “fun” career path. I believe it takes a special type of person to pursue a career as an independent agent. Some students may not realize how important insurance is or how they can contribute to the industry as a whole. This apprenticeship could help other students open their eyes to a career they never knew was an option.
WHAT IS AN APPRENTICESHIP? Employee training program that combines on-the-job training and classroom instruction under supervision of an experienced industry professional. Requires paid onsite training and quality technical instruction.
REQUIREMENTS FOR GENERAL INSURANCE ASSOCIATE:
• 2, 169 hours of on-the-job training • Hours worked in the office in each section of the Work Process Schedule • 144 hours in the classroom • Business pathway classes taken at school plus the InVest insurance course. • New Hire Training and Pre-Licensing courses • Training and classes for your apprentice at no cost to you.
How can Big I KY help?
We serve as the intermediary, meaning that we help with paperwork including getting your apprentice registered with the state, as well as tracking hours, additional education and licensing, and support too!
BENEFITS OF AN APPRENTICE
• Solid ROI - A recent study showed that, on average, for each dollar invested, private employers receive a benefit of $1.53 - a net return of $0.53! • “Homegrown” employees are more productive.
A skilled professional worker who trained as an apprentice within your business will naturally be more productive since he or she is already familiar with your agency’s standards and procedures.
That means your employees will spend their time contributing to producing your expected results, not getting up to speed.
• Apprenticeships foster loyalty
There is something intangible about the loyalty workers feel toward a business that values them enough to invest time and money to help them reach their career goals.
For more information or to get an apprentice, Call Cassie! 502-245-5432 ext 105 cyoung@bigiky.org
MONEY SAVED IS MONEY EARNED!
E&O Programs EPLI coverage Agency Consulting and E&O Auditing Personal Umbrella coverage Anthem Group Health Plan Cyber Liability Programs Big “I” Retirement (MEP) Life & Disability coverage Big “I” Flood coverages Big “I” Markets Work At Home Vintage Experts
Better interest rate through Imperial PFS Member pricing at events Caliper Big “I” Hires Employer Blueprint ePayPolicy Virtual Risk Consultant UPS discounts Docusign discount
S S S S S S S S S S S S S S T T T T T T T T T T I I I I I I I I I I I I I I F F F F F F F F F F E E E E E E E E E E E E E E E E E E E E E E E E E E E E N B B B B B B B B B B B E E E E E E E E E E E E E E E E E E E E E E E E R R R R R R R R R R R R F F F F F F F F F F You love FREE? So do we! That’s why the following benefits are included with your membership.
MEMBERSHIP
• Trusted Choice ® is the national marketing brand created exclusively for Big I members to help consumers understand the value an independent agent offers. Use the Marketing
Reimbursement Program to co-brand your agency and offset costs. Plus, the pros at Trusted Choice can review your website, social media and even give you ready to use digital content. • TrustedChoice.com is the #1 online quoting portal to compete with direct writers online. It also provides education to consumers about different types of insurance. • Emerging Leaders perpetuate the future of the independent agency system. • Leadership Opportunities - Join a committee and get involved.
PRODUCTS
• First Call Free Legal - receive 30 minutes of free legal advice per year from General Counsel, Rick Pitts.
HIRING
• Big I KY Job Board - Post jobs and review resumes for FREE. • Veteran Licensing Program - Free licensing available for vets and their spouses. • Apprenticeship Program helps you grow your own talent with our nationally recognized program. • Affinity HR provides you with select hiring and onboarding resources.
EDUCATION & EVENTS
• Road Shows include a free lunch and free continuing education right in your backyard.
ADVOCACY
• Lobbying Efforts- Our lobbyists are present every day looking out for your best interests. • Legislative Bulletins - During the Kentucky legislative session, you will receive an update each week on the happenings in
Frankfort. • Legislative Day- Join your fellow agents in Frankfort to bring awareness and understanding of issues facing agents to our legislators.
RESOURCES
• ACT brings you the best work-flows and technologies available within the independent agency system. • “Ask An Expert” allows you to utilize experts/faculty to find answers to those uncommon questions and get a response within 24 hours. • Telecom Services can save you 100s of dollars on your telecom needs with zero risk or out-of-pocket expense. • Big “I” VU provides information on agency management and technical insurance issues. • BIG I KY Website - Trusted resource for all your business needs at bigiky.org. • BIG I KY Newsletter - weekly e-newsletter with insurance related news and special annoucements. • BIG I KY Staff - We pride ourselves on being the ULTIMATE resource for our members. Just think of us as that extra staff member - without all of the on-boarding paperwork! • Kentucky IA - This quarterly magazine gives an in-depth look at industry and association related news and events. • Social Media Presence - Facebook, Twitter, Instagram, LinkedIn.
Your Big I KY staff is always willing to help in any way we can. Call us at 502-245-5432 or email info@bigiky.org
Independent Agency Alliance RPG
PROFESSIONAL LIABILITY.
50 years experience protec�ng the businesses, reputa�on, and assets of IIABA members
Represented by IIABA and all Big “I” state associa�ons na�onwide
Experience, partnership, and a strong commitment to addressing the needs of agencies with opera�ons extending beyond the tradi�onal sales and servicing of insurance products, makes the Big “I” Alliance Independent Agency RPG E&O Program a choice second to none
Experience - Stability - Expertise - Flexibility
Independent Agency Alliance Program Features
Broad de�ni�on of “Professional �ervices,” including but not limited to insurance agent and broker, MGA, insurance consultant, loss control, risk management Defense Costs outside the Limit of Liability Expansive de�ni�on of Insured includes current and former employees, independent contractors, leased or temporary employees Aggregate and Each Occurrence deduc�ble op�ons �o�ened Hammer Clause - �0/�0 Deduc�ble Reduc�on �eature – Ability to reduce deduc�ble by 100% up to $25,000, subject to policy terms Claims made policy form with broad claim repor�ng provision In-house claims staff, primarily licensed a�orneys, who partner with seasoned panel counsel, well versed in agency law Catastrophe Extra Expense coverage limit of $25,000/$50,000 �ubpoena expenses paid in addi�on to policy limit of liability – no deduc�ble, un�l a claim is made Regulatory Defense Coverage of $100,000 per policy period - no deduc�ble Crisis Management Coverage of $20,000 per policy period - no deduc�ble Insolvency coverage for all carriers with B� or be�er A.M. Best ra�ng, or for business placed with an insurance carrier admi�ed in the state or states of domicile of the subject risk and rated A or higher by Demotech. Loss of Earnings – reimbursement for loss of earnings or temporary staff due to a�ending deposi�ons or trials $1,500 per insured per day/maximum of $75,000 per cer��cate period. Generous ERP provisions True Worldwide Coverage Complimentary access to “E&O Happens” risk management website, www.IIABA.net/eohappens and E&O Claims Advisor �ewsle�er
E&O Risk Management The Right Path
Eric Moberg
Several years ago, I wrote an article titled E&O Audits, They aren’t too Scary. The premise was that the word “audit” generally strikes fear in people’s minds. The good news was that having an E&O Audit can be quite helpful and enlightening.
Effective January 1, 2020, SwissRE/Westport has expanded the E&O Risk Management program to include an Agency Website Operational Review (5%), Implementation and Use of Coverage Checklists (5%) and Risk Management Credit (up to 10%) for the required percentage of agency staff participation in a live E&O class or webinar. To receive the Website or Checklist Credit, the agency must complete the Risk Management qualifications, so confirm you have the correct number of staff enrolled. Also, the agency can earn an additional five year 10% credit for performing an Agency Operational Efficiency Review (E&O Audit). There is a potential combined Risk Management Credit of 30%. Check with your state association representative, Kristie Weyer, for specific information as it will apply to your agency.
E&O Risk Management, Operational Reviews (E&O Audits) can be an extremely beneficial process for your agency. That old saying about “another set of eyes” is true. Many of our clients have us back, audit after audit, because they see the value in our diverse community of agencies. Our agency clients range from 2 or 3 person Main Street offices to agencies with hundreds of staff spread over many locations. We get to see almost every type of operation, industry specialists, coverage specialists and generalists. Over the past few weeks, we have audited agencies specializing in Energy, Surety, Benefits, Professional Liability and Equine insurance. We’ve worked with agencies using just about every automation system or combination of systems, including some with little or no automation. This exposure to a wide variety of agencies makes us better prepared to perform an Agency Operational Review or Website review. We learn from our clients every day. We see innovation in marketing, sales and customer service. Every aspect of operating an agency has potential variations.
Something I always find in the agencies with strong operations is tools to prevent errors and omissions. We continuously discuss the “Trinity” of E&O Risk Management: communication, documentation and consistency. Using effective tools such as New Business Worksheets, Risk Management Exposure Checklists, Renewal Questionnaires and written procedures help an agency reduce E&O Exposure. The staff should learn procedures and understand how to use the tools available to them. Remember, a finished procedures manual is most likely obsolete. Procedures/workflow manuals are living documents that need to be updated regularly, so take the time to review your procedures and workflow at least semi-annually. With a Moberg audit, your agency will receive a free policies and procedures manual valued at $250.
When COVID-19 found its way to the United States, you may have noticed your agency scrambling to update protocols. Every agency I have talked to in recent months had to make changes to their procedures and workflow while their staff was working from home. This will continue into the foreseeable future for many agencies and the companies they represent. They may be slower to respond to your submissions or renewal requests. They, too, have to deal with unexpected changes, so allow more time to get things done, begin that new business submission earlier if possible and begin your renewal process 30 days earlier.
Everyone will benefit, and it just might save your sanity. Everyone in your agency should be E&O Aware. Discuss why being E&O conscious is important at staff meetings. Share experiences you have had where a mistake led to an E&O claim, and take advantage of all the E&O Risk Management support you have from your Association, both state and national. There is a tremendous amount of information on the IIABA E&O Happens website. If we can help, please contact us. We would be happy to assist your agency with E&O Risk Management audits. Big I KY members are entitled to a membership benefit of one hour of free consulting from The Moberg Group each year.
Eric Moberg’s career in the insurance industry spans over 40 years. It has involved management and executive positions with insurance companies, vendors providing services to the insurance industry, as a successful agency owner, and currently as President/CEO of The Moberg Group, Inc. (TMG), an insurance consulting firm working with Independent Insurance Agents and Wholesale Brokers.
TMG, located in Franklin, North Carolina, with consultants strategically located throughout the US, is the leading provider of Insurance Agency Errors & Omissions loss control programs. TMG has performed well over 1,000 E&O Audits over the past 28 years. TMG is the preferred E&O Audit provider for many state associations and E&O carriers, including the Big I of KY.
The new CRC Indianapolis office is your Midwest insurance solution.
Aimee Stumler
P 317.581.3243 E astumler@crcgroup.com
Joni Denny (Garage)
P 606.260.4018 E jodenny@crcgroup.com
crcgroup.com
Indianapolis Office
450 E. 96 th Street Suite 500 Indianapolis, IN 46240
Experience Matters
WAHVE bridges the gap between insurance firms’ staffing needs and seasoned professionals’ “work‐life” balance preferences as they phase into retirement.
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